**Charity Registration No. 1175160** **Company Registration No. 10722435 (England and Wales)** ## **ACTION FOR HAPPINESS** **(A COMPANY LIMITED BY GUARANTEE)** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2021** ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|Ms V A King| |---|---| ||Professor P R G Layard| ||Sir Anthony Seldon| ||Mr G J Mulgan| |**Secretary**|Mr M Williamson| |**Charity number**|1175160| |**Company number**|10722435| |**Registered office**|WeWork| ||3 Waterhouse Square| ||138 Holborn| ||London| ||EC1N 2SW| |**Independent examiner**|Jean Ellis BA FCA CTA| ||DSG| ||Castle Chambers| ||43 Castle Street| ||Liverpool| ||L2 9TL| ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 3| |Independent examiner's report|4| |Statement of financial activities|5| |Balance sheet|6| |Statement of cash flows|7| |Notes to the financial statements|8 - 18| **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ The trustees present their annual report and financial statements for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and "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** Action for Happiness is a charity which promotes mental health and wellbeing through the provision of information, evidence-based resources, public events, educational services, training and community activities. Our vision is a happier and kinder society, with far fewer people suffering due to mental ill health or social isolation and far more people feeling good, functioning well and helping others. We are backed by leading experts and all of our activities are grounded in the latest scientific research. Please note: The Action for Happiness project was originally launched in 2011, based within The Young Foundation (Registered Charity 274345). In 2017 Action for Happiness was established as an independent Company Limited by Guarantee (10722435) and registered charity (1175160) and on 31 December 2017 all assets, liabilities and Intellectual Property were transferred to the new entity. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** Below is a summary of the key Action for Happiness achievements in 20 21 : - Completed a successful fourth full year of operation as an independent charity. - Scaled up our on-going response to the Covid crisis through our campaign to support community wellbeing and associated resources for use in lockdown. - Continued our successful series of monthly themed calendars with daily action ideas, which were used by over 2 million people during the year. - Scaled up our successful online webinar series holding 23 online events during 2021, with over 120,000 people taking part. - Continued to support and deliver our network of volunteer-led online Action for Happiness groups. Over 110 local groups were supported with 8,000 people signing up to take part. - Grown our “10 Days of Happiness” coaching program for challenging times. Over 80,000 people have signed up to take part, with measurable increases in participant wellbeing. - Delivered significant growth in the Action for Happiness smartphone app and grew the community to over 170,000 registered users. - Invested in communication and promotion reach new audiences, focusing on those in need of support for their wellbeing and mental health during the Covid pandemic. - Increased team capacity to respond to increasing demand, including new Head of Operations. - Grew the online/social media community to over 1.57 million followers and also added 47,000 more Action for Happiness members, taking the total to 277,000 people. - Reached a total of over 7.7 million website visitors to date at www.actionforhappiness.org - Completed development of a new digital platform to replace the current Action for Happiness website, due to be launched early in 2022. - Completed development of our new, enhanced Action for Happiness course for community groups, due to be launched in 2022. - Continued to support primary schools with the ‘Keys to Happier Living’ Toolkit. - Developed and published our policy on Diversity, Equity, Inclusion and Belonging (DEIB) and took further steps to put this into practice throughout the organisation. - Supported on-going expansion of the Action for Happiness hub in Northamptonshire. - Continued to provide education, resources and training for organisations and schools. - Created a new peer-to-peer network to bring together our community of volunteer leaders. - 1 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **Financial review** The year’s activities resulted in a surplus of £217,082 compared with a surplus of £ 166,206 in 20 20 . The total amount transferred by Gift Aid from the subsidiary company Action for Happiness Trading Limited for the year amounted to £ 629 (20 20 : £ 22,380 ). Minimal funds are retained in the subsidiary, the operating expenses of which are paid by the charity. The princip al sources of