HEADWAY SOUTHAMPTON
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
Company Limited by Guarantee Registered in England No. 03263597
Registered Charity No. 1058717
120 Commercial Road Totton
Southampton SO40 3AD
HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
Page
Officials and other details 1
Report of the trustees 2 -3
Chairperson's report 4 - 5
Independent Examiner's report 6
Statement of financial activities 7
Balance Sheet 8
Notes to the accounts 9 -11
Non - statutory information, for the trustees only Detailed trading and profit and loss account 12-14
HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE COMPANY INFORMATION FOR THE YEAR ENDED 31 MARCH 2018
Page 1
Trustees M Usher (Chairperson) S Curtis H Knight A Turner J Lloyd L Bailey
Manager J Hillier
Bankers Lloyds TSB Shirley Branch 77 Shirley High Street Southampton SO15 3TX
Accountants IQ Business Consulting Ltd The Old Police House West Park Lane Damerham Fordingbridge, Hampshire SP6 3HB
Address & Registered Office 120 Commercial Road Totton Southampton SO40 3AD
Company Secretary J Hillier
Solicitors Trethowans Rockstone Place Southampton SO15 2EP
Company Number 03263597
Charity Number 1058717
HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2018 The trustees submit their annual report and the accounts for the year ended 31 March 2018. Objects and Principal Activity The objects and principal activity of the company continued to be the rehabilitation of persons who have suffered acquired brain injuries and who reside in Southampton and south west Hampshire and to advance the education of the public in the matter of head injuries. Headway Southampton is affiliated to Headway – the brain injury association, which is a separate company limited by guarantee. Review of the Year and Plans for the Future The review of the year and plans for the future are included in the attached report of the Chairperson. Trustees The Trustees are responsible for decision making within the organisation based upon reports and other information provided by the Manager and other members of staff. The trustees who served during the year are as listed below:
M Usher (Chairperson) S Curtis H Knight A Turner J Lloyd L Bailey Other changes in directors holding office are as follows:
Laura Skirrow - Resigned 28 December 2017 Gavin Lane - Resigned 20 April 2017 Peter Cotton - Resigned 31 March 2018 Jack Llloyd - Appointed 11 July 2017 Liz Bailey - Appointed 15 March 2018
In accordance with clause 29 of the Articles of Association one third of the trustees retire at the forthcoming Annual General Meeting and offer themselves for re-election. In accordance with clause 5 of the Memorandum of Association, no trustee was in receipt of any remuneration in respect of his or her services. The company is limited by guarantee, not having a share capital. The company is established as a charitable body not for profit. Accordingly the trustees, who are also members of the company, have no beneficial interest in the equity or assets of the company. The maximum contribution required from each member, in the event of a winding up is £10. The Articles of Association of the company govern the appointment of trustees. Reserves The company’s policy on reserves is shown in the notes to these accounts. Risk review The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining our reserves at the levels stated on page 7 to these accounts combined with our annual review of the controls over key financial systems carried out will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks, which they face and confirm that they have established systems to mitigate the significant risks.
