Registered number:
Charity number:
1022680
(A Company Limited by Guarantee)
For the Year Ended
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Independent Options (North West)
(A Company Limited by Guarantee)
Contents
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Independent Options (North West)
(A Company Limited by Guarantee)
Reference and Administrative Details of the Charity, its Trustees and Advisers
For the Year Ended 31 March 2022
Page 1
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Independent Options (North West)
(A Company Limited by Guarantee)
Trustees' Report
For the Year Ended 31 March 2022
The Trustees present their annual report together with the audited financial statements of the charity for the 1 April 2021 to 31 March 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) 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 2019).
Since the charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Key performance indicators
The Board of Trustees believes that the organisation's main aim is to meet the needs of the individuals it supports. In order to continue to fulfil this, it must remain financially solvent, hence achieving a modest surplus each year is necessary, whilst generating like-for-like growth in services.
b. Key Developments and Achievements The key aims of the organisation in the year were:
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The Senior Management Team needed to broaden its scope to meet the changing needs of the sector;
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To plan for the retirement of senior managers;
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To manage the delayed transfer of the Shared Lives Service to a new provider;
∙
The initiation of the Marbury Project which involved the sale of Hallfield and the leasing of a new facility for the short breaks service.
It was originally intended to transfer the Shared Lives Service in the year to 31 March 2022 but this was delayed until the 2022/23 period. This delay presented a further cushion to the financial situation, allowing more time to develop other services. The Transfer of services enabled an evaluation of managers at various levels to shape and develop, through promotion, a stronger more effective Senior Management Team and Registered Manager Team.
The Senior Management Team was developed from a three-person team (CEO, Director of Finance, Director of Human Resources) to a five-person team (CEO, Deputy CEO and Finance, Head of Operations, Head of Development, Head of Human Recourse and Quality). A succession plan for the retirement of the Director of Human Resources in December 2022, was also put in place to handover various responsibilities and complete planned work. Two managers within the Shared Lives Team were successfully appointed in October 2021 into the roles of Registered Manager for Short Breaks and Supported Living. These promotions were reflective of managers’ internal growth and development. These changes have successfully contributed to the changing culture of the organisation and being able to tackle some of the more significant challenges. Late in the period, further work has been done to look at and restructure junior management positions across all service areas. This has set a new tone to work with different client groups and engage in a more positive way with staff. The Senior Management Team also undertook a large piece of work with an organisation called Pilot Light. This was a group mentoring process that took apart what we do as an organisation, collated agreed aims and objectives, and put down formative ideas of what Independent Options would look like in the future. The biggest achievement to come out of this was the initiation of the Marbury Project.
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Independent Options (North West)
(A Company Limited by Guarantee)
Objectives and activities
(continued)
Staff working within our servcies have been incredibly resilient to the pressures over the last year. Whilst the initial stages of the Covid-19 pandemic and Lockdowns impacted on them all, the circumstances of the pandemic over the last year have continued to complicate how they do their jobs. Services have had to close at short notice, staff have had to be redeployed, and there have been ongoing high rates of sickness due to the need to isolate. There was also ongoing uncertainty around the legal requirement for Social Care Staff to have Covid-19 vaccinations. The fallout of this on morale should not be underestimated, and for a staff group that is some of the lowest paid. However, the quality of care provided by the staff has remained at its highest level. All of the regulated services have remained at a CQC rating of Good.
Achievements and performance
a. Review of activities
Independent Options supports around 200 individuals across its range of services.
