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2024-03-31-accounts

Company Registration Number 01658354 Registered Charity Number (E&W) 285575 Registered Charity Number (Scotland) SCO 39129

THE ASSOCIATION FOR REAL CHANGE (A Company Limited by Guarantee)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024

Contents Page
Trustees’ Report 1-12
Independent Auditor’s Report 13-16
Statement of Financial Activities 17
Balance Sheet 18
Statement of Cash Flows 19
Notes to the Financial Statements 20-31

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The Association for Real Change (ARC) is a charity and a company limited by guarantee. It is generally known in the sector by its acronym ARC. It is registered with the Charity Commission and the Office of the Scottish Charity Regulator.

Reference and Administrative Information

Registered office & Shared Services: 10a Marsden Street Chesterfield S40 1JY Website: www.arcuk.org.uk Email: contact.us@arcuk.org.uk Bankers: Lloyds Bank Plc Church Street Sheffield Auditors: BHP LLP One Waterside Place Brimington Road Chesterfield Derbyshire S41 7FH Registered Company no: 01658354 Registered Charity no: 285575 (E&W) Scottish Registered Charity no: SCO 39129

page 1

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

Directors and Trustees:

Angie Ferguson Marcus Isherwood Lynnette Linton Fiona McCabe Phil Morris Jane Other Zoe Robertson David Sargent Andrew Sleigh

Appointed 27/9/23 Appointed 27/9/23 Resigned 27/09/23 Resigned 27/09/23 Appointed 27/09/23

Principal officers:

ARC UK Chair: Hon Treasurer:

David Sargent (Appointed 27/09/23) Phil Morris (Resigned 27/09/23) Andrew Sleigh

Senior management team:

Martin Anderson Finance Director James Fletcher Scotland Director Leslie-Anne Newton Northern Ireland Director Clive Parry England Director

page 2

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

Trustees present their annual report together with the audited financial statements of the company for the year ended 31 March 2024. The Trustees' report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Trustees' report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Governing document

ARC was incorporated as a company limited by guarantee in 1982 and is governed in accordance with its Articles of Association.

Principal aims and activities

The founding members who created ARC wanted to give it as much freedom as possible to have a wide impact on the learning disability sector. Its two stated charitable objectives are to work for:

  1. The education and training of all organisations, associations, individuals and / or groups of individuals concerned with the care of people with learning disabilities.

  2. The study of and research into all matters affecting people with learning difficulties and to obtain and make records of and to share all useful results of such research.

The Memorandum of Association, our founding document sets out what we are here for and what we can do to meet our aims, including things such as:

In this report we explore our activities in terms of delivering public benefit through the implementation of our strategic plan and link those to our charitable objectives. We are subject to three regulators, Companies House, the Charity Commission of England and Wales and the Office of the Scottish Charity Regulator. Our governance and strategic offer is designed to reflect the differences in each nation country and to share best practice across the whole of the UK.

Measurement of success

By continuous dialogue with our members and stakeholders, regular surveys, improved evaluation and building better sector knowledge, ARC has further developed its strategic aims across the UK, focusing on the specific needs of each nation country and setting out the significant changes that we want to see.

By articulating and focussing on a suite of indicators, ARC is clear that it intends to see these changes and continuous improvement for:

page 3

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

We now measure the difference we will make by asking our members and stakeholders:

  1. How much difference have we made?

  2. And is anyone better off as a result?

  3. We monitor our operational objectives by measuring:

  4. How much of something have we done?

  5. How often?

  6. • How well?

Public benefit requirement

ARC is clear about its role: we exist to support policy makers, public and private organisations, communities and individual supporting people with learning disabilities, to achieve the best outcomes and improve their wellbeing. We do this through a variety of ways and our activities demonstrate that there is a public benefit through an improvement in the quality of all kinds of services to support people with learning disabilities.

Strengthening the network of support for the learning disabilities sector is vital to ensuring that people with learning disabilities can achieve quality of life and the best outcomes.

