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2021-03-31-accounts

TRUSTEES’ ANNUAL REPORT 2021

for the year ended 31 March 2021 Together we can achieve historic change

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CONTENTS

Registered charity No. 288527 (England and Wales). Registered charity No. SC039986 (Scotland). Registered company No. 1778149

FOREWORD

After one of the most unusual and challenging years we’ve faced, it’s my pleasure as Chair to introduce the Terrence Higgins Trust annual Trustees’ Report for 2020-21. It was a year filled with many challenges, but also many, many achievements.

In early 2020, we were ready to approve a new and ambitious three-year strategy to kick start the hard work needed to end new HIV cases by the end of the decade. But, as a direct result of the COVID-19 crisis, we paused the implementation of that new strategy to do what we’ve always done: respond quickly and effectively to the immediate needs of those we’re here to support, with a focus on the most vulnerable.

This responsive approach was only possible because of the dedication of staff and volunteers to look creatively at how to fulfil our mission and support those who need us in the ‘new normal’. This involved a big push towards digital services accessible from anywhere in the world and a renewed focus on our core offering to ensure people living with HIV had the support and information they needed throughout the pandemic. This includes free digital counselling for anyone living with HIV, extended opening hours for our advice line THT Direct, and greater investment for our hardship fund to support those living with HIV who are in poverty. Alongside this, and despite in person events being unable to go ahead throughout the year, our supporters responded in inspiring ways to ensure our services kept going.

But that doesn’t mean we took our foot of the gas in terms of keeping HIV and sexual health on the political agenda and the pushing for the progress we need to see for people living with HIV and those affected by poor sexual health. This included the HIV Commission reporting its findings for ending new HIV cases by 2030 in England on World AIDS Day. Within hours, the Government had committed to implementing key recommendations, including annual reporting to Parliament on progress against the target and the commitment to an 80% reduction in new HIV diagnoses by 2025. Now work continues to ensure the Government’s own action plan is fit for purpose and as ambitious as it needs to be in line with the Commission’s evidence-based recommendations.

Our local services across England, Scotland and Wales continued to be key drivers for meeting our strategic aims, despite the challenges of COVID-19. For example, where there was very limited face-to-face services, the teams in Ayrshire & Arran, Fife, Lanarkshire and Tayside sent out more than 1,200 free HIV home testing kits and more than 3,400 condoms packs. We also launched a new sexual health service in Cambridgeshire and Peterborough to increase STI testing, support people living with HIV and help prevent unwanted pregnancies in partnership with local communities.

We stepped up to address the needs of key communities disproportionately impacted by HIV and other sexually transmitted infections. That included new sexual health information for trans, non-binary and gender diverse people based on feedback from, led by and featuring people from these communities. While our award-winning PrEP Protects campaign utilised digital marketing to raise awareness of the HIV prevention option among Black African people in the UK, after data from the NHS England trial showed more than 95% of those accessing PrEP were gay or bisexual men.

There was also a big focus on normalising HIV testing from the comfort of your own home during the pandemic. This included sending out 10,000 tests as part of our ‘Break the Chain’ campaign in partnership with sexual health clinic 56 Dean Street through our Public Health England funded HIV Prevention England programme. The responsive campaign encouraged testing over the summer as we knew many people weren’t having sex outside their household as a result of lockdown, meaning they were outside the window period for HIV testing and would get an accurate result. Our delayed National HIV Testing Week was the most successful ever, with 18,112 tests sent out – including 10,000 additional tests needed to meet demand. Held at the same time as the broadcast of Channel 4’s ‘AIDS drama’ It’s A Sin from writer Russell T Davies, National HIV Testing Week and

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the progress made in preventing, testing for and treating HIV became hot topics across the entire five-week run of the series. We placed big pieces about HIV testing across all major broadcasters, including on BBC Breakfast, Good Morning Britain and This Morning.

As the inquiry into the Contaminated Blood Scandal continued, we increased our support for those impacted who were former beneficiaries of the Macfarlane Trust. This included restructuring our staff support to better meet need and launching our trauma counselling service offering an initial 24 sessions with a specialist haemophilia and bleeding disorders provider. We also stepped up work to tell the powerful stories of survivors and those lost, as well as engaging Parliamentarians and decision

makers around the inquiry and the urgent need for proper justice. The next 12 months will be vital for ensuring fair compensation for this group and we will keep up the pressure alongside partners to ensure that’s what happens.

As you will see in the pages that follow, the charity was up to the challenge of anything the pandemic threw at it. Which means, whether the loosening of restrictions continue as planned and we return to a more recognisably normal way of life and service delivery or not, we will ensure that we are focused on meeting our strategic aims and ending new HIV cases in the UK by 2030.

Jonathan Mcshane Chair, Board of Trustees

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OBJECTIVES, MISSION AND VISION

Terrence Higgins Trust is at the forefront of the fight against HIV and improving the nation’s sexual health. Our vision, mission and values are set out below.

OUR VISION

A world where people with HIV live healthy lives free from prejudice and discrimination, and good sexual health is a right and reality for all.

OUR MISSION

OUR VALUES

In developing its objectives for the year, Terrence Higgins Trust has considered the Charity Commission’s guidance on public benefit. We believe that the range and accessibility of the services and activities offered and undertaken by the charity clearly demonstrate the public benefit that our work provides.

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STRATEGIC REPORT

Against the backdrop of the COVID-19 pandemic, we’ve had many successes throughout the year, from launching the HIV Commission’s findings, to targeted sexual health campaigns for Black African and trans and non-binary communities.

Throughout, we’ve consistently kept in mind our seven key strategic priorities to focus on our core services, while also nurturing an environment conducive to opportunities and innovation, and supporting our staff to prosper within it.

OUR CHALLENGES

HIV in the UK[1]

● 105,200 people are living with HIV in the UK, with 6,600 unaware of their HIV status

STIs in the UK[2]

1 Public Health England. HIV in the UK in 2019, 2020 report

2 Public Health England. Sexually transmitted infections and screening for chlamydia in England, 2019

WHAT WE’VE ACHIEVED IN 2020-2021

Supporting our service users throughout lockdown

The past year has been an especially difficult time for many of the people that use our services. It may be that those already experiencing hardship and inequalities have been hit harder by this crisis. During the year, demand for our counselling services increased by 57%, and during the first lockdown, applications to our Hardship Fund trebled.

We’ve made dramatic changes to meet this increased demand and to ensure our services have been available throughout lockdown. We’ve worked tirelessly to support people living with HIV through the pandemic by quickly moving our services online, expanding our digital

offerings and increasing the capability of the Hardship Fund.

As the year went on, we published vital advice and information specifically for people living with HIV, alongside guidance for having sex while managing the risks of coronavirus. Together with sexual health clinic 56 Dean Street, our Break the Chain campaign drove testing at home during lockdown. Meanwhile, we successfully lobbied for people living with HIV to be able to access the COVID-19 vaccine through their HIV clinic, vital for those who hadn’t discussed their status with their GP.

Throughout, our supporters, volunteers and staff have shown the same incredible dedication as they have done in previous years.

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Gareth Thomas: smashing stigma

In October, Gareth Thomas became our newest patron in recognition of all the work he’s done with us to transform public perceptions of HIV.

Our year in numbers

Our service users

Our campaigns

Our volunteers

Our supporters

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

ACHIEVING OUR 7 KEY STRATEGIC PRIORITIES: OUR YEAR IN OVERVIEW

With implementation of our three-year strategy paused due to the COVID-19 crisis, we put in place seven short term priorities to enable us to respond quickly and effectively to the immediate needs of our service users.

OBJECTIVE #1:

Our work towards ending HIV transmission in the UK by 2030.

OBJECTIVE #2:

We’ve supported people to live well with HIV and manage the impact of COVID-19.

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OBJECTIVE #3:

We’ve worked to ensure that HIV and sexual health are not forgotten by key decision makers, as COVID-19 has threatened progress.

OBJECTIVE #4:

We’ve worked to challenge stigma associated with HIV and poor sexual health and end the discrimination experienced by people living with HIV.

OBJECTIVE #5:

We’ve delivered high quality HIV and sexual health services in local communities.

OBJECTIVE #6:

We’ve worked to ensure that the charity remains financially resilient.

OBJECTIVE #7:

We’ve worked flexibly and boosted digital services.

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ORDER A FREE HOME TEST StartsWithMe.org.uk

Produced by Terrence Higgins Trust for . Terrence Higgins Trust is a registered charity in England and Wales (reg. no. 288527) and in Scotland (SC039986). Company reg.no. 1778149. Code: 2021002.

Photography by THOMAS KNIGHTS

AIM ONE: ENDING HIV TRANSMISSION AND IMPROVING SEXUAL HEALTH

We haven’t let COVID-19 derail our efforts to finally stop new cases of HIV. New HIV diagnoses have continued to fall and this shows that what we’re doing is working.

New HIV data from Public Health England showed a 10% drop in new HIV diagnoses in 2019, driven by an 18% fall among gay and bisexual men. By harnessing all the progress we’ve made in preventing and treating HIV, we can fulfill our ambitions to achieve a world first: to become the first nation to achieve the UN AIDS target of no new HIV diagnoses by 2030.

OUR HISTORIC OPPORTUNITY TO END NEW CASES OF HIV WITHIN THE DECADE

‪The launch of the HIV Commission report on World AIDS Day gives us a roadmap to making our ambitions a reality. Established by us alongside National AIDS Trust and the Elton John AIDS Foundation, the Commission was tasked with making clear recommendations for ending new HIV cases in England by 2030. Testing and more testing were the central recommendations with a call for HIV testing to happen whenever blood is taken right across our NHS – no matter your gender, sexuality or ethnicity.

Following launch, we secured game-changing commitments from the Government to commit to actions that will achieve that vision, as well as clear HIV targets.

Through our local services we increased the provision of free condoms by post, with some services also broadening eligibility or offering free HIV self tests by post to target groups in their areas.

Thanks to the National Lottery Community Fund, we were able to offer free HIV self tests to people in key demographics living in parts of England where there was otherwise no option for HIV testing by post. As part of this work, we launched the UK’s first test finder for free online HIV tests. This enables people to find free local online HIV testing services using a simple postcode search.

TACKLING SEXUAL HEALTH INEQUALITIES

In September, PHE data showed further increases in sexually transmitted infections (STIs), with data showing a 26% rise in gonorrhoea, and an overall increase of 5% in new STI diagnoses in 2019.

We repeated our calls for movement on the Government’s sexual health strategy. We need a clear plan for tackling consistently high rates of common STIs – as well as solutions to the sexual health inequalities which are at risk of becoming more entrenched as cases increase. The pandemic may also have contributed to further exacerbating these inequalities.

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Last year, we won a victory in our fight for compulsory LGBT+-inclusive RSE lessons in schools. We have kept up the pressure since to ensure that the appropriate funding, training, and resources will be provided so that teachers are well equipped to provide comprehensive and inclusive RSE.

Black communities

People of Black African ethnicity are one of the groups most affected by HIV in the UK.

Throughout the year, we demonstrated our commitment to tackle the sexual health inequalities Black communities continue to face.

Our‪ PrEP Protects campaign focused on raising awareness of PrEP, the HIV prevention tool within the Black African community.

In Bristol, we trialled the Champions of Change programme to address racial inequalities in sexual health. Community-led responses are most effective in creating changes, and recognising the expertise and leadership of

our community members and service users is central to this approach.

On an organisational level we’ve established a Racial Diversity Group to lead change across the charity.

Trans and non-binary communities

We launched new trans-specific sexual health information, led by and celebrating trans, nonbinary and gender diverse people. This followed a Terrence Higgins Trust survey that gathered new data from more than 200 trans, non-binary and gender-diverse people and showed that the sexual health needs of these groups are not currently being met.

It was an incredibly challenging year for trans and non-binary people in the UK, including attacks on the provision and accessibility of their healthcare. We stand proudly with the trans community and support trans equality as inequalities and marginalisation only serve further to entrench sexual health inequalities.

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OUR CAMPAIGNS CHANGE LIVES

Our impact in numbers:

PREP

The roll out of the game-changing drug PrEP is finally happening in England, following the release of funding to local authorities. It’s also available on the NHS in Scotland, Wales and Northern Ireland.

We are now urgently campaigning for PrEP to be available outside of sexual health clinics. PrEP is playing a significant part in the decline of new HIV transmissions over the past few years, in particular among gay and bisexual men. This game-changing drug needs to be available to all who need it, and that means widening the net in accessibility and increasing awareness in Black communities with our PrEP Protects campaign.

NATIONAL HIV TESTING WEEK ( NHTW )

This year was the biggest ever for our flagship NHTW campaign, delayed from November to February 2021 due to COVID-19. It focussed on testing for HIV at home during the pandemic, with vital support from celebrities, influencers and activists.

NHTW had its most successful day ever with a record-breaking 8,200 HIV test kits requested on Monday 1 February. Popularity for HIV test kits was so high during this year’s event that Public Health England funded an additional 10,000 kits, enabling even more people to know their HIV status.

Channel 4’s drama It’s A Sin from Russell T Davies coincided with the campaign and influenced conversations about HIV over the following weeks and months. The show covered themes about HIV and testing and we used its mainstream and social media popularity to amplify the NHTW campaign and drive more tests.

Visits to the Terrence Higgins Trust website more than doubled since broadcast of the show began, with the big interest in our pages on our history and our work in the 1980s as well as people teaching themselves about the virus and how it’s transmitted.

Our THT Direct helpline saw a 30% increase in calls the day after the first episode, providing support and advice around HIV and sexual health.

More than 60 MPs tested for HIV at home, showing how easy it is to test, and engaging

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Leadership and sector support

Most frontline community HIV services ground to a halt in the first lockdown of 2020. There was little guidance on adapting to the new circumstances and models of service delivery.

To support good practice during this incredibly difficult first lockdown, through HIV Prevention England (HPE) we developed and shared a new framework for delivering Community-Based HIV and Sexual Health Services during COVID-19.

We included guidance on safely providing face to face services, online information and advice services and remote-assisted self testing. HPE also supported and promoted the Community HIV Testing Toolkits developed by the National AIDS Trust (NAT), and hosted a number of informative blog articles and well-attended webinars on increasing PrEP access and HIV testing.

in important discussions about the HIV Commission’s recommendations regarding the normalisation of and increased access to testing. Messages of support came from across government, including tweets from the Health Secretary Matt Hancock as well as the Prime Minister.

Celebrities and influencers including Dr Ranj, Great British Bake Off star and podcaster Michael Chakraverty, Nigerian sexologist Sanasi Amos, influential trans writer Juno Dawson, and

many more promoted the campaign through social channels via takeover events and video messages on the importance of HIV testing.

While digital testing proved to be a success, it is important to ensure physical communitybased testing resumes as soon as coronavirus restrictions ease as it’s a key element to support marginalised people who have limited access to testing online.

TIME TO TEST

In June-July 2020, we worked with sexual health clinic 56 Dean Street to make the most of the unexpected opportunity the first COVID-19 lockdown had presented to break the chain on HIV transmission.

Our new research found that 84% of people weren’t having sex outside their immediate household, which meant – after a month or more without a new sexual partner – it was the ideal time to test safely at home.

Through HIV Prevention England (HPE), we worked with Public Health England to release nearly 10,000 postal tests and developed a brand new online test finder to help you access a test wherever you are in the UK. Of 9,400 orders of self sampling test kits, 59% were returned and had an HIV reactivity rate of 0.6% and a syphilis reactivity rate of 2.1%.

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TRANS & NON-BINARY SEXUAL HEALTH

We launched new trans-specific sexual health information, led by and celebrating trans, non-binary and gender diverse people. This followed new data from more than 200 trans, nonbinary and gender-diverse people in our national survey that showed the sexual health needs of these groups are not currently being met.

