**Charity Registration No. 506791** 

**Company Registration No. 01323762 (England and Wales)** 

## **DEAFNESS SUPPORT NETWORK** 

# **ANNUAL REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 30 MARCH 2021** 



## **DEAFNESS SUPPORT NETWORK** 

## **CONTENTS** 

||**Page**|
|---|---|
|Trustees' report|1 - 19|
|Independent auditor's report|20 - 22|
|Statement of financial activities|23 - 24|
|Balance sheet|25 - 26|
|Statement of cash flows|27|
|Notes to the financial statements|28 - 45|





## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

The Council of management present their report and financial statements for the year ended 30 March 2021. 

## **Officers & Council of Management** 

Cheshire Deaf Society (operating as Deafness Support Network) is both a registered charity and a company limited by guarantee. The society is governed by trustees collectively known as the Council of Management. The members of the Council are both Directors of the company for the purposes of the Companies Act 2006 and charity trustees for the purposes of the Charities Act 2006. 

The members of Council are responsible for the policy and strategy of the Society. They have special responsibility to ensure that all aspects of the Society’s activities are properly conducted and carried out in full compliance with the Society’s Memorandum and Articles of Association, although day to day management is the responsibility of the Chief Executive Officer and senior staff. 

## **The Council of Management** 

The following were members of the Council of Management during the year: 

Chair Mr B Colman Vice Chair Mr D Horrocks Treasurer Mr L Glennon Secretary Held by Chief Executive Officer on appointment Members Mr P Morley Mr D Pane Mrs J Huntington Miss N Doyle Mr R Edwards Mr R Gould 

Mr S Crump was appointed as Chair on 6 September 2021 

Professional advisers 

|**Auditors**|**Bankers**|**Solicitors**|
|---|---|---|
|Mitten Clarke Audit Limited|National Westminster Bank Brabners||
|Chester House|PO Box 4|Horton House|
|Lloyd Drive|Bull Ring|Exchange Flags|
|Cheshire Oaks Business Park|Northwich|Liverpool|
|Ellesmere Port|Cheshire|L2 3YL|
|Cheshire|CW9 5BN||
|CH65 9HQ|||



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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **Report of the Council of Management** 

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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 1 January 2019)". 

The Society operates as Deafness Support Network serving the people of Cheshire and surrounding areas. Cheshire Deaf Society is a registered charity and a company limited by guarantee. 

The delivery of service is provided through a divisional structure, managed by divisional Executives: 

- Operations (managed by G Reeder) 

- Supported Living/D/deaf Community (managed by M Simpson) 

The Executives with responsibility for the divisions listed above are in turn managed by the Chief Executive Officer, who is the Accountable Officer. The Chief Executive Officer and Executives are supported by the Management Support Officer (K McCallum) and the Finance Support Officer (R Gerrard) and together they form the Executive Management Team (EMT).  The EMT meets formally as a group on a fortnightly basis to discuss strategic and operational issues with any associated risks. The EMT hold the responsibility for the realisation of strategy and direction sanctioned by the Council of Management. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

Services are currently offered from four local centres: 

- Northwich (Registered Office) 

- Chester 

- Macclesfield 

- Warrington (Training services only) 

Supported accommodation services are located at Stepping Stones, Lavender Lodge and two cluster homes, all based in Northwich. 

## **Governing Document** 

The organisation is a charitable company limited by guarantee and as such it does not have a share capital. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. These documents were recently amended to ensure they reflect current governance practice. The revised Memorandum of Association and Articles of Association were ratified by members and passed on 18 th November 2015. 

## **Recruitment and Appointment of Council of Management** 

The directors of the company are also charity trustees for the purposes of charity law and under the company’s articles are known as members of the Council of Management. Under the requirements of the Memorandum and Articles of Association the members of the Council are elected to serve for a period of three years, after which they must be reelected at the next Annual General Meeting of members. 

The Council seeks to ensure that the needs of D/deaf people are appropriately reflected through the diversity of the trustee body. To enhance the potential pool of trustees the charity continually seeks to identify D/deaf individuals, who would be willing to become members of the Council, through networking with other organisations in the local area and throughout the local D/deaf communities. 

Traditional business skills are also well represented on the Council. To maintain this broad skill mix, Council members are requested to provide an up-to-date list of their skills and in the event of particular skills being lost to retirements from the Council, new individuals are approached to offer themselves for election.  DSN will continue to actively look to enhance the skill base of the Council of Management through personal development of existing members and appointment of new trustees where appropriate. 

After the resignation of the Chief Executive Officer in December 2019, a robust and documented recruitment process was put in place to identify a new Chief Executive Officer for the charity, with the objective of making an appointment by late March/early April 2020. The COVID-19 virus situation adversely impacted this process. However, in June 2020, an experienced Chief Executive Officer from the charitable sector, M Lunney, was appointed with a starting date of October 2020. In March 2021, M Lunney left the organisation, and a new recruitment process planned. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **Trustee Induction and Training** 

Most trustees are familiar with the practical work of the charity, having already been involved with the charity, or the local D/deaf community, in one form or another. Additionally, new trustees are invited and encouraged to visit the charity’s various offices and meet with the Chief Executive Officer and Chair to familiarise themselves with the charity and the context within which it operates. 

A trustee induction pack is provided which includes the following information: 

- Trustee role description 

- The history of Deafness Support Network 

- Organisation charts 

- Annual review and service leaflets 

- The Essential Trustee (An introduction & what you need to know) 

- Statutory and Management Accounts 

- Memorandum and Articles of Association 

- Towards 2022 (Our 5-year plan & strategic document) 

- Minutes of previous Council and members’ meetings 

- Organisational risk register 

An annual trustee strategy session, held off site for one day each year, also addresses issues of trustee development and considers the strategic development of the organisation. 

## **The implications of COVID 19 related control measures** 

Due to the exceptional circumstances brought about by the COVID-19 virus in early 2020, measures have been taken by the UK Government with the intention of limiting the harm to individuals from the virus and preserving healthcare capacity for the severely ill. 

These measures involve a high degree of social disruption which has an impact on the delivery of and demand for the activities of charities, the availability of staff for work, and levels of illness across society which will affect the beneficiaries of charities. 

Prior to the Government lockdown on 23rd March 2020, the EMT had already begun preparing for the pandemic and its possible implications on service provision.  A full detailed business continuity plan was developed in a direct response to the pandemic, and this has been monitored weekly and refreshed when needed. 

The services, where possible, were adapted to meet the changing Government guidelines and to ensure that health and safety of both clients and staff were given priority.  In March 2021, plans to lift the lockdown were developed by the government and DSN’s plans were modified and will be implemented in line with the Government guidance for this. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **Risk Management** 

The Council of Management conducts a regular review of the major risks to which the charity is exposed. A risk register has been established and is updated regularly. Where appropriate, systems or procedures have been established to mitigate and manage the risks the charity faces - appropriate assurances being given to the officers and trustees by the EMT. 

EMT has dedicated a considerable amount of management and personal time to assessing and understanding the potential implications of COVID-19 on DSN’s governance, charity income, expenditure and commitments, and the value of DSN’s assets and liabilities.  Robust measures have been put in place, specific to the needs of DSN, to contain the impact of the COVID-19 virus. 

Significant external risks to funding have led to the development of a strategic plan that will allow for the diversification of funding and activities. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place, being managed and amended since March 2020 to reflect the potential impact of the COVID-19 virus, to ensure compliance with health and safety of staff, volunteers, clients, and visitors to the charity’s premises. These procedures are reviewed annually to ensure that they continue to meet the needs of the charity. 

EMT met weekly to discuss operational issues and ensure that associated risks are identified, managed, and mitigated in a pro-active manner. This approach to risk management is further underpinned and informed by an annual review of DSN’s policies and by DSN’s on-going Social Accounting programme, which ensures a more rounded approach to stakeholder involvement in the identification and management of risk. 

DSN continually works to improve its reporting framework to enhance strong governance.  The reporting dashboard for trustees and senior managers continues to be revised as appropriate and has proved to be of significant benefit to trustees and senior managers in monitoring operational performance.  This is a live process which will continue to develop to ensure it best meets business needs. 

## **Organisational Structure** 

Under its constitution, the charity has a Council of Management of more than 3 members who meet quarterly and are responsible for the strategic direction and policy of the charity.  As of 1 April 2020, the Council had 7 members from a variety of professional backgrounds relevant to the work of the charity. 

The Company Secretary, who is also the Chief Executive Officer, sits on the Council but has no voting rights. As of 31 March 2021, there were a total of 9 members (1 member resigned and 3 new members were recruited). 

A scheme of delegation is in place and day to day responsibility for the provision of the service rests with the Chief Executive Officer, along with the EMT. The Chief Executive Officer is responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. 

The EMT has responsibility for the day-to-day operational management of the charity, individual supervision of the staff and ensuring staff continue to develop their skills and working practices in line with good practice. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **Related Parties** 

In so far as it is complementary to the charity’s objectives, the charity is guided by both local and national policy. Services are delivered in partnership and attract funding from various organisations that include: 

- Children’s and Adult Social Care Service (Sensory Services), through contracts with Cheshire East Council, Cheshire West & Chester Council, Flintshire County Council and Wrexham. 

- Supported Living contracts, through Cheshire West & Chester Council and social care teams in numerous local authorities. 

_DSN has a wholly owned subsidiary company, DSN Cymru, which is currently dormant._ 

## **Objectives and Activities** 

The object of the Charity as stated in our Memorandum and Articles of Association is the relief of D/deaf persons in Cheshire and surrounding areas.  DSN deliver this by providing the best choice and quality of services DSN can, as efficiently as DSN can, for as many people as possible, within the resources available to us. 

DSN reviews its aims and objectives each year, seeking to deliver activities and outcomes that achieve them. This report will highlight achievements against those objectives and describe some of the activities carried out. DSN have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning for our future activities. The charity seeks to meet its objectives through working to a set of agreed values and priorities and has published a five-year plan. 

