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2021-03-31-accounts

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2021

Registered Charity Number: 801259 Registered Company Number: 02257523

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

FOR THE YEAR ENDED 31 MARCH 2021

INDEX Page
Reference and administrative information 2
Trustees' Report 3-10
Auditor's Report 11-13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17-31

1

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 MARCH 2021

Board of Trustees Zak Hulstrom
Julie Pal Chair
Henal Parmar
Tamara Quinn
Kate Sherratt
Deborah St Clair-Thomas Resigned October 2020
Kris Stromdale Treasurer
Gary Redhead Appointed July 2020
Chief Executive Benn Keaveney
Company registration no. 02257523
Charity registration no. 801259
Registration office 309 Lillie Road
London
SW6 7LL
Auditors Sayer Vincent LLP
Invicta House
108 – 114 Golden Lane
London
EC1Y 0YL
Bankers National Westminster Bank PLC
25 Shepherds Bush Green London
W12 8PR
HSBC PLC
Hammersmith Commercial Banking Centre
2nd Floor Space One
1 Beadon Road
Hammersmith London
W60EA
Solicitors Anthony Collins Solicitors LLP
134 Edmund Street
Birmingham
B3 2ES

2

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Board of Trustees, who act as Directors of the Charity for the purposes of Company Law, and Trustees for charity law purposes, submit their Annual Report and the Financial Statements of Hammersmith and Fulham Association for Mental Health for the year ended 31 March 2021. The Board of Trustees confirm that the Annual Report and Financial Statements of the Charity comply with current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice for Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)-Charities SORP FRS102.

Objects

The objects of the Association are:

  1. To work for and promote the preservation and safeguarding of mental health and the prevention and treatment of mental disorders among both adults and children; and

  2. To work for and promote the study of research into mental health and mental disorders and to obtain and make records of and disseminate information concerning the same.

Activities

We are able to meet our objects through a combination of service provision and strategic influencing. Our wide range of services consists of activities which preserve, promote and safeguard individuals' mental health. Some examples of these services are health promotion with young people in schools, training in the workplace, or community-based activities such as advocacy, advice and information. Our work in strategic influencing further reaches object 1) by putting the voices of people with mental health problems, and our own professional opinions into a wide variety of settings where the design and delivery of services can be influenced for the betterment of people with mental health problems. It is through this work that we are able to meet object 2) by Influencing commissioning bodies and the West London Transformation Board.

Public Benefit

The Association provides services to benefit those with mental health problems. People with serious mental health issues are one of the most excluded groups in society with an employment rate below 20%. Around 1 in 4 of the population will have a mental health problem at some time in their life and stress is the leading cause of workplace sickness. Around a third of all GP time is taken up seeing people with mental health problems.

Mental health problems can have a devastating effect on peoples' lives and the goals of the Association are both to prevent mental health problems escalating where this can be avoided and supporting recovery if the mental health problem has become serious. Our projects are in 3 categories:

  1. Preventing mental health problems escalating. These are of public benefit in preventing unnecessary distress for those affected, avoiding unnecessary expenditure in the health and benefits systems and improving the efficiency of the workplace by reducing sickness and staff turnover. Relevant services are:

  2. Education in schools on mental health for both pupils and teaching staff;

  3. Workplace Training.

  4. Supporting people with mental health problems through the secondary mental health system. These are of public benefit in improving the quality of services delivered and aiding recovery through service users having a voice to influence what happens to them. Relevant services are:

  5. Advocacy

  6. Education in schools on mental health

3

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH

(Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

All services are carefully risk-assessed to avoid doing harm. In addition, service users are involved as far as possible in every aspect of the organisation's activity to ensure services meet their needs. All projects are in line with our objects.

Our workplace training is a service provided to organisations and for which we charge a fee. This income allows us to increase the support we provide to people across the organisation in line with our objectives.

The Board of Trustees confirm that they have referred to the guidance contained in the Charity Commission's guidance on public benefit when reviewing the Association's objectives and in planning activities for the year and future periods.

Achievements and Performance

Covid and its long term affect continues to have a profound impact on the communities we serve. As part of the wider Mind Federation organisation, we are sharing data with other local Minds in the London area. This research is highlighting that the cases we are dealing with have increased in complexity for many individuals and we are now dealing with high levels of trauma which includes suicide prevention for adults and children.

