desjgnabjlity De5ignability Charity Limited Annual Report and Financial Statements Year Ended 31 March 2024 Registered Charity Number. 256335 Company Number: 933932 (England & Wale5) designability Designability Charity Limited Contents of the Financial Statements for the Year Ended 31 March 2024 Page Annual Report of the Trustees 4 to 12 Annual Report of Senior Leadership 13 to 22 Governance and Management 22 to 23 Reference and Administrative Details 24 10 25 Independent Report ol Audilors 26 to 30 Statement ol Financial Activities 31 Statement ol Financial Position 32 Statement of Cash Flows 33 Notes to Ihe Stalement of Cash Flows 34 Notes to the Financial Statements 35 to 60 designability Foreword from the Chair, Jerry Marwood 2023-24 has been another successful and inspiring year for Designability. Our team have researched. designed and delivered to make a real impact to disabled people's lives. These are some of our key highlights from the year: Our Accessible Pushchair has won several design awards, including the prestigious Baby Products Association concept and innovation award. It also won two European Product Design Awards and was given the prestigious title of the best'Design for Humanity.. We launched a new project on Accessible Vehicle Design, in partnership with Motability Foundation, following on from the hugely successful work on Accessible Electric Vehicle Charging. We handed over 209 Wizzybugs to disabled children and their families, providing them with independence and freedom with an impact th8t will span their lifetime. We featured in a BBC Lifeline appeal, boosting awareness of and showcasing the charity and ourwork. Whilstthis particularappeal has nowclosed the accompanying film su mmarises brilliantly the impact that Designability is able to deliver. During the year we bid farewell to our previous CEO, Catharine Brown. During her time at the helm, Catharine ser in motion an ambitious and significant period of growth for the charity. On behalf of the Board of Trustees, I would like to thank her for her commitment and leadership. In January, we welcomed our new CEO, Jim BDwes. Jim brings a wealth of experience as a hugely successf ul founder and leader. With his significant experience in the charity sector, along with his drive, leadership skills, and personal qualities. Ji m will lead the charity into the next stage of our ambitious strategy and to achieve our vision - a future where disabled people live the life they choose. Finally, I would like to thank the incredible team at Designability who have unrivalled expertise in the creation and delivery of innovative and accessible products and services they have continued to drive the organisation forward, they in turn have been supported by our Trustees whose tireless appetite for what we are trying to achieve makes myjob so rewarding. Jerry Marwood, Chair of Trustees, Designabilily designability Annual Report of the Trustees The Trustees, who are also directors of the Charity for the purposes of the Companies Act 2006, present the Annual Report and audited financial statements for the year ended 31 March 2024. The Trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). In this report and financial statements Designability Charity Limited is referred to as 'Designability' or the 'Charity'. Strategic Framework Our Purpose We believe that it is not a person s condition or impairment that creates a disability, but barriers in society that disable people. Our purpose is to remov8 th8se barriers and ensure disabled people have an equal opportunity to be independent and live the life they choose. W8 do this by convening and harnessing the perspectives of disabled people and their lived experience. By using the principles of person.centred design, we listen to disabled people and co-design innovative products and services that enable disabled people to be independent. Our Vision A future where disabled people live the life they choose. Our Mission To create equality of opportunity for disabled people by removing barriers to independence. designability Ensuring our work delivers our aims Designabilily has a published slrategy for 2023-2026, which encompasses our vision, mission and purpose as set out above. It outlines eight Glear ambilions and a series of goals we will achieve. These cover our work with and for our beneficiaries, our innovative design work and developing our team. Ahead of publishing an organisational strategy we undertake a full strategic review. This encompasses looking al how the charity creates the most impacl and is financially sustainable. This is underpinned on an annual basis by detailed goals which seek to deliver against our strategy. We review these goals monthly to ensure we are progressing against them. This helps us ensure our aims, objeclives and activit18s remain focused on our stated purpose. We have referred lo the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our goals and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the goals they have set. Designability publishes an annual Impact Report which sets out the key activities and achievements of the Charity each year. Plans for the future There are 16 million disabled people in the UK today, which represents almost 1 in 4 people. Mobility is the most frequently reported impairment type (470/01. Our key plans for the future include: A step change in the number of young disabled children who have independent powered mobility with a Wizzybug., Availability of our award-winning innovation, the pushchair lor wheelchair users, in the UK, lo enable disabled people to enjoy independent mobility with their children- Enabling better access to transport for disabled people., A long-term and financially sustainable organisational model., Increasing engagement with and involvement of disabled people across and within our organisalion; and Building on the culture of our organisation and ensure everyone has what Ihey need to maximise Iheir potential. Full details of our ambitions and goals under each of these priority areas can be found on our website. (htt s.'Ildesi nabilit .or .uklabout-uslour-strate designabjlity Organisation structure and how decision5 are made Designability is a registered charity and company limited by guarantee, whose work is overseen by a Board of Trustees. The Board of Trustees meets quarterly as a minimum. It is responsible for ensuring Ihal the Charity meets ils charitable objectives and is run according to our Articles of Association and Memorandum of Associalion. The Truslees do not receive any remuneration for their duties. A Governance Review was completed during 2021-22 against the Charity Commission's Good Governance Code. The review found no concerns requiring immediate action bul we continue lo improve our ongoing performance and monitor developments in governance through our Governance Working Group. In September 2023, after four years in post, Catharine Brown stepped down from her role as Chief Executive. In January 2024, the Board appointed a new CEO, Jim Bowes. Jim has over 20 years of experience as a founder, leader and consultant in a wide range of start-ups, commercial, public sector and not-lor-profil environments. The Board have welcomed Jim's drive, gxpgrience and personal qualities to take lorward the ambilious strategy and lo lead the charity to achieve our vision, In January 2022 we regist&r&d Designability Limited as a separate enlily. The company is dormant and share capital is owned by Designability Charity Limited only. Nature of governing document and how the charity is constituted Designability is a charitable company limited by guarantee, incorporated on 18 June 1968 and registered as a charity on 11 July 1968. The Charity 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. Our Object5 The objects of the Charity are.. 'The advancement of medical education and of engineering research for medical purposes, the dissemination of the knowledge thereby acquired and the relief of those in need (by reason of their disability, age or infirmity} by the provision of devices and equipment lo as51St in their medical treatment or improve their quality of designabjlity Governance - Subcommittees The Board operates two sub-committees, each with a clear purpose and remit. The sub-committees are.. Products and Impact Committee This committee of Trustees, with Senior Leadership Team members in att8ndance, meets quarterly prior to Board meetings lo provide advice and assurance on the activity of the Charily that creates impact for disabled people, through its provision ol innovative projects, products and services. Finance and Governance Committee This committee ol Trustees, with Senior Leadership Team members in attendance, meets quarterly prior to Board meetings to provide assurance lo the Board on the management and utilisalion of resources Ilinances, people, systems and premises) plus the governance ol the Charity. Responsibility for the day lo day running of the organisation and delivery of activities is delegated to the Chief Executive. A detailed Delegated Authority Matrix is in operation which is reviewed annually. Safeguarding All trustees are responsible lor ensuring safeguarding practises and risks are appropriately managed. A designated member ol the Board ol Trustees has a specific responsibility to oversee safeguarding within the Charily and is responsible for ensuring our Children's and Adulls, Safeguarding policies are appropriate and updated as required. Established processes are in place for reporting safeguarding concerns or issues. During the year, there were no inslances of safeguarding incidents flagged or reported for children or adults. Risk management As an ISO 9001 '.2015 certified