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2023-09-30-accounts

ACTION DEAFNESS DEAF-LED CHARITY

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ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023
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REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

REGISTRATION NO: 06706042 REGISTERED CHARITY NO: 1163758 (England and Wales) / SC050670 (Scotland)

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ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023
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CONTENTS

STATEMENT FROM CHAIR AND CEO .................... 3 REPORT OF THE TRUSTEES ..... 6

REPORT OF THE INDEPENDENT AUDITORS ............................ 22

FINANCIAL STATEMENTS ......28 FINANCIAL ACTIVITIES ..................................... 28 BALANCE SHEET ............................................................ 32 CASH FLOW .......................................................................... 34

NOTES ................................... 36 CASH FLOW STATEMENT .................................. 36 FINANCIAL STATEMENTS ................................. 37

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 3

STATEMENT FROM CHAIR AND CEO

MESSAGE FROM JACKIE DRIVER OBE, CHAIR

Welcome to the 2022/2023 Audited Accounts Report. As you will see throughout this report, it has been another extremely busy and challenging year at Action Deafness.

The Board is also grateful to all stakeholders who have collaborated with Action Deafness to move the organisation forward.

Although the effects of the pandemic are diminishing, the cost-of-living crisis has presented significant challenges to the lives of our beneficiaries and to our service provision. We have sought to pay our staff team suitable wages to ensure that we have retained and recruited personnel to deliver excellent services.

Through all these challenges, I am immensely proud of all our staff members. The demands on them have been greater than ever.

Action Deafness was established to do work that otherwise would not have been done. Today, our Community & Care and Communications Interpreting services deliver support for Deaf, deafened, hard of hearing and deafblind people in many regions of England. We have endeavoured to address the current period of economic uncertainty through our new Hubs Connect service which provides support directly to the Deaf community.

I would specifically like to thank my predecessor, Emma Allen, for steering AD through the last year to achieve a positive financial performance and ensure a continued high quality of service provision to all our beneficiaries.

Thank you, Jackie

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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STATEMENT FROM CHAIR AND CEO

Although the effects of the pandemic are diminishing, the cost-of-living crisis has presented significant challenges to the lives of our beneficiaries and to our service provision.

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MESSAGE FROM CRAIG CROWLEY MBE, CEO

2022/2023 presented new economic challenges following the demanding post pandemic period. Despite these difficulties, we managed to provide excellent services to growing numbers of beneficiaries.

We hope this report shows how your support is enabling us to adapt in changing times and deliver services to Deaf people who need us.

In 2022/2023, we restructured our Communications Interpreting service which has positioned us well for long term financial sustainability. This re-structure allowed us to accept work in new regions and has diversified our income.

This year was also a time of fast action as we worked to establish five Hubs across our catchment areas. We did this by releasing reserves and designated funds to address loneliness, poor wellbeing and an ‘information gap’ in the Deaf community.

We look forward to expanding Hubs to offer community-based support as we champion the needs of Deaf, Deafblind and Hard of Hearing individuals.

This year we spent £3m to support Deaf people. We have worked hard to reduce inefficiency so that every available pound is focused on the support that we can offer to Deaf people.

I would like to thank every colleague across the AD for their tenacity, professionalism and motivation.

I also want to thank our beneficiaries for choosing us to provide services to you; your experiences and stories shape the work that we do.

If you are reading this as a funder, supporter or contractor - thank you! Craig

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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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 2023. 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

OBJECTIVES AND AIMS

The board of trustee directors approved new vision, mission and values in September 2023 which is part of the organisation’s new 20232026 Strategic Plan:

OUR VISION:

“Deaf people* and people with sensory impairment should have informed choice, complete control of their lives and equal access to services when required.

Deaf people should have maximum equity, choice and control over what services they get and how it’s provided, personalised and tailored to their individual needs.”

(*Denotes Deaf, deaf, Deafblind, Deafened and Hard of Hearing people.)

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AD
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OUR VALUES:

People-centred: Our diverse beneficiaries are at the heart of our decision making.

Integrity: We are accountable to those individuals using our services.

Innovative: We use our lived and professional experience to develop new solutions to existing challenges to D/deaf people’s autonomy.

Leading: We create new and empowering asset based narratives about what it means to be D/deaf.

Evolving: We constantly adapt in order to meet the changing needs of our beneficiaries.

MISSION:

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AD
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AD
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KEY SUPPORTING PRINCIPLES:

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-to-day life, opportunities and decision making.

Ultimately, our people-centred services are underpinned by a strong foundation that values and fosters all aspects relating to an individual’s personal development.

Secondly, we understand that our ability to deliver these ideals is inextricably linked to effective partnerships with stakeholders. This collaboration ensures continual improvement in the quality and value of services we provide in the short and long term.

