**Registered number: 1786914 Charity number: 514829** 

## **MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **CONTENTS** 

||Page|
|---|---|
|**Reference and administrative details of the Company, its Trustees and advisers**|1|
|**Chair's statement**|2 - 3|
|**Trustees' report**|4 - 21|
|**Trustees' responsibilities statement**|22|
|**Independent auditor's report on the financial statements**|23 - 26|
|**Statement of financial activities**|27|
|**Balance sheet**|28|
|**Statement of cash flows**|29|
|**Notes to the financial statements**|30 - 52|





**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024** 

|**Trustees**|S J Baines, Chair|
|---|---|
||D M Corner, Trustee (resigned 26 September 2023)|
||G Jenkins, Trustee|
||M Booth, Trustee|
||P Rolland, Trustee (resigned 26 June 2024)|
||J Lanham, Trustee|
||K Evans, Trustee|
||M Atherton, Trustee|
||C Kaplan, Trustee (appointed 17 July 2023)|
||A Tatlow, Trustee (appointed 13 December 2023)|
|**Company registered**<br>**number**<br>1786914<br>**Charity registered**<br>**number**<br>514829<br>**Registered office**<br>Waterside House Wearfield<br>Sunderland Enterprise Park<br>Sunderland<br>Tyne and Wear<br>SR5 2TZ<br>**Chief executive officer**<br>J Hughes<br>**Independent auditor**<br>Armstrong Watson Audit Limited<br>Chartered Accountants and Statutory Auditors<br>One Strawberry Lane<br>Newcastle upon Tyne<br>NE1 4BX||



Page 1 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **CHAIR'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2024** 

I am delighted to present our Annual Report and Accounts for 2023-24 which provide a summary of the year’s activity and details of our accounts for this financial year. For full details of the impact of our work this year, see our Impact Report which is accessible via this link https://www.mhm.org.uk/our-impact. 

During the year we continued to progress with our three-year strategy for 2022-2025 to cement our growth, service quality and infrastructure.  This strategy followed a significant review of the organisation and brand, but I am conscious that as we now move into the last year of our strategy, we will be reviewing our progress and looking to the future to inform the focus of our strategy for 2025-2028. 

In the meantime, our vision, purpose and values remain unchanged, and at the heart of everything we do. 

Our Vision is: That everyone can access support for their mental health to live a meaningful life, in a society free from stigma. 

Our Purpose is: To provide innovative, life-changing mental health support for individuals and communities. 

Our Values are: 

- Compassionate: We are compassionate to the needs of the people who access our services, their experiences, and their aspirations. 

- Collaborative: We believe that by working together, we achieve the best outcomes for individuals, communities, and society. 

- Accountable: We are accountable, we are transparent and hold ourselves to the highest standards in every interaction. 

- Proud: We are proud of what we stand for – those who access our services, our people and changing lives. 

The four themes of our strategy address our future ambitions as a provider of mental health services and as an ambassador for those with mental health needs who require access to support. One particular area of focus includes collaborating with experts by experience to ensure we provide accessible, impactful, high quality and innovative services that meet locally identified needs. We will also help shape future care and support by influencing the transformation of services, ensuring we take a personalised and place-based approach to deliver life changing impact whilst challenging stigma. 

A vital aspect of our role as a charity is to use our voice in external forums to promote mental health and support the development of mental health strategy and services. We continue to do this through our established networks, helping to shape integrated workforces and the evolution of new roles in this sector. We have also worked with our commissioners and partners across health and social care to support the integration of services. 

We have supported the developing transformation of community mental health services in various locations where we operate as a provider. This includes chairing the Transformation Leadership Board in Northumberland as well as being an active founder member of the new Durham Mental Wellbeing Alliance. We have also played a proactive  role  in  responding to  a  variety of consultations, including the reform of the Mental Health Act. We continue to be active in the development of support for those potentially facing crisis and are working to develop co-located services on hospital sites. We have also played an active role in the implementation of the Right Care Right Person model and continue to advocate for best practice and a partnership approach in areas where our sector has not been engaged. 

Our focus within the organisation is to build on our work, implementing our strategy and values. Developing a culture that is underpinned by our values will ensure we can attract and retain a skilled, knowledgeable and diverse workforce for the future, that is appropriately recognised and rewarded. 

Page 2 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **CHAIR'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

We are continuing to transform our internal systems and processes which will enable us to be more user-friendly and efficient and thereby maximizing our impact in helping people to achieve meaningful lives. Our strong financial position is supporting investment in a digital strategy that will modernise the infrastructure, equipment, tools, and resources that support hybrid working and new innovative models of service provision. 

Whilst the pandemic is now thankfully moving into the past, our services continue to feel the effects of it, and are likely to do so for some considerable time to come as the long-term impact on mental health continues. There is no question that this is increasing demand and putting more strain on our services. It also continues to provide other challenges for us, particularly around the area of recruitment. Despite this we have successfully established a number of new services this year and increased the number of people that we have been able to reach and support. 

Since I took on the role of Chair of the Board of Trustees in September 2021, David Corner has been a key support to me, particularly in his role as Chair of the Audit and Risk Sub-committee. I therefore want to say a particular thank you to him for his contribution and commitment to Mental Health Matters throughout his time as a trustee. Overall, our Board of Trustees has had a more stable membership this year, following a period of more significant change, but I also want to welcome both Carole Kaplan and Tony Tatlow to the Board. Tony has taken over David’s role as Chair of the Audit and Risk Committee. 

To support our continued focus on quality we established a Quality and Safeguarding Committee last year to work alongside our current Audit and Risk Committee, providing additional assurance to the Board, as the breadth and range of service models expand. I am very pleased to say that this Committee is now well established and has become a key pillar of our governance. Our time limited steering groups also bring together trustees with relevant skills, supporting our Executive and Leadership teams with major workstreams, including the implementation of our workforce and digital strategies. Following our pay and benefits review last year, we have also established a Remuneration Committee for the first time. This Committee oversees the Charity’s remuneration strategy, policies and framework. 

We know the next year will continue to provide challenges to us as a charity and service provider as well as to those people accessing our services. I am confident that we will continue to work in a collaborative way alongside our partners and networks to focus on delivering our strategy. We will continue to use our voice to grow our influence in the sector and to advocate for those experiencing mental distress and illness at a time when there are ambitious plans within the health and social care sector to truly transform services and tackle inequalities. 

Sally J Baines (Oct 7, 2024 13:12 GMT+1) 

## **S J Baines** 

**Chair of Trustees** 

> Date: 07/10/2024 

Page 3 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2024** 

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)” (as amended for accounting periods commencing from 1 January 2019). 

## **Objectives and activities** 

## **a. Public Benefit** 

Mental Health Matters (MHM) exists for the benefit of the public through the provision of its services to any member of the public who has a mental or physical health need that impacts on their wellbeing. All of the services provided by MHM are within the aims and objectives as set out in the Articles of Association. 

Throughout the Achievements and Performance section of this report (pages 8-18), we have identified and evaluated the benefits that individuals gain from accessing our services and maximising independence through self-directed support. This is particularly reflected in our psychological therapy services and community-based services focusing on positive outcomes for individuals. 

In shaping our objectives for the year and planning our activities, the Trustees considered the Charity Commission's guidance on public benefit, including the guidance 'Public benefit: running a charity (PB2)'. 

As an organisation we also provide a range of accessible literature, online resources and training courses to educate, inform and guide people with mental and physical health needs, their families, carers and networks, and the wider community. 

## **b. Objectives** 

The primary objective of the Charity is to act for the benefit of the public, to promote the well-being of persons who are experiencing mental or physical health problems or illnesses, however those problems or illnesses have arisen, and their families and carers, both in the UK and overseas. 

During 2023/24 our focus has been on: 

- provision of high quality, sector leading services; 

- business development and growth; 

- a motivated and relevant workforce; and 

- system & process improvement. 

During the year, as detailed in the Chair’s statement above, we continued to follow our organisational strategy for 2022-25, developed in consultation with our commissioners, partners, employees, and those who access our services. 

Page 4 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Structure, governance and management** 

## **a. Governance and trustees** 

MHM is a charitable company limited by guarantee (registration number 1786914), incorporated in 1984 and governed by its Articles of Association, most recently amended in 2022 to provide clarity around recruitment of trustees, terms of office and the functioning of the Board and its sub-committees. MHM is registered as a charity in England and Wales (registration number 514829). 

The Board of Trustees has ultimate responsibility for the strategic direction of MHM. The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of this report were: 

S Baines (Chair) D Corner (resigned 23 September 2023) G Jenkins M Booth P Rolland J Lanham K Evans M Atherton T Tatlow (appointed 13 December 2023) C Kaplan (appointed 17 July 2023) 

At 31 March 2024 and at the date of signing this report had 9 serving trustees. 

## **b. Organisation** 

The Board of Trustees meets quarterly during the year in order to ensure that MHM achieves its charitable objectives. The Board's role includes strategic oversight, and monitoring of quality and effectiveness of governance arrangements, operational performance and financial performance. Business plans, budgets, the schedule of delegation, and terms of reference for the sub-committees (Audit & Risk, Quality & Safeguarding and Remuneration Committees) and the Executive Team are reviewed and agreed annually and monitored by the Board of Trustees. 

The Audit & Risk Committee meets quarterly and seeks assurance over the organisation's financial and governance systems, including the annual financial auditing process and the corporate risk framework. The findings from the organisation's annual cycle of internal quality and assurance systems auditing are reported to this committee. 

The Quality & Safeguarding Committee, established in December 2022 and embedded during 23/24, also meets quarterly. Its purpose is to support the Board of Trustees in discharging its responsibilities for the safe and effective delivery of services and to oversee the strive for excellence and continuous quality improvement. 

Board of Trustees meetings are held either in person or using online platforms. Sub-committee meetings are generally held online. 

A Chief Executive Officer is appointed by the Trustees to manage the day-to-day operations of the Charity. The Board of Trustees has systems in place for the delegation of authority to the Chief Executive Officer and the Executive Team. 

Page 5 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Structure, governance and management (continued)** 

## **c. Trustee induction and training** 

MHM's Board of Trustees is made up of individuals with the skills, competences and experience required to govern the organisation. The Trustees keep these requirements under review in order to ensure that the organisation is effectively governed. Recruitment to the Charity's Board of Trustees complies with the process detailed in its Articles of Association. 

Each year the Board of Trustees, Chief Executive Officer and Executive Team meet with their charitable and company law legal advisor. The purpose of the meeting is to refresh their knowledge of the respective duties of trustees and employees, and also to update them on any key amendments in charity law and Charity Commission expectations, with a view to potential impact on the Charity's governing framework. 