organisation, risk-based thinking is a key part of our management approach. Major risks are identified and ranked in terms of their potential impact, likelihood and the strength of mitigation activity. We regularly review our organisational risk register and respond to the changing internal and external lactors. designabjlity Major risks, lor this purpose, are those that may have a significant effect on.. Achievement of our aims and objectives. Meeting the expectations of our beneficiaries or supporters., Financial stability, including stability and security of income; or Operational performance, including risks lo our staff or volunteers. The Trustees review these risks on an ongoing basis and satisfy themselves thal adequate systems and procedures are in place to manage and mitigate the risks identified. Where appropriate, risks are covered by insurance. The following framework is central to ensuring adequate risk assurance; Flegular review ol risk at an operational level and within all gov8rnance committees. Key risk areas are reviewed by the Finance and Governance Committee half yearly and wilh an annual r8view by the Board of Trustees. Developmenl ol aclion plans lo control risks identified; Risk identilicalion and assessment is embedded inlo Standard Operating Procedures (SOPS) and the Quality Management framework. All significant activities undertaken are subjecl to a risk assessment., A clear structure of delegated authority and control., Regular internal audil lo ensure compliance with agreed risk managemenl processes., Maintaining r&serves in line wilh set policies. During 2023-24, our risk management work focused on responding to financial risks, including around fundraising income and securing future income streams, as well as recruitment and staff retention and business continuity risks. Mitigating action plans, financial controls and policies and procedures are in place where required lo manage these risks. As a medical device manufaclurer, we have continued to invest resources to ensure we are compliant with medical device regulations. Financial review The Board of Trustees are content with the financial performance of the Charily this year. Whilst we have made a deficit, the first in many years, we have invested in the team and our infrastructure lor us to be able lo progress and achieve our future strategic goals and deliver greater impact for disabled people. designabjlity Income has decreased from the previous year to £1,930,799 (£2,542,334 in 2022- 23} due to the competitive fundraising environment and the rephasing and extension in year of grant income from one key partner. We recognise the continued genorosity of our donors and supporters and are planning to implement a fulure income stralegy over the next two years. Our expenditure has increased from £2,193,394 in 2022-23 to £2,238,053 in 2023-24 as we continue to invest in our leam and our inlrastructure. We expecl these investments to continue into the following financial year. Financial effect of significant events The Finance and Governance Committee review financial performance on a quarterly basis. The Trustees continue to value the funding partnership with Motability Foundation to deliver the Wizzybug Loan Scheme over the years ahead, which brings welcome security, and understand the continuing need to diversify and grow other sources of income for the longer t8rm. Any factors likely to affect future financial performance and going concern The Trustees are confident that any lactors which might affect our future financial performance have been documented in our risk register, along with mitigating actions. Key risks impacting the charity relate to our team, as we, along with all organisalions, continue to operate in a challenging recruitment market and financial suslainabilily, as we face ongoing cost pressures and a challenging fundraising landscape. For fundraising, the market remains competitive across all income streams, and we are aclively looking at income diversification. Internally, our key risks relate lo business continuity around our IT systems and production processes, and we continue to improve our mitigations in these areas. Measures have been taken where possible to miligate against all financial risks and to ensure Designability can continue lo operate effectively and achieve our charitable aims. As such the Trustees are confident that Designability retains sulficient resources to continue for the minimum 12 month period to be considered as a going concern. Principal funding sources and how they support key objectives Principal funding sources were grants and donations from trusts and foundations, along with other forms of voluntary income from a range of partners and supporters. These sources were a mix of reslricted and unrestricted donations. designabjlity Our largest restricted fund is lor the Wizzybug Loan Scheme, which directly delivers againsl our objective of facilitating access to Early Years Powered Mobility for disabled children younger than five years old. This is funded by restricted and unrestricted donated funds. Further restricted funds have been received for other specific projects around Wizzybug and other projects which support our key objectives, including our work on accessible vehicle design and improving access to transport for disabled people. A summary ol our sources ol income and expenditure for these programmes is provided within the Report of the Senior Leadershi? Team on page 13. Arrangements for setting the pay of key management personnel The Trustees consider that the key management personnel are the Chief Executive, the Director of Design and Innovation, the Director of Programmes, the Director of Fundraising and Communications and the Director ol Finance and Operations. The pay ol senior staff is reviewed annually by the Chair and Chairs of the Subcommittees. Any increase in pay is considered in accordance with average earnings within comparable organisalions, cost of living increases, the financial position of the charily and individual performance. When recruiting, pay is sel by benchmarking salaries against a comparable role. For the year ended 31 March 2024, the total employment benefits ol key management p&rsonng1 (including Nl and pension contributions) are detailed in note 11 to the financial stalemenls. Reserve5 policy A comprehensive reserves policy is in place and reviewed annually, to retain six months ol average operating costs in a designated fund. This is to provide an internal source of funds for silualions such as a sudden increase in expenses, one- time unbudgeted expenses, unanticipaled loss in funding, or uninsured losses. This is based on budgeted expenditure, which has increased from prior year, but the level of the fund has decreased to lake account of the operating costs covered by restricted funds. An Innovation and Development Reserve is held lo provide funding for worthwhile and impactful projects which may not be funded from other sources or in the initial stages of project scoping, as well as for other development work. Use of this Reserve is decided by the Board ol Trustees. During the year, we used the reserve to fund our ongoing work on the accessible pushchair. For 2024-25, the Board has 10 designabjlity decided to increase the Innovation and Development Fund to ensure Designabilily can continue to deliver high quality innovation and design in the year that is not otherwise funded and other key development projects. The Trustees have decided to mainlain the Syslems and IT Development Fund in order to ensure funding is available lo finish the planned investment for our infrastructure and database projects. During the year we used the fund for investment in our CRM development. For 2024-25, we will continue to invest in our CFIM and our more general IT infrastructure. The General Fleserve consists of the balance of any unrestricted funds that are not designated in the Operating Reserve, the Innovation and Development Reserve or the Systems and IT Development Reserve. The Trustees reviewed the level of designated funds on 31 March 2024 and confirmed that the Reserves Policy has been met. Value as of 31 March 2024 £595,834 Purpose Restricted funds Funds for reslricled and other allocated projects, such as.. Wi2zybug Loan Scheme and Access Fund Accessible Vehicle Design Wizzybug improvements including redesign and new motors Unresiricled reserves General Reserve - Unfeslricled Operating Reserve Desi naled Innovation and Development Reserve - Desi nated Systems and IT Development Reserve- Desi naled £91,990 £915,881 Funds sel aside adequate lo cover six months, running costs, less amounts covered b reslricled funds To support innovation and new product development projects as well as internal development programmes of work £397,419 £118,000 To fund investment in IT infrastructure, databases and systems As of 31 March 2024, the Charity had free reserves (unrestricted reserves Ihal are not functional fixed assets) of £632,773 which form part of the General Reserve and the designaled Operating Reserve above12023'. £989,346). designability Investment policy The Trustees manage the investment portfolio in accordance with the Charity's governing document. Monies not immediately required for the objects of the Charity may be invested in investments, securities or propety as may be thought fil and in accordance wilh any relevanl laws. During the year, the Board included Trustees with appropriate knowledge and experience of investments suitable to the present needs of the Charity. The Charity holds the majority of invested money in managed funds, the most significant ol which is with a large, well-eslablished and charity-specific fund. The fund offers a mix of diversified and low-risk investmenl assets and aims to provide long-term growth and distributions lo protect against inflation. The fund has an ethical investment policy. This is in line with the Investment Policy 0¢ Ihe Charity in that no undue risk is taken in seeking a higher investment return. The Charity does not invest in individual companies and does not hold any 'social investments,, and the purpose in making any investments is wholly to further the Charity's aims. designability Annual Report of the Senior Leadership Team 2023-24 has been an exciling and inspiring year lor Designability, being the first year of our new strategy period. Key accomplishments towards achieving our strategic aims include: The Accessible Pushchair won several design awards.. the prestigious BPA {Baby Producls Association) concept and innovation award and two European Product Design Awards lePDAsl'. 