COMPANY REGISTRATION NUMBER: 2659355 CHARITY REGISTRATION NUMBER: 1007270 MIT Since 1923 The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Financial Statements 31 March 2024 WALTER HUNTER & CO LIMITED Chartered accountants & statutory auditor 24 Bridge Street Newport South Wales NP20 4SF
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Financial Statements Year ended 31 March 2024 Page Trustees, annual report (incorporating the directorfs report) Independent auditor's report to the members Statement of financial activities (induding income and expenditure account) 14 19 Statement of financial position 20 Statement of cash flows 21 Notes to the financial statements 22
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (contlnued) Year ended 31 March 2024 The trustees, who are also the directors for the purposes of company law, present their report and the financial ststements of the charity for the year ended 31 March 2024. Reference and administrative details Registered Charty name The Merthyr Tydfil Institute for the Blind Charfty registration number 1007270 Company registration number 2659355 Principal office and reglstered Unit 4 Triangle Business Park office Pentrebach Merthyr Tydfil CF48 4TQ The trustees Mr G Meredith Mr A Bush Mr R Cooper Mrs L Mytton Mr A Gunter Mr J Ellis Mrs J Morgan (Chairman) (Passed away 2111112024) Company secretary R A Welfwt Prlncipal OfficerslKey Management Personnel Mr R A Welfoot Mrs P Kennedy Mrs M Davies Mr A Phillips Mr E Silbum Ms J Warwick Mr A Trythall Chief Executive Officer & Company Secretary Deputy Chief Executrve Officer Employment & Training Manager Manufacturing Manager Commercial Manager Operations Manager ICT Officer Audltor Walter Hunter & Co Limited Chartered accountants & statutory auditor 24 Bridge Street Newport South Wales NP20 4SF Bankers Lloyds Bank PLC 69 High Street Merthyr Tydfil CF47 8AD Solicitors Hugh Jarres 2 Central Squa Cardiff CF10 1FS Cartn Law Partners Creative Quarter Morgan Arcade Cardiff CF10 1AF
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) {eonflnued) Year ended 31 March 2024 Structure. governance and management Status The organisation is a charitsble company limited by guarantee, incorporated on 31 st October 1991 and registered as a charity in June 1923. The company was established under a Memorandum of Association, which sets out the objects and powers ofthe charitable company and is govemed under itsArtides of Association. Underthose Articles, the members of the Management Committee are elected annually at the AGM. Governance of the Charity Matters of Finance, Business Development and Business Operations are reported at regular full board meetings. Day to day management is the responsibility of the Chief Executive Officer, who reports directly to the Trustees and is in regular contact with the Chairman to discuss any issues that arise, where it may require a Board meeting to be convened. Rocrultment and appointment of Trustees Periodically the board will decide whether new Trustees need to be recruited to bring knowledge and experience within specific areas required by the business. Nominations are invited from existing Trustees, which are discussed by the board in order to review the respective nominee's credentials. Successful candidates, approved by the board. are then formalty invited to become a trustee. Following acceptance, the new trustee reiVeS an induction regarding all aspects of the organisation by the executive management and meets key employees. Trustees are encouraged to attend appropriate extemal training events where these will facilitate the undertaking of their role.
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continu Year ended 31 March 2024 Objectlves and activities Purpose of The Merthyr Tydfil Institute for the Blind The Merthyr Tydfil Institute for the Blind (MTIB) is a registered charity providing cost effective training. development and employment opportunities for persons with disabilities and those who are disadvantaged, economically inactive or unemployed. The Charity achieves this through a delicate balancing of the commercial demands on the organisation with the social ethos of providing employment and training opportunities for its clients. We have referred to the guidance contained in the Charity Commissions, general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have seL MTIB'S aim is to provide people who have disabilities, or are disadvantaged, economically inactive or unemployed, the opportunity ft)r sustained employment. The main areas of charitable activity are the operation of a Supported Business. via a wood working manufacturing unit at Pentrebach, Merthyr Tydfil, servicing the UK fumiture industry that directly employs disabled and disadvantaged persons. along with an Employment and Training Department, which delivers programmes that support the employment of persons with disabilities and health condf(ions, along wtth those that are disadvantaged, economicalty inactive or unemployed within mainstream employment throughout South Wales. The Manufacturing Unit provided sustained direct employment for 32. 25 (2023, 35, FTE 28) disabled persons within a commercial manufacturing environment with 7. 2 (2023, 2, FTE 1) hosted to local employers. Employees are encouraged to engage in training activtties to expand and develop their skills to benefitthemselves and the organisation. In addition, the manufacturing unit is used to offer work trials and work placement opportunities to clients seeking to gain experience within a work environment, which include those with reaming disabilities who access the local council's Day Care SeNices, as well as students at local schools and colleges. Administration of the Employment and Training Department also operates from the Pentrebach site and directly employed an average of 11, FTE 8 (2023 12, FTE 8) disabled persons during the year. The Department matches disabled and disadvantaged clients seeking to gain or retain employment with mainstream 'Host' employers and provides a wide range of supported work opportunities that meet the differing needs of people with disabilities. whilst reflecting the demands of the local labour market. MTIB offers a range of support to both employers and employees including practical help, such as, a job trainer, job coach. mentoring from colleagues as well as advice and awareness help to the employer and employees, along with financial support to the employer. All support activities are focused with the goal of creating and sustaining the employment of the disabled client. The main programmes delivered during the year include the Restart and Jobsense contracts, the UKSPF Programme project and our Local Authority SLA Reach Up project. Supported Business grant continues to be funded via Access to Work under the Transitional Employer Support Grant (TESG). This funding model was originally extended to 30th September 2024 and now to 31 st March 2025, to allow the delayed transfer to the new Atw+ funding model. Our subcontract with Serco to deliver the DVbP Restart programme, supporting disadvantaged persons back into employment, conts'nues to be challenging due to the change in the quality of referrals and the onerous compliance regime. However, the Team has perfomied well to meet the
