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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 02786035 (England and Wales) REGISTERED CHARITY NUMBER: 1035083

DIRECTORS REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 FOR LEWISHAM NEXUS SERVICE

LEWISHAM NEXUS SERVICE

CHARITABLE COMPANY INFORMATION FOR THE YEAR ENDED 31 MARCH 2023

REGISTERED OFFICE

Unit 3 Deals Gateway London England SE13 7SB

REGISTERED CHARITY NUMBER

1035083

COMPANY NUMBER 02786035

Directors Nicole Allwood Phil Alvey John Anderson Ramandeep Jhattu James Robertson Jean Young Ava Zadkhorvash

CHIEF EXECUTIVE Bernie Mayall

COMPANY SECRETARY Fahmeeda Amode

BANKERS

NatWest Bank PLC 159 Rushey Green London SE6 4BJ

Lloyds TSB Bank Plc 15 Blackheath Village London SE3 9LH

AUDITORS

Azets Audit Services 2[nd] Floor, Regis House 45 King William Street, London EC4R 9AN

LEWISHAM NEXUS SERVICE

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Directors present their report and financial statements for the year ended 31 March 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.

Structure, governance and management

The charity is a company limited by guarantee and was formed in April 1993. The charity is governed by its Memorandum and Articles of Association dated 2 February 1993 and reviewed on the 1 September 2021. The charity offers a comprehensive approach to supporting people who have learning disabilities as individuals.

On 31 October 2021, Lewisham Nexus Service merged with Aurora Options. Following the merger, the charity trades under the name ‘Aurora Nexus’.

The directors for the purposes of company law who served during the year are:

Trustees

Nicole Allwood Phil Alvey ● John Anderson Marcia Bryan (resigned 03 August 2023) Jozeen Holmes (resigned 20 July 2022) Ramandeep Jhattu (appointed on 09 August 2023) James Robertson Jean Young ● Ava Zadkhorvash ● (appointed on 09 August 2023)

● Member of the QPR Committee

* Member of the Finance Committee

Executive Management

Bernie Mayall (Interim Chief Executive) Fahmeeda Amode (Director of Finance and Company Secretary) Michelle Jewell (Corporate Compliance) Joe Donnellan (Director of Operations) Jacqui Shephard (Director of Practice Development) Gail Nicholls (Director of Housing, Quality and Development)

The Board of Trustees consists of the Trustees and Chief Executive, with other members of management invited as required. Voting is restricted to the trustees only. At least three trustees must be present for a meeting to be quorate. Decisions are made by majority vote with the Chair holding the casting vote where votes are tied.

Operational management decisions are made by the Executive, who provide regular reports on activities to the trustees. Decisions on the strategic direction are taken by the Board of Trustees, informed by management.

The Board of Trustees has considered the risks that face the business and implemented delegated authority and accountability for dealing with risk and decisions that operate throughout the organisation. A risk register is in place. The trustees and management accept the potential of risk in planning and strategy, and where possible mitigate against adverse risk.

The pay of the executive members is generally reviewed alongside the periodic review of all staff salaries. Where necessary, the trustees will discuss executive salaries in private.

The trustees do not receive remuneration, although reasonable expenses incurred in performing their duties are reimbursed.

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LEWISHAM NEXUS SERVICE

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Objectives and activities

The aims of the charity are to provide support to adults with learning disabilities to live in their local communities. By doing this, we aim to enable individuals to live fulfilled lives.

The Directors review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work within the last twelve months. This report presents the success of each key activity and benefits brought to the charity’s beneficiaries. The report also helps ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The Directors refer to Charity Commission guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the charity considers how planned activities will contribute to the aims and objectives that have been set.

We continue to work with commissioners in local authorities, social landlords and other stakeholders to identify areas of local need and plan services to meet these needs. Short and long term aims and objectives have been identified in the current business. This business plan has to remain fluid as a result of the current financial uncertainties in the voluntary sector. Part of this business plan is to investigate the use of social investment and grant making.

