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2021-02-28-accounts

Charity registered number 1160531

North Wales Recovery Communities

Trustees' report and accounts

for the year ended 28 February 2021

North Wales Recovery Communities

Contents

Page
Report of the trustees 1 - 7
Independent examiner's report 8
Statement of financial activities 9
Balance sheet 10
Notes 11 - 16

North Wales Recovery Communities

Report of the trustees

The trustees present their report along with the financial statements of the charity for the year ended 28 February 2021 and confirm they comply with the requirements of the Charities Act 2011, the Charitable Incorporated Organisations (General) Regulations 2012 and the charity's constitution.

The charity is registered with the Charity Commission under number 1160531.

Legal and administrative information

The trustees who served during the period are stated below:

James Gareth Deakin Mohammed Olanrewagu Peter Salami Sarah Frances Flynn

Principal office

Penrhyn House Llandegai Road Bangor Gwynedd LL57 1PZ

Structure, governance and management

The charity was established as a foundation charitable incorporated organisation on 17 February 2015.

Objectives and activities

To provide relief and support to vulnerable people and in particular those who are in recovery from substance misuse and have been affected by offending, homelessness & mental health issues in the areas of Conwy, Flintshire, Gwynedd and the Isle of Anglesey.

The charity achieves its objectives by the provision of abstinence based housing, open access therapeutic programmes, the promotion of health and well-being, practical support and promoting personal development.

Achievements and performance

In presenting this report it is impossible to start anywhere other than with the global pandemic that has affected us all so greatly during 2020.

NWRC first became aware of the growing pandemic in January 2020 and began to track its progress as it reached mainland Europe.

We recognised very early on that this was going to have a significant impact on individuals seeking recovery and also for the strong and vibrant recovery community already established at Penrhyn House. As such we took steps early in the crisis to ensure that we could continue to operate face-to-face mutually meetings for as long as possible whilst ensuring the safety of all our community members remained paramount in our decision making process.

However, we had to close our doors sadly in late March when the national lock-down was announced. It was hoped at this point that this would’ve only been a short-term situation but it quickly became apparent that these were unprecedented times and that as such normal operational services, groups, meetings etcetera were all going to be heavily affected long-term.

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At this point we took the decision to move all of our meetings/groupings online via zoom and made the decision to close the main building at Penrhyn House all visitors with the exception of residents and designated volunteers.

In the first week of lock-down we were inundated with requests for support for individuals who are unable to shield or isolate safely due to issues with active addiction and the lack of support available at this point. Whilst NWRC only has a limited pot of money we recognised quickly that these individuals were falling through the gaps and that if we were unable to help then individuals were likely to struggle. We therefore launched a crowd funding page that quickly raised several thousand pounds and soon began to seek grant funding that was being made available to organisations like ours willing to help their communities in their greatest hour of need.

As such we quickly linked in with our local councillor and a local community project called Maes Ni and began to provide food parcels and emergency gas and electric top ups for individuals who’d been identified by the local housing warden as being most vulnerable in terms of either physical or mental issues or those still struggling with active addiction.

This quickly grew in number as more and more individuals began to be affected and at its peak we where providing thrice weekly food parcels to over 80 individuals and families.

At the time of writing this report NWRC have provided over 8000 meals to the wider community and currently support 60 individuals and families long term with weekly food parcels etc.

Whilst this was initially done on a temporary/voluntary basis it soon became a substantial piece of work in its own right that required a full time dedicated team of volunteers to carry out. Whilst all volunteers originally became involved simply in order to “be of service” to their wider community, we have been able to create three part time grant funded positions for the most dedicated volunteers and as such have been able to commit to keeping our relief efforts ongoing until March 2021 at least.

One of the biggest positives in our response to the pandemic has been the ability to tackle the stigma surrounding addiction and to prove what a positive part that individuals in recovery can play in our wider community when faced with hardship. Alongside this NWRC have built strong lasting links with a number of like minded individuals and organisations operating within our local area that will stand us in good stead for years to come.

