## ACTION DEAFNESS **DEAF-LED CHARITY**
ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 **1**
Registration no: **06706042**
Registered charity no: **1163758 (England and Wales) / SCO5670 (Scotland)**
## REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS
**FOR THE YEAR ENDED 30 SEPTEMBER 2021**
**2 ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## CONTENTS
STATEMENT FROM CHAIR AND CHIEF EXECUTIVE............................................................. 3 REPORT OF THE TRUSTEES.................................................. 6 REPORT OF THE INDEPENDENT AUDITORS .................................................. 22 FINANCIAL STATEMENTS ................................................... 28 FINANCIAL ACTIVITIES ............................................................................................. 28 BALANCE SHEET ..................................................................................................................... 31 CASH FLOW ................................................................................................................................... 32
NOTES ...................................................................................................................34 CASH FLOW STATEMENT ....................................................................................... 34 FINANCIAL STATEMENTS ..................................................................................... 35
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 3**
## STATEMENT FROM CHAIR AND CHIEF EXECUTIVE
## **EMMA ALLEN - CHAIR, ACTION DEAFNESS**
2020-2021 was devastating for many people affected by COVID-19. Despite tough conditions, we remained determined to continue making a difference; providing those services we were able to whilst launching new ones, like our Generation Communication project funded by DCMS/ National Lottery.
We also welcomed a merger with Walsall Deaf Community Services in Autumn 2020 and achieved registered charity status in Scotland, which means Action Deafness continues to make a positive impact and support its communities in both our primary and wider secondary UK areas.
We were able to continue with much of our vital service delivery, such as Communications Interpreting, and actively assist the people we support, particularly those in community and care who were overwhelmed by the impact of the virus.
Our staff and management have been amazing, adapting what we do to ensure that we were able to provide support, in innovative ways, to the people who needed it most. I have been so proud of how the whole organisation has rallied, re-imagining our services and never losing sight of what is important: creating a positive impact on the lives of those affected by what is a complex and difficult condition in normal times, let alone during an isolating, global pandemic.
Initially, in early 2020, there were fears that the pandemic would devastate our ability to provide services effectively. There was also a real need to prioritise our commitment to the financial sustainability of Action Deafness. Although our income has grown in 2020-2021, and despite it being higher than in previous years, the Board of Trustees acknowledges there will be reduced income for the year ahead due to changes in service contracts.
Post-pandemic projections indicate that a combination of modifying parts of our services, sharing knowledge and resources across our supported communities and the introduction of the tight financial controls now in place are necessary for our future. With this in mind, we aim to secure and maintain a strong financial position.
We still have much to do and, I fear, the impact of the virus on Action Deafness is far from over. However, the Board has great confidence in our #TeamAD which has delivered brilliantly through the most challenging of times. And in you, our stakeholders, supporters and those who receive our support and services – we could not have got through this year without you all. **Thank you.**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## STATEMENT FROM CHAIR AND CHIEF EXECUTIVE
## **CRAIG CROWLEY MBE, CHIEF EXECUTIVE OFFICER**
Never, in the whole of my life, have I witnessed or experienced anything comparable to working and living through a pandemic. I share our Chair, Emma’s, pride in what we as #TeamAD were able to achieve, both on the frontline of service delivery and operationally, in the most complicated and often exhausting circumstances that confronted all Deaf, hard of hearing, deafened and Deafblind people, but especially our most vulnerable.
COVID-19 proved deeply disruptive and traumatic, affecting individuals and families alike in attempts to access local amenities and public places. The resulting sense of overwhelming uncertainty and insecurity is likely to continue for some time to come.
We are incredibly proud of our amazing colleagues and stakeholders, here at Action Deafness, who came together and united to successfully endure the unique and unforeseen challenges presented by 2020-21.
Our people are, without a doubt, Action Deafness’ most precious resource. Going above and beyond in order to maintain delivery of our vital services. As the first lockdown began, we witnessed an unparalleled outpouring of generosity, selfsacrifice and creativity as our teams worked tirelessly to reach those who needed our help. It was truly amazing!
We are now beginning to look tentatively towards the next stages of a post-pandemic future as we seek to restore some sense of normality to the everyday experiences of Deaf people across the UK.
Increasingly, Deaf people are facing significant and complex challenges. Support is required to manage and maintain mental health and wellbeing. It is important to ensure the safety and protection of our community’s most vulnerable members as we continue to address issues of isolation and deliver interventions.
We have already begun building on vital knowledge acquired over recent months as we aim to ensure Action Deafness is in the best possible position to meet the challenges of tomorrow. This means fully embracing digitalisation to maximise the reach and effectiveness of our services; embedding accessibility, equality, diversity and inclusion into the heart of our charity and continuing on our journey towards becoming a truly re-booted organisation. It will also require us to harness the power of partnership working. Hub Connect will bring together local Deaf and hard of hearing communities, encouraging and supporting them to join forces with organisations from across the charity sector, a wide variety of businesses and Government departments, all with the aim of delivering the best possible outcomes for Deaf people.
By adopting a persistent focus on innovation and system change, and simultaneously utilising strategic partnerships and local delivery as part of Agreement Frameworks, such as the NHS Shared Business Services, all in conjunction with the British Sign Language Act 2022 and Health & Social Care policies, we will continue to evolve and respond to existing and emerging needs across the UK.
For Action Deafness, the challenge ahead is clear: our services have never been more needed, by so many, at a time when our income, like that of many other organisations, has taken such a significant hit. We know that the world has changed and that Action Deafness must continue to change with it.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
It is fundamentally important that, as we look forward to building on our experience with a continued commitment to Action Deafness’ mission, purpose, vision and values, we lead the organisation as custodians of the charity’s legacy; acknowledging the former charities of Leicester, Loughborough, Hereford, Worcester, Walsall and Oxford as we work to ensure a bright and sustainable future.
Finally, we are extremely grateful for #TeamAD and our Board of Trustees’ unwavering support. We remain quietly optimistic as we enter this fresh new chapter, centred on the spirit of collaboration and partnership. We continue working with hope and an integral belief in Deaf, Hard of Hearing, Deafened and Deafblind people who will forever be at the heart of all we do.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## REPORT OF THE TRUSTEES
**The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2021. The trustees have adopted the provisions of 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).**
## **OBJECTIVES AND ACTIVITIES**
## **Our Vision**
“A society where Deaf* people have informed choice, complete control of their lives, equal access to quality services and full communication when they need it.”
(* Denotes Deaf, Deafened, Hard of Hearing and Deafblind people)
## **Our Values**
Caring - we care about Deaf, Hard of Hearing, Deafened and Deafblind people.
Accessible - we aim to make our services more accessible and help make the services provided by other organisations increasingly accessible.
Responsive - we always put our customers and service users FIRST.
Dynamic - we have a ‘CAN-DO’ attitude and will never give up until we get our services right.
Honest - we are open and communicate effectively with our clients. We are sensitive to our clients’ needs.
Deaf-led - we lead by example. We are passionate and committed to our organisation and our service provision.
## **Our Core Values**
- People-centred.
- Empowering.
- Constructively challenging ways of thinking whilst encouraging a positive perspective of deafness (hearing loss).
- Transforming lives.
- Promoting independence and equality.
- Developing new ideas and opportunities.
## **Mission**
Action Deafness supports Deaf people, and people with hearing loss, to achieve increased access, independence, choice and control.
We do this by:
- Maximising opportunities for Deaf people to live the life they choose by providing Personal Assistants and offering Personal Care services.
- Promoting effective communication solutions to improve access to services.
- Ensuring organisational sustainability through growth, partnership and diversification.
- Being a leading provider of Communications Interpreting and Community & Care support.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
**7**
## **Key Supporting Principles**
- Be Deaf-led.
- Be a catalyst for positive change, creating opportunity through partnerships.
- Use our knowledge and expertise to support provision in all areas.
- Risk-taking is an intrinsic element of growth and consolidation.
Firstly, as a service provider, we seek to offer creative and diverse services in response to those identified wishes, aspirations and requirements of the people we serve and support. With an understanding of real, lived, experiences along with local and surrounding communities’ concerns, we actively promote participation in day-today life, opportunities and decision making.
Ultimately, our people-centred services are underpinned by a strong foundation that values and fosters all aspects relating to service users’ personal development.
Secondly, we understand that our ability to deliver these ideals is inextricably linked to effective working partnerships with all stakeholders. This collaboration ensures continual improvement in the quality and value of services we provide.