This is achieved by ARC doing such things as:

page 4

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

Membership of ARC

By becoming a member of ARC, provider organisations benefit from being involved in a diverse community, sharing ideas stemming from shared values, and benefitting from opportunities to collaborate, build relationships and network with like-minded people.

Having a shared voice and joining with like-minded organisations to influence government policy and developments via representation at local, regional and national levels is key to our work.

Being supported with guidance and information to keep up-to-date with news and abreast of key developments within the sector and access to training, consultancy and funding opportunities to help develop a competent, qualified workforce is regarded as one of the key benefits of membership.

Other benefits include:

This is a time of unprecedented change in social care and we at ARC have adapted our organisation and our activities to ensure that we are well-positioned to support the sector in the face of its challenges. We developed a range of new partnerships, projects and activities, in response to members’ needs. We continue to achieve above our own high expectations in the face of an uncertain and challenging operational environment, funding, recruitment, the cost of living amongst many others.

Achievements and performance

This section tells you about the things that ARC UK achieved during the year from April 2023 to March 2024.

Financial Results Summary (how well we managed our money)

ARC ended the year with an unrestricted surplus of £376, from a total unrestricted income of £1,034,771, compared to £963,019 in 2023.

Total restricted income in the year (work and projects paid directly by others) was £720,003 compared to £743,259 in 2023. Funds of £17,287 which were brought-forward from the previous year have now been spent. Four projects continued over the year end with a balance still to spend of £55,929.

Strategy & Objectives (our vision, the big plan for how we will get there and the things we said we would do)

The ARC UK strategy captures the ways in which we seek to have a positive impact in the lives of supported people whilst retaining the different ways in which we achieve our outcomes in the four countries we operate in.

At its most fundamental, the strategy is about celebrating difference and central to this idea and our desire to make a real difference in people's lives are the important concepts of choice, inclusion and rights.

Our strategy document is set out on the next page and further details can be found on the ARC websites.

page 5

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

page 6

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

The Impact we have made in the year

Below are extracts taken from our UK Annual Impact report. The full Impact report is available on our websites.

page 7

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

page 8

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

People who have supported us in 2023/2024

We thank all those individuals, organisations, Charities, Local Authorities and Health Authorities that have continued to share our values and support our work in 2023/24. We value all our relationships and networks, as it is the collective voice that speaks the loudest. We appreciate all support and collaboration to date and this will be an essential factor in putting all people with a learning disability at the centre of decisions and in the heart of their communities in 2023/24. The following is by no means an exhaustive list but these include:

Aberdeenshire Council Belfast Health and Social Care Trust Community Fund Dormant Funds Department of Health Northern Ireland Esmee Fairbairn People First Scotland Rix-Thompson-Rothernberg Foundation Scottish Government Skills for Care (England) South Eastern Health and Social Care Trust Western Health and Social Care Trust

Financial Health

After seeing a decrease in funds of £112,888 in the previous year (of which £124,397 was an decrease in unrestricted funds and a £11,509 increase in restricted funds) ARC experienced an increase in funds of £39,018 (of which £376 was an increase in unrestricted funds and a £38,642 increase in restricted funds) on a total income up from £1.706m to £1.755m.

The cash position at the end of March 24 business remains strong at £834,996 ( 2023- £795,269)

The Board has approved a small deficit budget of £10,000 for 2024/25, including a £15,000 investment to support longer term sustainability and growth objectives in England.. Whilst we remain in challenging economic times, the board is persuing a number of opportunities to better the budget and recover to no worse than a break even position for both current and future years.

page 9

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

Reserves

The trustees have agreed a policy with regard to achieving an unrestricted reserves level equivalent to the costs of three months’ operations in order to enable an orderly shutdown of operations should it become necessary. The board of ARC has agreed the means by which these figures should be calculated and will review them each year when the budget for the coming year is set, taking account of redundancy liabilities, lease contracts and foreseeable operational costs to sustain an orderly closure. For the year ended March 2024 the target for the reserves was calculated at £373,060 and by March 2024 ARC’s total unrestricted reserves stood at £402,106. Free reserves (excluding tangible fixed assets) were £382,012.

