The trustees present their annual report and financial statements for the year ended 31 March 2023.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association dated 7 October 2003, which was updated and approved at the AGM, 17 September 2014, 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).
Charitable objectives
The objectives of the Charity are to promote the relief of people, who through disability or ill health are unable, without assistance, to obtain their full rights and privileges as citizens.
Key strategies
Within a changing environment of reduced funding and cutbacks in services, maintain effective, high quality services provision
Position the organisation as a thought leader in relation to its knowledge and expertise
Explore opportunities for new and additional services that are compatible with our core skills
Continue to develop commercial activities and social enterprise to generate unrestricted funds
Continue to raise the profile of Onside to secure community sponsorship and support
Provide a volunteer team resource that supports the needs of the organisation and the changing environment
Aims and objectives for the year April 22 - March 23
The main objectives were:
Develop a robust Staffing Structure which meets the developing needs of Onside
Embed both the new CRM system and Intranet across the organisation
Work successfully with identified Charity Partners to raise the profile of Onside and enable us to raise money to provide more services
Continue to appraise and where appropriate, bid for relevant development opportunities within Worcestershire, Herefordshire and neighbouring counties
Work with Commissioners to plan for the development of Advocacy Services based on proposed changes to the Mental Capacity Act
Recruit additional Volunteers and improve training and information (e.g. Volunteer Handbook)
Continue to use Onside experience and knowledge to influence policy and strategy
Public benefit compliance
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'.
Investment powers
Under the Memorandum and Articles of Association, the trustees have the power to invest the funds of the charity as they think fit. The trustees, having regard to the liquidity requirements of operating the charity have maintained funds in an interest bearing bank reserve account.
Use of volunteers
In the year ending 31 March 2023, 150 volunteers (2022 - 160 volunteers) provided over 1,890 hours (2022 - 1,920 hours) of direct support to vulnerable and disadvantaged people. The charity recognises and values the enormous contribution made by volunteers and takes this opportunity to say how much their continuing support is appreciated.
Continued to grow Onside’s services, enabling the charity to offer its’ range of services for adults, families, and children more widely across Worcestershire and Herefordshire. Onside has also explored other relevant opportunities in other geographical locations.
Onside has further developed our representation at relevant strategic forums and partnerships. As a result, we continue to be to be recognized as a leading provider of services for vulnerable people facing unfairness, inequality and exclusion.
Developed the use of the Intranet (Oracle) to improve the effectiveness of communication and our infrastructure.
The CRM System has been more widely rolled out across the relevant services.
Continued to strengthen Onside’s Management Structure by recruiting to key roles within the leadership team, extending the range of skills and expertise across the organisation.
Completed a Job Evaluation, Pay Benchmarking and Pay Progression Framework, to ensure effective recruitment and retention and a transparent framework for staff development and progression.
Onside continued to work with a range of charity partners, including the Mayor of Worcester and Crowngate Shopping Centre to further raise the profile of Onside’s work and generate much needed donations.
Onside have used some of the income gained from fundraising to support our current Access Fund for Service Users and to create a new Winter Support Fund for staff struggling with the increased cost of living pressures.
Following a comprehensive Volunteer Review, we developed and embedded a new Volunteer Handbook. We also reviewed Volunteer Training and updated the Volunteer Training Programme.
Successfully achieved reaccreditation of the externally assessed and verified Advocacy Quality Performance Mark.
Reviewed and amended key components of our Performance Management Systems to ensure staff continued to be effectively supported, motivated and with opportunities for development.
Undertaken a Property Review to reconsider the option of purchasing a property. No suitable properties were identified which were appropriate within the budget we had available. The current economic climate means this is not an option we are continuing to consider at this time.
During the year income exceeded expenditure by £28,683 (2022: income exceeded expenditure by £190,236) giving total fund balances at 31 March 2023 of £793,262 (2022: £764,579). This included restricted funds of £1,331 (2022: £3,544) and designated funds of £390,000 (2022: £417,840).
