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2022-06-30-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 2022

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 - 9
Independent auditor's report on the financial statements 10 - 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 2022

Trustees Mr R Hewitt, Chair
Mr M Clark, Treasurer
Mrs A Rees, Trustee (resigned 9 May 2022)
Mr E Skyrme, Trustee
Mr J Taylor, Trustee (resigned 19 May 2022)
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
GMBC LLP
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 2022

The Trustees present their annual report together with the audited financial statements of the company for the period 1 July 2021 to 30 June 2022. 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) 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.

c. Activities undertaken to achieve objectives

Adult rehabilitation audiology services were provided on behalf of three NHS Clinical Commissioning Groups (CCGs) – East Sussex, West Sussex and Surrey Heartlands. AFD also provided audiology services for patients on a non contractual basis from other CCGs who exercised their patient choice. Any surplus from this work will be used by AFD to provide services to its users.

d. Patrons

Action for Deafness is fortunate to have the following 4 patrons and gratefully acknowledges their support: The Rt. Hon. Sir Nicholas Soames, Annette Crosbie CBE, Judy Parfitt and Julia Donaldson CBE.

Page 2

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

Objectives and activities (continued)

e. Principal funding and contracts

AFD had contracts with three NHS CCGs throughout the year: West Sussex CCG, East Sussex CCG and Surrey Heartlands CCG. The CCGs were statutorily abolished on 1 July 2022 and replaced by Integrated Care Boards (ICBs). AFD’s contracts will now be with NHS Sussex ICB (formerly Crawley, Horsham & Mid Sussex, Coastal West Sussex and East Sussex CCGs) and Surrey Heartlands ICB (formerly Surrey Heartlands 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 Horsham & Mid Sussex CCG to provide audiology services to those under the age of 55 and for more complex cases.

Achievements and performance

a. Review of activities

Funding the charitable activity has always been the core objective for AFD and now that the NHS Audiology contracts have started to generate a surplus the Trustees will review how the company can provide financial support for other services in a COVID safe manner.

To become a Qualified Provider of services to the NHS it was necessary to obtain 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. 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. Accreditation against IQIPS Version 1 was reconfirmed on June 2022 (for the 11th year in succession) and accreditation against IQIPS Version 2 was also confirmed.

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

All staff 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 is in place.

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.

Page 3

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

Achievements and performance (continued)

c. Fundraising activities and income generation

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

East Sussex NHS CCG West Sussex CCG Surrey Heartlands NHS CCG Mid Sussex DC Adur and Worthing DC Sussex Masonic Giving Waitrose Haywards Heath Mrs S Woodard Mr C Arthorne Mrs B Moore Mr A West Mrs E Gautrey Top Cash Back Adur East Lions Club Miss J A Crutchfield The Late Hilda Cox Mrs S Woodard Mrs E Rothera Mrs P Chittenden Mr J Hinze Mr J Bromley Mr & Mrs J Dean Mr K Shaw Mr J Saunders & Mr M Evans Mrs J Booker Mrs I Birt Mrs J Pettet Mrs M Hayden Mrs E Clarke Mr A Roberts Mr B J Radford Mr & Mrs C Carter Mrs L Rutherford Mr A Gulston Mrs J Skelton Mr S Manvell

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 on site or via BACS transfer 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 4

ACTION FOR DEAFNESS (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

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. Reserves policy

At the year end all funds are unrestricted and amount to £1,395,363. It is the policy of the Trustees to maintain a level of reserves sufficient to cover three months anticipated expenditure which is approximately £320,000. Free Reserves is currently £1,217,000 which significantly exceeds this requirement. The balance of £897,000 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.

b. Financial review

The company has had a successful year with referral volumes and income returning to pre-pandemic levels and with close control over costs this has resulted in a significant surplus at the year end. Due to the increase in workload AFD has recruited additional administrative support staff and as the increase in referral volumes is expected to continue during next year AFD also plans to increase operational management support and clinical headcount.

NHS Sussex has approached AFD to provide audiology services to additional patients across Sussex and this is expected to increase patient referrals and income during 2022-2023. Although this will require additional expenditure on premises, booths and resources, the business plan for next year indicates another surplus at year end.

Page 5

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

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".

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.

The Trustees' meetings during the year were all held virtually on Zoom. The meetings attendance record is as follows:

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

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.

Page 6

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

Structure, governance and management (continued)

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.

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.

f. Compliance with the Charity Governance Code

The Trustees maintain an on-going review of governance with reference to guidance from the Charity Commission, the Fundraising Regulator and the Charity Commission Governance Code.