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (contlnued) Year ended 31 March 2024 contract compliance and performance targets, regularly being in the top quartile of the suppty chain. Consequently, MTIB were awarded an increase in contract delivery when Restsrt referrals were extended for 2 years from 1st Juty 2024. Additionally, our Jobsense project, supporting those with sight andlor hearing impairment in South and West Wales. being our final EU Funded project, delivered in a ollaborative consortium with 3 other likeminded third sector providers of employment support to disabled and disadvantaged people, was successfully completed in September 2023. The MTIB Team performed very well during the period and was allocated, delNered and funded an extra 41J/o of the project. We continue to provide much needed training, development and work placement opportunities to people with severe learning disabilities in the Merthyr Area and following a retender of the Reach Up contract with Merthyr Tydfil CBC, we successfully secured the contract until March 2024. Unfortunately, due to funding cuts Merthyr Tydfil CBC has not renewed the contract for 2024125. During the year, 354 disabled and disadvantaged people were supported by MTIB via its training and employment contracts, achieving and sustaining a total of 144 jobs. During the year, our Restart contract supported 173 customers gaining 68 jobs, with our UKSPF project supporting 71 individuals in the period, of which. 19 entered employment. Jobsense engaged with 41 sensory impaired clients and SUCSsfullY secured 2 jobs, which was very encouraging for this client group. Our Reach Up project supported 20 indNiduals V*ith leaming disabilities, with 2 sustaining volunteer placements, along with 1 newjob and 5 maintaining Supported Permitted Wlork in the period. Since April 2019, MTIB'S disabled and disadvantaged employees within the Supported Business have originally been funded by the replament 3-year Transitional Employment Support Grant (TESG) via Access to Work (Atw). This funding has Sin been extended to, September 2024, with the latest extension to March 2025. During the year our Supported Business directy supported an average of 38 individuals on the TESG programme. MTIB'S clients are provided with the opportunity to participate within our programmes at their chosen level. MTI B's provision facilitates a progressive process, from entry via a directly employed supportive manufacturing environment, through assessment. training and development in specific skill areas, through to the opportunity for placement with a 'Host' employer. Eventualty. by tapering support, those who are able, can be fully integrated into mainstream employment. An important feature of MTIB'S delivery is that individuals can enter the programme at any stage, to suit their own particular needs and abilities and reap the attendant benefits associated with gaining. retaining and sustaining employment There is no charge for our services to the client or'HosV employer. Eligibility for our Ser¥IS is restricted to persons with disabilities and those disadvantaged. economically inactive and unemployed persons as defined by the individual programmes we deliver. Demand for our services continues to be high especially as the gap between the employment of disabled persons compared to non-disabled remains stubbomly high. MTIB'S consistent proactive approach over the years of SussfUllY over delivering on its contracts, has to date facilitated our ability to support each eligible client that has been referred to us. MTIB also continues to expand and develop the services that it is able to provide in line with the varying needs of our clients. However, where client's requirements would be better served through another provider. we refer the client to them where appropriate. We ensure our activities deliver our ain by reviewing our aims, objectives and activities each year via our business planning process. This review looks at what we achieved and the outcome of our
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2024 work in the previous 12 months. The review looks at the success of each key activity and the benefits brought to those groups of people we are set up to help. This helps us to ensure our aims, objectives and activities remained focused on our stated purposes. The training, development and support we provide to create and sustain employment opportunities for our clients is always focused on the individual to ensure that the client's health condition is not adversely affected by their employment and is monitored on a regular basis. In addition, any changes in financi81 circumstances affected by employment are considered with the necessary agencies. so that clients can make an informed decision. All members of the Board gtve their time voluntarily and r1Ved no benefits from the charity. Any expenses reclaimed from the charity are set out in note 15 to the accounts.
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (eontlnued) Year ended 31 March 2024 Achievements and perfomiance MTIB has continued to successfully meet the increased demand from its commercial customers and clients of its employment programmes. Since the Covid-19 pandemic, MTIB adopted more flexible working from home practices with relevant staff where agreed. which importantly has ensured continuity of delivery of our employment and training contracts. Furthermore, MTIB'S continued membership of the Supported Business Steering Group (SBSG) wrth DWP provides our ability to lobby Dl4VP and ensure we are instrumental in securing an extension of TESG funding to 30th September 2024 and further to 31st March 2025. to allow time for transition to the new funding model. Having successfully delivered the Restart sutKontract for Serco. when the extension was announced. we were rewarded with the offered an over 2.5 fold increase in delivery of referrals for 2 years from 1 st July 2024. MTIB'S focus on securing the exiskn'ng income from tts contracts, whilst securing new ones, coupled with ability to increase manufacturing capability as customer demand increased. has helped us to maintain and develop our products and services. However. there still remains more work to be done each year, especially as following Brexit, there will be no more employment and training contracts from EU Funds, now that our final one, Jobsense, ended in September 2023. However, the fact that MTI B is able to secure and deliver these contracts continues to justify the Board's decision to invest in our staff resources, whilst replacement contracts are secured in order to demonstrate our ability to successfully deliver. Our aim has been achieved in the shorttemi, by securing a UK Shared Prosperity Fund project with Merthyr Tydfil CBC for 2 years from April 2023 supporting disabled and disadvantaged people into work. along with the increased Restart contract extension. Consequently, we will continue to perpetuate this course of action with the goal of generating further income wherever possible. A forecast loss was budgeted for the year, due mainly to the increased wage costs related to the increase in the National Minimum Wage, energy costs, the limited employment and training contract opportunities following Brexit. along with the unrtain sales demand from our commercial activities in a climate of increasing costs. Through our focus on maximising income from our employment and training contracts as well as generating sales opportunities within the manufacturing unit, whilst controlling costs, we achieved an unrestricted surplus of £227,436 as per the statement of financial activits.es shown at page 19, (£67,939, 2023). This was an outstanding. unprecedented result, which demonstrated the success of our efforts. The manufacturing management team has continued to focus on a targeted marketing strategy to generate sales opportunities and secure material supply at lower prices, whilst improving production effectiveness and efficiency where possible. Vvhen an office fu miture customer. with which MT18 was collaborating, ceased trading at the end of October 2023. management took the opportunity to quickly decide to employ one of their staff and offer our services to their failed customers. As a result, MTIB secured opportunities with RCTCBC and Camwrthenshire CC to deliver their office fumiture solutions. which due to our successful perfOan and delivery, has persisted to date. Additionally, MTIB SecUd a contract for the design and manufacture of Welsh Forestry Signs on behalf of the Welsh Government Consequently, sales income from the manufacturing business in¢ased to £1,103,910. (£983,611.
