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2024-03-31-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 2024

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CONTENT
Trustees’ Report and Charity Information Pages 1 - 12
Independent Examiner’s Report Pages 13
Statement of financial activities Page 14
Balance sheet Page 15
Cash flow statement Page 16
Notes to the accounts Pages 17 - 25
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Action on Smoking and Health Report of the Trustees 31st March 2024

The Trustees are pleased to present their report and the financial statements of the charity for the year ended 31[st] March 2024.

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 2024 and had served throughout the year, except where shown:

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.

In September 2023, ASH Chief Executive Deborah Arnott announced that she would retire at the end of September 2024. Following a thorough recruitment process, current Deputy Chief Executive, Hazel Cheeseman has been appointed as the new Chief Executive, with effect from 1[st] October 2024.

Independent examiner

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

Principal Bankers

Barclays Bank plc, Leicester, LE87 2BB.

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Action on Smoking and Health Report of the Trustees 31st March 2024

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.

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 is responsible to the Board of Management which usually meets four times a year and is responsible for setting the strategic objectives.

So as 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 salary of the Chief Executive see note 4 on page 21.

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Action on Smoking and Health Report of the Trustees 31st March 2024

Related Parties and Partner Organisations

There have been related party transactions during the year, see note 13 for further details.

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 2023 to June 2024. The following risks 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 the 2024
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, including ending
funding ASH work, 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 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.
!
We have secured a strong relationship
with NHS England teams working on
prevention and health inequalities.
!
We continue to have regular meetings
with staff at 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 Colaitin (SFAC) members
continue to support tobacco control
policies.
Cyber Security
This would include any unauthorised
access to email accounts, documents,
financial records and other data stored on
the Cloud and our bank accounts. Any of
these would seriously impact our ability to
do our work in the short term.		 !
Staff training and awareness raising with
a particular emphasis on phishing
emails and running software updates.
!
Regular back-ups of data - back-ups are
made on an ongoing basis and, should
access be lost, or data compromised,
we can be up and running again within
24 hours.
!
Regular updates of all software -
Firewall and virus protection kept up-to-
date on both office based PCs and
home based laptops. This is ongoing
and automatic. All networked, personal
drives and e-mail are stored on The
Cloud.
!
Use of strong passwords.

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Action on Smoking and Health Report of the Trustees 31st March 2024

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! Maintaining an effective working
relationship with our external IT support
supplier and taking their advice.
! Maintaining the physical security of
hardware.
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Action on Smoking and Health
Report of the Trustees
31st March 2024		 Action on Smoking and Health
Report of the Trustees
31st March 2024
!
Maintaining an effective working
relationship with our external IT support
supplier and taking their advice.
!
Maintaining the physical security of
hardware.
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 OHID/PHE, NHS England,
Fresh/Balance, Greater Manchester
Health & Social Care Partnership, ASH
in Wales, Royal College of Psychiatrists
and various universities.
!
A reserves policy that permits 6-12
months cash reserves. This will help to
mitigate a reduction, or ceassing, in
funding. Reduce the need to cut costs
quickly and allow 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 2024-25.

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 31st March 2024

Strategy & Plans for Future Periods

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:

In September 2023, ASH Chief Executive Deborah Arnott announced that she would retire at the end of September 2024. Following a thorough recruitment process, current Deputy Chief Executive, Hazel Cheeseman has been appointed as the new Chief Executive, with effect from 1[st] October 2024. Following on from this and the General Election and change of government in July 2024, the Trustees have agreed that the process for a new Strategic Plan for 2025 onwards will begin in autumn 2024 and be concluded by the end of the year.

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 2024

Activity Report

Creating a smokefree generation (Strategic aims 1,2,3)

In October 2023 the Prime Minister pledged to create a smokefree generation in his conference speech. In response ASH embarked on an ambitious programme of work to support the Tobacco and Vapes Bill is passed into law. This has consisted of:

Although the Bill will not progress due to the general election, there is cross party support for the measures and ASH will continue to work to ensure that the Bill is reintroduced and passed into law in the next parliament.

Alongside the commitment to create a smokefree generation the government also announced further funding for tobacco control in line with recommendations made by ASH in the past. This included: £70m for local authority stop smoking services, £15m for mass media campaigns and £30m for enforcement.