Therapeutic programme

N.W.R.C have continued to deliver the “gateway programme” that was originally created under the grant provision received from the DWP. The success of the programme meant that NWRC has continued to deliver a therapeutic programme that comprises of a series of psycho social group programmes, mutual aid groups and physical activities aimed at addressing addiction. The programme aims to equip its participants with the skills to cope with a life substance free, as well as addressing any long term barriers to employment and increasing physical health and enhancing health and well being.

Now into its sixth year of delivery, the programme has remained incredibly successful with participants attending from a wide catchment area. It has been recognised as being unique in its approach to supporting recovery and has continued to receive regular coverage in both the written press, television and radio, with participants being regularly invited to discuss their positive and often life changing experiences.

The project continues to include a number of Mutual aid based recovery programmes including “Moving on in my Recovery” (An A.C.T based programme) and access to on-site 12 step fellowship & SMART recovery meetings. Alongside therapeutic and skill based courses, individuals have also been able to access a variety of diversionary activities, developing new skills and interests in an attempt to “fill the

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void” left by their addictions.

These sessions focus upon enhancing health & well-being and include Mindfulness, Yoga, 5 a side football, Boxing, running, walking etc.

Over the course of the past 12 months NWRC have continued to offer a more creative outlet for participants with a creative writing course, Art therapy and the establishment of a long term partnership with Eternal Media which allows individuals to learn and develop film making skills.

In September of this year the project lead and several peers from NWRC were again invited to present at the on line FAVOR conference in Newcastle on the multi pathway approach to recovery provided by NWRC.

As with anything else this year, the “Gateway” programme was heavily effected by the Covid pandemic. Again in an attempt to operate as “normally” as possible NWRC retained face to face mutual aid meeting for residents and those within our “extended bubble” and moved all meetings “on-line” via the Zoom platform. Whilst the lack of “face to face” meetings have undoubtedly impacted upon many in a negative fashion it has none the less made many of the mutual aid fellowships more accessible to newcomers. As such NWRC have seen a surge in the growth of the numbers accessing mutual aid fellowships with a significant number of individuals now classing Penrhyn House a their “Home meeting” despite never having physically attended.

In late summer of this year a number of Penrhyn House residents and staff members recognizing the impact that a lack of “face to face” was having on certain members of our wider community decided to build an outdoor meeting space. This quickly picked up pace and with the kind support of our local area planning board (APB) we where able to construct a large covered meeting space that allowed for socially distanced face to face meetings to safely take place. As such Penrhyn House was one of the first sites in the UK to be able to recommence face to face meetings and have seen a surge in the number of mutual aid groups requesting to make use of the space.

This has proven to be extremely fortuitous given the increased demand for recovery support that seems to have resulted from the pandemic and its associated lock downs.

Therapeutic uptake

One of the main positives to have been made over the past five years has been the exponential growth in abstinence based recovery within North West Wales. We have fought hard to establish a genuinely recovery orientated system of care and as a result are seeing an increasing number of our peers reaching personal milestones in recovery and as a result we are beginning to reap the rewards this brings to our community in terms of long term sobriety and the ability to offer service to others.

When we first began in May 2015, Staff had to prop up all therapeutic delivery due to a lack of recovery orientation and long term sobriety amongst its participants. Now we have a scenario where the majority of delivery is facilitated by a large group of peers in established long term recovery. N.W.R.C peers now facilitate mutual aid groups throughout North West Wales and as such we are recognised as one of the leading providers of mutual aid and abstinence based recovery within Wales. Offering a multi pathway approach to recovery, Penrhyn house have been able to develop a menu of options for individuals seeking recovery and has regularly been highlighted as a centre of good practice that should replicated elsewhere “as there should be Penrhyn House every county” in North Wales.

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pee ac tato s a d a e o ed c ose y t t e p og a es t e apeut c de e ope to adapt the programme to be delivered with “secure hospital” settings. Delivery of this version will begin in early January 2020

It is felt that Mindfulness helps its participants significantly in terms of building “emotional sobriety”.