Trans people often find that patient information that hasn’t been written with them in mind and are left to use guesswork. It was clear that tailored sexual health information for trans people was desperately needed and it should be available online in a way that’s easy to understand.

The new web pages and print leaflet celebrated and reflected the diversity within the trans community, featuring trans and non-binary people from different cultural backgrounds with different body types and identities.

The new health information provides up-todate HIV, sexual health and contraception information and advice. This includes the impact of hormones and surgery, considerations when taking HIV prevention pill PrEP and how to navigate happy, healthy sex.

Trans and non-binary people co-produced and feature in the resource. Ensuring the resource is trusted and represents the diversity within the trans community is key to its success. The resource is peer-reviewed by sexual health clinician Dr Kate Nambiar and our Medical Director, Dr Michael Brady.

The previous web pages on sex as a trans woman and sex as a trans man on our site – which this new, more comprehensive information now replaces – were two of the most popular on the site, with over 30,000 visits a month from people across the globe. This includes countries where access to sexual health information and services is far more limited.

We launched the new resources in December with targeted social media promotion and press coverage in the Metro, Pink News, and op-eds in Attitude and Diva magazines. In the first few months after launch, our Twitter campaign received 3,162 clicks and our web pages had 21,791 page views .

PREP PROTECTS

Our ‪ PrEP Protects campaign focuses on raising awareness of PrEP, the HIV prevention tool within the Black African community. Almost half (44%) of new HIV diagnoses among heterosexuals in the UK are Black African men and women – despite making up less than 2% of the British population.

But access to PrEP among Black Africans through the NHS England run trial shows worryingly low uptake. One in seven of every HIV diagnosis in the UK in 2019 was among people of Black African ethnicity, but they make up only 1.5% of people accessing PrEP through the NHS from 2017-20.

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between key medical experts via radio phone-ins, live video sessions on social media, targeted TV chat-shows and influencer-led conversations via relevant podcasts.

Ads sent people to the It Starts With Me website where they could use a short interactive quiz to self-assess if they may benefit from PrEP.

PrEP Protects impact:

PrEP PROTECTS. PrEP is a pill that stops me getting HIV.

----- Start of picture text -----
Find out more at:
StartsWithMe.org.uk
Produced by Terrence Higgins Trust for .
Terrence Higgins Trust is a registered charity in England and Wales (reg. no. 288527)
and in Scotland (SC039986). Company reg.no. 1778149. Photography by THOMAS KNIGHTS
----- End of picture text -----

Evidence suggests that Black African people are less likely to access it because they haven’t heard of PrEP and its benefits[3][1] .

Our campaign aims to drive up awareness of the pill with the message ‘PrEP protects’. It was developed with the input and support from people of Black African ethnicity.

The campaign is part of the HIV Prevention England programme funded by Public Health England.

One of the key barriers to increasing access is PrEP being delivered exclusively via sexual health clinics. It’s believed that availability in GP surgeries, maternity care services and pharmacies would help to increase both awareness and uptake. Having information about PrEP in a range of different languages is also vital.

Launched during Black History Month, the campaign reached different Black African populations through influencers, targeted digital ads and outdoor posters and billboards, Q&As

3 An independent It Starts With Me evaluation survey found that only 54% of BA had ever heard of PrEP, compared to 84% of GBM.

----- Start of picture text -----
PrEP PROTECTS.
PrEP is a pill that stops
me getting HIV.
Find out more at:
StartsWithMe.org.uk
Produced by Terrence Higgins Trust for .
Terrence Higgins Trust is a registered charity in England and Wales (reg. no. 288527)
and in Scotland (SC039986). Company reg.no. 1778149. Photography by THOMAS KNIGHTS
----- End of picture text -----

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AIM TWO: EMPOWERING PEOPLE TO LIVE WELL WITH HIV

Treatment now means that people living with HIV can live long and healthy lives, free from the fear of passing on the virus. But stigmatising attitudes can endanger the health and wellbeing of people living with HIV. In the last year, our focus has been on empowering people to live well, and looking to innovative ways that we can challenge HIV stigma.

105,200 people are living with HIV in the UK, and the past year has thrown up many challenges. COVID-19 has disrupted vital treatment and care lifelines that are the groundwork to good physical, emotional, and mental health for people living with HIV.

Over the year, we’ve continued to provide vital services to help people cope with a diagnosis, to understand treatment and the importance of adherence. We launched Terrence Higgins Trust At Home and were able to offer face-toface counselling, youth counselling delivered in-person, and an online counselling service throughout the year. Our THT Direct helpline expanded its opening hours to help support people living with and affected by HIV.

Stigma can also threaten uptake of testing and prevention services. Around 6,600 people are living with undiagnosed HIV, and together with those most at risk of infection, they have been made more vulnerable by the pandemic and the lack of access to HIV testing services across the UK.

By designing our support services together with the people who use them – from those that have lived with HIV for a long time to those diagnosed today – we strive to provide the right support at the right time.

OUR VOLUNTEERS

Despite volunteering looking very different across the year, we have continued to innovate, create and adapt projects throughout the year. Our dedicated and hard-working 123 volunteers contributed nearly 8,500 hours to Terrence Higgins Trust projects, an equivalent to almost 5 full time working staff.

Volunteers undertook a variety of roles as almost all face-to-face volunteering had to be paused due to social distancing restrictions. Volunteers helped expand peer support online, grow fundraising opportunities, and adapt counselling and Positive Voices offerings online.

Alongside volunteering, we ran a number of wellbeing events and online training for volunteers to help support them across the turbulent year. We have 220 registrations of interest from people keen to volunteer with us.

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TERRENCE HIGGINS TRUST AT HOME

Our online hub Terrence Higgins Trust At Home was developed rapidly in response to the pandemic. As well as free counselling services, we offered social events, information webinars, and group support sessions which proved to be especially important for people who are isolated. These services are critical to so many who trust in us to keep them safe and informed, especially for those whose health relies on regular access to the NHS for treatment.

We hosted popular web pages with regularly updated advice around the coronavirus, from advice for people living with HIV around shielding in the early stages of the pandemic, to information on vaccines more recently. Our Living Well team introduced a range of workshops for people living with HIV delivered via Zoom, which we promoted through our website and digital advertising.

We expanded our provision of online counselling for people living with HIV and completely rebuilt our peer support forum, working with users to select and develop a modern platform to replace our previous system, myHIV.

We expanded our online services with chemsex support through a pilot from August and the Macfarlane trauma counselling service.

Therapies Service

With disruption of our in-person counselling delivery, in April 2020 we moved the entire counselling service online, offering free counselling to people living with HIV over the

age of 18. Staff and volunteers worked with tireless commitment to navigate new mediums for delivering services, such as counselling remotely through Zoom with webcam, audio and instant messaging.

The new consolidated online counselling service brought together face-to-face counselling, youth counselling delivered in-person, and an online counselling service. It was part funded by The Elton John Aids Foundation (EJAF).

Over the year, we have provided 412

beneficiaries over 3,393 hours of interventions.

Service users presented with issues related to coming to terms with and learning to live with an HIV diagnosis, amongst others. About 20% presented with depression as the main issue, 17% around chemsex, with others including anxiety, self-harm, relationship issues and psychosexual concerns.

My Community Forum

myHIV, the online peer support forum underwent redesign and relaunch with the new name, My Community Forum. Members are now able to private chat live with each other, as well as group chat and sending private messages enabling a safer, more interactive and supportive community.

Since the launch in October, membership has risen to over 600 members, with 314 threads, and 1,655 posts. We partnered with the Foodchain to deliver live chat diet and nutrition advice.

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Work and Skills

We moved our personal development, work and skills programme online, with 40 clients attending webinars and catch up groups graduating online in June 2020. With 35 active mentor matches, new clients continue to receive online mentoring. A new series of work and skills webinars with a total 69 attendees focussed on issues including job insecurity, healthy home working habits, building confidence, successful applications and interviews.

Living Well

Our living well services continued to support the diverse HIV community with varied health needs, including the complexities of being long term diagnosed, and offering specialist services for those growing older.

Before96 , peer support for those long term diagnosed, and Drop In and Chat , an informal space to connect with others, both moved online and continued to be well attended throughout the year. Living Well in Lockdown were a series of 26 wellbeing webinars focused on looking after yourself, managing change, building resilience, motivation, emotional and physical wellbeing.

Eight participants completed our 6-week learning and support Chemsex programme for gay and bisexual men living with HIV looking to make a positive change to their chems use.

Hardship Fund

We expanded the vital Hardship Fund with volunteers donating 777 hours to the programme ensuring more people receive help when they need it most. Applications peaked in May and June during the first coronavirus lockdown, and throughout the year there were 538 successful applications.

THT DIRECT

Last year, we had over 13,752 enquiries to our confidential free helpline THT Direct on a range of subjects related to HIV and sexual health. Nearly 25% of our enquiries were via email or online, sometimes from different parts of the world.

In May, the helpline service reopened on weekends after six and a half years and returned to become a daily support service. With the exception of 5 weeks in September and October, we delivered the helpline service remotely from home. The advice team helped 747 service users , almost double the year before (422). The key subjects called about were: HIV transmission; HIV testing; PrEP and PEP; and STIs.

Despite the challenges of adjusting to the pandemic, in February the Generalist Advice team was awarded with the Advice Quality Standard.

MACFARLANE PROGRAMME

Our work to support and advocate for those who were either infected or affected by HIV as a result of the contaminated blood scandal continues to evolve. During 2020-21, we have restructured our staff support and recruited to the roles of Strategy and Advocacy Manager and a Community Engagement Officer.

Our trauma counselling service launched this year, offering an initial 24 sessions with a specialist haemophilia and bleeding disorders provider and being the preferred option taken up by most of our service users.

We’ve developed a number of blogs and interviews telling powerful stories of several people within the community as part of the Last Chance for Justice series. They have been an important tool to engage politicians and officials. We are now in the process of developing our relationship with The All-Party Parliamentary Group on Haemophilia and Contaminated Blood, as well as other politicians, organisations and institutions.

The next 12 months will be vital for getting justice and fair compensation for this group as the Infected Blood Inquiry and Review of Compensation Frameworks conclude. Never has it been more important for Terrence Higgins Trust to ensure that the voices of those infected and affected with HIV as a result of contaminated blood products are heard.

Counselling Service Supporting former Macfarlane Trust beneficiaries

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THT Scotland

It’s been a year of considerable activity for THT Scotland, despite the challenges of COVID-19.

Across all of our projects and thanks to financial support from NLCF and the Scottish Government, our team has been able to provide a suite of emergency social care support for people living with HIV or Hep C who have been struggling in COVID-19 isolation.

Throughout various stages of lockdown, we have provided food parcels for more than 300 people, delivered HIV medication and other essentials such as sanitary products and energy meter top ups for around 220 people, and supported over 50 applications to the hardship fund.

We worked in collaboration with Connecting Scotland to help keep people connected by supplying tablet computers, mobile internet connections and online ‘Digital Champion’ peer support to around 150 of our most digitally isolated clients across 12 local authority areas.

Peer Support Scotland

Our flagship living well programme for people living with HIV or Hep C, Peer Support Scotland, was able to rapidly adapt to offer a range of remote support, skills development and group work activities for around 500 service users. Staff worked in close collaboration with beneficiaries and numerous partners to deliver a programme of activity that is truly user designed and led. In November, the team received the ultimate endorsement of a successful approach when NLCF awarded a further three years’ worth of funding.

Driving impact through collaboration

In NHS health board areas of Ayrshire & Arran, Fife, Lanarkshire and Tayside, our contractual health promotion and blood borne virus support partnerships have been able to diversify in response to severe disruption to face-to-face services. Screening, prevention and education activity was stepped up with the delivery of more than 1,200 free home testing kits for HIV, more than 3,500 packs of free condoms by post and reaching wide-ranging online audiences with training and development programmes.

For much of the year, staff have also been continuing to deliver thoroughly risk assessed and COVID-secure in person support for those most in need, such as assistance to attend hospital for Hep C treatment.

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AIM THREE: AMPLIFYING THE VOICES OF PEOPLE LIVING WITH HIV

The lived experiences of people with HIV is at the heart of our work. They guide the services we offer and how they are designed and delivered. We work tirelessly to ensure the voices of people living with and affected by HIV are heard by decision-makers across national and local government.

USER INVOLVEMENT: OUR CO-PRODUCTION JOURNEY

Over 1,500 hours were given by over 130 new and existing service users to help shape services and projects in a successful second year of our three-year programme “Amplifying our User Voice’, funded by The National Lottery Community Fund.

The programme continues to support us to test new approaches to deliver activities that reflect the changing needs of our service users; both those living with HIV and those accessing our sexual health services. We’re building stronger, reciprocal relationships with those who chose to give their time flexibly to the charity, as evidenced by external evaluation this year by NCVO.

Our key activities were:

In the coming year, we hope to further deepen user involvement and use it to shape our systems and processes across the charity. We’ll be trialling the Champions of Change model in a few more service areas after a successful trial in Bristol to address racial inequalities, with a view to developing a model that can be shared more widely across the charity. Not only will this enable us to ensure that the people who use our services are at the forefront of developing and delivering them, it will embed a racially inclusive approach to our service delivery.

[I got the] feeling that I’ve been listened to and that I’m not alone essentially, that I’m able to have a say in the services that positive people access and seeing how that’s changed and how that has made a difference and how it does make a difference, and not just to me but to other people too.

Service user

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It was…very moving to hear [speaker] talk about his experience. There is still so much misinformation about HIV and AIDS, and so little understanding, it was really good to learn more and build my understanding. I also feel like I could correct others who had incorrect information and speak with confidence about the issue.

Local Authority Social Care worker – Positive Voices audience member

POSITIVE VOICES: USER-LED DEVELOPMENT

The COVID-19 pandemic meant that all face-to-face delivery of Positive Voices sessions was paused across the charity for several months in 2020. We seized the opportunity to collaborate with speakers to develop and deliver an online offering of Positive Voices, which has gone from strength to strength and supported us to deliver the busiest World AIDS Day for Positive Voices yet.

Despite the pandemic, over 5,255 people were reached through 119 Positive Voices sessions this year. Positive Voices speakers shared their time, skills and experiences to work with staff and move the project entirely online. Speakers co-created storytelling and public speaking training and transitioned Positive Voices to an entirely user-led project.

Going forward, we’ll aim to capitalise on the engagement with speakers and audiences over the last year to deliver talks in new and innovative ways with new audiences.

Being a Positive Voices Speaker has been incredibly empowering for me. It has

encouraged me to learn more about HIV and be ready to talk about HIV in all types of interaction and involvement. It has really encouraged me to challenge stigma whenever I see it.

Positive Voices speaker

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

OUR CAMPAIGNS AMPLIFY THE VOICES OF PEOPLE LIVING WITH HIV

Can’t Pass It On

The next vital phase of our Can’t Pass It On campaign will target healthcare professionals and help educate them around U=U and communicating the vital message that HIV can’t be passed on by people on effective treatment. The pandemic disrupted launch which is scheduled for the coming year.

Their Story, Your Choice

This year, we began work on a new project to extend Their Story, Your Choice , a pioneering new way of using film to tackle HIV stigma and encourage testing in Black African communities, to gay and bisexual men. Launch is due in summer 2021.

World AIDS Day

This World AIDS Day, we saw the launch of the HIV Commission report and publications of its findings. It gave us the opportunity to help people living with HIV to share their own stories about why the goal of ending new cases of HIV matters so much. HIV activist Mercy Shibemba told inews that as a young person growing up with HIV, the hardest part of living with HIV was other people’s outdated views.

