ACTION ON SMOKING AND HEALTH (A company limited by guarantee and not having a share capital) Company No. 00998971 Charity No. 262067 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
CONTENTS Trustees, Report and Charity Infoation Pages1 11 Independent Examiner's R8POrt Pages 12 Slalement of financial activities Page 13 Balance sheet Page 14 Cash flow slalement Page 15 Notes lo the accounts Pages 16
Action on Smoking and Health Report of the Trustees 31°, March 2021 The Trustees are pleased to present their rep( and the financial stslernenls of the charily for the year ended 31 Sl March 2021. Legal & Administrative Details Legal Status Action on Smoking and Health l-ASH-) is registered in England a$ company number 00998971 and as charity number 262067. Reglstered Offlce Unit 2.9. The Foundry. 17 Oval Way. London SE115RR. Webslt• www.ash.or .uk Dlrectors & Trustees The Directors of the charitable company are its Trustees for the purposes of charity law and throughout this report are referred lo as the Trustees. The following Trustees (Honorary Officers as indic81edl were in office at the 3181 March 20218nd had served throughout the year. except where shown.. Dr Sanjay Agrawal Dr Somen Banerjee Professor John Britton Professor Paul 8urslow Dr Noel 88Xter Alison Cox G8ml8n D8vidge Kale Harrison Dr Nick Hopkinson Jonathan McShan8 Dr Debbie Robson Dr Helen Walters Resigned 14th December 2020 Vice-chair Resigned 26th March 2021 TreaSur Chair Senior Staff The senior member of staff to whom day to day management of the charity is delegated by the Trustees is the Chief ExecutlV8, Deborah Arnott. The Company Secretary is the Business Manager, Philip Rimmer. Independent Exarningr Neil Finlayson, Moore Kingston Smith LLP. Devonshire House, 60 Goswell Road. London. EC1 M 7AD. Principal Bankgrs Barclays Bank plc, Leicesler, LE87 2BB. Structure, Governance & Management ASH was founded in 1971 by the Royal College of Physiaans and is a company limited by guarantee without Sha capit21. Its goveming do(xJment is its Artides of Association. The Trustees fomi the Board of Management of the charity. For the purposes of the Companies Act 2006 as the Direclors of ASH they are also Members of the Advisory Council. The Trustees are elected by the other Members of the Advisory Council. who are also the members of the Company, al the Annual General Meeting. Not more than one third of the Trustees are required lo retire al each Annual General Meeting. Retiring Trustees are eligible for re-election.
Action on Smoking and Health Report of the Trustees 31°, March 2021 The Chief Executive of ASH, a paid member of staff. is responsible for the day to day running of the organis8tion and is responsible to the Board of Management which usually meets four times a year and is responsible for setting Ihe slralegic objectives. So as lo main18in a pool of skilled potentl81 Trustees. new Advisory Council Members are regu18dy sought by the Board of Management, particulady from within the health. public health, public relations and political spheres. As new Trustees are recruited from the membership of the Advisory Council they tend lo be grounded in the w)licies, working praelices and procedures of the Board. During the year the Trustees conducted a thorough review of its policies on recruiting new Advisory Council Members as well as Trustees. They also agreed a new process for electing Honorary Officers. All new Trustees are advised of their responsibilities by the Chair and the Business Manager. In addition they receive an induction pack containing Board policies and advice booklets from the Charity Commission. The training needs of the Trustees are examined and acted upon as part of the regular review of risks. Remuneratlon Pollcy The governing principles of the Charity's remuneration policy are as follows.. 1. to ensure delivery of the Charily s objeclives.. 2. to attract and relain a molivaled workforce with the skills and expertise necessary for organisational effectiveness., 3. that remuneration should be equitable and coherent across the organisation., 4. to take account of the purposes, aims and values of Ihe Charity; 5. to ensure that pay levels and pay increases are appropriate in the context ol the interests of our beneficiaries. Sonlor Ex•¢utlvo Remuneration In relation to deciding remuneration for the Charity's Chief Executive, the Charity considers the potential impact of remuneration levels and structures of senior executives on the wider Charity workforce and wll lake account of the following additional principles.. 1. to ensure that the Charity can access the types of skills. experiences and competencies that il needs in its senior staff, the specrfic scope of these roles in the Charity and the link to pay., 2. the nature of the wider employment offer made to senior employees, where pay is one part of a package that includes personal development, personal fuifilmenl and association with the public benefit delivered. The Charity recognises Ihal it is, on occasion, possible to 8ttracl senior executives at a discount to public sector or private sector market rates. In line with the recommendations of the NCVO Inquiry into Executive Remuneration published in April 2014, the Charity has decided to disclose the remuneralion of Ihe Chief Executive (see note 4 on page 201. Related Partie$ and Partner Organisations None. Stat¢mont of Ri$k The Trustees have examined the major risks to which the Charity is exposed and confim that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks. Detailed consideration of risks is delegated lo the Business Manager, who acts as Risk Manager and reports to the Board. Risks are identified,
