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← Specialeffect.org.uk Limited

2024-01-31-accounts

TR Special Geet SPECIALEFFECT.ORG.UK LIMITED Annual Review, Trustees’ Report & Financial Statements for the Year Ended 31 January 2024

Company number: 06040232 Charity number: 1121004

SPECIALEFFECT.ORG.UK LIMITED Annual Review, Trustees’ Report & Financial Statements for the year ended 31 January 2024

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SPECIALEFFECT.ORG.UK LIMITED Annual Review, Trustees’ Report & Financial Statements for the year ended 31 January 2024

Contents

• Introduction ..................................................................................................... 1 Introduction ..................................................................................................... 1
• Objectives and Activities ................................................................................... 2
o Aims .......................................................................................................... 2
o Fundraising Standards Information .......................................................... 2
o Public Benefit ........................................................................................... 2
o Governing Document ................................................................................ 2
o Financial Statements ................................................................................ 2
o Trustees’ Responsibilities in Relation to the Financial Statements .......... 2
o Privacy ...................................................................................................... 3
o Climate Change …………………………………………………………………………………… 3
• Strategic Report ................................................................................................ 4
o Achievements and Performance .............................................................. 4
o Financial Summary ................................................................................... 4
o Risks .......................................................................................................... 5
o Charitable Activities ................................................................................. 5
§
Current Core Services ................................................................. 5
§
Current Supporting Projects ....................................................... 6
o Support Costs ........................................................................................... 6
o Reserves Policy ......................................................................................... 6
o Unrestricted Funds ................................................................................... 7
o Restricted Funds ....................................................................................... 7
o Internal and External Factors ................................................................... 7
o Goals & Future Plans ................................................................................ 7
• How We Operate .............................................................................................. 8
o Structure, Governance and Management ................................................. 8
§
Appointment of Trustees ........................................................... 8
§
Trustee Induction and Training ................................................... 8
§
Organisation ................................................................................ 8
§
Related Parties ............................................................................ 8
§
Risk Policy .................................................................................... 8
§
Remuneration ............................................................................. 9
o Legal and Administrative .......................................................................... 9
• Independent Auditor’s Report ........................................................................ 10
o Opinion ................................................................................................... 10
o Basis for Opinion .................................................................................... 10
o Conclusions Relating to Going Concern .................................................. 10
o Other Information .................................................................................. 10
o Opinions on Other Matters Prescribed by the Companies Act 2006 ..... 11
o Matters on which we are Required to Report by Exception .................. 11
o Responsibilities of Trustees .................................................................... 11
o Auditor’s Responsibilities for the Audit of the Accounts ........................ 11
o Use of our Report .................................................................................... 12
• Statement of Financial Activities ..................................................................... 13
• Balance Sheet ................................................................................................. 14
• Statement of Cash Flows ................................................................................ 15
• Notes to the Financial Statements .................................................................. 16

SPECIALEFFECT.ORG.UK LIMITED Annual Review, Trustees’ Report & Financial Statements for the year ended 31 January 2024

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Introduction

SpecialEffect is a charity that exists to help severely physically disabled people get more out of life by giving them access to video games and technology.

This review covers the 12 months up to 31 January 2024, a year which saw the number of assessment and support visits to homes and hospitals steadily rising, as well as the Charity being able to host an increasing number of visitors at our offices, including both service users and supporters.

almost 1,200 external enquiries across all areas of work during this period (up 8% on the previous year). To give a snapshot of acvity, over 260 accessible gaming equipment loans were made through our Gaming Loan Library, making a life-changing impact to both the service users themselves, and their families. Our StarGaze team saw some of the most rapid growth in demand since the project began, with a total of almost 250 interacons with paents and care teams (split approximately 50/50 between in-person visits and remote support calls). Elsewhere, the BubbleBusters project connued to see strong demand, with 31 AV1 robots out on loan at the end of the year. Again, the difference that having fast, free access to this life-changing technology has made to every one of these young people, as well as their families and friends, cannot be underes`mated.

