Total income in 2018 was €11,679,210, which represents an increase on 2017 income (2017: €9,252,403) of 26%. This relates mainly to increased resources under the HSE service level agreement for local Jigsaw services, and growth in fundraising income, both from individuals and from corporate supporters.
Donations and legacies – 19%
Charitable activities – 81%
(Including funding from the HSE and others)
Raising funds – 3%
Charitable activities – 97% (i.e. Jigsaw services and supports)
Overall expenditure in 2018 was €11,059,813 which represents an increase on 2017 expenditure (2017: €9,428,598) of 17%.
In line with the new strategic pillars we have grouped comparative figures from previous years. Work previously classified as research and engagement now comes under the influencing change pillar. Strengthening communities is a new category and includes our education and training work with partners in areas outside of our service areas, and also includes One Good School.
This increase relates mainly to increased costs for the delivery of services.
Jigsaw service delivery - €10,255,142, (93%)
Strengthening communities - €124,809, (1%)
Influencing change - €320,944, (3%)
Raising funds - €358,918, (3%)
Total - €11,059,813, (100%)
Jigsaw service delivery - €7,958,953, (88%)
Influencing change - €806,279, (9%)
Raising funds - €243,885, (3%)
Total - €9,009,117, (100%)
Jigsaw service delivery - €7,296,375, (94%)
Influencing change - €296,437, (4%)
Raising funds - €185,690, (2%)
Total - €7,778,502, (100%)
Jigsaw services delivery continues to be the main focus of Jigsaw’s work and related costs and represents 93% of the total costs in 2018. This is borne out by the increase in the number of staff employed for Jigsaw services with 119 staff employed at the end of 2018 (2017: 108).
There is a decrease on the expenditure for influencing change in 2018 of €485,335 compared to 2017 €806,279. This is due to a one off national advertising campaign that was free of charge in 2017 and to increased expenditure in 2018 on the My World Survey research of €156,218 (increased from some €83,157 in 2017).
Expenditure on fundraising has increased from 2017 levels and relates to our increased investment in fundraising to enable Jigsaw to increase fundraising income. As reviewed above, return on investment in fundraising is a key measure of fundraising success.
In our work at Jigsaw it’s imperative that we ensure we’re doing the right things, and then doing those things right...Dr Joseph Duffy, Chief Operating Officer.
Unrestricted funds expenditure
The total expenditure from unrestricted funds for all activities including influencing change, strengthening communities, delivering services and cost of generating funds was €724,434 (2017: €754,758) which is less than the level of unrestricted income received in 2018 by €383,279. This is in contrast to 2017 where expenditure exceeded income by €235,183 and reflects the growth in fundraising income.
The company does not operate a defined benefit pension scheme. The company operates a defined contribution pension scheme for qualifying staff. The contributions payable are charged to the income and expenditure account in the year they fall due and there are no future pension liabilities arising for the scheme.
Investments, investment policy and governance The company does not hold any financial investments. Any funding surplus to current requirements is held in Irish bank accounts and is readily accessible. Funds may be held in Irish deposit accounts and in current accounts in line with the board approved treasury policy. The board reviewed the treasury policy in 2018. Investing surplus funds in deposit accounts is considered a low risk investment for Jigsaw. It is not proposed at this time that Jigsaw consider other investment options, given the increased level of risk with speculative investments.
Outline summary of fund movements
The net movement in fund for 2018 was a surplus of €619,396 (2017: deficit of €176,195), which is analysed by restricted/unrestricted in Note 21 in the accounts. The total service delivery expenditure related to the service level agreement with the HSE Mental Health Directorate was €8,274,703 and this was met by HSE Mental Health Directorate income.
There was a surplus in the year of €383,279 (2017: deficit of €235,183) related to activities funded through unrestricted funding, and this is due to unrestricted fundraising income that was higher than the expenditure coming into the company.
I felt as if I wasn’t being judged, that I could talk about what was concerning me without the fear that I would be ignored or have my trust broken.A quote from a young person who attended Jigsaw
for support with their mental health
In accordance with recommended best practice, each charity should have a reserve policy and Jigsaw has developed and adopted a reserves policy.
