mailes Goldie CHARTERED ACCOUNTANTS Company Ragistration NUmr. 0S375809 Charlty Registration Number.. 1108S95 The Alcohol and Drug Service (A company limited by guarantee) Annual Report and Financial Statements 31st March 2026 ICAEW CHARTERED ACCOUNTANTS
Contents Reference and Administrative Details Trustees, Report 2to12 Independent Audilor3' Report 13to16 Statement ef Financial Activities 17 Balance Sheet 18 statement of Cash Flow$ 19 Notes lo the Financial Stslements 201031
Reference and Administrative Details Trustees- A Smith- Chair l D Paisons E Tatterton- Treasurer N Dodds F Ashton W McHugh (resigned 17 June 20261 G Gilbert S Scott lappoinled 17 April 20251 Executive Team T Young, Chief Executive S Grunnill, Finance Director K Young, QLJalily & Performance Director L Jarvis, Operations & 8usines5 Director Charity Règistration Numb•r 1108595 Company Regl$tratlon Numbor 05375809 Registered Offic Kingston House Priory Park 12 Saxon Way Hessle HU13 9PB Auditor Smalles Goldie Chartered Accountants Regent's Court Princess Street Hull HU2 8BA Page 1
Trustees. Report The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report wlh the financial statements of the charity for the year ended 31 st March 2026. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Slalernenl of Recommended Pra¢ti¢e applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeth've 1 January 20191. Publlc B8n•fit The charity clearly sets out the benefit It aims to deliver in 115 mi55ion statement. This retleds the charity's objectives and which sils al the centre of all planning and perfomiance managernenL The mission Is.. "The ADS wll Work in partnership lo support people affected by sijbslance misuse to make positiv& change." Tts further support the mlssion stslemenL the charity articulate5 Its values and a wsion slalemenl. The vision statement 15, 'The ADS aspire to be an organisation where the setvices we offer are indiwdually tailored. creative, innovative, of the highest quality and result in the optimum outcome for each service user." Values The charity's values are. Hone51y Diversity • Service user and carer focused • Effective Caring Natlonal stratsgy The national strategy published in J8nu8ry 2021 and the associated funding and guidance, represents a once in a generation opportunity lo enhance the sector and sel the agenda for many year5 to come. ADS are well placed to utilise this opportunity and support change to improve support for those people affected by problematlc substance use. The election of any new govemment presents a period of uncertainty while new ministers work to translate manifesto commitments into actions and financial plans. During this period the charity worked wlh others in the sector to support the continuation of the principles and funding within the Nats"onal 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 lo make further enhancements to a sector which supports some of the most vulnerable and exclud&d people in society. To do $0 the charity wll conlinue to. sha best practice it has developed with others. Work in partnership with other providers and national bodies such as the Office of Health Improvement and Disparity IOHIDI Continue to invest in its mission. Page 2
Trustees. Report Assurlng Long Term Misslon Delivery To assure the charity's ability deliver its mission in the long term, the TrusleelDirectors, Chief Executive and Finance Director agreed a strengthening of the Executive Team was required. The process to do so h8$ been underway for some 18 months and this year culminated wth the appointment of additional exe¢ulives. Laura Jarvis. as Operations and Business Director, and lfj'rsty Young, a$ Quality and Perfomiance Director. The appointments wll enhance the charty'5 govemance, planning and innovab'on and marf( the beginning of the next exciting phase in its development. Plannlng The Charity believes that comprehensive well informed planning 1$ the comer stone of its continued success. All annual plans and strategy documents are approved by the 8oard and progress against all plans 15 reported at each rneeting. The planning framework has the Common aim of furthering the charity's objectives and ¢onsi$ts of the following. A Strate ic Plan. De5cribe5 the overall direction of the chanty for the coming 3 10 5 year5. An Annual Business Plan. Describes the charitys activity over the coming year. An Annual Workforce Develo ment Plan Describes the charitys SUPPOrt for 115 workforce over the coming year. The coming year wll see the introduction of an Information, Communicallon Technology IICTI strategy ensuTing the benefits and risks are managed to enhance the charity'g reach to. and impact on, its beneficiaries. Page 3
Trustees. Report Quallty and perfomiance A robust Quality Assurance framework is in place which contains a range of internal quality indicators. These are reported monthly lo managers and quarterly to the Board. The positive impact of our services 1$ measured against our mission. We aim lo support positive change in all who come through our doors. This year we have appointed a Quality and Performance Director to further enhance our offer lo beneficiaries. Ab51inen Of everyone wth us this year, 23QA left our setvices substsnce free and did not retum to treatment. That's 17 people every week, 52 weeks a year. Of those with us for an alcohol problem, 48% left alcohol free and do not return. That's 10 people every week, 52 weeks a year. IADats source.. Public Health Outcomes Framework C19 Ifomierfy 2.151.. data point March 2026.1 Percenta eof eo Across all ADS services.. 470 ADS best performing service.. 88% National performance.. 46% Regional performance.. 47°/0 ro ress in Irealmen_e Increase in numbers in IrealmenL Across all ADS services.. + 13% ADS best performing seNice.' + 28% National performance.. + 16° Regional performance.. + 20Q Percentage of those released from Across all ADS services. 760 ADS best performing service.. 76% National performance". 560 Regional performance 650 ri50n who en e in communi services inu I'Dala source." NDTMS Local outcome Framework.. Ac¢essed 1 April 20261 Quality Manage_ment S stem BS EN ISO 9001.201_51 An annual external audit assures the Quality Management System has been implemented, maintained and is Dperating in accordance wlh the stsndards. ood em eranda ood place to work. Holding the Investors in People IliPI award since 2016 the charity is proud lo be a good employer and good place lo work but continues lo seek improvement. In addition lo the Investors rewews and the annual workforce SLJrvey, the charity collects data on key measures of performance. The three yeady cycle of Investors in People onsite audit look place over September and October this year. The audit includes confidential face lo face interviews with the IIP auditor wrth a randomly selected group consisting of 30% of the workforce. Fundin our miSn Of ADS expenditu 930 was on direct charitable aclivilies. IDala source.. ADS Audited accounts 20251261 Page 4
