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2021-03-31-accounts

LISTENING EAR (MERSEYSIDE) COMPANY LIMITED BY GUARANTEE

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2021

Company No. 05999650 Charity Registration No. 1117324

LISTENING EAR (MERSEYSIDE) ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2021

CONTENTS

Page
Trustees’ Annual Report 2
Statement of Trustees’ Responsibilities 10
Auditor’s Report 11
Statement of Financial Activities 15
Balance Sheet 17
Statement of Cash Flows 18
Notes forming part of the Financial Statements 19

LISTENING EAR (MERSEYSIDE) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2021

The trustees are pleased to present their annual report for the year ended 31st March 2021.

The financial statements comply with the Charities Act 2011, Companies Act 2006, Accounting and Reporting by Charities; Statement of Recommended Practice (Sorp 2015) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (as amended for accounting periods commencing from 1[st] January 2019).

OBJECTIVES AND ACTIVITIES

To relief of persons in England and Wales who are in conditions of poverty, sickness and distress, with the purpose of relieving such persons .

To promote, organise and facilitate co-operation and partnership working between third sector, statutory and other relevant bodies in the achievement of the above purposes within the area of benefit.

The Trustees have had regard to the Charity Commission guidance on Public Benefit requirements in setting the objectives.

ACHIEVEMENTS, SERVICE DELIVERY AND PERFORMANCE FOR THE YEAR

2020/21 was an extremely unusual year with the COVID 19 pandemic having a profound effect on Listening Ear, and the wider community. As illustrated in last year’s annual report, the team at Listening Ear, which included the Senior Management Team, Team Leaders and the Chair of the board of trustees, met on the 18[th] March 2020 to put in place an immediate plan that would enable Listening Ear to continue providing all services, including client facing and back office ‘support’, remotely. The plan that was actioned ensured that all one to one therapeutic services continued, and there was no ‘drop’ in service. Group work was initially suspended as was any internal and external training.

The response from the grant distributing sector was also very quick to react to the immediate problems third sector organisations faced, both in terms of financial security and the provision of new services, to cope with the challenges of the pandemic.

For example, Listening Ear previously used student placements to deliver a portion of the adult counselling services, and with the change in platform, from in-person to telephone and video support, this option was not appropriate. Listening Ear successfully applied for grant income to pay for qualified counsellors to deliver this vital work, and subsequently worked with 811 adults over the course of the year, which is a huge number for Listening Ear. By providing ‘remote’ based therapy, it enabled Listening Ear to service the residents of Kirby, which has traditionally been a challenge. Another interesting factor was the increased rates of recovery, which preCovid was 89%, and during the year this rose to 94%.

With the change in the service delivery model, with all staff working from home, a big issue was the requirement of equipment in the form of laptops and fully encrypted mobile phones for staff. Again, Listening Ear were successful with emergency grant applications to purchase the required equipment, which included 47 iPhones and 25 laptops.

LISTENING EAR (MERSEYSIDE) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2021

The process of providing ‘remote’ support worked well with the adult clients, and the older aged CYP, however for the younger age group, the support that we provided was with parents/ carers/ guardians, which was acceptable for a short period but not sustainable.

During the summer we had lengthy discussions with various CYP commissioners with regards to working in- person. From September we started working in schools again, with ‘pauses’ due to changes in government advice and various lockdown arrangements.

The ambition is to fully re-open 174 in Whiston, however a phased approach is most likely, as we trail new processes and procedures, and monitor the efficacy of this approach, whilst also being mindful of the health and wellbeing of staff, parents and beneficiaries.

We also developed a new service for people that had been bereaved during COVID, in the form of a Freephone helpline, which was commissioned to be delivered to the residence of South Yorkshire and personnel working for Sefton MBC working with 317 people offering 2172 appointments covering 1,515 hours of support.

In the previous annual report, we illustrated the launch of the new business plan, with the following broad thematic developments:

These thematic developments took a bit of a ‘back seat’ whilst we worked to ensure we had a stable organisation, both financially and with regards to the health of the workforce - a number of staff ‘caught’ Covid-19, and many were affected by the symptoms of ‘long Covid’. Additionally a range of the activities of the Business Plan required engaging with external agencies, and this was stymied by the overall impact of the pandemic, with many organisations focused on survival and dealing with the consequences of Covid, and with statutory organisations reallocated to deliver Covid interventions especially within Public Health.

