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2022-03-31-accounts

Company number: 748773 Charity Number: 244866

Birmingham Industrial Therapy Association Limited Operating as Better Pathways

Report and financial statements For the year ended 31 March 2022

Birmingham Industrial Therapy Association Limited

Contents

For the year ended 31 March 2022

Reference and administrative information ...................................................................................... 1 Annual Report of the Trustees and Chief Executive ........................................................................ 2 Independent auditor’s report ....................................................................................................... 16 Statement of financial activities (incorporating an income and expenditure account) ................... 22 Balance sheet ............................................................................................................................... 23 Statement of cash flows ................................................................................................................ 24 Notes to the financial statements ................................................................................................. 25

Birmingham Industrial Therapy Association Limited

Reference and administrative information

For the year ended 31 March 2022

Company number 748773
Country of incorporation United Kingdom
Charity number 244866
Country of registration England & Wales
Operating Name Better Pathways
Registered office and 201-206 Alcester Street
operational 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 David Tucker (Chair)
Mr Ben Brittain
Dr Martin Commander
Ms Chaitali Desai
Ms Janine Garvie-Cole
Mr Les A Latchman
Ms Kimara Sharpe Appointed 13 December 2021
Mr Simon Lawrence (Chair) Resigned 13 December 2021
Mr Jordan Kirkwood Resigned 13 December 2021
Ms Ranjit Nall Resigned 13 December 2021
Mr Miles Parker Resigned 13 December 2021
Mr Jagvir Purewal Resigned 13 December 2021
Ms Diane Ryles Resigned 13 December 2021
Key management personnel Ms Sue Roberts Chief Executive and Company Secretary
Bankers CAF Bank Ltd Lloyds Bank Unity Trust Bank
25 Kings Hill Avenue PO Box 100 4 Brindley Place
Kings Hill, West Mailing Andover Birmingham
ME19 4JQ BX1 1LT B1 2JB
Solicitor Shakespeare Martineau
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

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

The trustees and Chief Executive present their report and the audited financial statements for the year ended 31 March 2022.

Reference and administrative information set out on page 1 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.

Our Aims

The aims of the Charity are set out in the Articles of Association.

Registered as a charity on the 1st February 1963 and located in Alcester Street, Digbeth, since 1973, Better Pathways is a mental health charity supporting some of the most vulnerable people in our communities. The main focus of our work is the support we provide to people with severe and enduring mental illness, with mild to moderate poor mental health, and with learning disabilities and difficulties on our vocational pathways, employability and mental health support programmes. Delivered in our social enterprises, or out in the community under contract to the statutory sector, we work with our beneficiaries and programme participants to help them thrive in paid employment, or in training, education and volunteering if this is their desired goal . Our mission is to empower our beneficiaries to utilise their own strengths to achieve their full potential, to live as independently as possible in good mental health, enjoying the full range of community activities and services that others in society take for granted.

Our published charitable objects require us to

1 help people with mental health issues and learning difficulties and disabilities to secure opportunities for volunteering, training and education and progress them towards paid employment,

2 provide training and education to organisations that will support them to safeguard the mental health and wellbeing of their employees and other stakeholders,

3 deliver support programmes through our social enterprises to grow beneficiaries' confidence, sense of self-esteem and independence to enable them to stay well and take part in activities as full members of their communities,

4 provide mental health and wellbeing support to NHS and Local Authority client groups to enhance their potential for recovery and independent living, and

5 provide support to the carers of our beneficiaries, chiefly but not limited to the respite provided to families and carers arising from the participation of beneficiaries in the charity's activities.

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

Our Values

Inclusivity: we welcome without prejudice or judgement all those who want our help Tenacity: we strive tirelessly to do our best for those we serve Empowerment: we build confidence in people to help them become self-supporting Integrity: we are kind, honest and fair in all our dealings Partnership: we work together with our stakeholders to further our collective aims

Our Charitable Services

Our social enterprises: Learning, Independence, Volunteering, Employment Programme Better Pathways has been at the heart of the 'work as therapy' movement since 1963. We support beneficiaries to participate on our LIVE vocational pathways programme (Learning, Independence, Volunteering, Employment). We do this through our three work-based enterprises commissioned by local businesses: packing, assembly and light engineering; signage, printing, engraving, and badge making; bespoke woodcraft creations. There are 3 pathways available on this programme:

12-weeks work experience: We aim to support as many people as possible into paid employment, or into education, training and volunteering as an interim or alternative outcome if employment is currently or forever beyond their reach.

Meaningful day activities: We are commissioned by local social workers to provide meaningful day activities for some of their clients who would otherwise go to day centres.

Volunteering: Many of the people we support do not want to be in paid employment or lack the capacity for it. Currently, the majority of our beneficiaries are volunteers. Over time this will change as we embed our relatively newly launched 12-week work experience programme.

As at December 2022, 72 people on our LIVE programme. Beneficiary numbers prior to Covid-19 were upwards of 110 at their peak.

Beneficiaries come to Better Pathways for support to develop self-confidence and self-belief, resilience, socialisation and employability skills to build their capacity to navigate the world of work and their communities independently. They come with a range of skills deficits and other support needs, for example, basic numeracy and literacy required in the workplace, with mobility problems, including poor manual dexterity, with travel anxieties, and with varying intellectual capacities for basic and complex tasks. Our beneficiaries are impacted by their unique experiences, for example, arising from PTSD, chronic severe and enduring mental illness, and more recently the consequences of COVID-19.

Our work experience opportunities:

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

Our Statutory sector services

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

Other income generating services

Who benefits from our services?