Blood donation rules

After years of campaigning, in December, 2020, the Government announced changes to the blood donation rules to come in to effect in summer 2021. The new rules will see the end of blanket deferral periods based on gender or sexuality while also ensuring the UK’s blood

supply is safe. This success means many gay and bisexual men will be able to donate blood for the first time. We’ll continue to campaign for an end to discriminatory restrictions in England which predominantly affects Black communities’ ability to give blood.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

OUR NEXT STEPS

As restrictions on socialising ease, we will continue to provide guidance on how to manage the risk of COVID-19 and maintain good sexual health through our campaigns, as well as providing high quality HIV and sexual health services in local communities across the UK.

Since the HIV Commission published its report into ending new cases of HIV in England by 2030, we’ve worked hard to disseminate its findings and press for widespread HIV testing across society. Earlier in the year, a record-breaking National HIV Testing Week with more tests ordered than ever before alongside unprecedented parliamentary engagement and the popularity of TV drama It’s A Sin , kept up the visibility.

While we welcome this increased awareness of HIV and enthusiasm for HIV testing, there are glaring holes in accessibility. We need to work to ensure that people can get a test easily when they want one. As the commission report itself pointed out, it is often marginalised communities that face the biggest inequalities. We have much work to do to ensure that we address barriers for women and in particular women of colour.

Dame Inga Beale – Chair of HIV Commission

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

STANDING TOGETHER WITH OTHERS, WE CAN MAKE CHANGE HAPPEN

Throughout the year we’ve worked collaboratively with other HIV organisations, and we’ll continue to do so. Alongside National AIDS Trust (NAT) and Elton John AIDS Foundation, we brought the HIV Commission to fruition. We are now building a coalition of support to back our calls to make sure the government delivers on its new action plan to end new cases of HIV.

This coming year will be a momentous one in the fight to end the HIV epidemic once and for all, and we will work tirelessly to ensure this historic opportunity is not lost by decision-makers.

FORTY YEARS SINCE THE WORLD CHANGED FOREVER

This year marks 40 years since the first reported cases of HIV. Since, the epidemic has robbed us of more than 35 million lives worldwide. Our focus is on making this the last decade where we see new cases of HIV.

While medical developments have been incredible, stigma and discrimination remain a

huge barrier to progress and achieving our goals. The coronavirus pandemic has exacerbated many of the inequalities faced by some communities. It has been a difficult year for many of the people that use our services, reflected in huge increases in demand. During the year, demand for our counselling services increased by 57%.

We’ve made dramatic changes to meet this increased demand and to ensure our services are accessible throughout lockdown. It has been challenging for all staff and volunteers, but they’ve shown commitment, resourcefulness and innovation at every step to keep them up and running.

This year marks the final year of the National HIV Prevention programme funded by Public Health England.

A NEW STRATEGY FOR GOING FORWARD

We continue to face an uncertain world as we emerge out of COVID-19 restrictions. We bring new skills and abilities and ways of working. We also perhaps bring a greater understanding of global solidarity and the need to act together – pandemics show no heed to boundaries or countries and those already marginalised suffer more inequality and endure the greatest burden.

We have started work on a new strategy that will reflect everything we have learnt. We hope to harness the feeling of kindness and solidarity evident during this difficult time, and plot our next steps with our services users at the core.

The importance of good mental health and wellbeing has shone out throughout the year, and it’s vital we work to ensure people living with and at risk of HIV and poor sexual health can live well. Tackling HIV stigma through our campaigns will be an important part of the coming year. Stigma and discrimination continue to be real barriers for people to come forward and get tested.

There have been huge changes in the way we work, some of which we hope will be temporary, others we will continue with by offering a hybrid model of service delivery, mixing both online and offline, which is key to expanding our reach to everyone who needs our support.. We’ll also continue to innovate through our user involvement work, bringing the voices of those who use of services into the heart of service design and provision and newly, fundraising.

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GROWING SUPPORT AND INCOME

In this challenging year, the support of so many people up and down the country has been even more vital than ever. With higher demands for our services due to the pandemic, our supporters have come together to ensure that nobody gets left behind.

By communicating the needs of people living with HIV and the challenges they were facing at this time, we saw an increase in support from individuals, which is a testament to their ongoing generosity.

We had planned a year of growing our fundraising activity, however many activities that involved face-to-face fundraising had to be put on hold due to social distancing restrictions. Whilst this meant we could not drive this growth, we have kept our income at a consistent level with the year before, raising just over £5m to deliver our work to make HIV transmission a thing of the past, support those who are living with HIV, and drive improvements in better sexual health for all.

To everyone who supports the work of Terrence Higgins Trust, thank you. Our work would not happen without you.

SUPPORT FROM INDIVIDUALS

This year, we have developed a new message to sit across all of our fundraising activities; Together We Can, uniting all of our audiences in our mission. The success of It’s A Sin on Channel 4 gave a real boost to our efforts as well, and has brought our work to the attention of many new people.

Individuals who give money or participate in fundraising activities are the bedrock of our fundraising programme, and we have over 14,000 active supporters, of whom 2,800 are new supporters over the past year with 6,500 people giving a regular gift.

This year, £1.2m has been given by people in response to our appeals or by giving a regular gift, which is an increase of 10% on the previous year. We have been looking at new ways to

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TRUSTEES, REPORT AND FINANCIAL STATEMENTS 2021 27

Philip Normal’s La t-shirt

A special thank you goes out to Philip Normal, designer and Mayor of Lambeth, who used the catchphrase in TV drama It’s a Sin to create the La t-shirt to raise money for the charity. Sales of the shirt are nearing 30,000 with close to half a million raised so far. The t-shirt has been worn by stars including Amanda Holden, Dermot O’Leary, Dr Raj Singh, Sir Ian McKellen, Sadiq Khan and Russell T Davies.

Donations from Philip’s It’s a Sin inspired range will support people living with HIV in the UK, help us to end the stigma and discrimination they face, and contribute to our work towards ending HIV transmission in the UK once and for all. Philip also features in the charity’s upcoming HIV stigma-busting campaign, telling his story and the challenges he’s faced as a gay man living with HIV.

engage with our supporters, and keep them informed of the impact that their gifts are having.

A gift in your will is the ultimate way of ensuring that the work you care about can carry on after your death. This year, 73 people left a legacy, which amounted to over £1.6m in gifts. We are so grateful to the people who have chosen to support our work in this way; the work we do is a tribute to their generosity.

Whilst we have missed seeing our supporters at runs and marathons across the UK and beyond, we’ve been thrilled to see people organising events themselves. In particular, our walking programme has been a huge success with supporters organising sponsored walks in their own towns and cities, and we look forward to getting together with them this year in person.

We’re currently recruiting a team of fundraising ambassadors in communities around the country, with 50 people already on board.

Our supporters are an active bunch, and this year has seen them shaving their heads, working out on Wednesdays, quizzing and playing bingo – all online! We can’t wait to do it in person.

OUR FRIENDS

We are so fortunate to be able to count on the support of our long-standing network of friends, and other major supporters – an amazing group of people who have made a long term commitment towards making our work happen. This group has contributed over £525,000 towards our work this year through their gifts and our annual auction, this year delivered online.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

CHARITABLE TRUSTS

We have been fortunate to receive the support of many charitable trusts this year, particularly in the face of the extenuating circumstances

brought on by the COVID-19 pandemic. Key amongst these has been the National Lottery Community Fund, which has not only funded our work to amplify the voices of our beneficiaries, but also provided additional funding to aid our COVID response work. Similarly, the National Lottery Community Fund in Scotland has staunchly supported our Peer Support Scotland programme, as well as providing funding towards our COVID response in Scotland.

We have also welcomed donations from a number of Charitable Trusts who are new to Terrence Higgins Trust towards our project work, such as THT Direct, our Ageing Programme and our work with young people in Luton.

CORPORATE PARTNERS

Working with our friends in the commercial sector has been of huge importance to us this year. Again the pandemic has meant that we’ve not been able to get together with our friends and supporters, but nonetheless, we’ve seen support from companies such as Barclays, MAC, Viiv and Gilead.

STATUTORY FUNDING

Much of our work in the community to deliver sexual health and HIV services is delivered through statutory contracts. This year we delivered contracts worth £5,731,000 to people all across the UK. We implemented new services in Cambridgeshire and Peterborough.

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LOOKING FORWARD

The past year has been difficult, but has also shown that our cause is still so important to so many who wish to help. We are now looking forward to the future. We’ve spent much time this year planning for growth in 2021-22, and will be delivering lots of new activities and pilots to both attract new supporters and give our valued existing supporters new ways to get involved.

HOW WE RAISE MONEY

Terrence Higgins Trust is committed to providing the best possible standards for all our supporters. Our fundraising activities are carried out respectfully and we are a member of the Fundraising Regulator (FR) and the Chartered Institute of Fundraising, working within their agreed guidelines.

We follow the Chartered Institute of Fundraising’s ‘Treating Donor Fairly Guidance’ to ensure people in vulnerable circumstances are treated in an appropriate way.

We use third party suppliers to undertake telephone fundraising and payroll giving fundraising on our behalf. All of these suppliers are subject to agreeing to our own robust terms of engaging with beneficiaries. Our telephone fundraising agency and payroll giving agency also supply a vulnerable persons policy as part of those contracts.

Our telephone fundraising agency is a member of the Institute of Fundraising and the Direct Marketing Association. All work carried out with third party fundraising organisations adheres to legal requirements and best practice guidelines.

CHARITY FUNDRAISING: REPORTING BY THE TRUSTEES

The Trustees have been guided by six key principles:

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FINANCIAL REVIEW

THE OVERALL PICTURE

As with most charities in 2020/21, Terrence Higgins Trust was severely impacted by COVID19. The Board of Trustees agreed an emergency budget to ensure essential services could continue despite the risks of reduced income, and took advantage of the UK government’s job retention scheme (“furlough”) to ensure that staff could be retained in roles where possible.

In 2020/21, we sustained an operational deficit of £0.2 million compared to a budgeted deficit of £0.6 million. We also saw a growth in the investment portfolio of £1.6m million, thus creating an overall surplus for the year of £1.4 million before transfers. This growth in investments generally as markets recovered after the initial impact of the pandemic has also impacted our pension fund deficit to the positive, meaning we were able to transfer £0.7 million from the pension fund deficit back into general reserves.

Retained surplus for the year was £2.1m.

Terrence Higgins Trust has continued into 2021/22 in the same prudent vein. We acknowledge that there will be continued costs to the charity in this year as we emerge from the most severe impacts of COVID-19. As such the trustees have agreed a deficit budget for the current year to aid the transition. At the same time the board is refreshing its 3-year strategy in light of COVID-19 and the staff restructure.

There is continued growth in the investment portfolio and we are confident the recent investments in the Income Generation team, which we had anticipated would generate increase revenues in 2019/20 and 2020/21 will now be seen in future financial years.

In 2020/21, the external financial environment around the organisation changed dramatically.

We saw a £3.8m (35%) decrease in our projected income for 2020/21. Like all other charitable organisations, we had to implement emergency financial measures to ensure we were able to maintain our underlying financial stability.

We are now ensuring that we are able to maintain the underlying financial sustainability of the organisation so that as we move out of the crisis we are able to recover effectively and continue to lead services for the sector and our service users.

WHERE OUR MONEY COMES FROM

Our operational income for 2020/21 totals £10.9 million compared to £12.0 million in 2019/20. This is a small reduction in operational income range for 2020/21 of £1.1m. This is due to a number of small variances across the full income portfolio.

£m

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DONATIONS AND LEGACIES

In 2020/21, donations and legacies contributed £4.7 million to overall income. This is a decrease from £5.0 million in the previous year.

This is primarily due to the £0.2m fall in restricted funds between 2020/21 and 2019/20.

There has been stability in the unrestricted income profile, with the overall position of £3.9m in 2020/21 and in 2019/20.

There has been a marked increase in unrestricted funds from Corporate and Trusts but this is unfortunately offset by decreases in community and individual donations resulting from the impact of COVID-19 in the financial year. In addition, there is a reduction of £0.1m in the legacy pipeline in 2020/21.

CHARITABLE ACTIVITIES SUPPORTED BY STATUTORY INCOME FROM LOCAL GOVERNMENT AND HEALTH ORGANISATIONS

Statutory income in 2020/21 is £5.7 million and makes up 52% of our overall income. In real terms, this is a fall of £0.2 million against 2019/20. Whilst this is a slight decline, this is being managed actively as part of our budget planning.

2020/21 saw many of the contracts rollover due to the pandemic, but this also meant that there were limited new contracts in the year. As a result, there will be a large number of new contracts in 2021/22. We did enter into a new contract in Cambridgeshire and Peterborough for general sexual health services (local authority commissioned, not with a clinical partner).

We also started to see a decline in Wales’s services where health boards are taking services in-house. At the tail end of 2020/21, we have seen potential for more provision in the services in the North of England. We were selected as the preferred partner with Sodexo for services in prisons which would come to fruition in 2021/22.

Additional funding was received to support COVID-19. The Scottish government provided funding for poverty alleviation so we could support fuel and food provision to those in need. We were also able to repurpose some of lottery grant into COVID-19 support.

OTHER TRADING ACTIVITIES

There was a significant reduction in income from trading activities in the year as a direct result of COVID-19. Income in 2020/21 was £0.2 million compared to £0.7 million in 2019/20. Activities include shop sales, fundraising events, sponsorship, rent, room hire and catering all of which were affected by the pandemic.

OTHER INCOME

Operational income in this area is primarily from administration fees, training and paid for services (HIV self testing programme). Overall this income is £0.3 million, which is a reduction of £0.1 million compared to the last financial year. In part this was due to a decrease in investment income and in part due to a reduction in activities as a result of COVID-19.

HOW WE SPEND OUR MONEY

As noted above, as a result of the pandemic, we put in place an emergency budget for 2020/21 in order to ensure that essential services could be covered while complying with all government restrictions. Total expenditure for 2020/21 was £11.2 million. This is a decrease of £1.0 million from 2019/20 and is in line with our budgeted position.

In 2020/21, we spent £9.1 million directly on charitable activities, representing 82% (80% in 2019/20) of our overall expenditure. In the past year, we have spent:

The cost of raising funds was £2.0 million, making up 18% (20% 2019/20) of overall expenditure. We continued with our conscious strategic decision to invest in income generation. The investment in year one was due to bring a return over a five year period, with an initial increase in 2020/21. Unfortunately, due to the COVID-19 crisis the return on investment will not be fully crystallised. A new strategy and cost base is being developed in 2021/22 with a view to launch in 2022/23.

As in 2019/20 we have continued to support vital projects that may not garner wide funding, such as a complimentary therapy service for people

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diagnosed with HIV, a counselling service and a programme to support self testing and access to PrEP as well as services to support people with HIV to live well. This is alongside maintaining investment in our campaigning and lobbying work, essential to fulfilling our strategic aim of amplifying the voices of people living with HIV. This has bearing at a national level and delivers wide reaching impact with minimal investment.

Support costs in 2020/21 are £1.7 million, which is a marked increase of £0.6 million from 2019/20. This represents 15% of total expenditure compared to 9% in the previous year. We are focused on keeping our support costs in line with the needs of the services and to ensure value for money.

These costs, which are made up of head office costs, IT, facilities, HR and Finance, have been allocated across areas on the basis of staff whole-time equivalent. This is detailed fully in note 10 to the accounts. The increase in % can in part be attributed to the decline in activity in the year where central costs still remained. A full review of the costing and recharging model will be undertaken in 2020/21 to ensure an accurate and fair process for allocating costs across Terrence Higgins Trust is in place.