A number of actions within these themes were achieved, including:

Despite the impact of Covid, during 2020/21 Listening Ear went through a period of growth, and again, this is all made possible by the dedicated staff, volunteers and board members that work to deliver excellent interventions, and the support required for this to happen from the team that work ‘behind the scenes’, ensuring we continue to meet our aim of delivering more services to more people in more areas.

LISTENING EAR (MERSEYSIDE) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2021

In children’s services, Listening Ear positively completed therapy with 225 children and young people presenting with issues around bereavement and other forms of loss including divorce and separation, children looked after and those affected by domestic abuse in the home, an annual decrease of 38%, which was as a direct consequence of the Covid position.

In 2020/21 Listening Ear delivered counselling and support services for:

Within the adult services team, Listening Ear offered therapy to 261 residents of Knowsley presenting with mild to moderate mental health issues.

Listening Ear’s VIDA occupational health service saw 521 beneficiaries with planned or early completions during the year

AMPARO, the suicide postvention service continued delivering services to people directly affected by suicide, and geographically increased the level of support to now include all of Lancashire, South Yorkshire, Cheshire and Merseyside and Suffolk, servicing a total population of 5.4 million people (9.6% of the population of England)

LISTENING EAR (MERSEYSIDE) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2021

During the year there were 312 (20% year on year increase) referrals into the service with 248 (74%) engaging to become beneficiaries. The contact process to all beneficiaries was within our 24 hour target, and appointments were offered within our 7 day target. AMPARO continues to consistently achieve these targets ensuring there is no waiting list. Following the coroner audit of all our beneficiaries, none went on to take their own lives, which for Listening Ear is the most important outcome.

With the success of the trial of the service in two areas of Lancashire the service has now been commissioned to cover the whole of Lancashire for the next three years.

Human Resources

During the year, Listening Ear’s permanent staff changed to 19.5 FTE from the previous level of 17.1. We still retain a number of casual workers with Listening Ear who provide additional support to assist with front line service delivery.

The annual staff survey was undertaken and this year, the focus was on the impact of COVID and working from home, with all questions requiring a narrative response

The overall responses indicated that generally the staff team:

The staff feedback generated from the survey will be crucial when we start the planning for the phased return to in – person working

The therapeutic staff restructure, that was due to be completed pre-Covid, was concluded during this financial year, basing their salaries on experience and qualifications. A similar process will be undertaken for the remaining staff teams during the next year

Corporate

As illustrated above, during the previous financial year, Listening Ear launched the new business plan 2019-2022, and due to Covid, this had a direct impact on delivery of the various elements of the business plan. It is anticipated that we will be able to increase our focus on this plan during the forthcoming year, and will potentially work to a closure date of March 2023. Illustrated below are the items under each category heading. Progress has been made on a number of the areas, however for some still to develop.

LISTENING EAR (MERSEYSIDE) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2021

In progress:

To develop:

Donations and Grants received

Our thanks are due to all those individuals and organisations that made donations and provided grants to Listening Ear within this reporting period. A comprehensive list of supporters is detailed at the back of the annual report. All contributions were gratefully received and as you can see from this report, were wisely invested in the services provided at Listening Ear, Thank you.

LISTENING EAR (MERSEYSIDE) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2021

FINANCIAL REVIEW

Total income in the year was £1,005,443 (2020: £801,565) of which £243,114 (2020: £73,322), related to funding for projects upon which restrictions are placed.

Total expenditure in the year was £881,456 (2020: £790,227), leaving a surplus for the year of £123,987 (2020: Surplus £11,338).

At 31[st ] March 2021 the charitable company’s reserves stood at £771,218 (2020: £647,231) of which £421,815 (2020: £430,049) represented restricted funds

Reserves Policy

The trustees have agreed a reserves policy of three months’ operating costs and Listening Ear are working towards this financial target through strict financial control and increased revenues from unrestricted sources to include the sales of goods and services to third party organisations.

Listening Ear has realised this ambition, which was challenging, particularly in light of the austerity measures implemented by central Government. The board approved an annual budget that was then implemented by staff within Listening Ear, and made every effort to identify appropriate cost savings.

