Company no. 2702133 Charity no. 1076854
Health Equality and Rights Organisation (formerly GMFA) Report and Financial Statements 31 March 2012
Health Equality and Rights Organisation (formerly GMFA) Reference and administrative details For the year ended 31 March 2012 Company number
Registered office and operational address
Unit 11 Angel Wharf 58 Eagle Wharf Road London N1 7ER
Directors, who are also trustees under charity law, who served during the year and up to the date of this report were as follows: Samantha Nicklin Jeff Richards David Clover Noel Watson-Doig John Hanson Michael Bonello Kristofer Peterson Matthew Rhoades Diana Hamilton
(Chair until 15 March 2012) (Vice Chair, resigned 3 January 2012) (Chair from 28 March 2012) (Company Secretary, resigned 1 June 2011) (Treasurer) (Company Secretary from 26 October 2011) (resigned 22 February 2012) (appointed 25 January 2012)
Chief Executive Officer
Other principal staff
National Westminster Bank plc 332 High Holborn London WC1V 7PS
Sayer Vincent Chartered accountants and statutory auditors 8 Angel Gate City Road London EC1V 2SJ
Head Of Programmes
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 The directors present their report and the audited financial statements for the year ended 31 March 2012. Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities (issued in March 2005). The Health Equality and Rights Organisation (HERO) is the new name of GMFA. It was adopted by member vote in June 2011 together with an expanded remit that adds the health needs of lesbian, bisexual and transgender people to our long-standing work for gay men’s health. The name GMFA, i.e. the acronym, was adopted in 2002 to allow the expansion of our work from HIV to include other gay men’s health issues. Our original name, Gay Men Fighting AIDS, mostly abbreviated to GMFA, will be retained as a brand name for specific gay men’s sexual health work. Our mission The mission of the Health Equality and Rights Organisation (HERO) is to improve the health, enhance the wellbeing and champion the rights of lesbian, gay, bisexual and transgender people. Our mission is a guiding principle governing all our work. We believe HERO’s role is to provide the lesbian, gay, bisexual and transgender communities with accurate and credible information, and with the skills that enable them to make informed choices and exercise control over their own actions. Our Values In addition to our mission, we also have a set of values to which all our projects must conform. They are:
All people, regardless of age, race, nationality, religion, disability, gender, sexuality or HIV status, should have equal opportunities in life. HERO will extend this value to our employment practices, volunteers and our work.
All people regardless of their sexuality and gender identity are entitled to equal rights and respect. We use the World Health Organization’s definition of health in our work, i.e. "a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity." The health needs of lesbian, gay, bisexual and transgender people should be considered in all aspects of their health and not just their sex life or their sexuality. Our work will only address identified needs. Our projects are driven by evidence and effectiveness. Health promotion for the LGB & T communities is fundamentally enhanced when community members collectively have a crucial role in the development and delivery of interventions. We use the skills, experience, talents and knowledge of volunteers in our work.
A project must not promote the health of one person over another.
Health promotion should empower people rather than reduce their choices.
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Achievements and performance - activities in 2011 - 12 HERO, operating as GMFA, has built a reputation for delivering high quality health interventions. We reach a large proportion of gay men because our interventions speak to them and engage them. As HERO we plan to bring this success to work for the lesbian, bisexual and transgender communities. Booklets and other small media Under our pan-London contract we produced the Count Me In booklet. The print run for the booklet was 20,000. Count Me In – The booklet was an extension of the previous year’s Count Me In campaign. The booklet simplified a range of HIV health promotion information into a five point plan that enables gay and bisexual men to stay HIV-negative or reduce the likelihood of onward transmission if they already have HIV. The five point plan is: 1) “I will know my HIV status” Around 25% of gay men with HIV do not know they have HIV. The resource highlights the benefits of knowing your HIV status in relation to accessing medical treatment and improving life expectancy. Furthermore, around 90% of gay men who state they do not know their status are actually HIVnegative. The resource highlights the peace of mind that knowing you do not have HIV can bring. 2) “I will not assume I know someone else’s HIV status” Some men believe they can tell the HIV status of their partners. Furthermore many men who are HIVnegative believe that all people with HIV will disclose their HIV status to them. These two assumptions result in men having unprotected sex with their partners. 3) “I will take personal responsibility for using condoms” Men with HIV will often assume that it is the responsibility of negative men to use a condom. Negative men will often assume the responsibility for using a condom is down to people with HIV. The booklet stresses that condom use is the responsibility of both partners. It also explains how to use condoms correctly to reduce condom failure. 4) “I will value myself and my health” Mental health plays an important role in people’s decisions about sex. The booklet highlights how mental health and some behaviours such as drug and alcohol use can impact on self-esteem and how this in turn impacts on decisions about sex. 5) “I will stay informed about HIV and how it is treated” HIV prevention information is constantly changing and the booklet updates men with new information about PEP (Post Exposure Prophylaxsis) and the infectiousness of men with a low viral load. CODE - In collaboration with Antidote and 56 Dean Street, HERO produced a resource to encourage men who use recreational drugs to access sexual health and addiction services at a clinic in the West End. 10,000 copies were produced. Out For Sport – In 2011 - 2012 HERO began to produce a directory of all London LGB & T sports groups and social groups. The booklet will be printed in the next financial year.
