The Trustees present their report and financial statements for the year ended 31 March 2022.
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 Trust's 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)".
Public Benefit Statement
In line with the mission statement we aim to support individuals and communities to work toward positive mental health and wellbeing. This is achieved by supporting individuals to work on social inclusion and recovery and take responsibility for building resilience and self- care. It is also achieved by empowering communities to build resources that support the needs of individual communities around good mental health and wellbeing.
The organisation is a charitable company limited by guarantee and established as Independence Trust in 2000. Previous working names have been:
GAMH (GLOUCESTERSHIRE ASSOCIATION FOR MENTAL HEALTH) (Working name)
GDAS (GLOUCESTERSHIRE DRUG AND ALCOHOL SERVICE) (Previous name)
INGLOS LIMITED (Previous name)
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 Directors of the company are also Trustees for the purpose of charity law and under the company’s Articles are known as members of the Board of Trustees. Under the requirements of the Memorandum and Articles of Association the Board of Trustees are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting. They may serve for a maximum of three terms, plus an additional one year in exceptional circumstances.
Trustee Induction and Training
All Trustees of the Independence Trust are expected to participate in the formal induction programme and training to meet the requirements of a Trustee of a Charity.
All Trustees are encouraged to participate with staff in all staff mandatory training and to undertake all other relevant Governance training and to attend any appropriate national and local events on behalf of the organisation.
The Board of Trustees annually reviews the strategic direction of Independence Trust which is encapsulated in the vision, mission and values below. The strategic objectives inform the organisation’s business plan which drive the activity for the year.
Vision
To enhance the mental health and wellbeing of the client group enabling them to live a fulfilling life as a member of society and their local community.
Mission
We are committed to service delivery and a positive culture that will provide advice and support to those experiencing mental health illness and diminished wellbeing.
Values
Passionate
Respectful
Involving
Determined
Effective
Strategic objectives
Work with individuals and communities to develop good mental health and wellbeing.
To support local communities to build resilience and support for one another
Become a lead VCSE local provider for community mental health and wellbeing provision within local communities across Gloucestershire
Develop Independence Trust as a sustainable and essential organisation offering the best possible community mental health provision within the VCSE sector in Gloucestershire.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
During 2020/21 the Covid-19 pandemic had a significant impact on the client group and the communities in which they live. As an organisation Independence Trust was able to adapt to a new way of working very quickly. Service delivery had to change rapidly from a face to face service to having client contact by phone, text, FaceTime, email, Microsoft Teams and Zoom. During this time all staff endured the pressure of working from home in a very different way. The teams embraced this without question and continued to deliver as comprehensive a service as possible. During this time, we did not furlough any individual and were very proud of the low levels of sickness and the commitment and loyalty of staff, both to the client group and the organisation.
GRCC, Connexus Group Ltd and Independence Trust worked together to secure the transfer of Independence Trust from Connexus to GRCC as sole and controlling member. The Transfer was completed in August 2020. This was not an easy time, particularly for staff, as the transfer took place during lockdown when it was not possible for the two organisations to meet.
The organisation deliver s three services and they are:
CALMHS (Community Advice Links Mental Health Service)
CASA (Community Autism Support and Advice Service)
CWS (Community Wellbeing Service, Stroud and Berkeley Vale)
Overall Provision of Services
During the year and lockdowns clients continued to be contacted regularly and many were supported to access the local County Council hubs that had been set up to ensure people had access to prescriptions, food and other provisions. The client group needed much reassurance, positivity and contact so communication increased. As clients were being contacted in many different ways it proved to be a successful way of building relationships, trust and allowed the organisation to monitor changes in an individual’s mental health and wellbeing. Relationships also developed with other professionals as it was necessary to have more regular contact and work more closely together.
The pandemic also allowed the opportunity to encourage clients to take responsibility for themselves and engage with online resources such as support groups, art, education and special interests as well as regular ‘tea and chat’ groups. This supported clients to stay active and in contact with family and friends.
Despite there being a number of positives during the pandemic, clients across all services started to struggle in different ways. Those in CALMHS became afraid to leave their accommodation to go shopping, attend medical appointments or see family or friends. Others became frustrated and angry as lockdown went on , resulting in higher levels of anxiety.
For the majority of clients in the CASA services, they were enjoying lockdown as they did not have to mix with or meet people in the community. They enjoyed talking to people online, getting involved in courses, new hobbies, focus groups and phone or text support with staff.
The CWS service was engaged with people in the community mainly over the age of 55 and it quickly became apparent that they were experiencing feelings of isolation and loneliness and the contact the team had with them was essential. Independence Trust was able to link people with each other for friendly phone calls and through this, many friendships were made that continue to this day.
During the year the organisation worked closely with communities and local volunteering initiatives. Many areas, particularly in the Stroud/Berkeley Vale area, built Good Neighbour schemes which we were able to connect many clients to. This resulted in those who were feeling lonely and isolated receiving a card from a neighbor, letting them know that they were there if needed and many neighbours left small gifts on doorsteps which were much appreciated by older people in particular.
