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2023-03-31-accounts

HEARING DOGS FOR DEAF PEOPLE (A COMPANY LIMITED BY GUARANTEE) REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

COMPANY NUMBER: 01964878 CHARITY NUMBER - ENGLAND: 293358 CHARITY NUMBER - SCOTLAND: SC040486

HEARING DOGS FOR DEAF PEOPLE CONTENTS TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Page
Trustees’ Report 1 – 6
Strategic Report 7 – 13
Statement of Trustees’ responsibilities 14
Auditors’ Report 15 – 18
Consolidated Statement of Financial Activities 19
Balance Sheet 20
Consolidated Statement of Cash Flows 21
Notes to the Financial Statements 22 – 38

HEARING DOGS FOR DEAF PEOPLE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2023

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 statements for the year ended 31 March 2023.

Reference and administrative details of the charity

Company number: 01964878 Charity number: England: 293358 Scotland: SC040486 Registered office: The Grange Wycombe Road Saunderton Princes Risborough Buckinghamshire HP27 9NS Royal patron: HRH The Princess Royal President: Sir Stuart Hampson CVO Life vice-presidents: F B Clark D A McInnes Vice-presidents: R Bourne Air Vice-Marshal D Crwys-Williams CB FCIPD FCIM Dr H Harris MB ChB FRCGP K W Keir OBE Trustees: F B Clark (Resigned 19 July 2022) Dr B Fogle MBE DVM MRCVS G P Burchett MBA FCMI (Resigned 19 July 2022) E M Burness R Casey BVSc DipECAWBM FRCVS (Appointed 17 May 2022) M S Coote BSc P R G Davis BSc FCA BFP (Appointed 17 May 2022) B S Downes LL.B FSHAA K A England RVN DipCIM D L Hay S E Heath BVSc PgCertVE DipECAWBM(BM) CCAB FHEA FRCVS A M Horsley JP DL C McKay (Appointed 17 May 2022) K B Milsom BHSc Hons MSc H Self MA, FCA, CTA(Fellow), FRSA (Appointed 17 May 2022) Professor R T Ramsden MBE FRCS

In accordance with the Articles of Association, A M Horsley retires at the Annual General Meeting (AGM) and being eligible, offer themselves for re-election.

The Trustees each guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up.

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HEARING DOGS FOR DEAF PEOPLE TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Reference and administrative details of the charity (continued)

Executive team:

Chief Executive Interim Chief Executive

M Jennings (resigned 29[th] July 2022) M Farrow 13[th] December 2022–3[rd] July 2023 T Griffin (appointed 3[rd] July 2023)

Finance & IT Director (and Company Secretary)

C M Hedley BA ACMA J Tommey BSc A Platten S Heyes BSc

Director of Operations J Tommey BSc Director of Services & Partnerships A Platten Director of Quality & Human Resources J Gray MBA VN Director of Income Generation and S Heyes BSc Communications

Principal bankers: Barclays Bank plc PO Box 885 Mortlock House, Vision Park Histon, Cambridge CB24 9DE

Solicitors: Penningtons Manches LLP 9400 Garsington Road Oxford Business Park Oxford, OX4 2HN

Wilsons Solicitors Alexandra House St Johns Street Salisbury, SP1 2SB

Auditors: Crowe U.K. LLP Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL

Structure, Governance and Management

Governing Document

Hearing Dogs for Deaf People is a charitable company limited by guarantee and registered as a charity. The charity was incorporated on 26 November 1985 and its governing document is its Articles of Association which were adopted on 11 November 2015 and as amended by special resolutions passed 25 July 2017, 18 February 2020 and 03 September 2020.

Governing Body

Overall responsibility rests with the Board of Trustees who are also appointed as Directors of the charitable company. The appointment of Trustees is made in accordance with the Articles of Association including receipt and approval of an application for membership.

The Trustees meet formally four times a year, with Trustees also forming five sub-committees: Finance, Governance and Audit, Remuneration and the newly formed Canine Services and Hearing Loss Services sub-committees. The Finance sub-committee meets four times a year and the Governance and Audit, Canine Services and Hearing Loss Services sub-committees meet at least twice a year. The Remuneration sub-committee meets at least once a year primarily to review the salary of the Executive Board. In addition, the Trustees hold ad hoc ‘away days’ where governance and the future strategy of the charity are discussed. All sub-committees report into the Trustee Board. From time to time, certain authority from the Trustees is delegated to the Chief Executive, who is responsible for the day-to-day running of the charity.

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HEARING DOGS FOR DEAF PEOPLE TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, Governance and Management (continued)

Recruitment and Training of Trustees

The selection of Trustees is designed to supplement the existing skills and expertise of the Board and is governed by an informal skills assessment. The Trustees have a formal approach to selection, induction and training, of new trustees which includes the declaration of eligibility to serve as a Trustee, including notification of any potential conflicts of interest, introduction of a code of conduct and deaf awareness training. DBS checks are also carried out on all Trustees who also undergo safeguarding training every two years. Applications to fill vacancies are advertised and shortlisted candidates are interviewed and references taken up before they are proposed as new Trustees. Outside recruitment agencies are sometimes used to widen the search for specifically skilled Board members.

The Trustees consider it to be best practice to make every effort to have representation of the charity’s beneficiaries on the Board of Trustees.

Pay policy for senior staff

The pay of the Executive Board is reviewed annually by the Remuneration Committee and normally increased according to agreed benchmarks and the percentage annual pay award to all staff are taken into consideration.

Organisation and Structure

The charity employs 196 (2022: 184) members of staff (full-time equivalent) who are involved in the labourintensive process of creating and supporting hearing dog partnerships and supporting people affected by hearing loss. Members of staff operate within three main departments as indicated in the following organisation chart.

----- Start of picture text -----
Board of Trustees
Chief Executive
Tracy Griffin
Operations
Hearing Loss QA, Volunteering, Fundraising &
Finance & IT Canine Services
Services HR & Retail Communications
Cliff Hedley Jane Tommey Angie Patten Jo Gray Steve Heyes
----- End of picture text -----

Michele Jennings stepped down as Chief Executive on 29[th] July 2022. The role was covered by Jo Gray and Cliff Hedley until 13[th] December 2022 when Martin Farrow took over as Interim Chief Executive. Tracy Griffin joined as permanent Chief Executive on 3[rd] July 2023.

Group structure and relationships

The charity has a wholly owned subsidiary which is incorporated in the UK, Hearing Dogs for Deaf People (Trading) Limited. The subsidiary sells promotional and other goods and operates a restaurant/café from premises owned by the charitable company. It donates its taxable profits to the charitable company.

Hearing Dogs for Deaf People is a member of Assistance Dogs UK (ADUK) and plays a full and active role in this umbrella organisation which is open to assistance dog charities. Under the auspices of ADUK collaboration takes place on several fronts including access, public relations and training issues. The charity is also a fully accredited member of Assistance Dogs Europe (ADEu) and Assistance Dogs International

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HEARING DOGS FOR DEAF PEOPLE TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, Governance and Management (continued)

(ADI) and is therefore involved with assistance dogs organisations worldwide. Hearing Dogs for Deaf People is also a member of the UK Council on Deafness, a national infrastructure organisation for voluntary sector organisations working with deaf people. Other collaborative relationships with which the charity is actively involved include the Deaf Alliance and the Microchipping Alliance.

Risk Management

The Trustees of Hearing Dogs for Deaf People recognise and accept their responsibility for ensuring that risks to which the charity is exposed are reviewed, and steps taken to mitigate the impact of adverse factors through the application of appropriate preventative controls and corrective actions. A Governance and Audit sub-committee is in place and a risk management strategy has been implemented which comprises: -

The most significant risks to the organisation have been identified as: -

The Governance and Audit sub-committee oversees formal reviews, meets at least twice annually and monitors the ongoing operational management decisions which make suitable adjustments and amendments to systems and procedures as and when risks are identified in everyday operations. The Governance and Audit sub-committee reports into the Trustee Board

Objectives, Aims and Activities

Charitable Objectives

The charity’s objects as set out in the Articles of Association are the promotion of health and the relief of sickness in particular by training, providing and supporting animal assisted intervention in the relief of human deafness, disability, sickness, suffering or distress, and collaborating with other charities where appropriate.

