**REGISTERED COMPANY NUMBER: 06706042 (England and Wales) REGISTERED CHARITY NUMBER: 1163758** ## **REPORT OF THE TRUSTEES AND** ## **FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **FOR** ## **ACTION DEAFNESS** Duncan & Toplis Audit Limited, Statutory Auditor 3 Princes Court Royal Way Loughborough Leicestershire LE11 5XR **ACTION DEAFNESS** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **Page** |**Report of the Trustees**|1|to|8| |---|---|---|---| |**Statement of Trustees' Responsibilities**||9|| |**Report of the Independent Auditors**|10|to|12| |**Statement of Financial Activities**|13|to|14| |**Balance Sheet**|15|to|16| |**Cash Flow Statement**||17|| |**Notes to the Cash Flow Statement**||18|| |**Notes to the Financial Statements**|19|to|34| **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2024** 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 2024. 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). Page 1 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The board of trustee directors approved new vision, mission and values in September 2024 which is part of the organisation's new 2023-2026 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 they are provided. These services should be personalised and tailored to their individual needs." * Denotes Deaf, Deafblind, Deafened and Hard of Hearing people of all ages. ## **Our Values:** **People-centred:** Our diverse beneficiaries are at the heart of our decision making. **Integrity:** We are accountable to our beneficiaries. **Innovative:** We use our lived and professional experience to develop new solutions to existing challenges to Deaf people's autonomy. **Leading:** We create new and empowering narratives about what it means to be Deaf. **Evolving:** We constantly adapt to meet the changing needs of our beneficiaries. ## **Mission:** - Maximising opportunities for beneficiaries to live the life they choose. - Improving access to services by promoting and delivering effective cultural and communication solutions. - Ensuring the organisation's sustainability through growth, partnership and diversification. - Being the 'go-to' Deaf-led provider of service delivery and Hubs Connect throughout current, planned and future catchment areas within the UK. ## **Key Supporting Principles:** - Delivering high quality services. - Pursuing growth and innovation. - Investing in our staff and continuing to be a great place to work. - staining financial security. - Ensuring strong leadership, management and governance. - Increasing and expanding our profile within the health and social care sector. ## **Our Objectives:** **Digitalisation:** Develop accessible platforms and software to efficiently meet the needs of our beneficiaries. **Growth:** Develop and expand current services and embrace opportunities for our beneficiaries. **Diversity:** Diversify services in areas of identified beneficiary need. **Children/Youth & Families:** Develop new services which meet the needs of young beneficiaries and their families or carers. **Wellbeing:** Evolve services to better address mental health inequities for our beneficiaries. **Cultural:** Expand current work celebrating and enhancing the rich and diverse heritage of D/deaf culture. **Learning:** Enhance Action Deafness' learning using insight from inside and outside the organisation. ## **Our Outcomes:** - Provide information, advice, guidance and support to reduce inequality. Page 2 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2024** - Provide specialist, accessible services to prevent loneliness. - Provide person-centred support to promote independence. - Establish projects and secure funding to meet local and regional needs. Firstly, as a service provider, we seek to offer creative and diverse services in response to identified wishes, aspirations and requirements of the people we serve and support. With an understanding of 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 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. These team members are responsive to an individual's needs while 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 East and West Midlands whilst our service catchment areas include Durham, Oxfordshire, Wiltshire, Hertfordshire, Brighton and Sussex. Our main key delivery services are: - Community & Care - Communications Interpreting - Sensory Services - 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. ## **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 2022 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 specialist and accessible 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. Following the resignations of Penelope Lenon and Jackie Driver (Chair) in September 2024 and Lucy Warnes in December 2024, the charitable company remains committed to appointing three new Trustee Directors to the Board to reach nine members. Page 3 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **ACHIEVEMENT AND PERFORMANCE HIGHLIGHTS OF ACHIEVEMENT AND PERFORMANCE Achievements and Performance** This review provides assurance that Action Deafness' strategic objectives are being delivered as per Action Deafness' revised FourYear Strategy 2023-2027 (approved by the Board of Trustees in September 