The Trustees present their annual report and financial statements for the year ended 31 March 2024.
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 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) (effective 1 January 2019)".
The Charity’s main objectives remain unchanged and that is to improve the quality of life for people with hearing loss and anyone with a dual sensory loss (deafblind) and to reduce loneliness and isolation within the community. We provide a range of support services for clients including: information & advice, equipment demonstrations and installations, lipreading and sign language classes, communication training and peer support groups. In addition to the above-mentioned services, we also provide Deaf Awareness Training to family, friends, carers and “front-line” professional staff, to enable them to communicate more effectively with someone who has a hearing loss.
Public benefit
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Some of our key services include:
Information and Advice – From our Centre in Eastbourne and throughout the county via our volunteer led Outreach service.
Hard of Hearing groups – Support groups in Eastbourne, Polegate, Uckfield, St Leonards-On-Sea and Hastings.
Deafblind groups – Support groups in Eastbourne.
Sign Language Classes – Eastbourne (3).
Lipreading Classes – Eastbourne, Lewes and Uckfield.
Equipment installation – we install and maintain hearing assistive equipment on behalf of East Sussex County Council Sensory Impairment Team (SIRT).
Volunteering – including basic maintenance of hearing aids and battery replacement service on behalf of the local NHS throughout the county
The future
Our key goals for the next 12 months or so are:
To raise funding to run and support our full range of community services.
Commission our new Outreach vehicle The Hearing Hopper
We hope to relaunch our hearing screening testing service.
Launch our “Earwax removal” service.
We are a small charity with a loyal and dedicated team of staff and volunteers and we pride ourselves on the level of service that we provide. But we can only continue to provide this much needed service to the local hard of hearing community with the kind, generous support of funders; moving us closer to achieving our goal of an inclusive society where hard of hearing people can feel part of their local community and enjoy full independence.
There was a deficit for the year on unrestricted funds of £52,298 after covering any deficits arising on restricted funds (2023: deficit of £8,020).
The charity seek to maintain at least 3 months operating expenditure as reserves calculated to be between £60,000 and £70,000. Unrestricted reserves carried forward are £17,396 (2023: £69,694) and the trustees are looking to raise income levels through grant making trusts and a variety of fundraising initiatives.
The charity is a company limited by guarantee and was registered with the Charity Commission for England and Wales on 10 December 2003.
The Charity changed its name to East Sussex Hearing on 5th June 2020.
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 Charity is managed on a day to day basis by Mr David Rowan together with support staff. Trustees meet regularly to oversee the work of the charity.
The Trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of East Sussex Hearing for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year 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 financial statements, the Trustees 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 financial statements; and
- prepare the financial statements 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 financial statements 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 to the Trustees on my examination of the financial statements of East Sussex Hearing (the charity) for the year ended 31 March 2024.
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 ACCA, 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.
designated
Other income
Investments
Raising funds
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
designated
Other income
Investments
Raising funds
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
East Sussex Hearing is a private company limited by guarantee incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF.
The financial statements have been prepared in accordance 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) (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. The core activities of the charity East Sussex Hearing are overseen by the general fund which also incorporates the Hearing Resource Centre and Induction Loop Installation work. The general fund provides support funding for the various other activities of the Trust to include sign writing, lip reading, outreach and prescription work all considered core activities of the Trust.
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. Expenditure which meets these criteria is charged to the fund together with the appropriate management and support costs.
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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Property, plant and equipment 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 basis:
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 assets costing below £2,000 are not capitalised.
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).
Inventories 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 inventories 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 trade and other receivables 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 trade and other payables 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 payables 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 payables 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Allocation and apportionment of costs
Salaries are apportioned between the charitable activities based upon time allocated to each project.
Direct costs of fundraising are allocated accordingly to the project that incurred the expense.
Current asset investments
Current 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.
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.
Fees receivable
Grants receivable
Raising funds
Contract services (Fundraisers)
Charitable Expenditure by Activity
Hearing
Resource
Centre
Outreach Worker
Sign Language Classes
Lip
Reading Classes
Prescrip-tions
Deaf/Blind Persons
Deaf Job Club
Training
Venue hire
Travel and volunteer expenses
Fees
Van repairs and maintenance costs
Products and consumables
Charitable Expenditure by Activity
Hearing
Resource
Centre
Outreach Worker
Sign Language Classes
Lip
Reading Classes
Prescrip-tions
Deaf/Blind Persons
Deaf Job Club
Training
Venue hire
Travel and volunteer expenses
Fees
Van repairs and maintenance costs
Products and consumables
Rent and services
Insurance
Computer and internet
Office expenses
Subscriptions
Telephone
Accountancy
Payroll services
Annual return fee
Independent examination
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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 restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Be Smart - IT workshops - this fund is used to run free workshops on using IT equipment such as laptops, tablets and smartphones.
Outreach work - grants received to run outreach events in Eastbourne.
I.T. Fund - Awards for All and Communications Fund - these funds were for IT and communications projects. The remaining balances were transferred to general funds in 2022.
Deaf Job Club Fund - this fund is for a return to work job club. The deficit on this fund was covered by a transfer from the General fund.
Lipreading Fund - this fund is for lipreading classes. The deficit on this fund was covered by a transfer from the General fund.
Sussex Community Fund - this grant is for running training, workshops, support classes and hearing aid maintenance.
Hearing Hopper Fund - A grant from Sussex Masonic Society for the purchase of a vehicle. The depreciation of the vehicle to be charged against the fund from 1st April 2024 over 4 years.
Sundry Restricted Funds - incorporates small restricted grants for a portable audiometer, hearing aids and micro-suction work. These funds were expended in the year.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
These are unrestricted funds which are material to the charity's activities.
Transfers
Transfers
Notes
The capital fund represents gifts and funds set aside for future refurbishment of existing buildings or purchase or lease of a new building.
During the year 2022/23 the sum of £80,000 was transferred back to the General Fund to replenish reserves.
The company had annual commitments under non-cancellable operating leases for rent and services.
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 other disclosable related party transactions during the year (2023: none).