Investment Policy

Investment decisions are taken by the Board. ARC’s current investment policy is to hold monies in interest bearing accounts with banks for periods ranging from one to six months to maximise interest and accessibility. ARC has no permanent endowment and provides for capital expenditure from within budget.

Risk Management

The trustees and the strategic leadership team of the charity believe that a sound risk management is integral to both good management and good governance practice.

Risk management forms an integral part of the charity’s decision making and is incorporated within strategic and operational planning. Risk assessment is conducted on all new activities and projects to ensure they are in line with the charity’s objectives and mission.

Any risks or opportunities arising are identified, analysed and reported at an appropriate level.

A risk register covering key strategic risks is maintained and updated quarterly and more frequently where risks are known to be volatile. The charity regularly reviews and monitor the effectiveness of its risk management framework and updates it as appropriate. Reports are regularly made to the Board of Trustees of continuing and emerging high concern risks and those where priority action is needed to effect better control.

Who governs ARC?

The Board of ARC meets four times a year in addition to the AGM.

The Board members of ARC act as trustees and have the powers and obligations of company directors under the Companies Act 2006. The trustees are not entitled to or paid any remuneration for their role as trustees, but are reimbursed for travelling expenses. ARC also purchased insurance to protect it from any loss which might arise from neglect or any default of its senior staff or trustees and to indemnify the trustees against the consequences of loss or default on their part. This insurance cost £1,285.

Organisational structure and key management remuneration

The directors consider the senior management team to comprise the key management personnel of the charity in charge of directing, controlling and operating the charity on a day to day basis.

The pay of the senior management team is reviewed annually and any increases are agreed by the board.

page 10

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

Trustee Recruitment

There is a systematic, open and fair procedure for the recruitment and co-option of Trustees. Recruitment takes place through open advertisement within our membership base and stakeholders, or individuals may be approached for co-option. Suitability for the role is established at interviews, and voting takes place prior to their appointment to ensure a good fit with the Board and organisation.

Induction and training of trustees

Most of ARC’s trustees are senior staff from within member organisations with significant experience of providing services. Prior to agreeing to stand for the board of ARC they are sent an outline of what becoming a trustee of ARC involves, the various criteria they must meet, and upon their election they are sent an information pack for new trustees. This contains details of the structure of and post holders within ARC as well as copies of the Charity Commission publications on the roles of trustee. Direct support for new trustees, is provided on request, by the Chair and Strategic Leadership Team.

Income from fundraising and projects

ARC is not easy to fundraise for since we do not normally provide direct service to people with learning disabilities and many trusts look at our membership and realise that they already support many of them. We are therefore especially grateful to those agencies who do support us. Some of the supporters have wished to remain anonymous, but we do thank all of those who have supported us.

Statement of trustees’ responsibilities

The trustees (who are also directors of The Association for Real Change for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, under company law the trustees must not approve the financial statements unless they are satisfied that they 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 adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

page 11

THE ASSOCIATION FOR REAL CHANGE

TRUSTEES’ REPORT - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Appointment of auditors

A resolution for the re-appointment BHP LLP Chartered Accountants, as auditors for the coming year will be proposed at the forthcoming annual general meeting.