Prior to the Covid crisis, 2019/20 saw Hammersmith and Fulham Mind merge with Ealing and Hounslow Mind to form Hammersmith, Fulham, Ealing and Hounslow Mind. The merged organisation has move ahead on many fronts, the charity has grown in size, reach and influence. Through our diverse range of services, we have impacted over 6,000 people with mental health problems. These services continued during the crisis and we are bringing them back into a non-virtual way of working as quickly as restrictions allow.

In response to the Covid crisis, the charity was able to put in place a contingency plan to move its workforce to a home setting with the minimum of disruption to our service users. Commissioners, partners and service users were informed and our teams continue to provide a service virtually. Since the relaxation in the guidance our work is reverting to a combination of face to face and virtual work. Our research shows that in relation to young people, there is a real need to get back to face to face work and we are planning our ‘hubs’ accordingly so we can where possible, offer a one stop shop range of services to prevent clients being referred to multi- agencies in different locations.

Our ability to adapt to the crises enabled us to accelerate our digital presence as clearly illustrated through the development and launch of our TV channel (My-Mind TV) for preventative work on mental health wellbeing, particularly with young people. Since its launch we are looking to extend our reach through targeting other vulnerable communities and expand through partnership with other likeminded organisations. We will continue this but blend it with a face to face offer.

Following the successful transfer of Mind in Ealing and Hounslow, the creation of a new business structure with a new board and chair, the organisation (covering the three boroughs of Hammersmith and Fulham, Ealing and Hounslow) has now formed collaborations with other local Minds in the North West London region. This matches the new commissioning areas as part of the NHS 10 year plan.

4

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

The Association is an affiliate of a network of local Mind associations, led by National Mind, the national campaigning organisation. Our organisation is also a member of Mind In London, a pan London Mind organisation.

Youth Services

Youth services is made up of three comprehensive and diverse teams built upon the foundations of the wellbeing advice and successful implementation of a trailblazer pilot and an additional second trailblazers contract. Youth services safely and effectively deliver a wide range of innovative clinical, non-clinical and digital mental health support to children, young people, parents, careers and school staff across, Hammersmith, Fulham, Kensington, Chelsea and North of Westminster.

Mental health support (age 16 – 25):

The Wellbeing Advice Service is a non-clinical preventative and early-intervention service providing one-toone practical mental health and wellbeing support to students in schools and colleges across Westminster, Kensington and Chelsea and Hammersmith and Fulham.

The Wellbeing Advice Service has been specifically designed for students transitioning into adulthood, aged 16-25. Transitions into adulthood has been identified as a particularly difficult time for young people with mental health problems. Specifically, the transition from child mental health services to adult mental health services can be disruptive and can lead to support being withdrawn or not taken up.

The Wellbeing Advice Service teaches young people practical strategies for supporting their mental health

School based support (age 5-18)

The two Mental Health Support Teams (MHST) work in schools focuses on early intervention, based on well stablished principles. The team is made up of specialist Clinicians, Education mental health Practitioners (EMHP’S) and a Whole School Approach Coordinator.

To enhance our provision in January 2021 two new key roles were introduced:

Employment and in Education

In March 2021 funding was obtained from the Shaw Trust to deliver an employment “Working Well” programme. The programme is delivered by the Wellbeing Team and provides young people and adults with practical mental health and well-being support who are looking to find and sustain work through the Shaw Trust Work & Health Programme.

Adult Services

After a period of consolidation and quality improvement, Adult Services now boasts a total of ten services ranging from being both clinical and non-clinical in nature. Adult Service delivers a diversified service and the addition of the Crisis Alternative Project (Safe Space) in April 2021 will provide stability to the service we provide. Projects run during and after working hours and are spread across the tri-borough. Our services now include:

5

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

Through demonstrating impact, we have been able in find continuation funding for many of our projects. In addition, through nurturing relationships we have put together successful proposals taken forward by partners, highlighting key gaps in provision increasing our offer.

Training and Consultancy

Unfortunately, most of the past year has been affected by COVID. The initial lockdown saw everything planned training being cancelled. Over the year it has been challenging to rebuild the order book exacerbated by uncertainty and the financial impact of the pandemic.

Nevertheless, the team has used the time to regroup, reflect on our products and how we deliver them. We now have a new product suite in place optimising our existing offer to be relevant to the pandemic and be able to achieve the same outcomes virtually as we did in person.

Wellbeing has come front and centre for many organisations but this has often been in the form of newsletters and signposting, rather than positive, proactive action. Towards the end of 2020/21 we started to see a positive uptick in our bookings and this looks set to continue. An internal marketing resource has been recruited who will help drive leads, building out our local connections and existing relationships.