Reserves policy
The Trustees aim to hold sufficient reserves to cover the financial and operational risks of the charities’ activities. At the minimum, we will always hold sufficient reserves in realisable form to cover the statutory requirements in respect of redundancy payments to staff and contractual agreements, such as lease of premises. Our current level of free reserves is £342,348 (2022 £291,486.)
Whilst this adequately covers the expended exposure on closure, the Trustees remain committed to continue to prudently manage our reserves in order to improve and develop services alongside providing further cover for the future risks and provide scope to explore new opportunities. The level of reserves is monitored regularly by the trustees and the reserve policy is reviewed annually alongside the budget preparation process.
Notes 20, 21 and 22 set out details of the various funds and an analysis of the assets attributable to them. These assets are sufficient to meet the charity's obligations on a fund by fund basis.
Risk management
The trustees regularly assess the the risks to which the charity is exposed, and are satisfied that processes, systems and actions are in place to mitigate exposure to the major risks.
Plans for the future April 23 - March 24
Continue to develop Onside’s services, enabling the charity to offer its’ range of services for adults, families, and children more widely across Worcestershire, Herefordshire and wider geographical areas.
Effectively manage changes in Onside contracts and potential retendering processes.
Continue to engage with a variety of organisations to ensure Onside is represented at the appropriate strategic forums and partnerships, thereby ensuring Onside is recognized as the leading provider of services for vulnerable people facing unfairness, inequality and exclusion and has a voice in strategic developments across all sectors.
Continue to build Onside’s infrastructure and communication channels, including the CRM system and intranet, to ensure we are working effectively and efficiently and meeting the needs of all stakeholders.
Continue the develop opportunities within local communities to promote Onside services and work in partnership with other agencies further strengthening our links at a grassroots level.
Develop an Investment Policy to ensure effective use of reserves, following the decision to no longer invest at present in a property.
As Onside celebrates its 30th Anniversary, ensuring we use this opportunity to develop further partnerships with local businesses and communities and maximise the opportunity for fundraising
To further develop key frameworks and support mechanisms for the development and retention of our staff and volunteers
Governing document
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 7 October 2003 which was updated and approved at the AGM, 17 September 2014.
Trustees
The trustees, who are also the directors for the purpose of company law, who served during the year were:
Recruitment and appointment of trustees
The company shall have a Board of Trustees comprising not less than three and not more than eleven persons elected by and from the Members at the Annual General Meeting.
At every Annual General Meeting all elected and co-opted Board members shall retire from office. Retiring Board members shall be eligible for re-election or further co-option subject to a maximum period of service of five years or five consecutive terms, such persons will be eligible to stand for re-election after a break of at least one year. This period can be extended at the discretion of the trustees.
Training and induction
Trustees are recruited from members and volunteers and through advertising with appropriate charity organisations and local business networks. There is a clearly defined procedure for recruitment and appointment including informal meetings, attendance at a Board meeting and a formal interview. Once references are checked, new trustees are co-opted or nominated at a General meeting. An induction programme is provided and ongoing training is available
Organisational structure
The business of the Company shall be managed by the Board of Trustees who may exercise all such powers of the Company as may be exercised and done by the Company and as are not by statute or by these articles required to be exercised or done by the Company in a General Meeting.
The Board of Trustees delegate the day to day running of the charity to appointed Chief Executive Officer, K. Harvey. Rates of pay for all staff and key management personnel are set by the board.
Related parties
The charity does not co-operate with any charity or organisation deemed to be a related party in pursuit of its charitable objectives.
A proposal will be put to members that competitive quotes are sought for the appointment of auditors, including from Kendall Wadley LLP.
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
The trustees, who are also the directors of Onside Independent Advocacy for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities Statement of Recommended Practice (2005);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Onside Independent Advocacy (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the 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 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 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of Trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
- an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Board is obtained and their attitude to risk ascertained
- an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made
- it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the charity
As a result of the outcome of our risk review:
- we establish processes to test the outcomes of our assessment which include, a review of Board minutes, analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries including the testing of journal entries, information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material mis-statements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.
