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Report of the Trustees and |
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Financial Statements |
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for the Year Ended 31 March 2022 |
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for |
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McFarlane Trust Ltd. |
REGISTERED COMPANY NUMBER:
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REGISTERED CHARITY NUMBER:
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Report of the Trustees and |
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Financial Statements |
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for the Year Ended 31 March 2022 |
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for |
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McFarlane Trust Ltd. |
McFarlane Trust Ltd. |
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Contents of the Financial Statements |
for the Year Ended 31 March 2022 |
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Page |
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Report of the Trustees | 1 | to | 6 |
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Report of the Independent Auditors | 7 | to | 9 |
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Statement of Financial Activities | 10 |
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Statement of Financial Position | 11 |
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Statement of Cash Flows | 12 |
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Notes to the Statement of Cash Flows | 13 |
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Notes to the Financial Statements | 14 | to | 23 |
McFarlane Trust Ltd. (Registered number: SC115949) |
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Report of the Trustees |
for the Year Ended 31 March 2022 |
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The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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). |
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The financial statements comply with the Charities and Trustees Investments (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102). |
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OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The principle objective of the charity is the provision of accommodation and care in the community for adults with complex learning disabilities. |
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The charity has in place general and project management that are ever mindful of opportunities to improve all aspects of care support to all the people supported to integrate them into their communities and to provide them with life enhancing opportunities. |
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Our strategy is to grow organically and to continue to increase our capacity in respect of accommodation, care and support, without affecting the high standard of service we provide. |
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McFarlane Trust Ltd. (Registered number: SC115949) |
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Report of the Trustees |
for the Year Ended 31 March 2022 |
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ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
The coronavirus pandemic has continued to impact the organisation and the social care sector as a whole. Despite this we have managed to push forward with some of our strategic objectives. |
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We have invested in staffing which has allowed us to bring more staff hours into each of our services, thus providing more flexible support for our service users, and giving us cover for the increase in absences due to Covid-19. |
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With a view to attract new talent and to retain our existing loyal staff we have enhanced our employment benefits package. As well as upgrading our employer pension scheme and group life assurance policy we have incorporated additional benefits to include; an Employee Assistance Programme, a discounts service and an employee referral scheme. |
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The installation during the year of a digital care management software package has improved the efficiency of the essential daily notes prepared for each of the people we support - this replaces our manual system. As well as assisting in the internal management of the care we provide, the system is a useful tool when providing information to external agencies. Since the year end, an additional family access facility has been installed to the software allowing family members to review information and therefore feel more involved with the daily care of their loved ones. |
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We have outsourced our property maintenance programme to assist in ensuring that our properties are well maintained. As well as ensuring property compliance requirements and early attention to maintenance issues, our providers have offered advice on property improvement. Their work to date has both enhanced the appearance of our properties and provided improved facilities to the people we support. |
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Our newly upgraded website is now live with many stories from our employees, the people we support, and their family members. We aim to use the website to promote our brand and as an advertising tool for potential new employees and service users. |
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The trustees continue to develop strong governance and leadership, to promote the organisation's aims and outcomes and to develop sustainable services underpinned by clear strategic intentions. As part of this, our governing documents along with our Memorandum and Articles of Association were reviewed and updated during the year. All trustees and senior management were involved in a conference day discussing strategic development, as part of our strategy to grow organically three potential focus areas were identified: |
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- | Expand our current market |
- | Potential to move into different funding authorities |
- | Develop outreach service |
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Current staffing issues within the social care sector mean that these strategies are difficult to develop in the short term. They will however form the basis of a business plan to be prepared by the Finance and Service directors. |
