The Trustees present their annual report and financial statements for the year ended 31 March 2025.
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 06 September 2000 as amended by a Special Resolution dated 15 November 2001, 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 Charities Objects are:
- To promote the relief, rehabilitation and re-enablement of persons who have suffered acquired brain injury (the users) and reside in the areas covered by the county of Herefordshire and its immediate environs and the relief and support of the carers of such persons.
- The provision in the interests of social welfare of recreational (including sporting) occupational respite and educational facilities for the users and their carers.
- The provision of support information advice and counselling for the users, their relatives or other persons caring for the users or anyone with an interest in acquired brain injury.
- The promotion of research into the treatment prevention and prevention of deterioration of acquired brain injury on terms that such research is published.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims, objectives, and operations. Services have been developed to maximise public benefit. Such services include the provision of a Day Centre delivering clinical and life-style enablement services, mentoring, respite care, local information, awareness raising and support for individuals and professionals.
Herefordshire Headway was entered on the register of charities 25 years ago. Since this time, we have supported many hundreds of people and their families who have been affected by the devastating effects of acquired brain injury (ABI) providing relevant and specific support to meet individual needs.
Challenges related to funding care as well as other financial support for those with an ABI and their families remained central during 2024-25. New welfare reforms put pressure on service users to defend their right to disability support, through the reassessment of Personal Independence Payments (PIP) etc. Other public spending cuts also put a strain on families as well as the Councils ability to fund its community’s health and social welfare needs.
For Herefordshire Headway the last year has been one of change and transition. In April, our CEO of 12 years retired, alongside the Finance Controller and Lead Nurse. A well-respected Trustee also stepped down and there was a change of Chair.
Stephen Heptinstall stepped into the CEO role, supported by a new Finance Controller. An Advertising and Fundraising Lead was appointed but did not stay beyond a few months. It was decided not to re-advertise this post until the new CEO had settled in and could assess what was required.
Despite the challenges that change brings Herefordshire Headway has been able to grow the services it provides ABI sufferers and their families. We successfully bid to the National Lottery Community Fund (NLCF) with the aim of expanding our service offer at the Centre as well as in the community for 2025-26.
Funding remains challenging. Although we now have representation on the Integrated Care Stroke Board, we still do not receive any NHS funding. However, this recruitment onto the Board alongside planned hospital liaison visits will strengthen Herefordshire Headways position with healthcare colleagues across Herefordshire and Worcestershire Integrated Care System.
We have renewed our Council Contract this year which helped to secure the funding for several attendees. The new management team has maintained excellent relations with our colleagues in the Living Well - Adults Commissioning team. Herefordshire Headway continues to work closely with the Community Wellbeing Directorate of Herefordshire Council to ensure those with ABI and their families receive the support they need in our County.
During the year income amounted to £183,333 (2024: £261,166) and expenditure to £261,552 (2024: £245,999). Of the income £54,305 (2024: £69,473) was derived from services provided under contract for Herefordshire County Council (Day Opportunities and the Outreach Services schemes). Overall, this resulted in a net deficit for the year of £78,219 (2024: net surplus of £15,167). At the year end the reserves of the Charity amounted to £379,723 (2024: £457,942), comprising restricted funds of £88 (2024: £134,822), designated funds of £180,792 (2024: £36,470) leaving general funds of £198,843 (2024: £286,650).
Unrestricted Charity reserves (excluding designated funds) not required to support fixed assets now stand at £198,843 and represent approximately 9 months of unrestricted operating costs. After taking into account all requirements for holding reserves the Trustees regard this level of reserves as both reasonable and prudent.
We are pleased to report that management,fundraising and administration costs remain under control and an improved pricing structure for delivered services is maintaining a stable funding base for the continued development of services and facilities in pursuance of our charitable objectives.
The Trustees monitor risk using the risk register which is an integral part of the annual business planning process. Annual planning takes place in January each year the final plan being ratified prior to April and then monitored throughout the year. The Trustees are satisfied that systems are in place to mitigate exposure to the major risks.
The Charity is a company limited by guarantee governed by its Memorandum of Articles of Association dated 6 September 2000 as amended by a Special Resolution dated 15 November 2001. It is registered as a Charity with the Charities Commission, number 1092578, and is exempt from corporation and income tax on its charitable income.
All members of the Board of Trustees exercise their authority in the capacity as Directors under the relevant company legislation and as Trustees of the Charity. Given the company's charitable status the term 'Trustee' rather than 'Director' is used throughout.
As set out in the Articles of Association one third of the Trustees retire by rotation each year but only if at least two Trustees will remain in office. Any member entitled to vote at a general meeting may propose one member for appointment or reappointment as a Trustee. The number of Trustees shall be at least five and not more than ten all of whom must be members. All the Trustees co-opted under section 3.7 of the Articles of Association serve until the AGM following their appointment when they may seek election as Trustee.
Training is provided as necessary using guidance provided by the Charity Commission and the wider Headway network.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The Board of Trustees, which meets regularly, governs the Charity. A Chief Executive is appointed by the Trustees to manage the day to day activities of the Charity. To facilitate effective operations the Chief Executive has delegated authority for these day to day operational matters. Remuneration of staff is approved by the Board having due regard to the tasks undertaken by the relevant members of staff.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Herefordshire Headway (the Charity) for the year ended 31 March 2025.