By order of the board, 3[rd] October 2024

David Sargent UK Chair, on behalf of the Board

page 12

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE ASSOCIATION FOR REAL CHANGE

Opinion

We have audited the financial statements of The Association for Real Change (the ‘charitable company’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, Balance sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

page 13

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES AND MEMBERS OF THE ASSOCIATION FOR REAL CHANGE

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

page 14

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE ASSOCIATION FOR REAL CHANGE

Auditor responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilites, outlined above to detect material misstatements in respect of irregularities, including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the entity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

page 15

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE ASSOCIATION FOR REAL ‘CHANGE – CONTINUED

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

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola Adams (Senior Statutory Auditor)

Date:

For and on behalf of BHP LLP One Waterside Place Brimngton Road Chesterfield Derbyshire S41 7FH

BHP LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

page 16

THE ASSOCIATION FOR REAL CHANGE

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

Income from:
Charitable activities:
Membership subscriptions
Grants
Training & conferences
Services to members
Investments
Total income
Expenditure on:
Charitable activities
Special projects
Training and conferences
Services to members
Total expenditure
Net income/(expenditure)
Funds brought forward
at 1 April 2023
Funds carried forward
at 31 March 2024		 2023
Unrestricted
Restricted
2024
as restated
Note

Funds
Funds
Total
Total

£
£
£
£
102,460
-
102,460
96,432
(4)
-
720,003
720,003
743,259
639,012
-
639,012
576,036
276,137
-
276,137
287,837
17,162
-
17,162
2,714
1,034,771
720,003
1,754,774
1,706,278
(4)
-
681,361
681,361
731,750
476,715
-
476,715
441,624
557,680
-
557,680
645,792
(3)
1,034,395
681,361
1,715,756
1,819,166
376
38,642
39,018
(112,888)
401,730
17,287
419,017
531,905
(10)
402,106
55,929
458,035
419,017

The Statement of Financial Activities complies with the requirements for an income and expenditure account under the Companies Act 2006 and includes all gains and lossess recognised in the year.

All income and expenditure derive from continuing activities.

page 17

THE ASSOCIATION FOR REAL CHANGE

BALANCE SHEET

AS AT 31 MARCH 2024

Fixed assets
Tangible assets
Current assets
Trade debtors
Prepayments and accrued income
Cash at bank and in hand
Creditors: amounts falling
due within one year
Taxation and social security costs
Trade creditors
Other creditors
Accruals
Deferred income
Net current assets
Total net assets
Funds
Restricted funds
Unrestricted funds
Total funds		 Note
(6)

(7)
(4)
(4)
(10)		 84,804
38,186
834,996
957,986
20,869
43,994
5,810
60,606
388,766
520,045		 2023
2024
As restated
£
£
20,094
12,336
103,247
46,687
795,269
945,203
22,176
68,780
61,961
66,677
318,928
538,522
437,941
406,681
458,035
419,017
55,929
17,287
402,106
401,730
458,035
419,017

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

Approved by the board on 3[rd] October 2024 and signed on their behalf by:

David Sargent – Chair

The notes on pages 20 to 31 form part of these financial statements.

Company Registration Number 01658354

page 18

THE ASSOCIATION FOR REAL CHANGE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

Cash flows from/used in operating activities
Cash flows from investing activities
Interest received
Purchase of tangible fixed assets
Cash used in investing activities
Increase/(decrease) in cash and cash equivalents
in the year
Cash and cash equivalents at the beginning of
the year
Cash and cash equivalents at the end of
the year		 Note
(8)
 2024
£
40,016
17,162
(17,451)
(289)

39,727
795,269
834,996		 2023
£
(68,454)
2,714
(8,839)
(6,125)
(74,579)
869,848
795,269

page 19

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

1. Accounting Policies

a) Basis of accounting

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (issued in October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

The Association for Real Change meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

b) Company status

The charity is a company limited by guarantee and has no share capital. The members of the company are the Trustees named on page 2. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

c) Income

Income from membership subscription is recognised over the period of the subscription.

Income from grants is recognised in the period in which the grant relates to.

Income from training course fees is recognised over the duration of the course. Fees are generally invoiced in full at the time of enrolment. Income is recognised as each stage of the course is completed by the candidate and an assessment of that stage has been carried out by our assessors. Fees for conferences are invoiced in advance and recognised as income in the period in which the conference takes place. Income from services to members is recognised in the period in which the related expenditure occurs.

