AGE UK HAMMERSMITH & FULHAM ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Company no. 01685692 Registered charity no. 289124 Age UK Hammersmith & Fulham CONTENTS Page Reference and Administrative Information Chair's Report Chief Executive's Report Trustees, Report Independent Auditor's Report Statement of Financial Activities 19 Balance Sheet 20 Statement of Cash flows 21 Notes to the Financial Statements 22 Age UK Hammersmith & Fulham REFERENCE AND ADMINISTRATIVE INFORMATION Age UK Hammersmith & Fulham is registered as a company and as a charity in England & Wales Principal place of business & Registered Off ice 105 Greyhound Road London W6 8NJ Contact information Telephone number.. 020 7386 9085 Website address: http'.Ilwww.ageuk.org.uklhammersmilhandfulham E-mail address.. info eukhf.or .uk Trustees Trustees in office from 1 April 2023 to the date of this report are as follows: Robin Fawcelt (Chair) Alistair Baxler {Vice Chairl Ernmanuel Asamoah (Treasurer) Liz Baran Amanda Lloyd-Harris (resigned 16 May 2023) James Flilton Seema Odedra Andrew Lyons Alexandra Stainow Chief Executive Company Secretary Derec Craig Derec Craig Advisors Independent Auditor Knox Cropper LLP Chartered Accounlants 65 Leadenhall Streel London EC3A 2AD Solicitors Woodfords 11 Harwood Road London SW6 4QP Bankers Lloyds Bank plc 21-25 King Slreel Hammersmith London W6 9HW Age UK Hammersmith & Fulham Chair's Report l am pleased to present my update for the year which has been one of growth, challenges, and Iremendous achievemenls. Despite the ongoing global uncertainties, we have continued to provide unwavering support and care to our elderly communily, ensuring they receive the dignity. respect and engagement they deserve. Ful5 delails of our achievements this year can be found in Derec Craig'g report. Highlights are: 1. Expansion of Services This year, we successfully expanded our services, reaching over 1500 elderly individuals across the Borough. 2. Facility Upgrade Thanks to a generous donation, we refurbished our Centre in Greyhound Road. 3. Volunteer Engagement Our volunteer programme has remained stable with over 200 volunteers serving our clienls. We had 57 new volunteers joining us this year. Their contributions have been invaluable, trom assisting with daily activities to providing companionship and support to our service users. 4. Community Partnerships We strengthened our partnerships wilh local businesses such as Liberty Global, Housing 21, Good Gym and LMA Properties who have supported us with funding and volunleering. Financial Overview Our linancial health remains robust, thanks to the support we receive from Ihe Borough of Hammersmith and Fulham. and the generous donations from our grant funders and supporters. PrLJdent financial management is also a priority for our charity. This year. we raised £386,476 through lundraising events, grants, and individual donations. Our expenditure focused on expanding services, upgrading lacilities, and developing new programmes, ensuring that every pound spent directly benefits our elderly community. Challenges Like many organisalions, we faced challenges this year, primarily due to the ongoing inflalionary pressures. As we enter the new financial year, and with a change in government, there is still uncertainly about the issues that continue to affect older people. Looking Ahead Age UK Hammersmith & Fulham Chair's Report The coming year holds exciting prospects for our charily. We plan to.. Further expand our home care services to underserved areas. Develop addilional programs focusing on physical health and wellness. Increase our advocacy efforts to highlight the needs and rights of the elderly in our community. Enhance our digital infrastructure to slreamline operations and improve service delivery. Gratitude l extend my gratltude to our board members, staff, volunteers, donors. and partners. Your unwavering support and dedication are the pillars of our success. i ogether. we are making a significant difference in the lives of our elderly community, ensuring they live wllh dignity, joy, and love. Robin Fawcett Chair Age UK Hammersmith & Fulham Chief Executive's Report CHIEF EXECUTIVE'S REPORT The cost-of-llving crisis continued throughout the financial year has impacted our service users, staff and volunteers. We extended our decision to reduce our lunch prices from £4.50 to £2.00. with the help ol grants from Harnmersmith and Fulham Giving and Hammersmith United Charilies. We also received £60k from London Borough of Hammersmilh and Fulham, in additional grants and used il to bolster our Information and Advice Service to provide welfare benefit, housing and social care advice. We again opened a warm hub at our cenlre and so that clients had a space to come and relax in a warm environment, whilst having activities to keep them occupied. Whilst we continued lo work in partnership with the London Borough of Hammersmith and Fulham and The Big Lottery, we initiated