Hearing Dogs for Deaf People INCORPORATING: Hearing HEARING DOGS FOR DEAF PEOPLE (A COMPANY LIMITED B Y GUARANTEE) REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 COMPANY NUMBER.. 01964878 CHARITY NUMBER- ENGLANO: 293368 CHARITY NUMBER- SCOTLAND.. SC040486
HEARING DOGS FOR DEAF PEOPLE CONTENTS TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Pag• Tru81ees' Report Strateglc Report 7-12 Stslement of Tru8tee8' re8pon8lklties 13 Audltor8' Report 14-17 C¢Jn801idaled Statement of Flnandal Activlli88 18 Balance She&l 19 Con8olldated Statement of Cajh Flow8 20 Note8 to the Financial Ststemenls 21-37
HEARING DOGS FOR DEAF PEOPLE TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Trustees (who are also Directors of the Charitable Company for the purpose of Company law) present their annual report together with the audited financial slalements for the year ended 31 March 2022. Refergn¢• and admlnlstr4tlvo dotalls of the charlty Company number: 01964878 Charlty numbor. England. 293358 Scotland: SC040488 Ro918tfrred office: The Grange combe Road Saunderton Princes Risborough 8uckingham$hlr¢ HP27 9NS Royal patron.. HRH The Prince88 Royal Pre8ldont: Sir Stuart Hampson CVO Llf• vlc•-prosld•nt•: A G Blunt MBE D A Mclnne5 Vlc•-prnBld•nts: R 8oumg Air Vice-marshal D CwB-Wlliam8 C8 FCIPD FCIM Dr H Harris MB Ch8 FRCGP K W Keir OBE F B Clark IResigned 19 July 20221 Dr 8 Fogle M8E DVM MRCVS A C Bowers Bsc ACA {Re8lgned 1 Oclobei 20211 G P Burchett MBA FCMI E M Bumess IAppoinl8d 11 May 20211 R C88ey BVSC DipECAWBM FRCVS IAppoinlod 17 May 20221 M S Coole Bsc {Appointed 11 May 20211 P Davies Bsc FCA BFP {Appointed 17 May 20221 B S Downes LL.B FSHAA KA England RVN DipCIM Dr V Harrison MA DPhil (Resigned 1 October 20211 DLHay S E Heath BVSC PgCertVE DIpECAm18mI CCAB FHEA FRCVS (Appointed 11 May 20211 A M Horsley JP DL V A Hunt (Resigned 1 October 20211 C McKay (Appointed 17 May 20221 K B Milsom BHSC Hons Msc IAppolnted 11 May 20211 C M P O'Oonovan-R055a BA Hons MA AC18 FCIPD DMS H Self MA, FCA, CTAIFellowl, FRSA (Appointed 17 May 20221 Professor R T Ramsden MBE FRCS V A Hunt was also a stakeholder in the charity Eeing a deaf partner in receipt ol a hearing dog. In accordance wlh the Articles of Assouation. F B C18rk, Dr B Fogle, A M Horsley, K A England, D L Hay, C M P O'Donovan-Rossa. R Casey, P Davies, C McKay and H Self retire at the Annual General Meeting IAGMI and being eligible, offer Ihern5elves for re-election. G P Burchett retires al Ihe AGM and is not seeking re-election. The Trustees each guarantee to contribute an amount not exceeding £10 lo the assets of the charty in the event ol wlnding up.
HEARING DOGS FOR DEAF PEOPLE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Refvronce and admlnlstratlve detalls of the charlty Icontlnuodl Ex•cutive toam: Chief Executsve Director of Corporate Services and Company Sècretary Financè & IT Director M Jennings BA LL.B MBA P R Hester FCA (Resigned 28101r22 C M Hedley BA ACMA (Appointed 13101122} Director of Operali12ll3 J Tommey Bsc Director of Services & Partnershlps A P18tten Director of Quality & Human Resource8 J Gray MBA VN Director of Income Generats'on and S Hey88 Bsc Communications Prfnclpal bankern: Barclays Bank plc PO Box 885 Mortlock House, Vision Park Hislon. Cambridge C824 9DE Sollcltorn: Pennington8 Manches LLP 9400 Garsinglon Road Oxford 8u8ln888 Park Oxford, OX4 2HN 150ns Solicitors Alexandra Hou88 Sl John8 Street Sall8bury, SP12S8 Audltorn: Crowe U,K LLP Aqui8 House 49-51 Blagrav8 Stro¢1 Reading Berkshi RGI 1 PL Stiucturn, Govemance and Management Govomlng Document Hearing Dog8 for De8f People 18 a charitae company limited by guarantee and regislerad as a charity. The charity was Incorporated on 26 November 1985 and ils governing document is 118 Arts'cle8 of A880ciatlon which were adopted on 11 November 2015 and as amended by Special resolutsons passed 25 Jvly 2017, 18 February 2020 and 03 September 2020. Governlng Body Overall responsibility rests with the Board of Trustees who are al80 appolnled a8 Directors of the charllable ompany. The appointment ofTru$tee$ is made in accordance with the Arts'ckes of Assoaation including rgceipl and approval ol an application for membership. The Trustees rneel formally four IITll8s a year, with Tru8lees al80 formlng SIX 8ub-commlitees.' Flnanc8, Business Development, Governance and Audit, R8muneralion and the nY formed Canine Servicos and Hearing Loss Services sub-committees. The Finance and Business Development sulFcommillees meet four times a year and the Governan and Audit, Canine Services and Hearing Loss Services sutrTrcommitt8es meet al least ce a year. The Remuneration sub-committee meets al least once a year primarily lo review the salary of the Chief Executive. Ill 8ddilion, the Trustees hold ad hoc'away d8y8' where governance end the future slralogy of Ihe Charity are discussed. Al sub-cornmittees report into the Trustee Board From lime to time, certain authority from the Trustees is delegated to the Chyèl Executive, who is responsible for the day-lo-day running of the charity.
HEARING DOGS FOR DEAF PEOPLE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 structure, Governance and Managemgnt Icontlnugdl R•cruitment and Training of Trustee# The selection ol Trustees is designed lo gupplemenl the exi8ting ski118 and expert18e of the Board and is governed by an Informal skills assessment. The Trustees have a fomial approach to selection, induction and training, of new Iruslees which Includes the dedaralion ol eligibility to serve as a Trusleg, including nolificalion of any potents.al conflicts of interest, introduction of a code of conduct and deaf awarene5S training. DBS checks are al80 carried out on all Trustee5 who a130 undergo safeguarding training every Iwo years. Applic8ts'on8 to fill vacancies are advertised and shortlisled candidates aro interviewed and references taken up before they are proposed as new Trustees. Outside recruitment agencies are sometimes used lo widen the search for speafically skilled Board members. The Tru¥lee¥ con¥ider it lo be be81 pr8¢tl¢e lo make every effort lo have representation of the charity, beneficlarles on the Board of Tru81ee8. Pay pollcy for ••nlor •t•ff The pay of the Chief Executive is reviewed annually by the Remuneration Committee and normally in¢rea8ed according lo agreed benchmarks and the percentage annual pay award lo all staff are taken into consideration. Pay increases for the executive team are approved by the Chief Ex8cuIIvè after rèviewing perfomiance, benchmarking against other tharilies and taking into account the annual pay awafd Io 811 staff. OrgJnl¥•tlon and Structure The charity employs 184 memberj of staff Ifull-lime equivalentl who are Involved in the labour intensive pro¢¢$s of ¢r¢aling and supporting hèaring dog partnerships and supporting people affected by hearing Ios8. Member5 of 518ff operate within three main d8p8rtmenls as Indicated in the followng organi5alion chart. Oo•rd of frusiee5 Op•i•Uons & rr C•nin4 5èr¥ aA.v1el$ ChfF H¢d neTom Affl JoGr SloY•H After 10 IA year5 as Chief Executiv8 of Hearing Dogs, our Chiel Executive, Michele Jennings will be Stepping down from her role on 29 July 2022 Since her arrival in 2012, the charity has grown signtficanlly and now helps Ihou¥and$ more dgaf and hard.of.hearing people and 18 now in the lop Ioh of UK chanties by income, Michele led the charity safely and successfully through the Severe challeng88 of the Covid pandemic and has omergod stronger than ever thanks lo her badership. She leaves the charity in a strong financial position and with a wid61y respected opèrab.onal and reputslional basis from which to move forniard, Her many qualities will be greatly missed. Group 8tru¢turn and r6latlonshlp8 The charity ha8 a wholly owned subsidiary which Is incorporated in the UK, Hearing Dogs for Deaf People ITradingl Lirnited. The Subsidiary sells promotianal and other goods and operates a reslauranvcalé from premises owned ty the ch8ritable company. It donates 119 taxable profits lo ihe charitable company. Hearing Do9s for Deaf People is a membef of A88i8tance Dogs UK IADUK) and p18ys a full and ath've role in this umbrella Ofganisalion which is open lo assistance dog tharits'es. Under the au$pi¢es of ADUK collaboration tskes place on several fronts induding access, public relab'ons and training Issues. The charity IS also a fully accredited member of Assistance Dogs Europe IADEU) and Assistance Dogs International
HEARING DOGS FOR DEAF PEOPLE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Structurn. Govornance and Management Icontlnugdl IADII and is thergfore involved with assistance dogs organisalions worfdm'de. Hearing Dogs for Deaf People is also a member of the UK Council on Deafness, a national infrastructure organisalion for voluntary Sector organisats'ons working with deaf people Other collaborative relationships wlh whith the tharity 1$ actively involvod inGlude the Deaf Aliance und the MicroGhipping Nliance. Risk Managemènt Thè Trustees of Hearlng Dogs for Deaf PaoFle recognlse and accapl their resFonsibilily for ensuring that risks to vthich ihe charity is exposed are reviewed, and slep8 laken lo miligale the impact of adverse factors through the application of appropriate preventslive controls and corrective actions. A Govemance and Audit sub<ommitlee is In place and a nsk m8n8gemenl strategy has been implemented which compri8es.'- An Bnnual raview of the risks which the tharity may face The eslablishmenl of sy8lem5 and procedures lo miligale identified risks The implemenlalion of procedures designed lo mlnimise ony potentlal impact on the ¢hanty of adverse factors Reporting on the I01 of risk rgmaining after implementing the systems and pro¢edurg8 above. The mo8t gignificant r18k8 to the organ18allon have been Identified a8'.- A shortage ol suitable dogs lo enter the training program A shortage of skilled staff lo train the polenli81 hearing dogs Flnanci81 di8ruption 888waled with Covid-19, Brexit, investment performance arKI the recent cost of Ilvlng rises Threats lo the IT ¥yslgmB Including cyb8r Becurrty, mlsu8e of 8y8lem8 and the trJsl of continual imie81ment in Sysloms 8nd harthare Tho Governance and Audll sUCOmmIttee oversees formal revlews, meets at least twice annu811y and monllors the ongoing op¢ralion•l monagoment de¢ision$ which make suitable adjuslm¢nl$ and amendmen18 to systems and procedures as and when risk5 are idenlilied in everyday operations. The Govem8nce and Audit S¢0MmIttee reports Into the Tru8lee 8oard Obl•ctlv•8, ASm• and Actlvltlel Charit•bl• Obl•ctlv Th8 charity's object8 88 sel out in the Articles of A88ocialion are the prornolion of health and the relief of 8ickne88 In particular by Ifaining, providing 8nd supporting animal assisted intervention in the relief of human dealne88, disability, sickness, suffering or distress, and collaboratsng wlh other charilies where appropriate. In addition lo the objects, the charity Is aligned to the following 81ralegic aim8 a8 8et by the charity's Trustee 'To off•r greater Indgpgndenc9, confSdence •nd companlonshlp to deaf pgople by providing dog3 tralned to support them Jt home and out and about whllst ralslng awareness of deafn988 and by provldlng an evon wlder rang• of seThlcos. through Hoarlng Llnk, to 8UPPOrt those wlth hgarlng lo$$.' 'A commitment to provide highly trained hearing dogs for deaf people and Ilfe-long •upport for the partnershlp between a deaf person and thelr hearlng dog., The Trustees conflrm th81 they have complied vitth the duly of Sectton 17151 of the Charities Act 2011 10 have du8 regard lo the guidance issued by Ihe Chanty Commission on public benefit The charitable purpose for the charity within the meaning of the Acl is enshrined wthin ils objects as staled above