We have recruited, and are constantly developing, a competent and proactive staff team who are responsive to an individual’s needs whilst remaining focused on maintaining standards and achieving Action Deafness’ objectives.

2022/2023 presented new economic challenges following the demanding post pandemic period.

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ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

REPORT OF THE TRUSTEES

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 are in the East and West Midlands whilst our service catchment areas are also situated in the North East (Durham) and Southern England (Oxfordshire, Wiltshire, Hertfordshire, Brighton and Sussex) regions.

OUR MAIN KEY DELIVERY SERVICES ARE:

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.

COMPANY STATUS

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. We also acquired Scottish registration status in January 2021 and therefore listed as: SCO0750. It is exempt from the use of the word “Limited” within its name.

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.

TRUSTEE DIRECTORS

Trustee Directors, 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 Directors during the year are listed within the Constitutional and Administrative Details section of this report.

The Board has proactively recruited an interim Chair (Jackie Driver OBE) and new trustees following the departure of Ben Stephens, Emma Allen and Roland Hilton. The Board is committed to recruiting a permanent Chair and more Trustees so the number of board members reaches nine by the end of 2024.

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ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

Action Deafness was established to do work that otherwise would not have been done.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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REPORT OF THE TRUSTEES

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). These outcomes have also been measured against the departmental business operating plan 2022-2023.

Since the COVID-19 pandemic, and subsequent lockdowns, the charitable company continues to use hybrid working practices. Management and operational staff members have found this arrangement to be productive.

OUR FIVE-YEAR PLAN TO 2023:

This year (2022/2023) was the fifth and final year of our Five-Year Plan and steady progress has been made to meet the agreed milestones and targets across all three of our priority areas.

A NEW 2023-2026 STRATEGY

Following two successful Strategy Day events in 2022 and 2023, the organisation produced a new 2023-2026 Strategic Plan which was approved by the Board of Trustee Directors in September 2023.

This Strategic Plan (2023-2026) details our commitment to support D/deaf, Deafblind, deafened and hard of hearing people to live complete and fulfilled lives.

Action Deafness strives to:

In addition, six pillars of activity will be used to accomplish this ambition:

This Strategy went live in October 2023. Over the next three years, it will guide our organisation’s activities and initiatives to ensure continued growth and impact.

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THE BIG PICTURE IN 2022/2023

KEY INITIATIVES FOR 2022/2023 PERIOD

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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REPORT OF THE TRUSTEES

OTHER KEY ACHIEVEMENTS

We look forward to fostering strong partnerships and

relationships with an increasing number of stakeholders with the aim of creating a better future for Deaf communities across the UK.

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ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

FINANCIAL REVIEW

FINANCIAL POSITION

Income for the 12 months amounted to £3,265,388 (2022: £3,273,618) and expenditure for the same period amounted to £2,995,282 (2022: £3,321,415). As a result, the surplus for the period (before other recognised gains and losses) was £270,306 (2022 Deficit of: £48,712).

Total funds on hand at the balance sheet amount to net assets of £808,265 (2022: £537,959).

Funds on hand at the Balance Sheet comprise the following:

Free Reserves: £173,721 (2022: £182,754), excluding the pension liability.

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 Trustees 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 break-even budget for 2023-2024. With appropriate budgetary controls, even in the current difficult economic climate, Action Deafness will continue in operation and therefore the trustees believe it is appropriate to prepare these financial statements on a going concern basis.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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REPORT OF THE TRUSTEES

FUTURE DIRECTIVES FOR 2023/2024

1. Oxford Centre for Deaf People - complete sale and disposal.

The sale proceeds are yet to be distributed to the local groups which had a historical and legal interest in the building. Funds allocated to Action Deafness will be invested to develop Oxfordshire services or placed in reserves.

2. Restructure leadership team and staffing to produce a Services Directorate.

An additional senior executive is required to generate additional sales over the next 18 months, starting from January 2024.

5. Continue developing a Complex Need service and ExtraCare proposition for older deaf people by completing financial modelling and site analysis.

AD launched a Deaf ExtraCare at Home service in June 2022. More promotion is required to increase referrals and sales over the course of the next financial year.

Business cases are to be instigated for the potential development and delivery of complex needs service for Deaf people living in the community after being discharged from NHS Trusts.

3. Design, develop and implement new digital infrastructure.

Action Deafness will implement a new CRM to manage Interpreting and Community & Care. AD will also utilise Monday.com to manage operational effectiveness. AD will tender for a company to deliver a new website to allow clients and stakeholders to engage with AD more effectively.

4. Design, develop and implement an allnew service to compliment AD’s flagship services in Communications Interpreting and Community & Care provision.