Action on Smoking and Health Report of the Trustees 31°, March 2021 assessed and controls established throughout the year with a comprehensive review taking place al a minimum every 3 years. most recendy in January to March 2020. The following risks have been assessed as being significant-. Risk: Disruption through fire. flood. theft. terrorism or a major public health issue. As with any small organisation based on a single site, any of these would cause severe disruption to our work. Unfortunately, we are now experiencing this due to COVID-19. Mitigation: Adequate levels of insurance, reviewed annually by our broker and whenever major additions are made to assets. Maintenance of adequate office security and control of access to keys lo only ASH staff, cleaning contractor and building supervisor. Storage, off-site. of a weekly back-up of key data held on computers. Website hosted off-site with contractors holding a back-up al a third sile. Ability and willingness of key staff to do some work from home. Th8 Business Manager maintains a plan fc what happens in the weeks after serious disruption, the infomialion which needs lo be stored off-site with staff for instant access and other arrangements. ASH staff have been set up for working from home since March 2020. All staff take part in a video meeting on a daily basis and the Senior Management Team are holding remote meetings regularly. Workplans have been revised in the light of what is safe, practical and possible during lockdown and changes lo this announced by the Govemmenl over lime. Rlsk: Failure by one of our key funders to agree annual funding, or agreeing to much lower funding, from March 2021 onwards. Mltlgatlon: The Charity's reserves policy, which is reviewed on an annual basis: maintaining our low level of overheads, employing a small core staff whilsl using specialisl consultants when appropriate. The Chief Executive and other key staff will continue to devote considerable effort lo maintaining good relations with key decision makers, with a particular focus on maintaining the high priority that our work has. We will continue to demonstrate. through ongoing evaluation of our work, monitoring, regular updates and contsct, that ASH activities continue to be both dynarnic and effective at delivering the support that our funders require. Rlsk: Changes in Government policies, funding fc poliaes or attitudes. The serious undemiining of ASH'S work or Government actions which impact on the work we need lo do. Including.. the possibility of radical shrfts in Government policy after a General Election,. funding cuts to Government work on tobacco control policies- and the ongoing and rapidly moving situation with regards to Government funding of it5 response to COVID-19. Mitigation: ASH has worked well in the past with Conservative, Labour and Coalition adminislralions. Key ASH staff with work to maintain good and friendly relations with key political and civil service decision makers and th relevant individuals in all polrtiC81 parties. Networking to ensure Smokefree Action Coalition {SFACI members continue to support tobacco control policies. The next comprehensive review of risk is due to take place during the third quarter of 2021-22. Objectives As stated in its Articles of Association, the objectives of the Charity are.. 1. to preserve and protect the health of the public against the haful effects of cigarette or other tobacco products., and 2. to advance the education of the public about the effects of cigarette and other tobacco and nicotine products.
Action on Smoking and Health Report of the Trustees 31°, March 2021 The Trustees have complied with the duty in Section 17 of the Charities Acl 2011 to have due regard to the public benefit guidance published by the Charity Commission. Activity & Impact Report As an integral part of the strategic planning review for 2017-20. the Trustees agreed a series of success indicators for each of four strategic priorities, measuring our impact as an organisation. These relate lo outcomes as well as outputs whilst recognising that ASH plays a role but is not solely responsible when it comes to successful outcomes. The four strategic priorities are.. 1. Defend existing tobacco control measures and resources. 2. Advance the introduction of new tobacco control measures and resources. 3. Support specific measures aimed at reducing smoking rates among the poorest and most vulnerable groups in society. 4. Harm reduction- advocate for a regulatory regime for tobacco and nicotine replacement products based on the best evidence of ham they cause. As a result of a review of our approach to strategic planning, and bearing in mind the emerging situation in relation to COVID-19, the Trustees decided al their meeting in March 2020 that the 2017-20 strategic plan would be extended to the end of March 2021. Towards the end of the 2020-21 financial year a new. comprehensive strategic plan for 2021-24 was developed. The results of this this can be seen under the section 'Plans for Future Periods" Throughout the course of 2020-21 there were two big threats lo our ability lo deliver on our strategy and work programme.. COVID-19 and the Government's decision lo reorganise public health and dissolve Public Health England, with no clarity about what would happen to health improvement. Both of these risked undemiining tobacco control and halting or limiting progress towards the Smokefre8 2030 ambition. We twk a twTrpronged approach.. 1. Operations: we constantly check and test our work programme as the pandemic evolvès, to ensure we are maximising the impact of our delivery lo key stakeholders, such as government, (national and locall, the NHS and the third sector. 2. Strategy: we scanned the rapidly changing political, economic, social and technological environment for opportunities to mitigate risks lo our ability lo deliver on our strategic priorities. Given the seriousness of the threat to tobacco control posed by Ihe reorganisalion of public health we made an early decision after the Govemment announcement in August that we had to engage in the process. ASH networking and coalition building aetivity ASH is a small organisation and enhance our effectiveness by netsvorking and coalition building. In particular ASH has Continued to Ordinate and lead the Smi)kefree Action Coalition ISFAC}, an active national coalition on tobacco control issues, Inteening as and when necessary on tobacco control issues both to support existing policies and, as appropriate, advocate for new ones. Currently, the SFAC has around 350 members from a wide range of professional health bodies, academic co118bor8tions, national and local charities, local authorities and NHS organisations. 1. Defend existing tobacco control measures and resour¢e$ to ensure that public health 1$ a priority area for government and decision makers, that smoking prevalence and smoking uptake by children and young people continue to fall.