In addition to the objects, the charity is aligned to the following strategic aims as set by the charity’s Trustee Board:

‘To offer greater independence, confidence and companionship to deaf people by providing dogs trained to support them at home and out and about whilst raising awareness of deafness and by providing an even wider range of services, through Hearing Link, to support those with hearing loss.’

‘A commitment to provide highly trained hearing dogs for deaf people and life-long support for the partnership between a deaf person and their hearing dog.’

The Trustees confirm that they have complied with the duty of Section 17(5) of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit. The charitable purpose for the charity within the meaning of the Act is enshrined within its objects as stated above.

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HEARING DOGS FOR DEAF PEOPLE TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Objectives, Aims and Activities (continued)

Aim and Intended Impact

The aim of the charity is to provide suitably trained assistance dogs to deaf or hard of hearing people as identified by our applications process, backed by agreed audiology guidelines.

Our principal aim is:

‘Helping deaf people to leave loneliness behind and reconnect with life through the provision of hearing dogs and/or by providing advice and support services to those affected by hearing loss.’

The effect on the individual through the provision of a practical means of identifying important sounds and danger signals will be greater independence and security. However, the impact typically goes far deeper than this with the introduction of a hearing dog often bringing further life-enhancing results.

Principal activities of the year

The charity’s main programme has continued to be the provision of trained and accredited hearing dogs for deaf and hard of hearing people including the provision of hearing dogs for deaf children. A small but important supplementary activity sees some hearing dogs working in conjunction with other ADUK charities to provide dogs to meet dual disabilities. The charity also provides a number of support dogs to deaf adults and children.

In addition, the charity’s activities have been expanded through a merger with Hearing Link to reach out to people with hearing loss and their families to help them improve their lives. This is achieved by connecting people with one another, providing information, advice and training and raising awareness and understanding of the profound impact of hearing loss on every aspect of life.

All other activities have been undertaken to support the current programmes and to ensure the future development and expansion of the charity and its capacity to meet the growing demand for trained dogs.

The charity’s core values underpin everything we do with consequential benefits for beneficiaries, volunteers and staff alike. These values are Kindness, Professionalism and Courage.

2022/23 saw the celebration of the charity’s 40[th] birthday. There were a considerable number of events arranged for the year with marquees erected on both sites owned by the charity, hosting a number of events involving staff, beneficiaries and volunteers. The charity also made an appearance at Crufts in 2022. The highlight of the celebrations was a visit to The Grange by our Royal Patron, HRH The Princess Royal on 3[rd] March 2023. HRH The Princess Royal met many of the Hearing Dogs family present on the day with all enjoying the event.

Activities in Scotland – Registered Charity Number: SC040486

Hearing Dogs has one member of staff permanently based in Scotland, supplemented as necessary by management and staff from both the northern and southern training centres. Operational needs are covered by a partnership instructor who supports some 70 Scottish partnerships, while fundraising activities are undertaken by a full-time fundraiser based in the North of England and a local branch run by volunteers. Fundraising activities include the generation of funds some of which are restricted for use in Scotland.

The Hearing Loss Services team have 3 staff members operating from Scotland in roles related to communications, community support and volunteer engagement. We receive a partial contribution to their salaries through the Scottish government project funding.

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HEARING DOGS FOR DEAF PEOPLE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Voluntow Support The charity had 3,04612022.. 3,093} volunleers at 31 March 2023 whlch includes 235 micro-volunleers {2022= 1351. Overall volunteer numbers remain static al ILtst over 3,000 however, for the Ihlrd year since the Covld-19 pandemic, there is a decrease -14712022.. -1541 in the nurnber of registered volunteers li.e. those who have entered into a formal agreement with the charity) 10 2,811 12022.. 2,9581 however this n81 decrease masks Volunteer turnover which recorded 33712022.. 4031 new volunteers and 48412022,. 5571 departures. Volunteer recnJltmenl into long term commitment roles remains challenging. That said. almost 6¢)0 Gurrenl volunteers have given len years, service or over, The charitvs 40th Annlversary celebrations Ihls year were great reward for our volunteer famlly who proved themselves lo be exceptionally resilient, generous. and loyal. The charity has 35 dlfferenl roles that volunteers are engaged in and 15Dh of our volunteers carry out more than one role. The newly formed Volunt88r Awards Team also had success brlnglng public recognition lo more than 25 individual stars, Including a Points of Light award by the Prime Mlnlsler, a Mldlothlan Volunteer Award, and Vdunleer of the Year award In East York8hlre. Communlty ba3ed dog care became our standard modus operandi, wSlh excellent feedback from our volunteers regardlng havlng both 8 training and welfare dedicated member of staff. This belng in addition to big empha8is we have ¢onlinued lo place on volunteer communication through portals, quarterly updates, monthly departmental newslellers and 50clal medla, In particular Yammer11,800 members) and our ever-popular volunteers, Facebook group {2,200 membor8)- Volunleerlng puppy Iralnlng was expanded lo Darlinglon, Northampton and Barnel & Herford bringing new volunteers Into the fold. New volunteer enqulrles reached pre-pandemic levels of over 3,000 enquirie5 in total. peaklng in Oclober 2022. The prevalence of worklng-from-home, the notable trend in pel dog owner8hlp and other Iweslyle chang88 since 2020 meant that conversion ral85 have lowered. Provlslon of Inforniatlon to audltors Each of the persons who are Dlreclors al the Ilme when this Oirectors, report 15 approved has confirmed that.. so far as th81 Dlreclor Is aware, there is no relevant audll Information of which the Company's auditors are unaware. an that Dlreclor has taken all the steps that ought to have been taken as a director In order lo be awar8 of any information needed by the Company's auditors in connection with pr8parlng their report and lo eslabllsh that thé Company's audltors are aware of that Information. Audltor8 In 8c¢ordance wllh Section 485 of the Companies Act 2006, a resolution proposing the reappointment of Crowe U.K. LLP as auditors of the company will be put lo the Annual General Meeting. Approved by the board on 18 July 2023 and signed on their behalf by . C M P O'Donovan-Rossa (Chairman}

HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Review of the charity, and its achievements and performance for the year

Objectives for the year

The charity maintains a balance between the resources required to meet its commitments to the people with hearing loss it seeks to serve and those required to train and support the dogs which are an integral and vital part of the success of the organisation. The key aspects of the charity’s plans in 2022/23 were to:

  1. increase the charity’s impact in helping people experiencing mild to moderate hearing loss as well as those with profound hearing loss.

  2. continue to train some 200 dogs per annum for core deaf support roles.

  3. maintain the charity’s financial performance and its strong balance sheet by developing and expanding new and existing income streams, constraining costs and ensuring all charity assets are fully utilised.

  4. increase public awareness of the charity and maximise the resulting fundraising opportunities.

  5. re-open The Grange restaurant/café and gift shop and return the trading subsidiary to profitability so as to deliver a sustainable income stream for the charity in the longer-term.

  6. build on the existing volunteer network and expand the breadth and depth of the charity’s services including further development of micro-volunteering.

  7. Continue to work towards the objectives of the Hearing Dogs Five Year Plan which was initiated in 2021

Strategies to achieve the year’s objectives

The following strategies for achieving the objectives stated above were put in place to:

  1. extend the charity’s Hearing Loss Services through Hearing Link including self-help resources, the helpdesk, LiveChat, the online shop and specific projects and events run by both staff and volunteers.

  2. build on the charity’s operations which are made up of three national teams namely Canine Services, Hearing Loss Services and Quality Assurance. Continue the review and refinement of operational processes and procedures working closely with staff and volunteers. Improve productivity and quality assurance through improving standards of welfare, training and assessment.

