2021-03-31-accounts

Registered number: 02035303 Charity number: 1023576

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the charity, its Trustees and advisers	1
Trustees' report	2 - 6
Trustees' responsibilities statement	7
Independent auditor's report on the financial statements	8 - 11
Statement of financial activities	12
Balance sheet	13 - 14
Statement of cash flows	15
Notes to the financial statements	16 - 31

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees	Miss J A Burnett, Chief Executive Officer
	Mrs A Stafford, Secretary
	Mrs M S Beecham
Company registered number 02035303 Charity registered number 1023576 Registered office Cree Centre Aire Road Grantham Lincolnshire NG31 7QP Company secretary Mrs A Stafford Chief executive officer Miss J A Burnett Independent auditor Streets Audit LLP Chartered Accountants & Statutory Auditor Tower House Lucy Tower Street Lincoln LN1 1XW Bankers Lloyds Bank plc 42 St Peter's Hill Grantham Lincolnshire NG31 6QF

Page 1

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements for the year 1 April 2020 to 31 March 2021. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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) as amended.

Since the Charity qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

Objectives and Activities

a. OBJECTIVES AND AIMS

The objectives of the Charity are as follows:

• The relief of people with a learning disability in particular by the provision of help and support for them and for their families, dependents and carers, and to prevent learning disabilities for the public benefit and to advance religion amongst persons with a learning disability; and

• To provide or assist in the provision of facilities of the recreation or other leisure time occupation for people who have need thereof by reason of learning disability with the object of improving their conditions of life.

"learning disability" means any developmental disability of the mind and any associated condition howsoever caused and whether mild, moderate or severe.

Public Benefit Statement

The Trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit, published by the Charity Commission, in exercising their powers or duties.

b. STRATEGIES AND ACTIVITIES FOR ACHIEVING OBJECTIVES

The Charity provides both residential and daycare facilities to meet its objectives. Throughout the current year to 31 March 2021 the Charity has continued to offer support and daytime activities at the Cree Centre and longterm residential care at Fairview Farm.

The Charity continues to provide the Mothers Group, which meets once a month and provides support and reassurance for parents/carers of children with learning disabilities.

The Charity also provides an essential transport service, operating with two minibuses and two cars, including one wheelchair accessible car for any appointment or trip out.

The Charity provides care, support and help to people with learning disabilities both in the residential home and the day centre. The Charity also provides help and support to the families of the ladies and gentlemen who use the Charity's services. In addition, the Charity improves the standard of their service users lives by providing recreational facilities, visits and trips and other leisure activities.

These activities have been beneficial for the Charity's service users as they have more enriched lives and have access to the help and support they need. The families of the service users can also feel reassured that their loved ones are in good hands and that they can receive all the help and support they need.

Page 2

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

c. VOLUNTEERS

The Trustees are all volunteers and devote their time to attend Board meetings and other meetings as required. The Charity also recruits and trains a number of volunteers to provide essential assistance with the provision of its services.

Achievements and performance

a. REVIEW OF ACTIVITIES

The activities undertaken over the last 12 months are as follows:

Cree Centre

The Cree Centre was opened by carers in 1975 to provide support and daytime activities to local people with a learning disability.

Today, the centre provides day opportunities to people with a learning disability and PIMD. The centre offers two fully accessible changing places where your care needs can be met with dignity and comfort. Our kitchen (rated 5 by S.K.D.C.) has height adjustable workstations and sink, to enable you to get involved in meal preparation or baking as part of the Cree8cakes team.

We have developed Cree8blooms adding a greenhouse to our garden where we can learn new skills and grow our own flowers, fruit and vegetable. Our sensory room provides the perfect place to relax and unwind.

Fairview Farm

Fairview Farm is an old farmhouse in large gardens. Homes are in five living areas in three buildings. Everyone has their own care plan and are helped to choose where they spend their days. A busy social life is very important to people who live at Fairview Farm.

Fairview Farm is registered with the Care Quality Commission and adheres to essential standards of quality and safety to comply with the Health and Social Care Act 2008. We have been awarded 5 stars by South Kesteven District Council and we work within a framework agreement with Lincolnshire County Council.

Mothers Group

Grantham Mencap Mothers Group was founded in 1980 by a group of mothers/carers, whose children had learning disabilities.

Concerned about the immediate and long term future for their children, they met with representatives from education, health and social services to try and improve the services offered to them.

Many felt that just to meet with others in the same situation was a great help, to talk over problems and support one another.