Following our successful bid to join the Staffordshire Agreement Framework for Deafblind services, Action Deafness is looking to secure other Sensory Services contracts when they are tendered.

Due to the emergence of Hubs Connect, we will develop new project initiatives involving children and young people, especially those who are in need of extra support

Despite the difficulties of 2022/2023, we managed to provide excellent services to growing numbers of beneficiaries.

ACTION DEAFNESS ANNUALREPORT AND STATEMENTS2023

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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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.

ORGANISATIONAL STRUCTURE

Day to day running of the charitable company is delegated to the Chief Executive Officer (CEO) who reports to the Board of Trustee Directors. The CEO operates within a wide-ranging remit as assigned by the Board. Policy states that, where individual Trustee Directors have specific and useful expertise, the CEO and identified Trustee Directors will work collaboratively.

Action Deafness’ business is managed by a Board comprising of all the appointed Trustee Directors. The Board meets formally at least four times a year. Sub groups and ‘Task and Finish’ groups meet on additional occasions when decisions are necessary prior to the next scheduled meeting.

Trustee Directors provide AD’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.

INDUCTION AND TRAINING OF NEW TRUSTEES

As an organisation, AD relies upon guidance issued by the Charity Commission in relation to Trustees’ induction and training.

KEY MANAGEMENT REMUNERATION

Key management personnel of the charitable company includes Trustee Directors and the Executive Leadership Team; consisting of the CEO, Director of Finance & Operations, People’s Executive, Head of Community & Care and Business Development Manager. Between these individuals, the organisation is governed and operated on a day-to-day basis.

All Trustee Directors give of their time freely and no Director 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 in-work performance benchmarks.

DEAF DIRECT

Two Action Deafness Trustee Directors (William Stavert and Penelope Lenon) are presently members of Deaf Direct Board of Trustees along with Barry Ross (Deaf Direct Chair). This Charity is currently dormant following the merger with Action Deafness in 2019. Deaf Direct has been the sole Trustee of Oxford Deaf & Hard of Hearing Centre Building. The building was sold in March 2023 and proceeds of the sale have yet to be shared amongst four local societies (one of which being Action Deafness).

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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Steady
progress has
been made to
meet the agreed
milestones and
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RISK MANAGEMENT

Trustee Directors 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.

Trustee Directors 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.

Trustee Directors, 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) Registration, Cyber Essentials Plus and SORP regulations.

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.

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.

CTION DEAFNESS ANNUAL REPORT ANDSTATEMENTS 2023 FTHE EES

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REFERENCE AND ADMINISTRATIVE DETAILS

REGISTERED COMPANY NUMBER

06706042 (England and Wales)

REGISTERED CHARITY NUMBER

1163758

REGISTERED OFFICE

The Peepul Centre, 28 Orchardson Avenue, Leicester, Leicestershire LE4 6DP

TRUSTEES

COMPANY SECRETARY

AUDITORS

Duncan & Toplis Audit Limited, Statutory Auditor, 3 Princes Court, Royal Way, Loughborough, Leicestershire LE11 5XR

BANKERS

NatWest, 1 Granby Street, Leicester LE1 6EJ

SOLICITORS

This year we spent £3m to support Deaf people.

Russell-Cooke Solicitors, 8 Bedford Row, London WC1R 4BX

EXECUTIVE LEADERSHIP TEAM - 2022/2023 AND CURRENT

The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for reappointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees

Signed for on its behalf by Mrs J Driver, OBE:

Date: 15/06/2024

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REPORT OF THE TRUSTEES

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).

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.

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

In so far as the trustees are aware:

This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006 relating to small companies.

Approved by order of the board of trustees

Signed for on its behalf by Mrs J Driver, OBE:

Date: 15/06/2024

ACTION DEAFNESS ANNUALREPORT AND STATEMENTS2023

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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 2023 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:

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.

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.

EMPHASIS OF MATTER

As disclosed in note 23 to the financial statements, the charitable activities of another charity called Deaf Direct were merged into Action Deafness in October 2019. As part of the merger agreement, Action Deafness is entitled to recover certain costs incurred towards the running of a building in Oxford, previously operated by Deaf Direct, in addition to a share of the net sale proceeds once the building is sold.

The building was sold in March 2023, and the charity has recognised income of £444,661 in the financial statements to 30 September 2023, in relation to reimbursement of costs incurred towards the running of the Oxford building, as disclosed in note 6 .

Action Deafness received their share of the net sale proceeds of the property which amounted to £1,255,962. Recovery of this further amount, however, was contingent upon the four recipient charities agreeing their respective shares, and the Charity

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Commission consenting to the distribution of the proceeds to the charities.

