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2022-03-31-accounts

Company no. 04475254 Charity no. 1096449

ECHO for Extra Choices in Herefordshire Limited

Report and Unaudited Financial Statements 31 March 2022

ECHO for Extra Choices in Herefordshire Limited

Reference and administrative details

For the year ended 31 March 2022 For the year ended 31 March 2022
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
Christopher Blum
John Bradford Appointed 10 December 2021
Beverley Davies
Amanda Hamblin
Joy House
Rosemary Hunt Resigned 2 February 2022
Matthew Jones Appointed 10 December 2021
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 2022

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 2022.

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:

We want to make a positive difference to the lives of people with disabilities in Herefordshire, supporting them to both feel and 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 2022

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 47 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 we support these from fees, organisational funds or small grants. ECHO members access some of our leisure and social activities on a regular basis. Many of these opportunities give people the chance to access 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 2022

Community connections

Community connections support 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 our volunteers bring. Volunteers working with ECHO have the opportunity to support others and build their own 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 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 those with varied support needs. 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 beneficial to the organisation and individuals.

Participant involvement

ECHO believes that disabled people should be able to play an active part in 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:

4

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2022

Financial review

Principal funding sources

The principal funding sources for the charity are currently grants income (£210,268) and fees income in the form of Commissioned funding from Herefordshire Council, Direct Payments and individual self-funders (£489,405).

ECHO has continued its efforts to diversify income, developing and implementing a fundraising strategy, despite the initial stages being hampered by COVID restrictions.

Investment policy

ECHO has invested £145,000 of its cash assets to provide income for expenditure on our charitable objectives. The trustees are governed by the memorandum, amended on 10th December 2021, 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 running costs.

No single deposit will exceed the value covered by the Financial Services Compensation Scheme to mitigate risk and protect the investment. 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 personalized budgets whereby individuals can choose to stop purchasing services at short notice; and also

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

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

In the light of the above, our target level of reserves is £297,700 This is the amount needed to meet 6 months’ core salaries and running costs plus non-cancellable debt.

Free reserves stand at £285,433 (2021: £355,757), calculated as the unrestricted funds, less the designated funds. While this is below the current target level, the Trustees are conscious that the pandemic will continue to have diminishing but significant impacts on our finances and having set a break even budget for 2022-23 they anticipate that reserves will be around the target amount at the end of next year.

5

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2022

Going Concern Basis of Accounting

The COVID-19 pandemic had a profound impact on the global economy, and has affected the charity. ECHO weathered the first year of COVID-19 and through careful management ensured that the charity secured income to help with the long term impacts of this pandemic. Over the second year of the pandemic, we were required to draw upon these additional funds to cover the deficit we incurred.

The Trustees have considered the impact of this issue on the charity’s current and future financial position. The charity holds unrestricted general reserves of £285,433 and designated reserves of £6,848 that can be drawn down as necessary. Cash balances at 31st March 2022 are £217,667 and investment cash balance with notice periods £145,000.

The trustees consider that the charity has sufficient unrestricted reserves and cash flow to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved. For this reason, the accounts have been prepared on the going concern basis.

Plans for future periods

We believe that after two years of pandemic ECHO is ready to develop our services and implement some of the ideas that have been on hold.

Whilst for much of the community COVID restrictions have been lifted, due to the vulnerabilities of those we support, in Social Care we are still required to continue with many of the precautions applied during the height of the pandemic. This means that we have increased costs and restrictions on our ability develop and grow as we would like.

We are also experiencing a period where due to global influences there is a dramatic rise in the cost of living, especially with regards to utilities such as electricity and gas. It is predicted that by the end of the year inflation could be as high as 10%.

Due to the above, we will be carefully monitoring our income and expenditure over the coming year. This will allow us to plan for expansion, strengthening or contraction of services as risk

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 reserves of £284,234.

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.

6

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2022

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

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.

7

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2022

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:

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 1 September 2022 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 2022, which are set out on pages 10 to 28.