Action on Smoking and Health Report of the Trustees 31°, March 2021 Tobacco tax policy ASH continues to make submissions to HM Treasury on tobacco lax policy in collaboration with the SPECTRUM academic research consortium. Although the 2020 Autumn Budget was cancelled the Govemment uprated tobacco duties in line wth the tobacco esralator of 20/0 above inflation, saying that this would "continue the drive to reduce smoking prevalence. and support the Government's largel for a smoke-free England by 2030." Furthermore, in order to narrow the gap between hand- rolling tobacco IHRTI and cigarette duty rates and ensure the Minimum Excise Tax {MET} continues lo be effective in the current mar1(et. the tax on HRT was increased by inflation plus 6¥0 and the MET by inflation + 4tl/•. Impact of COVID-19 on provlslon of stop smoklng seNlces by the NHS and Local Authorities Ensuring effective implementation of the tobacco dependence treatment provisions of the prevention strand of the NHS Long Temi Plan has been an even greater challenge in the light of COVID-19, with face to face treatment in the community being halted and significant pressures on the NHS. Yet al the same time there is evidence that smokers appear more engaged in quitting at this lime. with success rates among those who try highest recorded according to UCL Smoking Toolkit Study. In April 2020 ASH launched a campaign to engage smokers in quitting. and use slop smoking services, just following the first lockdown. This campaign evolved significantly with additional funding from the Department for Health and SO¢?1 Care {DHSCI lo extend the reach with dis8dv8nl8ged smokers. The campaign had tsvo prongs.. QuitForCovid'. A communications campaign that engaged l¢xal and national partners in communications activity, using social and "eamed" media lo extend ils impact. Today Is the Day.. A DHSC funded 4 week marketing campaign on local radio and digital media in July 2020. This targeted 14 local authorities wlh the highest rates of smoking in order to engage disadvantsged smokers. The Today Is the Day campaign was delivered by ASH, with support from Breathe 2025, Fresh, the Greater M8nchesler Health and Social Care Partnership and Public Health England IPHEI Marketing. The campaign demonstrated value for money both directly and indirectly. Directly, by overdelivering on the KPIS for the paid for advertising which was the heart of the carnpaign. Indirectly through the successful promotion of the campaign through the media and widespread engagement of local aulhorilies. There was extensive media coverage of the campaign, which was associated with a significant spike in numbers accessing the NHS smokefree website at the time of the launch. In light of COVIO-19, ASH conducted 8 rapid survey of local authorities in late April to understand how they have adapted their stop smoking service offers to the conslrainls of lockdown. Responses were received from 112 local authorities and illuslraled that they have rapidly adapted lo the ¢ir¢umstances, with 96¥0 delivering a stop smoking Servi wth trained advisors to some or all local smokers. 880/4 of local authorities reported providing Nicotine Replacement Therapy, medications or e-cigarettes to smokers during the lockdown. The survey responses were used to identify innovative best practice in response to COVID-19. The case studies We published in a joint document with PHE. and via the ASH webinar series. The 2020 ASH survey of local tobacco control leads focused on the impacts of COVID-19 on practice and local authority responses to the impact of the closure of PHE through questions on sks and opportunities. The survey went into the field at the beginning of August and despite Ihe
Action on Smoking and Health Report of the Trustees 31°, March 2021 pressures of COVID-19 achieved a 74% response rate. In summary the survey report paints an impressive picture of a sector which has met the challenge of the pandemic and sought to make the best of a difficult time by forging new partnerships and ways lo deliver. ASH will seek to build on the findings with partners in the coming year. 2. Advance the introduction of new tobacco control measures and resources that are both progressive, to continue to redute smoklng by people who have not been persuaded to qult by previous measures. and synergistic. so thal policies combine together to produce the greatest impact on smoking rates. Tobacco Control Plan to deliver a Smokefree 2030 Securing a government commitment to develop a new Tobacco Control Plan to deliver the Smokefree ambition was a key campaign objective for ASH. A commitment lo publish a new Plan in 2021 was secured in December 2020 in a response by the Public Health Minister to a padiamenlary question by Bob Blackman MP, Chairman of the APPG on Smoking and Health. When she spoke 81 the launch of the ASH report on smoking in pregnancy on 10th Febwary 2021, the Public Health Minister reiterated this c(fftmilmenl. ASH has continued to monitor and report through ils annual oplnlon Surveys whlch demonstrate majority and growing support for government action to tackle smoking. YouGov survey results show the policy measures proposed in ASH'S response lo the Prevention Green Paper consultation, endorsed by other health organisalions in Ihe Roadmap to a Smokefree 2030, have majority public support. The proportion of respondents who think the govemment could do more to limit smoking has grown subslanlially over lime from 29Yo in 2009, when the question was first asked, to 39Vo in 2017 and al the lime of our most recent survey in 2021 had risen to 4S°A. The proportion of respondents who think that the government is doing loo much has fallen from 20°A in 2009 10 11°/o in 2017 and 5°/0 in 2021. Specrfically, in 2021 there is support for the following policy measures among adults in England.. The Govemmenl has sel a largel to end smoking by 2030. This will mean fewer than 5.10 of people smoking.. supported by 76°A wth only 7Yo opposing. Requiring businesses lo have a valid licence to sell tobacco which Can be removed rf they are caught more than once selling to underage smokers.. supported by 84Q/¢ with only 40/0 opposing. All smokers slaying in hospital should be offered support and medication to help them not to smoke.. supported by 78 /0, Wth only 6¥0 opposing. Requiring tobacco manufacturers to pay a levy to Government for measures to help smokers quil and prevent young people from taking up smoking= supported by 770/0 with only 6°/0 OPFX)sing. l Governrnenl health policy should be protected fr(Mn the infiuence of the tobacco industry and ils representatives.. supported by 73DA with only 3DA opposing. Require cigarette packs lo include inserts with Govemment infomiation about quilling.. supported by 71 % with only Tyo opposing. Smoking should be banned in all cars.. supported by 67% with only 15 /0 opposing. Raise the age of sale from 18 10 21 for tobacco- supported by 63.10 with only 15 /. opposing. These dala are taken frorn our annual survey of public opinion which has been carried oul since 2007 by YouGov plc. Total sample size was 10.211 adults. Fieldwork was undertaken
