OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

Company no. 04475254 Charity no. 1096449

ECHO for Extra Choices in Herefordshire Limited Report and Audited Financial Statements 31 March 2023

ECHO for Extra Choices in Herefordshire Limited

Reference and administrative details

Reference and administrative details Reference and administrative details
For theyear ended 31 March 2023
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 Chair
Christopher Blum
John Bradford
Beverley Davies
Jeremy Gray Appointed 9 December 2022
Amanda Hamblin
Joy House
Matthew Jones
Janet Smith Resigned 1 July 2022
Jason Stuchbery
Blaise White Treasurer
Chief executive officer Mike Cook
Bankers CAF Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Auditors Godfrey Wilson Limited
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 2023

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 2023.

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 regularly. 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 forward thinking organisation that promotes and delivers services for disabled people in Herefordshire and surrounding areas.

2

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2023

We have a vision of a society where all people with disabilities are heard, valued, respected and supported to make choices and flourish. To achieve this we have created 6 strategic aims:

Choice : To support our participants to be happy & healthy with a variety of stimulating choices. Everyone has the right to make decisions on the topics that affect them and it should be the same for people with disabilities.

Support : To give the right support and encouragement to build confidence and teach skills that enrich our participants’ lives. Everyone is unique and needs support in different areas of their lives. With the right support everyone can work towards meeting their potential.

Community : To support people to have a good social life, to help them keep in touch with friends and get involved in the community. One thing that COVID restrictions highlighted was the importance of community and to our participants the ECHO community. Regardless of ability everyone adds something to the community experience and society is stronger where this is supported and encouraged.

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. It would be very easy for ECHO staff and the organisation to make decisions about services and activities, but to do so in isolation would be to miss the opportunity to gain great insights and ideas from those we support. This is why ECHO prides itself on helping everyone to be involved in the decision making.

Quality : To provide high quality services that are integrated, visible and have value to the community. ECHO is proud of the quality of services that we provide. This has been recognised by our achieving the Trusted Charity Level 2 standard.

Collaboration : To build connections with other organisations and support our participants to join their activities, giving them more opportunities. ECHO can’t work successfully in isolation and collaboration with other organisations means better services for people, a stronger sector and a maximising of limited resources.

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 allow us to provide services to residents in Herefordshire and the surrounding area. We currently have 82 members and 149 people attending our day services. In addition approximately 100 other people access our services on an ad hoc basis. The majority of those who access our day services are funded via Council’s Adult Social Care services either through commissioned service or direct payments. A much smaller group fund their place from their own income or purchase additional services above what the Council support. Leisure and social activities are charged on attendance and fees are set to keep them accessible to those with modest income.

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 services.

3

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2023

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

Day 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, social care spot purchases and self funders.

They continue to be the main area of our business and we run activities 5 days a week. 149 people currently attend our day services, which is the major source of our funding. In total, we provided over 59,000 hours of service during the year. Our contractual services are supported by 48 staff and 116 active volunteers, of whom 62 are supported volunteers. All our day services aim to support participants to learn new skills, grow in self-confidence and be seen to be actively contributing to the local community.

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.

Leisure and social activities

Leisure, social and other activities are drop in, pay as you go activities, which we support from fees, organisational funds or small grants. Our leisure and social activities are wide ranging, run at a variety of times and priced competitively. Through taking part, participants can improve their mental and physical well-being, build friendships and access community activities.

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.

Volunteering benefits everyone. 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 build their own skills and experience and support others, which can help prepare them for employment or other opportunities.

Our Inclusive Volunteering Project funded by the National Lottery Community Fund project aims to encourage volunteering from individuals who may have additional support needs. We encourage our own participants to volunteer within ECHO and are also working with partners to provide outside of the organisation. 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 organisations, individuals and community.

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.

4

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2023

This commitment is demonstrated throughout the organisation:

Financial review

Principal funding sources

The principal funding sources for the charity are currently grants income (£279,890) and fees income in the form of Commissioned funding from Herefordshire Council, Direct Payments and individual self-funders (£489,576).

This year we were humbled to receive a legacy from Janet Smart, a long-time supporter of ECHO’s services, of £353,377. We are currently reviewing the impact and implications of this gift for ECHO going forward.

ECHO has continued its efforts to diversify income, developing and implementing a fundraising strategy.

Investment policy

ECHO has invested £85,000 of its cash assets to provide income for expenditure on our charitable objectives. The trustees are governed by the memorandum, amended on 10 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.