We have recruited, and are constantly developing, a competent, motivated, sensitive and proactive staff team; responsive to users’ needs whilst remaining focused on maintaining standards and achieving Action Deafness’ objectives.
## **Significant activities**
Action Deafness is a Deaf-led, national, charitable company with charitable objectives focused on a wide range of services delivered throughout the UK. Primary service delivery centres on both East and West Midlands, Oxfordshire whilst our service catchment areas are also situated in Hertfordshire, Brighton and Sussex.
Our main key services are:
- Communications Interpreting
- Community & Care
- Joint Ventures/Partnerships
- Equipment & Projects
We retain our charitable obligation to Leicester, Loughborough, Leicestershire, Rutland, Worcestershire, Herefordshire, Oxfordshire and Walsall. We continue, as a company limited by guarantee, to offer services that benefit Deaf, Hard of Hearing, Deafened and Deafblind communities throughout the UK.
## **Public benefit**
As a charitable company, Action Deafness provides public benefit to Deaf, Hard of Hearing, Deafened and Deafblind beneficiaries through its provision of AD Communications Interpreting services; facilitating communication between the hearing and the non-hearing community. Trustee Directors have demonstrated due regard to the Charity Commission’s guidance on public benefit.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## REPORT OF THE TRUSTEES
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We have
recruited, and
are constantly
developing,
a competent,
motivated, sensitive
and proactive
staff team.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **ACHIEVEMENTS AND PERFORMANCE HIGHLIGHTS**
This review provides assurance that Action Deafness’ strategic objectives are being delivered as per Action Deafness’ Five Year Strategy 2018-2023 (approved by the Board of Trustees in September 2018).
- Concluded the partnership agreements with SignLive VRS and entered a formal partnership agreement with SignVideo VRS.
- Progressed new business development initiatives and undertook successful tender applications for NHS Shared Business Services. In formal partnership with RNID, Deaf Action and GDA, AD has become a leading SBS-approved provider for BSL Interpreting Services.
These outcomes have also been measured against the departmental business operating plan 2020-2021.
Since the COVID-19 pandemic, and subsequent lockdowns, the charitable company undertook a decision to revert to hybrid working practices meaning that operations have been streamlined and now allow prominent management and operations staff to predominantly work remotely from home. This exercise proved successful.
- Maintained our on-going agreement with Pembroke College (University of Oxford), with regards the proposed sale of Oxford Deaf & Hard of Hearing Centre, through the long stop extension agreement.
- Diversified income generation, service delivery and business activities to achieve year end income by September 2021.
Oxford Deaf & Hard of Hearing Centre are building assets belonging to the organisation.
- Successful stewardship of expenditure, achieving a surplus position (after grants/ legacies/fundraising) despite COVID-19 implications and predicted recession.
## **Our Five-Year Plan to 2023**
This year (2020/21) was the third year of our Five-Year Plan and excellent progress has been made with agreed milestones and targets across all three of our priority areas.
- Successfully delivered activities of Community & Care Services, Communications Interpreting and AD Services complemented by Executive Office, Finance & Admin and Human Resources.
As would be expected in the fourth year of a five-year plan, many of these milestones relate to the development of proposals or preparation work in anticipation of new service launches, partnerships or areas of work to be implemented in the final two years of the plan.
- Achieved, and successfully consolidated, a culture of organisational effectiveness through i) Care Quality Commission (CQC) registration, ii) ISO 9001(Quality Management) and ISO27001 (Information and Security) iii) Cyber Essentials Plus re-accreditation as well as iv) compliance with policies and procedures in Risk Register, Business Continuity Plan (BCP), Safeguarding and GDPR.
## **The Big Picture in 2020/2021**
- Consolidated, streamlined and harmonised - by maintaining a robust and efficient organisational structure approved in the 2020/2021 Business Operating Plan.
- Maintained our flagship services (Communications Interpreting, Community & Care and Services) throughout 2020/2021.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## REPORT OF THE TRUSTEES
## **Key Initiatives for 2020/2021 Period**
- Developed and implemented Action Kickstart (DWP Kickstart Scheme); a project recruiting trainees, aged 18-24, to be involved in work experience opportunities with Action Deafness and partnering Deaf charities throughout the UK – this project saw only partial success as a result of challenges in the DWP’s recruitment system.
- Successfully developed Generation Communication; a project for older Deaf and Hard of Hearing people who were trained in IT by a team of GC officers. Funding achieved and delivered through the Department of Culture Media & Sport and The National Lottery’s Coronavirus Grant.
- Re-established user consultation groups for Worcestershire/Herefordshire/Oxfordshire and West/East Midlands (Walsall/Derby) as part of the charity’s objectives and merger agreements.
- Development of Digital and Equipment Services based in Leicester City, Worcestershire, Herefordshire and Oxfordshire with thanks to the financial support from Eveson Trust and Leicester City Council.
- Development of Community PA service in Herefordshire, Worcestershire and Oxfordshire - delayed due to COVID-19 restrictions.
- Proposed sale of Oxford Deaf & Hard of Hearing Centre building to Pembroke College - further delayed due to COVID-19 and lockdown restrictions.
- Established and developed new initiatives in sensory, care and support provision. Also made several tender applications throughout the UK.
framework for Face-to-Face (F2F) and video relay service (VRS) for BSL interpreting.
- Successfully pursued and obtained Scottish charity registration status for the purposes of key initiatives in community care.
- Despite COVID-19 restrictions, further 24/7 Personal Care and ExtraCare Project research work was conducted. A feasibility report was produced and a considerably successful webinar on Open Space took place in May 2021.
- Care and support provision in Walsall was once again delayed due to COVID-19 restrictions.
- Revamped promotions and marketing initiatives with the development of a new website and new brand logo for Action Deafness which was launched in November 2020 to huge acclaim.
- Cyber Essentials Certificate and ISO 18841Certificate in Interpreting has been obtained.
- Successfully acquired the NHS’s Shared Business Services (SBS) agreement
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **Other Key Achievements**
- Feedback Survey: 77% of Deaf & Hard of Hearing people reported that Action Deafness helped them to live their lives safely and independently.
- Feedback Survey: 81% of stakeholders stated that Action Deafness’ services helped them to get through COVID-19 to September 2021.
- We achieved a new accreditation in ISO 18841 Interpreting - making the organisation a first Deaf-led interpreting unit in the UK to acquire this status.
- We successfully obtained 1SO 9001 and 27001 accreditation in May 2021.
- Successfully obtained agreement framework status in NEPO (North East Procurement Organisation) and ESCC (East Sussex County Council).
- 35,000 hours of community and care support were provided during 2020-2021 - 3% increase compared with figures from 2019-2020.
- 11,000 assignments were covered by Communications Interpreting - despite a decrease of 1,000 in comparison to 20192020 owing to changes in contract with SignLive.
- Despite COVID-19 restrictions, we still managed to achieve 75% of our Five Year Strategic ‘Goals’ through service provision and business development.
## **Stakeholders and Supporters**
We extend our appreciation to the following stakeholders, supporters and partners (in alphabetical order) for their assistance, collaboration and partnership during 20202021:
- Brighton and Hove Clinical Commissioning Group (CCG)
- CJ Interpreting (now Rare Rockets)
- DeafCOG
- Deaf and Hearing Trailblazers
- DeafKidz International
- Derby City Council
- Derbyshire County Council
- East Sussex County Council
- Eveson Trust
- Futures Housing Group
- Herefordshire County Council
- Herefordshire & Worcestershire Health & Care NHS
- Hertfordshire County Council
- Leicester City Council
- Leicestershire County Council
- Nottingham City Council
- Nottinghamshire County Council
- Oxford City Council
- Oxfordshire County Council
- RNID
- SignVideo VRS
- Splice Agency
- St Andrew’s Healthcare Trust
- Sussex Partnership MH NHS
- University Hospitals of Leicester NHS
- Vision Links (Herefordshire)
- Walsall Deaf Community Services
- Warwickshire County Council
- Worcester City Council
- Worcestershire Acute Hospitals NHS
- Worcestershire County Council
We look forward to fostering strong partnerships and relationships with an increasing number of organisations / charities with the aim of creating a better future for Deaf communities across the UK.
- Brighton & Sussex Universities Hospitals NHS
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## REPORT OF THE TRUSTEES
## **FINANCIAL REVIEW**
## **Financial position**
Income for the 12 months amounted to £4,531,395 (2020: £3,744,297) and expenditure for the same period amounted to £4,090,121 (2020: £3,746,251). As a result, the surplus for the period (before other recognised gains and losses) was £443,441 (2020: £1,674 Loss).