Our social enterprises currently support 75 people (2020/21: 72) living in Birmingham, Sandwell and Solihull. Our beneficiary demographics:

Our social impact

Unemployment in people with poor mental health and with learning disabilities is a major public health issue and Better Pathways addresses this. Inactivity and social isolation blights the lives of those living with these conditions and their families, and we know that our work with participants addresses the loneliness they would otherwise feel from being socially isolated. In addition to the ‘hard’ outcomes we aim to achieve through our LIVE vocational pathways programme, we offer companionship, friendship, and a sense of belonging to those coming to our charity. Our social impact is further enhanced by the values driven approach to all that we do, benefiting participants on our statutory sector contracts, and those commercial businesses we work with in our social enterprises.

What our beneficiaries say about us

We are proud to report below the positive feedback we have had from the people who participate on our LIVE programme, and delighted that more of our beneficiaries are reporting improved outcomes in the areas covered by our survey when compared to last year (shown in brackets):

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

96% report an increased ability to make friends and build new relationships (77%) 100% report increased self-confidence (68%)

93% feel supported (74%) 96% have a sense of belonging when attending our services (80%) 93% have increased ability and confidence to pick up new skills (69%) 71% indicate improved ability to deal with problems in life (51%) 86% have improved general happiness (63%) 89% have positive feelings and hope for the future (63%)

Twenty of our beneficiaries are living at home with families. Our support of beneficiaries provides respite for families, allowing parents and siblings free time to work during the day, to engage in their communities, to recharge their batteries and to maintain the resilience required to cope with the often complex needs of their family member.

Feedback from the family of DM

How does D coming to Better Pathways help your family?

The main thing is that D has got a place that he enjoys going to. He likes going to Better Pathways and is happy when he comes home. It gives him a purpose. It means that because he’s with you three days a week he isn’t just sitting at his computer. He’s doing something meaningful for him. I work from home and find it difficult if D is sitting doing nothing. Therefore, I have space for myself.

What have you noticed about D as a result of him coming to Better Pathways?

He’s generally a happier person. He talks a lot about what he’s done and enjoys it. Putting plastic strips into bags, sorting them by colour seems to be his favourite job. He’s out and about. What he’s said on a number of occasions is that he realises that he’s more able than others. That’s given him a degree of a boost, more self-confidence that he can do more and thinks quicker than others. It’s given him more independence, helping to maintain employment outside.

Would you say that your own mental health, or that of family members, improves with the respite you receive when N comes to Better Pathways?

Absolutely, 100%. The worst time was during the 1[st] lockdown when D was at home non-stop. I found that difficult to cope with. Better Pathways makes a big difference. Generally, D is happy and enjoys going to the digital course at the academy.

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

Feedback from the family of NT

How does N coming to Better Pathways help your family?

Enormously, if N isn’t going to Better Pathways he’s very down. We’ve seen that over the past three or four months when he’s been unwell. When he isn’t going, he’s got nothing to look forward to. The two days he does go in, he’s a different lad, on the other three days he has nothing to do. N’s not well enough to go out on his own, he can’t walk properly. Without Better Pathways we would be nowhere – I can tell you that now.

What have you noticed about N as a result of him coming to Better Pathways?

He’s a happy lad, and he misses people when he doesn’t go to Better Pathways. He probably talks to people at Better Pathways more about different things than he does to us at home. N loves bantering about football and Manchester United with Frank. He really misses that when he has to stay away.

Would you say that your own mental health, or that of family members, improves with the respite you receive when N comes to Better Pathways?

100%! When N was at home unwell, for those three or four months, my anxiety went up and my mental health went downhill. I get frustrated, not with N, but with myself, usually when alone in my car. Our lives change enormously when N doesn’t go to Better Pathways. I don’t know what words to use to express the change it makes when N is occupied. My granddaughter has poor mental health and learning difficulties and is at home with me. The whole family can relax more with the free time we do get.

Feedback from the family of SA

How does S coming to Express Signs help your family?

A great help. I know where he is. He’s with lovely people. He’s doing something. I know he does badges. It means he can do something different on a Friday. He comes out with me driving for a few hours a couple of days a week as well. One of the main things is he gets the bus back. Only 5 or 6 bus stops and he’s back home, but that’s a little bit of independence for him. Lovely knowing he’s in safe hands. He’s learning. The stress factor goes when he comes to Express Signs.

What have you noticed about S as a result of his coming to Express Signs?

He’s happier, more confident, they don’t overload him with activities. His understanding is limited and so coming to Express Signs is good because Danny and Jane help him and tell him not to worry if there are things he can’t do.

Would you say that your own mental health, or that of family members, is improved as a result of the respite you receive from S coming to Express Signs

On a Friday, it’s a welcome release. When I drop him off, I can completely switch off.

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

Economic impact: the value of our social enterprise participant 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 millions 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].

In 2021/2022, 72 participants volunteered in our social enterprises for 27,400 hours. Using the average equivalent market hourly wage rate of £13.20, we arrive at an annual economic value of volunteering activity of £375k.