2023 and again 2024). ## **Our New Four-Year Plan to 2027:** This year (2023/2024) was the originally the first of our three year strategic plan 2023-2026. The strategy was later changed to Four-Year Plan in September 2024. The first year has shown progress with agreed milestones and targets across all three of our priority areas. This revised Strategic Plan (2023-2027) details our commitment to support Deaf, Deafblind, deafened, hard of hearing people and people with a sensory loss to live complete and fulfilled lives. Action Deafness strives to: - Reduce inequalities by providing information, advice, guidance and support to beneficiaries. - Provide information and tailored support to promote increasing independence. - Establish projects and secure funding in order to meet local and regional needs. In addition, six pillars of activity will be used to accomplish this ambition: - Delivering high quality services. - Pursuing growth and innovation. - Investing in our staff and continuing to be a great place to work. - Sustaining financial security. - Ensuring strong governance, leadership and management. - Expanding our profile within the health and social care sector. ## **The Big Picture in 2023-2024:** - Created new directorates to incorporate service delivery and corporate (commercial) to kick start service provision and revenue deliveries. - Restructured the Community & Care Department and created new Sensory Service. - Continued to develop new initiatives and implement new partnerships/joint ventures with Deaf charities, organisations and stakeholders. - Maintained formal partnership with Deaf & Hearing Trailblazers for joint hosting of the UK Deaf Leadership Summit live webinars and developing new action-centred leadership with AD staff. - Sold the Oxford Deaf & Hard of Hearing Centre to Pembroke College (University of Oxford) in Spring 2023 and distributed the proceedings to local societies in Spring 2024. - Diversified income generation, service delivery and business activities. - Maintained and consolidated 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. Ensured compliance with policies and procedures in Risk Register, Business Continuation Plan, Safeguarding and UKGDPR. ## **Key Initiatives for 2023/2024 Period:** - Successfully completed the pilot project scheme with Royal School for the Deaf Derby and Quad Derby to deliver youth activities during April and July 2024. - Successfully set up a new Deaf Lottery UK scheme with Gatherwell to provide a Deaf lottery and generate income for AD. - - Launched the new Oxford Deaf Festival Project to focus on celebrating Deaf culture and heritage with technology in mind. This is to take place in September 2025. - Successfully agreed partnership with DEAFvibe to develop Hubs and other new service development initiatives in Staffordshire. - Delivered Equipment Services in Leicester City. Page 4 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024** - Thanks to financial support from Eveson Trust, AD delivered Hubs in Worcestershire and Herefordshire - Expanded Community & Care Services in the North, the Midlands and the South. - Worked towards the approved plans for the development of forensic services in Warwickshire. - Explored and developed new initiatives in deafblind services, sensory services, care services and forensic support provision through a series of tender applications. - Established development opportunities by meeting Chief Executives of NHS & ICB Trusts to optimize Shared Business Services (SBS), NEPO (North East Procurement Organisation) and ESCC (East Sussex County Council) framework participation. - Successfully delivered stand-alone 24/7 Personal Care and launched new ExtraCare Service for older Deaf people at Home under Community & Care Services - Explored new registered services in other geographical areas - Continued to explore further initiatives in digitalisation, external service and care management support via joint venture arrangements. - Revised promotions and marketing initiatives and developed new Branding Strategy for Action Deafness. ## **Stakeholders and Supporters:** We extend our appreciation to the trusts, foundations, local authorities, health authorities and other stakeholders for their positive assistance and collaboration during 2023-2024: We look forward to fostering strong partnerships and relationships with an increasing number of organisations with the aim of creating a better future for Deaf communities across the UK. ## **FINANCIAL REVIEW** ## **Financial position** Income for the 12 months amounted to £3,756,907 (2023: £3,265,389) and expenditure for the same period amounted to £2,691,624 (2023: £2,995,283). As a result, the surplus for the period (before other recognised gains and losses) was £1,066,254 (2023 Surplus of: £270,306). This is inclusive of general operational surplus of £32,945 and both Oxford and Walsall designated funding received and expenditure incurred. As per relevant authorisation from the Charity Commission, the Oxford Designated Funding is held for the benefit of the deaf, _deafblind_ and hard of hearing community within Oxfordshire _and surrounding areas._ Total funds on hand at the balance sheet amount to net assets of £1,874,519 (2023: £808,265). Funds on hand at the Balance Sheet comprise the following: Restricted funds: £27,505 (2023: £Nil). Designated funds: Walsall Deaf Society £271,239 (2023: £294,051). Oxford Clawback Fund £188,055 (2023: £303,771). Oxford Projects Fund £1,144,332 (2023: £NIL). Freely Available Unrestricted Reserves: £157,636 (2023: £173,721), excluding the pension liability. Within unrestricted funds is: £38,497 (2023: £34,248) comprising the charity's tangible fixed assets and fixed asset investments and can only be realised through the sale of tangible fixed assets or investments. ## Investment policy and objectives: The Trustees have the power to invest in such assets as they see fit. Page 5 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **FINANCIAL REVIEW** ## **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 total of the following: 1) 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 2024/2025. With appropriate budgetary controls, no pension liability and even in the current difficult economic climate, Action Deafness will continue in operation and it is only appropriate to prepare these financial statements on a going concern basis. ## **FUTURE DIRECTIVES FOR 2024-2025** ## **1. New Community & Care Services in Wales** Action Deafness is committed to launching new Community and Care Services in Wales, which will be subject to a rigorous registration process with Care Inspectorate Wales. This is essential to meet the expectations for domiciliary care service provision across 11 Local Authorities in South Wales. We aim to successfully launch this service in Spring 2025. ## **2. Development of New Commercial Services** To generate additional sales over the next 18 months, starting from January 2024, AD recognise the need for additional senior executive leadership. This strategic move will help drive revenue growth and explore new market opportunities. ## **3. New Online BSL Customer Services - AD 360.** Action Deafness has entered into an agreement with 360 Direct Access to provide a platform that will enable us to deliver two-way customer service. This initiative will be developed into a pilot project scheduled for October 2024, focusing on reselling the service to the voluntary, statutory and private sectors. The goal is to enhance the accessibility of services and facilitate inquiries conducted in British Sign Language (BSL) for the first time in the UK. We intend to utilise this service for our Specialist Support Services, with an expected launch in Spring/Summer 2025. ## **4. Hubs Connect and D-Youth Hubs Development** In response to the emergence of Hubs Connect, we will design, develop and implement new project initiatives involving children and young people, particularly those in need of extra support. The D-Youth Hubs will serve as vital resources in our catchment areas, fostering community engagement and support for young Deaf individuals. ## **5. Establishment of Complex Needs Service and ExtraCare Proposition** Action Deafness aims to establish a Complex Needs service and develop an ExtraCare provision specifically for older Deaf individuals. This will involve completing financial modelling and site analysis to ensure sustainability. Increased promotion is necessary to boost referrals and sales over the next financial year. We will initiate business cases to explore the potential development and delivery of complex needs services for Deaf individuals living in the community, particularly after being discharged from NHS Trusts. Page 6 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **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 and 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 include Trustee Directors and the Executive Leadership Team; comprising of CEO, Director of Finance & Operations, Director of Service Delivery. The Executive Leadership Team is supported by the Interpreting Manager, Finance & Operations Manager, Service Delivery Manager, Sensory Service Manager, Hubs Development Manager and Registered Community 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 for the Oxford Deaf & Hard of Hearing Centre building. In March 2023, the building was sold and the Charity Commission consented (December 2023) for the proceedings to be shared between Deaf Direct and three other local societies. The shared proceedings were distributed in August 2024. Deaf Direct is now in the process of being terminated which is expected to complete in Spring 2025. ## **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 sixmonthly 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. 