Harpenden Mencap Report and Financial Statements for the year ended 31 March 2024 local me cap Harpenden A Company limited by Guarantee Company Number (England & Wales): 02903642 Charity Registration Number: 1035252
Harpenden Mencap local me cap Annual Report and AccoLJnts for the year ended 31 March 2024 Contents Officers and Advisers.. Introdurtion from the Chairman and CEO. Trustee5 Report.......................................................................................................................... . Governance, Structure and Management.............................................................................. . . Objertives and Activities... Risk Approach to Fundraising.........-.....-.....-.............................................................................................. Financial Review........-................-............................................................................................................. Reserves policv................................................................... ......... ... . Related parties.....................-...........-......-.-.-.....-.-....-............................................................................................... Subsequent event...............-........................-.-....-.-.....-.............................................................................................. .. Plans for future periods... Going concern ................................................................................................. Statement of Trustee's responsibilities. Disclosure of information to auditor5... Appointment of Auditors.................................................................................................... .10 Report of the Independent Auditorfs to the Members of Harpenden Mencap................. .11 Statement of Financial Activities....................................................................................................... .14 Balance Sheet........................................................................... 15 Statement of Cash Flows...................................................................... . -16 Notes to the Financial Staternents.. .17 Page I
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 drp¢nd*n Officers and Advisers: Registered Office and operational address Stairway5 19 Douglas Road Harpenden AL5 2EN Company Number IEngland and Walesl.. 02903642 Charity Number.. 1035252 Trustees. Directors & Peter Taylor (Choir) Carolir¢e Rosser-smith fWAce Choir? Nick Latham (Treosurerj Garycaseberry julie Caseberry John Wallace Members of Executive.. Annemari Ottridge (appointed I September2023J Chief Executive Officer.. Angela Duce Head of Finance & Operations.. Sara Ramsey SeTwce Managers.. Leigh Benford.. Residential Claife W41son'. Community Services Bankers.. Triodos Bank UK Ltd Deanery Road Bristol BSI SAS Solicitors.. Taylor Walton TW House Station Approach Harpenden AL5 4SP Independent Auditors.. Miller & Co Chartered Accountants 5 Imperial Court Laporte Way Luton LU4 8FE PatfOn= John Kitching Contact details-. website.. www.harpendenmencap.org.uk email.. office@harpendenmencap.co.uk phone.. 01582 460055 facebook= www.facebook.com/LocalHarpendenMencap/ twitter.. twitter.tom/HarpendenMencap Page 2
Harpenden Mencap me Annual Report and Accounts for the year ended 31 March 2024 Introduction from the Chairman and CEO Our property needs have been very much at the forefront of our minds during this period. The 'My Home Life, project led u5 to seek the views about housing from the people we currently support and those who have expressed an interest in support from Harpenden Mencap. The overwhelming wish was to live in Harpenden in individual or small shared accommodation. We were, therefore. over the moon to be offered 7 new houses for lease from St Albans City and Distrirt Council in the 8atford area of Harpenden. Early in 2025, 16 people will be moving into these amazing properties supported by Harpenden Mencap. We were also fortunate to be able to secure two. 5ingle-occupancy apartments in New Greens, St Albans enabling two people to move into their new home5 durin8 the year. These opportunities have provided the much needed accommodation to allow us to tonsider the future of Staiays on Dtsuglas Road. Whilst it ha5 been the central hub of Harpenden Mencap for many. many years. the ageing building is no longer fit for purpose. This has meant that. as the people we support age. we cannot nece55arsly meet their changing needs. Whilst no decisions have yet been made on the future of the Stairways site, we a continuing to look at the options to provide the most 5U5tainable future for our serwces in the area. ensuring that the people we support have access to appropriate, affordable housing. We are excited to say that our futu services will be predominately supported living with our Residential Care Home being de-registered early in 2025. It is the rising costs of repairs along bwth a reduttion in fundraising income to meet the increase. that have been our greatest challenges throughout the year. An old building such as Stairways has a constant need for repairs. and even though Pine Court is a much newer building. changes in legislation and upgrades has meant that much of our voluntary incorne continues to be invested in maintaining the environments. With this in mind, the period ahead wll involve a mLbch heavier focus on our fundraising activities to IncaSe our voluntary income allowng us to rebuild our reserves and continue to go 'above and beyond, what is prowded through statutory funding. It ha5 been through grant fLtnding over the past year that we have been able to grow our social activitie5 through the Britannia Club, Friendship Groups and more recently, the inauguration of our'Allotment Club,. Our staff. volunteers and trustees work togetherto delbverthe highest qualrtyof services and we remain ever grateful to oyr staff team for their unwavering commitment to the people we support and look forward to an exciting year ahead. Peter Taylor Chair of Trustees Angela Duce Chief Executrve Officer Page 3