Our Research and Development work has also connued to make a significant impact in the sector, including increased collaboraon with key hardware and sojware developers, and further development of the SpecialEffect Devkit (including localisaon into French, Spanish, German and Japanese). Drawing on best pracce examples from the industry and our 17 years’ experience working in this area, this freely available online training resource helps developers all over the world to learn how

to make their games more easily accessible to people with severe physical challenges.

resources, also including our EyeMine interface and GameAccess.info , help to bring our knowledge and experse to a far wider audience than would be otherwise achievable for a charity of our size. In addion, our Eye Gaze Games website has been undergoing a complete rebuild, with exisngtles converted to the Unity game engine, to make the site even more accessible to people around the globe. This work connues, with some excing new tles and further developments on addional plakorms planned for 20242025.

Communicaons Team as well, with both our GameBlast and One Special Day campaigns exceeding their fundraising targets, despite challenges in the wider economy and strong industry headwinds. In addion to the Charity’s core challenge events series, new thirdparty events such as One Big Game and Brish Racing Greats helped keep the programme fresh for supporters and corporate partners alike. Meanwhile, both community and individual fundraising connued to perform well, thanks to our incredibly loyal and generous donors from the video games community and beyond.

I would once again like to take this opportunity to thank everyone who has supported SpecialEffect in any way at all since the Charity started in 2007. Together you have helped us make a remarkably posi`ve difference to the lives of the severely disabled people we seek to help, not only here in the UK, but all around the world.

Dr Mick Donegan, Founder and CEO, SpecialEffect 19[th] June 2024

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Objectives and Activities

Aims

The main objectives of the Charity are:

Fundraising Standards Information

Members of the Charity’s Fundraising and Communications Team organise events and carry out fundraising activities to generate funds for the Charity. The Charity’s Ethical Policy includes guidance on acceptable and unacceptable sources of income. Staff follow the Fundraising Regulator and Institute of Fundraising guidelines. The Charity does not use professional fundraisers or commercial participators. There have been no complaints about fundraising activity this year.

All the Charity’s print and digital marketing activities are managed internally, to ensure that they are not unreasonably persistent or intrusive. All print materials conform to industry standards. The Charity’s email newsletters contain clear details of how to unsubscribe from future communications and care is taken to limit the number of communications being sent out. The Charity does not engage in any other form of direct marketing with its supporters.

Public Benefit

The Trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing SpecialEffect’s aims and objectives and in planning future activities. In particular, the Trustees considered how planned activities will contribute to the aims and objectives they have set. They aim to ensure the following:

The activities detailed in this report demonstrate how the Trustees believe the public benefit requirement is being effectively satisfied, especially given that no charge is made for any of the services provided by the Charity. They also illustrate the outcome of the Charity’s work with people with disabilities.

Governing Document

The Charity is a company limited by guarantee and a registered charity. It is established under its Memorandum of Association and governed under its Articles of Association.

Financial Statements

The financial statements comply with the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice (the Charities SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Trustees’ responsibilities in relation to the Financial Statements

The Trustees (who are also directors of the entity for the purposes of company law) are responsible for preparing the Trustees’ Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these Financial Statements, the Trustees are required to:

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

Privacy

Any of the information used in this report will be stored safely and securely and we will retain it for an appropriate length of time. For our full Privacy and Cookies Policy, please visit our website at https://www.specialeffect.org.uk/privacy-and-cookies.

Climate Change

The Trustees recognise the climate emergency and continue to consider the impact of the Charity on climate change, specifically with regard to the selection of banking services, energy and materials use, and recycling. This will continue to be reviewed as more opportunities become available to make positive changes to our purchases and practices.