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. ## **REFERENCE AND ADMINISTRATIVE DETAILS** **Registered Company number** 06706042 (England and Wales) Page 7 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024** **Registered Charity number** 1163758 ## **Registered office** The Peepul Centre 28 Orchardson Avenue Leicester Leicestershire LE4 6DP ## **Trustees** Mr R Grant Mrs P A Lenon (resigned 21.8.24) Mrs A Lewis Chair Mr W H Stavert Mrs L K Warnes Trustee (resigned 2.1.25) Mrs J Driver OBE (resigned 18.9.24) Mr A Wright Trustee Mr T Ahmed (resigned 13.2.24) Mrs A France Trustee Ms C Mitchell (appointed 13.2.24) ## **Company Secretary** Mr C A Crowley ## **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** Russell-Cooke Solicitors 8 Bedford Row London WC1R 4BX ## **Executive Leadership Team- 2023/2024 and current** Craig Crowley MBE Chief Executive Karen Draper Director of Finance & Operations Charlotte Jefferies People Executive Christopher Reid Director, Service Delivery (appointed in March 2024) Mhairi Simpson Head of Community & Care (resigned in March 2024) ## **AUDITORS** The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. Approved by order of the board of trustees on 13[th] May 2025 .................... and signed on its behalf by: .... Mrs A Lewis - Trustee Page 8 **ACTION DEAFNESS** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30 SEPTEMBER 2024** The trustees (who are also the directors of Action Deafness for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year 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 - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - 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. ## In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditors are unaware; and - 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. The trustees (who are also the directors of Action Deafness for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year 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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - 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. ## In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditors are unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit in formation and to establish that the auditors are aware of that information. Page 9 **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 2024 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 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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. ## **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; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements. ## **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; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - 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. Page 10 **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ACTION DEAFNESS** ## **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. ## **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: 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 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 non-compliance, 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. Page 11 **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ACTION DEAFNESS** ## **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 28 May 2025 Page 12 **ACTION DEAFNESS** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2024** |**INCOME AND ENDOWMENTS FROM**
Notes
Donations and legacies
3
**Charitable activities**
5
Communications
Community support
Learning
Other services
Books, DVDs and AD Tech
Provision of services
Investment income
4
Other income
6
**Total**
**EXPENDITURE ON**
Raising funds
7
**Charitable activities**
8
Communications
Community support
Learning
Other services
Business development
Fundraising
Central operational costs
Professional fees
Innovation Project
Oxford Projects
**Total**
Net gains on investments
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
52,660
972,046
1,152,120
7,591
12,562
52,706
166,435
39,829
167
2,456,116
3,076
835,653
1,009,317
353
112,126
(6,440)
9,320
428,472
32,265
-
-
2,424,142
971
32,945
210,443
243,388|Walsall
Deaf
Society
(Designated)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,812
-
-
-
-
-
-
22,812
-
(22,812)
294,051
271,239|Oxford
Clawback
Fund
(Designated)
£
-
-
-
-
-
-
-
-
14,829
14,829
-
-
-
-
-
-
-
130,545
-
-
-
130,545
-
(115,716)
303,771| |---|---|---|---| ||||188,055| The notes form part of these financial statements Page 13 **ACTION DEAFNESS** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2024** |**INCOME AND ENDOWMENTS FROM**
Notes
Donations and legacies
3
**Charitable activities**
5
Communications
Community support
Learning
Other services
Books, DVDs and AD Tech
Provision of services
Investment income
4
Other income
6
**Total**
**EXPENDITURE ON**
Raising funds
7
**Charitable activities**
8
Communications
Community support
Learning
Other services
Business development
Fundraising
Central operational costs
Professional fees
Innovation Project
Oxford Projects
**Total**
Net gains on investments
**NET INCOME**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Oxford
Projects
(Designated)
£
Restricted
funds
£
-
-
-
-
-
-
-
-
-
30,000
-
-
-
-
-
-
1,255,962
-|2024
Total
funds
£
2023
Total
funds
£
52,660
3,611
972,046
1,583,759
1,152,120
939,126
7,591
10,501
42,562
4,969
52,706
35,521
166,435
219,400
39,829
2,464
1,270,958
466,038| |---|---|---| ||1,255,962
30,000|3,756,907
3,265,389| ||-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,495
111,630
-|3,076
12,144
835,653
1,578,112
1,009,317
814,893
353
254
134,938
66,909
(6,440)
2,472
9,320
129
559,017
491,411
32,265
28,959
2,495
-
111,630
-| ||111,630
2,495|2,691,624
2,995,283| ||-
-
1,144,332
27,505
-
-|971
200| |||1,066,254
270,306
808,265
537,959| ||1,144,332
27,505|1,874,519
