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2021-07-31-accounts

Company no. 10255303 Charity no. 1175553

Fifth Sense

Report and Unaudited Financial Statements 31 July 2021

Fifth Sense

Reference and administrative details

For the year ended 31 July 2021

Company number 10255303 Charity number 1175553 Registered office and Phoenix Business Centre operational address Phoenix Road Barrow-in-Furness LA14 2UA Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Duncan Boak Matthew Jones resigned 31 March 2021 Azim Karimjee Esther Kirby appointed 12 November 2020 Robert Meadowcroft appointed 3 June 2021 Carl Philpott Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Independent examiners Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

1

Fifth Sense

Report of the trustees

For the year ended 31 July 2021

The trustees present their report along with the financial statements of the charity for the year ended 31 July 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Objectives and activities

The objectives of the charity as defined in the Articles of Association are:

The main activities undertaken by the charity are:

The trustees, having due regard for the Charity Commission’s guidance on public benefit, regularly review the activities and operations of the charity to ensure that the delivery of public benefit is central to everything that we do.

Achievements and performance

2020 – 21 has been another very positive year for Fifth Sense, building on the progress we made in 2019 – 20 and thanks to the support of the National Lottery Community Fund, for which we are extremely grateful. Covid-19 continued to impact on our ability to operate with the majority of our activities being conducted virtually. Highlights from the year include:

Support

2

Fifth Sense

Report of the trustees

For the year ended 31 July 2021

Research

▪Other research projects in which Fifth Sense participated include:

Date Project name Project type Lead institution
Jan-21 Olfactory Cognition Research Project
- Reading Your Mind Associations
Between Reading and Mental
Imagery		 Research Study Wrexham Glyndwr
University
Feb-21 Use of a smartphone-based self-
management platform to improve
disease specific quality of life and
medication adherence in patients with
Chronic Rhinosinusitis NIHR Proposal		 Medical Device RCT
Proposal
 Royal Derby
University Hospitals
NHS Foundation
Trust
Mar-21 Medtronic Sinus Pathway Project
Initiative		 Survey/Focus Group Medtronic
Apr-21
ongoing		 Smell Care - I Smell Medical Device
Proposal		 UCL
May-21 Aphabio Development of a new small-
molecule based treatment for
rhinosinusitis -proposal		 Clinical Trial
proposal		 Aphabio
Therapeutics

Education

Director of Development and Operations presented at the following educational sessions for professionals across health, social care and case management forums:

3

Fifth Sense

Report of the trustees

For the year ended 31 July 2021

Awareness

Financial review

Our financial position at 31 July 2021 remains strong, thanks to the continued funding from the National Lottery Community Fund, for which we are truly grateful. We received 3 of the 4 planned instalments of the NLCF funding in this financial year, which resulted in a slight decrease in our overall income when compared to last year and a small deficit for the year. The 4th instalment was received after the year end and thus will be reflected in next year’s accounts.

In addition to NLCF funding, our other income for the year has increased thanks to a generous donation from the Firmenich Foundation and to a spectacular Cross-Channel swim by Sarah Philpott. We are very grateful to all our donors and supporters.

Funds raised in 2020/21
National Lottery Community Fund
Donation by Firmenich Foundation
Funds raised by Sarah Philpott
Other donations
Total		 £60,131
£8,050
£4,131
£4,997
£77,309

Our salary costs for the year accounted for 80% of our total expenditure – details are contained in note 7 to the accounts. Our running costs accounted for 8% of total costs. Full details of our expenditure can be found in note 5 to the accounts.

As explained above, almost all our activity was conducted virtually led by the Let’s Talk Smell and Taste series which has proved to be very popular. This series has developed into a valuable resource for a wide cross section of our beneficiary group as indicated above.

Our reserves remain robust with the following funds being held at the end of the financial year:

Restricted funds
National Lottery Community Fund
Firmenich Foundation
Designated funds
Research
Unrestricted funds
General
Total		 £20,862
£8,050
£940
£40,407
£70,259

Full details of fund movements can be found in note 12 to the accounts.

4

Fifth Sense

Report of the trustees

For the year ended 31 July 2021

Structure, governance and management

The charity is constituted as a private company limited by guarantee without share capital with an exemption from the requirement to use 'Limited' in the company’s name.

The charity is governed by its Articles of Association which also define the objectives of the charity.

The board of trustees meets regularly every two months to review the performance of the charity including strategy, finance, operations, communications and fundraising.

The day to day management of the operations is entrusted to the Director of Development and Operations assisted by the Information Officer, the Community and Business Support Officer and a number of volunteers. The staff are based at the principal office of the charity.

As a small charity, we do not have a formal process for the appointment of new trustees and rely on worthy candidates being brought to our attention by our network of contacts.

Reserves policy

Fifth Sense holds reserves against anticipated future expenditure, principally due to the uncertain nature of the charity’s future income streams.

