REGISTERED COMPANY NUMBER: 02609389 (England and Wales) REGISTERED CHARITY NUMBER: 1006024
Report of the Trustees and
Audited Financial Statements for the Year Ended 31 March 2021
for
Delphside Limited
Delphside Limited
Contents of the Financial Statements for the Year Ended 31 March 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 6 |
| Report of the Independent Auditors | 7 | to | 10 |
| Statement of Financial Activities | 11 | ||
| Balance Sheet | 12 | ||
| Cash Flow Statement | 13 | ||
| Notes to the Cash Flow Statement | 14 | ||
| Notes to the Financial Statements | 15 | to | 25 |
| Detailed Statement of Financial Activities | 26 | to | 27 |
Delphside Limited
Report of the Trustees for the Year Ended 31 March 2021
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 2021. 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).
OBJECTIVES AND ACTIVITIES
Objectives and aims
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 2020. 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 2015).
OBJECTIVES AND ACTIVITIES
Objectives and aims
This company objectives are to relieve mentally ill or infirm persons by the provision of accommodation and other assistance in order that they might be rehabilitated and resettled in the community at large. The company aims to achieve these objectives by tailored activities.
Strategies for achieving stated aims and objectives
To acquire suitable freehold or leasehold premises for the establishment of a home for the beneficiaries, To maintain, equip, improve carry on and administer such a home for the care of the beneficiaries, To employ staff to attend, train, and educate the beneficiaries (residents), and to accept help, assistance and services from such other persons as the company may deem capable of furthering the objects of the company,
To make all reasonable provisions for the payment of wages, salaries and pensions of employees of the company, To undertake any charitable trust that may lawfully be undertaken to further the objectives of the company,
To appoint Trustees to act in the interests of the company for the safety of any property given or held upon trust for charitable purposes.
Criteria or measures used to assess success in the reporting period
Review the records of the care provided to the residents both in relation to personal records and also in relation to the maintenance and equipment of the home.
Determine the records of the numbers of staff employed together with their responsibilities and make reference in the individual care records of the residents to demonstrate the achievement of the company objectives. Maintain payroll records and details of job descriptions and contracts of employment issued to the staff.
Access the regular information bulletins issued by the Charity Commission and check that company procedures follow any advice issued.
Ensure that the number of Trustees during the review period never falls below 3.
Significant activities undertaken and how they contribute to the achievement of the charity's aims and objectives
Close attention to the Care Quality Commission (CQC) essential standards for nursing and care homes. This ensures the continuance of the home.
Holding regular discussions with approved social workers (ASW) concerning the needs of the residents. This ensures the home is fit for purpose.
Listening to the residents and their families to ensure they are happy with the care provided. This ensures good feedback to the staff providing care for the residents, enhanced by formal feedback requests.
Discussions with the local authority/health representatives (commissioners) over the levels of financial support they will make for the residents within the home. Understanding of the finances helps the continuance of the home. Maintaining good relationships with hospital and GP doctors when residents require medical attention. Resident's confidence in their care is thus maintained, and the home objective of help to residents achieved.
Secure and ensure Grant monies available for the control of Infection are utilised and allocated as per set criteria and that these are for the express use in providing a safe environment and supporting the wellbeing of residents and staff at the service.
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Delphside Limited
Report of the Trustees for the Year Ended 31 March 2021
ACHIEVEMENT AND PERFORMANCE
Review of activities and performance
Delphside Ltd (operating as Avondale Mental Healthcare Centre) continues to provide care and accommodation for persons with longer term mental health problems. Delphside Limited works closely with Clinical Commissioning Groups (CCG's) and local authorities (MBC) to identify individuals who would benefit from a period of residence at the home. Where possible the objective is to subsequently re-integrate such persons back into their local community.
Delphside Limited Registered with C.Q.C. under the Health and Social Care Act 2008 (Regulated Activity) Regulations 2010. Delphside Limited continued to provide activities and services for persons identified as suitable for placement at Avondale during 2020/21. Central to that activity is the provision of accommodation for persons who require nursing or personal care, the treatment of disease, disorder or injury.
That service was delivered in accordance with the essential standards demanded by C.Q.C. and was overseen by Miss Paula Jones as the Registered Manager and Mr William Devling as Nominated Individual.
During the review period the company was registered with the CQC for the provision of 54 places within the home. Places are filled as a result of requests ASW make upon the home manager to assess the suitability of people for placement. Should the assessment indicate a likely positive outcome, a place is offered. The costs of the placement are determined by the assistance likely to be needed.