Achievements and performance

Lewisham Council are the organisation’s main funder and contracts are monitored through the learning disability commissioners. Aurora Nexus is on Lewisham Council's provider framework to provide services to people with learning disabilities. This includes supported living, outreach support, respite and day services.

We have developed a new positive relationship with commissioners in Bromley. We also took over two new services and managed these tenders.

As part of our development strategy, we intend to review plans to open new 5 bedded transition service. We are also working closely with a housing provider to provide housing management in of 5 new services.

We are looking to tender extensively for other providers services’ in Lewisham and other boroughs especially Southwark where we already have a presence with one service and a strong relationship with Commissioners.

We intend to create project groups to review the core areas of the organization.

We ae looking at the potential of fund raising and grant funding in the organisation.

We were able to award a 2% uplift on all staff salaries from January 2023.

FY23 has seen a major change in structure of the organisation, especially the admin side. We have restructured our Finance, HR, admin teams and created a new quality post to help support the core functions.

We continue to provide staff training programs via e-learning as well as other means of training. Families, advocates and supporters, as well as Social Work Teams, and commissioners continue to be very positive in their feedback regarding the services we provide. People continue to be involved in the running of the organization in a variety of ways including the Advisory Board.

Families, advocates and supporters, as well as social work teams and commissioners continue to be very positive in their feedback regarding the services we provide.

Aurora Nexus operates within an under resourced social care system and specialist knowledge of the services we deliver has been reduced in many local authorities. Working in London, access to affordable housing is a challenge for anyone, as we look to develop new services, housing will always be a challenge. We need to look to new ways to build partnerships that match our values and will offer secure high-quality housing for people with learning disabilities in the neighbourhoods where they belong.

The financial climate remains challenging and at the same time, expectations of excellence for organisations like ours are at their highest. Nonetheless, we are confident that our commitment and creativity will continue to ensure that we remain at the forefront of service delivery for adults with learning disabilities.

We will continue to influence change in the sector when we have the opportunity to do so. Our knowledge and

3

LEWISHAM NEXUS SERVICE

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

experience help us decide when and where to confidently say no, whether it’s an area of London far from where we currently operate, the way in which services are commissioned or a race to the bottom regarding costs of services. We know that in the future we will have more opportunities to not only join but to influence national campaigns.

This plan is the tool we will use to ensure that we are delivering high quality support and to plan and prepare for the future of Aurora Nexus.

Housing and Development

Corporate Compliance & Risk Management

Finance

Quality Assurance

Operations

Practice Development

Future Plans

In March 2022, we finalised a 3-year Business Plan based on consultation and feedback from a full range of stakeholders including:

4

LEWISHAM NEXUS SERVICE

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Our three-year strategic plan was launched in April 2022.

Public Benefit Statement

The sections of the report above entitled "Objectives and Activities “Achievements and Performance” and “Future Plans” set out Lewisham Nexus Service's objectives and reports on the activity and successes in the year to 31st March 2023, as well as explaining the plans for the current and future financial years. Lewisham Nexus Services’ work benefits the whole community by helping to integrate people with learning disabilities into community life. Lewisham Nexus Services provides employment for people with learning disabilities. We also provide work training for our employees.

The Directors have considered the Charity Commission's guidance on public benefit and concluded:

  1. That the aims of the organisation continue to be charitable.

  2. That the aims and the work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals’ need.

  3. That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay.

  4. That there is no detriment or harm arising from the aims of activities.

The contracts for supported living that Lewisham Nexus Services holds have various start dates and end dates this allows resilience as all contracts are tracked and managed through a pipeline most run for four years with an option for commissioners to extend for a further year or up to three years in Bromley.

Lewisham Nexus Services was heavily reliant on the funding it receives from Lewisham Council. However, we have been a successful local provider of services working mostly in one London borough for the past 27 years. Postmerger we now work in four London Boroughs and have some diversification of funding streams.