The aim of the trustees is to hold reserves to enable the charity to operate for up to 6 months without income, so as to enable transitional arrangements to be put in place (should such arrangements be feasible) or to wind down the activities of the charity in a manner so as to cause the least disruption to our beneficiaries.

Each year, when reviewing the annual accounts, the trustees consider the appropriate level of reserves, taking into account the current and planned levels of expenditure.

If at any time reserves are less than 3 months of planned expenditure with no prospect of other sources of income, a board meeting will be convened to consider appropriate action.

Reserves held at 31 July 2021 were £40,407, approximately equivalent to 6 months expenditure and therefore in line with the policy.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

5

Fifth Sense

Report of the trustees

For the year ended 31 July 2021

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 charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Independent examiners

Godfrey Wilson Limited were re-appointed as independent examiners to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 20 January 2022 and signed on their behalf by

Azim Karimjee - trustee

6

Independent examiner's report

To the trustees of

Fifth Sense

I report to the trustees on my examination of the accounts of Fifth Sense (the charitable company) for the year ended 31 July 2021, which are set out on pages 8 to 17.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the charitable company 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 charitable company's accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Godfrey Wilson Limited also provides payroll services to the charitable company. I confirm that as a member of the ICAEW I am subject to the FRC’s Revised Ethical Standard 2016, which I have applied with respect to this engagement.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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 accounts to be reached.

Date: 20 January 2022 Laura Richards ACA Member of the ICAEW For and on behalf of:

Godfrey Wilson Limited

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

7

Fifth Sense

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 July 2021

Note
Income from:
Donations
3
Charitable activities
Total income
Expenditure on:
Charitable activities
Total expenditure
5
6
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net income / (expenditure) and net
movement in funds		 Restricted Unrestricted
£
£
68,181
9,128
-
-
68,181
9,128
77,360
2,304
77,360
2,304
(9,179)
6,824
38,091
34,523
28,912
41,347		 2021
Total
£
77,309
-
77,309
79,664
79,664
(2,355)
72,614
70,259		 2020
Total
£
77,529
4,584
82,113
35,340
35,340
46,773
25,841
72,614

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 12 to the accounts.

8

Fifth Sense

Balance sheet

As at 31 July 2021

Note
Current assets
Debtors
9
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
10
Net current assets
Net assets
11
Funds
12
Restricted funds
Unrestricted funds:
Designated funds
General funds
Total charity funds		 £
355
72,630
72,985
(2,726)		 2021
£
70,259
70,259
28,912
940
40,407
70,259		 2020
£
791
74,483
75,274
(2,660)
72,614
72,614
38,091
940
33,583
72,614

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 20 January 2022 and signed on their behalf by

Azim Karimjee - trustee

9

Fifth Sense

Notes to the financial statements

For the year ended 31 July 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Fifth Sense meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves and ongoing National Lottery funding until December 2022. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

d) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

10

Fifth Sense

Notes to the financial statements

For the year ended 31 July 2021

1. Accounting policies (continued)

g) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between the cost of raising funds and expenditure on charitable activities, based on the proportion of direct costs, as follows:

2021 2020
Raising funds 0% 0%
Charitable activities 100% 100%

h) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

i) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

j) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

k) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

11

Fifth Sense

Notes to the financial statements

For the year ended 31 July 2021

2. Prior period comparatives: statement of financial activities

Income from:
Donations
Charitable activities
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income and net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
3. Income from donations
Grant income:
National Lottery Community Fund
Firmenich Charitable Trust
Individual donations and other fundraising
Total income from donations
Prior year comparative
Grant income:
National Lottery Community Fund
British Rhinological Society - Covid-19
FlavorActiV
Individual donations and other fundraising
Total income from donations		 Restricted
£
£
67,054
10,475
-
4,584
67,054
15,059
28,963
6,377
28,963
6,377
38,091
8,682
-
25,841
38,091
34,523
Restricted
£
£
60,131
-
8,050
-
-
9,128
68,181
9,128
Restricted
£
£
67,054
-
-
5,000
-
1,000
-
4,475
67,054
10,475
Unrestricted
Unrestricted
Unrestricted		 2020
Total
£
77,529
4,584
82,113
35,340
35,340
46,773
25,841
72,614
2021
Total
£
60,131
8,050
9,128
77,309
2020
Total
£
67,054
5,000
1,000
4,475
77,529

12

Fifth Sense

Notes to the financial statements

For the year ended 31 July 2021

4. Government grants

The charitable company received a government grant, defined as funding from the National Lottery Community Fund to fund charitable activities. The total value of this grant in the period ending 31 July 2021 was £60,131 (2020: £67,054). There are no unfulfilled conditions or contingencies attaching to these grants in 2020/21.