Transport

We operate a transport service available to all our members.

We are very proud of our service. We like to keep our members mobile, we have two minibuses and two cars including a wheelchair accessible car for any appointment or trip out.

All our drivers are trained and our staff are trained to ensure passengers are safe before going out and to deal with any problem should it happen.

Page 3

GRANTHAM AND DISTRICT MENCAP LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

b. FUNDRAISING ACTIVITIES/INCOME GENERATION

No material fundraising has taken place over the period.

c. INVESTMENT POLICY AND PERFORMANCE

The Charity holds a significant proportion of its cash resources in what the Trustees consider to be low risk liquid investments.

The Charity also holds a minimal sum in listed shares.

Financial review

a. GOING CONCERN

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

b. RESERVES POLICY

As the Charity supports many vulnerable ladies and gentlemen, as well as employing staff, it has been decided that free reserves should be maintained at a level that allows adequate working capital for core costs and would cover contingency costs in the event of funding ending unexpectedly.

Free reserves are unrestricted funds not invested in fixed assets, designated for other purposes or otherwise committed.

At the year end the balance of free reserves was £438,264 (2020 - £344,838). The Trustees are working to increase this balance.

c. OVERVIEW

The Charity made a surplus before investment for the year of £78,715 compared to a surplus of £64,214 in 2020.

At 31 March 2021, the charty has unrestricted reserves of £986,081 compared to £907,366 in 2020 and no restricted reserves.

d. PRINCIPAL FUNDING

The principal funding source is from Lincolnshire County Council. Residential support is paid partly in arrears and partly in advance and forms the majority of the Fairview Farm income. Daycare is paid monthly in arrears and forms the majority of the Cree Centre income.

e. MATERIAL INVESTMENTS POLICY

Under the Memorandum and Articles of Association, the Charitable Company has the power to make any investment which the Trustees see fit.

Page 4

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

a. CONSTITUTION

Grantham and District MENCAP Limited is governed by an Articles and Memorandum of Association. Grantham and District MENCAP Limited is also a Company Limited by Guarantee (Company Number 02035303). The Society is a registered Charity and is affiliated to the Royal Society.

The principal object of the Charity is to increase public awareness and understanding of the problems of people with learning difficulties in order to secure provision for them commensurate with their needs.

b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

Most of the current Trustees have been in post for a number of years. Whilst there is no formal system in place for induction of new trustees, the current Trustees are mindful of the requirements of the Charity's constitution.

c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

Whilst there is no formal system in place for induction and training of new trustees, the current directors/trustees are mindful of the requirement that they receive adequate ongoing training.

d. PAY POLICY FOR SENIOR STAFF

The Trustees consider the board of trustees as comprising the senior staff of the Charity in charge of directing and controlling the Charity. All trustees give their time freely and no trustee remuneration was paid in the year.

e. ORGANISATIONAL STRUCTURE AND DECISION MAKING

The Trustees intend to continue to develop the Charity in line with its present objectives. The Trustees continue to review carefully all major risks to which the Charity is exposed and procedures have been established to manage those risks. Trustees are responsible for strategy and implementing the objectives set. Day to day running is devolved to the paid managers and staff.

f. RELATED PARTY RELATIONSHIPS

Grantham and District MENCAP Limited does not have any relationships with related parties.

g. RISK MANAGEMENT

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The most significant external risk identified is the dependence upon governmental funding which can be subject to changes in political priorities and social policy. As a result, our free reserves have been established at a level that would allow the organisation to provide sufficient resources in the short-term in the event of policy changes affecting funding.

Identified internal risks have been minimised. For example all staff and volunteers undertake Enhanced DBS vetting to support safeguarding principals. Procedures are in place for the authorisation of all transactions and to ensure consistent delivery of all operational aspects of the charitable company.

These procedures are reviewed regularly to ensure the needs of the organisation continue to be met.

Page 5

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

h. PRINCIPAL ACTIVITIES

The Society operates the Cree Centre as a day care centre and Fairview Farm as a residential home and offers structured appropriate activities at both establishments. There have been no significant changes in policy since the date of the last report.

Plans for future periods

a. FUTURE DEVELOPMENTS

The Charity plans to continue many of the activities outlined above in forthcoming years, subject to satisfactory funding arrangements. In addition, as new needs are identified, the Charity will assess the relevance and suitability of sourcing funding to broaden its provision base, whilst continuing to meet the overall aims of the Charity.