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:

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: 5 September 2022 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 2022

Restricted Unrestricted
Note
£
£
Income from:
Donations
3
5,083
42,288
Charitable activities
4
155,915
568,143
Other trading activities
5
-
37,497
Investments
-
2,512
Total income
160,998
650,440
Expenditure on:
Raising funds
-
73,178
Charitable activities
141,309
647,252
Total expenditure
7, 8, 9
141,309
720,430
19,689
(69,990)
Reconciliation of funds:
Total funds brought forward
60,884
362,271
Total funds carried forward
80,573
292,281
Net income / (expenditure) and net
movement in funds		 2022
Total
£
47,371
724,058
37,497
2,512
811,438
73,178
788,561
861,739
(50,301)
423,155
372,854		 2021
Total
£
108,885
793,497
14,231
4,331
920,944
38,842
748,185
787,027
133,917
289,238
423,155

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 2022

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Current asset investments
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
15
Net current assets
Net assets
17
Funds
18
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds		 £
44,567
145,000
217,667
407,234
(35,579)		 2022
£
1,199
371,655
372,854
80,573
6,848
285,433
372,854		 2021
£
2,999
48,141
221,468
183,130
452,739
(32,583)
420,156
423,155
60,884
6,514
355,757
423,155

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:

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 1 September 2022 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 2022

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Dividends, interest and rents from investments
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Represented by:
Current asset investments
Cash at bank and in hand		 2022
£
(50,301)
1,800
(2,512)
3,574
2,996
(44,443)
2,512
(41,931)
404,598
362,667
2022
£
145,000
217,667
362,667		 2021
£
133,917
1,800
(4,331)
(10,339)
2,497
123,544
4,331
127,875
276,723
404,598
2021
£
221,468
183,130
404,598

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 2022

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 2022

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:

2022 2021
Raising funds 23.6% 2.8%
Charitable activities 76.4% 97.2%

14

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

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 2022

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

Prior period comparatives: statement of financial activities
Restricted
£
£
Income from:
Donations
8,109
100,776
Charitable activities
209,189
584,308
Other trading activities
-
14,231
Investments
-
4,331
Total income
217,298
703,646
Expenditure on:
Raising funds
-
38,842
Charitable activities
188,109
560,076
Total expenditure
188,109
598,918
Net expenditure and net movement in funds
29,189
104,728
Income from donations
2022
Restricted
Total
£
£
£
Donations
5,083
41,464
46,547
Coronavirus Job Retention Scheme
-
824
824
Total income from donations
5,083
42,288
47,371
Unrestricted
Unrestricted		 2021
Total
£
108,885
793,497
14,231
4,331
920,944
38,842
748,185
787,027
133,917
2021
Total
£
51,710
57,175
108,885

3. Income from donations

£8,109 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 2022

4. Income from charitable activities

Grants
Fees for activities
Other income
Contracts
Total income from charitable activities
Prior period comparative
Grants
Fees for activities
Other income
Contracts
Total income from charitable activities
Income from other trading activities
Shop, cafe and theatre sales
Prior period comparative
Shop, cafe and theatre sales		 Restricted
£
£
155,616
54,652
-
489,405
299
19,069
-
5,017
155,915
568,143
Restricted
£
£
209,189
97,696
-
457,011
-
15,416
-
14,185
209,189
584,308
Restricted
£
£
-
37,497
Restricted
£
£
-
14,231
Unrestricted
Unrestricted
Unrestricted
Unrestricted		 2022
Total
£
210,268
489,405
19,368
5,017
724,058
2021
Total
£
306,885
457,011
15,416
14,185
793,497
2022
Total
£
37,497
2021
Total
£
14,231

5. Income from other trading activities

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 2022 was £24,146 (2021: £78,202). There are no unfulfilled conditions or contingencies attaching to these grants in 2021/22.

17

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

7. Analysis of expenditure by type

Analysis of expenditure by type
Raising funds
Total raising funds
Charitable activities before governance costs
Governance costs allocated to charitable activities
Total expenditure on charitable activities
Total expenditure 2022:		 Staff Costs Other Costs
£
£
73,178
-
73,178
-
507,824
268,489
9,278
2,970
517,102
271,459
590,280
271,459		 2022
Total
£
73,178
73,178
776,313
12,248
788,561
861,739
Prior period comparative
Raising funds
Total raising funds
Charitable activities before governance costs
Governance costs allocated to charitable activities
Total expenditure on charitable activities
Total expenditure 2021:		 Staff Costs Other Costs
£
£
38,842
-
38,842
-
536,470
199,935
9,278
2,502
545,748
202,437
584,590
202,437		 2021
Total
£
38,842
38,842
736,405
11,780
748,185
787,027

