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2020-03-31-accounts

Company number: 748773 Charity Number: 244866

Birmingham Industrial Therapy Association Limited

Report and financial statements For the year ended 31 March 2020

Birmingham Industrial Therapy Association Limited

Contents

For the year ended 31 March 2020

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 17 Statement of financial activities (incorporating an income and expenditure account) ................... 21 Balance sheet ............................................................................................................................... 22 Statement of cash flows ................................................................................................................ 23 Notes to the financial statements ................................................................................................. 24

Birmingham Industrial Therapy Association Limited

Reference and administrative information

For the year ended 31 March 2020

Company number 748773
Country of incorporation United Kingdom
Charity number 244866
Country of registration England & Wales
Operating Name: BETTER Pathways
Registered office 201-206 Alcester Street
and operational Digbeth
address Birmingham
B12 0NQ
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:
Mr Simon Lawrence Chair
Mr Ben Brittain
Dr Martin Commander
Ms Chaitali Desai
Ms Janine Garvie-Cole
Mr Jordan Kirkwood
Mr Les A Latchman
Ms Ranjit Nall
Mr Jagvir Purewal
Ms Diane Ryles Appointed 9 December 2019
Mr Mike Smith
Ms Laura Charles Resigned 9 December 2019
Mr Peter Townley Resigned 9 December 2019
Key management Ms Sue Roberts Chief Executive and Company Secretary
Personnel
Bankers CAF Bank Ltd Unity Trust Bank
25 Kings Hill Avenue Four Brindley Place
Kings Hill, West Mailing Birmingham
Kent B1 2JB
ME19 4JQ
Lloyds Bank
PO Box 1000
Andover
BX1 1LT

1

Birmingham Industrial Therapy Association Limited

Reference and administrative information

For the year ended 31 March 2020

Solicitor Shakespeares Legal LLP Somerset House Temple Street Birmingham B2 5DJ Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

2

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

The trustees present their report and the audited financial statements for the year ended 31 March 2020.

Reference and administrative information set out on pages 1 and 2 forms part of this report. The financial statements comply with current statutory requirements, the requirements of a directors’ report as required under company law, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Aims

The aims of the Charity are set out in the Articles of Association. Our overarching purpose is to improve the well-being of people experiencing poor mental health through volunteering, work experience, employment, training and a range of therapeutic activities with the aim of growing a person’s sense of self-esteem, confidence and independence. The Charity’s objects are specifically restricted to the following:

  1. To work in partnership with people with mental health conditions in order to assist and empower them in their recovery and improve their mental health and wellbeing

  2. To help and support people with mental health conditions to find and keep suitable employment

  3. To provide people with mental health conditions opportunities for volunteering, work experience, training and rewarding activities

  4. To assist people with mental health conditions to find and take part in rewarding activities within their communities

  5. To raise awareness of the importance of mental health with employers and others and promote the employment of people with mental health problems

  6. To provide support to the carers of people with mental health conditions

  7. To provide material support to people with mental health conditions who are volunteering or gaining work experience at the Charity in order to help them take part in the charity’s activities.

Located in Alcester Street, Digbeth since 1995, Better Pathways supports some of the most vulnerable people in our communities, many of whom would have limited alternative sources of support were we not available to them. Over the years, our client group has expanded. In addition to supporting people with serious mental illness, we support people with mild and moderate poor mental health and with learning disabilities and learning difficulties. We seek to understand what matters most to the people we support and to help them design person-centred plans that play to their strengths and develop their abilities so that their aspirations for the future can be achieved.

3

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

The Year: 2019/2020

The consolidation we began in 2018/2019 has continued into 2019/2020. The closure in June 2018 of loss-making enterprises, Park Lane Garden Centre and Textiles by St Anne’s, was followed by the closure of our canteen in March 2018. Closing the canteen was a cause for sadness at Better Pathways and we very much hope to be able to re-open an on-site cafeteria in the future when funding allows. In the meantime, there is a dedicated refreshment area where our people can prepare hot snacks and drinks.

Our Charitable Services

Our Woodcraft Workshop produces items for sale made from reclaimed and donated timber. We are proud of a new association with the Edinburgh Napier University whose students have designed products for our volunteers to craft based on a shared understanding of the skills, tools and resources we have at our disposal. We have a portfolio of products designed, drawn and specified to that we are selling on our Etsy and Shopify sites.

The service focuses on improving participants’ understanding of the world of work and of what employers want. They gain valuable experience in personal organisation (getting ready for ‘work’, packing lunches, travelling to a destination on time), and in following instructions and delivering work related outputs. Ultimately participating in our social enterprise improves people’s chances of securing paid employment.

Our Statutory sector services

4

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

MHRE teams work closely with Birmingham and Solihull Mental Health Trust, with Forward Thinking Birmingham and with GPs, whose clinical teams refer patients for support under this contract.

Other income generating services: Mental health and wellbeing

Our mental health first aid training offer continued until November 2019 after which this offer was paused upon the departure of our two trainers who left to set up a new service in the NHS. At the time of writing we are preparing for the launch of an exciting new offer in the field of mental health and wellbeing aimed, initially, at employer support for improved mental health and wellbeing in the workplace.

Who benefits from our services?

Our social enterprise in Digbeth supported 136 people living in Birmingham and the immediately surrounding areas in 2019/2020. Our 13-week work experience programme accounted for 17 of these people.

Of the 119 people participating in our packing and assembly and woodcraft enterprises all attend to maintain good mental health and wellbeing with upwards of 75% (83 people) also having some form of learning difficulty or disability. Males accounted for 95 of our 119 participants, females for 24. Our oldest participant is in their 70s, our youngest in their 20s. The longest attending participant has been coming to the service for 40+ years; the shortest for one year. The ethnic breakdown of our 111 social enterprise participants is as follows:

White British x 71; Mixed race Caribbean x 1; Mixed race Asian x 1; Chinese x 2; Asian x 21; Black Ethiopian x 1; Black Somalian x 1; Black Caribbean x 19.

