The trustees present their annual report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (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.
Key performance indicators
The Board of Trustees believes that the organization’s main aim is to meet the needs of the individuals it supports. To continue to fulfil this, it must remain financially solvent, aiming to achieving a modest surplus each year, whilst generating like-for-like growth in services.
Key Developments and Achievements
Independent Options supports around 200 individuals across its range of services.
This year we closed the service Shared Lives, which was transferred to our client in October 2022. We have been aware of this closure for the last couple of years, which gave us time to adapt and find additional sources of income, mainly concentrating our activities on Supported Living.
During the financial year, we sold Hallfield House, from where we operated the Short-breaks service with 7 bedrooms. In exchange, we leased for 27 years Norwood House, in which we will transfer this service with the potential to increase from the 7 bedrooms in the old building to more than 16 bedrooms. This process of bedroom increase will be phased during the next two years, to be in line with the CQC demands. We also transferred the head office from The Pines to Norwood House. The Pines will be sold a process that will take around two years
In the financial year 2022/2023, the organization put in place a restructuring plan regarding structure organization, competencies, responsibilities, and roles that is on course to be finished in 2023/2024.
These changes at the senior and medium levels were needed to allow the split and control of activities, and tasks and orientate he organization to be able to grow in a sustainable way for the next years.
New HR and Finance Directors were appointed in 2022/2023, also with the restructuring of SMT adding roles such as Operational and Development, and changing middle-level structures and their roles.
These changes brought the need for training and adapting staff to these new responsibilities, with an effort of the organization to keep those workers that could and can create value along with their knowledge to make this organization sustainable in both fields, quality of service, and financially viable.
One other key development was the implementation of software to control HR, Rotas, and Services provided (Carevision), which, allowed us to transfer payroll control made from paper timesheets to proper IT software, with an integration of the full information, control of the clock in, clock out registration of all our staff workers and create efficiencies.
In 2022/2023, we were able to start to implement a part of this software solution on the side of HR and Rotas, and in 2023/2024 we will be able to implement the side of the software regarding the Quality service support in order to transfer all information to a single place and allow the parents and our staff to have the full information from our tenants and service users in a single place, easy to use and to consult (through an App).
A key area of development was to introduce enhanced financial control systems, to improve the analysis of information, to make better management decisions. This development was to improve how as an organisation we are able to communicate across departments, and improve efficiency.
Review of activities
The focus on the financial picture of 2022/23 was to ensure that adequate preparation was in place for the series of changes to the organisation. This included targeted growth in Supported Living, to balance the loss of Shared Life. The sale of Hallfield was required to fund the planned adapting of Norwood House in Office Accommodation and a suitable Short Breaks Service. Being in a good position at the end of the financial period was required to potentially manage service disruptions and unexpected cost. These contingencies are required over possibly the next 12 – 24 months
The restructure is clearly a reflection of the growth of the organisation, and the challenges ahead. This requires careful monitoring and review to ensure that the key roles are being met fully.
Independent Options supports around 200 individuals across its range of services.
During 2022/2023 we increased our services provided in Supported Living with 3 new households, Denton Road in October, Bailey Road, in November, and Elm Street in December.
We still looking to increase this area of services to allow us to share revenue from different houses and different types of services provided by our main client, SMBC through ISF, Block Contracts, Tenancy contracts, or Spot contracts
We finished Shared Lives on 24 October and transferred it to SMBC.
The Centre was transferred to Norwood House, giving us better service quality and able to provide a broader service to users.
This year, recruitment was a major challenge due to market shortages, market competition between organizations like ourselves and even competing with for-profit organizations, reflecting staff shortages being felt across the economy as a whole.
We were still using recruitment agencies during this year, but we started to change this process at the end of the year, to allow us to save costs and create in-house the capacity to recruit. In order to retain our staff inside of our organization, we gave them better work conditions, training, and pay rates.
The results for the year are included in the Statement of Financial Activities shown on page 10. The financial position is shown in the balance sheet on page 11.
The principal funding sources are services under contract with Stockport MBC.
The Board of Trustees still continues to consider the viability of bonus payments on an annual basis. No bonuses were paid this year.
Under the Memorandum and Articles of Association, the charity has the power to invest in any way the trustees wish. 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. By this decision, cash funds are held in interest-bearing, UK deposit accounts.
Review of the financial year
As a result of the restructuring referred to under review of activities the charity incurred a deficit of £356,190 during the year compared to a deficit in the previous year of £38,291.
Due to the potential sale of the Pines the Directors have taken the opportunity to revalue the Pines to its market value.
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.