At the end of the financial year, unrestricted funds totalled £349,403 of which £12,013 is represented by tangible assets (see note 11), leaving surplus free reserves of £337,390 (2020: surplus £217,182). The charity has set aside a redundancy provision of £61,354, and requires £157,527 for three months’ running costs, total (£218,881).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The organisation is a charitable company limited by guarantee, incorporated on 15[th ] November 2006 and registered as a charity on 20[th] December 2006 and amended by special resolution on 8[th] June 2015, and a further resolution on the 16[th] November 2020. The Governing Instruments under which the charitable company operates comprise the Memorandum and Articles of Association together with the policies made from time to time by the trustees. Clauses 1 to 8 of the memorandum of association are deemed to have been deleted and transferred as amended to the articles of association of the company by virtue of the provisions of section 8 of the Companies Act 2006 In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Listening Ear is run by an overall active team of trustees and all have voting rights. This team form the Executive Committee of Listening Ear and we are delighted to have a cross section of backgrounds, experiences and skills that inform the strategic direction of all our services.

The Executive Committee meets on a quarterly basis, with any additional meetings as required. The trustees are elected members and have a responsibility to act in the best interest of Listening Ear. They are responsible for the organisation’s governance, sustainability and accountability.

LISTENING EAR (MERSEYSIDE) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Name Listening Ear (Merseyside) Company Number 05999650 Charity Number 1117324 Registered Office St Nicholas Centre, 70 Church Road, Halewood, Liverpool, L26 6LB

Trustees Keith Bennet Jane Case (Resigned 29[th] June 2021) Karl J Connor (Appointed 20[th] January 2021) Roy Dowling (Resigned 19[th] October 2020) Patricia Ann Farrell Heidi E. Hunt Patricia J. Lunt Florence Owens (Resigned 19[th] October 2020) Roderick P. Macgregor Thomson Accountants Graham Wright B A (Hons), F C A DChA, Liverpool Charity and Voluntary Services, 151 Dale Street, Liverpool L2 2AH BWM Auditors Suite 5.1, 12 Tithebarn Street, Liverpool, L2 2DT Bankers HSBC, 99-101 Lord Street, Liverpool L2 6PG

Disclosure of information to auditor

In so far as the trustees are aware, there is no relevant audit information of which the charity’s auditors are unaware. Additionally, the trustees have taken all necessary steps that they ought to have taken as trustees in order to make themselves aware of all the relevant information and to establish that the charity’s auditors are aware of that information.

Auditor

BWM were appointed as auditor to the company and a resolution proposing that they be reappointed will be put at a general meeting.

Small company provisions

These accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

LISTENING EAR (MERSEYSIDE) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2021

Signed on behalf of the Board of Trustees

………………………………………………

Patricia Ann Farrell, Chair of the Executive Committee

Dated:[24/12/2021]

LISTENING EAR (MERSEYSIDE) STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the trustees should follow best practice and:

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LISTENING EAR (MERSEYSIDE) COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF LISTENING EAR (MERSEYSIDE)

COMPANY LIMITED BY GUARANTEE

Opinion

We have audited the financial statements of Listening Ear (Merseyside) (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information.

LISTENING EAR (MERSEYSIDE) COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF LISTENING EAR (MERSEYSIDE)

COMPANY LIMITED BY GUARANTEE

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the trustees of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

LISTENING EAR (MERSEYSIDE) COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF LISTENING EAR (MERSEYSIDE)

COMPANY LIMITED BY GUARANTEE

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,

including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities, including fraud

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 as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations

to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

LISTENING EAR (MERSEYSIDE) COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF LISTENING EAR (MERSEYSIDE)

COMPANY LIMITED BY GUARANTEE

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Taaffe FCA CTA DChA (Senior Statutory Auditor) for and on behalf of BWM

Chartered Accountants Statutory Auditor

24/12/2021

............................ Suite 5.1 12 Tithebarn Street

Liverpool

L2 2DT

LISTENING EAR (MERSEYSIDE) STATEMENT OF FINCANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE) FOR THE YEAR ENDED 31[ST] MARCH 2021

Current financial year Notes Unrestricted Restricted Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
Income and endowments
from:		 £ £ £ £
Donations and legacies 3a 12,306 - 12,306 11,095
Charitable activities 3b 740,410 243,114 983,524 780,638
Investments 3c 113 - 113 332
Other Income 3d 9,500 - 9,500 9,500
------------- ------------- ------------- -----------
Total income 762,329 243,114 1,005,443 801,565
------------- ------------- ------------- -----------
Expenditure on:
Charitable Activities 4 630,108 251,348 881,456 790,227
------------- ------------- ------------- -----------
Total expenditure 630,108 251,348 881,456 790,227
------------- ------------- ------------- -----------
Net (expenditure)/ income, net
movement in funds		 132,221 (8,234) 123,987 11,338
Total funds brought forward 12,13 217,182 430,049 647,231 635,893
------------- ------------- ------------- -----------
Total funds carried forward 11-13 349,403 421,815 771,218 647,231
======= ======= ======= ======

The notes on pages 19 to 29 form part of these accounts.