fresh and interesting ways to secure better health and independence for older people, and lo promote images of a healthy and happier later life. Our partnership wilh the Royal Marsden, to encourage residents to get a take part in a health survey and lung scan to detect potential disease early where treatment can be rnosl effective. ended in the summer. It was a successful partnership, and we had referred a large number of residents to the project. Charity Shop In March 2024 our partnership with Land Securities that had operated over several years, came to an end when the W12 Shopping Centre in Shepherds Bush Green was sold to Wesl 12 Investments Limited. We look forward lo having a constructive working relationship with the new owners. We continued to sell donated goods at the W12 Shopping Centre in Shepherds BLJsh Green. The donalions from the public have been imrllense. The income generated from those sales are fed back into the spending on projects and activities for older people that helps lo reduce loneliness and isolation. I would like lo pass on my heartfelt thanks to the staff al Land Securilies and the generosity of the public and local businesses, without whom our success wouldn't be possible. Fundraising Our fundraising continues to grow, and we have participated in various fundraising events. This included our second Carol Concert, London Landmarks Half Maralhon. London to Brighton Cycle Ride, Royal Parks Half Marathon and London Legal Walk. We also hosted a spring barbecue, which was well attended. 11 is important thal we highlight the issues aflecting older people and takes steps to reduce and mitigale the elfects. By fundraising through events and activities, we can generate funds that can help to tackle the problem. I would like to thank the following organisations and individuals who have contributed lo our fundraising efforts. The Charity of Sir Richard Whittington, TesGo Community Grants, Age UK, H&F Giving. Also, a special mention lo Liz Baran on behalf of her mother, LMA Properly & SWM Partners who were our Carol Concert sponsors. Age UK Hammersmith & Fulham Chief Executive's Report Our key achievements Our key achievements have included- Supporting 1,591 older people. with 13,788 contacts with our service users. We delivered up to 194 befriending volunteering hours per week, we made 58 new ccimpanionship befriending matches, and up io 121 older people received a weekly befriending service. 218 older people received ongoing practical help, and 93 older people received one- off practical help. We had a total 0186 unique shopping service users and ran 128 shopping trips. We had 702 Advice and Information client conlacls with a mix ol telephone appointments and face-to-face contact. Healthy, freshly cooked lunches continue to be the locus lor our Community Café, and the numbers attending have continued to increase. The Community Calé served 4,812 lunches over the year. We held 1407 one-to-one digttal skills sessions and 392 one-to-one outreach information sessions. We also provided 22 staff training interventions. We had over 210 active volunteers. 40 new volunteers were recruited, and 17 pre- existing volunleers re~engaged. Befriending Befriending is an essential service al Age UK Hammersmith & Fulham. Many older people feel isolated and lonely. We try to alleviate this loneliness by providing emotional, practical and social support. Our clients are aged 50 and over. Ihey have little or no conlact with others and do not often leave their homes., they might be ill or disabled. and they might have non-acute mental heallh needs or lack confidence because of recent life~changing experiences. We match an older person with a carefully selected and trained volunteer, who agrees to visit on a regular basis, usually once a week for about an hour or two. Befriending may simply involve popping round lo somebody's home for a cup of tea and a chat bul may include helping an older person with small practical tasks. Staylng Independent- Practical Help Through In-Touch Support, we also help our older residents wllh small practical tasks, such as.. escorling a client to a G P or hospital appointment accompanying an older person to Ihe local library, to shops or a café small gardening jobs Shopplng Service Older people can be less mobile and, without help, would not be able lo do their shopping on their own. Age UK Hammersmith & Fulham Chief Executive's Report We offer a forlnighlly escorted door-to-door shopping service for people who could not otherwise do their own shopping. The trip includes a helpful. fully trained driver who can also help with heavy bags, and usually a volunteer escort to provide additional support. Clients enjoy an increased sense of independence along with a little social engagement. Volunteers are also present to assist in running the shopping trips, carrying bags, and helping clients on and off the minibus. Informatlon and Advice The cost-of-living crisis has continued