Other

In 2021/22 we have successfully opened three crisis cafés in each of our boroughs working closely with the NHS to prevent A&E services being overwhelmed with clients in crises, some of which is non- medical. Our plans are to expand this service for specific groups from young people affected by trauma to members of the BAME community.

Our Counselling service continued to be able to offer services to people with emotional difficulties via our partner Headstrong Counselling.

Aside from each service delivery we have continued to work strategically through the London Borough of Hammersmith and Fulham mental health steering groups, primary care mental health steering group, West London Mental Health Trust Transformation Board. Further changes in the commissioning landscape as set out by NHS future plans has intensified our collaboration with other local Minds in the North West region of London.

We are also now in a position to raise the profile of the organisation by attracting more volunteers and expanding the sources of finance which helped us reach and support those residents of the boroughs living

6

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH

(Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

the experience of mental health issues.

All of us at Hammersmith, Fulham, Ealing and Hounslow Mind (HFEHM) reaffirmed our mission statement this year to enhance, remedy, maintain and protect the mental health of the residents. We have identified four key values which our projects and initiatives will work to.

These are:

FINANCIAL REVIEW_

Over the last couple of years HFEHM has grown significantly. Income has increased from £1.56m in 2018/19 to £2.23m last year (2019/2020) to £2.80m in 2020/21 and can be attributed to the full rollout of the two Trailblazer contracts recording income of £1,922k in the year (£1,085k in 2019/20). The increase in income has been offset by Adult Services and Training and Consultancy recording a fall in income £298k (£311k in 2019/20) and £93k (£131k in 2019/20) respectively.

Correspondingly expenditure increased from £1.97m in 2019/20 to £2.62M in 2020/21, while a tight control on costs have seen support costs increasing marginally from £477k to £505k year on year.

This tight control of the underlying cost base has contributed to a surplus net unrestricted reserve of £159k. The net movement in restricted funds showed a surplus of £12k to give an overall increase in reserves of £171k.

The growth alongside improved control over debtors (£521k in 2020/21 against £617k in 2019/20) has seen cash assets increase from £347k to £638k year on year. Creditors of £256k (£208k in 2019/20) and provision of pension liability £95k (£119k in 2019/20) had a marginal negative impact in the level of cash assets by £24k.

Hammersmith and Fulham Mind participates in a defined benefit pension scheme administered by The Pensions Trust. This year, the liability has reduced by £24k, and the Pension Fund Provision has been adjusted down to £127k. The service deficit payment plan issued by the Pensions Trust involves payment over a ten year period at an average of £25k p.a., which the trustees are confident that cashflows will be able to meet. We remain hopeful that this issue, affecting so many charities, will be resolved soon._

The Trustees note this liability analysed further in note 16 to the financial statements. The Trustees are aware that the deficit on the scheme will fluctuate with changing market conditions and that their responsibility is to meet the required contribution rates, which are built into the annual budgetary processes of the Charity. The cashflow projections are annually calculated to reflect these continuing service deficit repayments. The Trustees do not consider this deficit to represent an immediate demand on the Charity's funds and do not, therefore, consider that there are any resultant limitations on resources available for general application or on the application of any restricted income funds. The restricted income funds have limitations that mean that they cannot be used to contribute towards any additional resource requirements of the Charity's unrestricted funds arising from the pension scheme deficit. We will continue to review and rigorously monitor our pension fund liabilities.

Reserves

Under the requirements of the Statement of Recommended Practice on Accounting and Reporting by Charities, Hammersmith and Fulham Association for Mental Health segregates its funds into those which are restricted and those which are unrestricted. A further description of these funds and how they are further

7

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

segregated to include the General Reserve is included within Note 16 to the accounts. Total funds for the Charity as at 31 March 2021 were £865k, split between restricted reserves of £215k and unrestricted reserves of £650K (as at 31 March 2020 total reserves were £694k, £203k restricted, £491k unrestricted).

In line with current best practice, the Trustees have, in reviewing Hammersmith and Fulham Association for Mental Health's Reserves Policy, considered the financial impact of those risks identified as part of the ongoing risk management process. The Board of Trustees has agreed that the Association, in addition to any restricted or designated reserves and commitments to, and investment in, tangible fixed assets, should have unrestricted general fund reserves equal to three months of operating costs. This equates to some £491k. Given the variety of funding streams, the Trustees have determined that this would be sufficient to enable the Association to manage any likely eventuality._

Unrestricted reserves of £650k is made up of £147k designated reserves and £503k general reserves (after a pension liabilities of £95k) and is sufficient to cover the 3 months operating expenditure required by Trustees.

