Smalles Goldie CHARTERED ACCOUNTANTS REGISTERED COMPANY NUMBER".05375809 CHARITY REGISTRATION NUMBER: 1108595 The Alcohol and Drug Service Financial Statements 31 March 2025 better ICAEW CHARTERED ACCOUNTANTS
The Alcohol and Drug Service Contents Reference and Administrative Details Trustees, Report 2to11 Independent Auditors, Report 12to15 Statement of Finan¢ial Activities 16 Balance Sheet 17 ststement of Cash Flows Notes to the Financial Statements 19to30
The Alcohol and Drug Service Reference and Administrative Details Trustees: A Smith- Chair K Yorath (resigned 17 October 2024) l D Parsons E Tatterton - Treasurer N Dodds J Cooper (resigned 23 December 2024) F Ashton W McHugh (appointed 16 January 2025) G Gilbert (appointed 20 February 2025) S Scott (appointed 17 April 2025) Executive Team T Young, Chief Executive S Grunnill, Finance Director Charity Registration Number 1108595 Company Registration Number 05375809 Reglstered Office 82 Spring Bank Hull HU3 1AB Auditor Smalles Goldie Chartered Accountants Regent's Court Princess Street Hull HU2 8BA Page 1
The Alcohol and Drug Service Trustees. Report 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 st March 2025. 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 2019). Publlc Benefit The charity clearly sets out the benefit it aims to deliver in its mission statement. This reflects the charity's objectives and which sits at the centre of all planning and perfomiance management. The mission is.. "The ADS wll work in partnership to support people affected by substance misuse to make positive change.. To further support the mission statement, the charity articulates its values and a vision statement. The vision statement is. "The ADS aspire to be an organisation where the services we offer are individually tailored, creative, innovative, of the highest quality and result in the optimum outcome for each service user." Values The charity's values are. Honesty Diversity servi user and carer focused Effective Caring National strategy The national strategy published in January 2021 and the associated funding and guidance, represents once in a generation opportunity to enhance the sector and set the agenda for many years to come. ADS are well placed to utilise this opportunity and support change to improve support for those people affected by problematic substance use. The election of any new government presents a period of uncertainty while new ministers work to translate rnanifesto commitments into actions and financial plans. During this period the charity worked with others in Ihe sector to support the continualion of the principles and funding within the National Strategy. In late 2024 it was confirmed that the National Strategy would continue but with a slightly different emphasis. In addition, funding was confirmed for the 2025126 financial year. The charity welcomed this news and the opportunity to make further enhancements to a sector which 5UPPOrts some of the most vulnerable and excluded people in society. To do so the charity wll continue to, Share best practice it has developed with others. Woth in partnership with other providers and national bodies 5u¢h as the Office of Health Improvement and Disparity {OHID) Continue to invest in its mission. Page 2
The Alcohol and Drug Service Trustees. Report Planning The charity believes that comprehensive well informed planning is the corner stone of its continued success. All annual plans and strategy documents are approved by the Board and progress against all plans is reported at each meeting. The planning framework has the cornmon aim of furthering the Charity's objectives and consists of the following. A Strate ic Plan. Describes the overall direction of the charily for the coming 3 to 5 years. An Annual Business Plan. Describes the charity's activity over Ihe coming year. An Annual Warlrforce Develo ment Plan Describes the charity's support for its workforce over the coming year. Page 3
The Alcohol and Drug Service Trustees, Report Quallty and perfomiance A robust Quality Assurance framework is in place which contains a range of intemal quality indicators. These are reported monthly to managers and quarterly to the Board. The positive impact of our services is measured against our mission. We aim to support positive change in all who come through our doors. Abstinence Every week, 52 weeks a year 16 people leave our services substance free and do not return to treatment Of those people who come to us with an alcohol problem 43.kn leave alcohol free and do not return IAData source.. Public Health Outcomes Framework C19 (formerly 2.15): Accessed 14 May 20251 Percentage of eo le makin Across all ADS services.. 53D ADS best performing service.. 670 National performance: 47 % Regional performance.. 47° substantial ress in treatment" Increase in numbers in treatment" Across all ADS seIceS-. + 7 % ADS best performing service.. + 10 % National performance-. + 70 Regional performance.. + 10 % Percenta e of those released from Across all ADS seIces-. 680 ADS best performing service: 70% National performance.. 560 Regional performance.. 65 /0 rison who en e in community seICeS Continuity of care I'Data source.. NDTMS Local outcome Framework.. Accessed 14 May 2025] Quality Mana An annual external audit assures the Quality Management System has been implemented, maintained and is operating in accordance wth the standards. ement S stem BS EN ISO 9001.'2015 ood em lo eranda ood lace to work. Holding the Investors in People award since 2016 the charity is proud to be a good employer and a good place to work but continues to seek improvement. In addition to the Investors reviews and the annual workforce survey, the charity collects data on key measure5 of performance. Fundin our mission Of ADS expenditure 980h was on direct charitable activities. [Data source= ADS Audited accounts 2024125] Page 4