'Best Design lor Humanily, and 'Family & Kids - Gear and Stroller,. Work on our project to improve the Wizzybug design and delivery model is underway and we have been supported by an international partner. Following the huge success of our project on accessible electric vehicle charging, we launched our new project on Accessible Vehicle Design, in partnership with Molabilily Foundation. We handed ov8r 209 Wizzybugs to disabled children and their famili8S. We launched our new websi18 to promot8 the work ol the charity as a whole and a microsite to showcase specific project work. We were the subject ol a BBC Lifeline appeal, which boosted awareness of the charity and our work and resulted in over 700 new supporters, raising c.£70k. A. Design and Innovation We aim to be a charity known nationally for our skills to engag8 With our beneficiaries and develop a deep understanding of their needs, matching this with our innovative and practical design skills, to advise on and create solutions that bring true benefit. New product development- The Accessible Pushchair The Accessible Pushchair is our current flagship product development project, which will enable disabled parents and carers who are manual wheelchair users to lake their babies and young children out independently. During 2023-24, we undertook prolonged user testing of our final accessible pushchair prototype, spending significant periods ol time with families as Ihey went about their usual daily aclivities. The feedback was overwhelmingly positive, and the prototypes performed well. We officially launched our design at the Harrogate 13 designabjlity International Nursery Fair in October 2023 and have since gone on to win several prestigious awards. Commercial interest in the accessible pushchair has been lower than expected and following engagement with industry, we're now looking to undertake further market testing and pilot activity charitably to further prove the potential lor this product. Design project- Accessible Vehicle Design Building on Ihe huge success of our project on electric vehicle charging, we started a new projecl, funded by Molability Foundation, around accessible vehicles. During the year we engaged with a wide group of disabled users and industry stakeholders to understand the opportunities to innovate vehicle design to be more accessible and inclusive. Clear themes around the issues and opportunities emerged and we will continue our work in this area, supported by Motability Foundation, into the next financial year and beyond. Design review- Wizzybug We want to support more children to have a Wizzybug but recognise that to meet a greatly increased demand in the thousands, we need a new product that can be made al scale and that enables larger children to remain in Wizzybug longer, bridging the current gap in provision (which sadly sees many Children, once they've outgrown Wizzybug, returning lo a pushchair whilst a118rnative wheelchair provision is sought via the NHS or privately). During the year we received funding to progress the first phase of this project, which will involve new user research lo deepen our understanding of beneficiaries needs and working with trusled partners. We have also created a cross-funclional team, including therapists and engineers, to work on improvements to help Wizzybug play a more practical part in everyday family life. B. Programmes Early Years Powered Mobility and the Wizzybug Loan Scheme The Wizzybug Loan Scherne provides powered wheelchairs, designed and made by the Charity, to young children throughout the UK, free ol charge. During Ihe year we welcomed 209 children onto the loan scheme, giving us a total of over 310 children currently learning, developing and having fun with Wizzybug. We have placed lun and families at the centre of our loan scheme. 14 designability We continue to see the consequences of Ihe challenges faced by our beneficiaries around access lo NHS clinical support and diagnosis. Families can apply directly to us, removing the need for a clinical relerral and Ihe electronic application process is under constant review to streamline and simplify. During the year we have ensured a greater focus on play and participation during our handover appointments. We have increased our support for our families throughout the loan period, putting extra emphasis on developing the skills of Ihe child whilst using the Wizzybug, and helping families in making adjustments and using the Wizzybug through support videos. Internally we have made significant progress on Ihe sel up and use of our CRM system, helping us to provide a more streamlined approach and service for our families. Our ongoing work lo develop the Loan Scheme and the number of children we can reach continues to be supported by a wide range ol donors and partnerships, including a key partn8rship with Motability Foundation. During the year we updated our partnership agreement with Molability Foundation to rephase the support over an extended number of years. We have increased handover capacity al our regional centre in Leeds and are continuing to work on a long-lerm solution for Northern Ireland handovers, following the change in customs regulations as a result ol Brexit. Our pilot partnership with Whizz Kidz provided some valuable learning opportunities and we will consider further partnerships or pilots in 2024-25. We are sector leaders on research in early years powered mobility and during the year we have started further research into th8 use of powered mobility in connection wilh childhood development - focusing on family, litness, friends, fun, function and future. In June 2023 we were 'highly commended, in the presligious annual Charily Awards, for the Wizzybug Loan Scheme. Product sales Thousa nds of people with a wide range ol disabilities are helped by our products every year. Some of these products are produced in our workshop, and some are designed 15 designability by us but produced in partnership with other organisations. Due to a strategic decision to focus directly on our UK beneficiaries, we no longer sell Wizzybugs overseas. C. Partnerships We work with carefully selected and trusted partners to ensure that accessibility is increased for products and services beyond those we provide directly, allowing us to expand our reach and impact more disabled people's lives. National Centre for Accessible Transport {ncat) We are a founding member of the consortium, led by Coventry University, with the mission to make transport accessible for all, by engaging with disabled people to better understand their experiences and co-design solutions, amplifying their voices In all decision-making, and collaborating widely with transport stakeholders. fid We are now in Ihe 2 year of this 7-year work programme. A clear roadmap has emerged and foundation projects are underway. During the year, the Accessible Transport Policy Commission, chaired by Baroness Tanni Grey Thompson was launched. The commission is a cross-party Parliamentary lorum ol MPS and P88rs, and it will be the mechanism by which ncal seeks policy change arising from its research and evidence. D. Education Three Ways School We have a long-standing relationship wilh local SEND school Three Ways in Balh. This initiative is for 13-15 year old students, many of whom have no experience in a workplace, lo help them prepare for lif8 after they leave school. During the summer, we again welcomed students from the school to spend lime in our workshop, focussing on Wizzybug production but allowing ihem lo gain experience ol working life in a supportive environment. Paragon School We were selected as one ol a small number of local charities lo receive support from children al the Paragon School, Bath. We welcomed pupils to join us for a day lo designabjlity explore the Wizzybug design process. We also supported a student from Bath Spa University through an internship, supporting our marketing and online activities. E. Projects and plans for the future In June 2023, we published our new strategic plan for 2023-26. Building on our previous plan, we have taken this opportunity to refresh how we express our purpose, vision, mission and values lo reflect the social model of disability, that people are disabled by barriers in society and not by their impairmenl or difference. Rates of disability ir) the UK are still rising, and disabled people still do nol have all that they need to live the life they choose. In the year ahead we will complete our Theory of Change work, to be able to better articulate our vision lor the future and the impact we have in this space. We want products and services to be inclusive and accessible by default. We envisage a world where disabled people can participate and contribute to everyday life in society without barriers and Designability has a major role to play in