The Trustees have access to the MHM intranet and to a range of e-learning, including modules that are mandatory for trustees, covering a range of relevant content. For example, these include the organisation induction, mental health awareness, safeguarding, information governance, and health and safety. They also receive regular refresher training around their roles and responsibilities. 

## **d. Related parties and co-operation with other organisations** 

None of the Trustees receives remuneration or other benefit from their work with the Charity. 

Three current Trustees have connections with organisations that provide funding to MHM; the details are presented in note 25 on page 52. Where decisions are made by the Board of Trustees that relate to those organisations, the Trustees concerned do not participate in the decision-making process. 

MHM has continued to work with many NHS and third sector organisations during the year and entered into contracts with several new commissioners. Our commissioners are listed on page 15. 

MHM has a wholly owned trading company, Moorpark Limited. This subsidiary ceased its trading activities in June 2013 and is currently inactive. 

## **e. Fundraising** 

MHM’s primary source of funding is statutory funding, and the delivery of our services does not rely on donations or public fundraising. However, for the public, donating or fundraising is often seen as a positive way of supporting our services and as a way of expressing gratitude for the support received by themselves or a loved one. All funds received are used to support our charitable objects. Some of our donors ask that their contributions are used for the benefit of particular services and therefore the Charity restricts the use to meet these requests. 

MHM is committed to best fundraising practice and compliance with appropriate guidance, and is registered with the Fundraising Regulator. Details of our approach to fundraising are available on our website: https://www.mhm.org.uk/fundraising-statement 

Donations received during the year totalled £67,959 _(2023: £22,568)_ . 

Page 6 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Structure, governance and management (continued)** 

## **f. Pay policy for key management personnel** 

The Trustees consider that key management is comprised of the Chief Executive Officer and Executive Team who are in charge of directing and controlling, running and operating the Charity on a day-to-day basis. 

The pay of the Executive Team is reviewed annually and normally increased to reflect cost of living changes. In view of the nature of the Charity, the Trustees also benchmark against pay levels in other similar organisations and of a similar size. The ratio of the Chief Executive Officer's rate of pay to the average rate of pay for all employees in March 2024 was 3.3:1 _(2023: 2.9:1)_ . 

## **g. Gender pay gap** 

For MHM at April 2023 the mean gender pay gap was -4% ( _April 2022: 1%_ ) and the median gender pay gap was 0% ( _April 2022: 5%_ ). Policies and procedures ensure that employees in directly comparable roles are paid at the same rate. The mean gap is attributable to the fact that the management team at the time was predominantly female. MHM is committed to providing equal opportunities in recruitment and in learning and development to male and female employees and prospective employees. MHM remains alert to barriers that might affect the balance of male and female employees in each type of role and is committed to addressing those barriers if it has the power to do so. 

MHM operates a pay and grading structure in which all roles are evaluated against the HR Xpert framework and benchmarked against industry standards using Cendex (now Brightmine). The pay structure includes a two-tier pay recognition structure and allows employees to receive a higher rate of pay based on their contribution to the organisation. Through the implementation of the structure, all employees have the same opportunities for pay progression, regardless of their protected characteristic. 

## **h. Equality** 

MHM incorporates equal opportunities throughout its policies. These policies ensure that, in accordance with both current legislation and best practice, no service user, person employed or job applicant will be treated unfavourably by reason of their 'protected characteristic' as set out in the Equality Act 2010. 

## **i. Disability Confident Employer** 

MHM are privileged to be recognised as a Disability Confident Employer and this year it has been increased to Level 2 due to our consistent application of the commitments detailed within the award. This includes a guaranteed interview scheme for anyone with a disability whose application meets the minimum criteria for that post, and to always put in place any reasonable adjustments to ensure that applicants are treated fairly and safely within both the recruitment process and the working environment. Where employees disclose a disability during their employment, MHM will engage in consultation with them to determine whether any reasonable adjustments can be made and/or to consider any alternative roles available. 

Page 7 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Structure, governance and management (continued)** 

## **j. Employee engagement** 

As an accredited Investor in People (Silver Award) employer, MHM believes in recognising people’s skills and knowledge, and in developing its employees through learning and development. All employees have an agreed personal development plan to ensure that their learning and development is appropriate to both their role and their personal circumstances. 

MHM uses its intranet to be the source of all information regarding policy, procedure, news and other matters of concern to employees. 

Employees are consulted by their managers on matters directly affecting their employment and are consulted on an annual basis through an employee survey that enables them to give their views anonymously on matters ranging from leadership to rewards and benefits, in order to inform organisational development. An action plan ensures MHM acts on and responds to views received. Feedback is also sought through a range of other means including: pulse surveys, Investors in People annual survey, “Tea and Chat” sessions, task and finish groups as well as a number of professional networks. 

Feedback from employees informs our annual business plan for the organisation that demonstrates how strategic objectives will be achieved, helps employees understand how their role and their team's role contributes, and leads to employees taking ownership of the personal contribution they make towards the Charity's performance. This process, along with intranet updates and the reporting of key issues through regular manager meetings, service team meetings, and employee 1-1 meetings, ensures that a common awareness of financial and economic factors affecting performance is achieved. 

Further development of employee engagement is a key focus within our 2022/25 strategy and the introduction of the Hive Five platform has been welcomed by employees as a means of recognising their colleagues. 

## **Strategic report** 

## **Achievements and performance** 

## **a. Overview** 

During 2022, MHM engaged with a broad cross section of its stakeholders to inform the development of its three year strategic plan covering the period from 2022 to 2025. 

In implementing the annual business plan for 2023/24, MHM continued to deliver high quality services including: primary care psychological (talking) therapies; generic and mental-health-specific housing provision (from floating support through to registered care); recovery and employment services (including for people with mild to moderate anxiety disorders and/or depression, long term conditions, dual diagnoses and addictions); safe haven provision for people at risk of experiencing a mental health crisis; 365/24/7 telephone emotional support and teletherapy services; and advocacy, user voice, advice and information services. 

MHM continued to invest time and resource to retain and acquire new services across England, building on our strong brand for delivering high quality health and social care services alongside strategic partners. This has included commissioning independent reviews into our housing and employment services and completing a comprehensive review of our portfolio. Our focus is to respond to the changing needs of people in our communities by delivering evidence-based services and building trusted relationships with our service commissioners. 

Page 8 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## **b. Achievements and performance** 

MHM continues to be proud of the delivery of high-quality services focused on service users' recovery and wellbeing, and of successful bids for new services and the extension or renewal of existing services which allow MHM to expand its reach. 

MHM's focus for 2023/24 was on: 

- provision of high quality, sector leading services; 

- business development and growth; 

- a motivated and relevant workforce; and 

- system & process improvement. 

There have been many successes during the year, with contracts won to deliver new services and with many existing contracts extended. MHM's approach of devising bespoke delivery models suited to individual commissioners’ requirements, bidding for funds to deliver services based on a combination of MHM's areas of specialism, and seeking funding to deliver services in new markets, continues to prove effective. 

MHM has further grown its networks and partnerships, raising the Charity’s profile and seeking to influence policy at a national level. These networks have been built with organisations across health and social care and within the charity sector. Directors have engaged with activity at national, regional and local levels, participating in opportunities to work with the new Integrated Care Systems and the transformation of local community mental health services. 

Internal investment in our workforce resources has continued, adding new posts to our organisational structure and focusing on the development of management skills. 

During the year to March 2024: 

- over 43,000 people entered into psychological therapies in MHM or MHM Partner NHS Talking Therapies services; 

- our 365/24/7 Helpline service received over 94,000 calls and delivered 7,500 web chat and text messaging sessions; 

- our employment services helped over 4,400 people to remain in work, find paid employment or access training, education and volunteering opportunities; 

- our housing services supported 27 people to further enhance and develop their daily living skills, with three individuals successfully moving onto fully independent accommodation; 

- over 12,800 people were supported during crisis by our out-of-hours safe-haven services; 

- over 750 people accessed support from our Community Based services; 

- over 200 people accessed practical advice about benefits, debt and housing; 

- our advocacy services supported and empowered 32 people; and 

- we expanded our geographical reach into new areas. 

Page 9 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## **c. Quality and Operations in 2023/24** 

## 24/7 Helpline 

Our helpline continued to offer a confidential and non-judgemental space for individuals to receive emotional support from our highly skilled and compassionate team, responding to 94235 phone calls from people in distress through 2023/4. 

In April, we expanded our support for veterans through Op COURAGE, a specialised mental health service designed to help serving personnel transitioning out of the military, reservists, armed forces veterans and their families. Our Helpline became the first point of contact for people across the Midlands, Essex, and South West, connecting them with local partners. 

## NHS Talking Therapies Services in 2023/24 

- Our Talking Therapy services provide a comprehensive range of therapy and guided self-help to equip people with the tools and skills to manage common mental health problems. During 2023/4 43,130 people entered into talking therapies in MHM or MHM partner services. 

- NHS Talking Therapies Northumberland: MHM remains the prime contractor for this service, working with a subcontractor Sunderland Counselling Service (providing step 2 therapy and counselling). In its ninth year of delivery, the service had over 5,000 people entering treatment, met the national 18 week waiting list target and by the year end, achieved the national recovery target of 50%. 

- NHS Talking Therapies Sefton: MHM delivers this service as a sole provider, including therapy at steps 2- 4. The service had over 4,500 people entering treatment and met the national 18 week waiting list target throughout the year. 

- NHS Talking Therapies Warrington: MHM, as prime contractor, delivered therapy at steps 2-4 and clinical governance. MHM also sub-contracted additional provision on behalf of Warrington Clinical Commissioning Group through Making Space (computerised cognitive behavioural therapy) and St Joseph's Family Centre (for counselling, couples' therapy and anger management). The service had over 3,900 people enter treatment during 2023/4. 

- Staffordshire and Stoke-on-Trent Wellbeing Service: In collaboration with lead provider Midlands Partnership NHS Foundation Trust (MPFT) and other partners, met the national targets for waiting times and continued its involvement in the national programme of Talking Therapies expansion into long term conditions and medically unexplained symptoms. It continued to deliver step 2 services in four localities. Over 15,820 people entered treatment in the year. The recovery rate for the service exceeded the national target. 

- NHS Talking Therapies Durham and Darlington: MHM was a sub-contractor to Tees, Esk and Wear Valleys NHS Trust (TEWV) providing therapists, management and administration. Over 13,900 people entered treatment in the year. Waiting times for the service are within national targets and the recovery rate exceeds the national target. 