5

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2023

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 £590,638 (2022: £285,433), calculated as the unrestricted funds, less the designated funds and the tangible fixed assets. This is above the current target level, mostly due to the legacy received later in the year. The Trustees are committed to reviewing reserve levels alongside the budget for 2023/24 to ensure that they are held at an appropriate level to meet future commitments and that any in excess of that is used to develop the organisation and services.

Going Concern Basis of Accounting

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 £590,638 designated reserves of £30,756 that can be drawn down as necessary. Cash balances at 31 March 2023 are £504,986.

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 £590,638 and designated reserves of £30,756 that can be drawn down as necessary. Cash balances at 31 March 2023 are £419,986 and investment cash balance with notice periods £85,000.

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

ECHO has developed a new strategic plan for the period 2023 to 2026. This plan builds upon the previous plan but adds the priority area of Healthy Bodies and Heathy Minds and a focus on joining communities.

6

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2023

Our new aims are:

Following COVID we would now like to strengthen, restore and grow our links with the community. ECHO is proud of our participants and the services we run and so would like to show the community what we can offer. This will be done by going out into the community and bringing people into our activities to see first-hand what we do.

We have seen a significant increase in the cost of living in the last 12 months and expect this to continue in 2023/24. We will therefore have to work harder to recover these costs through our activities.

We will also review our property portfolio as we have leases that expire and potential changes in landlords or agreements to review. We will look to see whether there are alternative properties that meet operational priorities but at a more cost effective price.

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 forward.

7

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2023

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 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:

8

ECHO for Extra Choices in Herefordshire Limited

Report of the trustees

For the year ended 31 March 2023

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.

In so far as the trustees are aware:

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.

Auditors

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

Approved by the trustees on 20 October 2023 and signed on their behalf by

BLaise White

Blaise White - Treasurer

9

Independent auditors' report

To the members of

ECHO for Extra Choices in Herefordshire Limited

Opinion

We have audited the financial statements of ECHO for Extra Choices in Herefordshire Limited (the 'charity') for the year ended 31 March 2023 which comprise the statement of financial activities, balance sheet, statement of cashflows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

10

Independent auditors' report

To the members of

ECHO for Extra Choices in Herefordshire Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Other matter

The financial statements for the year ended 31 March 2022 were not audited as the charity was below the statutory audit threshold.

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

11

Independent auditors' report

To the members of

ECHO for Extra Choices in Herefordshire Limited

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing the appropriateness of journal entries;

▪Assessing judgements and accounting estimates for potential bias;

▪Reviewing related party transactions; and

▪Testing transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

12

Independent auditors' report

To the members of

ECHO for Extra Choices in Herefordshire Limited

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 20 October 2023

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

13

ECHO for Extra Choices in Herefordshire Limited

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

For the year ended 31 March 2023

Restricted
Note
£
Income from:
Donations
3
11,084
Charitable activities
4
175,827
Other trading activities
5
-
Investments
-
Total income
186,911
Expenditure on:
Raising funds
-
Charitable activities
208,239
Total expenditure
7
208,239
8
(21,328)
Reconciliation of funds:
Total funds brought forward
80,573
Total funds carried forward
59,245
Net income / (expenditure) and net
movement in funds		 Unrestricted
£
401,854
599,085
56,032
3,900
1,060,871
52,942
678,816
731,758
329,113
292,281
621,394		 2023
Total
£
412,938
774,912
56,032
3,900
1,247,782
52,942
887,055
939,997
307,785
372,854
680,639		 Restated
2022
Total
£
47,371
724,058
37,497
2,512
811,438
53,280
808,459
861,739
(50,301)
423,155
372,854

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 15 to the accounts.

Prior period expenditure has been reclassified to better reflect the activities of the charity. The restatements are purely reclassifications of expenditure and do not affect net income.

14

ECHO for Extra Choices in Herefordshire Limited

Balance sheet

As at 31 March 2023

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Current asset investments
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
13
Net current assets
Net assets
14
Funds
15
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds		 £
214,504
85,000
419,986
719,490
(38,851)		 2023
£
-
680,639
680,639
59,245
30,756
590,638
680,639		 2022
£
1,199
44,567
145,000
217,667
407,234
(35,579)
371,655
372,854
80,573
6,848
285,433
372,854

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 20 October 2023 and signed on their behalf by

BLaise White

Blaise White - Treasurer

15

ECHO for Extra Choices in Herefordshire Limited

Statement of cash flows

For the year ended 31 March 2023

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Dividends, interest and rents from investments
(Increase) / decrease in debtors
Increase 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		 2023
£
307,785
1,199
(3,900)
(169,937)
3,272
138,419
3,900
142,319
362,667
504,986
2023
£
85,000
419,986
504,986		 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

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

16

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

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 Act 2006.