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Mr William Alan Paterson was appointed as a trustee on 6 October 2021. Post year end Dr Elizabeth Vaughan resigned as a trustee. The number of trustees remain at four. We continue to seek additional trustees to join the board. |
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Our strong senior management team, led by the Finance and Operations Directors, provide a professional and strategic based approach to delivering high quality services. Our team are trained to seek and respond to new opportunities and to diversify in any way which may improve the services we provide. |
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The charity carries surpluses earmarked for specific purposes in future years. |
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FINANCIAL REVIEW |
Principal funding sources |
Local authorities continue to be our main source of funding, most notably Renfrewshire and East Renfrewshire Councils. |
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Investment policy and objectives |
Under the Memorandum and Articles of Association, the charitable company has the power to invest in any way the trustees wish. The trustees, having regard to the liquidity requirements of running the projects, have operated a policy of retaining funds in an interest bearing current account. |
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McFarlane Trust Ltd. (Registered number: SC115949) |
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Report of the Trustees |
for the Year Ended 31 March 2022 |
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FINANCIAL REVIEW |
Reserves policy |
The trustees consider that the retained general reserves should include at least £200,000 representing cash reserve. The trustees feel this would be an adequate sum in hand, in the event of any delays in cash received from funding bodies. |
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The total level of unrestricted reserves at 31 March 2022 was £1,264,209 comprising of:- |
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Designated funds - £161,218 |
- £17,615 - house donations funds, to be spent on individual houses; |
- £120,800 - home improvement funds |
- £22,803 - voids provisions |
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together with other unrestricted funds of £1,102,991 representing the free funds of the charity. |
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Training Grant restricted reserves at 31 March 2022 were £31,560. |
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The trustees recognise that reserves have accumulated due to restrictions of COVID-19 relating to accommodation improvements. With the uplift of restrictions, a property improvement and maintenance programme has now commenced. |
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Reserves are built up to provide funds to finance the future plans of the charity as noted in the section below. Future plans include significant expenditure in respect of property and the acquisition of a fleet of transport vehicles. The charity is cognisant of the commitment to plan and fund the ongoing and future cost of compliance in respect of its properties and services. |
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The trustees are prohibited from making any distribution under the Memorandum and Articles of Association. |
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Going concern |
During the year the Coronavirus pandemic has continued to have unparalleled outcomes for the organisation. |
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McFarlane Trust have continued to review and update their Covid 19 Contingency Plan, with the main priorities still being: |
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- | Leadership systems, management style and focus; |
- | Identify core/ essential services and what is required to maintain these; |
- | Plan for workforce issues; |
- | Mitigate financial risks and repercussions and; |
- | Identify new /updated legislative and regulatory compliance requirements. |
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Despite the pandemic we have successfully maintained the loyalty of our employee base and continued to have adequate resources with which to support all our service users. |
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We are mindful of the current UK economy together with the current cost of living crisis and the potential threat of available funds to social care in the future. We feel in a strong position to manage any restrictions to our current level of funding and to continue servicing our clients to high standards. |
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McFarlane Trust Ltd. (Registered number: SC115949) |
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Report of the Trustees |
for the Year Ended 31 March 2022 |
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FUTURE PLANS |
The creation of a business plan will be a focus for the organisation. |
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We intend to continue pushing forward with our property maintenance and upgrade program for our current supported living properties. |
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We will look to identify and purchase new accessible properties to allow us to expand our current provision of accommodation and support within our staffing capabilities. |
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We intend to research methods of increasing our brand exposure, whether by advertising or social media, around the local council areas, with a view to attract new services and employees. |
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Our plan to provide a service vehicle for each of our properties will allow us to offer additional travel opportunities to the people we support. |
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We have recently relocated our head office to Paisley. Our new office is more accessible to our staff and the people we support in terms of distance and facilities. |
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STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
McFarlane Trust Limited, operating under its Memorandum and Articles of Association, has conducted charitable activities in the United Kingdom since 1988. The board of trustees is responsible for the overall governance of the company. |
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Trustees |
In accordance with the charitable company's Memorandums and Articles of Association, the board of trustees must have at least three members.Trustees are selected to bring the varied range of skills and experience necessary to provide governance to key management personnel. |
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Organisation |