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HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE CHAIRPERSON’S REPORT FOR THE YEAR ENDED 31 MARCH 2018 Headway Southampton is a registered charity and a company limited by guarantee. The organisation provides a community-based, post-acute rehabilitation and support service for adults with an acquired brain injury. Our board of Trustees met five times during the year to review and assess this work, develop policies, advise on good practice and monitor operations. The 2017/18 financial year has been a year of change for Headway Southampton. There were significant changes to the board of trustees: three trustees, Gavin Lane, Laura Skirrow and Amanda Turner resigned after many years of support and we are grateful for all they contributed over their time as trustees. Two new trustees, Jack Lloyd and Liz Bailey were appointed and at the AGM in September Jack Lloyd and I were proposed, seconded and appointed as vice-chairperson and chairperson respectively. At the end of the financial year, the board consisted of five trustees. There were also significant changes to the staff team; Peter Cotton retired from his role as manager after fourteen years of hard work and dedication, he now works for Headway Southampton one day per week as an outreach support worker. Jo Hillier was appointed as manager (part-time) and Matt Bennett was employed as deputy manager (part-time). John Cooke was appointed as senior rehabilitation officer. At the end of the financial year Headway Southampton employed a part-time manager and deputy manager, each 0.6, one full-time senior rehabilitation officer, three full time rehabilitation officers, a full-time finance administration and volunteering co-ordinator and a part-time cleaner. This financial year saw a dramatic shift in our long-standing funding arrangements. Southampton City Council ceased our block grant and joined forces with Southampton Clinical Commissioning group to become joint commissioners on a spot rate purchase basis, a new higher day rate was agreed and implemented from April. Hampshire County Council Adult also changed their procurement process and agreed a new higher spot rate from September. The heavier emphasis on spot rate purchases means there is a constant pressure to keep every day full and attendance high to ensure we break even. The West Hampshire Clinical Commissioning group renewed our modest grant until 2019 and during a quality assurance review in November the high quality of our service was recognised. Smaller scale income sources still include Wiltshire County Council Adult Services, and purchase of places by case management or private individuals. In January 2018 we introduced a daily refreshments fee and a small fee for certain activities payable by service users to compensate for the reduction in overall funding and to encourage individual money management and budgeting. The main focus of our service at Headway Southampton is a day service that provides approximately seventy five day places for individuals. We aim to recognise and meet the specialised needs of people with an acquired brain injury and to encourage them to regain as much independence and confidence as they can. We are also meeting the need for long-term support that many of our service users have and that their partners, carers and families also require. It can be a delicate balancing act to reconcile the different requirements of someone who has lived for years with the consequences of a brain injury and someone who is newly experiencing these difficulties. Our group sessions offer the opportunity for peer support amongst our service users which help to build confidence and self-belief. The stage of life at which an injury or illness occurs also creates variation in need. But we have managed to arrange our service so that the needs of younger people take more centre stage on at least two days each week. During the year, we provided day support for fifty five service users and worked with a further eighty two referrals. The services that we offered and continue to offer include individual and group activities – educational, creative, sports, leisure, cultural – designed to assist each person to develop or maintain his or her physical and cognitive abilities and emotional well-being. We pride ourselves on constantly refreshing and updating our activities to keep our service users stimulated and challenged. A notable artistic achievement this year was a group performance of Biscuit Poetry at the New Forest Arts Festival in June. We continue to provide information and support through phone calls and our monthly Drop-in group to individuals and carers trying to negotiate the many difficulties that follow a newly-acquired brain injury. Regular volunteers make a crucial contribution to our work. We are particularly grateful to our small bank of extremely dedicated and effective regulars and very appreciative of the energy, enthusiasm and interest that university and college students bring to their placements here. In October 2017 our volunteer counsellor started delivering individual counselling sessions one morning per week, she has had a constant stream of referrals and it is obvious that she is meeting a significant need.
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HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2018 I report on the accounts of Headway Southampton for the year ended 31 March 2018 which are set out on pages 7 to 11.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
The charity’s trustees consider that an audit is not required for this year under section 144 of the Act and that an independent examination is needed.
It is my responsibility to:
⚫ examine the accounts under section 145 of the Charities Act, ⚫ to follow the applicable Directions given by the Charity Commission (under section 145(5)(b) of the Act, and ⚫ to state whether particular matters have come to my attention.
Basis of independent examiner's statement
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
Which gives me reasonable cause to believe that in any material respect:
⚫ accounting records were not kept in accordance with section 130 of the Charities Act or ⚫ the accounts do not accord with the accounting records
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached. Date: Paul Stacey Director IQ Business Consulting Limited The Old Police House West Park Lane Damerham Fordingbridge, Hampshire SP6 3HB
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HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2018
2018 2017
Notes Total Unrestricted Fund
Total
Unrestricted
Fund
Restricted
Volunteering Fund
£ £ £ £ £ Incoming resources Grants & Attendance Payments 170,736 170,736 185,032 185,032 - Fundraising & Donations 18,810 18,810 16,532 16,532 - Other Income - - 74 74 - Total incoming resources 189,546 189,546 201,638 201,638 - Resources expended 2 202,308 202,308 210,726 210,309 417 OPERATING (DEFICIT) / SURPLUS 3 (12,763) (12,762) (9,089) (8,672) (417) Interest receivable 90 90 90 90 - (DEFICIT) / SURPLUS ON ORDINARY ACTIVITIES (12,672) (12,672)
(8,998)
(8,581)
(417)
BALANCE BOUGHT FORWARD 227,022 227,022 236,018 235,601 417 BALANCE CARRIED FORWARD 214,350 214,350 227,022 227,022 -
The notes on pages 9 to 11 form part of these accounts.