making that happen. We will continue to strive lo launch our Accessible Pushchair and hope to release a small production run, with the long-lerm aim ol this product being available for every disabled parent or carer, We will continue with our review of the end-lo-end process to provide Wizzybug, with the aim of getting this to the thousands of children who could ben8fit from th8 irldependence powered mobility can bring. We will start some research on idenlilying the top needs of disabled people, working closely with our beneficiaries lo ensure Iheir needs are always at the heart of our innovation. We will also continue to work with carefully selected partners on user engagement and design projects to increase accessibility and remove barriers to independence for disabled people. We will build on our work on accessible EV charging, and wilh the continuing support of Motability Foundalion, we will conclude the firsl stage of our project on accessible vehicle design, and move into phase 2 01 the project. focussing on creating concept solutions to the main challenges identified in phase 1 . designability We have expanded our team considerably in recent years to make progress with the goals outlined in this strategy. We will continue to build on the culture of our organisalion and ensure everyone has what they need to maximise their potential. We will increase engagement with and involvement of disabled people across and within our organisation and build on our approach both internally and externally to equality, diversity and inclusion. F. Regulatory compliance Quality management is embedded into our organisation through the exlensive use of our Quality Management System. We continue lo be audited by our chosen certification body, BSI and our ISO 9001.'2015 Certification has been maintained. Wizzybug is a medical device and we conlinue lo meet all medical device regulatory requirements. G. Operations Our People Our continued success is thanks to our team of dedicated and talented staff. We have expanded during the year to 39 employees, with new roles created lo help grow and deliver our services, enhance our Design and Innovation team and contribule to fundraising and back-oflice activities. We are proud ol our culture and started work during the year to articulate and capture what this means lo us, enabling us to clearly articulate our values and behaviours. We will continue lo build on this, ensuring the high slandards we hold ourselves lo are embedded in all aspects ol our work. During the year we repositioned our Production and Engineering Support leam, bringing together all elements of the Wizzybug Loan Scheme under one direclorate. This has allowed us lo ensure every element of the process is working effectively to optimise the end-to-end delivery of the loan scheme. 18 designabjlity We operate a hybrid working model, where staff work both in our premises and remotely where their role allows. We continue to ensure close and collaborative working practices through regular team days in our offices and dedicating time lor all staff events. We are a Level 1 Disability Confident employer and aim to achieve Level 2 in 2024- 25. In August, our Trusts and Foundations fundraiser, Ruth Hooper, was awarded an award by the Mayor of Bath lo recognise and celebrate 50 years of continuous service at Designability. IT, systems and website During the year we made significant progress on our Customer Relations Management ICRMI system for use in running and managing ihe loan scheme. This has improved the way in which we communicate with our families and between teams and we will continue lo build on this to improve efficiencies during the next financial year. This has also enabled us to extract critical data points and information, allowing us to make evidence-based decisions and understand better our progress towards our goals. We were accepted onlo the Wesl of England Made Smarter programme, which will help identify how digital can make our processes more efficient. We are anticipating we will focus our time on the programme around our stock management. Designabilily's new website went live in November. The website was designed, developed and tested with the support ol an internal and external steering group made up of representatives from each department of Designability, setvice users, supporters and volunteers. The nexi phase will be launching ihe Wizzybug families zone, lor families to access once they have a Wizzybug, providing them with more resources, signposting to other services and support that may be beneficial. They can also provide feedback and update key information. 19 designability Premises We operate across two sites in central Bath. Our premises at the Royal United Hospital {RUH) welcomes families attending Wizzybug handover appointmenls to our dedicated clinical assessment rooms, as well as those participating in our user engagemenl sessions and prototype lesting. Our workshop premises continue lo be a key hub of Designability's activities. We use the space to build and refurbish Wizzybugs, to provide a collaborative and creative workspace for our research projects and to design and develop innovation projects and prototypes lor new products. J. Summary of our financial performance We closed this financial year with a deficit of £263,213, the first deficit in a significant period of time. This deficil was expected, reflecting investments required in our infrastructure and team, but also the changing and challenging fundraising environment across all areas of our voluntary income. INCOME Donations Voluntary income from donations decreased this financial year to £1,664,563 <2022- 23: £2,034,142). As in previous years, the majority of donations received were from Charilable Trusts and Foundations. This included some large donations to fund work on our Accessible Vehicle Design project, the design review ol and improvements lo the Wizzybug and our workshop operating costs. Donations to lund the operation of the loan scheme were however lower than in previous years. Costs against some of this income will be incurred in the next financial year and are held in Ihe relevant restricted funds. Individual giving had a strong year following our BBC Lifeline Appeal campaign. Designability is registered with the Fundraising Regulator, committed to the Fundraising Promise and all fundraisers acting on behalf of Designabilily adhere to the Code of Fundraising Praclice. We are also organisalional members ol the Chartered Institute of Fundraising, giving all members of staff further access to besl practice advice, support and training. 20 designability Our customer feedback process forms part of our Quality Management System and information on how to make a complaint is available to the public on our website. We have not received any complaints in relation to fundraising activity this year. Sales and royalties Product sales and royalties decreased to £121,821 {2022-23.' £452,403} due lo our strategic decision to cease international sales ol Wizzybugs. EXPENDITURE Total expenditure this year was £2,238,053 {2022-23'. £2,193,394), an increase of This small increase has been driven by ongoing pressures on our overhead cost base as well as investment in our CRM system and our leam. Savings were rnade in year where we delayed some spend around strategic change until our new CEO was in place and will be incurred in the next financial year. Our expenditure on staff costs did not increase as much as anticipated due to the on-going challenging recruitment environment. Some of the costs which will be funded by income received this year will be recognised in the next financial year. C05t of raising funds The cost of raising funds increased to £152,40012022-23'. £110,388) lor Ihe reporting period, reflecting further growth in our Fundraising Team and activities. RESERVES Ending the year wilh a deficil has decreased our reserves and we finished the year at £2,119,125. Our restricled funds make up nearly a third of this balance1£595,834) and are lo be spent on specific projects or aclivities. See note 20 for further details. The remaining amounl is split between our Operating Reserve, Systems and IT Reserve, Innovation and Development Reserve and our General Reserve. Whilst our reserves remain strong, the significant majority of these funds have been restricted or designated lo future projects and costs we know we will incur in the next financial year. Our General Reserve makes up only 5 % of our tolal reseNes. Summary 2023-24 was financially a more challenging year than we have seen in recent times. As expected, we have finished the year with a deficit, reflecting the diflicull 21 designability fundraising environment and the need to make investments in our infrastructure and team. This investment will continue into 2024-25 and we will monitor Ihe continuing spend, along wilh the benelits that we expect to realise, to ensure we can maintain the financial sustainability of the charity and continue to strive to bring about increased positive impact lor disabled people. Governance and Management Governing document The Charity is controlled by its governing document, a deed of trust, and conslilutes a limited company, limiled by guarantee as defined by the Companies Act 2006. Statement of Tru5tee5' responsibilities The Trustees (who are also the directors of Designability Charity Limited for the purposes ol company lawl are responsible lor preparing the Annual Fleport ol the Trustees and the financial slalements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees lo prepare financial slalemenls for each financial year which give a true and lair view of the state ol affairs of the charitable company and of the incoming resources and applicalion of resources, including the incom8, and expenditure, of the charitable Company for that period. In preparing those financial statements, the Trustees are required lo.. Select suitable accounting policies and then apply them consistently., Observe the methods and principles in the Charity SORP; Make judgements and estimates that are reasonable and prudent., Prepare the financial statements on the going concern basis unless it is inappropriate to presume that Ihe charitable company will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them lo ensure that the financial statements comply with the Companies Acl 2006. They are also responsible for safeguarding the assels of the 22 designabjlity charitable company and hence lor taking reasonable steps for Ihe prevenlion and detection of fraud and other irregularities. In so far as the Trustees are aware.. There is no relevant audit information of which the charitable company's auditors are unaware., and The Trustees have taken all st8PS that th8y ought lo hav8 taken to make Ihemselves aware ol any relevant audit information and to establish Ihal the auditors are aware of that information. 