The board of trustees has overall responsibility for the strategic direction and administration of the charitable company. Day to day operations, the committee and decision-making processes and the business plan are managed by the director of finance and the director of operations. |
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Induction and training of new trustees |
New trustees are briefed on their legal obligations under charity and company law, the Scottish Charity Regulator's guidance on trustee duties, and informed of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the briefing they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. |
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Key management remuneration |
All trustees give of their time freely and do not receive remuneration for their role. The appointed directors are remunerated commensurate with their role within the organisation. The remuneration of all staff is dependent on the skills, experience and qualifications they bring to their role and is matched as far as possible with local market levels. |
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Risk management |
The trustees have a risk management strategy which comprises: |
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- an annual review of the principal risks and uncertainties that the charity faces; |
- the establishment of policies, systems and procedures to mitigate those risks identified in the annual review and; |
- the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise. |
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The main risk, as is inherent in any organisation relying on government funding, is the ability to adapt and diversify in line with current political policies. |
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McFarlane Trust Ltd. (Registered number: SC115949) |
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Report of the Trustees |
for the Year Ended 31 March 2022 |
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REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
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Registered Charity number |
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Registered office |
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Trustees |
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Auditors |
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Radleigh House |
1 Golf Road |
Clarkston |
Glasgow |
G76 7HU |
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Bankers |
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Glasgow |
G2 2ND |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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FUNDS HELD AS CUSTODIAN FOR OTHERS |
The charity acts as custodian of certain service users' personal bank accounts. Procedures and checks are in place to safeguard such funds and to ensure these are only used for such purposes. |
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McFarlane Trust Ltd. (Registered number: SC115949) |
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Report of the Trustees |
for the Year Ended 31 March 2022 |
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STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of McFarlane Trust Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
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Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to |
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- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
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state whether applicable UK accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
charitable company will continue in business. |
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The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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In so far as the trustees are aware: |
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- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit
information and to establish that the auditors are aware of that information. |
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AUDITORS |
The auditors, O'Haras Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. |
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Approved by order of the board of trustees on
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Report of the Independent Auditors to the Trustees and Members of |
McFarlane Trust Ltd. |
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Opinion |
We have audited the financial statements of McFarlane Trust Ltd. (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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 (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming
resources and application of resources, including its income and expenditure, for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
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have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee
Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). |
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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 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 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. |
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Conclusions relating to going concern |
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. |
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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. |
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Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. |
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Other information |
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
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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. |
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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 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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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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Trustees and Members of |
McFarlane Trust Ltd. |
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Matters on which we are required to report by exception |
In the light of the 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 Report of the Trustees. |
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We have nothing to report in respect of the following matters where the Companies Act 2006; the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities and Trustees Investment (Scotland) Act 2005 requires us to report to you if, in our opinion: |