This year continued to be transitional to reflect the aims and objectives of the three-year strategy. This was also in the shadow of the Covid-19 Pandemic and coming through the difficult later stages of this. A key area was planning for the loss of the Shared Lives Service, by growing the Supported Living Service through an additional three tenancies. Also key to the year was appraising our Short Breaks Service; it was recognised that the building was not fit for purpose and did not meet the requirements of the referrals coming through. With the growth of Supported Living in the last period, the organisation has been able to complete an objective review of the Shared Lives Service. In January 2021, SMBC gave notice that they planned to re-tender the service to establish a new service-level contract. Shared Lives has previously provided Independent Options with a good management fee for low cost and has been an attractive service to run. Over the last decade, stagnation in the rise in Carer Fees has led to lower recruitment numbers. This has been combined with a shift in the commissioning expectation in terms of both growth and complexity. As an organisation, it was felt that it had become unrealistic to continue with Shared Lives through a new tender with SMBC. This was based on confidence that the Supported Living Service could continue growing to replace the lost income from Shared Lives. In Supported Living, there were several changes to where people were living and the death of a number of service users from long-term health conditions. The voids across the service were successfully filled, with suitably matched people. This meant that financially we were operating at a sustainable level. Preparations took place for the opening of the first of three required Tenancies, although this was not completed during this period. However, the delay of the transfer of Shared Lives meant that the opening of these was not as critical. In development, there were also the beginnings of a further three or four Tenancies across different service areas. Here we began new work with the NHS and different Local Authorities. This has been a key breakthrough in terms of those commissioning services with Independent Options. Whilst these services will come online in the next period and provide the financial resources to replace Shared Lives, it is a significant achievement for the organisation to have alternative areas of commissioning. It also reflects that families are seeing the quality of Independent Options and choosing us as a provider. b. Investment policy and performance Under the Memorandum and Articles of Association, the charity has the power to invest in any way the trustees see fit. The Board of Trustees has considered the most appropriate policy for investing funds and has decided that all funds should be held in risk-free investments, particularly given the current economic climate, and that they should be readily accessible. Consequently, cash funds are held in interest-bearing, UK deposit accounts.
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Independent Options (North West)
(A Company Limited by Guarantee)
Achievements and performance (continued)
c. Factors relevant to achieve objectives The results for the year are included in the Statement of Financial Activities shown on page 13. The financial position is shown in the balance sheet on page 14. The principal funding sources are services under contract with Stockport MBC.
Financial review
a. Going concern
After making appropriate inquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Whilst it has been a challenging period operationally, the Covid-19 pandemic has had a positive financial impact on the organisation. Most of our services have continued to operate, and staff have worked incredibly hard in extremely challenging times. Where we have had to close services, in particular our Guest House, we have received financial support from the Local Authority meaning we have not been left financially worse off as a result. Recruitment for a growing service has been increasingly difficult through this period. Whilst in the previous period there was a benefit from the Covid-19 Pandemic, the difficulties in recruitment have been reflective of the national picture. The amount staff is paid in Social Care is a contributing factor. Plans to address this towards the end of the period included to secure a significant uplift in fee from SMBC. By the end of the period, the uplift secured was enough to enable a pay increase for Support Staff to £9.50, which represented Minimum Wage. Further negotiations are planned with SMBC but will take place in the next period.
b. Principal risks and uncertainties
The key risks to the organisation are financial, due to continued austerity and significant increases, as well as proposed increases to the National Living Wage. We increased our fees in the 2021/22 financial year, and future fee increases will likely be necessary to meet these ongoing pressures. We are engaging with the Local Authorities to discuss our projected funding needs in the coming years.
Recruitment is a major issue within the sector as a whole. Throughout the Covid-19 pandemic, we have seen a significant improvement in the recruitment picture due to increasing unemployment in other sectors. However, as noted above, should those sectors recover then it is possible recruitment will become more challenging again. All organisations in our sector carry a risk of incidents involving the individuals we support. We have robust safeguarding policies and procedures in place along with regular training for staff to mitigate this risk. All incidents are monitored and reviewed, and, where necessary, new systems and procedures are put in place to reduce the likelihood of future incidents. Our buildings are a key part of our organisation, so keeping them in a good state of repair is important. Our head office at The Pines is based in a Victorian building and we have, in recent years, experienced serious structural issues that we have now addressed. We have regular inspections to identify any potential issues before they become more serious.
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Independent Options (North West)
(A Company Limited by Guarantee)
Financial review
(continued)
Financial review (continued)
c. Reserves Policy
The trustees consider that the level of reserves should be a minimum of 3 months’ salary costs which equates to approximately £750,000.
On 31 March 2022, Independent Options had total reserves of £920,273 (2021: £958,564) of which £912,582 (2021: £942,353) is unrestricted and £7,691 (2021: £16,211) is restricted. Of the unrestricted funds, £329,079 (2021: £329,079) has been designated for use towards any future capital or structural projects. The majority of Charity’s reserves are invested in fixed assets which, due to their nature, cannot be readily converted to cash. The Trustees consider that the level of reserves not invested in fixed assets is insufficient to meet the minimum level. They have, therefore, set a strategy that will build the level of reserves in the future. In light of this situation, the trustees monitor the cash flows of the Charity closely. The Trustees have determined that all reserves, not represented by fixed assets, should be held in risk-free investments and they should be readily accessible. By this decision, cash funds are held in interest-bearing, UK deposit accounts. deposit accounts.
d. Review of the financial year
The focus of this period has been to prepare for the transition. The growth and diversity of Supported Living requires a different management structure, and specialist training. The size of the service is putting new pressure on Central Services, which will need to be developed in the forthcoming period.