## **Towards 2022: Our five-year plan 2017-2022** 

DSN’s vision is a world where D/deaf people can communicate effectively and live healthy, independent, and fulfilling lives. “Towards 2022” is the guiding strategy for DSN in the period 2017-22 and has been developed with full input from service users, staff, commissioners, trustees, and other stakeholders.  It identifies clear strategic priorities and signals our vision and values as DSN move forward.  “Towards 2022” identifies 5 strategic themes that provide a focus for DSN over this timeframe. These themes are: 

- Providing real access to opportunities and support to communicate effectively and enhance independence 

- Leading healthier lives with improved social and emotional wellbeing 

- Promoting positive actions to combat the threat of social isolation and loneliness for all 

- Enabling people and communities to effectively shape and influence the services and support they need 

- Ensuring DSN remains financially resilient, maximising available resources to deliver our strategic aims and vision 

Since its publication in April 2017, the “Towards 2022” document has been widely shared with our users and stakeholders.  DSN continue to receive positive feedback for DSN’s direction of travel and commitment to continuous improvement.  DSN believe that this document continued to prepare the organisation for the increasingly challenging economic environment in which DSN and the wider social care and charitable sector operate. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **Achievements and Performance** 

Our main activities during the year are described below. Traditionally all our activities have focused upon providing services and support to D/deaf people.  This focus has further expanded into the provision of full sensory loss services (D/deaf and visually impaired) in Cheshire East and Flintshire, enabling ever more citizens to take a full and active role in wider society and to further our charitable purposes for the public benefit. 

DSN has been broadly successful in retaining contracts and securing alternative investment streams to further develop services for the D/deaf community of Cheshire and surrounding areas.  This success is against a background of many similar organisations facing financial conditions that have threatened their on-going existence.  DSN has been able to respond to real challenges by demonstrating the quality of the services DSN provide and the value DSN deliver through efficient and effective deployment of resources.  DSN will continue to focus on the pillars of Quality and Value, Person Centred Care, and Innovation in the years ahead. 

DSN has successfully maintained the core of its established services across Cheshire while expanding its reach and service provision into north Wales.  DSN continue to deliver high quality services valued by users and commissioners alike.  The economic climate, notwithstanding the COVID-19 virus, has been extremely challenging.  DSN has however, maintained, and in some cases enhanced, its service delivery for sensory communities throughout the year. 

DSN focuses continually on introducing operational efficiencies by re-designing service delivery and enhancing its partnerships with commissioners. EMT works hard at fostering ever-improving relationships with key commissioners and funders to ensure DSN is in the strongest possible position for upcoming and longer-term contract negotiations. 

To avoid over-reliance on limited funding pools, DSN look continuously at opportunities to develop alternative income streams.  This strategy allows DSN to be better equipped to make informed assessments of all funding opportunities and develop a shared understanding of our priorities and objectives and how they will be achieved. It also ensures DSN allocate our limited resources to opportunities that will provide the most beneficial outcome for DSN and its service users.  Identification of suitable opportunities will consider our key skills and track record, emerging government policy and available resources (both internal and external).  DSN’s fundraising efforts have been focused on enhancing our community engagement in addition to the pursuit of grants and trust funding.  Regular strategy reviews ensure these efforts remain fit for purpose. 

Every year, DSN publishes and distributes to all stakeholders an annual Achievement Report (“Insight”).  This is aligned to an annual action plan which highlights several key areas in which the charity wishes to make solid progress in the year ahead.  The action plan is developed through trustee engagement and through consultation with stakeholders and is in line with the overall strategic themes and priorities as laid out in our 5-year plan. 

DSN formally reviews all policies and procedures annually and this was completed during this financial year.  This exercise considers changes in legislation, regulations, and developments in good practice.  EMT undertakes this process and changes made to any policies and procedures are highlighted to and ratified at board level by all trustees and shared with all staff at all locations. 

In addition to information contained in this document under divisional updates, there has been considerable progress in the following areas following on from FY2019/2020: 

## **• Improved Infrastructure** 

The ongoing advances in technology, increased reporting measures, the ability to store employee personal details in line with GDPR and provision of self-service functionality, alongside cost savings, all made the decision to migrate to new systems the most viable solution to ensure the longer-term performance of the HR and finance functions.  The introduction of a separate HR solution will allow greater flexibility in employee and manager’s ability to request & approve leave via mobile/tablet devices. Emergency contact information will be accessible to managers in the event of any accidents/ill health at work where next of kin should be contacted. Details will also be available to access in the event of disaster recovery/business continuity processes. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

Improved reporting supported the production of monthly & quarterly analysis for EMT & provided significant time savings for both the Management Support Officer & Finance Support Officer, by replacing manual tasks with automated ones. 

## **• Campaign for more accessible BSL Information** 

DSN has engaged fully with Clinical Commissioning Groups (CCGs) and health forums (including Healthwatch and health & wellbeing boards) and contributed strongly to many public stakeholder events, ensuring appropriate access to processes for BSL users.  This initiative has also ensured that local authorities have taken consideration of BSL when redesigning services. 

## **• Social Accounting** 

DSN is proud of the services and support that DSN provide and DSN remain committed to ongoing continual improvements to make sure that our service users experience the maximum possible benefits. Our Social Accounting programme continues to help us to examine our performance and further develop our services. By looking at what DSN do and collecting feedback from the people with whom DSN work, DSN are able to see where things can be improved. Collecting feedback from the people who receive the services means that they get the opportunity to be involved in the future planning of the services and how they are run. 

In these challenging financial times, and to help funders decide to invest in our services, it is important that DSN evidence what DSN are doing and how DSN deliver value for money.  By looking at the services DSN provide and measuring the impact of those services on peoples’ lives, DSN can demonstrate the value of the work DSN does to commissioners, funders, and the communities DSN serve.  This commitment to Social Accounting helps us to raise the profile of DSN and increases awareness of the high-quality help and support that DSN consistently deliver. 

DSN collect information in the form of facts and figures, e.g., how many people DSN has supported, how many pieces of equipment DSN have supplied, how many training courses DSN has delivered, etc., and feedback from service users and other stakeholders using questionnaires, meetings, and capturing comments, compliments, complaints, etc. 

## **• Corporate Social Responsibility (CSR)** 

DSN is committed to delivering excellent services for our community, with an emphasis on meeting evolving user needs and enhanced innovation. DSN aim to deliver this commitment whilst ensuring that impact on the environment is minimised and that all activities are conducted safely by well-trained and qualified employees. 

Overall responsibility for developing and reviewing the effectiveness of corporate policies on social, ethical, and environmental matters lies with the DSN Executive Management Team, as delegated by the Board of trustees. These policies are communicated and applied across all departments to ensure compliance with the policies. DSN’s policies and procedures, including those relating to social, environmental, health and safety, employment, and ethical matters, are communicated to all staff via the induction training, on-going personal developmental training, and internal communications. All policies and procedures are reviewed annually, and updates are communicated to staff. 

Whilst as an organisation our major focus is on meeting the needs of D/deaf people, their families and carers in Cheshire and surrounding areas, DSN has recently broadened its reach to provide a dual sensory service to include the blind and partially sighted in some areas service.  DSN continually strives to engage and interact with the wider community and to have a voice on wider issues of social importance. 

As a result of this outward facing attitude, DSN are delighted to have worked in partnership with other charitable and public benefit organisations to raise awareness of over-arching social issues including the combatting of social isolation and loneliness, awareness raising and the fight against hate crime (DSN offices act as a safe space, publicised in the local area for the reporting of hate crime) and the development of youth services. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **Operations Division** 

## **Social Care** 

This report covers the period 1st April 2020 to 31st March 2021 when the country went into full lockdown due to COVID-19.  DSN is pleased to report continued provision of our social care contracts with the four local authorities.  DSN are currently in contract with Cheshire West and Chester (CWaC), Cheshire East Council (CEC), Flintshire County Council (FCC) and Wrexham County Borough Council (WCBC). 

DSN continue to provide the additional 18-hour per week contract in Wrexham County Borough Council, providing an adult service for people with a hearing loss (Project 65) which means effectively DSN now have a full-time contract with Wrexham County Borough Council. Project 65 was given a further year to deliver its service due COVID-19 lockdown preventing us providing this service. This will now end on 31st March 2022. 

DSN social care staff continued to work throughout the pandemic delivering these services. DSN continue to effectively monitor our service delivery and adhere to all contractual monitoring requirements.  In addition to this DSN utilise our Social Accounting model to capture service user experience and satisfaction, enabling us to use the qualitative and quantitative data to improve customer experience and deliver sustainable improvements. 

The model also allows us to inform the commissioners in the local authorities of our success measures, including outputs, outcomes, and impact for users. 

## **Health and Awareness projects** 

These projects aim to improve understanding of wider health and well-being issues from a Deaf perspective.  Initiatives included the HAnD (Health Awareness and D/deafness) project and DSN are delighted to have secured an additional year of funding from NHS Cheshire  CCG for 2020/21.  The project delivers workshops that are within the original footprint of Cheshire West CCG.  Their “Being Well” initiative and key priorities around long-term conditions: Diabetes, Asthma/COPD, Cardiology/CVD and Cancers etc. remain the same. DSN have been unsuccessful once again in getting Public Health funding, but DSN will continue to argue for this as DSN feel strongly that such services across Cheshire will provide further health benefits for the communities DSN serve.  DSN are active participants of The Sector Leadership Group who collectively are involved in the development of the new Care Communities and the Developing Connected Communities programme. DSN continue to be the voice for D/deaf communities on all such matters. 

Health inequalities continue to be experienced by D/deaf people such as making their own GP appointments, accessing pharmacy services, and arriving for a hospital appointment to find an interpreter has not been booked. DSN will continue to address barriers to service provision whilst promoting new and innovative ways of Health education. 

Over the years the number of available BSL signed health videos has increased substantially and these are promoted through our Workshops however, D/deaf people have told us that they value the opportunity of question-and-answer time directly with a health professional. DSN will explore using webinar developments with a ‘live’ interpreter at our future Workshops, if successful it will hopefully increase access to health professionals and improve the overall health & wellbeing of D/deaf people. 

DSN continued to deliver health messages and support people in different ways throughout the duration of the lockdown and continued to spread the word about mental health, supporting staff and service users alike.  DSN believe that there is no health without mental health. 

## **Positive Hearing (DSN Retail Ltd)** 

Positive Hearing continues to meet requests for fitting commercial loop systems.  The relationship however between Positive Hearing and the Positive Hearing Limited Liability Partnership continues to grow. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

As with all commercial service provision, Positive Hearing Limited Liability Partnership audiology had to close its doors due to the pandemic. Both Macclesfield and Northwich clinics were hit hard but once Government guidelines permitted the Northwich clinic to re-open its doors for business, people felt safe to return to the service.  Service provision has begun to recover and despite the lockdown and all that entailed the Positive Hearing Limited Liability Partnership was able to “gift” £5,000.00 to DSN in this Financial Year. 

## **Fundraising** 

The team continued to seek funds throughout the pandemic which would allow for extra resources to meet the needs of our most vulnerable service users.  For the period 1st April 2020-31st March 2021 a total of £8,933 was raised, utilising “pandemic specific” funding streams. No community fundraising initiatives were possible during this time. 

