COMPANY LIMITED BY GUARANTEE NUMBER: 04680035 REGISTERED CHARITY NUMBER: 1104765 ## **Annual Report** 2020|21 Report of the Trustees and Unaudited Financial Statements for the year ended 31 March 2021 The National Appropriate Adult Network Ltd 19 North Street Ashford Kent TN24 8LF Accounts independently inspected by Calcutt Matthews - Chartered Accountants THE NATIONAL APPROPRIATE ADULT NETWORK LTD CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021 ||Page| |---|---| |Report of the Trustees|3 to 21| |Independent Examiner's Report|24| |Statement of Financial Activities|25| |Balance Sheet|26| |Notes to the Financial Statements|27 to 33| |Detailed Statement of Financial Activities|34 to 35| 2 THE NATIONAL APPROPRIATE ADULT NETWORK LTD REPORT OF THE TRUSTEES for the Year Ended 31 March 2021 ## **Reference & Administrative Details** |Company number|04680035 (England and Wales)| |---|---| |Charity number|1104765| |Registered office|19 North Street, Ashford, Kent, TN24 8LF| |President|The Lord Patel of Bradford OBE| |Patron|Professor Gisli Gudjonsson CBE| |Chair|Stephen Gray (interim from 22.10.21)| ||Ian Blackie (interim from 01.11.20, retired as trustee 21.10.21)| ||Richard Atkinson (retired 31.10.20)| |Treasurer|Kevin Wheeler FCA (from 09.04.21)| ||Dipak Kothari FRSA FCCA (retired 01.04.21)| |Other trustees|Adam Smith (retired 19.05.21)| ||Andy Ward| ||Charlie Rose| ||Donna Buffong| ||Lynn Frusher| ||Matthew Haynes (from 18.10.21)| ||Michelle Dixon| ||Pip Lake-Benson (retired 23.10.20)| ||Sue Nash| |Chief Executive|Chris Bath FRSA| |& Company Secretary|| |Independent examiner|Rosanna Turner ACA DChA| ||Calcutt Matthews Chartered Accountants| ||19 North Street, Ashford, Kent, TN24 8LF| |Bankers|Unity Trust Bank, 9 Brindleyplace, Birmingham, B1 2HB| The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the Year Ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). 3 ## **Structure, Governance & Management** ## **Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **Recruitment and appointment of new trustees** The charity is governed by a Board consisting of up to thirteen trustees. Trustees are primarily elected at the AGM by, and from within, the full membership of the organisation. However, a maximum of six trustees can be co-opted by the Board to ensure a diverse mix of skills, experience. An induction pack is provided for new trustees. All trustee appointments are time-limited under the governing document. Individuals are appointed for a period of three years, after which they must retire but can stand for a further three-year period. The Board is currently undertaking an extensive search for a new Chair of Trustees. An open recruitment process has been adopted to support our commitment to equality, diversity and inclusion and secure the best possible candidates. To allow for this process to be carried out effectively, two existing board members have acted as Chair on an interim basis. ## **Organisational structure** The management of the charity is the responsibility of the Board. Major decisions on policy and expenditure are made by the Board. Day to day decision-making is delegated to the Chief Executive Chris Bath, who was appointed by the Board in March 2013. ## **Risk management** The Board maintains a detailed risk register, which was reviewed and adjusted during the year. The major risks to which the charity is exposed have been considered, with particular focus on events that would seriously impede the operations of the charity. Steps to mitigate risks are summarised below. NAAN’s Treasurer is a qualified chartered accountant. Financial records are maintained on a secured cloud-based system, Xero. Monthly, accounts are reconciled, and cash flow and budget are monitored. Management accounts are reviewed by the Board quarterly. Payroll is calculated by an external company. NAAN has dual authorisation for all bank payments. External accountants are used to support the preparation of annual accounts. To preserve NAAN's reputation, the charity exercises great care to ensure that communications are factually accurate and in line with organisational policy. Roles and responsibilities are clearly defined by the Board in writing and reviewed annually. Rules for the appointment and retirement of Board members are clearly defined in the governance document. New trustees sign a formal agreement covering conflicts of interest. Data is held within the secure cloud-based systems. Where required, hard copies of information are stored in secure storage units. NAAN complies with data protection law and is registered with the ICO. Appropriate insurance policies are in place and are reviewed annually. The primary risks are loss of income through AA scheme consolidation (reducing membership numbers); a reliance on a key Home Office grant agreed annually; and given the very small size of the staff team, the loss of staff members. These risks are mitigated via our reserves policy, annual reviews of membership fees, seeking a multi-year agreement with the Home Office, and a strategic focus on income diversification (grant funding from other sources and opportunities for earned income in line with our charitable objectives). 4 ## **Objectives & Activities** The charity has referred to the Charity Commission's guidance on public benefit when reviewing aims and objectives in planning future activities. In particular, the Board considers how planned activities contribute to the aims and objectives they have set. ## **Charitable Objects** The charity aims to benefit the public by achieving the objectives as set out in its constitution. These are: a) To promote the care of children and young people under 18 years and the care of people of any age who are mentally vulnerable as a result of mental ill health, learning disability, neurodevelopmental disorder or any other reason and who are detained or otherwise questioned under the Police and Criminal Evidence Act 1984 by the provision of support and guidance for, and the promotion of best practice amongst appropriate adult services. b) To promote or assist in the promotion of, the sound administration of the criminal justice system by the provision of support and guidance for, and the promotion of best practice amongst appropriate adult services. ## **Vision** Every child and mentally vulnerable adult detained or interviewed by police has their rights and welfare safeguarded effectively by an appropriate adult. ## **Activities** NAAN seeks to achieve its objectives through: - Professional Development - Providing events for scheme co-ordinators, appropriate adults and others - Sharing training resources with members to assist appropriate adults training - Delivering training and qualifications ## National Standards - Publishing national standards to inform commissioners, managers, practitioners and accountability bodies - Promoting and supporting the adoption of national standards Information, Advice & Guidance - Providing resources for commissioners, providers, appropriate adults and the public - Providing regular updates on effective practice, evidence, legislation and policy - Supporting engagement between appropriate adult schemes and commissioners that will improve the availability and quality of appropriate adult services - Assisting potential appropriate adult volunteers find a local scheme ## **Mission** To gather, develop and share knowledge, skills and standards that inform, inspire and support effective appropriate adult policy and practice. ## **Strategic Objectives** Improve practice: More children and vulnerable adults are safeguarded by effective appropriate adults operating to national standards. Improve policy: National and local policy development and implementation enable appropriate adults to be effective. ## Informing Policy - Listening to, and consulting with, appropriate adult schemes - Working with central and local government departments, police forces and organisations, the Youth Justice Board, inspectorates, charities and other stakeholders towards improving policy, guidelines and legislation - Contributing to public discourse via articles, events, networking, website and social media Improve ourselves _:_ NAAN is a more effective, efficient and sustainable organisation. 