Principal Risks and Uncertainties

Major risks are identified on an on-going basis through a risk register and are discussed with external agents with expertise in the required area as appropriate. The council members are involved in this process as required.

We have worked with our funders to ensure that our disaster planning is robust. This covers IT back up, financial precautions and physical evacuation contingencies. We have carried out a test of the contingency planning.

The current financial climate for publicly funded bodies is very challenging and uncertain.

Lewisham Council continues with its policy of requiring local organisations to participate in competitive tendering to retain their current services. In the coming months, some of our services will be put out to tender. Some of these services the organisation has been providing support to for many years.

We have refined our financial strategies to ensure we are functioning at peak efficiency and we are in constant contact with Commissioners in adjusting our service strategy to ensure that this is in line with requirements. We maintain a competitive edge. Post-merger we will look for further savings to be realized, these savings are all around the business functions and do not impact on the lives of the people we support.

5

LEWISHAM NEXUS SERVICE

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Financial review

The charity's principal funder is Lewisham Council, which is a government agency.

We have received income from spot contracts, day services and floating support services (outreach) from Lewisham. We also receive funding from Bexley, Bromley and Southwark. A small amount of funding is through the CCG.

The charity’s policy is to hold at least 2 months of annual income to enable the organisation to survive in the event of a “market shock” and to help the charity operate effectively. The reserves policy and the level of reserves are held under review in line with the risk register updates.

Lewisham Nexus Services made a deficit of £132,849 to include in the year ended 31 March 2023 (2022: surplus of £1,009,983). Income increased to £7,970,946 and expenditure to £8,103,795.

Net assets were £1,881,264 and cash reserves decreased to £1,155,975.

6

LEWISHAM NEXUS SERVICE

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 MARCH 2023

Director’s responsibilities in relation to the financial statements

The trustees (who are also directors of Lewisham Nexus Service for the purposes of company law) are responsible for preparing the Directors’ 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, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Disclosure of information to auditors

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Auditors

In accordance with the Companies Act 2006, a resolution proposing that Azets Audit Services be appointed as auditors of the company will be put to the Annual General Meeting.

This report has been prepared in accordance with the Statement of Recommended Practice: ‘Accounting and Reporting by Charities’ and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to smaller entities.

On behalf of the Directors

………………………………………

J Robertson - Trustee

Dated: 25 November 2023

7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LEWISHAM NEXUS SERVICE

Opinion

We have audited the financial statements of Lewisham Nexus Service (the ‘charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees’ 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LEWISHAM NEXUS SERVICE

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, 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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.

This description forms part of our auditor’s report.

9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LEWISHAM NEXUS SERVICE

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

John Howard (Senior Statutory Auditor)

For and on behalf of Azets Audit Services

Statutory Auditor, Chartered Accountants 2nd Floor, Regis House 45 King William Street London EC4R 9AN

Date: 4 December 2023

10

LEWISHAM NEXUS SERVICE

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
2
Charitable activities
3
Transfer of assets from Aurora Options
Other trading activities
Investment income
Other incoming resources
Total income
EXPENDITURE ON:
Charitable activities
4
Total expenditure
Net incoming resources before
transfers
6
Gross transfers between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward
14		 Unrestricted funds
General
Designated
2023
2023
£
£
-
-
7,807,620
-
-
-
48,186
-
-
-
115,140
-
7,970,946
8,103,795
-
8,103,795
(132,849)
-
-
-
(132,849)
-
2,014,113
-
1,881,264
-		 Restricted
Funds
2023
£
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2023
£
-
7,807,620
-
48,186
-
115,140
7,970,946
8,103,795
8,103,795
(132,849)
-
(132,849)
2,014,113
**1,881,264 **		 Total
2022
£
59,981
4,080,742
1,257,110
8,596
89
68,285
5,474,803
4,464,820
4,464,820
1,009,983
-
1,009,983
1,004,130
2,014,113

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes on pages 16 to 22 form part of these financial statements

