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2023-03-31-accounts

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 2023

CONTENT

Trustees’ Report and Charity Information Page 1 - 10 Independent Examiner’s Report Page 11 Statement of financial activities Page 12 Balance sheet Page 13 Cash flow statement Page 14 Notes to the accounts Page 15 - 23

Action on Smoking and Health Report of the Trustees 31[st] March 2023

The Trustees are pleased to present their report and the financial statements of the charity for the year ended 31[st] March 2023.

Legal & Administrative Details

Legal Status

Action on Smoking and Health (“ASH”) is registered in England as company number 00998971 and as charity number 262067.

Registered Office

Unit 2.9, The Foundry, 17 Oval Way, London SE11 5RR.

Website

www.ash.org.uk

Directors & Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law and throughout this report are referred to as the Trustees. The following Trustees (Honorary Officers as indicated) were in office at the 31[st] March 2023 and had served throughout the year, except where shown:

Dr Sanjay Agrawal - Dr Somen Banerjee - Professor Paul Burstow - resigned 5[th] August 2022 Alison Cox - resigned 25[th] October 2022 Linda Cuthbertson - Nick Forbes - co-opted 13[th] December 2022 Kate Harrison - Treasurer Dr Anthony Laverty - Professor Nick Hopkinson - Chair Jonathan McShane - Professor Rachael Murray - Dr Debbie Robson - Dr Helen Walters - Vice-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 Executive, Deborah Arnott. The Company Secretary is the Business Manager, Philip Rimmer.

Independent examiner

Neil Finlayson, Moore Kingston Smith LLP, 6[th] Floor, 9 Appold Street, London, ECA 2AP

Principal Bankers

Barclays Bank plc, Leicester, LE87 2BB.

Structure, Governance & Management

ASH was founded in 1971 by the Royal College of Physicians and is a company limited by guarantee without share capital. Its governing document is its Articles of Association.

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

The Trustees form the Board of Management of the charity. For the purposes of the Companies Act 2006 as the Directors 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, at the Annual General Meeting. Not more than one third of the Trustees are required to retire at each Annual General Meeting. Retiring Trustees are eligible for re-election.

The Chief Executive of ASH, a paid member of staff' is responsible for the day to day running of the organisation and reports to the Board of Management which usually meets 4 times a year and is responsible for setting the strategic objectives.

In order to maintain a pool of skilled potential Trustees, new Advisory Council Members are regularly sought by the Board of Management, particularly 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 to be grounded in the policies, working practices and procedures of the Board.

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.

Remuneration Policy

The governing principles of the Charity’s remuneration policy are as follows:

  1. to ensure delivery of the Charity’s objectives;

  2. to attract and retain a motivated 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 the Charity;

  5. to ensure that pay levels and pay increases are appropriate in the context of the interests of our beneficiaries.

Senior Executive 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 will take account of the following additional principles:

  1. to ensure that the Charity can access the types of skills, experiences and competencies that it needs in its senior staff, the specific 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 fulfilment and association with the public benefit delivered. The Charity recognises that it is, on occasion, possible to attract senior executives at a discount to public sector or private sector market rates.

The remuneration of the Chief Executive is disclosed in Note 4 on page 19.

Related Parties and Partner Organisations

None.

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

Statement of Risk

The Trustees have examined the major risks to which the Charity is exposed and confirm 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 to the Business Manager, who acts as Risk Manager and reports to the Board. Risks are identified, assessed and controls established throughout the year with a comprehensive review taking place at a minimum every year, most recently during December 2022 to June 2023. The following risks have been assessed as being significant:

have been assessed as being significant:
Risk Mitigation
Changes in Government policies, funding for
policies or attitudes.
The serious undermining of ASH’s work or
Government actions which impact on the work
we need to do:
- the possibility of radical shifts in Government
policy after a General Election. In recent years,
tobacco control policy has ceased to be an
issue of serious contention between parties
though it remains so for individual MPs and
Peers.
- funding cuts to Government work on tobacco
control policies. The DHSC team has already
been cut back over a period of years and other
relevant areas of Government activity will face
spending cuts during the period of this
Parliament.		 ASH has worked well in the past with
Conservative, Labour and Coalition
administrations. Key staff, including the Chief
Executive and Deputy Chief Executive,
continue with work to maintain good and
friendly relations with key political and civil
service decision makers and with relevant
individuals in all political parties.
The last DHSC grant to ASH came to an end in
2021-22 . However, ASH has secured a strong
relationship with NHS England (NHSE) teams
working on prevention and health inequalities,
and secured NHSE funding to support tobacco
dependence treatment implementation which
has to some extent made up the gap.
Furthermore, we continue to have regular
meetings with staff the Office of Health
Improvement and Disparities (OHID) working
on tobacco to ensure we are up to date on
public health priorities and can provide input as
appropriate.
Networking to ensure Smoke Free Action
Coalition (SFAC) members continue to support
tobacco control policies.
Failure by one of our key funders to agree
annual funding, or agreeing to much lower
funding, from March 2025 onwards.		 The Charity’s reserves policy, which is
reviewed on an annual basis, maintaining our
low level of overheads and employing a small
core staff whilst using specialist consultants
when appropriate.
The Chief Executive and other key staff will
continue to devote considerable effort to
maintaining good relations with key decision
makers. We will continue to demonstrate,
through ongoing evaluation of our work,
monitoring, regular updates and contact, that
ASHactivities are bothdynamic and effective

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

at delivering the support that our funders
require.
Excessive dependence on a limited number of
sources of funding.
ASH is fortunate in that it has a record going
back to the 1990s of receiving what is, in
effect, core funding from BHF and CRUK.
Such funding is becoming increasingly rare.
Our continuing reliance on 2 core funders
remains a serious weakness.		 ASH undertakes an ongoing search for new
sources of project funding, be it grants or
contract work.
In the past 7 years, sources have included a
wide range of local authorities, public bodies,
academic institutions, Royal Colleges and
charities.
A reserves policy that permits 6-12 months
cash reserves, (based on the budgeted
expenditure for the current financial year) to be
held (See: Reserves Policy). Our current
reserves policy will help to mitigate a reduction
in or removal of funding. This reduces the
need to cut costs quickly and allowing for a
gradual, properly managed re-structuring of
the charity over a 12 month period.
Should ASH lose both sources of core funding,
the two most realistic options would be to seek
to merge, or be taken over by, another charity
active in our field, or winding-up.

The next comprehensive review of risk is due to take place during the fourth quarter of 2023-24.

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 harmful 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.

The Trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

Activity and impact report

ASH seeks to bring about change through advocacy, networking coalition building and information provision. During 2020-21, the organisation developed a new comprehensive Strategic Plan for 2021-24. During this financial year, we have delivered against the plan, as set out in the Activity Report below.

Our strategic 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 world free from the harm caused by tobacco.

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

Strategy

The Strategic Plan for 2021-24 was developed between December 2020 and March 2021, informed by a series of interviews with key stakeholders and ASH Trustees, 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 strategic 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 world free from the harm caused by tobacco.

There are three primary strategic aims, each of which has a number of specific policy objectives. These aims are:

  1. Secure resources for national, regional and local tobacco control to deliver Smokefree 2030 for all.

  2. Advance UK position as a global leader in tobacco policy to deliver Smokefree 2030 for all.

  3. Minimise smoking-related health inequalities to deliver Smokefree 2030 for all.

  4. Secure organisational sustainability.

These aims, and their associated objectives, amount to a policy blueprint for government and the public health community. They describe the policies that ASH believes are essential to the delivery of a Smokefree 2030 for all, policies that ASH:

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 to deliver ambitious policy, and the achievement of the 2030 goal for all requires a clear focus on tackling inequalities. The aims are underpinned by a fourth aim that supports the delivery of, the other three: securing organisational sustainability for ASH.

There is no explicit prioritisation or sequencing as this will be a matter for more detailed discussion at an operational level and will change over time as the environment we work in changes. The following general points are, however, relevant:

The full ASH strategic plan for 2021-24 can be found on our website www.ash.org.uk.