Action on Smoking and Health Report of the Trustees 31°, March 2021 between 18th February- 18th March 2021. The survey was carried out online. The figures have been weighted and are representative of all English adults {aged 18+)- ASH has prevented the tobacco Industry from Influenclng tobacco pollcy by exposlng thelr lobbying and misinforniation. ASH has worked hard lo support the UK in living up to ils obligations as a party to the WHO Framework Convention on Tobacco Control, and in particular Article 5.3 to protect its public health policy from the commercial and vested interests of the tobacco industy. In the Global Tobacco Industry Interference Index published in November 2020. the UK slipped from first to fourth in the 2019 world league table measuring government success in preventing tobacco companies from interfering in policy. ASH supported Tobacco Tactics and the STOP project al Bath University who were responsible for developing the UK section of the Tobacco Industry Interference Index, as we did last year's index. We also worked with them to pul together a policy brief with recommendations for how the UK can improve its compliance with Article 5.3 going forward which was submitted lo DHSC. The ASH website continues to be used by the tobacco control communlty. medla and decision-makers. including commissioners. as the leading site for information on tobacco control (measured by regular sur¥ey$ of users). In the 2021 independent evaluation of ASH'S work, 94.2% of respondents rated the ASH website as excellent or good191.5°A in 2017). ASH continues to be wldely reported on tobaccoqelated medla storSes ASH is contacted by the broadcast, print and digital media on a daily basis for infomialion and quotes. Over the last year ASH issued 23 national press releases and 15 regional press releases on stories covering such issues as the Quit for COVID campaign, smoking cessation and mental health, the ban on menthol flavoured cigarettes, Wortd No Tobacco Day and No Smoking Day. Al the end of March 2021, the daily summary of tobacco related news coverage, ASH Daily News, had 1,351 subscribers12020.. 1,140}. 3. Support speclflc measures almed at reduclng smoklng rates among the poorest and most vulnerable groups in society. ASH'S work contlnues to prlorltlse reduclng smokInglated health Inequalltl&$. Targeting smokers where they can be most effectively reached is core lo this strand of our work. Smoking is independently linked to every indicator of socio-econornic status. including occupation, educational attainment, housing tenure. single parenthood and unemployment. It IS also strongly linked lo mental health and wellbeing. Smoklng In Pregnancy The Smoking in Pregnancy Challenge Group continues to work constructively and effectively and is valued by both NHS England and IPHE}, whith both provide funding for elements of this workslream. Pregnant smokers are heavily concentrated in poorer more disadvantaged communrties, so this work is core to tackling inequalities. ASH distributed a range of resources and information updates about smoking in pregnancy and COVID-19 through the Smokefree Pregnancy Infomialion Network. This helped secure large sign- up for a webinar on smoking in pregnancy and COVID-19. In mid-2020 we published five postcard reSoUS providing brief infomiab'on on Ihe hamis of secondhand smoke exposure to pregnant women and young children. These were well reviewed
Action on Smoking and Health Report of the Trustees 31°, March 2021 by pregnancy services, especially regarding the capacty for services to add their own local contact infomiation. Much of the activity of the early part of 2021 went into producing a new report setting out action needed lo reduce Smoking 8t Time of Delivery ISATODI. The final report was published at 8 joint event with the All-Paty Parliamentary Group on Baby Loss in February. Mental Health ASH has continued to share updates through the Mental Health and Smoking Infomiation NeNvork including distribution of the latest research from the SCIMITAR ¢onsortium at the University of York demonslraling the cost effectiveness of delivering smoking cessation support through mental health services. An article on Mental Health. Smoking and Povety written by ASH staff. was published in the British Journal of Psychiatry. and widely distributed through the Mental Health and Smoking Infornation Network and on social media. ASH published comprehensive report on training needs of mental health nurses and psychiatrists on 16th December 2020. The report foreword was CO•aulhored by Ihe Chair of Ihe Academy of Medical Royal Colleges, President of the Royal College of Psychiatry and the President of the Royal College of Nursing. The report was launched at a joint event with Equally Well. Work now continues lo consider how to implement the findings. A key ask is for a future Tobacco Control Plan lo have a new national strategy to address gaps in training f¢y this workforce. A meeting of the Mental Health and Smoking Partnership was held al the end of February 2021 to pull together the evidence for further action to tackle smoking among people with a mental health condition in the next Tobacco Control Plan. The event was attended by officials from DHSC and PHE and a follow up report on the event was provided to them. Cochrane The Cochrane group funded ASH to support ccfflmunication of their new review of behavioural support for smoking cessation published in eady 2021. We ran a webinar, producing some short briefs and pul together a video to engage smokers in behavioural support model. We also supported Cochrane's communication of their latest frcigarette port including press work, briefing of local and national partners and social media activity. 4. Harm reduction.. advocate for a regulatory regime for tobacco and nlcotlne replacement products based on the best evldence of harni they cause and helps to maxlmlse publlc health benefits and rninimise risks. ASH opinion surveys have provided crucial evidence to policy makers on atliludes and behaviour on e-cigarelles among adults and young people in Great Britain. Data from ASH'S YouGov opinion polling shows that use of electronic cigarettes has continued to increase among adults in Great Britain. rising to 3.6 million in 2021. Amosl two thirds164.6Q/o} of current vapers are ex-smokers, this proportion has grown year on year, while the proportion of vapers who also smoke (known as dual users) has declined to 30.5.10 in 2021. Misunderstandings about the relative risks of vaping compared to tobacco smoking have increased. In 2018, at least half the population agreed that e-cigarettes were less or a lol less harmful than smoking150°k)- However, this improvement has not been sustained, and in 2021 only 42 10 agreed this was the case. The proportion of smokers who don't know how harmful e- cigarettes are compared to smoking remains high and is very similar lo Ihal of all adulls125 /0 of smokers compared to 240k for all adults in 20211-
