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2020-06-30-accounts

Registered number: 06205458 Charity number: 1122579

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2020

ACTION FOR DEAFNESS

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its Trustees and advisers 1
Trustees' report 2 - 11
Independent auditors' report on the financial statements 12 - 14
Statement of financial activities 15
Balance sheet 16 - 17
Statement of cash flows 18
Notes to the financial statements 19 - 38

(A company limited by guarantee)

ACTION FOR DEAFNESS

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2020

Trustees Mr R Hewitt, Chair
Mr M Clark, Treasurer
Mrs A Rees, Trustee
Mr E Skyrme, Trustee
Mr J Taylor, Trustee
Company registered
number
06205458
Charity registered
number
1122579
Registered office
22 Sussex Road
Haywards Heath
West Sussex
RH16 4EA
Chief executive officer
Jane Shaw
Auditor
Crowe U.K. LLP
Statutory Auditor
Riverside House
40-46 High Street
Maidstone
Kent
ME14 1JH
Bankers
CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Accountants
Brian Cook Associates
Marine House
151 Western Road
Haywards Heath
West Sussex
RH16 3LH

Page 1

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2020

The Trustees present their annual report together with the audited financial statements of the company for the 1 July 2019 to 30 June 2020. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) (second edition - October 2019) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The charitable purposes of the company are to enable persons who are deaf, deafened, hard of hearing or deafblind and to provide them with opportunities for independent living by (without limitation) the provision of an information and advice service, Resource Centres and by the provision of grants.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

Action for Deafness’ strategic aim, much in line with other organisations both public and private, is to support the concepts of empowerment, independent living and social inclusion. The company believes that by providing the services for their client base, significant success is achieved in helping those who are in some way vulnerable in our society.

Page 2

(A company limited by guarantee)

ACTION FOR DEAFNESS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2020

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

Adult rehabilitation audiology services were provided on behalf of seven NHS Clinical Commissioning Groups (CCGs) in East & West Sussex and East Surrey. AFD also provided audiology services for patients from other CCGs who exercised their patient choice, on a non-contractual basis. The surplus from this work was used by AFD to provide a wide range of services to its users.

AFD had 12 bases which were fully operational; until the COVID-19 outbreak in March 2020. The bases were in Haywards Heath, Worthing, Bognor Regis, Burgess Hill, Crawley, East Grinstead, Heathfield, Henfield, Horsham, Lewes, Shoreham-by-Sea and Steyning. Haywards Heath and Worthing were open five full days each week. All other bases were outreach bases and were open as many days each week as necessary to meet demand, which fluctuated throughout the year. From these 12 bases a wide range of services was provided for the client base, including support and advice, demonstration and sale of assistive listening devices. A hearing aid maintenance service was offered for re-tubing hearing aids and supplying batteries.

A private Audiology service was also available for those who wish to have private treatment.

The provision of Deaf Awareness Training generated a small income this year as demand was very low. Lip reading classes also generated a small income, but this did not cover the significant costs involved. Communication Tactics Training was offered to all new hearing aid users and their family and friends from the two main bases, Haywards Heath and Worthing.

There is a large, well fitted conference room at both head office and Worthing, which were offered to groups of service users.

The information service was enhanced by the production of a quarterly electronic newsletter and a website which is frequently updated: www.actionfordeafness.org.uk

AFD’s Facebook, Instagram and Twitter accounts are updated regularly and are all well used by the client base.

The COVID-19 outbreak in March 2020 had a significant impact on income and service provision. In order to protect the safety of staff and patients all bases closed on 19 March 2020 and operations moved off site. Staff continued to work remotely to provide support and services to as many patients as possible.

All outreach bases and the two Resource Centres were closed permanently, all social activities and training were suspended indefinitely and demonstration and sale of assistive listening devices was stopped.

The reduction in income meant that several staff had to be furloughed and some were made redundant. The future of the organisation had to be reassessed and AFD had to demonstrate to the NHS commissioners that the audiology service was COVID-19 proof before consent could be given to restart.