5 Membership on 31st March 2021 England (excluding London) Active 8 Support Services Anglia Care Trust Bedfordshire and Luton EDT - new Bedford Borough Council - new Birmingham YOS Blackpool AA Service - new Bracknell Forest EDT Bristol YOT Caring for Communities and People Catch22 Northamptonshire Central Bedfordshire Council - new CGL South Yorkshire AA Scheme Child Action Northwest Cloverleaf Advocacy Cornwall & Isles of Scilly YOS Coventry Emergency Duty Team - new Coventry YOS Cumbria Youth Offending & Prevention Service - new Devon and Cornwall Police Dorset Advocacy East Sussex YOT Focus Findings UK - new Gateshead YOT Grimsby YOS (North East Lincs) Hampshire Constabulary Hertfordshire Youth Justice Service Hull University Students’ Union (HUSSO) Kaedi Recruitment Agency - new Leicestershire Police Leicestershire YOS Luton Borough Council - new Luton YOS Middlesbrough and Stockton Mind Milton Keynes YOT North Lincolnshire YOS North Yorkshire County Council North Yorkshire YJS Northumbria Healthcare NHS Trust Office of the PCC for Merseyside Ongo Recruitment Onside Advocacy - new Open Road Appropriate Adult Service Oxfordshire YOS PoHWER Advocacy Poplar HARCA - new Potton Kare Services - new Professional Advocacy Support Service (PASS) Royal Borough of Windsor & Maidenhead YOT Sandwell Children's Trust Sefton YOT Serenity Welfare Slough Borough Council - new Slough Youth Offending Team - new Solihull YOS Somerset YOT St. Helens YOS Stockton YOS Stoke-on-Trent YOS Surrey Appropriate Adult Volunteer Scheme Swindon YOT- new The Brandon Trust AA Service University of Sunderland – NLASS Warwickshire YJS West Berkshire Council - Specialist MH Team West Berkshire YOT - new West Sussex YOS AA Service Wiltshire IYS Volunteer AA Scheme Wokingham Borough Council Wolves Appropriate Adult - new Wrexham Youth Justice Service - new YMCA Trinity Group York YOT Young Lives Foundation YSS ## London Colindale Appropriate Adult Scheme (Barnet) Croydon Voluntary Action Hammersmith & Fulham YOS - new Havering Social Care Academy Hounslow YOS Southwark AA Scheme Sutton Council Wandsworth YOT Westminster AA Volunteer Service West London Forensic Social Work Service (NHS) ## Wales Blaenau Gwent & Caerphilly YOS Cardiff YOS Carmarthenshire YSS Ceredigion YJS Digartref Cyf Gwynedd & Môn YJS Hafal Monmouthshire & Torfaen YOS Neath Port Talbot YOT Newport YOS Powys YJS Vale of Glamorgan YOS Northern Ireland MindWise UK wide Appropriate Adults UK Headway, the brain injury association The Appropriate Adult Service The Children's Society - new Vaughan Training & Consultancy - new Other territories Childline Gibraltar Isle of Man Government _Local youth offending teams are variously referred to as Youth Offending Service (YOS), Youth Offending Team (YOT) and Youth Justice Service (YJS) or integrated into wider an Integrated Youth Service (IYS) or Youth Support Service (YSS)_ 6 ## **Achievement & Performance** ## **Charitable Activities** ## Our strategic objectives for 2020/21 1. Improve the efficiency, effectiveness, consistency and sustainability of appropriate adult scheme development and commissioning 2. Improve the efficiency, effectiveness and consistency of scheme leadership and coordination 3. Improve the efficiency, effectiveness and consistency of AA practitioners 4. Increase understanding of, and confidence in, the appropriate adult safeguard ## Covid-19 statement When the Covid-19 pandemic struck in March 2020, we could not have foreseen the deep and enduring impact it would have on the work of appropriate adults and of NAAN. ## Impact on our members While demand for appropriate adult (AA) services initially dropped in some areas, arrest rates quickly returned to normal (above normal in some areas). Some AAs (many of whom are older people and volunteers) had to ‘shield’ under Government guidance and were unavailable. Despite this, and uncertainty about the risks, AA schemes were committed to providing in-person support throughout the pandemic. They recognised that remote attendance would disadvantage children and vulnerable adults and force police to breach safeguards. This created immense workloads for local scheme leaders. Some had to attend callouts themselves, while filling rota gaps with existing AAs, recruiting and training new ones, and adapting to new technologies and practices. They had to obtain, disseminate, understand and respond to regularly updated guidance from a range of bodies. With few exceptions, local schemes met demand, in person. Local AA schemes dealt with unprecedented challenges but are undoubtedly exhausted by the immense effort. ## Impact on our activities NAAN’s value as a national network was never more obvious than this year. The sector relied heavily on our representation and coordination function, which delivered a significant impact on the lives of thousands of children and vulnerable people. The pandemic did delay our new strategic plan, as we near instantly adjusted our focus to Covid-19. Operationally, we were well placed to respond to the pandemic, with staff already operating virtually. Some activities, such as events and training, required us to acquire new software and develop new skills. Board meetings were conducted by video conferencing. There was significant additional demand for support from our members and engagement with national partners. Responding to the deeply concerning invention of remote legal representation dominated our time and our impact. ## Impact on expenditure Change-related costs were relatively low. There was additional spending on contracted administration to enable our two employees to meet extra demand for support and engagement with partners. There were additional costs for software such as Zoom Webinars for large group events, but travel, venue and catering costs were removed. Spending on workforce development was delayed because staff time was redirected to the Covid response. There were limited travel-related savings as NAAN has always kept these low. ## Impact on income There were some income losses due to the switch to free member-only online events. Furthermore, the expansion of the qualification was curtailed as schemes focused on emergency response. However, we secured a grant of £9,731 from the Coronavirus Community Support Fund (via the National Lottery Community Fund), supporting our Covid-19 response work. We swiftly moved our training online and amended pricing, achieving our training income budget despite the lower prices by delivering 40% more training days than expected (with reduced travel time offsetting extra staff time). 7 **Objective 1: Scheme development and commissioning** ## National standards ## The national standards for the development and provision of AA schemes are a foundation stone for NAAN’s work. As such, they contribute to all our strategic objectives, including our work with policy makers, partner agencies, providers, as well as those responsible for locally developing or commissioning AA schemes. There were 1,179 downloads of the _National Standards 2018_ during the year. Compliance with our standards was explicitly referenced in the service specifications for 6 new tenders: ## Commissioning advice In total, we provided free development and commissioning advice to 15 local areas. We also supported commissioners by disseminating 6 contract opportunities (tenders) to our network of providers. Our MOPAC (London Mayor’s Office for Policing and Crime) funded project to provide additional support for the London AA commissioning initiative (a partnership between MOPAC, NHS England and London councils) was completed successfully during the year. - Suffolk - Croydon and Sutton - South Yorkshire - Hampshire, Southampton, Portsmouth, and the Isle of Wight - Cambridgeshire and Peterborough - London Borough of Tower Hamlets ## National development and commissioning guidance We continued to offer all public sector bodies free access to our online knowledgebase. The guidance is provided in a practically focused Q&A format, bridging the gap between the national standards and the practical challenges of developers and commissioners with very limited time to devote to AA provision. By the end of the year: - A further 17 new scheme commissioners / developers had registered to use the guidance ## YPO We began active work on our partnership project publicly owned purchasing body YPO, developing a “Dynamic Purchasing System” (DPS) for AA services. This purchasing framework is designed to make it as efficient as possible for authorities to commission high quality AA provision. During the year: - We developed a detailed template specification for users of the DPS (50+ pages), in line with our national standards. - The DPS officially launched - We worked with YPO to vet and appoint the first 4 providers - The DPS received 10 commissioner expressions of interest (EOI) - 2 commissioners committed to using the DPS to commission AA provision - 31 people were registered in total - We identified 16 commissioning projects that had used the guidance, covering a total of 24 local authority areas. 