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 se￿IceS-. + 7 %
ADS best performing service.. + 10 %
National performance-. + 70
Regional performance.. + 10 %
Percenta
e of those released from
Across all ADS se￿Ices-. 680
ADS best performing service: 70%
National performance.. 560
Regional performance.. 65 /0
rison who en
e in community se￿ICeS
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 allian￿s 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 be￿een 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 rese￿eS 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 se￿ICe (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 AC￿PIed 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 be￿leen
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 se￿Ice
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 Ma￿h 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 fO￿ard
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
se￿ICe 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 balan￿S 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