Fee rates in relation to the main commissioning authority's funding were unaltered, following the previous year's negotiations and the service continued to provide suitable care and services to its charges. Ongoing redecoration and maintenance of the service continued although this was hindered in relation to timescales due to Covid -19 pandemic effects.
The service continued to hold the highest rating of Outstanding following CQC inspection in December 2019, which sets the service apart from all others locally and regionally as being the first nursing home and only service in Knowsley in Mental Health care to achieve this. This places the service in a favourable position re future endeavours.
HR matters that had previously been made note of in 2019/20 accounts were resolved.
The Covid-19 Pandemic did impact on the way in which processes were applied at the service with changes to working routines and difficulties surrounding accessing support from external professionals, recruitment and the stressors placed on staffing to manage changed routines, safety measures etc. Emergency contingency planning and business continuity planning helped minimise impact on service delivery and the finances of the service were supported by Adult Social Care Infection Control grant monies. Although the service was impacted on negatively initially, overall the service in the financial year 2020/21, with robust management and support from government and LA grants, did have a strong year and was able to finish in a positive financial position.
FINANCIAL REVIEW
Principal funding sources
The charity's principal funding comes from the following: Halton and St Helens Clinical Commissioning Group Knowsley Clinical Commissioning Group St Helens MBC Knowsley MBC Warrington MBC Liverpool MBC Hertfordshire MBC
Investment policy and objectives
Delphside has the power under its Memorandum and Articles to make any investment that its Council of Management sees fit. Funds are invested in cash based deposits to produce reasonable income and/or capital gain over time.
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Delphside Limited
Report of the Trustees for the Year Ended 31 March 2021
FINANCIAL REVIEW
Reserves policy
The Council of Management maintains a reserve fund. Historically the level has been between two and four months' expenditure costs for Avondale Mental Healthcare Centre. The Council have found a reserve to be necessary to cover the effects of fluctuating levels of occupancy rates and necessary expenditure as the building ages. This is to be reviewed with a view to uplift to a reserve that will cover six month period due to changes brought about by Pandemic, National living wage and NI, which are likely to be ongoing.
The freely available reserves of the Charity increased by £79,805 and totalled £464,787 (2020 - £384,982) as detailed in note 20.
FUTURE PLANS
Trustees take heed of the Charity Commission advice on the prevention of fraud by employees. Fidelity guarantee insurance is in place, as are internal checks and controls.
Trustees look towards how Government funding policies impact on local authorities and NHS Trusts. This leads to constant economies being made by both the charitable and private sectors as monies for placements in care homes is reduced. Trustees have seen a change in the needs of individuals being put forward for assessment. At the same time standard facilities within homes are increasing.
CQC and commissioners have amended visiting and inspecting processes in light of the Pandemic and the service has been proactive in seeking to ensure it is aware of those changes and the requirements it places on services in particular in relation to meeting the criteria for Safe and Well Led. This meaning any expectations being asked of the service in relation to standards in that area will be met by the service, whilst other care homes unable to meet the new requirements will fail. As a service Avondale has looked consistently at meeting all standards and exceed these when possible even during the Pandemic, to ensure the service is seen as a "go to" service for the provision of mental health care in the community setting. The award of Outstanding rating from CQC evidences the services work in maintaining and exceeding those standards, which along with ongoing referrals for complex mental health placements at the service evidence the service holds a strong position as a Provider of mental health nursing care.
Links with Commissioners and in particular Commissioners in the Knowsley area who have been the responsible Commissioning body for the service throughout the Pandemic remain good and to some extent have improved further. The service remains fixed of its position that clarity on service terms regarding fees, contractual obligations and the rights of the service to set those at reasonable rates is a must. That being necessary to allow suitable service provision, whilst maintaining financial viability and help secure future service market position.
The Pandemic led to works undertaken jointly with the LA and also CCG in the form of the Enhanced Help for Care Homes for example which has consolidated the services reputation in relation to provision of quality care in the area of mental health nursing, which it is hoped will impacting positively on future income and ongoing joint working potential and that continues. In addition as a result of that, the service has participated in trials for bulk prescribing and student placements to allow better industry wide support for care and nursing homes. These will continue as necessary and will further enhance the services profile with commissioners and referring professionals.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
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Delphside Limited
Report of the Trustees for the Year Ended 31 March 2021
Organisational structure
In accordance with the Memorandum and Articles of Association, the Council of Management governs the Charity. The Council meets at least bi-monthly to consider reports from the officers of the charitable company. Agenda and supporting documentation are sent to the Council at least 7 days prior to the meeting.