In so far as the Trustees are aware, there is no relevant information of which the charitable company’s auditors are unaware, and each Trustee has taken all the steps that they ought to have taken as a Trustee in order to make them aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

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Strategic Report

Achievements and Performance

Against a difficult economic backdrop, the Fundraising and Communications Team still managed to achieve some strong results in the 12 months to 31 January 2024. These were some of the highlights:

From a Service Delivery and Projects perspective, key achievements included:

Financial Summary

Despite having a record fundraising year in 2022-23, we deliberately budgeted cautiously for 2023-24 (because of the continued uncertainty surrounding the economy and the resulting cost-of-living crisis) and started the year predicting an income of just over £1.5m. As 2023 progressed, the news coming out of the games industry continued to worsen, with several companies laying off large numbers of staff. In July, we also heard that SpecialEffect had been unsuccessful in our application to be a part of Jingle Jam 2024 (for the first time in ten years), which meant a further downgrading of our forecasted income was required. Against this backdrop, the Fundraising and Communications Team did really well to ultimately bring in £1.7m over the period, which was further bolstered by additional income as a result of higher interest rates on our deposit accounts. Alongside this, our overall expenditure was lower than what had been budgeted at the start of the year, due in large part to lower staffing costs (as a result of recruiting fewer new staff than originally planned), lower Product Development costs and lower IT costs (both as a result

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of work on major projects, such as the implementation of the new CRM, starting later in the year).

result, policies and procedures are carefully monitored.

In comparison with last year:

Risks

We identify the major risks to the Charity as follows:

Given these risk factors, it is vital that the Charity maintains adequate reserves, as well as carefully monitoring progress of key projects and continuing to diversify income streams.

Charitable Activities

1. Current Core Services

Loan Library – The Loan Library service provides initial assessment and support to find and customise suitable controllers for access to video games. We also provide ongoing lifetime support as people's needs and interests change. Our ongoing research and development, which contributes to developing innovative ideas and solutions to be used in this project, is carried out (a) 'in the field' through our assessment process, (b) through testing hardware, software and new games, and (c) developing customised hardware and software solutions to meet individual needs. What we learn can also contribute to our dissemination of good practice by sharing what we learn with gamers with disabilities, those who support them and game developers, too, by advising them how to make their games’ hardware and software more accessible.

StarGaze – Our StarGaze work involves the assessment and support of people who are in intensive care due to a serious injury or illness that results in a loss of the ability

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to communicate or control technology of any kind. As a result of our assessment, support and appropriate technology provision, they are able to regain the ability to ‘speak’, access the computer for leisure and even play video games again. The number and variety of StarGaze referrals has increased markedly since the pandemic, with the work of the team continuing to evolve outside of ICU settings. We are now also supporting families seeking a trial use of eye-gaze technology before deciding whether to invest in a system of their own, as well as dealing with a broader range of neurological conditions across all ages, including stroke, MND, MS, and spinal injury. Again, R&D is carried out both ‘in the field’ through the process of assessment and support of individuals, and through testing hardware, software, games and developing solutions prior to these.

2. Current Supporting Projects

Eye Gaze Games – The Eye Gaze Games website (https://www.eyegazegames.com/), is a free-to-play online resource containing a growing number of highly accessible games that have been created to be played directly on a web browser. It is designed to enable even the most severely physically disabled people to play against anyone, anywhere in the world, using the control device they prefer. The aim is primarily to fill a gap for eye gaze users by providing easy-to-set up games which are accessible to a wide range of users, where currently there are not enough options. Other accessibility devices, including head mouse and switches, are also supported. The site will also act as an example of best practice to developers and game designers on accessibility features which can benefit players using these types of inputs. The next phase of the project will look to explore options for bringing these games to mobile devices, such as iOS and Android phones and tablets.

SpecialEffect DevKit – The SpecialEffect DevKit (https://specialeffectdevkit.info), is a website sharing information through a series of videos with advice for developers who wish to find out how to make their games more accessible. It has not only been designed as a valuable addition when we provide direct support to specific developers, but also as a stand-alone resource for self-reference. Formally launched at the start of 2022, we hope to continue to share the site more widely and support developers globally in using these new resources.

GameAccess.info Website – As SpecialEffect continues to innovate and develop new ways of working to help people to access video games, we have found that what we learn can be useful to individuals or organisations working in this field. We have been disseminating this information, such as new controller solutions and game

accessibility features predominantly through video. We post these videos along with written articles on our GameAccess.info site (https://gameaccess.info) covering a range of subjects, including accessibility in video games, and software and hardware solutions.