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 stat8m9nts may differ from legislation in other jurisdictions. Methods, policies and procedures for recruitment, appointment, induction and training of Trustees The Board has appropriate procedures for the recruitment, appointment, induction and training of its Trustees. Trustees have been recruited through an open and transparent process involving the placing of advertisements in appropriate media, or via appointment as outlined in the Articles of Association. The Chair of the Board along wilh a panel of trustees consider the skills, diversity, gender balance and lived experience of disability ol the Board prior to appointments being made. A comprehensive induction programme is undertaken by all new Trusle@s and Iraining needs are identified through regular Board reviews. AUDITORS The auditors, Moore, will be proposed for re-appointment at the lorthcoming Annual General Meeling. Approved by order of the Board of Trustees on 23 September 2024 and signed on its behalf by: P Faithurst Trustee and Company Secrelary 23 designability Reference and Administration Details Charity Name: Designability Charity Limited Charity Registration Number: Company Registration Number.. 933932 Registered Oflice.. Departmenl D1, Wolfson Centre 256335 Royal Unit8d Hospital NHS Trust Bath. BA1 3NG Tel.. 01225 824103 Email.. info@designability.org.uk Website.. www.designabilily.org.uk Designability Truslees Jerry Marwood Appointed 2021 Chair Martin Bloomfield Appoint8d 2018 (Resigned 2023) Paul Fairhursl Appointed 2020 Martin Hunt Appointed 2020 (Resigned 2024} Emma Legg Appointed 2020 Ben Metcalfe Appointed 2020 (Products & Impact Committee Chair) Sam Whatley Appointed 2020 (Interim Finance & Governance Committee Chair) Catherine Bailey Appointed 2022 Anna Chatzimichali Appointed 2023 Andrew Monk Appointed 2022 Elisabeth Skeet Appointed 2022 Julian Massie Appointed 2023 Michael Ward Appointed 2023 Kathryn McKee Appointed 2024 Nicola Wilson Appointed 2024 24 designability Company secretary Company Secretary.. Assistant Secretary.. Paul Fairhurst Kathleen Mackey President: Vacant Chief Executive: Jim Bowes lappoint8d January 20241, Catharine Brown (resigned September 20231 Auditor Moore, Chartered Accountants and Slalutory Auditor, 30 Gay Street, Bath, BA12PA Bankers: Barclays Bank UK PLC, 1 Churchill Place, London, E14 5HP 25 designabjlity Report of the Independent Auditors to the Members of Designability Charity Limited opinion We have audited the financial statements of Designability Charity Limited Ilhe 'charitable company'l for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position, the 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 (United Kingdom Generally Accepted Accounting Pra¢ti¢el. In our opinion the financial statemenls.. giv8 a true and fair vi8w of the stale of th8 charitab18 company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI {ISAs {UK}l and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including Ihe FRC'S Ethical Standard, and we have fulfilled our other 81hical 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 ihe 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 doubl on the charitable company's ability to continue as a going concern for a period of at least twelve monlhs from when the financial statements are avthorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other informalion The trustees are responsible for the olher information. The other information comprises the 26 designability informalion included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Report of the Independent Auditors to the Member5 of Designability Charlty Limited 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 mat8rial 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 misstalemenl of this other information, we are required lo report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information giv8n in the Strategic R8POrt and the R8porl of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements., and the Strategic Report and th8 Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the coursè of the audit, we have not identified material misstatements in the Strategic Report and the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneralion specified by law are not made; or we have not received all the information and explanations we require for our audit; or the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Responsibilities of trustees As explained more fully in the Statemenl of Trustees, Responsibililies, the trustees (who 27 designability are also the direGtors 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 truslees 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 lo going concern and using the going Goncern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but lo do so. 28 designability Report of the Independent Auditors to the Members of Designability Charity Limited Our responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Explanation as to what extent the audil wa$ considered capable ol detecting irregularities, including fraud The objectives of our audit in respect of fraud, are,. to identify and assess the risks of material misstalemenl of the financial statements due lo fraud., to obtain sufficient appropriate audit evidence regarding the assessed risks of material misslatemenl due to fraud, through designing and implementing appropriate responses to those assessed risks., and lo respond appropriately lo instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governanc8 of th8 company. Our approach was as follows.. We obtained an understanding of the legal and regulatory requirements applicable lo the company and considered that the most significant are the Companies Act 2006, the Charities Act 2011 and Ihe Charities SORP (FRS102}. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity company's ability to operat8 or avoid a material penalty. We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance. We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 29 designability Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklaudilorsresponsibilities. This description forms part of our Report of the Independent Auditors. 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 audil work has been undertaken so that we might state to the charitable company's members those matters we are required to stale to them in an auditors, report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and t charitable company's members as a body. for our audit work, for this r rfo e opinions w8 hav8 formed. Simon Cunningham (Senior Statutory Auditor) for and on behalf of Moore Chartered Accountants and Statutory Auditor 30 Gay Street Bath BA1 2PA Date: 30 De5ignability Charity Limited.. Statemenl ol Financial_Activities for the Year Ended 31 March 2024 31.3.24 31.3.23 Total Total funds Unrestricted Restricted funds funds funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 599,153 1,065,410 1,664,563 2,034,142 Charitable activities Charitable Activities 122,070 103,582 225,652 481.510 Other trading aclivit18S Investment income 6,716 33,868 6,716 33,868 6,473 20,209 Total 761,807 1.168,992 1,930,799 2,542.334 EXPENDITURE ON Ralsing funds Raising donations and legacies 126.772 25,628 152,400 110.388 126,772 25.628 152,400 110,388 Charitable actlvities Charilable Activities 421,391 1.314,951 1.736,342 1.787,333 Other 177,723 171,588 349,311 295,673 Total 725,886 1,512,167 2,238,053 2,193,394 Nel gainslllossesl on inve51menls 44,041 44,041 127,1051 NET INCOMEI{EXPENDITUREI Transfers between funds 79,962 20 {263,1791 1343.1751 1263.213} 263.179 321,835 Net movement In funds 1183,2171 179.9961 1263.2131 321,835 RECONCILIATION OF FUNDS Total funds brought forward 1,706,508 675,830 2,382,338 2,060,503 TOTAL FUNDS CARRIED FORWARD 1,523,291 595,834 2,119,125 2,382,338 CONTINUING OPERATIONS All income and expenditure has arisen from continuing activities. designabjlity Designability Charity Limited {Regislered number. 