  3. develop new income streams including expansion of the puppy sponsorship regular giving scheme using all media channels particularly direct marketing, regular communications and appeals to new and longer-term supporters. Constrain revenue and capital expenditure through tight budgetary control and the streamlining of operational and supporting activities.

  4. implement a detailed programme of communications and events including the provision of information on all fundraising opportunities and events via social media channels and the charity’s website.

  5. build our relationships with suppliers and our outsourced caterer to deliver high quality goods and services, attracting new customers, and increasing income and controlling costs.

  6. recruit new volunteers and communicating with all volunteers primarily through in-person and virtual events, social media, regular updates and online portals.

What we achieved during the year

The following progress was made towards achieving the objectives stated above:

  1. Total number of dogs completing training during the year was 156 ( 2022: 202 ). Each hearing dog takes some 18-24 months to train.

  2. 1,144 Hearing Dog Partnerships were supported throughout the UK.

  3. Over 300,000 people accessed our Hearing Loss Services for support.

  4. The number of volunteers continued to exceed 3,000. Their support in all areas of our work is vital and very gratefully received.

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HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Fundraising practices and performance

At Hearing Dogs, we know that choosing to support a charity is a very personal decision, and we value each and every one of our supporters.

Everything we do is driven by our desire to help as many deaf people as we can. Every donation, sponsorship or gift in a Will is put to use as effectively as possible to help more deaf people.

Hearing Dogs for Deaf People is registered with the Fundraising Regulator, and we follow the Regulator's Code of Practice which sets out the standards members are expected to adhere to when raising money, taking all reasonable steps to protect vulnerable people from persistent approaches, unreasonable intrusion or undue pressure.

Much of our fundraising is carried out by dedicated volunteers who have been through a thorough application and vetting process. They are all required to sign an ‘agreement and understanding’ with Hearing Dogs that they will adhere to the charity's policies, procedures, data protection and confidentiality guidelines. Each registered volunteer fundraiser is allocated a volunteer co-ordinator 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 the charity and carry out their activities in an appropriate manner. Furthermore, Hearing Dogs has a dedicated Volunteering Department and central Fundraising Team who uphold best practice and offer further support, training and guidance.

We work with an external company to run 2 or 3 raffles a year, as well as our Weekly Lottery. The company is accredited by the Gambling Commission, Institute of Fundraising, the Lotteries Council and Responsible Gambling Trust.

We make sure that all our marketing materials carry clear messaging about how our supporters can contact us to change the way we communicate with them, and we make every effort to respect our donor's preferences. We respond quickly to resolve any complaints we receive about our fundraising.

During the financial year, the charity received no complaints requiring action by the Fundraising Regulator. Our IT team also works very hard to make sure that we understand and remain fully compliant with GDPR requirements.

Operational performance

Canine Services (Hearing Dogs)

In the last financial year, we trained 156 dogs for deaf clients.

This is slightly less than the number originally aimed for. Dogs have continued to take slightly longer to finish all their training if they were born during Covid restrictions, however, the vast majority of dogs have succeeded in developing sufficiently for a working role. During the year we had 138 puppies born.

In this time, we have also focused on the continued development of our training course for new partnerships. This activity now has a dedicated team based at our two centres that specialise in supporting the course, and in particular the final week which is based at both our Buckinghamshire and Yorkshire centres.

In 2023/24 we aim to train 185 dogs for deaf clients. We will also invest in our Learning & Development infrastructure for dog training staff and volunteers, setting up a nationally accessible support framework to provide a clear, confident & connected experience for the operations team in future years. This will be a combination of dedicated staff and technology solutions.

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HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Hearing Loss Services

All departments within the Hearing Loss Services team have focused on working closely together to ensure that we take every opportunity to engage with potential beneficiaries effectively and where possible, identify future pathways for support. This has meant diversification in some roles and investment in our digital platforms.

We have reintroduced many 1-1 sessions now named ‘Hearing Support Sessions’ and opened the Hearing Hub for technical and emotional support sessions.

Objectives for the Year:

Strategies to achieve this year’s objectives:

Outcomes:

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HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Human Resources

The charity employed 262 staff throughout the financial year and ended the year with a turnover rate of 13.6%. The charity had 218 staff at 31 March 2023. Hybrid working was trialed for specific roles and successfully made permanent. This has strengthened the charity’s commitment to staff wellbeing and employee engagement.

A detailed pay review was completed across the organisation with positive feedback received. Our HR Management systems continue to be strengthened to respond to the needs of our growing hybrid, regional roles.

Recruitment for a new permanent CEO was successful, as was the appointment of an interim CEO to provide leadership over a 6-month period. The Executive team have a combined total of over 60 years of service to the charity which has provided stability and success for the organisation during this period.

Investment performance

Evelyn (formally Tilney) have been the charity’s investment managers for the last nineteen years having been re-appointed in 2010 after conducting a tendering process. The table below records the performance of the Income and Growth Portfolio valued at £7.9 million ( 2022: £8.1 million ), including cash awaiting investment, against four indices for last year and the last nineteen years.

Year 2022/23 Nineteen Year Period
(Total Return) (Total Return)
Income and Growth Portfolio - 1.98% +187.54%
MSCI WMA Private Investor Balanced - 3.23% +128.85%
ARC Balanced PCI - 4.52% +131.50%
ARC Balanced ACI - 4.52% +157.61%
MSCI United Kingdom TR + 5.60% +246.88%

The favoured benchmarks are currently the ARC Balanced indices as these are comparable with the underlying asset allocation of the Hearing Dogs portfolio. Performance over the past nineteen years has exceeded the benchmarks and a satisfactory result was achieved in 2022/23, given the cautious growth investment strategy which has been followed for some time. Comparative figures are also shown for the MSCI WMA Private Investors Balanced and MSCI United Kingdom TR indices. The charity has reviewed its investment strategy for the coming year and will continue to monitor performance against the agreed benchmarks.

In addition, the charity has invested in more recent years in a more aggressive Growth Portfolio. The table below records the performance of this portfolio valued at £1.2 million ( 2022: £1.2 million ), including cash awaiting investment, against four indices for last year and the six years since inception.

Year 2022/23 Eight Year Period
(Total Return) (Total Return)
Growth Portfolio - 0.85% +53.02%
MSCI WMA Private Investor Growth - 1.35% +70.97%
ARC Steady Growth PCI - 4.52% +39.86%
ARC Steady Growth ACI - 4.04% +45.73%
MSCI United Kingdom TR + 5.60% +57.36%

A satisfactory result considering the market conditions was achieved in 2022/23 and the charity has reviewed its investment strategy for the coming year and will continue to monitor performance against the agreed benchmarks.

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HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Financial review, including results for the year and position at the year end

The charity recorded a net deficit of £335,870 ( 2022: £3,091,520 surplus ). Expenditure exceeded income by £101,593 ( 2022: £2,508,213 excess of income over expenditure ) and investment losses amounted to £234,277 ( 2022: £583,307 gains) .

The primary reasons for the change in results are:

Total income decreased by £1.6 million to £12.1 million ( 2022: £13.7 million ). The major movements were an increase in donations of £0.8 million relating to the receipt of two major donations from trusts and foundations, and a decrease in legacies of £2.7 million partially due to year end accounting adjustments. We remain very grateful to all our supporters who provide us with the financial resources we need to continue to maintain and develop our work. Their many contributions are essential given that there is continuing demand for the charity’s hearing dog and hearing loss services for which it receives only a relatively small amount of government funding.

Total net assets reduced by £0.3 million to £25.2 million ( 2022: £25.5 million ) at the year end. Total fixed assets decreased by £0.4 million to £16.6 million ( 2022: £17.0 million ) principally due to investment loss. Net current assets increased by £0.1 million to £8.6 million ( 2022: £8.5 million ).

Designated funds increased by £2.2million to £17.5 million (2022: £15.3 million ) and the operational reserve and restricted funds amounted to £6.6 million ( 2022: £9.3 million ) and £1.0 million ( 2022: £0.9 million ) respectively.