HEARING DOGS FOR DEAF PEOPLE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Objfrctlves. Alms and Actlvltles Icontlnu•dl Alm and lntsnded Impact The aim of the charity is lo provide suitably trained assistance dogs lo de8f or hard of hearing people as identified by our applications process. backet1 by agreed audiology guidelines. Our prfn¢lp41 alm IJ: 'Helping d8af people lo leave loneliness behind and reconnect with life through the proviwon of hearing dogs andlor by providing advice and 5UPPOrt services lo those affeded by hearing loss.. The affect on the individual through the provision of a practical means of identifying irnportanl sounds and danger signals will be greater Independence and security. However, Ihg ImpaGt typically goes lar deepèr than th18 th Introduction of a hearing dog often È<inging further lrf&enh8ncing results. Prlnclpal actlvltlm of tho year The charity's main programme ha8 continued to be the provision of trained and accredited hearing dog8 for eaf and hard of hearing people including the prowsion of hearing dogs for deal children. A small bul Important Bupplem8nlary activity see8 some hearlng dogs working in conjunctlon wh other ADUK charltie6 to provid& dogs lo meet dual di8abililie8, The chanly al80 Pfovides a number of 8UPPOrt dogs lo deaf adults and children. In addition. th6 ch8rfly's actlvltle8 have been expanded through B merger th Hearlng Llnk lo reach out to people wlh he8ring108s and thèir families lo help them Improve their livès. This 1$ achievèd by connecting people with one another, providing information, advice and training and raising 8warene8B and under8t8nding of the profound impact of hearlng loss on every a8pect of Ilfe. All other aCtVIlle8 have been undertaken lo Support the current programme8 and to en8tire the fijture developrnenl and expan81on of the charity and 118 cap8dly lo meet the growlng d&mand for iralned dogg. The ch8nty'8 core value8 underpln everylhlng we do wllh con88qu8nlial benefits for beneflclade8, volunteer8 8nd staff allk8, These value8 are.. .ndnes9, Profe88lcal1sM and Courage. A¢tlvltlo¥ In Scotland - R•gl•tered Charfty Numbgr: SC040486 Hearing Dogs has ontr member of staff pgrmanenlly based in Sc¢ll8nd, supplemented as necessary by management and staff from both the northern and southern training cenlres. Operational needs are covered by a partnership Instrudor who sUPPOrts some 70 Scottish partnerships, while fundraising activities are undert8ken by a full.lime fundraiser based in the North of Eng18nd and a local branch run by volunteer$. Fundraising activities include th& generation of funds some of which are re$iri¢te(5 for use in S¢olland. The Hearing L05s Services team have 3 stsff members opgraling frorn Scotland in roles related lo communic81ion8, communty support and volunteer engagement We receive a partial contribution lo their salartes through the Scolli$h govemmenl project funding.
HEARING DOGS FOR DEAF PEOPLE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Volunt8•r Support A8 ever. we are indebted lo our volunteer family. Oue to the Cowd pandemlc the operation of the organisalion has thanged significanuy since March 2019. The willingness of our volunteers lo adapt and change pr8rti¢69 h8.q hp.An AAlniJnding Thp limF* And Affnrt rAqiiirfid in thA training nf puppies. assisting wth hearin9 link adivilies, fundr8ising. and speaking on our behalf is significant and is gr8ally appreciated throughout thè oryanisalion. Many volunteers hav8 been busier than ever, whilst unfortunately 30me volunteering has been on hold or Severely limited since the first lockdo5. In both in8tsnce8. we have continued lo ChaMOn and thank our volunteers for Ihelr incredible capability and reslliere. The charity had 3,09312021.. 3, 1 l¥ volunteers al 31 March 2022 which lor the first year ever include¥ 135 micro volunteers. Overall volunteer numbgrs remain slalic however, for the secon(J year nce the Covid pandemic, there is a decrease-15412021...250) in the number of reglslered volunteers li e., those who have entered into a lormal a9reemenl with the charilyl to 2,95812021." 3.1121 however this nel decrease masks volunteer tumover which recorded 40312021. 2861 new volunteers and 55712021." 5361 departuro8. Provlslon of Informatlon to audltorn Each of the persons %tho are Directors at the lilre %then IhiB Dlrector8' rep)rt is approved h88 confirmed that.. ao far 88 that Director is aware, Ihere is no relevant audll Informatlon of which the Company's auditors are unawaro, and that Director has taken all tha 8teps that ought lo have been taken as 8 Director in order lo be aware of ony inforrnalion n¢¢ded by the Comp8ny'8 auditor6 In connection wlh preparing their report and lo establiyh that the Comp8ny's auditors are aware of Ihal 1n1wmatn. Audltor• In accordance I1h Section 485 ofthe Compankns Act 2006, a resc4ulion propo$ing the respintment of Crowe U.K. LLP as audltors of the CoMnY will be put lo the Annual General Meetsng. Approved by the board on 19 July 2022 and 8igned on their behalf by loik . C M P O'Donovan-Ros8a (Chairman)
HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2022 Review of the charity, and it8 achlev8m•nts and porforniancg for thg year Obloctlvm for the yr The chanty maintains a balance baeen the resources required to meet ils commlimenls to the people with hearing loss rt seeks lo serve and those qUired to train and 8UPPOrt the dogs which are an integra1 and vital part of the SUC35 of the org8ni8atson. The key a8pect8 of the charills plans In 2021122 were to.. increase the tharily's impact in helping people experiencing mild lo moderate heariThJ loss as well a8 those with profound hearing Ioss. continue lo train some 200 dogs per annum for core deaf support roles., maint8ln the ¢horily's financial perfomiance and 118 Strong balance sheet by developing and 8XP8ndi new and existing income 8trearns, constraining costs and ensuring all charity assets are fully uts'lised., increase public awareness of the charity and maximise thè resulting fundraising opportunities,. re-open The Grange reslauranvcafé and glft 3hop and return the trading subsidrary lo profitability 80 as lo deliver 8 sustainable income stream for the charity in thè longer-lem,. build on the existing volunteer neork and expand Ihe breadth 8nd depth of the charity'8 8arvlc88 induding further development of micrtrvolunteenng. Continue to work tow8rd8 the objectrv88 of the Hearing Dogs Five Ye8r Plan %thich wa8 inrtialed In 2021 Strntfrgl•8 to i¢hl•v• th• year's obJ•ctlve The followlng 8lralegio9 for achieving tha obiecllves stsled ave were PLrt in place la.. extend the charity's Hearing Los8 Service$ through Hearing Link in¢luding s¢lf-h¢lp resources, the helpdesk. LiveCh81, the online shop and specific projects and events run by both Staff and volunleor5, bulld on the charity's OFeralions vknich are made up of three national teams namely C8nin¢ Sèrvices. Hearing Loss Services and Quallty A8sur8nce. Continue the review and refinement of oper8lional process98 and procedures working c108ely wllh staff and volunteers. Improve produ¢tivity an¢J quolity a8¥uronce through irnproving 8tandar(Js of welfare, training and 8s8essmenl'. •velop new income streams including expansion of the puppy sponsorship regular glvlng scheme UBing 811 m8di8 ch8nnels particularly direcl markellng, regular communication8 8nd 8pp881s to new and longer-lerm supporters. Constrain revenue and capital expenditure thrgh light budgetary nlrol and the 51reamlining of opgrational and supporting activities., mpltrm&nl a detailed programme of communications and events including the provision of information on 811 fundraising opportunities and evonls via soci81 medi8 channels 8nd the ch8dty'8 website,. Buildlng our relationship$ with $uppli¢rs and our outsourced caterer lo deliver high quality go(>Js and 8ervice8, attracting new customars, and increasing income and controlling costs. Recrulting new volunlggrs and MMUni11ng wlh all volunteers primarily through iTrper8on and vlrtual events, social media, regular updates ar*J onllne portal¥. Whal we •chl•vèd durlng the year The followlng progress was made Iow8rds achieving the obiectivey slated above.. Th18 year has Seen the continuing development of our Onli H•afing Loss Services through Hearing Link including the helpde5k vthich is 5UPPOrted by our velunt¢or hèlpdègk responders and ¢lient advisors and received 3.176 enquiries during the year. Tol81 number of dogs complellng tralning during the year was 20212021.. 1821. Each hearing dog take5 some 18-24 months lo train. The nel movement In funds for the year was a surplu5 Qf £3,091.52012021.. £4, 191, 1TO). Income exceeded expenditure by £2,508,21312021.. £2, 796, 195) and investment gains amountgd lo £583,307 (2021. £1.394,974.
HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2022 What we achlevod durlng thg year {¢ontlnu•dl Th8 performance of the charity's tradlng subsidiary was 881isf8Ctory given the disruption Caused by Covid-19. The response from customers has remained very encouraging and the profil on ordinary Artivilias for the year was £23,061 (2021.. £16,455 lossl. The past year was a cth811anging one for volunteers due to Covid-19. The numter of registered volunlaers reduced lo 2,958 which was 154 less than •1 the &nd of the previous year. Fundr•l$lng practlces and perfornianc• Al Hèaring Dog8, we kncw that ¢hoo$ing to 8UPPOrt 8 chadty Is 8 very per80nal dwsion, and we value each and every one of our 8UPPOrtgrs. Everything we do is driven by our desire to help as many deaf people as we can. Every donation, sponsorship or gift in a IMII 1$ pul lo use as effectively 8s possible lo help more deaf pgople. Hearing Dog$ for Deaf People is regb8led with the Fundraising Regulalof and we follow the Regulator's Code of Pracllce which Sets OLrt the 81andards members arg expgcted to adhere lo whan rai81ng money, taking all reasonablè Steps lo protect vulnerable pgopla from porsi$lonl approaches, unreasonable intrusion or undue pressure. In addition, the charfty has created Ils own Supporter Promise 8811ing out ihe standards that we a8 an organlsalion follow. We pride ouwlve$ on not using aggressive fundraising techniques., we never UBe professional fundraisers lo undertake street fundraising Ichu99er81 nor lo carry out dwr to door fundrai$ing. we never sell on the nam0$ of our 8upporter8 lo other org8ni8alion8 and wlll not 8nter into any cornmer¢i81 undert8king8 that would be delrimenlal to our beneficiaries or supporters. Much of our fundrain9 18 carried out by dedicated volunteers who have been through a thorough applicalian and vetting pro¢es8. They are all required to 8ign an 'agreemenl and underslandlng, with Hearing Dag8 that they wll adhefe lo the ch8rily'8 pollcl88, pfocedurgs, data protection and confid$nlialily guideline8. Each registered volunteer fundrai88r is allocated a volunteer c(rdIna10r and regional contact who is a member of Hearing Dogs staff. The volunteer co-ordinator is responsible for ensuring that their volunteers are inducted into th¢ ¢harity and carry out their actlvrtles in an approprialg manner. Furthermore, Hearing Dogs has 8 dedlcated Volunleerlng Department and Genlral FurKlr4ising Team upMld b881 practlce and offer furlh•r Support. training and guidance. We work wlh an external company to run 2 or 3 raffles a year. 88 well 88 our Weekly Lottery which18unched In the 9ummer of 2021. The company is accredlled by the Gambllng Commission, Instllute of Fundraising, the Lotter188 Counul and Re8ponsiile Gambling Trust. We make sure that all our marketing materials carry clear messaging about how our 8UPPOrter¥ can contact us lo change the way we communicate with Ihern and we make every effort lo respect our donoffs preferences We respond quickly lo resdve any comp18inl8 we receive about our fundraising. Dunng the fi'nancial year, the ¢h8rity re¢Ved no comF4ain18 requiring action by the Fundraising Regulator. Our IT team also work8 very hard to make SU th81 we understand and remain fully compliant th the GDPR requirements. Total income was £1.45 million above last year al £13.7 mllllon. Legacies incrgased by £2.3 million lo £9.1m bul donations redu¢od due lo receiving restricted grants for specific projects in previous years. Sales by the Trading Compony were £0.5m higher than last year due the re-¢Jpening of operations in line th Covid-19 restrictions Ing lifted. The inueased income resulted in 8 £23,981 profit for the year12021'. Ioss £{16,4541.
HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2022 Op•rational porfornHnco Canlne Servlces IHe•rfng Dog$ In the last financial year the operational focus was SUPFQrting thg voluntews and staff through the changes relating lo Covid guidelines and the effects they had on day lo day roulines ol their role5 We focused on flexible approaches Iow8rd8 leaching on progre$$ing our older dogs who had delays due lo lockdowns. Wè had origin81ty had the aim lo finish the training of 190 dogs for placement with deaf clients. We managed lo exceed this and Iroin 202 due lo our flexible approach bring on the older delayed dog8 whllsl Still being able to train our younger ones who had be8n less affected by the liming8 of Covld 19 restrictions. Our tralnin9 course providfjd lo our new de8f partnef8 en they receive their matched dog 8180 look a flexible appr08ch and has developed into a mlx of home visit, video calls, and on line materials. Our aim for 2022123 is lo oplimize this course package by relumlng part of this Goufse lo an onsite 8tage to help deaf partners with 8reas they still have queries on from earlier parts of the course. This on8lte section wll bg delivered from our 8rtes In Bucklnghamshlre and York$hiro. In 2022123 we 0180 alm to finish the Ir8inlng of a further 220 dog8 for pl8clng .1 ¢Y•8f cli•nl8. H•arlnB Lo•$ Sgrvlco• Objectives lor the yoar wsro,, lo reach and support more deaf POQFAO than ever beforg wlh the prov18N)n of our per80nalised services, whlch may Indude the lifetime Support of a hearing dog continue lo grow tho ¢hariii8s reputation whllst embraang the Hearing Link Services leg8cy to engage more health profesyionols and industry contacts lo Increa88 roferral8 lo our Support 8ervices lo develop and grow our digital sarVi¢ Such 88 Livochal, and acce88 lo virtual 89ryice8 8uch as Linkup onlin8 and Video. Strategies to achieve thi8 year'8 obj8ctiv88 wew.. chang88 to departmental $tru¢tur• and objectives lo create a mofe cllenl focused approach to offering service. Investment in thè central support learn lo gnsur8 staff provision lo manage growth in incoming enquiries. Growih ol the community support inilialiv¢ both for our hearing dog partners 8nd polents'al new beneficlarles through the launch of our He8ring Lo88 Information 08y8. Investment in and refreshing ol the brand lo Incorporate He8ring Link Services lo cfeate beller symblosis and cohésion, this Includes updates lo the tharity mission and airns. Hearing Link website reskinned lo reflect the developed relationship. Attendance al major indu31ry gvenl lo showcase the charities work and develop networks. This includes Audiology conferences and engagement with manufacturers acTOS5 the sector. Refresh ol the heanng link website lo belter reflect our po811ion as a charity 8UPPOrting deaf people in 2022. Thls indudes tho use of the new brand, updated information on services and improved navlgabilily. Development lo merge the charities shops onlo a single platform. Relaunch of the membership herne lo improve user experience, engage more people an provide a hearing loss speufi'c support mechanism for thos? ¢ommittgd lo supporting hearing Ios8. Growth of the Livechal feature lo expand hours and marketing Production ol m8rkeUng a1 recruitment video on Linkups to engage a wider audi8nce.
HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2022 Hearing Loss Sgpllces Icontlnu•dl What we •chi•v•d 3,178 people siipportefl11 nfio PArtnAfAhips, fj71 8iippnrtpd potential beneficlaries. 1536 1-1 support in¢. Helpdesk) HL webslle vi&lors 497,908 289 aGlive members HL news subscrlbers 9784 907 shop customers 1378 engagement 81 events Invejtmollt perfomiance Tilney have been the chanty'8 investment manag¢r$ for the last elghlèen years having b8en re.apwinled in 201 Cl after conducting o tendering process. The table below records the performance of the Incom& and GrovAh Portfolio valued at £8.1 million12021.' £7.6 mlin1, including cash awaiting Investment, agalnst lour Indlce8 for1881 year and thg la51 Bevenleen year8. Year 2021r22 olal Reluml Eighteen Year Penod (Total Return) Income and Growlh Portfolio + 7.16% MSCI WMA Private Investor Balanced + 7.80% ARC Balanced PCI + 3.48°h ARC Balanced ACI + 5.37% MSCI Unil¢d Kingdom TR +19 10% +193.35% +136.47% +142 46% +169 82% +228.48% The favoured benchmarks are ¢urrenlly the ARC 8818nced Indlces a8 these are comparable th the undedying a88el allocation of the Heanng Dogs portfolio. Perfofmance over the past $¢venleen y8ar8 haB exceeded the benchmark$ and a $8118lactory result wa8 achleved in 2021122, given the cautious gr0h investment 8lralegy which has been followed for 80me lime. Comparative figufes are al80 shown for the MSCI WMA Private Inve$lor$ Balanced and MSCI United Kingdom TR indices. The charity h88 reviewed its nveslment strategy lor the coming year and will continue lo monitor perfoman¢e again81 the agreed benchmarks. In addition, the charity has invested in more recent years in a more aggressive Growth Portfolio. The table below records the perfomance of this portfolio valued at £1.2 million12021.. £1. I million), includlng ¢a$h aw811ing investment. again81 four indica8 for la81 yea¥ and th8 six yoars &nce inception. Year 2021122 (Total Return) + 8.19% +10.49 + 4,64% + 6.29% +19.10% Seven Year Period (Total Return) +54.33% +73.31% +48.480 +51.86% +49.010 Growth Portfolio MSCI VVMA Private Investor Growth ARC Steady Growth PCI ARC Steady Growth ACI MSCI United Kingdom TR A satisfactory result was achleved in 2021122 and the charity ha¥ reviewed its investsnenl strategy for the coming year and will wnlinue to monitor perfomiance against the agreed benchmarks. 10
HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2022 Financial rnvièw, including results for the year and po•itien at the year end The charity 18 pleased lo r8POrt 8 net SLsrplu8 of £3,091.52012021.. £4. 191. 770). Income exceeded expenditure by £2.508.21312021." £2, 796, 195) and investment gains amounted to £583,30712021.' £1,394,975). Total income incre888d ty £1.4 million lo £13.7 million {2021.' £12.3 Milli(). The major movements were,. decrease in donations of £12 million relating lo the receipt of grants for speclfic projects in 2021, an increase in Iggacies of £2.3 million, a r8duclion in Coronavirus Job Retention grants of £0.4rn and an increase in trading income of £0.5m. We rémain very grgleful to 811 our supporters whe provide u8 with the finanaal resources we need lo continue lo maintain and develop our work. Thelr many contributlons are e85enllal given that there 1$ continuing demand for the ¢harity'8 hgarlng dog and hearing1088 8ervice8 for whlch it receives only a relatively sm811 amount of government lunding. Expenditure for the year increa8ed by £1.7 million to £11.2 million12021.' £9.5 millnI. Spending on staffing increased by £0.7 million and fundraing by £0.2m. Total nel assets increa88d by £3.1 million lo £25.5 million12021.' £22.4 million) al the year end. Total fixed 835915 Increased by £0.8 million to £17.0 million12021.' £1fj.2 million) principally due lo inve8lment gains and nel current asse15 Increased by £2.3 million 10 £8.5 million 12021.. £6.2 million) most notably a £2.6 million Increase In Short term depo4t8 generated by tho operalng Surplu8. Deslgnaled funds decreased by £0.5million to £15.3 mlllion (2021.. £15.8 mllllonl and the operational re88rve and re81ricted funds amountèd lo £9.3 million12021. £5.2 million) and £0.9 million12021.' £1.4 million) respective, Res•p4•8 pollcy The charrty operates lo provide Imm1818 nefit lo hearSng dog deal partn?rs followed by a lifetim• of p8rtn8ryhip 8UPPOrt for them and their familie8. With plans lo inGrea¥e the number of dogs being trained ea¢h y¢ar an¢J 97412021.. 1,012) working partnerships10¢ol&d Ihrwghoul the country Ih1818vel ol suppDrt18 expensive lo maintain and will requirg bolh pital and revenue expenditure as a continuing investment for thè future. In addition, il is depèndent on voluntary in¢omè, prin¢lpally legaeies. whlch can be 8ubcl lo eonsiderable fiuctU8tion from year lo year. The Tru8lee8 continue to monitor and ffjvlew annually the level of re8eTves in conjunctlon wlth the Settlng of annual budgets and the development of the long-lerm strategy lo meet the changing nature of demand. The charlty'8 policy ha8 been revlewed durfng the year and Is ID malntain the following unre8lricted fund8'. Doslgnated Funds lor Tanglblo Flxed Assets. This represents unrestricted reserves set asKle by the Trustees for the functional fixed assets and capital commitments of the charity required to carry out its principal activities. At 31 M8rd12022 this rèseNe stood 41 £7.7 million12021.' £7. 7 milln). Dgsign4tsd Funds lor Exlstlng P•rtnor¥hlps. These funds hove been set aside lo cover future long-lerm commitm$nls. prinripally relating to exlsting hearing dog partnerships, which al 31 March 2022 were estimated al £5.9 million12021.. £6. 1 milllonl over the next 10 years.
HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2022 Doslgnatod Fund for Rocov•ry from the Cofonavlru8 Pandemlc. Ouring 2021 the Trustees approved the cre81ion of 8 £2.0 million Coron8viru8 Recovery Fund lo provide for the consequenceg of the pandemic. some of which may not m8teri81ise for some lime, as it lakes v0 years or more lo fully train a hearing dog. The charity's labour costs will increase lo cover the cost of additional training of dogs or the scaling up ol the br8eding programme (which was forced lo hall during the crisis) in order lo meet the demand for the charity's services. The charity also sees opportunities lo accelerate ils development by investing in additional c8pI181 and revenue projects over the next 5 years in line with the charily's strategic plan, Project spgnding will be over and abov¢ amounts approved annually a8 part of the charity's budgeb'ng procedures and wll be approved in advance by thè Trustees. As at 31 March 2022 £830,000 had been approved for spend and £ 295,425 actually spent. Opfrrntlonal IFr••l RM•r¥•. The policy of the Trustees is lo hold an operationa1 reserve equivalent lo 8 months operatsng expenditure. At 31 March 2022 this reseNe stood at £9.3 million12021.' £5 2 MillnI which repr98ents 10,4 months running costs, based on the 2022123 expendrture budget. The objective is, therefore lo m8inlain thi5 reserve io ensure that sufficient funds are available al all lirnes to cover Ihg charity's operating expenditure. InvMtm•nt pollcy For the last eighteen ye8r5, the Truste88 have given their appointed inveslm6nt managers, Tllney, discretion lo manage the Income and Growth Portfolio with 8 cautiou8 groyrth risk profilè providing both income and capital growth. The Trusteès h8v8 8190 investe(5 8ddilion81 funds In a more aggre98ive Growth Porffolio which is 8180 managed on a tliscrelion8ry basi8 by Tilney. Decision8 are tsken in accordance with the ¢harily's inve81menl pollcy document which has been approved by the Board of Trusl88s. The tharity's overridin9 pellcy remains to maximi88 return8 whi181 ensuring that as far as possible the funds invested aro adequately gafegu8rded. Future plan8 Underpinning the tharity'B strategic p18ns are Its objecllves whi¢h arg 80t out on pag& 4. The charity plans lo bulld on ils 2021-28 $lral¢gy with the key as6 of the plan boing to.. increase the charity's imp8Ct in helping peopb experien¢ing mild lo mo¢J¢ral& he8rlng1088 as well 88 tho$¢ with prc*found he8ring loss. continue training some 200 dogs per annum for core deaf Support role8', maintain the charity'6 financial performance and its strong balance sheet by developing and expanding naw and existing income streams, constraining costs and ensuring all charity as8elg are fully uliliyed., irtrease public awarene8s of the charlty and maximise the resulting fundraising opportunitles,. relum the trading 8ub8idiary lo profilabilily so as lo deliver a 8uslainable income stream for the charity in the longer-lerm., 8. build on the existing volunteer network $0 88 to exp81 the breadth and depth of the charity, services. Approved by the board on 19 July 2022 and signed on their behalf by . C M P O'Donovan-Rossa Ichaimianl 12
HEARING DOGS FOR DEAF PEOPLE STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022 The Trustees (who are also Directors of Hearing Dogs for Deaf People for the purposes of Company I15(e IpOnlb1e lor prepallng the Trustees, Annual Report, the Strategie Report and the financial Statements In accord8nce with applicable 18w and United Kin9dom Generally Accepted Accounting Practice (Unrted Kingdom Accounting Standards). Company law requires the Trustee8 lo prepare financial 8tatemenl8 for each financi81 year. Under compeny law the Trustees musl not approve the fin8ncial 8tslefnenls unless they 8re satisfied th81 they give a true and fair view of the slate of affairs of the chafitable company and the group and of the ineoming resources and applicabon of resources, including the income and expenditure, of the ¢harilable group for that period. In prepOTing these financial statements, the Trustees are required lo.. $•l¢¢t suitable aountIng polio&s and then apply Ihom consi$lontly'. observe the method3 ana prinGiple$ in the Chartlie$ SORP., make judgments and esllmales that are reasonable and prudent., Stale whether appliCae UK accounng standards have been followed. Sublecl to any matari81 departures disclosed and explalned in the financial stslem8nt8', and prepare the financial slalemenls on the golng concem basis unl888 1118 inappropriate to pre8ume that Ihg ch81itable company wll continue in bu8ine88. The Trusle8s are reswnsible for keeping adequate accounting records that are sufficient lo show and oxploin the charitable company'8 transactions, disclose wlh reasonable accuracy al any lime the rinanciil poyilion of the charitable company and enable them to ensure that the financial slalemenl$ ¢omply with Ihg Cornpanies Act 20C6, the Charities and Trustee Investment (Scotlandl kt 2005, the Charilias Accounts {Scollandl Regulations 2006 188 amended) and the provisions of the charity'8 con8tilulion. They are also responsible for safeguarding the assets of the charity and the group and hen¢e for taking ro8n9b1& steps for the preventson and detection of fraud and other iffegulariti$$. 13
Crowe Cttr• UJ(. LLP MÉmbÉr ol Oowe Glo Aqu15 H¢v$e 4ty51 BWgrave Slreel riJna BBikshiTe RG1 IPL, UK Tèl •44 101118 959 7222 F•¥ +44101118 4 crowe co u Independent Auditotrs Roport to the Membern and the Trustee of HrIng Dog for Deaf People Oplnlon We have audited the financial slalements of Hearing Dogs for Deaf PeopK91'the charitable company,) and ils 8ubsidiary I'lhe group'l for the ye8r ended 31 March 2022 %thich comprise the Consolidated Slalement ol Financial ActivilE8, the Group and Charity Balance Sheets, the Group Consolidated Slalement ol Cash Flows and notes lo the financial slalgm8nls, including significant accounb'ng policies. The financial reporting framework that has been ippliad in their preparation 18 applicable law and United Kingdom Accounting Standards, induding Financial Reporting Stand8rd 102 The Financial Reporting Standard applie8bl& in the UK and Republlc of Ife18nd (United Kingdom Generally Accepted Accounting Practice). In our opinion the finan¢ial $latements'. give a true and lair view of the 81ate of the group'8 and the charitable company's off8ir$ a8 at 31 March 2022 8nd of the group'8 income and expenditure, for the ye8r then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practe,, and have been prepared in accordance with the requirgmgnls of the Companies Act 2006 and the Charities and Trustee Investment IS¢otlandl A¢1 2005 and Regulatn$ 6 and 8 of the Charitie8 Accounts IScoll8ndl Regulations 2006 lamendedl. Ba81¥ for oplnlon We ¢ondu¢t¢d our audll In accordance wlh Inlernath'onal Stsndards on Auditing IUKI IISAS {UKII and applicable law. Our responsitr)ililies under those $18ndards ore further described in the Audilof $ respon81bllilie8 lor the audit of the Ilnanaal slalemenls section of our report. We are independent of the 9roup in accordance vllh the ethical requirements that are relevant lo our 8udll of the finan¢ial 8tslemÈnls in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical respon81bililies in accordance with these requirement¥. We believe that the audil evidonce we have obtsined 18 Sufficnt and appropriate lo provide o basis for our opinion. Conclu¥lonB rglatlng to golng conc•rn In auditing the hnan¢ial slalemenls, we have concluded that the trustee's use of the going concem basis of accounting in the preparation of the fin8ncial Slalemenls 18 8ppropri818. Based on the work we have performed, we have not identified any materi81 uncertainlle8 relating lo events or conditions that, individually or collectively, may cast s1gnrfcant doubl on the charitable ompany's or Ihe group's ability lo continue a5 a going concem for a period of 81 least twelve months from when the finanei819181emenls are aulhorlsed for1s8ue. Our responsibilities and the responsibilitie8 of the Iru8tees with respect to going Concern afe dtrscribed in the relevant 8eclion8 of this report. Othor Inf0mtIon The trustees are responsible for the other infomialion contained within the annual report. The other information comprises ihe infomiatson included in the annual report. other than the hnanaal Slaternenls and our audit(K's report thereon Our opinion on the financial slalemenls does not cover the other information and. except lo the 9Xtenl otherwise explicitly slated in our report, we do not exp$$ any form of assurance conclusion Ihereon. Our re8ponsibilily is lo read the other informats'on and, in doing so, consider whether the other 14