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

Activity Report

Underpinning all of our activity is our valuable networks and communications activity. Through the year we provided over 90 updates to our 4 networks:

ASH Daily News goes out every weekday with a summary of relevant smoking, public health and political news to around 1500 subscribers. In 2022-23 ASH published 20 fact sheets (compared to 20 in 2021-22), reports and briefings and responded to 8 government consultations (compared to 12 in 2021-22).

ASH was interviewed for television 24 times and 35 times on the radio (compared to 14 and 24 in 2021-22). ASH quotes or data appeared 3,577 times in print or online (compared to 2,971 in 202122). Over the year there were 169,346 user sessions on the ASH website (compared to 144,117 in 2021-22) and 62,697 to the Smokefree Action Coalition website (compared to 41,931in 2021-22).

Publication of the Khan review (strategic aims: 1,2,3)

The first part of the year was dominated by the development and publication of the Khan review on 9[th] June 2022. This was a Government commissioned independent review of tobacco control policy. ASH fed into the development of the review meeting with Dr Javed Khan and the review team and supporting input from other stakeholders including Mental Health and Smoking Partnership and the Smoking in Pregnancy Challenge Group.

ASH amplified the communications strategy for the launch focusing on the importance of sustainable funding for tobacco control, one of Khan’s ‘must do’ recommendations. This was reinforced through an ASH co-ordinated open letter to Prime Minister, Chancellor and Secretary of State for Health signed by health leaders and led by ASH Chair published in the BMJ and a letter in Financial Times from peers on the levy.

Campaigning for a new Tobacco Control Plan including sustainable funding (strategic aims: 1,2,3)

The political context has been volatile with three Prime Ministers, four Secretaries of State for Health and three Public Health Ministers. ASH has adapted its campaigning activity to reflect the changing circumstances and to maximise the opportunities to make the case for further action on tobacco.

There was significant parliamentary activity through the year in support of new tobacco control measures, a comprehensive tobacco control plan and a sustainable funding mechanism. There were two backbench debates (April and November) and the first reading of Bob Blackman MP’s Sale of Tobacco (Licensing) Ten Minute Rule Bill. In November, the All-Party Parliamentary Group on Smoking and Health also held an event to launch a report on ASH survey of tobacco retailers ‘Regulation is not a dirty word’. ASH also met with Minister O’Brien the Public Health Minister to discuss smokefree 2030 ambition, and our recommendations for the Tobacco Control Plan.

On 9[th] March 2023 Minister O’Brien committed to parliament that the “coming weeks” would see publication of a set of “bold, innovative and ambitious proposals” to realise the smokefree 2030 ambition and respond to the Khan recommendations. Subsequent announcements were made in

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

April which fell short of a new Tobacco Control Plan, did not include key measures such as raising the age of sale and include no commitment to sustainable funding.

ASH has also sought to influence the agenda of the incoming chair of the Health and Social Care Select Committee, Steve Brine, meeting with him early in his tenure. The Health and Social Care Committee have since committed to a series of prevention focused inquires including a specific one on alcohol, drugs, gambling and smoking.

Political parties are starting to generate ideas for their manifestos ahead of the next election. The Labour Party opened their policy commission process for external input and ASH co-ordinated input into a number of areas and supported submissions from the Smoking in Pregnancy Challenge Group and the Mental Health and Smoking Partnership. This work has been supported with a series of meetings with key figures in Labour to communicate the importance of addressing smoking to support the wider Labour objectives.

We utilised the 15[th] anniversary of smokefree legislation to publish a short report on public support for tobacco control and highlight public appetite for Government to go further.

Making the economic case for action (strategic aims: 1,2)

The ASH submission to the Treasury ahead of the Budget highlighted our new Cost Benefit and Public Finance model. ASH met with Treasury officials and the Public Health Minister to discuss the model. Recommendations made in the ASH budget submission included rebasing tobacco tax from Retail Prices Index (RPI) to average earnings increases, a polluter pays levy and a new tax on disposable vapes. To date these have not been taken forward.

Expanding the role of the NHS (strategic aim: 3)

ASH has been involved in a number of projects throughout the year to support the roll out of new tobacco dependence treatment services in the NHS, identify other activity where the NHS has a role to play and advocate for the strategic importance of addressing smoking among newly created Integrated Care Boards (ICBs).