The teams got involved in schemes aimed at children, and helped to develop activity packs to be delivered to homes to help keep them occupied. This proved to be very successful and appreciated by many parents in the county.
Key Points and Outcomes
1,479 new referrals in the year across all three services
Approximately 900-1,000 calls made to clients across all services at the height of the pandemic
220 clients linked with services/hubs for delivery of prescriptions or food parcels
40 clients accessed peer support
63 families supported who called for information/advice
13 employers supported to make reasonable adjustments for employees
Involvement in a discharge from inpatient treatment facilities pilot project, helping patients to access community support before formal discharge
Involvement in pilot project with Primary Care to support the increase in uptake of Annual Health Checks for those with serious Mental Health Issues
Work with GP surgeries to highlight women’s health issues amongst the Autistic community
Production of a Covid-19 newsletter circulated to over 400 organisations in the county with client good news/positive stories
Production of a bi-annual magazine about the work of Independence Trust including client stories, circulated to 600 organisations and individuals
The reserves policy reflects the organisation’s underlying requirement to fund day to day discretionary activities. The reserves are needed to meet the working capital requirements of the charity and Management are confident that at the current balance of £ 493,052 they would be able to continue the current activities of the charity given continued tight financial controls and a 20 22-23 approved budget to deliver a surplus.
Investment Policy
Independence Trust receives funding throughout the year from a variety of sources, the majority of which is expendable within a twelve month period. Ease of access to liquid funds is necessary to maintain cash flow and therefore the Board of Trustees does not consider long term investments to be appropriate.
Risk Management
The Board of Trustees maintain a Risk Register and assess the major risks to which the charity is exposed.
The Trustees, who are also the directors of Independence Trust 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 Trust 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 Trust 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 Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with the company's articles, a resolution proposing that Griffiths Marshall be reappointed as auditor of the company will be put at a General Meeting.
The Trustees' r eport was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Independence Trust (the ‘Trust’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet 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 Trust 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 Trust’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' r eport; 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 s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Trust 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 Trust’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 .
We gained an understanding of the legal and regulatory framework applicable to Independence Trust and the industry in which it operates and, considered the risk of acts by Management and directors of Independence Trust which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006 and Employment Law. We made enquiries of the Directors to obtain further understanding of risks of non-compliance.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:
agreement of the financial statement disclosures to underlying supporting documentation;
enquiries of management regarding known or suspected instances of non-compliance with laws and regulations;
review of minutes of the Board meetings throughout the year; and
obtaining an understanding of the control environment in place to prevent and detect irregularities.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Griffiths Marshall is eligible for appointment as auditor of the Trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Independence Trust is a charitable company limited by guarantee, incorporated on 10 May 2000 and registered as a charity on 22 November 2000. The registered office is Community House, 15 College Green, Gloucester, GL2 2LZ.
The financial statements have been prepared in accordance with 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 Trust is a Public Benefit Entity as defined by FRS 102.
The Trust 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 Trust . Monetary a mounts in these financial statements are rounded to the nearest £.
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 Trustees have a reasonable expectation that the Trust 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.
Legacies, donations, gifts and bank interest are accounted for when they are received unless amounts receivable can be determined with reasonable accuracy.
Income from sales of donated goods is recognised when the goods are sold.
Grant income:
· Grants received for specific purposes are recorded as restricted grants in the period in which the grant related as directed by the donor.
· Grants received for a specific future period are recorded as restricted grants when received but deferred and held as a creditor until the period in which they relate.
· Grants which relate to performance and specific deliverables are accounted for as the charity earns the right to consideration by its performance.
Income is deferred when the donor specifies the income is for a future period or applies conditions that cannot be met until a future period.
Investment income is included when receivable.
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.
Expenditure is recorded on the accruals basis and liabilities are included when the legal obligation has been created.
Expenditure in charitable activities represents the costs incurred in carrying out the charitable objectives of the project.
Governance costs represent the cost of general administration functions of the charity.
Basis of apportionment of expenditure:
· Staff costs are allocated on a basis of time spent on each category of activity.
· Premises costs are allocated to direct charitable support costs.
· Depreciation provision is allocated on the basis of use of the assets.
· All other overheads are allocated to projects as a percentage of direct expenditure.
As a registered charity, the activities are generally exempt from Income Tax and Capital Gains Tax in connection with its direct charitable purpose, but not from VAT.
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 Trust 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 Trust 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 Trust 's balance sheet when the Trust 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 p aymen ts 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 Trust ’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 Trust 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 Trust’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.
Wellbeing services
Barnwood Trust
Wellbeing services
Barnwood Trust
Funding received
Grants
Wellbeing services
Barnwood Trust
Wellbeing services
Barnwood Trust
Direct costs
ICT costs
Premises
Office costs
Administration costs
Finance costs
The average monthly number of employees during the year was:
Deferred income is included in the financial statements as follows:
At the reporting end date the Trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The operating leases represent rental leases for office space due for renewal on 30 April 2024.
The remuneration of key management personnel is as follows.
In the period Gloucestershire Rural Community Council charged Independent Trust £91,858 (2021 - £83,300) for management and overhead services.