income to Action for Happiness during 20 21 were: - Grant funding - Donations made by Action for Happiness supporters - Income from Educational Services provided to organisations and schools ## **Reserves policy** It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to at least 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 charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year and the charity ended the year with a higher than usual level of reserves due to receiving additional grants during the year which are eligible to support on-going activity next year. ## **Risk management** The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. ## **Future plans** Over the past two years, Action for Happiness’ activities have been significantly impacted by the Covid-19 crisis. At the time of writing, the majority of face-to-face course, events, cafes and other activities continue to be delivered online. While many online activities will continue, it is also hoped that it will be possible to restart more face-to-face activities during 2022 in line with public health guidance and taking into account the preferences of volunteers and participants. Plans for 2022 now include: - Completing a strategic review of Action for Happiness activities and priorities - Expanding and diversifying our Trustee Board - Launching the new Action for Happiness website and associated online resources - Launching new Action for Happiness course to be run by volunteers in their communities - • Recruiting a new Community Wellbeing and Safeguarding Manager - Continuing to grow the overall reach of the Action for Happiness community - Continuing to support local Action for Happiness groups - Continuing to engage large audiences via regular events/webinars - Continuing to grow team capacity to respond to increasing demand for services. - Engaging with new potential funders to support scale-up plans - 2 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **Structure, governance and management** The charitable company is a company limited by guarantee . The trustees, who are also the directors for the purpose of company law, and who served during the year were: Ms V A King Professor P R G Layard Sir Anthony Seldon Mr G J Mulgan The Board of Trustees has overall responsibility for the fulfilling the charity’s aims. The recruitment and appointment of Trustees was based on ensuring an appropriate balance of expertise, skills and commitment to the mission of the charity. The majority of appointed Trustees had either been cofounders of the original Action for Happiness or long-standing members of its Advisory Board. The Board of Trustees also anticipates appointing two or more additional Trustees during the coming year to bring in additional skills and expertise as required. Day to day management of the operation of the charity is delegated from the Board to the Chief Executive (Mark Williamson). The Board of Trustees meets at least once per quarter and the Chief Executive reports regularly to the Trustees on the operations, plans and financial position of the organisation, as appropriate. Action for Happiness is supported by a range of contractors and volunteers to fulfil its mission. Contractors are recruited on a fixed term basis with the skills required to fulfil specific needs. All volunteers are carefully screened and supported in fulfilling their roles, for example in running courses in their local communities. The trustees' r eport was approved by the Board of Trustees. ## **Professor P R G Layard** Trustee Dated: 15 March 2022 - 3 - **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ACTION FOR HAPPINESS** I report to the trustees on my examination of the financial statements of Action for Happiness (the charity) for the year ended 31 December 2021. ## **Responsibilities and basis of report** As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Jean Ellis BA FCA CTA DSG Castle Chambers 43 Castle Street Liverpool L2 9TL Dated: 15 March 2022 - 4 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ |**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and grants
**3**
84,856
735,000
Charitable activities
**4**
108,643
-
Investments
**5**
1,272
-
Other income
**6**
770
-
**Total income**
195,541
735,000
**Expenditure on:**
Charitable activities
**7**
-
713,459
**Net income for the year/**
**Net movement in funds**
195,541
21,541
Fund balances at 1
January 2021
526,133
-
**Fund balances at 31**
**December 2021**
721,674
21,541|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
819,856
125,801
245,000
108,643
131,117
-
1,272
22,380
-
770
520
-
930,541
279,818
245,000
713,459
113,612
245,000
217,082
166,206
-
526,133
359,927
-
743,215
526,133
-|**Total**
**2020**
**£**
370,801
131,117
22,380
520
524,818
358,612
166,206
359,927
526,133| |---|---|---| - 5 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET** ## _**AS AT 31 DECEMBER 2021**_ |**Notes**