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HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 1. ACCOUNTING POLICIES
Basis of accounts The accounts are prepared under the historical cost convention and in accordance with the statement of Recommended Practice:Accounting and Reporting by Charities (SORP 2005) issued in March 2005 and applicable UK Accounting Standards and the Charities Act 1993.
Depreciation of tangible assets Depreciation is calculated on all tangible fixed assets in use, at rates and bases calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life, as follows:
Fixtures, fittings and equipment 25% per annum on a reducing balance basis/33.33% per annum on a straight line method Computer Equipment straight line over 3 years Leasehold Improvements straight line over 9 years Motor Vehicle 25% per annum on a reducing balance basis
Donated equipment and services Equipment donated to the charity is included in fixed assets at an estimated value of cost and credited to the Statement of Financial Activities as a donation in kind in the year of receipt.
Incoming Resources Incoming Resources represents grants, attendance allowances and donations receivable. Donations are included in the accounts when received. Grants and Attendance Allowances are included either on a contractual basis or on such dates as the trustees consider that they are receivable.
Resources Expended Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Value Added Tax Expenditure which is subject to VAT is included in these accounts inclusive of VAT as VAT is not recoverable by the charity.
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2. RESOURCES EXPENDED 2018 2017 £ £ Direct Care Costs Therapy & Activities 11,604 15,945 Salaries (incl. NI) (see below) 98,843 93,502 Pension, Training & Other Staff Costs 4,470 2,889 Establishment expenses 29,778 40,591 144,878 152,926 Management and Administration Salaries (incl. NI) (see below) 49,640 47,128 Pension, Training & Other Staff Costs 1,216 1,225 Accountancy 1,191 2,910 Fundraising 216 1,628 52,264 52,891 Financial Expenses Bank Charges and Interest 35 Depreciation 5,191 4,910 Profit on disposal of fixed assets (60) 5,166 4,910 TOTAL RESOURCES EXPENDED 202,308 210,726
HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2018 Staff Costs and Numbers The number of staff who were remunerated during the year within the following bands
£1 to £10,000 3 3 £10,001 to £20,000 5 6 £20,001 to £30,000 2 1
Of these 3 members of staff were employed within management and administration, the balance were employed for charitable purposes. Of the total salary costs £7,792 is in respect of National Insurance Costs the balance is gross wages. 3. OPERATING SURPLUS 2018 2017 This is stated after charging £ £ Independent Examiners Fees 1,965 1,440 Depreciation 5,191 4,910
4. FIXED ASSETS Fixtures,
fittings and equipment
Leasehold improvements
Motor vehicles Total
£ £ £ £ Cost At 1 April 2017 22,071 43,999 44,836 110,906 Additions 8,763 - 8,763 At 31 March 2018 30,834 43,999 44,836 119,669 Depreciation At 1 April 2017 21,171 43,999 31,012 96,182 Charge for the year 1,736 - 3,456 5,191 At 31 March 2018 22,907 43,999 34,467 101,373 Net Book Value At 31 March 2018 7,927 - 10,369 18,295 At 31 March 2017 900 - 13,824 14,724 All the fixed assets are used for charitable purposes.