The Year: 2021/2022

Two statutory sector contracts, Respite+ and Veterans Stabilisation Worker, came to an end in March 2022. Having ended provision of the Individual Placement Support contract in March 2021, a priority for the charity in 2021/2022 has been to secure new opportunities with the statutory sector. We were delighted to be awarded a new employability project, the Disability Inclusion Pathway. Part funded (42%) by the European Social Fund with a value of £1,197,106, this contract will run until December 2023. We are the main provider of this contract, working with two sub-contracted partners, the Disability Resource Centre and BID, to support adults furthest away from the jobs market into employment, education and training. We were similarly pleased to have been awarded an extension to our Youth Promise Plus , contract until December 2023 albeit at a reduced contract value of £201,499. This reduction meant that, sadly, our YPP team went from four members to three. Further, this development did have a destabilising impact on the YPP team and in addition to the loss of one team member, two others secured other opportunities. Happily, one of those was within Better Pathways.

Another priority in 2021/2022 was our recovery from the impact of Covid-19 on our social enterprise income generating activities, still being felt in the early part of the year. Considerable effort has been spent building new partnerships and a pipeline for growth into 2022/2023. Whilst the year-end position across our social enterprises was a deficit of £33,551, we are starting to reap the rewards of our efforts and are hopeful of reporting a better position at the end of 2023. As we progress into the fourth quarter of 2022-2023, we are confident of entering partnerships with a leading Birmingham based manufacturing business, and at least one new start-up keen to work with us. We also have an exciting signage project in the pipeline.

We ended the year with a total deficit of £123,061.

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

Plan Progress 2021/2022

In our Annual Report for the year ended March 2021 we said:

We will agree plans for the development of our building, either improving our space and staying in Digbeth, or planning to sell and move elsewhere.

We have put plans to sell our building on hold. Instead, we will stay at Digbeth to focus on building our charity and launch a crowdfunding campaign to raise funds to ‘Raise our Roof’. This will future proof our building for the next 5 to 10 years and enable us to build a mezzanine floor, creating capacity for growth. We are drawing up plans and will launch our campaign early in 2023 in celebration of the 60[th] anniversary of our charity. We are grateful to West1 Contracts Limited for donating their time and supplies to upgrade our kitchen and beneficiary canteen area.

We will generate income from sharing our space.

We are delighted to report that MyBnk, a national charity providing young people with financial education and support to understand money management moved into spare office space. This will contribute £20k annual to our income.

We will modernise our social enterprise pathways of care:

We completed the design of our LIVE (Learning, Independence, Volunteering, Employment), vocational pathways programme, building on our learning from a similar model being delivered in Northampton. Launched in June 2022, this programme introduces three pathways: a12-week work experience pathway, a meaningful day activities pathway and a volunteering pathway. We were delighted to work closely on the design of our model with colleagues in Birmingham City Council’s Adult Social Care team and to be working with social work colleagues on a referral route to this programme for young people on Preparation for Adulthood pathways.

We will pursue a robust income generation strategy:

We raised £119,067 from grant giving bodies.

We received £30k from Birmingham and Solihull Mental Health Foundation Trust to fund a

business development project for Express Signs, a social enterprise that we have been running on behalf of the Trust since 2016.

We were sub-contracted by Birmingham Mind to become a partner, along with the Living Well Consortium, in the delivery of a Primary Care Recovery Navigator service.

We were successful with our bid for the re-tendered Youth Promise Plus mental health wrap around support service.

We continued to market our Vulnerability Awareness Training and secured two new customers, Octopus Energy and WeAreWoven. During 2022-2023, we continue to work with Octopus Energy on a second phase of training for customer-facing staff and line managers and are talking to other energy companies.

We continued to see a reduction in income in our social enterprises from the impact of Covid-19 but we are recovering, with some customer orders having returned to pre-pandemic levels and, in one case, exceeding them.

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

We developed our relationships with ‘business ambassadors’ who are generously giving their time to advise us on our growth strategy and introduce us to potential new customers. We are currently mobilising a partnership with the Council’s PURE team and Trident Reach to support delivery of Trident’s PURE employability project, supporting those at risk of homelessness into employment.

We will establish a more systematic approach to social impact reporting

Financial results 2021/2022

Total income in the year decreased by 64% from £2,552,593 in 2020/21 to £911,275 in 2021/22.

Following the TUPE transfer of staff on the IPS contract to the Shaw Trust in March 2021, the number of employees at Better Pathways reduced from 35.9 to 23.4.

Fundraising and Donations

For the year 2021/22 we raised £114,440 (2020/21: £20,000) from grant giving trusts and foundations, and £4,627 in public donations (2020/21: £nil). 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 registered with the Fundraising Regulator and can confirm we have not received any complaints in the year. Currently, our fundraising activity is predominantly in respect of

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

submission of bids to grant giving bodies. We raise funds from the public via JustGiving and Amazon Smile. We do not raise donations through door-to-door canvassing, but were we ever to do so, we would ensure that we have policies and procedures in place to identify and protect people in situations of vulnerability.

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 2021/22. Funds from these organisations have helped us to deliver our activities for the benefit of our service users:

Plans for 2022/2023

Our social enterprise LIVE Vocational Pathways programme will be further embedded:

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Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

We will explore all avenues for income generation

We will improve our building for the benefit of beneficiaries and to grow our business

We will complete the refurbishment of our canteen facilities. We are grateful to the following companies for choosing us for their corporate volunteering days: Advanced Solutions, Arcadis, Amey, Evelyn Partners, Selfridges, S F Recruitment and BT. These volunteers are cleaning and stripping walls, rubbing down woodwork, painting, wallpapering and heartening us with their friendship and support.

Principal risks and mitigations

The Charity’s principal risks are:

  1. A failure to maintain current customers and to grow the customer base in our social enterprises could undermine their viability.

  2. We are considering the merits of changing our team structure to bring sales capacity into the charity. In the meantime, the Senior Leadership Team is pursuing all opportunities for new partnerships and growth.