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Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

On our work experience programme, males accounted for 16 participants, females for one. The ethnic breakdown of participants is as follows:

White British x 12; Mixed race Caribbean x 1; Mixed race Asian x 1; Asian x 2; Black Caribbean x 1

Express signs in Solihull, a much smaller service, supported nine people in the year 2019/2020.

Express Signs ’ participants come with a range of unique support needs and abilities. The service is attended by eight males and one female. Participants range in age from 42 – 72. The ethnic breakdown of our nine participants is as follows:

White British x 7; Mixed race Caribbean x 1; Asian Sikh x 1

In our mental health first aid service for the year to November 2019 our mental health instructors delivered 34 courses to 253 delegates attending from across the West Midlands. Some of our courses were delivered in our customer locations across the West Midlands and beyond.

Our social impact

Better Pathways addresses important areas of public benefit. Unemployment in people with mental ill health is a major public health issue. Inactivity and social isolation associated with poor mental health blights lives of sufferers and their families. We know that our work with participants succeeds in addressing the loneliness they would otherwise feel from being socially isolated, offering companionship, encouraging friendship, a sense of belonging and self-worth through all our activities.

What our participants say about us

We are proud to report below some of the positive feedback we have had from the people who participate in our services…

Better Assembly Services

“I’ve been coming here since 2004. I feel very well, I am now confident in what I do here”

“Makes me happy coming here. Can see all my friends. I was at home doing nothing, sitting in my room. My sister brought me here. I am trying to find a job; someone is helping me with this. I am finding it easier to look for work. I feel able to do more activities now.”

6

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

A recent survey of participants in our packing and assembly social enterprise revealed the following:

28% of members report being work-ready and seeking work 54% report an increased ability to make friends and build new relationships 77% report increased self confidence 82% feel supported 86% feel better able to make friendships 77% have a sense of belonging when attending Better Assembly Services 73% have increased ability and confidence to pick up new skills 45% indicate improved ability to deal with problems in life 54% have improved general happiness 50% have positive feeling and hope for the future

Express Signs

“I’ve learnt how to do badges, learnt a bit on computer … a sense of achievement when doing something right with help”

55% report increased confidence

55% report being supported at Express Signs

44% report a sense of belonging and the ability and confidence to pick up new skills. 55% report general happiness

7

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

Case Study: Support for Carers

1. How does coming to BAS help your family?

Support gives the family a break, especially mum who has medical needs of her own. Lower back pain. She is over 70. It helps to keep the two brothers living at home apart (that they both have a learning disability creates tension when they argue). Mum finds it difficult to cope. She is so grateful for what we do, they would struggle without our support.

2. What have you noticed about him as a result of his coming to BAS?

He comes home refreshed. If he’s left the house not feeling himself he comes home a different person. He is comfortable coming to BAS and doesn’t want to move. BAS has been amazing and has helped a lot to calm him down. They have provided external support at times. For example, the impact of his behaviour on his mum. He came home once and apologised and hugged his mum. That meant a lot to her.

Economic impact: the value of our volunteer hours

‘In 2019 there were an estimated 208,000 volunteers working in 9,000 community businesses across England. These volunteers contributed up to an estimated 18 million hours of time and £250 million of services in 2019. Volunteers provide a wide variety of support to community businesses. In 2019 the estimated average equivalent market hourly wage rate across this range of activities was around £13.70. This is slightly above the UK median hourly earnings rate for all occupations of £13.20 (by 3.5 per cent).’ Power to Change Assessing the value of volunteers in Community Businesses [2020].

119 BAS volunteers (in packing and assembly and woodcraft) undertook 70,464 hours of volunteering in the year (calculated over 48 weeks). Using the average equivalent market hourly wage rate of £13.70 we arrive at an annual economic value of our volunteering activity of £965,357.

In Express Signs, 3,168 hours were volunteered, equating to a value of £43,402.

Social impact: future reporting

‘Demonstrating the difference one makes through impact measurement and evaluation is increasingly important for voluntary organisations. The ‘Theory of Change’ is a flexible methodology with a wide range of uses to underpin the planning and evaluation of services throughout an organisation. It is a description of why a particular way of working will be effective, showing how change happens in the short, medium and long term to achieve the intended impact.’ (Source: ‘NCVO, KnowHow’ Website)

We know that our support makes a big difference to the lives of our volunteer participants. We also know that reliance on statutory and other public sector services, for example on health and social care services, is reduced. We aim to grow our capacity to develop a more systematic

8

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

approach to evaluating the impact of our charitable services on the people who use them and on society more broadly. This will enable us to set out more clearly the way in which the impact of our interventions directly links back to the difference we set out to make for the people we support. It will also help us to set out the broader economic impacts of our work. Adopting a ‘theory of change’ approach, we will agree person-centred plans with our clients designed to achieve the outcomes they want. We will agree the issues our clients are facing and the difference they want our services to make, what we will do to make this difference and a way of tracking progress towards their goals. We will learn lessons as we go and adapt our plans and approaches accordingly. Our organisational goal is to have the data we need to plug our gaps in social impact reporting in time for the annual reporting year 2021/2022.

Financial results 2019/2020

Total income in the year increased by 1.5% from £2,571k in 2018/19 to £2,611k in 2019/20. During the year core activities income increased by 12.8% from £1,831k in 2018/19 to £2,066k in 2019/20. This was largely owing to an additional £225k received from Birmingham and Solihull CCG for the IPS Wave 2 contract. Recovery and employment income decreased by 22% from £421k to £326k mainly owing to the ending of the Neurodiverse programme in September 2019 and the Youth Promise Plus contract which was discontinued during 2018/19. Sales in the social enterprise better assembly services fell in the year resulting in an income reduction of 17%, from £180k in 2018/19 to £149k in 2019/20. The service’s temporary closure part way through March as a result of COVID-19 contributed to this drop in sales.