- | the charitable company has not kept proper and adequate accounting records; or |
- | the financial statements are not in agreement with the accounting records; or |
- | certain disclosures of trustees' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to
prepare a Strategic Report or in preparing the Report of the Trustees. |
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Responsibilities of trustees |
As explained more fully in the Statement of Trustees' Responsibilities, the trustees 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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In preparing the financial statements, the trustees are responsible for assessing the charitable 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. |
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Our 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 a Report of the Independent Auditors 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. |
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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- We gained an understanding of the legal and regulatory framework applicable to the charity and the care sector in which it operates. We made enquiries of management as to whether there were any known or suspected instances of non-compliance with laws and regulations or fraud, and reviewed available board minutes for any indication of such matters. |
- We gained an understanding of management's internal controls designed to prevent and detect irregularities in their day-to-day operations. |
- We considered laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, the Charities Accounts (Scotland Regulations 2006 (as amended) and the Charities and Trustees Investment (Scotland) Act 2005. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement components. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of relevant third parties. |
- We considered how fraud might occur in this company and designed our tests accordingly. |
- As in all audits, we also addressed the risk of management override of internal controls, including reviewing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
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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 Report of the Independent Auditors. |
Report of the Independent Auditors to the Trustees and Members of |
McFarlane Trust Ltd. |
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Use of our 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, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and the trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 |
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1 Golf Road |
Clarkston |
Glasgow |
G76 7HU |
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McFarlane Trust Ltd. |
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Statement of Financial Activities |
for the Year Ended 31 March 2022 |
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31/3/22 | 31/3/21 |
Unrestricted | Restricted | Total | Total |
funds | fund | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
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Charitable activities |
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Investment income | 3 |
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Total |
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EXPENDITURE ON |
Charitable activities | 5 |
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NET INCOME |
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RECONCILIATION OF FUNDS |
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Total funds brought forward |
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TOTAL FUNDS CARRIED FORWARD |
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981,391 |
McFarlane Trust Ltd. (Registered number: SC115949) |
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Statement of Financial Position |
31 March 2022 |
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31/3/22 | 31/3/21 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
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CURRENT ASSETS |
Debtors | 13 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 14 | ( |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 15 | ( |
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NET ASSETS |
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FUNDS | 19 |
Unrestricted funds |
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963,391 |
Restricted funds |
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18,000 |
TOTAL FUNDS |
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981,391 |
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These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
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The financial statements were approved by the Board of Trustees and authorised for issue on
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McFarlane Trust Ltd. |
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Statement of Cash Flows |
for the Year Ended 31 March 2022 |
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31/3/22 | 31/3/21 |
Notes | £ | £ |
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Cash flows from operating activities |
Cash generated from operations | 1 | 260,232 | 267,945 |
Interest paid | (13,525 | ) | (14,812 | ) |
Net cash provided by operating activities | 246,707 | 253,133 |
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Cash flows from investing activities |
Interest received | - | 180 |
Net cash provided by investing activities | - | 180 |
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Cash flows from financing activities |
Loan repayments in year | (44,495 | ) | (43,207 | ) |
Net cash used in financing activities | (44,495 | ) | (43,207 | ) |
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Change in cash and cash equivalents in
the reporting period |
202,212 |
210,106 |
Cash and cash equivalents at the
beginning of the reporting period |
479,182 |
269,076 |
Cash and cash equivalents at the end of
the reporting period |
681,394 |
479,182 |
McFarlane Trust Ltd. |
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Notes to the Statement of Cash Flows |
for the Year Ended 31 March 2022 |
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1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES |
31/3/22 | 31/3/21 |
£ | £ |
Net income for the reporting period (as per the Statement of Financial
Activities) |
314,378 |
214,149 |
Adjustments for: |
Depreciation charges | 24,599 | 24,927 |
Interest received | - | (180 | ) |
Interest paid | 13,525 | 14,812 |
(Increase)/decrease in debtors | (125,945 | ) | 26,968 |
Increase/(decrease) in creditors | 33,675 | (12,731 | ) |
Net cash provided by operations | 260,232 | 267,945 |
