ways to wellness foundation - charity commission
Post on 25-Apr-2023
1 Views
Preview:
TRANSCRIPT
Registered number: 09183805Charity number. "1161123
Ways to Wellness Foundation
(A company limited by guarantee)
Annual report
31 INarch 2018
Ways to Wellness Foundation(A company limited by guarantee)
Contents
Page
Reference and administrative details
Trustees' report 2-7
Trustees' responsibilities statement
Independent auditor's report 9-11
Consolidated statement of financial activities 12
Consolidated balance sheet 13
Company balance sheet 14
Consolidated statement of cash flows 15
Notes to the financial statements 16-26
Ways to Wellness Foundation(A company limited by guarantee)
Reference and administrative detailsYear ended 31 March 201S
Trustees
Christopher Drinkwater, ChairSir Paul Ennals, Vice Chairlan DoddsPaul CorriganMary JordanAdam Glass (resigned 18 January 2018)John Spurr (appointed 13 September 2018)
Company registered number
09183805
Charity registered number
1161123
Registered office
UNW LLPCitygateSt James' BoulevardNewcastle upon TyneNE1 4JE
Chief executive officer
Tara Case
Independent auditor
UNW LLPChartered AccountantsCitygateSt James' BoulevardNewcastle upon TyneNE1 4JE
Ways to Wellness Foundation(A company limited by guarantee)
Trustees' reportYear ended 31 March 2018
The trustees present their annual report together with the audited financial statements of the group and thecompany for the year 1 April 2017 to 31 March 2018. The trustees confirm that the Annual Report and financialstatements of the company comply with the current statutory requirements, the requirements of the company'sgoverning document and the provisions of the Statement of Recommended Practice (SORP), applicable tocharities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK andRepublic of Ireland (FRS 102) (effective 1 January 2015) as amended by Update Bulletin 1 (effective 1 January2015).
Objectives and Activities
Policies and objectives
The Foundation's objects are:
to preserve and protect the health of people and to improve the quality of life of people with long termhealth conditions by promoting access to social prescribing services; and
to advance education of the general public and medical practitioners in relation to social prescribingservices and other similar interventions; and
such other exclusively charitable purpose(s) as the trustees may from time to time determine in
accordance with the law of charity.
Strategies for achieving objectives
The Ways to Wellness Foundation ('the parent charity') is the beneficial owner of and sole shareholder of itstrading subsidiary, Ways to Wellness Limited, which together are referred to as the 'group'. Ways to WellnessLimited hosts and delivers social prescribing services to patients living with long term health conditions, holdingand managing contracts with service providers, social investors and commissioners. Ways to Wellness beganworking with people living with long term health conditions in the West of Newcastle upon Tyne in April 2015.Ways to Wellness has an innovative funding and contracting structure, developed to deliver social prescribing'at scale' with social impact bond (SIB) investment.
This ground-breaking partnership is between public sector commissioners, local social sector organisations,and Bridges Fund Management, a specialist social impact investor, making it the first Social Impact Bond (SIB)funded healthcare service in the UK.
Social prescribing is the use of non medical interventions to achieve sustained lifestyle change and improvedself care among people with long term health conditions such as diabetes and heart disease. Ways to WellnessLimited aims to reach approximately 10,000 patients over seven years, supporting up to 2,700 patients at anyone time and significantly improving health and wellbeing outcomes for people living with long term healthconditions.
This long term, comprehensive social prescribing service is offered to all patients who meet the eligibilitycriteria. Ways to Wellness Limited Link Workers, trained in behaviour change methods, work with patients on aone to one basis to identify health and wellness goals that are meaningful to them. Clients are supported todevelop sustainable healthy behaviours and learn to confidently self manage their conditions to live healthierand more fulfilling lives, while reducing their dependency on traditional health services.
In accordance with the Charities Act 2011, the trustees have referred to the guidance contained in the CharityCommission's general guidance on public benefit when reviewing the aims and objectives of the charity andwhen planning the future activities.
Ways to Wellness Foundation(A company limited by guarantee)
Trustees' report (continued)Year ended 31 March 2018
Achievements and performance
Patient En a ementIn the first three years of operation (April 2015 to March 2018), Ways to Wellness Limited received 4,322referrals, of which 3,348 have thus far engaged with the service. In 2017-18, 1,673 referrals were generated, ofwhich 1,265 patients engaged on the service, an 11%and 8% increase, respectively, on the previous year.