with sustained rises in energy and food bills. It is important that older people are getting all the benefits that they are enlitled lo claim. And pension credit has become more importanl as it is a gateway benefit that enables older people with low income to access other benefits Staying independent also means being able to make the right decisions for oneself. Issues such as managing money, minimising the impact of life-changing events such as the loss of a spouse or unexpected expenditure, keeping track of spending with a weekly budgel, getting advice from peers who might be in a similar situation on switching services. sorting out paperwork these are somo the key concerns in later life. Therefore we were grateful to have continued support of a granl from the Emmanuel Hospital Foundation to help more older people maximise Iheir income. Too many older people in the UK face poverty and linancial disadvantage which prevents them making the most of later life. We hear from older people struggling to manage on their income or faced wilh unexpecled bills. We help them, through Information and Advice, to know their rights, and to make the best choices for themselves - from identifying benefits to which they are entitled to discussing options that help make later life al home more manageable. Examples of success of the I&A service include offering support and tangible outcomes for clients in the areas of housing benefit, council lax, attendance allowance, and pension credits. 750/0 of service users are aged 60-80, 55 % of service users are women and on average 62010 are non-white British. Combating Social Isolation Digital Inclusion We aim lo encourage health and wellbeing tackle digital poverty and exclusion We continue with several third sector partners across Westrninster, Kensington & Chelsea and Hammersmith & Fulharn to deliver a Digitall project with funding from Imperial College Healthcare NHS Trust and CW+ which is the official charity of Chelsea and Westminster Hospilal NHS Foundation Trust to furlher help reduce digital poverty and help clients access NHS services. Working with the Communlly At Age UK Hammersmith and Fulham, we create opportunities for volunteers lo participate and contribute to the community as active citizens. Volunteering can benefit a variety of stakeholders, from the volunleers themselves and the organisations involving them to service users and the wider community. Partnering In the Community Age UK Hammersmith & Fulham Chief Executive's Report Working in the Borough for over four decades enables us to appreclate how helping older people requires many trusted members of the community to play a role in identifying people at risk and referring them onwards. These community members include GPS and their staff. dislricl nurses, social care workers, people in faith communities, and neighbours and famlly members. We are proud that Age UK H&F is seen to be a dependable and trustworthy organisation in the Borough. Our locus is on collaborating with partnership organisations to share learning and lo ensure Ihat we reach those older residents most in need and provide them with services that reduce loneliness and isolation. Commitment towards being environmenlally friendly and climale change is important to us and we are pleased lo announce that alongside LBHF, we have replaced our inefficient gas boilers with new heat pumps. This will make us use less energy lo heat our centre and thus reduce our carbon footprint. We hope to install solar panels soon which will have a posilive contribution to the environmental impact of our service. Finally, our work would not be possible without the dedication of our volunteers. Most of our outcomes and achieveinents are Ihe result of their hard work and effort. Derec Craig Chief Executive Age UK Hammersmith & Fulham Trustees Report The Trustees present their report and financial statements for the year ended 31 March 2024. Reference and administrative inforrnation sel out on page 1 forms part of this report. The financial statements comply wilh current statutory requirements. the memorandum and articles of association, the requirements of a directors, report as required by cornpany law, and the Stalemenl of recommended Practice- Accounting and Reporting by Charities,. SORP applicable to charities preparing their financial statements in accordance with FRS 102 (second edition - effective 1 January 2019). OBJECTIVES AND ACTIVITIES The objects of the charity are to promote the following purposes tor the benefit of the public and/or older people in and around Hammersmith and Fulham: Preventing or relieving the poverty of older people. Advancing education., Preventing or relieving sickness, disease or suffering in older people (whether emolional. mental or physical. Promoting equality and diversity; Assisling older people in need by reason of ill-health, disability, financial hardship, social exclusion or other disadvantage; and Such other charitable