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (contlnued) Year ended 31 March 2024 2022123), representing a 12.20A increase on the previous yea¢s good perfonnance, resulting in a 20.40 increase in added value. The encouraging sales were mainly due to a continued increased dernand from existing and new customers for existing products, ak)ng the office fumiture and signage business secured highlighted above. The Employment and Training Department continued to perform well during the year on the Restart contract, whilst completing our final EU Funded project, Jobsense, in September 2023, achieving excellent results. The remaining income was generated from our UKSPF project secured with Merthyr Tydfil CBC, Disability Confident assessments and the Adult services Merthyr Tydfil CBC contracL Consequentty, overall financial performance achieved wtthin the department was very encouraging, realising a surplus of around £226k. Within the manufacturing unit. we continue to focu5 on improvements to ensure its continued long-term viability. The aim remains for it to achieve a break-even posibon and then generate a surplus, so as to become less reliant on funding, which is ever reducing. Addttionalty, the Employment and Training department needs to continue to successfully secure and deliver contracts to maintain its contribution to the organisation. especialty where contract opportunities are less prevalent. The Board and Management Team continue to review perf0mnCe and acttvtties, whilst seeking replacement funding from various other sources so that financial stability can be fully realised. Adopting this approach, MTIB secured an extension of the Restart subcontract with Serco from 1st July 2024 with an increased contract percentage and are awaiting infomFtion from Merthyr Tydfil CBC on UK Shared Prosperity Fund {UKSPF) project funding for 2025126. The charity's main objectives for the year were to build on the progress of the financial perfomiance of the manufacturing unit and to successfully deliver its Employment and Training contracts, by aiming to maximise related outputs and financial retum from all projects. Additionally, to further develop and expand MTIB'S training resources and facilities seeking to secure and deliver further replacement employment and training contract income. This has been achieved through our successful delivery of the Restart, Jobsense and UKSPF projects. where we have. since the year end. secured a Restart contract extension increase and await the UKSPF extensKJn. During the year, we have continued to deliver quality services to our disabled and disadvantaged customers incorporating online activities and have secured continued fijnding income. The ability of our staff to successfully adapt and be flexible in delivering the various contracts secured. has resulted in a perfomiance that has facilitated our suNival throughout this most challenging of years, whilst developing future opportunities. Our objectives focus on the need to develop and expand our training resources and facilities to secure and deliver employment related training. MTIB has met its objective to successfully deliver its employment and training contracts by Maximing the outputs and related income from all contracts. Our successful perft)mance is SUPFK>rted by our continued Investors in People and Matrix accreditations. We have also met our objective to improve the effectiveness and efficiency of the Supported Business manufacturing unit, increasing sales and added value beyond that of pre Covid-19 levels and increase the training and employment opportunities for our disabled and disadvantaged workforce. MTIB has also maintained its FSC accreditation following audit and notably seCUd office fumiture opportunittes with two local authorities and signage business with Welsh GovemmenL Matters regarding Finance, Business Development and Business Operations are reported on at full board meetings. This has proved an effective way of conducting the business of the organisation, as
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (contlnu Year ended 31 March 2024 all Trustees are updated on all progress and developments, whilst ensuring that meetings can take place should some be unable to attend. Addrtionally. the CEO provides regular updates to the board via email, whilst, there is also the flexibility to hold extra meetings in addition to the scheduled board meetings to discuss and address any specific issues that arise either, in person, virtually or a hybrid of both. Board structure The board and executive management were very pleased with the results during the year, but are also acutely aware of the challenge to generate future contract income, since the end of EU funds following Brexit. Consequently. they will continue to utilise the business planning process to manage the organisation. In conjunction with the invofvement of all staff, they reviewed the strategic direction and agreed a Business Plan for 2024r25, agreeing to commit to maintain staff levels, by utilising reserves if required. Training, development and personnel The training and development of MTIB'S disabled and disadvantsged dients is a key aspect of the organisation's employment and training delivery. The Board and Management are committed to strive for continual improvement of the quality of all of MTIB'S services. whilst increasing the training, development and employment opportunities to disabled. disadvantaged. economically inactive and unemployed persons. The facilities and resources made available through the legacy of the Blueprint Project continues to help the realisation of this goal by provKling enhanced work-based training, assessment and ICT training services. which, not only allow more clients the Chan to take up employment opportunities, but also provide further opportunities to develop the organisation in the future. The securing of extra contract income and new contracts during the year, all contribute to the delivery of employability training for those disabled, disadvantaged, economically inactive or unemployed clients seeking to improve their skills, gain qualffications and develop their employment opportunities. Our focus on our Core Values, communication and the development support of our people, have all been major contributory factors to MTIB'S ability to cope with the issues as they arise and to successfiJlly adapt to meet the challenges they may present. During the year, all staff continued to be regularfy updated on the developments ofthe business. MTIB'S Core Values and Management Behaviours have helped to reinforce a positive organisational culture towards change, where all employees have stated that they are prepared to adapt to meet future requirements in order to fa the challenges ahead. As such, the Board and Management believe that the continual development of posrtive working relationships between all employees has resulted in a more effective business operation. which has again been evidenced by this yea¢s perfomiance. Supported Business Protected Places MTIB continued to effectively utilise lis places on our Supported Business agreement, which was extended to 30th September 2024 and more recently to 31st March 2025, under the DWP Access to Work TESG scheme (Transitional Employer Support Grant), during which transition to the new funding model will take place. This resulted in an average of 52 individuals (55, 2023) being directly employed by MTIB. In addition, a further 305 (236, 2023) persons with disabilities were supported by MTIB with the aim of achieving
The Merthyr Tydfil Institute for the Blind Company Limlted by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2024 sustainable mainstream employment. Of those engaged in 2023124, MTIB'S support provided ongoing or new employment for 144 (2023, 162) individuals during the period. MTIB'S continued flexibility and proactive approach to the delNery of all its contracts has ensured that we have successfully maximised the outputs and related income to the end of contracts (Jobsense). Consequently, we have achieved high levels of contract quality and perfomance, which has built MTIB an exlIent track record that has allowed us to take advantage of future contract opportunities. Income MTIB'S Restart, Jobsense and UKSPF projects, along wth the Supported Business TESG grant via DWP'S Access to Work programme, have been the main sources of income. where the objectives were to achieve their planned outputs in orderto obtain the maximum funding. During the year, output lated income has been maximised where possible and the Supported Business contract has been extended to 31 st March 2025. Although the Merthyr Tydfil CBC contract was not extended beyond 31 st March 2024, extra funding was secured from our final EU Funded project Jobsense, along with increased contract delivery of the Restart contract. Furtherrrhjre, the 2 year from 1 st April 2023 UKSPF project secured with Merthyr Tydfil CBC will be extended to 31 st March 2026 and the increased Restart contract extension has been secured to July 2027. However, all these contracts are relatively short term, so further funding streams will need to be secured as the new UK and V*Jelsh Govemments develop their employability programme plans. We continue our efft)rts to reduce costs and increase sales within the Supported Business to secure MTIB'S future viability. Our pla on the NPS Office and Educational Fumiture framework has already presented opportunities where we are collaborating with other socialty minded organisations to bid jointly on future contract opportunities. Further potents'al opportunities are currentty being expk)red with the DV¥P, MTCBC and Welsh Government programmes amongst others. but are less developed, due to the uncertainties of funders. priorities within the current economic climate. We continue to cultivate and develop our relationships and seNices with local and National Government. In addOn, as a member of the Supported Business Alliance. MTIB sits on the Supported Business Steering Group with the British Association of Supported Employment (BASE) working with DIP, which has secured transitional funding for Supported Businesses from April 2019 to March 2025 and are awaiting confirmation of the replacement funding model beyond that date.