In April ASH published tailored briefings for every ICB in the country on the relationship between smoking and the NHS England Core20PLUS5 inequalities framework. A new ready reckoner tool for ICBs was published at the same time. Later in the year we were successful in persuading NHSE to update their Core20PLUS5 framework to include the link between smoking and the priority populations identified.

During October 2022 NHSE awarded ASH a grant of £95,000 for 2022-24 to support the roll out of tobacco dependency services with a new senior member of staff. Our new NHS tobacco dependence treatment resource hub was also published on our website.

Through the year we supported Humber and North Yorkshire ICB to develop their plans for a new comprehensive tobacco control programme across the system which launched in February.

Improving support for smokers with mental health conditions (strategic aim: 3)

Collaboration with the mental health sector has deepened during this year in our shared goal to improve the lives of people with mental health conditions. In May, we published a joint report on Public Mental Health and Smoking with the Royal College of Psychiatrists (RCPsych). This was launched at the RCPsych annual congress alongside a summary of the evidence on smoking as a

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

causal risk factor in the development of mental health conditions bought together by Bristol University.

The Mental Health and Smoking Partnership welcomed Mark Rowland, Chief Executive of the Mental Health Foundation, as its new Co Chair in July 2022. The Partnership agreed a new strategic plan and worked closely with members to get their input into development of Government consultations, Khan Review and a joint letter to the Secretary of State for Health. We welcomed three new members to the Partnership: Turning Point, Mental Health UK and the Anna Freud National Centre for Children and Families.

The National Collaborating Centre for Mental Health asked ASH to be a funded partner in their bid to deliver a QI programme in support of the tobacco dependency treatment programme in mental health.

Improving support for pregnant smokers (strategic aim: 3)

ASH continues to co-ordinate the Smoking in Pregnancy Challenge Group and the 1k plus Smokefree Pregnancy Network. The Challenge Group has met quarterly through the year and inputted into consultations, the Khan Review and the Labour Policy Commission. A new strategic plan was agreed by the Challenge Group in October for the next few years.

A number of events were held to support the network including one on Neonatal Units and emerging evidence about how parental smoking can be addressed in this setting. This was chaired by CE of Challenge Group member Bliss and attended by over 200 professionals.

Developing UK approach to vaping (strategic aim: 2)

In July 2022, ASH published data on the youth vaping uptick prompting roundtables with officials and public health organisations. Roundtables examined how best to sustain the current strategy on vaping (maximising adult use to quit while minimising youth uptake) by looking at what could be done with the existing regulatory and non-regulatory tools and what further action might be needed.

Policy recommendations on vaping were published highlighting need for government action. We held a webinar for enforcement professionals on the vaping which was attended by over 600 professionals.

Supporting local government (strategic aims 2,3)

ASH continues to support local government colleagues with regular updates and events. Particularly successful was our series of insights webinars. With DHSC funding we conducted insights research with groups of disadvantaged smokers. These insights fed into the Khan review but in addition we held a series of themed sessions for local government colleagues sharing the insights and the implications for practice. In February 2023, we published the 9[th] in our series of reports surveying delivery in local government it highlighted the changing way services were being delivered following the impact of the pandemic.

Engaging social housing (strategic aim 3)

ASH published a joint report with Housing LIN on the case and opportunities for improving the support available on smoking to social housing residents. The report was disseminated through ASH and Housing LIN’s networks and featured in the King’s Fund’s Health Management Policy alert in addition to their Twitter. Sarah Davis, Senior Policy and Practice Officer, leading on health

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

and care at the Chartered Institute for Housing, also wrote a supportive blog featured on Housing LIN’s website.

Following the report publication, a number of housing and local government colleagues got in touch to discuss taking forward recommendations. One of these organisations, social housing provider Clarion, is now taking forward a project to support smokers through debt advice with support from NCSCT and Oxford University facilitated by ASH.

Secure organisational sustainability

At all times, ASH endeavours to maximise efficiency and minimise organisational costs. This year, following on from completing a move into smaller offices, better suited to our emerging needs postpandemic, we completed the process of shifting to hybrid and home working.

Finance

Investments Policy

When not required, the free reserves held by the charity are held on deposit and may be placed on short-term Treasury Deposits at the discretion of the Business Manager.