Audiology services restarted on 13 July 2020 after the year end. Patients can only be seen by appointment and are seen for one face to face appointment only. Patients are fitted with hearing aids that can be programmed remotely. All other services are handled remotely. Ongoing support is provided by email, telephone and Zoom.

If, as forecast, income from the NHS Audiology contracts starts to generate a small surplus later in the year, the company will review how it can provide financial support for other services in a COVID-19 safe manner.

Page 3

(A company limited by guarantee)

ACTION FOR DEAFNESS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2020

Objectives and activities (continued)

d. Patrons

We were very sorry to lose one of our Patrons, Dame Vera Lynn DBE when she died in June and will miss her support. Action for Deafness is fortunate to have the following 4 patrons and gratefully acknowledges their support: The Rt. Hon. Sir Nicholas Soames MP, Annette Crosbie CBE, Judy Parfitt and Julia Donaldson CBE.

e. Volunteers

Along with many other voluntary organisations, AFD valued its volunteers who were invaluable members of the team. Unfortunately, due to the COVID-19 outbreak the safety of volunteers can no longer be guaranteed so the service has been discontinued.

f. Principal funding and contracts

AFD has contracts with seven NHS CCGs; Crawley CCG, Horsham & Mid Sussex CCG, Coastal West Sussex CCG, High Weald, Lewes & Havens CCG, Hastings & Rother CCG, Eastbourne & Hailsham CCG and East Surrey CCG. From 1 April 2020 Crawley, Horsham & Mid Sussex and Coastal West Sussex merged to become West Sussex CCG, High Weald, Lewes & Havens, Eastbourne & Hailsham and Hastings & Rother CCGs merged to form East Sussex CCG and East Surrey CCG became Surrey Hearrtlands CCG.

AFD is contracted to provide audiology services for those aged 55 or over from bases in these areas. There is no guaranteed income from the contracts as patients have a choice of service provider and the fees follow the patient. AFD also has a second contract with the West Sussex CCG to provide audiology services to those under the age of 55 and for more complex cases.

The Commissioners are aware that AFD will only be able to deliver services from its two main bases from July 2020 onwards. Services from Steyning HC restarted on 8 August 2020.

To become a Qualified Provider under the new NHS initiative it was necessary to obtain national accreditation from the United Kingdom Accreditation Service (UKAS). AFD was very proud to become the first organisation in the country to be accredited against the IQIPS standards by the UK Accreditation Service in December 2012.

All sites are inspected and all staff are observed to demonstrate compliance. The company must complete the UK Accreditation Service (UKAS) online tool annually in order to confirm ongoing compliance with the 128 standards and the company is also inspected on an annual basis in order to retain accreditation. AFD is also accredited to deliver complex audiology services.

The company is required to complete and submit annually both the NHS Safeguarding Standards Assurance online tool and the Information Governance online tool for each CCG with which contracts are in place.

All staff and volunteers are trained to adhere to the NHS Information Governance policies to ensure compliance with data protection and client confidentiality initiatives. A robust mandatory training programme for staff and volunteers is in place.

Page 4

(A company limited by guarantee)

ACTION FOR DEAFNESS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2020

Achievements and performance

a. Review of activities

The COVID-19 outbreak in March 2020 had a significant impact on income and service provision. In order to protect the safety of staff and patients all bases closed on 19 March 2020 and operations moved off site. Staff continued to work remotely to provide support and services to as many patients as possible.

The loss of income resulting from this has meant that AFD has had to reduce head count and service provision. Most outreach bases and the two Resource Centres have been closed, all social activities and training have been suspended and demonstration and sale of assistive listening devices has been stopped.

Funding the charitable activity has always been the core objective for AFD and once the NHS Audiology contracts start to generate a small surplus later in the year, the company will review how it can provide financial support for other services in a COVID-19 safe manner. This, however, is becoming increasingly challenging as income levels have dropped and other sources of financial support for services have not been forthcoming.

b. Staff

The Trustees would like to thank the CEO, Jane Shaw, for all her hard work in managing the company. The Trustees also extend thanks to Jane and all staff for their commitment to the company during what has been a very difficult and challenging time.