•, Crowe Crcrtv• U.K. LLP Mernber of QoweGlr AquIS HOUS• 49-51 8grave greet ft1g 8eiKshiie RG1 IPL. UK Tel +44101118 959 7222 Fax +44 {01118958 4640 ww.crowe co uk Other Inform•Uon {contlrFuod} information is materially inconsislenl with the finanaal statements or our knowS8dge oblainod in the audit or otherwise appears lo be mater1811y misstated. If we idenllfy sueh material ineon$islencie5 or apparent material missl8temenls, we are required to detemiine wheiher this gives rise 10 8 material misstsl8menl in the financial statements themselves. 11, based on the work we have rfOrmed, wo conclude that there is a malenal misstslemenl of this other information, we are raquired lo report that fact. We have nolhlng to rerort in this rogard. Oplnlon8 on oth•r mattern prnscrll)•d by the Compan$ Act 21)Q8 In our Ovni ba8ed on Ihe work undertaken In the course of our audit Ihe infomatbon given in the Iruslees, report, vthich include8 the dir8ctor8' report and the straleglc report prepared for the purpo$e¥ of cornpany law, for the financial year for which the financi81 $lalem8n15 arè prepared is consistent with the financial stalemenls., and the slralegie report and the directors, report included within the trustees. report hav8 been prep8red In 8ceordan¢o with •ppli¢able legal requirements. Matt•rs on Ythlch w• arn r•qulr•d to rnport by •xc•ptlon In light of tho knowledge and under81anding af the group and charitablo company and Ihelr environment obtained in the cour8e of the audit, we have not id8nlth.ed malerlal mi8St418m8nl8 In th 81ralegic roport or the directors, report Induded within the Iruslees, pOrt. We have nolhlng lo report in respect of the following matter8 in relation lo which the Compani88 Act 2006 and the Charllies A¢Munts (Scollandl Regulations 2006 requires us lo report lo you if, in our opinion.. adequate and proper accounting r8cords have not been kapl lor returns adequate for Ouf audrt have not been recelved from bran¢h•8 not visited by u8,. or the financlal 81alem8nt8 8re not in agreement wllh the accounting records and retum$', or cert8ln d18closures of tru8lee8' remunerallon Specified by law are not made., or we have not receivad 811 the infomalion and explanations we require for our audit Rgspon•lbllltl•¥ of trust• As explained more lully in the Irustses, responsibilities slalemenl sel out on page 13. the trustee8 (who are a180 the directors of the charftable company for the purposes of company lawl are responsible for the preparation ol the financial slalemenl8 and for b&ng satisfied that they glve a true and lair view, arKI for such internal ctrOl as the Iru8lee8 detemiinelg necessary to enable the preparation of finanual ¥la1gments that are free from maleiial rnisstalemenl, whether due lo Imud or error. In preparlng the flnancial stslomenls. the trustees are re5pon81ble for assessing the charblable company's ats'lily lo continue as a going concern, disdosing. as applicable. matters related lo going concern and using the going concern basis of accounting unless the Irustses either intend lo liquidate the charitsble company or to cease operations, or have no realistic alternative bul to do so. 15
A Crowe Cr(w U.K. LLP erf&er of Crowe eb Aquig Hous8 49.51 Bl&grove &reet Reoding BerkShQ RG1 1PL. UK Tel +44101118 959 T222 Fax +44 101118 958 4840 ci(weco u Audlior's responslbllltle¥ for tho audlt of the flninclll statements We have bgen appointed as auditor under sectlon 44111{cl of the Ch8rities and Trustee Investment (Scollandl Act 2005 and under the Companies Act 2006 and report in accordance wlh the Acts and relevant regulations m4Je or having effect thereunder. Our oblecllves are lo obtain reasonable ossurance about ether the flnandal statements as a whole ar8 free from material misslalemenl, whether due lo frau¢J or error, and to 188ue an auditorfs report that irludeS our opinion. Reasonable assurance is a high level of a85urance, but is not a guarantee that an audit conducted in accordance wth ISA8 IUKI will always delect a malenal misstalemenl when il exists Misstslements arise from fraud or error and are considered mat8ri81 if, individualty or in the aggregate. they ¢oukl roa$on8bly be expected to influence the economic deci8ion8 of user8 taken on the basis of these financial statements. Delai18 of the extent to which the aud wa8 considered capable of del8cting irregulari1108, in¢ludlng fraud ond non-compliance wlh law8 and regulations are set out below. A further description ol our responsibilitie8 for the audit of the finan¢ial Slalements 18 Ioc8ted on the Flnancial Reportin9 Councll's website at.. .Irc.or uklaudilorsresL_.----.J. Thls description fomi8 part of our auditor'8 report. Extent to whlch tho •udlt wa8 con8ldered capable ol det•ctlng Irregularltles, Sncludlng fraud Irregulantiès. including fraud, are insiances of non-compliance with law5 and regulation8. We identified as8e58ed the risks of material misslalemenl of th8 financial slalemenls from irregularities, whether due to fraud or error, and discussed these betsveen our audit team members. We then designed and performed oudil procedure3 responBlve lo those risks, includlng obtaining audit evidence 8ufficienl and appropriate lo provide 8 basis for our opinion. We obtained an understanding ol the legal and regulatory frameworks withln which the charilab company and group operates. focuslng on those18ws and gUlationS that have a dire¢l ¢ff&¢l on the delerminalion of malefial amounts and dlsc408ure8 in the financial slalemen18. The18wB and regulation8 we considarad in Ihls conl8xt were the Companies Acl 2008, the Charities A¢1 2011 and The Charrties and Trustee Inv881menl (Scollandl Act 2005. together with the Charities SORP IFRS 1021. We assesyed th8 requirad compliance with the89 law8 and regulations as part of our audit procedure$ on the related linanci818lalemenl Ilem5. In addlllon, we ts)n8idered provl8lon8 of other law8 and regulatbons that do not hava a dlrecl effeci on the financial 8lalemen18 bul compliance with which might be fundamgntal to the charitable company's and the group's ability lo operate or lo avoid a material penalty. We also ¢on8idered the opportunities and inntiVeS that m8y exi9t within the charitable company and the group for fraud. The laws and regulaliens we particularly considered in this context for the charitable company were Charity Comm188ion regulats'ons, General Data Protection Regulation IGDPRI. cyber securily, Equallly Act and Animal Welfare Act, whi181 also acknowledging that the charitable wmpany works lo comply with all othèr relevant legislation such as Employment law. Audib'ng standard5 limit the required audit procedures lo identify r)n.CoMplIance wlh th880 law8 and r8gul8tions lo enquiry of the Trustees and other management and insw¢tion of regulatory and legal correspondence, rf any. We identified the greatest risk of material ivnpacl on the financial stslements from irregularities, including fr8ucI, lo be within cornpleleness and ts'ming of recognilitin of income from certain income stream8 and the override of controls by management. Our audit procedures lo respond lo these risks included enquiries ol management about their own idenlificalion and assessment of Ihe risks of iffegularilies, sample testing on the p051ing of journa15, sample le51ing related income streams, reviewing accounting eslimales for biases and reading minutes ol meetin9s of those charged wrth govemance. 16
Crowe U.K. LLP Chartered Accountants Member of Crowe Global Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL, UK Tel +44 (0)118 959 7222 Fax +44 (0)118 958 4640 WWW .Crowe. CO.LI k
Crowe
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations[(] irregularities[) ] is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts[(] Scotland[) ] Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Janette Joyce Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor, Reading
Date: 5 August 2022
17
HEARING DOGS FOR DEAF PEOPLE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022 Totsl 2022 Tol•l 2021 kncomw froTr tbnatKra ar%J bgxwJ$ Grants reeevabk• Ch•rit•bb 8CtMIi•• Tr8dirg afKI fundram Inveslrr•rts Oth8r 10,252.757 38,477 69,581 t,119,346 70,479 49,bN)4 2.136.071 12.368.12B 38.477 ,561 1.119.345 70.479 11.021,9 473.834 51.801 83,758 105.474 Tol•l In¢orn• 11,800,523 2,136.071 13 736 594 12,282,378 rrtUr• o R¥oir¥J Ctsritpbla actimt 2,887,e86 5.977,829 2.487,JO6 340,51S 2,153,453 7,332.728 2,362.686 Totsl •xp•ndltur• 6.e65,895 2 362,686 11 228381 .486.181 $83,307 1,394.976 3.318.135 1226.615 3.1,$20 4.191.170 17 289,877 289.8 3.007,812 1516.2921 3.1.010 4.191.170 bro& lorw¥rd 21,034,842 1,389.881 22.424 7 18,233.553 Tetsi urrnd Ic11d 17 24.642.654 873.589 2&SI6.243 22,424.723 The ryjtes on pages 21 to 37 form part of finarKial statement8 18
| The | Group | The | Charity | ||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | ||
| Note | £ | £ | £ | £ | |
| Fixed assets: | |||||
| Tangible assets | 9 | 7,731,285 | 7502,323 | 7,731,285 | 7,502323 |
| Investments | 10 | 9,295,040 | 8,706,292 | 9,295,040 | 8,706,294 |
| Total fixed assets | 17026,325 | 16,208,615 | 17,026,325 | 16,208,617 | |
| Currentassets: | |||||
| Stocks | 11 | 38,155 | 35,564 | ||
| Debtors | 12 | 1,520,176 | 1,348,613 | 1,646,356 | 1,470,120 |
| Short term deposits | 8,298,852 | 5,690,195 | 8,298,852 | 5,688,077 | |
| Cash at bank and in hand | (83,799) | 16,679 | (90,783) | 16,677 | |
| Total current assets | 9,773,384 | 7,091,051 | 9,854,425 | 7,174,874 | |
| Liabilities: | |||||
| Creditors: Amounts falling due | |||||
| within one year | 13 | (1.283,466) | (874,943) | (1,287,928) | (858,228) |
| Netcurrentassets | 8,489,918 | 6,216,108 | 8,566,497 | 6,316,646 | |
| Total net assets | 14 | 25,516,243 | 22424,723 | 25,592,822 | 22,525,263 |
| Funds: | |||||
| Restricted funds | 17 | 873,589 | 1,389,881 | 873,589 | 1,389881 |
| Unrestricted funds | |||||
| Designated funds | 17 | 15,304,842 | 15,803,329 | 15,304,842 | 15,803,329 |
| Operational reserve | 17 | 9,337,812 | 5,231,513 | 9,414,391 | ,2,O53 |
| Totalfunds | 17 | 25516J243 | 22,424,723 | 25,592,822 | 22,525,263 |
HEARING DOGS FOR DEAF PEOPLE CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2022 )tes 2022 2022 2021 C••h Ilow• fr(n oporatlng aGtlvltlBB: Not ca•h provlded byl{w•d In) oporathg act111 18 3.030,Q65 2.742,640 C•8h Ill> from InTmtlng •¢tfvltlu'. ond irtereBt from weBlment8 Prcceed3 from sa of langible a88et8 Proceeds from the of tar¥J[b a88818 for resg Pur¢f&98e ol tangib 8S6et6 Pro¢t8ds from sale ol Thestmerts Pwchasa ol irNestmerrts 70.479 1.156 83,758 14,859 959.852 1243.4951 2,558,9J3 12.535,1251 1594,0791 1,462,468 11,355,197) eaih lu•gd Inllprovldod by Inve•tlng oct1vO 415 174 838.750 Ch•ng• In ca•h and cA•h •qulval8nt• In th• r•portlng p•rbod 18c 2.620,891 3,579.390 Ch•ngfr In u•h •nd ¢a•h •quiv*l•nt• at beglnnlng Of th reportlng p•rlod 18b 8,781,724 2.202,334 Cash and ca•h •quival•nt• It th• •nd ol th• r•porting porlod 18b 8.402.615 5,781,724 The note5 on pages 21 to 37 forni part of these financial statements 20