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.
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 Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
Herefordshire Headway is a private company limited by guarantee and a charity registered in England and Wales. The registered office is Headway House, Trenchard Avenue, Credenhill, Hereford, Herefordshire, HR4 7DX.
The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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 and that there are no material uncertainties about its ability to continue. 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 funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors or grantors 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.
Liabilities are recognised by the charity where a contractual obligation exists or for goods services received that have not been invoiced.
Expenditure is allocated to funds in accordance with the nature of activity to which that expenditure relates. Staff costs are allocated to the relevant funds on a time spent 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.
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 and deposits held at call with banks.
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. 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 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.
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.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
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.
Grants
Daily attendance income
Ancillary trading income
Formal Licence Agreement Income
Raising funds
Fundraising costs of grants and donations - unrestricted
Fundraising costs of grants and donations - unrestricted
Subcontractor fees
Running costs
Transport
Food costs
Bank charges
Time spent
See 1.5
Heating and lighting
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Insurance
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Water rates
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Telephone
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Repairs and renewals
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Waste and cleaning
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Computer costs
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Sundry expenses
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Membership and affiliations
Legal and professional costs
Independent examiners fee
None of the Trustees (or any persons connected with them) received any remuneration or travelling expenses during the year. Donations of £255 were received from trustees without conditions (2024 - £Nil).
The average monthly number of employees during the year was:
During the year termination payments comprising redundancy, payments in lieu of notice and holiday pay of £nil (2024 - £6,923) were made.
Of the 14 (2024 - 12) members of staff employed, 1 is full time (2024 - 1) and 13 are part time (2024 - 11).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
In the current year a transfer of £124,943 was made from restricted funds to the new designated fixed asset fund and a transfer of £19,379 was also made from unrestricted funds into the designated fixed asset fund.
This is to reflect the fact that assets purchased from restricted funds have no further restriction on their use within the charitable objectives and creation of a designated fixed asset fund will enable the free reserves of the charity to be more clearly reflected.
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.
Building Refurbishment - This fund represents grants received from The Bailey Thomas Charitable Fund, Santander Foundation, Sylvia Waddilove, The Sobell Foundation, Novum Law, The Clothworkers' Foundations, Bernard Sunley, Morrisons Foundation, ACT Foundation and the Co-op Local community Fund. The aim of these grants is to assist with the costs of improving our premises. This fund also represents grants received from The Bernard Sunley Foundation and The Clothworkers Foundation, who assisted with the workshop refurbishment.
Gardening Fund - This fund represents a grant received from Jules Thorne and Gillian Bulmer. The aim of these grants is to assist with the costs of improving the garden equipment, in particular the greenhouse.
Workshop Tools Fund - This fund represents a grant received from the Co-op Community. The aim of this grant is to assist with the costs of acquiring new tools for the workshop.
Refurbishment Equipment Fund - This fund represents grants received from the Hedley Foundation, Beatrice Laing, Bernard Sunley, Childwick Trust and Rowland Trust. The aim of these grants is to assist with the cost of acquiring equipment for the refurbished therapy suite and day care areas.
Groundwork UK Landscaping Fund - This fund represents grants received from Tesco, and also the Co-op Local Community Fund, with an aim to improve the the garden at Headway House.
The Lottery Fund - This fund represents grants received from the National Lottery. The aim of the grant is for development of a home and community support service that allows us to work intensively with individuals, carers, families and communities at home and in their own environments, self-reliance and resilience being the core goal.
Replacement Pottery Kiln - This fund represents a grant received from the Sylvia Waddilove Foundation UK. The aim of this grant is to assist with the "Kiln Work" project.
National Emergency Trust DCMS fund - IT Equipment - This fund represents a grant received via The Herefordshire Community Foundation. The aim of this grant is to provide electronic equipment so activities can be re-delivered to clients at home, necessary as a result of Covid-19 restrictions.
Music Therapy Fund - represents a grant received from The D'Oyly Carte Charitable Trust to support the cost of running music therapy services.
Physpeech Therapy Fund - represents a grant received from the Co-op Local Community Fund to support the cost of speech therapy.
These are unrestricted funds which are material to the Charity's activities.
Building refurbishment - this fund represents grants received in 2018 from the Masonic Charitable Foundation Community Awards. This has been set aside for the costs of improving our premises.
Headway House - in 2019 Headway House was transferred to a designated fixed asset fund. This has been set aside to more clearly present the free reserves of the charity.
Designated fixed asset fund - in 2025 all other fixed assets were transferred to a designated fixed asset fund. This has been set aside to more clearly present the free reserves of the charity.
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:
The operating leases represent leases from third parties for the provision of office equipment and other services. The leases are negotiated over terms of 5 to 7 years and rentals are fixed for the term of the lease. There are no options in place for either party to extend the lease terms.
The charge included in the statement of financial activities in connection with these leases is £1,585 (2024 - £1,585).
There were no disclosable related party transactions during the year other than those detailed in note 9 (2024 - none).
The remuneration of key management personnel, considered to be 4 employees (2024 - 2) is as follows.