808,265| The notes form part of these financial statements Page 14 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **BALANCE SHEET 30 SEPTEMBER 2024** |Notes
**FIXED ASSETS**
Intangible assets
14
Tangible assets
15
Investments
16
**CURRENT ASSETS**
Debtors
17
Cash at bank
**CREDITORS**
Amounts falling due within one year
18
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**RETIREMENT HEALTHCARE BENEFITS OBLIGATIONS**
20
**NET ASSETS**|Unrestricted
funds
£
7,200
16,782
14,515
38,497
428,900
56,922
485,822
(280,899)
204,923
243,420
(31)
243,389|Walsall
Oxford
Deaf
Clawback
Society
Fund
(Designated)
(Designated)
£
£
-
-
-
-
-
-
-
57,931
213,308
-
1,941
186,113| |---|---|---| |||271,239
188,054
-
-| |||271,239
188,054| |||271,239
188,054
-
-| |||271,239
188,054| The notes form part of these financial statements continued... Page 15 **ACTION DEAFNESS (REGISTERED NUMBER: 06706042)** ## **BALANCE SHEET - continued 30 SEPTEMBER 2024** |Notes
**FIXED ASSETS**
Intangible assets
14
Tangible assets
15
Investments
16
**CURRENT ASSETS**
Debtors
17
Cash at bank
**CREDITORS**
Amounts falling due within one year
18
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**RETIREMENT HEALTHCARE BENEFITS OBLIGATIONS**
20
**NET ASSETS**
**FUNDS**
19
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Oxford
Projects
(Designated)
£
-
-
-
-
-
1,144,332
1,144,332
-
1,144,332
1,144,332
-
1,144,332|Oxford
Projects
(Designated)
£
-
-
-
-
-
1,144,332
1,144,332
-
1,144,332
1,144,332
-
1,144,332|Restricted
funds
£
-
-
-
-
2,495
28,760
31,255
(3,750)
27,505
27,505
-
27,505|2024
Total
funds
£
7,200
16,782
14,515|2023
Total
funds
£
-
23,447
10,801| |---|---|---|---|---|---| |||||38,497
491,267
1,629,435|34,248
461,974
554,911| |||1,144,332
-
1,144,332||2,120,702
(284,649)
1,836,053|1,016,885
(242,746)| ||||||774,139| |||
1,144,332
-
1,144,332|||| |||||1,874,550
(31)|808,387
(122)| |||||1,874,519|808,265| ||||||| |||||1,847,014
27,505|808,265
-| |||||1,874,519|808,265| 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 ............................................. and were signed on its behalf by: Mrs A Lewis - Trustee The notes form part of these financial statements Page 16 **ACTION DEAFNESS** ## **CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2024** |Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Dividends received
Reclassification of investments
Net cash provided by/(used in) investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the beginning of**
**the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|2024
£
2023
£
1,052,680
379,535| |---|---| ||1,052,680
379,535| ||(10,800)
-
(4,909)
(6,670)
466
-
39,390
2,084
439
380
(2,742)
-| ||21,844
(4,206)| ||| ||1,074,524
375,329
554,911
179,582| ||1,629,435
554,911| The notes form part of these financial statements Page 17 **ACTION DEAFNESS** ## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** |**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**|| |---|---| |**Net income for the reporting period (as per the Statement of Financial Activities)**
**Adjustments for:**
Depreciation charges
Gain on investments
Interest received
Dividends received
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operations**|2024
2023
£
£
1,066,254
270,306
14,616
12,500
(971)
(200)
(39,390)
(2,084)
(439)
(380)
(28,794)
186,716
41,404
(87,323)| ||1,052,680
379,535| **2. ANALYSIS OF CHANGES IN NET FUNDS** ||At 1.10.23|Cash flow|At 30.9.24| |---|---|---|---| ||£|£|£| |**Net cash**|||| |Cash at bank|554,911|1,074,524|1,629,435| ||554,911|1,074,524|1,629,435| |**Total**|554,911|1,074,524|1,629,435| The notes form part of these financial statements Page 18 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **1. 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 cover the individual entity, 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. ## **2. 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. ## **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. continued... Page 19 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **2. ACCOUNTING POLICIES - continued** ## **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. ## **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. ## **Intangible assets** Intangible fixed assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. The website is being amortised evenly over its estimated useful life of three years. ## **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 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. At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the income statement. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment is recognised immediately in the income statement. ## **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. continued... Page 20 **ACTION DEAFNESS** **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **2. ACCOUNTING POLICIES - continued** ## **Fund accounting** 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. ## **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 Acitivities; 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. ## **3.** ## **4.** |**DONATIONS AND LEGACIES**
Donations
Legacies
**INVESTMENT INCOME**
Dividends received
Deposit account interest||2024
2023
£
£
5,664
3,611
46,996
