Wandsworth Mind Annual Report 2014/15

REGISTERED CHARITY NUMBER: 266065
REPORT OF THK TRUSTEES AND
FINANCIAL STATEMENTS FOR THK YEAR ENDED
31 MARCH 2014
FOR
WANDSWORTH MIND
Hartley Fowler LLP
Statutory Auditors
Chartered Accountants
4th Floor Tuition House
27/37 St George's Road
Wimbledon
London
SW19 4EU
WANDSWORTH MIND
CONTENTS OF THK FINANCIAL STATEMENTS
FOR THK YEAR ENDED 31 MARCH 2014
Page
Report
of the Trustees
Report
of the
Statement
Independent
1
Auditors
of Financial Activities
10 to 11
12
13
Balance Sheet
Notes to the Financial Statements
Detailed Statement
to9
of Financial Acdvities
14 to 19
20 to 21
WANDSWORTH MIND
REPORT OF THK TRUSTEES
FOR THE YEAR ENDED 31 MARCH 2014
The trustees present their report with the Enancial statements of the charity for the year ended 31 March 2014. The
trustees have adopted the provisions of the Statement of Recommended Practice (SORE) 'Accounting and Reporting by
Charities' issued in March 2005.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number
266065
Principal address
The Forester
114 Allfarthmg Lane
Wandsworth
London
SW18 2AB
Trustees
S Williiunson - Chair
J Panton —Deputy Chair
J Lawlor —Treasurer
D Brind - Executive Trustee
Chair
Deputy Chair
Treasurer
Executive Trustee &
Secretary
A Butt
H Reidy
M Alibhai
D Shoults
D Boswell
P Carr
—
appointed 6/11/13
- resigned 6/11/13
- resigned 6/11/13
G Gottshalk
G Jeanes
J Ripley
G Watson
resigned 26/9/13
resigned 6/11/13
— resigned 6/11/13
—
—
Acting CKO
Janice Horsman
Auditors
Hartley Fowler LLP
Statutory Auditors
Chartcrcd Accountants
4th Floor Tuition House
27/37 St George's Road
Wimbledon
London
SW19 4EU
Bankers
National Westminster Bank Plc
Wandsworth SW18 4ZD
Putney SW15 1RX
Santander UK Plc
Merseyside GIR OAA
EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end
of the year is given in
the notes to the financial statements.
WANDSWORTH MIND
REPORT OF THK TRUSTEES
FOR THE YEAR ENDED 31 MARCH 2014
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Wandsworth Mind is constituted under a trust deed
266065). The objects of the Charity are to promote
rehabilitating persons suffering from mental disorder
treatment, in association with Mind and in accordance
dated 21st February 1973 and is a registered Chanty (number
the preservation of mental health and to assist in relieving and
or conditions of emotional or mental distress requiring advice or
with the aims and objects of Mind.
and appointment of new trustees
The managcmcnt of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the
Articles of Associadon. Trustees are appointed with regard to the balance of their knowledge and skills and the mix of
skills then represented on the committee. Appointmcnts are made through existing Trustee contacts, advertising on the
websitc, local Mind associations and the local Mental Health Trust.
Recruitment
Induction and training of new trustees
Wandsworth Mind is committed to ensure that Trustees:
- Receive an induction at the first Executive Committee following their appointmcnt.
- Receive Charity Commission leaflets on responsibilities of being a Trustee and Code of Conduct, including
description.
— Executive Committee
members sign that they have received information
trustee and understand their effects.
Organisatiunal
on the roles and responsibihties
a job
of being a
structure
Wandsworth Mind's Trustees meet monthly and retain primary responsibility for the strategy and policies followed by
the organisation. Currently, the charity has 9 trustees drawn from a variety of backgrounds with regard to their various
mental health or operational competencies. Day to day operational responsibility for the organisation resides with the
acting Chief Executive (who also retains a primary CEO role in Westminster Mind). Our acting CEO is supported by
line managers in both Housing and the Resource Centre, and an Office Manager. The line managers retain day-to-day
responsibility for the delivery of our services. Other staff members (5) report into their relevant line managers. We make
extensive use of volunteer and part time services in the Resource Centre. Our retail strategy is the responsibility of the
Shop Manager, and our retail consultant and is overseen by the Treasurer.
Wider network
Wandsworth
Mind is affiliated to National Mind (Charity No 219830 Company No 424348).
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure
controls are in place to provide reasonable assurance against fraud and error.
appropriate
All risks are kept under regular review by Trustees. This includes arrangements for effective policy making, monitormg
of operational management, HR, Finance and Health & Safety. These are monitored by the Trustees and necessary
actions taken to mitigate those risks as far as possible.