Staff numbers reduced from 43 to 31 in the year as a result of departmental closures and a restructure, leading to a decrease in expenditure of £215k (13%), from £2,879k to £2,508k.

These movements resulted in Better Pathways making a surplus of £102k and having funds of £557k to carry forward at the year ended 31 March 2020. Of these funds, £39k are restricted, £229k designated unrestricted funds and £289k general unrestricted funds. The designated funds largely relate to the tangible fixed asset fund so do not form part of our calculation of free reserves. This fund represents the net book value of fixed assets purchased through general funds. Depreciation is charged against this fund.

Fundraising

We appointed a professional fundraiser who started at Better Pathways in September 2019. For the year 2019/2020 our fundraiser raised £33k from grant giving trusts and foundations. We are grateful to the funders who have responded so positively to our bids for support and we are pleased to acknowledge them later in this report.

We are not registered with the Fundraising Regulator and can confirm we have not received any complaints in the year.

9

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

Principal funding sources

In respect of our statutory sector contracts our sources of funding are:

We are grateful to the following organisations for their generous grants in 2019/20. Funds from these organisations have helped us to deliver our various activities for the benefit of our service users:

ERDF Catalyst Enterprise Grant

Big Lottery The Rowlands Trust Wesleyan Foundation National Lottery Community Fund The Roger & Douglas Turner Charitable Trust The Grimmett Trust

Birmingham District Nursing Charitable Trust The Eveson Charitable Trust

Donald Forrester Trust

Principal risks and mitigations

The Charity’s principal risks are:

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Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

Reserves policy and going concern

The trustees’ policy is to maintain 90 days’ expenditure in the general reserves to provide working capital and reserves for unforeseen reductions in cash flow. The general reserve at 31 March 2020 amounted to 51 days expenditure; last year this was standing at 36 days. Actions to recover this position are being addressed by the Board as set out elsewhere in this report.

The Charity’s headquarters building in Alcester Street is over 75 years old. In the year ending 31[st] March 2019, we moved £44,162 from the premises improvement fund into general reserves to improve our premises and to undertake additional repairs to the building. Roof repairs so far account for £8k, further repairs are required (quote pending), £10k is required for a strategic design document being produced by APEC Architects that will set out options for a buildings refurbishment scheme, and the remainder will be used to implement recommendations contained in the recent Health & Safety report produced by Safety Forward, our H&S consultants. The buildings refurbishment strategic design document will, subject to Board approval, be used to launch a capital fundraising appeal once it is finalised.

In the year ending 31[st] March 2019, we moved £16,041 from the Future Investment Social Enterprises Fund into general reserves. This was to support Better Assembly Services with additional marketing and promotion with the aim of increasing productivity, income and the wellbeing of our service users.

In the year ending 31[st] March 2020, £103,485 was transferred to the Tangible Fixed Assets designated fund to bring the closing balance in line with the current year net book value excluding any restricted capital funds.

The funds allocated to designated funds will be used solely for investment in charitable activities. Investment will improve the services on offer and support new investments in the future.

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Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

Our Plans

Accreditations

12

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated in England and Wales in September 1965 and registered as a Charity on 11 February 1963.

The company was established under a memorandum of association, which established the objects and powers of the charitable company and is governed under its articles of association.

All trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity are set out in note 6 to the accounts.

Trustees are elected at the general meeting. Nominations for additional trustees may be made by Board members. All directors serve in an honorary capacity and are the trustees of the charity. There is a rotational process in place with three trustees retiring from the board each year; however, these trustees can offer themselves for re-election should they wish to do so. We try to ensure that Board members reflect appropriate diversity in terms of age, gender and ethnicity and possess the skills required to direct the organisation.

At no time during the year did any trustee have an interest in a contract entered into by the Association in relation to the activities of the Association other than their involvement as employees of Mental Health Trusts.

No remuneration or other benefits have been paid or are payable to any trustee of the Association either directly or indirectly from the funds of the Association.

The overall policy of the Association is set by the trustees at regular meetings of the Board. Day to day running of the Association is managed by the Chief Executive, Sue Roberts, and her support staff. Three sub-committees meet on a quarterly basis. Regular feedback is obtained from the Service User Forum made up of service users engaged in activities with the Association.

Appointment of trustees

We use the guidance for trustee recruitment published by the Charity Commission. Regular skills audits are completed, gaps are identified, and new Trustees appointed based on these gaps.

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Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

Trustee induction and training

The Trustee induction handbook covers training to be undertaken, visits to be made, meetings to be attended:

Required reading includes:

Related parties and relationships with other organisations

No relationships exist between the Association and any related parties and there are no subsidiary undertakings.

The Association cooperates with other charities in the pursuit of its charitable objectives.

Remuneration policy for key management personnel

The Board has a remuneration committee comprising the Chair of the Board and the Chair of Finance, Audit & Risk Sub-Committee. The Chair conducts the annual appraisal of the Chief Executive and agrees her salary, which is benchmarked against comparable organisations in the not for profit sector. The salary is endorsed by the full Board.

Policy for employment of disabled persons

The Association has an Equality and Diversity policy which commits the Association to examine its selection and appointment process, personnel procedures and training provisions to ensure the elimination of direct or indirect discrimination and the provision of equality of opportunity for the protected characteristics contained with the Equality Act 2010.

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Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

There are regular reviews to maintain good employment practices and those engaged in the selection process will be made aware of the Equality and Diversity Policy, the Acts and their personal liability to law.

Employee information

The Association aims to provide employees with as much information as possible on matters of concern to them as employees. Responsibility for doing this rests with members of the Senior Leadership Team, coordinated through the Head of Human Resources.