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continu Year ended 31 March 2024 Financial review Results and principal actlvltles The profit and loss acUnt for the period is set out on page 19 showing an unrestricted surplus of £227,436 and a restricted deficit of £40,468, with an overall surplus of £186,968 (£25,976, 2023). The principal activities of the company are the provision of supported employment. training and development for disabled persons and those who are disadvantsged. economically inactive or unemployed. Review of business and future developments Both the level of business and the year end financial posrtion were sab'sfactory considering the challenging circumstances. The Trustees are sats'sfied that there are plans in place to secure opportunities of replacement contract income following the end of exisb'ng contracts and have committed to maintain the level of staff, whilst covering any shortfall using reserves. with regular reviews up to that date. Principal Funders MTIB'S principal funders were vF0 via our remaining EU funded Jobsense projeot, our Restsrt contract and our UKSPF project with Merthyr Tydfil CBC, as well as Atw TESG Funding. All other contracts are smaller in value and for shorter durations of between 12 to 18 months. Reserves pollcy MTIB aims to retain sufficient free reserves to ensure that commttments made to providing services to disabled persons can be made with confidence. The Trustees believe that the value of reserves needed equates to 12 months of the resou5 expended, excluding materials. The free reserves figure used is calculated as the total of unrestricted reserves less those related to fixed assets, which are compared to the forecast expenditure for the following year. At 31 st March 2024 free reseNes were £1,974,641 (2023.. £1,738,337), which is 14 months of the forward resources expended, excluding materials. The ongoing effects of Brexit, the Energy Crisis and the attendant increase in inflation and cost of living on the future economic climate, provide continued uncertainty of our ability to generate the required level of income from our Employment and Training contracts to cover the Supported Business, which although improved, still trades at a deficrt. Consequently, our excess reserves will be utilised to cover periods where income does not cover expenditure. so that Se1 to our disabled employees and customers can be maintained until replacement income or cost reductions are implemented. Investment policy The Trustees have wide investment powers and adopted a risk adverse policy to investments. The investments, shown in note 19 to the accounts. have been made in the Charities Official Investment Fund which provides income and the opportunity for capital growth on the investment Risk revlew Key risks within MTIB have been Klentified and a contingency plan is set out within the Business Plan each year. The Board and management team have set in place systems to mitigate these risks and continue to evaluate and monitor them. One of the main risks to the business is to achieve the minimum perfomiance levels of all its 10
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2024 employment and training contracts to ensure that there is no risk of losing them. even with those that have less financial impact due to their relativety lower value. However, the potsntial resultant undesirable loss in reputation is why MTIB prioritises efft)rts to ensure that contract quality and performance levels are met and strive to exed them where possible. This is achieved by ensuring our staff are skilled, focussed, motivated and supported with the necessary resources to successfvlly deliver all our contracts. Due to the ending of EU funding following Bret. MTIB'S final EU funded Jobsense project ended in September 2023 and our Merthyr Tydfil CBC Adult services contract ended March 2024. The UK Govemment developed the UK Shared Prosperity Fund (UKSPF) to be administered by local authorities throughout the UK, for the 2-year period to March 2025 and MTIB secured a contractwith Merthyr Tydfil CBC for the period which has been extended to March 2026 with reduced fijnding. However, there is yet to be announced a framework for funding beyond March 2026. Although MTI B has secured UKSPF funding, currently it is relativety short lived. so as usual. we will keep up to date of potential opportunities as they arise. The economic climate and rise in unemployment will likely provide further opportunities either within our existing Restart subcontract or new programmes. Should replacement funding for the UKSPF not be realised, to help bridge the funding gap, MTIB will consKler ts options depending on the circumstances at the time. As a resuSt of the energy crisis, MTIB'S forecast for gas and electricity was set to rise from £45k to £113k pa from April 2023, so we have invested in energy reducing measures to help reduce the impact, which have proved successful. Further. investment options to generate energy cost savings are being explored. Operating within a commercial environment there is a considerable risk of our manufacturing unit not being able to improve its financial performance from its current loss. especially with the future uncertainties surrounding the forecast economic climate for 2025. Consequently, senior managernent focus efforts on developing existing and new customers, along with idents'fying new opportunities. This is complimented by concerted efforts to control costs, whilst reviewing and implemenb'ng production efficiencies to ensure financial improvements are achieved. Underpinning the potential negative financial effects of the risks highlighted above is our level of free reseNes, which would allow the business time to assess the situation and implement a plan of recovery, in the best interests of our disabled workforce. Employment pollcy The company has an equal opportunity policy, which it adopts within its operating environment of Supported Employment. Pay policy for Key Management Personnel The trustees and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charty on a day to day basis. The senior management team are considered to be those stated below within the Directors, Trustees, Members and Chief Officers sects'on. All trustees give their time freely and no trustee received remuneration in the year. Details of wage costs of key management personnel and trustees. expenses including related paty transactions are disclosed in notes 14 and 15 respectivety, to the accounts. Senior management pay and staff pay is based on market rates and aligned to the National Minimum Wage. An inflationary rise is awarded upon the di$tIOn of the Trustees following consideration of the aforementioned comparators and where funds are available. InMentS and bonuses may be 11