-| |---|---|---| |||52,660
3,611| |||2024
2023
£
£
439
380
39,390
2,084
39,829
2,464| continued... Page 21 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **5. INCOME FROM CHARITABLE ACTIVITIES** |Activity
Course fees
Communications
BSL interpreting
Communications
Community support income
Community support
Additional services income
Community support
Course fees
Learning
Books, DVDs and AD Tech sales
Learning
Grants
Other services
Books, DVDs and AD Tech sales
Books, DVDs and AD Tech
Additional services income
Provision of services|2024
£
2023
£
26,218
219
945,828
1,583,540
1,135,725
924,579
16,395
14,547
7,293
10,501
298
-
42,562
4,969
52,706
35,521
166,435
219,400
2,393,460
2,793,276| |---|---| Included within income from charitable activities above are the following amounts, which are government grants as defined by the SORP: - £Nil (2023: £4,969) from Leicestershire County Council Grants. - £2,000 (2023: £Nil) from Southeast Staffordshire Healthy communities VCSE Alliance Engagement Funding. **6. OTHER INCOME** |Other income
Exceptional items - Sale of Oxford Building
Exceptional items - Clawback|2024
2023
£
£
167
21,376
1,255,962
-
14,829
444,662
1,270,958
466,038| |---|---| ## **The Clawback** Within exceptional items above is £14,829 (2023: £444,662) 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. ## **Sale of Oxford Building** The building was sold in March 2023, and the proceeds shared between four recipient charities, including Action Deafness. The final share of net proceeds was formally agreed in June 2024 and Action Deafness received £1,255,962 in respect of this, as included within Sale of Oxford Building above. continued... Page 22 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **7. RAISING FUNDS** ## **Other trading activities** |Communication support|2024
2023
£
£
3,076
12,144| |---|---| ## **8. CHARITABLE ACTIVITIES COSTS** |Communications
Community support
Learning
Other services
Business development
Fundraising
Central operational costs
Professional fees
Innovation Project
Oxford Projects|Direct
Costs
£
Support
costs (see
note 9)
£
Totals
£
829,344
6,309
835,653
978,338
30,979
1,009,317
393
(40)
353
55,013
79,925
134,938
(7,148)
708
(6,440)
8,027
1,293
9,320
10,294
548,723
559,017
40,908
(8,643)
32,265
2,495
-
2,495
111,630
-
111,630
2,029,294
659,254
2,688,548| |---|---| ## **9. SUPPORT COSTS** |Communications
Community support
Learning
Other services
Business development
Fundraising
Central operational costs
Professional fees
Communications
Community support
Learning
Other services
Business development
Fundraising
Central operational costs
Professional fees|Central
Overheads
£
Finance
£
IT &
Phones
£
2,429
-
3,493
25,680
-
4,786
(40)
-
-
79,752
-
173
-
-
-
315
-
-
415,487
34,223
48,544
-
-
-
523,623
34,223
56,996| |---|---| ||Professional
fees
£
Governance
costs
£
Totals
£
387
-
6,309
513
-
30,979
-
-
(40)
-
-
79,925
708
-
708
978
-
1,293
21,520
28,949
548,723
(8,643)
-
(8,643)
15,463
28,949
659,254| continued... Page 23 **ACTION DEAFNESS** **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **10. NET INCOME/(EXPENDITURE)** Net income/(expenditure) is stated after charging/(crediting): ||2024|2023| |---|---|---| ||£|£| |Auditors remuneration|28,949|17,348| |Depreciation - owned assets|11,108|12,585| |Other operating leases|13,247|20,626| |Website amortisation|3,600|-| Auditors' fees of £28,949 (2023: £17,348) which are included within Central Operational Costs include costs for the preparation of the accounts and other advisory services in relation to VAT and additional services. ## **11. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 30 September 2024 nor for the year ended 30 September 2023. ## **Trustees' expenses** During the year, travel expenses of £NIL (2023: £Nil) were reimbursed to trustees. No other remuneration, benefits or expenses were paid to trustees during either year. |**12.**
**STAFF**
**COSTS**
Wages and salaries
Social security costs
Other pension costs|2024
2023
£
£
1,314,636
1,197,005
96,280
85,382
26,891
26,434
1,437,807
1,308,821| |---|---| One employee had employee benefits between £70,000-£80,000 (2023: 0). No employee had employee benefits between £60,000-£70,000 (2023: 1). No other employees had employee benefits in excess of £60,000 (2023: Nil). On a monthly basis there were 98 (2023: 87) staff spending most of their time on charitable activities. Figures on a full-time equivalent basis were 51 (2023: 37). At the end of the year there were 6 Trustees (2023: 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 £208,192 (2023: £233,629). continued... Page 24 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** |**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Communications
Community support
Learning
Other services
Books, DVDs and AD Tech
Provision of services
Investment income
Other income
**Total**
**EXPENDITURE ON**
Raising funds
**Charitable activities**
Communications
Community support
Learning
Other services
Business development
Fundraising
Central operational costs
Professional fees
**Total**
Net gains on investments
**NET INCOME/(EXPENDITURE)**
**Transfers between funds**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Communications|Unrestricted
funds
£
3,611
1,583,759