The later part the Covid-19 Pandemic has created further issues. Whilst covid-related funding reduced and, towards the end of the period, ceased, the regulations for safe deployment of staffing increased the impact on running services. As the country opened back up, this impacted on recruitment of new staff, as other areas of the economy required staffing also. The organisation continued to receive the majority of its income from one Local Authority. The funding arrangements have impacted on the base rate at which we can remunerate staff.
Structure, governance and management
a. Constitution
The charity is registered as a charitable company limited by guarantee and is constituted under a Memorandum of Association dated 01/04/1997. It is a registered charity, number 1022680.
The charity’s objectives are to relieve the needs of children and adults who have a recognised disability through the provision of a range of community care services and through the provision of training for other organisations to provide similar services. By its charitable objectives, Independent Options’ stated mission is to empower people with disabilities, enabling them to take control of their lives, achieve their aspirations and enjoy life to the full. The charity implements its mission through the delivery of highly personalised support services for adults and children who have a wide range of disabilities, including learning disabilities, autism, physical disabilities, acquired brain injuries, and mental health needs.
Page 5
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Independent Options (North West)
(A Company Limited by Guarantee)
Structure, governance and management
(continued)
The charity’s work is underpinned by its key values. We believe in a society where every person is respected, listened to, and given the same opportunities, regardless of their additional needs. We shape our work to reflect the views and needs of the people who use our services and those of their families and carers. We are committed to excellence in everything we do.
The Trustees confirm that they have referred to the information in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and planning future activities and services.
b. Methods of appointment or election of Trustees
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.
c. Organisational structure and decision-making policies
The trustees at the date of this report are as noted on page 1.
Governance is by a Board of Trustees, supported by a professional management structure. The Board of Trustees are also charity trustees within the definition of Section 177 of the Charities Act 2011 and constitute directors, for Companies Act purposes. The maximum number of Trustees is 16 and the minimum number is 5. There are currently 8 Trustees who bring a wealth of professional skills in finance, business development, human resources, education, and IT. The Board is supported by the Chief Executive, who is responsible for the overall operation of the charity, and the Directors of Finance and Human Resources. The Board of Trustees has the power, at any time, to appoint Trustees by procedures set out in the organisation’s Code of Governance and Trustee Code of Conduct. Any Trustees appointed in this way can only hold office until the next Annual General Meeting and will then be eligible for re-election by the Members. One-third of the Trustees will retire from office at each Annual General Meeting and retiring members are eligible for re-election. All the Board of Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed are set out in note 9 to the accounts.
d. Policies adopted for the induction and training of Trustees
New Trustees attend an organisational induction as well as a briefing on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Board and Sub-committee processes, the Business Strategy Plan, and recent financial and operating performance of the organisation. Training is provided, which aims to broaden their understanding of the organisation’s values, budgets and finances, legislation affecting the sector, and issues relating to quality management and social care regulation.
e. Pay policy for key management personnel
The Senior Management team is considered to be the key management personnel of the organisation. During the year, key management personnel received combined total emoluments of £174,650 (2021: £164,841).
Remuneration for Senior Management is decided at Board Level. Agreed salary scales have been set at Board Meetings and these are reviewed along with pay for the organization as a whole and are also reconsidered when positions become vacant.
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Independent Options (North West)
(A Company Limited by Guarantee)
Structure, governance and management
(continued)
f. Financial risk management
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
The key risks have been discussed under principal risks and uncertainties within this Trustee report.
g. Future developments
Progress on the 3-year strategy was refocused during this period. The output of the Pilot Light project supported the Senior Management Team to develop the Transitional Elements of the Strategy. As we move into the new period, there are secure plans for three new Tenancies. The Marbury Development is an exciting opportunity to modernise Short Breaks, broaden the scope of the Family Centre, and provide a modern building for our Central Services.
The Management Team is also in a stronger position to meet the challenges of developing the organisation.