purposes for the benefit of older people as the Trustees may from tirne to time decide. the outcome of thls being the promotion of the well-being of older people. The Truslees referred to the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future aclivities. particular, the Trustees looked at how the planned activities contributed to Ihe aims and activities as set out in the guidance. FINANCIAL REVIEW The charity reported a deficit of £113,606 (2023.. deficit of £38,858) in the year ended 31 March 2024. Total incoming resources decreased to £751,617 from £776,336, reflecting the new Cost of Living project nel of projects coming to a close. For the Cost ol Living project, the charity received funding from the Borough, the Big Lottery and Age UK National. The charity maintained ils income support from the Borough unchanged under contract and unchanged by way of Ihe free rent at the charity's centre. It was a reasonable year for fundraising. Total resources expended also increased to £865,223 from £815,194, due to the new project net ol projects coming lo a close. Reserves were drawn upon to fulld the Borough's programme in accordance with Trustees, plans. Al the year end, the funds of the charity totalled £348,57312023: £462,179) and were split as lo- Age UK Hammersmith & Fulham Trustees Report An unrestricted general fund of £212,78712023: £307,703) which the Trustees can spend as they see fit within the objects of Ihe charity, and £21,291 (2023: £27,440) of unrestricted tunds designated at the discretion of the Trustees for particular purposes, and £114,49512023'. £127,036) of restricted funds to be disbursed al the direction of Iheir funder. GOING CONCERN Trustees have considered the planned financial position through to 31 March 2028. Our basic business model continues as one of servicing the conlractual requirement of the Borough and with fundraising and with usage of reserves on hand to augment their funding for this. The trustees have had several engagements wilh the Council about the future funding and have applied fcjr funding that covers April 2025 lo March 2028. The Council will announce that decision in Jan 2025. As a slrategic partner to the Council, we are very hopeful that the Charity will be successful in the next phase of the tendering process and continue our longslanding relationship. A renewal application to the Big Loltery will be made towards the end of the 2024125 year. Legacy income cannot be foreseen. In the following financlal year 2024125, there has been a staffing reorganisation with several redundancies to save costs as the trustees thought it prudent lo deal with potential deficits early. Truslees conclude that the charity is a going concern until 31 March 2028. A return to surplus is planned in the years from 2025126 to 2027128. RESERVES POLICY This reserves policy is designed to reflect the underlying risks facing Ihe charity and to ensure that the charity has an appropriate level of reserves to cover all costs to.. Cater for unforeseen circumstances, and Provide for the extra and routine costs of a temporary or permanent diminution of activities, should restricted funding be withdrawn andlor the charity encounter a shortfall of unrestricted funding. The Trustees have determined that the charity should hold at least six months of running expenses in reserve. Based on the forecast figures for 2024125, this is represented by a figure of £371,592. At 31st March 2024, the unrestricted free reserves stood at £211,553 (2023.. £307,415), consisting of the unrestricled general income fund 01 £212,787 less thal part held as fixed assets of £1.234. Trustees note that this level ol free reserves is in shortfall of the policy of six months by more than two months. As a significant part of our activities are reslricted i Age UK Hammersmith & Fulham Trustees Report nature, the Trustees are confident that the Charity has enough combined unrestricted and restricted funds to rneel the expected commitments under the reserves policy, parlicularly as the 2024125 expendilure is partly a charge on restricted funds. The ongoing challenge to the charity is lo build up the reserves despite the subsidy needed by the Borough's programme. To this end, a dedicated fundraising team is on the staff roll. The policy is reviewed annually by the Trustees. STRUCTURE, GOVERNANCE AND MANAGEMENT The charity is governed by its Memorandum and Articles of Association. Although the charity carries the 'Age UK, name, it is an independenl charity and, in particular, il is independent of Age UK National. However, in order to be able lo use the 'Age UK, name the charity is parly to a branding agreement with Age UK national. The charity has members, as required by UK company law, who have the power al general meetings to effect certain changes upon the charily. so long as company law, the Memorandum and Articles of Association and the Charity Commission allow. Members have not subscribed for any shares. Members