Harpenden Mencap local me Annual Report and Accounts for the year ended 31 March 2024 rpend•n Trustees Report The Trustees are pleased to present their combined annual report anil the auditetl atcounts including the Dirertors report for the year ended 31 March 2024 which have been prepared in accordance with the accounting policies set out in the note to these actounts. The Trustees. and Directors of the Company other administrats've details are shown on page 2. Governance, Structure and Management Governance The Charity was founded in 1959. It is a charitable company. limited by guarantee and incorporated on 2 March 1994. We are also a registered charity. The company was established under a Memorandum of Association and Articles. last reviewed in 2012. The Memorandum establishes the powers and objectives of the charitable company and is governed bv the Articles. In the event that the company is wound up the members are required to contribute a maximum of £1. They do not share in any assets if there is a surplus. Harpenden Mencap is a totally self-funded company and rely on our own resources. We are affiliated to Royal Mencap but receive no financial support from them. Structure The Charity has an Executrve Committee. up to 12 members.. details of members in the period are given on Page 2. The Committee meets monthly and is responsible for the strategy and dirertion of the charity. The members of the Executive Committee are Directors of the Company and Trustees of the Charitv. The Executive CommÉttee has overall control of the charity, including the day-tTrday activities although as noted befow. these are delegated. In a(Idition to the strategic input. membefs of the Committee support campaignin& publicity and other actiwties. All members of the committee5 give their time voluntarily and generally receive no benefits from the charity. Tw5tee appointments are confirmed by the fflembers at the Annual General Meeting, including any Trustees co-opted since the previous AGM. Potential trustees a invited to attend Executive Committee meetings orworking party groups before being appointed. On appointment there 15 an induction process including a pack with background information and guidelines on duties and responsibilities, covering both general Charity Commission guidance and items specific to the Charity- Currently there is no fixed term or rotation of Trustees. Members of the Executive Committee have specific areas of expertise and skill set reviews are undertaken to identify strengths and weaknesses as different circumstance5 arise. Management The responsibility for the day to day wnning of the charity is delegated to the Chief Executive Officer ICEOI and Senior Management team. The CEO attends and presents at the Executive Committee meetings. The CEO also liaises regularly with Chair. Treasurer and other members of the Executive Committee. Objectives and Activities Objectives The charl$ objertives set out in the Companrfs Memorandum of Association are= The relief of people with a leaming disability in particular by the provision of help and support for them and their families. dependents and carers. and to prevent learning disabilities for the public benefit. to provide or assist in the provision of facilities for the recreation or leisure time OCCkJpation for people who have need thereof by reason of learning difficulty with the objective of improving their conditions of life.
Harpenden Mencap local me Annual Report and Accounts for the year ended 31 March 2024 Activities H3rpenden Mencap currently runs Residential and Community Support Services from two sites registered with the Care Quality Commission. We prode residential care to ten people at StaiTh¥ays and support to eight tenants at Stairways, and a further eleven tenants at Pine Court within the Community Services provision. together with other people living in their own home5 in the local are3. The last year and looking ahead Harpenden Mencap has a strong legacy that is chararterised by collaboration, ambition, responsiveness and empowerment, values that underpin everything that we do. Harpenden Mencap has always sought to go 'above and beyond. for the people we support, ensuring that everyone receives the care and support they need to live a full and active life as citizens of the local community. With the aid of voluntary income. throughout the yearwe ran two projects to gauge the wants and needs of adults wth learning disabilities in the local area. One was focused on supporting people with 'occupation' looking at their dreams and aspirations. and the other. 