This funding will bring the investment in stop smoking support back up to the level it was in 2012 and return investment in mass media and enforcement closer to their pre-2010 levels. This will help to motivate more smokers to quit and provide access to greater levels of support.

Developing UK approach to vaping (Strategic aims 1,2)

ASH has strong track record in supporting the UK to take an evidence-based approach to vaping which seeks to utilise vaping for adult smokers to switch while minimising the risk of youth uptake. The following government announcements on vaping during the year align with longstanding ASH recommendations:

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Action on Smoking and Health Report of the Trustees 31[st] March 2024

These announcements reflect recommendations set out in the APPG on Smoking and Health’s 2021 report, developed by ASH, and the ASH response to the government’s call for evidence on youth vaping (June 2023), oral evidence to the Health and Social Care Select Committee session on vaping (June 2023) and the ASH submission to the ‘creating a smokefree generation’ consultation. Several of the vaping measures taken forward by the government were previously proposed as amendments to the Health and Care Bill in 2022 by members of the All Party Parliamentary Group (APPG) on Smoking and Health with ASH support.

ASH has undertaken a substantial programme of professional, public, media and political engagement to improve awareness and understanding of the scale of vaping in the population and relative risk of vaping vs smoking including:

Involving people with lived experience (Strategic aim 3)

ASH has made increasing efforts to ensure that the voices of smokers are represented in our work, as part of our commitment to minimising health inequalities. ASH has founded a new Mental Health and Smoking Lived Experience Group which comprises five ‘experts by experience’ who all have a history of tobacco use and mental health conditions. The group meets once every two months, contributing to or reviewing work done by ASH, or our partners, relating to the intersection of mental health and smoking.

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Action on Smoking and Health Report of the Trustees 31[st] March 2024

Group activity includes:

Supporting local government (Strategic aims 2,3)

ASH has long called for funding for local government run stop smoking services to be reinstated after years of erosion to the public health grant. In October 2023, the Government announced a £70m boost to these services in line with ASH’s call to action. ASH has published guidance in collaboration with Association of Directors of Public Health on how local authorities should approach spending this funding.

In February 2024, ASH published the findings from the latest annual survey of local tobacco control. The findings are set in the context of 10 years since tobacco control responsibility was transferred from the NHS to local government. Cancer Research UK continue to fund this work so that we can tailor support to local government and support ASH’s national policy influencing by ensuring local tobacco control activity is effectively supported.

In November, ASH soft-launched an updated version of the Ready Reckoner. The figures included new costs of smoking based on analysis undertaken for our Cost Benefit and Public Finance model by Landman Economics which includes Gross Value Added and social care cost estimates that had not previously been included. The new cost of smoking to society figure is £49.2bn per year in England. The tool was publicly launched to mark the close of the smokefree generation consultation on 6 December.

In November, ASH also released an update to the Economic and Health Inequalities Dashboard. The tool gives an overview of smoking rates in certain groups at national, regional, local authority and combined authority levels. It highlights inequalities based on mental health, job type and housing, as well as showing the impact of smoking on mortality, poverty, unemployment, care needs and costs, pregnancy, and youth uptake.

In addition to our support to local government we have provided further support to regional tobacco control, promoting our regional toolkit and encouraging areas to pool funding and establish programmes across a wider footprint. All parts of England are now actively considering a model on these lines.

Supporting implementation of NHS Long Term Plan (Strategic aims 1,3)

ASH held several webinars for NHS professionals in 2023-24. The purpose of these webinars was to support stop smoking activity in the NHS and create a forum where people can share learning and best practice. A summary of the webinars is below:

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Action on Smoking and Health Report of the Trustees 31[st] March 2024

ASH have published several briefings for NHS audiences to aid implementation and integration of Tobacco Dependency Treatment Services. These include briefings on ‘Addressing winter pressures through treating tobacco dependency’ and briefings for Integrated Card Boards (ICBs) on Joint Forward Plans and Core20Plus5.

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

ASH continues to facilitate the Mental Health and Smoking Partnership (MHSP), a coalition of leading organisations working in the mental health sector. The Partnership meets regularly with ASH co-ordinating the agenda and providing support to the co-chairs Mark Rowland, Chief Executive of the Mental Health Foundation and Professor Ann McNeill from King’s College London.

