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2023-03-31-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 2023

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

(A company limited by guarantee)

GRANTHAM AND DISTRICT MENCAP LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023

Trustees Miss J A Burnett, Chief Executive Officer (Until 30 May 2023) (resigned 30 May
2023)
Mr Paul Bratton (resigned 28 September 2022)
Mrs Natasha Peters
Mr Malcolm Andrew, Chair of Trustees (From 30 May 2023) (appointed 11
November 2022)
Mrs Christine Andrew (appointed 11 November 2022)
Company registered
number
02035303
Charity registered
number
1023576
Registered office
Cree Centre
Aire Road
Grantham
Lincolnshire
NG31 7QP
Chief executive officer
Mrs Karena Brooks
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 2023

The Trustees present their annual report together with the audited financial statements for the year 1 April 2022 to 31 March 2023. 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:

"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 2023 the Charity has continued to offer support and daytime activities at the Cree Centre and longterm residential care at Fairview Farm.

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 2023

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.

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 one 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 2023

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 £261,037 (2022 - £363,498). The Trustees are working to increase this balance.

c. OVERVIEW

The Charity made a deficit before investment for the year of £116,212 compared to a deficit of £89,413 in 2022.

At 31 March 2023, the charty has unrestricted reserves of £780,456 compared to £896,668 in 2022 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 2023

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

Whilst there previously has been no formal system in place for induction of new trustees, the current Trustees are mindful of the requirements of the Charity's constitution and have implemented a formal induction process which includes an application, interview and training.

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 2023

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.

FUNDS HELD AS CUSTODIAN

At the year end the Charity held funds amounting to £73,000 on behalf of residents of Fairview Farm. This amount, which was held in separate designated business call bank accounts, has not been included in the Financial Report.

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

Mr Malcolm Andrew Chair of Trustees

Date: 28 June 2023

Page 6

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

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023

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 year. 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:

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:

Mr Malcolm Andrew Chair of Trustees

Date: 28 June 2023

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 2023 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:

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 other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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:

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates;

• We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation;

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

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: 03/07/2023

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 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Other income
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
2023
£
13,640
1,212,781
222
-
1,226,643
1,342,855
1,342,855
(116,212)
896,668
(116,212)
780,456		 Total
funds
2023
£
13,640
1,212,781
222
-
1,226,643
1,342,855
1,342,855
(116,212)
896,668
(116,212)
780,456		 Total
funds
2022
£
588
1,060,940
299
40,766
1,102,593
1,192,006
1,192,006
(89,413)
986,081
(89,413)
896,668

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 2023

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Investments
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets		 35,422
63,521
173,072
272,015
(11,896)		 2023
£
519,419
918
520,337
260,119
780,456
780,456
780,456		 71,059
170,000
38,891
279,950
(14,526)		 2022
£
533,170
98,074
631,244
265,424
896,668
896,668
896,668

Page 13

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

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

Note
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds
 2023
£
-
780,456
780,456		 2022
£
-
896,668
896,668

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:

Mr Malcolm Andrew Chair of Trustees

Date: 28 June 2023

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 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from sale of investments
Net cash provided by/(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		 2023
£
(60,933)
(8,743)
97,378
88,635
-
27,702
208,891
236,593		 2022
£
(115,646)
(8,482)
-
(8,482)
-
(124,128)
333,019
208,891

Page 15

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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:

"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 District 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.

Page 16

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 when the 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.

Page 17

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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.

Page 18

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

4. Income from donations and legacies

Unrestricted
funds
2023
£
Donations
13,640
5.
Income from charitable activities
Unrestricted
funds
2023
£
Care, support and training
1,212,781
6.
Investment income
Unrestricted
funds
2023
£
Unlisted investments
222		 Total
funds
2023
£
13,640
Total
funds
2023
£
1,212,781
Total
funds
2023
£
222		 Total
funds
2022
£
588
Total
funds
2022
£
1,060,940
Total
funds
2022
£
299

Page 20

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. Analysis of expenditure by activities

Care, support and training
Care, support and training		 Activities
undertaken
directly
2023
£
1,285,386
Activities
undertaken
directly
2022
£
1,157,196		 Support
costs
2023
£
57,469
Support
costs
2022
£
34,810		 Total
funds
2023
£
1,342,855
Total
funds
2022
£
1,192,006

Page 21

(A company limited by guarantee)

GRANTHAM AND DISTRICT MENCAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. 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
2023
£
985,443
14,774
3,009
32,223
14,814
32,965
25,674
52,107
22,494
16,873
22,985
20,192
-
41,833
1,285,386		 Total
funds
2022
£
861,245
8,158
1,997
33,198
17,900
37,994
24,308
44,192
23,129
15,534
15,896
17,844
14,757
41,044
1,157,196