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Groupwork HERO has a long experience of providing high-quality training courses to gay men which address various aspects of their health needs. These are delivered by volunteers who have completed our “Training the Trainers” course. This ensures they have the proven skills and awareness to facilitate a workshop. The workshops cover subjects which appeal to gay men and are developed by the same processes of peer review and quality control as all our interventions. In 2011 - 12 we worked in collaboration with our CHAPS partners to deliver twenty HIV-related workshops across England. Each course had up to forty-seven participants booked. This year HERO worked in fourteen different cities in England. Under our CHAPS contract, HERO developed a new course “Power Talking”. This was a two day course based on assertiveness training. The aim of the course was to increase gay and bisexual men’s ability to communicate with their partners assertively including sexual negotiation. It helped men analyse their current behaviour around negotiation and provide solutions so that men are not coerced into having sex they do not want. As the workshop was new and to develop collaborative delivery of the workshops, HERO trained 10 facilitators from agencies across England to help deliver the project. "Training the Trainers" is a weeklong course. HERO also ran two smoking cessation courses. Gay men and lesbians have a higher prevalence of smoking than the general population. Each course is seven weeks long. The course is based on the NHS course but is adapted to meet the context of the LGB & T community. FS FS is our bi-monthly magazine. It has achieved the largest distribution of any magazine aimed at gay men in the UK. FS provides health and HIV information, advice, support and research in a clear and understandable format, promoting information on gay men’s health and HIV issues. Designed to appeal to young gay men, FS is colourful, uses young gay men as models and is written in a style likely to attract this target group. For every issue we produce six regional versions, adapted to promote local services. The print run is 25,000 for the London version and 25,000 for the other regional versions combined. This gives a total of 50,000 copies printed and distributed across the UK for each issue. It is distributed in GUM clinics, bars and clubs. In 2010 - 11 we extended the reach of FS even further by developing a smartphone app. In 2011 2012 we increased the number of people downloading the app from 2,800 to nearly 5,000. In 2010 two independent evaluations of the magazine were conducted. The first evaluation consisted of focus groups with the target audience. The results were used to improve the style and format of the magazine. The second evaluation compared FS with other magazines from different HIV prevention organisations. The evaluation concluded that men preferred the magazine to other HIV-related publications and that the balance of HIV information and health was managed well. The evaluation also showed that both men with and without HIV found the publication informative.