In April 2023, ASH in collaboration with the University of York Mental Health and Addiction Research Group (MHARG) held a conference to bring together leading experts in mental health, public health, and tobacco control to discuss how the Smokefree 2030 ambition could be realised for people with mental health conditions.

This year ASH has supported the CQC in the revision of their guidance to inspectors on smoking in mental health settings. The updated guidance was published in January following a consultation process which ASH inputted into. The CQC adopted many of our initial recommendations and we have supported further dissemination.

ASH also coordinated a submission to the government’s smokefree generation consultation on behalf of the Partnership, which focused on the impact the smokefree generation policy would have on those with mental health conditions. The submission was able to draw attention to the disproportionate impact of smoking on those with mental health conditions and explain the benefits the new legislation would have for this population. ASH subsequently coordinated a written submission to the Tobacco and Vapes Bill committee from the Partnership.

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Action on Smoking and Health Report of the Trustees 31[st] March 2024

Improving support for pregnant smokers (Strategic aim

3)

ASH continues to facilitate the Smoking in Pregnancy Challenge Group, a coalition of leading organisations in the maternity sector. In December 2023, the Group celebrated it’s 10 year anniversary at an event in parliament hosted by the APPG on Smoking and Health and the APPG on Baby Loss. The event was attended by the Public Health Minister, Shadow Public Health Minister, parliamentarians and key stakeholders and professionals from the maternity sector. At the event, the public health minister Andrea Leadsom announced that the government’s financial incentive scheme would be extended to include partners of pregnant women who smoke.

Alongside the anniversary event, ASH published ‘A Manifesto for Smokefree Beginnings’, a report setting out the Challenge Group's key recommendations for reducing maternal smoking rates. This report will inform the Group's ongoing advocacy activity. The report demonstrated consensus among the Challenge Group organisations regarding reducing smoking during pregnancy, bringing together the evidence base, and reflecting on the changing context. It serves as a useful guide for maternity professionals as it lays out the effective work of the Smoking in Pregnancy Challenge Group, while urging the need for further advocacy.

Over the years, ASH has developed best practice guidance for professionals working to help pregnant smokers quit and continues to distribute these resources for free to maternity units across the country. As of December 2023, ASH had distributed more than 2 million items to the sector over the last 10 years. The items distributed include handouts and leaflets designed to support conversations with pregnant smokers.

In October 2023, ASH held a workshop at the International Society for the Study and Prevention of Perinatal and Infant Death (ISPID) international conference on stillbirth taking place in Florence, which set out the English experience of tackling smoking during pregnancy. The event was an opportunity to showcase the work of ASH and the Challenge Group to an international audience, including attendees from the US and elsewhere.

ASH coordinated a submission to the government’s smokefree generation consultation on behalf of the Challenge Group. The submission was able to draw attention to the impact of maternal smoking on child and maternal health, the concentration of maternal smoking in the most deprived groups and the impact the smokefree generation policy would have on rates of maternal smoking.

In April 2023, the government announced a national scheme to provide financial incentives to all pregnant women who smoke. ASH has been advocating for a national financial incentive scheme for many years and has worked closely with academic experts and maternity practitioners to translate the evidence base for incentives into practice-focused guidance and national policy recommendations.

Partnerships & Communications

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

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Action on Smoking and Health Report of the Trustees 31[st] March 2024

ASH Daily News goes out every weekday with a summary of relevant smoking, public health and political news to around 1800 subscribers. In 2023-24 ASH published 22 fact sheets reports and briefings (compared to 20 in 2022-23) and produced 23 resources relating to the Tobacco and Vapes Bill, including targeted briefings, letter templates, FAQs and consultation drafts. In addition, we submitted 8 responses to government consultations and calls for evidence.

ASH issued 46 press releases, was interviewed for television 23 times and 41 times on the radio (compared to 24 and 35 in 2022-23). ASH quotes or data appeared 3,394 times in print or online (compared to 3,577 in 2022-23). Over the year there were 101,000 user sessions recorded on the ASH website and 14,000 recorded to the Smokefree Action Coalition website. ASH X/Twitter has around 7,000 followers, with 1,921 impressions per tweet.