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 AGcountlng pollclgs Bas1$ ol pr•p•rJtlon Hearing Dogs for Dèaf Peoplè is a charity registered in the UK leharily number 293358 (England) and SC040486 IScoll8ndll with ils registered office al The Grange, VCoMba Roa¢J, Saunderton. Prfnces Risboroygh. 8uckinghamshlre. HP27 9NS. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Slalemenl ol Recommended Practice 8pplicablo lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ire18nd IFRS 1021 (effective January 20151- (Charilies SORP {FRS 1021}, Ihe Financial Reportlng Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Consolidated financial statements I'group accounls"I have been prepared in respect of the charity and its wholly owned Subsidiary. Hearing Dogs for Deaf People (Trading) Limited. The parent has taken exemption Irom presentsng 118 uncon801idaled profit and 1088 account under Section 408 of the Companies Act 2006 and as pemiitled by FRS 102. Assets and liabilrties are initially recognised al hi$lori¢81 cost or tran$a¢lion value unlo$s olherwi$o stslod in tho relevant 8tt0unng policy note. The Trustees have condered h¢)w COVID-19 could affect the accountlng pdiaes that underlle these rinano'al stslamenl$, and have reviw¢d inrxm¢ budgets. 888et valuations and made a8ses8menls regarding possible material uncertainlles and the adequacy of disclosures. Following this review the Trustees con$idor that there are suffioenl reserves al 31 March 2022 to manage any foreseeable downlum in the UK and global economy and that there Is a reasonable expectation that He8ring Dfras for Deaf People has adequate resoLtrces lo conllnue In operational existence forthe foreseeable future and for this reason, the Tfuslees conlinue lo adopt Ihe'golng concern, ba818 in preparsng the accounts. Hearing Dogs for Deaf PeoFle meets the deflnltk)n ol a publlc benefit entity under FRS 102. Income Voluntary income received ty way of donations and gifts lo the charfly 18 included In full In the 8lalemenl of financial 8clivilies when received. b) Legacy income 1$ included in the finanual 8lalèments when the eharily Is 8a116fied that the conditions of enlillement, probability and measurement have been met. Pecuniary legacies are accounteil for when notified. Residuary legacies are accounted for when notification of Impending distribution 18 received andlor receipt ¢)ccurs within one month ol Ihe year end. Residuary legacies subject lo a life nleresl held by another party are not included in income until the conditions associated with payment have been fulfilled. Income generated from the supply of goods or 8ervice8 18 induded in the statement of financial acUvllle8 In the period in whlch Ihe Supply Is made. Grants recelvable are a¢¢ounled for under the perfomance model 88 permltted by the charity SORP. Coronavirus Job Retention Schem8 grant income is therefore recognised so as lo match the furlough eriod of each relevant employee. The gran15 frDm the local council were due lo the busine89 needing lo be dosed or restricted as a osult of government guidance during the Covid-19 pandemlc and have bèen reeognised on a receivable ba*s in Ihls accounting pericd. Voluntèèrs In accordan¢e with the Charities SORP IFRS 1021, Ihe lime glven by volunteers is not recognised in the accounts. Information about the contribution of volunteers Is contained in the trustees, annual port. dl Unre5trlcted fundi Unrestricted funds are donations and other incoming resour¢e$ lo th& charity, received or generated for ils charitable purposes. 21
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accountlng pollclgs {conllnuod) Deslgnat•d lundty Designated fund8 are ftjnds sel oside out ol unrestricted fvnds by the Board of Tru8tee8 and applied towards 5pecifi¢ purposes a$ identified by the Board of Tru$t¢e$. R•8trict•d funds Restrted funds are to be used for 8p8cified purposes 8$ laid down by the donor. Expenditure which meets the8e crileri8 is charged against the fund. together wth a fail all¢xatson of ¢)vèrheads and support costs. gl Expendlture and Irrecoverable VAT Expenditure 18 recognised once there is a legal or constructive obligation lo make o payment to a third paty, il is probable that settlement wll be rgquired and the amount of the obligali¢x can b8 measured reliably. Expenditure is dassified under the lollowng activity he8ding8'. Expendlture on ralsing fvnd8 0)mprise$ the ¢t8 of the ¢entro1 and ¢ommunlly fundrai8in9 t•am8 and the Iradlng 8ub81di8ry and their 88sttlat8d support costs. Expenditure on charitable activities comprises all eosts relating to the provisien of hearing dogs for dgaf people induding the cost8 of the supply and training. partnership seNice8 and quality a$$urance teams and Ihelr 88soclated 8UPPOrt costs. Irrecoverable VAT 18 charged a8 8 c081 again81 the ath'vity for which the expendilurg w•8 incjjrred. h) Alltxatlon of Support Costs Support costs afe those functions that assist the work of the charity bul do not dirèctly undertake charitsble acts'vth'es Support costs includo back office costs comprising facilitie5, general management, legal and profe$$iono1, IT and g¢veman¢e ¢o$ls which support the charity, aclivilies. These c0818 have been allocated btheen expenditure on rai8ing fund8 and expenditure on charilablo 8c¢iviti¢s on the basig 861 out in nol& 5a. Op•r•tlng1•18•8 All leased property and equipment are considered lo be oper81ing lea8es, and renta18 are th8rg¢d againgl revenue on a straight1Sne basis over the life of the lease. No a88els are held under hire purchase agreement8. Flxèd a8#•ts Ind d8pr•cl*tlon Depreciation is provided on tangible fixed assets al r8le8 Calculated to write off the cost of each a¥8et over ils estimated useful life, 88 lollows'.- Motor vehicles Fumilure and equipment Freehold property 25OA per annum on a Stralghl line basis 20% per annum on a straight line b8918 2% per annum on a 8lraight line b8SI8 Fixed assèts costing under £SOO are not capllali8ed and treated as revenue expenditure. kl Investm•nts Llsted investrnents are slated 81 market valuè. Investmen18 In subsldlarles are Included in the charlty accounts at cost. Str>cks Stocks of goods held for resale are slated al the Iwer of co¥1 and nel reali$able value, after making ue allowance for obsolete or damaged goods. 22
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accountlng pollcles (Gontlnuedl m) Dèbtofs Trade 8nd other debtors are recognised at the 8ettlemenl amount due after any trade discount offered. Prepayments are Valued al the amount prepaid nel of any trade discounts due. Short temi deposlts and cash at bank and In hand Short term deposits aTrJ Cash al bank and in hand Indude8 cash and short tgrm hlghly liquld investments wth a short maturity of three rnonlhs or less from the date of acquisits'on or opening of the deposit or Similar account. Crodltor5 Creditors are recognlsed where the charlty has a present obligatlon re8ullng from 8 Past event that VMII probably rèsult in the transfer ol funds to a third party and the amount due to settle the obligation can be measured or estimated rellably. Creditors are normally recognised at their 8ettlemenl amount after allowing for any trade dlgcount8 due. pl Br•nche• The branches of Hearing Dogs for Deaf People are run independently under their own con8tilub'on5, Nel income from branche8 is included in the SOFA on an accruals ba815. ql Ponslons The charity oper8leB a defined contrlbulion penBion Bcheme. The charge the Statement of FlnancAal A¢tivilie$ 18 tho amount of conlrlbulionB payable lo tho n910n 8¢heme in reepe¢t of the atxounling year. Flnanclll Instruments The thanly only ha8 financlal assets and fin8nclal liabillties of a kind that qualify as basic finanaal In8lrument8. Baslc flnancial In8lwmenls are Inltlally recognl8ed al tran88clion value and 8ub8equenlly measured al their settlement value. Crltlcal accountlng Judgements and koy •ourcH of estlmatlon uncertalnty Tru51ees are rgquired to makg judgements. 981imales and assumpti15 about the carrying value of 88sels and liabilities that are not readily apparenl from other urCes, Th? e$limales and underlyin9 assumptions are based on h181orical experience and other factors that are Gonsidered lo be relevant. A¢lual results may diffor from theso eslimales. Tho koy S¢)Ur¢ ol e$limalion uncertainty that h8v• • 8ignifi¢anl effo¢1 on tho 8mounls recogni$¢d in the finandal slalemenls are 88 follows.. Residuary legacies are recognised on notification which therefore requires an 881imalion of tha 8mounl reeeivable as des¢ribtd in nol¢ 1 b.above. The eslimales and underlying assumptKJns are reviewed on an ongoing basls. In the view of the Tru51ees, no assumptions concerning the e51imalion uncertainty affecting assets and liabilities 8t the balance sheet dale are likdy lo 11 In a m8leri81 adlustmenl lo their carrying amtyjnls. 23
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Comparatlve Btat•rnont of financial activitie¥ Lknroslriclod FuThJs R8slrict•d FLnds Total 2021 Incomè from.. Donalons aTr3 legacies Grants receivable Charitable AGliwties Trading aThJ futMlrai8llVJ IrNeslmentS OtPtr Total Income 7.407,237 473,634 51,601 546,005 83,756 105,474 8,867.707 3,614,669 11,021,906 473,634 51,601 546,005 83,756 103,474 12,282,376 3,614,669 EeThjiture on.. Raisiryj fLmds Ch8rbtable acttIeS Total expendlturo 2,153,453 4,594,971 6,748,424 2,153,453 7,332,728 9,460,181 2,737,757 2,737,757 Nel gain51llosse51 on imslmerts 1,394,975 1394,975 Net income 3,314,258 876,912 4,191,170 Transfers between fuThY8 25.117 125.1171 Net movement In fund• 3,339.375 851,795 4,191,170 RecorKiliation of f$.. Total funds bfought forward Total funds carr*d forward 17,695,467 21,034,842 538,086 1,389,881 18,233.553 22,424,723 24