On 11 March 2020 a pandemic was declared in the UK in relation to COVID-19. The long-term impact upon the charity will not be known at the time of accounts approval, but the management and staff have been putting provisions in place to ensure the impact on the service users is not disrupted as far as possible. The Cree Centre was initially closed, with the funding being maintained by the Local Authority for the short-term, management and Trustees are putting plans in place to ensure that once services are able to resume, the financial impact will be minimised wherever possible. The Trustees do not believe the impact of COVID-19 will materially affect the going concern basis discussed in the financial statements, but are constantly monitoring this with management of the charity.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Miss J A Burnett (Chair of Trustees)

Date: 01/10/21

Page 6

GRANTHAM AND DISTRICT MENCAP LIMITED (A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume 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 financial 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.

Approved by order of the members of the board of Trustees and signed on its behalf by:

Miss J A Burnett Chairperson

Date: 01/10/21

Page 7

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRANTHAM AND DISTRICT MENCAP LIMITED

Opinion

We have audited the financial statements of Grantham and District MENCAP Limited (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• 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 Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Page 8

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRANTHAM AND DISTRICT MENCAP LIMITED (CONTINUED)

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 Auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, 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 9

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRANTHAM AND DISTRICT MENCAP LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

• We obtained an understanding of the legal and regulatory frameworks that are most appliable to the entity and determined that the most significant are those that relate to the operational environment, service user safeguarding requirements, and the financial reporting framework (FRS102, Charities SORP and Companies Act 2006).

• We obtained an understanding of how the entity is complying with these legal and regulatory frameworks by making enquiries to management. We corroborated our enquiries through our review of board minutes.

• We assessed the susceptibility of the entity’s financial statements to material misstatement including how fraud might occur. Audit procedures included:

• Identifying and assessing the design effectiveness of management’s controls designed to prevent and detect irregularities;

• Challenging assumptions and judgements made by management in its evaluation of accounting estimates;

• Identifying and testing journal entries.

• We communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

• These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. However, detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as those irregularities that result from fraud may involve collusion, deliberate concealment, forgery, or intentional misrepresentations.

• It is the audit partner’s assessment that the audit team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.

• Management have not communicated to the audit team any matters of non-compliance with laws, regulations, or fraud and no such matters were identified by the audit team.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Page 10

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRANTHAM AND DISTRICT MENCAP LIMITED (CONTINUED)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Streets Audit LLP

Chartered Accountants & Statutory Auditor Tower House Lucy Tower Street Lincoln LN1 1XW

Date: 13/10/21

Streets Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 11

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note Income from: Donations and legacies 4 Charitable activities 5 Investments 6 Other income 7 Total income Expenditure on: Charitable activities Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2021 £ 11,666 1,012,390 675 99,181 1,123,912 1,045,197 1,045,197 78,715 907,366 78,715 986,081	Total funds 2021 £ 11,666 1,012,390 675 99,181 1,123,912 1,045,197 1,045,197 78,715 907,366 78,715 986,081	Total funds 2020 £ 39,290 1,171,514 1,049 -
			1,211,853
			1,147,639
			1,147,639
			64,214
			843,152 64,214
			907,366

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 16 to 31 form part of these financial statements.

Page 12

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee) REGISTERED NUMBER: 02035303

BALANCE SHEET AS AT 31 MARCH 2021

Note Fixed assets Tangible assets 12 Investments 13 Current assets Debtors 14 Investments 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Net assets excluding pension asset Total net assets	32,964 277,846 55,173 365,983 (25,494)	2021 £ 547,817 97,775 645,592 340,489 986,081 986,081 986,081	82,075 218,313 20,157 320,545 (72,807)	2020 £ 562,528 97,100
				659,628 247,738
				907,366
				907,366
				907,366

Page 13

GRANTHAM AND DISTRICT MENCAP LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02035303

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

Note Charity funds Restricted funds 17 Unrestricted funds 17 Total funds	2021 £ - 986,081 986,081	2020 £ - 907,366
		907,366

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 144 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Miss J A Burnett Chairperson

Mrs A Stafford Secretary

Date: 01/10/21

The notes on pages 16 to 31 form part of these financial statements.

Page 14

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 16 to 31 form part of these financial statements	2021 £ 102,724 (8,175) (8,175) - 94,549 238,470 333,019	2020 £ 121,735 (1,760) (1,760) - 119,975 118,495 238,470

Page 15

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

As set out in the Trustee's report, Grantham and District MENCAP Limited is an incorporated registered charity in England & Wales. The principal office of the charity is Cree Centre, Aire Road, Grantham, Lincolnshire, NG31 7QP.