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HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2018 5. DEBTORS 2018 2017
£ £ Grants & Attendance Allowances 15,631 28,600 Prepayments & Accrued Income 5,045 5,854 20,676 34,453 6. CREDITORS 2018 2017 £ £ Amounts falling due within one year Trade Creditors 142 1,327 Other Taxes and Social Security 3,218 422 Accruals & Grants Received in Advance 1,683 6,074 5,043 7,822 7. GUARANTEE The company has no share capital and is limited by guarantee. 8. FUNDS & RESERVES POLICY Unrestricted Fund The unrestricted fund is for the general running of the day service. Incoming Resources of Grants from the local Health Authority, Attendance Payments, Donations and Fundraising are included in this fund. In line with our reserves policy we are required to keep £122,000 in reserve (6 months operational expenditure) in case of unexpected closure / redundancies. Restricted Funds: Department of Health HSC Volunteering Fund Grant This fund represented a project funded by the Volunteering Fund to develop a volunteer 'buddying' scheme that supported service users to follow leisure and educational interests outside our normal day service hours. Reserves Policy The Trustees policy for reserves is to ensure that there are sufficient funds to meet outstanding commitments and staff costs if forced to close. 9. LEASE COMMITMENTS The original lease on 120 Commercial Road, Totton, Southampton expired on 30 November 2014. Trustees agreed with the landlord a new term of ten years and a revised rent, with a review at 30 September 2020. Agreement has now also been reached on the break clauses, with a tenant's option after notice on or after 30 January 2018, and a landlord's option after notice on or after 30 September 2020.
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HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2018
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Unrestricted Fund Centre
2018 2017
Total
Total
£ £ £ Income Attendance Payments 170,736 170,736 185,032 Fundraising & Donations 18,810 18,810 16,532 Interest 90 90 90 Other Income - - 74 189,636 189,636 201,728 Expenses Staff Costs 154,170 154,170 144,744 Fundraising 216 216 1,628 Overheads 29,962 29,962 37,232 Legal & Financial 1,226 1,226 6,268 Activities & Social Events 11,604 11,604 15,945 Depreciation 5,191 5,191 4,910 Profit on disposal of fixed assets (60) (60) - 202,308 202,308 210,726 (Deficit)/ Surplus for the year (12,672) (12,672) (8,998) 0.00
HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE DETAILED INCOME AND EXPENDITURE ACCOUNT - continued FOR THE YEAR ENDED 31 MARCH 2018 Unrestricted Fund
Centre 2018 2017
Total
Total
£ £ £ Staff Costs Salaries & N I 148,483 148,483 140,630 Pension Costs 4,071 4,071 4,102 Staff Advertising 395 395 - Staff &Volunteer Training 829 829 12 Staff Cost 392 392 -
154,170 154,170 144,744 Overheads Rent & Rates 13,384 13,384 15,495 Heat & Light 2,962 2,962 3,565 Motor Running Costs 8,061 8,061 6,412 Travel 81 81 975 Repairs & Small Equip. (41) (41) 1,653 Telephone 1,490 1,490 2,755 Insurance 962 962 2,055 Stationery & Postage 1,699 1,699 2,061 Computer Maintenance 269 269 171 Publications 138 138 224 Registration fees 113 113 155 Cleaning 673 673 856 Alarm 159 159 975 Sundry 13 13 (122) 29,962 29,962 37,232 Activities & Social Events Social - Events, Holidays Etc. (51) (51) 332 Counselling / Therapist 1,255 1,255 1,100 Rehabilitation Activities 5,712 5,712 7,105 Education Activities 390 390 1,850 Recreational Activites 4,297 4,297 5,558 11,604 11,604 15,945 Fundrasing Fundraising 216 216 1,628 216 216 1,628
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HEADWAY SOUTHAMPTON A COMPANY LIMITED BY GUARANTEE DETAILED INCOME AND EXPENDITURE ACCOUNT - continued FOR THE YEAR ENDED 31 MARCH 2018 Unrestricted Fund
Centre 2018 2017
Total Total
£ £ £ Legal & Financial Legal fees - - 3,359 Accountancy 1,191 1,191 2,910 Bank Charges and Interest 35 35 1,226 1,226 6,268
Depreciation Motor 3,456 3,456 4,607 Equipment 1,736 1,736 302 5,191 5,191 4,910
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Profit on disposal of fixed assets Fixtures, fittings and equipment (60) (60) - (60) (60) -