The defined benefit scheme liability was settled during the year, while the present value of the deficit funding agreed on the multi-employer defined contribution pension scheme (TPT Retirement Solutions - The Growth Plan) of which the charitable company is a part, decreased to £8,732 (2020: £11,182).
Total funds on hand at the balance sheet amount to net assets of £579,396 (2020: £135,936) can only be realised through the sale of tangible fixed assets.
Funds on hand at the Balance Sheet date comprise restricted Funds of £339,155 (2020: £29,207) and designated funds (excluding the pension liability noted above) of £51,793 (2020: (£2,822)) - these comprise the charity’s tangible fixed assets and fixed asset investments. Free Reserves, excluding the pension liability, amount to £197,180 (2020: £175,280).
Investment policy and objectives The Trustees have the power to invest in such assets as they see fit.
## **Reserves policy**
It is the policy of the charitable company that unrestricted funds which have not been designated for a specific purpose should be maintained at a level equivalent to between three and six month’s expenditure. The trustee directors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.
Over the past few years, due to the level of year end reserves (and in particular the pension liability), the level of reserves has been insufficient to maintain designated funds. However, due to the current year surplus, reserves are starting to be built back up again. The trustees recognise the importance of ensuring that a suitable level of reserves is maintained and the board is committed to monitoring the financial position of the organisation on an on-going basis.
## **Pension liability**
The pension liability represents the present value of the deficit funding agreed for the multi-employer defined contribution pension scheme (TPT Retirement Solutions - the Growth Plan) of which the charitable company is a part.
## **Going concern**
The Trustee Directors are confident that there are no material uncertainties about the charitable company’s ability to continue as a going concern. They have approved a realistic (with break-even in mind) budget for 2021.2022. With appropriate budgetary controls, no pension liabilities (from April 2021) and even in the current difficult economic climate, Action Deafness will continue in operation and that it is only appropriate to prepare these financial statements on a going concern basis
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 13**
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Despite COVID-19
restrictions, we still
managed to achieve
75% of our Five Year
Strategic ‘Goals’
through service
provision and
business
development.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## REPORT OF THE TRUSTEES
## **FUTURE PLANS FOR 2021-2022**
## **The Big Picture**
- Maintain our relationship with Pembroke College (University of Oxford) through the long stop extension agreement leading to the eventual sale of Oxford Deaf & Hard of Hearing Centre by end of 2022.
- Aim to maintain a robust and efficient organisational structure which has been approved by the Board of Trustees in preparation for the 2021-2022 Business Operating Plan Pillars.
- Diversify income generation, service delivery and business activities to achieve year end income by September 2022.
- Maintain the delivery of flagship services (Communications Interpreting and Community & Care) throughout 20212022.
- Effect prudent stewardship of expenditure, achieving a break even position (after grants/legacies/fundraising) despite COVID-19 implications and a likely recession.
- Establish new Memorandum of Understanding and formal partnership agreements with RNID, GDA and Deaf Action (for NHS SBS), SignVideo VRS (for supplying BSL Interpreters).
- Deliver activities of Community & Care Services, Communications Interpreting and AD Services complemented by Executive Office, Finance & Admin and Human Resources.
- Develop new initiatives and implement further new partnerships/joint ventures with Deaf charities, organisations and stakeholders.
- Maintain and consolidate a culture of organisational effectiveness through i) Care Quality Commission (CQC) registration, ii) ISO 9001(Quality Management), 18841 (Interpreting) and 27001 (Information and Security) accreditation as well as iii) compliance with policies and procedures in Risk Register, Business Continuation Plan, Safeguarding and GDPR.
- Establish new Memorandum of Understanding and formal partnership agreements with Deafkidz International for developing new initiatives in children and young people projects and Deaf & Hearing Trailblazers Training for joint hosting the inaugural UK Deaf Leadership Summit Live Webinars and developing new actioncentred leadership approaches with AD staff.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **Key Initiatives for 2021-2022**
- Explore, develop new initiatives in deafblind, sensory, care & support provision.
- Complete the Action Kickstart (DWP Kickstart Scheme) project with successful delivery of trainees aged 18-24 for work experience opportunities with Action Deafness and partnering Deaf charities throughout the UK.
- Establish and nurture new development opportunities by creating new Business Development and Innovation whilst targeting commissioners and contractors as part of our drive with NHS’s Shared Business Services (SBS), NEPO (North East Procurement Organisation), ESCC (East Sussex County Council) agreement frameworks for Face-to-Face (F2F) and video relay service (VRS) for BSL interpreting.
- Complete the Department of Culture Media & Sport and The National Lottery’s Coronavirus Grant Lottery funding of Generation Communication project for older Deaf and Hard of Hearing people and launch the new Hub Connect Project to focus on post-merger catchment areas.
- Explore further 24/7 Personal Care and/or ExtraCare Project.
- Re-establish User Consultation Groups for Worcestershire/Herefordshire/Oxfordshire and West/East Midlands (Walsall/Derby) as part of the charity’s objectives and merger agreements.
- Explore new project initiatives involving Deaf children and Young People in partnership with Deafkidz International.
- Continue to explore new initiatives in digitalisation, external service and care management support via joint venture arrangements.
- Deliver Digital and Equipment Services based in Leicester City, Worcestershire, Herefordshire and Oxfordshire with thanks to financial support from Eveson Trust and Leicester City Council.
- Develop and establish new care & support provision in Walsall following recent merger with Action Deafness.
- Re-establish and deliver Community PA service in Herefordshire, Worcestershire and Oxfordshire.
- Revamp promotions and marketing initiatives with the development of a new Fundraising Strategy and Delivery for Action Deafness.
- Work towards the eventual sale of Oxford Deaf & Hard of Hearing Centre building to Pembroke College.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## REPORT OF THE TRUSTEES
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The company is constituted under a Memorandum of Association, dated June 2008 and revised in September 2015 (company number 06706042), with the registered charity number 1163758.
It is exempt from the use of the word “Limited” within its name.
## **Trustees**
Trustees, elected and co-opted under the new and revised terms of the Articles of Association, are responsible for the Company’s governance. Persons who served as Trustee during the year are listed within the Constitutional and Administrative Details section of this report. Following mergers with Deaf Direct and Walsall Deaf Community Services, and the retirement of Barry Ross as Joint Chair, and trustees Helen Foulkes and Andrew Freeman, the charitable company re-established its Trustee Board of 9 members. Subsequently, on 17 September 2021, Alison Lewis was elected as Joint ViceChair.
## **Induction and Training of New Trustees**
As an organisation, Action Deafness relies upon guidance issued by the Charity Commission in relation to Trustees’ induction and training.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **Organisational structure**
Day to day running of the charitable company is delegated to the Chief Executive Officer (CEO) who reports to the Board of Trustees. The CEO operates within a wideranging, assigned, remit. Policy states that, where individual Trustees have specific and useful expertise, the CEO and identified Trustees will work collaboratively.
Action Deafness’ business is managed by a Board comprising of all the appointed Trustees. The Board meets formally at least four times a year and on additional occasions when decisions are necessary prior to the next formal meeting.
Trustees provide Action Deafness’s CEO with the guidance and leadership required to conduct the day-to-day business working of the charity. The CEO attends and reports to each meeting of the Board.
## **Key management remuneration**
Key management personnel of the charitable company includes Trustees and the Executive Leadership Team; comprising of CEO, Head of Finance, Head of Interpreting, Director of Finance & Operations, Service Manager, HR & Communications Manager and Community Business Manager. Between these groups, the organisation is governed and operated on a day-to-day basis.
All Trustees give of their time freely and no Trustee received any remuneration during the year.
Senior staff members’ salaries are reviewed annually and normally increase in accordance with average earnings. Trustee Directors benchmark the CEO’s salary against pay levels in other charitable organisations of similar size and nature.
All other salaries are determined by the Executive Leadership Team with consideration given to market forces and inwork performance benchmarks.
## **Risk management**
Trustees have a duty to identify and review any risks to which the charitable company is exposed and to ensure appropriate controls are in place providing reasonable assurance against fraud and error.
Trustees use a risk register to manage risk which considers key areas of governance, operations, finance, environment and compliance.
Each area is reviewed for potential risk, potential risk impact and mitigation process. Trustees, together with the CEO and the Executive Leadership Team, review all operations and update the risk register six-monthly and annually in conjunction with ISO 9001 Quality Management, ISO 27001 Information and Security, ISO 18841 Interpreting, Care Quality Commission (CQC) Cyber Essentials Plus and SORP regulations.