Wandsworth Mind (WM) embraces a policy of operating within its financial resources. It uses active budgetary and
analytical processes to monitor both funds raised and expenditures on a continuous basis through the year. The
management accounts are reviewed monthly and the budget adjusted accordingly prior to presentation to Trustccs. All
financial decisions are taken by the Executive Committee in accordance with this policy and after review of materials
presented to it.
The Chanty remains susceptible to risk in those services dealing with cash. However,
minimise this risk, and procedures remain under review.
-2-
it has safeguards
in place
to
WANDSWORTH MIND
RKPORT OF THK TRUSTEES
FOR THK YEAR ENDED 31 MARCH 2014
OBJECTIVES AND ACTIVITIES
Objecdves and aims
a. POLICIFS AND OBJECTIVES
Wandsworth Mind's strategy is formulated by reference to health and social policy locally and nationally and through
to
affiliation with National Mind. For more than 30 years the Charity has pursued a simple objective of endeavouring
help to improve the quality of life of people who are affected by mental illness in Wandsworth. To this end we directly
tackle the problems of isolation suffered by the mentally ill, an isolation which can damage both the individual's sense of
well being, their social interactions and their economic status. Through a combination of supervision and support we
offer a wide range of services and acdvities intended to enable empowerment and facilitate the journey of recovery of
our service users. We do this by working in partnership with individuals, their careers, voluntary and statutory agenciers
and the local commumty. The Charity's work will always be informed by best practice and we continue to draw on the
support and guidance of National Mind. The policies and procedures necessary to meet these objectives are regularly
reviewed and were last subject to an audit by National Mind in November 2013.
b. STRATEGIES FOR ACHIEVING OBJECTIVES
There have been very substantial changes to the funding of the Charity in recent years with the shiit away from block
funded contracts for services, towards personal budgeting. This change has very considerably reduced our funding but so
far without any contraction in our provision of services or change of aim away from promoting recovery and social
inclusion. The Charity is in the process of adopting proper and proven outcome measures.
The housing support service works closely with Wandsworth Councips Supporting People team, which monitors the
service on a quarterly basis and formally reviews it annually. This contract was renegotiated in 2012/13 resulting in a
very substantial reduction in contributions but extension of the contract term to March 2015. The contract for 2015/16
and beyond is currently expected to go to tender and thc Charity is looking to do this in conJunction with Westmmster
Mind, hopefully as a newly merged entity.
Wandsworth Mind actively supports the participation of service users on the Executive Committee and sub-committees
and at other forums. Users continue to have a vital role in helping the Charity meet its objectives.
c. ACTIVITIES FOR ACHIEVING OBJECTIVES
In 2013/14 Wandsworth Mind provided 44 tenants with dedicated professional
Council contract for Supporting People.
support in hne with its Wandsworth
The Charity runs a Resource Centre which provides support, therapeutic activities, education services, training, other
activities and group events in the centre, in the community and through organised trips.
Wandsworth Mind is represented at Supporting People fotums, on the Black and Ethnic Minonty User Group, and at
other forums throughout the borough.
Public benefit
The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have duc regard to thc public
benefit guidance pubhshed by the Chanties Commission.
Social or programme
Investment
related investments
is kept under review by Trustees.
Volunteers
A number of excellent and committed volunteers make a valuable contribution to the day-to-day running of thc Charity's
services, both at the Resource Centre and at its shop.
WANDSWORTH MIND
REPORT OF THK TRUSTEES
FOR THE YEAR ENDED 31 MARCH 2014
OBJECTIVES AND ACTIVITIES
Financial Overview
The Charity has now finally recovered from a period of acute financial difficulty: a period when unrestncted funds fell
by %613,000 in the 3 years up to 2008/09 and in 2008/09, 2009/10, and 2010/11 then remained in deficit. This troubled
position owed to an unduly slow management reaction to a loas of block funding - and was something which clearly
threatened the Charity's viability. To make sure that the financial position recovered, while services to users werc
maintained, the Trustees cut administration costs by approximately f 250, 000 between 2008 and 2011.
In the 2013-14 period of account we are pleased to report unrestricted funds, of f912, 170 (f90,504 2012/13) — noting
that the pnmary uplift in the year derived fiom changes to the valuation of Allfarthmg Lane (sce commentary below).
Our proposed merger with Westminster Mind is intended to complete
contingent on satisl'actory completion of due diligence by both sides.
on 31st January
2015 but timmg
remains
The Charity's pnncipal funding in 2013/14 came I'iom its resource centre activities, housing operations, shop, office
costs
rentals and donations. The operating deficit of f.l4, 649 sustained in the period, reflected a number of non-recurrent
costs
in
relation
to
one
employee
dispute,
mcluding temporary coverage costs in admimstration and housing, settlement
and some costs relating to the intended merger with Westminster Mind. It also reflecte the increase in the depreciation
charge from f 7,878 in 2012/13 to F 16,047 in 2013/14 resulting from revaluation of the Allfarthing Lane property fixed
asset.