The Charity Commission consent to the distribution of the proceeds was obtained in December 2023, and the final split of the proceeds between the four recipient charities was agreed on 3rd June 2024, after the balance sheet date. For this reason, the charity’s share of the net sale proceeds of the property disposal was not considered to be virtually certain at the balance sheet date, and therefore the trustees consider this further amount to be a contingent asset for the purposes of these financial statements.

Our opinion is not modified with respect to this matter.

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.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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REPORT OF THE INDEPENDENT AUDITORS

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OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

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:

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.

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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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud are set out 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

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 27

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.

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 FCA (Senior Statutory Auditor) for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

3 Princes Court, Royal Way, Loughborough, Leicestershire LE11 5XR

Date: 18/06/2024

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ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

FINANCIAL STATEMENTS FINANCIAL ACTIVITIES

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2023

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Note Unrestricted Walsall Deaf Designated £
funds £ Society £
INCOME AND ENDOWMENTS FROM
Donations and legacies 3 3,609 - -
Charitable activities 5
Communications 1,583,759 - -
Community support 939,127 - -
Learning 10,501 - -
Other services 4,969 - -
Books, DVDs and AD tech 35,521 - -
Kickstart project - - -
Provision of services 219,400 - -
Investment income 4 2,464 - -
Other income 6 21,377 - 444,661
Total 2,820,727 - 444,661
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The notes form part of these financial statements

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 29

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Note Unrestricted Walsall Deaf Designated £
funds £ Society £
EXPENDITURE ON
Raising funds 7 12,144 - -
Charitable activities 8
Communications 1,578,111 - -
Community support 806,071 - 8,822
Learning 254 - -
Other services 46,946 15,421 4,542
Business development 2,472 - -
Fundraising 129 - -
Central operational costs 364,487 - 126,692
Professional fees 28,124 - 835
Kickstart project - - -
Total 2,838,738 15,421 140,891
Net gains on investments 200 - -
Net income / (Expenditure) (17,811) (15,421) 303,770
Transfers between funds 18 3,529 - -
Other recognised gains / (losses)
- - -
Actuarial gains on defined benefit schemes
Net movement in funds (14,282) (15,421) 303,770
Reconciliation of funds
Total funds brought forward 224,725 309,473 -
Total funds carried forward 210,443 294,052 303,770
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The notes form part of these financial statements

30 ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

FINANCIAL STATEMENTS FINANCIAL ACTIVITIES

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2023 (CONTINUED)

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Note Restricted 2023 Total 2022 Total
funds £ funds £ funds £
INCOME AND ENDOWMENTS FROM
Donations and legacies 3 - 3,609 5,024
Charitable activities 5
Communications - 1,583,759 2,142,859
Community support - 939,127 879,355
Learning - 10,501 425
Other services - 4,969 7,938
Books, DVDs and AD tech - 35,521 6,901
Kickstart project - - 120,888
Provision of services - 219,400 101,407
Investment income 4 - 2,464 482
Other income 6 - 466,038 8,339
Total - 3,265,388 3,273,618
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The notes form part of these financial statements

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 31

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Note Restricted 2023 Total 2022 Total
funds £ funds £ funds £
EXPENDITURE ON
Raising funds 7 - 12,144 12,908
Charitable activities 8
Communications - 1,578,111 1,930,627
Community support - 814,893 668,971
Learning - 254 669
Other services - 66,909 12,855
Business development - 2,472 21,849
Fundraising - 129 358
Central operational costs 232 491,411 477,056
Professional fees - 28,959 64,313
Kickstart project - - 131,809
Total 232 2,995,282 3,321,415
Net gains / (losses) on investments - 200 (915)
Net income / (Expenditure) (232) 270,306 (48,712)
Transfers between funds 18 (3,529) - -
Other recognised gains / (losses)
Actuarial gains on defined benefit schemes - - 7,274
Net movement in funds (3,761) 270,306 (41,438)
Reconciliation of funds
Total funds brought forward 3,761 537,959 579,397
Total funds carried forward - 808,265 537,959
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The notes form part of these financial statements

32

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

FINANCIAL STATEMENTS BALANCE SHEET

BALANCE SHEET STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2023

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Note Unrestricted Walsall Deaf Designated £
funds £ Society £
FIXED ASSETS
Tangible assets 14 23,447 - -
Investments 15 10,801 - -
34,248 - -
CURRENT ASSETS
Debtors 16 461,947 - -
Cash at bank (48,034) 294,051 303,771
413,940 294,051 303,771
CREDITORS
Amounts falling due within one year 17 (237,623) - -
Net current assets 176,317 294,051 303,771
Total assets less current liabilities 210,565 294,051 303,771
Retirement healthcare benefits obligations 19 (122) - -
Net assets / (Liabilities) 210,443 294,051 303,771
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The notes form part of these financial statements