8 **Objective 2: Scheme leadership and coordination** ## Membership network Over the year, we were incredibly pleased to accept new membership applications from 21 organisations, up from 8 the previous year. This was particularly positive given the continuing consolidation trend in AA provision. Half of the 6 non-renewals were the result of combining provision across geographical areas or across children and vulnerable adults. The remaining 3 nonrenewals were organisations that were not currently responsible for delivering AA provision in any geographical area. On 31st March 2021, NAAN had 105 members (see page 6). ## E-updates Our e-update service (typically covering developments in law, policy, research, and practice) was unsurprisingly heavily focused on Covid-19. While we had already published 10 e- updates relating to Covid in March 2020, the demand for information did not abate as we moved into 2020/21. More than 50% of our e-updates during the year related to Covid-19. These included alerts regarding: - New NAAN guidance - New guidance from third parties, such as the NPCC - NAAN member events ## National volunteering portal We provided online information for prospective volunteers and kept our interactive national map updated, allowing potential volunteers to identify local schemes. Based on Google Analytics, our: - online network map was viewed 10,225 times, up from 6,201 last year - A Government consultation on proposed changes to PACE - Member surveys, particularly in relation to remote legal advice. The e-updates system was a critical tool in our Covid-19 response. It enabled us to rapidly disseminate guidance to members (from ourselves and others such as the police) and to get information quickly from the frontline to impact on our decisions and those of policymakers. - information on becoming an AA was viewed 13,999 times, up from 10,387 times last year Although we do not promote this as a service for capacity reasons, we also provided information to 39 potential volunteers who made contact by email and phone. 21 new members 9 ## Coordinators’ knowledgebase We continued to develop our online knowledgebase for local AA leaders, which acts as a 24/7 central hub of information and guidance for those managing appropriate adult schemes. We published 40 new articles, taking the total to 176. Many of these related to supporting the Covid-19 response (e.g. managing referrals, testing for Covid, vaccinations, updates on protocol on remote legal representation). However, we also added new content on other issues, such as trauma informed practice, adverse childhood experiences, virtual court, commissioning, and assertiveness. Overall, the resource was viewed by members 1,304 times. Our analysis of which PACE processes required the physical presence of an AA (one of our key Covid-19 resources) was downloaded 88 times, supporting the continued presence of AAs in police custody. In addition, the third-party Covid-19 guidance, for example the NPCC’s guidance on the use if personal protective equipment (PPE) in police custody was downloaded by member organisations 326 times. Individual member advice and support We provided a national phone and email advice and support service for local scheme leaders, researching answers and responding in an accurate, timely and comprehensive way. At 179 cases, demand for support was around 47% higher than the previous year (and 82% higher than the year before). Many member queries related to Covid-19, with themes including: - Remote legal representation - Requests for AAs to act remotely - Testing for AAs - Access to vaccination for AAs - PPE - Scheme management (e.g. how to deliver shadowing in the context of a pandemic) However, the service continued to handle a diverse caseload, with 73% not relating to the pandemic, including: - Effective practice - PACE rules, changes and breaches - Complaints - Recruitment - Vetting - AA training and qualifications - Use of AAs outside of police investigations (e.g. courts, immigration, DWP) - Commissioning 179 - Supervision and support - Operating hours - Rota management advice cases - Data protection and GDPR - Legal privilege. 10 ## Events for local scheme leaders We replaced our normal series of three ‘inperson’ professional development days around the country with a series of more frequent free online events. During the year we delivered 8 events for local scheme leaders. All events were recorded and uploaded onto the secure area of the website for future reference and those unable to attend. While the Covid-19 response dominated, we were also able to deliver some nonCovid related events, on criminal exploitation and assertiveness. ## Members’ meetings We held 7 members’ meetings in April, May, June, July, September, October and January. Total attendances were 293. ## _Covid-19_ 5 of these meetings focused on “Leading AAs during Covid-19”. These were used to discuss guidance and best practice, disseminating information on the responses of relevant agencies (e.g., remote legal advice), identifying implementation issues (e.g. PPE). They included guest speakers such as Rachel Johnson (National Police Chiefs’ Council) and Richard Atkinson (Law Society). ## _Appropriate adult assertiveness_ Our October members’ meeting (paired with our AGM) focused on supporting local leaders to develop assertiveness amongst their AAs. We facilitated a discussion around a prepared case study, which local leaders could then use locally in their own training. ## _Criminal exploitation_ At our September members’ meeting, Becky Fédia (The Children’s Society) delivered an awareness raising session on criminal exploitation, focused on the potential for positive impact by AAs. ## Criminal exploitation (local champions) 300+ leader event attendances With a high level of interest from members, we pursued a partnership with The Children’s Society to deliver dedicated training on criminal exploitation to AA schemes. In October, TCS delivered a dedicated ‘Local Champions Training’ event. This was attended by 23 local AA schemes leaders. Of feedback respondents: - 100% said their knowledge & skills on criminal exploitation had improved - 100% said they would do something differently as a result. 11 **Objective 3: Appropriate adults have improved knowledge and skills** ## Events for frontline AA practitioners ## Criminal exploitation (practitioners) As the final stage of our partnership, The Children’s Society delivered training on identifying and responding to criminal exploitation of children directly to appropriate adults. This marked a significant new approach for NAAN, which has traditionally always delivered information and support to local scheme leaders – not directly to AAs. However, it presented a highly efficient approach (and a very welcome one in the context of all those local leaders were dealing with at the time. Over 240 AAs attended the training, and of feedback respondents: - 99% reported that their knowledge and skills had improved - 84% reported that they would be doing something differently because of the event. ## Remote legal representation (webinar) In January, we held a national Covid-19 event for frontline practitioners within our member schemes. The event focused on the move to remote legal advice. It included a panel discussion, chaired by NAAN and featuring a solicitor, a legal representative, the National Police Chiefs’ Council, the Police Federation, and a forensic psychologist / registered intermediary. We used a Q&A format that covered the key issues previously raised with NAAN and questioned asked on the day. 289 people attended the event, and of feedback respondents: - 93% reported that their knowledge had improved ## Remote legal (Learning Conversations) We followed this up with a further innovation in our activities, which we called _Learning Conversations_ . Conversations were on the topic of remote legal advice and were facilitated by NAAN staff and trustees. We found this allowed for a richness, depth and exchange of ideas that mass presentations simply cannot achieve. However, we also learnt that this approach would suit longer term, repeated engagement (for which we do not currently have the resources) rather than the short, one-off sessions we ran. It was clear that AAs were hugely varied in their knowledge and experience. In some cases, the session was only long enough to start to identify areas for development, which may have had a short-term negative effect on their confidence. 