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. 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.

17

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

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 bank.

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 incurred.

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. These costs have been allocated between cost of raising funds and expenditure on charitable activities based on the proportion of staff cost by each activity as follows:

2023 2022
Raising funds 6.2% 7.0%
Charitable activities 93.8% 93.0%

18

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

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) Stock

Donated items of stock for resale or distribution are not included in the financial statements until they are sold or distributed because the trustees consider it impractical to be able to assess the amount of donated stocks as there are no systems in place which record these items until they are sold and undertaking a stock take would incur undue cost for the charity which far outweigh the benefits.

k) 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.

l) 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.

m) 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.

n) 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.

o) 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.

p) 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.

q) 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.

19

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

r) 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.

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

Income from:
Donations
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net expenditure and net movement in funds		 Restricted
£
£
5,083
42,288
155,915
568,143
-
37,497
-
2,512
160,998
650,440
-
53,280
141,309
667,150
141,309
720,430
19,689
(69,990)
Unrestricted		 Restated
2022
Total
£
47,371
724,058
37,497
2,512
811,438
53,280
808,459
861,739
(50,301)

20

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

3. Income from donations

Donations
Legacies
Coronavirus Job Retention Scheme
Total income from donations		 Restricted
£
£
11,084
48,477
-
353,377
-
-
11,084
401,854
Unrestricted		 2023
Total
£
59,561
353,377
-
412,938		 2022
Total
£
46,547
-
824
47,371

£5,083 of donations in the prior period were restricted.

4. Income from charitable activities

Income from charitable activities
Grants
Fees for activities
Contracts
Total income from charitable activities
Prior period comparative
Grants
Fees for activities
Other income
Contracts
Total income from charitable activities		 Restricted
£
£
175,827
104,063
-
489,576
-
5,446
175,827
599,085
Restricted
£
£
155,616
54,652
-
489,405
299
19,069
-
5,017
155,915
568,143
Unrestricted
Unrestricted		 2023
Total
£
279,890
489,576
5,446
774,912
2022
Total
£
210,268
489,405
19,368
5,017
724,058

21

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

5. Income from other trading activities

Income from other trading activities
Shop, cafe and theatre sales
Prior period comparative
Shop, cafe and theatre sales		 Restricted
£
£
-
56,032
Restricted
£
£
-
37,497
Unrestricted
Unrestricted		 2023
Total
£
56,032
2022
Total
£
37,497

6. Government grants

The charitable company received government grant income in the year from Arts Council England. The total value of such grants in the period ending 31 March 2023 was £18,658 (2022: £24,146). There were no unfulfilled conditions or contingencies attaching to these grants in either years.

22

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

7. Total expenditure

Total expenditure
Staff costs (note 9)
Other staff costs
Premises
Office
Equipment
Fees & charges
Trustee Expenses
Fundraising expenses
Project costs
Marketing & promotion
Depreciation
Sub-total
Allocation of support and governance costs
Total expenditure		 Raising funds
£
28,856
-
-
109
-
-
-
4,417
185
40
-
33,607
19,335
52,942		 Charitable
activities
£
433,625
9,372
52,956
9,848
4,434
40,978
-
-
44,072
-
1,199
596,484
290,571
887,055		 Support and
governance
costs
£
217,354
8,708
44,081
31,591
138
7,233
801
-
-
-
-
309,906
(309,906)
-		 2023 Total
£
679,835
18,080
97,037
41,548
4,572
48,211
801
4,417
44,257
40
1,199
939,997
-
939,997

Total governance costs were £6,551 (2022: £2,202)