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 key performance and risk reviews.
Action Deafness subscribes to the Code of Fundraising Practice in all of its fundraising activities. The code is implemented through our HR and Fundraising processes. Every person involved in fundraising for Action Deafness, is trained and inducted on the expectations as set out in the code of practice.
We comply with all the GDPR legal requirements regarding donors’ or fundraisers’ personal data. No third-party organisations or consultants were used for raising funds for Action Deafness. There have no breaches and complaints received with the application of this code and GDPR regulations in the reporting period.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## REPORT OF THE TRUSTEES
**Our people go above and beyond in order to maintain delivery of our vital services.**
**We aim to ensure Action Deafness is in the best possible position to meet the challenges of tomorrow.**
**Our teams worked tirelessly to reach those who needed our help.**
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
06706042 (England and Wales)
## **Registered Charity number**
1163758
SC050670 (Scotland) (registered in January 2021)
## **Registered office**
Peepul Centre, 28 Orchardson Avenue, Leicester, Leicestershire, LE4 6DP
## **Principal address**
University Science & Enterprise Park, 5 Oakwood Drive, Loughborough LE11 3QF
## **Trustees**
- Mrs E S Allen, Chair
- Mr R Grant (appointed 8.12.20)
- Mr R F Hilton, Vice Chair
- Mrs P A Lenon
- Mrs A Lewis, Vice Chair
- Mr W H Stavert
- Mr B J A Stephens
- Mrs L K Warnes
- Mrs A Whyte (appointed 1.10.20)
- Mrs H Foulkes (resigned 30.9.21)
- Mr A Freeman (appointed 1.10.20) (resigned 30.9.21)
- Mr B K Ross (resigned 30.9.21)
## **Company Secretary**
## **Auditors**
Duncan & Toplis Limited, Statutory Auditor, 3 Princes Court, Royal Way, Loughborough, Leicestershire, LE11 5XR
## **Bankers**
NatWest, 1 Granby Street, Leicester, LE1 6EJ
## **Solicitors**
Russell-Cooke Solicitors, 8 Bedford Row, London, WC1R 4BX
## **Executive Leadership Team - 2020/2021 and current**
- Craig Crowley MBE: Chief Executive
- Jim Robertson: Head of Finance (retired September 2021)
- Karen Draper: Director, Finance & Operations (with effect from October 2021)
- Charlotte Jefferies: People Executive
- Nigel Cleaver: Head of Communications Interpreting
- Mhairi Simpson: Head of Community & Care
- Jayne Oakes: Head of Business & Innovation (with effect from February 2022)
- Christopher Harrison: Services Manager (left November 2021)
- Mr C A Crowley MBE
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## REPORT OF THE TRUSTEES
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We continue
working with hope
and an integral
belief in Deaf, Hard
of Hearing, Deafened
and Deafblind people
who will forever be
at the heart of
all we do.
**----- End of picture text -----**
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The trustees (who are also the directors of Action Deafness for the purposes of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In so far as the trustees are aware:
- There is no relevant audit information of which the charitable company’s auditors are unaware.
- The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to:
## **Auditors**
The auditors, Duncan & Toplis Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.
## **Approved by order of the board of trustees**
- Select suitable accounting policies and then apply them consistently.
Signed for on its behalf by: Mrs E S Allen, Trustee
- Observe the methods and principles in the Charity SORP.
- Make judgements and estimates that are reasonable and prudent.
Date: 24 May 2022
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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22
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## REPORT OF THE INDEPENDENT AUDITORS
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ACTION DEAFNESS**
## **Opinion**
We have audited the financial statements of Action Deafness (the ‘charitable company’) for the year ended 30 September 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 September 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ 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.
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.
- 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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
**23**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:
- The information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.
- The Report of the Trustees has been prepared in accordance with applicable legal requirements.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## REPORT OF THE INDEPENDENT AUDITORS
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us.
- The financial statements are not in agreement with the accounting records and returns.
- Certain disclosures of trustees’ remuneration specified by law are not made.
- We have not received all the information and explanations we require for our audit.
- The trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees’ Responsibilities, 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.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 25**
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Action
Deafness are
incredibly proud of
their amazing colleagues
and stakeholders who
united to successfully
endure the unique
and unforeseen
challenges
presented by
2020-21.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## REPORT OF THE INDEPENDENT AUDITORS
## **Our responsibilities for the audit of the financial statements**
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 a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Trustees and other key management obtained as part of the work required by auditing standards. We have also discussed with the Trustees and other key management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably.
Firstly, the charity is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in judgemental areas of the financial statements such as income recognition, as well as the risk of inappropriate journal entries to manipulate the reported surplus. Audit procedures performed by the engagement team included testing the appropriateness of journal entries and other adjustments, and assessing whether judgements made in making accounting estimates are indicative of any potential bias. We reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with laws and regulations, and we performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Secondly, the charity is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Compliance with the charitable objectives, public benefit, fundraising regulations, data protection, employment law and safeguarding. The company is subject to regular internal and external audits to ensure compliance with these areas.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 27**
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other key management and inspection. This inspection included a review of the external audits conducted within the year for any evidence of noncompliance, reading minutes of meetings of those charged with governance, reviewing any reports made to regulators, in addition to an assessment of the charity’s formal risk assessment. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.
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. The further removed non-compliance with laws and regulations 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. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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 Report of the Independent Auditors.
## **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 auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## Mr N A Kingsley ACA
(Senior Statutory Auditor)
Signed for and on behalf of:
Duncan & Toplis Limited, Statutory Auditor, 3 Princes Court, Royal Way, Loughborough, Leicestershire, LE11 5XR
Date: 27 June 2022
**28**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## FINANCIAL STATEMENTS
## FINANCIAL ACTIVITIES
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2021**
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Note Unrestricted Designated Restricted 2021 Total 2020 Total
funds £ funds £ funds £ funds £ funds £
(as restated)
INCOME AND ENDOWMENTS FROM
Donations and legacies 3 40,860 324,473 - 365,333 80,816
Charitable activities 6
Communications 3,028,133 - - 3,028,133 2,795,453
Community Support 747,614 - - 747,614 602,442
Learning 7,685 - - 7,685 3,652
Other services 30,400 - - 30,400 83,302
Books, DVDs and AD Tech 7,732 - - 7,732 36,623
Kickstart Project - - 64,241 64,241 -
Generation Communication Project - - 95,000 95,000 -
Provision of Services 170,263 - - 170,263 -
Other trading activities 4 6,200 - - 6,200 73,014
Investment income 5 351 - - 351 387
Other income 8,443 - - 8,443 68,608
Total 4,047,681 324,473 159,241 4,531,395 3,744,297
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 29**
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Note Unrestricted Designated Restricted 2021 Total 2020 Total
funds £ funds £ funds £ funds £ funds £
(as restated)
EXPENDITURE ON
Raising funds 7 10,033 - - 10,033 27,856
Charitable activities 8
Communications 2,721,496 - - 2,721,496 2,976,311
Community Support 436,859 - - 436,859 663,745
Learning 3,650 - - 3,650 2,971
Other services 94,830 - - 94,830 19,656
Books, DVDs and AD Tech 9,053 - - 9,053 35,179
Support for Social Groups - - - - 6,924
Business Development 78,573 - - 78,573 11,691
Fundraising 6,461 - - 6,461 1,918
Central Operational Costs 500,005 - - 500,005 -
Professional Fees 75,279 - - 75,279 -
Kickstart Project - - 53,087 53,087 -
Generation Communication Project 5,795 - 95,000 100,795 -
Total 3,942,034 - 148,087 4,090,121 3,746,251
Net gains on investments 2,167 - - 2,167 280
Net income / (Expenditure) 107,815 324,473 11,153 443,441 (1,674)
Transfers between funds 20 25,678 - (25,678) - -
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## FINANCIAL STATEMENTS FINANCIAL ACTIVITIES
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Note Unrestricted Designated Restricted 2021 Total 2020 Total
funds £ funds £ funds £ funds £ funds £
(as restated)
Other recognised gains/(losses)
Gains on revaluation of - - - - 190,100
Pension Scheme
- - - -
Merger with Deaf Direct (39,931)
Actuarial gains on defined 20 - - 20 838
benefit schemes
Net movement in funds 133,512 324,473 (14,525) 443,460 149,333
RECONCILIATION OF FUNDS
Total funds brought forward 106,729 - 1,039,207 1,145,936 (13,397)
as previously reported
- - -
Prior year adjustment - (1,010,000) (1,010,000)
Removal of Oxford building
Total funds carried forward 240,241 324,473 14,682 579,396 135,936
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The notes form part of these financial statements
**31**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## BALANCE SHEET
## **BALANCE SHEET STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021**
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Note Unrestricted Designated Restricted 2021 Total 2020 Total
funds £ funds £ funds £ funds £ funds £
(as restated)
FIXED ASSETS
Tangible assets 15 38,388 - - 38,388 62,742
Investments 16 11,516 - - 11,516 11,905
49,904 - - 49,904 74,647
CURRENT ASSETS
Stocks 17 - - - - 9,053
Debtors 18 539,358 - 12,718 552,076 737,228
Cash at bank 243,236 324,473 2,568 570,277 291,753
782,594 324,473 15,286 1,122,353 1,038,034
CREDITORS
Amounts falling due within one year 19 (583,525) - (604) (584,129) (898,863)
Net current assets 199,069 324,473 14,682 538,224 139,171
Total assets less current liabilities 248,973 324,473 14,682 588,128 213,818
Pension liability 21 - - - - (66,700)
Retirement healthcare 21 (8,732) - - (8,732) (11,182)
benefits obligations
Net assets / (Liabilities) 240,241 324,473 14,682 579,396 135,936
FUNDS 20
Unrestricted funds - - - 564,714 106,729
Restricted funds - - - 14,682 29,207
Total funds 579,396 135,936
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These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 24 May 2022. Signed for on its behalf by: Mrs E S Allen, Trustee
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## FINANCIAL STATEMENTS
## CASH FLOW
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021**
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Note 2021 £ 2020 £
(as restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 1 284,190 73,315
Net cash provided by operating activities 284,190 73,315
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible fixed assets (7,296) (45,585)
Purchase of fixed asset investments (318) (325)
Sale of fixed asset investments 1,597 -
Interest received 33 63
Dividends received 318 324
Net cash used in investing activities (5,666) (45,523)
Change in cash and cash equivalents in the reporting period 278,524 27,792
Cash and cash equivalents at the beginning of the reporting period 291,753 263,961
Cash and cash equivalents at the end of the reporting period 570,277 291,753
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The notes form part of these financial statements
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 33**
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We know that
the world has
changed and that
Action Deafness
must continue to
change with it.