EyeMine – in 2018 we created and released a user interface called EyeMine, to enable eye gaze users to play Minecraft , with an updated version released in 2021. We provide support for individual players and offer periodic support and updating of the software itself to enable EyeMine to continue to be successfully used. We continue to promote its use to disabled gamers in countries as far afield as Japan and the USA, including exhibiting the software at the Smithsonian FUTURES exhibition in Washington, DC, in 2022.

BubbleBusters – BubbleBusters helps children who are in isolation for extended periods while undergoing treatment for cancer, which affects their immune system. A telepresence robot is used to take the child’s place in the classroom, allowing them to hear, see and speak to their friends and teacher using a tablet device from their home or hospital bed. As part of the project, in addition to the main AV1 robot currently in use, we continue to look at offering a greater range of access to telepresence devices in terms of accessibility and functionality, including the Double 3. This device has the additional feature of being able to move on wheels and be controlled by eye movement alone, thanks to a new interface we are helping to develop.

Support Costs

Support costs, which are vital to safeguard the smooth running of the Charity, were kept to a minimum to ensure that the Charity continues to function as efficiently as possible.

Reserves Policy

SpecialEffect does not charge for its services and does not have any regular guaranteed income, so funds need to be raised on an ongoing basis from new and existing sources. Therefore, it is vital for the Charity to maintain reasonable reserves and to carefully monitor and control its rate of expansion to ensure a sustainable future.

In view of the risk factors considered above, the Trustees have continued their policy to ensure that the Charity maintains at least 18 months’ budgeted costs in unrestricted reserves. These reserves need to be maintained to cover any income shortfall, to enable expenditure to be made prior to funds being received, as well as for contingency. The Trustees are very keen to ensure there are adequate reserves to enable the continued success of the Charity. External factors such

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as the ongoing war in Ukraine, mass layoffs in the games industry, and escalating cost-of-living pressures are current examples of why we need to maintain these reserves.

Budgeted running costs for the year ending 31 January 2025 amount to £2.63 million and so our reserves policy requires us to maintain reserves of at least £3.95 million. Trustees feel it is prudent that the Charity should continue to grow, but in a controlled manner, and the budget reflects this. The budget reflects planned expansion of project development, including significant staff costs, in the knowledge that the Charity must be prepared for an unpredictable level of income.

On this basis, as of 31 January 2024, free reserves amounted to £1.74 million. This is in addition to the reserves required for 18 months’ operating costs. These free reserves will be used to underwrite the expected 2024-25 deficit arising from the continued external cost pressures.

Unrestricted Funds

Where possible, SpecialEffect has focused on procuring unrestricted donations. The fact that these donations are unrestricted helps us to achieve greater flexibility to use money where it is most needed at any given time.

The Charity has also continued to receive in-kind support including the donation of games, equipment and merchandise, as well as practical advice and expertise, for which we are very grateful.

Restricted Funds

Restricted funds are usually used for specific equipment or occasionally to fund a member of staff. This year, approximately 4% of our income was restricted to the Loan Library and Eye Gaze Games projects.

Internal and External Factors

The Trustees have made a full assessment of the internal and external factors that may affect these Financial Statements and do not deem any factors material enough to have an impact. Despite the challenges to some traditional sources of fundraising due to the pandemic and cost-of-living crisis over recent years, SpecialEffect has continued to grow and help an ever-increasing number of people who need our support. The wider economic uncertainty is of concern to the Trustees and the effect on the Charity’s income and expenditure will be closely monitored over the coming months. The Trustees have agreed that reserves should be utilised if required, given the current context.

Goals and Future Plans

Our key aims for the next 12 months are to:

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to find out more about our work and how to support the Charity.

How We Operate

Structure, Governance and Management

Related party transactions are set out in Note 12 to the accounts.

Risk policy

Appointment of Trustees

The Trustees who served during the year are listed in the Legal and Administrative section on page 11.

Trustee induction and training

All new Trustees are given, in the view of the board, sufficient training and have enough knowledge of their specific field to understand the nature of the Charity and fully comply with the Charity’s current views of its progression. They are made aware of both their legal and professional responsibilities under the Charity and Company Laws.