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2. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1.4.21 | Cash flow | At 31.3.22 |
£ | £ | £ |
Net cash |
Cash at bank | 479,182 | 202,212 | 681,394 |
479,182 | 202,212 | 681,394 |
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Debt |
Debts falling due within 1 year | (42,000 | ) | - | (42,000 | ) |
Debts falling due after 1 year | (347,872 | ) | 44,495 | (303,377 | ) |
(389,872 | ) | 44,495 | (345,377 | ) |
Total | 89,310 | 246,707 | 336,017 |
McFarlane Trust Ltd. |
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Notes to the Financial Statements |
for the Year Ended 31 March 2022 |
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1. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
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The charity meets the definition of a public benefit entity under FRS102. The charity has availed itself of paragraph 3 (3) of Schedule 4 of the Companies Act 2016 and adapted the Companies Act formats to reflect the special nature of the charity's activities. |
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Going concern |
The trustees continue to be satisfied that the charitable company has adequate resources to continue in operation for the next 12 months. Consequently, the trustees consider it appropriate to prepare the financial statements on a going concern basis. |
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Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
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The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements include estimation of any impairment of the property values currently included in the financial statements including the estimation of their useful life and future economic benefits. |
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Income |
All income, except for capital grants, is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. The charity's main source of income is from the provision of residential care in the community for adults with profound complex learning disabilities. |
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Income from government and other grants, whether 'capital' or 'revenue' grants is also recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. |
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No capital grants have been received in this or the previous year period. Capital grants receivable now require to be credited to income in capital funds when receivable and released to unrestricted general funds in line with the depreciation charges for the assets acquired. |
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Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. |
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- Support costs comprises of overhead costs to support the charity. finance costs and accountancy and auditors remuneration. |
|
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
1. | ACCOUNTING POLICIES - continued |
|
Expenditure |
- Direct costs of charitable activities costs comprise of costs incurred by the charity in the delivery of its day to day activities and services. |
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- Other costs relate to one off expenditure. |
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Allocation and apportionment of costs |
Costs are allocated in relation to the different activities undertaken. Costs are apportioned in relation to the level of staff time and areas used for the different activities. |
|
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
|
Freehold property | - 2% on cost |
Fixtures and fittings | - 15% on reducing balance |
Motor vehicles | - 25% on reducing balance |
|
|
Impairment of other tangible fixed assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately. |
|
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately. |
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Taxation |
The charity is exempt from corporation tax on its charitable activities. |
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Fund accounting |
Unrestricted funds comprise donations and other incoming resources received or generated for charitable purposes. They are available for use at the discretion of the directors in furtherance of the company's general charitable objectives. |
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Designated funds comprise of unrestricted funds that have been set aside by the trustees for a particular purpose. |
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Restricted funds are created when donations and other incoming resources are made either for a particular house or purpose, the use of which is restricted to that house or purpose. Expenditure is charged to the Statement of Financial Activities when incurred. |
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Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
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Pension costs and other post-retirement benefits |
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
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Financial instruments |
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. |
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Debtors |
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
1. | ACCOUNTING POLICIES - continued |
|
Financial instruments |
Trade and other debtors are recognised at the settlement amount due less impairment losses for bad and doubtful debts. |
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Cash at bank and in hand |
Cash at bank and cash in hand includes cash for the various homes run by the charity. There is an overdraft facility in place if needed. |
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Creditors |
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due. |
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2. | DONATIONS AND LEGACIES |
31/3/22 | 31/3/21 |
£ | £ |
Donations |
|
|
Legacies |
|
|
Grants |
|
|
|
|
|
Grants received, included in the above, are as follows: |
|
31/3/22 | 31/3/21 |
£ | £ |
Scottish Social Services Council (restricted) | 18,000 | 18,000 |
Council grants re COVID | 53,173 | 24,857 |
71,173 | 42,857 |
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3. | INVESTMENT INCOME |
31/3/22 | 31/3/21 |
£ | £ |
Deposit account interest |
|
|
|
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
4. | INCOME FROM CHARITABLE ACTIVITIES |
31/3/22 | 31/3/21 |
Activity | £ | £ |
Local Authority grants | Charitable activity | 2,109,229 | 1,985,860 |
Housing benefits | Charitable activity | 473,231 | 445,191 |
Other income | Charitable activity | 16,972 | - |
|
|
|
5. | CHARITABLE ACTIVITIES COSTS |
Direct | Support |
Costs (see | costs (see |