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (contlnued) Year ended 31 March 2024 awarded,. however, they are not automatic and are given at the discretion of the Chief Executs've and the Board of Trustees. Political and charitable donations The company has made no political or charitable donations. CONCLUSION AND PLANS FOR THE FUTURE Celebrating our 100th year anniversary. MTIB has made excellent progress on the encouraging performance achieved last year with continued promising business demand. We have secured continued income from the sponsors of our employment and training contracts and used our close relationships with our commercial customers to maintain arKI generate new business opportunities for the future. New Supported Business Commercial opportunities have been developed bringing the potential for new customers, new markets along with new skills to be leamt, vthich provides a good platform on which to build. MTIB'S facilities and resources, coupled with the commitment and flexibility of our workforce, will give us the opportunity to fully realise the required recovery to drive the business forward. The Board and Management believe that the development of the business planning process has continued to help us lead the business following the Covid-19 crisis and has ensured that everyone is focussed on delivering the business objectives. which continue to be an important factor in our continuing success to date. 2023124 has been another challenging year, where we have had to draw on the skills. resourcefulness, flexibility, adaptability and resilience of our stsff to maintain the employment of our disabled workforce and continue to deliver the invaluable services to disabled and disadvantage persons within South Wales. This has been mainly due to the sustained strong commercial demand within the Supported Business, the Employment and Training Team successfully achieving delivery of contracts during the year and management securing commercial and contract opportunities. However. we must not be complacent as we need to build on production efficiencies and try to maintsin the increased sales opportunities to generate our own incowE to become less reliant on ever decreasing funding. Additionally, the employment and training contracts are for relatively short durations. so will need to be replaced when completed. We will continue to adapt and develop our services, focusing our efforts to meet the requirements of any new contract opportunities. As a result, we can continue to demonstrate our excellent track record of delivery and perfonan to commissioners, ensuring that additional contracts are secured. We are focused on delivering our existing contracts. whilst seeking to secure future contracts, as well as delivering further significant improvements in the financial perfomiance of the manufacturing unit. MTIB'S involvement with DWP regarding the Supported Business Steering Group will have a major impact on MTIB. As such, we will continue our inVoement and monitor developments closely, promoting MTIB'S services to Dl4VP, JCP, potential prime contractors, MPS and Ams, in order to influence and position ourselves in the best interests of our disabled employees, clients and organisation. However, the fijture develops, the Board are committed to make every effort to secure the future of the business and continue to develop our ServIS of providing training and employment opportunities for persons with disabilities and health conditions and those who are disadvantaged, economically inactive and unemployed. Consequently, we look fOard to meeting the challenges ahead during 2024125 and beyond. 12
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2024 Trustees. responsibilitles statement The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees, report and the financial statements in accordan viith applicable law and United Kingdom Accounting Standards (United Kingdom Generalty Accepted Accounting Practice). Company law requires the charity trustees to prepare financial ststements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the trustees are required to.. select suitsble accounting policies and then apply them consistendy" obseNe the methods and principles in the applicable Charities SORP. make judgments and accounting estimates that are reasonable arKJ prudent. prepare the financial statements on the going concem basis unless it is inappropriate to psume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financral statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor Each of the persons who is a trustee at the date of approval of this report confimis that: so far as they are aware. there is no relevant audit information of which the charity's audttor is unaware. and they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit infomiation and to establish that the charity's auditor is aware of that infomiation. Small company provisions This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. The trustees, annual report vrfas approved on 04 Dernber 2024 and signed on behalf of the board of trustees by". R A Welfoot Charity Secretary 13
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Independent Auditorfs Report to the Members of The Merthyr Tydfil Institute for the Blind Year ended 31 March 2024 Opinion We have audited the financial statements of The Merthyr Tydfil Institute for the Blind (the 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statsment of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources, induding its income and expenditure, for the year then ended; have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice" have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. Basis for opinion We conducted our audit in accordan with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements secb'on of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance V•llth these requirements. Vle believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial ststements, we have conduded that the trustees, use of the going conrn basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perft)mied, we have not Klenttfied any material uncertainties relating to events or conditions that, individualty or collectively. may cast snIfICant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 14
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Independent Auditor's Report to the Members of The Merthyr Tydfil Institute for the Blind (continued) Year ended 31 March 2024 Other informatlon The other information comprises the information inoluded in the annual report, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report, we do not express any fonn of assurance condusion thereon. In connection with our audit of the financial statements, our responsibtlity is to read the other information and, in doing so, consider whether the other information is rnaterially inconsistent with the financial statement5 or our knowledge obtained in the audit or otherwise appearB to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether there is a material misststement in the financial statements or a material misstatement of the other infomiation. 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 Cornpanies Act 2006 In our opinion, based on the work undertaken in the course of the audit the infomiation given in the trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements. and the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by gxceptlon In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, reporL We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if. in our opinion.. adequate accounting records have not been kept. or returns adequate for our audtt have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and retums. or certain disclosures of trustees. remunerab'on specified by law are not made., or we have not received all the infomiation and explanations we require for our audit: or the trustees were not entitled to prepare the financial ststements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the directors. pOrt and from the requirement to prepare a strategic report. 15
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Independent Auditor's Report to the Members of The Merthyr Tydfil Institute for the Blind (conllnu Year ended 31 March 2024 Responsibilities of trustees As explained more fully in the trustees, responsibilities ststement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they gtve a true and fair view, and for such intemal 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 eThor. In preparing the financial statements. the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing. as applicable, matters related to going concem and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 16