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 33

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Note Restricted 2023 Total 2022 Total
funds £ funds £ funds £
FIXED ASSETS
Tangible assets 14 - 23,447 29,362
Investments 15 - 10,801 10,601
- 34,248 39,963
CURRENT ASSETS
Debtors 16 - 461,974 648,690
Cash at bank 5,123 554,911 179,582
5,123 1,016,885 828,272
CREDITORS
Amounts falling due within one year 17 (5,123) (242,746) (330,069)
Net current assets - 774,139 498,203
Total assets less current liabilities - 808,387 538,166
Retirement healthcare benefits obligations 19 - (122) (207)
Net assets / (Liabilities) - 808,265 537,959
FUNDS
Unrestricted funds 18 - 808,265 534,198
Restricted funds 18 - - 3,761
Total funds 808,265 537,959
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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 15/06/2024

Signed for on its behalf by: Mrs J Driver OBE, Trustee

34

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

FINANCIAL STATEMENTS CASH FLOW

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2023

Note 2023 £ 2022 £
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 1 379,535 (386,982)
Net cash provided by / (used in) operating activities 379,535 (386,982)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible fxed assets (6,670) (4,195)
Interest received 2,084 155
Dividends received 380 327
Net cash used in investing activities (4,206) (3,713)
Change in cash and cash equivalents in the reporting period 375,329 (390,695)
Cash and cash equivalents at the beginning of the reporting period 179,582 570,277
Cash and cash equivalents at the end of the reporting period 554,911 179,582

The notes form part of these financial statements

ACTION DEAFNESS ANNUALREPORT AND STATEMENTS2023

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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36
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NOTES

CASH FLOW STATEMENT

RECONCILIATION OF NET INCOME / 1 (EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ANALYSIS OF CHANGES IN NET FUNDS

2 At 1.10.22 £ Cash flow £ At 30.9.23 £ Net cash Cash at bank 179,582 375,329 554,911 179,582 375,329 554,911

2023 £
2022 £
Net income / (expenditure) for the
270,306
(48,712)
reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
12,500
13,221
(Gain)/losses on investments
(200)
915
Loss on disposal of fxed assets
Interest received
(2,084)
(155)
Dividends received
(380)
(327)
Decrease/(increase) in debtors
186,716
(96,613)
Decrease in creditors
(87,323) (254,060)
Difference between pension
-
(1,251)
charge and cash contributions
Net cash provided by/
379,535 (386,982)
(used in) operations		 At 1.10.22 £
Cash fow £
At 30.9.23 £
Net cash
Cash at bank
179,582
375,329
554,911
179,582
375,329
554,911		 At 1.10.22 £
Cash fow £
At 30.9.23 £
Net cash
Cash at bank
179,582
375,329
554,911
179,582
375,329
554,911

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 37

FINANCIAL STATEMENTS

GENERAL INFORMATION

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1
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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.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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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:

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.

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:

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.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 39

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.

Property, plant and equipment

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 1st 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.

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.

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.

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 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 2023

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NOTES

FINANCIAL STATEMENTS

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DONATIONS AND LEGACIES INVESTMENT INCOME
3 4
2023 £ 2022 £ 2023 £ 2022 £
Donations 3,609 3,801 Dividends received 380 327
Legacies - 1,223 Deposit account interest 2,084 155
3,609 5,024 2,464 482
----- End of picture text -----

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 41

INCOME FROM CHARITABLE ACTIVITIES

INCOME FROM CHARITABLE
5		 ACTIVITIES
Activity 2023 £ 2022 £
Course fees Communications 219 -
BSL interpreting Communications 1,583,540 2,142,859
Community support income Community support 924,580 859,355
Grants Community support - 20,000
Additional services income Community support 14,547 -
Course fees Learning 10,501 425
Grants Other services 4,969 7,938
Books, DVDs and AD Tech sales Books, DVDs and AD Tech 35,521 6,901
Kickstart income Kickstart project - 120,888
Additional services income Provision of services 219,400 101,407
2,793,277 3,259,773

Included within income from charitable activities above are the following amounts, which are government grants as defined by the SORP:

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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42
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NOTES

FINANCIAL STATEMENTS

OTHER INCOME

OTHER INCOME
6
2023 £ 2022 £
Room hire - 200
Other income 21,377 8,139
Exceptional items 444,661 -
466,038 8,339

RAISING FUNDS

RAISING FUNDS
7
2023 £ 2022 £
Other trading activities
Communication support 12,144 12,908
12,144 12,908

The Clawback

The exceptional items of £444,661 (2022: £NIL) noted above is in respect of a clawback of costs incurred between 2019 and 2023 in relation to the running, and sale of a building in Oxford which formerly belonged to Deaf Direct. The building was sold in the year, and the charity expects to receive a share of the net sale proceeds, as detailed in Note 23 .