Page 5

(A company limited by guarantee)

ACTION FOR DEAFNESS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2020

Achievements and performance (continued)

c. Fundraising activities and income generation

The Trustees are grateful to all those who provided funds in this year.

Crawley Clinical Commissioning Group Coastal West Sussex Clinical Commissioning Group Horsham & Mid Sussex Clinical Commissioning Group East Sussex CCG Surrey Heartlands CCG

Mr G Butler Mr W. Harrison Amazon Smile Paypal giving fund Mr R. Mason Ms Diana James Mrs I Snelling Mr and Mrs J Dean The Shelley Mr and Mrs M. Phillips Betty Deller Brook Barn Lodge Waitrose Community Fund Mrs Sahana Still Top Charity Wilson Memorial Trust Ferring village market Adur East Lions Club Mr B Sitford Mr H Hinze Amanda Peach Mr C Richardson Mr & Mrs K Shaw Mr D J Dalton Peter Murrell in memory of cousin Jill Oakley

There are many other contributors to whom gratitude is due, but who wish to remain anonymous. Donations are also received electronically via Just Giving, Memory Giving and Top Cash Back. Thanks are also due to those clients who made donations in the Resource Centres or in the outreach clinics and to the friends and families of those who nominate AFD as the recipient of funeral collections.

AFD can only operate within the resources available but the Trustees believe it is doing so efficiently. This remains a constant challenge.

Page 6

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2020

Achievements and performance (continued)

d. Investment policy and performance

The Trustees’ policy remains unchanged in that they are unwilling to risk the company’s capital.

e. Fundraising policy

AFD is registered with the Fundraising Regulator. All fundraising activities have been carried out according to the requirements of the Fundraising Regulator and in accordance with AFD’s Fundraising Policy. No complaints have been received.

The company does not engage professional fundraisers or commercial participators in fundraising activity.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

AFD has carried out a cost reduction initiative over the last 6 months in response to reduced referral volumes and the COVID-19 pandemic and has significantly reduced expenditure. This position will be monitored during the year and appropriate action taken if forecast income or expenditure varies from plan.

The 2020-2021 financial budget indicates a deficit for the year of around £120,000 but generates a surplus of £3,000 over the last 6 months. This indicates that AFD will be financially viable over the longer term if the estimate of patient numbers is accurate. This excludes income from Off Contract and Microsuction which could be another opportunity for income generation when it is safe to reintroduce.

The NHS had intended to re-procure contracts with all providers during 2020. However, following the COVID-19 outbreak the existing contract has been rolled over to April 2021 and AFD has been asked to extend provision of services through to at least April 2023 thus ensuring a continued income during this period.

Page 7

(A company limited by guarantee)

ACTION FOR DEAFNESS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2020

Financial review (continued)

b. Reserves policy

At the year end all funds are unrestricted and amount to £820,674. It is the policy of the Trustees to maintain a level of reserves sufficient to cover three months anticipated expenditure which is approximately £308,000. Free Reserves is currently £539,000 which significantly exceeds this requirement. The balance of £231,000 will be retained to address any shortfalls in income or to respond to market conditions as required.

The Trustees prepare and review a financial risk analysis annually which considers the impact of reduced income scenarios on reserves. This takes account of various cost saving options relating to audiology and overheads.

c. Financial review

The company has had a challenging year due to reductions in tariffs, reductions in patient referrals and the need to stop face to face appointments from 19 March 2020 because of the COVID-19 outbreak. This had a significant impact on income and service provision and in order to protect the safety of staff and patients all bases closed and operations moved off site. Staff continued to work remotely to provide support and services to as many patients as possible.

The loss of income resulting from this meant that AFD had to reduce head count and service provision. Most outreach bases and the two Resource Centres have been closed, all social activities and training have been suspended and demonstration and sale of assistive listening devices was stopped. The total one off costs associated with the closure of bases and the reduction of services amounted to £22,890 which is included within the deficit for the year.