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Independent Auditor's Report to the Members of The Merthyr Tydfil Institute for the Blind (conllnued) Year ended 31 March 2024 Auditotrs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditoff s report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or eor and are considered material if, individually or in the aggregate, they could reasonably be expected to Influen the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulatr'ons. We deSn 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: By enquiring with senior management and those charged with governan all area of risk identffied were considered and any potents'al litigation or claim. if any. were noted Ensuring by enquiry that there were no issues of non-compliance with laws and regulations relating to tax and compliance By obtaining an understanding of the companys policies and procedures on Complian with laws and regulations, and with best accounting practice Noting issues discussed with Directors and the Senior Management Team where they relate to risks faced by the company Reviewing information received from the company's solicitors, if any. and discussing their contents with the Directors Reviewing disclosures in the financial statements and testing to supporting documentation to assess compliance with applicable laws and regulations Auditing the risk of management overrides of controls including testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business Through these procedures, we did not become aware of actual or suspected non-compliance. As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the aud ljve also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one sUlting from error, as fraud may involve collusion, forgery. intentional omissions, misrepresentstions, or the override of internal control. 17
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Independent Audltor's Report to the Members of The Merthyr Tydfil Institute for the Blind (wntinwd) Year ended 31 March 2024 Obtain an understanding of internal control relevant to the audit in order to design audit prOdureS that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the intemal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disdosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going conrn basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's abilty to continue as a going concern. Ifwe conclude that a material UnrtaInty eSts, we are required to draw attention in our auditor's report to the related disc5osures in the financial ststements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit eviden obtsined up to the date of our auditor's report However, future events or conditsons may cause the charity to cease to continue as a going concern. Evaluate the overall presentation. structure and content of the financial statements, including the disclosures, and whetherthe financial ststements representthe underfying transactions and events in a manner that achieves fair presentation. We communicate with those tharged with governan regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit Use of our report This report is made solely to the chanty's members, as a body. in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that ACL Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. Jonathan Rhodes Bsc BFP FCA (Senior Ststutory Auditor) For and on behalf of Walter Hunter & Co Limited Chartered accountants & statutory auditor 24 Bridge Street Newport South Wales NP20 4SF 04 Dember 2024 18
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2024 2024 2023 (restated) Unrestricted funds Restricted funds Total funds Total funds Note Income and endowments Donations and legacies Charitable activities Investment income 5,670 2,168,164 58,617 5,670 2.169,164 58,617 245 2,015,912 25,802 2,041.959 1.000 Total income 2,232,451 1,000 2,233,451 Expenditure Expenditure on charitable activities Total expendlture 2,048,423 2,048,423 2,048,423 2,048.423 2,015,140 2,015,140 Net gains1(losses) on investments 11 1,940 1.940 (843) Net income 185.968 1.000 186,968 25,976 Transfers beeen funds 41.468 (41.468) Net movement in funds 227,436 (40.468) 186.968 25,976 Reconclliation of funds Total funds brought foNard Total funds carried forward 2,159,673 880.377 839.909 3.040,050 3.227,018 3,014,074 3,040,050 2,387,109 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 22 to 34 forni part of these financial statements. 19
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee ststement of Financial Position 31 March 2024 2024 2023 {restatedJ Fixed assets Tangible fixed assets 15 1,251,377 1,301,713 Current assets Stocks C)ebtors Investments Cash at bank and in hand 16 17 18 100,740 355,322 1,268.364 650.405 125,486 258,694 1,324,043 312,428 2,374,831 2.020,651 Creditors: amounts falllng due wlthin one year Net current assets 19 399,190 282,314 1,975,641 3,227,018 3,227,018 1,738,337 3,040,050 3,040,050 Total assets less current liabilities Not assets Funds of the charity Restricted funds Unrestricted funds 839,909 2,387,109 880,377 2.159,673 3,040,050 Total charity funds 21 3,227,018 These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. These financial statements were approved by the board of trustees and authorised for issue on 04 December 2024. and are signed on behalf of the board by: Mr G Meredith Trustee rs J Morgan Trustee The notes on pages 22 to 34 forni part of theso financial ststements. 20
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee ststement of Cash Flows Year ended 31 March 2024 2024 2023 {restatedJ Cash flows from operating activitles Net income 186,968 25,976 Adjustments for Depreciation of tangible fixed assets Net gainsl(losses) on investments Dividends, interest and rents from investments Other interest receivable and similar income Accrued (income)lexpenses 102,365 {1,940) (4,480) (54,137) (61,590) 88,663 (7,315) (18,487) 409 Changes in." stocks Trade and other debtors Trade and other creditors 24,746 (72,939) 154,777 3,341 51,905 47,199 Cash generated from operations 273.770 192,534 Interest received 54,137 18,487 Net cash from operating activities 327,907 211,021 Cash flows fr¢)m investing activities Dividends, interest and rents from investments Purchase of tangible assets Proceeds from sale of other investnnts 4,480 (52,029) 57,619 7,315 (82,282) 15,596 (59,371) Net cash froml(used in) investing activities 10,070 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 337,977 312,428 151,650 160,778 650,405 312,428 The notes on pages 22 to 34 forni part of theso financlal ststements. 21
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2024 General Infomiation The charity is a public benefit entity and a private company limited by guarantee. registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Unit 4 Triangle Business Park. Pentrebach. Merthyr Tydfil, CF48 4TQ. Statement of compliance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,, the Statement of Recomrnended practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP IFRS 102)) and the Companies Act 2006. Accountlng policies Basis of preparatlon The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the currency of the entity, rounded to the nearest pound. Going concern There are no material unrtaintieS about the charity's ability to conts'nue. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Fund accountlng Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of sub-classes" restricted income funds or endowment funds. 22