**Fixed assets**
Investments
**11**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**15**
Unrestricted funds|**2021**
**£**
3,999
776,493
780,492
(37,278)|**£**
1
743,214
743,215
21,541
721,674
743,215|**2020**
**£**
25,885
526,530
552,415
(26,283)|**£**
1
526,132
526,133
-
526,133
526,133| |---|---|---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 15 March 2022 Professor P R G Layard **Trustee** ## **Company Registration No. 10722435** - 6 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**19**
**Investing activities**
Investment income received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
1,272|**£**
248,691
1,272
-
249,963
526,530
776,493|**2020**
**£**
22,380|**£**
143,344
22,380
-
165,724
360,806
526,530| |---|---|---|---|---| - 7 - **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **1 Accounting policies** ## **Charity information** Action for Happiness is a private company limited by guarantee incorporated in England and Wales. The registered office is WeWork, 3 Waterhouse Square, 138 Holborn, London, EC1N 2SW. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** The trustees consider that it is appropriate to prepare the accounts on a going concern basis as the charity will be able to meet its liabilities as they fall due. In making this assessment the trustees have considered the impact of the Coronavirus which is prevalent at the time of approval of these accounts and are confident that they have adequate resources to continue to operate having taken account of current and future income streams and expenditure commitments. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. ## **1.5 Expenditure** Resources expended are included in the Statement of Financial Activities on an accruals basis, once there is a legal or constructive obligation to make a payment. Charitable activities include the cost of providing courses and hosting events, and include both direct costs and support costs relating to these activities. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Support costs include central functions and have been allocated to charitable activities. - 8 - **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **1 Accounting policies** ## **(Continued)** ## **1.6 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred. A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. ## **1.7 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.8 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled. - 9 - **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **1 Accounting policies** ## **(Continued)** ## **1.9 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.10 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **1.11 Irrecoverable VAT** The charity is not required to register with HMRC for VAT. All resources expended are recognised gross of VAT. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. - 10 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **3 Donations and grants** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
59,856
-
Grants receivable
25,000
735,000
84,856
735,000
**Donations and gifts**
Supporters Circle
30,000
-
Other
29,856
-
59,856
-
**Grants receivable for**
**core activities**
AIM Foundation
-
-
Founder's Pledge
-
735,000
David Cock Foundation
-
-
Dreamchasing
25,000
-
Small business
COVID-19
-
-
25,000
735,000
**Charitable activities**
Event income
Course income
Educational services|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
£
£
59,856
65,801
-
760,000
60,000
245,000
819,856
125,801
245,000
30,000
30,000
-
29,856
35,801
-
59,856
65,801
-
-
15,000
-
735,000
-
245,000
-
10,000
-
25,000
25,000
-
-
10,000
-
760,000
60,000
245,000
**2021**
**£**
94,595
1,871
12,177
108,643|**Total**
**2020**
£
65,801
305,000
370,801
30,000
35,801
65,801
15,000
245,000
10,000
25,000
10,000
305,000
**2020**
**£**
100,446
21,410
9,261
131,117| |---|---|---| ## **4 Charitable activities** - 11 - **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **5 Investments** ||**Unrestricted**|**Unrestricted**| |---|---|---| ||**funds**|
**funds**| ||**2021**|
**2020**| ||**£**|
**£**| |Income from subsidiary|629|
22,380| |Interest receivable|643|
-| ||1,272|
22,380| The charity owns 100% of the share capital of Action for Happiness Trading Limited which is a company limited by shares held for the purpose of delivering the charitable trading activities of the charity. ## **6 Other income** ||**2021**|**2019**| |---|---|---| ||**£**|**£**| |Other income|770|520| ## **7 Charitable activities** |Staff costs
Costs of providing courses
Event costs
Educational services
Communication
Community development
Operations
Share of support costs (see note 8)
Share of governance costs (see note 8)
**Analysis by fund**
Unrestricted funds
Restricted funds|**2021**
**£**
236,966
41,007
37,321
352
83,739
180,846
8,325
588,556