We note that the housing operation has experienced both a f 82, 000 reduction in the Supporting People budget over the
two years to 2013/14, and a high level of voids cuhninating in a much lower financial contnbution.
This reduced housing result was largely offset by raised contributions from thc Resource Centre and rental of office
space to DASL (Battersea Alcohol Service). The financial target for the Charity is to continue to achieve an operating
breakeven result, or better, in the 2014-15 financial period although some further merger related costs are to be
expected.
Thc major financial change in the period was the National Lottery's indication that it had reduced its asset liability
period m respect of the treatment of the f260, 000 grant that backed the original acquisition of Allfarthing Lane in 1997,
cutting this from 20, to 10 years. This has created two very material impacts on our balance sheet position:
1) This clarification has permitted the Charity to reclassify f262, 946 of restricted reserves as muestricted.
2) Secondly, the fact the Charity now has title to Allfarthing Lane, suggests that in accordance with FRS15 a periodic
revaluation of the property fixed asset to be a more appropriate accounting approach, than a depreciated purchase cost
basis, particularly given thc huge appreciation in London property values sustained since thc property was originally
acquired. Accordingly, we have adopted a new accounting policy centred on periodic revaluation every 5 years.
The appointed independent external surveyor (Lamberts Chartered Surveyors of 387 City Road, London ECI V INA)
has carried out a valuation of the property distinguishing between the land and buildings values. Its report (dated
31/10/2014), which was made on an existing use basis, derived a valuation of f800, 000 for the property and f350,000
for the land giving an implied residual building value of f450, 000 on which the depreciation charge (based on an
assumed 30 year useful life) will now be applied. Prior to the revaluation the property was carried in the accounts at
historic cost ol f355, 273 with accumulated depreciation of $113,642 resulting in a nct book value of f241, 631.
As a consequence
been established.
of the revaluation exercise a revaluation reserve
within unrestricted
reserves
In con)unction with the reclassification of restricted reserves this has lifted our unrestricted
(f90,504 2012-13): a clearly transformational change.
of f573,369 has now
reserves
to f912, 170
WANDSWORTH MIND
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 MARCH 2014
OBJECTIVES AND ACTIVITIES
In time the Charity is also expected to become the beneficiar of a material property bequest in respect of a maisonette.
In accordance with SORP 124(b), this remains held off balance sheet because the property is being held in trust pending
resolution of a number of complications including. a lack of liquidity to meet all the liabilities and a life tenant (87 years
old) in residence. It is planned that post merger a legal agreement is secured which promptly allows the merged entity to
assume full title to the property and address the liabilities. This in turn should permit consolidation of the asset. The
property had a probate value of f425, 000 and has a current market value estimated in excess of f500, 000. The bequest
does, however, carry a contingent liability in the region of cf47, 000 (principally relating to legal fees, and inheritance
balanc sheet asset remains in thc region of f 450, 000.
tax). Nonetheless, the net imphed economic value of this
off
In 2009/10 Charity I'unds stood at just f253,476 (split f262, 946 restricted reserves / and a deficit of 69,470 unrestricted
reserves) and net current assets were in deficit by f9,470. At 31st March 2014 Charity Funds stood at f912, 170 of (split:
60 restncted and f f 912, I 70 unrestricted) and net current assets stood at f 1 10554 (more than 90% comprised of cash at
bank).
So if we take into account the off balance sheet net asset of cf450, 000 the prospective merger with Westminster Mind is
evidently not driven by any financial necessity, but rather a shared strategic objective and the ambition to modernise and
improve our services to users at a time of dynamically changing funding structures for mental health generally.
In the opinion of the trustees this financial recovery now forms a very strong base I'rom which to proceed with
planned merger.
the
WANDSWORTH MIND
REPORT OF THE TRUSTEES
FOR THK YEAR ENDED 31 MARCH 2014
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The housmg support service continues to provide housing management in one house (two properties in 2013/14) and
housing related support in 10 shared houses, aimed at promotmg stability, recovery and social inclusion. The Supporting
People contract was renegotiated in 2012/13 resulting in a very substantial reduction in contract value but extension in
the contract term to March 2015. This reduced contract value was subject to further deductions in 2013/14 as a result of
Anti-social behaviour by one tenant in a shared house managed by a housing association, which caused a number of
voids. The level of voids at times depends on housing demand from potential clients leaving hospital or family homes,
ready to move and receive required housing related support. There has aLso been an observable trend away from funding
shared occupancies - one factor that is expected to result in reduced tenancies in 2014/15. The voids level and
turn-around is managed with regular reports to senior Managers and trustees. Currently, we plan to tender for a new
contract in 2015/16 and would expect to do so in conjunction with Westminster Mind.