Trustees, Report Investing in our mission The ADS has effective financial controls in place which enable il to manage 115 intemal finances and ensure il is able lo deploy ils funds to ensure best value for its benefiGiarie5. Due lo this continued good financial planning and management. the charity is in a healthy financial position including having free reserves. This year has made it possible lo conts'nue investing in the mi95ion to ameliofale risks lo the charity's ability lo deliver its mission, lo enhance the quality ol that delivery and to plan for further investments In the years to come. Risk amelioration The most significant risk to the ¢harily thi5 year was.. Continuation of funding and the National Drug land Alcohol) Strategy. Substance misuse servi¢e Gommi5sioners are the source of 96Vo of incorne and are the reGipienls of the govemment provided national funding for drug and alcohol services. The funding cannot be spent on anything other than substance misuse services. The funding for the year 2025126 was confirmed as continuing al current levels. However, in December 2025 the government published a spending commitment for the coming three years significantly reducing the risk and allowng longer term planning. Enhancin A critical determinant of successfully delivering our mission is a well-trained, high-quality workforce. To sUPPOrt this the Charity has invested in the workforce lo ensure the continued provision of highquality services lo its beneficiaries. The investments aim lo create a 'pipeline' which will provide a quality workforce on an ongoing basis. These investments include.. The SLJccessful introduction of Apprenticeships including the following.. Soaal W¢Yk IBAI Apprenticeship and the first graduate of the programme will be In 2026 People Support (formerly Human Resources) Apprenticeship Production and delivery of a free Commissioners in substance use training. An enhanced Social Worker support scheme introduced aimed at improving the retention of social worker5 and the support for social work development. Planned investments for the coming year include". A nexl level training for Commissioners of substance use services. The development and launch of a second-tier commissioner training accredited to HND or Degree level. nrm8110 Comlnunicalion Technolo ICT The charity continues to invest and develop ils ICT assets and has achieved and maintained the Cyber Essentials Plus quality mark for cyber security. An ICT plan is embedded in the annual business plan. A strategic ICT plan authorised by the Board of TrusteelDirectors will be mobilised in the coming financial year120261271. Page 5
Trustees, Report Environment, Social, Gov8manc In the coming year ADS wll continue ils investment in an Environment. Social, Governance reporting and management framework. the approach will bring together the three key areas which underpin everything the charity does and enable il to cleaTly articulate this to both inlemal and exiernal stakeholders. Central Office The charity central office occupied a building buitt c1900 al 82 Spring Bank since 1991. In the PvIolIS 10 years, the annual maintenance costs had increased year on year and il was increasingly difficult lo ensure access was in line with the charity's commitment to equality and diversity. It was no longer fil for purpose nor a good use of the charity funds. A decision was made to seek alternab've offices. Suitable offices were identrfied al Kingsltsn House Saxon Way, Hessle and the lease slgned on 03.02.2026. The Spring Bank premises were Sold at auction and the sale completed on 27.04.2026. Stakeholders The charity regularly consutts wth stakeholders ublising feedback to continue to improve seices. Commissioner5 are Consulted in several formal and informal ways. In addition lo formal monitoring meetings a partnership approach lo developments and joint planning ensures the opinions of commissioners are embedded in the service development. Service Users a regularly consulted throughout seM¢es, with some operating an on%oing formal consultslion and others using periodic surveys, Feedback is sought on an on-going basis from Service User Groups and mentors lo ensure their ideas and thoughts are reflected and their involvement is included in the ¢deSIgn and implemenlalion of new developments. Employee consultation is through team and other meetings, supervision, whole service events and an annual workforce survey. An annual ADS conference provides a forum for sharing, celebrating succe55 and consulting for all ADS employees and those of partnership organisations to be consulted. An employee newsletter provides a vehicle lo share information and encourage feedback. policies, annual plans and external audit and reports are available on the Gharity's hub ensuring all employees have easy and convenient access, Page 6
