The Centre for Addiction Treatment Studies Limited
Registered number: 06567773
Directors' report and
financial statements
For the year ended 31 March 2020
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
COMPANY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered Accountants
&
Statutory Auditor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bates Wells & Braithwaite London LLP
|
|
|
|
|
|
|
|
|
|
|
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
CONTENTS
|
|
|
|
Independent Auditor's Report
|
|
Statement of Comprehensive Income
|
|
|
|
Statement of Changes in Equity
|
|
Notes to the Financial Statements
|
|
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2020
The Directors present their report and the financial statements for the year ended
31 March 2020
.
Directors' responsibilities statement
|
The Directors are responsible for preparing the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year
. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgements and accounting estimates that are reasonable and prudent;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors who served during the year were:
Disclosure of information to auditor
|
Each of the persons who are
Directors at the time when this Directors' Report is approved has confirmed that:
∙
so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙
the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
- 1 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
Post balance sheet events
|
Action on Addiction, parent of The Centre for Addiction Treatment Studies Limited (CATS Trading), made the decision, in June 2020, not to offer the degree programme to new students in September 2020 and beyond. With the decision to close entry to the degree programme, bed and breakfast accommodation will no longer be required and therefore, operations of CATS Trading will be wound up in the 2020-21 financial year and recovery of debtor balances will be sought. Action on Addiction will meet any remaining liabilities.
The financial statements have therefore not been prepared on a going concern basis.
The auditor, Mazars LLP, has indicated his willingness to continue in office. The Directors will consider plans relating to the appointment of the auditor at a meeting of the Directors.
In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on
28 September 2020
and signed on its behalf.
- 2 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
Opinion
We have audited the financial statements of The Centre for Addiction Treatment Studies Limited (the ‘Company’) for the year ended 31 March 2020 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:
∙
give a true and fair view of the state of the Company’s affairs as at 31 March 2020 and of its
loss 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.
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 Company 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.
Emphasis of matter - going concern
We draw attention to Note 2.2 to the financial statements which explains that the directors intend to wind up the operations of the Company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 2.1. Our opinion is not modified in respect of this matter.
- 3 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
We have nothing to report in respect of the following matters in relation to which 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.
∙
the directors were entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Directors’ Report and from the requirement to prepare a Strategic Report.
- 4 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
Responsibilities of Directors
As explained more fully in the Directors' responsibilities statement set out on page 1, the directors 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 directors 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 directors are responsible for assessing the Company’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 directors intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 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.
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 auditor’s report.
Use of the audit report
This report is made solely to the Company's member 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 Company's member 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 Company and the company's member for our audit work, for this report, or for the opinions we have formed.
Richard Bott
(Senior statutory auditor)
for and on behalf of
Mazars LLP
Chartered Accountants and Statutory Auditor
90 Victoria Street
Bristol
BS1 6DP
28 September 2020
- 5 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the financial year
|
|
|
|
There was no other comprehensive income for 2020 (2019: £
NIL).
|
The notes on pages 9 to 15 form part of these financial statements.
|
- 6 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
REGISTERED NUMBER:
06567773
BALANCE SHEET
AS AT
31 MARCH 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
28 September 2020
.
The notes on pages 9 to 15 form part of these financial statements.
- 7 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 MARCH 2020
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
Dividends: Gift Aid to parent charity
|
|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
Distribution: Gift Aid to Parent Charity
|
|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 9 to 15 form part of these financial statements.
|
- 8 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
These are the individual accounts for The Centre for Addiction Treatment Studies Limited, which is a private company, limited by shares, incorporated in England and Wales, registered number 06567773. Its registered office is disclosed on the Company information page.
The principal activity of the Company is to raise monies from student accommodation for charitable purposes. The company is a subsidiary of Action on Addiction which is a Public Benefit Entity under FRS 102.
2.
Accounting policies
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The presentation currency of the financial statements is sterling and the financial statements are rounded to the nearest £. The current financial statements relate to the year ended 31 March 2020 and the comparative period is the year ended 31 March 2019.
As noted in 2.2 below, the operations of CATS trading will be wound up in 2020-21. Consequently, the financial statements have not been prepared on a going concern basis.
The following principal accounting policies have been applied:
Action on Addiction, CATS Trading, made the decision, in June 2020, not to offer the degree programme to new students in September 2020 and beyond. With the decision to close entry to the degree programme, bed and breakfast accommodation will no longer be required and therefore, operations of CATS Trading will be wound up in the 2020-21 financial year. All outstanding creditors will be settled in 2020-21 and recovery of debtor balances will be sought. Action on Addiction will meet any remaining liabilities.
- 9 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the contract;
∙
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
- 10 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.
Accounting policies (continued)
|
|
Tangible fixed assets (continued)
|
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
- 11 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.
Accounting policies (continued)
|
|
Distributions: Gift Aid to Parent Charity
|
The Company Gift Aids its taxable profits to its Parent Charity subject to having sufficient distributable reserves.
|
|
|
The operating (loss)/profit is stated after charging:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
|
|
|
|
Defined contribution pension cost
|
|
|
|
Fees payable to the Company's auditor for the audit of the Company's annual financial statements totalled £
(2019 -
)
.
|
|
The average monthly number of employees, including directors, during the year was
6
(2019 -
7
)
.
|
- 12 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
6.
Taxation (continued)
|
Factors affecting tax charge for the year
|
|
The tax assessed for the year is higher than
(2019 - lower than)
the standard rate of corporation tax in the UK of
19
%
(2019 -
19
%)
. The differences are explained below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)
|
|
|
|
|
|
|
|
Capital allowances for year in excess of depreciation
|
|
|
|
Other timing differences leading to an increase (decrease) in taxation
|
|
|
|
Deferred tax not recognised
|
|
|
|
|
|
|
|
Total tax charge for the year
|
|
|
|
Factors that may affect future tax charges
|
There were no factors that may affect future tax charges.
|
Distributions: Gift Aid to Parent Charity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 13 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
|
Finished goods and goods for resale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
- 14 -
|
THE CENTRE FOR ADDICTION TREATMENT STUDIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £1,002 (2019 - £680). Contributions totalling £Nil (2019 - £Nil) were payable to the fund at the balance sheet date.
|
Post balance sheet events
|
Action on Addiction, parent of The Centre for Addiction Treatment Studies Limited (CATS Trading), made the decision, in June 2020, not to offer the degree programme to new students in September 2020 and beyond. With the decision to close entry to the degree programme, bed and breakfast accommodation will no longer be required and therefore, operations of CATS Trading will be wound up in the 2020-21 financial year.
The parent undertaking of The Centre for Addiction Treatment Studies Limited is Action on Addiction
which is a charity (Number: 1117988) registered in England and Wales and limited by guarantee (Number: 5947481). Copies of the Annual Report of the parent charity can be obtained from:
Action on Addiction
Head Office
East Knoyle
Salisbury
Wiltshire
SP3 6BE
- 15 -
|
|