Statement of Trustees' responsibilities
Disclosure of information to auditors
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 charity's auditors are unaware, and
∙
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Hurst Accountants Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
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Independent Options (North West)
(A Company Limited by Guarantee)
Approved by order of the members of the board of Trustees and signed on their behalf by:
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Independent Options (North West)
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Independent Options (North West)
We have audited the financial statements of Independent Options (North West)
(the 'charity') for the year ended
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the 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 and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial 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. 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 our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Independent Options (North West)
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Independent Options (North West) (continued)
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 are prepared is consistent with the financial statements.
∙
the Trustees' Report has been prepared in accordance with applicable legal requirements.
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course 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 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
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the 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
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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 companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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Independent Options (North West)
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Independent Options (North West) (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. 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 arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙
Supporting documentation relating to the Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations - Detecting and responding to the risks of fraud
∙
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, Charities SORP, Charities Act 2011, Charities Commission, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified Our procedures to respond to the risks identified included the following:
∙
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙
Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙
Enquiring of management about any actual and potential litigation and claims.
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Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Independent Options (North West)
(A Company Limited by Guarantee)
Independent Auditors' Report to the Members of Independent Options (North West) (continued)
We have also considered the risk of fraud through management override of controls by:
∙
Testing the appropriateness of journal entries and other adjustments.
∙
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
21 Tiviot Dale
Stockport
Cheshire
SK1 1TD
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Independent Options (North West)
(A Company Limited by Guarantee)
Statement of financial activities (incorporating income and expenditure account)
For the Year Ended 31 March 2022
Page 13
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Independent Options (North West)
(A Company Limited by Guarantee)
Registered number:
02560910
Balance Sheet
As at 31 March 2022
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
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Independent Options (North West)
(A Company Limited by Guarantee)
Statement of Cash Flows
For the Year Ended 31 March 2022
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
Independent Options is a charitable company limited by guarantee incorporated in England, registered number 02560910. The registered address is 67 Chester Road, Hazel Grove, SK7 5PE.
2.
Accounting policies
The charity is a company limited by guarantee, . The members of the company include the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
2.
Accounting policies (continued)
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Interest is recognised in the statement of financial activities in the year in which it is incurred.
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
2.
Accounting policies (continued)
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets costing £
100 or more are capitalised.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is
provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives.
Depreciation is provided on the following bases:
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
2.
Accounting policies (continued)
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.
The charity holds monies on behalf of service users, under which client funds are paid directly to the charity.
The charity is not generally liable as a principal for these amounts.
Redundancy costs are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The charity recognises redundancy costs when it is demonstratably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or provided termination benefits as a result of an offer made to encourage voluntary redundancy.
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgement:
Accruals and deferred income
Accruals and deferred income are entered in the financial statements based on management expectations, taking into account various factors relevant to each individual item. The charity recognised accruals and deferred income at 31 March 2022 of £108,466 (2021: £139,807). Bad debts provision Provisions are liabilities of uncertain timing or amount and therefore in making a reliable estimate of the quantum and timing of liabilities judgement is applied and re-evaluated at each reporting date. The charity recognised bad debts provision at 31 March 2022 of £12,276 (2021: £12,276). The gross year end debtor value was £408,021 (2021: £423,772). Depreciation The charity exercises judgement in estimating the useful economic life of motor vehicles, computer equipment and fixtures and fittings.
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
11.
Staff costs
(continued)
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
The charity holds monies on behalf of service users. At 31 March 2022, the amount held on behalf of service users was £717,182 (2021: £633,380).
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
A bank loan was taken out in March 2005 for the purchase of the premises at Hallfield House, 50 Hall Street, Stockport. The bank loan is secured by a First Legal Mortgage over this property. The bank loan bears interest of 1.75% above Natwest Bank plc base rate and is repayable in monthly instalments which commenced in April 2005.
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
Page 28
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
Page 30
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
Page 31
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Independent Options (North West)
(A Company Limited by Guarantee)
Notes to the Financial Statements
For the Year Ended 31 March 2022
The company operates two defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company into these funds amounted to £99,691 (2021: £91,953). Contributions totalling £16,993 (2021: £15,374) were payable to the fund at the balance sheet date and are included in the accruals.
After the year end, the freehold property held by the charity, Hallfield House, was disposed of and the lease of a new facility for the short breaks service was agreed.
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