OUR RESERVES

In the current economic environment it is essential we maintain a strong reserve position and ensure the most appropriate use of funds. At Terrence Higgins Trust, our focus is on ensuring that investment in long-term operational and financial sustainability has the highest impact on the needs of service users.

Our reserve position at 31 March 2021 is £20.2 million. Overall this is an increase of £2.1m against the 2019/20 position of £18.1m. There has been a small increase in the restricted reserve of £0.1m, and an increase of £2.0m on the unrestricted reserve. This gain comprises a reduction in the pension fund deficit of £0.7m and a gain on investments of £1.6m set again the operating deficit of £0.2m.

FRS 102 dictates how pension scheme assets and liabilities are calculated and disposed in the accounts. One impact of the requirements is quite significant fluctuations in the value of the pension scheme which form part of our reserves. Due to the COVID-19 crisis, we were expecting the deficit in the pension fund to increase markedly. There was a high level of volatility throughout March and April 2021, and in the fund we saw an increase in value of £0.7m as the

market recovered. The pension scheme deficit as defined under FRS 102 is now at a value of £2.1m, (£2.9m in 2019/20).

The reserve policy agreed by the Trustees ensures that the free level of reserves held should be between the equivalent of three months and six months expenditure. Our budgeted expenditure for 2021/22 under the emergency budget is £12.1m. Within the framework of the reserve policy this indicates a required reserve level of between £3.0m and £6.0m. The free reserves position on 31 March 2021 is £9.9m, made up of unrestricted reserves net of fixed assets £8.2m, investment property £1.3m, and planned deficit for 2021/2022 of £1.4m. The pension deficit has been excluded on the basis this would be a longer term liability where funds would be required over a long period of time (same principle as removing fixed assets as they are not quickly liquidated).

At the end of 2018/19 the organisation committed to spending the excess free reserves over a period of five years to ensure the development of the organisation and services. This initial decrease in reserves is a result of the planned purchase of the new London Office completed in December 2019, combined with the unexpected operational loss at the end of the year.

The new strategy which was due to be launched in April 2020 was the foundation for the remaining planned investment. However, due to the COVID-19 crisis these plans have been put on hold.

Overall the reserves position has been a lifeline during this period and has provided a strong foundation for the financial stability of the organisation. In the short-term the reserves have been instrumental in supporting the ongoing operations of the organisation and have provided assurance for our medium- to long-term viability.

We now need to ensure that in the medium- to long-term we use the reserves to invest in organisational development and the changing needs of the service users. 2021/22 will be a year of refocusing the organisation as the full impact of the pandemic is understood and the reserves will be key to recovery.

GOING CONCERN

The Trustees have taken the view that in light of the ongoing challenges in the economic and funding environment, mainly due to the impact of COVID-19, and the organisation’s commitment to providing continuity for key

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existing services, the current level of unrestricted reserves is appropriate.

The Trustees believe that Terrence Higgins Trust has adequate financial resources. Our planning process, including financial projections, has taken into consideration the current economic and funding environment and its impact on income and expenditure. In the current crisis, the Board of Trustees agreed both an emergency budget framework and 18 month interim strategy which will take Terrence Higgins Trust to the end of March 2022. These were based upon prudent projections and are deemed affordable, and to date we have exceeded expectations. They both support the ability of the organisation to deliver through the acute crisis phase and in the long term.

The Board has now commenced the process of a full strategic review which will be accompanied by medium financial forecasts. The strategic planning process is complemented with a substantial investment in the Income Generation team which we are confident will support Terrence Higgins Trust to reach a break even position in the years to come.

The Trustees acknowledge our pension fund obligations and we are working closely with the trustees of the pension trust to eliminate the deficit over a reasonable time frame. The liability, as calculated according to FRS 102 and included in these accounts, does not impact on the operational finances of the charity except for the agreed payments under the deficit recovery plan and in the financial year to 31 March 2021 there was a reduction in pension fund deficit by £0.7m.

The plan was reviewed in 2018/19 by the Trustees of the Pension Scheme and Terrence Higgins Trust and the deficit recovery was agreed to be affordable, the details of which are in Note 13 to the accounts. In the financial year to 31 March 2022, there will be a triennial valuation of the fund and trustees of both Terrence Higgins Trust and the pensions trust will review the deficit recovery plan once that valuation is finalised. There are no other long-term liabilities for the Trust.

Therefore, Terrence Higgins Trust has a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future. The Trustees believe there are no material uncertainties that call into doubt the charity’s ability to continue. The accounts have therefore been prepared on the basis that the charity is a going concern.

INVESTMENTS

The charity has two investment funds, both of which are managed by Rathbone Investment Management Limited;

It is important to recognise the impact of the COVID-19 crisis on the fund in the previous financial year and the subsequent recovery in the markets after the initial shock of the pandemic. Despite a substantial gain of £1.5m in 2020/21, it is widely recognised there remains a high level of instability and volatility in the global markets.

The cash position of the organisation is stable, and there is not an urgent requirement to liquidate investments. As an organisation we are focused on the need to manage the risk and return of our investment portfolio on a long-term basis, therefore, we expect to manage the fund through this time of instability. The diversification of our asset classes within the portfolio do guard against a certain level of risk and we are working with Rathbones to manage the risk of the portfolio, through the current situation to medium- and long-term stability.

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The agreed investment policy is as follows;

OVERVIEW AND OBJECTIVES OF THE INVESTMENT

Terrence Higgins Trust has around £6m in investments, £4m as a result of the sale of Lighthouse West London and £2m as a result of the sale of Gray’s Inn Road London.

In line with the five year business plan it may be required to hold additional investments. The organisation will ensure that:

The investment profile will be drawn down in line with the long-term agreed business plan of the organisation.

Terrence Higgins Trust aims to maximise the financial return on the investments with an acceptable level of risk and volatility as defined below.

ROLES AND RESPONSIBILITY

The Board of Trustees delegates the appointment and monitoring of investment managers to FARC.

Investment decisions, within the confines of this IPS, are delegated by the Board to the Investment Manager.

The key contacts authorised to instruct the investment manager on behalf of the Board are any two of the Director of Finance and Estates. and the Chief Executive and the Chair of FARC.

ACCEPTABLE LEVEL OF RISK

Assets should be invested to protect against inflation in the long term, however, it is recognised that Terrence Higgins Trust intends to draw both capital and income out of the fund and as such its value will decrease over time.

Terrence Higgins Trust can tolerate some volatility in the capital value of assets as long as withdrawals can be met from total return and are sufficient to meet the requirements of the innovation fund. Any capital withdrawals should be planned to minimise the realisation of any capital losses.

ETHICAL RESTRICTIONS

Terrence Higgins Trust assets should be invested in line with its charitable objectives. Investments should be excluded if perceived as conflicting with the charity’s purpose. Specifically, Terrence Higgins Trust does not wish to invest directly in tobacco producing companies.

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TARGET ASSET ALLOCATION

----- Start of picture text -----
Asset Class Tactical weight % Strategic weight % Range %
Fixed interest 13 18 0-30
UK equities 33 35
40-80
Overseas equities 37 35
Diversifiers 15 10 0-20
Cash 2 2 0-20
Total 100 100
----- End of picture text -----

CURRENCY

The base currency of the investment will be sterling.

LONG-TERM INVESTMENT OBJECTIVE

Target return = Consumer Price Index (CPI) plus 4% after expenses.

INDUSTRY BENCHMARK

Composite index benchmark, as detailed below, and Asset Risk Consultants (ARC) Steady Growth Charity Index.

The composite benchmark will comprise:

----- Start of picture text -----
Asset Class Weight (%) Index
UK equities 35.0 FTSE All-Share
Overseas equities 35.0 FTSE All-World (ex-UK)(£)
Property 5.0 FTSE UK Commercial Prop
Alternatives 5.0 3-month GBP LIBOR +2%
Fixed income 18.0 FT Brit Govt All Stocks
Cash 2.0 7-day LIBOR
Total portfolio 100.0 Composite of the above
----- End of picture text -----

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RISK MANAGEMENT

The risk register for the Trust focuses on the following;

Risk is managed through the Executive and Directors Team through the overarching Charity Risk Register. The register is reviewed at least monthly by this group. The Charity Risk Register is reviewed by the Board’s Finance, Audit and Risk Committee at its quarterly meetings. The register is also provided to the full Board quarterly.

The review considers:

The COVID-19 pandemic has had a significant impact on both the external and internal environment. From March 2020 the risks profile of the organisation has altered markedly.

As the pandemic has moved out of the acute phase of crisis, the principal risks have not altered from our original assessment in March.

However, the risk management and internal control framework is now able to mitigate the risks more effectively.

The risk register is under continual review due to the heightened level of risk in the external environment.

THE FRAMEWORK IS BASED ON THE FOLLOWING PRINCIPLES:

Comprehensive All risks that may prevent the charity from fulfilling its objectives should be considered at all levels of the charity.

Maximisation Integration of value Risk management should be part Risk management of the routine should not be a management and ‘bureaucratic add-on’ to governance activities existing processes, rather of the charity. it should enable existing processes and work to be enhanced.

Affordability Transparency Systems and controls Risk management should involve assessment should be affordable, and control of risks to and be capable of be undertaken in a without significant implementation transparent manner additional investment. and clearly communicated.

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PRINCIPAL RISKS AND UNCERTAINTIES

----- Start of picture text -----
Principal Risk Risk Management (internal controls and actions)
Diminishing political recognition ● Proactive work with politicians and sector leaders and
of the importance of HIV and policy partners.
Sexual Health.
● Proactive and focused communication plan at all levels.
● Aligning key publications with COVID-19 impact and
implications to ensure the relevance is recognised
and maintained.
●
Financial sustainability. Short, medium and long term financial planning is structured on
prudent growth levels.
● Revised income generation strategy which is in line with
changing economic conditions and which ensures return on
investment is maximised.
● Proactive management of commissioner relationships to ensure
future viability of contracts.
● Review of operational model to ensure it is viable within the
financial framework.
● Proactive management of Pension Fund Liability and
relationship with Pension Fund Trustees.
Delivering quality services. ● Executive scrutiny of delivery to ensure quality services are
being delivered in line with KPIs.
●
Investing in staff to ensure they have the right skills and
capabilities to meet the changing needs of the organisation.
●
Supporting wellbeing of staff through an intense period of both
external and internal change.
● Embedding a digital culture in the organisation which integrates
digital delivery throughout the delivery of the strategy.
Maintaining a robust ● Maintaining investment in IT systems and processes.
operational framework. ● Documented systems of internal control and accountability
are maintained.
● Ensuring the suitability of safeguarding training, policies and
procedures, particularly through the COVID-19 crisis.
● Ensuring GDPR compliance throughout our work.
● Implementing change to ensure the board, management,
staff and volunteers of the trust reflect the diversity of the
communities we serve.
----- End of picture text -----

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Terrence Higgins Trust is a charitable company limited by guarantee, incorporated on 14 December 1983 (company registration number 1778149). Terrence Higgins Trust was registered as a charity in England and Wales on 26 January 1984 (registration number 288527) and with the Office of the Scottish Charity Regulator (OSCR) in January 2009 (registration number SC039986).

The Trustees of Terrence Higgins Trust are the charity’s Trustees under charity law and the Directors of the charitable company. While the organisation is registered under the name The Terrence Higgins Trust, its working name is Terrence Higgins Trust (used throughout this Report).

Terrence Higgins Trust is governed by its Articles of Association. This document sets out the charity’s objectives and the framework within which Terrence Higgins Trust must operate to achieve these. The Articles of Association are subject to approval by the Charity Commission and are regularly reviewed by Trustees to ensure they remain up to date.

A full review of Terrence Higgins Trust’s governing documents took place in 2016 and as a result changes were approved at the Annual General Meeting (AGM) in December 2016. This included replacing the previous Memorandum and Articles of Association with one document. The Articles of Association were amended in July 2018 to increase the maximum number of Trustees from 12 to 15.

The charity has one active 100% owned subsidiary; Terrence Higgins Enterprises Limited, the activities of which are accounted for in Note 27. This company’s principal activity is that of raising funds for the charity and its company registration number is 2242767. The company carries on trading activities for the benefit of Terrence Higgins Trust and is contracted to deliver some care contracts, the performance

of which is subcontracted to Terrence Higgins Trust. The company will continue to develop merchandising and fundraising events to raise funds for Terrence Higgins Trust.

Since the Charity Governance Code was launched on 13th July 2017, the Board has utilised the Code as a tool to support the Board to reflect upon its governance structures and consider the ways in which the Charity and its Trustees currently apply the Charity Governance Code’s seven principles and recommended practice. The Board of Trustees formally adopted the Code in September 2017.

The Charity already meets a number of the Code’s measures. These include clear and accountable Trustee term-limits within the Charity’s Articles of Association which state no Trustee can serve more than three three-year terms, an explicit statement regarding the size of the charity’s Board, which shall consist of a minimum of 6 and a maximum of 15 Trustees (the Board currently consists of 13 trustees). The Board has also instigated a review and evaluation of Trustee performance which includes an external review every 3 years.

Whilst the Charity already applies a considerable number of the recommended practices relating to each of the code’s seven principles through an action plan, the charity and its Trustees believe that constant review of its governance arrangements is required to further improve standards and increase its overall effectiveness as an organisation.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Our Advisory Board of experts provides independent advice to the charity, and supports the Chief Executive and the Trustees. The members provide expert and objective advice to the charity, challenging and scrutinising key issues in a supportive way. As it is not part of the formal governance of the charity, the Advisory Board can be independent and objective in its feedback.

TRUSTEES

Our Board of Trustees (Directors) is responsible for setting the overall strategy and direction of the charity, and for ensuring Terrence Higgins Trust uses its resources effectively in pursuit of its strategy.

The charity’s Articles of Association provides for 15 Trustees, the majority of whom must be elected by the charity’s members. Our Trustees are unpaid, are either elected or appointed and are drawn from a variety of backgrounds to ensure a balanced, skills-based Board. Our Articles provide for a mid-term vacancy on the Board to be filled by a co-opted Trustee, who holds office until the AGM following their appointment.

Trustees are:

The Board currently consists of 14 Trustees.

Trustees who served during the year are:

Jonathan McShane (Chair) ‡†

Dr Bilal Ali ∞†

Dr Jake Bayley ∞

Rt Hon. Ben Bradshaw MP – stood down at the end of their term on 3rd December 2020

Ian Marshall ‡

Gordon Mundie ~

William Roberts (Deputy Chair) ~

Randeep Sidhu ∞†

Dr Laura Waters ~ Dr Samantha Westrop ~†

Ben Roberts ∞ Delroy Corinaldi ‡ Antonia Belcher ‡ Alexander Walsh

Key

All Trustees undergo a formal induction to the charity, the content of which is reviewed annually and includes a mixture of formal training and visits to observe delivery of the charity’s services and meetings with senior management.

Biographical information on the current Trustees can be found at: https://www.tht.org.uk/ourwork/about-our-charity/our-governance/ourtrustees

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

SUB-COMMITTEES

Trustees meet at least four times each year as a Board and attend two full-day strategy meetings. In addition to this, they are supported through the work of four committees which were reviewed during 2018 and revised to ensure they remain appropriate in supporting the board going forward:

Board’s responsibilities during the COVID19 pandemic to ensure that the organisation continued to function appropriately and remains resilient.

The sub-group had delegated authority to take urgent action on behalf of the Board of Trustees subject to this being reported to the Board of Trustees.

It had the following responsibilities:

Membership of these committees is drawn from:

Lay members are often specialists, who possess a particular expertise relevant to the work of the committee. During the year, Sue Baines, Tim Gutteridge, and Alex LawrenceArcher served as lay members of the FARC. Christine Caitlin served as a lay member on Development and Enterprise.