Action on Smoking and Health Report of the Trustees 31°, March 2021 In 2021 use of e-cigarettes among young people (aged 11-181 remains largely experimental with just 1.5010 using e-cigarettes more than once 2 week l(Thip2red to 1.8410 in 20201. Vaping is much less common among young people who have never smoked. In 2021, of young people aged 11-18 who have never smoked 0.70A are current v8pers. only 0.2% vape more than On a week, and only a single never smoker reported vaping daily. Finance Investments Policy When not required. the f serveS held by the charity are held on deposit and may be placed on short-lerm Treasury Deposits at the discretion of the Business Manager. Prlnclpal Fundlng Sourcos Project funding for the Charity during the year was.. Department of Health and Social Care - Project 1.. Delivering the Tobacco Plan for England. Cancer Research UK - Project 3.. Local Authority Tobacco Control Report. Core funding for the entire programme of work of the Charity was provided by.. Cancer Research UK.. British Heart Foundation. Flnanclal Revlew The year saw a £73,681 increase in funds. Total income of £929,488 was 3°/0 higher than th8 previous year. Charitable expenditure, at £855,767 increased by 8.10 on the previous year. ASH finished the year with cash b818nces of £725,752 lup £151,457 from last yearl and nel assets of £811.099. Having made transfers of £89,828 from general funds to meet deficiencies on the various projects for which restricted funds were available. the balance of general funds al the end of the year increased by £73,308 10 £791.821. Reserves Policy Reserves are maintained at a level that enables the Charity lo manage financial risk, such as the loss of funding source, allowing the Charity to sustain current activities in the shOrt-le and ensvring that financial commrtments Can be met as they fall due. The reserves measure is on a 'managed cash. basis. 'Managed cash, includes all amounts available to finance the general activities of the Charity. and nomially include the cash held in the Charity's bank accounts. The targeted level of reseeS is a minimum of six months1£401.000} and a maximum of 12 months1£802,0001, annualised forecast cash oufflow. Six months is considered a reasonable time period considering the Charities two major funding sources are received quarterly in arrears. If the Charity were to suffer a loss of a funding source, the reserves would allow only a short-tem maintenance of current activity levels. Steps would still need lo be taken lo either replace the funding source or to change activities in the longer-temi. The Cuent level of managed cash {£725,7521 is within the desired range.
Action on Smoking and Health Report of the Trustees 31°, March 2021 Plans for Future Periods A new Strategic Plan for 2021-24 was developed between December 2020 and March 2021, informed by a series of interviews with key stakeholders and ASH Truslees, an online questionnaire and a series of strategic planning meetings held in the first quarter of 2021. ASH seeks to bring about change through policy advocacy, coalition building and information provision. Our slr81egic aims and objectives are focused on the creation and delivery of policies across government and the public sector that will deliver our vision of a wortd free from the hami caused by tobacco. There are three primary strategic aims. each of bthich has a number of specrfic policy objectives. These aims are.. 1. Secure resources for national. regional and l¢)cal tobacco control lo deliver Smokefree 2030 for all. 2. Advance UK position as a global leader in tobacco policy lo deliver Smokefree 2030 for all. 3. Minimise smoking-related health inequalities lo deliver Smokefree 2030 for all. These aims, and their associated objectives, amount to a policy blueprint for govemmenl and th8 public health community. They describe the policies that ASH believes are essential lo the delivery of a Smokefree 2030 for all, policies that ASH: will make the case for, using the best available evidence.. will build support for, drawing on its extensive professional partnerships and networks., and will campaign for, with the help of its supporters in parliament and the wider public arena. Each of these aims is explicitly linked to our goal of delivering Smokefree 2030 for all. The three aims are all equally important to achieving this goal. Appropriate resourcing is needed lo deliver ambitious policy, and the achievement of the 2030 goal for all requires a clear focus on inequalities. The aims are underpinned by a fourth aim that supports the delivery of, the other three.. securing organisational sustainability for ASH. Ther6 is no explicit prioritisation or sequencing as this will b& a matter for more detailed discussion al an operational level and will change over time as the environment we work in changes. The following general points are. however, relevant.. ASH does not make the political weather bul we do our best lo influence it. We lake a long view and are proactive in building public support for policies as a foundation for achieving political support. We respond quickly, and OPFX)rtunistically when necessary. lo political timetables and events. The government commitment to publish a new Tobacco Control Plan in 2021 is likely to dominate our immediate work programme. ASH has nurtured many successful partnerships and relationships and these will remain at the heart of the work of the organisation. Existing mechanisms and agents of change are always our first port of call. The full ASH strategic plan for 2021-24 can be found on our website {www.ash.org.uk). Thanks The Trustees would like to thank the British Heart Foundation. Cancer Research UK and our partners in the Smokefree Action Coalition for supporting our WOTk during the year. In addition, they would like lo thank all of the ASH staff for their work during the year. 10