Wandsworth Mind continues to run a Resource Centre for service users who are all on personal budgets. Thc avcragc
funded user count for 2013-14 was 56. The centre organises its activities to enable empowerment and facilitate the
journey of recovery of its service users. As part of this process the Resource Centre seeks to provide users with
appropriate support, therapeutic activities, education services, training, other activities and group events. Service users
are also supported in using mainstream services in the community. The Resource Centre provides a wide range of
activities, education and training opportunities. Activities aim to optimise wellbeing and the acquisition of new skilLs.
Accordingly, users engage in exercises to maximise cognitive activity; participate in support groups; undertake physical
exercises; and receive dietary advice on how to deliver healthy meals or enhance cooking skills. We also ny to help
users acquire improved IT skills, learn languages and undertake training in catering. Thc Centre also provides
opportunities for pastimes and hobbies in a safe environment where people can build their social resilience.
Thc Resource Centre provides paid work opportunities for some service users and also supports people in using facilities
in the community. Our strategy is to deliver a service which is outcome focused. Each user is encouraged to regularly
review the service they receive to ensure they are being supported in maximising their potential.
Wandsworth Mind currently operates one charity shop in the vicinity of tbe Roehampton estate (41 Danebury Avenue
SW15). There is no lease attaching to the rental so it can be surrendered at short notice and with no penalty. The area
around the shop is predominantly comprtsed of social housing. The shop's management believes footfall and average
spend has been adversely impacted by cuts to social security benefits. This means that while revenues have grown by
nearly 50'/0 over the last 2 years, growth is expected to moderate significantly hereon. As a result new retail locations are
now being actively reviewed and the plan is to open another shop in an improved location as soon as possible and to
review our commitment to Roehampton again at this stage. The new shop is intended to both improve profitability and
increase scope for user participation in retail activities. Our current target for shops operated by the Charity is to
generate a minimum f.10,000 annual contribution per unit to the Charity. This target is subject to review once the second
shop is up and running. In anticipation of expansion some training costs were incurred in 2013/14.
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WANDSWORTH MIND
REPORT OF THK TRUSTEES
FOR THE YEAR ENDED 31 MARCH 2014
ACHIEVEMENT AND PKRFORMANCK
Fundraising activities
Wandsworth Council's Supporting People programme pays the Charity a grant (in 13 instalments per year) to cover the
salartes of dedicated housing support staff and a proportion of associated management time. The Charity derives further
income in the form of housing benefit, which is now paid by 4 tenants in the one house for which Wandsworth Mind has
ongoing housing management responsibility. The Supporting People contract was renegotiated in 2012/13 resulting in a
substantial reduction in contract value to f109,000 but extension in the contract term through to March 2015. We expect
to tender for renewal of this contract in conj uncnon with Westminster Mind for the 2015/16 period of account.
The Resource Centre is primarily funded via Direct Payments (money approved by NHS Trust care coordinators and
funds given by Wandsworth Council to service users, who in turn pay the centre for traming and activities).
The shop continues to generate a positive contribution to the Charity, although training expenses and cuts to social
security benefits in the Roehampton estate customer base reduced its profitability in 2013/14. Retail expansion mvolving
a change of location is aimed to improve profitability in coming years.
In the pertod of account the Charity also received rental incomes from use of office space and meeting rooms
Allfarthing Lane by DASL (Battersea Alcohol Service).
Thc Charity continues to target a break even or better operating result and continues to aim to secure additional
in
external
funding.
Investment
performance
Wandsworth Mind's principal asset comprises the Allfarthing Lane property and this is carried in our books as a lixed
asset rather than an investment. Therefore, while investment policy is kept under review by Trustees the primary
investable assets currently comprise cash on deposit. In the planned event of merger with Westminster Mind a full
review of asset strategy is expected to take place.
The Charity is the notihed beneficiary
remains held olf balance sheet.
of a
property bequest which in accordance with SORP paragraph
124, currently
There are no restrictions on the Chartty's power to invest other than those laid down by the Charity Laws.
FINANCIAL REVIEW
Reserves policy
There have been major changes to reserves in the 2013/14 period of account:
1) The change in status of the Allfarthing property asset referred to above has permitted us to reclassify f262, 946 of
restricted reserves as unrestricted
2) Revaluation of the Allfarthing aaset has caused both the write back of historic depreciation and the creation of a
revaluation reserve within unrestricted funds
In combination these reserve changes have caused Charity Funds to rise to f912, 170 (f 353,450 — 2012/13). In terms of
the split there are no longer any restricted reserves (f262, 946 - 2012/13), and unrestricted reserves stand at f912, 170
(f90,504 — 2012/13).