Abstinence based housing

N.W.R.C have continued to deliver abstinence based multi occupancy housing from the Penrhyn House site in Bangor.

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Housing up to 17 individuals at a time the project at Penrhyn House has gone from strength to strength with the average residency now lasting just over 12 months and the average period of abstinence being 9 months (figures taken in November 2019). Given that new residents are encouraged to target six months of sobriety, then this figure must be viewed as extremely encouraging when considering the efficacy of the project.

There is no doubt that while it took a tremendous effort to get to this point, we have been able to establish a genuine self sustaining community of recovery.

As a result of this success Penrhyn House continue to operate at full capacity, with a waiting list of up to 8 individuals at any one time. Due to the high demand for a placement, NWRC are able to offer places to the individuals who appear most motivated and often ask perspective residents to engage on a day basis whilst awaiting a room in order to judge levels of commitment and suitability. This also allows the individual the opportunity to develop positive relationships with existing residents ahead of moving in which often increases the chances of success once a tenancy commences.

Whilst individuals that secure a place now have a greatly increased chance of success, the demand for places at Penrhyn House highlights further the need for the housing model developed by NWRC and in particular for those in early recovery who desperately need the foundation of a sober living space in order to develop their recovery further.

Due to the success of the project at Penrhyn house and the continuing lack of sober housing within North Wales, 2020 has continued to see a huge increase in the number of referrals being made from referring agencies throughout all six counties of North Wales. As mentioned earlier in this report NWRC have continued to receive referrals throughout the Pandemic as increasing numbers of individuals appear to have turned to the problematic use of substances in order to manage the pressures of isolation etc.

Individuals wishing to secure a placement at Penrhyn House are required to provide a negative testing sample at the point of entry and are then tested on a twice weekly basis in order to evidence their ongoing abstinence.

Residents are encouraged to adopt a “working week” and have to satisfy a minimum of 20-30 hours of positive pro social activity a week in order to maintain their tenancies. These hours can consist of voluntary work, treatment or further education and can be sourced externally or satisfied within the in house therapeutic programme currently on offer.

Abstinence based housing continues to account for approximately 80% of the charity's total income.

Move on accommodation.

The charity has continued to develop “Oxford house” style move on accommodation for individuals who have been able to evidence a minimum of 12 months abstinence.

Whilst we are currently operating five “move on” units, housing up to nine individuals at any one time, we have been able to sign another tenancy over to one of our peers who has recently joined the staffing team at Penrhyn House. As recovery continues to grow at Penrhyn House there will be an increasing need for further dispersed “move on” units.

The start of 2020 saw us looking to develop a larger move on unit capable of housing up half a dozen residents. We have identified a suitable property and landlord located close to the main site at Penrhyn House and negotiated a lease that was due to start in April 2020. However due to the Corona Pandemic this start date has had to be repeatedly pushed with a start date still no nearer in sight.

It’s hoped that the roll out of any vaccine will help to speed up this process and as such NWRC hope to be able to commence this project early in the new financial year.

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Potential future developments

Due to the success of the project at Penrhyn House, NWRC had looked to develop a similar project within the Wrexham area. However the impact of the pandemic and a lack of suitable revenue funding means that this project is no longer classed as viable and as such has been placed on the “back burner”

NWRC also continue to look at developing a “tier 1“ assessment unit in the Bangor area over the coming 12 months. Ideally this would be a 3-4 bed unit where individuals could be assessed ahead of being offered a placement at Penrhyn House, whilst we have found a landlord and a property to work with,this has again had to be “pushed back” due to the ongoing pandemic.

During 2020 NWRC have also continued to work in collaboration with Capacity: The Public Services Lab.

This ongoing collaboration has continued to strengthen the governance of NWRC and continues to look at securing additional revenue funding. Work with Capacity on strengthening the public profile of NWRC has also seen the successful development of a new website, logo and branding etc.