Analysis of support costs

Printing, stationery, post and telephone
Subscriptions and affiliation fees
Bad debts written off
Legal and professional expenses
Governance costs - Auditors remuneration		 Total
funds
2023
£
8,907
20,938
14,668
6,456
6,500
57,469		 Total
funds
2022
£
8,075
18,487
-
2,798
5,450
34,810

Page 22

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. Auditor's remuneration

2023 2022
£ £
Fees payable to the charity's auditor for the audit of the charity's annual
accounts 6,500 5,450

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
908,274
55,410
21,759
985,443		 2022
£
799,169
44,148
17,928
861,245

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

Management & administration
Carers, drivers & front of house		 2023
No.
6
59
65		 2022
No.
6
52
58

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

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL) .

Page 23

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11. Tangible fixed assets

Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
property
£
665,865
-
665,865
281,553
12,607
294,160
371,705
384,312		 Tenant's
imp'ments
£
95,408
-
95,408
16,800
1,908
18,708
76,700
78,608		 Motor
vehicles
£
26,526
-
26,526
25,995
133
26,128
398
531		 Fixtures and
fittings
£
339,290
8,743
348,033
269,571
7,846
277,417
70,616
69,719		 Total
£
1,127,089
8,743
1,135,832
593,919
22,494
616,413
519,419
533,170

Page 24

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

12. Fixed asset investments

Cost or valuation
At 1 April 2022
Additions
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Unlisted
investments
£
98,074
222
(97,378)
918
918
98,074

Fixed Asset Investments at the year end include long term cash deposits of £Nil (2022 - £97,156).

13. Debtors

Due within one year
Trade debtors
Current asset investments
Short-term cash deposits		 2023
£
35,422
35,422
2023
£
63,521		 2022
£
71,059
71,059
2022
£
170,000

14. Current asset investments

Page 25

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

15. Creditors: Amounts falling due within one year

Other creditors
Accruals and deferred income		 2023
£
5,396
6,500
11,896		 2022
£
9,076
5,450
14,526

Page 26

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. Statement of funds

Statement of funds - current year

Balance at
Balance at 1 Transfers 31 March
April 2022 Income Expenditure in/out 2023
£ £ £ £ £
Unrestricted funds
Designated funds
The Porter Family Trust 31,872 - - - 31,872
Thompson Fund - - - 12,140 12,140
31,872 - - 12,140 44,012
General funds
General Funds - all funds 864,796 1,226,643 (1,342,855) (12,140) 736,444
Total Unrestricted funds 896,668 1,226,643 (1,342,855) - 780,456
Statement of funds - prior year
Balance at
Balance at 31 March
1 April 2021 Income Expenditure 2022
£ £ £ £
Unrestricted funds
Designated funds
The Porter Family Trust 31,872 - - 31,872
General funds
General Funds - all funds 954,209 1,102,593 (1,192,006) 864,796
Total Unrestricted funds 986,081 1,102,593 (1,192,006) 896,668

Page 27

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. 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 funds

The Porter Family Trust - during a prior year the charity received a donation from the Porter Family Trust, created by the late Nina Betty Porter.

During the year, a legacy was donated from the late Mary Thompson.

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 for The Porter Family Trust amount and The Cree Centre for the Mary Thompson donations. Accordingly the Trustees have designated the funds for this purpose.

Page 28

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
519,419
Fixed asset investments
918
Current assets
272,015
Creditors due within one year
(11,896)
Total
780,456		 Total
funds
2023
£
519,419
918
272,015
(11,896)
780,456

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2022
£
533,170
98,074
279,950
(14,526)
896,668		 Total
funds
2022
£
533,170
98,074
279,950
(14,526)
896,668

Page 29

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Decrease in creditors
Net cash used in operating activities
19.
Analysis of cash and cash equivalents
Cash at bank and in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents
20.
Analysis of changes in net debt
At 1 April
2022
£
Cash at bank and in hand
38,891
Liquid investments
170,000
208,891		 2023
£
(116,212)
22,494
(222)
35,637
(2,630)
(60,933)
2023
£
173,072
63,521
236,593
Cash flows
£
134,181
(106,479)
27,702		 2022
£
(89,413)
23,129
(299)
(38,095)
(10,968)
(115,646)
2022
£
38,891
170,000
208,891
At 31 March
2023
£
173,072
63,521
236,593

Page 30

GRANTHAM AND DISTRICT MENCAP LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

21. 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 £21,759 (2022 - £17,928). Contributions totalling £1,786 (2022 - £1,439) were payable to the fund at the balance sheet date.

22. Operating lease commitments

At 31 March 2023 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		 2023
£
20,719
34,337
55,056		 2022
£
11,947
32,395
44,342

23. Related party transactions

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

Page 31