57 AAs attended across 2 days (4 sessions) in breakout groups of 4 or 5. Of feedback respondents: - 85% reported that their knowledge has improved - 81% confidence improved - 81% will do something differently because of the event. 586 AA event attendances - 87% reported that their confidence improved - 79% reported that they would be doing something differently, because of the event. 12 Direct training and development ## iKAAN (practitioner knowledgebase) We continued to expand, maintain and promote our ‘internet knowledgebase for the AA network’ (iKAAN). This was launched in June 2018 as a 24/7 service for AAs, as they navigate a complex set of legislation, codes of practice and case law. We added 27 new articles in 6 topic areas. 3 topic areas were Covid-19 related: - AAs attending custody - Remote legal representation (from 17th May 2021) - Summary by AA involvement. - And 3 topic areas were not Covid related: - Solicitors and legal representatives - Caution - Intermediaries. A further 316 appropriate adults registered for a free iKAAN account (compared to 95 last year). At the end of the year, the net total after account closures was 644 people registered. This year, we provided 23 days of direct training, an increase of 35% on last year, and 40% higher than our budgeted expectation for the year. 230 people benefited from our direct appropriate adult training across 16 organisations: - Birmingham NHS Community Services - Bournemouth, Christchurch and Poole Council - Brandon Trust - Community Therapeutic Services - Coventry YOS - Focus Findings - Gwynedd & Mon YJS - London Borough of Havering - London Borough of Sutton - Potton Kare Services - Slough Adult Services - The Appropriate Adult Service - The Children’s Society - University of Sunderland - Wandsworth YOS - West London Forensic Social Work Service (Broadmoor Hospital). 122 training participants completed an online feedback form: - 98% said they were satisfied 230 iKAAN registrations - 98% said the training was pitched at the right level - 98% said it struck the right balance between breadth and depth - 92% said their knowledge or skills had improved “a great deal” or “a lot” (8% said “a little” or “a moderate amount”). 13 ## National accredited qualification We continued to offer access to the Ofqual-accredited Level 2 qualifications in Working as an Appropriate Adult, working in partnership with awarding body Gateway Qualifications and our members. 6 learners successfully completed a qualification and were awarded certificates. 35 new learners registered for the qualification, from the following schemes: - London Borough of Southwark Youth Offending Team - Cumbria Youth Offending & Prevention Service - The Appropriate Adult Service Two additional organisations successfully completed the tutor assessment stage, ready to begin delivering the qualification. Tender specifications published by Sutton & Croydon and Hampshire include the qualification. This is a very positive development, illustrating that commissioners value _evidence_ that practitioners have achieved the necessary core learning. It is also evidence of the impact of our move to also support the local developers and commissioners of AA provision, not just schemes. There were 1,301 views of the qualification page and 762 downloads of the qualification information document. 35 New learners registered Guidance for familial and other untrained appropriate adults We reviewed and updated our guidance document for untrained AAs, ready for publication following review by the Home Office. We also began a new partnership with Dr Miranda Bevan (London School of Economics) to develop an animated video for familial AAs. This is based on Dr Bevan’s extensive research with children in police custody. It is intended to be significantly more accessible than the core PACE Codes of Practice and existing written documentation. The video will be available online for parents prior to attending as AA and we also hope to secure support from police forces to share the resource in custody, perhaps on digital devices. An initial draft script was produced, and an initial illustration example was commissioned. Academics currently working on a Nuffield funded research project in police custody in several forces (Dr Vicky Kemp and Lesley Laver) agreed to test script with children and parents. The final resource will be available from late next year. 14 **Objective 4: Increased understanding of, and confidence in, the appropriate adult safeguard** ## Covid-19 ## **National representation and coordination** The Covid-19 response had an immense impact on our engagement beyond the membership network. Thanks to relationships developed in recent years, (e.g. Home Office, National Police Chiefs’ Council, Police Federation, Independent Custody Visiting Association, NHS England and Law Society), NAAN was deeply involved in national coordination of the frontline response. We also forged new relationships, such as with the Ministry of Justice, Legal Aid Agency and Crown Prosecution Service. New weekly meetings of the national operational partners, chaired by the Home Office, were added to our usual contributions via the PACE Strategy Board and Strategic Custody meetings. We also regularly attended national custody calls between the NPCC lead for Custody and the heads of custody for each police force. We continued as members of the Independent Office for Police Conduct’s External Stakeholder Reference Group. This engagement allowed us to raise, and in some cases resolve, the issues raised by local AA schemes. ## **Physical attendance by AAs** As the pandemic began, AAs had been asked to support children and vulnerable people remotely (by video conference) in some police force areas. By April 2020, we had conducted a detailed analysis of the Police and Criminal Evidence Act 1984 and Codes, identifying that the physical presence of AAs was required for key procedures, including interviews. This was with national strategic partners, and 805 copies were downloaded from our website. I am writing to you during this hugely challenging time to express my gratitude to you for your commitment to supporting children and vulnerable adults in police custody amidst this pandemic. Your perseverance, courage and continuing desire to help is greatly appreciated. Appropriate Adults are a vital part of the criminal justice system and perform a key role in keeping the system going and avoiding miscarriages of justice. I know that many Appropriate Adult schemes are under significant pressure at this time and facing considerable reductions in members’ availability, but due to your efforts ability to meet demand remains high. I am hugely grateful for all of your work to ensure your services remain available. By continuing to support children and vulnerable adults in police custody, you are protecting some of the most vulnerable people in society and ensuring their rights continue to be respected. ## **Kit Malthouse MP** Minister for Crime and Policing We also worked with our members to develop a national position to ensure physical AA attendance at custody. 15 ## **Remote legal advice** This entirely unexpected area of work became the dominant feature of NAAN’s work outside the membership network. ## _JIIP version 1_ On 2[nd] April 2020, the Joint Interim Interview Protocol (JIIP) was published. This was an agreement between the National Police Chief’s Council, Crown Prosecution Service and the professional associations of solicitors and legal representatives. A response to lawyer’s concerns about the impact of Covid-19 on their health (and later their financial sustainability), it encouraged the use of remote legal representation in police custody and interviews – a novel concept not included in the Police and Criminal Evidence Act 1984 or its Codes of Practice (PACE). NAAN immediately raised concerns, highlighting absence of any special processes or safeguards for children and vulnerable adults. ## _JIIP version 2_ In response, by 24[th] April, the signatories published JIIP version 2. This added safeguards before remote legal advice could be used. The police must assess a child’s or vulnerable adult’s suitability for remote legal representation. A child or vulnerable adult must give informed consent, as must their appropriate adult. In the coming weeks, we ran multiple member surveys. We found continuing issues, including a lack of awareness of JIIP v2 amongst police and lawyers, with children, vulnerable people and AAs not being asked for their consent to