  3. The Senior Leadership Team is proactively pursuing new business opportunities.

  4. We are grateful for the support we are receiving from ‘ambassadors’ who are informing our approach to achieving the growth we need for future sustainability, identifying potential new customers and making helpful introductions.

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

Reserves policy and going concern

The trustees’ policy is to maintain 90 days’ expenditure in general reserves to provide working capital for unforeseen reductions in cash flow.

Better Pathways has total funds of £467,115 to carry forward at the year ended 31 March 2022. These funds are made up as follows:

The designated funds largely relate to the tangible fixed asset fund so do not form part of our calculation of general reserves. This fund represents the net book value of fixed assets purchased through general funds and depreciation is charged against this fund.

The general reserve as at 31 March 2022 amounted to 60 days’ expenditure, down from 136 days at March 2021. The decrease in the number of days arises from our inability to reduce unavoidable overheads to compensate for the reduction in income following the loss of the IPS employment

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Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

contract. It also arises from a significant overinvestment in working capital over the year. This has subsequently unwound resulting in more cash resources being available to fund unrestricted activities. At the end of November 2022, the charity’s cash position has moved from £120k at March 2022 to £228k.

There was no expenditure from the Future Investment for Social Enterprises or Premises Improvement Funds in the year (£10k in each fund), however, these funds will be utilised in the year ended 31 March 2023. The funds allocated to designated funds will be used solely for investment in charitable activities to improve the services on offer. The detailed actions we are taking to improve our reserves balance are set out in this annual report and we anticipate those actions leading to 83 days’ expenditure in general reserves by December 2023. In summary:

General Reserves

We continue to grow the activities and income streams of the charity.

We are better managing our working capital, getting cash in more quickly.

We will develop contingency plans to generate additional liquidity, using our building, which we own, as leverage.

Restricted Funds

We will implement restricted fund projects, significantly reducing the restricted funds balance of £88k by March 2023.

Designated Funds

Subsequent to the year end, Future Investment for Social Enterprise and Premises Improvement funds totalling £20k, have been allocated to projects that will improve facilities for our beneficiaries.

Accreditations

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 1st 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. The trustees have not claimed any expenses from the Charity during the year.

Trustees are elected at the annual general meeting and 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 trustees retiring from the board each year;

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

however, these trustees can offer themselves for re-election should they wish to do so. We aim to ensure that the Board is diverse 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.

Appointment of trustees

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

Trustee induction and training

The trustee induction handbook covers training to be undertaken, visits to be made, and meetings to be attended. The trustee induction and training programme will be reviewed early in 2023. As at December 2022 the programme is as follows:

Required reading includes:

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

Related parties and relationships with other organisations

No formal 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 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 all members of the 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. 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 the Senior Leadership Team.

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:

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Birmingham Industrial Therapy Association Limited

Annual Report of the Trustees and Chief Executive

For the year ended 31 March 2022

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 at the AGM which is attended by the charity’s trustees. There is a current proposal to establish a membership body and if this is agreed, then in future trustees will be appointed by members. There were 6 trustees in the year 21/2022 (20/2021:11).

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 12 December 2022 and signed on their behalf by

David Tucker Chair of Trustees

Sue Roberts, Chief Executive Officer

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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 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Birmingham Industrial Therapy Association Limited's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Independent auditor’s report

To the members of

Birmingham Industrial Therapy Association Limited

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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Independent auditor’s report

To the members of

Birmingham Industrial Therapy Association Limited

company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 on the basis of these financial statements.

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

20

Independent auditor’s report

To the members of

Birmingham Industrial Therapy Association Limited

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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)

19 December 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

21

Birmingham Industrial Therapy Association Limited

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

For the year ended 31 March 2022

For theyear ended 31 March 2022
Note
Income from:
3
4
4
4
5
5
5
19
Reconciliation of funds:
Donations and grants
Charitable activities
Social Enterprise - Express Signs
Social Enterprise - Better Assembly Services
Social Enterprise - Express Signs
Recovery and Employment
Bank Interest
Total funds brought forward
Total funds carried forward
Net movement in funds
Recovery and Employment
Total income
Expenditure on:
Total expenditure
Charitable activities
Social Enterprise - Better Assembly Services		 Unrestricted
£
24,627
512,741
131,984
147,399
84		 Restricted
£
94,440
-
-
-
-		 £
119,067
512,741
131,984
147,399
84
2022
Total		 £
56,485
2,263,439
137,573
95,036
60
2021
Total
816,835
721,402
193,328
108,968		 94,440
-
10,638
-		 911,275
721,402
203,967
108,968		 2,552,593
2,191,261
234,745
93,908
1,023,698 10,638 1,034,336 2,519,913
(206,863)
556,984		 83,802
33,193		 (123,062)
590,177		 32,680
557,497
350,121 116,995 467,115 590,177

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 20 to the financial statements.