Im act MeasurementWays to Wellness Limited measures impact in two key ways, which are both linked to outcome payments fromcommissioners: (a) improvements in patient reported wellbeing; and (b) reduction in secondary care (hospital)costs in the full cohort compared to a similarly matched cohort in the other half of Newcastle upon Tyne; henceeach of the payments is a payment for a positive outcome and impact achieved. Ways to Wellness Limited wasabove target in achievement of both outcomes in 2017/18.
Patient Feedback and Qualitative ResearchWays to Wellness Limited undertook a patient satisfaction survey in summer 2017. Results show that 89% ofpatients are happy with the service overall and 94% would recommend the service to their family or friends.
Ways to Wellness Limited has been involved in various academic research projects. In July 2017, NewcastleUniversity's Institute of Health and Society published a peer reviewed paper in the BMJ Open (Moffatt S, SteerM, Lawson S, et al. Link Worker social prescribing to improve health and well-being for people with long termconditions: qualitative study of service user perceptions) of their research with a maximum variation sample of30 individuals who engaged with the Ways to Wellness Limited service. They found that most of the participantsexperienced multi morbidity combined with mental health problems, low self-confidence and social isolation. All
the patients were adversely affected physically, emotionally and socially by their health problems and typicallyhad challenging social and economic circumstances. The Ways to Wellness Limited intervention was found toincrease the patients feeling of control and self-confidence, reduce their social isolation and have a positiveimpact on their health-related behaviours, including weight loss, healthier eating and increased physical activity.The researchers found that the Ways to Wellness service's effectiveness with those who engage with theservice is due to its holistic, user led and long-term approach. Patients reported improved management of theirlong-term conditions, improved mental health, greater resilience and more effective problem-solving strategies.The researchers conclude that the positive health and wellbeing impacts observed have, over the longer term,potential to impact within wider family, friendship and community networks.
The Institute of Health and Society at Newcastle University, in collaboration with Ways to Wellness Limited,conducted a pilot quantitative research project funded by the School for Public Health Practice EvaluationScheme, which asked people to complete five questionnaires looking at quality of life, loneliness and socialisolation, depression, anxiety and managing long term illness. Well over half the participants reported problemswith quality of life and managing their health, but after attending Ways to Wellness Limited social prescribing,improvements were found across all measures, particularly with self-care, pain and discomfort. Those aged 6074 reported much greater levels of improvements.
Review of activities
The Ways to Wellness group has six trustees of the Foundation (reduced to five in January 2018), nine non-executive directors of the limited company (reduced to eight in July 2018) and three full-time staff.
Four local/regional sub-contracted charity and social enterprise service providers delivered the Ways toWellness service and employed approximately 20 full-time equivalent Link Workers at the end of 2017/18.
The majority of referrals to the programme are generated from GP practices. Ways to Wellness continues toemploy various approaches to support and build relationships and engagement with GP practices. Link Workerssignpost or refer clients to other services or groups to help clients in the achievement of their goals. To date,Link Workers have signposted clients to approximately 150 different services, the majority of which aredelivered by local charities or social enterprises.
Ways to Wellness Foundation(A company limited by guarantee)
Trustees' report (continued)Year ended 31 ilarch 2018
Ways to Wellness Limited continues to receive and respond to dozens of requests annually from externalorganisations. The requests largely relate to information about social prescribing and/or social impact bondfunding and originate from charities and social enterprises, commissioners and intermediaries.
Financial review
Financial performance
The profitability of Ways to Wellness Limited must be considered over its full contract terms, specifically theinvestment period of the Social Impact Bond (2015 - 2021). The service operated at a loss in its first two yearsof operation (2015/16 and 2016/17), with cumulative losses continuing beyond 2017/18. Earnings in subsequentyears redress earlier losses and allow for repayment of the SIB investment.
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequateresources to continue in operational existence for the foreseeable future. For this reason they continue to adoptthe going concern basis in preparing the financial statements.