Secure organisational sustainability

At all times, ASH endeavours to maximise efficiency and minimise organisational costs. We continue to support our staff with flexible and hybrid working options.

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 £70,379 decrease in funds. Total income of £903,313 was 14% higher than the previous year.

Charitable expenditure, at £973,692 increased by 27% on the previous year. ASH finished the year with cash balances of £882,094 (down £150,165 from last year) and net assets of £940,943.

Having made transfers of £117,558 from general funds to meet deficits on the various projects for which restricted funds were available, the balance of general funds at the end of the year decreased by £68,538 to £933,655.

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 (£487,000) and a maximum of 12 months (£975,000), annualised forecast cash outflow. Six months is considered a reasonable time period considering the Charities two major funding sources are received

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Action on Smoking and Health Report of the Trustees 31st March 2024 quarterly in arrears. If the Charity were to suffer a loss of a funding sour￿, the reserves would allow only a short-term maintenance of cu￿ent activity levels. Steps would still need to be taken lo either replace the funding source or to change activities in the longer-term. The current level of managed cash (£882,094) is within the desired range. 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 lo 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 slatemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company law requires the Trustees lo prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charitable company and of the incoming reSoUr￿S 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= select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.. and prepare the financial statements on a going con￿rn basis unless il is inappropriate to presume thal the company will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy al 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 rewrt 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 Date.. 2310912024 12

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 2024.

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 of 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.

Adam Fullerton

(ICAEW)

For and on behalf of Moore Kingston Smith LLP

Chartered Accountants

6th Floor 9 Appold Street London EC2A 2AP

Date: 24 September 2024

13

ACTION ON SMOKING AND HEALTH STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

Note
Income and Endowments From:
Unrestricted activities
Grants
2a
Donations
2b
Interest
Charitable activities
Grants
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
Net income/(expenditure) for the
year before transfers		 General
£
642,592
2,924
10,844
-
109,779
1,065
767,204
718,184
718,184
49,020
(117,558)
(68,538)
1,002,193
933,655
Note 10
Unrestrict		 Designated
£
-
-
-
-
-
-
-
3,943
3,943
(3,943)
2,102
(1,841)
9,129
7,288
Note 9
ed Funds		 Restricted
Funds
£
-
-
-
136,109
-
-
136,109
251,565
251,565
(115,456)
115,456
-
-
-
Note 8		 Total
2024
£
642,592
2,924
10,844
136,109
109,779
1,065
903,313
973,692
973,692
(70,379)
-
(70,379)
1,011,322
940,943		 General
£
614,802
3,695
1,905
-
50,228
-
670,630
621,301
621,301
49,329
(15,723)
33,606
968,587
1,002,193
Note 10
Unrestrict		 Designated
£
-
-
-
-
-
-
-
3,892
3,892
(3,892)
5,575
1,683
7,446
9,129
Note 9
ed Funds		 Restricted
Funds
£
-
-
-
120,481
-
-
120,481
140,629
140,629
(20,148)
10,148
(10,000)
10,000
-
Note 8		 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

All results are from continuing activities. No gains or losses arose in the year other than those shown above. The notes on pages 17 to 25 form a part of these financial statements.

14

ACTION ON SMOKING AND HEALTH (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) BALANCE SHEET AT 31 MARCH 2024 Note 2024 2024 2023 2023 Fixed Assets Tangible assets Investments 7,288 24 7,312 9,129 24 9,153 Current Assets Debtors Cash at bank and in hand 166,031 882,094 1,048,125 100,304 1,032,259 1,132,563 Creditors.. Amounts falling due within one year 114,494 130,394 Net Current Assets Net Assets 933,631 940,943 1,002,169 1,011,322 11 Funds Restricted Unrestricted Designated funds General Funds 7,288 933,655 940,943 9,129 1,002,193 1,011,322 10 These financial statements have been prepared in accordance with the provisions applicable to companies subject lo the small companies regime within Part 15 of the companies Act 2006 and with the Financial Reporting Standard 102 (effective January 2015). For the financial year in question the company was entilled lo exemption under section 477 of the Companies Act 2006 relating lo small companies. No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with the requirements of the Act with respect lo accounting re(x)rds and for the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable lo companies subject lo the srnall companies, regime. The notes on pages 17 to 25 fomi a part of these financial statements. These accounts were approved, and authorised for distribution, by the Board of Trustees on 23 September 202lnd signed on its behalf by.. Professor Ick Hopkinson Chair of Ihe Board of Trustees Kate Harrison Treasurer Company number.. 00998971 Charity number: 262067 15