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Income UNestriLXed FLmd$ Raslrictad FLnl8 Tot•1 2022 Total 2021 Oontlons and legacleg DoTWtio Incorne Irorn broncts8 SporBorsh'p Legacies 823,(Q1 59,966 761,974 1.504.975 59,966 1,374.097 9,130.692 239.098 2,747,461 38,131 1.189.636 6,844.345 202.333 1,374,097 9,130,692 239,098 10,252,757 2,136,071 12,388,828 11,021,gC6 Grants roc•lvab CorongMru8 Job Relertk)n Sclme Local Auth)rty Grants 14,477 24,C#XJ 14.477 24.000 450,599 23.035 38,477 38,477 473,634 Charltabl• •ctlvlUa• Salo of hearirg equipmert SeNc•8 lo otr charbtieB 19,857 49,704 19.867 49.704 26,e01 25.L 69,561 69.S61 51.801 TrIng and fundrnl•kng FuTrJr8181ro 8wnt8 Tradirrfj sUbdIary irNxJmv 365,599 753,746 365.599 753,746 289.498 256.507 1,119,345 S46,¢5 In¥••tm•nt In¢om• VK listed Securities U< barl( interè81 80,784 9,715 80,764 9,715 82.477 1.279 70.479 70,479 83.756 Oth•r Incom• Rerrt reCead Profil on sale of tarrtJit4e asset8 01rr incJ)me 48,874 1,155 2,075 48,674 1,155 2.075 36,324 83,235 5.915 49,9)4 105,474 Total In¢om• 11,600,523 2.136.071 13,736,594 12,282,376 25
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Expondltur• ortt C(1$ SwNcosl¥ OEprqLlalKJn SLWOrt CoJi8 Totsl 2022 Tolal 2021 Expwdttur• on.. 1.116,4 e93.78S 55.299 n9.505 71,516 39.e07 79,426 25,222 2.Q42.04Z 790,525 1,750,170 7.087 48.198 FIraIlw iiading In4eBtmrt riHna9Bmert 1,935.6QO 811.023 39,667 101 648 2.IS3.453 Ch•ritBL4v •¢t•.. Pr¢W9n of t4rry doll8 pmno all•cl•J ty 994.746 5.277,B79 320,430 1.426.200 8.024,316 7,QEO.472 259 489 316.20D 282.256 5 537 34B 1 4e4 471 ,340,516 7 332 728 T•l•l •¥p•ndlur• 2D22 11 228 381 9.488 181 Tothl •¥•rdture 2021 ee7.422 370 677 1,184.140 9 486 181 Support ¢o•t• ir¢ll¥J v• ai fthlLVI#.' L•J•l & PlotsOr•I Faclllk Total X122 2021 R•lTlng lundi.. 49,796 20,222 13 10$ 70,428 20,222 102,089 24,738 20,8 139 2,005 Chartt•bNI •ctl¥ttb••'. Pro801 h8irlry riooa Swportn? gfleci•d ty roj 400.897 359.12e 285.250 J26.987 1,428, 1,032,902 11,021 12,3DB 14,ZJQ 23.831 4t4 018 371 522 J2e 531 14e4 471 Tcl41 w•ndlturn 2022 IM111• 1.184.140 T11 èNsdtuio 2021 5$1400 253 4CIS 175 712 1DP622 1184,140 Total g0Veman cost$ in¢ludod above are £77,17412021.' £73,8321, C0818 have been allc¢8ted a¢ro8s a¢livttle8 baged on a combinab'on of direct allocation and where appropriate apportionment based mainly on the average number of employees. The cost p¢r¢onlage allocated lo each cost heading is as follows.. 2022 2021 RAiilng fund•: Dorygtions aThY legxE8 Fundra$8iry tradi lThstrrtnt m8nagerrort 182 18.5 Charitable activitv¥¥'. Provoion of tsarirg dogs Swporting peoplg affected by ariThJ Ic65 71.5 74.3 26
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Net Income Thi$ is stated after Ichargi@{crediling)'. 2022 2021 IProfit)ILoss on salo of fad assets Depreciation ArtorS, remuneration (3,3831 370.577 19,345 7,583 37,527 3,072 365,117 20,320 3,430 12,182 2,832 - aLhYit -other sen*ic88 - equipment -property OperatirvJ lease rentals Staff coots and number8 Staff c08t8 were a¥ follow8.. 2022 2021 Salar8 wage8 Social securlty c08l8 Pen8ion contrfbution 8,1578.849 1549.280 220.242 5,CQ2,352 471.837 193,433 6.348.371 s.e67,422 There wer8 no lemiinalion costs in the y8gr12021.' £9,CQO). nLThber of empk)ye98 wh08e emolLment exeeded £80.000 fdl witlln the followry rarvJei 2022 Number 2021 Number £60,001 £70.000 £70.001- £80.000 £80,001- £90,000 £90.001- £100,000 £140,001 - £150,000 Conlribtrti$ lo tho ¢hanly'8 defined contribution pension scheme for th• huhe81 paid omployo0 amunted lo £11,08412021. £10,874. The key management personngl of the charity are the Iruslees and the executive team led by the Ch Executive. Ong12021.' two) memberlsl of the 8xe¢ubve team eamed salaries of less than £60,000 and are not included in the table al)ove. Total employee bgnefils Igro¥s salarie5. employers Nl and employers penS)n ¢onlribution51 of 011 the key management personnel of the ¢harily and the group Were £578.70812021.. £521,304). The Trustees did not receive any remuneration during the year 10 31 March 202212021.. £NiQ. No Trustees received 1MbUr8ed travel and subsistence expenses in 202212021.. £Ni4. 27
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 staff costs and numbers Icontinuedl 2022 Nnber ftkner Ar090 A¥¢rag¢ ar Cbjgs.. sPIy, trasry, w•lfar8 and altercare ariro LlThl' supportirq peop 8118Cted by tr*8rirq k7SO Fr8+S111j cornMat1Qffj arf m8rk8tirg M8MgenKgnl aTrJ adm1¥¢ration Tothl 151 139 147 131 21 20 19 14 200 14 184 13 196 13 171 The tharily operates a defined contribution pension scheme for all eligible employees which was Sel up in April 2014 in order to comply with auto-enrolmenl regulation$. Thè a88e13 of the scheme are held separately from those of the charfly in an indepgnd8nlly administered lund. The pèn8ion charge represents ccfjlribulions Payable by the charity lo the fvnd. Pan$ion contribution8 oul8landlng at 31 March 2022 amounted lo £NIl 12021,. £NiQ T8xatlon The ¢haritable company18 not in receipt of any Income thal18 6ublecl lo corpofalion tax. T•nglble a••et•- Ch•rlty and Group Freehold property Motor vehlcles Furniture and equipment Total Cost At l Aprll 2021 Additions Disposals At 31 Marth 2022 9,337,215 326,5tJ) 307,823 1,618,449 267,579 11,263.487 594,079 18.41KJI 11,849.166 18,40Ct 299,423 9.663,715 1,886,028 Depreclatlon At l April 2021 Charge for the year Disposals At 31 March 2022 2,259,493 190.147 284,337 8.168 18,4001 284.105 1,217,334 166,802 3,761,164 365,117 8,41 4.117,881 2.449.640 1.384.136 Net book value At 31 Marth 2022 7.214.075 15.318 501,892 7,731,285 At 31 March 2021 7,077,712 23,486 401,115 7,502,323 28
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Tanglblg assots Icontlnued) Freehold prOpertymprISeS. Beatrice Wri8ht Centre The Grange Total Net book value At l Aprll 2021 Addltions at cost Dlsposals at net book value Depreciation charge Net book value at 31 M•r¢h 2022 2,107,093 4,970,629 326,5 7,077,722 326,50) 156,5781 2,050,515 133,569 5,163,560 190,1471 7,214,075 All of the tanglble flxed a88ets of the charity are ua8d for direct charhable PUfPO888. 10. Flx•d InYg•tm•nts Group 2022 2021 Quoted Investments Markei value at l Aprll 2021 Purchases Sales Net investment Ilossesl/8alns Market value at 31 March 2022 Cash awaltlng investrnent Total at 31 March 2022 ,631,442 1,355,197 11,462,468) 583,307 9,107,478 187.562 9,295,040 7,258,245 2,535,125 12,556,903) 1,394,975 8,631,442 74,850 8,706,292 In addition lo the above, the Chadty accounlB Included an Investment of £2 In 118 wholly owned trading 8ub$idiary {s8e nolg 16}. The hi8tori¢ cost of qLted Inve81ment8 at 31 March 2022 w88 £7,450,981 12021.. £7,325,362>. Induded in the operational res¢rve shown in the balance sheel158e p8ge 191 is a r8v8luolion reserve 01 £1.856,497 {2021.' £1,306,080) lch is calculated by comparing the historical cost of quoted investments with their rnarkel value 85 Bhown abov&. These inve8iment8 are basic financial instruments whi¢h are held for investment relum an¢J mea8ur¢d at fairlmarkel values. The consolidated entity's income, expanse. gains and 108ses in respect of financlal instruments are as follows". 2022 2021 Totsl dividend and interest income for baslc financial assets 70,479 83,756 Total gains in respect of basic financial assets 583.307 1,394,975 29
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 11. Stocks Group Charfty 2022 2021 2022 2021 Goods for resale 38.155 35,564 12. Dobtor• Group Charltv 2022 2021 2022 2021 Trade debtors Loan to subsidiary Other amounts due from 5ubsldlary Prepayments Other debtors and accrued Income 1,511,675 8,001 135.010 135,010 13,949 50,261 1,270,9C 50,761 1,297,852 1,511.346 1,520,176 1,348.613 1,646.356 1,470,120 Total debtor8 Includes £135,01012021.. £135,010) receivable after more than one year. Thi8 rePrentS the loan lo the 8ub$idiory trading ¢ompany thal18 8ecured by 8 fixed and Iloaling charge over the 888els of that
ubJldiary, with InlereBt charged al 2% over 8arday8 Bank ba8e rate.
JI debtors are baslc finarrial instruments mea8ured al amorti8ed cost, wlh the exception of prepayment8. 13. Crodltors: Amounts falllng duo wlthln one year Group Charltv 2022 2021 20ZZ 2021 Trade creditors Taxation and 5Dclal security Other credltors and accruals 281.723 267,926 733,817 321,763 130,410 422,770 279,439 267,926 740,563 312,196 130,410 415,622 1,283,466 874,943 1.287.928 858,228 All ¢redilors are basic financial inslrumgnls measure(l at amortised cost, with the exception of laxats'on and social securlty.
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 14. Analysis of group not as8•ts b•tw••n lund• R8slrict8d I1$ Lhr8slricted desi9nat8d Iwd8 Unraslrlci¢LI op8rational reserve Total fuN15 2022 TarvJib18 fixod ass9ts Imstments Cwrent asBe18 Crart Iiabililies Group fuNl• at 31 M¥rch 2022 Add.. Subsi(Jiary liabilrtbs Charlty fund• at 31 M•rch 2022 7,731,285 7.573.557 7,731.280 9,29&040 9,771384 11,283,486 25.616.243 1,721,483 8.899.795 1,283,468) 9,337,612 78,579 873,S89 873,589 15,304,842 873,589 15.304.842 9,414,391 26,592,822 Resiricted ithrestricted designated Iwds Lhestrkted operatio1 reserve Total fuTrJ8 2021 TaTrJible IIx8d 988818 Inveslrnerts Current 858ets Currerrt Iiabilille8 Group fund• at 31 M•rch 2021 Add. Subsidiary t liabi1it18S crItY fund• at 31 March 2021 7.502.323 8.057. 243.941 7.601323 8,706,292 7,091,051 874.943 22,424,723 100 540 22.526,263 849,227 5,457,229 1874,943 5.231,513 100 540 6.332,053 1.389,881 1.389,881 15.803,329 1.389,881 16.803.329 Oth•r flnanclal ¢ommltm•nt• Al 31 March 2022 the of total minimum lease paymgnt8 wa8 a8 foll)w8'. 1022 1021 Property Laa5•S Property Lea5e5 Othqr Tot•1 Other Total Oper•tin8 leases dup.. Wfthln one yeor Between 2-5 years 2,831 8,116 2.772 10,948 2,772 2.832 Z4,202 3,748 27,034 3,748 10,888 13,720 1832 27,950 30,782 31
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 subsldlary und•rtaking The charty h88 a wholly owned subsidiary whlch 18 InCOryrated in the UK, Hearing Dogs f¢y Deaf People ffradingl Limil•d Icgmpany number 027862521. The subsidiary operates from premises owned by the charity, 118 principal address being The Grange. Wcombe Road. Saunderton. Princes Risborough, Buckinghamshire. HP27 9NS, from whh il operates a re81auTant and café ar 8e115 promouonal Ilerns. 11 donate8 118 taxablg profil8 lo the charity. 2022 2021 Tr•dlng •nd profft Ind lo•• account Turmver Cost of 881•8 763,746 {542.906 256,507 1191,470) Gro88 profil 210.841 65,037 Grart8 rac*N•blè 24,000 23.035 AdmIni81rati expenwB 207,027 101,809 Operating Interest payabl• 27.014 3,053 {13,5371 12,918) Profll I IL0881 on ordlrrdry acti%Atiei 23,961 {16,455) Retsirnd108888 br¢xoM fOArd 100.1542 184,0871 R•tglrnd1088 TrIed fomard 176,6811 1100,5421 BAlanc• •h••t Total assets Total liabilitiè8 72.128 148,707 85,134 1165,674 Net 111 100,5401 Slwre capitsl Retalred loJ¥e$ 78.581 1100.5421 capita18r reierv {76.579 {100.5401 32