As a result of the extra-ordinary and

unprecedented circumstances that the charity found itself operating under as a result of the COVID-19 pandemic during 2020 and into 2021, the Board of Trustees at their meeting on 26th March 2020 agreed to establish a new Chair’s sub-group which will met on a weekly and then bi-weekly basis with the CEO and other members of the Executive & Directors Team from April 2020 until July 2020.

The Chair’s sub-group acted as a reference point for the Board in the discharge of the

The sub-group discharged its responsibilities until the end of July 2020 after which normal Board and sub-committee arrangements were re-instated.

TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the:

Company law requires the Trustees to prepare Financial Statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

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 charity and the group, and of the surplus or deficit of the group, for that period.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

In preparing these Financial Statements, the Trustees are required to:

The Trustees are responsible for ensuring that adequate accounting records are maintained that are sufficient to show and explain the charity’s and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group 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 charity and the group and ensuring their proper application in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

EXECUTIVE & DIRECTORS TEAM

The Executive & Directors Team works closely with the Board of Trustees to help turn the charity’s vision and strategy into a reality. They are responsible for the day-to-day management of the organisation. The Executive & Directors Team pay is approved by the Board of Trustees. In addition, we periodically carry out external pay benchmarking using market data to assess senior staff salaries.

The Executive Team that served during the year are:

Ian Green Chief Executive

Dr Michael Brady Medical Director

Dominic Edwardes

Executive Director of Digital & Communications

Faye Rodney

Director of Finance & Estates – resigned 31st March 2021

Caroline Macleod

Director of Finance – appointed 1st March 2021

James Beeby

Director of Income Generation

Liz Porter Clinical Director

Peter Norgate Director of People & IT

Adam Wilkinson

So far, as each of the Trustees at the time of the report are aware, there is no relevant information of which the auditors are unaware and they have taken all the steps they ought to have taken to make themselves aware of any relevant audit information and to establish the auditors are aware of that information.

Director of Statutory Services

Biographical information on the current Executive Team can be found at:

https://www.tht.org.uk/our-work/about-ourcharity/our-governance/our-executive

Haysmacintyre LLP has indicated its willingness to be reappointed as statutory auditor.

This Annual Report of the Trustees, was approved by the Board of Trustees on 27 September 2021, including approving in their capacity as company directors the Strategic Report contained therein, and is signed as authorised on its behalf by:

Jonathan McShane Chair, Board of Trustees

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

VOLUNTEERS AND SUPPORTERS

As an organisation founded by a group of committed friends who recruited volunteers to join the cause, a strong volunteer culture developed in the organisation that continues today.

Our incredible volunteers are the backbone of many of our services, which otherwise could not exist.

Pre-COVID, across 2019/20 we were lucky enough to have an average of 158 volunteers per month working across England, Wales and Scotland, that contributed more than 26,850 hours to Terrence Higgins Trust this year, equivalent to almost 15 full-time employees.

As predicted, volunteering over 2020 and 2021 has been very different. Whilst volunteers still undertook a variety of roles, almost all faceto-face volunteering had to be paused due to government imposed social distance restrictions. Despite this, we have still managed to innovate, create and adapt projects to continue being delivered. Such as, expanding peer support online, growing fundraising opportunities, and adapting counselling and positive voices offerings to be online.

This past year we had an average of 123 volunteers per month contribute nearly 8,500 hours to Terrence Higgins Trust projects, an equivalent to almost 5 full time working staff. This shows that engagement from individuals has remained high, even though the opportunity to volunteer has been reduced. Alongside volunteering, we ran a number of wellbeing events and online training for volunteers to help support them across what has been a turbulent year. Currently, we have 220 registrations of interest from people keen to volunteer with us.

EMPLOYEES

Terrence Higgins Trust also relies on the work and commitment of its 223 paid staff, which includes 101 part-time staff.

As a result of the impact on income generation, and the uncertainty around the potential long-term impact of the COVID-19 pandemic, the charity undertook a full review of its staffing in June 2020. The result of this was an organisation-wide consultation to restructure the organisation to ensure that it would best be able to survive the immediate and medium term.

The consultation process was across all directorates. Voluntary redundancy was offered as an option for employees and eleven staff members took up this offer. A further nine employees left the organisation through compulsory redundancy, with two anticipated redundancies deferred until the next financial year due to funding extensions. There were twenty-four redeployments across the charity, where roles and functions were combined or refocussed.

The charity has also made use of the various iterations of the furlough scheme throughout the pandemic period and this definitely helped to maintain additional roles through the first wave of the pandemic to enable employees to then return to their roles either in the summer or autumn of 2020.

We continue our commitment to equal opportunities and to good staff relations.

Terrence Higgins Trust has an Equality and Diversity for Inclusion Policy, the stated aim of which is:

‘to provide equality and diversity and fair treatment for all permanent, fixed term, parttime and full-time employees, volunteers and service users. Terrence Higgins Trust is opposed to all forms of unfair discrimination. To achieve this, Terrence Higgins Trust works within the legal obligations and in accordance with the relevant codes and practices relating to diversity and equality.’

It is important to us that staff at Terrence Higgins Trust are representative of the beneficiaries we serve. This year 8.5% of staff are living with HIV.

To engage and consult staff in a structured and effective manner, we have a Staff Forum with terms of reference and elected representatives.

Representatives are able to raise issues on behalf of their colleagues in the presence of the Chief Executive. In addition to this formal structure, we have an intranet, regular communications to all staff and WorkPlace. WorkPlace is Facebook for work and provides a space for staff across the organisation to share work developments, best practice and ideas.

All of our communication channels exist to encourage and empower our staff to share their news, learn from one another and celebrate achievements.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF TERRENCE HIGGINS TRUST

OPINION

We have audited the financial statements of Terrence Higgins Trust for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group and parent 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 trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report and the Foreword. 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.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. 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 group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006

RESPONSIBILITIES OF TRUSTEES FOR THE FINANCIAL STATEMENTS

As explained more fully in the trustees’ responsibilities statement as set out on pages 41 and 42, 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 group’s and parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006, and other factors such as compliance with legislation in relation to sales tax, payroll tax and fundraising regulations.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition, posting inappropriate journal entries, and management override of controls. Audit procedures performed by the engagement team included:

the appropriateness of judgements made in relation to revenue recognition.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

USE OF OUR REPORT

This report is made solely to the group and parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the group and parent charitable company’s members 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 and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Harper Senior Statutory Auditor

For and on behalf of Haysmacintyre LLP, Statutory Auditors

Date: 7 December 2021 10 Queen Street Place London EC4R 1AG

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TRUSTEES, REPORT AND FINANCIAL STATEMENTS 2021 47

REPORT AND FINANCIAL STATEMENTS

31 March 2021

THE TERRENCE HIGGINS TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) For the year ended 31 March 2021

Unrestricted
Note
£'000
Donations and legacies
3
3,871
Other trading activities
4
181
Investments
5
175
Ending HIV transmission and improving sexual health
6
3,590
Empowering people to live well with HIV
6
2,076
Profit on the sale of fixed assets
-
Other
7
119
Total
10,012
Expenditure on:
Raising funds
8
2,034
Charitable actvities
Ending HIV transmission and improving sexual health
9
6,202
Empowering people to live well with HIV
9
1,659
Amplifying the voices of people living with HIV
9
343
Total
10,238
Net gains/(losses) on investments
16
1,538
1,312
On revaluation of fixed assets
-
13
710
Net movement in funds
2,022
Reconciliation of funds:
Total funds brought forward
21
16,684
Total funds carried forward
21
18,706
Charitable activities
Net income/(expenditure)
Other recognised gains/(losses)
Defined benefit pension schemes (actuarial)
Income and endowments from:		 Restricted
£'000
842
-
6
65
-
-
913
-
225
677
18
920
63
56
-
-
56
1,461
1,517
2021		 Total
£'000
4,713
181
181
3,655
2,076
-
119
10,925
2,034
6,427
2,336
361
11,158
1,601
1,368
-
710
2,078
18,145
20,223		 Unrestricted
£'000
3,899
723
244
5,118
546
1
179
10,710
2,440
6,636
1,765
386
11,227
(883)
(1,400)
(100)
163
(1,337)
18,021
16,684		 Restricted
£'000
1,059
-
6
234
-
-
1,299
-
258
741
17
1,016
(36)
247
-
-
247
1,214
1,461
2020		 Total
£'000
4,958
723
250
5,352
546
1
179
12,009
2,440
6,894
2,506
403
12,243
(919)
(1,153)
(100)
163
(1,090)
19,235
18,145

The restricted funds column includes an endowment fund as follows: Opening balance of £235,893, net movement on the investment for the year of £67,178 and a closing balance of £303,071

Movements in funds are disclosed in Note 21 to the financial statements.

The notes on pages 51 to 79 form part of these financial statements.

No separate income and expenditure statement has been prepared for the endowment fund on the basis that the difference between net income / (expenditure) as disclosed above and the net profit (loss), as defined by the Companies Act 2006, is the net gain on the investments held by endowment funds and net income of £67,181.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST CONSOLIDATED AND CHARITY BALANCE SHEETS As at 31 March 2021

Note
Fixed assets
Intangible fixed assets
14
Tangible fixed assets
15
Investments
16
Current assets
Debtors
17
Cash held as short term deposits
Cash at bank and in hand
Creditors: amounts due within 1 year
18
Net current assets
Total assets less current liabilities
20
Net assets excluding pension liability
Pension liability
13
Net assets including pension liability
Funds
Permanent endowment funds
21
Restricted funds
21
Total
Unrestricted funds
General funds
21
Designated Funds
21
21
Pension fund
21
Total unrestricted funds
Total funds
Subsidiary companies' non-charitable
funds
Creditors: amounts falling due after 1 year		 2021
2020
£'000
£'000
230
368
7,990
7,253
8,848
7,153
17,068
14,774
1,752
2,356
5,221
5,169
168
142
7,141
7,667
(1,927)
(1,419)
5,214
6,248
22,282
21,022
-
-
22,282
21,022
(2,059)
(2,877)
20,223
18,145
303
236
1,214
1225
1,517
1,461
11,324
10,783
9,400
8,500
41
278
(2,059)
(2,877)
18,706
16,684
20,223
18,145
Group		 2021
2020
£'000
£'000
230
368
7,990
7,253
8,848
7,153
17,068
14,774
1,739
2,350
5,151
5,162
168
142
7,058
7,654
(1,885)
(1,683)
5,173
5,971
22,241
20,745
-
-
22,241
20,745
(2,059)
(2,877)
20,182
17,868
303
235
1,213
1,227
1,516
1,462
11,325
10,783
9,400
8,500
-
-
(2,059)
(2,877)
18,666
16,406
20,182
17,868
Charity		 2021
2020
£'000
£'000
230
368
7,990
7,253
8,848
7,153
17,068
14,774
1,739
2,350
5,151
5,162
168
142
7,058
7,654
(1,885)
(1,683)
5,173
5,971
22,241
20,745
-
-
22,241
20,745
(2,059)
(2,877)
20,182
17,868
303
235
1,213
1,227
1,516
1,462
11,325
10,783
9,400
8,500
-
-
(2,059)
(2,877)
18,666
16,406
20,182
17,868
Charity
14,774
2,350
5,162
142
7,654
(1,683)
5,971
20,745
-
20,745
(2,877)
17,868
235
1,227
1,462
10,783
8,500
-
(2,877)
16,406
17,868

The Charity's net surplus for the year was £2.0m (2020: loss of £1.2m)

The notes on pages 51 to 79 form part of these accounts.

Company no. 1778149

The financial statements were approved and authorised for issue by the trustees on 27 September 2021 and signed on their behalf by

Jonathan McShane - Chair

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 March 2021

Note
Cash flows from operating activities:
29
Cash flows from investing activities:
Dividends, interest and rents from investments
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayments of borrowing
Cash inflows from new borrowing
Receipt of endowment
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Net cash provided by (used in) operating activities		 2021
£'000
934
1
-
(857)
-
78
-
-
78
5,311
5,389		 2020
£'000
(1,575)
(47)
1
(7,257)
(2,000)
(10,877)
-
-
(10,877)
16,188
5,311

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

1. Charity Information

The charity is a private limited company (registered number 1778149), which is incorporated and domiciled in the UK and is a public benefit entity. As at the 31st March 2021, the address of the registered office is 439 Caledonian Road, London N7 9BG.

2. Accounting policies

The principle accounting policies adopted and critical areas of judgements are as follows:

a) Basis of preparation

The accounts (financial statements) have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

Terrence Higgins Trust 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 note.

The financial statements of Terrence Higgins Trust and its subsidiary company are consolidated, on a line-byline basis, to produce the Group financial statements. The consolidated entity is referred to as ‘the Group’. The charity has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only Cash Flow Statement and certain disclosures about the charity’s financial instruments.

b) Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, which are described in this note, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

c) Preparation of the accounts on a going concern

The charity reported a reserve positon of £20.2m for the year (2020: £18.1m) on a group basis. The trustees are of the view that reserves and cash balances of the charity are sufficient, that there are no material uncertainties, and that this the case for the foreseeable future (being a period of at least 12 months from the date of approving the accounts). On this basis the charity and group is a going concern. Please refer to the Trustees' report for more detail.

d) Functional/Presentation currency

The functional currency of Terrence Higgins Trust and its subsidiary is considered to be in pounds sterling (rounded to the nearest thousand) because that is the currency of the primary economic environment in which the charity/group operates. The consolidated financial statements are also presented in pounds sterling.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

e) Income

Income is are recognised in the period in which the Charity is entitled to their receipt, it is probable that they will be received and the amount receivable can be measured reliably. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be used in a future accounting period.

Legacies are included in the Statement of Financial Activities (SOFA) on the earlier of the date of receipt of finalised estate accounts, the date of payment or where there is sufficient evidence to provide the necessary certainty that the legacy will be received and the value is measurable with sufficient reliability.

f) Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.

The SOFA headings comprise expenditure directly attributable to the activity. Where support costs (including finance, information technology, estates and human resources) cannot be directly attributed, they have been allocated to activities on a whole time equivalent basis.

Expenditure on raising funds comprise the direct costs of fundraising activities and a proportion of support costs.

g) Gifts in kind

Other than significant donated gifts-in-kind, no amounts are included in respect of the contributions made by the many volunteers and volunteer organisations which provide various services and supplies free of charge. Where out of pocket travel and other expenses have been reimbursed to volunteers, these costs are included in the accounts.

Donated facilities and services are recognised as income if the charity would have otherwise purchased them and their value can be reliably measured. They are recognised at the value to the charity, which will often be the open market value. When the goods and services are consumed, an amount to the value of the income is recognised as expenditure. It is difficult to make a reliable estimate of the value of volunteer time and as such, this is not recognised in the accounts.

Lower value gifts that are donated for resale, usually in our Boutique, are recognised as income at the point at which they are sold.

Higher value gifts that are donated for resale, are recognised as income when they are received and held as stock on the balance sheet, where legal ownership has been transferred, until they are sold. They are recognised at fair value, being the expected sale proceeds less cost of sales.

h) Redundancy and termination costs

Redundancy and termination costs are recognised in the period in which they are incurred. Costs are considered to be incurred when staff have been formally notified of the decision to terminate their employment or accept their request for voluntary redundancy. Costs can include redundancy costs, contractual payment in lieu of notice (where applicable) and training costs, all in line with our Redundancy and Redeployment Policy and in exceptional circumstances, settlement costs.

i) Pension costs

Terrence Higgins Trust operates a defined benefit scheme for employees, which provides benefits to members on retirement and on death in service. The assets of the scheme are held and managed separately from those of the charity. Pension scheme assets are measured at fair value at each balance sheet date. Liabilities are measured on an actuarial basis. The net of these two figures is recognised as an asset or liability on the balance sheet. Any change in the asset or liability between the balance sheet dates is reflected in the Statement of Financial Activities as a recognised gain or loss for the period.