Audiology services restarted on 13 July 2020 but due to the need to prove the new COVID-19 proof pathway and procedures, patient numbers were limited. Fees from the audiology contract with the NHS were low during July but started to build from August onwards as more patients from the referral backlog were seen and new referrals started to come through from GPs.

Structure, governance and management

a. Constitution

Action for Deafness is registered as a charitable company limited by guarantee. The company is constituted under a Memorandum of Association dated 5 April 2007 (company number 06205458) and is a registered charity number 1122579. It is exempt from the use of the word "Limited".

Page 8

(A company limited by guarantee)

ACTION FOR DEAFNESS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2020

Structure, governance and management (continued)

b. Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association. The persons who served as Trustees during the year, together with their relevant position on the Board and any office held are listed on the Reference and Administrative Details on page 1.

Trustees meetings attendance record:

Trustee Meetings Attended Mr R Hewitt 6 of 6 Mr M Clark 5 of 6 Mrs A Rees 4 of 6 Mr E Skyrme 4 of 6 Mr J Taylor 5 of 6

c. Organisational structure and decision-making policies

The day to day running of the company’s activities is delegated to the Chief Executive Officer (CEO) who reports to the Trustees. The CEO operates under a wide ranging delegated responsibility. It has always been the policy that where trustee expertise may be helpful, the CEO and individual trustees work together.

The business of AFD is managed through an Executive Committee formed of all the appointed Trustees. The committee meets formally at least four times a year and on additional occasions where decisions are required before the next formal meeting.

The Trustees have given the CEO the authority needed to conduct the day to day working business of the company and the CEO attends and reports to each meeting of the Executive Committee. Decisions regarding major expenditure are taken by the Trustees.

d. Policies adopted for the induction and training of Trustees

The company relies upon the guidance issued by the Charities Commission in relation to the induction and training of Trustees.

e. Pay policy for key management personnel

The Trustees consider the board of directors, who are the Trustees, and the senior management team, who are the senior managers and senior audiologists, comprise the key management personnel of the company in charge of direction and governance, controlling, running and operating the company on a day to day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in note 16 and note 30 to the accounts.

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the company, the Trustees benchmark the CEO’s salary against pay levels in other charitable organisations of a similar size and nature. The senior management team determine all other salaries using market forces, CPI and performance as benchmarks.

Page 9

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2020

Structure, governance and management (continued)

f. Compliance with the Charity Governance Code

Compliance with operational governance is confirmed by UKAS annually and by NHS reporting standards on a monthly basis.

g. Financial risk management

The Trustees manage risk by way of a risk register which considers the key areas of governance, operational, financial, environmental and compliance. Each area is reviewed for potential risk, potential impact of risk and steps for mitigation. The Trustees, together with the CEO, review all operations and update the register annually.

Financial risk and reserves are further managed using budgetary control and monthly management accounts reporting. Sources of both current and future income are considered during risk reviews. At the year end all reserves are unrestricted but the Trustees have previously set aside designated funds in order to ensure that assets which are critical to the operation of the company can be purchased when the need arises.

The operational team is small which allows the company to be flexible and responsive to changes in the needs of its client base. The Executive Committee has adopted a policy of individual Trustees taking an active role in the work of the company and should problems arise solutions are found quickly and effectively.

Plans for future periods

The overall aim is to continue to provide services, albeit reduced, as efficiently and effectively as possible to meet the current and future demands of beneficiaries. It is not the Trustees’ intention to over-extend the resources available, but it is the intention to meet the complementary objectives of the charitable remit and operate with business-like discipline.

The mission statement of the company is “Making things happen for deaf and hard of hearing people”. The Trustees and staff will continue to enhance and improve the services to meet the needs of service users. They will continue to:

Funding the charitable activity has always been the core objective for AFD and once the NHS Audiology contracts start to generate a small surplus later in the year, the company will review how it can provide financial support for other services in a COVID safe manner.