22

Birmingham Industrial Therapy Association Limited

Company no. 00748773

Balance sheet

As at 31 March 2022

As at 31 March 2022
Balance sheet
Note
Fixed assets:
11
Current assets:
12
13
Liabilities:
14
16
19
Total unrestricted funds
General funds
Total charity funds
Cash at bank and in hand
Short term deposit
Tangible assets
Stock
Debtors
Restricted income funds
Unrestricted income funds:
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Creditors: amounts falling due after one year
Total assets less current liabilities
Designated funds		 £
5,466
325,506
-
170,042		 2022
£
194,766		 £
6,219
208,690
75,829
359,201		 2021
£
227,616
194,766
322,350		 227,616
412,561
501,014
178,664		 649,939
237,378
185,815
164,306		 217,375
339,609
517,116
(50,000)		 640,177
(50,000)
467,115 590,177
116,995
350,121		 33,193
556,984
467,115 590,177

Approved by the trustees on 12 December 2022 and signed on their behalf by

David Tucker Chair

23

Birmingham Industrial Therapy Association Limited

Statement of cash flows

For the year ended 31 March 2022

For theyear ended 31 March 2022 For theyear ended 31 March 2022 For theyear ended 31 March 2022
Note
£
£
21
(264,334)
84
(738)
(654)
-
Change in cash and cash equivalents in the year
(264,988)
Cash and cash equivalents at the beginning of the year
435,030
Cash and cash equivalents at the end of the year
170,042
Analysis of cash and cash equivalents and of net debt
At 1 April
2021
£
Cash at bank and in hand
359,201
Short term deposits
75,829
Total cash and cash equivalents
435,030
Loans falling due after more than one year
(50,000)
Total
385,030
Cash flows from financing activities:
Cash inflows from new borrowing
2022
Cash flows from operating activities
Net cash used in investing activities
Net cash used in operating activities
Cash flows from investing activities:
Interest received
Purchase of fixed assets		 £
£
23,078
60
(23,260)
(23,200)
50,000
49,878
385,152
435,030
Cash flows
At 31 March
2022
£
£
(189,159)
170,042
(75,829)
-
(264,988)
170,042
-
(50,000)
(264,988)
120,042
2021
Cash flows
£
(189,159)
(75,829)
- 50,000
(264,988)
435,030		 49,878
385,152
170,042 435,030
At 1 April
2021
£
359,201
75,829		 At 31 March
2022
£
170,042
-
435,030
(50,000)		 (264,988)
-		 170,042
(50,000)
385,030 (264,988) 120,042

24

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

Birmingham Industrial Therapy Association Limited is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address and principal 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 as explained in the trustees' annual report. 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.

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.

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.

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:

i) 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.

25

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

j) Operating leases

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

k) 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.

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:

l) Stocks

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.

m) 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.

n) Short term deposits

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

o) 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.

p) 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.

q) 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.

r) 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.

Detailed comparatives for the statement of financial activities (prior year)
Income from:
Donations and grants
Total expenditure
Charitable activities:
Expenditure on:
Charitable activities:
Recovery and Employment
Social Enterprise - Better Assembly Services
Social Enterprise - Express Signs
Net income for the year
Total income

Recovery and Employment
Social Enterprise - Express Signs
Social Enterprise - Better Assembly Services
Bank interest		 £
36,485
2,213,454
108,559
95,036
60
Unrestricted
activities		 Restricted
continuing
activities
£
20,000
49,985
29,014
-
-		 2021
Total
£
56,485
2,263,439
137,573
95,036
60
2,453,594 98,999 2,552,593
2,141,276
199,908
93,908		 49,985
34,837
-		 2,191,261
234,745
93,908
2,435,091 84,822 2,519,913
18,503 14,177 32,680

26

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

3 Income from donations

Income from donations
Grants recieved
Donations
Covid Relief Funding
Coronavirus Job Retention Scheme income		 Unrestricted
£
20,000
4,627
-
-		 Restricted
£
94,440
-
-
-		 2022
Total
£
114,440
4,627
-
-		 Unrestricted
£
-
-
32,500
3,985		 Restricted
£
20,000
-
-
-		 2021
Total
£
20,000
-
32,500
3,985
24,627 94,440 119,067 36,485 20,000 56,485

4a Income from charitable activities (current year)

Income from charitable activities (current year)
Total for Recovery and Employment
Birmingham City Council Day Care
Earned Income
Birmingham Solihull Mental Health Trust
Grant funding for core activities
Earned Income
Total for Social Enterprise - Express Signs
Total income from charitable activities
Total for Social Enterprise - Better Assembly Services
Birmingham City Cross CCG Funding
Other
European Social Fund - Disability Inclusion Pathway
Birmingham City Council - Youth Promise Plus
Birmingham Solihull Mental Health Trust - Respite
Birmingham Solihull Mental Health Trust - Veteran		 £
119,850
72,000
96,025
170,571
54,295
-
-
Unrestricted
continuing
activities		 Restricted
continuing
activities
£
-
-
-
-
-
-
-		 2022
Total
£
119,850
72,000
96,025
170,571
54,295
-
-		 2021
Total
£
-
-
91,275
106,096
3,689
2,012,394
49,985
512,741
7,206
124,778		 -
-
-		 512,741
7,206
124,778		 2,263,439
6,722
130,851
131,984
129,046
18,353		 -
-
-		 131,984
129,046
18,353		 137,573
81,313
13,723
147,399 - 147,399 95,036
792,124 - 792,124 2,496,048

4b Income from charitable activities (prior year)

Income from charitable activities (prior year)
Total for Social Enterprise- Express Signs
Birmingham City Cross CCG Funding
Total income from charitable activities
Total for Recovery and Employment
Birmingham and Sandwell Councils
Grant funding for core activities
Other
Birmingham City Council- Neurodiverse
Prospects - Thrive into Work
Birmingham Solihull Mental Health Trust
Mental Health First Aid Training
Birmingham City Council -Youth Promise Plus
Earned Income
Total for Social Enterprise- Better Assembly Services
Earned Income
Birmingham Solihull Mental Health Trust		 £
2,012,394
-
3,689
-
-
91,275
106,096
-
Unrestricted
continuing
activities		 Restricted
continuing
activities
£
-
49,985
-
-
-
-
-
-		 2021
Total
£
2,012,394
49,985
3,689
-
-
91,275
106,096
-		 2020
Total
£
2,023,539
13,000
29,423
55,000
145,238
80,894
-
45,674
2,213,454
6,722
101,837		 49,985
-
29,014		 2,263,439
6,722
130,851		 2,392,768
7,651
140,935
108,559
81,313
13,723		 29,014
-
-		 137,573
81,313
13,723		 148,586
53,000
16,393
95,036 - 95,036 69,393
2,417,049 78,999 2,496,048 2,610,747