The Alcohol and Drug Service Trustees. Report Investing in our mission The ADS has effective financial controls in place which enable it to manage its internal finances and ensure it is able to deploy its funds to ensure best value for its beneficiaries. Due to this continued good financial planning and management, the ¢harity is in a healthy financial position including having free reserves. This year has made it possible to continue investing in the mission lo ameliorate risks to the charity's ability to deliver its mission, lo enhance the quality of that delivery and to plan for further investments in the years to come. Risk amelioration The most significant risk to the charity this year was.. Continuation of funding and the National Drug (and Alcohol) Stralegy. Substance misuse services commissioners are the source of 96 % of income and are the recipients of the government provided national funding for drug and alcohol services. The funding cannot be spent on anything other than substance misuse services. The funLling for the year 2025126 has been confirmed as continuing at current levels. Enhancing A critical detemiinant of successfully delivering our mission is a well trained. high quality workforce. To support this the Charity has invested in the workforce to ensure Ihe continued provision of high quality services to its beneficiaries. These investments include- The successful introduction of Apprenticeships including the following.. Social Work IBA) Apprenticeship People Support (formerly Human Resources) Apprenticeship Production and delivery of a free Commissioners in substance use training. Creating and implementing a People Support Team Career Map. Planned investments for the coming year include.. Enhanced Social Worker support scheme. A next level training for Commissioners of substance use services. Our apprenticeship offer will be extended. ICT The charity continues to invest and develop its ICT assets and has achieved and maintained the Cyber Essentials Plus quality mark for cyber security. A strategic ICT plan will be developed and authorised by the Board of TrusteelDirectors. An ICT plan will be embedded in the 2025126 annual business plan. Page 5
The Alcohol and Drug Service Trustees. Report stakeholdars The charity regularly consults with stakeholders utilising feedback to continue to improve services. Commissioners are consulted in several formal and informal ways. In addition to formal monitoring meetings a partnership approach to developments and joint planning ensures the opinions of commissioners are embedded in the service development. Service Users are regularly consulted throughout services, with some operating an on-going fomial consultalion and others using periodic surveys. Feedback is sought on an on-going basis from Service User Groups and mentors to ensure their ideas and thoughts are reflected and their involvement is included in the co-design and implementation of new developments. Employee consultation is through team and other meetings. supervision, and whole seNice events. An annual ADS conference offers the opportunity for all ADS employees and those of partnership organisations to be consulted and an employee forum provides an arena where employee representatives meet with the Chief Executive. Annual plans are made available on the charity's hub ensuring all employees have access to information, policies and plans in an easy to access format. Service delivery Based upon its stated focus, the Alcohol and Drug Service offers a confidential, professional, modem approach to alcohol and drug problems. At present our services cover the areas of the East Riding, Doncaster and Hull. The ADS has maintained its commitment to its core focus under the following four headings. The full range of adult community based services Young People's services Delivering services to both rural and urban areas Partnership working Supporting early intervention outside of specialist services The charity continues to develop allians and partnership5 to provide service users with access to key wrap around support vital for sustaining recovery. All the charity's service5 are delivered in partnerships andlor feature significant alliances including two partnerships with NHS Trusts. Peer mentors and volunteers The charity IS 5UPPOrted by volunteers many of whom have lived experience of problematic substance use. The charity provides a comprehensive volunteer training programme lo equip volunteers with the necessary skills and knowledge. Most modules in the programme are accredited assuring quality and providing volunteers wilh nationally accredited certificates as evidence of their learning and development. The successful completion of the volunteer programme equips volunteers wth the qualifications and experience required for a paid post as a Trainee Recovery Worker. Social media Facebook, Instagram and X continue to be utilised by the charity and service user groups are encouraged to use their own Facebook pages to support their recovery network. Page 6
