ways to wellness foundation - charity commission

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


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


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.


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.


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.


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.



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,



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


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


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.

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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

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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


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:



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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:


Company registered number: 09183805


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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


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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).

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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.

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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.

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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.

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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

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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

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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

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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.

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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.

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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)

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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.

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ways to wellness foundation - charity commission

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