The Charity has not made any fundraising appeals to the general public during the year, and as a result there has been no outsourced fundraising via professional fundraisers or other third parties. Consequently, the charity is not registered with the fundraising regulator and received no fundraising complaints in the year.

Plans for future periods

Risk Management and Key Policies

The Board of Trustees have overall responsibility for risk management and Trustees review the analysis, assessment and management of risks on a quarterly basis. To assist in the close monitoring of risk the remit of the Clinical Subcommittee has been expanded to include the systematic review of risk, alongside considerations of strategic direction. Major risks to which the charity is exposed have been reviewed and actions taken in mitigation. The major risks identified include:

8

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH

(Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Hammersmith and Fulham Association for Mental Health is a charitable company (no. 801259) governed by Articles of Association agreed by its members and controlled by a Board of Trustees elected at an Annual General Meeting. Membership of the Association is obtained through application to the Board of Trustees and the decision to accept or reject an application rests with the trustees. Any member is entitled to stand for election as a Trustee at the Annual General Meeting. One third of the Trustees are required to retire automatically each year and to stand for re-election if they wish to continue. The Chair, Vice· Chair and Honorary Treasurer are elected annually at the Annual General Meeting.

The Board of Trustees usually meets between four and six times per year. The quorum for the transaction of business of the Board of Trustees is five. Subject to the objects and powers designated by the Articles, the Board members are empowered to control the business as they deem fit and to appoint new trustees. Trustees are a mix of people with relevant experience, people of standing in the local community and users of the services of the Association . Trustees have received some training in governance and roles and responsibilities. The Board continues to keep under review risks arising from all areas of operations. The day to day running of the charity is delegated to the CEO.

Salary Policy for Key Management Personnel

Salaries are set in accordance with our salary policy that takes into account a variety of different factors including, line management responsibility, autonomy, specialism and benchmarking. The Resources Committee oversees and reviews this and other policies in line with Mind Quality Mark. The pay of Key Management personnel is approved by Trustees.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also directors of Hammersmith and Fulham Association for Mental Health for the purposes of company law) are responsible for preparing the Board of Trustees' Report (incorporating a Directors' 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 year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the result of the company for that period.

In preparing these financial statements, the directors are required to:

9

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH

(Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

TRUSTEES' REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

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.

In so far as the Trustees are aware:

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

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act 2006.

Approved by the Board on 29 July 2021 and signed on its behalf

Julie Pal Chair

Kris Stromdale Treasurer

10

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Opinion

We have audited the financial statements of Hammersmith, Fulham, Ealing and Hounslow Mind (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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

Conclusions relating to going concern

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

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

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

Other Information

The other information comprises the information included in the trustees’ 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.

11

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

12

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF

HAMMERSMITH AND FULHAM ASSOCIATION FOR MENTAL HEALTH (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

Noelia Serrano (Senior statutory auditor) 9 September 2021 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

13

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Note
Income from:
2
3
3
3
4
5
6
6
6
6
22
18
Reconciliation of funds:
Charitable activities
Net income before Movement on
Pension Provision
Movement on Pension Provision
Training and Consultancy
Organisational Development
Total funds carried forward
Net movement in funds
Total funds brought forward
Total income
Expenditure on:
Other trading activities
Investments
Adult Services
Youth Services
Total expenditure
Charitable activities
Adult Services
Youth Services
Training & Consultancy
Donations and legacies		 Unrestricted
£
9,114
298,626
344,524
92,749
69,156
11		 Restricted
£
-
-
1,981,637
-
-
-		 2021
Total
£
9,114
298,626
2,326,161
92,749
69,156
11		 Unrestricted
£
160,119
246,811
435,800
130,845
-
1,085		 Restricted
£
-
64,179
1,196,151
-
-
-		 2020
Total
£
160,119
310,990
1,631,951
130,845
-
1,085
814,180 1,981,637 2,795,817 974,660 1,260,330 2,234,990
372,343
66,015
166,837
42,820		 -
1,969,932
-		 372,343
2,035,947
166,837
42,820		 358,383
220,012
205,908		 64,179
1,113,933
-		 422,562
1,333,945
205,908
648,015 1,969,932 2,617,947 784,303 1,178,112 1,962,415
166,165 11,705 177,870 190,357 82,218 272,575
(7,276) - (7,276) (8,735) - (8,735)
158,889
491,019		 11,705
203,202		 170,594
694,221		 181,622
309,397		 82,218
120,984		 263,840
430,381
649,908 214,907 864,815 491,019 203,202 694,221

Notes on pages 20 to 33 form part of the financial statements.