The Alcohol and Drug Service Trustees. Report Financial management Introduction The economic environment has been difficult over recent years. Along with the national strategy and associated additional funding, has come pressure to expand services quickly. At the end of a decade of significant cuts, providing the additional workforce required to deliver on the national targets has been challenging. In the absence of an available qualifi'ed workforce there is competition for those small number who are. In this landscape ADS has utilised its strong financial position to invest in training, skills and resources to provide a workforce capable of maintaining services of a high quality and Gontinue to effectively deliver on its mission. Income There was an increase in income (100/0) this year with overall income at £5,470,814 (2023124., £4,971,314). This reflects the continued investment by central govemment in the national drug strategy. Expenditure Approximately half of the ADS'S funding is Restricted, in that the income is required to be expended on specific services that are contracted. Expenditure in 2024125 amounted to £5,322,139 {2023124 £5,099,851). Whilst most of this is pay costs and there has been a growth in the estsblishment, there has been a continued investment in up skilling key posts and resourcing the organisation to meet the challenges of the current economic environment. The majority of these costs relate primarily to the operational staff and the ADS continue to minimise management and administration costs and demonstrate best value to commissioners. In order to ensure this is transparent to purchasers a direct charge of 1 OOA is levied on all contracts. Surplus for the year was £148,675. The surplus on unrestricted funds was £410,515, the surplus on designated funds was £12,546 and a deficit of £261,840 arose on restricted funds. The deficit on restricted funds was expected and planned for and represents timing differences beeen the receipt of income and the provision of services. Balance sheet There has been no significant change in the fixed assets of the ADS. The balance of cash held across all accounts at the year-end was £3,867,418 (2023124 £3,657,820). Corporate governance. risk management and reserves policy The ADS Board of TrusteeslDirectors (the Board) have considered the major risks to which the Charity is exposed and to the systems designed to mitigate those risks. The ADS has an experienced Management Board, principally drawn from senior figures in commerce, health, and social care, which has ably supported its growth. Biographies of the TrusteelDireclors are published on the ADS website at https'.Ilads-uk.orgltrustees. The Management Board are supported by an experienced Executive Team conslsting of a Chief Executive and Finance Director, who have a combined experience of the charitable sector of over 50 years. Page 7
The Alcohol and Drug Service Trustees. Report The Board oversees and approves the overall strategy, performance and management of the ADS and meets four times a year, reviewing business developments and agreeing policy with the Executive Team. The Chief Executive is responsible for day to day control of operations and the performance of the ADS. The Chief Executive has also set in place operational controls over service provision, to ensure that employees are trained and working to proper standards. An annual Business and Finance Strategy review is carried out and from this an Action Plan is agreed by the Board. The plan sets out priorities for new service opportunities and funding. The ADS prepares detailed budgets and monthly management accounts. The performance of each cost centre is monitored against budget by the budget holder supported by a management accountant. The Board monitor performance against the global budget. In order that the ADS is compliant with Charity Commission guidelines, and to enable it to deal with any issues arising from short-term fluctuations in funding andlor cash flow. the Board sets a minimum reserves target. This target has been achieved and maintained. The mechanism for calculating the minimum reseeS target sits within a comprehensive reserves policy. The reserves target is reviewed annually. The overall finance strategy is delivered through a range of annual plans and policies ensuring the delivery of the charity's objectives. This balanced approach has enabled the investment in capacity and infrastructure alongside traditional investments and a business case approach through which additional income is generated while enhancing the charity's ability to deliver its objectives. Outlook The service is in a sound financial position and the recent investment has ensured that the structures, skills and resources are in place to control and manage expansion and development going forward. The operational management structure and systems reflect this and are sufficiently robust to manage and sustain development in the future. Alongside this the charity has a robust planning structure which supports an ethos of continuous improvement and development to enable fonmard planning and ensure the Board is able to continue to govern the charity effectively. The ADS is well placed to build on its core areas and further develop and expand its services in the region. It has a growing reputation locally for providing a quality seNice, with a pro-active and experienced management team. supported by an active, professionally focused Board. STRUCTURE, GOVERNANCE AND MANAGEMENT Goveming document The Alcohol and Drug Service is an incorporated Charity govemed by the Articles of Association which are regularly reviewed. The current Articles were adopted 18 April 2024. This ensures that the risk to Trustees is managed, and that the charity is able to continue to attract and retain the calibre of TrusteeslDirectors necessary to maintain a Board of the highest quality best suited to deliver sound governance to the charity. The charity is controlled by its governing document, a deed of trust, and constitutes a limited ompany. limited by guarantee, as defined by the Companies Act 2006. The Articles of Association set out the rules regarding membership and all members shall be entitled to vote at all general meetings of the charity- Page 8