Funds held as custodian trustee on behalf of others

No funds are held by the Association as custodian trustee on behalf of others.

Statement of responsibilities of the trustees

The trustees (who are also directors of Birmingham Industrial Therapy Association Ltd for the purposes of company law) are responsible for preparing the trustees’ annual report including the strategic report 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 these financial statements, the trustees are required to:

15

Birmingham Industrial Therapy Association Limited

Trustees’ annual report

For the year ended 31 March 2020

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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:

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.

Trustees are appointed by the Charity’s members (who guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of such guarantees at 31 March 2020 was 11 (2019: 12). As members, trustees have a right to vote; they have no beneficial interest in the Charity.

The trustees’ annual report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The trustees’ annual report has been approved by the trustees on 15 February 2021 and signed on their behalf by

Simon Lawrence Chair, Board of Trustees

Sue Roberts Chief Executive Officer

16

Independent auditor’s report

To the members of

Birmingham Industrial Therapy Association Limited

Opinion

We have audited the financial statements of Birmingham Industrial Therapy Association Limited (the ‘charitable company’) for the year ended 31 March 2020 which comprise the statement of financial activities, balance sheet, statement of cash flows 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s 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 enough and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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

17

Independent auditor’s report

To the members of

Birmingham Industrial Therapy Association Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

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 trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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.

18

Independent auditor’s report

To the members of

Birmingham Industrial Therapy Association Limited

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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 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 based on these financial statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

19

Independent auditor’s report

To the members of

Birmingham Industrial Therapy Association Limited

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 auditor’s 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.

Fleur Holden (Senior statutory auditor) 25 February 2021 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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Birmingham Industrial Therapy Association Limited

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

For the year ended 31 March 2020

For theyear ended 31 March 2020 For theyear ended 31 March 2020
Unrestricted
continuing
activities
Note
£
Income from:
-
3
2,052,962
3
326,806
3
128,586
3
69,393
3a
-
3a
-
-
-
2,577,747
4
2,129,479
4
-
4
233,749
4
-
4
102,484
2,465,712
112,035
17
112,035
Reconciliation of funds:
406,446
518,481
Total funds brought forward
Total funds carried forward
Net movement in funds
Core activities
Recovery and Employment
Total expenditure
Net income / (expenditure) for the year
Charitable activities
Social Enterprise - Park Lane Garden Centre
Social Enterprise - Production Assembly Services
Social Enterprise - Express Signs
Social Enterprise - Textiles' by St. Anne's
Social Enterprise - Production Assembly Services
Social Enterprise - Express Signs
Recovery and Employment
Bank Interest
Other Income
Total income
Expenditure on:
Charitable activities (discontinued operations)
Social Enterprise - Park Lane Garden Centre
Social Enterprise - Textiles' by St. Anne's
Donations
Charitable activities		 £
-
-
-
-
-
-
-
-
-
Unrestricted
discontinued
activities		 Restricted
continuing
activities
£
-
13,000
-
20,000
-
-
-
-
-


 £
-
2,065,962
326,806
148,586
69,393
-
-
-
-
2020
Total		 £
31,327
1,800,008
421,463
179,636
74,821
14,399
31,636
189
17,574
2019
Total
2,577,747 - 33,000 2,610,747 2,571,053
2,129,479
-
233,749
-
102,484		 -
-
-
-
-		 -
-
42,682
-
-		 2,129,479
-
276,431
-
102,484		 2,130,276
145,905
357,378
138,875
106,588
2,465,712 - 42,682 2,508,394 2,879,022
112,035
112,035
406,446		 -
-
-		 (9,682)
(9,682)
48,698		 102,353
102,353
455,144		 (307,969)
(307,969)
763,113
518,481 - 39,016 557,497 455,144

All of the above results are derived from continuing activities, except where shown. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 17 to the financial statements.

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Birmingham Industrial Therapy Association Limited

Company no. 00748773

Balance sheet

As at 31 March 2020

Note
Fixed assets:
10
Current assets:
11
12
Liabilities:
13
17
Total unrestricted funds
Total assets less current liabilities
Stock
Debtors
Restricted income funds
Unrestricted income funds:
Designated funds
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Cash at bank and in hand
Short Term Deposit
Tangible assets
General funds
Total charity funds		 £
4,730
156,022
75,769
309,383		 2020
£
241,935		 £
3,763
101,552
75,609
416,504		 2019
£
273,329
241,935
315,562		 273,329
181,815
545,904
230,342		 597,428
415,613
228,671
289,810		 158,539
247,907
557,497 455,144
557,497 455,144
39,016
518,481		 48,698
406,446
557,497 455,144

Approved by the trustees on 15th February 2021 and signed on their behalf by

Simon Lawrence Chair

22

Birmingham Industrial Therapy Association Limited

Statement of cash flows

For the year ended 31 March 2020

Note
£
£
19
(102,139)
160
-
(4,982)
(4,822)
(106,961)
492,113
20
385,152
Cash flows from operating activities
Cash flows from financing activities:
Net cash used in investing activities
Net cash used in operating activities
Cash flows from investing activities:
Interest received
Sales of fixed assets
Purchase of fixed assets
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2020		 Note
£
£
19
(102,139)
160
-
(4,982)
(4,822)
(106,961)
492,113
20
385,152
Cash flows from operating activities
Cash flows from financing activities:
Net cash used in investing activities
Net cash used in operating activities
Cash flows from investing activities:
Interest received
Sales of fixed assets
Purchase of fixed assets
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2020		 Note
£
£
19
(102,139)
160
-
(4,982)
(4,822)
(106,961)
492,113
20
385,152
Cash flows from operating activities
Cash flows from financing activities:
Net cash used in investing activities
Net cash used in operating activities
Cash flows from investing activities:
Interest received
Sales of fixed assets
Purchase of fixed assets
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2020		 £
£
162,217
189
8,056
(52,859)
(44,614)
117,603
374,510
492,113
2019		 £
£
162,217
189
8,056
(52,859)
(44,614)
117,603
374,510
492,113
2019
(106,961)
492,113		 117,603
374,510
385,152 492,113

23

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

a) Statutory information

Birmingham Industrial Therapy Association Limited is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address and principle place of business is 201-206 Alcester Street, Digbeth, Birmingham, B12 0NQ.

b) Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

The charitable company meets the definition of a public benefit entity under FRS 102.