8. Resources expended by activity

Education and training
Development and volunteering
Sport and leisure
Day opportunities
General
Total expenditure 2022:		 Direct
costs
£
15,119
49,926
41,053
346,981
291,148
744,227		 Support
costs:
staff
£
-
11,737
991
55,979
21,166
89,873		 Support
costs:
office
£
-
2,436
206
11,616
4,392
18,650		 Support
costs:
premises
£
-
1,174
99
5,599
2,117
8,989		 2022
Total
£
15,119
65,273
42,349
420,175
318,823
861,739

18

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

8. Resources expended by activity (continued)
Prior period comparative:
Direct
costs
Support
costs:
staff
£
£
Education and training
10,574
2,552
Development and volunteering
45,717
12,552
Sport and leisure
19,513
310
Day opportunities
317,369
86,009
General
250,197
9,795
Total expenditure 2021:
643,371
111,218
9. Analysis of support and governance costs allocations
Raising
funds
Charitable
activities
£
£
Direct costs
45,503
686,477
Reallocation of support costs
27,675
89,836
Reallocation of governance costs
-
12,248
Total expenditure 2022:
73,178
788,561
Raising
funds
Charitable
activities
£
£
Direct costs
34,749
596,841
Reallocation of support costs
4,093
139,564
Reallocation of governance costs
-
11,780
Total expenditure 2021:
38,842
748,185
Prior period comparative:		 Support
costs:
office
Support
costs:
premises
£
£
502
243
2,467
1,194
61
29
16,904
8,182
1,925
932
21,858
10,581
Support
costs
£
£
117,511
12,248
(117,511)
-
-
(12,248)
-
-
Support
costs
£
£
143,657
11,780
(143,657)
-
-
(11,780)
-
-
Governance
costs
Governance
costs		 2021
Total
£
13,870
61,930
19,913
428,465
262,849
787,027
2022
Total
£
861,739
-
-
861,739
2021
Total
£
787,027
-
-
787,027

19

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

10. Net movement in funds

This is stated after charging:

Depreciation
Trustees' remuneration
Trustees' reimbursed expenses
Independent examiners' remuneration:
▪Independent examination (including VAT)		 2022
£
1,800
Nil
502
2,040		 2021
£
1,800
Nil
386
1,920

During the year, three trustee's had expenses reimbursed relating to postage and stationary and travel (2021: one, postage and stationary and finance training).

11. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs
Subtotal: staff costs before relief staff
Add: relief staff
Total staff costs:		 2022
£
544,215
31,046
15,019
590,280
54,782
645,062		 2021
£
535,452
32,248
16,890
584,590
35,828
620,418

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 £43,633 (2021: £43,629).

Average head count
Full time equivalent		 2022
No.
47
24		 2021
No.
47
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 2022
13. Tangible fixed assets
Cost
At 1 April 2021
Additions in year
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
14. Debtors
Trade debtors
Prepayments and accrued income
15. Creditors : amounts due within 1 year
Trade creditors
Accruals
Other creditors
Deferred income (see note 16)		 £
5,399
-
5,399
2,400
1,800
4,200
1,199
2,999
2022
2021
£
£
33,305
31,683
11,262
16,458
44,567
48,141
2022
2021
£
£
19,745
18,843
13,410
7,741
2,424
2,424
-
3,575
35,579
32,583
Fixtures and
fittings
5,399
2,400
1,800
4,200
1,199
2,999
2021
£
31,683
16,458
48,141
2021
£
18,843
7,741
2,424
3,575
32,583

21

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

16. Deferred income

At 1 April 2021
Deferred during the year
Released during the year
At 31 March 2022		 2022
2021
£
£
3,575
3,475
-
100
(3,575)
-
-
3,575

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
Current assets
Current liabilities
Net assets at 31 March 2022
Prior period comparative
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 March 2021		 £
1,199
79,374
-
80,573
£
2,999
57,885
-
60,884
Restricted
funds
Restricted
funds		 £
-
6,848
-
6,848
£
-
6,514
-
6,514
Designated
funds
Designated
funds		 £
-
321,012
(35,579)
285,433
£
-
388,340
(32,583)
355,757
General
funds
General
funds		 Total
funds
£
1,199
407,234
(35,579)
372,854
Total
funds
£
2,999
452,739
(32,583)
423,155