It is the policy of the Charity to maintain reserves at a level sufficient to provide for staff contingencies, renovation,
refurbislunent and upkeep of freehold premises or to cover liabilities, which might arise in the event of a winding-up.
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WANDSWORTH MItVD
REPORT OF THK TRUSTEES
FOR THK YEAR ENDED 31 MARCH 2014
FINANCIAL REVIEW
Principal funding sources
The Trustees consider the performance of the Charity to have
2008-09, 2009-10 and into 2010-11 established the basis for the
years. There has been an historic shift in Wandsworth Council's
towards personal budgeting for service users. This has materially
Mind.
stabilised. Efficiencies made over the later part of
recovery in the financial perfonnance in subsequent
funding emphasis away 1'rom block funding grants
reduced the Council's contributions to Wandsworth
Thc Charity continues to solicit donations, grants and bequests.
The turnaround in results means that future externally generated funds can be expected to add to the Charity's
buffer (Unrestricted Funds).
financial
FUTURE DEVELOPMENTS
of the recovery fiom very material historic losses the Charity's Trustees continue to prioritise actions that
current and prospective financial stability to users and other key Charity stakeholders.
ln light
deliver
Wandsworth Mind is currently in the fmal stages of merger negotiations with Westminster Mind with thc aim of creating
a larger, more efficient operation and an improved user proposition. The target for merger completion is the 31st of
January 2015, although this deadline remains contingent on satisfactory interim due diligence being completed by both
sides. On merger with Westminster Mind we expect to launch a new integrated strategy. The merger should greatly
facilitate the likelihood of renewing the Supporting Peoples Contract when this expires on 31/3/15.
Currently, the Charity seeks to improve its contact with the local community, The Mental Health Trust and other service
providers to identify opportunitics for joint working and any gapa in service provision. Wandsworth Mind continues to
organise its activities to enable empowerment and facilitate the journey of recovery of its service
users. policies and procedures have been regularly reviewed and will again be subjected to tri-annual National Mind
audit in 2016. Service users are continuously consulted via meetings, focus groups and will be informed about our
resulting strategic objectives via written correspondence. Wherever possible and in partner. hip with service users, the
Charity aims to make better use of mainstream community provision.
into the building whenever appropriate opportunities arise. The Charity
been successful m engagmg service users which are representative of the local community and continues to review
monitor services to ensure inclusivity for the local community.
Thc Charity invites the local community
has
and
EMPLOYEE INVOLVEMENT AND KMPLOYMKNT OF THK DISABI.KD
Senior staff take an active part in Executive Committee meetings and are consulted both formally and informally about
all aspects of the Charity's work and business planning. There are a number of dilferent forums, which meet regularly, in
which all employees have an opportunity to provide feedback and input on the development of the Charity's practice and
strategy.
The Charity has a lift to enable physically
building.
disabled
service users and employees
to use all but the top floor
of
the
WANDSWORTH MIND
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 MARCH 2014
STATEMENT OF TRUSTEES RESPONSIBILITIES
The trustees are responsible for preparing the Report ol'the Trustees and the financial statements in accortlmicc with
applicable law and United Kingdom Accounting Standards (United Kingdom General)y Accepted Accounting Practice).
The law applicable to charities in I'ingland and Wales, the Charities Act 2011, Chatty (Accounts mid Reports)
Regulations 2008 and the provisions of the trust deed rcquircs thc trustccs to prepare Iinancial statements for each
tinancial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and
ol' the charity for that period. In preparing
application of resources, including the income and expenditure,
those
financial statements, the trustees are required to
select suitable accounting policies and then apply thein consistently;
observe the methods and principles in the Charity SOEP,
make judgements and estimates that are reasonable and ptudent;
prepare the financial statements on the going concern basis unless it is inappropriate
will continue in business.
to presume that the charity
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time
the financial position of the charity and to enable them to ensure that the financial stateinents comply with thc Charities
Act 2011, the Charity (Accounts and Reports) Regu)attune 2008 and the provisions of the tmst deed. They are also
responsible for saleguarding the assets of the charity and hence for taking reasonable steps for the prevention
and
detection of fi aud and other inegularities.