note 6) | note 7) | Totals |
£ | £ | £ |
Charitable activity | 2,332,951 | 44,522 | 2,377,473 |
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6. | DIRECT COSTS OF CHARITABLE ACTIVITIES |
|
Direct costs comprise of: | £ |
|
Salary and pension costs | 2,084,934 |
Property & overhead costs | 244,511 |
Registration costs | 3,506 |
2,332,951 |
|
|
7. | SUPPORT COSTS |
|
Support costs comprise of: | £ |
|
Overhead costs to support the charity | 24,599 |
Finance costs | 14,523 |
Accountancy costs and auditors remuneration | 5,400 |
44,522 |
|
|
8. | NET INCOME/(EXPENDITURE) |
|
Net income/(expenditure) is stated after charging/(crediting): |
|
31/3/22 | 31/3/21 |
£ | £ |
Auditors' remuneration | 5,400 | 6,600 |
Depreciation - owned assets |
|
|
|
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
9. | TRUSTEES' REMUNERATION AND BENEFITS |
|
There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021. |
|
|
No trustees received remuneration during the year. |
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Trustees' expenses |
|
No trustees received expenses during the year. |
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10. | STAFF COSTS |
31/3/22 | 31/3/21 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
2,084,934 | 2,050,101 |
|
Key management personnel |
|
During the year, two (2021: three) employees provided key management personnel roles within the charity. The benefits received were as follows: |
|
31/3/22 | 31/3/21 |
£ | £ |
Key managements' salaries | 109,487 | 156,157 |
Key managements' social security | 12,539 | 17,913 |
Key managements' pensions paid | 10,872 | 15,397 |
132,898 | 189,467 |
|
The average monthly number of employees during the year was as follows: |
|
31/3/22 | 31/3/21 |
Administration | 3 | 3 |
Care staff | 99 | 95 |
|
|
|
|
|
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
11. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
funds | fund | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
|
|
|
|
Charitable activities |
|
|
|
|
|
Investment income |
|
|
|
Total |
|
|
|
|
EXPENDITURE ON |
Charitable activities |
|
|
|
|
NET INCOME |
|
|
|
|
|
RECONCILIATION OF FUNDS |
|
Total funds brought forward | 767,242 | - |
|
|
TOTAL FUNDS CARRIED FORWARD | 963,391 | 18,000 | 981,391 |
|
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2021 and 31 March 2022 |
|
|
|
|
DEPRECIATION |
At 1 April 2021 |
|
|
|
|
Charge for year |
|
|
|
|
At 31 March 2022 |
|
|
|
|
NET BOOK VALUE |
At 31 March 2022 |
|
|
|
|
At 31 March 2021 |
|
|
|
|
|
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/3/22 | 31/3/21 |
£ | £ |
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/3/22 | 31/3/21 |
£ | £ |
Bank loans and overdrafts (see note 16) |
|
|
Accrued expenses |
|
|
|
|
|
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31/3/22 | 31/3/21 |
£ | £ |
Bank loans (see note 16) |
|
|
|
16. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
31/3/22 | 31/3/21 |
£ | £ |
Amounts falling due within one year on demand: |
Bank loans |
|
|
Amounts falling between one and two years: |
Bank loans - 1-2 years |
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments: |
Bank loans more 5 yr by instal | 135,377 | 179,872 |
|
17. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
31/3/22 | 31/3/21 |
£ | £ |
Bank loans |
|
|
|
The charity's bankers, Allied Irish Bank (now Allica), have standard security over the properties of the charity, together with a bond and floating charge. |
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
18. | ANALYSIS OF NET ASSETS BETWEEN FUNDS |
31/3/22 | 31/3/21 |
Unrestricted | Restricted | Total | Total |
funds | fund | funds | funds |
£ | £ | £ | £ |
Fixed assets | 854,982 | - | 854,982 | 879,581 |
Current assets |
|
|
|
|
Current liabilities | ( |
) |
|
( |
) | ( |
) |
Long term liabilities | (303,377 | ) | - | (303,377 | ) | (347,872 | ) |
1,264,209 | 31,560 | 1,295,769 | 981,391 |
|
19. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1.4.21 | in funds | funds | 31.3.22 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 838,031 | 300,818 | (35,858 | ) | 1,102,991 |
Designated - House funds | 108,405 | - | 35,198 | 143,603 |
Designated - Home Donations funds | 16,955 | - | 660 | 17,615 |
|
300,818 |
|
|
Restricted funds |
Restricted grants | 18,000 | 13,560 | - | 31,560 |
|
TOTAL FUNDS |
|
314,378 |
|
1,295,769 |
|
Net movement in funds, included in the above are as follows: |
|
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 2,673,851 | (2,373,033 | ) | 300,818 |
|
Restricted funds |
Restricted grants | 18,000 | (4,440 | ) | 13,560 |
|
TOTAL FUNDS |
|
( |
) | 314,378 |
|
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
19. | MOVEMENT IN FUNDS - continued |
|
Comparatives for movement in funds |
|
Net | Transfers |
movement | between | At |
At 1.4.20 | in funds | funds | 31.3.21 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 694,850 | 196,148 | (52,967 | ) | 838,031 |
Designated - House funds | 57,854 | - | 50,551 | 108,405 |
Designated - Home Donations funds | 14,538 | 1 | 2,416 | 16,955 |
767,242 | 196,149 | - | 963,391 |
Restricted funds |
Restricted grants | - | 18,000 | - | 18,000 |
|
TOTAL FUNDS | 767,242 | 214,149 | - | 981,391 |
|
Comparative net movement in funds, included in the above are as follows: |
|
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 2,476,999 | (2,280,851 | ) | 196,148 |
Designated - Home Donations funds | 1 | - | 1 |
2,477,000 | (2,280,851 | ) | 196,149 |
Restricted funds |
Restricted grants | 18,000 | - | 18,000 |
|
TOTAL FUNDS | 2,495,000 | (2,280,851 | ) | 214,149 |
|
Name of fund | Description, nature and purpose of fund |
|
Unrestricted funds |
General funds | All other reserves held by the charity. |
Designated - House funds | Funds for the operation and maintenance of the houses |
Designated - Home Donation
fund |
Funds received from donations to be spent on the individual homes. |
|
Restricted funds |
Restricted grants | Funds for providing SVQ training to staff. |
|
|
McFarlane Trust Ltd. |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
|
20. | RELATED PARTY DISCLOSURES |
|
|
|
21. | POST BALANCE SHEET EVENTS |
|
In May 2022, the charity sold a property, a top floor flat with two bedrooms, for £100,000. This was replaced by a four bedroom bungalow which was purchased in September 2022 for £285,000. Funds have been made available for the suitable adaptation and refurbishment of this property during the year ahead. |
|
Post year end, work has been started on a kitchen extension project at another property. The project is costing in the region of £50,000 and is expected to be completed before the end of 2022. |
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22. | SHARE CAPITAL |
|
The company is limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £50. |