Income from publications, donations and investment income are recognised when they are received.

d) Fund accounting

The unrestricted funds comprise general funds which are available for use by the charity for its general objectives. The restricted funds are subject to restrictive conditions made by the grant making body or donor. The aim and use of each restricted fund is set out in the notes to the financial statements.

e) Operating leases

The rentals payable under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

page 20

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

  1. Accounting Policies - continued

f) Liabilities and provisions

Resources expended are accounted for on an accruals basis and are recognised when there is a legal or constructive obligation to pay for expenditure.

g) Expenditure

This expenditure includes network costs, the costs of the national offices, the costs of providing the Disclosure services, the costs of the training delivered and the costs of the conference.

h) Support costs

Support costs have been allocated to activities based on the ratio of the individual activity expenditure against the overall expenditure, as detailed in note 3.

i) Pension scheme

The company contributes to a stakeholder pension scheme. The pension costs charged in the financial statements represent the contributions payable by the charity during the year, in accordance with FRS102.

j) Irrecoverable VAT

The company is not registered for VAT. Any irrecoverable VAT is charged against the expense to which the item relates.

k) Tangible fixed assets

Assets costing more than £300 are capitalised and depreciated over their estimated useful life.

Depreciation is charged as follows -

Office equipment 33.3% Straight Line

l) Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of six months or less from the date of acquisition or opening of the deposit or similar account.

page 21

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

  1. Accounting Policies - continued

n) Going concern

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation of the financial statements and have concluded that the charitable company has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charitable company’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

o) Taxation

The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

p) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

  1. Incoming resources
ncoming resources
Net incoming resources are stated after charging 2024 2023
£ £
Depreciation 9,693 8,528
Auditors remuneration 10,000 9,520
Operating leases 21,770 45,694

page 22

BHP LLP

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

3. Total expenditure

Direct costs
Support costs
Total expenditure
The support costs are allocated to activities below:
Finance & IT
Secretarial
Management		 2023
2024
as restated
£
£
1,644,910
1,741,230
70,846
77,936
1,715,756
1,819,166
Training &
Service to
Total
Total
conferences
members
2024
2023
£
£
£
£
23,061
26,977
50,038
53,449
8,584
10,041
18,625
18,144
1,006
1,177
2,183
6,343
32,651
38,195
70,846
77,936

4. Statement of funds

Statement of funds – current year

Restricted funds
Provider forums – Aberdeen
TILII Belfast Projects
TILII South Eastern Project
Community Fund Dormant funds
National and Local Networks
LD Forum
My Social Life Project
Transitions - CYPFAL
Transitions - Scottish Government
Divergent Influencers (Esmee Fairbairn)
Research Unit
See Hear Event
TILII Enniskillen
Ethical Commissiong Engagement
Marketing Esmee Fairbairn
TILII Translates
SOLD
Total – Charitable Activities
Restricted funds		 B/forward
C/forward
01/04/2023
Income Expenditure
31/03/2024
£
£
£
£
-
11,951
11,951
-
-
23,726
23,726
-
-
25,248
25,248
-
-
39,508
32,055
7,453
-
149,500
149,500
-
-
16,143
16,143
-
-
5,500
5,500
-
-
146,341
146,341
-
-
52,274
52,274
-
-
65,000
54,530
-
7,855
18,500
2,777
18,325
9,432
10,511
10,511
25,155
-
13,269
13,269
-
-
15,013
15,013
-
-
8,000
3,004
4,996
-
18,295
18,295
-
-
101,224
101,224
-
17,287
720,003
681,361
55,929