Approved by order
RYky4
S Willimnson
of the
board
of trustees
on 3 December 2014 and sigtted on its behalf by:
'MnW~m
— Chair
- Trustee
-9-
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF
WANDSWORTH MIND
We have audited the financial statements of Wandsworth Mind for the year ended 31 March 2014 on pagi:s twelve to
nineteen. The financial reporting framework that has been applied in their preparation is applicable law and United
Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the chanty's trustees, as a body, in accordance with Section 145 of the Charities Act 2011
and regulations made under Section 154 of that Act. Our audit work has bccn undertaken so that we might state to the
charity's trustccs 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 chanty and the
charity's trustees as a body, for our audit work, for this rcport, or for the opinions we have formed.
Respective responsibilities of trustees and auditors
As explained more fully in the Statement of Trustees Responsibilities set out on page nine, the trustees are responsible
for the preparation of the tinancial statements which give a true and fair view.
We have been appointed as auditors under Section 145
regulations made under Section 154 of that Act.
of the
Charities
Act 2011 and report in accordance
with
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices
Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.
This includes an assessment of: whether the accounting policies are appropriate to the charity's circumstances and have
been consistently applied and adequately disclosed; the reasonableness of significant accounting esiimates made by the
trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial
information in the Report of the Trustees to identify material inconsistencies with the audited financial statements and to
identify any mformation that is apparently materially incorrect based on, or materially inconsistent with, the knowledge
or
acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements
inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the tinancial statements:
give a true and fair view of the state of the charity's affairs as at 31 March 2014 and of its incoming resources
and application of resources for the year then ended;
have been properly prepared in accordance with United Kmgdom Generally Ai:i:epted Accounting Practice; and
have been prepared in accordance with thc requirements of the Charities Act 2011.
-10-
REPORT OF THK INDEPENDENT AUDITORS TO THK TRUSTEES OF
WANDSWORTH MIND
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you
if, in our opinion:
the information given in the Report of the Trustees is inconsistent in any material respect with the financial
statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Hartle
owler LLP
Statutory Auditors
Chartered Accountants
Fligible to act as an auditor in terms
4th Floor Tuition House
27/37 St George's Road
Wimbledon
London
of Section 1212 of the Companies Act 2006
SW19 4EU
4 December 2014
-11-
WANDSWORTH MIND
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2014
2014
Unrestricted
funds
2013
Restricted
Total
Total
fund
funds
funds
f.
Notes
INCOMING RESOURCES
Incoming resources from generated funds
10,383
528
10,383
528
9,871
342
Charitable activities
371,117
371,117
400, 201
Total incoming resources
382,028
382,028
410,414
393,042
3,635
356, 548
Governance costs
393,042
3,635
Total resources expended
396,677
396,677
357,478
(14,649)
(14,649)
52, 936
(14,649)
52, 936
Voluntary income
Investment income
2
3
Incoming resources from charitable activities
4
RESOURCES EXPENDED
Charitable activities
Charitable activities
930
NKT INCOMING/(OUTGOING)
RESOURCES BEFORE TRANSFERS
Gross transfers between funds
Net incoming/(outgoing)
15
resources
262, 946
(262, 946)
248, 297
(262, 946)
Other recognised gains/losses
573,369
573,369
Revaluation gains
RECONCILIATION OF FUNDS
90,504
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
262, 946
912,170
CONTINUING OPERATIONS
All incommg resources and resources expended arise from continuing
The notes form part
of these
-12-
activities.
financial statements
353,450
300, 514
912,170
353,450
WANDSWORTH MIND
BALANCE SHEET
AT 31 MARCH 2014
2014
2013
801,616
242, 926
9, 137
141,465
2,030
140,494
150,602
142,524
(40,048)
(32,000)
110,554
110,524
LIABILITIES
912, 170
353,450
NET ASSETS
912,170
353,450
912, 170
90,504
262, 946
912,170
353,450
Notes
FIXED ASSETS
Tangible assets
CURRENT ASSETS
12
Debtors
Cash at bank
CREDITORS
13
Amounts falling due within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
15
FUNDS
Unrestricte funds
Restricted funds
TOTAL FUNDS
The financtal statements were approved by the Board
of Trustees
on 3 December 2014 and were signed on its behalf by:
o
8 Williamson
J Lawlor
—
'hair-Trustee
—Treasurer-Trustee
The notes form part
of these financial statcmcnts
WANDSWORTH MIND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2014
ACCOUNTING POLICIKS
Basis of preparing the financial statements
The financial statements have been prepared in accordance with the Statement
(SORP), "Accounting and Reporting by Charities", revised in 2005.
of Recommended
Practice
Accounting convention
The financial statements have been prepared under the historical cost convention, as modified by the revaluation
of certain assets the Charities Act 2011 and the requirements of the Statement of Recommended Practice,
Accounting and Reporting by Charitics.
Incoming resources
All incoming resources are included on the Statement of Financial Activities when the charity is legally
to the income and the amount can be quantified with reasonable accuracy.
