**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.
- All fundraising schemes carried out on behalf of the company must be approved by the 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. 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:
- seek additional funding
- work closely with the NHS ICBs
- apply financial management and control on all activities
- seek to maintain capability within the staff
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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 mernrs of the board ofTrustees on 7 Febrtry 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:
- give a true and fair view of the state of the charitable company's affairs as at 30 June 2022 and of 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 Companies Act 2006.
## 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:
- the information given in the Trustees’ report, which includes the Directors’ report prepared for the
- purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ report included within the Trustees’ report has been prepared in accordance with applicable
- legal requirements.
## **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:
- adequate and proper accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
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 entitd 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_|
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