page 23

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

4. Statement of funds – current year (continued)
B/forward C/forward
01/04/2023 Income Expenditure 31/03/2024
£ £ £ £
Unrestricted fund
General funds 401,370 1,034,771 1,034,395 402,106
Total funds 419,017 1,754,774 1,715,756 458,035
Statement of funds – Prior year
B/forward
Income		 Expenditure C/forward
01/04/2022 as restated as restated 31/03/2023
£ £ £
£
Restricted funds
Provider forums – Aberdeen - 11,713 11,713 -
TILII Belfast Projects - 22,915 22,915 -
TILII South Eastern Project - 24,384 24,384 -
Big Lottery Fund 5,778 - 5,778 -
National and Local Networks - 119,500 119,500 -
LD Forum - 15,591 15,591 -
TILII TV - 15,000 15,000 -
GIRFEC - 185,630 185,630 -
Transitions - 73,300 73,300 -
Divergent Influencers (Esmee Fairbairn) - 65,000 57,145 7,855
Research Unit - 50,500 41,068 9,432
Provider Forums - 30,000 30,000 -
TILII Enniskillen - 12,815 12,815 -
TILII Translates - 17,670 17,670 -
SOLD - 99,241 99,241 -
Total – Charitable Activities
Restricted funds 5,778 743,259 731,750 17,287
Unrestricted fund
General funds 526,127 963,019 1,087,416 401,730
Total funds 531,905 1,706,278 1,819,166 419,017

page 24

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

4. Statement of funds (Continued)

The restricted grants received were utilised for the purposes for which they were given, as outlined below.

Provider forums – Aberdeen (Funded by Aberdeen Council)

Development and support of self advocacy groups within Aberdeenshire for social care providers and people who receive support.

TILII Belfast Project (Telling It Like It Is) (Funded by Belfast HSC Trust)

ARC NI (Northern Ireland) supports over 25 people with a learning disability in group advocacy within the greater Belfast area. The funding from the Belfast Health & Social Care Trust is for one group in the community and two groups in Muckamore Abbey Hospital. TILII members in Belfast complete a range of activities, including delivering induction training to new staff, responding to public consultations, and influencing change in services as experts by experience.

TILII South Eastern Project (Telling it Like it is) (Funded by Southern Eastern HSC Trust)

ARC NI supports over 20 people with a learning disability in group advocacy within Downpatrick, Lisburn and Bangor area. The funding from the South Eastern Health & Social Care Trust enables TILII members to complete a range of activities, including delivering induction training to new staff, responding to public consultations, and influencing change in services as experts by experience.

New Northern Ireland Website (Funded by Dorant Funds Account delivered through the National Lottery Community Fund NI)

A grant offering financial sustainability to charities was secured by ARC NI to develop a new website, to reach more people and to enable online booking of training and events. Consultation with the learning disability community occurred to find out what they wanted from a website and ARC NI’s training database was integrated within the back end of the new website Content Management System (CMS). Feedback from the community was collected before going live as part of Learning Disability Week 2024.

National and Local networks (Funded by the Scottish Government)

This project is to support the national and local implementation of the Charter for Involvement by people who receive support, help people with a learning disability lead full and active lives and be at the heart of their services and communities, shaping the decisions that affect their lives.

Learning Disability Forum (Funded by Belfast Health and Social Care Trust)

The Learning Disability Forum has been set up by the Belfast Health & Social Care Trust to ensure that people with a learning disability and their family carers have a voice in the development of Learning Disability services across the city. ARC NI supports ‘Telling It Like It Is’ (TILII) members to attend the Forum meetings. TILII members also consult with their peers on issues raised at the Forum meetings and provide this feedback as a method of representation from those who use services and supports.

My Social Life Project (Funded by Rix-Thompson-Rothenberg Foundation)

Led by people with learning disabilities, we will develop and deliver peer-led research asking people about their social lives and community experiences. We will identify the things they wish to change and use the results to influence policy makers and funders to increase inclusion and connection. This work will act as a pilot for further work which will ask wider questions over a longer time frame hor people’s lives are changing.

page 25

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

4. Statement of funds (Continued)

Transitions Forum (Funded by CYPFAL)

This project is for developing and trialling a national framework to improve the experiences of young disabled people who are making the transition to young adult life. This includes developing a digital application that will enable young people and their families to have access to the information they need, and will enable policy makers and commissioners to have access to the information they need to make better informed decisions. This project also ensures that the Scottish Transitions forum influences practice and policy at a national level.