The Alcohol and Drug Service Trustees. Report The governance of the charity is the responsibility of the Board of TrusteelDirectors. TrusteelDirectors are either elected at the annual general meeting or co-opted if necessary. The day to day management of the charity is devolved by the Board to an Executive Team. The principal office is situated at 82, Spring Bank, Hull. The charity has a schedule of delegation which provides a clear and con¢ise record of the delegation of authority and the limits on those delegations in critical areas. This supports effective and timely scrutiny by the Board of delegated decisions. In the event of a winding up of the charity any surplus funds must be granted to any such charitable organisation having objects similar to those of the charity. Structure and management The TrusteelDirectors have overall responsibility for ensuring that the charity has appropriate systems of internal controls, financial and othervwse. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply wilh the Companies Act 2006. They 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. An experienced Management Board oversees the charity. wth the Executive Team reporting to the Board and being responsible for the day to day operational functioning of the charity. Financial performance is monitored through the preparation of detailed budgets, forecasts, and monthly management accounts. The charity has an overarching objective to allow its resources to be allocated by those closest to its services and service users, while maintsining robust financial control. To enable this, the charity has a detailed budget setting procedure and map describing a process which ensures local budget holders have a full input in setting their service budgets and accounts for organisational priorities and govemance. The process is reviewed annu211y )Mlh a primary indicator being the year end position of individual cost centres to ensure initial budgets set were accurate and have been managed effectively. The charity continues to explore the most effective ways to invest tts resources in furtherance of its objectives. A comprehensive investment strategy and altendant policy is in place which includes a definition of investment encompassing traditional investment which seeks a monetary return and a calegory oullining the use of resources to enhance the charities capacity to improve services for its service users, deliver on current contracts and better position it to increase its impact on its beneficiaries going forward. The investment strategy wll be reviewed during the 2025126 financial year. The workforce development plan is based on an analysis of performance and supply and demand. The plan accounts for personal development.. service and departmental development and succession planning. All developments are linked wth the charity's strategic, business and Workfor development plans which are designed to further its objectives. The charity publishes its annual and strategic plans on its intranet allowing all employees access and inviting scrutiny. Page 9
The Alcohol and Drug Service Trustees. Report Trustee policy and procedurès The ADS has robust systems in place for assuring the quality of its trustees, they include the following, Each role on the Board has a specific Job Description and Person Specification. Each sub-group, whether a standing or task and finish group, has clear Terms of Reference. TrusteelDirector recruitment policy and procedure. TrusteelDirector induction policy and procedure. TrusteelDirector training policy and procedure. TrusteelDirector reglstration of interests, policy and procedure. Appointment of TrusteelDirectors To ensure the make up of the charity Board remains fit for puipose recruitment is triggered by one of the following factors. An existing Board member resigns, and a replacement 15 sought. A review of the Board membership indicates a need for increased numbers, diversity or a specific skilllexperience gap. If recruitment is triggered a rigorous recruitment process is then used. TrusteelDirector Induction A robust Trustee induction programme is in place and its delivery is monitored and signed off by the Board. Executive Team perfomiance related remuneration The charity ensures decisions about levels of executive pay. and benefits follow a robust evidence-based process and are reasonable and defensible. A Remuneration Committee is elected by the Board. The Committee has a critical role in balancing the interests of beneficiaries, funders, donors, and other stakeholders WFth the need to attract senior leaders who will be effective in using the charity's resources to deliver the charity's stated purposes to those communities it is set up to serve. Page 10
The Alcohol and Drug Service Trustees, Report TRUSTEES, RESPONSIBILITY STATEMENT The trustees (who are also the diredors of The Alcohol and Drug Service for the purposes of company law) are responsible for preparing the financial statements in accordance with applicable law and United Kingdom A¢counting Standards {United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare financial statements for each financial year. Under company law the Irustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including its income and expenditure, of the charity for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and apply them consistently,. observe the methods and principles in the Charities SORP., makejudgements and estimates that are reasonable and prudent,. state whether applicable accounting standards, comprising FRS 102 have been followed. subject to any material departures disclosed and explained in the financial statements.. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that can disclose wth reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006 They 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. Disclosiire of information to auditor Fae.h trLrstee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the audltor is unaware. Reappointment of auditor In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Smalles Goldie as auditors of the charity is to be proposed at the forthcoming Annual General Meeting. The annual report was approved by the trustees of the charity on 17 July 2025 and signed on its behalf by.. Trustee Page11