Page 10 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## Employment Services in 2023/24 

Our Employment Advisors provide flexible, personalised support focused on helping people to find, stay in or return to work. We worked in partnership with clinical commissioning groups, NHS Trusts, local authorities and voluntary sector organisations to deliver community-based employment support and Employment Advisors in NHS Talking Therapies services. 

At the start of 2024, we proudly launched two new Employment Advisors in Talking Therapies services in Solihull and Durham & Darlington. These services offer their communities valuable support including access to training programmes and help to speak to employers about mental health issues. Our existing services also celebrated achievements throughout the year. Our NHS Warrington Talking Therapies Employment Service marked its fifth anniversary in 2024, delivering over 10,000 appointments. 

In Hertfordshire, we were shortlisted by the Employment Related Services Association (ERSA) Awards, for the Digital Solution of The Year Award. This recognised the partnership between the service and Mid Essex Talking Therapies for the ground-breaking "Managing Employment and Emotional Wellbeing" webinar, designed to encourage people to access support. Through these efforts, we continue to make a significant impact on the lives of those struggling with mental health challenges, fostering a path to employment and improved quality of life. 

4,449 people were assisted to remain in work, find paid employment or access training, education and volunteering opportunities to help develop employability skills; 897 of these people moved into paid employment. 

## Community Services 

We continued to deliver community-based wellbeing services to over 768 individuals during the year. This included services across Leicestershire and Rutland and in Easington, County Durham, providing a variety of group interventions, advice and drop-in sessions as well as individual support. 

In our North West Leicester, Hinckley & Bosworth Mental Health, Wellbeing and Recovery Service, the team introduced new community drop-in sessions to provide wrap-around support and has developed partnerships with other community organisations to ensure people have ongoing support after their time with the service. 

In October, we opened our first Community Connectors service in Leicester, focused on the relationship between loneliness, isolation, and poor mental health. The launch event, held at Leicester City Football Club, with support from Leicester City in the Community, brought together over 70 people representing the City's charity sector, social care, and NHS services. Our range of services grew once more in November, with the opening of our Adult Autism Support Hub in Sheffield, providing information, advice and community connection to autistic people and their families and carers. 

Page 11 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## Crisis Services 

Throughout the year our safe haven services in Coventry (in partnership with Coventry & Rugby Clinical Commissioning Group, Devon (in partnership with Devon Partnership NHS Trust), Kent (in partnership with Kent & Medway Clinical Commissioning Group), York (commissioned by Tees Esk and Wear Valley NHS Foundation Trust), and East Berkshire, have expanded to offer support to the community seven days a week. Services also opened in Sheffield and Barnsley as well as neighbourhood cafes in 8 locations across Leicester. 

In July, our Devon Moorings site in Exeter moved to co-locate at Wonford House Hospital. In collaboration with Devon Partnership NHS Trust, we celebrated the opening of this new facility with a fantastic event that brought together partners from across the system. Following the success of this event, the team was delighted to welcome Sarah-Jane Marsh, National Director of Integrated Urgent and Emergency Care, to visit the service. 

## Housing Services in 2023/24 

The aim continues to be to ensure that wherever possible those accessing our housing services live as independently as they are able to, within their local community. During the year to March 2024, we continued to work with service users to support their recovery, providing accommodation and support to 27 individuals. 3 individuals moved into independent living. 

We undertook a review of our housing services to explore our strengths and highlight opportunities to innovate our models of support. Following this review, a decision was made to withdraw from two existing services and focus on the areas of dispersed and crisis housing. 

Page 12 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## **d. Development in 2023/24** 

MHM’s development team leads on the generation of new business opportunities, tendering for new contracts and retention of existing contracts, on relationship development and collaboration and on enhancing MHM’s profile. 

During the year to March 2024: 

- We rebranded our IAPT services in line with the national requirement to NHS Talking Therapies. 

- Our Employment Advisor in Talking Therapies coverage grew, with services mobilising in Solihull, Durham and Darlington, Mid and South East Essex and Northumberland. 

- Our support for Veterans and Serving Armed Forces personnel grew with partnerships with Avon and Wiltshire NHS Trust to deliver OpCOURAGE in the South West of the Country, Partnership with Essex Partnership University NHS Trust to deliver OpCOURAGE in the East and a third partnership in the Midlands with Lincolnshire NHS Trust to deliver the same single point of access to the OpCOURAGE initiative. 

- Our partnership with Avon and Wiltshire NHS Trust also extended to our Helpline providing the referral line for their Department of Health Gambling Harms programme. 

- Our Sheffield Support Hub also expanded their remit to offer a drop in information, advice and navigation service for Adults with Autism, ‘Sheffield Autism Hub’. 

- In August 2023 we launched our Community Connectors service in Leicester. A public health initiative covering some of the most deprived wards in Leicester, enabling people to build connections and overcome loneliness and isolation. 

- During the year we contributed to 3 Parliamentary Committees; Adult Social Care, Right Care Right Person Partnership and Men’s Health. 

- We contributed and our views were represented in the Major Conditions Strategy and the Labour Party Mental Health Review led by Luciana Berger. 

- We made eight website statements across the year including: Response to the Spring Budget (2024); Response to AACE letter on Right Care, Right Person, Response to the Autumn Statement (2023); Statement on the Major Conditions Strategy, Police and mental health (RCRP); Statement on the events at the NHS Confederation Expo; Statement on Government's Response to the Hewitt Review; Statement on Environment, Food and Rural Affairs Committee Report into Rural Mental Health. 

- In October 2023 we led a full Workforce conference in the North West, with over 400 employees in attendance. This 2 day event allowed employees to meet their colleagues across the country, be recognised for the innovative work they do and gain new and exciting insights into developments in mental health support. 

- As a team our Marketing and Communications and External Affairs colleagues delivered two campaigns in the year: University Mental Health Day and Homelessness (in partnership with The Connection). 

- In addition, we reviewed, re-designed and re-launched MHM’s external website - mhm.org.uk 

- MHM took part in its first Mass Participation event in 2023, Tough Mudder. At the outturn of the year we had exceeded our Fundraising targets and achieved £67,941 in year. 

Page 13 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## **e. Central Services in 2023/24** 

MHM’s central services sit within 4 directorates (People and Organisational Development, Finance & Risk, Development and Strategy and Performance), These directorates have an extensive portfolio of business support activities comprising of quality and compliance, board support, finance, human resources, learning and development, policy and procedural review, health and safety, information technology, information governance, transformation and innovation and development. 

During the year to March 2024 our corporate teams have: 

- successfully retained the CHAS health and safety accreditation; 

- successfully submitted MHM’s annual NHS Data Security and Protection Toolkit assessment by the 2023 deadline; 

- achieved Investors in People Silver; 

- successfully retained Disability Confident, Mindful Employer and Happy to Talk Flexible Working accreditation; 

- launched phase 1 of a new CRM system; 

- developed MHM’s Environmental Green Plan and established our Carbon Reduction Plan baseline with a net zero target of 2030; 

- piloted and implemented sector specific impact measurement tools in mental health support services; 

- completed a piece of research linked to older people accessing talking therapies; 

- implemented a volunteer framework; 

- revised MHM’s incident management framework in preparation for the implementation of PSIRF (Patient Safety Incident Reporting Framework); 

- introduced both an estates management and procurement function; 

- delivered 138 training sessions to over 1,180 people, enabling a better understanding of mental health and wellbeing and equipping people to help others in need of support – sessions included Mental Health First Aid, Youth Mental Health First Aid, Suicide Prevention and Trauma-Informed Approach; and 

- conducted an annual employee satisfaction survey in 2023, which had a 66% response rate. The results showed that employees are engaged and motivated to deliver the very best service to those people accessing our services and are proud to work for MHM. The survey allows for improvement areas which includes employee engagement, communication and management. 

Page 14 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## **f. Commissioners, funders and customers** 

MHM gratefully acknowledges the funding provided for its 2023/24 services by the following commissioners, organisations and customers: 

Avon and Wiltshire MHP NHST Combat Stress Cornwall Partnership NHS Foundation Trust Coventry and Warwickshire Partnership NHS Trust Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust Devon Partnership NHS Trust East Midlands Shared Services Essex Partnership University Gateshead Council Herefordshire and Worcestershire Health and Care NHS Trust Hertfordshire Partnership NHS Foundation Trust Home Group Management Ltd Karbon Homes Knowsley Council Leicester City Council Lincolnshire Partnership NHS Foundation Trust Livewell South West Making Space Merseycare NHS Foundation Trust Middlesbrough Council Middlesbrough Football Club Midlands Partnership NHS Foundation Trust NHS Cheshire and Merseyside ICB NHS Coventry and Warwickshire ICB NHS England NHS Frimley ICB NHS Humber and North Yorkshire NHS Kent and Medway ICB NHS Leicester, Leicestershire and Rutland ICB NHS North East & Cumbria ICB NHS South Sefton CCG NHS South Yorkshire ICB NHS Southport & Formby CCG Oxford Health NHS Foundation Penderels Trust Porchlight Solihull Metropolitan Borough Council South Tyneside Council Staffordshire University Tees Esk & Wear Valley NHS 

MHM also gratefully acknowledges the generous donations provided in 2023/24 by The Handley Trust and the Community Foundation, as well as a number of other individuals and organisations. 

Page 15 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## **g. Risk Management** 

MHM has a comprehensive risk management framework in place, and the Trustees and the Executive Team maintain a continuous review of the risks the Charity may face and the systems and procedures to mitigate and minimise any potential impact on the Charity should those risks materialise. 

MHM has reviewed the risks to achievement of its strategic objectives during the year to ensure they are fully integrated into the risk assessment, management and mitigation procedures. Risks are assessed within the following areas: strategic impact, market, commissioners, people who access MHM services, third party reliance, legal/regulatory, reputation, financial, IT/digital, information governance, and climate change/environmental. 

The Audit & Risk Committee, comprising suitably qualified and experienced trustees, meets four times per year, and receives reports from senior management. The Committee’s remit includes providing assurance to the Board that there are effective systems in place for financial and wider governance, including risk management and compliance with all aspects of the law, relevant regulations, and good practice. In addition, specific areas of risk to the Charity are monitored by the full Board of Trustees, including consideration of the issues related to identification, mitigation and elimination of the risk. 

The key risks facing the Charity were monitored and appropriately mitigated during the year. 

Page 16 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

## **h. Principal Risks and Uncertainties** 

The changes underway to mental health commissioning and the transformation of community mental health services are intended to improve care for service users, but they also present risks which MHM must manage closely. MHM aims to continue to influence and shape future commissioning and available resource through our networking and advocacy at local and national levels and anticipates being in a position to be responsive to the increased demand for mental health services and to the changes in commissioning. 