27

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

5a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 7)
Delivery by other partners
Material
Recruitment and Training
Client and Participant Expenses
Staff Travel and Motor Expenses
Marketing, Print and Stationery
ICT and Communication
Consultancy and Professional Fees
Utilities
Premises Cost and Insurance
Sundry Expenses
Audit Fee
Bank Charges
Non Recoverable VAT
Depreciation
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Recovery
and
Employment
£
309,564
70,076
-
2,565
2,008
2,946
2,689
23,513
24,276
9,334
22,173
2,379
-
518
9,636
6,411		 Social
Enterprise -
Better
Assembly
Services
£
79,968
-
365
1,766
24,321
7,037
1,133
7,724
1,192
4,569
9,266
795
-
170
-
5,391



Social
Enterprise -
Express
Signs
£
42,820
-
10,263
323
854
-
433
3,786
2,584
-
15,548
-
-
83
-
-		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
-
-
8,600
-
-
-		 Support
costs
£
235,574
-
-
3,093
-
1,664
24,619
5,973
5,201
10,040
5,415
-
288
3,604
21,786
2022
Total
£
667,926
70,076
10,628
7,746
27,183
11,647
4,255
59,643
34,025
19,104
57,027
8,589
8,600
1,059
13,240
33,588		 2021
Total
£
1,003,980
1,171,590
3,392
12,183
22,985
10,152
5,222
92,325
45,023
18,905
58,441
10,143
8,210
408
19,375
37,579
488,088
227,156
6,158		 143,696
58,680
1,591		 76,695
31,421
852		 8,600
-
(8,600)		 317,257
(317,257)
-		 1,034,336
-
-		 2,519,913
-
-
721,402 203,967 108,968 - - 1,034,336 2,519,913
2,191,261 234,745 93,908 - -

5b Analysis of expenditure (prior year)

Analysis of expenditure (prior year)
Staff costs (Note 7)
Delivery by other partners
Material
Recruitment and Training
Client and Participant Expenses
Staff Travel and Motor Expenses
Marketing, Print and Stationery
ICT and Communication
Consultancy and Professional Fees
Utilities
Premises Cost and Insurance
Sundry Expenses
Audit Fee
Bank Charges
Non Recoverable VAT
Depreciation
Support costs
Governance costs
Total expenditure 2021		 Charitable activities Governance
costs
£
-
-
-
-
-
-
-
-
-
-
-
-
8,210
-
-
-		 Support
costs
£
199,631
-
-
3,593
-
-
765
15,170
12,081
3,304
6,714
1,773
-
71
2,241
20,234
2021
Total
£
1,003,980
1,171,590
3,392
12,183
22,985
10,152
5,222
92,325
45,023
18,905
58,441
10,143
8,210
408
19,375
37,579
Recovery
and
Employment
£
669,416
1,171,590
-
8,440
6,219
1,303
3,454
66,273
32,572
12,351
26,966
6,626
-
267
15,790
11,197		 Social
Enterprise -
Better
Assembly
Services
£
91,933
-
22
150
16,059
8,848
752
6,951
370
3,250
9,736
1,744
-
47
1,122
6,149



Social
Enterprise -
Express
Signs
£
43,000
-
3,370
-
707
-
251
3,931
-
-
15,025
-
-
23
222
-
2,032,464
154,035
4,762		 147,133
84,985
2,627		 66,529
26,558
821		 8,210
-
(8,210)		 265,577
(265,577)
-		 2,519,913
-
-
2,191,261 234,745 93,908 - - 2,519,913

28

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

This is stated after charging:

Operating lease rentals:
Auditors' remuneration (excluding VAT):
Depreciation
Other
Audit		 2022
£
33,588
14,347
8,600		 2021
£
37,579
14,347
8,210

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Redundancy and termination costs
Other Staff Costs
Employer’s contribution to defined contribution pension schemes		 2022
£
562,381
3,000
48,904
42,820
10,821		 2021
£
870,588
-
73,390
43,000
17,003
667,926 1,003,980

In 2022 2 employees were made redundant (2021: 0). Redundancy and termination costs of £3,000 (2021: £nil) were settled and paid during the year.

The total employee benefits (including employer's pension contributions and employer's national insurance) of the key management personnel were £56,992 (2021: £79,761).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil). No trustees' expenses were paid in 2022 and 2021.

8 Staff numbers

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

Recovery & Employment
Support
Social Enterprise- Better Assembly Services		 2022
No.
12.4
4.1
6.9		 2021
No.
25.8
4.0
6.1
23.4 35.9

9 Related party transactions

Aggregated donations from related parties were £nil (2021: £nil). 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 £297,071 (2021: £172,588) from BSMHFT which was provided on an arms length basis.