Principal Funding Sources

Core funding for the entire program of work of the Charity was provided by:

Financial Review

The year saw a £25,289 increase in funds. Total income of £791,111 was 22% lower than the previous year. The lower total income and decreased charitable expenditure were a result of the end of a project funding grant from the Department of Health and Social Care.

Charitable expenditure, at £765,822 decreased by 8% on the previous year. ASH finished the year with cash balances of £1,032,259 up by £295,961 from last year and net assets of £1,011,322.

Having made transfers of £15,723 to the general funds, the balance of general funds at the end of the year increased by £33,606 to £1,002,193.

Reserves Policy

Reserves are maintained at a level that enables the Charity to manage financial risk, such as the loss of funding sources, allowing the Charity to sustain current activities in the short-term and ensuring that financial commitments 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 normally include the cash held in the Charity’s bank accounts. The targeted level of reserves is a minimum of six months (£505,000) and a maximum of 12 months (£1,011,000), annualised forecast cash outflow. 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-term maintenance of current activity levels. Steps would still need to be taken to either replace the

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Action on Smoking and Health Report of the Trustees 31[st] March 2023

funding source or to change activities in the longer-term. The current level of managed cash (£1,032,259) is slightly above the targeted level of reserves.

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 work during the year. In addition, they would like to thank all of the ASH staff for their work during the year.

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 statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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 to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 companies and Section 162 of the Charities Act 2011.

On behalf of the Trustees

…………………………………………….

Professor Nick Hopkinson Chair

19 September 2023

Date: ……………………………………...

10

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 2023.

Responsibilities of Trustees and Examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's accounts carried out under the Charities Act 2011 ('the 2011 Act') under section 145. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent Examiner's Statement

Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one the listed bodies.

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

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Neil Finlayson (FCA, ICAEW) For and on behalf of Moore Kingston Smith LLP Chartered Accountants

6th Floor 9 Appold Street London EC2A 2AP

Date: 20 September 2023

11

ACTION ON SMOKING AND HEALTH STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income and Endowments From:
Unrestricted activities
Grants received
2a
Donations and legacies received
2b
Interest
Charitable activities
Grants received
2a
Contract income
Other income
Total Income
Expenditure On:
Charitable activities
Policy Research and Information
3
Total Expenditure
Transfers
8, 9, 10
Net Movement in Funds
Funds brought forward
Funds carried forward
All results are from continuing activities.
Net income/(expenditure) for the
year before transfers		 General
Designated
£
£
614,802
-
3,695
-
1,905
-
-
-
50,228
-
670,630
-
621,301
3,892
621,301
3,892
49,329
(3,892)
(15,723)
5,575
33,606
1,683
968,587
7,446
1,002,193
9,129
Unrestricted Funds		 General
Designated
£
£
614,802
-
3,695
-
1,905
-
-
-
50,228
-
670,630
-
621,301
3,892
621,301
3,892
49,329
(3,892)
(15,723)
5,575
33,606
1,683
968,587
7,446
1,002,193
9,129
Unrestricted Funds		 Restricted
Funds
£
-
-
-
120,481
-
120,481
140,629
140,629
(20,148)
10,148
(10,000)
10,000
-		 Total
2023
£
614,802
3,695
1,905
120,481
50,228
-
791,111
765,822
765,822
25,289
-
25,289
986,033
1,011,322		 General
Designated
£
£
631,004
-
92,873
-
328
-
-
-
69,767
-
1,000
-
794,972
-
510,592
3,691
510,592
3,691
284,380
(3,691)
(107,614)
1,859
176,766
(1,832)
791,821
9,278
968,587
7,446
Unrestricted Funds		 General
Designated
£
£
631,004
-
92,873
-
328
-
-
-
69,767
-
1,000
-
794,972
-
510,592
3,691
510,592
3,691
284,380
(3,691)
(107,614)
1,859
176,766
(1,832)
791,821
9,278
968,587
7,446
Unrestricted Funds		 Restricted
Funds
£
-
-
-
216,644
-
-
216,644
322,399
322,399
(105,755)
105,755
-
10,000
10,000		 Total
2022
£
631,004
92,873
328
216,644
69,767
1,000
1,011,616
836,682
836,682
174,934
-
174,934
811,099
986,033
Note 10 Note 9 Note 8 Note 10 Note 9 Note 8

No gains or losses arose in the year other than those shown above. The notes on pages 15 to 23 form a part of these financial statements.