Transitions Forum (Funded by the Scottish Government)

This project is for developing and trialling a national framework to improve the experiences of young disabled people who are making the transition to young adult life. This includes developing a digital application that will enable young people and their families to have access to the information they need, and will enable policy makers and commissioners to have access to the information they need to make better informed decisions. This project also ensures that the Scottish Transitions forum influences practice and policy at a national level.

Divergent Influencers (Funded by the Esmee Fairbairn Foundation)

This project supports young disabled people to influence changes to policy, practice and attitudes at a national level.

Research Unit (Funded by Annual unit membership fees)

The ARC Learning Disability and Autism Research Unit was set up in response to a lack of quality data in this part of the Adult Care Sector. The unit is overseen by a Steering Group made up of payimg members with membership fees being used to fund discreet pieces of research.

See Hear Event (Funded by the Scottish Government)

Conduct an engagement workshop with young people with sensory impairments to inform the Scottish Government’s refresh of the ‘See Hear’ strategy.

TILII Eniskillen (Funded by the Western HSC Trust)

ARC NI supports over 20 people with a learning disability in group advocacy within Downpatrick, Lisburn and Bangor area. The funding from the Western Health & Social Care Trust enables TILII members to complete a range of activities, including delivering induction training to new staff, responding to public consultations and influencing change in services as experts by experience.

Ethical Commissioning Engagement (Funded by the Scottish Government)

This project is for a 6-month piece of work to support Scottish Government as part of the implementation of its response to the Independent Review of Adult Social Care. This will support Scottish Government in their preparation for a future National Care Service. Specifically, the work will take a focus on ethical commissioning.

Marketing & Communications project (Funded by the Esmee Fairbairn Foundation)

To engage a marketing consultant to develop an advertising campaign to increase awareness and sales of training services that are delivered by disabled people and family members.

page 26

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

4. Statement of funds (Continued)

TILII Translates (Funded by the Belfast HSCT)

ARC NI supports Telling It Like It Is (TILII) to offer an accessible information service, which includes translating information into Easy Read. The Belfast Health & Social Care Trust also lend the support of Speech & Language Therapy to support TILII members and help with quality assurance. Since the creation of the service, a growing number of customers approach TILII Translates, with a high percentage returning as frequent customers. This includes the Northern Ireland Public Ombudsman, the Department of Health, Housing Associations, and the Muckamore Abbey Public Inquiry Team.

SOLD (Funded by the Scottish Government)

This project is to improve support and reduce offending amongst people with communication difficulties.

5. Staff Costs

Wages & salaries
Pension costs
Social security cost
Totals		 2024
£
852,673
38,594
82,995
974,262		 2023
£
833,911
37,577
84,736
956,224

The average number of employees on a full time equivalent basis and the areas in which they work are as follows:

Charitable activities
Support Services
Average number of FTE employees
Average number of employees		 No.
16
7
23
28		 No.
16
7
23
31

The directors, who are Trustees of the Charity, were not entitled to, and did not receive any emoluments from the company during the year. Their travel expenses to meetings during the year amounted to £1,866 for 7 Trustees (2023:(6) £4,125).

Staff pension contributions unpaid at the year end were £5,910 (2023: £5,836). There are no staff with emoluments in excess of £60,000 (2023: None).