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**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## NOTES
## CASH FLOW STATEMENT
## **RECONCILIATION OF NET INCOME/ (EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|
**OPERATING ACTIVITIES**
|||
|---|---|---|
||**2021 £**
|**2020 £**
as restated|
|Net income/(expenditure) for the
reporting period (as per the
Statement of Financial Activities)|443,441|
(1,674)|
|**Adjustments for:**|||
|Depreciation charges|10,128|
18,035|
|Gain on investments|(2,167)|
(280)|
|Loss on disposal of fxed assets
Interest received|18,483
(33)|
-
(63)|
|Dividends received|(318)|
(324)|
|Decrease/(increase) in stocks|9,053|
(2,358)|
|Decrease/(increase) in debtors|185,152|
(207,015)|
|(Decrease)/increase in creditors|(315,336)|
381,886|
|Difference between pension
charge and cash contributions|(64,213)|
(114,892)|
|**Net cash provided by operations**|**284,190**|**73,315**|
## **ANALYSIS OF CHANGES IN NET FUNDS**
|**ANALYSIS**
2|**OF CHANGES IN**|**NET FUNDS**||
|---|---|---|---|
||**At 1.10.20**
**£**|**Cash fow**
**£**|**At 30.9.21**
**£**|
|**Net cash**||||
|Cash at bank|291,753|278,524|570,277|
||291,753|278,524|570,277|
||**291,753**|**278,524**|**570,277**|
**35**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## FINANCIAL STATEMENTS
## **GENERAL INFORMATION**
Action Deafness is a Private Charitable Company Limited by Guarantee, registered in England and Wales. The charity’s registered number is 1163758 and the Company registration number is 06706042.
The registered office and principal place of business is The Peepul Centre, 28 Orchardson Avenue, Leicester, Leicestershire, LE4 6DP.
The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all years presented unless otherwise stated.
The financial statements cover the individual entity.
The entity constitutes a public benefit entity as defined by FRS 102.
There are no material uncertainties with going concern.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## NOTES
## FINANCIAL STATEMENTS
## **ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
The following specific policies are applied to particular categories of income:
- Donations and gifts are recognised in full in the Statement of Financial Activities when receivable.
- Legacies are recognised in full in the Statement of Financial Activities when the conditions of entitlement, certainty and measurement are satisfied.
- Grants are recognised in the Statement of Financial Activities when the conditions of receipt have been complied with as follows:
- Grants where entitlement is not conditional on delivery of a specific performance by the charitable company, are recognised when the charitable company becomes unconditionally entitled to the grant.
- Revenue grants are carried forward to the extent that the grantor specifies that the grant is for expenditure in future accounting periods. Grants carried forward in this way are accounted for as deferred income.
- Grants from local governments and other agencies have been recognised as above and included as income from activities in furtherance of the charitable company’s objects and have been allocated to the specific activity or project for which they were received.
- Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers cannot be quantified and therefore has not been included in these accounts.
- Investment income is recognised when receivable.
**37**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Raising funds**
Expenditure on raising funds comprises:
- The costs associated with attracting voluntary income.
- The costs of fundraising.
- The costs incurred in generating trading and other income.
## **Charitable activities**
Expenditure on charitable activities comprises those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities as well as costs of an indirect nature necessary to support them.
## **Support costs**
Support costs largely comprise central running costs of the charity.
## **Tangible fixed assets**
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
- Computer equipment - 20% on cost
All assets transferred in from Deaf Direct on 1 October 2019 have been recognised as additions at their net book value at that date, however they continue to be depreciated at 20% of their original cost in order to write off their value over their estimated useful life.
Expenditure on fixed assets not exceeding £500 per asset is included as expenditure within the Statement of Financial Activities in the year in which the assets are purchased.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charitable company is registered with HMRC as a charity and a charitable company for tax purposes, in line with paragraph 1 of schedule 6 of the Finance Act 2010.
The charity is exempt from corporation tax on its charitable activities.
## **Allocation and apportionment of costs**
All costs are allocated between the expenditure categories on the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to particular activities are allocated directly, others are apportioned on the basis of the use of the resources they generate.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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38
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## NOTES
## FINANCIAL STATEMENTS
## **ACCOUNTING POLICIES CONTINUED**
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Designated funds are set up at the discretion of the Trustees.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Investments**
Fixed asset investments are measured at fair value if the shares are publicly traded or can otherwise be measured reliably. The fair value is represented by the bid price at the financial reporting date.
Realised and unrealised gains or losses on investments are accounted for in full within the particular fund of which the investment forms a part.
## **Hire purchase and leasing commitments**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
## **Pension costs and other post-retirement benefits**
The charitable company is part of a multi-employer defined benefit scheme, which is treated as a defined benefit contribution scheme in accordance with FRS102. The charitable company has agreed deficit funding with the Scheme’s administrator. The cost of employer deficit contributions and net interest are recognised in the Statement of Financial Activities; unrealised gains and losses are recognised within Other Comprehensive Income with the Statement of Financial Activities, and the net pension liability (equal to the present value of the agreed deficit funding) is recognised in the Balance Sheet.
The charitable company also contributes to a defined contribution pension scheme. Contributions payable to this scheme are charged to the Statement of Financial Activity in the period to which they relate.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 39**
## **DONATIONS AND LEGACIES**
|**DONATIONS A**
3|**ND LEGACIES**||
|---|---|---|
||**2021 £**|**2020 £**|
|||as restated|
|Donations|325,081|
7,044|
|Legacies|40,252|
73,772|
||**365,333**|**80,816**|
## **OTHER TRADING ACTIVITIES**
|**OTHER TRADING ACTIVIT**
4|**IES**||
|---|---|---|
||**2021 £**|**2020 £**|
|||as restated|
|Sale of stock|200|
-|
|Provision of support to other|-|
52,249|
|Commission|-|
13,766|
|Business Development|6,000|
6,999|
||**6,200**|**73,014**|
## **INVESTMENT INCOME**
|**INVESTMENT INCOME**
5|||
|---|---|---|
||**2021 £**|**2020 £**|
|||as restated|
|Dividends received|318|
324|
|Deposit account interest|33|
63|
||**351**|**387**|
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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40
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## NOTES
## FINANCIAL STATEMENTS
## **INCOME FROM CHARITABLE ACTIVITIES**
|**INCOME FROM CHARITABLE**
6|**ACTIVITIES**|||
|---|---|---|---|
|||**2021 £**|**2020 £**|
||**Activity**||as restated|
|BSL interpreting|Communications|3,028,133|
2,547,881|
|Deaf staff support income|Communications|-|
247,572|
|Community support income|Community Support|747,614|
602,442|
|Course fees|Learning|7,685|
3,652|
|Grants|Other services|30,400|
83,302|
|Books, DVDs and AD Tech sales|Books, DVDs and AD Tech|7,732|
36,623|
|Kickstart income|Kickstart Project|64,241|
-|
|Grants|Generation Communication Project|95,000|
-|
|Additional Services Income|Provision of Services|170,263|
-|
|||**4,151,068**|**3,521,472**|
## **Grants received, included in the above, are as follows:**
Other charitable projects
125,400 83,302
Included within grants above are the following amounts, which are government grants as defined by the SORP:
- £7,120 (2020: £NIL) from Leicestershire County Council Covid-19 Grants.