Trustees, Report Sorvica delivary Based upon its stated focus, the Acohol and ONg Service offers a confidentsal, professional, modern approach lo alcohol and drug problems. At present our service5 cover the areas of the East Riding, Doncaster and Hull. The ADS has maintained its ¢ommitrnenl to ils core focus under the following four headings. The full range of adult community based services Young Peoples, services Delivering services to both rural and urban areas Partnership working Supporting earfy intervention outside of specialist services The charity continues lo develop alliances and partnerships to provlde SeCe users wlh access to key wrap aroL4nd support vitsl for 5UStaining recovery. The charity under5tsnd5 to Provide the best for its benoficiaries il must work in partnership with others. This lakes many forms Including contractual, informal arrangements and formal consortium agreements. Peer mentors and volunteers The charity is supported by volunteers many of whom have lived experience of problematic substsnce use. The charity provides a comprehensive volunteer training programme to equip volunteers lfvith the necessary skills and knowledge. Most modules in the programme are accredited qualifications assuring knovAedge and quality. The successful completion of the volunteer prograrnme equips volunteers wlh the qualifications and experience required for a paid post a$ a Trainee Recovery Vvorker and supports applications for paid work outside the charity. Social media Facet)ook, Instagram and X ¢t>nb'nue lo be ulilised by the charity to reach and comTnunicate wth current and potential beneficiaries. SeNces are encouraged to use their social media platforms to engage with and support local neOrks. Flnancial management In The economic environment has been difficult over recent years. Along with the national strategy and associated additional funding, has come pressure lo expand services quickly. At the end of a decade of significant cuts, providing the additional workforce required lo deliver on the national targets ha5 been challenging. In the absence of an available qualified workforce there is competition for the small number who are. In this landscape ADS has utilised its strong financial position to invest in training, skills and resources lo provide 8 workfor¢e capable of maintaining services of a high quality and continue to effectively deliver on ils mi5510n. Income There was a slight decrease in income of 2Qk this year wlh overall income at £5,357,534 12024125 £5,470,814). Page 7
Trustees. Report enditure The majority of the ADS'S lunding is Restricted. in that the income is required to be expended on specific services that are conlracled. Expenditure in 2025126 amounted to £5,594,081 12024125 £5,322,139}. Whilst most of this is pay cosls there ha5 been an investment in increasing the capacity of the senior tearn, quality roles across the chanty. The majority of these cost5 relate primarily lo the operational staff however, investrnenl in a fil for purpose cenlral office also been made. ADS continue lo minimise management and administration costs and demonstrate best value to commi55i0ner$. ReseNes Deficit for the year was £236,547. The deficit on unrestricted fvnds was £56,657, the surplus on designated funds was £49,292 and a deficit of £229,182 arose on restricted funds. The deficit on reslricled funds was expected and planned for and represents tirning differences been the receipt of Income and the provision of Services. Balance sheet There has been no SIgncan1 change in the fixed assets of the ADS. The balance of cash and short term deposits held across all accounts at the yeaT-end was £3,362,789 12024125 £3,867,418). Corporate governance, risk management and re$•tv8s policy The ADS Board of TrusteeslDireclors Ilhe Board) have considered the major risks lo 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 TrusteelDirectors are published on the ADS website at https."Ilads-uk.orgltruslees. The Management Board are sUPPOrted by an experienced Executive Team consisting of a Chief Executive and Finance Director, vh)0 have 3 combined experienc& of the charitable 5e¢lor of over 50 years. The Board oversees and approves the overall strategy, performance and management of the ADS and meets four times a year, reviering business developments and agTeeing policy with the Executive Team. The Chief EKe¢utive is responsible for day lo day control of operations and the performance of the ADS. The Chief Executive has also sel in place operational controls over service provi510n, 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 wlh Charty Commission guidelines, and to enable il to deal wth any issues arising from short-term fluctuations in funding andlor ¢ash flow, the Board sets a minimum serves tsrget. This target has been achieved and maintained. The rnechanism for ¢alculating the minimum reserves laTget 51ts within a comprehensive reserves policy. The reserves target is reviewed annually. Page 8
Trustees, Report The overall finance strategy is delwered through a range of annual plans and policies ensuring the delivery ol the charills objectives. This balanced approach has enabled the investment in capacity and infrastructure alongside traditional investments and a business case approach through thich additional income is generated 6¥hile enhancing the charity's ability to deliver ils obiethves. Outlook The $eNi¢e 1$ 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 lo 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 fotward planning and ensure ihe Board is able lo continue to govern the charity effectively. The ADS is well placed lo build on its core aroas and further develop and expand its service5 in the region. It has a growing reputation locally for providing a quality Service, with a pro-adive and experienced management team, supported by an active, professionally focused Board. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The Alcohol and Drug seice is an incorporated Charity govemed by the Articles of Assoaation which are regularfy reviewed. The current Arti¢le5 were adopted 18 April 2024. This ensures that the risk lo TrusteelDirectors is managed, and that the charity can continue to attract and ielain the calibre of TrusteelDirectors necessary to maintain a high-quality Board best suited lo deliver sound govemance. The charity is controlled by its governing docurnent, a deed of Irusl, and constitutes a limsted company, limited by guarantee, as defined by the Companies Act 2008. The Articles of Association Set out the rules regarding membership and all members shall be entitlod to vote at all general meetings of the charity. The governance of the charity is the responsibility of the Board of TTusleelDirectors. TrusteelDirecloTS are either elected al the annual general meeting or co-opted rf necessary. The day lo day management of the charity is devolved by the Board lo an Executive Team. The principal office is Situated at Kingston Hokjse. Priory P3rk, 12 Saxon Way, Hessle. The charity has a schedLJle of delegation which provides a clear and concise record of the delegation of authority and the limits on those delegations in critical areas. This supports effective and timely s¢ruliny by the Board of delegated decisions. In the event of a winding up of the charity any surplus funds must be granted lo any such charitable organi5abon having objects similar to those of the chaTIIy. Page 9