remote legal representation. We provided extensive guidance for AAs, encouraging them to raise awareness of JIIP v2 in police custody. ## _Home Office proposal to amend PACE_ In June, we submitted a detailed response to Home Office proposals to amend the PACE Codes to support the continuation of remote legal advice. We recognised the potential benefits of stronger legal foundations and improved compliance with safeguards. However, we raised 10 concerns related to: risks to justice, use of remote as a default, the effectiveness of consent as a safeguard, and the effectiveness of assessments of suitability by police officers. We provided 5 alternatives to amending PACE and 7 mitigating proposals if the policy proceeded for Parliamentary approval. We raised awareness of the consultations with other organisations and informed and supported their submissions. We also met with Home Office, Law Society, Transform Justice, HMICFRS and NPCC regarding the proposed changes. In February, the Home Office publicly announced it would not proceed with the changes in support of JIIP. _Working with operational partners_ In July, a further NAAN member survey found continuing concerns amongst AA schemes about informed consent, assessments of suitability and vulnerable suspects being disadvantaged. Members felt PACE should not be changed to support remote legal advice and supported NAAN’s consultation response. Results were shared via the Home Office’s weekly operational partners meeting. In September, The NPCC wrote to all police force addressing concerns over the lack of recorded consent and asking them to improve. In December, we worked with the Youth (legal) Practitioners Association (YPA) to deliver an online roundtable for solicitors and legal representatives, on lawyers and appropriate adults in the Covid-19 context. Effective national representation and coordination during Covid-19 16 ## _Transform Justice & Fair Trials partnership_ From October 2020, we developed a critical partnership with charities Transform Justice and Fair Trials International. Based on a survey of 315 appropriate adults within our network, covering all police forces areas in England and Wales, in February 2021 we co-published _Not remotely fair? Access to a lawyer in the police station during the Covid-19 pandemic_ . The report highlighted the severe negative impact of remote legal representation on children and vulnerable adults. The report was covered by mainstream and specialist media (The Guardian, The Justice Gap, The Law Society Gazette and Policing Insight). We wrote a joint letter to Ministers and met with key decision-makers and officials from: Ministry of Justice, Legal Aid Agency, CPS, Law Society, London Criminal Courts Solicitors' Association, and NPCC. We engaged with civil society organisations (e.g. Criminal Justice Alliance, Alliance for Youth Justice, and Justice) and leading academics including Professor Michael Zander and Professor Ed Cape. In March 2021, the JIIP signatories agreed to remove children and vulnerable people, starting from stage 3 of the Government’s Covid-19 roadmap on 17th May. ## **Video remand hearings** The use of video remand hearings (VRH) conducted from police custody increased during the pandemic. AAs do not have a role in any court proceedings. Some AAs were asked by police to attend the hearings with defendants who they had been supporting as suspects. This was an issue because there was no defined role, guidance or funding and AA services were already stretching to meet demand. We produced a paper on use of AAs in Video Remand Hearings, including recent amendments to Criminal Practice Directions. To ensure it was clear that the AA role is currently limited to suspects at the investigative stage, we engaged with the Home Office, NPCC Video Enabled Justice Team, Ministry of Justice, and Judicial Office (via membership of the judgechaired Youth Justice Working Group facilitated by HM Courts and Tribunals Service). ## **Youth Justice** We made a submission to HM Government Criminal Justice Board’s _Covid-19 impact on Youth Justice: Mapping the journey through the system._ This included proposing amendments to reflect that AA support for children in the police station could not be delivered remotely. A NAAN member raised a concern with us about a joint IOPC, NPCC and YJB publication, _Coronavirus & The Police: A guide for under 18s._ The guide advised children that they should expect AA support could be by telephone. We were able to secure a revised version, stating that, “An appropriate adult must attend to help you in person” and “You still have a legal right to a solicitor for legal advice”. 17 Building the evidence base ## **Vulnerability Research Network** The British Society of Criminology (BSC) Vulnerability Research Network (VRN) was launched. The VRN was co-developed by Dr Harriet Pierpoint, Dr Roxanna Dehaghani and NAAN, as a specialist network on vulnerability in justice, bringing together academics, policy makers and practitioners. We attended regular meetings of the VRN steering group. NAAN co-organised and virtually hosted the inaugural event, which was addressed by patron and former trustee Professor Emeritus Gisli Gudjonsson CBE on, ‘What does it mean to be vulnerable and what are the challenges?’. ## **Work in Progress research group** We also created and maintained links with academics via monthly meetings of the _Work in Progress – Vulnerable Suspects and Defendants_ research group. ## **Young suspects** We continued to contribute to the Steering Group and Advisory Group for Dr Vicky Kemp’s (Nottingham University) Nuffieldfunded research project _Digital Legal Rights: Improving Procedural Safeguards for Young Suspects_ , chaired by Lord Carlisle ## **Digital communication research** We supported a successful application led by Professor Gavin Oxburgh (Northumbria University) to UKRI for funding for research into the use of digital communication for interviewing and legal representation. NAAN is an unfunded project partner, giving advice, access to participants and supporting impact. ## **Vulnerable suspects in DWP investigations** We supported academic Moira Tombs (University of Hertfordshire) as she developed and instigated a research project into the use (or lack) of AAs in DWP (benefits) investigations, which must follow the PACE Codes of Practice. ## **Encouraging and supporting better identification of vulnerable suspects** We published the _There to Help 3_ report, the latest in our research series using data from police forces and NHS England. The report was co-authored by NAAN CEO Chris Bath and Dr Roxanna Dehaghani (Cardiff University). It found that changes to the vulnerability provisions in PACE Code C in August 2018 did not have a significant impact on the identification of vulnerable suspects. While clinical academic research indicates that 39% of adults have a mental disorder, we found that the police recorded the need for an AA in 6.2% of adult detentions in 2018/19. This varied between forces from 0.1% to 24% and compared to 5.9% in 2017/18. The rate in voluntary interviews was only 3.5%. Thus, over 200,000 vulnerable adult suspects are not being recorded as needing an AA each year (with around 57,000 being recorded). There to Help 3 also provided 10 recommendations. The full report was downloaded 1,960 times between September and March. To further share the findings and recommendations we produced: - Exec summary (955 downloads) - • Infographic PDF (400 downloads) • Infographic video (217 views) - Vulnerability video (400 views) 18 In its coverage of the report, The Guardian quoted Martyn Underhill, the Association of Police and Crime Commissioners’ lead on police custody, as saying he would write to ministers to raise awareness of NAAN’s report and seek action. This latest report from NAAN is a sobering and disappointingly familiar read. Unfortunately, the evidence collected by Naan clearly demonstrates once again how vulnerable people entering police custody are still not receiving the necessary support. This is neither in the interests of police, suspects, nor victims and can undermine public confidence in policing and the wider justice system. There is still a clear need for the government to determine through legislation, a responsible agency to deliver appropriate adults for vulnerable people aged 18 and over, and to provide ringfenced funding for the delivery of this resource. ## **PCC Martyn Underhill** Lead on police custody Association of Police and Crime Commissioners ## Improving accountability We continue to believe that