As Trustees, and Directors of the Charity for the purposes of the Companies Act 2006, it is our privilege to present the annual report and audited financial statements for the year ended 31st March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
To promote the welfare of older people with mental health needs and adults who are socially disadvantaged by delivering a person-centred approach to care, in Staffordshire and surrounding areas in a manner which is now and hereafter may be deemed charitable by law.
Approach have promoted the welfare of older people with mental health needs and those affected by dementia who, due to this, become socially disadvantaged for the last 42 years.
These are challenging times for all voluntary sector organisations and in this environment Approach continues to be a leading organisation within the world of dementia care in Staffordshire.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
THE DIFFERENCE WE MAKE: OUR ACHIEVEMENTS IN 2022/23
Since its creation in 1981 Approach has supported different facets of the community, however within our 5 Year Strategy (2021 – 2025) launched in June 2021 our charitable services focus has been to provide support for people affected by dementia, with an update to the registered activities on Charity Commission:
To promote the welfare of people affected by dementia, and associated conditions, in the North Staffordshire and surrounding areas.
Approach Dementia Support believes that everyone affected by dementia should be supported to live their life the way they choose.
Our vision is…… To be recognised as the central provider of quality dementia support services across our heartland of North Staffordshire and Stoke-on-Trent.
Our mission is…... Is to provide quality services and advice, promoting positive wellbeing and tailored support for people affected by dementia.
The last 12 months (2022/23) continued to be challenging for every business, charity and individual due to the ongoing effect of the cost of living crisis. However, we have continued to provide high quality services focusing on our key aim of supporting people living with dementia and their carers. Over the past 12 months, Approach has shown its resilience to these factors outside of its control. Approach has continued to build its service delivery through new Activity Group sessions and Carer Support and Advice sessions. We are proud to continue our partnerships with local organisations, such as Stoke City FC Community Trust, to deliver interactive supportive sessions. Despite difficult circumstances, Approach has made over 8,865 contacts (2021/22: 4,792 contacts) with 1,109 people (2021/22: 894 people) over the past 12 months: showing the tangible impact of its support during tough times for the sector. Compared with the previous year’s figures, contacts have increased by 85% and service users by nearly 25%. This demonstrates both the increasing local need for dementia support services as well as Approach’s ongoing progress in working towards its strategic goals of increasing brand awareness and service provision.
1,109 people accessed at least one of the 307 events hosted by Approach during the financial year, with 2,562 attendances made.
74 people with dementia accessed 1:1 support in the My Day My Way service, with 5,168.5 My Day My Way hours delivered - allowing them to undertake any activity of their choosing and give carers vital respite and “peace of mind”.
434 people attended one of the 67 Carer Advice and Support Sessions, making 837 attendances overall. This shows a 194% increase in the number of carers supported through Carer Support and Advice sessions when compared to the previous financial year (2021/22: 379 people, 32 sessions, 225 attendances).
47 carers attended 1 of the 30 carer training courses delivered virtually or face-to-face, making a total of 291 attendances - giving them essential information and helping to prepare them for their caring journey.
182 people with dementia accessed 209 Activity Groups hosted by Approach, with 1,415 attendances made in total – enabling local people affected by dementia to socialise and create peer support networks.
The financial statements for the year 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 Ireland (FRS 102) (effective 1 January 2019)' and comply with all statutory requirements and Approach’s governing document.
Despite a challenging 12 months, the Trustees report a net increase to overall funds for the year of £28,243 and an overall funds balance of £270,585 at 31st March 2023 (£242,342 at 1st April 2022). This is an impressive achievement considering the continued impact of the cost of living crisis in the sector. The financial position is set out in the balance sheet on page 9. Due to the financial position and surplus, the minimum hourly rate of pay has been increased to £10.60 (6% pay increase) from April 2023 and accounted for in the 2023/24 budget. This measure recognises the hard work of staff during a highly challenging year and is a testament to the organisation’s ability to succeed in turbulent times.
INCOME AND EXPENDITURE
The Statement of Financial Activities is set out on page 8 of these financial statements. This year, Approach received fundraised income through donations and gifts totalling £52,066 (2021/22 £44,600) a roughly 17% increase on the previous year. A good achievement during a period of significant external uncertainty and demonstrates the generosity and kindness of local people and organisations for which the Trustees express their gratitude. Total income in 2022/23 was £354,713 (2021/22: £350,103), an increase of 1.3%. This increase demonstrates effective fundraising for Approach in difficult times and the continued sustained success of its work.
The cost of Charitable Activities in 2022/23 was £325,472 (2021/22: £277,790), an increase of 17.2% largely due to increasing staffing capacity to enable further sessions to take place.
Reserves policy
The charity considers a suitable minimum level of free reserves to be broadly equivalent to a minimum of six months essential operating costs. Such reserves will provide support should it face an unforeseen downturn in income or a significant event which has an adverse impact. The charity intends to increase and grow its reserves as it seeks opportunities to do so and therefore, it has not determined a maximum level of free reserves. This policy is to be reviewed every 3 years or more frequently in the event of a material change, upwards or downwards.
OUR VISION FOR THE FUTURE
The 5 Year Strategy (2021 – 2025) has been ratified and launched June 2021. This plan outlines key goals for the future, the risks that we anticipate and mitigate, our priorities for action and our strategic objectives.
The strategic priorities for Approach Dementia Support are all underpinned by the main strategic aim to achieve financial stability with multi-dimensional blended income streams with an increase in donated funds. Key to this is redefining and enhancing the finance structure and funding model to reduce the risk based on previous experiences, where the charity become over-reliant on a single contract.