Organisation

The Board of Trustees must, as per the governing document, have at least two Trustees and shall not be subject to any maximum. To supplement the AGM, regular meetings are held, as well as individual committees who meet, as required. Those individual committees are encouraged to meet as regularly as need be and continue communication outside of those meetings. Dr M B Donegan is the CEO of the Charity, to whom responsibility for the day-to-day management is delegated, by the Trustees.

Related parties

The Charity, SpecialEffect, had a subsidiary trading company, SpecialEffect Trading Company Ltd, which never traded and was dissolved in October 2023.

The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Health and Safety policies and procedures have been updated and made compliant, including the continuing completion of risk assessments.

A Code of Conduct has been signed by all staff and is at the forefront of our Policy Documents. In addition, the Trustees have decided it would be beneficial for them to continue with Trustees Insurance. SpecialEffect continues to ensure it is fully compliant with the implementation of the Data Protection Act 2018. This is also expected to continue over the following years as revised procedures are adopted and compliance is maintained.

One of the most significant risks to the Charity has been identified as the lack of guaranteed income. This results in significant fundraising efforts across a wide variety of activities being carried out each year, with a priority to ensure donor care and partnerships are maintained to a very high standard. Because of our lack of guaranteed income, and whilst we are in the process of diversifying and building our income streams, the Trustees have decided to continue with the current reserves policy to a minimum reserve of 18 months’ budgeted costs.

The reserves held in the bank will help protect the increasing costs of the Charity and enable the Charity to

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carry out its work in the context of ongoing economic uncertainty and will continue to be closely monitored.

Remuneration

by the cost of living as well as the success of the Charity as a whole. Consideration is also given to market rates. Only one salary was greater than £60,000 in the year ending 31 January 2024.

The salaries of all staff are set by the Trustees and reviewed annually. Any changes in salary are influenced

Legal and Administrative

SpecialEffect.Org.Uk Ltd

Registered Company number: 06040232 (England and Wales) Registered Charity number: 1121004 Working name: SpecialEffect

Registered office and principal address

Units 9-12 Southill Business Park Cornbury Park Charlbury Oxfordshire OX7 3EW

Trustees

Dr S T Bennett R Camm P Cross Dr R Densham C V Friend C Stone L M Wiltshire Secretary (and CEO) Dr M B Donegan Auditors Wenn Townsend 30 St Giles Oxford OX1 3LE

Solicitors

Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES

GDPR

Ashish Gandhi DataGuard DataCo International UK Limited 25 Luke St London EC2A 4DS

Bankers

Handelsbanken Suite F, Windrush Court Abingdon Business Park Abingdon Oxfordshire OX14 1SY The Co-operative Bank PO Box 250 Skelmersdale Lancashire WN8 6BJ

This report has been prepared having taken advantage of the small companies’ exemption in the Companies Act 2006.

This report was approved by the board of Trustees on 19[th] June 2024 and signed on behalf of the Trustees.

C V Friend, Trustee

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Independent Auditor’s Report for the Year Ended 31 January 2024

Opinion

We have audited the accounts of SpecialEffect (the “charitable company”) for the year ended 31 January 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the accounts, including significant accounting policies. The financial reporting framework that has been applied in their preparation is in accordance with 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).

Conclusions relating to Going Concern

In auditing the accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 Charitable Company’s ability to continue as a going concern for a period of at least 12 months from when the accounts are authorised for issue.

In our opinion, the accounts:

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 other information comprises the information included in the annual report, including the Trustees’ report, other than the accounts and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the accounts 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.

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 accounts section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the accounts themselves. 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.

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Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are Required to Report by Exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report 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 the Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 2, the Trustees (who are also the directors of the charitable company for the

purposes of company law) are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the Trustees are responsible for assessing the Charitable Company’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 Accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

Irregularities, including fraud, are instances of noncompliance 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:

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:

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We assessed the susceptibility of the Charity’s accounts 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:

likely it is that we would become aware of noncompliance. 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.

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: 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 auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.