23

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

7. Total expenditure Prior period comparative

Staff costs (note 9)
Other staff costs
Premises
Office
Equipment
Fees & charges
Trustee Expenses
Fundraising expenses
Project costs
Marketing & promotion
Depreciation
Sub-total
Allocation of support and governance costs
Total expenditure		 Raising funds
£
31,473
60
-
379
-
-
-
1,138
216
838
-
34,104
19,176
53,280		 Charitable
activities
£
416,187
7,944
48,789
10,861
1,907
36,626
-
-
30,779
-
1,800
554,893
253,566
808,459		 Support and
governance
costs
£
197,402
6,177
34,535
28,649
-
2,994
502
-
2,483
-
-
272,742
(272,742)
-		 Restated
2022 Total
£
645,062
14,181
83,324
39,889
1,907
39,620
502
1,138
33,478
838
1,800
861,739
-
861,739

24

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

8. Net movement in funds

This is stated after charging:

Depreciation
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration (excluding VAT):
Audit
Independent examination		 2023
£
1,199
Nil
801
5,750
-		 2022
£
1,800
Nil
502
-
1,700

During the year, two trustees (2022: three trustees) had expenses reimbursed relating to postage and stationary and travel.

9. 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:		 2023
£
603,768
39,484
13,963
657,215
22,620
679,835		 2022
£
544,215
31,046
15,019
590,280
54,782
645,062

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

No employee earned more than £60,000 during the current or prior year. The key management personnel of the charitable company comprise the Trustees, the Chief Executive Officer and the two Deputy Chief Executive Officers. The total employee benefits of the key management personnel were £98,760 (2022: £43,633). In the prior year, key management personel comprised of the Trustees and the Chief Executive Officer only.

Average head count 2023
No.
47		 2022
No.
47

10. Taxation

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

25

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

Notes to the financial statements
For the year ended 31 March 2023
11. Tangible fixed assets
Cost
At 1 April 2022 and 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
12. Debtors
Trade debtors
Prepayments and accrued income
Other debtors
13. Creditors : amounts due within 1 year
Trade creditors
Accruals
Other taxation and social security
Other creditors		 £
5,399
4,200
1,199
5,399
-
1,199
2023
2022
£
£
45,726
33,305
167,529
11,262
1,249
-
214,504
44,567
2023
2022
£
£
14,643
19,745
7,200
13,410
10,846
-
6,162
2,424
38,851
35,579
Fixtures and
fittings
4,200
1,199
5,399
-
1,199
2022
£
33,305
11,262
-
44,567
2022
£
19,745
13,410
-
2,424
35,579

26

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

For the year ended 31 March 2023
14. Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 March 2023
Prior period comparative
Tangible fixed assets
Current assets
Current liabilities
Net assets at 31 March 2022		 £
-
59,245
-
59,245
£
1,199
79,374
-
80,573
Restricted
funds
Restricted
funds		 £
-
30,756
-
30,756
£
-
6,848
-
6,848
Designated
funds
Designated
funds		 £
-
629,489
(38,851)
590,638
£
-
321,012
(35,579)
285,433
General
funds
General
funds		 Total
funds
£
-
719,490
(38,851)
680,639
Total
funds
£
1,199
407,234
(35,579)
372,854

27

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

15. Movements in funds

Movements in funds
Restricted funds
Eveson
EF Bulmer
Arts Council
Edward Gosling Foundation
Acheeva Bed
SCREWFIX
HSBC
Tackling Inequalities Fund
Postcode Lottery
Connexus
Good Things Foundation
The D'Oyly Carte Charitable Trust
WA Cadbury Trust
About Face Restricted
Friday Life Links (Restricted)
Clever Betsy (Restricted)
Priory (Restricted)
Eaton Barn (Restricted)
Studio Mirai (Restricted)
Saxon Hall Café (Restricted)
ECHO Shop (Restricted)
Total restricted funds
Designated funds:
About Face Theatre Company
Smart Arts Storytelling project
Clever Betsy Crafts & Retail
Saxon Hall Café
Craft projects & activities
Sport & Leisure
Echo Shop
Total designated funds
Big Lottery Fund (Inclusive
Volunteering)
Friday Lifelinks supported
volunteering
Wednesday Lifelinks supported
volunteering
Unrestricted funds		 At 1 April
2022
£
9,314
4,911
-
22,246
-
1,991
2,582
4,752
4,502
15,988
2,943
-
-
-
-
232
288
1,000
7,700
-
2,124
-
80,573
(16)
499
494
501
1,000
811
3,518
41
-
6,848		 Income
£
£
25,000
(11,342)
76,902
(78,057)
7,500
(7,500)
18,658
(37,855)
10,000
(10,000)
-
(1,200)
-
(1,935)
-
(2,680)
-
(4,502)
-
(15,988)
2,156
(5,099)
5,000
-
6,000
(6,000)
20,000
(6,000)
4,032
(2,739)
200
(200)
-
(276)
3,000
(3,447)
6,213
(12,230)
2,000
(605)
-
(334)
250
(250)
186,911
(208,239)
85,001
(88,134)
22,479
(23,443)
28,481
(21,773)
11,637
(10,028)
58,277
(66,121)
8,085
(6,423)
61,100
(50,983)
16,947
(12,436)
11,543
(10,759)
303,550
(290,100)
Expenditure		 £
£
-
22,972
-
3,756
-
-
-
3,049
-
-
-
791
-
647
-
2,072
-
-
-
-
-
-
-
5,000
-
-
-
14,000
-
1,293
-
232
-
12
-
553
-
1,683
-
1,395
-
1,790
-
-
-
59,245
3,149
-
465
-
-
7,202
-
2,110
6,844
-
-
2,473
-
13,635
-
4,552
-
784
10,458
30,756
Transfers
between
funds
At 31 March
2023
59,245
-
-
7,202
2,110
-
2,473
13,635
4,552
784
30,756