Our previously excellent links with stores such as Waitrose, Tesco and Asda naturally found it difficult during the pandemic to continue to support us as they had in previous years. However, DSN expect to rekindle these relationships following the easing of lockdown and when they reintroduce their Community Matters  schemes. 

## **D/deafness & Dementia** 

DSN’s research project started in October 2014 with Dr J Littlejohn starting a 2-year part time post-doctoral fellowship at the University of Manchester.  The next phase of our research has extended the fellowship at the University of Manchester for a further two years. Commencing 1st March 2020, just as the pandemic hit the UK, the project would have investigated the auditory biomarkers of Alzheimer’s disease with the aim to understand who with hearing loss is at a greater risk of developing dementia. This would have allowed us to understand the mechanism of the relationship between hearing loss and dementia. The pandemic meant the research had to be re-defined as testing with individuals wasn’t permissible. Now that lockdown restrictions are slowly lifting, DSN expects the research to re-commence. 

Interest in the research continues with Jenna being in great demand to speak about this issue at local, national, and international venues/conferences, which demonstrates not only the importance of this research but also that DSN is at the very heart of this pioneering research, whilst at the same time being recognised at the highest level. 

DSN’s D/deafness and dementia cafés “You, Me & Tea”, were particularly affected as groups of people were unable to meet. The COVID-19 pandemic meant DSN had to cancel face-to-face group meetings and so DSN adapted our service provision to include postal activity/wellbeing packs. These activity/wellbeing packs were very much welcomed by the recipients, most reporting that they helped to keep them occupied whilst unable to leave their home. Research has shown that social groups help to reduce social isolation, so whilst DSN were unable to provide this service DSN hoped the activity/wellbeing packs went some way towards supporting our service users in reducing loneliness, mental health conditions and early mortality. 

## **I’m Hear!** 

Following our successful bid for a further 3 years of funding, the I’m Hear! Project, funded by BBC Children in Need is now in Year 6, and the project end date has been extended to March 2021. 

The I’m Hear project offers support, tailored to meet the communication needs of each individual child and their family.  Bespoke resources are used to improve communication; use of different coping strategies; how to include a D/ deaf child in family activities; ways to avoid conflict with siblings; signposting to support services; identifying social activities or clubs in which a child is interested and wants to participate.  Children aged 8+ are signposted to DSN’s “Youth Vibe”, where they can meet and interact with other D/deaf children and siblings.  Since the project started on 1st October 2014, DSN has supported over 200 D/deaf children/young people, aged from 0 to 18 years, and their families across Cheshire East, Cheshire West and Chester, Halton, Warrington, Liverpool, and the Wirral. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

Monthly group activities are well established, as well as three larger ‘Family Events’ per year.  The weekly football activity for D/deaf children and siblings continues to grow and there are now 15 active members of the team. These group activities have also enabled parents to meet other parents of D/deaf children, to practice communication and share experiences. 

In line with government advice re: COVID-19, home visits ceased from 23rd March 2020.  To enable us to continue some support to D/deaf children, the project was adapted to a remote service and parents were notified by email, including details of how support could be provided.  The plan was approved by the I’m Hear! project funder, BBC Children in Need. 

During this time, DSN have successfully managed to keep children (and families) included in support, and offered remote communication sessions though e.g., Skype, Zoom, WhatsApp video, as well as emailing and/or posting bespoke resources. 

During June 2020, an application for booster funding from BBC Children in Need for the purchase of 10 tablets was successful.  This will encourage children and parents to stay connected with the project and other children. 

Due to COVID-19, BBC Children in Need have temporarily suspended applications for main grants.  However, as soon as this re-opens, DSN will be submitting a bid to continue the Cheshire-based I’m Hear! project from March 2021, as well as an application for a similar project for north Wales. 

## **Volunteer Service** 

Our volunteers continue to play an important role within DSN and are an integral part of DSN’s service delivery and DSN’s trustees recognise and value the importance of this strong and vibrant volunteer resource and have committed to ongoing future funding to further embed the benefits delivered by effective volunteers. 

DSN continues to work hard, engaging in the voluntary sector to recruit new volunteers who are interested in working in sensory services.  It is important to recruit volunteers from all sectors within the community to ensure DSN have a diverse mix of ages and experiences to our work.  It is also important to work closely with our staff to find new and varied roles for our volunteers to enhance their volunteering experience whilst they are with us, that our volunteers feel supported and adequately skilled when delivering services on our behalf.  The pandemic meant a lot of our volunteer support services were put on hold.  Some of our volunteers needed to self-isolate and DSN decided to restrict face-toface interaction with our services users to keep them safe from the virus.  Emergency support continued to be offered and those volunteers who were able to support us do so valiantly. 

## **Youth Service - Youth Vibe** 

Deafness Support Network’s Youth Service, Youth Vibe, provides opportunities and activities for young people aged between 8 to 19 years and linked to D/deafness: D/deaf; hearing impaired; friends and siblings of/or Children of D/deaf Adults (CODA).  DSN also support young D/deaf adults up to 25 years, taking them on as young volunteers, and supporting them to achieve their Duke of Edinburgh’s Award.  Our current Youth Vibe delivers: 

- Accessible youth activities for D/deaf young people 8-19 years 

- Young Leaders programme for young people aged 13-25 years 

Youth Vibe adapted magnificently during the pandemic moving all support “on-line” with 2 weekly virtual youth club meetings (via Zoom) and has never been busier.  Once the Government Covid guidelines permitted, a new hybrid of delivery began with smaller face-to-face meetings and the continuation on virtual meeting on Zoom. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

Our membership database now includes children and young people from Cheshire and surrounding areas with 20-30 attending each week. This figure includes young people that are D/deaf or hearing impaired, Children of D/deaf Adults (CODA) and hearing friends and siblings. There is a variety of communication methods used amongst this cohort of young people, from BSL, speech and sign, signed supported English and speech. 

Our young leaders and Duke of Edinburgh’s programme continued although the pandemic did curtail a lot of the usual outdoor activities. Many of the young people are working towards their Bronze or Silver Award. 

Chester and Crewe Youth Vibe Youth clubs and holiday activities have all recommenced to some extent following Government guidelines around COVID-19 and DSN have also restarted our Young Leaders programme. The new Youth Vibe Matters forum in both Chester and Crewe will be extremely valuable for our young leaders to have their say and perhaps review what is important to them in the new society they live in after lockdown. 

## **Supported Living/D/deaf Community Division** 

## **Supported Living Service** 

Deafness Support Network’s Supported Living Service continues to provide a stable and happy home environment whilst ensuring a high level of care and support services to our tenants.  DSN have four specially adapted properties in the Northwich area where our tenants are D/deaf or D/deaf blind and have a complex range of additional care/support needs and behaviours. 

This year has been particularly challenging within the Supported Living Services, with the constant threats the Corona Virus has brought to us all.   Our swift reaction in enforcing a complete lockdown on 12 th March 2020 and implementing a heightened infection control plan was the first move in our prevention strategy against COVID-19. 

A change in our Rota and staffing meant DSN worked to ensure no staff entered more than one home during their working shifts, this limited the risk of infection or cross infection, in the event of any one of us becoming infected by COVID 19. 

DSN have a dedicated and highly trained staff team, the majority of whom are themselves D/deaf.  All staff are required to achieve a high level of British Sign Language (BSL), and DSN also require them to be skilled in “total communication” techniques due to the complex requirements of our tenants and their unique communication needs. 

The current National care/support staff shortage is having an impact on our Supported Living Service.  DSN are continuing to look at new ways of recruiting new staff to work with us, in the meantime our staff are committed and dedicated continuing to provide a high-quality service. 

DSN prides itself in working with each individual tenant to achieve the highest possible level of independence, which varies immensely from one tenant to another.  Initially, DSN match the tenant with at least two keyworkers who will take ownership to ensure each tenant provides the opportunities and the support they required to enable, encourage, and assist where necessary to reach their full potential. 

DSN work to an Outcome Framework specifically designed with our tenants in mind, which enables us to map each tenant’s set goals, aspirations and achievements or, on occasion, to acknowledge where DSN have not moved forward with a specific target.  In these cases, DSN take time to review the task and look at alternative ways of working towards it, or to look at new opportunities if the goal seems unattainable.  The outcomes for each tenant vary considerably however, it is important each tenant grows, and develops and achieves some or all their goals, whilst DSN continue to research new opportunities and experiences to work towards and assist their further development.  This approach highlights DSN’s on-going commitment to delivering person centred care, tailored to individual needs, and valuing each of our tenant’s abilities and individualities. 

Those of our Tenants who participate in paid or voluntary work have adapted whilst in full lockdown and since returning to their positions with the necessary and appropriate restrictions in place. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

Two of our tenants are taking part in some form of supported employment, and staff are working with several Tenants who are showing an interest in working in a voluntary placement or part time employment appropriate to their desires and capabilities.  DSN have two tenants in paid part-time employment.   It is vitally important DSN continue to provide appropriate learning opportunities for our Tenants, and DSN do this in a variety of ways to meet the specific requirements of each Tenant and follow their Person-Centred Plan. 

DSN are still waiting for the impending changes to the Court of Protection (COP) and Deprivation of Liberty (DOLS): these are safeguards that were an amendment to the Mental Capacity Act 2005 which will be replaced by Liberty Protection Safeguards (LPS).   The Mental Capacity Act allows restraint and restrictions to be used (but only if they are in a person's best interests) and the Best Interest initiative will improve the processes necessary to ensure our practices are the best they can be and that our tenants are safe and happy.  Whilst these will bring new challenges for everyone concerned, DSN will continue to work closely with each Local Authority, families, and appropriate stakeholders to limit the impact on our tenants. 

Our services continue to be regularly inspected and monitored by Cheshire West and Chester Council, Cheshire West and Chester Learning Disability Framework and by the Care Quality Commission. DSN also work closely with other Local Authorities including Stockport, Rochdale, Bradford, Wirral, Warrington, Liverpool, Oxfordshire and Birmingham. 

## **Day Services** 

The Tannery is the focus of our Day Services provision, based within our HQ in Northwich.  The service is used by several our Supported Living Tenants but additionally by non-Supported Living Tenants who are D/deaf and D/deafblind with complex needs from across the region. 

Covid-19 impacted on our day service provision, due to the national lockdown external service users were unable to attend the Tannery, DSN adapted our service by providing zoom sessions and mailing out activity packs to complete either by themselves or on Zoom with the staff and tenants from the Supported Living Service. 