All the above amounts relate to continuing the activities of the charitable company.

LISTENING EAR (MERSEYSIDE) STATEMENT OF FINCANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE) FOR THE YEAR ENDED 31[ST] MARCH 2021

Prior financial year Notes Unrestricted Restricted Total
Funds Funds Funds
2020 2020 2020
Income and endowments
from:		 £ £ £
Donations and legacies 3a 11,095 - 11,095
Charitable activities 3b 707,316 73,322 780,638
Investments 3c 332 - 332
Other Income 3d 9,500 - 9,500
------------- ------------- -------------
Total income 728,243 73,322 801,565
------------- ------------- -------------
Expenditure on:
Charitable Activities 4 704,191 86,036 790,227
------------- ------------- -------------
Total expenditure 704,191 86,036 790,227
------------- ------------- -------------
Net (expenditure)/ income, net
movement in funds		 24,052 (12,714) 11,338
Total funds brought forward 12,13 193,130 442,763 635,893
------------- ------------- -------------
Total funds carried forward 11-13 217,182 430,049 647,231
======= ======= =======

All the above amounts relate to continuing the activities of the charitable company.

LISTENING EAR (MERSEYSIDE) BALANCE SHEET AT 31[ST ] MARCH 2021

Company Number 05999650

Notes 31st March 2021 31st March 2020
£ £ £ £
Fixed assets
Tangible fixed assets 6 423,190 433,439
Current assets
Debtors 7 155,948 79,177
Cash at bank and in hand 614,221 231,775
------------- -------------
770,169 310,952
Current liabilities
Creditors: amounts falling
due within one year		 8 (422,141) (97,160)
------------- -------------
Net current assets 348,028 213,792
------------- -------------
Total assets less current
liabilities		 771,218 647,231
======= =======
Funds:
Unrestricted funds 11,12 349,403 217,182
Restricted funds 11,13 421,815 430,049
------------- -------------
771,218 647,231
======= =======
Included within Unrestricted
Funds:
Designated Funds 12 61,353 52,459
======= =======

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies’ regime and in accordance with FRS102 SORP.

24/12/2021

Approved by the Board on ………………. and signed on their behalf by:

……………………………………

Patricia Ann Farrell Director and Chair

LISTENING EAR (MERSEYSIDE) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[ST ] MARCH 2021

Note 31st March 2021 31st March 2021 31st March 2020 31st March 2020
Cash flows from operating
activities		 £ £ £ £
Cash (used)/generated from
operations		 16 382,333 40,337
Investing activities
Purchase of tangible fixed assets (2,250)
Interest received 113 332
---------- ----------
Net cash generated from in
investing activities		 113 (1,918)
Net cash generated from financing
activities - -
---------- ----------
Net increase/(Decrease) in cash
and cash equivalents		 382,446 38,419
Cash and cash equivalents at
beginning of year		 231,775 193,356
------------ ------------
Cash and cash equivalents at end
of year		 614,221 231,775
======= =======
Represented by:
31st March 2021 31st March 2020
£ £ £ £
Cash at bank and in hand 614,221 231,775
====== =======

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

1. Limited Liability

The charity is a company limited by guarantee. Each member’s liability is limited to £1.

2. Accounting Policies

Basis of accounting

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (SORP 2015) (as amended for accounting periods commencing from 1[st] January 2019), Charities Act 2011 and the Companies Act 2006.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

Fund accounting

Unrestricted funds are the Charitable Company’s free reserves available for the trustees to apply in accordance with the charitable company’s charitable objectives.

Restricted funds are subject to specific restrictive conditions imposed by the donor. All restricted funds are accounted for as restricted income and expenditure for the purposes is charged to the fund.

Designated funds are the Charitable Company’s unrestricted funds which have been set aside by the trustees for specific purposes.

Income recognition

All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations and legacies comprise of donations and general grants which are recognised in the accounts when received, with the exception of known legacies which are accounted for when their receipt is certain.