ACTION ON SMOKING AND HEALTH CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024

Net (expenditure)/income for the year
Adjustments for:
Depreciation of tangible fixed assets
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Interest received
Net cash (used)/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		 2024
£
(70,379)
3,943
(65,727)
(15,900)
(10,844)
(158,907)
10,844
(2,102)
8,742
(150,165)
1,032,259
882,094
882,094
882,094		 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

16

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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.

17

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

Resources expended

Expenditure is included in the Statement of Financial Activities on an 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.

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.

18

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (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 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
Supporting charities
NHS England
Restricted Grants
2b Donations
(All unrestricted)
Donations
Donations		 2024
£
642,592
86,110
49,999
136,109
2024
£
2,924		 2023
£
614,802
65,481
55,000
120,481
2023
£
3,695

19

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (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
363,345
£
Policy research and Information
233,445
Direct
project
costs
Direct
project
costs		 Direct staff
costs
(see Note 4)
£
444,639
Direct staff
costs
(see Note 4)
£
379,320		 Support
costs
(see below)
£
165,708
Support
costs
(see below)
£
153,057		 2024
£
973,692
2023
£
765,822

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
Accountancy and payroll
Other costs
Governance costs
Independent examination fee
Board expenses		 Total
2024
£
68,747
3,943
9,324
59,579
2,864
2,699
4,851
125
152,132
10,600
2,976
165,708		 Total
2023
£
62,907
3,892
12,181
52,619
1,484
1,478
3,892
2,403
140,856
9,000
3,201
153,057

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

Independent examiners fees
Independent examination fee
Accountancy and payroll		 10,600
4,851
15,451		 9,000
3,892
12,892

20

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

4
Staff Costs
Gross pay
Social security
Pension contributions
Other staff costs		 2024
£
440,383
48,842
19,066
508,291
5,095
513,386		 2023
£
380,195
42,715
17,032
439,942
2,285
442,227

The remuneration of 2 members of staff (2023: 1 member of staff) fell into the range £60,000 - £70,000 (2023: £60,000 - £70,000) and 1 member of staff (2023: 1 member of staff) fell into the range £90,000 - £100,000 (2023: £90,000 - £100,000). This figure includes salary but excludes social security costs and employer pension contributions.

No trustees were reimbursed for expenses relating to subscriptions (2023: one trustee was reimbursed £889 for two subscriptions). One trustee was reimbursed for expenses incurred of £275 (2023: none) for travel to board meetings. No trustees received any remuneration in the year (2023: none).

Key management personnel comprise the trustees, Chief Executive, Business Manager, and the Deputy Chief Executive. Total employee benefits for these individuals in 2023-24 were £248,857 (2023: £238,745). 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 2023-24 were £109,840 (2023: £105,161), comprising salary £97,623 (2023: £92,974), employer pension contributions £nil (2023: £nil) and social security costs £12,217 (2023: £12,187).

Central charitable activities
5
Tangible Fixed Assets
Cost
At 1 April 2023
Tangibles b/f
Additions
Tangibles additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Tangibles - accumulated depreciation b/f
Charge for the year
Tangibles - accumulated depreciation charge
Eliminated on disposal
At 31 March 2024
Net Book Value
At 31 March 2024
At 31 March 2023
The average number of staff employed, including part time staff,
allocated according to function was:		 2024
Number
11		 2023
Number
10
£
82,281
2,102
-
84,383
73,152
3,943
-
77,095
7,288
9,129
Fixtures,
fittings and
equipment

All fixed assets are held for use by the charitable company.

21

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (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		 2024
£
148,626
17,405
166,031
2024
£
97,828
3,172
13,494
114,494		 2023
£
86,373
13,931
100,304
2023
£
107,578
5,601
17,215
130,394

Included within the figure for accruals is £1,779 (2023: £1,977) owing to the NEST pension scheme.