10 Taxation

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

29

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

11 Tangible fixed assets

Tangible fixed assets
Net book value
Cost
Depreciation
At the start of the year
Additions in year
At the end of the year
At the end of the year
At the start of the year
At the end of the year
At the start of the year
Charge for the year		 Freehold
property
£
312,910
-		 Plant, fixtures
and fittings
£
305,330
-
Computer
equipment
£
196,668
738		 Total
£
814,908
738
312,910 305,330 197,406 815,646
160,658
6,494		 263,856
9,052		 162,777
18,043		 587,292
33,588
167,152 272,908 180,820 620,880
145,758 32,422 16,586 194,766
152,252 41,474 33,890 227,616

Land with a value of £36,625 (2020: £36,625) is included within freehold property and not depreciated.

All of the above assets are used for charitable purposes.

12
Stock
13
Finished goods
Debtors
Trade debtors
Prepayments
Accrued income		 2022
£
5,466		 2021
£
6,219
2022
£
168,953
8,658
147,895		 2021
£
83,320
31,684
93,686
325,506 208,690

All of the charity’s financial instruments, both assets and liabilities, are measured at amortised cost. The carrying values of these are shown above and also in note 14 below.

14 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Balance at the beginning of the year
Amount released to income in the year
Bank loans
Deferred income (note 15)
Taxation and social security
Trade creditors
Creditors: amounts falling due after one year
Accruals
Deferred income
Deferred income comprises participant costs received in advance.		 2022
£
25,986
26,113
114,012
12,554		 2021
£
164,921
40,489
15,439
16,529
178,664 237,378
2022
£
16,529
(3,975)		 2021
£
21,829
(5,300)
12,554 16,529
2022
£
50,000		 2021
£
50,000

The Bounce Bank Loan totalling £50,000 (2021: £50,000) is unsecured. The terms of the loan are 72 months with an interest rate of 2.5%. No payment is required for the first 12 months and monthly loan repayments will commence 13 months after the loan was approved. Repayment of the loan will commence April 2022.

30

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

17 Pension Scheme

The charity offers an auto-enrolment into the NEST pension scheme. At the end of the year the liability of the NEST pension scheme was £2,219 (2021: £4,151).

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

The present value of the liabilities as at 31 March 2022 has been determined using the Projected Unit Credit Method (PUCM), with allowance for expected future pay increases in respect of active members, and the demographic and financial assumptions applying as at 31 March 2022. The current service cost (expressed as a percentage of pensionable pay) in respect of accruing costs in the year ended 31 March 2022 was determined using the PUCM and the demographic and financial assumptions applicable at the start of the year, that is, those adopted as at 31 March 2021 in the 2020-21 Annual Report and Accounts.

b) Full actuarial (funding) valuation

A full actuarial (funding) valuation is undertaken every four years and its purpose is to assess the 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 1 April 2019 at 20.6% of member pensionable pay.

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, however, on 30 January 2019 the Government announced a pause to the cost control mechanism which was to form part of the valuation. This was due to the Court of Appeal ruling in December 2018 relating to the transitional protection offered to some members in the 2015 pension reforms. On 4 February 2021, the Government announced that the cost cap mechanism calculations would be completed allowing for the transitional protection remedy costs. HMT published valuation directions dated 7 October 2021 that set out the technical detail of how the costs of remedy are included in the 2016 valuation process. Following these directions, the Scheme Actuary has completed the cost control element of the 2016 valuation for the NHS Pension Scheme.

The results for the Scheme were set out in the Government Actuary’s Department report of 7 February 2022, which stated that the cost cap cost was within the +/-2% corridor specified in the HMT regulations and so no changes to benefits or member contributions were required.

The Government has set out changes to the operation of the employer cost cap that will be effective from the valuation of the Scheme as at 31 March 2020. The new mechanism will only allow for the reformed Scheme, will have an increased cost cap corridor of +/-3% and will also now include an economic check, which means that a breach would only result in changes if there was still a breach once the impact of any change in the discount rate has been taken into account.

The 2020 valuation will set the employer contribution rate payable from April 2024 and test the cost of the Scheme relative to the employer cost cap. This 2020 valuation is currently in progress and will be based upon further valuation directions provided by HMT. The final directions to enable completion of the 2020 valuation are expected from HM Treasury during 2022. The results of the 2020 valuation including the employer cost cap will be reported in the 2022-23 NHS Pension Scheme Annual Reports.

In December 2021 several unions filed for a joint Judicial Review against the Government on the inclusion of the McCloud remedy costs within the cost control mechanism. On 4 July 2022 the Judicial Review was granted permission to be heard, with no further detail currently available on the timeline for a hearing. Even if the Judicial Review is successful, it is unclear what remedy the court may order, and the Government would then need to consider how to proceed following that. Any attempt to predict such outcomes, such as any impact on Scheme liabilities, would be highly speculative at this stage.