Members' liability

The Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the company in the event of winding up.

Page 10

(A company limited by guarantee)

ACTION FOR DEAFNESS

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ACTION FOR DEAFNESS

Opinion

We have audited the financial statements of Action for Deafness (the 'charitable company') for the year ended 30 June 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Page 12

(A company limited by guarantee)

ACTION FOR DEAFNESS

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ACTION FOR DEAFNESS (CONTINUED)

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 Auditors' report thereon. Our opinion on the financial statements does not cover the other information and 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. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes 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 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.

Page 13

(A company limited by guarantee)

ACTION FOR DEAFNESS

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ACTION FOR DEAFNESS (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Ian Weekes (Senior Statutory Auditor)

For and on behalf of Crowe U.K. LLP

Statutory Auditor Riverside House 40-46 High Street Maidstone Kent ME14 1JH 3 November 2020

Crowe U.K. LLP is eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 14

ACTION FOR DEAFNESS

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2020

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Raising funds
9
Charitable activities
11
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
106,728
1,245,848
2,353
441
62,368
1,417,738
206
1,488,454
1,488,660
(70,922)
891,597
(70,922)
820,675		 Total
funds
2020
£
106,728
1,245,848
2,353
441
62,368
1,417,738
206
1,488,454
1,488,660
(70,922)
891,597
(70,922)
820,675		 Total
funds
2019
£
26,941
1,949,045
3,412
377
59,263
2,039,038
8,722
2,209,660
2,218,382
(179,344)
1,070,941
(179,344)
891,597

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 19 to 38 form part of these financial statements.

Page 15

ACTION FOR DEAFNESS (A company limited by guarantee) REGISTERED NUMBER: 06205458

BALANCE SHEET AS AT 30 JUNE 2020

Note
Fixed assets
Tangible assets
17
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Unrestricted funds
22
Total funds		 44,477
71,403
461,957
577,837
(38,377)		 2020
£
281,214
281,214
539,460
820,674
820,674
820,674
820,674		 34,072
272,263
345,193
651,528
(134,395)		 2019
£
374,464
374,464
517,133
891,597
891,597
891,597
891,597

Page 16

ACTION FOR DEAFNESS

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 19 to 38 form part of these financial statements		 2020
£
117,000
-
(236)
(236)
116,764
345,193
461,957		 2019
£
134,960
13,000
(28,080)
(15,080)
119,880
225,313
345,193

Page 18

ACTION FOR DEAFNESS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

1. General information

The registered office of the company is 22 Sussex Road, Haywards Heath, West Sussex RH16 4EA. The company number is 06205458 and the registered charity number is 1122579. The principal object of the company is to enable persons who are deaf, deafened, hard of hearing or deafblind and to provide them with opportunities for independent living by (without limitation) the provision of an information and advice service, Resource Centres and by the provision of grants.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) (second edition - October 2019) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Action for Deafness meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

AFD has carried out a cost reduction initiative over the last 6 months in response to reduced referral volumes and the COVID-19 pandemic and has significantly reduced expenditure. This position will be monitored during the year and appropriate action taken if forecast income or expenditure varies from plan.

The 2020-2021 financial budget indicates a deficit for the year of around £120,000 but generates a surplus of £3,000 over the last 6 months. This indicates that AFD will be financially viable over the longer term if the estimate of patient numbers is accurate. This excludes income from Off Contract and Microsuction which could be another opportunity for income generation when it is safe to reintroduce.

The NHS had intended to re-procure contracts with all providers during 2020. However, following the COVID-19 outbreak the existing contract has been rolled over to April 2021 and AFD has been asked to extend provision of services through to at least April 2023 thus ensuring a continued income during this period.

Page 19

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

2. Accounting policies (continued)

2.3 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.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the company, can be reliably measured.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 20

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of resources.

Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT. The irrecoverable element of VAT is included as a separate cost within the accounts.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Page 21

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

2. Accounting policies (continued)

2.7 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.11 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Finance leases and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 22

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

2. Accounting policies (continued)

2.13 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

2.14 Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

2.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

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

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes judgements, estimates and assumptions that affect the application of policies and the carrying values of assets and liabilities, income and expenses. The resulting accounting estimates calculated using these judgements will, by definition, seldom equal the related actual results but are based on the experience of the Directors (or Trustees) and the expectations of future events. The estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is reviewed. Such basis includes all support costs being allocated to charitable activities.

Page 23

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

4. Income from donations and legacies

Unrestricted
funds
2020
£
Grants
Mid Sussex District Council
50,000
HMRC JRS Grant
39,932
Subtotal
89,932
Donations
14,404
Legacies
1,884
Membership fees
508
Subtotal
16,796
Total 2020
106,728
5.
Income from charitable activities
Unrestricted
funds
2020
£
Audiology fees received
1,184,276
Resource centre sales
19,659
Deaf services
8,138
Microsuction fees
33,775
Total 2020
1,245,848		 Total
funds
2020
£
50,000
39,932
89,932
14,404
1,884
508
16,796
106,728
Total
funds
2020
£
1,184,276
19,659
8,138
33,775
1,245,848		 Total
funds
2019
£
-
-
-
25,629
200
1,112
26,941
26,941
Total
funds
2019
£
1,862,415
40,552
19,971
26,107
1,949,045

Page 24

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

6. Income from other trading activities

Income from fundraising events

Fundraising
Investment income

Interest received
Other incoming resources

Other incoming resources
Lost hearing aids
Total 2020		 Unrestricted
funds
2020
£
2,353
Unrestricted
funds
2020
£
441
Unrestricted
funds
2020
£
9,422
52,946
62,368		 Total
funds
2020
£
2,353
Total
funds
2020
£
441
Total
funds
2020
£
9,422
52,946
62,368		 Total
funds
2019
£
3,412
Total
funds
2019
£
377
Total
funds
2019
£
13,721
45,542
59,263

7. Investment income

8. Other incoming resources

Page 25

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

9. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2020
£
Fund raising
206
Magazine costs - News and Views
-
Total 2020
206
10.
Grant costs
Grants to
Institutions
2020
£
Grants paid
-
11.
Analysis of expenditure on charitable activities
Summary by fund type
Unrestricted
funds
2020
£
Deaf services
1,488,454		 Total
funds
2020
£
206
-
206
Total
funds
2020
£
-
Total
funds
2020
£
1,488,454		 Total
funds
2019
£
295
8,427
8,722
Total
funds
2019
£
8,471
Total
funds
2019
£
2,209,660

Page 26

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

12. Analysis of expenditure by activities

Activities Grant
undertaken funding of Support Total Total
directly activities costs funds funds
2020 2020 2020 2020 2019
£ £ £ £ £
Deaf services 1,257,103 - 231,351 1,488,454 2,209,659

Analysis of direct costs

Unrestricted
funds
2020
£
Staff costs
554,842
Audiology consumables
439,571
Purchases for Resource Centre
29,754
Miscellaneous purchases
2,769
Stock adjustment
(10,405)
Rent, rates and utilities
168,547
Travel and entertaining
11,809
Printing and stationery
4,498
Postage and carriage
11,252
Telephone
17,646
Committee expenses
616
Motor expenses
-
Worthing expansion
-
Staff training costs
1,652
Non recoverable input VAT
17,058
Agency staff costs
7,494
Total 2020
1,257,103		 Total
funds
2020
£
554,842
439,571
29,754
2,769
(10,405)
168,547
11,809
4,498
11,252
17,646
616
-
-
1,652
17,058
7,494
1,257,103		 Total
funds
2019
£
817,372
611,370
56,444
1,907
27,912
186,672
22,073
12,998
9,850
16,762
770
3,585
1,454
35,800
33,382
88,473
1,926,824