The principal risks and uncertainties facing the Charity are considered to be: 

- Attraction, retention, and development of an inclusive and diverse workforce to ensure we have the right skills in the right place at the right time to deliver our strategy. 

   - A People strategy has been implemented to establish MHM as an employer of choice: to attract and retain skilled and qualified workforce to engage, develop, motivate and empower our workforce. 

   - As the risk of harm to colleagues across the NHS continues to grow, a specialised training program has been developed and will be delivered to minimise any risk to our employees. 

   - Complexities being presented to our employees has enabled a full review and redesign of the Health and Wellbeing Strategy, which is underpinned by Trauma Informed training and personal wellbeing plans. 

- Changes in the commissioning environment (including availability of funding) and the need to ensure that we continue to be able to fulfil our commissioner proposition and our service standards. 

   - Our commissioner proposition and service standards are central to the contract mobilisation process, and specific risks are monitored initially through our assurance process for new contracts, then through contract management and monitoring of KPIs. 

   - Ongoing development of our management, our workforce and our organisational infrastructure is focused on the need to continue to deliver consistency of contract management, and influence and respond to the transformation of community mental health services. 

   - Our IT transformation programme includes a data workstream which aims to deliver more accurate and timely data to enhance both reporting to commissioners and ability to assess & respond to issues arising within services. 

- Our obligations, duty of care and safeguarding responsibilities to those who access MHM’s services and the importance of maintaining high quality, safe standards in our service delivery. 

   - Our services have well-developed relationships with local agencies with responsibility for safeguarding and care; we have policies and procedures in place for safe and effective work with those people who access MHM’s services, and for reporting, recording and responding to incidents, including safeguarding incidents; our employees are provided with induction, mandatory and role specific training, and ongoing development for the responsibilities of each post. Our Trustees receive appropriate governance refresher training. 

   - The Quality & Safeguarding Committee is embedded within MHM’s governance framework and is now providing board-level scrutiny of associated activity and risk. 

   - MHM have continued to use the services of an external subject matter expert to support the organisation in relation to its safeguarding responsibilities, including the delivery of training to MHM’s Board of Trustees. 

   - A Co-Production Strategy was developed during 2022/23 and began to play a key role in service development during 2023/24. 

Page 17 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **Strategic report (continued)** 

## **Achievements and performance (continued)** 

- Ensuring that IT systems and support are effective and do not compromise or disrupt the ability to deliver services safely and effectively, or prevent or delay the transformation of processes set out in the 2022-25 strategy. 

   - We have a third party managed service provider in place, with appropriate accreditation, ISO27001 and Cyber Essentials Plus, to ensure that our IT platforms are secure and resilient. 

   - IT arrangements are covered by our Business Continuity Plan and Disaster Recovery Plan, and we have proven ability to accommodate remote working. 

   - An IT audit and strategic review was carried out in late 2020, leading to the development of an IT Transformation Programme which is now close to conclusion; this has been reviewing and improving current systems; supporting, documenting and embedding best practice for MHM processes; enabling access to the right data for the right people at the right time; and supporting a move to cloud systems. A new CRM system has been introduced for services and to incorporate incident management. The review will now move on to Back Office systems during the coming year. 

## **Financial review** 

## **a. Financial review** 

MHM principal funding sources are shown in note 4 to the financial statements. There has been an 8% increase in incoming resources for the year, due to new services in talking therapies and community support and to expansion of existing employment and talking therapies services. 

The £193,702 surplus generated for the year reflects: 

- the growth in incoming resources; 

- rigorous control of costs; and 

- considerable savings on agency costs as the impact of our Compensation and Benefits review and a higher level of employees in established posts took effect. 

Included in the surplus generated in the year is unused 23-24 funding categorised as restricted for use in accordance with the commissioner’s intentions in future years. This amounts to £54,809. 

Following the Trustees' decision to leave the TPT Retirement Solutions pension scheme during 21-22, remaining estimated exit debts of £40,027 remain fully provided for within these accounts. There remains uncertainty about the final exit debt, due to a review of the application of rules by the administrator of this multi-employer scheme, for which the scheme Trustee is seeking court direction. Possible additional costs cannot be calculated at this time. However, MHM's advisors indicate that these will not be material. 

Governance costs amount to less than 0.5% of expenditure. 

Potential bad debts amounting to £7,503 were identified at 31 March 2024, and provision has been made for this amount. All other outstanding debts are considered recoverable. 

The cash position has fluctuated greatly throughout this year due to a combination of circumstances including the re-organisation of commissioners, and a tighter funding environment but the latter part of the 2023/24 saw some significant improvement in this. Cash balances continue to be monitored to ensure that they are adequate to support the Charity's aims and objectives; funds are held on notice deposits when not required for short term cashflow, and it is intended to undertake more proactive investment of cash balances during 2024/25. 

MHM's “overall business risk” is classified by a leading independent credit monitoring agency as low risk. 

Page 18 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

Major factors likely to affect the financial position of the Charity in 2024/25 are MHM's ability to design contemporary talking therapies and community services that meet the requirements of commissioners and other customers; to develop and sustain strong relationships with commissioners; to continue to respond effectively to commissioning through provider collaboratives and alliances; and to continue to develop a diverse portfolio of funding in order to mitigate the impact of contracts at risk. The Trustees are confident of MHM’s ability to achieve these goals, supported by continued investment in a robust workforce and infrastructure, and planning for a range of possible funding scenarios as part of MHM’s strategic planning in 2024/25 and beyond, particularly in light of current economic forecasting, including inflation. 

The Trustees have assessed MHM’s ability to continue as a going concern by reviewing budgets, reserves and cashflow forecasts, and the impact of a range of possible scenarios. This assessment demonstrated that in the worst-case scenario, MHM could sustain its status as a going concern over the next 12 months from the date of sign off of these financial statements. In support of this conclusion, financial performance in 2024/25 to date is ahead of budget. 

## **b. Investment Powers and Policy** 

The Trustees, having regard to the liquidity requirements of delivering the current services, and to the reserve policy set out below, have operated a policy of keeping available funds in interest-bearing accounts, and seek to diversify risk whilst achieving the highest possible return from investing in appropriate institutions. The invested funds held on deposit achieved an average of 4.45% during the year to 31 March 2024, but investing surplus cash generally proved more difficult during the year due to the wider fluctuations in the level of cash balances. 

Page 19 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **c. Reserves Policy and Going Concern** 

The Charity Commission expects trustees to decide, publish, implement and monitor their charity’s reserves policy in order to comply with their legal duties to: act in the interests of their charity and its beneficiaries; protect and safeguard the assets of their charity; act with reasonable care and skill; and ensure their charity is accountable. 

MHM Trustees review MHM’s policy on reserves held by the Charity at least annually in order to ensure that it complies with these Charity Commission requirements, supports the achievement of MHM’s strategic objectives, and remains appropriate for the economic environment, the health and social care sectors, and other relevant factors affecting MHM’s activities. 

The Trustees recognise that reserves are required in order to: 

- meet the continuing financial commitments of delivering commissioned services to beneficiaries, including the need for working capital so that liabilities incurred can be met as they fall due; and 

- invest in the development of facilities, services and business processes as necessary to ensure that MHM is compliant with regulatory requirements, aspire to develop and embed best practice in its ways of working, and respond to such new business opportunities as are identified. 

The financial obligations associated with MHM’s commissioned services tend to be aligned with the funding of those services. However it is important for MHM to hold reserves to cover financial obligations that are not directly funded, in order that those obligations can continue to be met if unforeseen circumstances lead to a reduction in incoming resources. The Trustees believe that free reserves are required to cover six months of projected central and infrastructure costs, plus an additional allowance agreed annually in order to be in a position to fund development activity as the need arises, including investment in facilities and adoption of best practice systems and procedures within the fields of health and social care. 

For the year 2024/25 the amount of free reserves required is assessed by the Trustees as £2.8m. This level of reserves allows for six months of central office costs (including enhanced central capacity to support organisational growth). It also allows for infrastructure development. 

MHM total reserves at 31 March 2024 amount to £4,824,663 and consist of: 

- restricted funds (subject to specific terms) of £385,021 (see note 18); and 

- unrestricted funds of £4,439,642 (see note 18). 

From unrestricted funds, the Trustees have designated an amount totalling £418,972 towards future projects. 

General funds therefore amount to £4,020,670. After deducting fixed assets and investments totalling £254,860, the value of free reserves available is £3,765,810, exceeding the required value. 

Compliance with this reserves policy will be monitored on an ongoing basis by the Audit & Risk Committee, which will report any non-compliance to the Board of Trustees in order that any corrective action required can be agreed. 

The Trustees have considered budgets to March 2024 and cashflow forecasts to September 2025. As noted above, MHM incoming resources have grown during the year. Costs remain under careful review, and the Trustees believe that the level of reserves available for 2024/25 is sufficient, and the net current assets and cash flow of the Charity are at such a level, that the Charity is able to operate for the foreseeable future, and that the going concern basis is appropriate for these financial statements. 

Close monitoring of reserves, along with relevant scenario planning, will continue in order to ensure that MHM’s financial strength is maintained. The degree of certainty over future funding streams will be kept under review, and the Trustees intend that MHM will continue to position itself as a provider and partner of choice, able to meet the opportunities presented by commissioners to meet the expected increased demand for mental health services, and to adapt delivery models to offer blended services which feature both digital and face-to-face delivery. 

Page 20 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024** 

## **d. Plans for future periods** 

The Trustees will be looking to establish a new strategic plan for the three years commencing April 2025. MHM’s priorities under its current strategy remain as previously set out and are: 

- Co-produced High-Quality Services - We will collaborate with those with lived experience to deliver accessible, impactful, high quality and innovative services that meet the needs of individuals, their families, carers and communities. 

- Engaged & Ambitious Workforce - We will develop a people culture underpinned by our values, that attracts, develops, rewards and retains a skilled, knowledgeable and diverse workforce. 

- Shaping Future Care & Support - We will influence and drive the transformation of care and support, through a holistic and locally tailored approach that delivers life changing impact. 

- Transforming How We Work - We will ensure that our processes, tools and resources are efficient, simple and user-friendly, to increase our reach, maximise our impact and help more people to achieve meaningful lives. 

## **Disclosure of information to auditor** 

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: 

- so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and 

- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information. 

## **Auditor** 

The auditor, Armstrong Watson Audit Limited, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. 