Trustees, Report Structure and management The TTUSleelDirertors have overall respon5ibilty for ensuring that the charity has appropriate systems of intemal wntrols, financial and otherwise. They are also responsible for keeping proper acG(>unting recordy v4hich disclose with reasonable accura¢y 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 sponSible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevenb'on and detection of fraud and other irregularities. An experienced Management Board oversees the charity, with the ExecLJtive Team reporting lo the Board and being responsible for the day lo day operational functioning of the charity. Financial performance is monitored through the pparatIOn tsf delaileil budgets, forecasts. and monthly management accounts. The charity has an overarching objective lo allow its resources lo be allocated by those closest to its services and service users, while maintaining robust financial control. To enable this, the charity has 3 detailed budget seth'ng procedure and map describing a process which ensures local budget holders have a full input in setting their service budgets and accounts for organisalional priorities and governance. The process is reviewed annually wrth a primary indicator being the year end position of individual cost centres to ensure inrtial budgets set were accurate and have been managed effe¢lively. The charity continues to explore the most effective ways to invest its resources in furtherance of its objectives. A comprehensive investment strategy and allendant policy is in place thich includes a definition of investment encompassing traditional investment which seek5 a monetary return and a category outlining the use of resources to enhance the charities capacity to7 improve services for ils service users. deliver on current Contracts and better position il to increase its impact on ils beneficiaries going forward. The investment strategy will be reviewed during the 2025126 financial year. The workforce development plan is based on an analysis of perfoTmance and supply and demand. The plan a¢¢ounts lor personal developmenL setvice and departmental development and succession planning. All developments are linked wlh the charity's strategic, business and workforce development plans which are designed to further ils objectives. The charity publishes ils annual and strategic plans on its intranet allowng all employees access and inviting scrutiny. Page 10
Trustees, Report Trustee policy and proc¢dur¢¥ The ADS has robust systems in place for a55uring 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 8nd finish group, has clear Terms of Reference. TrusleelDiTector recruitment policy and procedure. Truslee/Director induction policy and procedure. TrusleelDirector training poli¢y and procedure. TrusleelDirector registration of inleresls, policy and procedure. Appointment of Trust88lDir8ctors To ensure the make up of the charity Board remains fil for purpose recruitment is triggered by one of the followng factor5. An existing Board member resigns. and a replacement is sought. A review of the Board membership indi¢ate5 a need for increased numbers, diver511y or specific skilllexperience gap. If recruitment is triggered a rigorous recruitment proce55 follows. TrustsglDlre¢tor Inductlon A robust Trustee induction programme is in place and ils delivery is monitored and signed off by the Board. Ex•cLrtlvo T•am performance relatsd rgmuneratlon The charity ensure5 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 with the need to attract senior leaders who wll be effective in using the charity's resour¢e5 to deliver the charity's stated purposes lo those comrnunities il is set up to serve. Page 11
Trustees, Report TRUSTEES. RESPONSIBILITY STATEMENT The trustees I0 are a150 the directors of The Alcohol and Drug Service for the purposes of company lawl are responsible for preparing the financial statements in accordance wth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Finanaal Reporting Stsndard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare financial 51aternents for each financial year. Under company law the trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charty and of the incoming resources and application of resources, including ils income and expenditure, of the charity lor th* 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., make judgements and estimates that are reasonable and prudent.. slate whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departu$ disdosed and explained in the financial statements". and prepare the financial statements on the going concem basis unless il 15 inappropriate to presume that the charity TMII Go>ntinue in business. The trustee5 are responsible for keeping proper accounting records that can disclose wth reasonable accuracy al any time the financial position of the charity and enable them lo ensure that the financial statements comply wrth 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. Dlsclosure of inform8tlon to auditor Ea¢h trustee 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 trusl&es confirm that there is no relevant information that they know of and of which they know the auditor 1$ unaware. Reappolntm¥nt of auditor In accordance wlh 5e¢tion 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 Meebng. The annual report was approved by the trustees of the charity on 16 July 2026 and signed on its behalf by.. Trustee Page 12