Page 27

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

12. Analysis of expenditure by activities (continued)

Analysis of support costs

Unrestricted
funds
2020
£
Depreciation
75,618
Advertising
2,843
Computer costs
39,083
Sundry expenses
24,851
Repairs and maintenance
28,125
Subscriptions
294
Insurance
8,845
Interest payable
488
Equipment hire
3,323
Accountancy
13,113
Auditors' remuneration
5,400
Legal and professional fees
6,064
Loss on disposal of fixed assets
17,869
Trustees expenses reimbursed
263
Provision for specific bad debt
415
Bank charges
4,757
Total 2020
231,351
13.
Auditors' remuneration
Auditors' remuneration		 Total
funds
2020
£
75,618
2,843
39,083
24,851
28,125
294
8,845
488
3,323
13,113
5,400
6,064
17,869
263
415
4,757
231,351
2020
£
5,400		 Total
funds
2019
£
102,172
6,510
41,660
38,635
38,179
541
12,180
366
1,012
13,113
5,300
6,182
2,891
278
1,035
4,310
274,364
2019
£
5,300

Page 28

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

14. Staff costs

Staff costs were as follows:

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Other employee benefits		 2020
£
482,091
46,197
21,533
5,021
554,842		 2019
£
714,411
67,697
27,654
7,610
817,372

Staff termination payments made during the current year and included in the Wages and salaries figure above amounted to £6,110 (2019 - £49,218). The payments related to statutory redundancy and payments in lieu of notice. The payments in lieu of notice have been calculated from the employment contracts.

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

Management
Clinical
Services
Administrative		 2020
No.
3
8
2
2
15		 2019
No.
4
11
3
4
22

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2020 2019
No. No.
In the band £60,001 - £70,000
1 1

Page 29

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

15. Key management personnel

The cost of key management personnel:

Salaries
National insurance
Pension costs
Total		 2020
£
187,598
19,909
10,195
217,702		 2019
£
241,347
26,389
12,263
279,999

The key management personnel include the Trustees, senior managers and senior audiologists. The Trustees received no remuneration during the year (2019 - £nil).

16. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL) .

During the year ended 30 June 2020, expenses totalling £ 263 were reimbursed or paid directly to 1 Trustee (2019 - £278 to 2 Trustees) . The expenses related to travel costs for meetings.

Page 30

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

17. Tangible fixed assets

Cost
At 1 July 2019
Additions
Disposals
At 30 June 2020
Depreciation
At 1 July 2019
Charge for the year
On disposals
At 30 June 2020
Net book value
At 30 June 2020
At 30 June 2019		 Short-term
leasehold
property
£
122,309
-
-
122,309
13,590
13,590
-
27,180
95,129
108,719		 Fixtures and
fittings
£
629,493
236
(46,916)
582,813
406,515
51,336
(29,047)
428,804
154,009
222,978		 Office
equipment
£
125,375
-
-
125,375
82,607
10,692
-
93,299
32,076
42,767		 Total
£
877,177
236
(46,916)
830,497
502,712
75,618
(29,047)
549,283
281,214
374,464

The net book value of assets held under finance leases or hire purchase contracts, included above, is as follows: Office equipment £2,857 (2019 - £3,809).

18. Stocks

2020 2019
£ £
Hearing aids, hearing aid accessories and assistive listening
devices 44,477 34,072

The amount of stocks recognised as an expense in the Statement of financial activities was £461,605 (2019 - £697,633).

Page 31

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

19. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2020
£
31,678
36
39,689
71,403		 2019
£
209,135
11,600
51,528
272,263

20. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Obligations under finance lease and hire purchase contracts
Pension creditor
Accruals and deferred income		 2020
£
17,761
5,272
2,974
3,195
9,175
38,377		 2019
£
80,502
25,338
3,966
3,760
20,829
134,395

21. Financial instruments

Financial assets
Financial assets measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost		 2020
£
493,635
2020
£
(29,910)		 2019
£
565,928
2019
£
(105,297)

Financial assets measured at amortised cost comprise cash at bank and in hand, trade debtors and other debtors.