As 2020 drawers to an end NWRC have been approached on partnering on a couple of really exciting initiatives that are hoping to get off the ground in 2021. Whilst it is still extremely early on in the process, the projects if successfully funded would see NWRC develop more work and training opportunities for individuals in sustainable recovery and allow us to access new revenue streams that sit outside of the traditional substance misuse funds we normally access.

Current challenges

2019 saw NWRC face major challenges with the roll out of Universal credit (U.C) and in particular its impact upon “Exempt accommodation”. Whilst this still remains a significant issue for us, strong partnership working with our colleagues at the DWP has seen the impact of the UC roll out minimised for the vast majority of our residents/community members. However until this matter is fully resolved NWRC will still have to limit the amount of prison leavers we can accept due to their higher drop out rates in terms of relapse and recidivism, which can often see them leaving Penrhyn House with substantial rent arrears ahead of undertaking their LCFW assessment.

The commissioning process within North Wales continues to be of significant concern for us, particularly when it comes to competing with some of the more established providers for suitable contracts/tenders etc.. It’s our belief that there is a level of “risk aversion” that exists within the commissioning process that will always inadvertently discriminate against “Lived experience” organisations like ours no matter how strong our models of governance may be. This was born out by our failure to secure a “Recovery day programme” that was placed out for tender earlier in 2020. Despite submitting an extremely strong tender and being recognised as the leading specialists in providing recovery support within North West Wales the tender was awarded to one of the larger established providers after tendering a much lower price, despite being assured that price only accounted for 20% of the scoring.

The significant amount of time, money and effort that went into submitting this unsuccessful tender has to be taken into account when looking forwards to any additional tenders that may be placed out for contract. As NWRC simply do not have the financial capacity to tender again unsuccessfully particularly if we are having to compete on an “uneven playing field”.

As such any and all additional tenders will have to be looked at closely before we decide to commit again in the future as the likelihood of success would appear minimal when the cost is taken into account.

Therapeutic grant funding

As mentioned in last year's report, adequate therapeutic funding for NWRC remains a significant concern.

After meeting with senior members of the WAG in early 2020, NWRC where able to secure an additional £25,000 to meet the shortfall in core costs for 2019-2020. It was hoped that this could then be formally included into NWRC’s contract with the APB, increasing our contract value to the level needed to meet

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our core costs.

This has however again been affected by the Pandemic and despite a verbal commitment to again meet this year's financial shortfall from slippage, funding is still yet to be secured. In effect this means that the organisational lead has once again been unable to receive a salary for 2020-2021 and is now owed a total of three years worth of salary.

Whilst the impact of the pandemic cannot be underestimated, it's extremely disappointing that this matter is no closer to being resolved despite repeated assurances that it would be. The reality is that this situation cannot be endured financially for much longer and that failure to resolve this issue by the start of the new financial year could see NWRC have to significantly restructure its staffing and senior management team.

Evidence base

NWRC have continued to take part in a joint research project this with the CSARS group (Chester Studies of Addiction, Recovery and Spirituality) from Chester University. The initial paper entitled “The Impact of Group Engagement on Recovery Outcomes” looked at the recovery outcomes for a group of 75 participants who engaged within the recovery programme at Penrhyn House over a three year period and suggested that there was an exceptionally strong link between ongoing attendance at mutual aid meetings and the sustainment of long term recovery, with roughly two thirds of all attendees at Penrhyn House having a sustainable recovery journey.The project is now being broadened out to become a more longer term study similar in type to “Project Match” in the United States or the “Life in Recovery” study being undertaken by Sheffield University.

This year's (2020) paper has seen the CSARS team study the “Impact of the pandemic upon community recovery”.

This project continues to be one of the first of its kind in the UK and supports the work carried out by leading lights in the the Recovery Field such as Drs David Best and Ed Day and offers the opportunity to study long term the impact that mutual aid can have on overcoming addiction.

NWRC have also been asked to take part in a new research project in 2021 championed by the likes of David Best and Ed Day looking at the impact of “LERO’S” (lived experience recovery organisations).