can be drawn from the representatives of the volunlary bodies, departments of central Government, local stalutory aulhorilies, companies and unincorporaled associations serving or operating in and around the Borough. Members can also be drawn from those adult individuals. and those individuals aged sixteen or sevenleem years, who are interested in furthering the work of the charity. The Board of Truslees and Directors is elected by, and is subject to re-election by, the members at the Annual General Meeling. Trustees and Directors serve for an initial term of three years. ShoLJld a casual vacancy arise part-way through an elected Board member's term of offlce, then the Board can lill that vacancy overthe unexpired lerm of office. The Board can co-opt persons up lo one-third of its elected number at any lime, and these co-optees will fall for election at the next AGM Elected Directors and Trustees automatically become members ol the charity upon their election. The Board can refuse any application for membership of the charity. The Board can also lerminale an existing membership of the chariiy subject lo the member being heard at a Board meeting before the decision is made and subject to the member appealing to the other members at a general meeting. The Board takes ultimate responsibility for the stewardship of Ihe charity and constitules the Directors under company law and the Trustees under charlly law. The Chief Executive is the most senior employee and he manages the charity overall with the Activity Cenlre Manager acting as his deputy. The Chief Executive reports to the Chair. A finance sub-commiltee meets quarterly, chaired by the Treasurer. INDUCTION AND TRAINING 10 Age UK Hammersmith & Fulham Trustees Report select suitable accounting policies and then apply Ihem consistently- observe the methods and principles in Accounling and Reporling by Charities.. Statement of Recommended Practice applicable to charities preparing their financial slalements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102 second edition)., make judgements and estimates that are reasonable and prudent., state whether applicable Uniled Kingdom Accounting Slandards have been followed, subject to any material departures disclosed and explained in the financial slatemenls. and prepare the financial slatements on the going concern basis unless it is inappropriale to presume thal the charitable company will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position ol the charitable company and enable Ihem to ensure that the financial statements comply wilh the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable sleps for Ihe prevenlion and detection of fraud and olher irregularities. The Irustees are responsible for the maintenance and integrily o* the corporate and financial information included on the charitable company's website. Legislation in the Uniled Kingdom governing the preparation and disseminalion of financial statements may differ from legislation in other jurisdictions. The opinion ol the trustees is that the company is entitled to the exemptions conferred by Section 477 of the Companies Act 2006 relating to small companies. AUDITORS In accordance with company law as the company's directors, we certify that: so far as we are aware, there is no relevant audit information of which the charitable company's auditor is unaware., and as directors of the charitable company we have taken all the steps that we ought to have taken, in order to make ourselves aware of any relevant audit information and to establish Ihat the charitable company's auditor is aware of that information. Knox Cropper LLP were appointed auditors to the company by the Trustees for last year's accounts to 31 March 2023 and. in accordance with the Companies Act 2006, a resolution of re-appointment was passed al the last Annual General meeting for this year's accounts lo 31 March 2024. The annual reporl was approved by the Board on 30 September 2024 and were signed on its behalf by.. Robin Fawcell, Chair Age UK Hammersmith & Fulham Trustees Report Trustees are inducted after a recruitment round thal is followed by a presentation by the charity. Training is available if required. INDEMNITY OF TRUSTEES Both at Ihe date of signing of Ihis report and throughout the year, Article 34.1 of Association required the charity to indemnify any Trustee in accordance with sections 232 to 234 of the Companies Acl 2006. In particular, cover under an insurance policy held by the charity was available in respect of the indemnity ol Trtjstees in the course of Iheir duties. RISK MANAGEMENT Trustees have identified the following categories of risk.. Governance and management Non achievement of stralegic objective Volunteers Disaster recovery and planning Competition Financial Budgetary control and reporting Fundraising targets not achieved Cash flow sensitivity Meeting regulatory and legal requirements Health and Safety Loss of existing funding Change in funding priorities of main funders Relationship with funders Operational Loss of key staff and their relationships And within each category, particular risks have been identified, assessed as to likelihood and impact, and mitigalion techniques put into place. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and Uniled Kingdom Accounting Standards (United Kingdom Generally Accepled Accounting Praclice}. Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the income and expenditure of the charitable company and ils state ol affairs at the end of that period. In preparing those statements the Trustees are required to- Age UK Hammersmith & Fulham Trustees Report 13 Independent Auditor's Report to Ihe members of Age UK Hammersmith & Fulham Opinion We have audited the financial statements of Age UK Hammersmith & Fulham (the 'charitable company,) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balan￿ Sheet, Statement of Cash Flows 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 Financia/ Reporting Standard applicable in the UK and Republic ofJre/and(United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements. give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi￿. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis of 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements In the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the flnancial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant Sections of this report. 14 Independenl Auditor's Report to the members of Age UK Hammersmilh & Fulham (continued) Other information The other information comprises the information included in the annual report, other than the financial statements and our auditors, report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees, report, which includes the directors, report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the direttors, report included within the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified materia5 misstatements in the direttors, report included withln the tn]stees' report. We have nothing to report In respett of the following matters where the Companies Act 2006 requires US to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. or the financial statements are not in agreement with the accounting records and return5. or certsin disclosures of trustees, remuneration speclfied by law are not made. or we have not received all the information and explanations we require for our audit. or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Independent Auditor's Report lo the members of Age UK Hammersmith & Fulham (continued) Responsibilities of Trustees As explained more fully in the Trustees, Responslbllities Statement, 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 15 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosingi as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee5 either intend to liquidate the 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 assLJrance 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, indlvidually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respett of irregularities, including fraud. The extent to which our procedures are capable of detecting Srregularities, including fraud is detailed below: The Charitable Company is required to comply with both company law and charity law and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for restricted funds was of key significance. We gained an understanding of how the charitable company complied with its legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policiesi procedures and controls. The audit team, which is experienced in the audit of charities, considered the charitable company's susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override. Our approach was to check that all restricted income was properly identified and separately accounted for and to enslrre that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions. 16 Independent Auditor's Report to the members of Age UK Hammersmith & Fulham {continued} 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.or .uk auditorsres on5ibilities This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken, so that we might state to the 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 charitsble company and the charitable company's members as a bodyi for our audit work, for this report or for the opinions we have formed. Simon Goodridge Senior Statutory Auditor for and on behalf of Knox Cropper LLP Statutory Auditor 65 Leadenhall Street London EC3A 2AD 2024 17 oN*o NNM mr4 A e UK Hammersmith & Fulham Balance Sheet As At 31 March 2024 Notes 2024 2023 FIXED ASSETS Tangible assets CURRENT ASSETS Debtor5 Cash at bank and In hand io 35,264 343 662 378,926 107,679 423 225 53a,904 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR li {69,089) {116,445) NET CURRENT ASSETS 309,837 414,459 NET ASSETS 14 348 573 462 179 FUNDS Restricted Reserve Unrestrlcted Funds Designated