Independent Auditor's Report to the Members of The Alcohol and Drug Service Opinion We have audited the financial statements of The Alcohol and Drug Setvice (the 'chaTIty'I for the year ended 31 March 2026, which comprise the Statement of Financial Acliwties, Balance Sheet. Slalement of Cash Flow3, and Notes to the Financial Stslements, including a SLJmrnary of signrficant accounting policies. The financial reporting framework that ha5 been applied in their prepaiation is Uniled 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 Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the slate of the charity's affairs as al 31 March 2026 and of its incoming resources and application of resources. including ils income and expenditure, for the year then ended., have been properly prepared in accc¢rdance svith United Kingdom Generally Accepted Accounting Prath'ce,. and have been prepared in accordance wlh the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance wlh Inlemalional Standards on Auditing IUKI IISAS (UK)) and applicable law. Our responsibilities under those Standards are lurther described In the auditor responsibilitie5 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 w(th these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial statement5, we have concluded that the Iru5tees use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaints'es relats'ng to events or conditions that. individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of al least e1ve months from when the original finanaal ststements were aulh0ri5ed for issue. Our responsibilities and the responsibilities of the Iruslees wlh respect to going concern are described in the relevant sections of this report. Page 13
Independent Auditorfs Report to the Members of The Alcohol and Drug Service Other inforniation The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditoffs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent olheTWtse explicitly stated in our report, we do not expre55 any fomi of assurance conclusion thereon. In connection wrth our audit of the financial ststements, our responsibility is to read the other information and. in doing so, consider whether the other informaliori 15 materially inconsi51enl wth the financial slalements or our knowledge obtained in the audrt or tsthenNise appears lo be materially misstated. If we Identify such material inconsistencies or apparent material mi5s1atemenls, we are required to determine whether there is a material misstatement in the financial statements or a material misslalement of the other information. If, based on the work we have performed, we conclude that there 15 a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on othèr matter prescrlbed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audf(". the information given in the for the financial year lor which the finanryal Statements are prepared is consistent rith the financial statements,. and the has been prepared in accordance wth applicable legal requirements. Matters on which we are requlrgd to report by gxceptlon 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 mi551alements in the Truslee5' 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 slalemenls are not in agreement wlh the ac¢ountin9 records and luMS., or certain disclosures of Iruslees remuneration specified by law are not made., or we have not received all the infomiation and explanations we require for our audit. Responsibilities of tw$tso$ As explained more fully in the Trustees, Report Iset out on page 121. the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such inlemal control as the truslees detemiine 15 necessary to enable the preparation of financial statements that are free from material misstslement. whether due to fraud or error. In preparing the financial slalemenls, the trustees are responsible for assessing the Charity's ability to conlinue as a going concem. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Iruslees either intend to liquidate the charity or to cease operations, or have no realistic alternative bul to do so. Page 14
Independent Audito$ Report to the Members of The Alcohol and Drug Service Auditor responsibilities for tha audlt of the financial statem8nts Our objectives are to obtain reasonable assurance about whether the financial statements as a ole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes OUT opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audrt conducted in accordance wlh ISAS IUKI wll always detect a material misslalement when it exists. Misslalernents can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected lo influence the economic decisions of user5 taken on the basis of these financial statements. The extent lo which our procedures are capable of detecting irregularities, including fraud is detsiled below.. Our approach to identifying and assessing the risks of material misstafement in respect of irregularities, including fraud and non-compliance wth 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. anli-bribery, employment, environmental and health and safety legislaty'on. An understanding of these laws and regulatsons and the extent of compliance was obtained through discussion wth management and inspecting legal and regulatory correspondence. We assessed the susceptibility of the charity's financial statements to malersal misstatement, including obtaining an understanding of how fraud rnight occur, by making enquirie5 01 management and considering the internal controls in place lo mrtigale risks of fraud and non-cornpliance with laws and regulations. To address the risks of fraud thTough management bias and override of controls, we.. perfomied analyb'cal procedu$ to identify any unusual or unexpected relationships.. te51ed journal entries to identfy unusual transactions., assessed whether judgements and assumptions made in detemiining the accounting estimates were indicative of potential bias., and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularitie5 and non-compliance wlh laws and Tegulats'ons, we designed procedures which included, bul were not limited to.. agreeing financial slalement disdosures lo underly1ng supporting documentslion", reading the minutes of meeb'ngs of those charged wlh governance., enquiring of management as to actual and potential lrtigation and claims.. and reviewng 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 irregul8rilies, including those leading to a material mis51atement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation 15 removed Imm the events and transactions reflected in the financial statements. as we wll be less likely to become aware of instances ol non-compliance. The risk is also greater regarding iegularitieS occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentab'on. Page 15