'My Home Life. looked at where and how people wanted to live. The latter project has informed our efforts to acquire new, more independent housingfor people who currently reside at Stairways and will underpin our accommodation Strategy. Whilst the number of beneficiaries in our accommodation-based services remained static. our social ctivities have grown significantly over the year. Our long-standing 8ritannia Club joined forces with Harpenden Gateway to enable the club to run every week. With a move to new premises Wlth the Harpenden Trust. the club has gone from strength to strength providing a valuable resource to local adults to prevent isolation and promote confidence. Thi5 ha5 3150 extended to include friendship group meetings and an allotment club to aid the development of social skills and active citizenship. Property and accommodation update s highlighted in previous reports. the Stairways building no longer hjlly meets the changing needs of all residents and tenants, leading us to seek alternative accommodation. We are now in advanced negotiations to atquire leasehold premises in Harpenden, which would provide housing for up to 16 residents. We anticipate completing the relocation in early 2025. contingent on finalising the lease. Two tenants have already successfully relocated to a property in north St Albans. Following this progress. the Trustees have initiated a review of potents'al future uses for the Stairways 51te on Dou8la5 Road. This review will consider various Options to ensure the 51te'5 use align5 Wlth our charitable objectives and represents the best use of our resources. We will provide further information as these plans develop. We recognise that we have been unable to provide accommodation for some residents with more profound needs. This has reinforced the importance of considering inclusion of such facilities in our future plans and will be a key element of our long-terni property strategy. Key attivities Our fundraising has remained much reduced throughout the year as we were unable to recruit a professional fundraiser to support our efforts. However, we were fortunate enough to be the Mayor of Harpenden's charity of the year and benefited from her fundraising activities including the popular Carol Concert in the centre of Harpenden. In addition, the on'5 Cltlb of Harpenden named Harpenden Mencap as a beneficiary of the Highland Gatherin8. We thank the Mayor. Harpenden Lions and the local community for continuing to think of Harpenden Mencap and for offerrng vital support during these challenging, financial times. During the year we continued to improve our services and our efficiency bv.. Continuing the role out our'Going Digital. strategv,. Migrating our server5 to the 'Cloud' to provide more resilien. Outsourcing our Payroll to an external provider and providing staff with instant access to pay inforniation. Making improvements to our properties including essential large repairs. Adapting a flat and providing the equipment to meet the changing nee¢Js of the tenant;
Harpenden Mencap me Annual Report and Accounts for the year ended 31 March 2024 .rpndh Jpport people to go on holiday and to access Other social activbties. Risk The Executive Committee has conducted a review of the major risks to which the charity is exposed. A dynamic risk register is in place and is regularly updated. Where appropriate. systems and prcKedure5 have been established to mitigate the risks the charity faces. Principal risks What the risks mean How we manage the risks Recruitment and retention of It is widely publicised that there is a staffing issue We continue to employ ègency staff to Care and Support staff across the social services sector and Harpenden ensure the provision of commissioned Mencap immune to this. We have a history of hours to the people we support. An retaining staff for a long period of time. it has ongoing cruitment campaign become difficult to recfult to replace staff. underway to boost our number of bank staff but also to encourage staff to take full-time contracts. Loss of earned income A lot of our existing service prowsion is based on We have to minimise the level of fixed the number of current SeiCe users. We can costs. although not always within our increase the level of support relatively quickly if control. dema1 increases but it is hafderto reactto aloss We also have to maintain a sufficient level of income, especially where fixed costs haveto be of reserves and cash resources to cover absorbed amongst fewer user extende(I periods of depleted income. Loss of fundraising income Fundraising income is used to support our The Trustees reviewed the fvndraising charitable objettives and allows us to go the extra strategy, including investing in additional mile to support our residents and clients. resour5 to support the fundraising If this fundraising fails to materialise this effort. enhanced provision would be curtailed We continue to re-engage with our existing donors and are extending our list of contacts and fundraising opportunities. A dedicated fundraising resource will be put in place in 2025 Property not being fit for purpose If any of our properties became unfit for purpose In the short term we adopted a reactive we would, at worst tase, have to relocate our maintenance and repair programme. residents, p055ibly to other Service pioviders. As noted elsewhere we are in an advance stage of negotiations for a short term leasehold and are reviewing our options for the site in Dougla5 Road and other opportunities. Significant extemal risk5 to funding have led to the development of a strategic plan which will allow for the diversification of funding and activities. Internal control risk5 are minFmi5ed by the implementatiorl of pr¢xedure5 for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff. volunteers. residents and visitors. These procedures are reviewed periodically to ensure that they continue to rneet the needs of the charity-