Financial review

The charity’s income was £554,050 and net income for the year was £11,351. The charity aims to maintain cash reserves of £10,000.

This report was approved by the trustees on 20 December 2021 and signed on their behalf by

James Gareth Deakin Trustee

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North Wales Recovery Communities

Independent Examiner's Report to the Trustees of North Wales Recovery Communities

I report on the accounts of the charity for the year ended 28 February 2021.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 and that an independent examination is needed.

It is my responsibility to:

Basis of the independent examiner's report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the accounts.

Independent examiner's report

In the course of my examination no matter has come to my attention:

Mr N A Christian FCPA

Christian Sykes & Co Ltd 333/335 High Street Bangor Gwynedd LL57 1YA

Dated: 20 December 2021

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North Wales Recovery Communities

Statement of financial activities for the year ended 28 February 2021

note
Incoming resources
3
Resources expended
Expenditure on the provision of care
4
Income and endowments from:
Charitable activities
Central and local government grants for the
provision of care
Trading activities
Donations and legacies
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Total
Expenditure on:
Charitable activities
Total
Net income		 £
63,160
490,890
-
554,050
542,699
542,699
11,351
-
11,351
62,335
73,686
Unrestricted
funds		 £
14,040
440,413
78
454,531
433,987
433,987
20,544
-
20,544
41,791
62,335
Prior year
funds

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North Wales Recovery Communities

Balance sheet as at 28 February 2021

Fixed assets
Tangible assets
9
Total fixed assets
Current assets
Debtors
10
Cash at bank and in hand
12
Total current assets
11
Net current assets
Total net assets
Funds of the charity
Unrestricted funds
Total funds
Creditors: amounts falling due within one
year
note		 £
25,825
25,825
40,916
20,748
61,664
13,803
47,861
73,686
73,686
73,686
Unrestricted
funds		 £
26,444
26,444
12,529
31,269
43,799
7,907
35,891
62,335
62,335
62,335
Prior year
funds

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North Wales Recovery Communities

Notes to the accounts for the year ended 28 February 2021

1 Basis of preparation

1.1 Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.

The accounts have been prepared in accordance with:

The charity constitutes a public benefit entity as defined by FRS 102.

1 Going Concern

There are no material uncertainties related to events or conditions that cast significant doubt on the charity's ability to continue as a going concern.

2 Accounting policies

2.1 Income

Recognition of income

Income is included in the Statement of Financial Activities (SoFA) when:

Offsetting

There has been no offsetting of assets and liabilities or income and expenses unless required or permitted by by the FRS 102 SORP or FRS 102.

Grants and donations

Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP).

In the case of performance related grants, income is only recognised to the extent that the charity has provided the specified goods or services as entitlement to the grant only occurs when the performance related conditions are met (5.16 FRS 102 SORP).

Contractual income and performance related grants

This is only included in the SoFA once the charity has provided the related goods or services or met the performance related conditions.

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North Wales Recovery Communities

Notes to the accounts (cont) for the year ended 28 February 2021

2.1 Income (cont)

Support costs

The charity has incurred expenditure on support costs.

2.2 Expenditure and liabilities

Liability recognition

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

Governance and support costs

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

Provisions for liabilities

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.

2.3 Assets

Tangible fixed assets for use by the charity

These are capitalised if they can be used for more than one year and cost at least £100.

They are valued at cost and the depreciation rates and methods are disclosed in note 7.

Debtors

Debtors, including trade debtors and loans receivable, are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

3 Analysis of income

Charitable activities

Income from charitable activities

Abstinence based housing
Physical diversity activity
Complimentary therapies		 £
348,336
71,277
71,277
490,890
Unrestricted
funds		 Last
year
£
374,570
32,922
32,922
440,413

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North Wales Recovery Communities

Notes to the accounts (cont) for the year ended 28 February 2021

4 Analysis of expenditure

Expenditure on charitable activities

Activity
Abstinence based housing
Physical diversity activity
Complimentary therapies		 Total
Last
year
£
£
£
£
429,612
1,931
431,544
355,849
105,870
1,931
107,801
70,837
1,423
1,931
3,355
7,301
536,905
5,794
542,699
433,987
Activities
undertaken
Support
costs

Total support costs have been apportioned equally between the three principal activities undertaken by the charity shown above.