Independent Auditorfs Report to the Members of The Alcohol and Drug Sevvice Use of our raport This report 15 made solely to the charity's trustee5. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so th81 we might stale lo the charfty's trustees those matters we are required to slate lo them in an auditor's report and for no other putpose. To the fullest extent permitted by law, we do not accept or assume responsibilty lo anyone other than the charity and its trustees as a body, for our audit work, for this reptsrt, or for the opinions we have formed. Stephen Bramall Bsc., FCA (Senior Ststutory Auditor) For and on behalf ol Srnaile5 Goldie, Statulory Auditor Regent's Court Prince55 Street Hull HU2 8BA 17 July 2026 Page 16
Statement of Financial Activities for the Year Ended 31 March 2026 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unr•strlcted Designated funds lunds Restricted funds Totsl 2028 Total 2025 Noto Income and Endowments from: Donations and legacies Chanlable activities Other trading activities Investment income 849 799,175 286 2.738,010 1,135 5,275,959 43,767 5.344,496 1,738,774 17,760 62,680 17,760 62,680 12,580 69,971 Total income 880,464 1,738,774 2,738,296 5,357,534 5.470,814 Expendlture on.. Raising funds Charitable activities Governance costs 15,669 932,423 31,048 15,689 5,537,045 41,367 24,857 5.243,932 53.350 1,646,963 2,957,659 10,319 Total expenditure 979,140 1.646.963 2,967.978 5,594.081 5,322,139 Net lexpenditurellincome Transfers between fvnds 198,676) 91,811 1229.6821 {236,547) 148,675 42,019 42,519 500 Nel movement in fund5 156,6571 49,292 1229,1821 {236,547) 148,675 Reconciliation of funds Totsl fund5 brought forward 2,084,866 228,401 1,370,324 3,683,591 3,534,916 Totsl funds carried forward 2.028,209 277,693 1,141,142 3,447.044 3,663,591 Afi of the charity's activities derive frorn continuing operats'ons during the above tsvo periods. The notes on pages 20 to 31 form an integral part of these financial slatemenl5. Page 17
{Registration number". 05375809) Balance Sheet as at 31 March 2026 2026 2025 Note Fixed a55ets Tangible assets Current assets Debtors Cash al bank and in hand Short-term deposits 12 80,000 95.000 13 255,448 2.362,789 1.000,000 213,288 3,867.418 3.618,237 4,080.706 Creditofs: Amount$ lalllng dug within one year 14 251,1931 1397,115 Net currgnt assets 3.367,044 3,683,591 Total assats less current liabilitles 3.447,044 3,778,591 Creditors- Amounts falling due after more than on¢ yéar 15 Net assets 95.000 3,447,044 3,683,591 Funds ofthe charity: Re$trlctgd income funds Restricted funds 1,141,142 1.370,324 Unr&strict8d income funds Designated Fund5 General Funds 277,693 2,028,209 228,401 2,084,866 Total unrestricted funds 2,305,902 2,313.267 Total funds 3,447,044 3,683,591 These financial statements have been prepared In accordance with the special provisions relating to companies subject lo the small companies regime within Part 15 of the Companies Act 2006. The financial statemen15 on pages 17 to 31 were approved by the trustees, and authorised for issue on 16 July 2026 and signed on their behalf by.. Trustee The notes on pages 20 to 31 fofm an integral part of these financial statements. Page 18
Slatement of Cash Flows for the Year Ended 31 March 2026 2026 2025 Cash flows from oporatlng activities Net cash lexpendilurellincome {236,5471 148,675 Adjustments for nOnpOratIng Itfrms Investment income 62,680 69.971 1299,2271 78.704 Working capitsl adlustments Increase in debtors (Decreasellincrease in creditors 13 14 142,1601 225,922 182,1801 143.103 Net cash flows from operating activiliey 567.309 139.627 Cash flows from invosting activiti8$ Interest receivable and similar income Investment into short-lerm deposits Nel cash flow5 from investing activits'es Nel Idecreasellincrease in cash and ¢ash equiv8len15 Cash and cash equivalents at 1 Aprll Cash and cash equivalents al 31 March 62,680 1,000,000) 69.971 937,320 69,971 11,504,629) 209,598 3,867,418 3,657,820 2,362,789 3,867,418 Atl of the cash flows are derived from continuing operations during the above two periods. The note5 on pages 20 to 31 fomi an integral part of these financial statements. Page 19
Notes to the Finan¢lal Statements for the Year Ended 31 March 2026 1 Charfty status The chaTily is limited by guarantee, incorporated in England & Wales, and consequently does not have share c8pitsI. Each of the 8 members is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation. The address of its registered office is.. Kingston House Priory Park 12 Saxon Way Hessle HU13 9PB 2 Accounting policies Summary of significant accountlng pollciès and key accounting ¢$tlmates The principal accounting policie5 applied in the preparab'on of these financial statements are sel out below. These policies have been con515tently applied lo all the years PTesented, unless OtherSe stated. Statement of compliancè The financial statements have been prepared in accordance wth Accounting and Reporting by Charities." Statement of Recommended Practice (applicable to charities preparing their ac¢ounls in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 10211 (issued in October 20191- (Charities SORP IFRS 10211, the Financial Reporting Standard applicaljle in the UK and Republic of Ireland IFRS 1021 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 liabilitse5 are initially recognised at historical cost or transacts'on value unle55 olhewse stated in the relevant accounting policy notes. Going concern The trustees, hawng considered the available information & forecasts for the period lo 31 March 2027 and strategic plan for the period to 27128, have a re8gonable expectation that the Gharity has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and therefore have prepared the financial statements on going concern basis. Income Income fmm donors andlunders Grants and ¢onlra¢t in¢ome is recogni5ed when the charity has enlitlemenl lo the funds, after any performance conditions have been met, rt is probable that the income wll be received and the amount can be measured reliably. Page 20