Charitable status
The company was appointed and registered as a charity by the Charity Commissioners for all purposes on 15th November 1991 (Certificate No. 1006024).
Constitution
The charitable company is governed by its Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee as defined by the Companies Act 2006.
The company has no share capital, being a company limited by guarantee under clause 6 of its Memorandum of Association, with each member agreeing to contribute £1 in the event of it being wound up. The number of members registered at 31 March 2021 was 8.
Council of management
The company may at any time appoint a member of the Council of Management; there is no maximum limit on the number of members but there should be a minimum of three. At the Annual General Meeting one third of the members are eligible for re-election. The following served as members of the company during the year:
Victor Welsh Paul Harrison William Devling Christopher McNamara John Ashcroft Janet Albion Lynette Barlow Barnaby Finlayson
Induction and training of new trustees
New Trustees are inducted and appointed following due diligence in relation to Fit and Proper Persons requirements as per HMRC, Charity Commission and CQC guidance.
In order to ensure good financial governance of the Charity, annually the Trustees require the General Manager to produce a financial plan for the coming 12 months. This plan contains a budget of revenue expenditure and income. Also the General Manager produces a requirement for capital expenditure. This is considered alongside the existing cash position. The financial plan is the principle document that the Trustees rely upon during the year. They receive monthly management accounts on an income and expenditure basis, and also a monthly cash analysis.
Trustees task the General Manager to produce a business plan. This is a document that is extensively reviewed by the Trustees every two years. Between these dates it is updated by the General Manager. It covers the risks within the insurance policy for loss of income following extensive physical damage to the home. It also explains what contingency provision is made to safeguard the existing beneficiaries should the home cease to operate due to a failure of any of the operational systems due to any cause.
Business continuity plan for the service is also produced and updated annually or when influencing factors, such as Covid direct changes.
Regulatory risk is managed by the home meeting essential care standards as required by the Care Quality Commission (CQC).
Arrangements for setting the pay and remuneration of key management personnel
Trustees have established a Remuneration Committee. This is guided by the Chair. The Committee meets annually and considers salaries for key managers against what is known in the local area. Additionally, there is a performance related pay scheme (PRP) in operation. Trustees determine the total amount to be distributed. Distribution is against set objectives. All employees are eligible to be considered against the set criteria for the award of PRP.
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Delphside Limited
Report of the Trustees for the Year Ended 31 March 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT Patients' money
At 31 March 2021, the company held funds amounting to £25,991.65 (2020: £8,940.43) on behalf of the patients of Avondale Mental Healthcare Centre.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
02609389 (England and Wales)
Registered Charity number
1006024
Registered office
Avondale Mental Healthcare Centre 11 Sandstone Drive Prescot Merseyside L35 7LS
Trustees
Mrs M J Albion Business Executive Dr J R Ashcroft Consultant Psychiatrist Mrs L Barlow Chartered Accountant W H Devling Retired Dr B J Finlayson Doctor P Harrison Contracts Officer C A Mcnamara Senior Manager-Procurement V B Welsh Solicitor
Senior Management Team
Ms Paula Jones - Registered Manager Ms Dina Newland - Clinical Manager Ms Julie Dunne - Finance Manager
Company Secretary
Mrs P Jones
Auditors
Styles & Co JFC Limited Heather House 473 Warrington Road Culcheth Warrington WA3 5QU
Bankers
Bank of Scotland Community Banking St Andrews Square Edinburgh Midlothian EH2 2YR
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Delphside 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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Delpbsid¢ Limited Reportof the Try$te¢s rorthc Y¢#r Elided 31 March 2021 STATtI MENI. OF'fRUSTEES' RESPONSIBILITIES- ¢ontlDue CoEnpany law reqtsires tlle ttU5tees to prepare financial statemetts for each fillanci&l yeaT whicl) givc a truc and fair vitrN orthe ststs of affairs of the cheritable conipany Rnd uf th¢ itLconJin¥ rE%ourcts and applioatton of resoiwces, including the iDco¥oe Expenditure, of the chHTttsbl¢ ¢wnpaoy for that p10d. In pKepxFitt8 diose fuRe1a1 staieJT)ets, the tnLStees arerequircd to seleetbuitsble accounting policies then Jpply cO$1sttI, observe Ibe methods and piiuctples in tke aiarity SQRP,. tTJakeiudgeffl¢nts eslitnatcs that aTe reasonable and pwd¢nt' prcpare the Sn8nu#l statemcnts on going eoiwem basis iULless it is io#ppropriate to presvffte thxt the clwitable ¢ompaDy wiu eolllinue inbusirte&8. Th¢ trustee& are respbllsibl¢ for keepill8 proper acCoting xetords Trtii¢h disclose with re4s0]Mble ard¢Y at