52

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

Current service costs relating to the defined benefit scheme are charged to the Statement of Financial Activities. Contributions to defined contribution schemes are charged to the Statement of Financial Activities in the year in which they are incurred.

j) Tangible fixed assets

Assets costing more than £1,000 are capitalised.

Tangible fixed assets are stated at their original cost (including any incidental expenses of acquisition such as surveyor’s fees).

Depreciation, which reduces the value of tangible fixed assets over time, is normally calculated at the following annual rates in order to write off each asset over its estimated useful life:

Freehold buildings 2% on cost Leasehold improvements 20% on cost (or over the life of the lease if shorter) Fixtures and fittings 20% on cost Computer equipment 25% on cost Motor vehicles 25% on cost Depreciation on the Cally Yard head office is charged at 1% on cost.

No depreciation is charged on freehold land.

k) Intangible fixed assets

Website development, databases and management information software costs have been capitalised within intangible assets as they can be identified with a specific project anticipated to produce future benefits. Once brought into use they will be amortised over the anticipated life of the benefits arising from the completed project as following:

Website development 25% on cost (or over the life of the project if shorter) Management information 10% on cost Databases and other software 25% on cost (or over the life of the project if shorter)

l) Investments

Shares are stated at market value at the balance sheet date. The SOFA includes realised gain and losses on investments sold in the year and unrealised gains and losses on the revaluation of investments.

Terrence Higgins Trust holds one investment property at a value of £1.3m. The Trustees have approved the valuation which is based upon an independent Estate Agents market valuation.

m) Financial instruments

Terrence Higgins Trust 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 the present value of future cash flows (amortised cost). Financial assets held at amortised cost comprise cash at bank and in hand, short term cash deposits and the group’s debtors excluding prepayments. Financial liabilities held at amortised cost comprise the group’s short and long term creditors excluding deferred income and taxation payable. No discounting has been applied to these financial instruments on the basis that the periods over which amounts will be settled are such that any discounting would be immaterial.

Investments, including bonds and cash held as part of the investment portfolio, are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. Investments in subsidiary undertakings are held at cost less impairment.

At the balance sheet date the charity held financial assets at fair value of £7,548,000 (2020 £5,853,000).

53

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

n) Provisions

Provisions are recognised when the Charity has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense.

o) Leased assets

Rental costs relating to operating leases, where substantially all the benefits and risks of ownership remain with the lessor rather than with Terrence Higgins Trust, are charged to the Statement of Financial Activities as incurred.

p) Fund accounting

Unrestricted funds (General Funds) are those available for use at the discretion of the Trustees in furtherance of the objectives of Terrence Higgins Trust.

Designated funds comprise funds that are expendable, but which have been set aside by the Trustees for specific purposes.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of support costs.

Capital funds consist of income permanently endowed by donors. Income from these funds is transferred to General Funds.

54

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

3.
As at 31st March 2021
Corporate donations
Trust donations
National Lottery Communities Fund
Community fundraising
Individual donations
Legacies
Total donations and legacies
As at 31st March 2020
Corporate donations
Trust donations
National Lottery Communities Fund
Community fundraising
Individual donations
Legacies
Total donations and legacies
4.
£'000
Fundraising events
103
Shop sales
22
Rental income from operating leases
56
Room hire and catering
-
Sponsorship, sales and cause related marketing
-
Total other trading activities
181
5.
Investment income
£'000
Investment income
143
Bank interest
32
Total investment income
175
Other trading activities
Unrestricted
Unrestricted
Donations and Legacies		 Unrestricted
£'000
484
106
-
186
1,525
1,570
3,871
Unrestricted
£'000
219
230
-
322
1,427
1,701
3,899
£'000
-
-
-
-
-
-
£'000
6
-
6
Restricted
Restricted		 £'000
11
340
427
-
64
-
842
£'000
287
91
679
1
-
1
1,059
2021
£'000
103
22
56
-
-
181
2021
£'000
149
32
181
Restricted
Restricted		 2021
£'000
495
446
427
186
1,589
1,570
4,713
2020
£'000
506
321
679
323
1,427
1,702
4,958
2020
£'000
480
83
160
-
-
723
2020
£'000
211
39
250

55

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

6. Income from charitable activities

As at 31st March 2021
Ending HIV transmission and improving sexual health
Public Health England
Health authorities
Local authorities and other statutory bodies
Total Ending HIV transmission and improving sexual health
Empowering people to live well with HIV
Health authorities
Local authorities and other statutory bodies
Total Empowering people to live well with HIV
As at 31st March 2020
Ending HIV transmission and improving sexual health
Public Health England
Health authorities
Local authorities and other statutory bodies
Total Ending HIV transmission and improving sexual health
Empowering people to live well with HIV
Health authorities
Local authorities and other statutory bodies
Total Empowering people to live well with HIV
Total
Total income for charitable activities		 Unrestricted
£'000
780
1,318
1,492
3,590
1,060
1,016
2,076
5,666
Unrestricted
£'000
1,200
381
3,537
5,118
116
430
546
5,664		 Restricted
£'000
47
-
18
65
-
-
-
65
Restricted
£'000
43
-
191
234
-
-
-
234		 Total
£'000
827
1,318
1,510
3,655
1,060
1,016
2,076
5,731
Total
£'000
1,243
381
3,728
5,352
116
430
546
5,898

56

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

7. Other income

£'000
Training and conferences
6
Counselling and therapy fees
-
Student placements
-
Other
112
Total other income
118
As at 31st March 2021
Salaried staff costs
Non-salaried staff costs
Printing costs
Event costs
Other direct costs
Premises costs
Support costs (note 10)
Total
As at 31st March 2020
Salaried staff costs
Non-salaried staff costs
Printing costs
Event costs
Other direct costs
Premises costs
Support costs (note 10)
Total
Unrestricted
Expenditure on raising funds		 2021
£'000
£'000
1
7
-
-
-
-
-
112
1
119
Fundraising
& trading
£'000
£'000
1,130
186
4
-
68
12
70
12
139
21
32
6
339
15
1,782
252
£'000
£'000
1,012
166
38
11
205
35
128
23
459
71
47
8
227
10
2,116
324
Cost of raising
funds
Cost of raising Fundraising &
Restricted		 2020
£'000
1
34
1
143
179
2021
£'000
1,316
4
80
82
160
38
354
2,034
2020
£'000
1,178
49
240
151
530
55
237
2,440

8. Expenditure on raising funds

57

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

9.
Salaried staff costs
Non-salaried staff costs
Subcontractors and partners
Clinical supplies
Hardship grants
Website
Volunteer costs
Print and design costs
Condoms & materials
Event costs
Campaign/service advertising
Research & evaluation
Staff travel and subsistence
Other direct costs
Premises costs
Support costs (note 10)
Total
Salaried staff costs
Non-salaried staff costs
Subcontractors and partners
Clinical supplies
Hardship grants
Website
Volunteer costs
Print and design costs
Condoms & materials
Event costs
Campaign/service advertising
Research & evaluation
Staff travel and subsistence
Other direct costs
Premises costs
Support costs (note 10)
Total
Expenditure on charitable
activities		 £'000
3,574
15
337
200
-
18
11
58
39
14
297
2
7
327
386
1,143
6,428
£'000
3,477
39
595
202
-
34
12
242
91
92
423
(5)
96
417
417
763
6,895
Ending HIV
transmission
and
improving
sexual
health
Ending HIV
transmission
and
improving
sexual
health		 £'000
1,435
24
(3)
3
69
5
11
4
17
12
6
10
1
131
136
475
2,336
£'000
1,572
24
9
6
24
7
14
18
23
19
29
80
22
190
152
317
2,506
Empowering
people to
live well with
HIV
Empowering
people to
live well with
HIV		 £'000
258
7
2
-
-
2
-
2
-
-
3
-
(1)
31
-
57
361
£'000
277
18
7
-
-
2
1
5
-
2
7
1
7
37
1
38
403
Amplifying
the voices of
people
living with
HIV
Amplifying
the voices of
people
living with
HIV		 Total
2021
£'000
5,267
46
336
203
69
25
22
64
56
26
306
12
7
489
522
1,675
9,125
Total
£'000
5,326
81
611
208
24
43
27
265
114
113
459
76
125
644
570
1,118
2020
9,804

58

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

10.
Support costs
Salaried staff costs
Non salaried staff costs
Staff travel and subsistence
IT costs
Other direct costs
Premises costs
Total support costs
Salaried staff costs
Non salaried staff costs
Staff travel and subsistence
IT costs
Other direct costs
Premises costs
Total support costs		 £'000
579
11
10
279
219
45
1,143
£'000
434
17
5
241
47
17
763
Ending HIV
transmission
and
improving
sexual
health
Ending HIV
transmission
and
improving
sexual
health		 £'000
240
5
4
116
91
19
475
£'000
180
7
2
100
20
7
317
Empowering
people to
live well with
HIV
Empowering
people to
live well with
HIV		 £'000
29
1
1
14
11
2
57
£'000
22
1
-
12
2
1
38
Amplifying
the voices of
people
living with
HIV
Amplifying
the voices of
people
living with
HIV		 £'000
179
3
3
87
68
14
354
£'000
135
5
2
75
15
5
237
Fundraising
& trading
Fundraising
& trading		 Total
£'000
1,027
20
18
496
388
80
2021
2,029
Total
£'000
770
31
9
428
84
31
2020
1,353

Support costs include the cost of the Finance, Human Resources, IT and Estates departments. Support costs are allocated to activities based on the number of whole time equivalent employees working within each activity.

11. Net income

Depreciation and amortisation
Rental costs relating to operating leases
Trustees’ indemnity insurance
Auditors' remuneration: audit
Auditors' remuneration: pension
Actuarial fee for FRS 102 valuation
This is stated after charging:		 2021
£'000
258
225
6
26
6
3		 2020
£'000
156
374
6
26
7
3

None of the Trustees received any remuneration from the Charity (2020: £nil). No trustees (2020: none) were reimbursed for travel expenses during the year. No catering costs for the committee and other meetings were incurred (2020: £nil). Travel and accommodation was booked and paid for directly by the charity for Trustees with total costs amounting to £13 (2020: £2,115). The auditors' remuneration stated above are exclusive of irrecoverable VAT which is an additional cost to the charity.

59

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

12.

Staff costs

Staff costs (paid staff, not including volunteers) were as follows:

Staff costs
Staff costs (paid staff, not including volunteers) were as follows:
Salaries and wages
Social security costs
Pension contributions
Agency staff
Redundancy costs
Total staff costs		 2021
£'000
7,134
-
308
70
168
7,680		 2020
£'000
6,258
608
300
155
113
7,435

Redundancy costs relate to staff in posts that have been made redundant either because of changes to funding and the services we provide have been stopped or cut back as a result or because unfunded posts have been reduced through restructures that have been carried out to reduce the overheads of the Charity. At the 31st March 2021 £16,492 of redundancy payments were outstanding.

2021
Staff costs are categorised as:
Notes
£'000
Cost of raising funds
8
1,134
Fundraising trading
8
186
Ending HIV transmission and improving sexual health
9
3,589
Empowering people to live well with HIV
9
1,459
Amplifying the voices of people living with HIV
9
265
Support staff
10
1,047
Total staff costs
7,680
The average head count of staff employed during the year was as follows:
2021
No.
Salaried staff
223		 2020
£'000
1,050
177
3,516
1,596
295
801
7,435
2020
No.
215

The average weekly number of whole time equivalent employees during the year was as follows:

Salaried staff
Sessional staff
£100,000 to £109,999
£90,000 to £99,000
The number of higher paid employees was:
£60,000 to £69,999
£70,000 to £79,999
£80,000 to £89,000		 2021
No.
182
-
182
2021
No.
3
1
1
-
1		 2020
No.
174
15
189
2020
No.
3
1
2
-
1

Of the higher paid employees, all received employer contributions totalling £27,015 (2020: £38,793) paid into a defined contribution pension scheme. The total benefits received by the Executive team during the year ending 31 March 2021 was £517,676 (2020: £712,311) with salaries ranging from £0 to £103,000 in the current year.

60

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

13. Staff pension

Terrence Higgins Trust operated a defined benefit pension scheme, Terrence Higgins Trust Pension Scheme ("the Scheme"), where benefits are based on each member's salary and pensionable service prior to leaving the scheme. The Scheme has been closed to new entrants for a number of years and existing members are no longer accruing defined benefits under the Scheme. Benefits receive statutory revaluation in deferment. Once in payment, pension increases are applied, the majority of which are linked to inflation ( subject to floors and caps).

To replace the final salary scheme a Group Personal Pension Scheme was introduced. During the year ended 31st March 2021, Terrence Higgins Trust contributed £280,595 (2020: £279,628) and employees contributed £193,282 (2020 £245,807).

Funding

The Scheme's assets are held completely separately from the Trust in a separate trust fund. The fund is looked after by the Pension Trustees on behalf of the members. The assets are invested to meet the benefits promised under the Scheme by a combination of investment returns and future contributions. Under the normal course of events, actuarial valuations are undertaken every three years to confirm whether the assets are expected to be sufficient to provide the benefits. If there is a shortfall, a recovery plan is put in place under which the Charity is required to pay additional contributions over a period of time agreed with the Trustees.

The last triennial actuarial valuation was at 31 July 2018 which indicated the Scheme had a shortfall. The charity agreed to pay deficit reduction contributions in line with the following schedule:

A lump sum of £1m was paid on in February 2019 on the completion of the sale of the Grays Inn Road property. This was in line with the recovery plan.

The next full valuation is due as at the 31st July 2021

The accounting disclosures are based on different assumptions from the Scheme's funding assumptions. This is because:

The FRS102 value placed on the pension benefit obligation has been determined by rolling forward from previous results, making adjustments to reflect benefits paid out of the Scheme, and for differences between the assumptions used at this year-end and the previous year-end.

As part of the funding discussions between the Charity and the Terrence Higgins Trust Pension Scheme, the Charity agreed to grant the Scheme Trustees security by way of a legal mortgage over two of its properties in respect of its liabilities under the scheme recovery plan.

61

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

13. Staff pension (continued)

Staff pension (continued)
At At
Effective Date 31/03/21 31/03/20
Principal Actuarial Assumptions
Discount rate 2.40% 2.60%
Pension increases ( RPI up to 5% ) 3.30% 2.70%
Revaluation in deferment ( CPI up to 5 % ) 2.30% 1.70%
Mortality
- Base Table S2PXA YOB S2PXA YOB
- Allowance for future improvements CMI 2020 1.00% CMI 2017 1.25%

Scheme's assets

17.20% 2.60%

The expected return on assets is a weighted average of the assumed long-term returns for the various asset classes.

The major categories of assets as a proportion of total assets are as follows:

Equities 55% 47%
Bonds 15% 24%
Other ( cash etc ) 6% 29%
LDIs 24% 0%

The actuarial gain on the Scheme's assets over the year to the review date was £710,000.

The assets do not include any investment in the Trust.