Action on Smoking and Health Report of the Trustees 31" March 2021 Trustees, Responsibilities The Trustees (who are also the Directors of Action on Smoking & Health for the purposes of company law} are responsible for preparing the financial stalernenls in accordance with applicable law and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Accounting Praclicel. Company law requires the Trustees to prepare financial statements for each fin8nci81 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 finan(ial statements. the Iruslees are required lo.. select suitable accounting policies and then apply them consislently- observe the methods and principles in the Charities SORP-, make judgements and eslimales that are reasonable and prudent- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial slalements., and prepare the financial statements on a going concem basis unless il is inappropriate to presum8 that the 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 company and enable them lo 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. Small Company Exemption The above report has been prepared in accordance with the special provisions of section 416 of the Companies Act 2006 relating to small ccfftpanies and Section 162 of the Charities Act 2011. On behalf of the Trustees Dr Nick Hopkinson Chair Dale.. 20 sep.tember 2021
INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF ACTION ON SMOKING AND HEALTH I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021. Responsibilities and basis of report As the charity s Iruslees of the Company land also its directors for the purposes of company lawl you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061'the 2006 Act,). Having satisfied myself that the accounts of the Company are not required lo be audited under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of your charity's accounts as carned out under section 145 of the Charities Act 20111'the 2011 Acl'l. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145151 Ibl of the 2011 Act. Independent Examlnerfs Stsiement Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 01 the 2011 Act. I confirm thal l am qualified lo undertake the examination because I member of the ICAEW. which is one of the listed bodies. I have completed my examination. I confimi that no matters have come to my attention in connection with the examination giving me cause lo believe.. 11 accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act,. or 21 the accounts do not accord with those records; or 31 the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any reqviremenl that the accounts give a 'true and fair view which is not a maller considered as part of an independent examin81ion'. or 41 the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities. I have no con¢ern$ and have come a¢ros$ no other matters in ¢onne¢lion with the examinabon to whi¢h attention should be drawn in this report in order lo enable a proper understanding of the accounts lo be reached. J.A LL Neil Finlayson IFCA, ICAEWI For and on behalf of Moore Klngston Smllh LLP Chartered Accountants Devonshire House 60 Goswell Road Lolldon EC1M 7AD Dale.. 20 September 2021 12
ACTION ON SMOKING AND HEALTH STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 Unre5tiicted Funds General Oesignated Total 2021 Unrestricted Funds General Designated Restrictsd Fund5 Total 2020 Funds Income and Endowmonts From.. Donations and legacie5 Grants receiv8d Oonalions and legaaes rved Inl&r8sl 602,59B 3.8% 602,YJ8 3.896 $88,317 7.191 1,631 588,317 7.191 1,631 2b Charttable 4Wtlvltles Grants r8c8ived Contract income Olher income 237,317 237,317 71.300 13.847 186,177 188,177 115.470 1,497 900.283 71.300 13,847 115.470 1,497 Totol In¢¢m• 692,131 237.317 929,448 714,1Cfj 186,177 Expendlture On.. Charitsble activille$ Policy Research ènd Infomatkjn 528,995 4.373 322.399 855,767 515,747 4.130 273,816 793,693 Total Expendltura Net Incomollexpendltur•l lor the year before tran81er• 528,995 4.373 322,399 855,767 S15,747 4.130 273,816 793,693 163.136 14.3731 185.0821 73,681 198.359 14.130 187,6391 106,590 Transfers 89,828 4.746 85,082 91,805 4.284 87,321 Net Movomont In Fund¥ 73.308 373 73,681 106.754 154 13181 106,590 Funds brought forward 718,513 10.0(K) 737,418 611,7YJ 8,751 10,318 630,828 Fund$ ¢•rri•d forwar 791.821 9.278 10.orKI 811.1199 718.513 8.905 10,t)00 737,418 Noto 10 Not• 9 Noto 10 Note 9 Not? 8 All results are trom conlinuing athivilie5. No 98in3 or losses arose in the year other Ihan Ihc68 atQV8. Th& nol88 on pages 18 to 24 forni a part of these financial statements.
ACTION ON SMOKING AND HEALTH (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) BALANCE SHEET AT 31 MARCH 2021 Note 2021 2021 2020 2020 Fixed Assets Tangible assets Irivestments 9,278 24 8,905 24 9.302 8,929 Current Assets Debtors Cash al bank and in hand 137,937 725.752 863.689 198,255 574,295 772,550 Credltors: Amounts falling due wlthin one year (61,892) {44,0611 Net Current Assets Net Assets 801,797 811.099 728,489 737,418 11 Funds Reslri¢led 10.000 10.000 Unrestricted Designated fund$ General Funds 9,278 791,821 811,099 8.905 718,513 737,418 10 For the year ending 31 March 2021 the company was entitled to exemption from avdil under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance wilh sectson 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with Ihe requiremonls of the Act with respect to accounting records and for the preparation of 8ccounts. These financial statements have been prepared in accordance with the provisions applicable lo companies subject lo the small companies regime within Part 15 of the companies Act 2006 and with the Financial Reporting Standard 102 {effective January 20151. The notes on pages 16 to 24 form a part of these financial slaternents. These accounts were approved. and aulhorised for distribution, by the Board of Directors on nd ¢jAnp.rl nn its behalf by= DrNick Ho inson Chair of the Board of Tnjstees DÈte. 20 September 2021 Kate Harrison Treasurer Date." 20 Sepierrthr 21r21 Company number: 00998971 Charlty number: 262067 14
ACTION ON SMOKING AND HEALTH CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Cash flows from operating activities Nel income for the year Adjustments for.. Depreciation of tangible fixed assets Decrease in debtors Increase l (decre85el in creditors Interest received 73,681 106.590 4.373 60,318 17.831 14901 4,130 20,339 1138,4641 11,6311 Net cash genernted by l (used In) operatlng actlvltles 155.713 9,036 Cash flows from investing activities Interest received Purchase of tangible fixed assets Nèt cash from Investlng actlvStles 490 4.746 4,256 1.631 4,284 2,653 Change in cash and cash equivalents In the year Cash and cash equivalents al beginning of year Cash and cash oqulvalonts at end of year 151,457 574.295 111,6891 585,984 725,752 574,295 Analysls of cash and cash equlvalents Cash al bank and in hand 725.752 574,295 725.752 574,295 15