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

The Trustees have reviewed the organisation’s governance for compliance with the Charity Commission Governance Code and have a clear knowledge of minor areas of risk for improvement. This review found no areas with material deficiencies.

g. SECR reporting

Compliance with Streamlined Energy and Carbon Reporting (SECR) is not a legal requirement for AFD. We do have an Environmental Policy statement in which we recognise that our operations impact on the environment at local level. As such we are committed to safeguarding the environment and striving to prevent pollution.

h. 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.

Page 7

ACTION FOR DEAFNESS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022

Plans for future periods

The overall aim is to continue to provide services 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 now that the NHS Audiology contracts have started to generate a surplus again, the Trustees will start to identify how the company 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.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

Page 8

ACTION FOR DEAFNESS {A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022 Disclosure of infomlation lo audrtors Each of the persons who are Trustees at Ihe time when thrs Trustees, report is approved has confirmed that" so far as that Trustee is aware. there is no relevant audit inforrnation of which the charitys audit()rs are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit infomation and to establish that the chariws auditors are aware of that information. Auditors The auditors. Crowe U.K. LLP, have indicated their wiifingness to continue in office. The designated Trustees will propose a motion reapwinting the auditors at the next AGM. Approved by order of the mern￿rs of the board ofTrustees on 7 Febrt￿ry 2023 and signed on their behalf by.. Mr R Hewitt {Chair of Trusteeg) Clark (Treasurer) Page 9

ACTION FOR DEAFNESS

(A company limited by guarantee)

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 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 10

(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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report included within the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 11

(A company limited by guarantee)

ACTION FOR DEAFNESS

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

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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and under the Companies Act 2006 and report in accordance with the Acts 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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 auditor's report.

Page 12

(A company limited by guarantee)

ACTION FOR DEAFNESS

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were Charity Commission regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Page 13

ACTION FOR DEAFNESS

(A company limited by guarantee)

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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 7 February 2023

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 2022

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
10
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
43,699
2,037,403
-
546
54,042
2,135,690
266
1,750,021
1,750,287
385,403
1,009,960
385,403
1,395,363		 Total
funds
2022
£
43,699
2,037,403
-
546
54,042
2,135,690
266
1,750,021
1,750,287
385,403
1,009,960
385,403
1,395,363		 Total
funds
2021
£
131,762
1,368,504
7
54
45,619
1,545,946
300
1,356,361
1,356,661
189,285
820,675
189,285
1,009,960

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 2022

Note
Fixed assets
Tangible assets
16
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Unrestricted funds
21
Total funds		 49,050
362,964
939,397
1,351,411
(134,137)		 2022
£
178,089
178,089
1,217,274
1,395,363
1,395,363
1,395,363
1,395,363		 41,064
232,844
560,765
834,673
(45,816)		 2021
£
221,103
221,103
788,857
1,009,960
1,009,960
1,009,960
1,009,960

Page 16

ACTION FOR DEAFNESS IA company limited by guarantee) REGISTERED NUMBER: 06205458 BALANCE SHEET (CONTINUED) AS AT 30 JUNE 2022 The entity was entit￿d to exemption from audrt under section 471 of the Compan￿$ Act 2006. The members have nol required the entity to obtain an audit for the year in question in x¢Ordan￿ wth section 476 of the Companies Act 2006. However, an audit ts required in accordance wilh $6rtion 144 of the charib.es Act 2011. The Trustees acknowledge their reswnsibilities for complying with the requirements of the Act with respect to accountsng records and preparation offinancI￿ statements. The financial statements have been prepared in a(xordance wilh the wowsiorLs applicable to ￿titieS subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on 07 February 2023 and signed on Iheir behalf by. Mr R Hewitt (Chair of Trustees} reasurer) The notes on pages 19 to 38 forfft part of Ihe5e financial statements. Page 17

ACTION FOR DEAFNESS

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
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		 2022
£
385,921
(7,289)
(7,289)
378,632
560,765
939,397		 2021
£
98,808
-
-
98,808
461,957
560,765

Page 18

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1. General information

Action for Deafness is a private company, limited by guarantee, domiciled in England and Wales, registration number 06205458. The registered charity number is 1122579. The registered office of the company is 22 Sussex Road, Haywards Heath, West Sussex RH16 4EA. 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) - 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

The Trustees draw attention to the fact a material uncertainty exists that may cast significant doubt on the charitable company’s ability to continue as a going concern.

There is no confirmation or approval in relation to the renewal of the NHS contracts which make up the majority of the charitable company’s funding. The current contracts expire in March 2023. The going concern assessment is considered for a period of at least twelve months from when the financial statements are authorised for issue. Without the comfort of these contracts being in place at the date of approval of these financial statements this represents a material uncertainty on the ability to continue as a going concern.

Page 19

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

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.

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 2022

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.

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

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.