Reserves policy
The Foundation trustees are in the initial stages of developing a reserve policy for the Foundation. Theperformance of Ways to Wellness Limited has been consistently strong. If the performance continues asprojected over the remaining years of existing contracts the Ways to Wellness Limited business will donate anysurplus funds to the Foundation. Sufficient retention of reserves is required in the limited company in order tocover repayment of the SIB and ensure sufficient cashflow for service provision. As the variables reduce andthe size and timing of any surplus becomes clearer to the Foundation trustees, a plan will be developed to usethe funds generated to continue to meet the objectives of the Foundation.
Ways to Wellness Foundation(A company limited by guarantee)
Trustees' report (continued)Year ended 31 Nlarch 2018
Plans for future periods
The Ways to Wellness group sets a budget for each financial year and refreshes its strategic plansapproximately six-monthly. The focus of the group's activity over the next twelve to eighteen months will be:
1) to support the continued successful development of the social prescribing programme in the west ofNewcastle being delivered by its trading subsidiary, Ways to Wellness Limited, as a model of bestpractice of such services delivered at scale, including:
b.C.
regular monitoring and analysis of service delivery metrics (including patient experience) to supportservice quality, inform service improvements and achieve outcome targetsinvestment in partnership working to support multi-stakeholder, innovative approachrisk monitoring and development of mitigation / improvement plans to address any areas ofshortfall, as indicatedcollaboration with academic groups to build the evidence base, particularly regarding serviceimpact
2) to seek and respond to opportunities to share lessons learned and the application of best practice in thefield of social prescribing and support for patients with long-term health conditions, including but notlimited to the use of Social Impact Bond investment to fund service provision
3) to explore and/or build opportunities for future expansion or partnership in the design and/ or delivery ofsocial prescribing in new geographies
The trustees and non-executive directors will seek to generate outcome payments to support these aims, andwill take care not to commit resources beyond the level of the group's secure income.
The Foundation's own administrative needs are largely met by pro bono support from trustees and shared staffresource across the group.
The National Institute for Health Research (NIHR) Public Health Research Programme has committed fundingof approximately f500,000 to Newcastle University and Durham University to conduct a 28-month study on thecosts and effectiveness of Ways to Wellness. Evaluations will use quantitative data (health-related quality of lifeassessments, GP practice data and hospital data) and qualitative data (patient interviews, impact on familiesand social network and Link Worker interviews). The NIHR-funded study started 1 July 2018, with expectedcompletion October 2020.
Ways to Wellness Foundation(A company limited by guarantee)
Trustees' report (continued)Year ended 31 March 2018
Structure, governance and management
Constitution
The company is registered as a company limited by guarantee and was set up under a Memorandum ofAssociation dated 12 August 2014. It is a registered charity number 1161123.
Method of appointment or election of trustees
No formal policy is in place for the appointment or election of trustees. Trustees and non-executive directors arerecruited and appointed based upon the knowledge, skills and experience judged to be necessary andappropriate to the best interests of the group and the Foundation's objects. New appointments are approved atBoard level. Due to the relatively short-term (seven-year) contracts governing the current Ways to Wellnessservice terms, the group has not implemented time imitations or rotations for trustees or non-executivedirectors.
The Senior Management Team comprises:
Tare Case —Chief Executive OfficerRishi Arora —Finance Manager
Policies adopted for the induction and training of trustees
No formal policies are in place for the induction and training of trustees, New trustees and non-executivedirectors are provided with key documents and policies, including terms of reference and expectations. Newtrustees and non-executive directors have one-to-one induction meeting with the Chair and Chief Executive(and, as indicated, the Finance Manager) to review the remit and expectations of the role as well as key areasof focus.
Organlsatlonal structure and decision making
The management of the charity is the responsibility of the trustees who are elected and co-opted under theterms of the constitution but effective day-to-day management is delegated to the Chief Executive and staffwithin the charity.
Risk management
The trustees have high level oversight of risks, with detailed risk management of operation, contractmanagement and finances devolved to the Board of non-executive directors of the trading subsidiary, whichreviews the Risk Register quarterly at both Board and Finance Committee meetings. Given the outcomes-basednature of the contract and the use of SIB investment, key risks relate to the potential failure to achieve targetpatient engagement numbers and/or target outcomes (and resulting impact on adherence to financial model).The trustees and non-executive directors are satisfied that systems and procedures are in place to mitigate thegroup's exposure to the major risks, including regular monitoring and analysis of service delivery metrics,patient experience and impact measures,
Ways to Wellness Foundation(A company limited by guarantee)
Trustees' report (continued)Year ended 31 March 2018
Disclosure of information to auditor
Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:
~ so far as that trustee is aware, there is no relevant audit information of which the charitable group'sauditor is unaware, and
~ that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of anyrelevant audit information and to establish that the charitable group's auditor is aware of that information.