The principle objectives of the charity are:

• The relief of people with a learning disability in particular by the provision of help and support for them and for their families, dependents and carers, and to prevent learning disabilities for the public benefit and to advance religion amongst persons with a learning disability; and

• To provide or assist in the provision of facilities of the recreation or other leisure time occupation for people who have need thereof by reason of learning disability with the object of improving their conditions of life.

"learning disability" means any developmental disability of the mind and any associated condition howsoever caused and whether mild, moderate or severe.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Grantham and Distric MENCAP Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, which is the functional currency of the charity.

2.2 Going concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charirty has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charitys ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

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GRANTHAM AND DISTRICT MENCAP LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants received relating to charitable income and expenditure are treated as deferred income and released to the Statement of financial activities related expenditure is incurred.

2.6 Interest receivable

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 institution with whom the funds are deposited.

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GRANTHAM AND DISTRICT MENCAP LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the most appropriate method. .

Depreciation is provided on the following bases:

Freehold property and long-	- 2% straight line
leasehold
Tenant's improvements	- 2% straight line
Motor vehicles	- 25% reducing balance method
Furniture and equipment	- 10% - 20% reducing balance method

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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GRANTHAM AND DISTRICT MENCAP LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.12 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.13 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

2.14 Fund accounting

General funds are unrestricted funds which 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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

Tangible fixed assets are recognised at cost or valuation, less accumulated depreciation and any impairments. Depreciation takes place over the estimated useful life, down to the assessed residual value. The carrying amount of the charity's fixed assets is tested as soon as changed conditions show that a need for impairment has arisen.

Page 19

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from donations and legacies

Unrestricted funds 2021 £ Donations 11,666 Unrestricted funds 2020 £ Donations 39,290 5. Income from charitable activities Unrestricted funds 2021 £ Care, support and training 1,012,390 Unrestricted funds 2020 £ Care, support and training 1,171,514	Total funds 2021 £ 11,666
	Total funds 2020 £ 39,290
	Total funds 2021 £ 1,012,390
	Total funds 2020 £ 1,171,514

Page 20

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Investment income

Unrestricted funds 2021 £ Unlisted investments 675 Unrestricted funds 2020 £ Unlisted investments 1,049 Government grants Unrestricted funds 2021 Total funds 2021 £ £ Government grants 99,181 99,181	Total funds 2021 £ 675
	Total funds 2020 £ 1,049
	Total funds 2020 £ -

7. Government grants

Page 21

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure by activities

Care, support and training Care, support and training	Activities undertaken directly 2021 £ 1,012,393 Activities undertaken directly 2020 £ 1,106,792	Support costs 2021 £ 32,804 Support costs 2020 £ 40,847	Total funds 2021 £ 1,045,197
			Total funds 2020 £ 1,147,639

Page 22

(A company limited by guarantee)

GRANTHAM AND DISTRICT MENCAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs Staff advertising and training Rent and rates Heat and light Insurance Repairs Domestic expenses Sundries Depreciation Transport and expenses Lease expenses Telephone Grant expense Food and kitchen expenses	Total funds 2021 £ 749,583 6,085 1,806 36,857 11,338 24,818 23,965 50,359 22,885 12,531 16,522 10,234 11,475 33,935 1,012,393	Total funds 2020 £ 791,584 5,711 1,730 35,911 8,110 32,838 53,134 67,006 22,754 27,491 11,384 10,727 - 38,412
		1,106,792

Analysis of support costs

Printing, stationery, post and telephone Subscriptions and affiliation fees legal and professional expenses Auditors remuneration	Total funds 2021 £ 8,528 13,139 5,937 5,200 32,804	Total funds 2020 £ 12,368 16,436 6,843 5,200
		40,847

Page 23

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Auditor's remuneration

	2021	2020
	£	£
Fees payable to the charity's auditor for the audit of the charity's annual
accounts	5,200	5,200

10. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	2021 £ 690,219 41,288 18,076 749,583	2020 £ 733,427 40,552 17,605
		791,584

The average number of persons employed by the charity during the year was as follows:

Management & administration Carers, drivers & front of house	2021 No. 6 48 54	2020 No. 5 43
		48

No employee received remuneration amounting to more than £60,000 in either year.

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, expenses totalling £3,075 were reimbursed or paid directly to 1 Trustee (2020 - £3,071 to 1 Trustee) .