a more effective accountability framework would support the development of more effective AA commissioning and provision. However, Covid-19 limited our ability to progress this objective this year. Nevertheless, in May we submitted a response to HM Inspectorate of Probation’s _Consultation on our inspection framework and programmes 2020-2021 and 2021-2022._ This set out the opportunity to include AA provision (for children) within the scope of full joint inspections of youth offending teams. Later in the year we met with HMI Probation to discuss the inclusion of AA provision in their planned thematic on the impact of Covid-19. This resulted in a commitment to include AA provision and hold further discussion about broadening this into their wider inspection framework in future. Ensuring independent vetting A small number of schemes were asked to subject their AAs to vetting by the police, in addition to their own vetting procedures which include Disclosure and Barring Service checks. This is unnecessary, inefficient, expensive, and inappropriate in terms of independence. We worked with the National Police Chiefs’ Council leads on both Custody and Vetting to address this issue. Their national guidance on vetting was amended to make explicit that AAs should not be subject to “Non-police personnel vetting”. The areas seeking to apply NPPV accepted this and applied the normal approach. Raising awareness with forensic physicians We were asked to develop and deliver a seminar on the role of the AA for the Faculty of Forensic and Legal Medicine of the Royal College of Physicians. 19 Information and advice Understanding racial disproportionality We met with the Home Office regarding disproportionality and the racial diversity of appropriate adults. We attended an event on building a diverse criminal justice workforce run by the Criminal Justice Alliance and Ministry of Justice and Ministry of Justice. We met with the Ministry of Justice Youth Justice Policy team to discuss policy proposals in response to the Lammy Review. We met with an individual AA to discuss the collating of resources in relation to the experiences of Black, Asian and other minority ethnic groups to support more effective practice by AAs. ## Recognising neurodiversity We contributed to _Neurodiversity in the criminal justice system: A review of evidence_ by the Criminal Justice Joint Inspectorates. We did this both by attendance at a roundtable and a written evidence submission (in partnership with Dr Dehaghani). Improving lived experience inclusion We were extremely pleased to commission the award-winning Michaela Booth, to conduct an independent expert review into how NAAN can practically advance our commitments to service user participation. This included reviewing our existing activities and resources, as well as our new strategy and plans. The scope included both the potential for greater inclusion of lived experience within the charity and for NAAN to effect change in the involvement of people with lived experience in the AA sector as a whole. The report provided 11 practical recommendations, including the creation of a national user involvement lead role to drive this work across England and Wales. ## **For children and vulnerable people** Over the year, there were 1,555 views of our web page providing information for people who need an AA. In addition, there were 229 downloads of our guide on how to make complaints. ## **For the families and supporters of children and vulnerable people** There were 314 views of our web page providing information for family members and other supporters of children and vulnerable adults who are subject to police investigation and/or detention. Also see _Guidance for familial and other untrained appropriate adults_ on page 14. NAAN does not have a formal service providing direct advice to the public by phone and email. Nonetheless, we regularly receive contact from both people subject to police investigation and/or detention and their supporters. People are often understandably emotional and often frustrated that the ‘system’ has not listened to their needs or treated them fairly. This year we responded to 57 such queries. These queries require skilled handling and significant amounts of time. Given the very small size of our staff team, this is an area of need that we will consider further to determine how it can best be met. ## **For non-AA professionals** We provided a national centre of expertise about AA work for related professionals (e.g. police officers, lawyers, liaison and diversion, healthcare, researchers), responding to queries accurately and in a timely manner. Over the year we assisted with 89 direct requests for information and advice and there were 225 page views of our information for related professions. There were 3,710 downloads by nonmembers of our various PACE updates. 20 ## **Organisational development** ## Strategic plan In 2019, we began a strategic review of our work. This included both externally facilitated away day for staff and trustees, and detailed survey of our members. In 2020, we developed a draft of our new strategic plan. This set out a revised vision, mission and strategic objectives. We also set out our values and ways of working for the first time. For each strategic objective, we also developed clear “changes we want to see” and priority activities for the next five years, all underpinned by clear evidence of need. Some of the key elements of the new strategy include: - Ensuring the interests of children and vulnerable people are always at the centre of our work - Expanding our support for family members who act as AAs - Explicitly recognising our ability to work in partnership with other to effect systems change, and the value of this work - To effectively deliver our mission, the charity needs to grow - Strengthening sustainability and independence by diversifying our funding (developing a trusts and foundations fundraising function, and increasing earned income) - Ensuring that equality, diversity, and inclusion (which are at the heart of the appropriate adult role) are reflected in our organisation. The urgent need to respond to Covid-19 has delayed the formal implementation of the new strategy. However, this has not prevented us from applying the learning from the review process. ## Equality, diversity and inclusion The Board began the recruitment process for the new Chair of Trustees. In line with the values in our new strategy, this is an open recruitment campaign, actively seeking and supporting expressions of interest from people in disadvantaged or underrepresented groups. The Booth Report (see _Driving lived experience inclusion_ above) provided practical recommendations on how NAAN can practically advance our commitments to the inclusion of people with lived experience. ## Development and sustainability To make progress on the funding required to deliver our new strategy while staff were heavily focused on the Covid-19 response, we were extremely pleased to commission Selinger Consultants. Leah Selinger is a well-known and respected professional with extensive knowledge of criminal justice and vulnerability. Leah helped with: - a 1 page visual of our new strategy - a compelling core case for support - researching potential funders - a pipeline of potential applications - developing internal skills. In addition, Leah supported us to make four applications. By the end of the year: - Garfield Weston Foundation granted £10k towards core costs. - Esmée Fairbairn Foundation had accepted our expression of interest, met with us, and invited us to submit a full application - Two other charitable funders were considering our proposals. In addition, to free up staff time to both respond to Covid-19 and work on sustainability, we were pleased to commission Anne Harper to provide administration services to the charity throughout the year. 21 ## **Financial Review** ## Financial performance The Statement of Financial Activities is shown on page 23. The surplus for the year was £23,232 (2020: £2,863). The net assets amounted to £144,713 (2020: £121,481). ## Reserves policy NAAN’s reserves policy is to maintain sufficient level of designated reserves to enable normal operating activities to continue over a period of up to 9 months. This policy is a medium-term measure to mitigate the risks of the charity’s historical current reliance on a single grant funder that makes decisions on an annual basis, as well as risks associated with past difficulties in obtaining physical receipt of grant funding in a timely fashion. Thus, for the