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18 to the financial statements.

14

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Balance sheet

Balance sheet
As at 31 March 2021 Company no. 02257523
Note
Fixed assets:
12
Current assets:
13
Liabilities:
14
16
18
Total unrestricted funds
Provision of Pension Liability
Creditors: amounts falling due within one year
Net current assets
Restricted income funds
Unrestricted income funds:
Designated funds
Pension reserve
The funds of the charity:
Total net assets
Cash at bank and in hand
Tangible assets
Debtors
General funds
Total charity funds
Total assets less current liabilities		 £
521,448
637,549		 2021
£
57,205		 £
617,348
347,229		 2020
£
57,524
-
902,566		 57,524
756,092
1,158,997
(256,431)		 964,577
(208,485)
146,665
630,369
(127,126)		 146,984
494,663
(150,628)
902,566
(94,956)		 813,616
(119,395)
864,815 694,221
214,907
649,908		 203,202
491,019
864,815 694,221

The financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved and authorised for issue by the trustees on 29 July 2021 and signed on their behalf by

Kris Stromdale

Treasurer

15

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Statement of cash flows

For the year ended 31 March 2021 For the year ended 31 March 2021 For the year ended 31 March 2021
Note
£
£
Net income for the reporting period
170,594
(as per the statement of financial activities)
Depreciation charges
10,748
Movement on Pension Provision
(24,439)
Dividends, interest and rent from investments
(11)
Decrease /(increase) in debtors
95,900
Increase in creditors
47,946
130,144
300,738
11
(10,429)
(10,418)
290,320
347,229
637,549
At 1 April
2020
Cash flows
£
£
Cash in hand
347,229
290,320
Total cash and cash equivalents
347,229
290,320

2021
Cash flows from operating activities
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Net cash used in investing activities
Net cash provided by operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Analysis of cash and cash equivalents		 £
£
263,840
15,573
(22,500)
(1,085)
(251,304)
10,308
(249,008)
14,832
1,085
(52,484)
(51,399)
(36,567)
383,796
347,229
Other
changes
At 31 March
2021
£
£
-
637,549
-
637,549
2020
11
(10,429)		 1,085
(52,484)
300,738
(10,418)		 14,832
(51,399)
At 1 April
2020
£
347,229		 Other
changes
£
-
290,320
347,229		 (36,567)
383,796
637,549 347,229
Cash flows
£
290,320		 At 31 March
2021
£
637,549
347,229 290,320 - 637,549

Notes on pages 20 to 33 form part of the financial statements.

16

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

a) Statement of Compliance

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. Within the previous year Hammersmith and Fulham Association for Mental Health acquired Mind Ealing and Hounslow. The transfer value of Mind Ealing and Hounslow reflects the net assets up to 30th September 2019. This has been included as a donation within the SOFA.

b) General Information:

The charity is a private company limited by guarantee, incorporated in England and Wales (company number: 02257523) and a charity registered in England and Wales (charity number: 801259). The charity's registered office is 309 Lillie Road, London, SW6 7LL.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees have considered the impact of Covid - 19 in assessing that there are no material uncertainties about the charitable company's ability to continue as a going concern.

e) Key judgments and uncertainties

Apart from the provision for the pension scheme liability as noted in the Trustees' Report, the trustees do not consider that there are any other sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

f) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the

executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

g) 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.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

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

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

17

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the support cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the basis of staff time attributable to each activity.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £750. Depreciation costs are allocated to central costs. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

The assets are depreciated at the following rates:

m) Financial Investments:

Basic financial intrustments are transactions that result in the recognition of financial assets and liabilities. The trade and other accounts receivables and payables are accounted for on the following basis:

n) Debtors

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

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term savings accounts. Cash balances exclude any funds held on behalf of service users.

p) Creditors and provisions

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

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

q) Employee Benefits: Pensions

Hammersmith, Fulham, Ealing and Hounslow Mind ran a Defined Benefit Scheme administered by The Pensions Trust. The Pensions Trust ran a multiple scheme for small organisations involved in social, educational, charitable, voluntary or similar work. The financial position and the income and expenditure of The Pensions Trust are disclosed in its annual financial statements. A shortfall has occurred on this scheme and each participating company in the scheme is required to make good their share of the shortfall. The liability is reduced when payments are made to The Pension Trust. In October 2015, an Auto-Enrolment Workplace Pension Scheme was set up for all employees on a Defined Contribution basis.

r) Short Term benefits

Short term benefits including holiday pay are recognised in the period in which the service is received.