Income from charitable activities is recognised on an accruals basis. Grants receivable are recognised on the date on which their unconditional payment is confirmed by the donor.

Income from investment relates to bank interest received and is recognised when the amount is certain.

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

Expenditure recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the Statement of Financial Activities. Support and governance costs are applied to unrestricted funds unless specifically included in the restrictions, as specified by the donor. Expenditure on charitable activities relate to the operation of the charity comprising of direct charitable expenditure to meet the objectives of the charitable company. Support and governance costs relate to the management and operation of the organisation and also compliance with constitutional and statutory requirements in producing the annual report. These are dealt with in the Statement of Financial Activities when payment has been approved by the charitable company.

Fixed Assets

Capital expenditure is stated in the balance sheet at cost less accumulated depreciation. All capital expenditure of £500 and above are treated as fixed assets. Depreciation is provided to write off the cost of each asset over its expected useful life as below:

Computer & Equipment 20% per annum straight line basis Fixtures & Fittings 20% per annum straight line basis Freehold Land & Property 2% per annum straight line basis on building and Improvements elements

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

Taxation

Income and gains are exempt from taxation as they are received and applied for charitable purposes only. The charitable company benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions.

Pension

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in independently administered funds.

Contribution payments are charged to the SOFA. Any amounts not paid are shown in accruals as a liability in the balance sheet

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when there is a clear decision or commitment to terminate the employment or provide such termination benefits.

Leases

Payments made under operating leases, including any lease incentives received, are charges to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

3. Income and endowments from

Unrestricted Restricted Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
a. Donations and Legacies £ £ £ £
Donations 12,306 - 12,306 11,095
====== ====== ====== ======
Unrestricted Restricted Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
b. Charitable activities £ £ £ £
Children In Need - 41,853 41,853 41,189
Charities Aid Foundation - 10,000 10,000 -
Counselling Services 716,010 - 716,010 707,316
First Step – Survivors to
Thrivers		 - - - 1,223
Hays Travel - - - 3,000
Independent Age - 12,000 12,000 -
Julia & Hans Rausing Trust - 34,769 34,769 -
KMBC DA Better Together - 20,000 20,000 5,000
Liverpool Carers - 5,000 5,000 -
Liverpool City Council- Covid
19		 - 6,000 6,000 -
Masonic Charitable Trust- EYC - 4,351 4,351 -
National Lottery for EYC - - - 9,910
National Lottery - 16,377 16,377 -
PH Holt - - - 10,000
SESF (Social Enterprise
Support Fund) - 22,700 22,700 -
Steve Morgan Foundation - 20,505 20,505 -
Steve Morgan 3/DCMS - 45,189 45,189 -
The Clothworkers Foundation - 4,370 4,370 -
Truemark Trust - - - 3,000
Training 24,400 - 24,400 -
-------------- -------------- -------------- --------------
740,410 243,114 983,524 780,638
======== ======== ======== ========
c. Investments £ £ £ £
Bank interest 113 - 113 332
====== ====== ====== ======
d. Other Income £ £ £ £
Telephone Mast Income 9,500 - 9,500 9,500
====== ====== ====== ======

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

4. Expenditure on Charitable Activities

Direct Direct Support &
Total		 2021 Total 2020
Charitable Governance
Expenditure Costs
£ £ £ £
Provision of counselling 717,033 164,423
881,456
790,227
facilities and service
======= =======
======
======
a.Analysed as follows:
2021 2020
As restated
Direct charitable expenditure: £ £
Staff salary costs 644,154 567,812
Therapists 14,040 24,390
Running costs 18,361 20,469
Resources 6,553 4,146
Room Hire 2,850 8,028
Office Costs 16,180 -
Events and outings - 190
Travel Expenses 923 -
Supervision costs 13,972 11,138
----------- -----------
717,033 636,173
----------- -----------
2021 2020
Support & Governance costs: £ £
Staff salary costs 60,174 58,536
Office costs 16,180 17,020
Refreshments 19 2,289
Insurance 3,371 7,285
Training 3,097 1,773
Advertising and marketing 23,313 19,893
Travel expenses - 16,385
Legal and Professional 9,074 7,791
Computer costs 35,025 11,196
Accountancy & Independent Examination 2,000 2,000
Irrecoverable VAT (1,329) -
Audit Fees 3,250 -
Depreciation 10,249 9,886
---------- ----------
164,423 154,054
---------- ----------
Total expenditure on charitable activities 881,456 790,227
====== ======

£251,348 (2020: £86,036) of the above expenditure relates to restricted funding.