Reserves policy

The charity operates to provide immediate benefit to hearing dog deaf partners followed by a lifetime of partnership support for them and their families. With plans to increase the number of dogs being trained each year and 1,019 ( 2022: 974 ) working partnerships located throughout the country this level of support is expensive to maintain and will require both capital and revenue expenditure as a continuing investment for the future. In addition, it is dependent on voluntary income, principally legacies, which can be subject to considerable fluctuation from year to year.

The Trustees continue to monitor and review annually the level of reserves in conjunction with the setting of annual budgets and the development of the long-term strategy to meet the changing nature of demand.

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HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Reserves policy (continued)

The charity’s policy has been reviewed during the year and is to maintain the following unrestricted funds:

Designated Funds for Tangible Fixed Assets.

This represents unrestricted reserves set aside by the Trustees for the functional fixed assets and capital commitments of the charity required to carry out its principal activities. At 31 March 2023 this reserve stood at £7.5 million ( 2022: £7.7 million ).

Designated Funds for Existing Partnerships.

These funds have been set aside to cover future long-term commitments, principally relating to existing hearing dog partnerships, which at 31 March 2023 were estimated at £6.4 million ( 2022: £5.9 million ) over the next 10 years.

Designated Fund for Recovery from the Coronavirus Pandemic.

During 2021 the Trustees approved the creation of a £2.0 million Coronavirus Recovery Fund to provide for the consequences of the pandemic, some of which may not materialise for some time, as it takes eighteen months to two years to fully train a hearing dog. In the lead up to the end of the current accounting period it was felt that it was unlikely that any further expenditure would be required that was directly related to the Covid-19 outbreak. As such the fund was returned to undesignated funds.

Property Development Fund

There are plans currently being formulated to alter parts of the sites in Buckinghamshire and Yorkshire. The operating environment has changed since the Coronavirus pandemic and neither site now use their kennel buildings. It is hoped that the areas no longer used can be redeveloped to provide enhanced welfare for the dogs that are vital to the assistance that we provide. It is integral to everything that we do that Hearing Dogs ae well trained and cared for during their lives. A fund of £3.5m has been established to support the plans.

Operational (Free) Reserve.

The policy of the Trustees is to hold an operational reserve equivalent to 6-12 months operating expenditure. At 31 March 2023 this reserve stood at £6.6 million ( 2022: £9.3 million ) which represents 6.5 months running costs, based on the 2023/24 expenditure budget. The objective is, therefore, to maintain this reserve to ensure that sufficient funds are available at all times to cover the charity’s operating expenditure.

Investment policy

For the last nineteen years, the Trustees have given their appointed investment managers, Evelyn (formerly Tilney), discretion to manage the Income and Growth Portfolio with a cautious growth risk profile providing both income and capital growth. The Trustees have also invested additional funds in a more aggressive Growth Portfolio which is also managed on a discretionary basis by Evelyn. Decisions are taken in accordance with the charity’s investment policy document which has been approved by the Board of Trustees. The charity’s overriding policy remains to maximise returns whilst ensuring that as far as possible the funds invested are adequately safeguarded.

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HEARING DOGS FOR DEAF PEOPLE STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2023 Futur• plan• Undwplnnlng the ¢haflW8 strategic plans are its objectives wthich are sel out on pag88 4-5. Th8 charity plans to bulld on It8 2021-28 strale9y Wth the key a8Fcts of the plan belng to.. 1. In¢rea$e thè charlty's Impact in hdping people experienclng rnlld to moderate hearlng loss as as those with profound hearing loss. continue IrainSng some 200 dogs per annum for core deaf support roles. malnlain the charity's flnanci81 performance and its Strong balance sheet by developlng and expaThJing new and exl8tlng income streams, conslralnlng costs and en8urirvJ all charlty assets are fulty ulilised. increase publlc awarenèss of the charity and maximise the r88ulllng fundralslng opportuniti88. rolurn the trading subsid1￿ lo profftabllily so 88 to deliver a 8U8lalnable Income 81ream for the ¢harlty in th8 longer-lem). 6. bulld on thè exi8tlng vdunteer nètwork so as to expand the breadth and depth of the charity's Approv￿ by Ihe board on 18 July 2023 and signed on their beha￿ by . C M P O't)orthian-Ro888 IChoman} 13

HEARING DOGS FOR DEAF PEOPLE STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023

The Trustees (who are also Directors of Hearing Dogs for Deaf People for the purposes of company law) are responsible for preparing the Trustees’ Annual Report, the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Independent Auditor’s Report to the Members and the Trustees of Hearing Dogs for Deaf People

Opinion

We have audited the financial statements of Hearing Dogs for Deaf People (‘the charitable company’) and its subsidiary (‘the group’) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Group Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other.

15

Other information (continued)

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

16

Auditor’s responsibilities for the audit of the financial statements

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

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we particularly considered in this context for the charitable company were Charity Commission regulations, General Data Protection Regulation (GDPR), cyber security, Equality Act and Animal Welfare Act, whilst also acknowledging that the charitable company works to comply with all other relevant legislation such as Employment law.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within completeness and timing of recognition of income from certain income streams and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, sample testing related income streams, reviewing accounting estimates for biases and reading minutes of meetings of those charged with governance.

17

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 nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance 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: 29 August 2023

18

HEARING DOGS FOR DEAF PEOPLE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income from:
Donations and legacies
4
Grants receivable
4
Charitable activities
4
Trading and fundraising
4
Investments
4
Other
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
5
Total expenditure
Net (losses)/gains on investments
Net income
Transfers between funds
17
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
17		 Unrestricted
Funds
£
7,578,341
-
89,417
1,203,577
271,999
74,350
9,217,684
2,688,224
6,749,434
9,437,658
(234,277)
(454,251)
-
(454,251)
24,642,654
24,188,403		 Restricted
Funds
£
2,872,800
-
-
-
-
-
2,872,800
-
2,754,419
2,754,419
-
118,381
-
118,381
873,589
991,970		 Total 2023
Total 2022
£
£
10,451,141
12,388,828
-
38,477
89,417
69,561
1,203,577
1,119,345
271,999
70,479
74,350
49,904
12,090,484
13,736,594
2,688,224
2,887,866
9,503,853
8,340,515
12,192,077
11,228,381
(234,277)
583,307
(335,870)
3,091,520
-
-
(335,870)
3,091,520
25,516,243
22,424,723
25,180,373
25,516,243

The notes on pages 21 to 38 form part of these financial statements

19

HEARING DOGS FOR DEAF PEOPLE BALANCE SHEET 31 MARCH 2023 COMPANY NUMBER: 01964878 Th• Crfoup 2023 Th• Charlty 2023 2022 Not• Flxgd ••t&' Tangible ass818 h￿tMentS 7.476,OJ4 9.091117 7,731,285 9.295.040 7,476.054 •,09Z117 7,731.285 9.295,040 10 Tolal flx•d a•wts 18.sea,171 17.026,325 10,568.171 17.026.325 Curr•nt •• st￿ks Deblo stKxt lern ¢knslls Cash al bar44 and In hand 11 12 4S,307 781,520 8.487,014 18,431 38.155 1.520,176 8.298.852 183,7891 882,568 ,487.014 14140 1,646,356 8,298,852 {W),7831 Total curr•nt ••••ts 9,311272 9.773.384 ,383,712 9,854.425 Llabllltlo Credllors.. Amwn18 falllng due thin year 13 700,070 11.283.488> 088,289 11.287.928) N•t current 4gJ•Dts 8,012,202 8,489,918 8.695.423 8,566,497 Totsl n•¢ a•t• 14 25.180.373 25,518.243 25,2e3.S94 25,592,822 Fund R851rieled fiJnd5 Unreslrfcled fvnds.. D65Ignal8d Operali¢Jnal re8ervJ 17 991.970 873.589 991.970 873,589 17 17 17,539,339 15,304.842 17.539.339 9,337.812 6.n2.2B5 15,304,842 9.414.391 Total funds 17 25.180.373 25,516.243 25.263.5M 25.592.822 The defldt tn the year relallng to the parent charity was £329,228 (2022.. surplus £3,067,559) The financial statements were apwoved and authorlsed for issue by the board on 18 July 2023 and were Signed on its behaw by: C M P O'tionovan-Ro8sa Chaimian Honorary Treasurer notes on pages 21 to 38 form part of these finan￿¥1 statements