The Alcohol and Drug Service Independent Auditorfs Report to the Members of The Alcohol and Drug Service Opinion We have audited the financial statements of The Alcohol and Drug seICe (the 'charity') for the year ended 31 March 2025, which comprise the Statement of Financial Aclivities, Balance Sheet, statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally ACPIed Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance wth United Kingdom Generally Accepted Accounting Practice", and have been prepared in accordance with the requirements ofthe Companies Act 2006. Basis for opinion We conducted our audit in accord3nce with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 wort( we have performed. we have not identified any material uncertainties relating to events or conditions Ihat, 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 original financial statements were authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going Goncem are described in the relevant sections of this report. Page 12
The Alcohol and Drug Service Independent Auditor's Report to the Members of The Alcohol and Drug Service Other Information The Irustees are responsible for the other infomiation. The other infomiation 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. 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 obtsined in the audit or othe¥wise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If. based on Ihe work we have perfomied, we conclude that there is a material misstatement of this other information, we are required to report that tact. We have nothing to report in this regard. Opinion on other matter prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the for the financial year for which the financial statements are prepared is consistent with the financial statements., and the has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our 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 where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns- or certain disclosures of trustees remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, Report (set out on page 111, the trustees are responsible for the preparation of the fi'nancial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of finan¢ial statements that are free from matertal 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 altemative but to do so. Page 13
The Alcohol and Drug Service Independent Auditor's Report to the Members of The Alcohol and Drug Service Auditor responsibilities for the audlt 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 IUKI 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 ofthese financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011, the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risks of fraud through management bias and override of controls, we- performed analytical procedures to identify any unusual or unexpected relationship5", tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting eslimates were indicative of potential bias.. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which included, but were not limited to.. agreeing financial statement disclosure5 to underfying supporting documentation., reading the minutes of meetings of those charged with governance., enquiring of management as to actual and potential litigation and claims. and reviewing correspondence with relevant regulators and legal advisors. Due to 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 wth regulation. This risk increases the more that compliance wtth a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. Audits'ng standards also limit the audit procedures required to identify non-compliance with laws and gUlationS to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. The risk is a150 greater regarding irregularities occurring due to fraud ralher than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. Page 14
The Alcohol and Drug Service Independent Auditor's Report to the Members of The Alcohol and Drug Service Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies A¢t 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's 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 charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Stephen Bramall Bsc., FCA (Senior Statutory Audilor) For and on behalf of Smalles Goldie, Statutory Auditor Regent's Court Princess Street Hull HU2 8BA 17 July 2025 Page 15
The Alcohol and Drug Service Statement of Financial Activities for the Year Ended 31 March 2025 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted Designated funds funds Restricted funds Total 2025 Total 2024 Note Income and Endowments from: Donations and legacies Charitable activities Other trading activities Investment income 2,337 701,813 41,430 2,587,435 43,767 5,344,496 15,285 4,897,751 2,055,248 12,580 69,971 12,580 69,971 11,760 46,518 Total income 786,701 2,055,248 2,628,865 5,470.814 4,971,314 Expenditure on: Raising funds Charitable activities Governance costs 24,857 370,419 46,659 24,857 5,243,932 53,350 19,162 5,024,172 56,517 1,996,580 6.691 2,876,933 Total expenditure 441,935 2.003,271 2,876,933 5,322,139 5,099,851 Net incomel(expenditure) Transfers beleen funds 344,766 51,977 (248,068) 148,675 (128,537) 53,203 {39.431} 13,772 Net movement in funds 397.969 12,546 (261,840) 148,675 {128,537) Reconciliation of funds Total funds brought forward 1,686,897 215.855 1,632.164 3,534,916 3,663,453 Total funds carried forward 18 2,084,866 228,401 1,370,324 3,683,591 3,534,916 All of the charity's activities derive from continuing operations during the above two periods. The notes on pages 19 to 30 form an integral part of these financial statement5. Page 16