Our strategic priorities are…
To achieve the financial stability needed to promote growth into our 40th year and beyond through establishing a multi-faceted income generation strategy, increasing our donated funds, implementing robust financial systems to ensure cost-effectiveness, and ensuring that our financial surplus is strategically managed to increase capital reserves and identify strategic development spend.
To implement our strategic plan, actively engaging with our people to move forward as one organisation with a positive value culture that our people are proud to be a part of.
To regularly review our services to ensure that they are of appropriate quality and quantity to meet our vision and mission of person-centered tailored support whilst operating in a manner that is financially sustainable.
To increase our brand awareness and cease to be the “best kept secret” in North Staffordshire, ensuring that more people know about us and engage with our services, including GP and health care professional engagement.
To establish and grow a Dementia Advice Proposition, providing a central point for advice, information services and training in North Staffordshire for people living with dementia, their carers, families, and professionals.
To collaboratively work with our strategic partners to increase our impact on local dementia services for all those affected by dementia from diagnosis to end of life.
The ageing population and the increase in dementia diagnosis rates will see the demand for Approach Dementia Services rise into future years. The last year has seen many challenges and changes for the services offered and on the financial resource of the charity. The Covid-19 Pandemic had a significant impact on fundraising and Approach Services. All face-to-face services ceased on March 22nd, 2020. The situation was monitored, and all appropriate action taken to ensure the financial viability of the organisation whilst providing the best possible service for people living with dementia and their carers. Face-to-face services were reintroduced, including MDMW, Activity Groups and Carer Support and Advice Sessions. The Strategic Alliance with the Douglas Macmillan Hospice and the increasing awareness of Approach services, known for quality and as the primary local charity delivering services to people living with dementia and their families, will set us on a forward path of strategic growth and stability.
The charity is a company limited by guarantee and is controlled by its governing document and a deed of trust.
The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £10. On 1st April 2013 the charitable company commenced operations when it took over the assets and liabilities of the former charity, Approach, which was an unincorporated trust, constituted under a trust deed dated 1st April 1988 and was registered charity number 700226. This charity had changed its name on 29th January 2002 from The Potteries Elderly Support Group to Approach.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The trustee board considers that the number of directors at any time and the composition of the board is critical to the success of the charity. It is acknowledged that these aspects could vary from time to time depending on the circumstances of the charity.
The total number of directors will be determined by the board and shall take into account the skills and experience required for the board to complete its duties given the scale and complexity of the charity's operations. The minimum number of directors shall not fall below 6 at any time.
The full board of directors assumes responsibility for the selection an appointment of directors.
Potential board members will be approached by the Chair of Approach and asked to complete an application form where they will be required to provide two references. These references will be taken up by the Company Secretary and, if suitable, an interview will be arranged with the Chair, Vice-Chair and one other board member, along with the Head of Charity. The appointment will then be put forward for acceptance by the board at the next meeting and, if this is agreed, then a DBS check will be undertaken and a full induction process appropriate to the role will be completed with input from the board of directors and management team.
If accepted, the applicant will then be co-opted onto the board and be asked to attend the next board meeting of the year until they stand for election at the next Annual General Meeting.
The trustees meet quarterly, this includes the Chair, Treasurer and Head of Charity, with specialist co-optees also attending.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Approach Supporting Your Life Your Way (the charity) for the year ended 31 March 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England & Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Approach Supporting Your Life Your Way is a charitable company limited by guarantee incorporated in England and Wales.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
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 financial statements have been prepared under 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.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that the transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.
Cost of raising funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes,
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both the costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
Overhead and support costs have been allocated first between charitable activity and governance. Overhead and support costs relating to charitable activities are allocated on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others being apportioned on an appropriate basis (e.g. staff time, estimated usage or transaction).
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation 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:
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.
Individual fixed assets costing £1,000 or more are capitalised at cost.
At each reporting end date, the charity reviews the carrying amounts of its tangible 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, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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 and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
There are no critical accounting estimates or judgements in these financial statements.
My Day My Way
Grants
Dementia Support Groups
Carer Support Cafe
Carers Training
My Day My Way
Social Support Activity
Dementia Support Groups
Carers Support Cafe
Carers Training
My Day My Way
Other
Governance costs includes £3,675 (2022- £3,500) for independent examination fees.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. There were neither any expenses paid to the trustees in the year (2022 - £Nil).
No trustee or other person related to the charity had any personal interest in any contract or transaction entered onto by the charity during the year (2022 - £Nil).
The average monthly number of employees during the year was:
The key management personnel of the charity comprise the trustees and two members of staff (2022: the trustees and one member of staff). The total employee benefits of the key management personnel of the charity were £35,678 (2022- £21,309).
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.
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 charge to profit or loss in respect of defined contribution schemes was £3,995 (2022 - £2,037).
Sport England
A project to deliver physical activities for people with dementia in Stoke-on-Trent & Staffordshire.
Staffs Chambers of Commerce
Funding for staff training.
Together Active
This is a tackling inequalities fund to support physical activities for people with dementia.
Community Investment Fund
This is a grant to cover the purchase of pop up reminiscence rooms for people affected by dementia.
Prince of Wales Trust
A grant towards the provision of Dementia singing groups.
National Lottery Community Fund
To increase socialisation for people affected by dementia and giving opportunities for carer respite and for people with dementia to engage with activities which improve their wellbeing and reduce the negative impacts of isolation.
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:
There were no disclosable related party transactions during the year (2022 - none).