22

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds

Movements in funds
Restricted funds
Edward Gosling Foundation
Arts Council
Eveson Charitable Trust
Acheeva Bed
About Face
Big Lottery (COVID)
Screwfix
HSBC
Friday lifelinks
Priory
Eaton Barn
Saxon Hall café
Bailey Thomas
The Rowlands trust
Tackling Inequalities Fund
Postcode lottery
Connexus
Clever Betsy
Total restricted funds
Designated funds:
About Face Theatre Company
Wednesday lifelinks
Friday lifelinks
Smart Arts storytelling project
Clever Betsy crafts and retail
Saxon Hall café
Craft projects and activities
Sport and leisure
Total designated funds
General funds
Total unrestricted funds
Total funds
Big Lottery Fund (Inclusive
Volunteering)
Unrestricted funds		 At 1 April
2021
£
5,480
11,119
-
7,500
3,791
2,750
2,927
5,000
15,000
450
1,384
3,359
2,124
-
-
-
-
-
-
60,884
-
2,081
2,000
1,761
100
(97)
456
213
6,514
355,757
362,271
423,155		 Income
£
£
69,608
(70,177)
-
(11,119)
23,322
(1,076)
15,001
(13,187)
-
(1,800)
670
(3,420)
-
(2,927)
-
(2,418)
-
(9,960)
-
(218)
219
(603)
3,560
-
-
-
10,000
(10,000)
5,000
(4,219)
8,762
(4,260)
19,856
(3,868)
5,000
(2,057)
-
-
160,998
(141,309)
77,303
(77,319)
22,476
(24,058)
29,055
(30,561)
11,827
(13,087)
59,817
(58,917)
9,119
(8,211)
59,270
(56,208)
14,372
(14,544)
283,239
(282,905)
367,201
(437,525)
650,440
(720,430)
811,438
(861,739)
Expenditure		 £
£
-
4,911
-
-
-
22,246
-
9,314
-
1,991
-
-
-
-
-
2,582
(288)
4,752
-
232
-
1,000
781
7,700
-
2,124
-
-
(781)
-
-
4,502
-
15,988
-
2,943
288
288
-
80,573
-
(16)
-
499
-
494
-
501
-
1,000
-
811
-
3,518
-
41
-
6,848
-
285,433
-
292,281
-
372,854
Transfers
between
funds
At 31
March 2022
80,573
(16)
499
494
501
1,000
811
3,518
41
6,848
285,433
292,281
372,854

Transfers between funds represent the transfer of restricted amounts between projects.

23

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

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

Big Lottery Fund (Inclusive Volunteering)

Year 4 of a 5 year “Inclusive Volunteering” grant to support the role of volunteer co-ordinator and monitoring officer to recruit volunteers across the county, support existing volunteers and develop training and support.

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 and used in the year 21-22

Arts Council

Support for About Face, our theatre company to help them through the COVID pandemic and ensure its ongoing sustainability. Grant 3 was received in Mar 22.

Eveson Charitable Trust

To part fund the salary and other costs of our Participant involvement office. Her work enables people with learning disabilities to be active members of the board. Our participant involvement work supports disabled people to shape services and help build their confidence.

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. This grant finished in April 21.

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 hub.

Friday lifelinks

Funds raised by the project to support additional materials and a day trip.

Priory

Funds raised to support participants specific activities within the Priory Project.

24

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds - purposes of restricted funds (continued)

Eaton Barn

Funds raised by the project towards the installation of a new boiler/heating system.

Saxon Hall café

Funding to support the Community Café at Saxon Hall, mainly from income raised by the local CO-OP through members.

Bailey Thomas

Support participant involvement- providing a dedicated staff member to engage and develop participant involvement in the organisation.

The Rowlands trust

Funding to purchase items of equipment for our Eaton Barn project.

Tackling Inequalities Fund

Funding to support our existing sporting activities; to visit and deliver activities to residents at a local residential home; to run a taster day for playing bowls for participants; to deliver a ‘Come and Try’ sports day for anyone with a disability in the county; to run an 8-week tennis coaching course for participants.

Postcode lottery

To support the core costs of co-ordinating our social and leisure activities.

Connexus

This funding provided the equipment and running costs for a 6-month pilot project called Radio ECHO for participants.

Clever Betsy

Funds raised by project to support an outing.

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

25

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds - purposes of designated funds (continued) 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.

Sport and leisure

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

26

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

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

27

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2022

19. Operating lease commitments

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

Amount falling due:
Within 1 year
Within 1 - 5 years		 2022
£
40,028
18,300
58,328		 2021
£
38,228
18,300
56,528

20. Related party transactions

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

28