HEARING DOGS FOR DEAF PEOPLE

CONSOLIDATED STATEMENT OF CASHFLOWS

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities:
Net cash provided by/(used in)
operating activities
18a
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from the sale of tangible assets
Purchase of tangible assets
Proceeds from the sale of investments
Purchase of investments
Net cash provided by / (used in)
investing activities
Change in cash and cash
equivalents in the reporting
period
18c
Change in cash and cash
equivalents at the beginning of
the reporting period
18b
Cash and cash equivalents at
the end of the reporting period
18b		 2023
£
271,999
6,550
(120,837)
1,573,624
(1,530,173)		 2023
2022
£
£
164,034
3,036,065
70,479
1,155
(594,079)
1,462,468
(1,355,197)
201,163
(415,174)
365,197
2,620,891
8,402,615
5,781,724
8,767,812
8,402,615

The notes on pages 21 to 38 form part of these financial statements

21

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies

a) Basis of preparation

Hearing Dogs for Deaf People is a charity registered in the UK (charity number 293358 (England) and SC040486 (Scotland)) with its registered office at The Grange, Wycombe Road, Saunderton, Princes Risborough, Buckinghamshire, HP27 9NS.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Consolidated financial statements (“group accounts”) 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 from presenting its unconsolidated profit and loss account under section 408 of the Companies Act 2006 and as permitted by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

Hearing Dogs for Deaf People meets the definition of a public benefit entity under FRS 102.

b) Income

Voluntary income received by way of donations and gifts to the charity is included in full in the statement of financial activities when received.

Legacy income is included in the financial statements when the charity is satisfied that the conditions of entitlement, probability and measurement have been met. Pecuniary legacies are accounted for when notified. Residuary legacies are accounted for when notification of impending distribution is received and/or receipt occurs within one month of the year end. Residuary legacies subject to a life interest 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 services is included in the statement of financial activities in the period in which the supply is made.

Grants receivable are accounted for under the performance model as permitted by the Charities SORP. Coronavirus Job Retention Scheme grant income is therefore recognised so as to match the furlough period of each relevant employee. The grants from the local council were due to the business needing to be closed or restricted as a result of government guidance during the Covid-19 pandemic and have been recognised on a receivable basis in this accounting period.

c) Volunteers

In accordance with the Charities SORP (FRS 102), the time given by volunteers is not recognised in the accounts. Information about the contribution of volunteers is contained in the trustees’ annual report.

d) Unrestricted funds

Unrestricted funds are donations and other incoming resources to the charity, received or generated for its charitable purposes.

e) Designated funds

Designated funds are funds set aside out of unrestricted funds by the Board of Trustees and applied towards specific purposes as identified by the Board of Trustees.

f) Restricted funds

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

22

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Expenditure on raising funds comprises the costs of the central and community fundraising teams and the trading subsidiary and their associated support costs.

Expenditure on charitable activities comprises all costs relating to the provision of hearing dogs for deaf people including the costs of the supply and training, partnership services and quality assurance teams and their associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs comprising facilities, general management, legal and professional, IT and governance costs which support the charity’s activities. These costs have been allocated between expenditure on raising funds and expenditure on charitable activities on the basis set out in note 5a.

i) Operating leases

All leased property and equipment are considered to be operating leases, and rentals are charged against revenue on a straight-line basis over the life of the lease. No assets are held under hire purchase agreements.

j) Fixed assets and depreciation

Depreciation is provided on tangible fixed assets at rates calculated to write off the cost of each asset over its estimated useful life, as follows:

Motor vehicles 25% per annum on a straight-line basis Furniture and equipment 20% per annum on a straight-line basis Freehold property 2% per annum on a straight-line basis

Fixed assets costing under £500 are not capitalised and treated as revenue expenditure.

k) Investments

Listed investments are stated at market value. Investments in subsidiaries are included in the charity accounts at cost.

l) Stocks

Stocks of goods held for resale are stated at the lower of cost and net realisable value, after making due allowance for obsolete or damaged goods.

m) Debtors

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

n) Short term deposits and cash at bank and in hand

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

23

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

o) Creditor s

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

p) Branches

The branches of Hearing Dogs for Deaf People are run independently under their own constitutions. Net income from branches is included in the SOFA on an accruals basis.

q) Pensions

r) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2. Critical accounting judgements and key sources of estimation uncertainty

Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are as follows:

Residuary legacies are recognised on notification which therefore requires an estimation of the amount receivable as described in note 1b).

The estimates and underlying assumptions are reviewed on an ongoing basis. In the view of the Trustees, no assumptions concerning the estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts.

24

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

3. Comparative statement of financial activities

Income from:
Donations and legacies
Grants receivable
Charitable Activities
Trading and fundraising
Investments
Other
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net gains on investments
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
10,252,757
38,477
69,561
1,119,345
70,479
49,904
11,600,523
2,887,866
5,977,829
8,865,695
583,307
3,318,135
289,677
3,607,812
21,034,842
24,642,654		 Restricted
Funds
Total 2022
£
£
2,136,071
12,388,828
-
38,477
-
69,561
-
1,119,345
-
70,479
-
49,904
2,136,071
13,736,594
-
2,887,866
2,362,686
8,340,515
2,362,686
11,228,381
-
583,307
(226,615)
3,091,520
(289,677)
-
(516,292)
3,091,520
1,389,881
22,424,723
873,589
25,516,243

25

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

4. Income

Donations and legacies
Donations
Income from branches
Sponsorship
Legacies
Gift Aid
Grants receivable
Coronavirus Job Retention Scheme
Local Authority Grants
Charitable activities
Sale of hearing equipment
Services to other charities
Trading and fundraising
Fundraising events
Trading subsidiary income
Investment income
UK listed securities
UK bank interest
Other income
Rent received
Profit on sale of tangible assets
Other income
Total income		 Unrestricted
Funds
£
862,111
19,614
2
6,466,300
230,314
7,578,341
-
-
-
13,313
76,104
89,417
441,932
761,645
1,203,577
84,918
187,081
271,999
48,495
6,550
19,305
74,350
9,217,684		 Restricted
Funds
£
1,482,266
1,390,534
2,872,800
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,872,800		 Total 2023
Total 2022
£
£
2,344,377
1,584,975
19,614
59,966
1,390,536
1,374,097
6,466,300
9,130,692
230,314
239,098
10,451,141
12,388,828
-
14,477
-
24,000
-
38,477
13,313
19,857
76,104
49,704
89,417
69,561
441,932
365,599
761,645
753,746
1,203,577
1,119,345
84,918
60,764
187,081
9,715
271,999
70,479
48,495
46,674
6,550
1,155
19,305
2,075
74,350
49,904
12,090,484
13,736,594

26

HEARING DOGS FOR DEAF PEOPLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

5. Expenditure

Expenditure on:
Raising funds:
Donations and legacies
Fundraising trading
Investment management
Charitable activities:
Provision of hearing dogs
Supporting people affected by
hearing loss
Total expenditure 2023
Total expenditure 2022		 Direct Costs
£
906,110
708,287
55,299
1,669,696
1,359,798
31,016
1,390,814
3,060,510
2,948,774		 Staff Costs
£
730,392
97,649
-
828,041
5,922,751
238,384
6,161,135
6,989,176
6,348,371		 Depreciation
£
40,877
-
-
40,877
335,191
-
335,191
376,068
355,117		 Support Costs
£
121,897
27,713
-
149,610
1,547,685
69,028
1,616,713
1,766,323
1,566,119		 Total 2023
Total 2022
£
£
1,799,276
2,042,042
833,649
790,525
55,299
55,299
2,688,224
2,887,866
9,165,425
8,024,315
338,428
316,200
9,503,853
8,340,515
12,192,077
11,228,381
11,218,381