CHARITABLE ACTIVITIES COSTS

CHARITABLE AC
8		 TIVITIES C OSTS
*See Note 9 Direct
costs £		 Support
costs* £		 Totals
£
Communications 1,545,569 32,542 1,578,111
Community support 795,733 19,160 814,893
Learning 254 - 254
Other services 56,791 10,118 66,909
Business development 1,679 793 2,472
Fundraising 119 10 129
Central operational costs
1,864		 489,547 491,411
Professional fees 10,032 18,927 28,959
2,412,041 571,097 2,983,138

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 43

SUPPORT COSTS

SUPPORT CO
9		 STS
Central
Finance		 IT &
Communications overheads £
9,123
£

2,085		 phones £
7,183
Community support 15,242
-		 3,918
Other services 10,008
-		 110
Business development -
-		 -
Fundraising
Central operational costs		 10
368,392
-

40,072		 -
38,451
Professional fees -
-		 -
402,775
42,157		 49,662
Professional Governance Totals
fees £
costs £		 £
Communications -
14,151		 32,542
Community support -
-		 19,160
Other services -
-		 10,118
Business development
Fundraising		 793
-
-

-		 793
10
Central operational costs
Professional fees		 (850)
18,759
43,482

168		 489,547
18,927
18,702
57,801		 571,097

NET INCOME/(EXPENDITURE)

NET INCOME/(EXPENDITURE
10		 )
2023 £ 2022 £
Net income/(expenditure) is stated
after charging/(crediting):
Auditors remuneration 17,348 15,144
Depreciation - owned assets 12,585 13,221
Other operating leases 20,626 24,600

Auditors’ fees of £17,348 (2022: £15,144) which are included within Central Operational Costs include costs for the preparation of the accounts and other advisory services in relation to VAT.

TRUSTEES’ REMUNERATION AND BENEFITS

There were no trustees’ remuneration or other benefits for the year ended 30 September 2023 nor for the year ended 30 September 2022.

Trustees’ expenses

During the year, travel expenses of £NIL (2022: £Nil) were reimbursed to trustees. No other remuneration, benefits or expenses were paid to trustees during either year.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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NOTES

FINANCIAL STATEMENTS

STAFF COSTS

STAFF COSTS
12
2023 £ 2022 £
Wages and salaries 1,197,005 1,074,533
Social security costs 85,382 75,158
Other pension costs 26,434 23,863
1,308,821 1,173,554

One employee had employee benefits between £60,000£70,000 (2022: 1).

No other employees had employee benefits in excess of £60,000 (2022: Nil).

On a monthly basis there were 87 (2022: 80) staff spending most of their time on charitable activities.

Figures on a full-time equivalent basis were 37 (2022: 40). At the end of the year there were 9 Trustees (2022: 9).

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.

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 £233,629 (2022: £182,289).

ACTION DEAFNESS ANNUALREPORT AND STATEMENTS2023

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

46

NOTES

FINANCIAL STATEMENTS

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

COMPARATIVES FOR THE STAT
13		 EMENT OF FINANCIAL A CTIVITIES
Unrestricted
funds £		 Walsall Deaf
Society £		 Designated
£		 Restricted
funds £		 Total funds
£
Income and Endowments from
Donations and legacies 5,024 - - - 5,024
Charitable activities
Communications 2,142,859 - - - 2,142,859
Community support 859,355 - - 20,000 879,355
Learning 425 - - - 425
Other services 7,938 - - - 7,938
Books, DVDs and AD Tech 6,901 - - - 6,901
Kickstart project - - - 120,888 120,888
Provision of services 101,407 - - - 101,407
Investment income 482 - - - 482
Other income 8,339 - - - 8,339
Total 3,132,730 - - 140,888 3,273,618
Expenditure on
Raising funds 12,908 - - - 12,908
Charitable activities
Communications 1,930,627 - - - 1,930,627
Community support 648,971 - - 20,000 668,971
Learning 669 - - - 669
Other services 12,855 - - - 12,855
Business development 21,849 - - - 21,849
Fundraising 358 - - - 358
Central operational costs 477,056 - - - 477,056
Professional fees 64,313 - - - 64,313
Kickstart project - - - 131,809 131,809
Total 3,169,606 - - 151,809 3,321,415