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

Benjamin Hayes BSc FCA (Senior Statutory Auditor) For and on behalf of Wenn Townsend, Statutory Auditor Oxford

19[th] June 2024

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less

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SPECIALEFFECT.ORG.UK LIMITED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JANUARY 2024

Note
Restricted
Funds
Unrestricted
Funds
£
£
Income and endowments from:
Donations and legacies
74,253
1,643,265
Interest receivable
3
-
153,957
Total income
2
74,253
1,797,222
Expenditure on:
Raising funds
-
383,684
Charitable activity: enabling people with
disabilities to access entertainment and
leisure technology
1,251,739
650,506
Total expenditure
2
1,251,739
1,034,190
Net income/(expenditure)
(1,177,486)
763,032
Transfers between funds
14
1,158,390
(1,158,390)
Net movement in funds
(19,096)
(395,358)
Reconciliation of funds
Fund balances brought forward
63,851
6,091,441
Fund balances carried forward
44,755
5,696,083		 Total
2024
£
1,717,518
153,957

1,871,475
383,684
1,902.245
2,285,929
(414,454)
-
(414,454)

6,155,292
5,740,838		 Total
2023
£
2,727,102
32,099
2,759,201
381,928
1,606,792
1,988,720
770,481
-
770,481
5,384,811
6,155,292

The notes on pages 16 to 23 form part of these financial statements.

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SPECIALEFFECT.ORG.UK LIMITED (Company no: 06040232) BALANCE SHEET AS AT 31 JANUARY 2024

Note 2024 2023
£ £ £ £
TANGIBLE FIXED ASSETS
Tangible assets 6 35,977 83,439 83,439
Investments - 1 1
CURRENT ASSETS
Debtors 7 176,109 429,092
Cash at bank and in hand 5,652,905 5,761,853
5,829,014 6,190,945
CREDITORS
Amounts falling due within one year 8 (124,153) (119,093)
NET CURRENT ASSETS 5,704,861 6,071,852
NET ASSETS 5,740,838 6,155,292
THE FUNDS OF THE CHARITY
Restricted funds 44,755 44,755 63,851 63,851
Unrestricted funds 14 5,696,083 6,091,441
TOTAL FUNDS 5,740,838 6,155,292

These financial statements were approved and authorised for issue by the Trustees on 19[th] June 2024.

C V Friend, Trustee

The notes on pages 16 to 23 form part of these financial statements.

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SPECIALEFFECT.ORG.UK LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2024

Cash flows from operating activities:
Net cash provided by operating activities (analysed below)
Cash flows from investing activities:
Purchase of property, plant and equipment
Net cash used in investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Note:
Reconciliation of net movement in funds to net cash flow from operating activities
Net movement in funds
Adjustments for:
Depreciation charges
Decrease in the value of investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities		 2024
£
(92,014)
(16,934)
(16,934)
(108,948)
5,761,853
5,652,905
2024
£
(414,454)
64,396
1
252,983
5,060
(92,014)		 2023
£
699,703
(39,225)


(39,225)

660,478
5,101,375
5,761,853
2023
£
770,481
46,586
-
(95,117)
(22,247)
699,703

Page | 16

SPECIALEFFECT.ORG.UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024

1. ACCOUNTING POLICIES

a) General information and basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

b)

Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. In particular:

c) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.

d) Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixture, fittings and equipment: Motor vehicles:

33% per annum of cost

Historically the policy was 25% per annum reducing balance basis however Trustees have determined that this is an inappropriate depreciation policy for this type of assets and have write off the balance in this year’s accounts. A new depreciation policy will be adopted as and when necessary.

Page | 17

SPECIALEFFECT.ORG.UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 (CONTINUED)

e) Presentational and functional currencies

The accounts are presented in Sterling. The functional currencies of the Charity are Sterling, US Dollars and Euros. The accounts are presented in Sterling since that is the currency in which the Charity conducts most of its activities. No amounts have been rounded.

f) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees.