The Alcohol and Drug Service (Registration number: 05375809) Balance Sheet as at 31 March 2025 2025 2024 Note Fixed assèts Tangible assets 12 95,000 69,250 Current assets Debtors Cash at bank and in hand 13 213.288 3,867,418 4,080,706 131,108 3,657,820 3,788,928 Creditors: Amounts falling due within one year Net current assets 14 1397,115) 254,012) 3,683,591 3,534,916 Total assets less current liabilities 3.778,591 3,604.166 Creditors." Amounts falling due after more than one year 15 Net assets (95.000) 3,683,591 (69,250 3,534,916 Fund5 of the charity: Restricted income funds Restricted funds 1,370,324 1.632,164 Unrestricted income funds Designated Funds General Funds 228,401 2,084,866 215,855 1,686,897 Total unrestricted funds 2,313,267 1,902,752 Total funds 18 3.683,591 3,534,916 These financial statements have been prepared in accordance with the special provisions relating to ompanies subject to the small companies regime within Part 15 ofthe Companies Act 2006. The financial statements on pages 16 to 30 were approved by the trustee5, and authorised for i55ue on 17 July 2025 and signed on their behalf by-. Trustee The notes on pages 19 to 30 form an integral part of these financial statements. Page 17
The Alcohol and Drug Service Statement of Cash Flows for the Year Ended 31 March 2025 2025 2024 Note Cash flows from operating activities Net cash incomellexpenditure) 148,675 (128,537) Adjustments for non-operating items Investment income 69,971) 46,518) 1175,055) 78,704 Working capital adjustments Increase in debtors Increasel(decrease) in creditors Net cash flows from operating activrties 13 14 (82,180) 143,103 (10,777) 26.789 139.627 (212,621) Cash flows from investing activities Interest receivable and similar income 69,971 46,518 Net increasel{decrease) in cash and cash equivalents Cash and cash equivalents at 1 Aprtl Cash and cash equivalent5 at 31 March 209,598 {166,103) 3,657,820 3,823,923 3,867,418 3.657,820 All of the cash flows are derived from continuing operations during the above two periods. The notes on pages 19 to 30 form an integral part of these financial statements. Page 18
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 1 Charity status The charity is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the 8 members is liable to contribute an amount not exceeding £10 towards the assets of the ¢harity in the event of liquidation. The address of its registered office is.. 82 Spring Bank Hull HU3 1AB 2 Accounting policies Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless othenNise stated. Statement of compliance The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP IFRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Basis of preparation The Alcohol and Drug Service meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transacliuii value unless otherwise stated in the relevant accounting policy notes. Going concern The trustees, having considered the available information & forecasts for the period to March 2026 and strategic plan for the period to 26127, have a reasonable expectation that the charity has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial ststements and therefore have prepared the financial statements on a going concern basis. Income Income from donors and funders Grants and contract income 15 recognised when the charity has entitlement to the funds, after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. Page 19
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 Voluntary income Cash donations, gifts and legacies are included in full in the Statement of Financial Activities as they are received. Other trading income All other income is accounted for on an accruals basis. Investment income Bank interest and investment bond income is included in the Statement of Financial Activities on receipt. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure. it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. 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. Administration includes Ihe cost of management of the charity's affairs. staff costs Termination benefits Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Pensions and otherpost retirement obligations The charity operates a defined contribution pension scheme. Contributions to defined contribution plans are recognised in the Statement of Financial Activities in the period to which they relate. The assets of the scheme are externally administered by trustees. Taxation The Alcohol & Drug Service Limited is a UK registered charity, number 1108595. All the charity's income is applied to its charitable objectives and the charity is, therefore, exempt under current legislation from most forms of taxation. Depreciation and amortisation Depreciation is calculated on the straight line basis to write down the cost of all fixed assets, except freehold propety, over expected useful lives. The lives generally applicable are.. Asset class Office equipment Depreciation method and rate 5-6years Page 20