9339321 Statement of Financial Position 31 March 2024 31.3.24 31.3.23 Notes FIXED ASSETS Tangible assets Investments 13 14 116,376 782,359 156,401 588,319 898,735 744,720 CURRENT ASSETS Stocks Debtors.. amounts falling due within one year Debtors.. amounts falling due after more than one year Cash al bank 259,756 176.116 16 122,614 212,011 16 33,000 1,039,669 36,000 1,442,819 1,455.039 1,886,946 CREDITORS Amounts falling due within one year 17 1234.6491 1229,3281 NET CURRENT ASSETS 1,220,390 1,637,618 TOTAL ASSETS LESS CURRENT LIABILITIES 2,119,125 2,382,338 NET ASSETS 2,119,125 2,382,338 FUNDS Unreslricled funds Restricted funds 20 1,523,291 595,834 1,706,508 675,830 TOTAL FUNDS 2,119,125 2,382,338 These financial slalemenls have been prepared in accordance with the provisions applicable lo charitable companies subject lo the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on and were signed on ils behalf by.. P Falrhurst. Tnjstse 32 designabjlity Designability Charity Limited Statement of Cash Flows for the Year Ended 31 March 2024 31.3.24 31.3.23 Notes Cash flows from operatlng a¢tlvltie$ Cash generated from operations 1 (269,0191 86,266 Net cash (used in}Iprovided by operating activities 1269,0191 86,268 Cash flows from Investlng actlvltles Purchase of tangible fixed assets Purchase of fixed asset investments Sale of tangible fixed assets Sale of fixed asset investments Dividends received (18,0001 (280,4101 185.2711 1,389 130,411 33,868 20,209 Net cash used in investing activities 1134,1311 163,673) Change in cash and cash equlvalents In the reporting period Cash and cash equlvalents at the beginning of the reporting period 1403,1501 22,593 1,442,819 1,420,226 Cash and cash equivalents at the end of the reporting period 1,039,669 1,442,819 33 designabjlity Designability Charity Limited Notes to the Statemenl of Cash Flows for the Year Ended 31 March 2024 RECONCILIATION OF NET IEXPENDITURE}IINCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.3.24 31.3.23 Net (expenditure)lincome for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges IGain)Ilosses on investments Profit on disposal of fixed assets Dividends received Increase in stocks Decreasellincreasel in debtors Increaselldecreasel in creditors (263,2131 321,835 58,025 (44,041) 85,407 27,105 1831 133,868} {20.2091 183,640} 17,8281 92,397 {62,6571 5,321 (257,3041 Net cash (used in}Iprovided by operations 1269,019) 86,266 ANALYSIS OF CHANGES IN NET FUNDS At 1.4.23 Cash flow At 31.3.24 Net cash Cash al bank 1,442,819 1403,150) 1,039,669 1,442,819 1403,1 $0) 1,039,669 Total 1,442,819 1403,150) 1,039,669 34 designabjlity Designability Charity Limtted Notes to the Financial Statements for the Year Ended 31 March 2024 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charilable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP {FRS 1021 '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 Irelané IFRS 102} (effective 1 January 2019),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the r8valualion of certain assets. Going Concern The trustees are confident the charity has sufficient resources lo meet its obligations as they fall due for a period of at least twelve months from the dale of approval of these financial statements. The financial statements are Iherefore prepared on a going concern basis. Preparation of consolidated finanGial statements During the year the Charity incorporated a subsidiary company. The Charity has taken advantage of the exemption not to produce consolidated financial statements on the ground that its subsidiary, Designability Limited, is dormant. Critical accounting judgements and key sources of estimation uncertainty In preparing these financial statements, the directors have had to make the following judgements.. Income All income is recognised in the Statement of Financial Activities once the Charity has enlillemenl to the funds, il is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income.. Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and ils amoLJnt can be measured reliably. Legacy income is recognised when receipt is probable and entitlement Is established. Consultancy, sales and royalties are accounted for in the period in which the relevant goods or services have been provided. 35 designability Income from donated goods is measured at fair value of the goods unless this is impractical lo measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. Expendlture Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which il relates.. 36 designabjlity Designability Charity Limiled Notes to the Financial Statements- continued for the Year Ended 31 March 2024 ACCOUNTING POLICIES - continued Expendlture Expenditure on raising funds includes the costs of all fundraising activities, events and non-charitable trading activities. Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further ils charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the Charity apportioned to charitable activities. Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable a¢tivilies. Allo¢atlon and apportlonment of costs Direct costs attributable to a single activity are allocated directly to that activily. For r8Stricled projects, expenditure is the total of all invoiced costs plus all recorded staff hours spent on the project or activity. A charge lo cover support costs and overheads is included in project costs based a percentage uplift which is appropriate lo the type of project undertaken, in line with the terms of the grant agreements. With regards to the charge to cover support costs and overheads this is sel as 820/0 for the EV project and 620/0 for all other restricted funds. Income is the donated income specified for each project, received in the year. The Molability Foundation grant, for the provision of the Wizzybug Loan Scheme, allows for an allocation of these funds to 'an appropriate proportion of organisational overheads and support costs, in line with Wizzybug Loan Scherne activity as a proportion of overall Designability activity., The percentage split has been reviewed and is now set at 62 % 38 % split between Wizzybug Loan Scheme restrict8d and core costs funding respectively. Tanglble flxed assets Depreciation is provided at the following annual rates in order to write off each asset over ils estimated useful life. Long leasehold Plant and machinery Fixtures and fittings Computer equipment in accordance with the property Straight line over 3 years Straight line over 10 years straight line over 3 years Wizzybug refers lo our fleet of Wizzybugs in use or available for the loan scheme. Wizzybugs are capitalised at cost of parts and direct labour. Each unit is depreciated over a three 37 designabjlity year period. Parts not yet used and Wizzybug built for sale but not yet despatched are included in StOGks. Intanglble flxed assets Intangible assets will be capitalised at cost if it is probable they will generate expected future economic benefits and the cost can be reliably measured. Where assets are capitalised, they will be depreciated on the basis of the remaining useful economic life. Where these criteria are not mel, we will expense costs in the year incurred. Stocks Stock is measured at th8 lower of cost and estimated selling price less costs lo complete and sell. after making allowance for obsolete and slow moving items. 38 designabjlity Designability Charity Limited Notes to the Financial Statemenls- continued for the Year Ended 31 March 2024 ACCOUNTING PQLICIES . ¢ontlnued Taxation The charity is exempl from corporation lax on its charitable activities. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Designated funds are unrestricted funds earmarked by the Trustees to further any of the Charity's purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial slatemenls, note 20. Transfers Transfers between unrestricted funds and restricted funds are made where the income for the project is exceeded by the costs incurred on the project, where a match funding requirement might need lo be met from another reserve or where it has been agreed with the funder to use unspent balances at the end of a project on activities with a similar objective. Hlre purchase and leaslng commitments Rentals paid under operating leases are charged lo the Statement of Financial Activities on a straight line basis over the period of the lease. Pension costs Designability participates in two defined benefit pension schemes and one defined contribution scheme. The costs of contributions are recognised in the year they are paid. See note 11 for further detail on these schemes. Debtors and prepayments Trade and other debtors are recognised at the settlement amount due after any trade discounts. Prepayments are valued at the amount prepaid nel of any discounts. 39 designability 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 paty and the amount to settle the obligation can be measLtred or estimated reliably. Cash and cash equivalenls 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. 40 designability Designability Charity Limited Notes to the Financial Staternents- continued for the Year Ended 31 March 2024 ACCOUNTING POLICIES - continued Limitation by guarantee The Company is limited by Guarantee and as such has no share capital. Under the Constitution, each Trustee of Designability is liable to contribute £10 in the event of winding up. Charitable Status The Company is a registered charity {no 256335). General Information The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is the Wolfson Centre, Royal United Hospital, Bath, BA13NG. The charity constitutes a public benefit entity. Reserves Pollcy The purpose of Designability's Reserves Policy is to ensure the stability of the charity, programmes and ongoing operations of the organisation and to provide a source of internal funds for organisalional priorities. The Reserves Policy will be implemented in concert with Designability's other governance and financial policies and is intended to support the goals and strategies contained in these relat8d policies and in strategic and operational plans. This policy includes details of all Funds in order to provide a complete picture of Designability's balance sheet. The total net assets of Designability are represented by Funds, including Restricted funds and Unrestricted funds. Restricted Funds Restricted Funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal. Unrestrl¢ted Funds The Board of Trustees has designated certain Unrestricted Funds into Board- Designated Reserves. 