Voluntary income is received by way
Financial Activities when receivable.
investment
of donations and legacies and is included
income are included in the Statement
entitled
in full in the Statement
of
of Financial Activities on a receivable basis.
Donated services and facilities are included at the value to the charity where this can be quantified.
services provided by volunteers has not been included m these accounts.
Thc value
of
Resources expended
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost
related to the category. Where costs cannot be directly attributed to particular headings they have been allocated
to activities on a basis consistent with the use of resources.
Charitable activities
Charitable expenditure comprises of those costs incurred by the charity in the delivery of its activities and
services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs
of an indirect nature necessary to support them.
Governance costs
Governance costs include those costs associated with meeting the constitutional
charity and include the audit fees.
and statutory requirements
of
the
Allocation and apportionment of costs
Support costs include those overhead costs that are not directly attributable to the charity's activities. Support
costs include wages and salaries, insurance, telephone, postage and stationery, general expenses, repairs and
renewals, oflice running expenses, affiliation fees and consultancy fees, which are in support of the charity's
activities.
Tangible fixed assets
Dcprcciation is provided at the following annual rates in order to write off each asset over its estimated
life.
Freehold property — over 30 years
FIxtures and fittings — 20% straight line
Motor vehicles — 25% straight lme
items costing more than
f250 are capitalised.
Taxation
The charity is exempt from tax on its charitable activities
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useful
WANDSWORTH MIND
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
FOR THK YEAR ENDED 31 MARCH 2014
1.
ACCOUNTING POLICIKS
—
continued
Fund accounting
Unrestricted
funds can be used in accordance with the charitable objectives at the discretion
of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity.
arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation
2.
of the
nature and purpose
of each
fund is included in the notes to the financial statements.
VOLUNTARY INCOME
2014
2013
4, 773
5,610
9,871
10,383
9,871
2014
2013
528
342
2014
2013
51,000
149,139
117,629
53,349
69, 154
116,280
186,292
28, 475
371,117
400, 201
Direct costs
(See note 6)
Support costs
(See note 7)
Totals
285, 920
107, 122
393,042
2014
135,268
106,748
43,904
2013
f.
134,387
97,239
33,613
285, 920
265, 239
Donations
Legacies
3.
INVKSTMKNT INCOME
Deposit account interest
4.
Restrictions
INCOMING RESOURCES FROM CHARITABLE ACTIVfl'IKS
Activity
Takings from shop
Income I'rom resource centre
Rental income
Service charges from tenants
5.
Charitable
Charitable
Charitable
Charitable
activities
activities
activities
activities
CHARITABLE ACTIVITIES COSTS
Charitable activities
6.
f
DIRECT COSTS OF CHARITABLE ACTIVITIES
Shared houses
Resource Centre
Charity Shop
-15-
WANDSWORTH MIND
NOTES TO THK FINANCIAL STATEMENTS - CONTINUED
FOR THK YEAR ENDED 31 MARCH 2014
7.
SUPPORT COSTS
Management
g
107,122
Charitable activities
Support costs, included in the above, are as follows;
Management
2014
Charitable
activities
Wages
Insurance
Telephone
Postage and stationery
General expenses
Repairs and renewals
Office running expenses
AAiliation fees
Consultancy fees
Depreciadon of tangible and heritage assets
8.
2013
Total activities
12,570
3,291
5,090
8,084
17,222
2, 869
4, 968
755
36,226
16,047
15,263
1,785
5, 366
6, 848
22, 204
12,050
1, 184
1,093
17,638
7,878
107,122
91,309
2014
2013
GOVERNANCE COSTS
930
Accountancy
Auditors' remuneration
3,635
3, 635
930
TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remunixation
31 March 2013.
or other benefits for the year ended 31 March 2014 nor for thc year ended
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2014 nor for the year ended 31 March 2013.
-16-
WANDSWORTH MIND
NOTES TO THK FINANCIAL STATEMENTS
FOR THK YEAR ENDED 31 MARCH 2014
10.
—
CONTINUED
STAFF COSTS
Wages and salaries
2014
2013
f.
12,570
15,263
2014
2013
11
ll
The average monthly number of employees during the year was as follows:
Staff
No employees received emoluments
in excess
of f 60,000.
The above costs relate to wages and salaries not attributable
Shop.
to Shared Housing, Resource Centre and the Charity
Wages and salaries costs included in Shared Housing, Resource Centre and Charity Shop total
f 176,553 plus employers National insurance Contributions f11,347).