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 New media In 2006 - 07 HERO rethought and redesigned our presence on the internet as a response to research indicating that gay men’s preferred method for receiving HIV health promotion was via the internet. In 2009 - 10 we expanded our portfolio of websites to include a site to help men quit smoking. All our sites have been designed to increase access for people with visual impairment, be appropriate for people with lower levels of formal education and appropriate for men who do not speak English as their first language. The redesign and review of content of HERO’s websites has proved successful in increasing the number of visitors to our sites. In total HERO received just over 610,000 unique visitors to our websites. This is an increase of 10,000 from the previous year. Sex and sexual health – This site is based on the collaborative planning framework "Making it Count". It provides information and advice on all issues that contribute to the transmission of HIV. The site also contains information on other sexually transmitted infections and advice on sex. In 2010 - 11 the content of the site was completely reviewed and refined to incorporate new information, make navigation easier and to increase its readability. This year the site received over 559,433 unique visitors. This is an increase of 236,909 from the previous year. London services – This site contains details of all interventions, services and resources provided by the Pan-London HIV Prevention Programme along with details of sexual health clinics in London and all other services provided by the voluntary and statutory sector. This site is updated every month and in 2011 - 12 it received just over 219,616 unique visitors. This is an increase of 14,000 from the previous year. Positive gay guide - This site complements the existing portfolio of sites and aims to empower HIVpositive gay men to make informed choices about their health. Topics covered on the site include how HIV works, HIV treatment, sex, disclosure of one's HIV status, and advice on unhealthy behaviours such as smoking, drinking alcohol and taking recreational drugs. The site also has a section specifically designed for newly diagnosed men. The site was written in culturally appropriate language and designed to be appropriate for men with lower levels of formal education. This year the site attracted over 20,000 unique visitors. The Guide - This site lists gay sports and social groups in England. In 2006, 78.8% of gay men in the National Gay Men's Sex Survey said they would like non-sexual places to meet other gay men. The aim of this intervention is to promote alternative ways of socialising which do not involve meeting in bars and clubs and to increase the uptake of sport among gay men. This site attracted over 16,432 unique visitors. This is down from the previous year and is probably due to a lack of promotion through booklets. GMFA – This site provided information about GMFA. It gave details of GMFA's mission and vision, our history, our interventions, policies and details of GMFA news and events. In 2012 - 13 it will be replaced by a HERO site which will provide information on the re-focussed organisation.
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Smoking Cessation – Gay men smoke more than the general population of men. We tend to start smoking at an earlier age and we continue to smoke for longer. In fact around 40% of gay men smoke tobacco in some form or another compared to 23% in the general population of men. For gay men living with HIV the proportion of smokers increases to around 48% and these men tend to smoke more cigarettes a day than gay men without HIV. This website is designed to help gay men quit smoking. Partner Notification – This is the third year of a three year project to establish an online partner notification system. This will enable gay men who have been diagnosed with a sexually transmitted infection (including HIV) to notify their sexual partners of their infection. The project is a collaboration between the most popular gay dating sites, GUM clinics and the Department of Health. The project is funded through a grant by the Elton John AIDS Foundation. The intervention is currently running in 17 clinics around England. Other activities in 2011 - 12 In 2011 - 12 we took part in a variety of community events and held several fundraisers. On World AIDS Day we raised funds in thirty-three venues. In August we held another successful Sports Day at the Spring Gardens Vauxhall. We also took part in London Pride where we distributed condoms and safer sex information. We had a team in the Walk for Life and took part in the Clapham Street Party. Plans for the future Over the next year HERO will expand its remit to include interventions for lesbian, bisexual and transgender people. We will seek to gain representation from these new target groups at all levels by recruiting appropriate Directors, where possible new staff members and, above all, volunteers. Initial work is required to identify the health needs of these groups which HERO is best placed to address and to develop the first interventions. Relevant websites will be set up as a first step. Inspiring volunteers to join HERO and obtaining funding for interventions will in part depend on beginning to establish a reputation for this new area of activity. We will be making use of the opportunities provided by our new premises at Angel Wharf. This will allow us to deliver a new range of workshops for which cost was prohibitive before. We will be working to extend our existing gay men’s general health work and HIV work. Over the next year HERO will also:
Produce one new social media and internet campaign. Produce six issues of FS. Write and deliver a new booklet for men in London. Continue to expand and update our online presence and increase our use of social media in order that we can reach more people. Secure funding for non-HIV health promotion. Expand our funding base and increase community fundraising. Develop a programme of London-based workshops. Develop a programme of self-defence courses Use our building to generate income Design an online shop in order that we can sell our resources Develop our brand as the Health Equality and Rights Organisation. 6
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Volunteer leadership HERO is a volunteer led organisation. We use “Volunteer Leadership” to describe the method by which our volunteers contribute to HERO and participate in developing its interventions. Members of the Board of Directors are volunteers elected by the volunteers. Volunteers also control the organisation as members of the groups who develop projects. All HERO volunteers have the right to join any group within HERO. Developing interventions HERO develops a wide range of health promotions, including web and print advertising campaigns, booklets, websites, community building events, a magazine and groupwork. The development of all interventions follows a consistent and robust process:
Before any project is developed, the volunteers and Project Managers set out the scope of the project in terms of its aims, objectives, target group, and setting, and estimate the necessary resources. The Chief Executive will assess and approve this intervention description to ensure that the project meets HERO’s values, and that the project is well designed. The intervention description is circulated for feedback to colleagues within the HIV sector or other relevant sector. Volunteers and Project Managers work together to develop the intervention. The project is piloted with the target group, such as gay men, and further feedback is sought from colleagues within the relevant sector. The final draft of the intervention, together with the piloting results and HIV-sector feedback, is reviewed by the Chief Executive to ensure that the project meets the intended aims and objectives. The intervention must receive the Chief Executive’s approval before it is launched.