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2024 Accounting pollcies (continuedj Incoming resources All incoming resources are induded in the statement of financial activities when entitlement has passed to the charty. it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. legacy income is recognised when receipt is probable and enb'tlement is established. income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably. in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and servi5 are recognised in the accounts when received if the value can be reliabty measured. No amounts are included for the contribution of general volunteers. income from contracts for the suppty of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a parbcular purpose and returned if unspent, in which case it may be regarded as restricted. Resources expended Expenditure is recognised on an accruals basis as a liabilty is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates= expenditure on raising funds indudes the costs of all fundraising activities, events. non- charitable trading activities. and the sale of donated goods. expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the govemarKe of the charity apportioned to charitable activities. other expenditure includes all expenditure that is neither related to raising fvnds for the charity nor part of its expenditure on charitable activities. All costs are allocated to expenditure categories reflecting the use of the Esource. Direct Costs attributable to a single acttvity are allocated directty to that activity. Shared costs are apporttoned between the activities they contribute to on a reasonable, jusb'fiable and consistsnt basis. 23
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notss to the Financial Statements Icontlnued) Year ended 31 March 2024 Accounting pollcies (continued) Tangible assets Tangible assets are initially recorded at cosc and subsequenty stated at cost less any accumulated depreciation and impaiment Sosses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Depreciation Depreciakn'on is calculated so as to write off the cost or valuation of an asset, less its residual value, over the usefvl economic life of that asset as follows.. Freehold property Plant and machinery Fixtures and fittings Motor vehicles 2% p.a. Straight Line 20.kn p.a. Straight Line 20 % p.a. Straight Line 20% p.a. Straight Line Impalrnient of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist 10Jhere the carying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impaimients are also reviewed for possible reversal at each reporting date. Stocks Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Financlal Instruments A financial asset or a financial liabilty is recognised only when the entity becomes a paty to the contractual provisions of the instturnenL Basic financial instruments a initially recognised at the arrK)unt r1Vable or payable including any related transaction costs, unless the arrangement constrtutes a financing transaction, where it is recognised at the present value of the fvture payments discounted at a market rate of interest for a similar debt instrumenL Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Defined contribution plans Contrrbutions to defined contribution plans are recognised as an expense in the period in which the related seniice is provided. Prepaid )ntribUtiOnS are recognised as an asset to the extent that the prepayment will lead to a reduction in fvture payments or a cash refvnd. 24
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements (conflnued) Year ended 31 March 2024 Limited by guarantee The company is lirnited by guarantee and has no share capital. The liability of each member under guarantee is limited to £1. Number of members as at 31 March 2024 is 7 (2023: 7). Prior year adjustment During the period, accruals recognised in prior yearf financial statements, totalling £70,000, have been reclassified as Designated Funds to disclose these future costs in accordance with the requirements of the Companies Act and the Charity SORP. Donations and legacies Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Donations Donats'ons 5.670 5,670 245 245 Charitable activities Unrestricted Funds Restricted Total FurKIs Funds 2024 Sales from Supported Buslness 1.103.910 1,103,910 Fundrdising 4.930 4,930 Supported Buslness and Placement Scheme Access to Work TESG Grant Merthyr Tydfil CBC SLAS Coronavirus Job Retention Scheme WCVA Active Inclusion contract RESTART contract JOBSENSE contract UKSPF Programme Income Employment Support Programme Contract 192,862 45.000 192,862 45,000 240,043 222,617 286,898 5.510 240,043 222,617 286,898 5,510 Other Grants WCVA Energy Efficiency Scheme Grant DIPTr Access to Work Income 1.000 1,000 66,394 66.394 2.168.164 1,000 2,169,164 25
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 Charitable activities (continued) Unrestricted Funds Restricted Total Funds Funds 2023 Sales from Supported Business 983,611 983,611 Fundraising 400 400 Supported Business and Placement Scheme Access to Work TESG Grant Merthyr Tydfil CBC SLAS Coronavirus Job Retention Scheme WCVA Active Inclusion contract RESTART contract JOBSENSE contract UKSPF Programme Income Employment Support Programme Contract 199,989 45,000 199,989 45,000 16,902 237,488 213,357 268,932 16,902 237,488 213,357 268.932 18,132 18,132 Other Grants WCVA Energy Efficiency Scheme Grant DVVP Access to Work Income 32,101 32,101 1,999,010 16,902 2,015,912 Investment income Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Rental income Bank interest receivable 4,480 54,137 4,480 54,137 7,315 18,487 25,802 7,315 18,487 58,617 58,617 25,802 26
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements {conlinued) Year ended 31 March 2024 Expenditure on charitsble actlvitles by fund type Unrestricted Funds Restricted Total Funds Funds 2024 Supported Business Employment & Training Blueprint Project Governance Support costs 1,317,272 405,179 33,906 7,690 284.376 1,317,272 405,179 33,906 7,690 284,376 2,048.423 2,048,423 Unrestricted Funds Restricted Total Funds Funds 2023 {rE5tated) Supported Business Employment & Training Blueprint Project Governance Support costs 1,229,466 457,256 32,371 7,475 271.670 16,902 1,246,368 457,256 32,371 7,475 271,670 1,998.238 16.902 2.015,140 10. Expenditure on charltable activities by activity type Activities undertaken directy Support Total funds costs 2024 Total fund 2023 (restatedj Supported Business Employment & Training Blueprint Project Governance 1,317.272 405,179 33,906 7.690 142.188 142.188 1,459.460 547.367 33,906 7,690 1.382,202 593,092 32,371 7,475 2,015,140 1.764.047 284.376 2,048,423 11. Analysis of support costs Supported Employment Business & Training Total 2024 Total 2023 (reststedj Staff costs Premises Administrative costs Legal & Professional 112,445 7,278 19,365 3,100 112.445 7.278 19.365 3.100 224.890 14,556 38,730 6,200 233,360 18,393 17,050 2,867 271,670 142,188 142,188 284,376 27
The Merthyr Tydfil Institute for the Blind Company Llmited by Guarantee Notes to the Financial Statements {continuedJ Year ended 31 March 2024 12. Net gainsl(losses) on investments Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Gainslllosses) on other investment assets 1,940 1,940 (843) (843) 13. Net income Net income is stated after chargingl(crediting).' 2024 2023 Depreciation of tangible fixed assets Auditors. remuneration 102,365 7.615 88,663 7,400 14. Staff costs The total staff costs and employee beneffts for the reporting period are analysed as follows.. 2024 2023 {restated) Wages and salaries Social security costs Employer contributions to pension plans 1.050,733 88,115 57,930 1,082,079 91,551 66,096 1,196,778 1,239,726 The average head count of employees during the year 57 (2023: 59). The average number of fu114ime equivalent employees during the year is anatysed as follows.. 2024 2023 No. No. Manufacturing Selling and Distribution Management and Administration Employment and Training 25 27 13 12 46 47 The number of employees whose remuneration for the year fell within the following bands, were: 2024 2023 No. No. £70.000 to £79,999 28