- £95,000 (2020: £NIL) from The National Lottery Community Fund towards the Generation Communication project.
- £64,241 (2020: £NIL) from The Department for Work and Pensions towards the Kickstart Project.
- £NIL (2020: £3,893) Covid-19 grant from Nottingham City Council.
- £NIL (2020: £25,000) Covid-19 grant from Oxford Council.
- £NIL (2020: £2,977) Covid-19 grant from Nottingham City Council.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 41**
|**RAISING FUNDS**||||||**SUPPORT COSTS**||||
|---|---|---|---|---|---|---|---|---|---|
|7||**2021 £**|**2020**|**£**||9|**Central**|
**Finance**|**IT &**|
||||as restated|||**overheads £**||
**£**|**phones £**|
|**Raising donations and legacies**||||||Communications|-|
-|-|
|Support costs||-|
14,986|||Other Services|2,484|
-|-|
|**Other trading activities**
Bad debts
Communication support||1,365
8,668|
2,199
10,671|||Business Development
Fundraising
Central Operational Costs
Professional Fees|-
6,461
329,937
-|
-
-
72,198
-|-
-
83,496
-|
|**Total**||**10,033**|
**12,870**||||**338,882**|
**72,198**|**83,496**|
|**Aggregate amounts**||**10,033**|
**27,856**|||**Professional**||**Governance**|**Totals**|
||||||||**fees £**|
**costs £**|**£**|
|||||||Communications|-|
41,207|41,207|
|||||||Other Services|-|
-|2,484|
|||||||Business Development|26,523|
-|26,523|
|||||||Fundraising|-|
-|6,461|
|||||||Central Operational Costs|13,212|
-|498,843|
|||||||Professional Fees|33,518|
30,066|63,584|
|**CHARITABLE ACTIVITIES COSTS**|||||||**73,253**|
**71,273**|**639,102**|
|8||||||||||
|*See Note 9|**Direct**
**costs £**|**Support**
**costs* £**|**Totals**
**£**|||||||
|Communications|2,680,289|41,207|
2,721,496|||||||
|Community Support|436,859|-|
436,859|||||||
|Learning|3,650|-|
3,650|||||||
|Other services|92,346|2,484|
94,830|||||||
|Books, DVDs and AD Tech|
9,053|-|
9,053|||||||
|Business Development|52,050|26,523|
78,573|||||||
|Fundraising|-|6,461|
6,461|||||||
|Central Operational costs|
1,162|498,843|
500,005|||||||
|Professional fees|11,695|63,584|
75,279|||||||
|Kickstart Project|53,087|-|
53,087|||||||
|Generation Communication||||||||||
|Project
|100,795
**440986**|-
**639102**|
100,795
**4080088**|||||||
||**,,**|**,**|**,,**|||||||
|**CHARITABLE AC**
8|**TIVITIES CO**|**STS**||
|---|---|---|---|
|*See Note 9|**Direct**
**costs £**|**Support**
**costs* £**|**Totals**
**£**|
|Communications|2,680,289|41,207|
2,721,496|
|Community Support|436,859|-|
436,859|
|Learning|3,650|-|
3,650|
|Other services|92,346|2,484|
94,830|
|Books, DVDs and AD Tech|
9,053|-|
9,053|
|Business Development|52,050|26,523|
78,573|
|Fundraising|-|6,461|
6,461|
|Central Operational costs|
1,162|498,843|
500,005|
|Professional fees|11,695|63,584|
75,279|
|Kickstart Project|53,087|-|
53,087|
|Generation Communication||||
|Project|100,795|-|
100,795|
|**3,440,986**||**639,102**|**4,080,088**|
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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42
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## NOTES
## FINANCIAL STATEMENTS
## **NET INCOME/(EXPENDITURE)**
|**NET INCOME/(EXPENDITURE**
10|||
|---|---|---|
||**2021 £**|**2020 £**|
|||as restated|
|**Net income/(expenditure) is stated**
**after charging/(crediting):**|||
|Auditors remuneration|8,656|
6,013|
|Depreciation - owned assets
Other operating leases|13,167
42,311|
13,202
45,911|
|Defcit on disposal of fxed assets|18,483|
-|
Auditors’ fees of £8,656 (2020: £6,013) which are included within Central Operational Costs include costs for the preparation of the accounts.
## **STAFF COSTS**
|**STAFF COSTS**
12|||
|---|---|---|
||**2021 £**|**2020 £**|
|||as restated|
|Wages and salaries|954,056|
880,115|
|Social security costs|63,936|
58,290|
|Other pension costs|20,561|
6,350|
|**Total**|**1,038,553**|**944,755**|
- One employee had employee benefits between
- £60,000-£70,000 (2020: 1).
- No other employees had employee benefits in excess of £60,000 (2020: Nil).
- On a monthly basis there were 87 (2020: 79) staff spending most of their time on charitable activities.
- Figures on a full-time equivalent basis was 26.8 (2020: 21.4).
- At the end of the year there were 9 Trustees (2020: 12).
Action Deafness’ key management personnel are the Senior Management Team. We use external salary surveys and other tools to enable us to benchmark our salaries against other charities when setting the rates of pay for the Senior Management Team.
## **TRUSTEES’ REMUNERATION AND BENEFITS**
There were no trustees’ remuneration or other benefits for the year ended 30 September 2021 nor for the year ended 30 September 2020.
These rates are approved by the Board of Trustees. Annual increases are normally awarded in October each year, taking into account the rate of inflation and organisational affordability. Annual increases are subject to approval by the Board of Trustees.
The total employment benefits of the key management personnel of the charity were £184,038 (2020: £207,374).
## **Trustees’ expenses**
During the year, travel expenses of £140 (2020: £311) were reimbursed to trustees. No other remuneration, benefits or expenses were paid to trustees during either year.