Auditor
The auditor, UNW LLP, has indicated its willingness to continue in office. The trustees will propose a motion re-appointing the auditor at a meeting of the trustees.
This report was approved by the trustees, on 18 December 2018 and signed on their behalf by:
Christopher Drinkwater, Chair
Ways to Wellness Foundation(A company limited by guarantee)
Trustees' responsibilities statementYear ended 31 March 2018
The trustees (who are also directors of Ways to Wellness Foundation for the purposes of company law) areresponsible for preparing the trustees' report and the financial statements in accordance with applicable lawand United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year. Under company lawthe trustees must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the charitable company and the group and of the incoming resources andapplication of resources, including the income and expenditure, of the charitable group for that period. ln
preparing these financial statements, the trustees are required to:
~ select suitable accounting policies and then apply them consistently;
~ observe the methods and principles of the Charities SORP;~ make judgments and accounting estimates that are reasonable and prudent;
~ state whether applicable UK Accounting Standards have been followed, subject to any materialdepartures disclosed and explained in the financial statements;
~ prepare the financial statements on the going concern basis unless it is inappropriate to presume thatthe charitable group will continue in operation.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explainthe charitable company and the group's transactions and disclose with reasonable accuracy at any time thefinancial position of the charitable company and the group and enable them to ensure that the financialstatements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of thecharitable company and the group and hence for taking reasonable steps for the prevention and detection offraud and other irregularities.
OO
Independent auditor's report to the members of Ways to Wellness Foundation
Opinion
We have audited the financial statements of Ways to Wellness Foundation (the 'parent charity') and itssubsidiaries (the 'group') for the year ended 31 March 2018, which comprise the consolidated statement ofcomprehensive income, the consolidated and company balance sheets, the consolidated statement of cashflows and the related notes, including a summary of significant accounting policies. The financial reportingframework that has been applied in their preparation is applicable law and United Kingdom AccountingStandards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UKand Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
~ give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31March 2018 and of the group's incoming resources and application of resources, including its income andexpenditure for the year then ended;
~ have been properly prepared in accordance with United Kingdom Generally Accepted AccountingPractice; and
~ have been prepared in accordance with the requirements of the Companies Act 2006 and the CharitiesAct 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicablelaw. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for theaudit of the financial statements' section of our report. We are independent of the group in accordance with theethical requirements that are relevant to our audit of the financial statements in the United Kingdom, includingthe Financial Reporting Council'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 andappropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us toreport to you where:
~ the trustees' use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or
~ the trustees have not disclosed in the financial statements any identified material uncertainties that maycast significant doubt about the group's or the parent charitable company's ability to continue to adopt thegoing concern basis of accounting for a period of at least twelve months from the date when the financialstatements are authorised for issue.
Other information
The trustees are responsible for the other information. The other information comprises the information includedin the annual report, other than the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and, except to the extent otherwise explicitly stated in
our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 ourknowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material
GOO
Independent auditor's report to the members of Ways to Wellness Foundation
inconsistencies or apparent material misstatements, we are required to determine whether there is a materialmisstatement in the financial statements or a material misstatement of the other information. If, based on thework we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
~ the information given in the trustees' report for the financial year for which the financial statements areprepared is consistent with the financial statements.
~ the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in thecourse of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006requires us to report to you if, in our opinion:
~ the parent charitable company has not kept adequate and sufficient accounting records, or returns
adequate for our audit have not been received from branches not visited by us; or
~ the parent charitable company financial statements are not in agreement with the accounting records and
returns; or
~ certain disclosures of trustees' remuneration specified by law are not made; or
~ we have not received all the information and explanations we require for our audit; or
~ the trustees were not entitled to prepare the financial statements in accordance with the small companiesregime and take advantage of the small companies' exemptions in preparing the Trustees' report and
from the requirement to prepare a Group strategic report.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of thecharitable company for the purposes of company Iaw) are responsible for the preparation of the financialstatements and for being satisfied that they give a true and fair view, and for such internal control as thetrustees determine is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group's and the parentcharitable company's ability to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unless the trustees either intend to liquidate the groupor the parent charitable company or to cease operations, or have no realistic alternative but to do so.