Volunteers HERO currently has around 200 volunteers. Volunteers are mainly recruited through promotion on all HERO interventions, and are provided with an induction process. We welcome volunteers from all sections of the community, although the majority of our volunteers are gay men who bring to HERO an immediate understanding of gay men’s health and are representative of the target audience for our work. Furthermore, our volunteer base is made up of HIV-negative and HIV-positive people who bring different perspectives to the development of our HIV campaigns. This principle of interventions being developed primarily by volunteers from the target group will be used to drive forward our planned work for lesbian, bisexual and transgender people. In 2012 - 13 we will continue to seek to recruit volunteers from these target groups. The ethnic breakdown of volunteers is: White British White non-British Black British / Caribbean Black British / African Black Other Mixed race Asian Other
52% 26% 3% 2% 1% 7% 5% 4%
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Volunteer roles HERO believes that health promotion for lesbian, gay, bisexual and transgender people is fundamentally enhanced when community members take a central role in the development and delivery of projects. Volunteers contribute to the design and delivery of our interventions by joining groups within HERO. Our current groups are organised to produce booklets, a magazine, websites, groupwork and community interventions. In addition to groups focussed on methods of intervention, HERO has two groups which work with specific target groups, namely men with HIV and Black gay men. All volunteers have role descriptions and HERO provides training, where possible, to enable them to fulfil their roles. Currently volunteer roles include:
Workshop facilitators Graphic designers Copy-writers Campaign developers Photographers Editorial volunteers
Campaign evaluators Web designers Outreach volunteers Fundraisers Office volunteers Health Trainers
HERO estimates the monetary value of contributions from volunteering at around £200,000. However the most valuable contribution volunteers bring is the depth of knowledge and life experience that such a diverse range of individuals brings to peer-education. Employees At 31 March 2012, HERO had six full-time members of staff and one part-time member of staff. The staff team consisted of the Chief Executive, the Head of Programmes, three Project Managers, the Community Fundraising officer and the Finance/Office Manager. Employees are responsible for the day to day management of HERO and its projects. Directors Directors, who are also trustees under Charity law, are generally HERO volunteers and are elected to the Board by members of HERO. Our constitution states that there are normally nine places on the Board. In June 2011 this was extended to twelve as part of our transition to HERO, with three places reserved for co-opted Directors. The term of office for an elected Director is four years maximum, and each year at least two members of the Board must stand down. Board members may choose to re-stand for election. New Directors are provided with an induction process led by the Chair, and all Directors may access training based on the skills needed to fulfil their role as a Director as set out in their role description. We have a policy on training, induction and support of Board members. The Directors who served during the year and up to the date of this report are as disclosed in the reference and administrative details on page 1.