The Tannery remained open for the tenants from our four Supported Living homes, DSN agreed a different timetable with the tenants to ensure they attended the Tannery in the bubbles in which they live. 

DSN prides itself on providing a person-centred service, which is tailored to the needs of each service user.  DSN believe each person is best placed to lead their own personal learning and development plan.  This programme is developed by working with each person and getting to know their personalities, capabilities, and aspirations.  An essential part of a person’s development and learning is to encourage and enable them to reach their full potential.  Our staff group are trained and skilled to communicate with our Service Users to ensure this happens. 

DSN ensures that DSN adapt our communication methods to meet the individual needs of each person.  This method of total communication is central to the development and confidence building of each of our service users, leading to a further increase in their personal growth, independence, and development.   Staff and volunteers are qualified in British Sign Language (BSL) for those service users who use this method of communication and Objects of Reference, and Hands-On Sign Language are used with our D/deaf blind service users.   However due to the complex needs of some of our service users, it is important DSN use other appropriate methods to ensure that the services DSN provide are fully inclusive. Staff are always creative in finding ways of modifying and adapting their communication to meet the needs of each service user. 

Over the years DSN has welcomed several volunteers into the Day Service provision. This enables closer working on a one-to-one basis on specific projects or hobbies as directed by the service users themselves.   Many of these volunteers stay with us for years, giving up their precious leisure time and investing their time to improve the quality of lives for those at the Tannery.  DSN has also welcomed work experience/placement students into the Tannery, all of whom have gained so many skills during their placement and have commented how much they have enjoyed their time with us. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

DSN continue to look for new initiatives and opportunities to ensure that our service users have new challenges, goals, and aspirations.  DSN look at events where our service users can invite their families and friends to observe them doing their work and enjoy coffee and cake with them.  DSN has Christmas Fayres when the service users make Christmas crafts and sell them to the public. DSN have Easter bingo with plenty of chocolates as prizes, and DSN celebrates every calendared event such as Mother’s Day by making cards and plant pots with plants in them. DSN have a wonderful fancy-dress day when it is Halloween, and DSN give prizes for 1 st , 2 nd, and 3 rd .  All our events are well supported by donations from local businesses. 

DSN consistently takes steps to further develop the range and quality of the educational outdoor activities available to our service users.  DSN arrange days out and teach travel training on the bus across a wide geographical footprint, which has resulted in strong positive feedback from service users, families, and carers. 

## **Training Service** 

The training team has had to adapt to continue to provide excellent quality British Sign Language classes to our students.  When COVID hit all courses were suspended pending further guidance, when the lockdown continued it was necessary to look for alternative ways to provide our courses. DSN reverted to online tuition to enable the students to continue their learning and using their skills. 

DSN will continue to look at new opportunities to develop the service and encourage the wider community to engage in specialist training for their staff including British Sign Language and D/deaf Awareness Training. 

DSN are registered as a Centre of Excellence and all our training courses are accredited by Signature or the Institute of British Sign Language (iBSL) as appropriate.  This means that all successful participants receive a recognised certificate for their learning.  DSN also provide bespoke training for groups and individuals, so for example, DSN will deliver training for a workplace, organisation, schools, etc. which would be tailored to meet their specific requirements. 

DSN continue to provide the Intermediary course in BSL after identifying there were students who had completed their BSL Level 2 but did not feel ready to move to the next level. 

The iBSL Course continues to prove a great success with our learners.  This course is classroom based and a continuous learning model, which has suited those learners who struggle working in isolation.  Our Level 6 course has also proved to be a great success and something DSN will be continuing to provide and develop, although this is more challenging due to the level of linguistics content and the complex language skills that need to be taught.  The students that go on to achieve Level 6 will be able to enrol as trainees on the interpreter course.  Once registered, they can enlist as a ‘Trainee Interpreter’ and when they have completed the course and achieved the required marks, they will become a ‘Qualified Interpreter’.  DSN are proud of the achievements of our students on our diploma Level 6 interpreting course, which has proved to be a fantastic opportunity for those students who wish to have a career as a qualified interpreter. 

Whilst most of our work is in teaching BSL to Levels 1, 2, 3, 4, 6 and now Level 6 Diploma for the first time, DSN also run courses in: 

D/deaf Awareness D/deaf blind Awareness Lip Reading Hearing Aid Awareness Communication Tactics Taster courses in a range of other topics 

## **Communication Service** 

DSN provides communication support in various settings, generally an on-the-spot purchase basis.  However, DSN does have contracts with specific health providers to provide specialist communication support when required. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

This year has seen a decline in bookings because of the effects of COVID-19 when DSN was on lockdown and all nonurgent health appointments were cancelled. As DSN came out of lockdown the number of requests rocketed and DSN believes that this will continue to do so as the non-urgent regular appointments re-commence. 

DSN have been working with the NHS and local health services to ensure all D/deaf people had access to an interpreter whilst receiving their 1 st and 2 nd vaccines. 

All the interpreters registered with DSN undergo a strict qualification check and DSN regularly monitor their abilities to ensure DSN match the right person for each job they are assigned to. 

DSN employs Personal Communication Assistants through the Access to Work initiative.  They work with our D/deaf staff across Cheshire, enabling and empowering them to attain equality in their daily work. DSN also provide note takers and palantypists for meetings if required.  DSN also provide virtual interpreters as appropriate for meetings/supervision etc. 

## **Financial Review** 

## **Statement of Financial Activities - Income and expenditure (Page 23-24)** 

DSN have delivered a financial performance at operational level that is broadly in line with the results from the previous year. Looking at this performance in more detail, income has reduced from the previous year to £2,045,257 (2020: £2,239,834) due to the impact of Covid and the consequent revised service provision within the Social Care and Supported Living services.  Management of operating expenditure has continued this year and remains a focus of the Board.  However, given the revision in service provision due to Covid, expenditure has decreased from the previous year to £2,105,922 (2020: £2,447,087). 

The net effect of the above is an operational deficit of £60,665 (2020: deficit £207,253).  Following the gain on our investment portfolio of £501,629 (2020: loss of £89,674) and the deficit linked to our responsibilities under the Local Government Pension Scheme (“LGPS”) of £108,000 (2020: gain £385,000) our overall net surplus was £332,964 (2020: surplus £88,073). 

## **Balance Sheet (Page 25)** 

In terms of our Balance Sheet, the value of our investment has increased by £541,628 during the year. This figure excludes the investment income received in the year which is shown in the Income and Expenditure statement. This is due to strong performance in investment markets. 

As of December 2021, the investment was valued at £ 2,938,259 . 

At the 31 March 2021 DSN held cash balances of £144,055 (31 March 2020: £197,415).  Current assets cover current liabilities in a ratio of almost 2:1. The value of our liability under the LGPS increased by £108,000 to £558,000.  Our net assets on 31 March 2021 were £3,650,337 (2020: £3,317,373). 

DSN provide additional commentary on our investment policy, reserves and focus on financial sustainability later in the report. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **Internal Controls** 

To provide reasonable assurance against material misstatements, DSN have in place effective internal controls covering income, expenditure, and commitments. The appropriate management information is prepared and reviewed regularly by both the Executive Management Team and the Board of trustees. Through a combination of these internal controls, our strategic plan and annual budgets approved by the trustees, DSN seek to ensure that the charity is committed to a sustainable level of expenditure and retains adequate resources to continue as a going concern. 

The trustees along with the Executive Management Team continue to ensure that adequate consideration is given to the longer-term funding challenges that may arise when applying for or considering new or continuing service 

provision. Over the coming years DSN will aim to retain, expand, or secure our current service provision in line with our Mission Statement and in support of the charity’s beneficiaries . 

## **Investment Policy** 

The governing documents of the charity (Memorandum & Articles of Association) provide the trustees with the power to invest any monies not immediately required for any purpose, as considered appropriate. 

Having considered the options available and financial advice received, the trustees selected a long-term partner to provide guidance and professional services to facilitate the optimisation of returns, within agreed risk and ethical parameters.  The Fund is managed by  CCLA who are one of the UK's largest charity fund managers according to the latest Charity Finance Survey.  CCLA only manage investments for charities, religious  organisations, and the public sector and as such understand the particular needs and challenges facing charity investors. 

The charity’s current investment is held in a Common Investment Fund.  The Fund consists principally of equities however it does include other asset classes and is well diversified.  The Fund aims to provide a long-term total return comprising growth in capital and distributions. The approach taken by the Fund Manager should help to protect both capital and income from the effects of inflation. 

The trustees have decided to continue utilising some portion of the established Free Reserves to support the delivery of the adopted organisational strategy. 

The trustees, with regard to the liquidity requirements of the organisation and to the reserves policy, operate a policy of maintaining available funds necessary to meet day-to-day operational requirements in an interest-bearing deposit account. 

The performance of our investment has provided an invaluable contribution in recent years that helps to offset the impact of our commitments in respect of the Local Government Pension Scheme and supports funding in much needed services such as Youth provision, which may otherwise go unfunded. 

## **Reserves Policy** 

The trustees receive information from the Executive Management Team that forecasts the expected level of income for the next 12 months based on the best evidence that is reasonably available. They then assess associated opportunities, contingencies, and risks. The trustees have examined the charity’s reserves in the context of the key risks identified. 

In the light of current economic conditions and the likelihood of short to medium term reductions in the level or availability of funding, the trustees have elected to utilise a proportion of Free Reserves to develop and maintain the provision of existing services. Free Reserves are defined as Total Funds less Designated or Restricted Funds less amounts invested in tangible and intangible fixed assets. As per the Balance Sheet on P25, on 31 March 2021, free reserves were calculated to be £2,042,651  (2020: £1,445,184). 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

There is an expectation from the trustees that there will be deficits for the next few years, given their commitment to funding services that otherwise would not be funded. This emphasises the importance of the Free Reserves. It remains the trustees’ view that it is prudent to ensure that sufficient reserves are retained to provide financial flexibility. 

In summary, the society should hold reserves totalling at least £1,295,604 which will: 

- meet the cost of approximately 6 months’ operational expenditure (£1,074,931); 

- enable the charity to continue providing vital services and research (£120,673); 

- provide an element of security for any short-term volatility in the value of our investment due to market conditions and potential cash flow requirements (£100,000). 

DSN have maintained Designated Funds of £500,000 which have been set aside by trustees to cover any unanticipated costs should the Supporting Living Service be adversely impacted by any unexpected future funding changes. 