Principal risks and uncertainties
The main risk that the organization has is the clear difficulty in recruiting for all levels of the organization roles, which would allow us to aspire to improve service quality delivery and create efficiencies at all levels. Communication with our stakeholders regarding their needs is a critical aim in all future plans. It is important that discussion take place of the need to increase the annual fees, in times of higher costs, when employment costs including the national minimum wage is increasing faster than the inflation rates,
All organizations 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.
The sale of the Pines is an important part of the strategy and development for the organisation. As we begin the process to sell this property, with keen interest and potentially a competitive sale price. It is important to understand that there may be unforeseen problems associated with selling of this type of property. So, there may be uncertainties that mean that any income from a sale can’t be relied upon in the short term.
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 2023, Independent Options had total reserves of £1,730,718 (2022: £920,273) of which £1,724,965 (2022: £912,582) is unrestricted and £5,753 (2022: £7,691) is restricted. Of the unrestricted funds, £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; considering 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.
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 that all funds should be held in risk-free investment, particularly given the current economic climate, and that they should be readily accessible. Consequently, cash funds are held in interest-bearing, UK deposit accounts.
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.
This pressure from inflation rates could bring bigger competition between organizations, which on the other hand, can create more difficulties in recruiting for the medium and long term, causing higher costs of staff training, looking to have higher qualified staff, for services, that are almost paid In line or very close to the minimum wage, but where, some or most of the services provided required high technical expertise and skills to performance do deliver the minimum quality that it is demanded from us.
All organizations 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 organization, 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.
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 recognized disability through the provision of a range of community care services and through the provision of training for other organizations 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 fullest. The charity implements its mission through the delivery of highly personalized 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.
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.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The management of the charity is the responsibility of the Trustee who are elected and co-opted under the terms of the Articles of Association.
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 director's for Companies Act purposes. The maximum number of Trustees is 16 and the minimum number is 5. There are currently 5 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 12 to the accounts.
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 to quality management and social care regulation.
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 £230,852 (2022 - £174,650).
Remuneration for the CEO is decided at the 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.
In accordance with the company's articles, a resolution proposing that Chadwick & Company (Manchester) Limited be reappointed as auditor of the company will be put at a General Meeting.
The transition into the new Head Office and Short Breaks Service will be the dominant development project for the next 6 – 12 months. Current plans have an effective project management plan in place. Alongside this, the sustainable growth of Supported Living needs to be achieved
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Independent Options (North West) (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 charity’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.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's 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 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 auditor's 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The nature of the industry and sector in which the charity operates; the control environment and business performance including key drivers for bonus levels and performance targets,
The outcome of enquiries of 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 charity'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
The legal and regulatory framework in which the charity operates, particularly those laws and regulations which have a direct effect on the financial statements, such as 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 charity, including General Data Protection requirements, and Anti-bribery and Corruption and Health and Safety at Work Act.
Our procedures to respond to risks identified included the following:
Reviewing the financial statements disclosures and testing to support 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 or potential litigation claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
We have also considered the risk of fraud through 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 mad 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Chadwick & Company (Manchester) Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Independent Options (North West) is a private company limited by guarantee incorporated in England and Wales. The registered office is Marbury House, Marbury Road, Heaton Chapel, Stockport, Greater Manchester, SK4 5
NL.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of leasehold buildings. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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 received.
Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time is not recognised and refer to the Trustees' Report for more information about their contribution.
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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Client assets and liabilities
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.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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 2023 of £238,409 (2022 - £108,446).
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 a bad debt provision at 31 March 2023 of £23,114 (2022 - £12,276). The gross year end debtor value was £259,092 (2022 - £408,021).
The charity exercises judgement in estimating the useful economic life of motor vehicles, computer equipment and fittings.
Charitable activities
Charitable activities
Charitable activities
Charitable activities
Charitable activities
Central
Shared lives
Short breaks
Supported living
The Centre
Central
Shared lives
Short breaks
Supported living
The Centre
The average monthly number of employees during the year was:
The remuneration of key management personnel is as follows.
The key management personnel are considered to be the senior management team.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Leasehold buildings were revalued during the year by the Trustees on the basis of open market value.
The charity holds monies on behalf of service users. At 31 March 2023, the amount held on behalf of service users was £184,131 (2022 - £135,253).
The long-term loan was paid off in the year.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The Children and Family Centre (formerly Right Start) is a project for young children and families which commenced on 1 April 2013.
Designated funds are held for use towards future capital or structural projects.
Operating lease payments represent rentals payable by the company for certain of its properties. The lease is for a term of 27 years, with a rent review in 7 years and then 10 yearly after that.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no related party transactions during the year.