any the finaThcia] positiofi ofthe cbatitable compauy gnd to ¢n&ble thetn to ensure thal the finaltcittl stsienmlts comply wilh the Co]npanies A¢r 2006. They are algo responsible for safe¥u3Tdillg th¢ assets ofthe charitable (x>mpaoy and hence for taktllg ThsoDablt StCPs for the pretiO]I and d¢t¢¢tion of fraud #lld other itre8vl8n-(Èes. In so far as the twsiees 8fe 3waro: Ihere is no relevant audit in(omlI0nOr ivbiLh the Lh8ritsble company's audstots uiiawgre: And the tntreS have tsken 8115teps that they ou¥lit to have takcn to m&k¢ Ihemselves aWSTe of ally Trlevant audit infomjationattd totabiishth#tthe audifors are awAre Df that infollnation. AUDITORS The audito, StyIE5 & Co JFC Limiknl, wtril kn prnw5ed for re-appointment at th¢ forthcoffjing Amiual General Meethug. Approved by ordu of the board Ortnte$ on......... JAlbi¢)n- Twsiee Page
Report of the Independent Auditors to the Members of Delphside Limited
Opinion
We have audited the financial statements of Delphside Limited (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 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
-
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 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.
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.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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.
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 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.
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.
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Report of the Independent Auditors to the Members of Delphside Limited
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.
We have nothing to report in respect of the following matters where 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 trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
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.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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.
Page 8
Report of the Independent Auditors to the Members of Delphside Limited
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - We enquired of management and those charged with governance, which included obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to: - Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud; - The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. - We inspected the minutes of meetings of those charged with governance. - We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience. - We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. - We reviewed any reports made to regulators. - We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. - We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. - In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud often involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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Report of the Independent Auditors to the ]¥lembers of Delphside Limited Use of our report This Teport is made 501ely to the charitable company's meTnbets, a5 a body, iii accoidance witli Chapter 3 of Part 16 of the Companie% Act 2006. Our audit Iork ha% been iindertaken so that we lt state to the charitable Company, members those matters we are required to slate to them in an auditors, report and flir no other purpose. To the fullest ext t pennitt by law, we do not accept OT assume iespunsibility to anyone otliei thali the charitable coinpany and the cha bl¢ ¢0 any's m¢mb¢ as a body, for ollr audit work, for this r¢port, or for tlic opinions wc hav¢ formcd. tu for and on bchalf of Styl Heather House 473 Wal¥t0 Road Culcheth Warrington WA3 SQU J Auditor} & Ci) JFC Limitcd Date.. Page 10
Delphside Limited
Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 March 2021
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Charitable activities 4 Relief of suffering Investment income 3 Other income Total EXPENDITURE ON Charitable activities 5 Relief of suffering NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 9,848 1,978,940 55 8 1,988,851 1,906,157 82,694 742,662 825,356 |
Restricted funds £ - 147,082 - - 147,082 147,082 - - - |
31.3.21 Total funds £ 9,848 2,126,022 55 8 2,135,933 2,053,239 82,694 742,662 825,356 |
31.3.20 Total funds £ 669 2,016,528 105 - 2,017,302 2,083,628 (66,326) 808,988 742,662 |
|---|---|---|---|---|
The notes form part of these financial statements
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Dtlplk$lde Limited B•laEEe Sheei 31 Marth 2021 31.3.21 Totsl fias. 31.3.20 Unrestii¢wl Resitided funds funds Notes FIXED ASSETS Tangible assets 12 360,569 I,IOD,Ot>D 1,460,569 1,457,180 CURRENT ASSET8 Debtors Ch atbauk aail ill lJaThd 13 121,013 484,652 121,013 484,652 111,788 390,706 605,665 605,665 5U2,494 CREI DITORS Amowts tsljing duewithin one y 14 1140,878) {540.878) 1117512) NET CURRENT A55ETS 464,787 464,787 334,912 TOTAL ASSETS LESS CUIIRENT 825Ji6 I.10D.o 1,925JS5 1,842.062 CREDoRs falliTW thTe after MOthan oneyear 15 {I,AOO,000) {I,100.fMKI) 11.100,OOt>) NET AssErs 825,>56 742,662 FIJNDS Unreslricted fu 17 825,356 742,662 TOTAL FUNDS 825J56 742,662 The$¢ fi]ja131 5tstements bave been prepared ac¢thObnGr with th¢ p[QViSiO$ pliCable to ch8rit8bl¢ companies subject to t 5maJ] companies r¢girN¢ The cial StateMts wcre apwved by the Board of TnreeS and lliiihorised for issve ¥*kn..dW _h.. 3nd were signed on its behalf by.. on M J Albion- TnT5tee The noles fonn partofthe8e fJBancial Statements Page 12