## **Outlook for Future Periods** 

Although our funding streams are consistent, DSN has concerns for the future.  Before the pandemic struck public spending on adult social care provision had fallen in real terms over the past decade and now, as a result in the global economic downturn, DSN anticipates that funding will be further squeezed.  Our ability to plan for the future of our contracts and services remains uncertain due to the lack of legislative progress on matters relating to Health and Social Care 

As previously reported DSN has upskilled staff to meet the increasing requirement from Local Authorities for more generic workers.  The multi skilled staff DSN employs put us in a strong position to meet any new contracts or current contractual redesigns.  The skill base DSN have also opens the possibility of more partnership opportunities should they arise. Given the outlook for the UK DSN believe that funders will be looking for added value that DSN can provide within the contracts. 

There is ongoing restructuring of funding streams within Local Authorities which may impact on the funding DSN receive for the provision of our Supported Living Service.  DSN continue to remain fully involved in user assessments and ongoing commissioner negotiations in respect of Supporting People and Care funding.  This is consistent with the charity’s overall approach going forward. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

Our financial prudence and management of reserves leaves DSN well placed to meet these challenges and DSN continue to actively target income generation from non-traditional resources.  The economic downturn will impact for the next couple of years at a minimum and DSN know this will present us with challenges, but DSN also hope there will be opportunities.  Therefore, DSN will continue with the strategy of extending our funding base, which has been successful to date. 

By embracing wider health and social care agendas and demonstrating a commitment to effective partnership development to deliver D/deaf-centric services that will meet the criteria for success in these areas, DSN will continue to provide valued specialist services. This will help to safeguard essential programmes and develop new initiatives in the years ahead. 

Our ongoing investment in the Positive Hearing programme and the continued research work into D/deafness and Dementia are good examples of taking appropriate routes to secure continued growth.  DSN continue in our strategy of positive engagement with users and commissioners.  DSN strongly believe this enables us to deliver innovative personled services leading to a reputation for quality, effectiveness, and value. 

## **Financial Sustainability** 

Our budget for the next financial year (to 31 March 2022 shows a deficit of £239,790. This budget reflects anticipated reductions in income, expenditure to continue unfunded but necessary services and research and a requirement to make a cash payment of £108,000 (paid over 12 months) to the Local Government Pension Scheme. 

As in previous years, our budget is stated prior to any capital increase in the value of our investment. 

The Charity continues to work hard to manage and reduce the use of agency staff, which has an adverse impact on financial performance. Our investment strategy and effective management of reserves provides DSN with the opportunity to invest in our staff and services to ensure that DSN continues to innovate and achieve a sustainable balance of high quality and efficient services. 

## **Responsibilities of the Council of Management** 

Company law requires the Council of Management as Directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Society and of the surplus or deficit for that year. In preparing those financial statements the Council is required to: 

- Select suitable accounting policies and apply them consistently 

- Make judgements and estimates that are reasonable and prudent 

- State whether applicable accounting standards have been followed, subject to any material departure disclosed and explained in the financial statements 

- Prepare financial statements on a going concern basis unless it is inappropriate to presume the Society will continue in existence 

The Council is responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Society and to enable its members to ensure that financial statements comply with the Companies Act 2006. It is also responsible for safeguarding the assets of the Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

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## **DEAFNESS SUPPORT NETWORK** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **Annual General Meeting** 

To raise public awareness of the charity’s work and to demonstrate that its aims continue to be carried out for the public benefit, the charity holds its Annual General Meeting in public. The 44 th Annual General Meeting of the Society was held by Zoom on Tuesday 2 nd February 2021 in accordance with formal notice thereof, at which the Council’s FY19/20 Report and Statement of Accounts were amplified. The 45 th Annual General Meeting is planned for Wednesday 16 th February 2022, at which the Council’s FY20/21 Report and Statement of Accounts will be amplified 

## **Auditors** 

A resolution will be proposed at the 45 th Annual General Meeting that Mitten Clarke Audit Limited be re-appointed as auditors to the charity for the ensuing year.  This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued March 2005) and in accordance with the special provisions of 445 (3) of the Companies Act 2006 in regard to small companies. 

Approved by the Council of Management on 16 th February 2022 and signed on its behalf by 

Mr S Crump (Chair) 

.......................................... 

144 London Road Northwich Cheshire CW9 5HH 

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## **DEAFNESS SUPPORT NETWORK** 

## **INDEPENDENT AUDITOR'S REPORT** 

## **TO THE COUNCIL OF MANAGEMENT OF DEAFNESS SUPPORT NETWORK** 

## **Opinion** 

We have audited the financial statements of Deafness Support Network (the ‘charity’) for the year ended 30 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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  FRS  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: 

- give a true and fair view of the state of the charitable company's affairs as at 30 March 2021 and of its incoming resources and application of resources, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’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 Council of management with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Council of management are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

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## **DEAFNESS SUPPORT NETWORK** 

## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** 

## **TO THE COUNCIL OF MANAGEMENT OF DEAFNESS SUPPORT NETWORK** 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the trustees'  r eport; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of Council of management** 

As explained more fully in the  s tatement of trustees'  r esponsibilities, the Council of management, who are also the directors of the charity for the purpose 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 Council of management 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 Council of management are  responsible for assessing the charity’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 Council of management either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor's responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.  The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment , by for example, forgery or intentional misrepresentations or through collusion. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below. 

## **Our approach was as follows** 

We understood how the charity is complying with relevant frameworks by making enquiries of management and those responsible for legal and compliance procedures. We assessed the susceptibility of the charity's financial statements to material misstatement including how fraud might occur by discussing with the management and the board of trustees. We enquired of management as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 

Based on this understanding we designed specific audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and obtaining additional corroborative evidence as required. 

A further description of our responsibilities is available on  the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 

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## **DEAFNESS SUPPORT NETWORK** 

## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** 

## **TO THE COUNCIL OF MANAGEMENT OF DEAFNESS SUPPORT NETWORK** 

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

the information given in the Trustees' Report, which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Directors’ Report included within the Trustees Report has been prepared in accordance with applicable legal requirements. 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

**Mrs D D Lea FCA, FCCA Mitten Clarke Audit Limited** 

9 March 2022 

**Chartered Accountants Statutory Auditor** 

Chester House LLoyd Drive Ellesmere Port Cheshire United Kingdom CH65 9HQ 

Mitten Clarke Audit Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006. 

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## **DEAFNESS SUPPORT NETWORK** 

## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|**Unrestricted Unrestricted**<br>**funds**<br>**funds**<br>**general**<br>**d esignated**<br>**2021**<br>**2021**<br>**Notes**<br>**£**<br>**£**<br>**Income and endowments from:**<br>Donations and legacies<br>**3**<br>16,963<br>-<br>Charitable activities<br>Supported Living<br>**4**<br>1,377,981<br>-<br>Communication services<br>**4**<br>111,066<br>-<br>Day Services<br>**4**<br>66,487<br>-<br>Social Care<br>**4**<br>275,215<br>-<br>Training Service<br>**4**<br>19,538<br>-<br>Youth Services<br>**4**<br>10,890<br>-<br>Projects<br>**4**<br>44,652<br>-<br>Other trading activities<br>**5**<br>9,824<br>-<br>Investments<br>**6**<br>88,009<br>-<br>Other income<br>**7**<br>-<br>-<br>**Total income**<br>2,020,625<br>-<br>**Expenditure on:**<br>Events and Fundraising<br>**8**<br>23,417<br>-<br>Charitable activities<br>**9**<br>2,057,420<br>-<br>**Total resources expended**<br>2,080,837<br>-|**Restricted**<br>**funds**<br>**2021**<br>**£**<br>7,132<br>-<br>-<br>-<br>-<br>-<br>-<br>17,500<br>-<br>-<br>-<br>24,632<br>-<br>25,085<br>25,085|**Total**Unrestricted Unrestricted<br>funds<br>funds<br>general<br>d esignated<br>**2021**<br>2020<br>2020<br>**£**<br>**£**<br>**£**<br>24,095<br>11,002<br>-<br>1,377,981<br>1,379,228<br>-<br>111,066<br>188,816<br>-<br>66,487<br>94,537<br>-<br>275,215<br>281,121<br>-<br>19,538<br>42,396<br>-<br>10,890<br>32<br>-<br>62,152<br>-<br>-<br>9,824<br>6,932<br>-<br>88,009<br>88,842<br>-<br>-<br>33,761<br>-<br>2,045,257<br>2,126,667<br>-<br>23,417<br>-<br>-<br>2,082,505<br>2,337,295<br>-<br>2,105,922<br>2,337,295<br>-|Restricted<br>funds<br>2020<br>**£**<br>110,511<br>-<br>-<br>-<br>-<br>-<br>-<br>2,656<br>-<br>-<br>-<br>113,167<br>-<br>109,792<br>109,792|Total<br>2020<br>**£**<br>121,513<br>1,379,228<br>188,816<br>94,537<br>281,121<br>42,396<br>32<br>2,656<br>6,932<br>88,842<br>33,761|
|---|---|---|---|---|
|||||2,239,834|
|||||-|
|||||2,447,087|
|||||2,447,087|



- 23 - 



## **DEAFNESS SUPPORT NETWORK** 

## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|Net gains/(losses) on investments<br>**13**<br>**Net incoming/(outgoing) resources before transfers**<br>Gross transfers between funds<br>**Net incoming/(outgoing) resources**<br>**Other recognised gains and losses**<br>Actuarial (loss)/gain on defined benefit pension schemes<br>**Net movement in funds**<br>Fund balances at 1 April 2020<br>**Fund balances at 30 March 2021**|501,629<br>441,417<br>227,470<br>668,887<br>(108,000)<br>560,887<br>2,561,559<br>3,122,446|-<br>-<br>-<br>-<br>-<br>-<br>500,000<br>500,000|-<br>(453)<br>(227,470)<br>(227,923)<br>-<br>(227,923)<br>255,814<br>27,891|501,629<br>440,964<br>-<br>440,964<br>(108,000)<br>332,964<br>3,317,373<br>3,650,337|(89,674)<br>(300,302)<br>-<br>(300,302)<br>385,000<br>84,698<br>2,476,861<br>2,561,559|-<br>-<br>-<br>-<br>-<br>-<br>500,000<br>500,000|-<br>3,375<br>-<br>3,375<br>-<br>3,375<br>252,439<br>255,814|(89,674)<br>(296,927)<br>-<br>(296,927)<br>385,000<br>88,073<br>3,229,300<br>3,317,373|
|---|---|---|---|---|---|---|---|---|



The statement of financial activities includes all gains and losses recognised in the year. 

