**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.
- All fundraising schemes carried out on behalf of the company must be approved by the Fundraising
- Co- ordinator and CEO and carried out in accordance with the company's fundraising policy
- AFD is not aware of any failure to comply with the fundraising policy
- All company fundraising activities carried out are approved and monitored by the CEO and reported at Trustee meetings
- The company has received no complaints about fundraising for the company
- The company's fundraising policy explicitly forbids unreasonable intrusion on a person’s privacy, unreasonably persistent approaches or undue pressure in the course of, or relating to, fundraising for the company
## **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:
- seek additional funding
- work closely with the Clinical Commissioning Groups
- apply financial management and control on all activities
- continue to use social media and other digital media effectively for the benefit of service users and as a
- marketing tool
- seek to maintain capability within the staff
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:
- give a true and fair view of the state of the charitable company's affairs as at 30 June 2020 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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:
- the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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:
- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' 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:
- Short-term leasehold property 11% straight-line method over the term of the lease - Fixtures and fittings 25% reducing balance - Office equipment 25% reducing balance
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