10
Independent auditor's report to the members of Ways to Wellness Foundation
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor's report that includes ouropinion. 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 arisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FinancialReporting Council's website at: www. frc.org. uk/auditorsresponsibilities. This description forms part of ourauditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 ofPart 16 of the Companies Act 2006, and to the trustees Part 4 of the Charities (Accounts and Reports)Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company'smembers those matters we are required to state to them in an auditor's report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitablecompany and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
44 ~~Anne Hallowell BSc DChA FCA (Senior Statutory Auditor)for and on behalf of UNW LLP, Statutory AuditorChartered AccountantsNewcastle upon Tyne18 December 2018
11
Ways to Wellness Foundation(A company limited by guarantee)
Consolidated statement of financial activities incorporating income and expenditureaccountYear ended 31 Ilarch 2018
Income from:
Unrestricted Restrictedfunds funds2018 2018
Note F
Totalfunds2018
f.
Totalfunds2017
DonationsCharitable activitiesOther income
Total income
2 1,086,195
1,086,195
91,086,195 567,578
2,009
1,086,195 569,596
Expenditure on:Charitable activities
Total expenditure
812,673
812,673
812,673
812,673
797,399
797,399
Net income/(expenditure) before transfersTransfers between funds 12
273,52250,000 (50,000)
273,522 (227,803)
Net income / (expenditure) before otherrecognised gains and losses
Net movement in funds
Reconciliation of funds:Total funds brought forward
Total funds carried forward
323,522
323,522
(586,626)
(263,104)
(50,000) 273,522 (227,803)
(50,000) 273,522 (227,803)
50,000 (536„626) (308,823)
(263,104) (536,626)
The notes on pages 16 to 26 form part of these financial statements.
12
Ways to Wellness Foundation(A company limited by guarantee)
Consolidated balance sheetAt 31 March 2018
Current assetsDebtors
Cash at bank and in hand
Note
613,224
516,897
1,130,121
2018f
430,597
253,044
683,641
2017
Creditors: amounts falling due within oneyear
Net current assets
Total assets less current liabilities
Creditors: amounts faIling due after morethan one year
Net liabilities
10 (284,814)
845,307
845,307
(1,108,411)
(263,104)
(111,856)
571,785
571,785
(1,108,411)
(536,626)
Charity funds
Restricted funds
Unrestricted funds
12
12 (263,104)
50,000
(586,626)
Total funds (263,104) (536,626)
The company's financial statements have been prepared in accordance with the provisions appIicabIe tocompanies subject to the small companies regime.
The financial statements were approved and authorised for issue by the trustees on 18 December 2018 andsigned on their behalf, by:
Christopher Drinkwater, Chair
The notes on pages 16 to 26 form part of these financial statements.
13
Ways to Wellness Foundation(A company limited by guarantee)
Company balance sheetAt 31 March 2018
Fixed assetsInvestments
Current assetsDebtors
Cash at bank
Creditors: amounts falling due within oneyear
Net current assets
Net assets
Note
10
3,684
3,684
(250)
2018E
3,434
3,435
1,387
52,789
54, 176
(250)
2017
53,926
53,927
Charity funds
Restricted funds
Unrestricted funds 3,43550,000
3,927
Total funds 3,435 53,927
The company's financial statements have been prepared in accordance with the provisions applicable tocompanies subject to the small companies regime.
The financial statements were approved and authorised for issue by the trustees on 18 December 2018 andsigned on their behalf, by:
Christopher Drinkwater, Chair
Company registered number: 09183805
The notes on pages 16 to 26 form part of these financial statements.
14
Ways to Wellness Foundation(A company limited by guarantee)
Consolidated statement of cash flowsYear ended 31 March 2018
Cash flows from operating activities
Net cash provided by/(used in) operating activities
Note
14
2018E
263,853
2017
(288,861)
Cash flows from financing activities:Cash inflows from new borrowing
Net cash provided by financing activities
208,411
208,411
Change in cash and cash equivalents in the yearCash and cash equivalents brought forward
Cash and cash equivalents carried forward 15
263,853253,044
516,897
(80,450)
333,494
253,044
The notes on pages 16 to 26 form part of these financial statements.