11

LEWISHAM NEXUS SERVICE

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

PRIOR FINANCIAL YEAR - 2022
Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
2
Charitable activities
3
Transfer of assets from Aurora Options
Other trading activities
Investment income
Other incoming resources
Total income
EXPENDITURE ON:
Charitable activities
4
Total expenditure
Net incoming resources before
transfers
6
Gross transfers between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward
14		 Unrestricted funds
General
Designated
2022
2022
£
£
27,655
-
4,080,742
-
1,257,110
-
8,596
-
89
-
68,285
-		 Unrestricted funds
General
Designated
2022
2022
£
£
27,655
-
4,080,742
-
1,257,110
-
8,596
-
89
-
68,285
-		 Restricted
Funds
2022
£
32,326
-
-
-
-
-		 Total
Total
2022
2021
£
£
59,981
21,206
4,080,742
2,240,583
1,257,110
-
8,596
-
89
(1,668)
68,285
2,607
5,442,477 - 32,326 5,474,803
2,262,728
4,432,494 - 32,326 4,464,820
2,260,011
4,432,494 - 32,326 4,464,820
2,260,011
1,009,983
100,000		 -
(100,000)		 -
-		 1,009,983
2,717
-
-
1,109,983 (100,000) - 1,009,983
2,717
904,130
2,014,113		 100,000
-		 - 1,004,130
1,001,413
2,014,113
1,004,130

The notes on pages 16 to 22 form part of these financial statements

12

LEWISHAM NEXUS SERVICE

BALANCE SHEET AT 31 MARCH 2023

Note
FIXED ASSETS
Tangible fixed assets
9
CURRENT ASSETS
Debtors
10
Cash and cash equivalents
CREDITORS
Amounts falling due within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Provisions for liabilities
12
NET ASSETS
FUNDS
Restricted funds
Unrestricted funds
Designated Funds
General unrestricted Funds
14
TOTAL FUNDS		 2023
£
70,345
1,633,663
1,155,975
2,789,638
(877,954)
-
1,881,264
£
1,911,684
1,982,029
(100,765)
1,881,264
-
**1,881,264 **		 2022
£
£
75,596
959,588
2,167,069
3,126,657
(1,143,140)
1,983,517
2,059,113
(45,000)
2,014,113
-
-
2,014,113
2,014,113
2,014,113		 2022
£
£
75,596
959,588
2,167,069
3,126,657
(1,143,140)
1,983,517
2,059,113
(45,000)
2,014,113
-
-
2,014,113
2,014,113
2,014,113
2,059,113
(45,000)
2,014,113
-
2,014,113
2,014,113

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2016 relating to small charitable companies.

22 November 2023

The financial statements were approved by the Board of Trustees on…………………………………… and were signed on its behalf by:

…………………………………………………………

J Robertson - Trustee

Company Registration number 02786035

The notes on pages 16 to 22 form part of these financial statements

13

LEWISHAM NEXUS SERVICE

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Net cash flow from operating activities
Cash (absorbed by) / generated by operations
17
INVESTING ACTIVITIES
Purchase of tangible fixed assets
Interest received
Net cash (used in) investing activities
Net cash (used in)/generated from financing activities
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2023
£
£
(1,011,094)
-
-
-
-
(1,011,094)
2,167,069
1,155,975		 2023
£
£
(1,011,094)
-
-
-
-
(1,011,094)
2,167,069
1,155,975		 2022
£
£
1,368,210
(73,009)
89
(72,920)
-
1,295,290
871,779
2,167,069		 2022
£
£
1,368,210
(73,009)
89
(72,920)
-
1,295,290
871,779
2,167,069
(1,011,094)
2,167,069		 1,295,290
871,779
1,155,975 2,167,069

The notes on pages 16 to 22 form part of these financial statements

14

LEWISHAM NEXUS SERVICE

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

1. ACCOUNTING POLICIES

1.1 Company information Lewisham Nexus Service is a private limited company limited by guarantee in England and Wales, registration number 02786035. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are set out on page 2.