41 designability Designated Operating Reserve The Operating Reserve is inlended to provide an inlernal source of funds for situations suGh as a sudden increase in expenses, one-time unbudgeted expenses, unanticipated loss in funding, or uninsured losses. Operating Reserves are not intended to replace a permanent loss of funds or eliminate an ongoing budget gap. It is the intention of Designability that Operating Reserves are lo be used and replenished within a reasonably short period of time. The Operating Reserve Fund is defined as a designated fund sel aside by action of the Board of Trustees. The minimum amount to b8 d8signaled as Operating Reserve will be established as an amount sufficient to maintain ongoing operations and programmes measured for a set period of time, measured in months. The Operating Reserve serves a dynamic role and will be reviewed and adjusted in response to both internal and external changes. The target minimum Operating Reserve Fund is equal to six months of average operating costs. The calculation of average monthly operating costs includes all recurring, predictable expenses such as salaries, benefits, office costs, travel and ongoing professional services. The calculation excludes one-off or unusual, capital purposes. 42 designability Designability Charity Limited Notes to the Financial Slaternents- continued lor the Year Ended 31 March 2024 ACCOUNTING POLICIES - continued The amount of the Operating Reserve Fund target minimum will be calculated each year after approval of the annual budget, reported to the Finance CommitleelBoard of Trustees, and included in the regular financial reports. Deslgnated Innovatlon and Development Reserve An Innovation and Development Reserve is held to provide funding for worthwhile and impactful projects which may not be funded from other sources or in the initial stages of project scoping. In addition, the fund may be used for key internal strategic development projects, which look to support and ensure long term sustainability of the charity. Systems and IT Reserve The Systems and IT Development Reserve is in place to allow for review of our systems and investment in our IT infrastructure, databases and software lo enhance our processes and build a solid internal platform for growth. General Reserve The General Reserve consists of the balance of any unrestricted funds that are not designated in the Operating Reserve or the Innovation and Development Reserve. Refurbishment Reserve The Refurbishment Reserve consists of funds donated specifically for Designabilily lo spend on buildings, in particular the refurbishment of ils offices with the premises at the Royal United Hospital Bath. Fundlng of Resenies The Operating Reserve will be funded with surplus unrestricted operating funds. The Board of Trustees may from lime to time direct that a specific source of revenue be set aside for Operating Reserves. Examples could include one-off gifts or bequests, special grants or special appeals. The Innovation and Development Reserve and Systems and IT Reserve will be funded with occasional special designations made by the Board of Trustees. The General Reserve comprises any remaining balance of reserves. 43 designability Designability Charity Limited Notes to the Financial Stalemenls- continued for the Year Ended 31 March 2024 DONATIONS AND LEGACIES 31.3.24 31.3.23 Donations 1,664,563 2.034,142 During the year. gifts in kind were received relating lo r8cruilment of employees 8nd legal advice. OTHER TRADING ACTIVITIES 31.3.24 31.3.23 Consultancy and Other Income 6,716 6,473 INVESTMENT INCOME 31.3.24 31.3.23 Investment Income 33,868 20,209 INCOME FROM CHARITABLE ACTIVITIES 31.3.24 31.3.23 Activity Charitable Activities Charitable Activities Charitable Activities Product Sales Royalties Grants 113,661 8,160 103,831 427,183 25,220 29,107 225,652 481,510 All grant income was received for our participation in the National Centre for Accessible Transport Incall for this year and last year. RAISING DONATIONS AND LEGACIES 31.3.24 31.3.23 Staff costs Sundries 120,972 31,428 98,555 11,833 152,400 110,388 44 designabjlity Designability Charity Limited Notes to the Financial Staternents- continued for the Year Ended 31 March 2024 CHARITABLE ACTIVITIES COSTS Direct Costs Charitable Activities 1,736,342 SUPPORT COSTS Governance costs Finance Other Totals Other resources expended 407 323,544 25,360 349,311 NET INCOMEIIEXPENDITURE} N8t incomellexpenditur81 is staled after chargingllcr8dilingl.. 31.3.24 31.3.23 Auditors, remuneration Depreciation owned assets Other operating leases Surplus on disposal of fixed as581s 6,800 58,025 7,370 8.250 85,408 6.109 1871 10. TRUSTEES, REMUNERATION AND BENEFITS There were no Iruslees. remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. Trustees. expenses During the year, one trustee received £39712023,. £184} for travel expenses. 11. STAFF COSTS 31.3.24 31.3.23 Wages and salaries Social security costs Other pension costs 1,193,889 1,056.592 117,465 105.463 208,945 190,193 1.520,299 1,352,248 45 desjgnabjlity Key Management Personnel Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the Charity. The total compensation paid to key management personnel for 5 members of staff12023- 5 members of staff) for services provided to the Charity was £344,05912023- £329,756). 46 designability Designability Charity Limited Notes to the Financial Stalemenls- conlinued for Ihe Year Ended 31 March 2024 11. STAFF COSTS - continued Designabilily participates in three contributory pension plans two of which provide d8fined ben8fits based on final pensionablè pay and one of which is defined contribution based. The schemes are as follows.. Local Government Pension Scheme. The assets of the scheme are held separately from those of thé Charity. The Charity doès not have separate employee registration and is registered as part of the University of Bath for the purpose of the scheme. Accordingly, il is not possiblé to separately identify the assets and liabilities relating to the Charity for the purpose of Financial Accounting Reporting Standard 102 IFRS 102} disclosure and accordingly any FRS 102 surplus or deficit allributable to the Charity is not shown on th8 Balance Sheet. This scheme is now closed lo new members. Staff already in this pension scheme continue lo be members for contributions and benefits purposes. Universltias Superannuatlon Scheme. This is a mutual scheme and again, the assets and li8bililies cannot be allribulable lo an employer and any surplus or deficit allributable to th8 Charity is not recognised on the Balance Sheet. University of Bath Group Pension Plan Any new staff members who joined on or after 1 st June 2021 are eligible to join the Univ6rsily of Bath Group Pension Plan. Thi5 is a defined contribution schemé and is administered by Aviva. As with the other universities scheme, this is a mutual scheme and any surplus or defi¢il altribulable to the Charity is not re¢ognisèd on the balance sheet. The schemes are therefore treated as defined contribution schemes in these financial statements are permitted by FRS 102. The average monthly number of employees during the year was as follows.. 31.3.24 31.3.23 Management Fundraising and Comms Design and Innovation Finance and Operations Programmes 12 14 33 31 47 designabjlity Designability Charity Limited Notes to the Financial Stalements- continued for the Year Ended 31 March 2024 11. STAFF COSTS - continued The number of employees whose employee benefits {excluding employer pension costs) exceeded £60,000 was.. 31.3.24 31.3.23 £60,001- £70,000 £80,001- £90,000 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unreslricled Restricted funds funds Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 604,633 1,429,509 2,034.142 Charltable actlvlties Charitable Activities 450,018 31,492 481,510 Other trading activities Investment income 6,424 20,209 49 6,473 20,209 Total 1,081,284 1,461,050 2,542,334 EXPENDITURE ON Ralslng funds Raising donations and legacies 109,776 612 110,388 109,776 612 110,388 Charitable activities Charitable Activities 377,908 1,409,425 1,787,333 Other 162,709 132,964 295,673 Total 650,393 1,543.001 2.193,394 48 designabjlity Net gainsl{lossesl on investments 127,1051 127,105) NET INCOMEI(EXPENDITURE) Transfers betW88n funds 403,786 181,951) 321,835 (119,1541 119,154 Net movement In funds 284,632 37,203 321,835 49 designabjlity Designability Charity Limited Notes to the Financial Statements- continued for the Year Ended 31 March 2024 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted Restricted funds funds Total funds RECONCILIATION OF FUNDS Total funds brought forward 1,421,876 638,627 2,060,503 TOTAL FUNDS CARRIED FORWARD 1,706,508 675,830 2,382,338 13. TANGIBLE FIXED ASSETS Fixtures and Long Plant and leasehold machinery Totals Computer fittings equipment COST At 1 April 2023 Additions Disposals 194,041 848,000 18,000 132,0001 22,103 63,976 1,128,120 18,000 (41,878) 173,8781 At 31 March 2024 194.041 834,000 22,103 22,098 1,072,242 DEPRECIATION At 1 April 2023 Charge for year Eliminated on disposal 81,032 28,253 820,442 23,335 132,000} 17,088 1,961 53,157 971,719 4,476 58,025 (41,8781 {73,878) At 31 March 2024 109,285 811,777 19,049 15,755 955,866 NET BOOK VALUE At 31 March 2024 84,756 22,223 3,054 6,343 116,376 At 31 March 2023 113,009 27,558 5,015 10,819 156,401 so designability Designability Charity Limited Notes to the Financial Statements- continued for the Year Ended 31 March 2024 14. FIXED ASSET INVESTMENTS Listed investments MARKET VALUE At 1 April 2023 Additions Disposals Revaluations 588,319 280,410 1130,4101 44,040 At 31 March 2024 782,359 NET BOOK VALUE At 31 March 2024 782,359 At 31 March 2023 588,319 There were no inv8slmenl assets outside the UK. The material holdings in each investment at year end are as follows.. 