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Discontinued operations

Income and expenditure for the year to 31 March 2019 relating to the social enterprises Park Lane Garden Centre and Textiles by St Anne’s have been classified as discontinued operations as both of these social enterprises were closed during the year. No operations were discontinued in the year to 31 March 2020. In the year to 31 March 2021 operations will be continuing but at a reduced level due to the cessation of the MHRE contract on 31 March 2021. This is explained in more detail in the trustees' annual report.

f) Income

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

Income from 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.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

g) 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.

h) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) 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. Expenditure is classified under the following activity headings:

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

24

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of staff time by each activity.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £250. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

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.

p) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

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.

r) Creditors and provisions

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.

s) Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

t) Pensions

The charity has a NEST pension scheme to offer all employees. The charity is contributing a minimum employer contribution percentage into the scheme set by the Pension Regulator.

25

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

Charitable activities (discontinued operations):
Learning and Work
Social Enterprise - Park Lane Garden Centre
Social Enterprise - Production Assembly Services
Social Enterprise - Textiles' by St Anne's
Social Enterprise - Express Signs
Core activities
Learning and Work
Social Enterprise - Express Signs
Social Enterprise - Park Lane Garden Centre
Social Enterprise - Textiles' by St Anne's
Social Enterprise - Production Assembly Services
Other
Net (expenditure) for the year
Income from:
Donations
Total expenditure
Charitable activities:
Bank interest
Total income
Expenditure on:
Charitable activities:		 £
31,327
1,800,008
404,978
100,080
74,821
-
-
189
17,574
Unrestricted
continuing
activities		 £
-
-
-
-
-
14,399
31,636
-
-
Unrestricted
discontinued
activities		 Restricted
continuing
activities
£
-
-
16,485
79,556
-
-
-
-
-		 £
31,327
1,800,008
421,463
179,636
74,821
14,399
31,636
189
17,574
2019
Total
2,428,977 46,035 96,041 2,571,053
2,130,276
-
273,665
-
106,588		 -
129,420
-
138,875
-		 -
16,485
83,713
-
-		 2,130,276
145,905
357,378
138,875
106,588
2,510,529 268,295 100,198 2,879,022
(81,552) (222,260) (4,157) (307,969)

26

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

Total for Social Enterprise - Better Assembly Services
Prospects - Thrive into Work
Birmingham Solihull Mental Health Trust
Birmingham City Cross CCG Funding
Other
Total for Core Activities
Birmingham City Council- Neurodiverse
Grant funding for core activities
Mental Health First Aid Training
Building Better Opportunities
Birmingham City Council -Youth Promise Plus
Birmingham City Council - IAG, Employability
Total for Recovery and Employment
Earned Income
Total for Social Enterprise - Park Lane Garden Centre
Birmingham and Sandwell Councils
Earned Income
Earned Income
Birmingham City University
Total for Social Enterprise - Textiles' By St. Anne's
Birmingham Solihull Mental Health Trust
Earned Income
Total for Social Enterprise - Express Signs
Total income from charitable activities		 £
2,023,539
-
29,423
Unrestricted
continuing
activities		 Restricted
continuing
activities
£
-
13,000
-		 2020
Total
£
2,023,539
13,000
29,423		 2019
Total
£
1,733,700
57,277
9,031
2,052,962
55,000
145,238
80,894
45,674
-
-
-		 13,000
-
-
-
-
-
-
-		 2,065,962
55,000
145,238
80,894
45,674
-
-
-		 1,800,008
110,000
124,402
15,407
40,466
16,485
108,482
6,221
326,806
-		 -
-		 326,806
-		 421,463
14,399
-
7,651
120,935		 -
-
20,000		 -
7,651
140,935		 14,399
-
179,636
128,586
-
-		 20,000
-
-		 148,586
-
-		 179,636
26,971
4,665
-
53,000
16,393		 -
-
-		 -
53,000
16,393		 31,636
53,000
21,821
69,393 - 69,393 74,821
2,577,747 33,000 2,610,747 2,521,963

27

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

Birmingham City Cross CCG Funding
Grant funding for core activities
Other
Total for Core Activities
West Midlands Police
Building Better Opportunities
Thrive- Prospects
Birmingham Solihull Mental Health Trust
Social Investment Business Limited
Training Delivery- MHFA
Birmingham City Council -Youth Promise Plus
Youth Promise Plus - Prospects
Birmingham City Council - IAG, Employability
Birmingham City Council- Neurodiverse
Total for Learning and Work
Birmingham Metropolitan College
Earned Income
Total for Social Enterprise-Park Lane Garden Centre
Birmingham and Sandwell Councils
Earned Income
Total for Social Enterprise- Production Assembly Services
Earned Income
Birmingham City University
Total for Social Enterprise- Textiles' By St. Anne's
Birmingham Solihull Mental Health Trust
Earned Income
Total for Social Enterprise- Express Signs
Total income from charitable activities		 Unrestricted
continuing
activities
1,733,700
57,277
9,031		 -
-
-
Unrestricted
discontinued
activities		 Restricted
continuing
activities
£
-
-
-		 2019
Total
£
1,733,700
57,277
9,031		 2018
Total
£
963150
-
-
1,800,008
-
-
124,402
15,407
-
40,466
108,482
-
6,221
110,000		 -
-
-
-
-
-
-
-
-
-		 -
-
16,485
-
-
-
-
-
-
-
-		 1,800,008
-
16,485
124,402
15,407
-
40,466
108,482
-
6,221
110,000		 963,150
37,500
60,393
2,904
-
50,975
6,825
388,544
49,543
43,531
-
404,978
-
-		 -
-
14,399		 16,485
-
-		 421,463
-
14,399		 640,215
1,500
83,246
-
-
100,080		 14,399
-
-		 -
-
79,556		 14,399
-
179,636		 84,746
10,570
187,021
100,080
-
-		 -
26,971
4,665		 79,556
-
-		 179,636
26,971
4,665		 197,591
82,640
3,339
-
53,000
21,821		 31,636
-
-		 -
-
-		 31,636
53,000
21,821		 85,979
53,000
22,700
74,821 - - 74,821 75,700
2,379,887 46,035 96,041 2,521,963 2,047,381