5a. Support costs

Support costs included in the above are analysed as follows:

Raising funds:
Donations and legacies
Fundraising trading
Charitable activities:
Provision of hearing dogs
Supporting people affected by
hearing loss
Total expenditure 2023
Total expenditure 2022		 Facilities
£
55,912
22,713
78,625
510,029
12,109
522,138
600,763
536,936		 General
Management
£
29,928
2,500
32,428
458,542
44,670
503,212
535,640
400,408		 Legal &
Professional
£
12,208
-
12,208
247,474
11,070
258,544
270,752
299,639		 IT
£
23,849
2,500
26,349
331,640
1,179
332,819
359,168
329,136		 Total 2023
Total 2022
£
£
121,897
76,426
27,713
25,222
149,610
101,648
1,547,685
1,426,260
69,028
38,211
1,616,713
1,464,471
1,766,323
1,566,119
1,566,119

Total governance costs included above are £77,418 ( 2022: £77,174 ).

Costs have been allocated across activities based on a combination of direct allocation and where appropriate apportionment based mainly on the average number of employees. The cost percentage allocated to each cost heading is as follows:

2023 2022
% %
Raising funds:
Donations and legacies 14.7 18.2
Fundraising trading 6.8 7.0
Investment management 0.5 0.5
Charitable activities:
Provision of hearing dogs 75.2 71.5
Supporting people affected by
hearing loss 2.8 2.8

27

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Net income

This is stated after charging/(crediting):

Profit on sale of fixed assets
Depreciation
Auditors' remuneration
- audit
-other services
Operating lease rentals
- equipment
-property		 2023
2022
£
£
(6,550)
(1,155)
376,068
365,117
23,365
20,320
3,835
3,450
12,182
12,182
2,832
2,832

7. Staff costs and numbers

Staff costs were as follows:
Salaries and wages
Social security costs
Pension contributions		 2023
2022
£
£
6,074,679
5,578,849
613,118
549,280
266,791
220,242
6,954,588
6,348,371

There were termination costs in the year of £154,693 ( 2022: £Nill ). Termination costs include any payments in lieu of notice and pension contributions paid on termination.

The number of employees whose emolument exceeded £60,000 fell within the following ranges:

2023 2022
Number Number
£60,001 - £70,000 1 2
£70,001 - £80,000 2 1
£80,001 - £90,000 1 1
£90,001 - £100,000 - -
£100,001 - £110,000 1 -
£140,001 - £150,000 - 1
£160,001 - £170,000 1 -

Contributions to the charity’s defined contribution pension scheme for the highest paid employee amounted to £40,058 ( 2022: £11,084 ).

The key management personnel of the charity are the trustees and the executive team led by the Chief Executive. No (2022: one) member of the executive team earned salaries of less than £60,000 and are not included in the table above. Total employee benefits (gross salaries, employers NI and employers pension contributions) of all the key management personnel of the charity and the group were £739,617 ( 2022: £578,708 ).

The Trustees did not receive any remuneration during the year to 31 March 2023 ( 2022: £Nil ). Trustees received reimbursed travel and subsistence expenses in 2023 of £1,742 ( 2022: £Nil ).

28

HEARING DOGS FOR DEAF PEOPLE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

7. Staff costs and numbers (continued)

2023 2022 2022
Number Number
Average FTE Average FTE
Hearing Dogs: supply, training,
welfare and aftercare 147 132
151		 139
Hearing Link: supporting people
affected by hearing loss 16 15
6		 5
Fundraising 20 18
21		 20
Communications and marketing 12 11
8		 6
Management and administration 21 20
14		 14
Total 216 196
200		 184
The charity operates a defined contribution pension scheme for all eligible employees which was set
2014 in order to comply with auto-enrolment regulations. The assets of the scheme are held separ
hose of the charity in an independently administered fund. The pension charge represents co
payable by the charity to the fund. Pension contributions outstanding at 31 March 2023 amount
2022: £Nil).
8.
Taxation
The charitable company is not in receipt of any income that is subject to corporation tax.
9.
Tangible assets – Charity and Group
Freehold Motor Furniture and
property vehicles equipment Total
£ £ £ £
Cost
At 1 April 2022 9,663,715 299,423 1,886,028 11,849,166
Additions 32,850 10,838 77,149 120,837
Disposals - (54,348) - (54,348)
At 31 March 2023 9,696,565 255,913 1,963,177 11,915,655
- - -
Depreciation
At 1 April 2022 2,449,640 284,105 1,384,136 4,117,881
Charge for the year 193,276 5,958 176,834 376,068
Disposals - (54,348) - (54,348)
At 31 March 2023 2,642,916 235,715 1,560,970 4,439,601
- - -
Net book value
At 31 March 2023 7,053,649 20,198 402,207 7,476,054
At 31 March 2022 7,214,075 15,318 501,892 7,731,285

The charity operates a defined contribution pension scheme for all eligible employees which was set up in April 2014 in order to comply with auto-enrolment regulations. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension charge represents contributions payable by the charity to the fund. Pension contributions outstanding at 31 March 2023 amounted to £Nil ( 2022: £Nil ).

8. Taxation

The charitable company is not in receipt of any income that is subject to corporation tax.

9. Tangible assets – Charity and Group

29

HEARING DOGS FOR DEAF PEOPLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

9. Tangible assets (continued)

Net book value
At 1 April 2022
Additions at cost
Disposals at net book value
Depreciation charge
Net book value at 31 March 2023		 Beatrice
Wright
Centre
£
2,050,515
14,356
-
(56,578)
2,008,293		 The Grange
Total
£
£
5,163,560
7,214,075
18,494
32,850
-
-
(136,698)
(193,276)
5,045,356
7,053,649

All of the tangible fixed assets of the charity are used for direct charitable purposes.

10. Fixed asset investments

Quoted investments
Market value at 1 April
Purchases
Sales
Net investment (losses)/gains
Market value at 31 March
Cash awaiting investment
Total at 31 March		 2023
2022
£
£
9,107,478
8,631,442
1,530,173
1,355,197
(1,573,624)
(1,462,468)
(234,277)
583,307
8,829,750
9,107,478
262,367
187,562
9,092,117
9,295,040
Group

In addition to the above, the charity accounts included an investment of £2 in its wholly owned trading subsidiary (see note 16).

The historic cost of quoted investments at 31 March 2023 was £7,643,870 ( 2022: £7,450,981 ). Included in the operational reserve shown in the balance sheet (see page 20) is a revaluation reserve of £1,185,880 ( 2022: £1,656,497 ) which is calculated by comparing the historical cost of quoted investments with their market value as shown above.

These investments are basic financial instruments which are held for investment return and measured at fair/market values. The consolidated entity’s income, expense, gains and losses in respect of financial instruments are as follows:

Total dividend and interest income for basic financial assets
Total (losses) / gains in respect of basic financial assets		 2023
2022
£
£
271,999
70,479
(234,277)
583,307

30

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11. Stocks

12.
Debtors
Goods for resale
Trade debtors
Loan to subsidiary
Other amounts due from subsidiary
Prepayments
Other debtors and accrued income		 2023
2022
£
£
45,307
38,155
Group
2023
2022
£
£
8,186
8,001
-
-
(11)
-
195,461
500
557,884
1,511,675
761,520
1,520,176
Group		 2023
2022
£
£
-
-
Charity
2023
2022
£
£
-
-
85,010
135,010
45,421
-
194,243
-
557,884
1,511,346
882,558
1,646,356
Charity

12. Debtors

Total debtors includes £85,010 ( 2022: £135,010 ) receivable after more than one year. This represents the loan to the subsidiary trading company that is secured by a fixed and floating charge over the assets of that subsidiary, with interest charged at 2% over Barclays Bank base rate.

