The directors present their annual report and financial statements for the year ended 31 July 2023.
The accounts have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's memorandum and articles of association, 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 2016)
The charity's objects are support, for people with sensory problems, and for members of the public who may come into contact with people with sensory problems, so providing Public Benefit.
The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake, in particular with regard securing Public Benefit.
The charity is continuing to work with and support the people of the Forest of Dean with Sensory problems.
It is the policy of the charity that designated unrestricted funds should be maintained at a level equivalent to about six months' expenditure plus potential redundancy costs. The directors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to securing alternative funding.
The directors have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The plans for future periods are to continue the charity's existing work.
The charity is a company limited by guarantee and is governed in accord with its Memorandum and Articles of Association.
The directors who served during the year and up to the date of signature of the financial statements were:
Directors are voted onto the board at the AGM and the board can co-opt directors as required. Training for directors is usually provided through the offices of the local Volunteer Forum. None of the directors has any beneficial interest in the company.
The Trustees report was approved by the Board of Directors.
The directors, who also act as trustees for the charitable activities of Forest Sensory Services, 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 directors 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 directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- 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 directors 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.
I report on the financial statements of the charity for the year ended 31 July 2023, which are set out on pages 4 to 18.
The charity’s directors, who also act as trustees for the charitable activities of Forest Sensory Services, are responsible for the preparation of the financial statements. The directors consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
examine the financial statements under section 145 of the 2011 Act;
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
to which, in my opinion, attention should be drawn 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.
Forest Sensory Services is a private company limited by guarantee incorporated in England and Wales. The registered office is The Forge Centre, Valley Road, Cinderford, Gloucestershire, GL14 2LJ.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, despite the effects of the Covid crisis. Thus the directors 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 directors 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.
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.
Resources expended are included in the accounting period in which they are incurred, on the accruals basis.
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
In the application of the charity’s accounting policies, the directors 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.
Voluntary income
Grant Income
Fundraising Income
Investment Income
Income from charitable activities
Voluntary income
Grant Income
Fundraising Income
Investment Income
Income from charitable activities
Voluntary income for the year ended 31 July 2023 includes donations and membership income and income from legacies.
Fundraising income for the year ended 31 July 2023 includes £51 (2022 - £485) shop income.
Income from charitable activities for the year ended 31 July 2023 includes £12,619 (2022 - £4,479) income from groups and £6,223 (2022 - £6,326) equipment income and £528 (2022 - £1,160) hearing clinic income.
Restricted grants income is analysed in note 15.
Fundraising costs
Costs of charitable activities
Governance costs
Costs of charitable activities for the year ended 31 July 2023 includes staff costs of £43,955 (2022 - £40,345) (see note 7), group costs of £16,492 (2022 - £4,500), costs of purchases of equipment of £10,911 (2022 - £6,582), hearing clinic costs of £1,354 (2022 - £1,285), volunteers expenses of £3,489 (2022 - £3,779), depreciation of £1,293 (2022 - £1,601), reduction in stock of £7,325 (2022 - £2,207 increase) and other premises costs and office costs of £14,670 (2022 - £12,701).
None of the directors (or any persons connected with them) received any remuneration or benefits or expenses from the charity during the year.
The average monthly number of employees during the year was:
No employees had emoluments over £60,000 (2022-none).
Staff costs for the year ended 31 July 2023 included £43,145 (2022 - £39,782) gross salaries, £0 (2022 - £0) social security costs, and £810 (2022 - £563) defined contribution employer pension contributions.
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 purpose of the restricted funds is to finance the expenditure to which the restricted income related.
The income funds of the charity include the following designated unrestricted fund which has been set aside out of unrestricted funds for the purposes of ensuring that, in the event of a significant drop in funding, the charity will be able to continue its current activities whilst consideration is given to securing alternative funding:
Six months' expenditure plus potential redundancy costs - designated fund.
Unrestricted
Designated
Restricted
Unrestricted
Designated
Restricted
There were no disclosable related party transactions during the year (2022- none). Governance costs for the year ended 31 July 2023 includes amounts payable to the independent examiner of £930 (2022 - £900) for the independent examination and £444 (2022-£402) for payroll work and other work.