Approved by order of the members of the board of Trustees on    07/10/2024 and signed on their behalf by: 

Sally J Baines (Oct 7, 2024 13:12 GMT+1) 

**S J Baines** (Chair of Trustees) 

Page 21 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024** 

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report including the Strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

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

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102); 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

> Approved by order of the members of the board of Trustees on 07/10/2024 and signed on its behalf by: 

Sally J Baines (Oct 7, 2024 13:12 GMT+1) 

**S J Baines** (Chair of Trustees) 

Page 22 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF  MENTAL HEALTH MATTERS** 

## **Opinion** 

We have audited the financial statements of Mental Health Matters (the 'charitable company') for the year ended 31 March 2024 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

Page 23 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF  MENTAL HEALTH MATTERS (CONTINUED)** 

## **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 Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other 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. 

## **Opinion on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements. 

- the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements. 

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

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report. 

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

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

- certain disclosures of Trustees' remuneration specified by law are not made; or 

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

## **Responsibilities of trustees** 

As explained more fully in the Trustees' responsibilities statement, the Trustees on page 5 (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

Page 24 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF  MENTAL HEALTH MATTERS (CONTINUED)** 

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

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

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

- We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation. 

- We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance. 

- We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period. 

- The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition and management override of controls. 

- We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above. 

- We enquired of the directors and third-party advisors about actual and potential litigation and claims. 

- We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. 

- In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. 

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non detection of irregularities, as these may involve collusion, forgery, internal omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non compliance with laws and regulations and cannot be expected to detect all fraud and non compliance with laws and regulations. 

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

Page 25 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF  MENTAL HEALTH MATTERS (CONTINUED)** 

## **Use of our report** 

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. 

**Simon Turner (Senior statutory auditor)** for and on behalf of 

**Armstrong Watson Audit Limited** Chartered Accountants & Statutory Auditors Newcastle upon Tyne 

> Date: 07/10/2024 

Page 26 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024** 

|**Note**<br>**Income and**<br>**endowments from:**<br>Donations and legacies<br>Charitable activities<br>Investments<br>5<br>Other income<br>**Total income and**<br>**endowments**<br>**Expenditure on:**<br>Charitable activities<br>**Total expenditure**<br>**Net**<br>**income/(expenditure)**<br>Transfers between<br>funds<br>17<br>**Net movement in**<br>**funds**<br>**Reconciliation of**<br>**funds:**<br>Total funds brought<br>forward<br>Net movement in funds<br>**Total funds carried**<br>**forward**|**Unrestricted**<br>**funds**<br>**2024**<br>**£**<br>**67,959**<br>**23,970,392**<br>**26,530**<br>**37,565**<br>**24,102,446**<br>**23,629,471**<br>**23,629,471**<br>**472,975**<br>**127,369**<br>**600,344**<br>**3,420,326**<br>**600,344**<br>**4,020,670**|**Restricted**<br>**funds**<br>**2024**<br>**£**<br>**-**<br>**1,431,992**<br>**-**<br>**-**<br>**1,431,992**<br>**1,674,985**<br>**1,674,985**<br>**(242,993)**<br>**(92,341)**<br>**(335,334)**<br>**720,355**<br>**(335,334)**<br>**385,021**|**Designated**<br>**funds**<br>**2024**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**36,280**<br>**36,280**<br>**(36,280)**<br>**(35,028)**<br>**(71,308)**<br>**490,280**<br>**(71,308)**<br>**418,972**|**Total**<br>**funds**<br>**2024**<br>**£**<br>**67,959**<br>**25,402,384**<br>**26,530**<br>**37,565**<br>**25,534,438**<br>**25,340,736**<br>**25,340,736**<br>**193,702**<br>**-**<br>**193,702**<br>**4,630,961**<br>**193,702**<br>**4,824,663**|_Total_<br>_funds_<br>_2023_<br>_£_<br>_22,568_<br>_23,482,883_<br>_42,783_<br>_19,720_<br>_23,567,954_<br>_23,667,056_<br>_23,667,056_<br>_(99,102)_<br>_-_<br>_(99,102)_<br>_4,730,063_<br>_(99,102)_<br>_4,630,961_|
|---|---|---|---|---|---|



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

The notes on pages 30 to 52 form part of these financial statements. 

Page 27 



## **MENTAL HEALTH MATTERS (A company limited by guarantee) REGISTERED NUMBER: 1786914** 

## **BALANCE SHEET AS AT 31 MARCH 2024** 

|**Note**<br>**Fixed assets**<br>Intangible assets<br>12<br>Tangible assets<br>13<br>Investments<br>14<br>**Current assets**<br>Debtors<br>15<br>Cash at bank and in hand<br>Creditors: amounts falling due within one<br>year<br>16<br>**Net current assets**<br>**Total net assets**<br>**Charity funds**<br>Designated funds<br>17<br>Restricted funds<br>17<br>Unrestricted funds<br>17<br>**Total funds**|**4,637,649**<br>**1,882,863**<br>**6,520,512**<br>**(1,950,709)**|**2024**<br>**£**<br>**231,508**<br>**23,351**<br>**1**<br>**254,860**<br>**4,569,803**<br>**4,824,663**<br>**418,972**<br>**385,021**<br>**4,020,670**<br>**4,824,663**|_3,991,962_<br>_4,068,300_<br>_8,060,262_<br>_(3,553,235)_|_2023_<br>_£_<br>_33,969_<br>_89,964_<br>_1_|
|---|---|---|---|---|
|||||_123,934_<br>_4,507,027_|
||||||
|||||_4,630,961_|
|||||_490,280_<br>_720,355_<br>_3,420,326_|
||||||
|||||_4,630,961_|



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

> The financial statements were approved and authorised for issue by the Trustees on 07/10/2024 and signed on their behalf by: 

Sally J Baines (Oct 7, 2024 13:12 GMT+1) 

**S J Baines** 

(Chair of Trustees) 

The notes on pages 30 to 52 form part of these financial statements. 

Page 28 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024** 

|**Note**<br>**Cash flows from operating activities**<br>Net cash used in operating activities<br>20<br>**Cash flows from investing activities**<br>Disposal of tangible fixed assets<br>Purchase of intangible assets<br>Purchase of tangible fixed assets<br>Interest received<br>**Net cash (used in)/provided by investing activities**<br>**Change in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>21<br>The notes on pages 30 to 52 form part of these financial statements|**2024**<br>**£**<br>**(1,949,934)**<br>**978**<br>**(231,507)**<br>**(31,504)**<br>**26,530**<br>**(235,503)**<br>**(2,185,437)**<br>**4,068,300**<br>**1,882,863**|_2023_<br>_£_<br>_(760,815)_<br>_10,052_<br>_(8,463)_<br>_-_<br>_42,783_<br>**44,372**<br>**(716,443)**<br>_4,784,743_<br>_4,068,300_|
|---|---|---|



Page 29 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **1. General information** 

Mental Health Matters (the 'charitable company') is a charitable company limited by guarantee, incorporated in England and Wales. The registered office is Waterside House Wearfield, Sunderland Enterprise Park, Sunderland, Tyne and Wear, SR5 2TZ. 

The charity exists for the benefit of the public through the provision of its services to any member of the public who has mental or physical health needs. 

## **2. Accounting policies** 

## **2.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and Companies Act 2006. 

Mental Health Matters meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 

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

These accounts set out the results of the charitable company only. The trustees consider that the charitable company's subsidiary is not material to the group and so no consolidated accounts have been prepared in accordance with exemption under section 405 of the Companies Act. 

## **2.2 Company status** 

The charitable company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. The trustees are directors for the purposes of the Companies Act 2006. At 31 March 2024 there were nine members (2023: eight members). 

## **2.3 Going concern** 

FRS 102 requires that, if appropriate, the charitable company’s financial statements are prepared on the going concern basis, which means that the organisation is able to operate for the foreseeable future on the basis of known and reasonable projected resources. Cash flow forecasts have been prepared covering 12 months from the date of approval of the financial statements. Forecasts indicate that adequate cash and reserves will be available throughout the period under review, with no financing required. There are no material uncertainties in respect of the charity’s ability to continue as a going concern. Consequently, the trustees believe that the charity is well placed to manage its risks successfully and thus have adopted the going concern basis. 

Page 30 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **2. Accounting policies (continued)** 

## **2.4 Income** 

Incoming resources are recognised in the Statement of Financial Activities when the charity has entitlement to the funds; any conditions attached to the item(s) of income have been met; it is probable that the income will be received; and the amount can be measured reliably. 

## **Grants and contracted funding** 

Grants and contracted funding, including capital grants for the purchase of tangible fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they become receivable. Where the conditions of receipt have not yet been met, the income is transferred to deferred income in the balance sheet and recognised in the statement of financial activities in a future accounting period. 

## **Rental and support income** 

Rental and support income is recognised in full in the Statement of Financial Activities in the year in which it is receivable, net of any provision for arrears. Where rent and support income is received in advance for a future accounting period, the income is deferred and included in rents in advance and recognised in the Statement of Financial Activities in a future accounting period 

## **Interest receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. 

## **2.5 Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party; it is probable that settlement will be required; and the amount of the obligation can be measured reliably. Expenditure is all considered as expenditure on charitable activities, and is subdivided into the four main activities of the charity being employment services, community support and personalised services, housing services and talking therapies services. Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs include both the direct costs of providing services to the charity’s beneficiaries and an apportionment of support and governance costs. 

Support costs comprise the central management and support services. They have been apportioned between charitable activities as shown in note 7, based on the proportion of income within each charitable activity. 

Governance costs comprise all costs in connection with the strategic management of the charity and compliance with constitutional and statutory requirements. Specific costs on a particular charitable activity are included as such. Shared governance costs are apportioned based on time spent across each charitable activity. They have been apportioned between charitable activities as shown in note 7. 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. 

All expenditure is inclusive of irrecoverable VAT. 

Page 31 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **2. Accounting policies (continued)** 

## **2.6 Taxation** 

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

## **2.7 Intangible assets and amortisation** 

Intangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. 

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life. 

Amortisation is provided on the following basis: 

Computer software - % 10%-33% straight line 

## **2.8 Tangible fixed assets and depreciation** 

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. 

Page 32 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **2. Accounting policies (continued)** 

## **2.8 Tangible fixed assets and depreciation (continued)** 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. 

Depreciation is provided on the following bases: 

- Leasehold property 10%-33% straight line improvements - Fixtures, furniture and 10%-33% straight line equipment - Computer equipment 20%-33% straight line 

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. 

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities. 

## **2.9 Investments** 

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities. 

Investments in subsidiaries are valued at cost less provision for impairment. 

## **2.10 Debtors** 

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

## **2.11 Cash at bank and in hand** 

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

## **2.12 Liabilities and provisions** 

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. 