General 13 114 495 127 036 12 21,291 212 787 234 078 348,573 27,440 307 703 335 143 462 179 TOTAL FUNDS The notes on page5 19-32 form part of these financial statements. The financial statements were approved by the Board of Trustees on 30 September 2024 and signed on their half by.. Robin Fawcell. Chair Emmanuel Asarnoah. Treasurer DATE: 30 September 2024 Company no. 01685692 19 A e UK Hammersmith & Fulham Statement of Cash Flows Year ended 31 March 2024 2024 2023 Cash flows from operating actlvities: Net cash provided byl(used in) operat(ng activities 181,136) (13,511) Cash flows from investlng activities: Bank interest Purchase of property, plant and equlpment Net cash provided byl(used in) investing activities 1,573 830 Change in cash and cash equlvalents in the reporting period (79,563) (15,899) Cash and cash equivalents at the beginning of the reporting period Cash and ￿$h equivalents at the end of the reportlng perlod 423 225 439 124 343 662 423 225 Reconclllatlon of net incomel(expenditure) to net cash flow from operoting activities 2024 2023 Net incomel(expenditure} for the reporting period Depreciation charges Bank interest (Increase)Idecrease in debtors Increase/(decrease) in creditors Netcash pmvidedby/(usedinJ operating activities (113,606) 8,984 (1,573) 72,415 (38,8581 11,270 (830) {33,315) 20 A e UK Hammersmith & Fulham Notes To The Financial Statements For The Year Ended 31 March 2024 I. PRINCIPAL ACCOUNTING POLICIES (a) Basls of Preparation The financial stalements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charilies SORP IFRS 102) 'Accounting and Reporting by Charilies: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS 102) second edition,, Financial Reporting Slandard 102 'The Financial Reporting Standard applicable in the UK and Reptjblic of Ireland, and Companies Act 2006. The financial statements have been prepared under the hislorical cost convention with ilems recognised at cosl or transaction value unless otherwise stated in the relevant nole{sl to the finallcial statements. The financial slatemenls are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to Ihe nearesl £. In applying the financial reporling tramework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors. including expectations of future evenls that are believed to be reasonable under the circumstances. The nature of the estimalion means the actual outcomes could differ from Ihose estimates. Any significant estimates and judgements affecting these financial stalements are detailed within the relevant accounting policy below. {bl Going Concern Trustees have considered the planned financial posilion through to 31 March 2028. Our business model continues as one of servicing the contractual requirement of Ihe Borough, with fundraising and usage of reserves on hand to augment their funding for this. Fundraising will continue for other purposes to service other projects. The shop continues as a source of unrestricted funds and we continue lo lease the premises at the Centre rent-free. The Trustees have had several engagements with the Council about the future funding and are confident the Charity will be successful in the next phase of the tendering process from 1 April 2025. The Charity has a strong partnership with the Council and the Trustees are assured that this relalionship will continue for the foreseeable future. A renewal application to the Lottery will shortly be in hand. Legacy income cannot be foreseen. It is forecast that reserves will be £295,031 al 31 March 2025. Trustees conclude that we a going concern unlil 31 March 2028, (c) Income 21 A e UK Hammersmith & Fulham Notes To The Financial Statements For The Year Ended 31 March 2024 Conlract income is accounted for in the period for which Ihe contracts are awarded. conlract income received IN respect of future perlods is deferred. Amounts recharged lo other organisations are accounted for in the period in which the related expense is incurred,. other incoming resources when they are receivable. Donated goods (apart from those for resale in the shopl, facilities and services are included in income at the value thereof to the charity i.e. the amount that the charity would have paid for the goods, lacililies and services or their equivalent on Ihe open market. The income was matched by the equivalent expenditure. The use of the activity cenlre provided by the Borough rent-free was brought into the financial stalements as income at the market rent together with the equivalent rental expenditure. Donated goods for resale in the shop were brought into account when sold with the income recorded being the sale proceeds. There was not any expenditure connecled with their procurement, apart from the costs of transport to the shop from the donors. Legacies ar8 recognised where there is entitlement, it is probable that the income will be received and that the amount can be measured reliably. The value of volunteer lime has not been quantified