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Partnerships HERO’s work is developed in partnership with other voluntary, statutory and research organisations. Just under 40% of our work is funded through the Pan London HIV Prevention Programme (PLHPP) in which our partners are PACE, Terrence Higgins Trust, Camden and Islington’s Gay Men’s team, London Lesbian and Gay Switchboard, the GMI Partnership and London commissioners. Through the Community HIV and AIDS Prevention Strategy (CHAPS) we are also partnered with other sexual health organisations across twelve cities in England and Wales. The CHAPS partnership aims at providing HIV prevention initiatives that reach gay men in the cities across England and Wales with the highest prevalence of HIV. HERO has strong links with GUM clinics throughout London. This enables us to distribute resources, receive expert advice on sexual health issues and to ensure that the information we disseminate is accurate. A very valuable partnership is with the gay commercial scene. HERO would not be as successful as it is without the support and collaboration of more than a hundred pubs and clubs who raise funds and provide distribution points for our activities, as well as the gay magazines and internet sites that carry our adverts. About the Health Equality and Rights Organisation (HERO) History Originally named Gay Men Fighting AIDS, and later just GMFA, HERO’s initial remit was to campaign for more targeted HIV prevention work aimed at gay men, and to raise awareness of HIV amongst gay men. It was founded in 1992, by a group of gay men who felt that there was not enough HIV prevention work being specifically targeted at gay men. From the beginning, HERO used a model of community mobilisation and peer education. That is, rather than just producing health promotion aimed at gay men, HERO wanted gay men to play a central role in the design and delivery of interventions. Many things about HERO have changed, but recruiting and retaining members of our target groups and keeping them at the heart of our organisation and our work has not. Each year between 150 and 200 people actively volunteer for us, and our methods of developing projects and our policies are built around being a truly volunteer-led organisation. In 2001 GMFA merged with the Black gay men’s group Big Up and in 2002, GMFA broadened its remit to include all health issues which disproportionately affect gay men over other populations. We changed our mission statement and “Gay Men Fighting AIDS” became “GMFA – the gay men’s health charity”. At the 2011 EGM our members voted to expand the remit of the charity to cover health issues for lesbian, bisexual and transgender communities. In June 2011 GMFA changed its name to the Health Equality and Rights Organisation (HERO) and amended our objects to extend the remit of the charity to cover health issues for lesbian, bisexual and transgender communities. Our challenge will be to develop the infrastructure, volunteers and expertise to deliver high quality health interventions for these new target groups, while maintaining our respected portfolio of HIV health promotion for gay men.
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Structure, governance and management HERO is a charitable company limited by guarantee, incorporated on 31 March 1992 and registered as a charity on 2 August 1999. Governing document The company was established under a Memorandum of Association which established the objects and powers of the charitable company, and is governed under its Articles of Association. The Memorandum of Association and the Articles of Association were updated in December 2002 to reflect a change in the objects of the charity, a new name and to allow members of the Board to be co-opted. The latest change was made in June 2011 when Members voted to adopt the new name, Health Equality and Rights Organisation (HERO), and to expand our remit to allow us to address the health needs of a wider population, specifically lesbian, gay, bisexual and transgender people. Objectives and activities The objects of the charity as set out in the memorandum and articles of association are: As amended on 1st June 2011 a)
To protect and preserve public health in particular amongst the gay male, lesbian, bisexual and transgender population of the United Kingdom.
To advance public education in the subjects affecting the health of the gay male, lesbian, bisexual and transgender population including the causes, symptoms, treatment and prevention of illness, in particular through the promotion of research and the dissemination of the useful results of research.
Public benefit We have referred to the guidance contained in the Charity Commissionâ&#x20AC;&#x2122;s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the directors consider how planned activities will contribute to the aims and objectives they have set. HERO is achieving public benefit through our work in improving the effectiveness of our interventions which include a website, workshops, press work and printing of resources. Whilst these services are aimed at gay men they can also be accessed by any member of the public. Risk statement GMFA reviewed its risk assessment formally in March 2009 as well as continuing to keep the key risks under review. These are threats to our income from reduction or loss of key contracts or grants and an inability to achieve our expanded charitable objectives due to lack of funding. We are engaged in a strategy of seeking to diversify our funding streams and positioning ourselves to be able to obtain new funding for our new areas of activity.