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 Tangible fixed assets The Charity only considers capitalising items over £5,000. During the reporting period, the Charity has revised its policy relating to the ¢apitalisation of fixed assets. Previously, items of a capital nature wth a Gost in excess of £1,000 were capitalised and depreciated over their useful lives. The revised threshold reflects a reassessment of the materiality and administrative burden associated with tracking lower-value assets. The new policy provides nancial statements that are more reliable and relevant by focusing on material assets and aligning the capitalisation threshold with the current scale of the Charity. The change has been applied prospectively from 1 April 2024, in accordance w¢th applicable accounting standards. Comparative figures have not been restated, as the impact of the change is not considered material to prior periods. Debtors and creditor5 receivable I payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction prtce. Any losses arising from impainnent are recognised in expenditure. Fund structure Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds. Designated funds are funds earmarked by the management committee for a particular purpose. Restricted funds are to be used for a specific purpose as laid down by the donor. Expenditure which meets these criteria is charged to Ihe fund, together with a fair allocation of management and support costs where applicable. Hire purchase and finance leases Rentals payable under operating leases are charged to the statement of financial activities over the period of the lease on a straight line basi5. 3 Income from donations and legacies Total 202S Total 2024 Donations and gifts Sundry income 34,271 9,496 3,362 11,923 43,767 15,285 Page 21
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 4 Income from charitable activities 2025 2024 Grants and contracts Training 5,257,897 86,599 4,817,375 80,376 5.344,496 4.897,751 Grants received, included in the above, are as follows- 2025 2024 Doncaster Drug & Alcohol Service East Riding Partnership Hull Primary Care Addictions seIce Access and Liaison Riverside Camarus 2,875,367 1,408.272 356,638 240,791 376,829 2,618,777 1,258,027 287,557 267,679 347,335 38,000 5,257,897 4,817,375 5 Income from other trading activitie5 2025 2024 Placements and training 12,580 11,760 6 Investment income 2025 2024 Bank interest 69,971 46,518 7 Expenditure Direct Costs Support Costs 2025 2024 Raising funds Charitable activities Governance ¢osts 22,449 5.003,770 35,553 2,408 240,162 17,797 24,857 5,243,932 53,350 19.162 5,024,172 56,517 5,099,851 5,061,772 260,367 5,322.139 Page 22
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 Costs directly allocated to activities are as follows.. Direct service activity Raising funds Governance 2025 2024 Client health supplies Staff costs Recruitment Stsff training Equipment purchase Administration costs Audit of the financial statements AGM and annual report Premises - direct Volunteer expenses 300 19,013 698,486 3,894,494 18,386 71,256 816 33,636 698,786 3,913,507 43.586 74,318 816 33.710 394,374 3,875,784 48,712 71,621 6,876 36,598 25,200 3,062 74 9,864 489 9,864 489 274,243 12,453 8,598 523 409,998 11,178 274,243 12,453 22,449 5.003,770 35.553 5,061,772 4,864,262 Analysis of support costs-. Grants and Governance contracts costs Raising funds 2025 2024 Support costs General office and finance Central premises Communications Bank charges Professional fees 21,905 34,014 180,977 1,100 2,166 397 22,310 34,014 183,377 1,100 19,566 18,058 28,689 177,044 1,064 10,734 2,400 17,400 2,408 240,162 17,797 260,367 235,589 Support costs are allocated between raising funds, grants and contracts and govemance costs based on the purpose of individual expenditure and the most appropriate category on a purchase by purchase basis. 8 Net incomingloutgoing resources Net incomingl(outgoing) resources for the year include.. 2025 2024 Operating leases - other a55ets Audit fees 151,681 9,864 127,158 8,598 Page 23
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 9 Trustees remunoration and expenses There were no trustees, remuneration or other benefits for the year ended 31 Mah 2025 nor for the year ended 31 March 2024. Trustees were reimbursed £- {2024'. £246) during the year for travel and expenses. 10 Staff costs The aggregate payroll costs were as follows= 2025 2024 staff costs during the year were: Wages and salaries Social security costs Pension costs Other staff costs and agency 3,190,362 300,624 198,861 223,660 3,004,740 276,305 183,066 411,673 3,913,507 3,875,784 The monthly average number of persons employed by the charity and those providing service on a voluntary basis during the year.. 2025 No 2024 No Average number of employees Average number of volunteers 113 26 109 16 139 125 During the year, the charity made redundancy andlor termination payments which totalled £Nil {2024 - £25.000). Termination benefits Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. The number of employees whose emoluments fell within the followng bands was= 2025 2024 £60,001 - £70,000 £80,001- £90,000 £90,001 - £100,000 Page 24
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 11 Comparative SOFA Unrestricted Designated funds funds Restricted funds Total 2024 Note Income and Endowments from: Donations and legacies Charttable activities Other trading activities Investment income 4,337 568,945 11,760 46,518 1,286 1,953,911 9,662 2,374,895 15,285 4,897,751 11,760 46,518 Total income 631,560 1,955,197 2,384,557 4,971,314 Expenditure on: Raising funds Charitable activities Governance costs 19,162 498.300 49,162 19,162 5,024,172 56,517 1,763,004 2,762,868 7,355 Total expenditure 566,624 1.763,004 2,770.223 5.099,851 Net incomel(expenditure) Transfers bebjeen funds 64,936 219,064 192.193 (219,064) (385,666) (128.537) Net movement in funds 284,000 {26,871) (385,666) 1128,537) Reconciliation of funds Total fvnds brought fOard 1.402,897 242,726 2,017.830 3,663.453 Total funds carried forward 1.686,897 215.855 1,632,164 3,534.916 Page 25