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 Approach to Fundraising We are extremely grateful to those who have contributed to the Charity, including legacies and participating in our annual golf day. It is these funds that enable us to go above and beyond Fn the service we offer to our residents. Fundraising is essential to help us to ensure the people who use our service5 can achieve their aspirations and expand our 5ervites, supporting even more people. Since the pandemic we have had difficulties in recruiting a dedicated fundraiser bLrt have rW made an appointment who will be in post in early 2025. The three main Strands of our fundraising will . funding for specific activities. including employment opportunities and our outreath serwces contributions towards our property development aspirations nd. most important, but generally the hardest to achieve is funding for core activities and overheads We have bold plans to move our tenants and residerbts to new accommodation in the local area which will enable us to expand and develop our services. To deliver these plan5. we are reliant on additional income generated through fundraising. We have been lucky to rece?ve generous donations in the past, however. we are now particularly reliant on donations secured through proactive fundraising. We have reviewed our historic fundraising performance. understood our strengths and weaknesses, opportunities and threats, benchmarked our performance against similar organisations and reviewed our current fundraising offer. and the case for support and resources. With this in mind, we aim to relaunch our fvndraising strategy to achieve a significant increase in our voluntary income over the next two years. There are many ways to support Harpenden Mencap. W151t our website to learn more about volunteerin& donatlll& Of sponsoring our event Financial Review Income Income in the year under review showed a reduction of £47k to £2,463k12023.. É2,5101. With the end of Covid funding and the closure of the shop last year. there has been no income from these revenue Streams which petered out last year1£4k and £19k re5pectivelyl. Fundraising income remained 5t3tic at £llk12023'. £IOkl. Fundraising continued to be a struggle and our income was significantly below prtrcowd achievements. We are grateful to all the donors who have contributed to the tharity. What you tontribute is what allows us to go that bit further to help our Service users. Expenditure Total expenditure decreased by £194K to £2,506k12023= £2,7001. This was primarily due tothe closure of the shop and a redundancy payment in the prior year Net surplus and cash balance Overall there was aloss in the year of £43K12023.. deficit £190kl. The charitable artimties. being the core business providing residential services and Community Support, returned a deficit of £94k12023.' £13231kl. This includes a vacancy in Flat 2 which is difficult to fill as it is an upstairs room in residential care. The cash balance at 31 March 2024 was £499k12023.. £607kl.
Harpenden Mencap local me Annual Report and Accounts for the year ended 31 March 2024 .Jrpenden Reserves policy The Executive Committee have assessed that the free reserve requirement is £500k to cover working capital requirements and potential fluctuations in earned and donated income and hawng regard to prevailing conditions. Given the tjncertainty relating to future economic conditions and potential higher cost inflation than has been the case in recent time5, we need to maintain our reserves at the highest level to cover potential net outhows in the foreseeable future. The overall reserves at 31 March 2024 were £2.75lk of which £57k was restricted. The unrestricted reserves. amounted to £2,694k.. £'ooo fixed assets. less the associated property mortgage designated funds free reserves 2.351 343 The Trustees agreed to lift the designation of funds from previous years as part of the project to look afresh at the property and business model. making best use of the charity assets and funds. There is a deficit on free reseNes of £157k12023.. deficit £241kl compared tothe assessed requirement of our reserves policy 1£500kl. This is due to using reserves this year to support the Charities operations. The Charity will seek to replenish theses reserves in future years. Staff The Trustees would like to thank all members of the staff, whether front line or support, as well as the senior management team. for an incredible contribution and support throughout the year. Related parties There were rto related partytransactions in this year. In the prior year, to cover for the absence of critical staff members during a 4 month period. one of our Trustees, Nick Latharn, provided finance and support services through a company of which he is a Direttor and shareholder. The total amount paid was £11.041. Subsequent event Following the year end, an opportunity arose for the charity to relocate the residents at the Stairway5 site. which is no longer considered fit for purpose. We are in advance stages of seturing new leasehold accommodation and are hoping to vacate the Stairways building in the first quarter of 2025 The Trustee5 are in the process of evalLtating the options available for the site to make best use of the chariws asset5 and resources for the benefit of those we support. Plans for future periods We have four main ambitions going forward= to develop the range and quality of our services through cdlaboration with the people we support. their families and the community- to prowde modern, sustainable. and innovative housing solutions to enable every local person with a learning disability to receive the support of Harpenden Mencap if they wish- promote knowle(18e and change in the local community through effective marketin& lobbying and education,. develop ar¢d strengthen the support network we have with supporters. donors, families, and the community.