All income and expenditure derive from continuing activities. 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

- 24 - 



## **DEAFNESS SUPPORT NETWORK** 

## **BALANCE SHEET** 

## _**AS AT 30 MARCH 2021**_ 

|**Notes**<br>**Fixed assets**<br>Tangible assets<br>**14**<br>Investments<br>**15**<br>**Current assets**<br>Debtors<br>**16**<br>Cash at bank and in hand<br>**Creditors: amounts falling due within one**<br>**year**<br>**17**<br>Net current assets<br>**Total assets less current liabilities**<br>**Provisions for liabilities**<br>**Net assets**<br>**Income funds**<br>Restricted funds<br>Unrestricted funds - designated<br>Unrestricted funds - general|**2021**<br>**£**<br>245,253<br>144,055<br>389,308<br>(199,025)|**£**<br>1,079,795<br>2,938,259<br>4,018,054<br>190,283<br>4,208,337<br>(558,000)<br>3,650,337<br>27,891<br>500,000<br>3,122,446<br>3,650,337|**2020**<br>**£**<br>299,699<br>197,415<br>497,114<br>(232,747)|**£**<br>1,106,375<br>2,396,631<br>3,503,006<br>264,367<br>3,767,373<br>(450,000)<br>3,317,373<br>255,814<br>500,000<br>2,561,559<br>3,317,373|
|---|---|---|---|---|



- 25 - 



## **DEAFNESS SUPPORT NETWORK** 

## **BALANCE SHEET (CONTINUED)** 

## _**AS AT 30 MARCH 2021**_ 

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 March 2021, although an audit has been carried out under section 144  of the Charities Act 2011. 

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. 

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476. 

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

The financial statements were approved by the Council Of Management on 16 February 2022 

Mr S Crump 

**Chair** 

## **Company Registration No. 01323762** 

- 26 - 



## **DEAFNESS SUPPORT NETWORK** 

## **STATEMENT OF CASH FLOWS** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|**Notes**<br>**Cash flows from operating activities**<br>Cash absorbed by operations<br>**23**<br>**Investing activities**<br>Purchase of tangible fixed assets<br>Proceeds on disposal of tangible fixed assets<br>Purchase of  investments<br>Proceeds on disposal of  investments<br>Investment income received<br>**Net cash generated from investing activities**<br>**Financing activities**<br>Payment of obligations under finance leases<br>**Net cash used in financing activities**<br>**Net decrease in cash and cash equivalents**<br>Cash and cash equivalents at beginning of year<br>**Cash and cash equivalents at end of year**|**2021**<br>**£**<br>(19,000)<br>9,670<br>(40,000)<br>-<br>88,009<br>(10,800)|**£**<br>(81,239)<br>38,679<br>(10,800)<br>(53,360)<br>197,415<br>144,055|**2020**<br>**£**<br>**£**<br>(247,773)<br>(24,884)<br>1,250<br>-<br>150,000<br>88,842<br>215,208<br>(13,020)<br>(13,020)<br>(45,585)<br>243,000<br>197,415|
|---|---|---|---|



- 27 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **1 Accounting policies** 

## **Charity information** 

Deafness Support Network is a private company limited by guarantee incorporated in England and Wales. The registered office is 144 London Road, Northwich, Cheshire CW9 5HH. 

## **1.1 Accounting convention** 

The financial statements have been prepared in accordance with the charity's governing document,  the Companies Act 2006 and "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 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. 

The financial statements are prepared in sterling , which is the functional currency of the charity.  Monetary a mounts in these financial statements are  rounded to the nearest £. 

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. 

## **1.2 Going concern** 

At the time of approving the financial statements, the Council of management have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Council of management  continue  to adopt the going concern basis of accounting in preparing the financial statements. 

## **1.3 Charitable funds** 

Unrestricted funds are available to further the aims and objectives of the charity. 

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 

Designated funds  are  held as a contingency to cover fixed costs in the event of a shortfall in funding for ongoing projects and services. 

## **1.4 Income** 

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. 

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. 

- 28 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **1 Accounting policies** 

**(Continued)** 

## **1.5 Expenditure** 

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered and is reported as part of the expenditure to which it relates. All costs are allocated between the expenditure categories of the SOFA on the basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. floor areas, per capita or estimated usage. 

Support costs include central functions and have been allocated to activity cost categories on the basis consistent with the use of resources, allocating property costs by floor areas or per capita, staff costs by time spent and other costs by usage. 

## **1.6 Tangible fixed assets** 

Tangible fixed assets  are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. The costs of minor additions or those costing below £500 are not capitalised. No depreciation is provided in respect of freehold land and buildings, since, in the opinion of the trustees, the ongoing maintenance of the properties maintains the residual value of the freehold properties above their original cost. Depreciation is provided for property improvements included within the accounts with a value of £271,270. 

Depreciation  of assets  is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: 

Property improvements 10% on cost Fixtures and fittings 20% and 14% on cost Motor vehicles 25% and 17% on cost 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in  net income/(expenditure) for the year. 

## **1.7 Fixed asset investments** 

Fixed asset investments  are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date.  Changes in fair value are recognised in  net income/(expenditure) for the year . Transaction costs are expensed as incurred. 

## **1.8 Impairment of fixed assets** 

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . 

## **1.9 Cash and cash equivalents** 

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 

- 29 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **1 Accounting policies** 

**(Continued)** 

## **1.10 Financial instruments** 

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 

Financial instruments are recognised in the charity's  balance sheet  when the charity becomes party to the contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

## _**Basic financial assets**_ 

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 

## _**Basic financial liabilities**_ 

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations  from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 

## _**Derecognition of financial liabilities**_ 

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. 

## **1.11 Taxation** 

As a charity, Deafness Support Network is exempt from the tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. 

## **1.12 Employee benefits** 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 

- 30 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **1 Accounting policies** 

**(Continued)** 

Deafness Support is a member of the Cheshire Pension Scheme which is funded by contributions from the employees and the charity as an employer. The assets of the scheme are held separately in a fund administered for the benefit of local authority employees and those other schedule bodies and is managed in accordance with the local government pension scheme regulations 2014 (as amended). The scheme is a multi-employer defined benefit final salary scheme where the share of assets and liabilities applicable to each employee is not identified. 

Accordingly these financial statement include pension costs payable on a defined contribution basis in accordance with section 28 FRS 102. Contributions to the scheme are based on the applicable participating organisation taken as a whole. The pension charge recorded in these accounts is the amount of contributions payable in the accounting year together with an agreed additional payment of £92,083 in respect of pension deficit. 

Alternatively, employees may opt to join the Group Personal Pension scheme operated by NOW pensions as a defined contribution scheme which is funded by contributions from employees and the charity as employer. The charity has a group personal pension scheme operated by Friends Life which is now closed to new members. 

## **1.13 Leases** 

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability. 

Rentals payable under operating leases,  including any lease incentives received, are charged  as an expense  on a straight line basis over the term of the relevant lease. 

## **2 Critical accounting estimates and judgements** 

In the application of the charity’s accounting policies, the Council of management are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

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

- 31 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **3 Donations and legacies** 

|**Unrestricted**<br>**Restricted**<br>**funds**<br>**funds**<br>**general**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>Donations and gifts<br>5,554<br>7,132<br>Other grants received<br>-<br>-<br>Coronavirus Job Retention<br>Scheme<br>11,409<br>-<br>16,963<br>7,132|**Total**Unrestricted<br>Restricted<br>funds<br>funds<br>general<br>**2021**<br>2020<br>2020<br>**£**<br>£<br>£<br>12,686<br>11,002<br>-<br>-<br>-<br>110,511<br>11,409<br>-<br>-<br>24,095<br>11,002<br>110,511|Total<br>2020<br>£<br>11,002<br>110,511<br>-|
|---|---|---|
|||121,513|



Major grants received during the year include the following:- 

|Big Lottery<br>BBC Children in Need<br>Cheshire West CCG<br>Brightlife - Big Lottery Fund Grant<br>National Lottery/European Social Fund Building<br>Cheshire West and Chester Young Leaders<br>Cheshire West and Chester<br>Cheshire East New Homes Bonus<br>Anne Duchess of Westiminster<br>Cheshire Community Foundation<br>Armed Forces<br>Crewe Town Council<br>Ovingdean Hall<br>Bradford Metropolitan Council|**2021**<br>**£**<br>18,528<br>36,824<br>8,335<br>-<br>-<br>-<br>32,853<br>-<br>-<br>-<br>17,500<br>2,446<br>5,115<br>2,309<br>123,910|**2020**<br>**£**<br>18,208<br>30,504<br>8,000<br>7,671<br>4,359<br>15,281<br>-<br>17,548<br>1,000<br>7,940<br>-<br>-<br>-<br>-|
|---|---|---|
|||110,511|



Grants received in 2021 are included within Charitable activity income. 

- 32 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **4 Charitable activities** 

|**Supported Living Communication**<br>**services**<br>**Day Services**<br>**2021**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>**£**<br>Charitable activities<br>1,377,981<br>111,066<br>66,487<br>Performance related grants<br>-<br>-<br>-<br>1,377,981<br>111,066<br>66,487<br>Analysis by fund<br>Unrestricted funds - general<br>1,377,981<br>111,066<br>66,487<br>Restricted funds<br>-<br>-<br>-<br>1,377,981<br>111,066<br>66,487|**Social Care Training Service**<br>**Youth Services**<br>**2021**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>**£**<br>275,215<br>19,538<br>10,890<br>-<br>-<br>-<br>275,215<br>19,538<br>10,890<br>275,215<br>19,538<br>10,890<br>-<br>-<br>-<br>275,215<br>19,538<br>10,890|**Projects**<br>**2021**<br>**£**<br>62,152<br>-<br>62,152<br>44,652<br>17,500<br>62,152|**Total**<br>**2021**<br>**£**<br>1,923,329<br>-<br>1,923,329<br>1,905,829<br>17,500<br>1,923,329|**Total**<br>**2020**<br>**£**<br>1,986,130<br>2,656|
|---|---|---|---|---|
|||||1,988,786|
|||||1,986,130<br>2,656|
|||||1,988,786|