18

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

Income from donations and legacies (all unrestricted) Income from donations and legacies (all unrestricted) Income from donations and legacies (all unrestricted)
Legacies
Unrestricted
£
£
Adult Services
298,626
-
Youth Services
344,524
1,981,637
Training & Consultancy
92,749
-
735,899
1,981,637
Restricted
Donations
Transfer of Mind in Ealing and Hounslow (Note 21)
Income from charitable activities		 2021
Total
£
298,626
2,326,161
92,749		 Unrestricted
£
246,811
435,800
130,845		 2021
Total
£
9,114
-
-		 2020
Total
£
37,993
122,126
-
9,114 160,119
Restricted
£
64,179
1,196,151
-		 2020
Total
£
310,990
1,631,951
130,845
735,899 1,981,637 2,717,536 813,456 1,260,330 2,073,786

3 Income from charitable activities

4 Other Trading Activities

Other Trading Activities
Furlough Income
Local Authority Grants
North West London (local Mind Collaboration)
Rental Income		 2021
Total
£
35,000
18,750
3,200
12,206		 2020
Total
£
-
-
-
-
69,156 -

5 Investment Income

Investment Income
Bank Interest income 2021
Total
£
11		 2020
Total
£
1,085
11 1,085

19

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

ysis of total expenditure
Organisational Development
Total Expenditure
Total Expenditure
Adult Services
Youth Services
Training and Consultancy
Support Costs
Adult Services
Youth Services
Training and Consultancy
Support Costs
ysis of total expenditure (2020)		 Staff
£
245,608
1,251,731
122,212
23,768
280,255		 Other
£
54,979
391,857
12,473
10,800
224,265		 Support
£
71,756
392,359
32,152
8,252
(504,520)		 2021
Total
£
372,343
2,035,947
166,837
42,820
-
1,923,574 694,374 - 2,617,947
Staff
£
250,595
650,873
118,733
249,464		 Other
£
54,922
379,066
31,717
227,045		 Support
£
117,045
304,006
55,458
(476,509)		 2020
Total
£
422,562
1,333,945
205,908
-
1,269,665 692,750 - 1,962,415

Analysis of total expenditure (2020)

6b Analysis of Support Costs

ysis of Support Costs
Space and Office Costs
Staff related costs
IT Costs
Legal and professional costs
Governance Costs
Other Support Costs
Total Support Costs
Auditor’s fees
Trustee expenses
Staff support costs
Total Governance Costs
ysis of Governance Costs
Management and Personnel Costs		 2021
Total
£
55,419
311,039
10,716
29,812
22,510
11,040
14,685		 2020
Total
£
64,427
364,605
7,138
9,276
15,893
11,070
4,100
504,520 476,509
2021
Total
£
11,040
-
-		 2020
Total
£
11,970
-
-
11,040 11,970

6c Analysis of Governance Costs

20

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

This is stated after charging / crediting:

This is stated after charging / crediting:
2021 2020
£ £
Depreciation 10,748 15,573
Operating lease rentals:
Property 42,000 46,163
Other 841 1,154
Auditor's remuneration (excluding VAT):
Audit 9,200 8,640

8

Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Employer’s contribution to defined contribution pension schemes
Operating costs of defined benefit pension schemes
Salaries and wages
Social security costs		 2021
£
1,714,876
168,257
16,939
23,502		 2020
£
1,118,679
107,937
18,677
24,372
1,923,574 1,269,665

No employee earned more than £60,000 during the year (2020: nil).

The total employee benefits including pension contributions of the key management personnel were £347,363 (2020: £253,405), split as follows: Salaries £302,554, Social Security Costs £34,479, and Pensions £10,330.

The organisation paid £5,380 redundancy costs (2020: £8,430).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2020: £nil).

21

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

9 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Adult Services
Support Services
Youth Services
Training and Consultancy		 2021
No.
12
34
4
7		 2020
No.
10
21
3
7
57 41

10 Related party transactions

There were no related party transactions to disclose for 2021 (2020: £nil).