1.2 Accounting convention

The financial statements have been prepared in accordance with charity’s Memorandum and Articles of Association, 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) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Lewisham Nexus Service 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 note(s).

The financial statements are prepared in sterling (£) which is the functional currency for the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3 Going concern The trustees have reasonable expectation that the Charitable Company can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements and thus the financial statements have been prepared on a going concern.

1.4 Charitable funds Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Designated funds are unrestricted funds that have been set aside by the trustees for a specific purpose. The purposes and uses of the designated funds are set out in the notes to the financial statements. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes of the uses of the restricted funds are set out in the notes to the financial statements.

1.5 Incoming resources Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measures reliably, and it is probably that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

15

LEWISHAM NEXUS SERVICE

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

1. ACCOUNTING POLICIES – continued

1.6 Resources expended

Expenditure is recognised on an accruals basis.

Expenditure relating to Supported Housing and Day Services are those elements of expenditure directly incurred in performing these activities.

Support costs represent costs that cannot be directly attributed to charitable activities but are necessarily incurred in the running of the charity.

Governance costs includes those costs incurred in the governance of the charity’s assets and are primarily associated with constitutional and statutory requirements.

1.7 Tangible fixed assets

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Short leasehold improvements over the term of the lease Fixtures, fittings & equipment 25% straight line Motor vehicles Over 7 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and its recognised in net income/(expenditure) for the year.

1.8 Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic financial instruments’ and Section 12 ‘Other financial instruments issues’ of FRS 102 to tall of its financial instruments.

The Charity only has financial asserts 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.

1.9 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

1.10 Employee benefit The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Critical accounting and estimates and judgements In the application of the charity’s accounting policies, trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The trustees are required to make estimates in respect of the provision of dilapidations. The basis of recognition is provided within the accounting policies (policy 1.8).

16

LEWISHAM NEXUS SERVICE

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

2. DONATIONS AND LEGACIES DONATIONS AND LEGACIES Unrestricted Funds
General		 Unrestricted Funds
General
2023 2022
£ £
Donations and grants - 27,655
Government grants – Job Retention Scheme - 32,326
- 59,981
3. CHARITABLE ACTIVITIES Supported housing
and day services
2023 2022
£ £
Supported housing and other services 7,807,620 4,230,742
Analysis by fund
Unrestricted funds – general 7,807,620 4,230,742
4. RESOURCES EXPENDED: CHARITABLE ACTIVITIES
2023 2022
£ £
Supported Housing and day services 6,113,017 4,371,886
Share of support costs (note 5) 1,858,059 84,184
Share of governance costs 132,719 8,750
8,103,795 4,464,820
Analysis by fund
Unrestricted funds – general 8,103,795 4,432,494
Restricted funds - 32,326
8,103,795 4,464,820
5. SUPPORT COSTS Support
Costs		 Governance
Costs		 2023 Support
Costs		 Governance
Costs		 2022
£ £ £ £ £ £
Staff costs 1,858,059 121,719 1,979,778 84,184 - 84,184
Audit fees 11,000 11,000 - 8,750 8,750

17

LEWISHAM NEXUS SERVICE

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

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation
Auditors’ remuneration
Auditors’ remuneration (non-audit work)		 £
5,251
11,000
1,900		 £
20,762
8,750
3,750

7. Trustees

No (2022: nil) Trustees received reimbursed travel expenses during the year (2022: £nil). None of the Directors (or any persons connected with them) received any remuneration or benefits during the year (2022: £Nil). For the purposes of this disclosure, the Directors comprises the board of trustees only, it does not include Senior Management Team.

8. EMPLOYEES
EMPLOYEES
The average monthly number of employees during the year was:
Supported housing and other services
Support staff
Employment costs:
Wages and salaries
Social security costs
Other pension costs
Temporary and agency staff		 2023
Number
202
18		 2022
Number
114
16
220 130
2023
£
5,262,797
502,255
139,826
731,078
6,635,956		 2022
£
3,279,893
198,368
73,430
3,551,691

The senior management team, as listed on page 2 of the Directors’ Report, received total remuneration of £397,885 (2022: £365,162).