28

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

4a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 6)
Delivery by other partners
Recruitment, training and consultancy
Travel
Material
Clients Allowance and training
Premises Cost
Communication
Canteen and sundry expenses
Audit fee
Marketing
Bank charges
Depreciation
Loss on fixed assets disposal
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Recovery
and
Employment
£
620,821
1,167,004
6,730
7,541
4,669
6,979
42,902
66,087
5,633
-
295
697
4,874
-

Social
Enterprise -
Production
Assembly
Services
£
75,939
-
7,875
8,764
21
39,143
18,557
9,268
875
-
190
127
7,950
-



Social
Enterprise -
Express
Signs
£
43,000
-
-
-
3,105
1,945
16,241
4,423
50
-
-
57
-
-		 Discontinued operations Discontinued operations Governance
costs
£
-
-
-
-
-
-
-
-
-
8,050
-
-
-
-		 Support
costs
£
220,421
-
23,247
1,670
-
2,494
30,883
18,426
7,215
-
503
171
23,552
-
2020
Total
£
960,181
1,167,004
37,852
17,975
7,795
50,561
108,583
98,204
13,773
8,050
988
1,052
36,376
-		 2019
Total
£
1,175,049
1,189,872
43,298
19,151
38,971
64,752
161,046
83,674
34,955
7,900
6,018
2,676
44,214
7,445
Social
Enterprise -
Park Lane
Garden
Centre
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Social
Enterprise -
Textiles' by
St. Anne's
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,934,232
190,578
4,669		 168,709
105,146
2,576		 68,821
32,858
805		 -
-
-		 -
-		 8,050
-
(8,050)		 328,582
(328,582)
-		 2,508,394
-
-		 2,879,022
-
-
2,129,479 276,431 102,484 - - - - 2,508,394 2,879,022
2,130,276 357,378 106,588 145,905 138,875 - - 2,879,022

29

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

4b Analysis of expenditure (prior year)

Charitable activities

Staff costs (Note 6)
Delivery by other partners
Recruitment, training and consultancy
Travel
Material
Clients Allowance and training
Premises Cost
Communication
Canteen and sundry expenses
Audit fee
Marketing
Bank charges
Depreciation
Loss on fixed assets disposal
Support costs
Governance costs
Total expenditure 2019
Total expenditure 2018		 Recovery
and
Employment
£
610,631
1,189,872
22,690
3,362
1,147
11,418
38,737
51,310
10,074
-
693
997
5,061
-
1,945,992
175,486
8,798
2,130,276
1,063,334		 Social
Enterprise -
Production
Assembly
Services
£
124,345
-
-
11,894
8,440
46,654
48,194
5,790
12,255
-
-
655
10,920
3,767



Social
Enterprise -
Express
Signs
£
43,000
-
-
12
5,035
2,569
14,895
2,685
-
-
-
-
-
-		 Discontinued operations Discontinued operations Governance
costs
£
10,429
-
-
-
-
-
-
-
-
7,900
-
-
-
-		 Support
costs
£
256,911
-
20,025
2,003
489
3,067
19,827
21,945
12,123
-
3,745
-
23,851
1,610
2019
Total
£
1,175,049
1,189,872
43,298
19,151
38,971
64,752
161,046
83,674
34,955
7,900
6,018
2,676
44,214
7,445		 2018
Total
£
1,234,409
-
182,235
18,722
57,398
101,507
183,539
40,139
39,783
7,592
13,190
1,693
29,979
2,090
Social
Enterprise -
Park Lane
Garden
Centre
£
65,743
-
-
1,776
9,042
875
24,887
816
371
-
-
1,009
1,632
1,362		 Social
Enterprise -
Textiles' by
St. Anne's
£
63,991
-
584
103
14,818
169
14,506
1,128
132
-
1,580
15
2,750
706
272,914
80,432
4,032		 68,196
36,559
1,833		 107,513
36,559
1,833		 100,482
36,560
1,833		 18,329
-
(18,329)		 365,596
(365,596)
-		 2,879,022
-
-		 1,912,276
-
-
357,378 106,588 145,905 138,875 - - 2,879,022 1,912,276
285,172 89,601 278,475 195,694 - - 1,912,276

30

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2020
£
36,376
14,896
25,472
8,050
2020
£
807,937
20,487
71,969
43,000
16,789
960,182
Other Staff Costs
Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Salaries and wages
Social security costs
Redundancy and termination costs
Staff costs were as follows:
Employer’s contribution to defined contribution pension schemes
Operating lease rentals:
Auditors' remuneration (excluding VAT):
Depreciation
Property
Other
Audit		 2020
£
36,376
14,896
25,472
8,050		 2019
£
44,214
29,750
20,058
8,400
2019
£
966,915
62,383
89,197
43,000
13,554
960,182 1,175,049

In 2020, due to restructuring the charity made some employees redundant. The redundancy costs totalled £13,088 (2019: £62,383) and were fully paid during the year.