- 33 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|**Charitable activities**<br>**For the year ended 31 March 2020**<br>**Supported Living Communication**<br>**services**<br>**Day Services**<br>**£**<br>**£**<br>**£**<br>Charitable activities<br>1,379,228<br>188,816<br>94,537<br>Grant income<br>-<br>-<br>-<br>1,379,228<br>188,816<br>94,537<br>Analysis by fund<br>Unrestricted funds - general<br>1,379,228<br>188,816<br>94,537<br>Restricted funds<br>-<br>-<br>-<br>1,379,228<br>188,816<br>94,537|**Social Care Training Service**<br>**Youth Services**<br>**£**<br>**£**<br>**£**<br>281,121<br>42,396<br>32<br>-<br>-<br>-<br>281,121<br>42,396<br>32<br>281,121<br>42,396<br>32<br>-<br>-<br>-<br>281,121<br>42,396<br>32|**(Continued)**<br>**Projects**<br>**Total**<br>**2020**<br>**£**<br>**£**<br>-<br>1,986,130<br>2,656<br>2,656<br>2,656<br>1,988,786<br>-<br>1,986,130<br>2,656<br>2,656<br>2,656<br>1,988,786|**(Continued)**<br>**Projects**<br>**Total**<br>**2020**<br>**£**<br>**£**<br>-<br>1,986,130<br>2,656<br>2,656<br>2,656<br>1,988,786<br>-<br>1,986,130<br>2,656<br>2,656<br>2,656<br>1,988,786|
|---|---|---|---|
||||1,988,786|
||||1,986,130<br>2,656|
||||1,988,786|



- **4 Charitable activities** 

- 34 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|**5**<br>**6**<br>**7**<br>**8**|**Other trading activities**<br>**Unrestricted**Unrestricted<br>**funds**<br>funds<br>**general**<br>general<br>**2021**<br>2020<br>**£**<br>£<br>Fundraising events<br>9,824<br>6,932<br>**Investments**<br>**Unrestricted**Unrestricted<br>**funds**<br>funds<br>**general**<br>general<br>**2021**<br>2020<br>**£**<br>£<br>Income from listed investments<br>88,009<br>88,842<br>**Other income**<br>**Total**Unrestricted<br>funds<br>general<br>**2021**<br>2020<br>**£**<br>£<br>Other income<br>-<br>33,761<br>**Events and Fundraising**<br>**Unrestricted**<br>Total<br>**funds**<br>**general**<br>**2021**<br>2020<br>**£**<br>£<br>Fundraising and publicity<br>Fundraising costs<br>23,417<br>-<br>23,417<br>-|**Other trading activities**<br>**Unrestricted**Unrestricted<br>**funds**<br>funds<br>**general**<br>general<br>**2021**<br>2020<br>**£**<br>£<br>Fundraising events<br>9,824<br>6,932<br>**Investments**<br>**Unrestricted**Unrestricted<br>**funds**<br>funds<br>**general**<br>general<br>**2021**<br>2020<br>**£**<br>£<br>Income from listed investments<br>88,009<br>88,842<br>**Other income**<br>**Total**Unrestricted<br>funds<br>general<br>**2021**<br>2020<br>**£**<br>£<br>Other income<br>-<br>33,761<br>**Events and Fundraising**<br>**Unrestricted**<br>Total<br>**funds**<br>**general**<br>**2021**<br>2020<br>**£**<br>£<br>Fundraising and publicity<br>Fundraising costs<br>23,417<br>-<br>23,417<br>-|
|---|---|---|
|||Total<br>2020<br>£<br>-|
|||-|



- 35 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **9 Charitable activities** 

|**Supported**<br>**Living**<br>**Communication**<br>**Services**<br>**Day Services**<br>**Social Care**<br>**2021**<br>**2021**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>Staff costs<br>689,606<br>79,572<br>62,747<br>235,626<br>Other direct costs<br>169,311<br>44,270<br>5,802<br>28,943<br>858,917<br>123,842<br>68,549<br>264,569<br>Share of support costs (see note 10)<br>327,898<br>37,835<br>29,835<br>112,036<br>Share of governance costs (see note 10)<br>2,822<br>326<br>257<br>964<br>1,189,637<br>162,003<br>98,641<br>377,569<br>**Analysis by fund**<br>Unrestricted funds - general<br>1,189,637<br>162,003<br>98,641<br>377,569<br>Restricted funds<br>-<br>-<br>-<br>-<br>1,189,637<br>162,003<br>98,641<br>377,569|**Training**<br>**Service**<br>**Youth Service**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>21,309<br>22,462<br>19,964<br>5,698<br>41,273<br>28,160<br>10,132<br>10,680<br>87<br>92<br>51,492<br>38,932<br>51,492<br>38,932<br>-<br>-<br>51,492<br>38,932|**Projects**<br>**2021**<br>**£**<br>85,910<br>37,120<br>123,030<br>40,849<br>352<br>164,231<br>139,146<br>25,085<br>164,231|**Total**<br>**2021**<br>**£**<br>1,197,232<br>311,108<br>1,508,340<br>569,265<br>4,900<br>2,082,505<br>2,057,420<br>25,085<br>2,082,505|**Total**<br>**2020**<br>**£**<br>1,545,524<br>716,550|
|---|---|---|---|---|
|||||2,262,074<br>185,013<br>-|
|||||2,447,087|
|||||2,337,295<br>109,792|
|||||2,447,087|



- 36 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **9 Charitable activities** 

**(Continued)** 

|For the year ended 31 March 2020<br>**Supported**<br>**Living**<br>**Communicati**<br>**on Services**<br>**Day Services**<br>**Social Care**<br>**£**<br>**£**<br>**£**<br>**£**<br>Staff costs<br>837,214<br>115,839<br>78,998<br>302,373<br>Other direct costs<br>404,835<br>101,670<br>15,170<br>77,443<br>1,242,049<br>217,509<br>94,168<br>379,816<br>Share of support costs (see note 10)<br>107,307<br>18,502<br>7,401<br>27,753<br>1,349,356<br>236,011<br>101,569<br>407,569<br>**Analysis by fund**<br>Unrestricted funds - general<br>1,349,356<br>236,011<br>101,569<br>407,569<br>Restricted funds<br>-<br>-<br>-<br>-<br>1,349,356<br>236,011<br>101,569<br>407,569|**Training**<br>**Service**<br>**Youth Service**<br>**£**<br>**£**<br>36,103<br>59,294<br>27,694<br>25,137<br>63,797<br>84,431<br>5,550<br>5,550<br>69,347<br>89,981<br>69,347<br>50,918<br>-<br>39,063<br>69,347<br>89,981|**Projects**<br>**£**<br>115,703<br>64,601<br>180,304<br>12,950<br>193,254<br>122,525<br>70,729<br>193,254|**Total**<br>**2020**<br>**£**<br>1,545,524<br>716,550|
|---|---|---|---|
||||2,262,074<br>185,013|
||||2,447,087|
||||2,337,295<br>109,792|
||||2,447,087|



- 37 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **10 Support costs** 

|**Support costs**<br>**Governance**<br>**costs**<br>**£**<br>**£**<br>Staff costs<br>331,195<br>-<br>Travel<br>3,195<br>-<br>Premises<br>182,153<br>-<br>Postage and printing<br>10,352<br>-<br>Financial costs<br>304<br>-<br>Depreciation<br>27,274<br>-<br>General expenses<br>7,042<br>-<br>Legal and professional<br>7,750<br>4,900<br>569,265<br>4,900<br>Analysed between<br>Charitable activities<br>569,265<br>4,900|**2021**Support costs<br>Governance<br>costs<br>**£**<br>£<br>£<br>331,195<br>-<br>-<br>3,195<br>17,609<br>-<br>182,153<br>76,898<br>-<br>10,352<br>8,091<br>-<br>304<br>43,740<br>-<br>27,274<br>38,675<br>-<br>7,042<br>-<br>-<br>12,650<br>-<br>-<br>574,165<br>185,013<br>-<br>574,165<br>185,013<br>-|2020<br>£<br>-<br>17,609<br>76,898<br>8,091<br>43,740<br>38,675<br>-<br>-|
|---|---|---|
|||185,013|
|||185,013|



In 2020, the majority of support costs were allocated directly to charitable activity costs. For 2021 onwards support costs will be shown separately for greater transparency. 

Governance costs includes payments to the auditors of £ 4,900 for audit fees. 

## **11 Council Of Management** 

None of the Council of management (or any persons connected with them) received any remuneration or benefits from the charity during the year. 

## **12 Employees** 

The average monthly number of employees during the year was: 

|Executive<br>Operations<br>Supported Living<br>Finance & Personnel<br>Total|**2021**<br>**Number**<br>3<br>16<br>31<br>8<br>58|**2020**<br>**Number**<br>2<br>12<br>30<br>8|
|---|---|---|
|||52|



- 38 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|**12**<br>**Employees**<br>**Employment costs**<br>Wages and salaries<br>Social security costs<br>Pension costs|**(Continued)**<br>**2021**<br>**2020**<br>**£**<br>**£**<br>1,232,393<br>1,247,828<br>85,831<br>91,458<br>184,636<br>206,238<br>1,502,860<br>1,545,524|
|---|---|



There were no employees whose annual remuneration was £60,000 or more. 

## **13 Net gains/(losses) on investments** 

||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2021**|2020|
||**£**|£|
|Revaluation of investments|501,629|(89,674)|



## **14 Tangible fixed assets** 

|**Freehold land**<br>**and buildings**<br>**£**<br>**Cost**<br>At 1 April 2020<br>1,285,006<br>Additions<br>-<br>Disposals<br>-<br>At 30 March 2021<br>1,285,006<br>**Depreciation and impairment**<br>At 1 April 2020<br>236,520<br>Depreciation charged in the year<br>24,426<br>Eliminated in respect of disposals<br>-<br>At 30 March 2021<br>260,946<br>**Carrying amount**<br>At 30 March 2021<br>1,024,060<br>At 31 March 2020<br>1,048,486|**Fixtures and**<br>**fittings**<br>**Motor vehicles**<br>**£**<br>**£**<br>78,781<br>133,554<br>-<br>19,000<br>(13,580)<br>(18,641)<br>65,201<br>133,913<br>36,175<br>118,270<br>14,591<br>5,432<br>(12,448)<br>(18,641)<br>38,318<br>105,061<br>26,883<br>28,852<br>42,605<br>15,284|**Total**<br>**£**<br>1,497,341<br>19,000<br>(32,221)<br>1,484,120<br>390,965<br>44,449<br>(31,089)<br>404,325<br>1,079,795<br>1,106,375|
|---|---|---|