sake of transparency guidelines from the ‘CC19: Charity Reserves –Building Resilience' have been adopted and a reserve of £95,000 designated. This equates to 8.5 months of expenditure at 2020/21 levels. This would allow NAAN the opportunity to secure alternative funding or, if necessary, to wind down its programme of support. ## Designated funds The grant from Garfield Weston Foundation was received in the final month of the year (March 2021) to be spent over the following 12 months. While technically unrestricted, a designated fund was established to ensure distinction between the grant, reserves (as above) and general funds, supporting the proper management of the grant in line with the Foundation’s wishes. It also improves transparency given that the timing of the grant significantly affected our annual surplus. ## General funds The general funds are the foundation for the implementation of our new strategy to increase NAAN’s sustainability and impact. While implementation has been slowed by the urgent need to respond to Covid19, the trustees remain committed to the investments required to both increase the number of staff and diversify funding. As a small charity, the board believes it is important to be able to give new recruits confidence in the sustainability of their post. With general funds at £40,546 we will seek to take on a third employee in 2021/22 and reconsider the reserves level given the resulting increased annual expenditure. ## Funding sources In pursuit of our new strategy, we are working to. This includes increasing earned income through the delivery of services to other organisations where this is in line with the charity’s charitable objectives, and developing relationships with charitable trusts and foundations with related objectives. Reflecting this change, funding from the Home Office is shown in the annual accounts as restricted funding relating to a specific project. The breakdown of funding in 2021 was: Home Office grant 61% (2020: 72%); other grants 13% (2020: 2%); earned income 26% (2020: 25%). Our thanks to the following for their support this year: - The Home Office (Police Powers Unit) - The National Lottery Community Fund / HM Government (Coronavirus Community Support Fund) - • The London Mayor's Office for Policing and Crime (MOPAC) - Garfield Weston Foundation ## Fundraising The Charity engaged Selinger Consultants for a limited 10 days of fundraising support. This included developing a core case for support, identification of funders with shared interests, and support with the development of applications. The organisation was selected for its understanding and experience of vulnerability in the criminal justice system. No complaints have been received in respect of the Charity's fundraising activities during the financial year. 22 Investment policy and performance The Board has decided that at present, funds should continue to be retained in Banks and Building Societies. Any change in such banking arrangements should be agreed by the Board. As far as possible, funds will be retained in interest bearing accounts. Income from interest amounted to 0.4% of income. Approved by order of the board of trustees on 16[th] December 2021 and signed on its behalf by: ............................................. Kevin Wheeler Treasurer 23 ## **INDEPENDENT EXAMINER'S REPORT** TO THE TRUSTEES OF THE NATIONAL APPROPRIATE ADULT NETWORK LTD ## Independent examiner's report to the trustees of The National Appropriate Adult Network Limited ('the Company') I report to the charity trustees on my examination of the accounts of the Company for the Year Ended 31 March 2021. ## Respective responsibilities of trustees and examiner As the charity's trustees of the 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 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 your charity'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 I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached Rosanna Turner ACA DChA Calcutt Matthews Chartered Accountants 19 North Street Ashford Kent TN24 8LF Date: ..........16.12.2021................................... 24 THE NATIONAL APPROPRIATE ADULT NETWORK LTD ## **STATEMENT OF FINANCIAL ACTIVITIES** for the Year Ended 31 March 2021 |||||||||31.3.21|31.3.21||31.3.20| |---|---|---|---|---|---|---|---|---|---|---|---| |||Unrestricted|||Restricted|||Total|||Total| |||funds|||funds
£
104,731
7,500
0|||funds|||funds
£
95,064
35,995
962| ||Notes|£||||||£|||| ||INCOME FROM||||||||||| ||Donations & legacies
2|10,039||||||114,770|||| ||Charitable activities
3|34,015||||||41,515|||| ||Investments
4|635||||||635|||| ||Total income|44,689|||112,231|||156,920|||132,021| ||||||42,648
44,892
24,691||||||49,080
51,663
28,415| ||EXPENDITURE ON||||||||||| ||Charitable activities
5,6,7||||||||||| ||Member Support|8,154||||||50,801|||| ||Policy & Standards|8,583||||||53,475|||| ||Professional Development|4,721||||||29,411|||| ||Total expenditure|21,457|||112,231|||133,688|||129,158| |||||||0|||||2,863| ||NET INCOME/(EXPENDITURE)|23,232||||||23,232|||| |||||||0|||||118,618| ||RECONCILIATION OF FUNDS||||||||||| ||Total funds brought forward|121,481||||||121,481|||| ||||||||||||| ||TOTAL FUNDS CARRIED||||||||||| ||FORWARD|144,713||||0||144,713|||121,481| ||||||||||||| These notes form part of the financial statements. 25 THE NATIONAL APPROPRIATE ADULT NETWORK LTD ## **BALANCE SHEET** at 31 March 2021 |||||||Restricted|31.3. 21
Total|31.3.20| |---|---|---|---|---|---|---|---|---| |||||||||Total| |||Notes
8|funds
510|||funds
0|funds
£
510|funds| |||||||||£| ||FIXED ASSETS|||||||| ||Tangible assets|||||||163| |||9|10,752
158,775|||0
0||| ||CURRENT ASSETS|||||||| ||Debtors||||||10,552
158,975|1,348| ||Cash at bank|||||||137,771| ||Total current assets||169,527|||0|169,527|139,119| |||||||||| ||CREDITORS|||||||| ||Amounts falling due within one
year|10|(25,324)|||0|(25,324)|(17,801)| ||||144,203|||0||| ||NET CURRENT ASSETS||||||134,203|121,318| |||||||||| ||TOTAL ASSETS LESS CURRENT|||||||| ||LIABILITIES||144,713|||0|134,713|121,481| |||||||||| |||||||||| ||NET ASSETS||144,713|||0|134,713|121,481| |||||||||| |||11|40,546
95,000
9,167|||0
0
0||| ||FUNDS|||||||| ||Unrestricted funds||||||40,546
95,000
9,167|| ||General funds|||||||26,481| ||Reserves|||||||95,000| ||Garfield Weston Foundation|||||||0| ||Total unrestricted funds||144,713
0|||0
0|144,713
0|121,481| |||||||||| |||||||||| ||Restricted funds|||||||0| ||Total restricted funds||0|||0|0|0| |||||||||| ||TOTAL FUNDS||144,713|||0|144,713|121,481| |||||||||| These notes form part of the financial statements. 26 The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the Year Ended 31 March 2021. The members have not required the charitable company to obtain an audit of its financial statements for the Year Ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for: - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies. The financial statements were approved by the Board of Trustees on 16[th] December 2021 and were signed on its behalf by: ............................................. Kevin Wheeler Treasurer These notes form part of the financial statements. 27 THE NATIONAL APPROPRIATE ADULT NETWORK LTD ## **NOTES TO THE FINANCIAL STATEMENTS** for the Year Ended 31 March 2021 ## 1. ACCOUNTING POLICIES ## Basis of preparing the financial statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The trustees have considered the going concern basis to be relevant. ## Income All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. ## Expenditure Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Support costs are those incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirement. ## Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Fixtures and fittings - 25% on reducing balance Computer equipment - 25% - 50% on cost ## Taxation The charity is exempt from corporation tax on its charitable activities. ## Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Designated funds are only used for a particular specific reason at the discretion of the trustees. The amount is reviewed annually. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## Pension costs and other post-retirement benefits The charity operates a defined contribution pension scheme, with an employer contribution of 8% of gross salary. The assets of the scheme are held separately from those of the charity in an independently administered fund. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. A salary sacrifice scheme is in operation, allowing staff to reduce their salary in exchange for increased employer pension contributions, with a net zero effect on the charity. Contributions payable by the charity amounted to £13,969 (2020: £13,296). 28 THE NATIONAL APPROPRIATE ADULT NETWORK LTD NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021 (continued) ||2. DONATIONS AND LEGACIES||Unrestricted