62

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

13. Staff pension (continued)

Balance sheet position
Present value of defined benefit obligation
Fair value of plan assets
Excess / ( Deficit )
Net Defined Benefit Liability
Net assets available for benefits
Profit and loss
Interest on net liability
Past service cost
Actual return on plan assets
Other comprehensive income (OCI)
Changes in fair value of plan assets:
Opening fair value of plan assets
Employer contributions
Benefit payments
Expected return on plan assets
Actuarial gains / ( losses )
Changes in present value of defined benefit obligation:
Opening defined benefit obligation
Interest cost
Benefits paid
Actuarial losses / ( gains )
Closing defined benefit obligation
Actual less expected return on plan assets
Experience gains and losses on
Change in assumptions
Actuarial gain / (loss) recognised in OCI		 £'000
(21,167)
19,108
(2,059)
(2,059)
19,108
(72)
-
(72)
(1,378)
2,396
220
(1,906)
710
£'000
16,444
180
(338)
426
2,396
19,108
£'000
19,321
498
(338)
1,686
21,167
31/03/21
31/03/21
31/03/21		 £'000
(19,321)
16,444
(2,877)
31/03/20
(2,877)
16,444
(81)
-
(81)
(1,378)
(1,862)
105
1,920
163
£'000
17,995
179
(352)
484
(1,862)
31/03/20
16,444
£'000
21,133
565
(352)
(2,025)
31/03/10
19,321

63

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

14.
As at 31st March 2021
Cost
At the start of the year
Additions in year
Disposals/write offs in year
Adjustments
At the end of the year
Amortisation
At the start of the year
Charge for the year
Disposals/write offs in year
Adjustment
At the end of the year
Net book value
At the end of the year
At the start of the year
As at 31st March 2020
Cost
At the start of the year
Additions in year
Disposals/write offs in year
Adjustments
At the end of the year
Amortisation
At the start of the year
Charge for the year
Disposals/write offs in year
Adjustment
At the end of the year
Net book value
At the end of the year
At the start of the year
Intangible fixed assets - group and charity		 Website
£'000
253
-
-
-
253
94
51
-
-
145
108
159
Website
£'000
215
-
-
38
253
4
11
-
79
94
159
211		 Software &
systems
£'000
1,378
-
-
-
1,378
1,169
87
-
-
1,256
122
209
Software &
systems
£'000
1,476
-
(98)
-
1,378
1,181
127
(60)
(79)
1,169
209
295		 Total
£'000
1,631
-
-
-
1,631
1,263
138
-
-
1,401
230
368
Total
£'000
1,691
-
(98)
38
1,631
1,185
138
(60)
-
1,263
368
506

64

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

15. Tangible fixed assets - group and charity

As at 31st March 2021
Leasehold
property
£'000
Cost
At the start of the year
7,128
Additions in year
-
Disposals/write offs in year
-
Reclassification/Revaluation
(1,308)
At the end of the year
5,820
Depreciation and impairment provisions
At the start of the year
-
Charge for the year
49
Disposals/write offs in year
-
Reclassification/Revaluation
-
At the end of the year
49
Net book value
At the end of the year
5,771
At the start of the year
7,128
As at 31st March 2020
Freehold
property
£'000
Cost
At the start of the year
-
Additions in year
7,128
Disposals/write offs in year
-
Reclassification/Revaluation
-
At the end of the year
7,128
Depreciation and impairment provisions
At the start of the year
-
Charge for the year
-
Disposals/write offs in year
-
Reclassification/Revaluation
-
At the end of the year
-
Net book value
At the end of the year
7,128
At the start of the year
-		 Leasehold
property
£'000
7,128
-
-
(1,308)		 Leasehold
improvements
£'000
2
801
-
1,308
2,111
-
35
-
-
35
2,076
2
Leasehold
improvements
£'000
57
-
(55)
-		 Fixtures &
fittings
£'000
10
20
-
-
30
10
3
-
-
13
17
-
Fixtures &
fittings
£'000
233
-
(223)
-		 Computer
equipment
£'000
240
36
-
-		 Motor
vehicles
£'000
-
-
-
-
-
-
-
-
-
-
-
-
Motor
vehicles
£'000
10
-
(10)
-		 Total
£'000
7,380
857
-
-
5,820 276 8,237
117
33
-
-		 127
120
-
-
49 150 247
5,771 126 7,990
7,128 123 7,253
Freehold
property
£'000
-
7,128
-
-		 Computer
equipment
£'000
342
129
(231)
-		 Total
£'000
642
7,257
(519)
-
7,128 2 10 240 - 7,380
-
-
-
-		 55
-
(55)
-
-
2
2		 229
-
(219)
-
10
-
4		 331
18
(232)
-		 10
-
(10)
-
-
-
-		 625
18
(516)
-
- 117 127
7,128 123 7,253
- 11 17

From the beginning of March 2017 one of the Charity’s freehold properties, located at 14-15 Lower Marsh London, was surplus to operational requirements. It was marketed for commerical letting and is being leased to a number of tenants. As a result, the property is classified within investments.

65

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

16. Fixed asset investments - group and charity

As at 31st March 2021
Market value at the start of the year
Reclassification
Additions
Withdrawals
Management fees
Unrealised gain/(loss)
Market value at the end of the year
Historic cost at the end of the year
Unrealised investment gain based on historical cost		 £'000
1,300
-
1,300
1,500
(200)
Investment
Property		 Investment
Fund
£'000
5,617
-
137
(48)
1,538
7,244
3,786
3,458		 Endowment
Fund
£'000
236
-
6
(6)
(1)
69
304
243
61		 2021
£'000
7,153
-
143
(6)
(49)
1,607
8,848
5,529
3,319

Fixed asset investments comprise an endowment fund and an unrestricted investments. The endowment fund at £0.3m and £7.2m of the unrestricted investments are managed by Rathbones and are invested as detailed in the split below. The investment property, at the value of £1.3m, is a decommissioned operating unit which is now being marketed commercially. For details of investments held by the Charity in subsidiary undertakings see note 26.

The major categories of assets as a proportion of total assets are as follows for unrestricted funds:

2021
UK Equities
35.4%
Overseas Equities
35.7%
Cash
3.7%
Alternatives
16.3%
Fixed Interest
8.9%
As at 31st March 2020
Market value at the start of the year
Reclassification
Additions
Withdrawals
Management fees
Unrealised gain/(loss)
Market value at the end of the year
Historic cost at the end of the year
Unrealised investment gain based on historical cost
Debtors
Other debtors
Prepayments
Accrued income
Total debtors
Grant and contract funding receivable and similar debtors
Social security, pension contributions and other taxes		 2020
35.4%
35.7%
3.7%
16.3%
8.9%
£'000
1,400
-
-
-
-
(100)
1,300
1,500
(200)
2021
£'000
253
27
172
93
1,206
1,752
Investment
Property
Group		 7,243,657
38.7%
38.3%
2.2%
13.4%
7.4%
Investment
Fund
£'000
4,340
10
2,151
-
(30)
(854)
5,617
3,786
1,831
2020
£'000
1,080
94
398
195
589
2,356		 303,071
7,546,728
38.9%
38.71%
39.4%
38.34%
1.3%
2.16%
13.4%
13.40%
7.0%
7.38%
Endowment
2020
Fund
£'000
£'000
267
6,007
10
6
2,157
(6)
(6)
(1)
(31)
(30)
(984)
236
7,153
243
5,529
(7)
1,624
2021
2020
£'000
£'000
243
1,080
27
93
172
398
93
195
1,202
583
1,738
2,350
Charity		 7,546,728
38.71%
38.34%
2.16%
13.40%
7.38%
2020
£'000
6,007
10
2,157
(6)
(31)
(984)
7,153
5,529
1,624
2,350

17. Debtors

66

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

18. Creditors: amounts due within 1 year

Creditors: amounts due within 1 year
Loan repayable (note 20)
Trade creditors
Other creditors
Accruals
Amount owed by subsidiary undertaking
Deferred income (note 19)
Total creditors due within 1 year
Social security, pension contributions and other taxes		 2021
£'000
-
95
264
77
791
700
1,927
Group		 2020
£'000
-
68
361
48
849
-
94
1,419		 2021
2020
£'000
£'000
-
-
95
68
264
361
46
17
770
850
11
295
700
94
1,886
1,684
Charity
1,684

19. Deferred income reconciliation

Donations and legacies
Charitable activities
Other income		 At
1 April 2020
£'000
36
49
8
93		 Released
to income
£'000
(36)
(49)
-
(85)		 Deferred
during the
year
£'000
-
692
-
692		 At
31 March
2021
£'000
-
692
8
700

Income is deferred when cash is received in advance of the charity being entitled to it, for example when funding is given a specific future date or for a specific activity that hasn't yet been performed. The significant increase is due to unspent income due to the Covid pandemic being deferred.

Donations and legacies
Charitable activities
Other income		 At
1 April 2019
£'000
312
61
8
381		 Released
to income
£'000
(312)
(61)
-
(373)		 Deferred
during the
year
£'000
36
49
-
85		 At 31
March
2020
£'000
36
49
8
93

20. Creditors: amounts due after 1 year

Group Charity
2021 2020 2021 2020
£'000 £'000 £'000 £'000
Creditors - - - -

67

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

21. Movements in funds

As at 31st March 2021

As at 31st March 2021
Unrestricted funds:
Designated Fund
Restricted funds
American Express
Bedford & Luton: LGBT wellbeing
ECDC
Elton John AIDS Foundation: Online counselling
Gilead: Can't pass it on campaigns
Gilead: Bristol homeless
Gilead: Covid response
Hardship legacies
Intuit
John Browning Trust
MAC: Positive voices
MacFarlane Trust
MSD: HIV stigma
MyLotto
NLCF: Beneficiary programme
NLCF: Peer support Scotland phase 1
NLCF: Peer support Scotland phase 2
NLCF: Scotland Covid 1
NLCF: Scotland Covid 2
NLCF: England Covid
NLCF: Covid response
PHE: Their story your choice
PHE: Pharmacies
ViiV
Anonymous restricted donations
Other restricted donations
Other restricted grants
Restricted income funds
Permanent endowment
Total restricted funds
Total funds
Pension fund
Total unrestricted funds
General fund		 Opening
balance
£'000
11,061
8,500
(2,877)
16,684
85
-
10
59
6
-
-
-
5
-
45
694
-
6
188
78
-
-
-
-
-
24
-
-
-
25
-
1,225
236
1,461
18,145		 Income
£'000
10,012
-
-
10,012
-
26
-
-
-
19
60
50
18
6
1
-
4
-
283
-
97
16
25
100
75
7
40
10
14
-
56
907
6
913
10,925		 Expenditure
£'000
(10,346)
-
108
(10,238)
(59)
(23)
(10)
(59)
6
(17)
(34)
(50)
(19)
(6)
(36)
(85)
-
(6)
(202)
(61)
(22)
(14)
(3)
(94)
(31)
(21)
(1)
(8)
-
(8)
(56)
(919)
(1)
(920)
(11,158)		 Other
movement
in funds
£'000
638
900
710
2,248
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(17)
17
-
-
-
-
-
-
-
-
-
-
-
63
63
2,311		 £'000
11,365
9,400
(2,059)
At the end
of March
2021
18,706
26
3
-
-
12
2
26
-
4
-
10
609
4
-
270
-
92
2
22
6
44
10
39
2
14
17
-
1,214
303
1,517
20,223

68

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

21. Movements in funds

As at 31st March 2020

As at 31st March 2020
Opening
balance
£'000
Unrestricted funds:
12,659
Designated Fund
8,500
(3,138)
18,021
Restricted funds
American Express
13
Anglo American African Health Promotion Faith and Communities Project
1
Anglo American Group Foundation
13
Barclays Spectrum: Work positive
86
CHAFEA
-
City Bridge Trust
-
Comic Relief: SWISH
5
ECDC
-
Elton John AIDS Foundation: Online counselling
-
Gilead: Can't Pass it on Campaigns
-
Gilead: HIV live!
-
Hardship legacies
10
Intuit
-
MAC: Positive voices
-
MacFarlane Trust
803
MyLotto
-
NLCF: Beneficiary programme
-
NLCF: Peer support Scotland
-
PHE: Their story your choice
-
Reward Gateway: Work Positive
-
Other Restricted Funds
16
Restricted income funds
947
Permanent endowment
267
Total restricted funds
1,214
Total funds
19,235
Pension fund
Total unrestricted funds
General fund		 Income
£'000
10,710
-
-
10,710
128
-
-
-
45
26
-
22
65
29
32
-
22
51
-
7
444
236
43
40
103
1,293
6
1,299
12,009		 Expenditure
£'000
(11,325)
-
98
(11,227)
(56)
(1)
(13)
(86)
(45)
(26)
(5)
(12)
(6)
(23)
(32)
(10)
(17)
(6)
(109)
(1)
(256)
(158)
(19)
(40)
(94)
(1,015)
(1)
(1,016)
(12,243)		 Other
movement
in funds
£'000
(983)
-
163
(820)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(36)
(36)
(856)		 £'000
11,061
8,500
(2,877)
At the end
of March
2020
16,684
85
-
-
-
-
-
-
10
59
6
-
-
5
45
694
6
188
78
24
-
25
1,225
236
1,461
18,145

69

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

21. Movement in funds (continued)

Unrestricted funds are funds that the Trustees are free to spend on any charitable activities.

Designated funds are funds covering assets that can not easily be liquidated, and costs put aside for the purchase of new offices in Brighton and Glasgow. Purchase of the London office was completed in December 2019. Due to the impact of COVID-19 the building has still not been occupied fully.

The pension fund represents the value of the defined benefit scheme at 31st March 2021. This fund is held separately from the Charity and is not available for distribution on charitable activities.

Permanent endowment

A legacy was received in 1994/95 which the donor specified should be held as a permanent endowment. This was invested in Common Investment Funds but transferred in the 2016/2017 financial year to Rathbones. Any income from this endowment is included in the unrestricted funds but losses or gains on the investment, arising from changes in market value, are included in the endowment fund.

Restricted funds

Restricted funds relate to statutory grants and voluntary income received towards the charity’s activities where their use is restricted by the conditions imposed by the grantors or donors. The majority of restricted income is spent in the same year that it is received. A description of our material restricted funds is given below:

American Express: Volunteer training programme

Supports the infrastructure of the volunteer programme in London and Brighton. The partnership helps to improve volunteer management systems to recruit, train and retrain volunteers.

Anglo American: Group Foundation

African health promotion.

Anglo American: African health promotion, faith and communities project

An innovative project focussed on engaging African faith and community leaders across the UK to provide the congregations of churches, mosques and other community groups with the opportunity to test for and learn about HIV within their community.

Barclay's Spectrum: Work positive

Peer mentoring, support and training for people with HIV to access employment opportunities.

Bedford & Luton: LGBT wellbeing

Supporting the LGBT populations in Luton and Bedfordshire by running a community reach service engaging individuals, their families and professional involved in their care, we offered support via case management and training and LGBT and Diversity issues.

CHAFEA

Creating a training programme for community healthcare workers to improve their work with MSM in the rest of Europe.

City Bridge Trust

Counselling service for young people in London.

Comic Relief: SWISH

Vital support service for sex workers.

ECDC

Test finder to co-ordinate the development & promotion of the European test finder online tool in countries within WHO & European regions.

EJAF

Online councelling.

Gilead: Bristol homeless

Providing additional screening for HIV for the Homeless populations in Bristol during the pandemic. The local authority used local hotels and hostels to house the homeless while housed communities were being asked to work from home and stay at home, we used this grant to expand the capacity of a testing while this population was in secure accommodation.

70

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

Gilead: BAME & MSN can't pass it on campaigns

Terrence Higgins Trust's successful campaign Can't Pass It On, explains that people on effective treatment cannot pass on the virus.

Gilead: HIV live!

Sharing information about growing older with HIV

Intuit

Policy research project funded by a University

John Browning Trust

Supports service users who are growing older with HIV. Includes our ‘Before 96’ learning and support group for people who are long term diagnosed and social activities for people aged 50 and over.