5. Total expenditure

Total expenditure
Raising
funds
£
Accountancy
-
Priority Setting Partnership expenses
-
Consultancy
-
Insurance
-
Running costs
-
Staff costs (note 8)
-
Travel expenses
-
Web development
-
Sub-total
-
Allocation of support and governance costs
-
Total expenditure
-
Total governance costs were £1,967 (2020: £1,824).
Prior period comparative
Raising
funds
£
Accountancy
-
Conference costs
-
Consultancy
-
Insurance
-
Recruitment
-
Running costs
-
Staff costs (note 8)
-
Travel expenses
-
Sub-total
-
Allocation of support and governance costs
-
Total expenditure
-		 Charitable
activities
£
£
-
1,967
1,369
-
2,925
-
-
808
-
6,503
63,217
-
571
-
2,304
-
70,386
9,278
9,278
(9,278)
79,664
-
Charitable
activities
£
£
-
1,824
4,380
-
1,498
-
-
633
2,374
-
-
2,933
20,344
-
1,354
-
29,950
5,390
5,390
(5,390)
35,340
-
Support and
governance
costs
Support and
governance
costs		 2021
Total
£
1,967
1,369
2,925
808
6,503
63,217
571
2,304
79,664
-
79,664
2020
Total
£
1,824
4,380
1,498
633
2,374
2,933
20,344
1,354
35,340
-
35,340

13

Fifth Sense

Notes to the financial statements

For the year ended 31 July 2021

6. Net movement in funds This is stated after charging:

Trustees' remuneration
Trustees' reimbursed expenses
Independent examiner's remuneration:
IE and accounts preparation (including VAT)
Other services (including VAT)		 2021
£
Nil
48
1,440
527		 2020
£
Nil
441
1,380
444

Payments for travel, subsistence and IT costs totalling £48 (2020: £441) were made to one trustee (2020: one trustee) during the year.

7. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2021
£
58,076
648
4,493
63,217		 2020
£
19,294
-
1,050
20,344

No employee earned more than £60,000 during the year or prior year.

The key management personnel of the charitable company comprise the trustees, none of whom were remunerated.

Average head count 2021
No.
2.00		 2020
No.
1.00

8. Taxation

The charity has no corporation tax liability as all its income is charitable and is applied for charitable purposes.

9. Debtors

Accrued income
Prepayments		 2021
£
115
240
355		 2020
£
218
573
791

14

Fifth Sense

Notes to the financial statements

For the year ended 31 July 2021

10. Creditors : amounts due within 1 year

Creditors : amounts due within 1 year
Accruals
Taxation and social security
Other creditors		 2021
£
1,740
886
100
2,726		 2020
£
2,024
636
-
2,660

11. Analysis of net assets between funds

Current assets
Current liabilities
Net assets at 31 July 2021
Prior period comparative
Current assets
Current liabilities
Net assets at 31 July 2020		 Restricted
funds
£
31,638
(2,726)
28,912
Restricted
funds
£
40,051
(1,960)
38,091		 £
940
-
940
£
940
-
940
Designated
funds
Designated
funds		 General
funds
£
40,407
-
40,407
General
funds
£
34,283
(700)
33,583		 Total
funds
£
72,985
(2,726)
70,259
Total
funds
£
75,274
(2,660)
72,614

15

Fifth Sense

Notes to the financial statements

For the year ended 31 July 2021

12. Movements in funds

Restricted funds
National Lottery Community Fund
Firmenich Charitable Trust
Total restricted funds
Designated funds:
Research fund
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 £
38,091
-
38,091
940
940
33,583
34,523
72,614
At 1
August
2020		 Income
£
60,131
8,050
68,181
-
-
9,128
9,128
77,309		 £
(77,360)
-
(77,360)
-
-
(2,304)
(2,304)
(79,664)
Expenditure		 £
20,862
8,050
At 31 July
2021
28,912
940
940
40,407
41,347
70,259

Purposes of restricted funds National Lottery Community Fund

This fund will be used to deliver the outcomes and activities detailed in our 3 year development plan, as presented to and approved by the NLCF when awarding us this funding and in subsequent reviews.

Firmenich Charitable Trust

This fund will be used to develop smell training kits.

Purposes of designated funds Research fund

This fund will be used to support research projects which seek to identify the needs and potential quality of life improvements of people with smell and taste disorders. All designated funds are held in current assets.

16

Fifth Sense

Notes to the financial statements

For the year ended 31 July 2021

12. Movements in funds (continued)

Prior period comparative
Restricted funds
National Lottery Community Fund
Total restricted funds
Designated funds:
Research fund
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1
August
2019
-
-
940
940
24,901
25,841
25,841		 Income
£
67,054
67,054
-
-
15,059
15,059
82,113		 Expenditure
£
(28,963)
(28,963)
-
-
(6,377)
(6,377)
(35,340)		 £
38,091
At 31 July
2020
38,091
940
940
33,583
34,523
72,614

13. Related party transactions

There were no related party transactions during the current or prior year.

17