12

ACTION ON SMOKING AND HEALTH (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) BALANCE SHEET AT 31 MARCH 2023

Note
Fixed Assets
Tangible assets
5
Investments
1
Current Assets
Debtors
6
Cash at bank and in hand
7
Net Current Assets
Net Assets
11
Funds
Restricted
8
Unrestricted
Designated funds
9
General Funds
10
Creditors: Amounts
falling due within one
year		 2023
£
100,304
1,032,259		 2023
£
9,129
24
9,153
1,002,169
1,011,322
-
9,129
1,002,193
1,011,322		 2022
£
306,157
736,298
1,042,455
(63,892)		 2022
£
7,446
24
7,470
978,563
1,132,563
(130,394)
986,033
10,000
7,446
968,587
986,033

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the companies Act 2006 and with the Financial Reporting Standard 102 (effective January 2015).

The notes on pages 15 to 23 form a part of these financial statements.

These accounts were approved, and authorised for distribution, by the Board of Directors on

19 September 2023 …………..……..and signed on its behalf by:

…………………………………. …………………………………. Professor Nick Hopkinson Kate Harrison Chair of the Board of Trustees Treasurer

Company number: 00998971 Charity number: 262067

13

ACTION ON SMOKING AND HEALTH CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

Net income for the year
Adjustments for:
Depreciation of tangible fixed assets
Decrease/(increase) in debtors
Increase in creditors
Interest received
Net cash generated by operating activities
Cash flows from investing activities
Interest received
Purchase of tangible fixed assets
Net cash from investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Analysis of cash and cash equivalents
Cash at bank and in hand
Cash flows from operating activities		 2023
£
25,289
3,892
205,853
66,502
(1,905)
299,631
1,905
(5,575)
(3,670)
295,961
736,298
1,032,259
1,032,259
1,032,259		 2022
£
174,934
3,691
(168,220)
2,000
(328)
12,077
328
(1,859)
(1,531)
10,546
725,752
736,298
736,298
736,298

14

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting Policies

Basis of preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011.

The financial statements have been prepared under the historical cost convention. They are prepared in sterling, which is the functional currency of the charity. Amounts presented are rounded to the nearest pound.

Going concern

During this financial year 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 charitable company to continue as a going concern. This year, this requires consideration of its principal funders and the wider economy. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the trustees have considered the charitable company’s forecasts and projections and have taken account of pressures on income. After making enquiries, the trustees 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, the liability of each member in respect of the guarantee is limited to £1.

Income

All income including government grant income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Where income is received in advance of meeting any performance-related conditions, there is not unconditional entitlement to the income. The recognition of this income therefore is deferred and included in creditors as deferred income until the performance-related conditions are met. Legacies are included in the accounts at the point where the amount receivable can be measured with sufficient reliability; this is normally the point of receipt by the charity.

15

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

Resources expended

Expenditure is included in the Statement of Financial Activities on a accruals basis, inclusive of any VAT which cannot be recovered. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure has been classified under headings that aggregate all costs related to the category.

• Charitable activities include expenditure associated with the development of policy, research, information and related activities and include both the direct costs and support costs relating to those activities.

• Support costs are the costs of central functions which relate to the whole organisation. These have been allocated to cost categories on the basis of staff time occupied in each area.

Pension contributions

The charitable company makes contributions to a defined contribution scheme for eligible members of staff the amount being determined in relation to the individual's current salary.

Operating leases

Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred.

Tangible fixed assets and depreciation

Items are capitalised as fixed assets if their cost exceeds £500.

Depreciation is provided on expenditure at rates calculated to write off each asset over its estimated remaining useful life. The estimated remaining useful lives of the classes of assets are as follows:

Fixtures, fittings and office equipment

3-5 years

Investments

Investments are held in tobacco related companies to 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 between the cost and the market value.

Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the objectives of the charity. Designated funds are also unrestricted funds but have been designated by the trustees for a particular purpose and includes the net book value of tangible fixed assets used by the charitable company in its operational activities. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised for particular purposes. The aim and use of each restricted and designated fund is given in the notes.

16

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

Gifts in kind

Where services are provided to the Charity as 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 contribution to the Charity.

Critical accounting estimates and areas of judgement

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

Other financial instruments

i. Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and short term deposits with a maturity date of three months or less.

ii. Debtors and creditors

Debtors receivable and creditors payable within one year of the reporting date are carried at their at transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

2a Grants
Unrestricted grants received
Supporting charities
Unrestricted Grants
Restricted grants arising from charitable activities
Department of Health and Social Care
Supporting charities
NHS England
Restricted Grants
2b Donations and legacies
(All unrestricted)
Donations
Donations
Legacies
Legacies		 2023
£
614,802
614,802
-
65,481
55,000
120,481
2023
£
3,695
-
3,695		 2022
£
631,004
631,004
192,000
24,644
-
216,644
2022
£
5,809
87,064
92,873

17

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

3 Charitable activities

The detailed charitable activities are more fully described in the trustees' report and relate to interlinked areas of policy, research and information.

£
Direct Project Costs
Policy research and Information
233,445
£
Policy research and Information
360,996
Direct
project
costs
Direct
project
costs		 £
Direct Project Costs
Policy research and Information
233,445
£
Policy research and Information
360,996
Direct
project
costs
Direct
project
costs		 Direct staff
costs
(see Note 4)
£
379,320
Direct staff
costs
(see Note 4)
£
342,401		 Support
costs
(see below)
£
153,057
Support
costs
(see below)
£
133,285		 2023
£
765,822
£
360,996
Direct
project
costs		 2022
£
836,682

Support costs are those shared costs which relate to the operation of the organisation and include:

Staff costs (See Note 4)
Depreciation
Legal & Consultancy
Office running costs
Telephone and postage
Printing, stationery and design
Board expenses
Audit fee
Accountancy and payroll
Other costs		 Total
2023
£
62,907
3,892
12,181
52,619
1,484
1,478
3,201
9,000
3,892
2,403
153,057		 Total
2022
£
59,004
3,691
8,718
41,526
1,885
621
-
11,740
2,913
3,187
133,285

The basis of allocation of total overhead costs between direct and support costs is staff time.

18

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

4
Staff Costs
Gross pay
Social security
Pension contributions
Other staff costs		 2023
£
380,195
42,715
17,032
439,942
2,285
442,227		 2022
£
347,108
37,018
16,632
400,758
647
401,405

The remuneration of 1 member of staff (2022: 1 member of staff) fell into the range £90,000 - £100,000 (2022: £90,000 - £100,000). This figure includes salary but excludes social security costs and employer pension contributions.

One trustee was reimbursed for expenses totalling £889 (2022: none) for two subscriptions. No trustees were reimbursed for expenses incurred (2022: none) for travel to board meetings. No trustee received any remuneration in the year (2022: none).

Key management personnel comprise the trustees, Chief Executive, Business Manager, and the Deputy Chief Executive. Total employee benefits for these individuals in 2022-23 were £238,745 (2022: £231,081). This figure includes salaries, employer pension contributions and social security costs. There are no other pecuniary benefits for senior or other staff at the Charity.

Total employee benefits for the Chief Executive in 2022-23 were £105,161 (2022: £105,979), comprising salary £92,974 (2022: £92,974), employer pension contributions £nil (2022: £1,395) and social security costs £12,187 (2022: £11,610).

Central charitable activities
5
Tangible Fixed Assets
Cost
At 1 April 2022
Tangibles b/f
Additions
Tangibles additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Tangibles - accumulated depreciation b/f
Charge for the year
Tangibles - accumulated depreciation charge
Eliminated on disposal
At 31 March 2023
Net Book Value
At 31 March 2023
At 31 March 2022
All fixed assets are held for use by the charitable company.
The average number of staff employed, including part time staff,
allocated according to function was:		 2023
Number
10		 2022
Number
9
£
76,706
5,575
-
Fixtures,
fittings and
equipment
82,281
69,260
3,892
-
73,152
9,129
7,446

19

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

6
Debtors
Other debtors
Prepayments
All debtors are financial instruments measured at present value.
7
Creditors: Amounts falling due within one year
Trade creditors
VAT liability
Accruals
Other creditors		 2023
£
86,373
13,931
100,304
2023
£
107,578
5,601
17,215
-
130,394		 2022
£
293,228
12,929
306,157
2022
£
10,941
6,571
18,172
28,208
63,892

Included within the figure for accruals is £1,977 (2022: £1,667) owing to the NEST pension scheme.