Page 33 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **2. Accounting policies (continued)** 

## **2.13 Financial instruments** 

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **2.14 Operating leases** 

## **The charity as a lessee** 

Rentals paid under operating leases are charged to the Statement of financial activities on a straightline basis over the lease term. 

## **The charity as a lessor** 

Rental income from assets leased under operating leases is recognised on a straight line basis over the term of the lease. 

## **2.15 Pensions** 

The charity participates in two multi-employer pension schemes for its employees. For both schemes, contributions are recognised as income and expenditure in the period to which they relate as there is insufficient information available to use defined benefit accounting. 

Where applicable, a liability is recognised for contributions arising from an agreement with the multiemployer plan that determines how the charity will fund a deficit. Contributions are discounted, at a rate according to FRS 102, when they are not expected to be settled wholly within 12 months of the period end. The unwinding of the discount rate is recognised as a finance cost. 

## **2.16 Fund accounting** 

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. 

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

Investment income, gains and losses are allocated to the appropriate fund. 

Page 34 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **3. Judgement in applying accounting policies and key sources of estimation uncertainty** 

The preparation of these financial statements require management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. 

Judgement and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. 

Critical accounting estimates and assumptions: 

## **(i) Useful economic lives of tangible assets** 

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property, plant and equipment and note 2.8 for the useful economic lives for each class of assets. 

## **(ii) Determining the exit value for commitments to a defined benefit pension scheme liability** 

The calculation of the exit value for commitments to a defined benefit pension scheme liability is subjective, due to the estimation uncertainty associated with the choice of actuarial assumptions used to determine the overall defined benefit pension scheme liability. Management uses an external actuarial expert to perform the calculation. 

Page 35 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **4. Income from charitable activities** 

||**Social Care**<br>**Employment**<br>**Services**|**Social Care**<br>**Employment**<br>**Services**|**Housing**<br>**Services**|**Talking**<br>**Therapies**|**Total**<br>**2024**|**Total**<br>**2023**|
|---|---|---|---|---|---|---|
||**£**|**£**|**£**|**£**|**£**|_£_|
|Grants & contracted<br>funding|5,720,795|2,387,044|143,263|16,884,329|**25,135,431**|_22,933,506_|
|Other income|-|-|266,953|-|**266,953**|_549,377_|
||5,720,795|2,387,044|410,216|16,884,329|**25,402,384**|_23,482,883_|
||||||||
|**Analysis by fund**|||||||
|Unrestricted funds|4,288,803|2,387,044|410,216|16,884,329|**23,970,392**||
|Restricted funds|1,431,992|-|-|-|**1,431,992**||
|Total|5,720,795|2,387,044|410,216|16,884,329|**25,402,384**||
|Analysis by fund|||||||
|**For the year ended**<br>**31 March 2023**|||||||
|Unrestricted funds|4,313,486|2,088,177|739,497|15,457,372||_22,598,532_|
|Restricted funds|884,351|-|-|-||_884,351_|



## **Grants and contracted funding** 

|Local authority funding<br>Health authority and NHS trust funding<br>Other charities & trusts<br>Client direct payments<br>Housing associations|**2024**<br>**£**<br>**798,133**<br>**23,482,648**<br>**689,553**<br>**-**<br>**165,097**<br>**25,135,431**|_2023_<br>_£_<br>_1,000,949_<br>_21,098,046_<br>_775,718_<br>_-_<br>_58,793_|
|---|---|---|
|||_22,933,506_|



## **5. Investment income** 

||**Unrestricted**|**Total**|_Total_|
|---|---|---|---|
||**funds**|**funds**|_funds_|
||**2024**|**2024**|_2023_|
||**£**|**£**|_£_|
|Bank interest|26,530|**26,530**|_42,783_|



Page 36 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

|**6.**|**Analysis of expenditure on charitable activities**|**Analysis of expenditure on charitable activities**|**Analysis of expenditure on charitable activities**|**Housing**<br>**Services**|**Talking**<br>**Therapies**|**Total**<br>**2024**|**Total**<br>**2023**|
|---|---|---|---|---|---|---|---|
|||**Social Care**|**Employment**<br>**Services**|||||
|||**£**|**£**|**£**|**£**|**£**|_£_|
||Staff salary costs|4,097,873|1,700,409|155,087|10,394,684|**16,348,053**|_15,731,244_|
||Other staff costs|238,989|33,273|24,604|1,605,700|**1,902,566**|_320,753_|
||Payments to<br>subcontractors|(1,929)|5,035|-|286,484|**289,590**|_1,259,024_|
||Property costs|372,444|15,558|127,382|608,738|**1,124,122**|_1,198,983_|
||Other operating<br>costs|426,972|60,327|22,936|981,714|**1,491,949**|_1,316,279_|
||Depreciation and<br>amortisation|10,151|336|-|37,167|**47,654**|_69,247_|
||Total|5,144,500|1,814,938|330,009|13,914,487|**21,203,934**|_19,895,530_|
|||||||||
||Share of support<br>costs (see note 7)|973,676|343,505|62,459|2,633,531|**4,013,171**|_3,688,802_|
||Share of governance<br>costs (see note 7)|29,995|10,582|1,924|81,130|**123,631**|_82,724_|
||**Total**|**6,148,171**|**2,169,025**|**394,392**|**16,629,148**|**25,340,736**|_23,667,056_|
|||||||||
||**Analysis by fund**|||||||
||Unrestricted funds|4,473,186|2,169,025|394,392|16,629,148|**23,665,751**||
||Restricted funds|1,674,985|-|-|-|**1,674,985**||
||Total|6,148,171|2,169,025|394,392|16,629,148|**25,340,736**||
|||||||||
||**For the year ended**<br>**31 March 2023**|||||||
|||||||||
||Unrestricted funds|4,195,979|1,931,949|1,038,697|15,786,626||_22,953,251_|
||Restricted funds|713,805|-|-|-||_713,805_|
||Total|4,909,784|1,931,949|1,038,697|15,786,626||_23,667,056_|



Page 37 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

|**Support costs**|**Support**<br>**costs**|**Governance**<br>**costs**|**2024**|**2023**|
|---|---|---|---|---|
||**£**|**£**|**£**|_£_|
|Staff salary costs|2,096,593|-|2,096,593|_1,911,929_|
|Other staff costs|345,490|-|345,490|_294,711_|
|Property costs|91,642|-|91,642|_71,446_|
|Other operating costs|1,429,312|-|1,429,312|_1,348,896_|
|Depreciation and amortisation|25,426|-|25,426|_20,288_|
|Legal fees|24,708|-|24,708|_41,531_|
|Staff costs|-|88,608|88,608|_59,986_|
|Professional fees|-|23,400|23,400|_13,995_|
|Office costs|-|9,063|9,063|_8,500_|
|Trustee meetings|-|2,560|2,560|_244_|
||4,013,171|123,631|4,136,802|_3,771,526_|
|Analysed as|||||



**8. Net movement in funds** 

Net movement in funds is stated after charging/(crediting): 

|||**2024**|_2023_|
|---|---|---|---|
|||**£**|_£_|
||Depreciation of owned tangible fixed assets|**68,804**|_102,025_|
||Amortisation of intangible assets|**20,774**|_2,965_|
||Operating lease charges - equipment|**-**|_9,642_|
||Operating lease charges - land and buildings|**817,098**|_614,909_|
|**9.**|**Auditor's remuneration**|||
|||**2024**|_2023_|
|||**£**|_£_|
||Fees payable to the Company's auditor for the audit of the Company's|||
||annual accounts|**15,375**|_13,995_|
||Fees payable to the Company's auditor in respect of:|||
||All non-audit services not included above|**4,125**|_3,750_|



Page 38 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **10. Staff costs** 

|Wages and salaries<br>Social security costs<br>Contribution to defined contribution pension schemes|**2024**<br>**£**<br>**16,487,555**<br>**1,481,571**<br>**564,015**<br>**18,533,141**|_2023_<br>_£_<br>_14,296,436_<br>_1,453,020_<br>_525,673_|
|---|---|---|
||||
|||_16,275,129_|



The average number of persons employed by the Company during the year was as follows: 

|Employment services<br>Community support and personalised services<br>Housing services<br>Talking therapies services<br>Administration and support|**2024**<br>**No.**<br>**57**<br>**194**<br>**6**<br>**251**<br>**56**<br>**564**|_2023_<br>_No._<br>_49_<br>_162_<br>_12_<br>_253_<br>_49_|
|---|---|---|
||||
|||_525_|



The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 

||**2024**|_2023_|
|---|---|---|
||**No.**|_No._|
|In the band £60,001 - £70,000|**2**|_3_|
|In the band £70,001 - £80,000|**2**|_-_|
|In the band £80,001 - £90,000|**2**|_1_|
|In the band £100,001 - £110,000|**1**|_-_|



The key management personnel of the charity comprise the chief executive officer and the executive team. The remuneration of key management personnel is as follows: 

||**2024**|_2023_|
|---|---|---|
||**£**|_£_|
|Aggregate compensation|**522,305**|_480,132_|



Page 39 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **11. Trustees' remuneration and expenses** 

The Trustees received no remuneration during the year _(2023: £NIL)_ and no Trustees received payment for professional or other services supplied to the charity _(2023: £NIL)_ . 

During the year, no Trustees received any remuneration or other benefits _(2023 - £NIL)_ . 

During the year ended 31 March 2024, travel expenses totalling _£_ 431 were reimbursed or paid directly to 2 Trustees _(2023 - £242 paid to 2 Trustees)_ . 

## **12. Intangible assets** 

|**Cost**<br>At 1 April 2023<br>Additions<br>Disposals<br>At 31 March 2024<br>**Amortisation**<br>At 1 April 2023<br>Charge for the year<br>On disposals<br>At 31 March 2024<br>**Net book value**<br>At 31 March 2024<br>_At 31 March 2023_|**Computer**<br>**software**<br>**£**<br>**581,104**<br>**231,507**<br>**(66,108)**<br>**746,503**<br>**547,135**<br>**33,968**<br>**(66,108)**<br>**514,995**<br>**231,508**<br>_33,969_|
|---|---|



The amortisation charge for the year is recognised within expenditure on charitable activities. 

There are no contractual commitments to acquire intangible assets at 31 March 2024 _(2023: £NIL)_ . 