15
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
Accounting policies
Basis of preparation of financial statements
The financial statements have been prepared in accordance with Accounting and Reporting byCharities: 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 (FRS102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standardapplicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Ways to Wellness Foundation meets the definition of a public benefit entity under FRS 102. Assetsand liabilities are initially recognised at historical cost or transaction value unless otherwise stated in
the relevant accounting policy.
The financial statements are presented in pounds sterling which is the functional currency of thecompany and are rounded to the nearest F1.
Company status
The company is a company limited by guarantee. The members of the company are the trusteesnamed on page 1. In the event of the company being wound up, the liability in respect of theguarantee is limited to f10 per member of the company.
1.3 Going concern
The group is operating a Social Impact Bond model, seeking to ascertain that long term savings canbe made through non clinical social prescribing. The model is a 7 year model based on the contractfor services with the Clinical Commissioning Group which anticipated that the payments by results will
flow through in the latter part of the contract. As a result, the company has entered into a SocialImpact Bond for loan financing to allow it to fulfil its obligations under the contract and repay the loanas outcomes are achieved in later years. As such the trustees consider that the group has sufficientfinance in place at the present time to allow it to continue as a going concern for at least the coming12 months.
1.4 Basis of consolidation
The statement of financial activities (SOFA) and balance sheet consolidate the financial statementsof the company and its subsidiary undertaking. The results of the subsidiary are consolidated on aline by line basis.
The company has taken advantage of the exemption contained within section 408 of the CompaniesAct 2006 not to present its own income and expenditure account.
The income and expenditure account for the year dealt with in the accounts of the company was(650,492) (2017:f766).
16
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
1. Accounting policies (continued)
1.5 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in
furtherance of the general objectives of the company and which have not been designated for otherpurposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed bydonors or which have been raised by the company for particular purposes. The costs of raising andadministering such funds are charged against the specific fund. The aim and use of each restrictedfund is set out in the notes to the financial statements.
1.6 Income
All income is recognised once the company has entitlement to the income, it is probable that theincome will be received and the amount of income receivable can be measured reliably.
Grant income is recognised in full on receipt, or when receipt is certain, with the exception ofprogramme related grant income which is recognised in the period in which the related activity takesplace, with appropriate amounts accrued or deferred.
Donated services or facilities, which comprise donated services, are included in income at avaluation which is an estimate of the financial cost borne by the donor where such a cost isquantifiable and measurable. No income is recognised where there is no financial cost borne by athird party.
Income comprises revenue recognised by the company in respect of services supplied during theyear, exclusive of Value Added Tax. Income is accrued and invoiced in accordance with the termsof the contract led by outcome measures. Income is only recognised once the company has met thecriteria to entitle it to payment under the terms of the contract.
Income tax recoverable in relation to investment income is recognised at the time the investmentincome is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods havebeen provided or on completion of the service.
Expenditure
Expenditure is accounted for on an accruals basis and has been included under expense categoriesthat aggregate all costs for allocation to activities. Where costs cannot be directly attributed toparticular activities they have been allocated on a basis consistent with the use of the resources.
Support costs are those costs incurred directly in support of expenditure on the objects of thecharity, including those incurred in connection with the administration of the charity and compliancewith constitutional and statutory requirements. They are apportioned against the activities of thecharity in line with the estimated usage of those costs.
17
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 INarch 2018
Accounting policies (continued)
1.8 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at theirtransaction cost and subsequently measured at fair value at the balance sheet date, unless fairvalue cannot be measured reliably in which case it is measured at cost less impairment. Investmentgains and losses, whether realised or unrealised, are combined and shown in the heading'Gains/(losses) on investments' in the consolidated statement of financial activities incorporatingincome and expenditure account.
Investments in subsidiaries are valued at cost less provision for impairment.
1.9 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measuredreliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
1.10 Debtors
Short-term debtors (including trade and other debtors) are measured at the transaction price, lessany impairment.
1.11 Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a shortmaturity of three months or less from the date of acquisition or opening of the deposit or similaraccount.