in the financial statements. Expenditure Expenditure is allocated between costs of charitable activities and costs of fundraising. (d} The amounts allocated to each category comprise those costs which are directly attributable to that category together with an apportionment of support cosls. Support costs are those costs that are not directly attribulable lo a single activily but provide the necessary organisational support for all the charity's activities. The bases of allocation of support costs are explained in note 7lbl. Governance costs comprise Ihe costs of external and inlerllal audit, legal advice for the Iruslees on corporate matters and Ihose associated with constitutional and stalutory requirements. They include an apportionment of the salaries of certain staff. lel Tangible lixed assets Tangible fixed assets costing less than £1 ,000 are written off in the slalement of financial activities in the period in which Ihe expenditure is incurred. The cosl of other tangible fixed assets is capitalised and depreciated over the estimated useful lives of the assets, as follows: Motor vehicles Fixtures & equipment 9 years 3-5 years 22 A e UK Hammersmith & Fulham Notes To The Financial Statements For The Year Ended 31 March 2024 Grants received for the purpose of acquiring tangible fixed assels are credited lo a restricted fund at the time of receipt, as is Ihe estimated cost of assets Ihat are directly donated lo the charity. Deprecialion of all such assets is charged against the restricted fund concerned. (f) Pension costs The charity contributed to employees, private contribution pension schemes. and to the NEST organisalion under H.M. Government's auto-enrolment of pensions. The pension costs represented the contributions payable to these schemes. Igl Leases Rental costs under operating leases (where the risks and rewards attached to the asset remained with the lessor) were recognised in eqLtal allnual instalments over the period of the lease. See note len for details of the operating leases. Finance charges Ljnder finance leases (where the risks and rewards attached to the assets were transferred to the charily as lessee) were recognised under the sum of the digits method. The assets were capila1ised at estimaled cost with the amounts owed to the lessor shown as finance lease creditors including finance charges up to the balance sheet date. Payments under the leases were offset against the finance lease creditors. Finance charges were included in equipynenl costs. (h) Financial instruments The company has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, ot FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the conlraclual provisions of the inslrument. Financial assets and liabilities are offset, with the net amounts presented in Ihe financial stalements, when Ihere is a legally enforceable right to set olf the recognised amounts and there is an intention lo seltle on a net basis or lo realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assels, which include debtors and cash and bank balances. are inilially measured at Iransaction price including transaction costs and are subsequently carried at amortised cost using the effective interest melhod unless the arrangement constitules a financing transaction, where the transaction is measured at the present value of the future receipts discounted al a market rate ot interest. Financial assets classified as receivable within one year are not amorlised. Basic f inanclal liabilities 23 A e UK Hammersmith & Fulham Noles To The Financial Stalements For The Year Ended 31 March 2024 Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitules a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rate method. Trade creditors are obligalions to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction prioe and subsequently measured at amorlised cost using the effective interest method. Derecognition of fjnancial liabilities Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call wlth banks, other short-lerm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. (k) Volunleers The contribution of volunteers to the charity is not quantified in the accounts. Fund accounting Restricted funds are grants and contracts, donations and other incoming resources, which are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged lo the fund. In the event that following Ihe completion of the specific purpose for which the funds had been received there are lunds remaining unspent, the original donor of the funds is conlacled. Following discussions with the donor the funds are relurned, or with the donor's consent either retained and transferred to nrestricted funds or used for similar purposes on another project. Unrestricted funds are grants and contracts, donations and other incoming resources receivable for the objects of the charity without further specified purpose and are available as general funds. 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