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2020 2019
No. No.
£70,000 - £79,999 1 -
£80,000 - £89,999 - 1

The total employee benefits (including employer's pension contributions and employer's national insurance) of the key management personnel were £79,785 (2019: £104,296)

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £Nil (2019: £714) incurred by 0 (2019: 1) members relating to attendance at meetings of the trustees.

7 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Recovery & Employment
Social Enterprise- Park Lane Garden Centre
Social Enterprise- Textiles' By St. Anne's
Social Enterprise- Production Assembly Services
Training
Support		 2020
No.
20.8
1.3
-
3.7
-
6.0		 2019
No.
22.4
2.0
1.3
5.5
3.3
8.9
31.8 43.4

8 Related party transactions

Aggregated donations from related parties were £Nil (2019: £65).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

Martin Commander, Vice Chair Board of Trustees is a paid consultant to Birmingham Solihull Mental Health Trust (BSMHFT). During the year the charity receieved income of £80,894 (2019: £15,407) from BSMHFT which was provided on an arms length basis.

31

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

9 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10 Tangible fixed assets

Tangible fixed assets
At the start of the year
Additions in year
Disposals in year
Cost
Depreciation
Eliminated on disposal
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the end of the year
At the start of the year
Net book value		 Freehold
property
£
312,910
-
-		 Plant, fixtures
and fittings
£
304,270
-
-		 Computer
equipment
£
169,486
4,982
-
Motor
vehicles
£
26,163
-
(26,163)		 Total
£
812,829
4,982
(26,163)
312,910 304,270 174,468 - 791,648
147,674
6,492
-		 239,393
12,838
-		 126,270
17,045
-		 26,163
-
(26,163)		 539,500
36,376
(26,163)
154,166 252,231 143,315 - 549,713
158,744 52,039 31,153 - 241,935
165,236 64,877 43,216 - 273,329

Land with a value of £36,625 (2019: £36,625) is included within freehold property and not depreciated.

All of the above assets are used for charitable purposes.

11 Stock

Stock
Debtors
Finished goods
Trade debtors
Prepayments		 2020
£
4,730		 2019
£
3,763
4,730 3,763
2020
£
123,202
32,820		 2019
£
63,095
38,457
156,022 101,552

32

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

Creditors: amounts falling due within one year
2020 2019
£ £
Trade creditors 158,793 295,311
Taxation and social security 25,284 32,098
Accruals 24,436 27,804
Deferred income (note 14) 21,829 60,400
230,342 415,613
Deferred income
Deferred income comprises participant costs received in advance.
2020 2019
£ £
Balance at the beginning of the year 60,400 57,571
Amount released to income in the year (47,846) (9,725)
Amount deferred in the year 9,275 12,554
Balance at the end of the year 21,829 60,400

15 Pension Scheme

The charity pays employer’s contributions into the NHS pension scheme for some employees. The charity offers an auto-enrolment into the NEST pension scheme. At the end of the year the liability of the NHS pension was £nil (2019: £nil) and the liability of the NEST pension scheme was £nil (2019: £nil).

Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”. An outline of these follows:

a) Accounting valuation

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2020, is based on valuation data as at 31 March 2019, updated to 31 March 2020 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

b) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.

The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019. The Department of Health and Social Care have recently laid Scheme Regulations confirming that the employer contribution rate will increase to 20.6% of pensionable pay from this date.

The 2016 funding valuation was also expected to test the cost of the Scheme relative to the employer cost cap set following the 2012 valuation. Following a judgment from the Court of Appeal in December 2018 Government announced a pause to that part of the valuation process pending conclusion of the continuing legal process.

The charity pays employer's contributions into the NHS pension scheme for some employees. The charity offers an auto-enrolment into the NEST pension scheme. At the end of the year the liability of the NHS pension was £nil (2019: £nil) and the liability of the NEST pension scheme was £nil (2019: £nil).

33

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

16a
Analysis of net assets between funds (current year)
16b
17a
National Lottery Community Fund
The Roger & Douglas Turner Charitable Trust
The Grimmett Trust
Birmingham District Nursing Charitable Trust
The Eveson Charitable Trust
Donald Forrester Trust
Other Small Restricted Grants
Total restricted funds
Total designated funds
General funds
Restricted funds:
Freehold Property
Net assets at 31 March 2019
Tangible fixed assets
Net current assets
ERDF Catalysts Enterprises Grant
The Rowlands Trust
Wesleyan Foundation
Unrestricted funds:
Designated funds:
Net current assets
Net assets at 31 March 2020
Analysis of net assets between funds (prior year)
Premises Improvement Fund
Total funds at 31 March 2020
Total unrestricted funds
Tangible Fixed Assets Funds
Future Investment for Social Enterprises
Big Lottery Fund-Garden Pathways
Tangible fixed assets
Movements in funds (current year)		 At 1 April
2019
£
26,787
9,500
2,700
8,000
559
-
-
-
-
-
-
1,152		 General
unrestricted
£
-
289,810		 £
208,671
20,000
Designated		 Restricted
£
33,264
5,752		 Total funds
£
241,935
315,562
289,810 228,671 39,016 557,497
£
95,244
152,663
General
unrestricted		 £
138,539
20,000
Designated		 Restricted
£
39,546
9,152		 £
273,329
181,815
Total funds
247,907 158,539 48,698 455,144
Income
£
-
-
-
-
-
10,000
3,000
2,000
3,000
7,000
5,000
3,000		 Expenditure
£
(1,267)
(1,756)
(300)
(8,000)
(559)
(9,000)
(3,000)
(2,000)
(3,000)
(7,000)
(5,000)
(1,800)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2020
£
25,520
7,744
2,400
-
-
1,000
-
-
-
-
-
2,352
48,698 33,000 (42,682) - 39,016
138,539
10,000
10,000		 -
-
-		 (33,353)
-
-		 103,485
-
-		 208,671
10,000
10,000
158,539 - (33,353) 103,485 228,671
247,907 2,577,747 (2,432,359) (103,485) 289,810
406,446 2,577,747 (2,465,712) - 518,481
455,144 2,610,747 (2,508,394) - 557,497