Prior year have been restated to reflect the reclassification of employees by direct and support.

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

b.Staff Costs 2021 2020
£ £
Gross wages and salaries 642,039 567,905
Social security costs 46,903 43,386
Pension costs 15,385 15,056
------------ ------------
704,328 626,347
======= =======

c . Particulars of employees:

The average number of employees during the year was as follows:

2021 2020
Charitable activities 35 32
Management and administration 3 3
------- -------
38 35
==== ====

No employee received emoluments of more than £60,000 during the year.

The trustees are not remunerated for their services and are not included in the above number of employees.

No out of pocket expenses were reimbursed to trustees in the year (2020: £nil).

5. Auditor’s remuneration

Auditor’s remuneration
2021 2020
£ £
Audit Services 3,250 -
==== ====

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

Tangible Fixed Assets
Computer & Fixtures Freehold Land
Equipment & Fittings & Property Total
Cost £ £ £
 £
Balance at 1stApril 2020 90,327 1,322 465,889 557,538
Additions in the year - - - -
Disposals during the year (25,565) - - (25,565)
--------- ----------- ------------ ----------
Balance at 31st March
2021		 64,762 1,322 465,889 531,973
--------- ----------- ------------ ----------
Depreciation
Balance at 1stApril 2020 87,287 1,141 35,671 124,099
Charge for the year 1,240 91 8,918 10,249
Disposals during the year (25,565) - - (25,565)
--------- ----------- ------------ ----------
Balance at 31st March
2021		 62,962 1,232 44,589 108,783
--------- ----------- ------------ ----------
Net book value at 31st
March 2021 1,800 90 421,300 423,190
===== ====== ====== ======
Net book value at 31st
March 2020		 3,040 181 430,218 433,439
===== ====== ====== ======

7. Debtors

7. Debtors
2021 2020
£ £
Debtors and prepayments 155,948 79,177
====== ======
8. Creditors: amounts falling due within one year
2021 2020
£ £
Trade Creditors & accruals 11,959 5,413
VAT 38,177 30,452
Taxation and social security 10,391 12,713
Deferred Income (See Below) 358,337 44,295
Other Creditors 3,277 4,287
----------- -----------
422,141 97,160
====== ======

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

9. Deferred Income

2021 2020
£ £
Balance at 1stApril 2020 44,295 42,020
Amount deferred in the year 358,337 44,295
Amount released to incoming
resources		 (44,295) (42,020)
----------- -----------
Balance at 31st March 2021 358,337 44,295
====== ======

Deferred income represents income for activities in future accounting years.

10. Financial instruments

2021
2020
£ £
Carrying amount of financial
assets:
Debt instruments measured at
cost		 767,324
310,952
========
========
Carrying amount of financial
liabilities:
Measured at cost 15,235
9,701
========
========
Analysis of Net Assets between Funds
Tangible Net Current Total
Fixed Assets
Assets
Unrestricted Funds £ £
£
General Fund 12,013 276,037 288,050
Designated Fund - 61,353 61,353
------------ ------------- ------------
12,013 337,390
 349,403
------------ ------------- ------------
Restricted Funds
Department of Communities
and Local Government		 411,177 123 411,300
Hays Travel - 1,500 1,500
Liverpool City Council- Covid 6,000 6,000
19 -
National Lottery for EYC - 1,515 1,515
Truemark Trust - 1,500 1,500
------------ ------------- ------------
411,177 10,638 421,815
------------ ------------- ------------
Totals 423,190 348,028 771,218
======= ======= =======

11. Analysis of Net Assets between Funds

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

12. Unrestricted Funds

. Unrestricted Funds
Movements in the year
Resources Income Expenditure Resources
at Beginning at End
of year of Year
£ £ (£) £
General Fund 164,723 753,435 (630,108) 288,050
Designated Fund 52,459 8,894 (-) 61,353
----------- ------------ -------------- -----------
217,182 762,329 (630,108) 349,403
====== ======= ======== ======

General Fund is used to finance the charitable company’s general activities and core costs as outlined in the Trustees’ Report.