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

22

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

8
Restricted Funds
NHS England Supporting NHS Long-Term Plan
Tobacco Priorities
(a)
Cross Risk Factors Collaboration
(b)
Local Authority Tobacco Control
(c)
NHS England Supporting NHS Long-Term Plan
Tobacco Priorities
(a)
Cross Risk Factors Collaboration
(b)
Local Authority Tobacco Control
(c)
Secondhand Smoking
(d)		 £
-
-
-
-
£
-
-
-
10,000
10,000
Funds brought
forward April 2023
Funds brought
forward April 2022		 £
49,999
51,740
34,370
136,109
£
55,000
35,481
30,000
-
120,481
Incoming
resources
Incoming
resources		 £
(154,242)
(59,755)
(37,568)
(251,565)
£
(55,000)
(40,484)
(35,145)
(10,000)
(140,629)
Resources
expended
Resources
expended		 £
104,243
8,015
3,198
115,456
£
-
5,003
5,145
-
10,148
Transfers from
General funds
Transfers from
General funds		 £
-
-
-
-
£
-
-
-
-
-
Funds carried forward
March 2024
Funds carried forward
March 2023

(a) This funding from NHS England is for activities to promote the NHS Long-Term Plan Tobacco Priorities. (b) This project is for research into Cross Risk Factors (smoking, alcohol and obesity) and is funded by Cancer Research UK.

(c) This project provides an annual tobacco control report tracking Local Authority activity in tobacco control and consists of a grant from Cancer Research UK.

(d) This amount represents the legacy of Jean Matthews. The money was specified for use in campaigns against involuntary smoking. The expenditure of this happened during the year 2022-23 on work to reduce exposure to passive smoking during pregnancy

23

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

9 Designated Funds Funds Incoming Resources Transfers Funds
brought resources expended from carried
forward General forward
April 2023 funds March
2024
£ £ £ £ £
Capital equipment 9,129 - (3,943) 2,102 7,288
9,129 - (3,943) 2,102 7,288
Capital equipment £
7,446
Funds
brought
forward
April 2022		 £
-
Incoming
resources		 £
(3,892)
Resources
expended		 £
5,575
Transfers
from
General
funds		 £
9,129
Funds
carried
forward
March
2023
7,446 - (3,892) 5,575 9,129
The capital equipment fund equates to the value of tangible fixed assets. These are not liquid
assets or easily realisable.
10 General Funds Funds Funds
Central funds £
1,002,193
brought
forward
April 2023		 £
767,204
Incoming
resources		 £
(718,184)
Resources
expended		 £
(117,558)
Transfers
to other
funds		 £
933,655
carried
forward
March
2024
1,002,193 767,204 (718,184) (117,558) 933,655
Central funds £
968,587
Funds
brought
forward
April 2022		 £
670,630
Incoming
resources		 £
(621,301)
Resources
expended		 £
(15,723)
Transfers
to other
funds		 £
1,002,193
Funds
carried
forward
March
2023
968,587 670,630 (621,301) (15,723) 1,002,193

24

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONTINUED)

11 Analysis of Net Assets between Funds
Restricted funds:
Unrestricted funds:
Designated funds
General funds
Restricted funds:
Unrestricted funds:
Designated funds
General funds		 £
-
7,288
24
7,312
£
-
9,129
24
9,153
Fixed
assets
Fixed
assets		 £
-
-
933,631
933,631
£
-
-
1,002,169
1,002,169
Net
current
assets
Net
current
assets		 £
-
7,288
933,655
940,943
£
-
9,129
1,002,193
1,011,322
Total 2024
Total 2023

12 Operating Lease Commitments

The company had annual commitments under operating leases as follows:

Expiring:
- within 1 year
- in between two and five years		 2024
Land and
Buildings
£
30,799
24,106		 2023
Land and
Buildings
£
27,297
49,498

During the year £33,900 (2023: £30,600) has been recognised as an expense in the SOFA (part of office running costs) .

13 Related Party Transactions

Jane Ellison is a Non-Executive Director of NHS England (from February 2024). ASH received funding of £49,999 from NHS England in the financial year to 31 March 2024 (2023: £55,000).

25