31

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

18a
Analysis of net assets between funds (current year)
18b
19a
Eveson Charitable Trust
MIND Charity (Stay well programme)
Edward and Dorothy Cadbury Trust
Prince's Charities
Roger and Douglas Trust
G J W Turner Trust
CB & HH Taylor 1984
The Grimmitt Trust
Radcliffe Trust Grant
Warwick Masonic Trust
The Rowlands Trust
National Lottery Fund
Football Foundation
Allison Hillman Charitable Trust
William A. Cadbury Trust
Resonance Grant
Other Small Restricted Grants
Total restricted funds
Total designated funds
General funds
Total unrestricted funds
Total funds at 31 March 2022
Tangible fixed assets
Net current assets
Long term liabilities
Net assets at 31 March 2021
Tangible Fixed Assets Funds
Future Investment for Social Enterprises
Tangible fixed assets
Net assets at 31 March 2022
Designated funds:
Premises Improvement Fund
Unrestricted funds:
ERDF Catalysts Enterprises Grant
The Rowlands Trust
Net current assets
Restricted funds:
Freehold Property
Movements in funds (current year)
Long term liabilities
Analysis of net assets between funds (prior year)		 At 1 April
2021
£
24,253
5,988
2,100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
852		 General
unrestricted
£
-
214,306
(50,000)		 £
165,815
20,000
-
Designated		 Restricted
£
28,951
88,043
-		 Total funds
£
194,766
322,350
(50,000)
164,306 185,815 116,995 467,116
£
-
389,609
(50,000)
General
unrestricted		 £
197,375
20,000
-
Designated		 Restricted
£
30,241
2,952
-		 £
227,616
412,561
(50,000)
Total funds
339,609 217,375 33,193 590,177
Income
£
-
-
-
10,000
1,992
2,000
3,000
3,000
3,000
1,000
2,000
5,000
1,000
2,000
9,448
1,000
1,000
15,000
34,000
-		 Expenditure
£
(1,034)
(255)
-
(5,505)
(1,992)
-
-
-
-
-
-
-
-
-
-
(1,000)
-
-
-
(852)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2022
£
23,219
5,733
2,100
4,495
-
2,000
3,000
3,000
3,000
1,000
2,000
5,000
1,000
2,000
9,448
-
1,000
15,000
34,000
-
33,193 94,440 (10,638) - 116,995
197,375
10,000
10,000		 -
-
-		 (32,298)
-
-		 738
-
-		 165,815
10,000
10,000
217,375 - (32,298) 738 185,815
339,609 816,835 (991,399) (738) 164,306
556,984 816,835 (1,023,698) - 350,121
590,177 911,275 (1,034,336) - 467,115

32

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

For the year ended 31 March 2022
19b
National Lottery Community Fund
MIND Charity
GJW Turner Trust
Living Well Grants
Severn Trent Water
Bailey Thomas Charitable Trust
Other Small Restricted Grants
Total restricted funds
Total designated funds
General funds
Total unrestricted funds
Total funds at 31 March 2021
The Rowlands Trust
ERDF Catalysts Enterprises Grant
Designated funds:
Future Investment for Social Enterprises
Premises Improvement Fund
Restricted funds:
Western Power Community Foundation
Movements in funds (prior year)
Freehold Property
Julia and Hans Rausing Trust
The Edward Gostling Foundation
Jackie Noughton
Unrestricted funds:
CAF Resilience Fund
Souter Charitable Trust
The David Solomons Charitable Trust
Tangible Fixed Assets Funds		 At 1 April
2020
£
25,520
7,744
2,400
-
1,000
-
-
-
-
-
-
-
-
-
-
-
2,352		 Income
£
-
-
-
1,000
-
17,932
2,000
2,500
2,000
4,000
23,553
5,000
1,000
17,014
2,000
20,000
1,000		 Expenditure
£
(1,267)
(1,756)
(300)
(1,000)
(1,000)
(17,932)
(2,000)
(2,500)
(2,000)
(4,000)
(23,553)
(5,000)
(1,000)
(17,014)
(2,000)
-
(2,500)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(20,000)
-		 At 31 March
2021
£
24,253
5,988
2,100
-
-
-
-
-
-
-
-
-
-
-
-
852
39,016 98,999 (84,822) (20,000) 33,193
208,671
10,000
10,000		 -
-
-		 (34,556)
-
-		 23,260
-
-		 197,375
10,000
10,000
228,671 - (34,556) 23,260 217,375
289,810 2,453,594 (2,400,535) (3,260) 339,609
518,481 2,453,594 (2,435,091) 20,000 556,984
557,497 2,552,593 (2,519,913) - 590,177

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.

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

The Allison Hillman Charitable trust, The Rowlands trust, CB & HH Taylor 194, and Edward & Dorothy Cadbury Trust: These funds were donated towards a counselling service for service users in Beter Assembly Services.

William A. Cadbury Trust: The funds were donated towards a wellbeing cente for service users in Better Assembly Services.

The Grimmitt Trust and Eveson Charitable Trust: The funds were donated towards hiring a support coordinatior for the service users. The post was filled in August 2021.

The National Lottery Fund, Radcliffe Trust Grant and Roger & Douglas Trust: The funds were donated to fund a therapeutic carpentry programme at the Woodcraft Centre, located within better Assembly Services.

Prince's Charities: Money towards the costs of the therapeutic work and training programme in Better Assembly Services.

Football Foundation: The funds were donated towards the running of our football team.

MIND Charity (Stay Well Programme): The funds were donated towards the stay well programme.

Resonance Grant: Money specifically for the business development of Express Signs.

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

33

Birmingham Industrial Therapy Association Limited

Notes to the financial statements

For the year ended 31 March 2022

20b 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.

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.

21 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Reconciliation of net income / (expenditure) to net cash flow from operating activities
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Bank interest
Decrease in stocks
Increase in debtors
Increase in creditors
Net cash provided by / (used in) operating activities		 2022
£
(123,062)
33,588
(84)
753
(116,816)
(58,714)		 2021
£
32,680
37,579
(60)
(1,489)
(52,668)
7,036
(264,334) 23,078

22 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows:

The charity's total future minimum lease payments under non-cancellable operating leases is as follows:
Less than one year
One to five years		 2022
2021
£
£
8,977
14,347
5,961
9,935
14,938
24,281
Equipment
14,938 24,281

23 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.

34