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements (conllnued) Year ended 31 March 2024 14. Stsff costs {con&nued) Key Management Personnel Key management personnel include all persons that have authority and responsibility for planning. directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charty was £351 ,269 {2023: £339,276). 15. Trustee remuneration and expenses No fees, emoluments or expenses were paid to Trustees during the year (2023: £ Nil) During the year the charity was not involved in any transactions with organisations associated with people who are directors of the charity. 16. Tangible fixed assets Freehold Plant and Fixtures property machinery and fith.ngs Motor vehicles Total Cost At 1 April 2023 (as restated) Additions Disposals At 31 March 2024 1,697.454 619,685 50,529 (187.306) 482,908 138.360 1.500 (1,622) 138.238 80.382 2,535,881 52,029 (188,928) 80.382 2.398,982 1,697,454 Depreciation At 1 April 2023 Charge for the year Disposals At 31 March 2024 604,164 33,949 452,198 54,253 (187.306) 319,145 125,291 3,471 (1,622) 127,140 52,515 1.234,168 10,692 102,365 (188,928) 63,207 1,147,605 638,113 Carrying amount At 31 March 2024 1.059,341 163,763 11,098 17,175 1,251,377 27,867 1,301,713 At 31 March 2023 1,093,290 167,487 13,069 17. Stocks 2024 2023 Raw materials and consumables Work in progress Finished goods and goods for resale 88,100 10,590 2,050 100,740 117,473 2,274 5,739 125,486 29
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 18. Debtors 2024 2023 Trade debtors Prepayments and accrued income Other debtors 264,380 90,942 189,453 68,509 732 355,322 258,694 19. Inveslments 2024 2023 Charities Official Investment Fund (COIF) see note (a) below Fixed Rate Deposits 23,375 1,244,989 1.268,364 21,435 1,302,608 1,324,043 (a) Relates to 1144 units in COIF Charities Investment Fund Inc, originally purchased for £1 each. 20. Creditors: amounts falling due within one year 2024 2023 (restated) Trade creditors Accruals and deferred income Social security and other taxes Other creditors 248,120 52,944 88,303 9,823 399,190 142,417 90,845 39,415 9,637 282,314 21. Pensions and other post retirement benefits Defined contribution plans The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £19.702 (2023: £19,494). Defined benefit plans The company participates in a pension scheme operated by Rhondda Cynon Taff County Borough Council providing benefits based on final pensionable salary. The assets of the scheme are held separately from those ofthe company. The company is unableto identify its share of the underlying (notional) assets and liabilities of the scheme. Accordingly, the company has taken advantage of the exemption in FRS 102. and has accounted for its contributions to the scheme as if it were a defined contributs.on scheme. The company has set out below, infomiation available on the fijnding of the scheme and the implications for the company in tern of the anticipated contribution rates. The total pension cost of the company was £18,227 (2023: £26,602). The pension cost is assessed in accordance with the advice of an independent qualified actuary using the projected unit method. The latest actuarial valuation of the scheme was at 31 st March 2022. The assumptions that have the most significant effect on the valuation are those relating to discount rate set on the expected 30
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements {continuedJ Year ended 31 March 2024 21. Pensions and other post retirement beneffts (continued) return on the fund assets and the rates of increase in salaries and pensions. It was assumed that the discount rate for active members would be 1.3Vo 4.30A per annum and 1.30/ts 4.250/0 per annurn for members who have left the service" salary increases woukl average 3.55°/ts per annum and that present and future pensions would increase at the rdte of 2.30A per annum. At the date of the last actuarial valuation, the market value of the assets of the scheme was £4,512.1 million and the actuarial value of the assets was sufficientto cover 105.1 of the benefits which had accrued to members. after allowing for expected fijture increases in earnings. The contributions of the company will be 29.80A (2023: 33.50A) and for employees 9.9 % and 6.8'A for the related employees (2023: 9.9% and 6.8°h). Contributions amounting to £3.116 (2023: £3,816) were payable to the scheme at the year end and are included in creditors. 31
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 22. Analysls of charitable funds Unrestricted funds At Gains and 31 March losses 2024 At 1 April 2023 Income Expenditure Trdnsfers Capital and charitable resep4e Profit and loss account Designated funds 469.801 11.363 (2.647) 1,940 480,457 1,619,872 2,221.088 (2,045.776} 70,000 2,159.673 2,232,451 {2,048.423) 17,404 24,064 1,812,588 94,064 41,468 1.940 2,387,109 At 1 April 2022 (restatedj Gains and At 31 March losses 2023 Income Expenditure Transfers {resta¢ed) (restate Capital and charitable reSee Profit and loss account Designated funds 479.351 (8.707) (843) 469,801 1,582.383 2,025.057 (1,989.531) 30.000 2,091.734 2.025,057 {1,998,238) 1,963 40,000 1,619,872 70,000 41,963 (843) 2,159,673 The capital and charitable reserve comprises" A capital reserve which arose on incorporats'on in 1991 352,919 The accumulated balance of fundraising activities and donations which have been given to the Insts'tute to use for charitable purposes, together with interest thereon. less expenditure incurred to date. 127 538 480,457 During the period. accruals recognised in prior yeaf financial statements. totalling £70,000, have been reclassified as Designated Funds to disclose these future costs in accordance with the requirements ofthe Companies Act and the Charity SORP. 32
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 22. Analysis of charitable funds {conalnuedJ Restrlcted funds At 31 March 2024 1 April 2023 Income Expenditure Transfers Job Retention Scheme Other revenue grants Other capital grants Blueprint project 1,000 1,000 27,855 811,054 43.584 836.793 880,377 (15,729) (25,739) (41,468) 1,000 839,909 At 1 April 2022 At 31 March 2023 Income Expenditure Transfers Job Retention Scheme Other revenue grants Other capital grants Blueprint project 16,902 (16,902) 59,828 862.512 (16,244) (25,719) (41,963) 43,584 836,793 922,340 16,902 (16,902) 880,377 Job Retention Scheme is the grant funding from the UK Govemment to support the jobs of those employees furloughed and flexible furloughed as a result of the Covid-19 pandemic restrictions. The receipt shown is the release of the clawback provision made in the previous year. Other capital grants represent grants received from funders that in order to help finance the acquisition of certain fixed assets. Each funding agreement will have its own conditions attached to the use of the fijnding in relation to the fixed assel The Blueprint project represents grants red from the Welsh European Funding Office and Merthyr Tydfil County Borough Council in relation to the organisation's European Objective 1 Blueprint project to expand its resources and ServIS for the training, development and creation of employment opportunities for blind. partially sighted and disabled persons throughout South Wales. 33
The Merthyr Tydfil Institute for the Blind Company Limited by Guarantee Notes to the Financial Ststements (conllnuedj Year ended 31 March 2024 23. AnalysSs of net assets between funds Unrestricted Funds Restricted Total Funds Funds 2024 Tangible fixed assets Investments Current assets Creditors less than 1 year Net assets 412.468 1,268,364 1,105.467 (399.190) 2.387,109 838,909 1,251,377 1,268,364 1,106,467 (399,190) 3,227,018 1,000 839,909 Unrestricted Funds {rnstated) Restricted Total Funds Funds 2023 {restated) Tangible fixed assets Investments Current assets Creditors less than 1 year Net assets 421,336 1,324,043 696,608 (282,314) 2.159.673 880,377 1,301,713 1,324,043 696,608 (282,314) 3,040,050 880,377 24. Analysls of changes in net debt At 1 Apr 2023 Cash flows 31 Mar 2024 Cash at bank and in hand Current asset investments 312,428 1.324,043 337,977 (55,679) 282,298 650,405 1,268,364 1.636.471 1,918,769