**43**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**COMPARATIVES FOR THE STATEMENT OF**
13|**FINANCIAL ACTIVITIES**||||
|---|---|---|---|---|
||**Unrestricted**
**funds £**|**Designated**
**funds £**|**Restricted**
**funds £**|**Total funds £**
as restated|
|**Income and Endowments from**|||||
|Donations and legacies|80,816|-|-|80,816|
|**Charitable activities**|||||
|Communications|2,795,453|-|-|2,795,453|
|Community Support|602,442|-|-|602,442|
|Learning|3,652|-|-|3,652|
|Other services|83,302|-|-|83,302|
|Books, DVDs and AD Tech|36,623|-|-|36,623|
|Other trading activities|73,014|-|-|73,014|
|Investment income|387|-|-|387|
|Other income|68,608|-|-|68,608|
||**3,744,297**|**-**|**-**|**3,744,297**|
|**Expenditure on**|||||
|Raising funds|27,856|-|-|27,856|
|Charitable activities|||||
|Communications|2,976,311|-|-|2,976,311|
|Community Support|645,213|-|18,532|663,745|
|Learning|2,971|-|-|2,971|
|Other Services|19,656|-|-|19,656|
|Books, DVDs and AD Tech|35,179|-|-|35,179|
|Support for Social Groups|6,924|-|-|6,924|
|Business Development|11,691|-|-|11,691|
|Fundraising|1,918|-|-|1,918|
||**3,727,719**|**-**|**18,532**|**3,746,251**|
|Net gains on investments|**280**|**-**|**-**|**280**|
|**Net Income / (Expenditure)**|**16,858**|**-**|**(18,532)**|**(1,674)**|
**44 ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## NOTES
## FINANCIAL STATEMENTS
## **COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES CONTINUED**
||**Unrestricted**
**funds £**|**Designated**
**funds £**|**Restricted**
**funds £**|**Total funds £**
as restated|
|---|---|---|---|---|
|**Other recognised gains/(losses)**|||||
|Gains on revaluation of fxed assets
Actuarial gains on defned beneft schemes|105,959
838|-
-|44,210
-|150,169
838|
|**Net movement in funds**|123,655|-|25,678|149,333|
|**Reconciliation of funds**|||||
|Total funds brought forward|(16,926)|-|3,529|(13,397)|
|**Total funds carried forward**|**106,729**|**-**|**29,207**|**135,936**|
## **PRIOR YEAR ADJUSTMENT**
Details of the prior year adjustment are shown in note 28.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 45**
## **TANGIBLE FIXED ASSETS**
|**TANGIBLE FIX**
15|**ED ASSETS**|||
|---|---|---|---|
||**Motor**
**vehicles £**|
**Computer**
**equipment £**|**Totals**
**£**|
|**Cost**||||
|At 1 October 2020|14,954|89,610|104,564|
|Additions|-|7,296|7,296|
|Disposals|-|(21,522)|(21,522)|
|At 30 September 2021|14,954|75,384|90,338|
|**Depreciation**||||
|At 1 October 2020|14,954|26,868|41,822|
|Charge for year|-|13,167|13,167|
|Eliminated on disposal|
-|(3,039)|(3,039)|
|At 30 September 2021|14,954|36,996|51,950|
|**Net book value**||||
|At 30 September 2021|-|38,388|38,388|
|At 30 September 2020|-|62,742|62,742|
## **FIXED ASSET INVESTMENTS**
|**FIXED ASSET I**
16|**NVESTMENTS**||
|---|---|---|
|||**Listed**|
|||**investments £**|
|**Market value**|||
|At 1 October 2020||11,905|
|Additions||318|
|Disposals||(1,597)|
|Revaluations||890|
|At 30 September 2021||11,516|
|**Net book value**|||
|At 30 September 2021||11,516|
|At 30 September 2020||11,905|
||**Listed**|**Totals**|
||**investments £**|**£**|
|**The investment**|||
|**assets are held:**|||
|In the UK|11,517|11,517|
||**11,517**|**11,517**|
|||**Listed**|
|||**investments £**|
|**Cost or valuation at 30**
**2021 is represented by:**|**September**||
|Valuation in 2021||11,516|
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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46
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## NOTES
## FINANCIAL STATEMENTS
|||**STOCKS**|||||**CREDITORS: AMOUNTS FALLING DUE WITHIN**|**CREDITORS: AMOUNTS FALLING DUE WITHIN**|**CREDITORS: AMOUNTS FALLING DUE WITHIN**|
|---|---|---|---|---|---|---|---|---|---|
||17||**2021 £**|**2020**|**£**||**ONE YEAR**
19|**2021 £**|**2020 £**|
|||||as restated|||||as restated|
|Stocks|||-|
9,053|||Trade creditors|205,902|519,645|
||||||||Social security and other taxes|18,158|13,003|
||||||||VAT|245,264|264,007|
||||||||Other creditors|7,056|56,601|
||||||||Accruals and deferred income|107,749|45,607|
|||||||||**584,129**|**898,863**|
||||||||Deferred income has arisen when the company||has|
||||||||received income but does not have full entitlement at the|||
||||||||balance sheet date.|||
||||||||The opening deferred income consisted of:|||
||||||||**•**£4,426 Course fee income|||
||||||||**•**£13,764 Legacy income|||
||||||||**•**£30,000 Grant income|||
||||||||The closing deferred income consists of:|||
||||||||**•**£9,900 Kickstart Project income|||
||||||||**•**£12,620 Covid-19 Grant income from Leicestershire|||
||18|**DEBTORS: AMOUNTS FALLING DUE WITHIN**
**ONE YEAR**|||||County Council
**•**£30,014 Community Support work income
These amounts have been deferred as performance|||
||||**2021 £**|**2020**|**£**||conditions had not been met at the balance sheet date.|||
|||||as restated||||||
|Trade debtors|||507,058|
693,762||||||
|Other debtors|||6,847|
14,210||||||
|Prepayments and accrued income|||38,171|
29,256||||||
||||**552,076**|**737,228**||||||
|||||||||||
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 47**
## **MOVEMENT IN FUNDS**
|**MOVEMENT IN FUNDS**
20|||||
|---|---|---|---|---|
||**At 1.10.20 £**|**Net**|**Transfers**|**At 30.9.21 £**|
|||**movement**|**between**||
|||**in funds £**|**funds £**||
|**Unrestricted funds**|||||
|General fund|175,280|135,828|(113,927)|197,180|
|Fixed Assets|62,742|(31,651)|7,296|38,387|
|Fixed Assets Investment Fund|12,198|1,208|-|13,406|
|Pension Reserve|(77,882)|2,450|66,700|(8,732)|
|Deaf Direct Unrestricted Merger Reserve|(65,609)|-|65,609|-|
|Walsall Deaf Society|-|324,473|-|324,473|
||**106,729**|**432,308**|**25,678**|**564,714**|
|**Restricted funds**|||||
|Over 50’s Club|3,529|-|-|3,529|
|Deaf Direct Merger Reserve|25,678|-|(25,678)|-|
|Kickstart Project|-|11,153|-|11,153|
||**29,207**|**11,153**|**(25,678)**|**14,682**|
|**Total funds**|**135,936**|**443,461**|**-**|**579,396**|
|Net movement in funds, included in the above are as follows:|||||
||**Incoming**
**resources £**|**Resources**
**expended £**|**Gains and**
**losses £**|**Movement**
**in funds £**|
|**Unrestricted funds**|||||
|General fund|4,047,364|(3,912,814)|1,277|135,827|
|Fixed Assets|-|(31,650)|-|(31,650)|
|Fixed Assets Investment Fund|318|-|890|1,208|
|Pension Reserve|-|2,430|20|2,450|
|Walsall Deaf Society|324,473|-|-|324,473|
||**4,372,155**|**(3,942,034)**|**2,187**|**432,308**|
|**Restricted funds**|||||
|Kickstart Project|64,240|(53,087)|-|11,153|
|Generation Communication Project|95,000|(95,000)|-|-|
||**159,240**|**(148,087)**|**-**|**11,153**|
|**Total funds**|**4,531,395**|**(4,090,121)**|**2,187**|**443,461**|
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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48
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## NOTES
## FINANCIAL STATEMENTS
## **MOVEMENT IN FUNDS CONTINUED**
|**Comparatives for movement in funds**|**At 1.10.19 £**|**Net**
**movement**|**Transfers**
**between**|**At 30.9.20 £**|
|---|---|---|---|---|
|||**in funds £**|**funds £**||
|**Unrestricted funds**|||||
|General fund|282,424|(60,468)|(112,285)|109,671|
|Fixed Assets|26,933|(9,776)|45,585|62,742|
|Fixed Assets Investment Fund|11,532|666|-|12,198|
|Pension Reserve|(337,815)|193,233|66,700|(77,882)|
||**(16,926)**|**123,655**|**-**|**106,729**|
|**Restricted funds**|||||
|Over 50’s Club|3,529|-|-|3,529|
|Deaf Direct Merger Reserve|-|25,678|-|25,678|
||**3,529**|**25,678**|**-**|**29,207**|
|**Total funds**|**(13,397)**|**149,333**|**-**|**135,936**|
|**3,529**
**Total funds**
**(13,397)**|**3,529**
**Total funds**
**(13,397)**|**25,678**
**149,333**|**-**
**-**|**29,207**
**135,936**|
|---|---|---|---|---|
|Comparative net movement in funds, included in the above are as follows:|||||
||**Incoming**
**resources £**|**Resources**
**expended £**|**Gains and**
**losses £**|**Movement**
**in funds £**|
|**Unrestricted funds**|||||
|General fund|3,743,912|(3,720,239)|(84,141)|(60,468)|
|Fixed Assets|(1)|(9,775)|-|(9,776)|
|Fixed Assets Investment Fund|386|-|280|666|
|Pension Reserve|-|2,295|190,938|193,233|
||**3,744,297**|**(3,727,719)**|**107,077**|**123,655**|
|**Restricted funds**|||||
|Deaf Direct Merger Reserve|-|(18,532)|44,210|25,678|
|**Total funds**|**3,744,297**|**(3,746,251)**|**151,287**|**149,333**|
**49**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **MOVEMENT IN FUNDS CONTINUED**
## **Designated funds**
- Walsall Deaf Society:
This was created on the merger of Walsall Deaf Society. The purpose of this fund is to benefit the Deaf and Hard of Hearing in the Walsall Community.