Delphside Limited
Cash Flow Statement for the Year Ended 31 March 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Interest received Net cash used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
31.3.21 £ 126,822 (514) 126,308 (32,417) 55 (32,362) 93,946 390,706 484,652 |
31.3.20 £ 94,608 (363) 94,245 (7,145) 105 (7,040) 87,205 303,501 390,706 |
|---|---|---|
The notes form part of these financial statements
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Delphside Limited
Notes to the Cash Flow Statement for the Year Ended 31 March 2021
1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Interest received Interest paid (Increase)/decrease in debtors Increase in creditors Net cash provided by operations |
31.3.21 £ 82,694 29,528 (55) 514 (9,225) 23,366 126,822 |
31.3.20 £ (66,326) 33,885 (105) 363 69,284 57,507 94,608 |
|---|---|---|
2. ANALYSIS OF CHANGES IN NET FUNDS
| At 1.4.20 | Cash flow | At 31.3.21 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 390,706 | 93,946 | 484,652 |
| 390,706 | 93,946 | 484,652 | |
| Total | 390,706 | 93,946 | 484,652 |
The notes form part of these financial statements
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Delphside Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
1. ACCOUNTING POLICIES
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.
Delpshide Limited is a registered charity in England. In the event of the charity being wound up, the liability in respect of guarantee is limited to £1 per member of the charity. The address of the registered office is given in the report to the trustees on page 6.The nature of the charity's operations and principal activities is to relieve mentally ill or infirm persons by the provision of accommodation and other assistance in order that they might be rehabilitated and resettled in the community at large.
Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank.
Income from charitable activities, income is recognised when the charity has entitlement to the funds.
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 cost 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.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
| Freehold property | - in accordance with the property |
|---|---|
| Fixtures and fittings | - 15% on cost |
| Motor vehicles | - 25% on reducing balance |
| Computer equipment | - 33% on cost |
Items of equipment are capitalised where the purchase price exceeds £500. Fixed assets are measured at cost less accumulated depreciation.
Taxation
As a registered charity the company is not liable to corporation tax on its income and therefore no liability arose on ordinary activities for the years ended 31 March 2020 and 31 March 2019.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 15
continued...
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
1. ACCOUNTING POLICIES - continued
Leasing commitments
Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities on a straight line basis over the minimum lease term.
Gifts
The buildings from which the company operates were initially furnished by St Helens & Knowsley Health Authority. All gifts in kind are not shown in the financial statements due to the difficulty in quantifying them.
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Financial instruments
The Charity 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. The Charity has taken advantage of reduced disclosure exemptions permitted by FRS102.
Allocation of support costs
Support costs, comprising the staff and overhead costs of the charity, are apportioned to the charity based on the time spent by employees. Those costs that are actual costs rather than apportioned costs have been included within the summary in note 12.
Judgements and key assumptions
Estimates and judgements are continually evaluated and are based on historical evidence and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Charity makes estimates and assumptions concerning the future.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
Going concern
The trustees consider that there are no material uncertainties about the charitable company's ability to continue as going concern in the foreseeable future.
2. DONATIONS AND LEGACIES
| 31.3.21 | 31.3.20 | |
|---|---|---|
| £ | £ | |
| Donations | 9,848 | 669 |
Page 16
continued...
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
| 3. INVESTMENT INCOME Deposit account interest 4. INCOME FROM CHARITABLE ACTIVITIES Activity Relief of suffering Department of Social Security Relief of suffering St Helens MBC Relief of suffering Knowsley MBC Relief of suffering Clinical Commissioning Groups Relief of suffering Warrington CC Relief of suffering Hertfordshire trust Relief of suffering Liverpool CC |
31.3.21 £ 55 31.3.21 £ 33,027 865,871 894,384 183,125 62,400 47,934 39,281 2,126,022 |
31.3.20 £ 105 31.3.20 £ 33,807 743,075 722,321 380,846 81,380 34,220 20,879 |
|---|---|---|
| 2,016,528 |
Income from charitable activities was £2,126,022 (2020 - £2,016,528) of which £147,082 (2020 - £nil) was attributable to restricted and £1,978,940 (2020 - £2,016,528) was attributable to unrestricted funds.