939,126
10,501
4,969
35,521
219,400
2,464
21,376
2,820,727
12,144
1,578,111
806,071
254
46,946
2,472
129
364,487
28,124
2,838,738
200
(17,811)
3,529
(14,282)
224,725
210,443
Oxford
Projects
(Designated)
£
-
-|Walsall
Deaf
Society
(Designated)
£
-
Oxford
Clawback
Fund
(Designated)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
444,662|Walsall
Deaf
Society
(Designated)
£
-
Oxford
Clawback
Fund
(Designated)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
444,662|Walsall
Deaf
Society
(Designated)
£
-
Oxford
Clawback
Fund
(Designated)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
444,662| |---|---|---|---|---| ||||-|444,662| ||||-
-
-
-
15,421
-
-
-
-|-
1
8,822
-
4,542
-
-
126,692
835| ||||15,421|140,892| |||-
(15,421)
-
(15,421)
309,473
294,052
Restricted
funds
£
-
-|-
(15,421)
-
(15,421)
309,473
294,052|-
303,770
-
303,770
-| |||||303,770| |||||Total
funds
£
3,611
1,583,759| continued... Page 25 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued** |Community support
Learning
Other services
Books, DVDs and AD Tech
Provision of services
Investment income
Other income
**Total**
**EXPENDITURE ON**
Raising funds
**Charitable activities**
Communications
Community support
Learning
Other services
Business development
Fundraising
Central operational costs
Professional fees
**Total**
Net gains on investments
**NET INCOME/(EXPENDITURE)**
**Transfers between funds**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**
**14.**
**INTANGIBLE FIXED ASSETS**
**COST**
Additions
**AMORTISATION**
Charge for year
**NET BOOK VALUE**
At 30 September 2024
At 30 September 2023|Oxford
Projects
(Designated)
£
-
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
232
-
-
-
232
-
-
-
(232)
-
(3,529)
-
(3,761)
-
3,761
-
-||Total
funds
£
939,126
10,501
4,969
35,521
219,400
2,464
466,038
3,265,389
12,144
1,578,112
814,893
254 66,909
2,472 129
491,411
28,959
2,995,283
200
270,306
-
270,306
537,959
808,265
Website
£
10,800
3,600
7,200
-| |---|---|---|---| ||||| continued... Page 26 ## **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **15. TANGIBLE FIXED ASSETS** |**COST**
At 1 October 2023
Additions
Disposals
At 30 September 2024
**DEPRECIATION**
At 1 October 2023
Charge for year
Eliminated on disposal
At 30 September 2024
**NET BOOK VALUE**
At 30 September 2024
At 30 September 2023
**16.**
**FIXED ASSET INVESTMENTS**
**MARKET VALUE**
At 1 October 2023
Revaluations
Reclassification/transfer
At 30 September 2024
**NET BOOK VALUE**
At 30 September 2024
At 30 September 2023
The investment assets are held:
In the UK
Cost or valuation at 30 September 2024 is represented by:
Valuation in 2024|Motor
vehicles
£
14,954
-
-
14,954
14,954
-
-
14,954
-
-
Listed
investments
£
10,801
972
-
11,773
11,773
10,801
Listed
investments
£
11,773
11,773
Listed
investments
£
11,773|Computer
equipment
Totals
£
£
86,249
101,203
4,909
4,909
(29,593)
(29,593)|Computer
equipment
Totals
£
£
86,249
101,203
4,909
4,909
(29,593)
(29,593)| |---|---|---|---| |||61,565
76,519|| |||62,802
77,756
11,108
11,108
(29,127)
(29,127)|| |||44,783
59,737|| |||16,782
16,782|| |||23,447
23,447|| |||Unlisted
investments
Totals
£
£
-
10,801
439
1,411
2,303
2,303|| ||||2,742
14,515| ||||2,742
14,515| ||||-
10,801| ||||| continued... Page 27 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|| |---|---| |Trade debtors
Other debtors
VAT
Prepayments and accrued income|2024
2023
£
£
417,650
362,966
1,944
10,779
499
-
71,174
88,229| ||491,267
461,974| ## **18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|| |---|---| |Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income|2024
2023
£
£
137,148
95,289
25,412
23,854
34,456
36,536
11,824
9,844
75,809
77,223| ||284,649
242,746| 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: -£15,367 Grants and donation income -£3,211 Community support work income -£5,295 SLA Income The closing deferred income consists of: -£9,878 Grants and donation income -£2,799 Community support work income -£969 Deaf Awareness/Deaf Support Income -£16,517 SLA Income These amounts have been deferred as performance conditions had not been met at the balance sheet date. continued... Page 28 ## **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **19. MOVEMENT IN FUNDS** |**MOVEMENT IN FUNDS**||||| |---|---|---|---|---| |||Net|Transfers|| ||At|movement|between|At| ||1.10.23|in funds|funds|30.9.24| ||£|£|£|£| |**Unrestricted funds**||||| |General fund|173,721|(376)|(15,709)|157,636| |Fixed Assets|23,447|(15,175)|15,709|23,981| |Fixed Assets Investment Fund|13,397|1,410|-|14,807| |Pension Reserve|(122)|91|-|(31)| |Walsall Deaf Society (Designated)|294,051|(22,812)|-|271,239| |Oxford Clawback Fund (Designated)|303,771|(115,717)|-|188,054| |Oxford Projects (Designated)|-|1,144,332|-|1,144,332| |Designated legacies|-|46,996|-|46,996| ||808,265|1,038,749|-|1,847,014| |**Restricted funds**||||| |Eveson Grant|-|30,000|-|30,000| |Innovation Project|-|(2,495)|-|(2,495)| ||-|27,505|-|27,505| |**TOTAL FUNDS**|808,265|1,066,254|-|1,874,519| |Net movement in funds, included in the above are as follows:||||| ||Incoming|Resources|Gains and|Movement| ||resources|expended|losses|in funds| ||£|£|£|£| |**Unrestricted funds**||||| |General fund|2,408,681|(2,409,057)|-|(376)| |Fixed Assets|-|(15,175)|-|(15,175)| |Fixed Assets Investment Fund|439|-|971|1,410| |Pension Reserve|-|91|-|91| |Walsall Deaf Society (Designated)|-|(22,812)|-|(22,812)| |Oxford Clawback Fund (Designated)|14,829|(130,546)|-|(115,717)| |Oxford Projects (Designated)|1,255,962|(111,630)|-|1,144,332| |Designated legacies|46,996|-|-|46,996| ||3,726,907|(2,689,129)|971|1,038,749| |**Restricted funds**||||| |Eveson Grant|30,000|-|-|30,000| |Innovation Project|-|(2,495)|-|(2,495)| ||30,000|(2,495)|-|27,505| |**TOTAL FUNDS**|3,756,907|(2,691,624)|971|1,066,254| continued... Page 29 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **19. MOVEMENT IN FUNDS - continued** **Comparatives for movement in funds** |**Unrestricted funds**