Page 40 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **13. Tangible fixed assets** 

|**Cost or valuation**<br>At 1 April 2023<br>Additions<br>Disposals<br>At 31 March 2024<br>**Depreciation**<br>At 1 April 2023<br>Charge for the year<br>On disposals<br>At 31 March 2024<br>**Net book value**<br>At 31 March 2024<br>_At 31 March 2023_|**Long-term**<br>**leasehold**<br>**property**<br>**£**<br>**43,746**<br>**14,641**<br>**(43,746)**<br>**14,641**<br>**42,768**<br>**3,624**<br>**(42,768)**<br>**3,624**<br>**11,017**<br>_978_|**Fixtures and**<br>**fittings**<br>**£**<br>**324,015**<br>**-**<br>**(109,712)**<br>**214,303**<br>**299,020**<br>**23,429**<br>**(109,712)**<br>**212,737**<br>**1,566**<br>_24,995_|**Computer**<br>**equipment**<br>**£**<br>**797,372**<br>**16,863**<br>**-**<br>**814,235**<br>**733,381**<br>**70,086**<br>**-**<br>**803,467**<br>**10,768**<br>_63,991_|**Total**<br>**£**<br>**1,165,133**<br>**31,504**<br>**(153,458)**<br>**1,043,179**<br>**1,075,169**<br>**97,139**<br>**(152,480)**<br>**1,019,828**<br>**23,351**<br>_89,964_|
|---|---|---|---|---|



Page 41 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

|**14.**<br>**Fixed asset investments**<br>**Cost or valuation**<br>At 1 April 2023<br>At 31 March 2024<br>**Net book value**<br>At 31 March 2024<br>_At 31 March 2023_<br>**Principal subsidiaries**<br>The following was a subsidiary undertaking of the Company:<br>**Name**<br>**Principal activity**<br>Moorpark Limited<br>Dormant company<br>**15.**<br>**Debtors**<br>**2024**<br>**£**<br>**Due within one year**<br>Trade debtors<br>**3,854,442**<br>Amounts owed by group undertakings<br>**2,727**<br>Other debtors<br>**2,995**<br>Prepayments and accrued income<br>**777,974**<br>Other debtor arrears<br>**(489)**<br>**4,637,649**|**Investments**<br>**in**<br>**subsidiary**<br>**companies**<br>**£**<br>**1**<br>**1**<br>**1**<br>_1_<br>**Holding**<br>100%<br>_2023_<br>_£_<br>_2,113,634_<br>_2,727_<br>_5,677_<br>_1,860,185_<br>_9,739_<br>_3,991,962_|
|---|---|



Page 42 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **16. Creditors: Amounts falling due within one year** 

|Trade creditors<br>Other taxation and social security<br>Deferred income<br>Other creditor arrears<br>Other creditors and accruals<br>Provision for pension contributions<br>Deferred income at 1 April<br>Resources deferred during the year<br>Amounts released from previous periods<br>**Deferred income at 31 March**|**2024**<br>**£**<br>**464,728**<br>**349,493**<br>**355,946**<br>**1,304**<br>**644,563**<br>**134,675**<br>**1,950,709**<br>**2024**<br>**£**<br>**1,466,655**<br>**276,226**<br>**(1,386,935)**<br>**355,946**|_2023_<br>_£_<br>_318,458_<br>_308,520_<br>_1,466,655_<br>_1,472_<br>_1,333,727_<br>_124,403_<br>_3,553,235_<br>_2023_<br>_£_<br>_2,050,178_<br>_813,234_<br>_(1,396,757)_<br>_1,466,655_|
|---|---|---|



Page 43 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **17. Statement of funds** 

## **Statement of funds - current year** 

|**Unrestricted funds**<br>General funds<br>**Designated funds**<br>Designated funds<br>**Restricted funds**<br>Central<br>Employment services<br>Community support and<br>personalised services<br>**Total of funds**|**Balance at 1**<br>**April 2023**<br>**£**<br>**3,420,326**<br>**490,280**<br>**125,032**<br>**82,272**<br>**513,051**<br>**720,355**<br>**4,630,961**|**Income**<br>**£**<br>**24,102,446**<br>**-**<br>**-**<br>**-**<br>**1,431,992**<br>**1,431,992**<br>**25,534,438**|**Expenditure**<br>**£**<br>**(23,629,471)**<br>**(36,280)**<br>**-**<br>**-**<br>**(1,674,985)**<br>**(1,674,985)**<br>**(25,340,736)**|**Transfers**<br>**in/out**<br>**£**<br>**127,369**<br>**(35,028)**<br>**-**<br>**(82,272)**<br>**(10,069)**<br>**(92,341)**<br>**-**|**Balance at**<br>**31 March**<br>**2024**<br>**£**<br>**4,020,670**|
|---|---|---|---|---|---|
||||||**418,972**|
||||||**125,032**<br>**-**<br>**259,989**|
||||||**385,021**|
||||||**4,824,663**|



During the prior year management determined that separate disclosure of designated funds on the face of the Statement of Financial Activities provided the user of the accounts with a clearer and true and fair view of the activities and performance of the Charity. They amended the presentation of the Statement of Financial Activities to reflect that in the prior year. Management have considered this presentation for the financial year and determine that it is remains appropriate to maintain this presentation. Management will continue to annually consider the appropriateness of this presentation. 

Page 44 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **17. Statement of funds (continued)** 

## **Statement of funds - prior year** 

|**Unrestricted funds**<br>General funds<br>**Designated funds**<br>Designated funds<br>**Restricted funds**<br>Central<br>Employment services<br>Community support and<br>personalised services<br>**Total of funds**|_Balance at_<br>_1 April 2022_<br>_£_<br>_3,419,924_<br>_760,330_<br>_125,032_<br>_82,272_<br>_342,505_<br>_549,809_<br>_4,730,063_|_Income_<br>_£_<br>_22,683,603_<br>_-_<br>_-_<br>_-_<br>_884,351_<br>_884,351_<br>_23,567,954_|_Expenditure_<br>_£_<br>_(22,543,201)_<br>_(410,050)_<br>_-_<br>_-_<br>_(713,805)_<br>_(713,805)_<br>_(23,667,056)_|_Transfers_<br>_in/out_<br>_£_<br>_(140,000)_<br>_140,000_<br>_-_<br>_-_<br>_-_<br>_-_<br>_-_|_Balance at_<br>_31 March_<br>_2023_<br>_£_<br>_3,420,326_|
|---|---|---|---|---|---|
||||||_490,280_|
||||||_125,032_<br>_82,272_<br>_513,051_|
||||||_720,355_|
||||||_4,630,961_|



Page 45 



## **MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **18. Summary of funds** 

## **Summary of funds - current year** 

|General funds<br>Designated funds<br>Restricted funds|**Balance at 1**<br>**April 2023**<br>**£**<br>**3,420,326**<br>**490,280**<br>**720,355**<br>**4,630,961**<br>_Balance at_<br>_1 April 2022_<br>_£_<br>_3,419,924_<br>_760,330_<br>_549,809_<br>_4,730,063_|**Income**<br>**£**<br>**24,102,446**<br>**-**<br>**1,431,992**<br>**25,534,438**<br>_Income_<br>_£_<br>_22,683,603_<br>_-_<br>_884,351_<br>_23,567,954_|**Expenditure**<br>**£**<br>**(23,629,471)**<br>**(36,280)**<br>**(1,674,985)**<br>**(25,340,736)**<br>_Expenditure_<br>_£_<br>_(22,543,201)_<br>_(410,050)_<br>_(713,805)_<br>_(23,667,056)_|**Transfers**<br>**in/out**<br>**£**<br>**127,369**<br>**(35,028)**<br>**(92,341)**<br>**-**<br>_Transfers_<br>_in/out_<br>_£_<br>_(140,000)_<br>_140,000_<br>_-_<br>_-_|**Balance at**<br>**31 March**<br>**2024**<br>**£**<br>**4,020,670**<br>**418,972**<br>**385,021**|
|---|---|---|---|---|---|
||||||**4,824,663**|
||||||_Balance at_<br>_31 March_<br>_2023_<br>_£_<br>_3,420,326_<br>_490,280_<br>_720,355_|
|**Summary of funds - prior year**||||||
|General funds<br>Designated funds<br>Restricted funds||||||
||||||_4,630,961_|



Page 46 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **19. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current period** 

|**Unrestricted**<br>**funds**<br>**2024**<br>**£**<br>Tangible fixed assets<br>23,351<br>Intangible fixed assets<br>231,508<br>Fixed asset investments<br>1<br>Current assets<br>5,716,519<br>Creditors due within one year<br>(1,950,709)<br>**Total**<br>4,020,670<br>**Analysis of net assets between funds - prior period**<br>_Unrestricted_<br>_funds_<br>_2023_<br>_£_<br>Tangible fixed assets<br>_89,964_<br>Intangible fixed assets<br>_33,969_<br>Fixed asset investments<br>_1_<br>Current assets<br>_6,849,627_<br>Creditors due within one year<br>_(3,553,235)_<br>**Total**<br>_3,420,326_|**Restricted**<br>**funds**<br>**2024**<br>**£**<br>-<br>-<br>-<br>385,021<br>-<br>385,021<br>_Restricted_<br>_funds_<br>_2023_<br>_£_<br>_-_<br>_-_<br>_-_<br>_720,355_<br>_-_<br>_720,355_|**Designated**<br>**funds**<br>**2024**<br>**£**<br>-<br>-<br>-<br>418,972<br>-<br>418,972<br>_Designated_<br>_funds_<br>_2023_<br>_£_<br>_-_<br>_-_<br>_-_<br>_490,280_<br>_-_<br>_490,280_|**Total**<br>**funds**<br>**2024**<br>**£**<br>**23,351**<br>**231,508**<br>**1**<br>**6,520,512**<br>**(1,950,709)**<br>**4,824,663**<br>_Total_<br>_funds_<br>_2023_<br>_£_<br>_89,964_<br>_33,969_<br>_1_<br>_8,060,262_<br>_(3,553,235)_<br>_4,630,961_|
|---|---|---|---|
|**Analysis of net assets between funds - prior**||||
|Tangible fixed assets<br>Intangible fixed assets<br>Fixed asset investments<br>Current assets<br>Creditors due within one year<br>**Total**||||



Page 47 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **20. Reconciliation of net movement in funds to net cash flow from operating activities** 

|Net income/expenditure for the period (as per Statement of Financial<br>Activities)<br>**Adjustments for:**<br>Depreciation and impairment of tangible fixed assets<br>Amortisation and impairment of intangible assets<br>Investment income recognised in statement of financial activities<br>(Increase) in debtors<br>Increase in creditors<br>(Decrease) in deferred income<br>**Net cash used in operating activities**<br>**21.**<br>**Analysis of cash and cash equivalents**<br>Cash in hand<br>**Total cash and cash equivalents**<br>**22.**<br>**Analysis of changes in net debt**<br>**At 1 April**<br>**2023**<br>**£**<br>Cash at bank and in hand<br>**4,068,300**|**2024**<br>**£**<br>**193,702**<br>**97,139**<br>**33,968**<br>**(26,530)**<br>**(645,687)**<br>**(491,817)**<br>**(1,110,709)**<br>**(1,949,934)**<br>**2024**<br>**£**<br>**1,882,863**<br>**1,882,863**<br>**Cash flows**<br>**£**<br>**(2,185,437)**|_2023_<br>_£_<br>_(99,102)_<br>_118,551_<br>_20,774_<br>_(42,783)_<br>_(483,692)_<br>_308,960_<br>_(583,523)_<br>_(760,815)_<br>_2023_<br>_£_<br>_4,068,300_<br>_4,068,300_<br>**At 31 March**<br>**2024**<br>**£**<br>**1,882,863**|
|---|---|---|



Page 48 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **23. Pension commitments** 

## **Defined contribution scheme** 

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £435,576 _(2023: £376,167)_ . Contributions of £76,741 _(2023: £66,800)_ were payable to the fund at the balance sheet date and are included in creditors. 