- an understanding of the legal and regulatory framework as applicable to the charity is obtained together with knowledge of the procedures put in place by the charity in order to comply with the same
- it is established if there have been any instances of non-compliance with applicable laws and regulations, where there are such breaches, a full understanding, including gathering of relevant documentation appertaining to the event is obtained and assessed
It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Kendall Wadley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
designated
designated
Onside Independent Advocacy is a private charitable company limited by guarantee and was registered in England and Wales. The registered office is Williamson House, 14 Charles Street, Worcester, WR1 2AQ.
The financial statements have been prepared in accordance with the charity's governing document dated 07 October 2003, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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 to be used for specific purposes as laid down by the donor. Expenditure, which meets these criteria, is charged to the fund.
Service contract income received are recognised in full in the statement of financial activities in the year in which they are receivable. Income is then deferred where the contract term falls outside the current year.
The charity receives government grants in respect of offering advocacy. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred
No amount is included in the financial statements for the volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees' annual report.
Investment income comprises of bank interest and is recognised when it is receivable.
All other income is recognised when it is receivable.
Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT, which cannot be recovered.
Expenditure relating to charitable activities comprise of all expenses that are incurred in the undertaking of the charitable activities of the charity.
Governance costs include direct and related support costs relating to the governance infrastructure allowing the charity to generate information required for public accountability.
Resources expended are allocated between the activities of the charity on an apportionment basis based on estimated staff time.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Worcestershire County Council Grants & Contracts
Herefordshire Council Grants & Contracts
Social Enterprise
Council Spot Sales
Income within charitable activities
Opening deferred income
Income is deferred where the contract terms fall outside the current year.
Worcestershire County Council Grants & Contracts
Herefordshire Council Grants & Contracts
Other Grants
Social Enterprise
Council Spot Sales
Income within charitable activities
Opening deferred income
Income is deferred where the contract terms fall outside the current year.
JRS Grant
Travel and subsistence
Staff and volunteer training
Volunteer expenses
Café Mix and Bakery provisions and equipment
Computer costs
Stationery
Telephone
Printing, publicity and advertising
Insurance
Rent
Heat and light
Repairs and maintenance
Audit fee
Trustee meeting costs
Governance costs includes auditors' remunerations of £6,120 (2022 : £6,120).
None of the trustees (or any persons connected with them) received any remuneration during the year.
During the year 2023, 1 trustee claimed for travel and other expenses incurred, in total these amounted to £49 (2022: 1 trustee was reimbursed £115)
The average monthly number of employees during the year was:
Total key management personnel remuneration benefits for the year amounted to £333,672 (2022: £231,889)
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Transfers were made in the current and previous year between unrestricted and designated funds to cover the costs of refurbishment projects, future premises and essential contingency requirements.
A transfer of £6,045 was made from unrestricted funds to restricted to cover project overspends.
Income received in the year has been deferred until the next financial year and will be recognised when the services have been performed.
The charge to the statement of financial activities in respect of defined contribution schemes was £100,907 (2022: £90,829).
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The purpose of each fund is as follows:
Swap & share – part of the Communities together initiative, supporting the exchange of skills and time between community members in Worcester and Malvern.
Job coach employment support - this is a project funded by Big Lottery and ESF to support people furthest from the job market into employment.
The purpose of each fund is as follows:
Office Maintenance & Improvement fund - represents money set aside for the redecoration of the premises which the charity has a contractual requirement in their lease to redecorate every three years.
Essential contingency fund - represents money set aside to cover the charity's statutory requirements in respect of redundancy payments and contractual agreements.
IT Infrastructure Improvements fund - represents money set aside for planned IT investment.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Lease payments recognised as an expense during the year amounted to £28,320 (2022 - £22,500).
At 31 March 2023 the charity had capital commitments as follows:
There were no disclosable related party transactions during the year (2022 - none).
The charity had no debt during the year.