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 Going concern The Trustees have a duty to ensure that when presenting this report that the charity will be in a position to continue its activities and meet its liabilities for at least the next 12 months. The Executive Committee frequently confer wbth the CEO and Management team on current events and future projections and the impart on the future of the company. An annual budget is prepared, and regular forecast updates for the current year and future periods are reviewed by the Executive Committee. Our current projections show that the charrty is expected to be able to meet its liabilities as they fall due for the foreseeable future. After careful consideration of these factors. the trustees have concluded that the going concern basis of preparation is appropriate. Statement of Trustee's responsi bilities The Executive Committee Members as Directors and Trustees are responsible for preparing the Annual Report and the Accounts in accordance with applicable low and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practicel. Company law applicable to charities in England & Wales requires the Trustees to prepare accounts for each financial year which give a true and fair wew of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period including expenses of the charitable company for that period. In preparing these accounts. the Trustee is required to= select suitable accounting policies and then apply them con51Stently observe the methods and principles in the Charities SORP 2019 IFRS1021 make judgments and accounting estimates that are reasonable and prudent stste whether applicable UK accounting standards have been followed, subjert to any material departures disclosed and explained in the atcounts prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Executive Committee Members are respon5iblefor keeping proper accounting records which disc105e with reasonable acturacy at anytime the financial position of the charity and enable them to ensure that the accounts 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. The Executive Committee confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have regard to the guidance published by the Charity Commission. including public benefit gLtidance. Disclosure of information to The trustees confimi that so far as they are aware.. there 15 no relevant audit information las defined by section 418131 of the Companies Act 20061 of which the charitable company's auditors are unaware,. and they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevarrt audit Information and to establish that the charitsble company's auditors are aware of that information auditors
Harpenden Mencap l¢xal me Annual Report and Accounts for the year ended 31 Marth 2024 14rrpenden Appointment of Auditors A resolution proposing that Miller& Co of Luton and Harpenden afe re-appointed will be putto theAnnual General Meeting. This report has been ppared in accordance with the Statement of Recommended Practice- Accounting and Reporting by Charitie5 and in actordante with the special provisions of Part 15 of the Companies Act 2006 relating to Small entities. This report was approved by the Trustees. Signed on their behalf on 23 December 2024 by.. Peter Taylor Chairman of Executive Committee & Trustee Nid( Latham Member of the Executive Committee & Trustee
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 Hoypeoden Report of the Independent Auditor's to the Members of Harpenden Mencap Opinion We have audited the financtal statements of Harpenden Mencap (the 'choritsble companll for the year ended 31 March 2024 which comprise the Statement of Financial Actiwties, Balance Sheet. Statement of Cashflows and Notes to the Financial Statements. including significant accounting policies. The financial reporting framework that has been applied in their prepaTation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Finonciol Reporting Stondord opplicoble irt the UK ond Republic of irelond Iunited Kingdom Generally Accepted Accounting Prarticel. In our opinion the financial statements.. give a true and fair view of the state of the charitable companrfs affairs as at 31 March 2024, 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 Practiee,. antl have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We Conducted our audit in accordance wtth Intemational Standard5 on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those 5tandard5 arefurther described in the auditoriespon5ibilities forthe audit of thefinancial statements section of our report. We are independent of the charitsble company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRCS Ethical Standard. and we have fulfilled our other ethical re5pon5ibilities in atcordance with these requirements. We believe that the audit evidence we have obtained 15 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 conrn 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 re5ating to events or conditions that, individually or collectively. may cast significant doubt on the charitable company'5 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 trustee5 Wlth respect to going concern are described ITI the relevant sections of this report. Other information The other information comprises the information included in the Trustees, Report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other 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 incon51Stent 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, baseil on the work we have performed. we conclude that there 15 a material misstatement of this othef information. we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information ven in the trustees. report, which includes the directors. port prepared for the purposes of company law. for the financial year for which the finantial statements are prepared is consistent with the financial statements,. and
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 HDrwdeD the directors. report included within the trustees. report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knO%edge 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 included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2CK16 requires us to report to you if, in our opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been recetved from branches not visited by us; or the financial statements are not In agreement with the accounting records and returns" or certain disclosures of trustees. remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit" or the Irustees were not entitled to prepare the financial statements in accordance with the small companies. fegime and take advantage of the small companies, exemptions in preparing the directors. report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the trustees, responsibilities rtatement set out on page 7 the trustees (who are also the directors of the charitable companyforthe purposes of Company lawl are spOnSible 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 preparatitsn 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 companrf5 ability to continue a5 a going concern, disclosing, a5 applicable. matters related to going concern and using the going concern basis of accounting unle55 the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Aud itor responsi bilities for the audit of the f inancial statement5 Our objectives are to obtain reasonable assurance about whether the Pinancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorf5 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 ISA5 IUKI will always detect a material misstatement when it exists. Misstatement5 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 instsnces of non-complianee with laws an(1 regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities. including fraud. Because of the inhereni limitations of an audiL there ts a risk that we will not detert all irregularities. including those leading to a material misstatement in the financial ststements or non-compliance with regulation. This risk increases the more that compliance with a law Of 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 15 also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery. collusion. omission or misrepresentation. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below.. We identify and assess the ri5k5 of material misstatement of the financial statements, whether due to fraud or error. and then design and perform audit procedures responsive to these risks. including obtaining aLtdit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifying and assessing potential risks related to irregularities In identifying and a55essiftg risks of material misstatement in respect of irregularities. including fraud and non-compliance with laws and regulations. we considered the following.. - the nature of the industry, control environment and business performance.