## **Defined benefit schemes** 

The charity participated in two multi-employer pension plans, being TPT Retirement Solutions’ Growth Plan (formerly the Pensions Trust’s Growth Plan) and the NHS Pension Scheme. The assets of the schemes are held separately from those of the charity in independently administered funds. 

The contributions payable by the charity charged to income and expenditure amounted to: 

|The Growth Plan<br>NHS Pension Scheme|**2024**<br>**£**<br>**-**<br>**128,587**<br>**128,587**|_2023_<br>_£_<br>_1,708_<br>_160,723_|
|---|---|---|
|||_162,431_|



Expenditure on pensions is allocated to service line according to staff time. Costs are split between restricted and unrestricted based upon project specific cost accounting. Contributions totalling £17,907 _(2023: £17,229)_ were payable to the funds at the year end and are included in creditors. 

Page 49 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **NHS Pension Scheme** 

The NHS Pension Scheme ('the scheme') is an unfunded, multi-employer defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable participating bodies to identify their share of the underlying Scheme assets and liabilities. Therefore, the Scheme is accounted for as if it were a defined contribution scheme: the cost to the charity of participating in the Scheme is taken as equal to the contributions payable to the Scheme for the accounting period. 

At the balance sheet date there were 26 active members of the Scheme employed by the charity. The Scheme is not open to new employees unless they are transferred under TUPE agreements from an NHS Foundation Trust. 

The Scheme has a number of different benefit structures. For the 1995 section annual pensions are normally based on 1/80th of the best of the last 3 years' pensionable pay for each year of service; for the 2008 section annual pensions are normally based on 1/60th of the average of the best three consecutive years' pensionable pay in the final ten years of service for each year of service; for the 2015 section, which is a career average revalued earnings scheme, annual pensions are based on 1/54th of each year's pensionable pay. 

Members of the 1995 section normally receive a lump sum on retirement of three times their annual pension. Members of the 2008 and 2015 sections receive a lump sum which may be a maximum of 25% of the value of their pension at retirement, their choice subsequently affecting the level of annual pension due. In all cases, the lump sum available is subject to a maximum amount permitted under HMRC rules. Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971, and are based on changes in the Consumer Price Index in the twelve months ending 30 September in the previous calendar year. 

On death, a pension of 50%, 37.5% or 33.75% of the member's pension is normally payable to the surviving spouse, civil partner or nominated partner. The percentage payable depends on whether the member was in the 1995, 2008 or 2015 section. In addition, each section provides for a lump sum payable on death. 

The Scheme is subject to a full actuarial valuation every four years, and an FRS 102 accounting valuation every year. At the conclusion of the 2016 full valuation the Scheme actuary reported that employer contributions should increase to 20.6% from 14.3% from April 2019. In addition, employers are required to pay a scheme administration levy of 0.08% of pensionable pay. For the 2019-20, 2020-21 and 2021-22 scheme years, employers were responsible for paying 14.38% of contributions, with the remaining 6.3% being funded centrally. 

The valuation of scheme liability in accordance with FRS 102 is carried out annually by the Scheme Actuary. The latest assessment of the liabilities of the Scheme is contained in the Scheme Actuary report, which forms part of the NHS Pension Scheme Annual Accounts, published annually. These accounts can be viewed on the NHS Pensions website. 

## **TPT Retirement Solutions’ Growth Plan** 

TPT Retirement Solutions’ Growth Plan (‘the Plan’) is funded and was not contracted out of the state scheme. Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from Normal Retirement Date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity. For contributions from November 2012 the capital guarantee was removed. 

It is not possible in the normal course of events to identify the share of underlying assets and  liabilities belonging to individual participating employers. The Plan is a multi-employer scheme, where the assets are co-mingled for investment purposes, and benefits are paid out of the Plan’s total assets. Therefore, 

The Plan is accounted for as if it were a defined contribution scheme. The cost to the charity of participating in the Plan is taken as equal to the contributions payable to the Plan for the accounting period. 

Page 50 



**MENTAL HEALTH MATTERS** 

## **(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

There is a potential debt on the employer that would be levied by the trustee of the Plan in the event of the employer ceasing to participate in the Plan or the Plan winding up. The debt for the Plan as a whole is calculated by comparing the liabilities for the Plan (calculated on a buyout basis i.e. the cost of securing guaranteed benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Plan. If the liabilities exceed assets there is a buy-out debt. 

The leaving employer's share of the buy-out debt is the proportion of the Plan's liability attributable to employment with the leaving employer compared to the total amount of the Plan's liabilities (relating to employment with all the currently participating employers). The leaving employer's debt therefore includes a share of any 'orphan' liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time. 

When an employer withdraws from a multi-employer defined benefit pension scheme which is in deficit, the employer is required by law to pay its share of the deficit, calculated on a statutory basis (known as the buy-out basis). The Plan is a "last man standing" multi-employer scheme. This means that if a withdrawing employer is unable to pay its debt on withdrawal the liability is shared amongst the remaining employers. The participating employers are therefore jointly and severally liable for the deficit in the Plan. 

During 2021/22 the trustees carefully considered the pros and cons of opting to withdraw from the TPT Retirement Solutions’ Growth Plan scheme and decided to do so with effect from 30 September 2021. 

At the balance sheet date there were 0 active members of the Plan employed by the charity. The charity no longer offers membership of the Plan to its employees. 

Following the Trustees' decision to leave the TPT Retirement Solutions pension scheme during 2021-22, remaining estimated exit debts of £40,027 remain fully provided for within these accounts. There remains uncertainty about the final exit debt, due to a review of the application of rules by the administrator of this multi-employer scheme, for which the scheme Trustee is seeking court direction. Possible additional costs can not be calculated at this time. However, MHM’s advisors indicate that these will not be material. 

There are potential additional liabilities associated with an ongoing review of the way in which changes to benefits have  been implemented. The Scheme Trustee is seeking court directions on how to interpret the rules. Until this matter is resolved, it is not possible to assess with any degree of certainty the likelihood or value of additional liabilities. However, the trustees do not expect these to be material. 

Page 51 



**MENTAL HEALTH MATTERS** 

**(A company limited by guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024** 

## **24. Operating lease commitments** 

The charity as a lessee: 

At 31 March 2024 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows: 

|Within 1 year<br>Between 1 and 5 years|**2024**<br>**£**<br>**693,269**<br>**1,131,442**<br>**1,824,711**|_2023_<br>_£_<br>_332,763_<br>_98,627_|
|---|---|---|
||||
|||_431,390_|



The charity as a lessor: 

The charity has a large number of tenancy agreements with tenants utilising the services of the charity. The lease agreements have varying terms, however all leases are cancellable as the intention of the charity is that tenants vacate premises once they are recovered. 

At the year end, the charity had no contracts with tenants under non-cancellable operating leases. 

## **25. Related party transactions** 

During the year the Charity entered into transactions with the following related parties: 

- P Rolland, trustee, who is employed as a programme lead for Health Education England, which provides funding for clinical trainees in talking therapy services; 

- J Lanham, trustee, whose husband is employed by Combat Stress UK, with whom the charity has a contract for community support services; and 

- C Kaplan, trustee, who is International Director at Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust, with whom the charity has contracts for talking therapy services 

No related party has had any involvement in the delivery of the services nor have they had any involvement in decision making in relation to the contracts in question. 

The income generated by MHM in the year from each of these contractual arrangements with related parties is as follows: 

|Health Education England<br>Combat Stress<br>Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust|**2024**<br>**£**<br>**768,013**<br>**261,999**<br>**5,409,731**<br>**6,439,743**|_2023_<br>_£_<br>_350,743_<br>_777,075_<br>_-_|
|---|---|---|
|||_1,127,818_|



Page 52 



## 58338 - 2024-03-31 - Mental Health Matters - Final Accounts as at 20.09.24 

## Final Audit Report 

2024-10-07 

Created: 2024-10-07 By: Christopher Knight (Christopher.Knight@armstrongwatson.co.uk) Status: Signed Transaction ID: CBJCHBCAABAA-bfEdsPNG9TjvhiAUb2jUg6F-FNEYlDp 

## "58338 - 2024-03-31 - Mental Health Matters - Final Accounts as at 20.09.24" History 

- Document created by Christopher Knight (Christopher.Knight@armstrongwatson.co.uk) 

2024-10-07 - 11:41:32 GMT- IP address: 212.219.68.253 

## Document emailed to sallyjbaines@icloud.com for signature 

2024-10-07 - 11:44:42 GMT 

## Email viewed by sallyjbaines@icloud.com 

2024-10-07 - 12:09:56 GMT- IP address: 176.249.74.234 

- Signer sallyjbaines@icloud.com entered name at signing as Sally J Baines 

2024-10-07 - 12:12:57 GMT- IP address: 176.249.74.234 

- Document e-signed by Sally J Baines (sallyjbaines@icloud.com) 

Signature Date: 2024-10-07 - 12:12:59 GMT - Time Source: server- IP address: 176.249.74.234 

Document emailed to Simon Turner (simon.turner@armstrongwatson.co.uk) for signature 2024-10-07 - 12:13:01 GMT 

## Email viewed by Simon Turner (simon.turner@armstrongwatson.co.uk) 

2024-10-07 - 12:36:06 GMT- IP address: 154.29.100.160 

## Document e-signed by Simon Turner (simon.turner@armstrongwatson.co.uk) 

Signature Date: 2024-10-07 - 12:36:25 GMT - Time Source: server- IP address: 62.89.150.154 

## Agreement completed. 

2024-10-07 - 12:36:25 GMT