5. CHARITABLE ACTIVITIES COSTS
Relief of suffering
Direct Costs (see note 6) £ 2,053,239
£147,082 (2020 - £nil) of the above costs were attributable to restricted fund and £1,906,157 (2020 - £2,083,628) were attributable to unrestricted funds.
continued...
Page 17
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
6. DIRECT COSTS OF CHARITABLE ACTIVITIES
7.
| Staff costs Hire of plant and machinery Rates and water Insurance Light and heat Telephone Printing, stationery & postage Recruitment Sundry expenses Catering provisions Catering consumables and equip Housekeeping and laundry Computer and software costs Nursing consumables Repairs and renewals Redecoration Gardening Residents' welfare Waste disposal Motor and travel costs Uniforms Staff training and rehabilitat Legal and professional fees Bad debts Management fees Auditors' remuneration HR costs Depreciation Interest payable and similar charges NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): Depreciation - owned assets Hire of plant and machinery |
31.3.21 £ 1,529,818 26,282 16,282 23,184 56,187 6,786 11,153 2,838 2,282 100,733 4,022 40,096 43,572 8,252 52,635 - 5,335 19,787 21,892 2,941 7,420 2,356 17,739 6,515 4,800 10,290 - 29,528 514 2,053,239 31.3.21 £ 29,528 26,282 |
31.3.20 £ 1,504,737 17,598 14,054 21,434 56,103 6,854 13,750 2,704 4,629 97,197 7,279 34,616 39,940 13,925 53,141 5,445 143 24,486 20,450 4,368 5,231 6,301 49,205 8,200 4,800 8,790 24,000 33,885 363 |
|---|---|---|
| 2,083,628 | ||
| 31.3.20 £ 33,885 17,598 |
continued...
Page 18
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
8. TRUSTEES' REMUNERATION AND BENEFITS
Trustees' expenses
During the year travelling expenses totalling £nil (2020: £nil) were reimbursed to trustees.
Expenses were reimbursed to nil (2020: nil) trustees during the year ended 31 March 2021.
9. STAFF COSTS
| STAFF COSTS | ||||
|---|---|---|---|---|
| Wages and salaries The average monthly number of employees during the year was as follows: Nursing and rehabilitation Domestic, laundry, porters and drivers Catering Management and administration Bank staff No employees received emoluments in excess of £60,000. |
31.3.21 £ 1,529,818 1,529,818 31.3.21 32 15 5 5 12 69 |
31.3.20 £ 1,504,737 1,504,737 31.3.20 35 15 5 5 - 60 |
||
| 31.03.21 | 31.03.20 | |||
| £ | £ | |||
| Salaries and wages | 1,391,104 | 1,354,901 | ||
| Social security costs | 100,178 | 103,391 | ||
| Pensions | 38,536 | 46,445 | ||
| 1,529,818 | 1,504,737 | |||
The trustees consider key management personnel to be comprised of the Trustees, Registered Manager, Finance Manager and the Clinical Manager.
The total amount of employee benefits, including salaries, received by key management personnel was £173,301 (2020: £169,175)
continued...
Page 19
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
| 10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Relief of suffering Investment income Total EXPENDITURE ON Charitable activities Relief of suffering NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD 11. SUPPORT COSTS Support costs incurred in the year in relation to charitable activities Staff costs Hire of equipment Rates and water Insurance Light and heat Telephone Printing, stationery and postage Sundry expenses Computer and software costs Repairs and renewals Redecoration Motor and travel Staff training Legal and professional Depreciation Interest payable Management fees Auditor's remuneration |
ACTIVITIES Unrestricted fund £ 669 2,016,528 105 2,017,302 2,083,628 (66,326) 808,988 742,662 were as follows: |
Restricted funds £ - - - - - - - - |
|---|---|---|
continued...
Page 20
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
11. SUPPORT COSTS - continued
126,277 113,734
| 12. TANGIBLE FIXED ASSETS Fixtures Freehold and Motor property fittings vehicles £ £ £ COST At 1 April 2020 1,696,617 250,665 22,750 Additions - 28,037 - Disposals - (3,642) - At 31 March 2021 1,696,617 275,060 22,750 DEPRECIATION At 1 April 2020 271,269 220,954 22,750 Charge for year 13,750 14,415 - Eliminated on disposal - (3,642) - At 31 March 2021 285,019 231,727 22,750 NET BOOK VALUE At 31 March 2021 1,411,598 43,333 - At 31 March 2020 1,425,348 29,711 - 13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income |
Computer equipment £ 19,812 4,380 - 24,192 17,191 1,363 - 18,554 5,638 2,621 31.3.21 £ 52,599 - 68,414 121,013 |
Totals £ 1,989,844 32,417 (3,642) 2,018,619 532,164 29,528 (3,642) 558,050 1,460,569 1,457,680 31.3.20 £ 42,100 506 69,182 111,788 |
|
|---|---|---|---|
continued...