Page 24

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Tangible fixed assets

Cost At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Freehold property £ 665,865 - 665,865 256,339 12,607 268,946 396,919 409,526	Tenant's imp'ments £ 95,408 - 95,408 12,984 1,908 14,892 80,516 82,424	Motor vehicles £ 26,526 - 26,526 25,580 237 25,817 709 946	Fixtures and fittings £ 322,633 8,175 330,808 253,001 8,134 261,135 69,673 69,632	Total £ 1,110,432 8,175
					1,118,607
					547,904 22,886
					570,790
					547,817
					562,528

Page 25

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Fixed asset investments

Cost or valuation At 1 April 2020 Additions At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Unlisted investments £ 97,100 675
	97,775
	97,775
	97,100

Fixed Asset Investments at the year end include long term cash deposits of £96,857 (2020 - £96,182).

14. Debtors

Due within one year Trade debtors Prepayments and accrued income 15. Current asset investments Short-term cash deposits	2021 £ 32,964 - 32,964 2021 £ 277,846	2020 £ 57,765 24,310 82,075 2020 £ 218,313

Page 26

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Creditors: Amounts falling due within one year

Trade creditors Other taxation and social security Other creditors Accruals and deferred income Resources deferred during the year	2021 £ - - 5,537 19,957 25,494 2021 £ 14,757	2020 £ 2,470 6,192 58,945 5,200
		72,807
		2020 £ -

Page 27

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Statement of funds

Statement of funds - current year

Unrestricted funds Designated funds The Porter Family Trust General funds General Funds - all funds Total Unrestricted funds Statement of funds - prior year Balance at 1 April 2019 £ Unrestricted funds Designated funds The Porter Family Trust - General funds General Funds - all funds 843,152 Total Unrestricted funds 843,152	Balance at 1 April 2020 £ 31,872 875,494 907,366 Income £ - 1,211,853 1,211,853	Income £ - 1,123,912 1,123,912 Expenditure £ - (1,147,639) (1,147,639)	Expenditure £ - (1,045,197) (1,045,197) Transfers in/out £ 31,872 (31,872) -	Balance at 31 March 2021 £ 31,872
				954,209
				986,081
				Balance at 31 March 2020 £ 31,872
Unrestricted funds Designated funds The Porter Family Trust General funds General Funds - all funds Total Unrestricted funds
				875,494
				907,366

Page 28

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Statement of funds (continued)

General fund

General funds are those funds not designated towards any project in particular and can be used towards any of the Charity's objectives.

Designated fund

The Porter Family Trust - during the prior year the charity received a donation from the Porter Family Trust, created by the late Nina Betty Porter. Whilst no legally binding obligations were imposed on the donation, it was the wish that the funds be used for the future benefit of the residents at Fairview Farm. Accordingly the Trustees have designated the funds for this purpose.

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2021 £ Tangible fixed assets 547,817 Fixed asset investments 97,775 Current assets 365,983 Creditors due within one year (25,494) Total 986,081	Total funds 2021 £ 547,817 97,775 365,983 (25,494) 986,081

Analysis of net assets between funds - prior year

Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Total	Unrestricted funds 2020 £ 562,528 97,100 320,545 (72,807) 907,366	Total funds 2020 £ 562,528 97,100 320,545 (72,807) 907,366

Page 29

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Dividends, interests and rents from investments Decrease in debtors Decrease in creditors Net cash provided by operating activities 20. Analysis of cash and cash equivalents Cash at bank and in hand Notice deposits (less than 3 months) Total cash and cash equivalents 21. Analysis of changes in net debt At 1 April 2020 £ Cash at bank and in hand 20,157 Liquid investments 218,313 238,470	2021 £ 78,715 22,886 (675) 49,112 (47,313) 102,725 2021 £ 55,173 277,846 333,019 Cash flows £ 35,016 59,533 94,549	2020 £ 64,214 22,754 (1,049) 24,935 10,881 121,735 2020 £ 20,157 218,313 238,470 At 31 March 2021 £ 55,173 277,846 333,019

Page 30

GRANTHAM AND DISTRICT MENCAP LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £18,076 (2020 - £17,605). Contributions totalling £2,142 (2020 - £Nil) were payable to the fund at the balance sheet date.

23. Operating lease commitments

At 31 March 2021 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years	2021 £ 16,187 37,910 - 54,097	2020 £ 19,111 48,667 9,478
		77,256

24. Related party transactions

During the year, there were no related party transactions that are required to be disclosed under the SORP.

Page 31