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accounting Policies Basis of preparation The financial slalements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021. The charitable company is a public benefit entity for the purFK)ses of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared ils financial statements in accordan with the Statement of Recommended Praclice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP). the Companies Act 2006 and Charities Ac12011. The financial statements have been prepared under the historical cost convention. They are prepared in sterling, which is the functional currency of the ¢harity. Amounts presented are rounded lo the nearest pound. Golng concern The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might Cast significant doubt on the ability of the chari18ble company lo continue as a going concem. This year. this requires consideration of the impact of COVID-19 on Ihe operations of ASH, ils principal funders and the wider economy. The trustees have made this assessment for a period of at least one year from the dale of the approval of these financial stalemenls. In particular, the trustees have considered the charitable company s forecasts and projections and have tsken account of pressures on income. After making enquiries, the Iruslees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements. Company status The charity is a company limited by guarantee, registered in England & Wales. In the event of the charity being wound up, Ihe liability of each member in respecl of the guarantee is limited to£1. Income All income including government grant income is recognised when there is enlillomenl to the funds, the receipt is probable and the amount can be measured reliably. Where income is received in advance of meeting any perfomiance-relaled conditions, there is not unconditional enlillemenl lo the income. The recognition of Ihis income therefore is deferred and included in creditors as deferred income until the perforrnance-related conditions are mel. Legacies are included in the accounts al the point where the amount receivable can be measured with sufficient reliability,. this is normally the poinl of receipt by the charity. 16
ACTION ON SMOKING AND HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Resources expended Expenditure is included in the Statement of Finanual Activities on a accruals basis, inclusive of any VAT which cannot be recovered. Expenditure is recognised once there is a legal or conslruclive obligation to transfer economic benefit to a third p8rty. it is probable th818 transfer of economic benefits will be required in settlemenl and the amount of the obligation can be measured reliably. Al expenditure has been dassified under headings that aggregate all costs related to the category. Charitable activities include expendilure associated with Ihe development of policy, research, information and related activities and include both the direct costs and support costs relating lo those aclivilies. Support costs are the cosls of central functions which relate to the whole organisalion. These have been allocated lo cost categories on the basis of staff bme occupied in each area. Penslon contrlbutlons The company makes conlribulions lo a defined conlribulion scheme for eligible members of staff the amount being delermined in relation to the individual's current salary. Additional contributions are made lo the individual personal pension scheme of three members of staff. Operating leases Rentals applicable lo operating leases are charged to the SOFA Istatemenl of Financial Activiliesl over the period in which the cost is incurred. Tanglble flxed assets and depreclatlon Items are capilalised as fixed assets if their cost exceeds £500. Oepreciatson is provided on expenditure at rates calculated to write off each asset over ils estimated remaining useful life. The estimated remaining useful lives of the classes of assets are as follows.. Office & IT equipment 3-5 years Investments Investments are held in tobacco related companies lo give ASH the right to attend annual general meetings and receive relevant documents. The holdings are minimal and it is therefore considered appropriate to disclose them at historical cost rather than market Value as required by SORP. There is no material difference betsveen the cost and the market value. Fund Accounting General funds are unrestricted funds which are available for use al the discretion of the trustees in furtherance of the objectives of the charity. Designated funds are also unreslricled funds but have been designated by the trustees for a parb"cular purpose and includes the nel book value of tangible fixed assets used by the charitable comp8ny in its operatsonal activities. Restricted funds are funds which are lo be used in accordance with specific restrictions imposed by donors or which have been raised for particular purposes. The aim and use of each reslricled and desi9n8ted fund is giverb in the notes. 17
ACTION ON SMOKING AND HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED) Gffts in kind Donated assets are capitalised at a value estimated to be their market value at the time of don8tion. Where services are provided lo the Charity 85 a donation that would normally be purchased from suppliers, this contribution is included in the financial statements as an estimate based on the value of the contributson to the Charity. Critical accounting estimates and areas of judgement In the view of the Iruslees in applying the accounting policies adopted. no judgements were required that have a significant effect on the amounts recognised in the financial stslemenls nor do any estimates or assumptions made cary a significant risk of matenal adjustment in the next financial year. Othgr flnanclal Instruments l. Cash and cash equlvalents Cash and cash equivalents include cash at bank and in hand and short term deposits with a maturity dale of three months or less. 11. Debtor$ and ¢rodltors Debtors and creditors CeiVable or payable within one year of the reporting date are carried al their al transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject lo a market rate of interest are measured at the present value of the expected future receipts or payment discounted al a market rate of interest. 2a Grants 2021 2020 Unrestrlcted grants recelved SLbpporb'ng tharities 602.598 588,317 Restrlcted grants arlslng from charltable actlvltles Department of Health suppO.ng charities 210,000 27,317 237,317 140,000 46,177 186,177 2b Donatlons and legacles IAII unrestricted) 2021 2020 Donations Legacies 3.896 7,191 3,896 7,191 18