123,667
1,236
713,459
-
713,459|**2020**
**£**
138,501
49,114
16,582
1,218
48,409
41,094
3,525
298,443
58,933
1,236
358,612
113,612
245,000| |---|---|---| - 12 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **8 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Bank fees
143
-
General expenses
8,414
-
Online services
91,811
-
Printing and stationery
2,560
-
Travel
272
-
Rent
17,590
-
Insurance
1,182
-
Legal and professional
1,695
-
Independent
examination
-
1,236
123,667
1,236
Analysed between
Charitable activities
123,667
1,236|**2021**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
**£**
143
84
-
8,414
518
-
91,811
38,612
-
2,560
994
-
272
663
-
17,590
15,990
-
1,182
1,086
-
1,695
986
-
1,236
-
1,236
124,903
58,933
1,236
124,903
58,933
1,236|**2020**
**£**
84
518
38,612
994
663
15,990
1,086
986
1,236
60,169
60,169| |---|---|---| ## **9 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (2020: £nil). During the year, the trustees received a total of £nil (20 20 : £nil) in expenses from the charity. - 13 - **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **10 Employees** The average monthly number of employees during the year was: |Administration
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or
more were:
Above £60,000|**2021**
**Number**
4
**2021**
**£**
190,775
21,325
24,866
236,966
**2021**
**Number**
1|**2020**
**Number**
2
**2020**
**£**
106,000
13,421
19,080
138,501
**2020**
**Number**
1| |---|---|---| - 14 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **11 Fixed asset investments** ||||**Other**| |---|---|---|---| ||||**investments**| |**Cost or valuation**|||| |At 1 January 2021 & 31 December 2021|||1| |**Carrying amount**|||| |At 31 December 2021|||1| |At 31 December 2020|||1| |||**2021**|**2020**| |Other investments comprise:|**Notes**|**£**|**£**| |Investments in subsidiaries|**12**|1|1| This represents the investment in the subsidiary company, Action for Happiness Limited, which is owned by the charity for the purpose of delivering charitable activities. ## **12 Subsidiaries** Details of the charity's subsidiaries at 31 December 2021 are as follows: |**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**| |---|---|---|---|---| ||**office**||**shares held**|**Direct Indirect**| |Action for Happiness|Wework, 3|Provision of services|Ordinary|100.00| |Trading Limited|Waterhouse|||| ||Square, 138|||| ||Holborn,|||| ||London, EC1N|||| ||2SW|||| During the year the turnover of Action for Happiness Limited was £30,614 and expenditure incurred was £29,985 resulting in a profit of £629. All of the profit was distributed up to the charity in the period. - 15 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **13 Debtors** |**Amounts falling due within one year:**
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
**14**
**Creditors: amounts falling due within one year**
Other taxation and social security
Other creditors
Accruals and deferred income|**2021**
**£**
-
629
1,000
2,370
3,999
**2021**
**£**
6,127
29,951
1,200
37,278|**2020**
**£**
135
22,380
1,000
2,370
25,885
**2020**
**£**
3,776
21,307
1,200
26,283| |---|---|---| ## **15 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: ||||**Movement in funds**|**Movement in funds**|||**Movement in funds**|**Movement in funds**|| |---|---|---|---|---|---|---|---|---|---| |||**Balance at**|**Incoming**|**Resources**||**Balance at**|**Incoming**|**Resources**|**Balance at**| ||**1**|**January 2020**|**resources**|**expended**|
**1**|**January 2021**|**resources**|**expended**|**31 December**| ||||||||||**2021**| |||**£**|**£**|**£**||**£**|**£**|**£**|**£**| |Founders|||||||||| |Pledge||-|245,000|(245,000)||
-|735,000|(713,459)|
21,541| ## **Founders Pledge** Development and scale-up of new resources and services to support mental wellbeing for individuals and communities in response to the Covid pandemic. - 16 - ## **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ |**16**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31
December 2021 are
represented by:
Investments
1
-
Current assets/
(liabilities)
721,673
21,541
721,674
21,541|**Total**Unrestricted
funds
Restricted
funds
**2021**
2020
2020
**£**
£
£
1
1
-
743,214
526,132
-
743,215
526,133
-|Total
2020
£
1
526,132
526,133| |---|---|---| ## **17 Operating lease commitments** At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: ||**2021**|**2020**| |---|---|---| ||**£**|**£**| |Within one year|7,840|9,102| - 17 - **ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_ ## **18 Related party transactions** The charity has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |**19**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
Decrease/(increase) in debtors
Increase in creditors
**Cash generated from operations**|**2021**
**£**
217,082
(1,272)
21,886
10,995
248,691|**2020**
**£**
166,206
(22,380)
(15,255)
14,773
143,344| |---|---|---| - 18 -