All debtors are basic financial instruments measured at amortised cost, with the exception of prepayments.

13. Creditors: Amounts falling due within one year

Trade creditors
Taxation and social security
Other creditors and accruals		 2023
2022
£
£
265,343
281,723
158,494
267,926
276,233
733,817
700,070
1,283,466
Group		 2023
2022
£
£
264,952
279,439
158,494
267,926
264,843
740,563
688,289
1,287,928
Charity

All creditors are basic financial instruments measured at amortised cost, with the exception of taxation and social security.

31

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14. Analysis of group net assets between funds

2023
Tangible fixed assets
Investments
Current assets
Current liabilities
Group funds at 31 March 2023
Add: Subsidiary net liabilities
Charity funds at 31 March 2023
2022
Tangible fixed assets
Investments
Current assets
Current liabilities
Group funds at 31 March 2022
Add: Subsidiary net liabilities
Charity funds at 31 March 2022		 Restricted
funds
£
-
-
991,970
-
991,970
991,970
-
Restricted
funds
£
-
-
873,589
-
873,589
-
873,589		 Unrestricted
designated
funds
£
7,476,054
9,092,117
971,168
-
17,539,339
17,539,339
Unrestricted
designated
funds
£
7,731,285
7,573,557
-
-
15,304,842
-
15,304,842		 Unrestricted
operational
reserve
Total funds
£
£
-
7,476,054
-
9,092,117
7,349,134
9,312,272
(700,070)
(700,070)
6,649,064
25,180,373
83,221
83,221
6,732,285
25,263,594
Unrestricted
operational
reserve
Total funds
£
£
-
7,731,285
1,721,483
9,295,040
8,899,795
9,773,384
(1,283,466)
(1,283,466)
9,337,812
25,516,243
76,579
76,579
9,414,391
25,592,822

15. Other financial commitments

At 31 March 2023 the ageing of total minimum lease payments was as follows:

Operating leases due:
Within one year
Between 2-5 years
Total		 Property
Leases
£
2,832
-
2,832		 Other
£
1,092
1,277
2,369
2023		 Total
£
3,924
1,277
5,201		 Property
Leases
£
2,832
-
2,832		 Other
Total
£
£
8,116
10,948
2,772
2,772
10,888
13,720
2022

32

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. Subsidiary undertaking

The charity has a wholly owned subsidiary which is incorporated in the UK, Hearing Dogs for Deaf People (Trading) Limited (Company number 02786252). The subsidiary operates from premises owned by the charity, its principal address being The Grange, Wycombe Road, Saunderton, Princes Risborough, Buckinghamshire, HP27 9NS, from which it operates a restaurant and café and sells promotional items. It donates its taxable profits to the charity.

Trading and profit and loss account
Turnover
Cost of sales
Gross profit
Grants receivable
Administrative expenses
Operating loss
Interest payable
(Loss) / Profit on ordinary activities
Retained losses brought forward
Retained losses carried forward
Balance sheet
Total assets
Total liabilities
Net liabilities
Share capital
Retained losses
Capital and reserves		 2023
2022
£
£
761,645
753,746
(567,788)
(542,905)
193,857
210,841
-
24,000
(194,388)
(207,827)
(531)
27,014
(6,111)
(3,053)
(6,642)
23,961
(76,581)
(100,542)
(83,223)
(76,581)
59,002
72,128
(142,223)
(148,707)
(83,221)
(76,579)
2
2
(83,223)
(76,581)
(83,221)
(76,579)

33

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Movement in funds

Restricted funds:
Hearing Dogs:
By project / activity
Physical Facility
Hearing Dogs for Deaf Children
Purchase & Training of HD
Hearing Dogs Training
Partnerships
Training, partnership and salaries
Puppy Socialising Areas
Operations Development Team
Upgrade: The Grange Farmhouse
Upgrade: Kennels
Lifetime Partnership Support
Training and / or name a dog
Elderly - Scotland
Other projects less than £10,000
By location
Bedfordshire
Buckinghamshire
Devon & Cornwall
Dorset
Gloucestershire
Greater Manchester
Hampshire & West Sussex
Jersey
Kent
Leicestershire
Merseyside
Oxfordshire and Hertfordshire
Scotland
York
Yorkshire
Amounts £5,000 or less
Hearing Dogs Total
Hearing Link:
By project / activity
Hearing Aid Liaison Outreach
Hearing Link
Website Development
By location
Northern Ireland
Hearing Link Total
Total restricted		 2022
£
290,000
-
-
-
-
25,000
-
300,000
10,000
150,000
40,000
-
8,424
-
-
-
-
-
-
-
9,418
-
-
-
-
-
-
6,673
-
839,515
8,498
-
25,576
-
34,074
873,589		 Total Income
£
-
68,667
65,000
1,390,534
586,789
277,955
-
46,000
-
-
-
50,000
10,000
15,886
14,000
13,000
52,451
5,500
5,000
9,000
5,500
-
6,000
5,500
7,000
5,500
9,710
9,000
2,500
69,792
2,730,284
-
75,883
66,633
142,516
2,872,800		 Total
Expenditure
£
-
(68,667)
-
(1,390,534)
(586,789)
(46,327)
(25,000)
(46,000)
-
-
(125,000)
(37,500)
(10,000)
(15,886)
(14,000)
(13,000)
(52,451)
(5,500)
(5,000)
(9,000)
(5,500)
-
(6,000)
(5,500)
(7,000)
(5,500)
(9,710)
(9,000)
(9,173)
(69,792)
(2,577,829)
(8,498)
(75,883)
(25,576)
(66,633)
(176,590)
(2,754,419)		 Investment
Gains /
Transfers
2023
£
£
290,000
-
65,000
-
-
231,628
-
-
300,000
10,000
25,000
52,500
-
8,424
-
-
-
-
-
-
-
9,418
-
-
-
-
-
-
-
-
-
991,970
-
-
-
-
-
-
-
991,970

34

HEARING DOGS FOR DEAF PEOPLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Movement in funds (continued)

Unrestricted funds:
Designated funds:
Freehold - BWC
Freehold - The Grange
Other functional fixed assets
Sub-total fixed assets
Capital commitments
Total fixed assets
Partnership commitments
Property development fund
Coronavirus Recovery Fund
Total designated
Operational reserve
Total unrestricted
Total funds		 2022
£
2,050,515
5,163,560
517,210
7,731,285
-
7,731,285
5,868,982
-
1,704,575
15,304,842
9,337,812
24,642,654
25,516,243		 Total Income
£
-
-
-
-
-
-
-
-
9,217,684
9,217,684
12,090,484		 Total
Expenditure
£
(56,578)
(136,698)
(182,792)
(376,068)
-
(376,068)
-
(425,000)
(801,068)
(8,636,590)
(9,437,658)
(12,192,077)		 Investment
Gains /
Transfers
2023
£
£
14,356
2,008,293
18,494
5,045,356
87,987
422,405
120,837
7,476,054
119,917
119,917
240,754
7,595,971
574,386
6,443,368
3,500,000
3,500,000
(1,279,575)
-
3,035,565
17,539,339
(3,269,842)
6,649,064
(234,277)
24,188,403
(234,277)
25,180,373

Restricted funds are those where the donor has imposed restrictions on the use of the funds.

The charity operates dog and puppy sponsorships schemes to sponsor the costs of partnerships between deaf people and hearing dogs. Typically amounts between £5,000 and £10,000 are received as sponsorship donations. Puppy sponsorship donations are mostly given on a regular monthly basis. Costs associated with the selection, socialising, training, welfare, placement and aftercare of dogs are charged to these sponsorship funds as appropriate.

The charity also has a number of restricted funds where donors have specified the specific project/activity or geographical area for which the funds are to be used.

Restricted funds are shown in two parts; those relating to Hearing Dogs and those relating to Hearing Link.