Page 21
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Social security and other taxes Other creditors Accruals and deferred income |
31.3.21 £ 38,505 40,710 35,791 25,872 140,878 |
31.3.20 £ 18,807 22,519 16,339 59,847 |
|---|---|---|
| 117,512 |
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| CREDITORS: AMOUNTS FALLING DUE AFTER | MORE THAN ONE YEAR | |
|---|---|---|
| 31.3.21 | 31.3.20 | |
| £ | £ | |
| NHS Property Services loan | 1,100,000 | 1,100,000 |
The Nhs Property Services Limited loan (formerly Knowsley Primary Care Trust loan) is secured on the land and buildings at 11 Sandstone Drive, Prescot.
16. LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
| Within one year Between one and five years In more than five years MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund Restricted funds COVID 19 - Knowsley MBC TOTAL FUNDS |
At 1.4.20 £ 742,662 742,662 Incoming resources £ 1,988,851 147,082 2,135,933 |
31.3.21 £ 23,906 103,358 - 127,264 Net movement in funds £ 82,694 82,694 Resources expended £ (1,906,157 ) (147,082) (2,053,239 ) |
31.3.20 £ 23,906 79,291 24,067 127,264 At 31.3.21 £ 825,356 825,356 Movemen in funds £ 82,694 - |
31.3.20 £ 23,906 79,291 24,067 |
|---|---|---|---|---|
| 127,264 | ||||
| At 31.3.21 £ 825,356 |
||||
| 825,356 | ||||
| 82,694 |
17. MOVEMENT IN FUNDS
continued...
Page 22
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
17. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| At 1.4.19 £ Unrestricted funds General fund 808,988 TOTAL FUNDS 808,988 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 2,017,302 TOTAL FUNDS 2,017,302 |
Net movement in funds £ (66,326) (66,326) Resources expended £ (2,083,628 ) (2,083,628 ) |
At 31.3.20 £ 742,662 742,662 Movement in funds £ (66,326 |
At 31.3.20 £ 742,662 |
|---|---|---|---|
| 742,662 | |||
| (66,326 |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1.4.19 £ 808,988 808,988 |
Net movement in funds £ 16,368 16,368 |
At 31.3.21 £ 825,356 |
|---|---|---|---|
| 825,356 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds COVID 19 - Knowsley MBC TOTAL FUNDS |
Incoming resources £ 4,006,153 147,082 4,153,235 |
Resources expended £ (3,989,785 ) (147,082) (4,136,867 ) |
Movement in funds £ 16,368 - |
|---|---|---|---|
| 16,368 |
continued...
Page 23
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
18. RELATED PARTY DISCLOSURES
Victor Welsh is a trustee of the charity and is also a partner in the firm Victor Welsh, Solicitors and Notary Public. During the year this firm, invoiced the charity £16,844 (2020: £27,888) for legal services provided. At the year end a balance of £nil (2020: £7,006) was owing to this firm.
During the year William Devling, a trustee of the charity, invoiced the charity £4,800 (2020 - £4,800) for management services provided. At the year end a balance of £2,400 (2020: £nil) was owing to him.
19. PENSION COSTS
The pension costs charge represents the company's contributions payable to various deifined contribution schemes and amounted to £50,323 (2020: £,46,445). The amounts owing at 31 March 2021 in respect of these pension contributions were £9,067 (2020: £,7399).
20. ANALYSIS OF RESERVES
| 31.03.21 | 31.03.20 | |
|---|---|---|
| £ | £ | |
| Total reserves | 825,356 | 742,662 |
| Less: | ||
| Fixed assets unrealised | (1,460,569 ) | (1,457,680 ) |
| Add: | ||
| Long term liabilities | 1,100,000 | 1,100,000 |
| Freely available reserves | 464,787 | 384,982 |
21. RESTRICTED FUNDS
Following changes in legislation in prior years, St Helens & Knowsley Health Authority were required to dispose of Avondale Nursing Home.
During the year to 30 June 2002 it was agreed that Delphside Limited purchase the home from the Health Authority for £1,100,000. The purchase was funded by a 100% mortgage from St Helens & Knowsley Health Authority. Repayments of either capital or interest will not be required so long as the home is used for its current designated purpose.