2024 /0 of Investment 2023 11/0 of investment Fund COIF Charities Investment fund Invesco Corp Bond M&G Strategic Corp Bond Total 120/, O'/0 1000/0 100.1. Cost or valuation at 31 March 2024 is represented by.. Listed investments Valuation in 2024 782,359 51 designabjlity Designability Charity Limited Notes to the Financial Staternents- continued for the Year Ended 31 March 2024 15. STOCKS 31.3.24 31.3.23 Wizzybug parts 259,756 176,116 16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Trade debtors Other debtors VAT Prepayments and accrued income 582 1,316 75,990 2,753 14,988 118.280 120,716 122,614 212,011 DEBTORS.. AMOUNTS FALLING DUE OVER ONE YEAR 31.3.24 31.3.23 Accrued Income 33,000 36,000 17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Trade creditors VAT Other creditors Accruals and deferred income 155.299 10,291 3,077 65,982 144,952 3,237 81,139 234,649 229,328 18. LEASING AGREEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows.. 31.3.24 31.3.23 52 designabjlity Within one year Between one and five years In more than five years 55,863 107,585 274,850 55,863 157,318 280,980 438,298 494,161 53 designabjlity Designability Charity Limited Notes to the Financial Statements- continued for the Year Ended 31 March 2024 18. LEASING AGREEMENTS - continued A lease of Ihe property at the Wolfson Centfe was entered into on 26 May 1995 and renegotiated on 23 April 2013. By the terms of the lease, the annual rent was reviewed and agreed at £5.330 {excluding VAT}. The lease expires on 28 September 2067. There were no Gapital Gosls to the Charity. Two leases were entered into on 2 December 2019 for 2 units (Units 1&2, Wells Road, Bath, BA2 3API, which operate as the workshop, design and innovation space and additional offices. The lease expiry on these agreements is February 2026. 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS 31.3.24 Total funds 31.3.23 Total funds Unrestricted R8slricled funds funds Fixed assets Investments Current assets Current liabilities 116,376 782.359 859,205 {234.6491 116,376 156,401 782,359 588,319 595,834 1,455,039 1,866,946 {234,6491 (229,328) 1,523,291 595,834 2,119,125 2,382,338 54 designabjlity Designability Charity Limited Notes to Ihe Financial Statements- continued for the Year Ended 31 March 2024 20. MOVEMENT IN FUNDS Net movement At Transfers between At 1.4.23 in funds funds 31.3.24 Unrestricted funds General Reserve Operating Reserve Innovation and Development Reserve Systems and IT Reserve 248,961 1,107,547 300,000 79,961 1236,9311 91,991 1191,6661 915,881 97,419 397,419 50,000 68,000 118,000 1,706,508 79,961 (263,1781 1,523,291 Restrlcted funds Wizzybug Loan Scheme Wizzybug Loan Scheme Access Fund Wizzybug Redesign Refurbishment Reserve Ac¢essibl8 EV Charging Accessible Pushchair New Motors for Wizzybug Website redesign ncal Accessible Vehicle Design Workshop Running Costs 414,617 (258,6731 10,769 3,515 41.078 197,022 14,284 96,433 119,403 128,6841 44,277 169,5661 38,609 47,195 1179,7761 132,581 39,569 129,6821 45,000 (6.0411 6,041 131 {1311 99,169 30,000 96,433 90,719 13,320 54,887 99,169 30,000 675,830 1343,1741 263,178 595,834 TOTAL FUNDS 2,382,338 1263,2131 2,119,125 55 designability Designability Charity Limited Notes lo the Financial Staternents- continued for the Year Ended 31 March 2024 20. MOVEMENT IN FUNDS - continued Net movement in funds, included in the above are as follows.. Incoming Resources Movement resources expended Gains and losses in funds Unrestricted funds Gener81 Reserve 761,808 {725,8871 44,040 79,961 Restricted funds Wizzybug Loan Scheme Wizzybug Loan Scheme Access Fund Wizzybug Redesign Refurbishment Reserve Accessible EV Charging Accessible Pushchair New Motors for Wizzybug Website redesign ncal Accessible Vehicle Design Workshop Running Costs 654,202 (912,8751 15,584 (12,0691 (258.6731 3,515 140,000 {43,S671 (28,6841 (69,5661 6,175 (185,9511 1,200 (30,8821 (6,0411 103,831 (103,7001 203,000 (103,8311 45,000 115,000) 96,433 {28,6841 {69.5661 {179,7761 {29,6821 (6,0411 131 99,169 30,000 1,168,992 11,512,166) {343,1741 TOTAL FUNDS 1,930,800 {2,238,0531 44,040 {263,2131 56 designability De5ignabilily Charity Limited Notes to the Financial Staternents- continued lor the Year Ended 31 March 2024 20. MOVEMENT IN FUNDS - continued Comparatives for movement in funds Net movement At Transfers between At 1.4.22 in funds funds 31.3.23 Unrestrlcted funds General Reserve Operating Reserve Innovation and Developmenl Reserve Systems and IT ReseNe 129,374 1,043,502 199,000 403,786 (284,199} 248,961 64,045 1,107,547 101,000 300,000 50,000 50,000 1,421,876 403,786 {119,1541 1,706,508 Restrl¢ted funds Wizzybug Loan Scheme Wizzybug Loan Scheme Access Fund Refurbishment Reserve Accessible EV Charging Accessible Pushchair New Motors for Wizzybug Website redesign ncat 369,560 9,657 45,057 1,112 414,617 10,769 156,823 102,587 (37,4201 158,3101 152,8051 100,000 39,569 118,4841 1670) 119,403 44,277 47,195 39,569 18,484 670 638,627 181.951) 119,154 675,830 TOTAL FUNDS 2,060,503 321,835 2,382,338 57 designability Designability Charity Limited Notes to the Financial Statements- continued for the Year Ended 31 March 2024 20. MOVEMENT IN FUNDS - continued Comparative net movem8nt in funds, included in the above are as follows.. Incoming Resourcés Movement resources expended Gains and losses in funds Unrestrlcted funds General Reserve 1,081,284 1650,393) {27,1051 403,786 Restrlcted funds Wizzybug Loan Scheme Wizzybug Loan Scheme Access Fund Refurbishment Reserve Accessible EV Charging Accessible Pushchair New Motors for Wizzybug Website redesign ncat 968,856 {923,799} 5,000 13,8881 45,057 1,112 {37,420} 287,086 (345,3961 106,001 {158,8061 55,000 (15,4311 10,000 (28,4841 29,107 (29.7771 137,420} 158,310) 152,805} 39,569 118,484) (670) 1,461,050 {1,543,0011 181,951) TOTAL FUNDS 2,542,334 {2,193,3941 (27,1051 321,835 A brief description of each of the restrict8d funds is set out below: Wizzybug Loan Scheme - to provide powered wheelchairs, Wizzybugs, to young disabled children throughout the UK, at no cost. The fund covers the cost of production of Wizzybug units as w811 as all clinical activities and work to raise awareness of and administer the loan scheme. Wizzybug Access Fund to provide financial support where needed with travel and accornmodation costs incurred by families in order to attend their Wizzybug handover appointments. Refurbishment Reserve - the reserve was established to fund the refurbishment of part of our RUH property. The project is completed and all costs have been incurred but were capitalised over a 5 year period. The remaining amount in the fund is lo cover depreciation costs for the remainder of the 5 year period. Accessible EV Char9ing the remainder of this fund is dedicated to dissemination of our work on this project and outreach to increase uptake of the design guidance 58 designability and some residual costs around the dedicated design guidance website. Accessible Pushchair- to support our ongoing work to create a wheelchair- attachable pushchair lo allow parents who are manual wheelchair users the opportunity to take their babies and young children out independently. New Motors for Wizzybug - funding received to support the replacement of motors in Wizzybug to increase speed and usability. Website redesign funding received to support the redesign of the Designability website, including a dedicated area for families on the Wizzybug Loan Scheme. ncat relates to Ihe funding received for Designability's role as a consortium member of National Centre for Accessible Transport {ncatl, established in 2023. -Accessible Vehicle Design funding received from Motability Foundation to support the first phase of a slLJdy into the accessibility of vehicle design for disabled people. 59 designabjlity Designability Charity Limited Notes to the Financial Slatements- continued for Ihe Year Ended 31 March 2024 20. MOVEMENT IN FUNDS - Contlnued -workshop running costs this relates to a multi-year grant received to fund a proportion of the operating costs for our workshop space. Details on each of the unrestricted funds can be found in Note 1 accounting policies and the Trustees Report. The Operating Reserve has decreased from prior year following a review of our R8S8rves Policy. The Innovation and Development Reserve has increased lo reflect the additional funds budgeted for the following financial year as we move into the next stage of our Accessible Pushchair project and we plan investment in internal projects around income generalion and impacl. The Systems and IT Development Reserve has increased to reflect our ongoing investment in such projects, including a stock management system and ongoing improvements to our IT infrastructure. 21. RELATED PARTY DISCLOSURES For administrative purposes Designabilily's staff payroll is processed through the University of Bath. Salary costs are invoiced by the University lo Designability. Ther8 are 3 trustees12023'. 31 who work for the University but have no control or influence over the areas relating lo these administrative functions. There is 1 {2023.' 11 IrLJStee who is a non-executive director of the Royal United Hospital IRUH). Designability has a long term lease with the RUH with terms set until 2067. This agreement was made prior to appointment in the role. Trustees and Officers. liability Insurance The Charity has effected Trustees, and Officers, Liability Insurance cover. 60