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 12 Tangible fixed assets Land and buildings Office equipment Total Cost At 1 April 2024 Revaluations 69,250 25,750 8,498 77,748 25,750 At 31 March 2025 95,000 8,498 103,498 Depreciation At 1 April 2024 8,498 8.498 At 31 March 2025 8,498 8,498 Net book value At 31 March 2025 95,000 95,000 At 31 March 2024 69,250 69,250 In 1991 a grant was received from the then Hull Health Authority which was used to make necessary improvements to the propety. The total cost of these improvements amounted to £42,041 against which a grant of £42,000 was received. The freehold land and buildings themselves were donated by the Hull Health Authority subject to a legal charge in their favour which was set upon at the open market value as assessed by the District Valuer as £69,250 at the date of transfer. The property and the liability arising from the legal charge have been revalued in line with a professional valuation which the charity received on 6 February 2025 for £95,000. In order to comply wth the accounting requirements of the Statement of Recommended Practice "Accounting and Reporting by Charities published in 2011. the trustees introduced the current value of the property into the charity's balance sheet, together with the accompanying leg31 charge of the same amount. The trustees are of the opinion that the property occupied for the purposes of the charity is maintained to such a level that ensures that the estimated useful life of the property is of such a length as to make a depreciation charge immaterial and therefore one has not been provided in the year ended 31 March 2025. Page 26
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 13 Debtors 2025 2024 Trade debtors Prepayments & accrued income Other debtors 27,485 119,615 66,188 3,439 107,296 20,373 213,288 131,108 14 Creditors: amounts falling due within one year 2025 2024 Trade creditors Other creditors Accruals & deferred income 168,012 107,651 121,452 145,755 24,383 83,874 397,115 254,012 15 Creditors: amounts falling due after one year 2025 2024 East Riding & Hull Health Authority 95,000 69,250 The East Riding & Hull Health Authority holds a legal charge on a building donated to the charity. Should the building be sold or cease to be used for the charitable objects of the charity then £95.000 would be due to the Authority. 16 Obligations under leases and hire purchase contracts Operating lease commitments Total future minimum lease payments under non-cancellable operating leases are as follows.. 2025 2024 Other Within one year Between one and five years 133,559 261.180 98,600 40.500 394,739 139,100 Page 27
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 17 Employee Benefit Obligations The charity operates a defined contributs'on scheme, the amount charged to the Statement of Financial Activities in the year to 31 st March 2025 was £198,861 {2024.' £183,006). There are also some employees in the NHS pension scheme which cannot be valued and is, therefore, disclosed on a contributions basis. Required payments to all of the schemes are up to date. 18 Funds Balance at 1 April 2024 Balance at 31 March 2025 Incoming resources Resources expended Transfers Unrestricted funds General General fund 1,686.897 786,701 (441,935) 53,203 2.084,866 Designated Central Marketing Development Central Workforce Enhancement Hull Drug & Alcohol Service ERP Access & Liaison Riverside 529 (14,645) 14,826 710 193) (6,571) 6,380 1284) 10,175 140,043 65,201 308,732 1,199,759 199,652 347,105 (282,509) {1,173,902) 1163,801) 1361.843) 2,003,271 J 110,175) 26,223 165,900 35,852 (65,200) 14,738 215,855 2,055.248 39,431) 228,401 Restricted funds Doncaster Drug & Alcohol Service User Group ASYE 1,626,035 6,129 2,587,435 33,030 8,400 12,837,949) (30,584) 18,400 {14,7381 966 1,360,783 9,541 Total restricted funds 1,632.164 2,628,865 (2,876,933 113,772) 1,370,324 Total funds 3,534,916 5,470,814 (5,322,139 3,683,591 Page 28
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 Balance at 1 April 2023 Balance at 31 March 2024 Incoming resourGes Resources expended Transfers Unrestricted funds General General fund 1,402,897 631,560 {566,624) 219,064 1,686,897 Designated Central Marketing Development Central Workforce Enhancement Hull Drug & Alcohol Service 222 {14,686) 14,993 529 (4,0511 (8,541) 12,499 (93) 42,969 134,411 69,175 256,612 1,141,958 239,006 {246.437) (1,001,914) (173,805) (42,969) (134,412) (69.175) 10,175 140,043 65,201 ERP Access & Liaison Central I, M & T Development Riverside 1,286 316.335 (1,286) (316.335) 1,763.004) 242,726 1,955.197 219,064) 215,855 Restricted Doncaster Drug & Alcohol seICe User Group ASYE 2,006,443 11.387 2,374,895 3,362 6,300 (2,735,030) (28,893) 6,300 (20,273) 20,273 1,626,035 6,129 Total restricted funds 2,017,830 2,384.557 (2,770.223 1,632,164 Total funds 3,663,453 4,971,314 (5,099,851) 3,534,916 Restricted funds The restricted funds of the Gharity comprise unexpended balances of grants to be applied for specific purposes. Each project is subject to individual funding specifically for that project and as a result has a restriction on ils use placed upon it by the grant provider. The balance will fund expenditure yet to be incurred. Designated funds During the year, the charity reviewed the balanS held in designated funds relating to specific projects. At the year end, it was determined that the activities for which these fvnds were originally designated had been fully completed, and the associated expenditure had been fully incurred in line with the funders, intentions. As a result, the residual balances, which were no longer subject to any designation, were transferred to unrestricted funds. Page 29
The Alcohol and Drug Service Notes to the Financial Statements for the Year Ended 31 March 2025 19 Analysis of net assets between funds Unrestrieted Designated Restricted funds funds funds 2025 2024 Totsl funds Total funds Tangible fixed assets Current assets Current liabilities Creditors over 1 year 95,000 1,476,709 {106,385) 195,000) 95,000 4,080,706 (397,115) (95.000) 3.683,591 69,250 3,788,928 (254,012) 69,250) 2,258,847 (173,981) 345,150 {116,749) Total net assets 2.084,866 228,401 1,370,324 3,534,916 20 Related party transactions There were no related party transactions in the year. Page 30