## **Restricted funds**
- Over 50’s club:
This was a legacy received specifically to support the activities of an Over 50s Club, supported by Action Deafness.
- Deaf Direct Merger Reserve:
This fund relates to monies transferred from Deaf Direct to Action Deafness following the merger on 1 October 2019. This balance was made up of three specific grants received by Deaf Direct:
- Thursfields £12,000
- Gavin Livingstone memorial fund £8,678
- Screwfix £5,000
## **EMPLOYEE BENEFIT OBLIGATIONS**
## **Defined Benefit Scheme - Leicester & County Mission for Deaf People**
Following the reorganisation in 2015, the charitable company took on the obligations relating to a defined benefit final earnings pension scheme (the Scheme) previously run by Leicester & County mission for Deaf People, which was closed to new members with effect from 1998.
The latest actuarial valuation of the Scheme was prepared as at 30 September 2020. The method used for this valuation was the projected unit credit method and the main assumptions are set out below.
Last year it was agreed that the pension scheme would close after an agreement to pay the sum of £133,400. Of this amount, £66,700 was paid during the year ended 30 September 2020 and the balance of £66,700 was paid during the year ended 30 September 2021 in order to close the Scheme.
The figures for this Scheme are disclosed under Defined Benefit Pension Plans on the next page.
The trustees are satisfied that although these were restricted within Deaf Direct’s accounts, the restrictions on these amounts did not extend to Action Deafness following the merger, and as such these amounts have been transferred to the general fund in the current year.
Kickstart Project: This fund relates to monies received from Department for Work and Pensions (DWP) towards the cost of employing 16-24 year olds who are at risk of long term unemployment.
Generation Communication: This relates to National Lottery Funding towards a project to teach elderly hard of hearing individuals how to use iPads to communicate with their loved ones, particularly during Covid-19.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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50
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## NOTES
## FINANCIAL STATEMENTS
## **EMPLOYEE BENEFIT OBLIGATIONS CONTINUED**
## **Multi-employer defined Benefits Scheme - TPT Retirement Solutions - The Growth Plan**
The charity participates in the above scheme, a multiemployer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a ‘last-man standing arrangement’. Therefore, the charity is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
## **Deficit reduction contributions**
From 1 April 2019 to 31 January 2025: £11,243,000 per annum, payable monthly and increasing by 3% each on 1 April.
Unless a concession has been agreed with the Trustees the term to 31 January 2025 applies. Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
From 1 April 2016 to 30 September 2025: £12,945,440 per annum, payable monthly and increasing by 3% each on 1 April.
From 1 April 2016 to 30 September 2028: £54,560 per annum, payable monthly and increasing by 3% each on 1 April.
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the scheme is in deficit and where the charity has agreed to a deficit funding arrangement the charity recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
The figures for this Scheme are disclosed under Retirement Healthcare Benefits on the next page.
**51**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **EMPLOYEE BENEFIT OBLIGATIONS CONTINUED**
The amounts recognised in the Statement of Financial Activities are as follows:
||**Retirement**|**Retirement**|
|---|---|---|
||**healthcare benefts**||
||**2021 £**|**2020 £**|
|||as restated|
|Current service cost|-|-|
|Net interest from net defned beneft asset/liability|57|119|
|Past service cost|-|-|
|Remeasurements – impact of a change in assumptions|(20)|95|
||**37**|**214**|
|Actual return on plan assets|-|-|
Comparative net movement in funds, included in the above are as follows:
||
**Defned beneft**
**pension plans**|
**Defned beneft**
**pension plans**||**Retirement**
**healthcare benefts**|**Retirement**
**healthcare benefts**|
|---|---|---|---|---|---|
||**2021 £**|**2020**|**£**|**2021 £**|**2020 £**|
||||||as restated|
|Opening defned beneft obligation
Contributions by employer|66,700
-|66,700
-||11,182
(2,487)|13,382
(2,414)|
|Contributions by scheme participants|(66,700)||-|-|-|
|Interest cost|-||-|57|119|
|Oblig other remeasurement|-||-|(20)|95|
||**-**|**66,700**||**8,732**|**11,182**|
The amounts recognised in the Statement of Financial Activities are as follows:
Oblig other remeasurement
|**Retirement**|**Retirement**|
|---|---|
|**healthcare benefts**||
|**2021 £**|**2020 £**|
||as restated|
|20|(95)|
|**20**|**(95)**|
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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52
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## NOTES
## FINANCIAL STATEMENTS
## **EMPLOYEE BENEFIT OBLIGATIONS CONTINUED**
Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
||**2021 £**|**2020 £**|
|---|---|---|
|||as restated|
|Discount rate|0.72%|
0.58%|
## **OTHER FINANCIAL COMMITMENTS**
The charitable company has the following operating lease commitments due as follows:
||**2021 £**|**2020 £**|
|---|---|---|
|In one year|1,221|36,628|
||**1,221**|**36,628**|
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details the deficit contributions agreed between the charity and the TPT Retirement Solutions scheme at each year-end period:
## **Deficit contributions schedule**
|||**30**|**September**
**2021 £**|**30 September**
**2020£**|
|---|---|---|---|---|
|Year|1||2,651|2,487|
|Year|2||2,638|2,561|
|Year|3||2,717|2,638|
|Year|4||919|2,717|
|Year|5||-|919|
The charity must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.
## **RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 30 September 2021.
It is these contributions that have been used to derive the charity’s balance sheet liability.
**53**
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
## **FINANCIAL INSTRUMENTS**
|**FINANCIAL INSTRUMENTS**
24||
|---|---|
|The carrying amount of the charity’s
are as follows:|fnancial instruments|
|**Financial assets at fair value**
**through income and expenditure**
Listed investments|**2021 £**
**2020 £**
11,516
11,905|
## **CONTINGENT ASSETS**
As at the reporting date, the charity has a contingent asset in respect of sale proceeds after professional and selling costs from the disposal of the building in Oxfordshire noted in the comparative information note. However the final amount receivable cannot be quantified at this time.
The incomes, expenses, net gains and net losses attributable to the charity’s financial instruments are summarised as follows:
Net gains and losses (including changes in fair value)
Financial assets measured at fair value through net income/expenditure 890 280 The total dividend income from financial assets that are measured at fair value through the income statement was £318 (2020 - £324).
## **LIMITED BY GUARANTEE**
The charitable company is a private limited company limited by guarantee and consequently does not have share capital. Each member is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021**
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## NOTES
## FINANCIAL STATEMENTS
## **BUSINESS COMBINATIONS**
At 30 September 2019, Walsall Deaf Community Services (WDCS), known as Walsall Deaf Society, announced their intention to cease their operations and transfer them to Action Deafness.
WDCS sold all fixed assets and cleared all other assets and liabilities throughout 2020, and ultimately transferred the residual balance of their bank, £324,473 to Action Deafness in November 2020.
No other assets or liabilities were transferred to Action Deafness.
As the operations of WDCS have wholly ceased, the receipt of this balance has been treated as a designated donation to Action Deafness with the purpose of continuing to assist deaf and hard of hearing individuals in the Walsall area.
## **COMPARATIVE INFORMATION**
In September 2019 Action Deafness merged with Deaf Direct (Charity No: 1105044). All assets of Deaf Direct, except for Deaf Direct’s interest in a freehold property in Oxford, were transferred to Action Deafness. It was discovered that the financial statements for Action Deafness for the comparative year ended 30 September 2020 included this freehold property as an asset of Action Deafness in error. Therefore, the 2020 figures have been restated to remove this building from the comparative balance sheet retrospectively, which has resulted in the value of tangible fixed assets and overall funds reducing by £1,010,000 as at 30 September 2020. The prior year Statement of Financial Activities is not impacted by this adjustment.
**ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 55**
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As the first
lockdown began,
we witnessed
an unparalleled
outpouring of
generosity,
self-sacrifice and
creativity.
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## **56** ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2021 ACTION DEAFNESS **DEAF-LED CHARITY**
Registration no: **06706042**
Registered charity no: **1163758 (England and Wales) / SCO5670 (Scotland)**
## **CONTACT US**
Registered office: **Peepul Centre, Orchardson Avenue, Leicester, LE4 6DP** Tel: **0116 2533200 / +(44) 07947 714040 (24 hour voice/sms number)** Email: **enquiries@actiondeafness.org.uk** Website: **www.actiondeafness.org.uk**
Graphic design by Duncan & Toplis