Designated funds comprise unrestricted funds that the Trustees have set aside for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

g) Taxation

The Charity is exempt from corporation tax on its charitable activities.

h)

Exemption from the requirement to prepare group accounts

The Charity had one subsidiary, SpecialEffect Trading Company Ltd, a dormant company with total assets of £1. The Charity closed the company on 10 October 2023 and it was dissolved. The inclusion of this company in group accounts is not material for the purpose of giving a true and fair view. The Charity has therefore taken advantage of the exemption from the requirement to prepare group accounts.

i) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

j) Going concern

The financial statements have been prepared on a going concern basis. The trustees have considered the potential impact of events and conditions, both internal and external, and they have determined that these do not create a material uncertainty about the charity’s ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements.

k) Investments

I nvestments in subsidiaries are measured at cost less impairment.

l) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

SPECIALEFFECT.ORG.UK LIMITED

Page | 18

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 (CONTINUED)

2. INCOME AND EXPENDITURE BY PROJECTS

During the year the Charity met its charitable objectives through the following main projects shown below. The projects were funded by a variety of unrestricted and restricted funds (see also note 14).

Bubble Busters
DevKit
Eye Gaze Games
GameAccess
Loan Library
StarGaze
Research &
development
Communications &
Events
Non – Project
related
Total funds		 2023
£
-
-
63,851
-
-
-
-
6,091,441
6,155,292		 Income
Expenditure
£
£
497
(175,216)
(52,551)
44,755
(200,528)
(62,427)
29,000
(406,031)
(469,964)
(55,042)
623,609
(648,531)
1,173,614
(215,639)
1,871,475
(2,285,929)		 Transfers
Net Income
£
174,719
52,551
136,677
(19,096)
62,427
377,031
469,964
55,042
24,922
-
(1,353,333)
(395,358)
-
(414,454)		 2024
£
44,755
-
5,696,083
5,740,838

Support costs of £171,312 are included in the expenditure total above. These are in respect of administration staff payroll costs. Support costs for 2023 were £135,303. Expenditure also includes governance costs comprising the audit fee of £7,680 (2023: £6,600).

Page | 19

SPECIALEFFECT.ORG.UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 (CONTINUED)

3. INVESTMENT INCOME

4.

5.

INVESTMENT INCOME
Bank interest receivable
NET INCOME
Net income is stated after charging
Auditors’ remuneration
Auditors’ remuneration for non audit services
Depreciation
Foreign exchange differences
INVESTMENTS
Investment in subsidiary		 2024
£
153,957
2024
£
7,680
-
64,396
20

2024
£
-		 2023
£
32,099
2023
£
6,600
3,416
46,586
63
2023
£
1		 2023
£
32,099

The Charity held 100% of the issued share capital of SpecialEffect Trading Company Limited, a company incorporated in England and Wales, which is the trading company of the charitable company. The trading company was dormant and was dissolved on 10 October 2023.

6. TANGIBLE FIXED ASSETS

ANGIBLE FIXED ASSETS
Fixtures,
Fittings & Motor
Equipment Vehicles Total
£ £ £
Cost
At 31 January 2023 341,430 90,134 431,564
Additions 16,934 - 16,934
358,364 90,134 448,498
At 31 January 2024
Depreciation
At 31 January 2023 282,876 65,249 348,125
Charge for the year 39,511 24,885 64,396
On disposals - - -
322,387 90,134 412,521
At 31 January 2024
Net book value
At 31 January 2023 58,554 24,885 83,439
At 31 January 2024 35,977 - 35,977

Page | 20

SPECIALEFFECT.ORG.UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 (CONTINUED)

7. DEBTORS

Amounts falling due within one year:

8.

2024
£
Debtors and Accrued income
77,839
Prepayments
98,270
176,109
CREDITORS
Amounts falling due within one year:
2024
£
Deferred income
46,023
Other creditors
54,600
Accruals
23,530
Amounts due to subsidiary
-
124,153

Movements in deferred income
2024
£
Deferred income brought forward
56,902
Released to income in 2023/24
(55,525)
(
Received and deferred in 2024/25
44,646
Deferred income carried forward
46,023		 2023
£
298,664
130,428
429,092
2023
£
56,902
57,572
4,618
1
119,093
2023
£
104,445
103,069)
55,526
56,902

Deferred income of £46,023 (2023: £56,902) relates to income received this year in relation to various events and challenges being undertaken in 2024/25.