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 17. Movement In fund• I¥1M8 Gairn I Tr8nBfei• 2021 Totsl IrrANne eThJito 2022 Rg•trlEt•d funds: PtrtysKal Facilrty 8rlry Dogs for Daaf CfJran Breeoiffj Ger*11 Cethre er1 Dcgs TraIry y SorJali3itw Ar8&$ 290.(#)J 290,000 40,8B8 92,834 1,3B7,097 50,0 140.88bl 19.983 11.387.097) 1237.ryxii 146,(KlQl 120.3551 212.(O) 45,OiXI 11.934 2J,OLVJ COrrfflIy FraIry oifKer Dth3 W8Nar8 ur8do Trulri FK41i Ferd gradv. Grwqe FaryrhM• LWgr8d8'. &8blÈ8 r•dè Kenr• Llf8llm8 P4rtml8fip Swp Tr%1Vj aThl l or K? 8 d09 8,421 176.280 1175.2801 101,897 10,0 1101,8971 10.0 1so.ooo 275,L 1125,CVDI 125,CbJOI e5,0 12,S 18.631 112.8CIJI Otfw prol8cI8 Iton £10.CbJ 4.793 113,C#)01 0,424 PKlr0haff1rO t)Èwn & Corrw81 tMnYee Greater MaThthiitar H•mp•Nr& Jersey Lelc8slw8Nre Mer8ey•ide Jllirgh8ffNhk• Oxfo$ K4r SoLlh Ea81 12.700 28.500 4.ory) 22,6 3.7SO 112,700) 128.5001 16,6811 122,5Tr)1 13,750) 11,5Lh)I 16,250) 117,88n 8,5tsJl 16,OWI 19,1501 115.QtK)I 112.2481 127,2881 52.827 2,6B1 10,918 1.411 6,250 17.887 9.180 15,1) 12.248 33,941 YorkBh"re $ E5.000 or 6,6n Hwrlnu lJo9• Tot•1 1.349,718 2,018.194 2.238.718 289.e7 139,S15 H•arlnq Llnk.. Far1 Ad LIaon Oulrea ariry Link Websrte 8,498 8,498 89,274 189.2741 25,576 2fj,676 Jrtf¢Tn IIBkgTr1 Sclllard 4,950 9,413 19,1 114,3631 20.391 Hearkng Llnk Tot•1 40,165 117,877 1123.9681 34,074 Total rnAirkt•d 1.389,B81 2,136,071 2.362,6B8 1289,67n 873.589 33
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 2022 Total Total ¥?Nlrturo Gairo I Tror6ler8 2022 Unrestrkt•d fundl.. OMlgn4t•d lund&: Fre8rtskJ . BWC Free . Tl Graroe olr f1)nal I0 0$8818 Su&loial fwd 86s•t8 Caprtal commitm8nt8 Total frd As881s PBrtn8rship commrtrnerrti Coronawrus Recmry FurKJ Totwl do59ned 2,1Q7,093 4,970.629 424,601 7.502.323 243.941 7.746,264 6.057.Q65 3.OW.L 15,803,329 I.578) 1133,5691 1174,9701 1365, 1171 1243.9411 1609.0581 1677.1891 1295,4251 11,581,672) 2.010,S15 S,18J.680 617,210 7,731,286 326,500 287,579 594.079 594,079 489,1C6 7,731,285 5.e6e.982 1.704.676 15.304,842 1.083,185 Operolr)n81 feser Tolal unr81lred 5,231,513 21,034,842 11,600.523 11.600,523 7.284,0231 8.665,6951 1210,2011 872.984 9.337 812 24,642,8S4 Total fLrtI 22,424,723 13.730,594 11,228,381 583.307 25 510,243 Resldcted fund8 are those where the donor has Imposed resldth'ons on the u$¢ ofthe fund8. The charity operates dog and puppy 8pon80r8hip8 schemes to swnsor the costs of partnor$hip$ between deaf people and hearlng dogs. Typically amounts between £5.000 and £10,000 Bre received as gpon80r6hlp donations, Puppy sponsorship donations are mostly given on a regular monthly basis. Co8ls associated with the 8election, sociali8ing, training, welfare, placemgnl and aftercare of dog$ are charged lo these 8pon8or8hip funds a¥ appropriate. The Chorily al$0 has a number of restricted fund8 where donors have 8pecified the spo¢ifi¢ prolecvaetlvity or geographical aT8a for the funds are to be used. R8slricted funds afe Shown in two parts." Ih08e relallng lo Hearlng Dogs and those relating lo Hearlnq Llnk. De8lgnated fund8 of£7,731,285 (2021.. £7.502,323J h8ve be&n set asida from the group's unrestrted funds by the Directors for the functional fixed a88els required lo carry out the principal acllvllle8 of the charity. No conlraclual ¢ommilmenl$ existed al 31 March 2022 (2021.. £243,9411. An amount of £594,079 (2021.. £409, 975J was Iran¥ferred from general fund8 lo deslgnaled funds in respect offlxed 8ssets during the year. The Dlreclars have 8180 de8ignaled the following funds for specific use. An amount lo cover the Charty's future long-tem commllmenls relating lo It8 existing hearing dog partner5hip$. Al 31 Mareh 2022 this 8mounl was calculated al £5.868,982 12021.. £6,057,065) representing the projected costs OV8f 8 10 year perlod. An amount of £489,106 (2021." £1. 121,601) was transferred from general funds to design8led lunds in respect of future partnership li8bili11o8 during the year. A Coronavirus Recovery Fund of £2,000,DOO was created in 202012110 provide for the eonsequences of the pandemic, 80me of which may not be seen for $ome time. Expenditure wll be over and above amounts approved annually as part of the charity's budgeting procedures and will be approved in advance by the Trustees to enable the charity lo plan lo meet the increased dgmand for its services in the coming years. To 31 March 2022 spend of £83Q,000 had been approved and £295,425 actually spent. 34
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 X+21 IrhTstm•rl Gairts I Tran$f8r8 Tolal Ey8ndilurg 2020 Total Irthma 2021 R••trfct•d fund•'. ro ctla 275.QryJ 15.QOD 101.118 290.000 Fknrir¥ Oog5 for Df Children Br¢edir• 8nd GerwlKB Cartro Fknarirg 0005 TrOry PLVPY SoGiahJKpJ Are A881stgrt8 Doy$ A$ CommLnrty Fwk1rIir9 Offk•r Dog Welfare gr8d•.' Tralriry Flats Fenclw gr8d8'. Th8 Gr8rg8 Farmh)u LrfotiFM Partmrshlp Swort Othr project8 le Ih•n £10,L 22,333 1SB,WOI 11,742,86n 1382,89n 12,3501 19,983 1,742,867 424,000 45,000 11.934 30.165 198,047 300,QOQ 400.QOO 14.407 170,897 212.000 45.000 130,1651 122,76 175.280 300.OQQ 275,000 4,793 1125,lY]01 112,6141 3,Q Jersey Oxlordsh're P•dlord•hir• 12,291 14,724 11,3731 122,2241 I13,0) 10,910 7,SOO 13.500 8.800 5.()JO 10.500 5.rM)o 6.340 6.100 11.500 12.650 7.220 78.837 2,091 Gkg•gOW 15,Cthl 11¢,5) 15,Cp>Jl 18,3401 tr&mpsh'r• Kert LeKa¥ler8lur• 111,5(KJl 112,6501 17,2201 76,510 2.634,697 ScollaTr Yorkghkg ATrJunls s$ Ihan £S,WO HurlThg tlog• Tot•1 2,127 1 349,718 25,117 H••rkno Lknk.. Aid LiAln Outr••ch WebBne Dewlopm8rt 14.350 25.576 19,5101 J,498 26,671 B locatloTr N)rthein Ir8laThY ScotL8 Hr0 Llnk Tot•1 33.713 2.470 39.841 42.995 20.463 103.384 171.7581 21,792 103.oeo 4,980 Total reBtrktqd 538,0&8 3,814,e89 2.n7,757 25,117 35
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 2021 Irfvestment Gal I Tr8r6fers 2020 Total Irtome E¥erxlitu 2021 Unrq•trf¢t•d fund•: D•8lqn•tod fund¥'. Ffeeh)Id. BWC Free1k1- Grarge Ottr£r fCl10r0l rEd bi8eti 2.183,671 3,087.905 389,305 156.5781 I129.9) 1184,LWJ31 1107.093 4.970.629 424,601 12.720 219.299 SLtslolal fwJ asset4 Coplal rA)mnitrnrt$ 7.610,881 65,985 1370,57n 232,019 177,956 7,502,323 243,941 Tol41 fixed assets partr8p cothlThrt8 COroMw Recory Fu 7,706,a66 5,973,697 1370,5771 11.038,2331 409,975 1,121,801 2,000.C 7,746,264 8.057.065 2.IJOO,QOD Tolal desyrAle¢J 13.680.563 11,408,810) 3,531,376 14803,329 Opèratnal re8e 4.014.904 8,667.707 S.339.614 2.111,484 J 231 513 To1 w8atrKI?d 17.695.487 ,687,707 6.748,424 1.420.092 21034.842 18.233,553 12,282,378 9.486.181 1.394.975 22 424 723 1B•. RKon¢llkntlon of Mt kncoffl• to Ml ca•h fl¢>w op•ratlng aCtlvlt• 2022 2021 3.091,620 4.191,170 ItntI for.. DuprèeJation charges IGairAI1l08s on Irva8tnxnts aTrJ Int8r86t Irw irn*slmgnl$ IProfrtllkn88 on 8810 of 18roible assets Profrt on Sa ol tarfjiblg 89Sgt• f¢kl for rej• Ilr¢r8asèlld•cr•a8• In llock (Irreaso}Idecre8ao kn debtors lrtrnaÈ• in cradltCrf8 38S,117 370.S77 1083.3071 11,394.9751 170,4791 183,7561 11,1SSI 13,3831 159,8521 15,7631 1428,0181 154,840 118911 1171.5831 40a 823 Not cagh byllL4ed inl operating actNrti88 3.038 086 2.742,640 18b. Analy•ts of c••h •nd c••h •quKrAIDnt• 2022 2021 Cash Bwaitirg InstnI ShJrt lem deposits Cash 8t baN( and In har¥J 187.S62 8.298.852 83,799 74.850 5.690,195 16,679 8,402,616 5,781,724 36
HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 1fjc. Movement In net fund• At 1 April 2021 Ca8h flow At 31 March 2022 lerrn deposits Cash at bank and in haThl Cash awarting IrNestrrnnt 5,690,195 18,879 74,850 2,e8,6S7 1100,4781 112,712 8,298,852 183,7991 167,562 Total rot cash 5,781,724 2.620.891 8,402,615 19. Capltsl Gommltments 2022 2021 Contracted capitol ¢ommilmenl$ for tho group and the chadty There were no ¢•pital wnmllments at 31 M¥r¢h 2022. C8pII81 ¢ommilmenls 8131 M8th 2021 fe1818d lo an upgr8d8 lo hlgh speed br08db8nd &1 8WC £21,819 and £222, 122 for slle improvgm8nls 81 The Grnnge, Saunderton HP27 9NS. R•l•ted partlo• In the y8ar lo 31 March 2022 the followlng Iran8actlons tk place tetsyeen the charlty and wholly owned Iradlng sub8idlary'. a. Management charge8 from the charlty lo the tradlng 8ub8idiary £60,000 12021.. £14,OCQ) b. Interest payable by the trading subsldlary lo the charfty £3,05312021,' £2,918 At 31 March 2022 the amunl owed by the charity lo118 trading subsidiary amounted lo £18,159 12021. £13,949 owed by the trading sUbsry lo the chantyl. In addltlon, Ihe charfly has 108ned the ITadlng 8ub8ldiary £135,010 whiGh h85 no ffixod repayment dale, bul which 1$ 5gcured on its assets, attracting interest al 2DA over bank base r81e. Mr G Burchett (Honorary Treasurer) and Mrs M Jenning$ (Chiel Ex8¢ulivel are dire¢tors of the charity s wholly owned trading subsidiary. Jane Tommey'3 husband Paul Tommey ig employed by the Charity 85 8 d¢>a Ir8iner undef Standard contract ol employment and is paid al the same rale as other dog trainers. Jane Tommey, Director of Operations, was not Involved In the recrultmenl process and the appointment was approved by the Trustee8. £264 of don8tions from Trustees were received during the year. 21. Contlngont a88ets- Legaclos At the balance sheet dale, the charity h8d received notification Ihal il is a beneficiary of a number of legacies. 11 is not possible lo quantify these 8ccuratety or lo ascertain the dale on which the charity will receive them. The eslimaled value ol the legacies notified as at 31 Marc 2022 was £5.0 million {2021." £5.2 Mill) and is not included in the accounts. 37