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 47

Unrestricted
funds £		 Walsall Deaf
Society £		 Designated
£		 Restricted
funds £		 Total funds
£
Net gains/(losses) on investments (915) - - - (915)
Net income/(expenditure) (37,791) - - (10,921) (48,712)
Transfers between funds 15,000 (15,000) - - -
Other recognised gains/(losses)
Actuarial gains on defned beneft schemes 7,274 - - - 7,274
Net movement in funds (15,517) (15,000) - (10,921) (41,438)
Reconciliation of funds
Total funds brought forward 240,242 324,473 - 14,682 579,397
Total funds carried forward 224,725 309,473 - 3,761 537,959

TANGIBLE FIXED ASSETS

TANGIBLE FIX
14		 ED ASSETS
Motor
vehicles £
Computer
equipment £		 Totals
£
Cost
At 1 October 2022 14,954 79,579 94,533
Additions - 6,670 6,670
At 30 September 2023 14,954 86,249 101,203
Depreciation
At 1 October 2022 14,954 50,217 65,171
Charge for year - 12,585 12,585
At 30 September 2023 14,954 62,802 77,756
Net book value
At 30 September 2023 - 23,447 23,447
At 30 September 2022 - 29,362 29,362

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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NOTES

FINANCIAL STATEMENTS

FIXED ASSET INVESTMENTS

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

FIXED ASSET INVESTME
15		 NTS
Listed
Market value investments £
At 1 October 2022 10,601
Revaluations 200
At 30 September 2023 10,801
Net book value
At 30 September 2023 10,801
At 30 September 2022 10,601
DEBTORS: AMOUNTS FALLI
ONE YEAR
16		 NG DUE WI THIN
2023 £ 2022 £
Trade debtors 362,966 611,104
Other debtors 10,779 2,510
Prepayments and accrued income 88,229 35,076
461,974 648,690

The investment assets are held:

Listed Totals
investments £ £
In the UK 10,801 10,801
10,801 10,801

Cost or valuation at 30 September 2023 is represented by:

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Listed
investments £
Valuation in 2023 10,801
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49

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS F
ONE YEAR
17		 ALLING DUE WITHIN
2023 £ 2022 £
Trade creditors 95,289 196,925
Social security and other taxes 23,854 21,484
VAT 36,536 51,611
Other creditors 9,844 6,481
Accruals and deferred income 77,223 53,568
242,746 330,069

Deferred income arises when the company has received income but does not have full entitlement at the balance sheet date.

The opening deferred income consisted of:

The closing deferred income consists of:

These amounts have been deferred as performance conditions had not been met at the balance sheet date.

50 ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

NOTES

FINANCIAL STATEMENTS

MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
18
At 1.10.22 £ Net Transfers At 30.9.23 £
movement between
in funds £ funds £
Unrestricted funds
General fund 182,754 (5,890) (3,143) 173,721
Fixed Assets 29,361 (12,586) 6,672 23,447
Fixed Assets Investment Fund 12,817 580 - 13,397
Pension Reserve (207) 85 - (122)
Walsall Deaf Society 309,473 (15,422) - 294,051
Oxford Clawback Fund - 303,771 - 303,771
534,198 270,538 3,529 808,265
Restricted funds
Over 50’s Club 3,529 - (3,529) -
Kickstart Project 232 (232) - -
3,761 (232) (3,529) -
Total funds 537,959 270.306 - 808,265
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 2,820,347 (2,826,237) - (5,890)
Fixed Assets - (12,586) - (12,586)
Fixed Assets Investment Fund 380 - 200 580
Pension Reserve - 85 - 85
Walsall Deaf Society - (15,422) - (15,422)
Oxford Clawback Fund 444,661 (140,890) - 303,771
3,265,388 (2,995,050) 200 270,538
Restricted funds
Kickstart Project - (232) - (232)
Total funds 3,265,388 (2,995,282) 200 270,306

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 51

Comparatives for movement in funds At 1.10.21 £ Net
movement		 Transfers
between		 At 30.9.22 £
in funds £ funds £
Unrestricted funds
General fund 197,181 (25,232) 10,805 182,754
Fixed Assets 38,387 (13,221) 4,195 29,361
Fixed Assets Investment Fund 13,406 (589) - 12,817
Pension Reserve (8,732) 8,525 - (207)
Walsall Deaf Society 324,473 - (15,000) 309,473
564,715 (30,517) - 534,198
Restricted funds
Over 50’s Club 3,529 - - 3,529
Kickstart Project 11,153 (10,921) - 232
14,682 (10,921) - 3,761
Total funds 579,397 (41,438) - 537,959

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 3,132,404 (3,157,636) - (25,232)
Fixed Assets - (13,221) - (13,221)
Fixed Assets Investment Fund 326 - (915) (589)
Pension Reserve - 1,251 7,274 8,525
3,132,730 (3,169,606) 6,359 (30,517)
Restricted funds
Kickstart Project 120,888 (131,809) - (10,921)
Eveson Grant 20,000 (20,000) - -
140,888 (151,809) - (10,921)
Total funds 3,273,618 (3,321,415) 6,359 (41,438)

52

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

NOTES

FINANCIAL STATEMENTS

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.