11 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

12 Tangible fixed assets

Tangible fixed assets
Eliminated on disposal
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
At the end of the year
At the start of the year
Cost or valuation
Net book value
Disposals in year		 Fixtures and
fittings
£
24,156
-
-		 Computer
equipment
£
62,489
10,429
-		 Total
£
86,645
10,429
-
24,156 72,918 97,074
8,338
4,831
-		 20,783
5,917
-		 29,121
10,748
-
13,169 26,700 39,869
10,987 46,218 57,205
15,818 41,706 57,524

All of the above assets are used for charitable purposes.

22

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

13
14
15
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year
Accruals
Deferred income (Note 15)
Trade creditors
Debtors
Deferred income
Other creditors
Taxation and social security
Pension Provision within one year
Trade debtors
Other debtors
Prepayments
Creditors: amounts falling due within one year		 2021
£
497,597
-
23,851		 2020
£
608,302
1,107
7,939
521,448 617,348
2021
£
49,935
53,595
49,651
11,040
60,040
32,170		 2020
£
51,463
43,644
-
24,749
57,396
31,233
256,431 208,485
2021
£
57,396
(57,396)
60,040		 2020
£
175,056
(175,056)
57,396
60,040 57,396

The income deferred relate to amounts invoiced in advance for services to be undertaken in 2020/21.

16 Pension Provision > 1year

Pension Provision > 1year
Pension Provision 2021
£
94,956		 2020
£
119,395
94,956 119,395

Hammersmith, Fulham, Ealing and Hounslow Mind ran a Defined Benefit Scheme administered by The Pensions Trust. The Pensions Trust ran a multiple scheme for small organisations involved in social, educational, charitable, voluntary or similar work. The financial position and the income and expenditure of The Pensions Trust are disclosed in its annual financial statements. A shortfall has occurred on this scheme and each participating company in the scheme is required to make good their share of the shortfall. The liability is reduced when payments are made to The Pension Trust. In October 2015, an Auto-Enrolment Workplace Pension Scheme was set up for all employees on a Defined Contribution basis.

23

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

17 Analysis of net assets between funds

Analysis of net assets between funds
Tangible fixed assets
Net current assets
Pension Provision
Net assets at the end of the year		 £
57,205
89,460
-
Designated		 General
unrestricted
£
-
598,199
(94,956)		 Restricted
£
-
214,907
-		 Total funds
£
57,205
902,566
(94,956)
146,665 503,243 214,907 864,815

Comparative Analysis of net assets between funds (2020)

Total restricted funds
Total designated funds
Pension Reserve
General funds
Fixed Assets
Total unrestricted funds
Trailblazers Hammersmith & Fulham
Whole School Approach
Legacy
Restricted funds:
Unrestricted funds:
Total funds including pension fund
Tangible fixed assets
Net current assets
Pension Provision
Net assets at the end of the year
Movements in funds
Designated funds:
Trailblazers West London		 At the start
of the year
£
193,890
-
9,312		 £
57,524
89,460
-
Designated		 General
unrestricted
£
-
463,430
(119,395)		 Restricted
£
-
203,202
-		 Total funds
£
57,524
756,092
(119,395)
146,984 344,035 203,202 694,221
Income
£
1,200,572
721,065
60,000		 Expenditure
£
(1,179,555)
(721,065)
(69,312)		 Transfers
£
-
-
-		 At the end
of the year
£
214,907
-
-
203,202 1,981,637 (1,969,932) - 214,907
57,524
89,460		 -
-		 -
-		 (319)
-		 57,205
89,460
146,984 - - (319) 146,665
(150,628)
494,663		 -
814,180		 23,502
(678,793)		 -
319		 (127,126)
630,369
491,019 814,180 (655,291) - 649,908
694,221 2,795,817 (2,625,223) - 864,815

18 Movements in funds

24

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

Purposes of restricted funds

Trailblazers relates to two grants for the provision of mental health support teams in educational settings, funded by the local Clinical Commission Groups of the NHS covering the areas of West London and Hammersmith and Fulham.

Whole School Approach is a Mind National funded grant for the early intervention of mental health support to a range of education settings: primary, secondary, free school, special school, 6th form college, further education colleges and the wider school community (parents and carers).

Purposes of designated funds

The Fixed Assets Fund reflects capitalised equipment purchased by using unrestricted fund or Capital grants where there is no continuing restriction as to use. The balance carried forward is equal to the net book value of the related fixed assets.