funds
£
0
10,000
0
39||Restricted
funds
£
95,000
0
9,731
0|||||| |---|---|---|---|---|---|---|---|---|---|---| ||||||||31.3.21|||31.3.20| ||||||||Total
funds|||Total
funds| ||||||||£|||£| ||Home Office Police Powers Unit||||||95,000|||95,000| ||Garfield Weston Foundation||||||10,000|||0| ||National Lottery Community Fund||||||9,731|||0| ||Donations||||||39|||64| ||||10,039||104,731||114,770|||95,064| ||||Unrestricted
funds
£
12,201
20,243
0
1,511
60||Restricted
funds
£
0
0
7,500
0
0|||||| ||3. CHARITABLE ACTIVITIES|||||||||| ||||||||31.3.21|||31.3.20| ||||||||Total
funds|||Total
funds| ||||||||£|||£| ||Income from|||||||||| ||Training and training material||||||12,201|||12,627| ||Membership subscriptions||||||20,243|||18,633| ||Commissioning support||||||7,500|||2,500| ||Qualification||||||1,511|||2,186| ||Other income||||||60|||49.00| ||||34,015||7,500||41,515|||35,995| ||||635||0|||||| |||||||||||| ||4. INVESTMENT INCOME|||||||||| ||||||||31.3.21|||31.3.20| ||||||||£|||£| ||Deposit account interest||||||635|||962| 29 THE NATIONAL APPROPRIATE ADULT NETWORK LTD NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021 (continued) ## 5. NET INCOMING/(OUTGOING) RESOURCES Net resources are stated after charging/(crediting): ||31.3. 2021|31.3.2020| |---|---|---| ||£|£| |Independent examiner’s fee|840|947| |Depreciation - owned assets|375|485| ## 6. TRUSTEES' REMUNERATION AND BENEFITS There was no trustee remuneration or other benefits provided for the year ended 31 March 2021 nor for the year ended 31 March 2020. ## Trustees’ expenses |Trustees’ expenses|||| |---|---|---|---| ||31.3.|2021|31.3.2020| |||£|£| |Trustees’ expenses||58|288| ## 7. STAFF COSTS The average monthly number of staff during the year was as follows: ||31.3.|2021|31.3.2020| |---|---|---|---| |||£|£| |Staff||2|2| No employees received employee benefits (excluding employer pension costs) in excess of £60,000. Staff numbers above represent the FTE of 2 employees. 30 THE NATIONAL APPROPRIATE ADULT NETWORK LTD ## NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021 (continued) ## 8. TANGIBLE FIXED ASSETS |8. TANGIBLE FIXED ASSETS||| |---|---|---| |Fixtures and
fittings
£
COST
At 1 April 2020
521
Additions
0
Disposals
0
At 31 March 2021
521
DEPRECIATION
At 1 April 2020
488
Charge for year
33
At 31 March 2021
521
NET BOOK VALUE
At 31 March 2021
0
At 31 March 2020
33
9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Deferred income
Accrued expenses|Computer
equipment
£
3,842
720
0
4,562
3,712
340
4,052
510
130
31.3. 2021
£
10,369
383
10,752
31.3. 2021
£
2,330
0
22,994
0
25,324|Totals
£
4,363
720
0
5,083
4,200
373
4,573
510
163
31.3.2020
£
1,050
298
1,348
31.3.2020
£
5,571
283
11,947
0
17,801| |||| |||| |||| |||| |||| 31 THE NATIONAL APPROPRIATE ADULT NETWORK LTD ## NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021 (continued) ## 11. MOVEMENT IN FUNDS |1. MOVEMENT IN FUNDS|||| |---|---|---|---| |Unrestricted funds
General fund
Garfield Weston Foundation
Reserves
Restricted funds
Home Office
London Commissioning Initiative
Fair Justice After Covid-19
TOTAL FUNDS|At 1.4.2020
£
26,481
0
95,000
0
0
0
121,481|Net
movement
in funds
£
14,065
9,167
0
0
0
0
23,232|At 31.3. 2021
£
40,546
9,167
95,000
0
0
0| ||||144,713| Net movement in funds, included in the above are as follows: |Unrestricted funds
General fund
Garfield Weston Foundation
Reserves
Restricted funds
Home Office
London Commissioning Initiative
Fair Justice After Covid-19
TOTAL FUNDS|Incoming
Resources
£
34,689
10,000
0
95,000
7,500
9,731
156,920|Resources
Expended
£
(20,624)
(833)
0
(95,000)
(7,500)
(9,731)
(133,688)|Movement
in funds
£
14,065
9,167
0
0
0
0| |---|---|---|---| ||||23,232| The purposes of the funds are as follows: Reserves (designated): NAAN’s policy is to maintain sufficient level of designated reserves to enable normal operating activities to continue over a period of up to 9 months. This policy is a medium-term measure to mitigate the risks of the charity’s historical current reliance on a single grant funder that makes decisions on an annual basis, as well as risks associated with past difficulties in obtaining physical receipt of grant funding in a timely fashion. Thus, for the sake of transparency guidelines from the ‘CC19: Charity Reserves –Building Resilience' have been adopted and a reserve of £95,000 designated. This equates to 8.5 months of expenditure at 2020/21 levels. This would allow NAAN the opportunity to secure alternative funding or, if necessary, to wind down its programme of support. The charity has a plan in place to diversify funding and increase staffing and will continue to review appropriate reserves levels annually to ensure funds are used effectively to support the charitable objectives. 32 THE NATIONAL APPROPRIATE ADULT NETWORK LTD NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021 (continued) ## 11. MOVEMENT IN FUNDS (CONTINUED) Garfield Weston Foundation (designated): One year of core costs grant funding, to be spent on developing our provision in line with our strategic plan. Includes work on increasing identification of vulnerable suspects, improving commissioning of AA services, and protecting rights and safeguards in policy and practice. Home Office (restricted): To support and represent organisations providing appropriate adult services to children and vulnerable adults in police custody London Commissioning Initiative (restricted): One year grant funding from the London Mayor’s Office for Policing and Crime (MOPAC) to enable NAAN to provide assistance with implementation of new approach to the commissioning of appropriate adult services across London. Fair Justice After Covid-19: Grant from HM Government in partnership with the National Lottery Community Fund Outcomes. Supported work to: reduce disadvantage to children and vulnerable adult suspects caused by Covid-19 and post-Covid changes; increase the knowledge and effectiveness of familial AAs; and support groups of AAs in local communities to respond effectively. Comparatives for movement in funds |Unrestricted funds
General fund
Designated fund
TOTAL FUNDS|At 1.4.2019
£
23,618
95,000
118,618|Net movement
in funds
£
2,863
0
2,863|At 31.3.2020
£
26,481
95,000| |---|---|---|---| ||||121,481| Comparative net movement in funds, included in the above are as follows: |Unrestricted funds
General fund
Designated fund
TOTAL FUNDS|Incoming
Resources
£
132,021
0
132,021|Resources
Expended
£
(129,158)
0
(129,158)|Movement in
funds
£
2,863
0| |---|---|---|---| ||||| ||||2,863| ## 12. RELATED PARTY DISCLOSURES There were no related party transactions for the Year Ended 31 March 2021. 33 THE NATIONAL APPROPRIATE ADULT NETWORK LTD ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES** for the Year Ended 31 March 2021 |INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
Charitable activities
Membership subscriptions
Training and training material
Commissioning support
Qualification
Other income
Investment income
Deposit account interest
Total incoming resources|31.3. 2021
£
39
114,731
114,770
20,243
12,201
7,500
1,511
60
41,515
635
156,920|31.3.2020
£
64
95,000| |---|---|---| |||95,064
18,633
12,627
2,500
2,186
49| |||35,995
962| |||132,021| This page does not form part of the statutory financial statements. 34 THE NATIONAL APPROPRIATE ADULT NETWORK LTD ## DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 March 2021 (continued) |EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Travel and subsistence
Training, Events and Groups
Staff training
Support costs
Management
Administration
Fixtures and fittings
Computer equipment
Fundraising
Independent review of user involvement
Premises
Printing and stationery
Professional Fees
Travel and subsistence
Sundries
Finance
Bank charges
Information technology
Communications and IT
Governance costs
Trustees’ expenses
Professional fees
Independent examiners’ remuneration
Accountancy and legal fees
Total resources expended
Net income/(expenditure)|31.3. 2021
£
92,459
6,335
13,969
(29)
1,939
0
114,674
7,546
34
341
4,650
1,000
2,018
89
295
0
35
16,007
165
1,944
58
0
840
0
898
133,688
23,232|31.3.2020
£
91,921
7,039
13,296
1,380
7,398
50| |---|---|---| |||121,084
0
59
426
0
0
884
72
0
531
1,166| |||3,138
147
1,357
288
1,984
947
213| |||3,432
129,158| |||2,863| This page does not form part of the statutory financial statements. 35