MAC: Positive voices

Positive Voices is a project where people living with HIV go into schools, colleges and universities to tell their stories and talk about HIV. The project presents a unique opportunity to improve sexual health while directly addressing HIV stigma amongst the younger generation.

MacFarlane Trust

As part of a deed of gift on the closure of the MacFarlane Trust the assets of the organisation were donated to the Terrence Higgins Trust. Under the Deed of Gift the funds are for services supporting beneficiaries that the MacFarlane Trust was set up to work with.

MSD: HIV stigma

A programme of co-designed and peer-led workshops for people living with HIV to understand and address stigma, build confidence and resilience for the future. Participants build a toolkit throughout the workshops to continue to build confidence and resilience beyond the workshops.

MyLotto

Digital service delivery access online for the work positive programme.

The National Lottery Communities Fund: Beneficiary programme

This will deliver a three year programme that will improve the way the organisation works with our diverse beneficiaries so as to ensure that what we do and the services we provide better meet their needs and involve them more in designing, delivering and evaluating them. The programme is operating from three key geographical areas: London, Brighton and the East of England.

The National Lottery Communities Fund: Peer support Scotland, phases 1 & 2

This is a new kind of service for people living with Hepatitis C and or HIV. Our expert team of Living Well Specialists support and offer advice on issues around both conditions, through one-to-one mentoring, group activities and learning workshops.

The National Lottery Communities Fund: England covid support

Emergency funding during Covid for THT Direct posts in Counselling, Ageing, and MyHIV Forum.

The National Lottery Communities Fund: Scotland covid support 1 & 2

Partly an uplift on an existing NLCF grant specifically to fund emergency social care interventions like provision of food and other essentials for people living with HIV and/or hep C during the first four months of lockdown.

The National Lottery Communities Fund: Covid response

Emergency funding during Covid for a Hardship Coordinator post, test kits, and social media

PHE Innovation Fund: Pharmacies

Through the creation of a bespoke digital training programme and resources and working with at least 50 community pharmacies in areas with a high BAME and high HIV prevalence, to encourage them to provide culturally appropriate PrEP and sexual health advice to up to 1,000 BAME clients

PHE: Their story your choice

Production of short films inspired by the real life experiences of people from black African communities living in the UK.

Reward Gateway

Peer mentoring, support and training for people with HIV to access employment opportunities.

Viiv Healthcare:

Involving peers in the service delivery of Groupwork.

Hardship donations

Donations provided for the financial support to those suffering hardship while living with HIV.

71

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

22. Analysis of group net assets between funds

As at 31st March 2021

As at 31st March 2021
£'000
General Funds
8,220
Subsidiary company
-
Total unrestricted funds
8,220
Restricted funds
-
Permanent endowment
-
Total restricted funds
-
Total funds
8,220
Intangible
and Tangible
Fixed Assets		 £'000
8,544
-
8,544
304
304
8,848
Investments		 £'000
3,959
41
4,000
1,214
-
1,214
5,214
Net current
assets		 £'000
(2,059)
-
(2,059)
-
-
-
(2,059)
Long-term
liabilities		 £'000
18,664
41
Total funds
2021
18,705
1,214
304
1,518
20,223

Prior year comparative As at 31st March 2020

£'000
General Funds
22,093
Subsidiary company
-
Total unrestricted funds
22,093
Restricted funds
-
Permanent endowment
-
Total restricted funds
-
Total funds
22,093
Intangible
and Tangible
Fixed Assets		 £'000
6,817
-
6,817
205
205
7,022
Investments		 £'000
4,745
278
5,023
1,225
-
1,225
6,248
Net current
assets		 £'000
(2,877)
-
(2,877)
-
-
-
(2,877)
Long-term
liabilities		 £'000
30,778
278
Total funds
2020
31,056
1,225
205
1,430
32,486

72

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

23. Lease commitments

As a lessee, the charity had future minimum commitments at the year end under non-cancellable operating

Not later than 1 year
Later than one year and not later than 5 years
Later than 5 years		 2021
£'000
241
85
-		 2020
£'000
91
135
-

As a lessor, the charity had future minimum rental income at the year end under non-cancellable operating

Not later than 1 year
Later than one year and not later than 5 years
Later than 5 years		 2021
£'000
55
26
-		 2020
£'000
139
25
-

24. Legacies Receivable

At the year end the Charity had been notified of an estimated £0.7m (2019: £2.6m) of residual legacies and are expected to be received by the Charity over a number of accounting periods. These mainly comprise shares in properties and investments held in trusts and have not been recognised as income by the Charity as we have been unable to form a reliable estimate of the amounts the Charity is entitled to.

25. Taxation

No corporation tax has been provided in these accounts because, as a registered charity, Terrence Higgins Trust is entitled to the exemptions granted by sections 466 to 493 Corporation Tax Act 2010. Terrence Higgins Trust is a partially exempt business, which means it can only reclaim a small proportion of the Value Added Tax (VAT) it incurs on expenses. The amount of irrecoverable VAT suffered by Terrence Higgins Trust on its expenditure during the year was £301,349 (2020: £942,059).

26. Subsidiary companies

The Charity has investments costing £100 (2020: £100) in two companies (2020: 2). The shareholding comprises ordinary shares. Details of the subsidiary companies at 31st March 2021, which were incorporated in England and Wales and are wholly owned or controlled directly by Terrence Higgins Trust, are set out below:

Subsidiary companies Activity Terrence Higgins Enterprises Limited Fundraising Crusaid Limited Dormant

Summary accounts for Terrence Higgins Enterprises Limited are shown in note 27.

73

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

27. Terrence Higgins Enterprises Limited

Profit and loss account
Turnover
Cost of sales
Administrative expenses
Profit on trading activities
Interest
Profit for the financial year
Profit donated through gift aid
Profit for the financial year after gift aid
Retained profit brought forward
Balance sheet
Cash
Debtors
Amounts from parent undertaking
Amounts
Other creditors
Net assets
Net assets
Share Capital
Retained profits
Capital and Reserves
Retained profit carried forward		 2021
£'000
116
(77)
(3)
36
-
36
-
36
6
41
70
12
11
(52)
41
41
-
41
41		 2020
£'000
276
(2)
(2)
272
-
272
-
272
6
278
8
7
295
(31)
278
278
-
278
278

28. Related party transactions

There were no material related party transactions during the year other than the transactions with the subsidiary company, Terrence Higgins Enterprise Limited and donations from Trustees that are described below (2020: none)

In 2021 the charity hadn't charged Terrence Higgins Enterprise Limited for any management fees (2020: none), although they have been accrued and will be charged in the 2022 financial year (£34,878).

In 2021 Terrence Higgins Enterprise Limited did not subcontract the provision of certain long term condition management services to the charity (2020: none)

All profits made by Terrence Higgins Enterprises Limited will be gifted to the charity, the profits in 2020 of £36,000 will be transferred under member resolution in 2022 (2020: £278,000).

During the year Trustees have made donations to the Charity with a total value of £13 (2020: £3,256). No conditions were attached to these donations. There were no other related party transactions in the current or previous periods.

74

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

29. Notes to the consolidated cash flow statement

Adjustments for:
Pension adjustment
Additional Pension Contribution
Investment income
Investment charges
Bank interest received
Interest paid
Depreciation and amortisation charge
Gain on disposal of fixed assets
(Increase) / decrease in debtors
(Increase) / decrease in stock
(Decrease) / increase in creditors
Net cash provided by (used in) operating activities
(b)
Analysis of cash and cash equivalents
Cash held at bank and in hand
Liquid resources - cash held on short term deposits
Total
Net income / (expenditure) for the reporting period (as per the
Statement of Financial Activities)
Net (gain) / loss on investments		 2021
£'000
1,368
(1,601)
(108)
-
(143)
48
(32)
31
258
-
605
-
508
934
2021
£'000
168
5,221
5,389
5,389		 2020
£'000
(1,153)
910
(98)
-
(157)
39
(39)
47
156
3
211
-
(1,494)
(1,575)
2020
£'000
142
5,169
5,311
5,311

75

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

TERRENCE HIGGINS TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

  1. Terrence Higgins Trust Scotland

This is a summary of the activities of the Terrence Higgins Trust in Scotland.

As at 31st March 2021
Income:
Donations and Legacies
Charitable Activities
Total
Expenditure on:
Charitable expenditure
Clinical
Health Improvement
Long Term Condition Management
Premises
Support Costs
Total
As at 31st March 2020
Income:
Donations and Legacies
Charitable Activities
Statutory income for charitable activities
Other incoming resources from charitable activities
Total
Expenditure on:
Charitable expenditure
Clinical
Health Improvement
Long Term Condition Management
Premises
Support Costs
Total
Net income (expenditure)
Statutory income for charitable activities
Other incoming resources from charitable activities
Net income (expenditure)		 Unrestricted
£'000
-
345
-
345
-
265
22
-
-
287
58
Unrestricted
£'000
9
319
2
330
-
277
11
142
-
430
(100)		 Restricted
£'000
138
-
-
138
-
-
100
-
-
100
38
Restricted
£'000
236
-
-
236
-
-
158
-
-
158
78		 2021
Total
£'000
138
345
-
483
-
265
122
-
-
387
96
2020
Total
£'000
245
319
2
566
-
277
169
142
-
588
(22)

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

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GLOSSARY

AIDS:

‘acquired immune deficiency syndrome’ — (also known as ‘late-stage’ or ‘advanced’ HIV infection) is a term used to describe the point where your immune system is so badly damaged by HIV that it can no longer protect you from ‘opportunistic infections’. HIV can lead to AIDS without early diagnosis and treatment but having HIV does not mean that you have or will develop AIDS.

HPE:

HIV Prevention England, the Public Health England-funded HIV prevention programme run by Terrence Higgins Trust across England.

HPV:

human papilloma virus is the name for a group of contagious viruses that affect the skin and membranes of the body, which can cause genital warts and cervical cancer.

BAME:

Black, Asian and Minority Ethnic.

LGBT:

lesbian, gay, bisexual and trans.

BHIVA:

British HIV Association

MSM:

men who have sex with men.

Bold Ambitions:

Terrence Higgins Trust’s current strategy (2016-2021).

My Community Forum:

free place to meet other people living with HIV in the UK.

C-Card:

also known as ‘Condom Card’, a membership scheme to provide free condoms to under 25s.

Chlamydia:

a bacterial sexually transmitted infection (STI), often symptom free but left untreated can cause serious problems in men and women. Chlamydia can be easily treated with antibiotics.

Gonorrhoea:

a bacterial STI which lives in warm, moist parts of the body, such as the throat, rectum, penis and vagina. If left untreated, gonorrhoea can cause infertility in men and women. Gonorrhoea is treated with a course of antibiotics.

HIV:

‘human immunodeficiency virus’ – a virus which weakens your immune system. Over time, without treatment, illnesses and infections it would normally fight off will be able to enter your body and take hold more easily. HIV medicines (known as ‘antiretrovirals’) keep HIV under control. If you are diagnosed early and start treatment, your immune system is less likely to get damaged. After being diagnosed with HIV most people are able to continue their lives without many alterations and live a normal lifespan.

NHTW:

National HIV Testing Week , an annual campaign

PARTNER study:

an international study which looked at 888 gay and straight couples (and 58,000 sex acts) where one partner was HIV positive and on effective treatment and one was HIV negative. Results found that where the HIV positive partner had an undetectable viral load, there were no cases of HIV transmission whether they had anal or vaginal sex without a condom.

PARTNER2 study:

The PARTNER 2 study looked just at gay men and also reported zero transmissions after looking at almost 800 gay couples and 77,000 sex acts without condoms in serodifferent couples where the HIV positive partner is using HIV treatment.

PEP:

post-exposure prophylaxis. A course of medication that someone takes shortly after possible exposure to HIV (following assessment by a doctor), to reduce the possibility of contracting HIV.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

PHE:

Public Health England, an executive agency, sponsored by the Department of Health that exists to protect and improve the nation’s health and wellbeing, and reduce health inequalities.

PLWHIV:

people living with HIV.

Postal testing:

HIV testing by post, where a finger-prick blood sample is taken at home and sent to the laboratory. Results are given by text message or telephone call.

PrEP:

pre-exposure prophylaxis. A course of HIV medication taken by an HIV negative person (at risk of HIV), prior to potential HIV exposure, to prevent HIV transmission.

caused by one of three things: bacteria, viruses or parasites. Some STIs can cause symptoms within days, others may not show any symptoms and can only be detected by sexual health screening.

THT Direct:

Terrence Higgins Trust’s free helpline, providing advice and support on issues around HIV and sexual health. THT Direct can be contacted on 0808 802 1221 – it is free from landlines and mobiles. Calls will not show up on any phone bill.

Undetectable viral load:

an ‘undetectable’ viral load does not mean there is no HIV present – HIV is still there but in levels too low for the laboratory test to pick up. Different laboratories may have different cut off points when classifying an undetectable viral load, however most clinics in the UK classify undetectable as being below 20 copies/ml.

Self test:

HIV tests that can be taken at home (or anywhere), that give you your results back in around 15 minutes.

RSE:

Relationships & Sex Education, previously referred to as SRE (sex and relationships education) or PSHE (personal, social, health and economic education).

STI:

sexually transmitted infections are infections you can pick up and pass on during sex. STIs can be

U=U:

‘Undetectable equals untransmittable’, the message to explain what was proven by the PARTNER study, and which is the backbone to the Can’t Pass It On campaign.

Viral load:

the amount of HIV particles (copies) in a millilitre (ml) of blood – eg, 100 copies/ml.

World AIDS Day (WAD):

1 December – a day for people across the world to unite in support of the fight against HIV.

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

THANK YOU

Our supporters are the reason we can continue our vital work. We would like to thank everyone who has donated, participated or pledged throughout this challenging year.

WE WOULD TO LIKE TO GIVE SPECIAL THANKS TO:

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

We couldn’t do it without you. From all of us, but most importantly, on behalf of all people living with HIV, and those who are benefitting from better information about HIV and sexual health – thank you.

James Beeby,

Director of Income Generation, Terrence Higgins Trust

A SPECIAL THANK YOU ALSO TO:

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

PATRONS AND LEGAL ADMINISTRATORS

PATRONS INCLUDE:

Lord Black of Brentwood Simon Callow CBE Lord Cashman CBE Julian Clary Martin Clunes Dame Judi Dench Tracey Emin CBE Lord Fowler Sonia Friedman OBE Stephen Fry Paul Gambaccini Lord Glendonbrook CBE Charles Hart Sir Elton John Lord Kirkwood of Kirkhope Beverley Knight Canon Doctor Paul Oestreicher Professor Anthony Pinching Caroline Quentin Danny Rampling Gaby Roslin Sir Antony Sher KBE Dr Miriam Stoppard OBE Dr Rupert Whitaker Tony Whitehead MBE Johnny Wynne-Williams

REGISTERED OFFICE

BANKERS

National Westminster Bank PLC 1-4 Berkeley Square House Berkeley Square London W1J 6BR

FUND MANAGERS

Rathbone Investment Management Ltd 8 Finsbury Circus London EC2M 7AZ

SOLICITORS

Bates Wells Braithwaite LLP 10 Queen Street Place London EC4R 1BE

Weil, Gotshal & Manges LLP 110 Fetter Lane London EC4A 1AY

Russell—Cooke LLP 2 Putney Hill London SW15 6AB

439 Caledonian Road London N7 9BG

AUDITORS

haysmacintyre 10 Queen Street Place London EC4R 1AG

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

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© Terrence Higgins Trust, September 2021. Terrence Higgins Trust is a registered charity. Registered charity no. 288527 in England and Wales, and registered charity no. SC039986 in Scotland. Registered company no. 1778149.