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 Hqrwdeft the results of OLbr enquiries of management about their own identification and assessments of the risks of irregularities,. - any matters we identified having obtained and reeWed the company's policies and procedures relating to.. identifying, evaluating and complyingwith laws and regulations and whether they were aware of any instances of non- compliance- detecting and responding to the risks of fraud and whether they have knowledge of any actual. suspected. or alleged fraud- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statement5 and any potential indicators of fraud. In common with all audits under ISAS IUKI we are also required to perform specific procedures to respond to the risk of rnanagement override. We also obtained an understanding of the legal and regL¢latory framework that the company operates in. focusing on provisions of those13ws and regulations that had a direct effect on the detemiination of material amounts and disclosures in the financial statements. such as the Companies Act 2006. In addition, we considered the prowsions of othef laws and regulationsthèt do not have a directeffect on thefit)ancial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. Audit re5pon5e to risk identified. Our procedures to respond to risks identified included the following.. Remewing the financial statement disclosures to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements- Performing analytical procedures to identrfy any unusual or unexpected relationships that may indicate material misstatement due to fraud.. In addressing the risk of fraud through management override of controls. the testing of the appropriateness of journal entries and other a¢Jiustment5 and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of bu5iness_ We also communicated relevant identified 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. A further deseription of our responsibilities is available on the FRCS website at= WWV4.fic.or auditorsres This description forms part of our auditorfs report. Use of our report Thi5 report ts 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 auditorfs 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'5 member5 as a body, for our audit work. for this report. or for the opinions we have fomied. R A Cox Isenior Statutory Auditor) For and on behalf of Miller & Co Statutory Auditors Chartered Accountants 5 Imperial Court Laporte Way Luton. Bedfordshire LU4 8FE 23 2èU4
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 r.'irpettd¢n Statement of Financial Activities Ilncluding Income and Expenditure Account) Unrestricted Restrirted Total Total Funds Funds Funds Funds 2024 2023 Notes Income: Oonations and legacie5 Charitsble Activities Other trading activities Fundraising income Investment income.. bank interest 20,731 2.405,920 12.152 32,883 2,405,920 205,341 2.269,868 19.214 10,388 5,244 11.438 13,146 11,438 13.146 Total Income 2,451,235 12,152 2.463.387 2,510,055 Expenditure: Charitable artivities Other trading artivities Fundraising costs 2,461.713 37,989 2.499.702 2,592,711 91,433 15,663 6.364 6.364 Total Expenditure 2.468.077 37,989 2.506.066 2.699,807 Net Income/lExpenditurel before transfer5 Transfers between funds 116,8421 125.8371 142,6791 1189.7521 18 Net movement in funds for the year 116.8421 125.8371 142.6791 1189,7521 Total Funds at l April 2023 2,710,722 83.429 2,794.151 2,983,903 Total funds at 31 March 2024 2.693.880 57,592 2.751.472 2,794,151 All income and expenditure derive from continuing activitie5. The Statement of Financlal Activities includes all gains and 1055es recognised in the year. The notes on pages 17 to 25 form part of these financial statements.