Page 21

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

2. Accounting policies (continued)

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 Operating leases

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

2.13 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.

Page 22

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

2. Accounting policies (continued)

2.14 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

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

4. Income from donations and legacies

Unrestricted
funds
2022
£
Grants
NHS Covid 19 relief grant
31,932
Mid Sussex District Council Covid 19 grant
-
Worthing Borough Council additional restrictions grant
-
HMRC JRS grant
-
Subtotal detailed disclosure
31,932
Donations
11,726
Similar incoming resources
41
Subtotal
11,767
Total 2022
43,699
5.
Income from charitable activities
Unrestricted
funds
2022
£
Audiology fees received
2,036,723
Microsuction fees
680
Total 2022
2,037,403		 Total
funds
2022
£
31,932
-
-
-
31,932
11,726
41
11,767
43,699
Total
funds
2022
£
2,036,723
680
2,037,403		 Total
funds
2021
£
95,637
6,000
15,000
5,837
122,474
9,124
164
9,288
131,762
Total
funds
2021
£
1,368,184
320
1,368,504

Page 24

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

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 2022		 Unrestricted
funds
2022
£
-
Unrestricted
funds
2022
£
546
Unrestricted
funds
2022
£
-
54,042
54,042		 Total
funds
2022
£
-
Total
funds
2022
£
546
Total
funds
2022
£
-
54,042
54,042		 Total
funds
2021
£
7
Total
funds
2021
£
54
Total
funds
2021
£
(623)
46,242
45,619

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 2022

9. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Fund raising 266 266 300

10. Analysis of expenditure on charitable activities Summary by fund type

Unrestricted
funds
2022
£
Audiology services
1,750,021
Analysis of expenditure by activities
Activities
undertaken
directly
2022
Support
costs
2022
£
£
Audiology services
1,544,936
205,085		 Total
funds
2022
£
1,750,021
Total
funds
2022
£
1,750,021		 Total
funds
2021
£
1,356,361
Total
funds
2021
£
1,356,361

11. Analysis of expenditure by activities

Page 26

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

11. Analysis of expenditure by activities (continued)

Analysis of direct costs

Unrestricted
funds
2022
£
Staff costs
493,138
Audiology consumables
799,426
PPE and scrubs costs
7,186
Stock adjustment
(7,986)
Rent, rates and utilities
120,026
Travel and entertaining
2,071
Printing and stationery
4,590
Postage and carriage
17,660
Telephone
12,283
Committee expenses
109
Staff training costs
3,016
Staff recruitment costs
17,950
Non recoverable input VAT
17,817
Agency staff costs
54,093
Equipment storage
3,557
Total 2022
1,544,936		 Total
funds
2022
£
493,138
799,426
7,186
(7,986)
120,026
2,071
4,590
17,660
12,283
109
3,016
17,950
17,817
54,093
3,557
1,544,936		 Total
funds
2021
£
421,517
559,259
7,462
3,413
110,514
199
3,620
19,505
19,234
165
870
-
17,649
4,394
953
1,168,754

Page 27

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

11. Analysis of expenditure by activities (continued)

Analysis of support costs

Unrestricted
funds
2022
£
Depreciation
50,303
Advertising
5,661
Computer costs
48,935
Sundry expenses
25,789
Repairs and maintenance
28,138
Subscriptions
1,142
Insurance
8,182
Interest payable
-
Equipment hire
-
Accountancy
13,763
Auditors' remuneration
6,490
Legal and professional fees
9,747
Provision for specific bad debt
776
Bank charges
6,159
Total 2022
205,085
12.
Auditors' remuneration		 Total
funds
2022
£
50,303
5,661
48,935
25,789
28,138
1,142
8,182
-
-
13,763
6,490
9,747
776
6,159
205,085		 Total
funds
2021
£
60,111
1,436
37,125
22,452
19,910
132
9,207
488
1,192
14,088
5,900
11,569
(100)
4,097
187,607
2022 2021
£ £
Auditors' remuneration 6,490 5,900

Page 28

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

13. Staff costs

Staff costs were as follows:

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Other employee benefits		 2022
£
424,392
42,348
19,028
7,370
493,138		 2021
£
364,151
33,780
16,911
6,675
421,517

There were no statutory redundancy payments included in the Wages and salaries figure above during the current year (2021 - £9,180).

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

Management
Clinical
Administrative		 2022
No.
2
6
3
11		 2021
No.
2
7
2
11

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

2022 2021
No. No.
In the band £60,001 - £70,000 - 1
In the band £70,001 - £80,000 1 -

14. Key management personnel

The cost of key management personnel:

The key management personnel include the Trustees, a senior manager and a clinical lead. The Trustees received no remuneration during the year (2021 - £nil).