Financial liabilities measured at amortised cost comprise trade creditors, obligations under finance leases and accruals.

Page 32

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

22. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Fixed assets reserve
General funds
General fund
Total Unrestricted funds		 Balance at 1
July 2019
£
374,465
517,132
891,597		 Income
£
-
1,417,737
1,417,737		 Expenditure
£
-
(1,488,660)
(1,488,660)		 Transfers
in/out
£
(93,251)
93,251
-		 Balance at
30 June
2020
£
281,214
539,460
820,674

Aim and use of designated funds:

The trustees set up a designated fixed asset reserve in a prior year to cover the assets which the trustees consider essential to the operations of the charity.

Page 33

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

22. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed assets reserve
Grant making fund
General funds
General fund
Total Unrestricted funds		 Balance at
1 July 2018
£
464,448
4,466
468,914
602,027
1,070,941		 Income
£
-
-
-
2,039,038
2,039,038		 Expenditure
£
-
(4,466)
(4,466)
(2,213,916)
(2,218,382)		 Transfers
in/out
£
(89,983)
-
(89,983)
89,983
-		 Balance at
30 June
2019
£
374,465
-
374,465
517,132
891,597

Page 34

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

23. Summary of funds Summary of funds - current year

Designated funds
General funds		 Balance at 1
July 2019
£
374,465
517,132
891,597
Balance at
1 July 2018
£
468,914
602,027
1,070,941		 Income
£
-
1,417,737
1,417,737
Income
£
-
2,039,038
2,039,038		 Expenditure
£
-
(1,488,660)
(1,488,660)
Expenditure
£
(4,466)
(2,213,916)
(2,218,382)		 Transfers
in/out
£
(93,251)
93,251
-
Transfers
in/out
£
(89,983)
89,983
-		 Balance at
30 June
2020
£
281,214
539,460
820,674
Balance at
30 June
2019
£
374,465
517,132
Summary of funds - prior year
Designated funds
General funds
891,597

Page 35

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

24. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2020
£
Tangible fixed assets
281,214
Current assets
577,837
Creditors due within one year
(38,377)
Total
820,674
Analysis of net assets between funds - prior period
Unrestricted
funds
2019
£
Tangible fixed assets
374,464
Current assets
651,528
Creditors due within one year
(134,395)
Total
891,597		 Total
funds
2020
£
281,214
577,837
(38,377)
820,674
Total
funds
2019
£
374,464
651,528
(134,395)
891,597

Page 36

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss on the sale of fixed assets
(Increase)/decrease in stocks
Decrease in debtors
(Decrease)/increase in creditors
Net cash provided by operating activities
26.
Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents
27.
Analysis of changes in net debt		 2020
£
(70,922)
75,618
17,869
(10,405)
200,860
(96,020)
117,000
2020
£
58
461,899
461,957		 2019
£
(179,344)
102,172
2,891
27,912
131,113
50,216
134,960
2019
£
49
345,144
345,193
Cash at bank and in hand
Finance leases		 At 1 July
2019
£
345,193
(3,966)
341,227		 Cash flows
£
116,764
1,695
118,459		 Other non-
cash
changes
£
-
(703)
(703)		 At 30 June
2020
£
461,957
(2,974)
458,983

Page 37

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

28. Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £21,533 (2019 - £27,654). Contributions totalling £3,195 (2019 - £3,760) were payable to the fund at the balance sheet date and are included in creditors.

29. Operating lease commitments

At 30 June 2020 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Total		 2020
£
99,000
136,000
235,000		 2019
£
99,000
235,000
334,000

The following lease payments have been recognised as an expense in the Statement of financial activities:

2020 2019
£ £
Operating lease rentals 99,000 83,532

30. Related party transactions

Communication support services (sign language) have been provided to the company by D Hewitt who is related to Mr R Hewitt (chairman and Trustee). The total costs incurred during the year amounted to £439 (2019 - £700). All other transactions relating to the trustees are referred to in note 16.

Page 38