In 2018/19 the charity was in receipt of a legacy and at the time the purpose had not been specified by the Trustees. During 2019/20 £89,530 was utilised in the reorganisation of central services, developing the capacity of the senior management team and in the transfer of Mind Ealing and Hounslow. In the last year (2020/21) the Trustees have not seen fit to utilise the funds in a period of significant growth and a need to strengthen the finances of the organisation.

Comparative Movement in Funds (2020)

Total restricted funds
Total designated funds
Pension Reserve
General funds

Restricted funds:
Trailblazers West London
Trailblazers Hammersmith & Fulham
Whole School Approach
BBO Employment Project with National
Mind
Total unrestricted funds
Total funds including pension fund
Unrestricted funds:
Designated funds:
Fixed Assets
Legacy		 At the start
of the year
£
91,471
-
29,513
-

 Income
£
764,542
320,198
111,411
64,179		 Expenditure
and
Movements
in Pension
Provision
£
(662,123)
(320,198)
(131,612)
(64,179)		 Transfers
£
-
-
-
-		 At the end
of the year
£
193,890
-
9,312
-
120,984 1,260,330 (1,178,112) - 203,202
20,615
178,989		 -
-		 -
-		 36,909
(89,529)		 57,524
89,460
199,604 - - (52,620) 146,984
(175,000)
284,793		 -
974,660		 24,372
(817,410)		 -
52,620		 (150,628)
494,663
309,397 974,660 (793,038) - 491,019
430,381 2,234,990 (1,971,150) - 694,221

25

Hammersmith and Fulham Association for Mental Health

(Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

19 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

each of the following periods
Property Equipment
2021 2020 2021 2020
£ £ £ £
Less than one year 42,000 42,000 1,368 1,368
One to five years 56,750 98,750 1,405 3,493
Over five years - - - -
Total Operating Lease commitment 98,750 140,750 2,773 4,861

20 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

26

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

22 Pension schemes

SCHEME: TPT Retirement Solutions – The Growth Plan

The company participates in the scheme, a multi-employer scheme which provides benefits to some 950 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions From 1 April 2019 to 30 September 2025: £11,243,000 (payable monthly and increasing by 3% each per annum year on 1st April)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions From 1 April 2016 to 30 September 2025: £12,945,440 per annum (payable monthly and increasing by 3% each on 1st April) From 1 April 2016 to 30 September 2028: £54,560 per annum (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

27

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

PRESENT VALUES OF PROVISION
31 March 31 March 31 March 31 March
2021 2020 2019 2018
(£000s) (£000s) (£000s) (£000s)
Present value of provision 127,126 150,628 182,725 200,204
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Period Period
Ending Ending
31 March 31 March
2021 2020
(£000s) (£000s)
Provision at start of period 150,628 182,725
Unwinding of the discount factor (interest expense) 3,384 2,312
Deficit contribution paid (31,233) (30,324)
Remeasurements - impact of any change in assumptions 4,347 (4,085)
Remeasurements - amendments to the contribution schedule - -
Provision at end of period 127,126 150,628

28

Hammersmith and Fulham Association for Mental Health (Known as Hammersmith, Fulham, Ealing and Hounslow Mind)

Notes to the financial statements

For the year ended 31 March 2021

22 Pension schemes (continued)

INCOME AND EXPENDITURE IMPACT

INCOME AND EXPENDITURE IMPACT
Period Period
Ending Ending
31 March 31 March
2021 2020
(£000s) (£000s)
Interest expense 3,384 2,312
Remeasurements – impact of any change in assumptions 4,347 (4,085)
Remeasurements - amendments to the contribution schedule - -
Contributions paid in respect of future service* * *
Costs recognised in income and expenditure account * *

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.

31 March 31 March 31 March 31 March
2021 2020 2019 2018
% per annum % per annum % per annum % per annum
Rate of discount 0.66 2.53 1.39 1.71

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

SCHEME: TPT Retirement Solutions - The Growth Plan

The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:

DEFICIT CONTRIBUTIONS SCHEDULE

The non-discounted payments will be:

The non-discounted payments will be:
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 4
Year ending
Year 1
Year 2
Year 3		 31 March
2021
(£000s)
32,170
33,136
34,130
29,295
-
-
-
-
-
-		 31 March
2020
(£000s)
31,233
32,170
33,136
34,130
29,295
-
-
-
-
-		 31 March
2019
(£000s)
30,324
31,233
32,170
33,136
34,310
29,295
-
-
-
-		 31 March
2018
(£000s)
25,799
26,573
27,371
28,192
29,037
29,909
30,806
15,865
-
-
128,731 159,964 190,468 213552

29