2023 2022
Number Number
The number of employees whose annual remuneration was £60,000 or more
were:
£70,000 - £79,999 - -
£80,000 - £89,999 1 1

18

LEWISHAM NEXUS SERVICE

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

9.
TANGIBLE FIXED ASSETS
Short
leasehold
improvements
£
Costs
At 1 April 2022
193,421
Additions
-
Assets taken over
At 31 March 2023
193,421
Depreciation and impairment
At 1 April 2022
137,683
Depreciation charged in the year
500
Taken over
At 31 March 2023
138,183
Carrying amount
At 31 March 2023
55,238
At 31 March 2022
55,738
10.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Other taxation and social security
Accruals and deferred income		 Fixtures,
fittings &
equipment
£
114,033
-









Motor
vehicles
£
38,892
-		 Total
£
346,346
-
114,033
94,175
4,751		 38,892
38,892
-		 346,346
270,750
5,251
98,926
15,107		 38,892
-		 276,001
70,345
19,858 - 75,596
2023
£
1,446,937
15,000
171,726
1,633,663
2023
£
290,731
150,000
136,405
300,818
877,954		 2022
£
831,495
15,000
113,093
959,588
2022
£
210,772
112,487
129,638
690,243
1,143,140

Included within the accruals and deferred income line above is £83,908 (2022: £189,355) of deferred income, relating to services that will be provided in the next financial year.

19

LEWISHAM NEXUS SERVICE

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

12. PROVISION FOR LIABILITIES
PROVISION FOR LIABILITIES 2023 2022
£ £
Provision for dilapidations 100,765 45,000

13. RETIREMENT BENEFIT SCHEMES

The Charity operates defined contribution pension schemes for all qualifying employees with Standard Life. The assets of the scheme are held separately from those of the charity in independently administered funds.162 staff are currently paying into these schemes.

Two Lewisham Nexus Service staff continue to pay into the NHS pension Scheme. Details of the scheme can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensons. The scheme is an unfunded, defined benefit scheme that covers NHS employers, General Practices and other bodies allowed under the direction of the Secretary of State. Eligible employees of Lewisham Nexus Services fall into this latter category.

The latest assessment of the liabilities of the scheme is contained in the Scheme Actuary report which forms part of the annual NHS pension Scheme (England and Wales) Resource Account, published annually. Theses financial statements can be viewed on the NHS Pensions website.

The charge to the profit and loss in respect of the above schemes was £139,826 (2022 - £73,430).

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Designated Unrestricted Designated
funds fund Total Funds fund Total
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Fund balances at 31
March are represented
by:
Tangible assets 70,345 - 70,345 75,596 - 75,596
Current assets/liabilities 1,911,684 - 1,911,684 1,983,517 - 1,983,517
Provisions (100,765) - (100,765) (45,000) - (45,000)
____ ____ ____ ____ ____ ____
1,881,264 - 1,881,264 2,014,113 - 2,014,113

20

LEWISHAM NEXUS SERVICE

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

15. OPERATING LEASE COMMITMENTS 2023 2022
£ £
Within one year 81,576 80,098
Between two and five years 226,526 280,195
____ ____
308,102
____		 360,293
____
16. RELATED PARTY TRANSACTIONS
There were no disclosable related party transactions during the year (2022: none).
17. CASH GENERATED FROM OPERATIONS 2023 2022
£ £
(Deficit) / Surplus for the year (132,849) 1,009,983
Adjustments for:
Investment income recognised in income and expenditure - (89)
Depreciation and impairment of tangible fixed assets 5,251 20,762
Increase in provisions 55,765 -
Movements in working capital:
(Increase)/decrease in debtors (674,075) (593,518)
Increase/(decrease) in creditors (265,186) 931,072
____ ____
Cash generated (absorbed by) operations (1,011,094) 1,368,210

21