Page 29

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

15. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 30 June 2022, expenses totalling £ 69 were reimbursed or paid directly to 1 Trustees (2021 - £NIL ).

Page 30

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

16. Tangible fixed assets

Short-term
leasehold
property
£
Cost
At 1 July 2021
122,309
Additions
-
At 30 June 2022
122,309
Depreciation
At 1 July 2021
40,770
Charge for the year
13,590
At 30 June 2022
54,360
Net book value
At 30 June 2022
67,949
At 30 June 2021
81,539
Stocks
Hearing aids, hearing aid accessories and assistive listening
devices		 Fixtures and
fittings
£
582,813
1,596
584,409
467,306
29,276
496,582
87,827
115,507		 Office
equipment
£
125,375
5,693
131,068
101,318
7,437
108,755
22,313
24,057
2022
£
49,050		 Total
£
830,497
7,289
837,786
609,394
50,303
659,697
178,089
221,103
2021
£
41,064

17. Stocks

The amount of stocks recognised as an expense in the Statement of financial activities was £798,626 (2021 - £570,134).

Page 31

(A company limited by guarantee)

ACTION FOR DEAFNESS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

18. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2022
£
305,193
6,349
51,422
362,964		 2021
£
183,271
6,382
43,191
232,844

19. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Financial instruments
Financial assets
Financial assets measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost		 2022
£
95,062
14,487
3,855
20,733
134,137
2022
£
1,294,240
2022
£
(115,895)		 2021
£
22,799
9,705
2,749
10,563
45,816
2021
£
744,600
2021
£
(33,362)

20. Financial instruments

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

Financial liabilities measured at amortised cost comprise trade creditors and accruals.

Page 32

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

21. 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 2021
£
221,103
788,857
1,009,960		 Income
£
-
2,135,690
2,135,690		 Expenditure
£
-
(1,750,287)
(1,750,287)		 Transfers
in/out
£
(43,014)
43,014
-		 Balance at
30 June
2022
£
178,089
1,217,274
1,395,363

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 2022

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed assets reserve
General funds
General fund
Total Unrestricted funds		 Balance at
1 July 2020
£
281,214
539,460
820,674		 Income
£
-
1,545,947
1,545,947		 Expenditure
£
-
(1,356,661)
(1,356,661)		 Transfers
in/out
£
(60,111)
60,111
-		 Balance at
30 June
2021
£
221,103
788,857
1,009,960

Page 34

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

22. Summary of funds

Summary of funds - current year

Designated funds
General funds		 Balance at 1
July 2021
£
221,103
788,857
1,009,960
Balance at
1 July 2020
£
281,214
539,460
820,674		 Income
£
-
2,135,690
2,135,690
Income
£
-
1,545,947
1,545,947		 Expenditure
£
-
(1,750,287)
(1,750,287)
Expenditure
£
-
(1,356,661)
(1,356,661)		 Transfers
in/out
£
(43,014)
43,014
-
Transfers
in/out
£
(60,111)
60,111
-		 Balance at
30 June
2022
£
178,089
1,217,274
1,395,363
Balance at
30 June
2021
£
221,103
788,857
Summary of funds - prior year
Designated funds
General funds
1,009,960

Page 35

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

23. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
178,089
Current assets
1,351,411
Creditors due within one year
(134,137)
Total
1,395,363		 Total
funds
2022
£
178,089
1,351,411
(134,137)
1,395,363

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
221,103
834,673
(45,816)
1,009,960		 Total
funds
2021
£
221,103
834,673
(45,816)
1,009,960

Page 36

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

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

Net income for the year (as per Statement of financial activities)
Adjustments for:
Depreciation charges
(Increase)/decrease in stocks
Increase in debtors
Increase in creditors
Net cash provided by operating activities
25.
Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents
26.
Analysis of changes in net debt
At 1 July
2021
£
Cash at bank and in hand
560,765
560,765		 2022
£
385,403
50,303
(7,986)
(130,120)
88,321
385,921
2022
£
58
939,339
939,397
Cash flows
£
378,632
378,632		 2021
£
189,285
60,111
3,413
(161,439)
7,438
98,808
2021
£
58
560,707
560,765
At 30 June
2022
£
939,397
939,397

Page 37

ACTION FOR DEAFNESS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

27. 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 £19,028 (2021 - £16,911). Contributions totalling £3,755 (2021 - £2,749) were payable to the fund at the balance sheet date and are included in creditors.

28. Operating lease commitments

At 30 June 2022 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		 2022
£
37,000
-
37,000		 2021
£
99,000
37,000
136,000

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

2022 2021
£ £
Operating lease rentals 99,000 99,000

Page 38