General fund
Fixed Assets
Fixed Assets Investment Fund
Pension Reserve
Walsall Deaf Society (Designated)
Oxford Clawback Fund (Designated)
**Restricted funds**
Over 50's Club
Kickstart Project
**TOTAL FUNDS**|At
1.10.22
Net
movement
in funds
Transfers
between
funds
At
30.9.23
£
£
£
£
182,754
(5,890)
(3,143)
173,721
29,361
(12,586)
6,672
23,447
12,817
580
-
13,397
(207)
85
-
(122)
309,473
(15,422)
-
294,051
-
303,771
-
303,771| |---|---| ||534,198
270,538
3,529
808,265
3,529
-
(3,529)
-
232
(232)
-
-| ||3,761
(232)
(3,529)
-| ||537,959
270,306
-
808,265| Comparative net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
Fixed Assets
Fixed Assets Investment Fund
Pension Reserve
Walsall Deaf Society (Designated)
Oxford Clawback Fund (Designated)
**Restricted funds**
Kickstart Project
**TOTAL FUNDS**|Incoming
resources
£
Resources
expended
£
Gains and
losses
£
2,820,347
(2,826,237)
-
-
(12,586)
-
380
-
200
-
85
-
-
(15,422)
-
444,662
(140,891)
-
3,265,389
(2,995,051)
200
-
(232)
-|Movement
in funds
£
(5,890)
(12,586)
580
85
(15,422)
303,771| |---|---|---| |||270,538
(232)| ||3,265,389
(2,995,283)
200|270,306| ## **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:** The monies in respect of this fund have been received in respect of reimbursed expenditure towards the running and sale of the building. This has been set aside for activities in and around the Oxford area ## **Oxford Projects:** Monies received form the sale of the Oxford building which has been set aside for activities in and around the Oxford area. ## **Other Designated Funds:** Monies received which have been designated by the trustees for use on specific future projects. continued... Page 30 **ACTION DEAFNESS** **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **19. MOVEMENT IN FUNDS - continued** ## **Restricted funds** ## **Innovation Project:** Costs incurred for professional fees for obtaining funding towards a research and development project. ## **Eveson Grant:** Monies received towards delivering charitable activities in Worcestershire. ## **20. 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 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 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. continued... Page 31 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **20. EMPLOYEE BENEFIT OBLIGATIONS - continued** The amounts recognised in the Statement of Financial Activities are as follows: |Current service cost
Net interest from net defined benefit
asset/liability
Past service cost
Actual return on plan assets|Retirement
healthcare benefits
2024
£
2023
£
-
-
4
10
-
-
4
10
-
-| |---|---| ||| Changes in the present value of the defined benefit obligation are as follows: ||Retirement|| |---|---|---| ||healthcare benefits|| ||2024|2023| ||£|£| |Opening defined benefit obligation|122|207| |Contributions by employer|(95)|(95)| |Interest cost|4|10| ||31|122| |Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):||| ||2024|2023| |Discount rate|5.24%|5.88%| 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** |Year||30|September|2024|30|September|2023| |---|---|---|---|---|---|---|---| ||||£|||£|| |Year|1|||32|||95| |Year|2|||-|||32| |Year|3|||-|||-| |Year|4|||-|||-| 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. continued... Page 32 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **21. OTHER FINANCIAL COMMITMENTS** The charitable company has the following operating lease commitments due as follows: |In one year|2024
2023
**£**
**£**
1,354
1,638
1,354
1,638| |---|---| ## **22. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 30 September 2024. ## **23. FINANCIAL INSTRUMENTS** The carrying amount of the charity's financial instruments are as follows: ||2024|2023| |---|---|---| |||£| ||£|| |**Financial assets at fair value through income and expenditure**||| |Listed investments|11,773|10,801| |The incomes, expenses, net gains and net losses attributable to the charity's financial instruments are summarised as||| |follows:||| ||2024|2023| ||£|£| |Net gains and losses (including changes in fair value)||| |Financial assets measured at fair value through net income/expenditure|971|200| continued... Page 33 **ACTION DEAFNESS** ## **NOTES TO THE FINANCIAL STATEMENTS - continued** **FOR THE YEAR ENDED 30 SEPTEMBER 2024** ## **23. FINANCIAL INSTRUMENTS - continued** The total dividend income from financial assets that are measured at fair value through the income statement was £439 (2023 - £380). ## **24. 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. Page 34