28

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

15. Movements in funds (continued)

Total designated funds
General funds
Total unrestricted funds
Total funds		 At 1 April
2022
£
6,848
285,433
292,281
372,854		 Income
£
£
303,550
(290,100)
757,321
(441,658)
1,060,871
(731,758)
1,247,782
(939,997)
Expenditure		 £
£
10,458
30,756
(10,458)
590,638
-
621,394
-
680,639
Transfers
between
At 31 March
2023		 £
£
10,458
30,756
(10,458)
590,638
-
621,394
-
680,639
Transfers
between
At 31 March
2023
590,638
621,394
680,639

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

Purposes of restricted funds

Eveson

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. Also contribution to the salary of the Deputy Chief Officer for Social Enterprise to help support and develop these services.

Big Lottery Fund (Inclusive Volunteering)

Year 5 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.

EF Bulmer

Contribution towards the general running costs of the project including salaries, rent & rates, utilities & housekeeping, materials & supplies, and management charges.

Arts Council

Support for About Face, our theatre company to help the actors and staff develop new skills and confidence post COVID.

Edward Gosling Foundation

Support for provision of day opportunities, skills training and social and leisure activities to adults with learning disabilities in Herefordshire, and the care and support provided to enable them to live full and happy lives within their community.

Acheeva Bed

To raise and spend money on a HI/LOW bed to enable relaxation; and additional sensory items for the room. Bed fully depreciated by 31 March 2023.

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.

29

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

15. Movements in funds (continued) Purposes of restricted funds (continued) HSBC

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

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

To run a pilot project to develop radio ECHO, a participant led online news and music show.

Good Things Foundation

Increase digital capability, including training and infrastructure improvement.

The D'Oyly Carte Charitable Trust

To improve the infrastructure at Eaton Barn including a compost toilet.

WA Cadbury Trust

Support for the About Face Theatre Company.

About Face Restricted

Funds raised for the About Face Theatre Company.

Friday Life Links (Restricted)

Funds raised by the project to support additional materials.

Clever Betsy (Restricted)

Funds raised by project to support an outing.

Priory (Restricted)

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

Eaton Barn

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

Studio Mirai

Funds raised by the project to support activities.

Saxon Hall Café

Funds raised by the project to support activities.

ECHO Shop (Restricted)

ECHO’s retail shop where we sell donated items and crafts we make. Participants and volunteers learn retail skills serving customers and organising the shop.

30

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

15. Movements in funds - (continued) 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 & 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.

Saxon Hall Café

Formerly based Saxon Hall, this group has become a cookery club teaching participants new culinary skills and promoting healthy balanced diets.

Craft projects & activities

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

Echo Shop

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

31

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

Notes to the financial statements
For the year ended 31 March 2023
15. Movements in funds - (continued)
Prior period comparative
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
Unrestricted funds
Big Lottery Fund (Inclusive
Volunteering)		 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
At 31 March
2022
80,573
(16)
499
494
501
1,000
811
3,518
41
6,848
285,433
292,281
372,854

32

ECHO for Extra Choices in Herefordshire Limited

Notes to the financial statements

For the year ended 31 March 2023

16. 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		 2023
£
36,087
10,462
46,549		 2022
£
40,028
18,300
58,328

17. Related party transactions

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

33