9. TRUSTEES’ REMUNERATION AND BENEFITS

No Trustees received remuneration or other benefits for the year ended 31 January 2024 (2023: None).

10. TRUSTEES’ EXPENSES

No Trustees (2023: none) were reimbursed for expenses during the year ended 31 January 2024. No contracts existed with Trustees in the year ended 31 January 2024 (2023: no contracts).

11. STAFF COSTS

The aggregate payroll costs of these persons were as follows:

Salaries
National insurance
Pension costs		 2024
£
1,045,412
107,724
27,105
1,180,241		 2023
£
923,796
95,147
33,795
1,052,738

Page | 21

SPECIALEFFECT.ORG.UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 (CONTINUED)

11. STAFF COSTS (CONTINUED)

One individual employee of the Charity received between £60,000 and £70,000 in remuneration during the year (2023: One, between £80,000 and £90,000).

The combined salaries of the Charity’s key management personnel - totalled £222,613 (2023: £219,456). Pension costs for these four individuals (2023: four) amounted to £14,460 (2023: £16,152), and Employer’s NI costs totalled £25,699 (2023: £26,620).

The average number of persons employed by the company, including directors, during the year was as follows:

2024 2023
£ £
Charitable activities 26 24
Administration 4 4
30 28
LATED PARTY TRANSACTIONS
2024 2023
£ £
Donations from trustees - 300
Purchases from companies under the control of a trustee or a close family - 14,526
member of a trustee

12. RELATED PARTY TRANSACTIONS

Two family members of the Chief Executive are employed by the charity as Chief Operating Officer and Projects Manager. Their remuneration is set by the trustees and is regarded as a market rate for the work undertaken.

13. OPERATING LEASE COMMITMENTS

At 31 January 2024 the Charity had total commitments under non-cancellable leases as follows:

Land & Buildings:
Within one year
Between two and five years
Lease payments recognised as an expense		 2024
£
81,000
216,000
297,000
104,497		 2023
£
81,000
243,000
324,000
79,324

QV > ¢ £ c o o o uo w oj >

Page | 23

SPECIALEFFECT.ORG.UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 (CONTINUED) SPECIALEFFECT.ORG.UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 (CONTINUED)

15. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments from:
Donations and legacies
Investments
Total income
Expenditure on:
Raising funds
Charitable activity: enabling people with
disabilities to access entertainment and
leisure technology
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Fund balances brought forward
Fund balances carried forward		 Restricted
Funds
Unrestricted
Funds
£
£
158,956
2,568,146
-
32,099
158,956
2,600,245
-
381,928
1,060,402
546,390
1,060,402
928,318
(901,446)
1,671,927
954,128
(954,128)
52,682
717,799
11,169
5,373,642
63,851
6,091,441		 Restricted
Funds
Unrestricted
Funds
£
£
158,956
2,568,146
-
32,099
158,956
2,600,245
-
381,928
1,060,402
546,390
1,060,402
928,318
(901,446)
1,671,927
954,128
(954,128)
52,682
717,799
11,169
5,373,642
63,851
6,091,441		 Total
2023
£
2,727,102
32,099
2,759,201
381,928
1,606,792
1,988,720
770,481
-
770,481
5,384,811
6,155,292

16. GENERAL INFORMATION

SpecialEffect.org.uk Limited is a company limited by guarantee incorporated and domiciled in England. Its registered office and principal place of business is Units 9-12, Southill Business Park, Cornbury Park, Charlbury, Oxfordshire OX7 3EW.

The liability of the members in the event of the company being liquidated is limited to £10 per member.

Page | 24

Thank you!

We’re indebted to the thousands of people who’ve generously donated their time, talents and money to SpecialEffect in 2023-24. Their generosity has enabled us to give thousands of people with disabilities around the world a better quality of life.

Units 9-12, Southill Business Park, Cornbury Park, Charlbury, Oxfordshire OX7 3EW Tel 01608 810055 • www.specialeffect.org.uk Registered Charity No 1121004