The board of directors has examined the charity’s requirements for reserves in light of the main risks to the organisation. It has established a policy whereby the working capital requirements are considered for both the HSE funded and non-HSE funded work of the company. The unrestricted funds not committed or invested in tangible fixed assets held by the charity should be maintained at a level of 13 weeks of the non-HSE related projected expenditure to meet the working capital requirements of the charity.
The local Jigsaw service delivery is resourced through an annual service level agreement with the HSE. Continued resourcing is required from the state in order to continue to deliver these services. The directors have agreed to consider the total costs of Jigsaw (including the HSE resourcing of Jigsaw services) in their review of maintaining a prudent reserve. This is in order to provide for working capital requirements should there be a need for an orderly wind down of Jigsaw’s service delivery.
Total reserves at the end of 2018 are €3,166,782.
Restricted reserves at the year-end amount to €448,721.
At the end of 2018 Jigsaw had designated reserves of €1,004,000. The board agreed to designate a reserve from the general reserve to invest in the strengthening communities and influencing change pillars beyond what projected income from fundraising will cover for 2019. In addition, the board has agreed to maintain a reserve for the statutory redundancy costs of staff in place at the end of the financial year.
The directors consider that the level of unrestricted reserves of €1,746,530 is sufficient to meet the working capital requirements non-HSE related projected expenditure, estimated at €365,600. The amount held is €1,380,930 about the minimum reserve required for 13 week working capital for non-HSE related projected expenditure. It is considered that this is sufficient to cover an orderly wind down of Jigsaw services should the HSE service level agreement contract not be renewed. This is in line with Jigsaw’s policy. If the reserves fall below the level required by the policy, the directors will consider what actions need to be taken.
In determining the allocation of reserves for future plans, the board of Jigsaw maintain a focus on innovations and acknowledge that there is a lead time to develop and prove new innovations that may require the allocation of significant funding from reserves.
In line with the current strategic plan, the board accept that Jigsaw may need to invest from unrestricted reserves significant levels of funding to develop new areas of work, such as the One Good School project and jigsawonline.ie
The maintenance of an unrestricted reserve is viewed as key to advancing new innovations in mental health and allowing the board to make decision about the future plans of the organisation.
Funding from the HSE is committed on an annual basis and there is an inherent challenge for long term future planning related to an annual commitment of funding. To mitigate this risk, we work closely with the HSE Mental Health Directorate to agree Jigsaw service development plans through a partnership approach.
While our income from fundraising has grown and we have a number of multi-annual agreements with corporate sponsors, other areas of fundraising can increase and decrease based on public sentiment and competition from other charities. The fundraising team looks to build diverse and sustainable income streams to minimize this risk.
While some of the large scale philanthropic funds have closed in Ireland in recent years, there are a number of trusts and foundations who remain an important funding support to the charity sector and Jigsaw works hard to identify potential grants and funds that are aligned to our mission and enable us to advance our work.
An annual fundraising plan is developed and approved as part of the next year’s budgeting process. This fundraising plan aims to address the risks, challenges and opportunities across the range of fundraising income streams.
Post balance sheet events
The HSE National Mental Health Directorate have confirmed a service level agreement for 2019 of €10.35m. This relates to the costs of delivering increased services across the network of 13 locations, which includes deferred income at the end of 2018 of €1,066,618.
This includes funding to develop additional service locations by expanding the service in Offaly to cover Laois, and by commencing the development of two new services in Wicklow and Tipperary in 2019.
In addition, the HSE CHO Area 2 contribution for Jigsaw Galway will be €854,630 and the HSE CHO Area 1 funding for Jigsaw Donegal of €289,000 has been agreed. This level of funding is considered sufficient for the delivery of Jigsaw services in the 13 locations in 2018 and to develop the new agreed service locations. In February 2019, it was agreed that the operation of the local Jigsaw service in Donegal would transfer from the local Fiscal Agent, the North West Alcohol Forum Ltd to Jigsaw. This involved a TUPE process for the existing staff and the transfer of operational and clinical governance to Jigsaw which took place in May 2019. The North West Alcohol Forum has been a key local partner to Jigsaw since opening Jigsaw Donegal in 2012 and their support is appreciated by Jigsaw.
There are no other post balance sheet events affecting the company.