5 Support costs

Support costs
Office
Professional fees
Finance
Governance		 This year
Last year
£
£
4,924
3,647
40
14,080
206
215
624
588
5,794
18,530

6 Details for certain items of expenditure

6.1 Fees for examination of the accounts

Independent examiner's fees £624 (2020: £588).

No fees were paid for assurance services, tax advisory fees or other fees either for this year or last year.

7 Paid employees
7.1 Staff costs
Salaries and wages
Social security costs
Pension costs (defined contribution scheme)		 This year
£
31,312
-
473		 Last year
£
16,500
-
198
Total staff costs 31,785 16,698
7.2 Average head count in the year This year Last year
Number Number
The parts of the charity in which the
employees work Physical diversity activity 2 1

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North Wales Recovery Communities

Notes to the accounts (cont) for the year ended 28 February 2021

8
9 Tangible fixed assets
Cost or valuation
At the beginning of the year
Disposals
Additions
At the end of the year
Depreciation
At the beginning of the year
Disposals
Depreciation
At the end of the year
Net book value
At the beginning of the year
At the end of the year
Tangible fixed assets are depreciated as follows:
Fixtures, fittings and equipment - 15% on the reducing balance basis
Motor vehicles - 25% on the reducing balance basis
Defined contribution pension scheme
Amount of contributions recognised in the SOFA as an expense		 This year
Last year
£
£
473
198
Total
£
£
41,842
41,842
-
-
3,914
3,914
45,757
45,757
15,398
15,398
-
-
4,533
4,533
19,932
19,932
26,444
26,444
25,825
25,825
Fixtures,fitting
s and
equipment

10 Debtors and prepayments

10.1 Analysis of debtors
Trade debtors
Other debtors		 This year
Last year
£
£
39,517
11,131
1,399
1,399
40,916
12,529

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North Wales Recovery Communities

Notes to the accounts (cont) for the year ended 28 February 2021

11 Creditors and accruals

11.1 Analysis of creditors and accruals

Analysis of creditors and accruals
Trade creditors
Taxation and social security
Accruals and deferred income
Other creditors		 This year
Last year
£
£
7,459
1,516
853
116
5,400
4,787
91
1,489
13,803
7,907

11.2 Deferred income

Income received in advance of the provision of the contracted service has been deferred this year and last year.

Movement in deferred income account This year
Last year
Balance at the start of the reporting period £
£
4,167
14,756
Amounts added in current period 4,167
4,167
Amounts released to income from previous periods (4,167)
(14,756)
Balance at the end of the reporting period 4,167
4,167
12 Cash at bank and in hand This year
Last year
Cash at bank and on hand £
£
20,748
31,269

13 Trustee remuneration and benefits

None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.

14 Trustee's expenses

Type of expenses reimbursed
Travel and subsistence
Office costs		 This year
Last year
£
£
966
4,894
1,125
-
2,091
4,894

The number of trustees paid expenses was 1 (2020: 2).

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North Wales Recovery Communities

Notes to the accounts (cont) for the year ended 28 February 2021

15 Transactions with related parties

During the year the charity was invoiced £203,136 (2020: £181,007) by North Wales Recovery Communities Cyf, a company controlled by Mr J G Deakin, for providing supervisory care of the charity's beneficiaries.

At the 28/02/21 the charity owed North Wales Recovery Communities Cyf £7,459 (2020: £nil).

During the year the charity was invoiced £25,000 (2020: £nil) by North Wales Recovery Support Services Ltd, a company controlled by Mr J G Deakin, for providing management services. No amount was owed at 28/02/21 (2020 £nil).

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