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Financial review Reserves policy HERO has a reserves policy which was revised and updated in June 2010. The purpose of the reserves policy is to:
Enable the Directors to plan spending in an informed manner Ensure that HERO’s reserves are used appropriately to help meet the charity’s objects Ensure that HERO has sufficient reserves to be a stable charity
At 31 March 2012, HERO had unrestricted reserves of £832,145 of which £594,150 represents fixed assets, including the leasehold property value of our new premises in Angel Wharf, Islington. The rest represents approximately three months’ operating costs. Statement of responsibilities of the Directors The Directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently; observe the methods and principles in 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 material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Directors are aware: there is no relevant audit information of which the charitable company’s auditors are unaware; and the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.
Health Equality and Rights Organisation (formerly GMFA) Report of the Directors For the year ended 31 March 2012 Auditors Sayer Vincent were re-appointed as the charitable company's auditors during the year and have expressed their willingness to continue in that capacity. Approved by the directors on 24 October 2012 and signed on their behalf by
David Clover - Chair
Independent auditors' report To the members of Health Equality and Rights Organisation (formerly GMFA) We have audited the financial statements of Health Equality and Rights Organisation for the year ended 31 March 2012 which comprise the statement of financial activities, balance sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the Directors and auditors As explained more fully in the statement of responsibilities of the Directors set out in the report of the Directors, the Directors (who are also the trustees of the charitable company for the purposes of charity law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the report of the Directors to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the charitable company’s affairs as at 31 March 2012 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements.
Independent auditors' report To the members of Health Equality and Rights Organisation (formerly GMFA) Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Directors’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.
Pamela Craig 30 October 2012 for and on behalf of Sayer Vincent, Statutory Auditors Sayer Vincent, 8 Angel Gate, City Road, LONDON EC1V 2SJ
Health Equality and Rights Organisation (formerly GMFA) Statement of financial activities (incorporating an income and expenditure account) For the year ended 31 March 2012 Unrestricted Note £
2012 Total £
2011 Total £
49,235 556 4,375
49,235 556 4,375
32,719 772 -
27,000 157,019 70,445 833 10,000 8,547 -
98,446 94,366 30,917 58,609 18,300 -
27,000 157,019 168,891 95,199 30,917 10,000 8,547 58,609 18,300 -
157,139 193,132 110,816 38,646 7,500 9,921 2,000 99,000 57,241 49,970
Resources expended Costs of generating funds: Fundraising and publicity
Charitable activities Transition Fund Press work Group work FS Magazine Booklets and small media Internet Digital media Policy Strategy and development Partner notification Black Gay Men Governance costs
24,254 101,097 61,968 5,651 11,719 26,395 4,429
103,947 112,601 42,883 34,969 2,515 56,561 10,028 4,060
103,947 24,254 101,097 174,569 42,883 34,969 5,651 11,719 2,515 56,561 36,423 8,489
41,779 113,843 178,124 99,426 42,734 6,847 11,945 1,700 54,570 89,277 6,778
Incoming resources Incoming resources from generated funds Voluntary income Investment income Rent income
Incoming resources from charitable activities Press work Group work FS magazine Booklets and small media Internet Digital media Policy Strategy and development Transition Fund Partner notification Community Work Black Gay Men Other incoming resources Total incoming resources
Total resources expended
Net incoming/(outgoing) resources for the year
Net movements in funds
Funds at the start of the year
Funds at the end of the year
Transfer between funds
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 12 to the financial statements.
Health Equality and Rights Organisation (formerly GMFA) (Limited by guarantee) Company no. 2702133 Balance sheet As at 31 March 2012
Tangible fixed assets
Current assets Debtors Cash at bank and in hand
9 173,536 170,431
Creditors: Amounts falling due within one year
Net current assets Net assets
Funds Restricted funds Unrestricted funds Designated funds General funds
Approved by the directors on 24 October 2012 and signed on their behalf by
David Clover - Chair
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012 1. Accounting policies a) The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards and the Companies Act 2006. They follow the recommendations in the Statement of Recommended Practice, Accounting and Reporting by Charities (issued in March 2005). b) Voluntary income is received by way of donations and gifts and is included in full in the statement of financial activities when receivable. c) Contract income and fees and charges are accounted for on a receivable basis net of VAT where applicable. Where unconditional entitlement to grants receivable is dependent upon fulfilment of conditions within the charity's control, the incoming resources are recognised when there is sufficient evidence that conditions will be met. Where there is uncertainty as to whether the charity can meet such conditions the incoming resource is deferred. d) Income from legacies is accounted for on a receivable basis, and is recognised in full in the financial statements in the period in which probate is granted. e) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund together with a fair allocation of support costs. f) Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. g) Designated funds are unrestricted funds earmarked by the directors for particular purposes. h) Costs of generating funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure. Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012 1. Accounting policies (continued) i) Resources expended are allocated to the particular activity where the cost relates directly to that activity. Resources expended include attributable VAT which cannot be recovered. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.