The total amount of employee benefits received by key management personnel is £232,126 (2023: £224,700). The charity considers its key management personnel to be the staff who comprise of the Country Directors and the Finance Director.

page 27

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

6.
7.
8.
 Tangible Fixed Assets
Cost
Balance as at 1 April 2023
Additions during the year
Disposals during the year
Balance at 31 March 2024
Depreciation
Balance as at 1 April 2023
Disposals during year
Charge for the year
Balance as at 31 March 2024
Net book value 31 March 2024
Net book value 31 March 2023
Deferred income
Course and Conference fees
Received in advance at the beginning of the year
Total fees received in the year
Recognised as income in the year
Received in advance at the end of the year
Reconciliation of net movement in funds
To net cash flow from operating activities

Net movement in funds
Depreciation charges
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Investment income
Net cash used in operating activities		 Office equipment
£
44,868
17,451
(2,967)
59,352
32,532
(2,967)
9,693
39,258
20,094
12,336
2024
2023
£
£
318,928
296,283
708,850
598,681
(639,012)
(576,036)
388,766
318,928
2024
2023
£
£
39,018
(112,888)
9,693
8,528
26,944
(48,448)
(18,477)
87,068
(17,162)
(2,714)
40,016
(68,454)

page 28

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

9. Analysis of changes in net debt
Cash at bank and in hand
10
Analysis of net assets between funds – current year
Tangible fixed assets
Current assets
Creditors due within 1 year
Net assets
Analysis of net assets between funds – prior year
Tangible fixed assets
Current assets
Creditors due within 1 year
Net assets		 At
1 April
2023
£
795,269
Unrestricted
£
20,094
908,303
(526,291)
402,106
Unrestricted
£
12,336
927,916
(538,522)
401,730
Cash flows
£
39,727
Restricted
£
-
55,929
-
55,929
Restricted
£
-
17,287
-
17,287		 At
31 March
2024

£
834,996

Total

£
20,094
964,232
(526,291)
458,035

Total

£

12,336
945,203
(538,522)
419,017

11. Operating lease commitments

At 31 March 2024 the company had future minimum lease payments under non-cancellable leases as follows:

nder one year
– 5 years		 2024
£
18,806
2,964
21,770		 2023

£
35,937
20,375

56,312

12. Related party transactions

During the year £4,300 was paid to Havencare Homes and Support Limited, a company of which Phil Morris is the chief executive officer, for claimed Workforce Development funds via Skills for Care.

During the year, Lynnette Linton, a trustee, was paid £1,125 for services provided to the National and Local Networks project in 2023-24.

page 29

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

13. Agency arrangements

The charity acts as an agent in distributing Workforce Development Funding funds. In the accounting period ending 31 March 2024 the charity received £583,500 (2022: 553,855) and disbursed £583,500 (2022: 553,855) from the fund.

14. Prior year adjustments

The comparative income and expenditure figures have been restated to remove the Workforce Development Funding that Association for Real Change receives and disburses on behalf of Skills for Care. This is now being treated as an agency arrangement in accordance with SORP. The effect of this restatement as at 31 March 2023 was a reduction of income of £553,855 and expenditure of £553,855. There was no impact on the balance sheet or cash flow.

page 30

THE ASSOCIATION FOR REAL CHANGE

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2024

  1. Statement of financial activities - prior year
15. Statement of financial activities - prior year
Unrestricted
Funds

£
Income from:
Charitable activities:
Membership subscriptions
96,432
Grants
-
Training & conferences
576,036
Services to members
287,837
Investments
2,714
Total income
963,019
Expenditure
Charitable activities
Special projects
-
Training and conferences
441,624
Services to members
645,792
Total expenditure
1,087,416

Net incoming/(outgoing) resources
for the year
(124,397)
Balances brought forward
at 1 April 2022
526,127

Balances carried forward
at 31 March 2023
401,730		 Restricted

Funds
£
-
743,259
-
-
-
743,259
731,750
-
-
731,750
11,509
5,778
17,287		 2023
as restated
Total
£
96,432
743,259
576,036
287,837
2,714
1,706,278

731,750
441,624
645,792
1,819,166

(112,888)
531,905
419,017

page 31