Notes to the Financial Statements for the Year Ended 31 March 2026 Voluntary income Cash donations, gifts and legacies are included in full in the Statement of Finanaal Activities as they are received. Other trading income All other income is accounted for on an accruals basis. Investment in¢ome Bank interest and investment bond income is included In the Stslement of Financial Activities on receipt. Expondlture Liabilitie5 are recogni5ed as expenditure as soon as there 15 a legal OT constructive obligation committing the charity lo that expenditure, il is probable th31 a transfer of economic benefits will be required in settlement and the amount of the obligats'on can be me35ured 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. Admini5trab"on includes the cost of management of the charitys affairs. Staff costs Temlinatlon beneflts Temiinalion benefit5 are recognised immediately as an expense when the charity is demonstrably committed lo terminate the employTnent of an ernployee or to prowde lerminats'on benefits. Pensions and otherpost relirement obligations The charity operaleg a defined contribution pension scheme. Contribution5 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. Taxatlon The Alcohol & Drug SeNice Limited is a UK registered charity, number 1108595. All the tharitys income is applied to ils chariiable objectives and the charity is, therefore, exempt under curnt legislation from most forms of taxation. D•pr•¢lation and amortisation Oeprecialion is calculated on the straight line basis lo write down the cost of all fixed assets, except freehold property, over expected useful lives. The lives generally applicable are,. Asset cla$$ Office equipment D&pre¢iatlon method and rate 5-6years Tanglble fixed assets The Charity only considers capitalising items over £5,000. Page 21
Notes to the Financial Statements for the Year Ended 31 March 2026 Debtors and creditors receivable I payabl& vrrithin one year Oebtors and creditors with no stated inleie51 iale and receivable or payable wthin one year are recorded at transaction price. Any losses ari5ir¥g from impaimient a recognised in expenditure. Fund structure Unrestricted funds are donations and other incoming resources receivable or generated for the obje¢ts of the charity without further specified purpose and are available as general funds. Designated funds are fijnds earmarked by the management committee for a paCUlar purpose. Restricted funds are to be used for a specific purpose as laid down by the donor. Expenditu which meets these criteria is charged to the fund, together wlh a fair allocats'on of management and support costs where applicable. Hire pur¢ha$& and finance leases Rentals payable under operating leases are charged lo the statement of financial activities over the period of the lease on a straight line basi5. 3 Income from donations and legacies Total 2026 Total 2025 Donations and gifts Sundry income 1,135 34.271 9,496 43,767 1,135 Page 22
Notes to the Financial Statements for the Year Ended 31 March 2026 4 Income from ¢harftsbl& actlvltles 2026 2025 Grant5 and contracts Training 5,169,169 106,790 5,275,959 5,257,897 86,599 5,344,496 Grants received. included in the above, are as follows.. 2026 2025 Doncaster Drug & Alcohol Setvice East Riding Partnership Hull Primary ca Addictions SeNice Acce55 and Li&son Riverside 3,146,102 1.407,689 418,590 196,788 2,875,367 1,408,272 356,638 240,791 376,829 5,169,169 5,257,897 5 Incomg from other tradlng activitlos 2026 2025 Placements and Irainlng 17.760 12,580 6 Invo$tment Income 2026 2025 Bank interest 62,680 69,971 7 Expenditure Diréct Costs Support Costs 2026 2025 Raising funds Charitsble acllvlties Govemance costs 15,606 5,258,238 11.140 63 278,809 30,227 15,669 5,537,045 41,387 24,857 5,243,932 53,350 5,284,982 309,099 5,594,081 5,322.139 Page 23
Notes to the Financial Statements for the Year Ended 31 March 2026 Costs directly allocated to activities are as follows.. Dlre¢t strrvicg activity Ralsing funds Goveman¢• 2028 2025 Client health supplies Staff costs Recruitment Staff training Equipment purchase Adminislrats"on costs Audrt of the financial slalements AGM and annual report Premises- direct Volunteer expenses 300 11,276 704,114 4,170,658 25,917 73,635 1,426 37,196 704,414 4,181,932 25,917 75,625 1,426 39,236 698,786 3,913,507 43,586 74,318 816 33,710 1,990 2,040 10,560 580 10,560 580 221,110 24,182 5,284,982 9,864 489 274,243 12,453 221,110 24,182 15,606 5,258,236 11,140 5,061.772 Analysis of support costs.. Grant$ and Governance contracts costs Raising funds 2026 2025 Support costs General office and finance Central premises Communications Bank charges Professional fees 21,081 59,305 193,253 1,151 4,019 634 21,715 59,305 193,316 1,151 33,612 22,310 34,014 183,377 1,100 19,566 63 29,593 83 278,809 30,227 309,099 260,367 Support costs are allocated between raising funds, grants and contracts and govemance cost5 based on the purpose of individual expenditure and the most appropriate category on 8 PLJrchase by purchase basis. 8 Net incomingloutgolng rgsourcas Nel loutgoingllincoming resources for the year include.. 2026 2025 Operating leases - other assets Audit fees 160.172 10,560 151,681 9,864 Page 24
Notes to the Financial Statements for th8 Year Ended 31 March 2026 9 Trustso8 rèmunèration and expenses There were no trustees. remuneration or other benefits for the year ended 31 March 2026 nor for the year ended 31 March 2025. Trustees were reimbursed £nil12025.' £nill during the year for Ir8vel and expenses. 10 Staff costs The aggregate payroll costs were as follows.. 2026 2025 Staff costs durlng the year were: Wages and salaries Social security costs Pension costs Other staff costs and agency 3,433,665 419,845 208,615 119,807 3,190,382 300.624 198,861 223,660 4,181,932 3,913,507 The Fnonlhly average number of persons employed by the charity and those providing service on a voluntary basis during the year.. 2026 No 2025 No Average number of employees Average number of volunteers 114 28 113 26 142 139 The nurnber of employee5 whose emoluments fell within the following bands was.. 2026 No 2025 No £60,001- £70,000 £90.001- £100,000 Page 25
Notes to the Financial Statements for the Year Ended 31 March 2026 11 Comparatlve SOFA Unrestri¢tgd D8signatsd funds funds RestTl¢ted funds Total 2025 Note In¢om8 and Endowments from.. Donations and legacies Charitsble 3ctivib.es Other trading activrties Investment income 2.337 701,813 12.580 69,971 41,430 2,587,435 43,767 5,344,496 12,580 69,971 2.055,248 Total income 786,701 2,055,248 2,628,865 5,470,814 Expenditure on: Raising funds Charitable activities Govemance costs 24,857 370,419 46.659 24.857 5,243,932 53,350 1,996,580 6,691 2,876,933 Totsl expendrture Nel incomellexpenditurel Transfers betrveen funds 441,935 2.003,271 2,876,933 5,322,139 344,766 53,203 51,977 139,431 1248,0681 13,772 148,675 Nel movement in funds 397,969 12,546 (281,8401 148,675 Reconciliation of funds Total funds brought fOnard Total funds carried forward 1,686,897 215,855 1,632,164 3,534,916 2,084,866 228,401 1.370,324 3,683,591 Page 26