Oxford Clawback :

Monies received form the sale of the Oxford building which has been set aside for activities in and around the Oxford area.

Restricted funds

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.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 53

EMPLOYEE BENEFIT OBLIGATIONS

Multi-employer defined Benefits Scheme - TPT Retirement Solutions - The Growth Plan

The charity participates in the scheme, a multi-employer scheme which provides benefits to some 638 nonassociated 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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum, payable monthly.

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 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:

From 1 April 2019 to 30 September 2025: £11,243,000 per annum, payable monthly and increasing by 3% each on 1st 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.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

54

NOTES

FINANCIAL STATEMENTS

EMPLOYEE BENEFIT OBLIGATIONS continued

The amounts recognised in the Statement of Financial Activities are as follows:


Activities are as follows:
Retirement
healthcare benefts
2023 £ 2022 £
Current service cost - -
Net interest from net defned
beneft asset/liability
Past service cost
Remeasurements - impact of
a change in assumptions		 10
-
-		 87
-
(12)
Remeasurements - amendments
to the contribution schedule		 - (7,262)
10 (7,216)
Actual return on plan assets - -

Changes in the present value of the defined benefit obligation are as follows:


Opening defned beneft obligation
Contributions by employer
Retirement
healthcare benefts
2023 £
2022 £
207
8,732
(95)
(1,309)
Retirement
healthcare benefts
2023 £
2022 £
207
8,732
(95)
(1,309)
Interest cost 10 58
Other remeasurement - (7,274)
122 207

Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):

2023 £ 2022 £
Discount rate 5.88% 6.00%

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
2023 £		 30 September
2022 £
Year 1 95 95
Year 2 32 95
Year
Year		 3
4		 -
-		 32
-

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.

It is these contributions that have been used to derive the charity’s balance sheet liability.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 55

OTHER FINANCIAL COMMITMENTS

OTHER FINANCIAL COMMITMENTS
20		 OTHER FINANCIAL COMMITMENTS
20		 OTHER FINANCIAL COMMITMENTS
20
The charitable company has the following operating
lease commitments due as follows:
2023 £ 2022 £
In one year 1,638 1,638
1,638 1,638

FINANCIAL INSTRUMENTS

The carrying amount of the charity’s financial instruments are as follows: 2023 £ 2022 £ Financial assets at fair value through income and expenditure Listed investments 10,801 10,601 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 200 (915) The total dividend income from financial assets that are measured at fair value through the income statement was £380 (2022 - £327).

RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 30 September 2023.

ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023

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NOTES

FINANCIAL STATEMENTS

CONTINGENT ASSETS

LIMITED BY GUARANTEE

Share of sale proceeds

The charitable activities of Deaf Direct (registered charity company number: 04802357) were merged into Action Deafness in October 2019, and as part of the merger agreement, Action Deafness was entitled to a share of the net sales proceeds following the sale of a building in Oxford, once all professional and legal fees are covered. In addition, Action Deafness is entitled to reimbursement of costs incurred towards the running of the building and associated legal and professional costs until the date of the property sale.

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.

The building was sold in March 2023, and the charity has recognised income of £444,661 in the financial statements to 30 September 2023, in relation to reimbursement of costs incurred towards the running of the Oxford building, as disclosed in note 6 .

Action Deafness received their share of the net sale proceeds of the property which amounted to £1,255,962. Recovery of this further amount, however, was contingent upon the four recipient charities agreeing their respective shares, and the Charity Commission consenting to the distribution of the proceeds to the charities.

The Charity Commission consent to the distribution of the proceeds was obtained in December 2023, and the final split of the proceeds between the four recipient charities was agreed on 3rd June 2024, after the balance sheet date. For this reason, the charity’s share of the net sale proceeds of the property disposal was not considered to be virtually certain at the balance sheet date, and therefore the trustees consider this further amount to be a contingent asset for the purposes of these financial statements.

The funds received will be used in accordance with the terms of the Charity Commission’s consent.

ACTION DEAFNESS ANNUALREPORT AND STATEMENTS2023 B7

58 ACTION DEAFNESS ANNUAL REPORT AND STATEMENTS 2023 ACTION DEAFNESS DEAF-LED CHARITY

Registration no: 06706042

Registered charity no: 1163758 (England and Wales) / SCO5670 (Scotland)

CONTACT US

Registered office: The 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

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