ACTION ON SMOKING AND HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED) 3 Charltabl• actlvltlas The detailed Charitsble activities are more fully deSbed in the trustees, report and relate to inlertinked areas of pN)licy. research and information. Dlre¢t project costs Direct staff Support costs costs (see Note 4) (see below) 2021 Policy research and Inf0mtiOn 280,272 347,949 227,546 855,767 Dir8Ct prolect Dlrttt $taff Support costs costs Is•e Notè 4) (Seè below) 2020 Policy research and Inf0mon 241,925 344,313 207,455 793,693 Support costs are those shared costs whith relalg to thg operation of the organisation and inclvde: Total 2021 Total 2020 Staff costs (See Note 4} Depreciation Legal & Consultancy Office running costs Telephone and postage Printing, stationery and design Board expenses Independent Examinatson leo Accountancy and payrdl Other c(Ists 60,427 4,373 9,744 124,343 6,815 863 5,674 7,974 4,612 2,721 227,546 62,871 4.130 10,522 94,881 14,517 2,009 4,309 7,940 2,007 4,269 207.455 The basis of allocation of tolal overhead cosls betsrI direct and support cosis is staff time. 19
ACTION ON SMOKING AND HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED) 4 Staff Costs 2021 2020 Gross pay Social security Pension contributions 347,744 37,408 20,910 406,062 2,314 343,524 37,866 22.677 404,067 3,117 Other staff costs 408,376 407,184 The Temuneralion of 1 member of staff (2020.. 1 member of stsffl fell into the range £90,000- £100,00012020.' £90.000-£100,0001. This figure indudes salary but excludes social security costs and employer pension conth"bub"ons. No trustees12020.' none) were reimbursed for expenses in¢urred12020-. none) for travel lo board meetings. No Iruslee received any remuneratson in the year12020.' none). Key management rsOnnel Comprise the Irusleès. Chiel Executive, Businèss Manager, and thè Policy Director. Total employee benefits for these individuals in 2020-21 were £231,06712020.' £194,813>. This figure includes s81aries. employer pension conlributs'ons and social security costs. There are no other pecuniary benefits for senior or other staff at the Charity. Total employee benefits for the Chief Execuiive in 2020-21 were £110,171, comprising salary 1£92,9741, employer pension conlribulions1£5,5781 and social security cosls1£11,6181. The average number of staff employed, including part lime staff. allocated according lo function was.. 2021 Number 2020 Number Central charitable activities S Tanglble F5x•d Assets Office & IT oqulpmont Cost Al 1 April 2020 Additions Disposals At 31 March 2021 70,101 4,746 74,847 Deprèclatlon At 1 April 2020 Charge for the year Elimin8led on disposal Al 31 March 2021 61,196 4,373 65,569 Net Book Value Al 31 MarGh 2021 9,278 At 31 March 2020 8,905 l fixed assets are held for use in the tharitsble a¢tivibes of ASH. 20
ACTION ON SMOKING AND HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED) 6 Debtors 2021 2020 Other debtors Prepayments 131,592 6,345 137,937 184,706 13,549 198,255 All debtors are financial instruments measured at present value. 7 Credltors: Amounts falllng due wlthln one year 2021 2020 Trade creditors VAT Liability A¢cruals 28,014 8,630 25,248 61,892 24,245 5.509 14.307 44,061 Included within the figure for accruals is an amount of £2,20612020.' £2,256) owing to the pension scheme. All creditors. except accruals. are financial instruments measured at present value. 21
ACTION ON SMOKING AND HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED) Restricted Funds Funds brought forward Aprll 2020 Incoming resources Resources expended Transfers from Funds carried forward General funds March 2021 Secondhand Smoking Towards a Smokefree Generation.. a project to support deliver of the Tobacco Control Plan for England 2018-21 Local Authority Tobacco Control Tobacco Strategy & Policy (a) 10,000 10,000 Ib) Icl (d) 210.000 27,317 1293,8611 128,538} 83,861 1,221 10,000 237.317 1322,3991 85.082 10,000 Incomlng r¢sourcos Resources ¢xpend•d Transfers from Gonoral funds Funds carrl8d forward March 2020 Funds brought forward Aprll 2019 Secondhand Smoking Towards a Smokefree Generation.. a project to support deliver of the Tobacco Control Plan for England 2018-21 Local Authority Tobacco Control Tobacco Strategy & Policy (a) 10,000 10,000 Ib) Icl (d) 140,000 21,177 25,000 186.177 1226,2681 122,5481 125,000 273,816 86,268 1,053 318 10,318 87.321 10,000 (al This amount represents the legacy of Jean Matthews. The money was specified for use in campaigns againsl involuntary smoking. (bl This project funds work in support of the Tobacco Control Plan for 2018-21 and consists of a grant of £210,00012020= £140,000) frorn the Department of Health and Social Care Grant Funding Scheme. (cl This project provides 8n annual tobacco control report tracking Local Authority activity in tobacco control and consists of a grant from Cancer Research UK. (dl This project provides support for progression of tobacco control legislatson and policies and consists of a grant of £25,000 in 2019-20. 22
ACTION ON SMOKING AND HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED) 9 Designated Funds Funds brought forward Incorning Resources resources expended Transfers fromllto) General funds Funds carried for•vard March 2021 2020 Capitsl equipment 8.905 8,905 {4,3731 4.373 4.746 4.746 9,278 9.278 Funds brought forward April 2019 Funds carried forward March 2020 Transfers fromlltol General funds Incomin9 resources Resources expended Capital equipment 8,751 8.751 4,130 4,130 4,284 4,284 8,905 8,905 The capital equipment fund equates to the value of tangible fixed assets. These are not liquid assets or easily realisable. 10 Goneral Fund$ Funds brought forward Aprll 2020 Funds carried for•vard Mar¢h 2021 Tran$fors to other funds Incoming Resources resources expended Central funds 718,513 718,513 692,131 528,995 89,828 791,821 89.828 692.131 528995} 791,821 Funds carried for•vard March 2020 Funds brought forward Transfers to other funds Incomlng Resources resourcès èxpended 2019 Central funds 611,759 611.759 714,106 714.106 1515,7471 515,747 {91,605} 718,513 91.605 718,513 23
ACTION ON SMOKING AND HEALTH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED) Net current assets 11 Analysis of Net Assets belween Funds Fixed assets Total 2021 Restricted funds.. Unrestricted funds- Designated funds General funds 10.000 10,000 9.278 24 9,278 791,821 791.797 9,302 801,797 811,099 Fixed Net current assets assets Total 2020 Restricted funds.. Unreslricled funds.. Designated funds General funds 10,000 10,000 8.905 24 8,905 718,513 718,489 8,929 728.489 737,418 12 Operatlng Lease Commltments The company had annual commitrnents under operating leases as follows- 2021 Land and Bulldlngs 2020 Land and Bulldlngs Expiring.. within 1 year in between two and five years 24,478 89,752 29.992 During the year £44,234 {2020'. £41,tK)01 has been recognised as an expense in the SOFA. 13 Related Party Transactlons There have been no related party transactions during the year that require disclosure. 24