Notes to thè Financial Statements for the Year Ended 31 March 2026 12 Tangiblo fixéd as$¢ts Land and buildings Offlce oquipm8nt Totsl Cost At 1 April 2025 Impairments 95,000 15,000) 8,498 103,498 15,000 At 31 Marth 2026 80.000 8,498 88,498 Depreciation Al 1 April 2025 8,498 8,498 Al 31 March 2026 8,498 8,498 Not book value Al 31 March 2026 80,000 80.000 Al 31 March 2025 95,000 95,000 In 1991 a grant was received from the then Hull Health Authority which was used lo make necessary improvements to the property. The lolal Gosl of these improvements amounted to £42.041 against which a grant of £42,000 was received. The freehold land and buildings thernselves were donated by the Hull Health Authority Subject to a legal charge in their favour which was set upon at the open market valu& as assessed by the District Valuer as £89,250 al the dale of tTansfer. At the year end the propety was committed lo be sold, having been auth'oned in March 2026. The sale completed in April 2026. The property and the liability arising from the legal charge have been impaired in line wih the Selling price of £80,000. Page 27
Notes to the Financial Statements for the Year Ended 31 March 2026 13 D&btors 2026 2025 TTade debtors Prepayment5 & accrued income Other debtors 29,260 129,062 97,126 27,485 119,615 66,188 255,448 213,288 14 Creditors: amounts falllng du• within one year 2026 2025 Trade Creditors Other credilorg Accruals & deferred income 63,812 107,096 80,285 251,193 168,012 107,651 121,452 397,115 15 Credltors: amounts falling due after one y&ar 2026 2025 East Riding & Hull Health Authority 95,000 The East Riding & Hull Health Authority held a leyal charge on a building donated lo the charity. As the building was committed lo be sold at the year end, the £80,000 has become due to the Authority. It is therefore recognised In other creditors falling due in less than 1 year in 2026. 16 Obllgatlons undor leases and hir• pur¢haso contracts Operating lease commltments Total future minimum lease payments under non-cancellable operating leases are as follows". 2026 2025 Othar Within one year Between one and five years 172,545 419,515 133,559 281,180 592,060 394,739 17 Employ88 Benefit Obligations The charity operates a defined contributlDn scheme, the amount charged lo the Stslernent of Financial Aclivilie5 in the year to 3151 March 2026 was £208,815 12025." £198,861). There are also some employees in the NHS pension scheme which cannot be valued and is, therefore, disclosed on a contributions basis. Required payments lo all of the schemes are up lo dale. Page 28
Notes to the Financial Statements for the Year Ended 31 March 2026 18 Contingent Ilabllltley There is an ongoing employment tribunal case brought by a fomier employee. The liming and amount of any outcome is yet unknown and unablo lo be reliably measured due to the case b8ing in the eady stages of the tribunal process. 19 Funds Balance at 1 Aprll 2025 Balance at 31 March 2026 Incomlng resource8 Resources expended Transfers Unrestricted funds General General fund 2,084,866 880.464 1979,1401 42,019 2,028,209 Designated Central Marketsng Development Central Worf(force Enhancement Hull Drug & Alcohol Service ERP Access & Liaison 710 114.6321 14.371 449 12841 16,4011 5.185 11,5001 26,223 165,900 35,852 370,684 1.212,442 155,648 1306,4501 11,163,832) 155,648 1,646,963 126,2231 64,234 214,510 35,852 228,401 1,738,774 42,519 277,893 Restricted funds Don¢asler Drug & Alcohol Service User Group 1,360,783 9,541 2,738,010 12,939,898) 28,080 1,158,895 17.753 500 Total restricted funds 1,370,324 2,738,296 2,967,978 500 1,141,142 Total funds 3,683,591 5,357,534 15,594,081 3,447,044 Page 29
Notes to the Financial Statements for the Year Ended 31 March 2026 Balance at 1 Aprll 2024 Balanco at 31 March 2025 Incoming rnsources Resources expended Transfers Unrèstricted funds General General fund 1,686,897 786,701 1441,9351 53,203 2,084,866 Designated Central Marketing Development Central Workforce Enhancefnent Hull Drug & Alcohol Servlce ERP Access & Liaison Riverside 529 114,6451 14,826 710 1931 16,5711 6,380 1284) 10,175 140,043 65,201 308,732 1,199,759 199,652 347,105 215,855 2,055,248 {282,5091 11,173,902) 1163,8011 361,843 110,175) 26,223 165,900 35,852 165.200) 14,738 2,003,271 39,431 228,401 Restricted Don¢aster Drug & Alcohol SeNice User Group ASYE 1,626,035 6,129 2,587.435 33,030 12,837,949} 130,5841 8,400 114,7381 966 1,360,783 9,541 Total restricted funds 1,632,164 2,828,865 2,876,933 13,772 1,370,324 Total funds 3,534,916 5,470,814 5,322,139 3,683,591 Restricted funds The restricted fvnds of the charity comprise unexpended balances ol grants to be applied for specific purpose5. Each proje¢t is subjecl to individual funding specifically for that project and a5 a result has a restriction on 115 use placed upon il by the grant provider. The balance wll fund expenditure yet to be incurred. Riverside fund has been rnoved from Designated to within Restricted DDAS fund as it forms an element of the core contract. Service User Group restricted fund is in deficit at the 2025126 year end, however thi5 is expected and has been Corrected post year-end. The fund is undetwritlen by the DDAS fund and so the deficit is funded by the DDAS ¢ontract. Oesignated fund5 Ouring the year, the charlty reviewed the balances held in designated funds relating 10 specific projects. At the year end. il was determined that the activities for which these fvnds were originally designated had been fully completed, and the associated expenditure had been fully inCUrd in line with the funders, intentions. As a result, the residual b81ances, which were no longer subject to any designation. were transferred to unrestricted funds. Page 30
Notes to the Financlal Statements for the Year Ended 31 March 2026 20 Analys18 of n&t assets between funds Unrestricted Designated Rostrictsd fund$ funds funds 2026 2025 Total funds Total funds Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets 80,000 1.194,058 1132,9161 80,000 3,618,237 1251,1931 95,000 4,080,706 1397,1151 95,000 2,115,248 187,0391 308,931 131.2381 2,028,209 277.693 1,141 142 3,447,044 3,683,591 21 Related party transactions There were no related party Iransaditsn5 in the year. Page 31