Designated Fund comprises a provision for redundancy costs

13. Restricted Funds

. Restricted Funds
Movements in the Year
Resources Income Expenditure Resources
at at End
Beginning
of year of Year
£ £ (£) £
BBC Children in Need - 41,853 (41,853) -
Charities Aid Foundation (CAF) - 10,000 (10,000) -
Department of Communities and
Local Government		 419,992 - (8,692) 411,300
Hays Travel 1,500 - - 1,500
Independent Age - 12,000 (12,000) -
Julia & Hans Rausing Trust - 34,769 (34,769) -
KMBC DA better together - 20,000 (20,000) -
Liverpool Carers - 5,000 (5,000) -
Liverpool City Council- Covid 19 - 6,000 - 6,000
Masonic Charitable Trust-EYC - 4,351 (4,351) -
National Lottery - 16,377 (16,377) -
National Lottery for EYC 5,099 - (3,584) 1,515
PH Holt 1,958 - (1,958) -
SESF (Social Enterprise support - (22,700) -
Fund) 22,700
Steve Morgan 3/DCMS - 45,189 (45,189) -
Steve Morgan Foundation - 20,505 (20,505) -
The Clothworkers Foundation - 4,370 (4,370) -
Truemark Trust 1,500 - - 1,500
----------- ----------- ------------- -----------
430,049 243,114 (251,348) 421,815
====== ======= ======= ======

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

Description of Funds

These are monies given to the charitable company to be spent at the discretion of the Charity’s Board of Trustees for specific charitable purposes:

BBC Children in Need – Supporting the ‘Butterflies’ service for children and young people affected by bereavement, divorce or separation.

Charities Aid Foundation – contribution for Coronavirus emergency fund

Department of Communities and Local Government – To purchase and refurbish a derelict building in Whiston.

Hays Travel – Towards the Emotional Youth Club (see below)

Independent Age –To deliver bereavement counselling to 50 older people.

Julia & Hans Rausing Trust – to retain our marketing and staff training budget, invest in a new amparo micro website and invest in a new server

KMBC DA Better Together – For clinical supervision for third sector leaders.

– Liverpool Carers to contribute to recruit and equip counsellors that will replace volunteers as at the time we had no onsite clinical supervision

Liverpool City Council- Covid 19 – Contribution towards bereavement and befriending support during Covid 19 pandemic.

Masonic Charitable Trust- EYC – to fund the costs of one (of four) fortnightly, Emotional Youth Clubs to be established by Listening Ear.

– National Lottery Contribution towards coronavirus community support.

– National Lottery for EYC The Emotional Youth Club, a monthly peer support group for children and young people that have been through therapy but need a little extra support.

PH Holt – Contributions towards salary costs for a staff member for 2 days per week to develop a diploma course in CYP Therapy.

– SESF (Social Enterprise Support Fund) to contribute to retain our marketing and staff training budget, invest in a new Amparo micro website and invest in a new server

– Steve Morgan3/DCMS to provide support for the salaries of our Senior Management Team (SMT) - CEO, Deputy CEO and Head of Clinical Services - until 31st March 2023.

– Steve Morgan Foundation to contribute to recruit and equip counsellors that will replace volunteers as at the time we had no onsite clinical supervision

The Clothworkers Foundation – Purchase of IT

Truemark Trust – Towards the Emotional Youth Club (see above)

LISTENING EAR (MERSEYSIDE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST ] MARCH 2021

14. Remuneration of key management personnel

The remuneration paid to the senior management team, who are considered to be the key management personnel was:

as:
2021 2020
£ £
Remuneration 149,607 142,082
====== =====

15. Operating Lease Commitments

Financial commitments under non-cancellable operating leases relating to a photocopier lease will result in the following payments falling due at 31[st] March 2021

2021 2020
£ £
Within 1 year 10,366 10,366
Between 2- 5 years 6,328 8,348
---------- ----------
16,694 18,714
====== =====
. Cash generated from operations
2021 2020
£ £
Surplus/(Deficit) for the year 123,987 11,338
Adjustments for:
Investment income (113) (332)
Depreciation 10,249 9,886
Movements in working capital:
Increase in debtors (76,771) (9,109)
Increase/(Decrease) in creditors 10,939 26,279
Increase/(Decrease) in deferred
income		 314,042 2,275
------------- -------------
Cash generated from / (used in)
operations		 382,333 40,337
======== ========

16. Cash generated from operations

17. Related Party Transactions

There were no material related party transactions during the year which require disclosure (2020: none).

18. Guarantees

As at 31[st] March 2021, 9 members had given a guarantee of £1 each in the event of the charitable company winding-up. Total: £9 (2020: 8 members £8).