34

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

Total restricted funds
Total designated funds
General funds
Total funds at 31 March 2019
Big Lottery Fund-Garden Pathways
Freehold Property
The Cloth Workers' Foundation
W. E. Dunn Trust
Other Small Restricted Grants
Big Lottery Fund - Building Better Opportunities
ERDF Catalysts Enterprises Grant
The Pixel Fund
Lord Austin Trust
Birmingham City Council- Youth Promise Plus
Eveson Charitable Trust
CHK Charities
Unrestricted funds:
Designated funds:
Tangible Fixed Assets Funds
Future Investment for Social Enterprises
Premises Improvement Fund
The Patrick Trust
The Rowlands Trust
The Eveson Charitable Trust
William. A Cadbury Charitable Trust
Wesleyan Foundation
Restricted funds:
George Henry Collins Charity
Edward Cadbury Trust
Garfield Weston Foundation
Total unrestricted funds		 At 1 April
2018
£
28,054
-
657
11,256
9,725
-
-
-
2,500
-
-
-
-
-
-
-
-
-
-
663		 Income
£
-
16,485
-
-
-
10,000
7,000
3,000
-
20,000
5,000
15,000
8,000
4,000
1,000
1,000
1,000
1,000
3,556
-		 Expenditure
£
(1,267)
(16,485)
(657)
(1,756)
(9,725)
(10,000)
(7,000)
(300)
(2,500)
(20,000)
(5,000)
(15,000)
-
(4,000)
(1,000)
(1,000)
(1,000)
(1,000)
(2,404)
(104)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2019
£
26,787
-
-
9,500
-
-
-
2,700
-
-
-
-
8,000
-
-
-
-
-
1,152
559
52,855 96,041 (100,198) - 48,698
176,171
26,041
54,162		 -
-
-		 (37,632)
-
-		 -
(16,041)
(44,162)		 138,539
10,000
10,000
256,374 - (37,632) (60,203) 158,539
453,884 2,475,012 (2,741,192) 60,203 247,907
710,258 2,475,012 (2,778,824) - 406,446
763,113 2,571,053 (2,879,022) - 455,144

35

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

18 Purposes of restricted funds

Freehold Property: Funding received from The Big Lottery Fund for improvement to the reception area of the Digbeth premises. Depreciation will be charged to this fund.

ERDF Catalyst Enterprise Grant: This grant was matched funded and assisted us to fund capital items and some salary for Production Assembly Services social enterprise.

Big Lottery Funds: This funding was provided to buy tools for Garden Services project.

The Rowlands Trust: The funds were donated to fund a new heating system for Better Assembly Services.

Wesleyan Foundation: The funds were donated to support volunteer/peer mentor recruitment and training.

National Lottery Community Fund: The funds were donated to allow Architect's feasibility study for the redevelopment of the Digbeth site.

The Roger & Douglas Turner Charitable Trust: Development of a Wellbeing Centre for service users, to incorporate the existing Better Assembly Services unit, and supplement this with the development of a suite of new wellbeing activities.

The Grimmett Trust: Development of a Wellbeing Centre for service users, to incorporate the existing Better Assembly Services unit, and supplement this with the development of a suite of new wellbeing activities.

Birmingham District Nursing Charitable Trust: Development of a Wellbeing Centre for service users, to incorporate the existing Better Assembly Services unit, and supplement this with the development of a suite of new wellbeing activities.

The Eveson Charitable Trust: Development of a Wellbeing Centre for service users, to incorporate the existing Better Assembly Services unit, and supplement this with the development of a suite of new wellbeing activities.

Donald Forrester Trust: The funds were recevied to support the core costs of the charity.

Small Restricted Grants:- These small grants were given to support travel for our service users and their day to day activities.

Purpose of designated Funds

Tangible Fixed Assets fund: This fund represents the net book value of fixed assets purchased through general funds. Depreciation will be charged against this fund. The transfer to this designated fund of £103,485 brings the closing balance in line with the current year net book value excluding any restricted capital funds.

Future Investment for Enterprises: The trustees have agreed not to utilise the funds this financial year.

Premises Improvement Fund: The purpose of this designated fund is to make improvement to the premises in Digbeth. The trustees have agreed not to utilise the funds this financial year.

The funds allocated to designated funds will be used solely for investment in charitable activities. Investment will improve the services on offer and support new investments in the future.

36

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2020

Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Bank interest
Loss on the disposal of fixed assets
Decrease/(Increase) in stocks
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
Net cash provided by / (used in) operating activities		 2020
£
102,353
36,376
(160)
-
(967)
(54,470)
(185,271)		 2019
£
(307,969)
44,214
(189)
7,445
9,154
220,166
189,396
(102,139) 162,217

20 Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
Cash at bank and in hand
Short term deposits
Total cash and cash equivalents		 At 1 April
2019
£
416,504
75,609
Cash flows
£
(107,121)
160		 £
309,383
75,769
At 31 March
2020
492,113 (106,961) 385,152

21 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year
One to five years		 2020
2019
£
£
-
12,188
-
-
-
12,188
Property		 2020
2019
£
£
-
12,188
-
-
-
12,188
Property		 2020
2019
£
£
26,206
60,853
20,991
73,997
47,197
134,850
Equipment		 2020
2019
£
£
26,206
60,853
20,991
73,997
47,197
134,850
Equipment
- 12,188 47,197 134,850

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

37