Harpenden Mencap locol me Annual Report and Actounts for the year ended 31 March 2024 Balance Sheet Total 2024 Total Notes 2023 Fixed assets: Freehold property Other tangible fixed assets Total Fixed Assets 12 13 3.187.330 49.115 3.236.445 3.187.330 45,428 3,232.758 Current Assets Debtors and prepayments Cash at bank and in hand 14 72.455 499,944 572,399 77,283 606,528 683,811 Creditors Amounts falling due within one year 15 {217,4701 1248,8131 Net Current Assets 354.929 434,998 Creditors Amounts falling due after more than one year 16 1839,9021 1873.60SI Total Net Assets 2.751.472 2,794.151 The Charity Funds Unrestricted funds Designated funds Total unrestricted funds Restricted funds 17 2,693,880 2,573,006 137,716 2.710.722 83,429 2.693.880 57.592 Total Charity Funds 2.751,472 2,794,151 The Financial Statements which have been prepared in accordance with the special provisions relating to the small companies regime within Part IS of the Companies Act 2006 were approved and authorised for issue by the Board on-. 23 December 2024 Signed on behalf of the Board of Directors by- Peter Taylor Chairman of Executive Committee & Trustee Nick Latham Member of Executive Committee Treasurer & Trustee The notes on pages 17 to 25 form part of these financial statements
Harpenden Mencap local me Annual Report and Accounts for the year ended 31 March 2024 1 14rp¢ndtn Statement of Cash Flows 2024 2023 Reconciliation of net income to net cash flow from operating athtties: Net income/lexpenditurel for year Investment income 142,6791 113.1461 30.654 1189.7521 15,2441 34,862 3.269 Depreciation on tangible a55et5 Loss on sale of asset5 305 IincreasellDecrease in debtors Increase/lDecreasel in creditors Increase/lDecreasel in deferied income Net cash louthowllinflow from operating artivities 4,828 132,1871 695 434,559 42,730 4,373 324,797 151.5301 Cash flows from investing acliNlltie5: Investment income 13,146 134.6461 121,5001 5.244 115,1941 19,9501 Purchase of tangible fixed assets Net cash labsort)edl by investing attivities Cash flow5 from Financing activities Repayment of loan Net cash absorbed in financing artivities 133,5541 133,5541 148.4361 148.4361 Change in cash or ¢ash equivalents in the reporting period 1106,5841 266.411 Cash and cash equivalents at 31 March 2023 606.528 340,117 Cash and cash equivalents at 31 Marth 2024 499,944 606,528 Analysis of changes in net debt At 31 Marth Cash At 31 Marth 2023 Flow 2024 Cash- at bank and in hand 340.117 1967.2671 159,877 81.990 499,994 1885,2771 Debt: Secured bank loan Total 1627.1501 241,867 1385,2831
Harpenden Mencap local me Annual Report and Accounts for the year ended 31 March 2024 Notes to the Financial Statements l. Accounting Policies {al Basis of accounting Harper5den Mencap is a private company limited by guarantee registered in England and Wales. The charitable company constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stand8rd applicable in the UK and Republic of Ireland issued in October 2019, the Financial Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in pounds sterling which is the functional currency of the charitable company and are rounded to the nearest pound. Ib} Fund accountin8 Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Designated funds are unrestrirted funds earniarked by the Executive Committee for partitular purposes. Restricted funds are subjected to restriction5 on their expendTrture imposed by the donor or through the terms of an appeal. Details of the nature and purpose of each fund are set out in notes 17 and 18. 1¢) Fixed assets Fixed assets are stated at cost less accumulated depreciation. The costs of minor additions or those costing below £300 are not capitalised. Depreciation is provided at rates calculated to write off the cost of fixed assets less their estimated residual value. over their expected useful lives on the following basis.. Freehold land Freehold buildings Vehicles, furniture, and equtpment 25%_33 113% on c05t Idl Income All incoming resources are included in the Statement of Financial Activities when the Charity is entitled to the income and the amount can be quantified with reasonable acevracy. The following specific policies are applied to particular categories of income.. charge5 for residents are include¢J in the financial statements on the basi5 of amounts receivable in the year. Donations. Subscriptions. Charity shop and other fundraising income is accounted for as received by the Charity- Legacies are included when the Charity is advised by the personal representstive of an estate that payment will be made and the amount involved can be quantified. clothing and othei items donated for resale through the Charity Shop are include(l as incoming resources within attivities for generating funds when they are 501d. investment income is included when receivable. the value of services provided by volunteers h3s not been included in these accounts.
Harpenden Mencap local me Annual Report and Atcounts for the year ended 31 March 2024 cap lel Expenditure Expenditure is recognised on an accruals basisas liability is incurred. Expenditure includesanyVATwhich cannot be fully recovered, and is reported as part of the expenditure to which it relates- Fundraising cost5 comprise the cost assoaated with attratting voluntary income. lel Expenditure Icontinuedl Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to 5UPPOrt them. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to the strategic management of the Charity. All costs are allocated betsveen the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular aCtIty are allocated dirertly, others where material, are apportioned on an appropriate bases, comprising per capita and estimated usage. In Debtor5 and creditors receivablelpayable within one year Debtors and creditors with no stated interest rate and receivable and payable within one year a recorded at transaction price. Igl Penslons The Charity provides a defined contribution personal pension scheme arrangement for its employee5. The pension charge in the accounts represents the amounts payable by the charity to the funds in respect of the year for employee members. Ihl Operating Leases Rentals applicable to operating leases where substantially all of the benefits and risk of ownership remain with the lessor are charged to the accounts as incurred. lil FFnancial Instruments The charity only has financial assets and liabilrtie5 of a kind that qualify as basic financial instfuments. Basic financial Instruments are initially recognised at transaction value and subsequently measured at their settlement value. til Tax The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the test5 set out in paragraph I Schedule 6 Finance Act 2010 therefore it meets the definition of a charitsble company for UK Corporation tax purposes. Ik) Going Concern The financial statement5 have been prepared on a going toncern basis as the trustees believe that no material tjncertainties exist. except as disclosed below. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial ststements. The budgeted income and expenditu is sufficient with the levels of reserves for the charity to be able to continue as a going concern. 111 Judgements and the key sources of estimation uncertainty Preparation of the financial statements requires management to make significant judgements in applying the accounting policies of the charitable company and estimates and assumptions that have significant effect on the recognition and measurement of assets, liabilities. income. and expenses. Actual results may be different to those estimates.