1.12 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a pastevent, it is probable that a transfer of economic benefit will be required in settlement, and theamount of the settlement can be estimated reliably. Liabilities are recognised at the amount that thecompany anticipates it will pay to settle the debt or the amount it has received as advancedpayments for the goods or services it must provide.
1.13 Financial instruments
The group only enters into basic financial instrument transactions that result in the recognition offinancial assets and liabilities like trade, intercompany and other accounts receivable and payable,cash and bank balances and loans from related parties.
All such instruments are initially recognised at transaction price, unless the arrangement constitutesa financing transaction, in which case the transaction is measured at the present value of the futurereceipts discounted at a market rate of interest. All financial instruments are subsequently carriedat amortised cost using the effective interest method.
18
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
Accounting policies (continued)
1.14 Deferred taxation
The taxation expense for the year comprises current and deferred tax and is recognised in thestatement of financial activities except to the extent that it relates to items recognised in othercomprehensive income, or directly in equity, in which case the tax expense is also recognised in
other comprehensive income or directly in equity.
Current tax is the amount of income tax payable in respect of the taxable profit for the current orpast reporting periods. It is calculated on the basis of tax rates and laws that have been enacted orsubstantively enacted by the balance sheet date.
Deferred tax represents the future tax consequences of transactions and events recognised in thefinancial statements of current and previous periods. It is recognised in respect of all timingdifferences, with certain exceptions, Timing differences arise from the inclusion of transactions andevents in the financial statements in periods different from those in which they are assessed for tax.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it isprobable that they will be recovered against the reversal of deferred tax liabilities or other futuretaxable profits,
Deferred tax is measured using the tax rates and laws that have been enacted or substantivelyenacted by the balance sheet date that are expected to apply to the reversal of timing differences.
1.15 Pensions
The company operates a defined contribution pension scheme and the pension charge representsthe amounts payable by the company to the fund in respect of the year.
1.16 Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable under thecircumstances.
The group's accounting policy for the recognition of income is detailed in note 1.6. Managementconsider that the main judgement and source of estimation uncertainty arises from the assessmentof contract outcomes. Amounts receivable in connection with its contract are recognised in thestatement of financial activities to the extent that the amounts can be quantified and the trusteeshave reasonable assurance that the outcomes have been completed.
19
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
2. Income from charitable activities
Contract receiptsOther
Unrestrictedfunds2018
E
1,086,195
Restrictedfunds2018
f.
Totalfunds2018
K
1,086,195
Totalfunds2017
555,59511,983
1,086,195 1,086,195 567,578
Total 2017 567,578 567,578
3. Analysis of expenditure by activities
Provision of services
Direct costs2018
616,411
Supportcosts201 &
196,262
Total2018
E
812,673
Total2017
F
797,399
Total 2017 580,615 216,784 797,399
4. Direct costs
Provision of servicesFinance costs
Total2018
f.522,88593,526
Total2017
F
544,99335,622
616,411 580,615
Total 2017 580,615
20
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
5. Support costs
Consultancy feesIT costsLegal & professional feesOther support costsWages and salariesNational insurancePension cost
Total2018
E
15,93714,90138,98599,13511,82815,476
Total2017
F
16,67832,489
3,55036,498
100,84211,36915,358
196,262 216,784
Total 2017 216,784
6. Net income/(expenditure)
This is stated after charging:
Auditor's remuneration - auditAuditor's remuneration - other services
2018
9,000
2017F
2,800
21
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
7. Staff costs
Staff costs were as follows:
Wages and salariesSocial security costsOther pension costs
2018F
99,13511,82815,476
2017F
100,84211,36915,358
126,439 127,569
The average number of persons employed by the company during the year was as follows:
2018No.
3
2017No.
3
No employee received remuneration amounting to more than F60,000 in either year.
The key management personnel of the charity comprise the chief executive officer and finance manager.The employee benefits total f105,077 (2017:298,745),
During the year, no trustees received any remuneration or reimbursement of expenses (2017:anil).
8. Principal subsidiaries
The charity holds 1 share of f.1 in its wholly owned trading subsidiary which is incorporated in England.