Designated funds of £7,476,054 (2022: £7,731,285) have been set aside from the group’s unrestricted funds by the Directors for the functional fixed assets required to carry out the principal activities of the charity. No contractual commitments existed at 31 March 2023 (2022: £Nil) . An amount of £120,837 (2022: £594,079) was transferred from general funds to designated funds in respect of fixed assets during the year.

The Directors have also designated the following funds for specific use:

An amount to cover the charity’s future long-term commitments relating to its existing hearing dog partnerships. At 31 March 2023 this amount was calculated at £6,443,368 ( 2022: £5,868,982 ) representing the projected costs over a 10-year period. An amount of £574,386 (2022: £489,106) was transferred from general funds to designated funds in respect of future partnership liabilities during the year.

A Coronavirus Recovery Fund of £2,000,000 was created in 2020/21 to provide for the consequences of the pandemic. In the lead up to the end of the current accounting period it was felt that it was unlikely that any further expenditure would be required that was directly related to the Covid-19 outbreak. As such the fund was returned to undesignated funds.

The operating environment has changed since the Coronavirus pandemic and it is planned to redevelop parts of both sites that are no longer used. A designated fund of £3.5m has been established to support the plans.

35

HEARING DOGS FOR DEAF PEOPLE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

17. Movement in funds (continued)

Restricted funds:
Hearing Dogs:
By project / activity
Physical Facility
Hearing Dogs for Deaf Children
Breeding and Genetics Centre
Hearing Dogs Training
Puppy Socialising Areas
Assistance Dogs Access
Community Fundraising Officer
Dog Welfare
Upgrade: Training Flats and Fencing
Upgrade: The Grange Farmhouse
Upgrade: The Stables
Upgrade: Kennels
Lifetime Partnership Support
Training and / or name a dog
Pawvilian
Other projects less than £10,000
By location
Buckinghamshire
Devon & Cornwall
Dundee
Greater Manchester
Hampshire
Jersey
Leicestershire
Merseyside
Nottinghamshire
Oxfordshire
Scotland
South East England
Wales
Yorkshire
Amounts £5,000 or less
Hearing Dogs Total
Hearing Link:
By project / activity
Hearing Aid Liaison Outreach
Hearing Link
Website Development
By location
Northern Ireland
Scotland
Hearing Link Total
Total restricted		 2021
£
290,000
-
19,983
-
212,000
45,000
11,934
-
175,280
300,000
275,000
4,793
-
-
2,681
-
-
10,918
-
-
-
-
-
-
2,127
1,349,716
8,498
25,576
4,950
1,141
40,165
1,389,881		 Total Income
£
40,888
92,834
1,387,097
50,000
8,421
101,897
10,000
65,000
12,500
16,631
12,700
28,500
4,000
22,500
5,750
6,250
17,887
8,500
6,000
9,150
15,000
12,248
33,941
50,500
2,018,194
89,274
9,413
19,190
117,877
2,136,071		 Total
Expenditure
£
(40,888)
(112,817)
(1,387,097)
(237,000)
(45,000)
(20,355)
(125,000)
(25,000)
(13,000)
(12,700)
(28,500)
(6,681)
(22,500)
(5,750)
(1,500)
(6,250)
(17,887)
(8,500)
(6,000)
(9,150)
(15,000)
(12,248)
(27,268)
(52,627)
(2,238,718)
(89,274)
(14,363)
(20,331)
(123,968)
(2,362,686)		 Investment
Gains /
Transfers
2022
£
£
290,000
-
-
-
25,000
-
-
-
(175,280)
-
300,000
(101,897)
-
10,000
150,000
40,000
(12,500)
-
8,424
-
-
-
-
-
9,418
-
-
-
-
-
-
-
6,673
-
(289,677)
839,515
8,498
-
25,576
-
-
-
34,074
(289,677)
873,589

36

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Movement in funds (continued)

Unrestricted funds:
Designated funds:
Freehold - BWC
Freehold - The Grange
Other functional fixed assets
Sub-total fixed assets
Capital commitments
Total fixed assets
Partnership commitments
Coronavirus Recovery Fund
Total designated
Operational reserve
Total unrestricted
Total funds		 2021
£
2,107,093
4,970,629
424,601
7,502,323
243,941
7,746,264
6,057,065
2,000,000
15,803,329
5,231,513
21,034,842
22,424,723		 Total Income
£
-
-
-
-
-
-
-
-
-
11,600,523
11,600,523
13,736,594		 Total
Expenditure
£
(56,578)
(133,569)
(174,970)
(365,117)
(243,941)
(609,058)
(677,189)
(295,425)
(1,581,672)
(7,284,023)
(8,865,695)
(11,228,381)		 Investment
Gains /
Transfers
2022
£
£
-
2,050,515
326,500
5,163,560
267,579
517,210
594,079
7,731,285
-
-
594,079
7,731,285
489,106
5,868,982
-
1,704,575
1,083,185
15,304,842
(210,201)
9,337,812
872,984
24,642,654
583,307
25,516,243

18a. Reconciliation of net income to net cash flow from operating activities

18b.
Analysis of cash and cash equivalents
Net (expenditure) / income
Adjustments for:
Depreciation charges
Losses / (Gains) on investments
Dividends and interest from investments
(Profit)/loss on sale of tangible fixed assets
(Increase) in stock
Decrease / (Increase) in debtors
(Decrease) / increase in creditors
Net cash provided by operating activities
Cash awaiting investment
Short term deposits
Cash at bank and in hand		 2023
£
(335,870)
376,068
234,277
(271,999)
(6,550)
(7,152)
758,656
(583,396)
164,034
2023
£
262,367
8,487,014
18,431
8,767,812		 2022
£
3,091,520
365,117
(583,307)
(70,479)
(1,155)
(2,591)
(171,563)
408,523
3,036,065
2022
£
187,562
8,298,852
(83,799)
8,402,615

18b. Analysis of cash and cash equivalents

37

HEARING DOGS FOR DEAF PEOPLE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18c. Movement in net funds

Short term deposits
Cash at bank and in hand
Cash held awaiting investment
Total net cash		 At 1 April
2022
Cash flow
At 31 March
2023
£
£
£
8,298,852
188,162
8,487,014
(83,799)
102,230
18,431
187,562
74,805
262,367
8,402,615
365,197
8,767,812

19. Capital commitments

Contracted capital commitments for the group and the charity 2023
£
£
119,917		 2022
£
£
-

There were capital commitments of £119,917 relating to the purchase of four motor vehicles as at 31 March 2023 (2022: £Nil).

20. Related parties

In the year to 31 March 2023 the following transactions took place between the charity and its wholly owned trading subsidiary:

a. Management charges from the charity to the trading subsidiary £60,000 ( 2022: £60,000 ). b. Interest payable by the trading subsidiary to the charity £6,111 ( 2022: £3,053 ).

At 31 March 2023 the amount owed by the trading subsidiary to the charity amounted to £42,626 ( 2022: £18,159 owed by the charity to the trading company ).

In addition, the charity has loaned the trading subsidiary £85,010 which has no fixed repayment date, but which is secured on its assets, attracting interest at 2% over bank base rate.

Mr P Davis (charity trustee) and Mr C Hedley (charity Company Secretary) are directors of the charity’s wholly owned trading subsidiary.

Jane Tommey’s husband Paul Tommey is employed by the charity as a dog trainer under a standard contract of employment and is paid at the same rate as other dog trainers. Jane Tommey, Director of Operations, was not involved in the recruitment process and the appointment was approved by the Trustees.

£496 ( 2022: £264 ) of donations from Trustees were received during the year. £350 of books written by trustee Bruce Fogle were sold through the gift shop in the period.

21. Contingent assets – Legacies

At the balance sheet date, the charity had received notification that it is a beneficiary of a number of legacies. It is not possible to quantify these accurately or to ascertain the date on which the charity will receive them. The estimated value of the legacies notified as at 31 March 2023 was £6.1 million ( 2022: £5.0 million) and is not included in the accounts .

38