All creditors, except accruals, are financial instruments measured at present value.

20

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

8
Restricted Funds
Secondhand Smoking
(a)
NHS England Supporting NHS Long-Term Plan
Tobacco Priorities
(c)
Cross Risk Factors Collaboration
(d)
Local Authority Tobacco Control
(e)
Secondhand Smoking
(a)
Towards a Smokefree Generation: a project to
support deliver of the Tobacco Control Plan for
England 2018-21
(b)
Local Authority Tobacco Control
(e)		 £
10,000
-
-
-
Funds brought
forward April 2022		 £
-
55,000
35,481
30,000
Incoming
resources		 £
(10,000)
(55,000)
(40,484)
(35,145)
Resources
expended		 £
-
-
5,003
5,145
Transfers from
General funds		 £
-
-
-
-
Funds carried forward
March 2023
10,000 120,481 (140,629) 10,148 -
£
10,000
-
-
Funds brought
forward April 2021		 £
-
192,000
24,644
Incoming
resources		 £
-
(293,861)
(28,538)
Resources
expended		 £
-
101,861
3,894
Transfers from
General funds		 £
10,000
-
-
Funds carried forward
March 2022
10,000 216,644 (322,399) 105,755 10,000

21

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

9
Designated Funds
Capital equipment
Capital equipment		 £
7,446
7,446
£
9,278
9,278
Funds
brought
forward
April
2022
Funds
brought
forward
April
2021		 £
-
Incoming
resources		 £
(3,892)
(3,892)
£
(3,691)
(3,691)
Resources
expended
Resources
expended		 £
5,575
5,575
£
1,859
1,859
Transfers
from
General
funds
Transfers
from
General
funds		 £
9,129
Funds
carried
forward
March
2023
- 9,129
£
-
Incoming
resources		 £
7,446
Funds
carried
forward
March
2022
- 7,446

The capital equipment fund equates to the value of tangible fixed assets. These are not liquid assets or easily realisable.

10 General Funds
Central funds
Central funds		 £
968,587
968,587
£
791,821
791,821
Funds
brought
forward
April
2021
Funds
brought
forward
April
2022		 £
670,630
Incoming
resources		 £
(621,301)
(621,301)
£
(510,592)
Resources
expended
Resources
expended		 £
(15,723)
(15,723)
£
(107,614)
(107,614)
Transfers
to other
funds
Transfers
to other
funds		 £
1,002,193
Funds
carried
forward
March
2023
670,630 1,002,193
£
794,972
Incoming
resources		 £
968,587
Funds
carried
forward
March
2022
794,972 (510,592) 968,587

22

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

11 Analysis of Net Assets between Funds
Restricted funds:
Unrestricted funds:
Designated funds
General funds
Restricted funds:
Unrestricted funds:
Designated funds
General funds		 £
-
9,129
24
9,153
£
-
7,466
24
7,490
Fixed
assets
Fixed
assets		 £
-
-
1,002,169
1,002,169
£
10,000
-
968,543
978,543
Net
current
assets
Net
current
assets		 £
-
9,129
1,002,193
Total 2023
1,011,322
£
10,000
7,466
968,567
Total 2022
986,033

12 Operating Lease Commitments

The company had annual commitments under operating leases as follows:

Expiring:
- within 1 year
- in between two and five years		 2023
Land and
Buildings
£
27,297
49,498		 2022
Land and
Buildings
£
24,478
65,274

During the year £30,600 (2022: £28,029) has been recognised as an expense in the SOFA (part of office running costs) .

13 Related Party Transactions

There have been no related party transactions during the year that require disclosure.

23