Ways to Wellness Limited
Subsidiary name
Company registration number
Basis of control
Ways to Wellness Limited
08798423
100% owned
Total assets as at 31 March 2018Total liabilities as at 31 March 2018Total equity as at 31 March 2018
E. 1,126,437
j (1,392,976)F (266,539)
Turnover for the year ended 31 March 2018Expenditure for the year ended 31 March 2018Profit for the year ended 31 March 2018
F 1,136,195f (812,181)F 324,014
22
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
9. Debtors
Amounts owed by group undertakingsPrepayments and accrued income
2018
613,224
Grou
2017
430,597
2018f
Com an
2017
1,387
613,224 430,597 1,387
10. Creditors: Amounts falling due within one year
Grou Com an
Trade creditorsOther taxation and social securityAccruals and deferred income
2018K
21,77256,727
206,315
2017
23,92110,21277,723
2018
250
2017F
250
284,814 111,856 250 250
Grou Com an
Deferred income
Deferred income at 1 April 2017Amounts released from previous years
Deferred income at 31 March 2018
32,027(6,518)
25,509
11. Creditors: Amounts falling due after more than one year
Grou Com an
Other loans
2018 2017
1,108,411 1,108,411
2018E
2017E
The group is in receipt of loans totalling E923,677 (2017: f923,677) from Bridges Social Impact BondFund and F184,734 (2017:f184,734) from Bridges Social Entrepreneurs Fund. The loans are unsecuredand are repayable in three instalments on 1 April 2019, 1 April 2020 and the balance on 31 March 2021.Royalties at 6% of income receivable on the contract with the Clinical Commissioning Group are payableunder the terms of the loan agreement.
23
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
12. Statement of funds
Statement of funds - current year
Balance at1 April 2017 Income Expenditure
f F
Balance atTransfers 31 March
in/out 2018E
Unrestricted funds
Unrestricted funds (586,626) 1,086,195 (812,673) 50,000 (263,104)
Restricted funds
Restricted funds
Total of funds
50,000
(536,626) 1,086,195 (812,673)
(50,000)
(263,104)
Statement of funds - prior year
Balance at1 April 2016 Income Expenditure
F
Balance atTransfers 31 March
in/out 2017F
General funds
Unrestricted funds
Restricted funds
Restricted funds
(358,823) 569,596 (797,399)
50,000
(586,626)
50,000
Transfers relate to a grant made by Ways to Wellness Foundation to Ways to Wellness Limited fortraining and workforce development carried out by Ways to Wellness Limited, thus fulfilling the terms ofthe original grant made to Ways to Wellness Foundation.
24
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
13. Analysis of net assets between funds
Analysis of net assets between funds - current year
Current assetsCreditors due within one yearCreditors due in more than one year
Unrestrictedfunds
2018E
1,130,121(284,814)
(1,108,411)
Restrictedfunds
2018
Totalfunds2018
1,130,121(284,814)
(1,108,41 1)
Analysis of net assets between funds - prior year
Current assetsCreditors due within one yearCreditors due in more than one year
(263,104)
Unrestrictedfunds2017
f.
633,642(111,857)
(1,108,411)
Restrictedfunds2017
E
50,000
(263,104)
Totalfunds2017
683,642(111,857)
(1,108,411)
(586,626) 50,000 (536,626)
25
Ways to Wellness Foundation(A company limited by guarantee)
Notes to the financial statementsYear ended 31 March 2018
14. Reconciliation of net movement in funds to net cash flow from operating activities
2018E
Grou
2017
Net income/(expenditure) for the year (as per Statement of FinancialActivities) 273,522 (227,803)
Adjustment for:Increase in debtorsIncrease in creditors
Net cash provided by/(used in) operating activities
(182,627)172,958
263,853
(70,796)9,738
(288,861)
15. Analysis of cash and cash equivalents
Cash in hand
Total
2018
516,897
516,897
Grou
2017E
253,044
253,044
16. Pension commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held
separately from those of the group in an independently administered fund. The pension cost chargedrepresents contributions payable by the group to the fund and amounted to 815,476 (2017:F15,358).
As at 31 March 2018 there were no contributions payable to the scheme (2017:anil).
17. Related party transactions
The ultimate control of the charity rests with the board of trustees.
The charity has taken the exemption contained within FRS 102 for disclosing any transactions with
entities wholly owned by Ways to Wellness Foundation.
26
top related