Press work Group work FS Magazine Black Gay Men Internet Booklets and small media Partner notification Strategy Development Digital Media Policy Cost of generating funds Support costs Governance costs Transition Fund
1.76% 11.36% 16.95% 4.88% 5.57% 6.69% 10.88% 0.55% 0.44% 2.16% 3.63% 22.93% 0.31% 11.89%
3.05% 10.54% 15.74% 9.29% 5.26% 9.66% 9.23% 0.22% 0.54% 1.74% 2.44% 32.10% 0.24% 0.00%
Support costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity:
Press Work Group Work FS magazine Black Gay Men Internet Booklets and small media Partner notification Strategy Development Digital Media Policy Cost of generating funds
2.43% 22.32% 30.46% 5.58% 10.06% 9.31% 6.63% 0.23% 0.74% 2.43% 9.81%
5.35% 17.59% 23.26% 14.32% 9.55% 17.19% 5.24% 0.38% 0.95% 1.91% 4.26%
j) Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charityâ&#x20AC;&#x2122;s activities.
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012 1. Accounting policies (continued) k) Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset over its expected useful life. The depreciation rates in use are as follows: Plant & machinery IT Equipment Leasehold property Leasehold refurbishment
25% reducing balance 25% straight line 2% straight line 10% straight line
Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Items costing under £500 are not capitalised. l) Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities on a straight line basis over the lease duration. m) The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions. 2. Voluntary income
Chariots Sports Day Clapham Street party Crusaid Walk for Life SG Production T101Ltd Sundry donations (under £1,000 each)
2012 Total £
2011 Total £
11,570 4,494 4,179 2,000 6,919 20,072
11,570 4,494 4,179 2,000 6,919 20,072
2,392 9,426 1,726 19,175
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012 3. Total resources expended Cost of generating funds
Black Gay Men
Booklets and small media
Strategy Develop ment
Staff costs (note 6) Project costs Premises costs Office costs Depreciation Other
12,852 10,688 438 610 890 -
6,242 14,240 213 296 432 -
42,124 55,469 1,437 2,001 2,916 -
60,057 69,919 2,048 2,852 4,159 -
17,278 10,028 589 821 1,196 -
38,538 4,475 1,314 1,830 2,668 -
40,247 28,739 1,373 1,911 2,786
19,741 517 673 938 1,367 -
23,687 4,764 808 1,125 1,640 -
1,544 3,017 53 73 107 -
1,957 67 93 135 -
7,645 90 261 363 529 -
1,090 37 52 75 7,235
81,292 2,773 3,862 4,904 23,808
354,294 201,946 12,084 16,827 23,804 31,043
421,954 173,075 46,199 10,184 3,643 24,010
Total resources expended
Support Costs (note 4)
Total resources expended
Partner Notification Groupwork
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012
Support costs Support costs are allocated to charitable activities as follows:
Staff costs Premises costs Office costs Depreciation Other Total Support Costs
Booklets and small media £
Digital media £
Strategy Develop ment £
2012 Total £
18,148 620 862 1,257 5,154
8,178 279 388 566 2,322
7,569 258 359 524 2,149
598 20 28 41 170
183 6 9 13 52
1,973 67 94 137 560
81,293 2,773 3,861 5,628 23,084
135,428 14,828 3,268 594 18,404
Cost of generating funds £
Press work £
FS magazine £
Black Gay Men £
Partner Notification £
7,975 272 379 552 2,265
1,973 67 94 137 560
24,766 845 1,176 1,714 7,033
4,538 155 216 314 1,288
5,392 184 256 373 1,531
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012 5. Net incoming resources for the year This is stated after charging:
Depreciation Directors' remuneration Directors' expenses Auditors' remuneration: Audit Pension scheme statement on contributions Advice Under/(over) accrual in previous year Operating lease rentals: Property Other
23,804 Nil 235
1,850 Nil 1,445
5,200 300 900 600
4,400 600 (190)
Expenses to directors represents the costs for catering for directors' meetings and directors training for 9 (2011: 9) directors. 6. Staff costs and numbers Staff costs were as follows:
Salaries and wages Social security costs Pension contributions Pension arrears Redundancy
290,432 32,663 8,487 5,890 16,822
364,285 39,500 11,046 7,123 -
No employees had emoluments amounting to more than £60,000 in the year. The average weekly number of employees (full-time equivalent) during the year was as follows:
Direct charitable Support costs Fundraising and publicity Management & administration
6.21 1.80 0.45 0.02
6.50 2.71 0.25 0.02
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012 7. Taxation The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
8. Tangible fixed assets Leasehold Refurbishment
Leasehold Property £
Office equipment £
COST At 1 April 2011 Additions in year Disposals in year
46,095 30,190 (4,914)
496,095 168,167 (4,914)
At 31 March 2012
DEPRECIATION At 1 April 2011 Disposals in year Charge for the year
35,994 (4,914) 11,321
41,394 (4,914) 28,718
At 31 March 2012
21,063 33,650 5,842
6,037 54,714 5,371
NET BOOK VALUE At 31 March 2012 At 31 March 2011
All tangible fixed assets are used for direct charitable purposes.
Trade debtors Prepayments
10. Creditors : Amounts falling due within one year
Trade creditors Taxations and social security Accruals
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012 11. Analysis of net assets between funds Restricted Unrestricted funds funds £ £
Total funds £
Tangible fixed assets Current assets Current liabilities
594,150 298,550 (60,555)
594,150 343,967 (60,555)
12. Movement in funds At 1 April 2011 £
Incoming resources £
Outgoing resources £
At 31 March 2012 £
13,766 8,383 5,435 2,000 99,000 -
217,232 58,609 18,300 6,497
(210,659) (10,028) (56,563) (2,515) (103,946) -
1,645 (7,200) 515 4,946 -
20,339 281 18,300 6,497
Unrestricted funds: Designated Funds: Leasehold property fund 444,600 Leasehold refurbishment fund Partner notification -
441,000 124,180 7,200
Total Designated Funds
Total unrestricted funds
Restricted funds PLHPP Big Lottery Fund Grant Elton John AIDS Foundation Lloyds TSB Foundation GSK Transition Fund Comic Relief Total restricted funds
Health Equality and Rights Organisation (formerly GMFA) Notes to the financial statements For the year ended 31 March 2012 12. Movement in funds (continued) Purposes of restricted funds PLHPP
This fund is to be used for HIV prevention in London and relates to money carried forward for unfinished projects.
Big Lottery Fund Grant
This fund was used towards advertising costs committed for Black gay men that was carried forward for late invoicing and the expenditure for depreciation of the year for the assets from this fund.
Elton John AIDS Foundation
This fund is to be used for the STI Partner Notification service.
Lloyds TSB Foundation
This fund is to be used towards community work for Sports and Social Groups.
This fund was used towards developing a long term strategy for HIVpositive gay men's work.
This fund was used to ensure a smooth transition to new methods of working and competing as required by the government.
This fund will be used for producing a gay sports and social club guide for lesbians and gay men in the UK.
Purposes of designated funds Leasehold property fund Leasehold refurbishment fund
These funds represent the net book value of the leasehold property and refurbishments. Depreciation will be charged to the funds in line with the accounting policy in note 1 k).
This fund represents the net book value of the partner notification system. Depreciation will be charged to the funds in line with the accounting policy in note 1 k).
13. Operating lease commitments The charitable company had annual commitments under operating leases expiring as follows: 2012 Property Equipment £ £ Within one year 2 - 5 years
2011 Property Equipment £
2012 £ 20,000
2011 £ 133,270
14. Capital commitments
Capital expenditure authorised
Health Equality and Rights Organisation was committed at the year end to finalise the refurbishment of the Angel Wharf premises, which will be completed and paid for in 2012/13.