- 39 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **15 Fixed asset investments** 

|**Cost or valuation**<br>At 1 April 2020<br>Additions<br>Valuation changes<br>At 30 March 2021<br>**Carrying amount**<br>At 30 March 2021<br>At 31 March 2020<br>**16**<br>**Debtors**<br>**Amounts falling due within one year:**<br>Trade debtors<br>Prepayments and accrued income<br>**17**<br>**Creditors: amounts falling due within one year**<br>**Notes**<br>Obligations under finance leases<br>Other taxation and social security<br>Trade creditors<br>Accruals and deferred income|**Listed**<br>**investments**<br>**£**<br>2,396,631<br>40,000<br>501,628<br>2,938,259<br>2,938,259<br>2,396,631<br>**2021**<br>**2020**<br>**£**<br>**£**<br>139,890<br>151,379<br>105,363<br>148,320<br>245,253<br>299,699<br>**2021**<br>**2020**<br>**£**<br>**£**<br>-<br>10,800<br>26,689<br>43,545<br>21,841<br>62,277<br>150,495<br>116,125<br>199,025<br>232,747|**Listed**<br>**investments**<br>**£**<br>2,396,631<br>40,000<br>501,628<br>2,938,259<br>2,938,259<br>2,396,631<br>**2021**<br>**2020**<br>**£**<br>**£**<br>139,890<br>151,379<br>105,363<br>148,320<br>245,253<br>299,699<br>**2021**<br>**2020**<br>**£**<br>**£**<br>-<br>10,800<br>26,689<br>43,545<br>21,841<br>62,277<br>150,495<br>116,125<br>199,025<br>232,747|
|---|---|---|
|||2,938,259|
|||2,938,259|
|||2,396,631|
|||**2020**<br>**£**<br>151,379<br>148,320|
|||299,699|
|||**2020**<br>**£**<br>10,800<br>43,545<br>62,277<br>116,125|
|||232,747|



- 40 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|**18**<br>**Analysis of net assets between funds**<br>**Unrestricted**<br>**funds**<br>**Designated**<br>**funds**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>Fund balances at 30 March 2021 are represented by:<br>Tangible assets<br>1,079,795<br>-<br>Investments<br>2,438,259<br>500,000<br>Current assets/(liabilities)<br>162,392<br>-<br>Provisions including pensions<br>(558,000)<br>-<br>3,122,446<br>500,000|**Restricted**<br>**funds**<br>**2021**<br>**£**<br>-<br>-<br>27,891<br>-<br>27,891|**Total**Unrestricted<br>funds<br>Designated<br>funds<br>**2021**<br>2020<br>2020<br>**£**<br>£<br>£<br>1,079,795<br>1,106,375<br>-<br>2,938,259<br>1,896,631<br>500,000<br>190,283<br>8,553<br>-<br>(558,000)<br>(450,000)<br>-<br>3,650,337<br>2,561,559<br>500,000|Restricted<br>funds<br>2020<br>£<br>-<br>-<br>255,814<br>-<br>255,814|Total<br>2020<br>£<br>1,106,375<br>2,396,631<br>264,367<br>(450,000)<br>3,317,373|
|---|---|---|---|---|



- 41 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|**19 Movement in funds**<br>**At 1.4.20**<br>**£**<br>**Unrestricted income fund**<br>General funds<br>2,614,928<br>Pension reserve<br>(450,000)<br>Revaluation reserve<br>396,631<br>2,561,559<br>**Designated funds**<br>500,000<br>**Restricted funds**<br>National Lottery Grant<br>212,585<br>The Richard Sharp Project<br>20,000<br>The Postcode Lottery<br>2,681<br>Ursula Keyes<br>923<br>Big Lottery Building Connections Fund<br>3,599<br>Cheshire East New Home Bonus Grant<br>8,674<br>Ann Duchess of Westminster Grant<br>918<br>Cheshire Community Foundation<br>937<br>Volunteers in Partnership<br>1,969<br>I’m Hear Project<br>1,938<br>Fundraising Balances<br>1,590<br>Armed forces<br>-<br>255,814<br>**TOTAL FUNDS**<br>3,317,373|**Income**<br>**Expenditure**<br>**Transfers**<br>**£**<br>**£**<br>**£**<br>2,020,625<br>(2,080,837)<br>227,470<br>-<br>(108,000)<br>501,629<br>-<br>-<br>2,522,254<br>(2,188,837)<br>227,470<br>-<br>-<br>-<br>-<br>-<br>(207,470)<br>-<br>-<br>(20,000)<br>-<br>(2,681)<br>-<br>-<br>(923)<br>-<br>-<br>(3,599)<br>-<br>-<br>(7,599)<br>-<br>-<br>(918)<br>-<br>-<br>(937)<br>-<br>-<br>(1,969)<br>-<br>-<br>(1,938)<br>-<br>7,132<br>(4,521)<br>-<br>17,500<br>-<br>-<br>24,632<br>(25,085)<br>(227,470)<br>2,546,886<br>(2,213,922)<br>-|**At 31.3.21**<br>**£**<br>2,782,186<br>(558,000)<br>898,260<br>3,122,446<br>500,000<br>5,115<br>-<br>-<br>-<br>-<br>1,075<br>-<br>-<br>-<br>-<br>4,201<br>17,500<br>27,891<br>3,650,337|
|---|---|---|



- 42 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **19 Movement in funds** 

**(Continued)** 

The National Lottery grant of £212,585 was received in prior years for an extension to 144 London Road, Northwich.  This work has been completed and the extension is fully operational. 

Fundraising income of £20,000 was raised for the Richard Sharp Project for the upkeep and maintenance of the Sensory room and café, as well as to support the delivery of the Deafness & Dementia projects.  The funds were spent leaving a balance of £1,000 which we were permitted to use for any purpose.  This balance has therefore been removed from restricted funds. 

Grants received in prior years for the continuation of the Deafness & Dementia service providing cafes have all been fully spent and the service has ended.  These grants were from The Postcode Lottery , Ursula Keys, Volunteers in Partnership and the Big Lottery Connections Fund. 

Grants have been received in prior years for the provision of activities for the Youth Service.  Grants from Anne Duchess of Westminster and Cheshire Community Foundation have been fully utilised.  A balance of £1,075 remains from the Cheshire East New Home Bonus Grant, and this will be used against the provision of the Youth Service in the upcoming financial year. 

The I’m Hear Project was part funded by BBC Children in Need and ended during the financial year. 

The Fundraising Balances refers to small fundraising and grant balances. 

An Armed Forces Grant has been received for the provision of Armed Forces veterans.  The total value of the project for a 2 year period is £70,000 and the first funds of £17,500 were received in March 2021.  These funds will be used for the provision of the Veterans Project for the period of the scheme. 

## **20 Operating lease commitments** 

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows: 

|Within one year<br>Between two and five years|**2021**<br>**£**<br>24,728<br>24,728<br>49,456|**2020**<br>**£**<br>25,963<br>51,929|
|---|---|---|
|||77,892|



- 43 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

## **21 Related party transactions** 

During the year remuneration was paid to Mrs L Birtles, who is daughter of the trustee Mr P Morley £17,243 (2020 - £18,574). The remuneration was paid to carry our her role on behalf of the Training Service. Remuneration was paid to Miss A Pane, daughter of the trustee Mr D Pane, £1,360 (2020 - £6,375). The remuneration was paid to carry out casual her role on behalf of Supported Living Service. 

Deafness Support has provided funding for a retail business which supports its own values, DSN Retail Ltd, trading as Positive Hearing which is run as a not for profit business with Social Enterprise ethos and is a company limited by guarantee registered at 144 London Road, Northwich. The company is devoted to providing the latest in technology products and systems to the deaf community in Cheshire. The company is founded on a strong evidence base that there are a significant number of deaf people who require help and assistance with new products together with thier existing products and devices and this leads to a great improvement to their everyday lives socially and professionally. Gill Reeder, who is DSN's Executive of Operations is a director of DSN Retail Ltd. 

## **22 Pension Cost** 

The charity participates in the Cheshire county council pension scheme, a multi-employer defined benefit final salary scheme where the share of the assets and liabilities applicable to each employer is not identifiable. The scheme is administered for the benefit of local authority employees and other bodies and is managed in accordance with technical actuarial standard 100: Principles for Technical Actuarial Work, which came into force on 1 July 2017. 

The employers contribution made to the scheme in the year was with an employers contribution of between 5.5% and 8.5% of pensionable pay. During the year to 31st of March 2021 Deafness Support Network made additional payments of £108,000 towards a pension deficit. A further £108,000 will be payable in the year to 31st of March 2022. This is in addition to the standard employers contributions. 

The results and assumptions of the most recent valuation of the scheme are as follows:- 

|Valuation date|31 March 2021|31 March 2020|
|---|---|---|
|Valuation method|Projected unit credit|<br>Projected unit credit|
|Value of assets|£2,630,000|<br>£2,278,000|
|Value of liabilities|£3,188,000|<br>£2,728,000|
|Funding level for accrued benefits|82.5%|<br>83.5%|
|Investment returns on accumulated assets|13.90%|<br>0.60%|
|Salary scale increase per annum|3.55%|<br>2.70%|
|Pension increases per annum|2.85%|<br>2.00%|
|Discount rate|1.95%|<br>2.30%|
|Rate of Consumer Price Index|0.70%|<br>1.50%|
|Rate of price inflation|1.50%|<br>2.60%|
||||



- 44 - 



## **DEAFNESS SUPPORT NETWORK** 

## **NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 30 MARCH 2021**_ 

|**23**<br>**Cash generated from operations**<br>Surplus for the year<br>Adjustments for:<br>Investment income recognised in statement of financial activities<br>Loss/(gain) on disposal of fixed assets<br>Fair value (gains) and losses on investments<br>Amortisation and impairment of intangible assets<br>Depreciation and impairment of tangible fixed assets<br>Actuarial revaluation of pension fund<br>Movements in working capital:<br>Decrease/(increase) in debtors<br>Increase in creditors<br>**Cash absorbed/(generated) by operations**<br>**24**<br>**Analysis of changes in net funds**<br>**At 1**<br>Cash at bank and in hand<br>Obligations under finance leases|**2021**<br>**2020**<br>**£**<br>**£**<br>440,964<br>88,073<br>(88,009)<br>(88,842)<br>(8,538)<br>-<br>(501,629)<br>89,674<br>-<br>5,000<br>44,449<br>49,310<br>(108,000)<br>(385,000)<br>54,446<br>(72,649)<br>85,078<br>66,661<br>(81,239)<br>(247,773)<br>**April 2020**<br>**Cash flows At 30 March 2021**<br>**£**<br>**£**<br>**£**<br>197,415<br>(53,360)<br>144,055<br>(10,800)<br>10,800<br>-<br>186,615<br>(42,560)<br>144,055|
|---|---|



- 45 -