This has been treated as a restricted fund, details of which are shown in the balance sheet on page 12.
The company was required to enter into a pre-emptive agreement with St Helens & Knowsley Health Authority to enable the Authority to re-purchase the home, for a sum equal to the purchase price paid by the company, in the event of any future disposal. It is on this basis that the directors have decided not to charge depreciation on freehold land and buildings.
The £1,100,000 mortgage, shown as a long term liability in note 15 above has not been discounted in the financial statements.
During the year the charity received grant monies of £147,082 from Knowsley MBC as financial support to cover specific additional costs arising as a result of the Covid-19 pandemic. All this grant money was expended during the year.
continued...
Page 24
Delphside Limited
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
22. CONTINGENT ASSET
The Charity does not intend to sell its freehold property in the foreseeable future, particularly as the Trustees have ambitious plans to expand the provision of its charitable activities which would involve keeping the property in question and incurring further capital investment in improving it.
The Charity purchased the property in April 1999 with the aid of a loan from Knowsley Primary Care Trust (formerly St Helens and Knowsley Health Authority) of £1,100,000 secured by a Legal Charge and the Primary Care Trust was granted a Right of Pre-Emption exercisable until April 2020 . Therefore, the Charity, if it so wishes, may now sell the property to a third party without the constraint of the Pre-emption Agreement.
The terms of the Legal Charge, however, remain valid and provide that on any sale of the property by the Charity the sale price has to be agreed with the Primary Care Trust and the sale price is payable to the Primary Care Trust less the amount of any reasonable sums which shall be proved to the Primary Care Trust's reasonable satisfaction to have been expended by the Charity out of its own funds in effecting structural additions or improvements to the property.
Therefore, in the event that the property is ever sold by the Charity, it stands to benefit by up to a maximum of the expenditure it has incurred in effecting any structural additions or improvements to the property up to the date of sale.
Any potential economic benefit to be derived by the Charity in the future depends entirely on the property being sold. Since nobody can determine if the property will ever be sold in the future nor the amount of any potential economic benefit to be derived, it has been treated as a contingent asset for the purpose of these financial statements and not included in the Charity's balance sheet.
Page 25
Delphside Limited
Detailed Statement of Financial Activities for the Year Ended 31 March 2021
| INCOME AND ENDOWMENTS Donations and legacies Donations Investment income Deposit account interest Charitable activities Department of Social Security St Helens MBC Knowsley MBC Clinical Commissioning Groups Warrington CC Hertfordshire trust Liverpool CC Other income Sundry Income Total incoming resources EXPENDITURE Charitable activities Wages Hire of plant and machinery Rates and water Insurance Light and heat Telephone Printing, stationery & postage Recruitment Sundry expenses Catering provisions Catering consumables and equip Housekeeping and laundry Computer and software costs Nursing consumables Repairs and renewals Redecoration Gardening Residents' welfare Waste disposal Motor and travel costs Uniforms Staff training and rehabilitat Carried forward |
31.3.21 £ 9,848 55 33,027 865,871 894,384 183,125 62,400 47,934 39,281 2,126,022 8 2,135,933 1,529,818 26,282 16,282 23,184 56,187 6,786 11,153 2,838 2,282 100,733 4,022 40,096 43,572 8,252 52,635 - 5,335 19,787 21,892 2,941 7,420 2,356 1,983,853 |
31.3.20 £ 669 105 33,807 743,075 722,321 380,846 81,380 34,220 20,879 |
|---|---|---|
| 2,016,528 - |
||
| 2,017,302 1,504,737 17,598 14,054 21,434 56,103 6,854 13,750 2,704 4,629 97,197 7,279 34,616 39,940 13,925 53,141 5,445 143 24,486 20,450 4,368 5,231 6,301 1,954,385 |
This page does not form part of the statutory financial statements
Page 26
Delphside Limited
Detailed Statement of Financial Activities for the Year Ended 31 March 2021
| Charitable activities Brought forward Legal and professional fees Bad debts Management fees Auditors' remuneration HR costs Depreciation of tangible fixed assets Bank interest Total resources expended Net income/(expenditure) |
31.3.21 £ 1,983,853 17,739 6,515 4,800 10,290 - 29,528 514 2,053,239 2,053,239 82,694 |
31.3.20 £ 1,954,385 49,205 8,200 4,800 8,790 24,000 33,885 363 2,083,628 2,083,628 (66,326) |
|---|---|---|
This page does not form part of the statutory financial statements
Page 27