11.
f187,900
(gross
TANGIBLE FIXED ASSETS
Freehold
property
Ftxturcs and
tittings Motor vehicles
TotaLs
COST OR VALUATION
355,273
At 1 April 2013
Additions
Revaluations
444, 727
At 31 March 2014
800,000
DEPRECIATION
At 1 April 2013
113,642
15,000
(128,642)
Charge for year
Revaluation adjustments
1,044
1,368
2, 050
358, 367
1,368
444, 727
2, 412
2, 050
804,462
261
535
1,538
115,441
16,047
(128,642)
796
At 31 March 2014
512
2, 050
2, 846
NKT BOOK VALUE
At 31 March 2014
800,000
1,616
801,616
At 31 March 2013
241,631
783
242, 926
Included in cost or valuation
of land
and buildings
is freehold land
of f 350,000
The chanty's property at Allfarthing Lane has been revalued in 2014 to f 800, 000 on an existing use value basis
by Lamberts Chartered Surveyors, an external valuer, and in accordance with RICS Valuation Professional
Standards incorporating the International Valuation Standards. The valuation report also indicated that the
building value is 8450, 000 and has a useful economic life of 30 years. Prior to the revaluation the property was
included in the accounts at historic cost of f355,273 and accumulated depreciatton of f113,642 and a net book
value
of f241,631.
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WANDSWORTH MIND
NOTES TO THK FINANCIAL STATEMENTS - CONTINUED
FOR THE YEAR ENDED 31 MARCH 2014
12.
DEBTORS: AMOUNTS FALLING DUK WITHIN ONE YEAR
Other debtors
13.
2013
9, 137
2, 030
2014
2013
15,622
3,243
21, 183
32,000
40, 048
32,000
CREDITORS: AMOUNTS FALLING DUE WITHIN ONK YEAR
Trade creditors
Taxation and social security
Other creditors
14.
2014
ANALYSIS OF NET ASSETS BETWEEN FUNDS
2014
Fixed assets
Current assets
Current liabilities
15.
2013
Unrestricted
Restricted
Total
Total
funds
fund
funds
funds
801,616
150,602
(40,048)
801,616
150,602
(40,048)
242, 926
142, 524
912, 170
912, 170
353,450
(32,000)
MOVFMENT IN FUNDS
At 1/4/13
Net movement
in funds
Transfers
between funds
At 31/3/14
Unrestricted funds
General fund
Revaluation reserve
90,504
(14,649)
573,369
262, 946
338,801
573,369
90,504
558, 720
262, 946
912, 170
Restricted funds
Allfarthing
Lane
TOTAL FUNDS
(262, 946)
262, 946
353,450
-18-
558,720
912, 170
WANDSWORTH MIND
1VOTES TO THE FINAiVCIAL STATEMENTS - CONTINUED
FOR THK YEAR ENDED 31 MARCH 2014
15.
MOVEMKNT IN FUNDS - continued
Net movement m funds, included in the above are as follows:
Incoming
resources
Resources
expended
Gains and
losses
Movement in
funds
8
Unrestricted
funds
General fund
Revaluation reserve
TOTAL FUNDS
382,028
(396,677)
573,369
(14,649)
573,369
382,028
(396,677)
573,369
558,720
382,028
(396,677)
573,369
558,720
Following the revaluation of the Allfarthing Lane property, a revaluation gain of f573, 369 has arisen and
accordingly this has been reflected as a revaluation reserve within unrestricted funds. This property is held for the
charity's own use and not for investment purposes.
Transfers between funds
During the year the charity received notification from the Big Lottery Fund that a restriction on the Allfarthing
Lane property had been removed. Accordingly, the propcrty has been transferred &om restricted funds to
unrestricted funds.
16.
CONTINGENT I,IABH. ITIKS
In June 2011 Wandsworth Mind becmne a residuary beneficiary in the estate of a former service user of
Wandsworth Mind. The estate consisted of cash and a residential property. The donor had granted a life interest
in the property to a relative who continues to reside in the property. The property cannot be recognised as an
asset of Wandhworth Mind whilst the life tenant remains in the property.
The aforementioned estate has incurred inheritance tax liabilities of approximately 547, 000 and which are the
responsibility of the estate's executors. The trustees of Wandsworth Mind have been advised by the estate's
executors that there are insufficient funds to scttlc the inheritance tax liability. The trustees of Wandsworth Mind
have obtained legal advice, and it is possible that Wandsworth Mmd may have responsibiliiy for settling the tax
liability if new executors are appointed to replace the existing executors.
As these financial statements will be approved before the aforementioned
consider it necessary to disclose these contingent events.
17.
issues are resolved,
the
trustees
POST BALANCE SHEET EVENTS
The trustees of Wandsworth Mind are in negotiations with another charitable organisation which may result in a
merger between both organisations. These financial statements will be approved before the conclusion of the
merger negotiations.
-19-