Harpenden Mencap local me Annual Report and Accounts for the year ended 31 March 2024 klorp¢Thl Im) Government Grants Income from Government grants is recognised in the period for which they are received. Donations and legacies Unrestricted Restiicted 2024 2023 Donations Legacies Subscriptions Grants 20.376 8.152 28.528 45,271 125,276 380 355 355 34,414 Other 20.731 12.152 32.883 205,341 Out of total funds last year of £205.341. restricted funds totalled £55,103. 3. Charitable Activities Unrestricted Restricted 2024 2023 Incoming Resources From Public Authorities Grants and government pandemic support Rental income Fee5 for using facilities and seNces Total services income 2.015,756 2.015,756 1,897,007 290 290 3,511 341,935 47.939 341,935 47.939 317,549 51,801 2,405,920 2,405,920 2,269.868 Charitable activithes costs Staff Costs 1.952.779 30.654 25.620 1,978.399 30,654 65.397 414.105 11,147 2,499.702 2.108,531 34.317 Depreciation Secured Loan Interest payable Other direct costs 65,397 405.778 43,441 394.962 11,460 8.327 Governance costs 11,147 2.465.755 33,947 2,592,711 Net deficit on charitable activities 159,8351 133,9471 193.7821 1322,8431 Out of total funds last year of £322.843, £4,792 relate to restrirted funds.
Harpenden Mencap local me Annual Report and Accounts for the year ended 31 March 2024 '. I IrpeTrd* 4. Other Trading Activities Unrestricted Restricted 2024 2024 Shop.. income Grants and government pandemic support Total income 19.214 19,214 Shop expenditure- Staff costs 141.9521 149.4811 172,2191 Other Net deficit on other trading activities 5. Fundraising activities Unrestricted Restricted 2024 2023 Income 11.438 11.438 16.3641 5.074 10.388 115.6631 15,2751 Expenditure 16,3641 5.074 6. Governance costs 2024 2023 Professional fees- Auditorfs femuneration 6.020 4.560 5,640 A(Iministrative salarres 4,560 1,093 Insurance- Trustee indemnity Other 567 167 11,147 11,460
Harpenden Mencap local me Annijal Report and Accounts for the year ended 31 March 2024 7. Net Income/Expenditure Net IncomellExpenditurel in the year is stated after creditinyj Icharging).. ZOZ4 2023 Note Pandemic related support Staff costs 3.511 12,155.0421 15,6401 134,8621 (1.982,9581 16,0201 130,6541 Auditorfs remuneration Deprecsation Non-audit services.. In common with manyother businesses of our size and nature we use our auditors to assist us with the provision of other services from time to time. During the year ended 31st March 2024 no other services were provided. 8. Pandemic related support Pandemic related sUPPOrt Grants Cost recovery 2024 2023 Hertfordshire County Council IHCCI.. Grants towards costs of infertion control 3,511 3,511 The Grants from HCC are towards costs of staff diverted from their normal dLrties to combat the pandemic and deal with covid related issues. The cost recovery was in respect of specific additional costs incurred because of the pandemic. 9. Staff costs 2024 2023 Salaries 1.533,606 124,681 63286 1.554,990 Social security c05tS Employer contributions to pension scheme5 Redundancy costs Other employment Costs Total employment costs Agency costs 139,853 69.243 55.687 32,275 1,721.573 261.385 1.982.958 1.852.048 302,994 2,155,042 Total emoluments of £310,19012023.. £300,4101 We paid to 6 key management personnel. One employee received emoluments of between £70.000 and £80,00012023'. one employee between £70.IJ)O and £80.(WI. No emoluments were paid to Trustee$12023..nill.
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 Horpty¥n The charity provides a defined contribution pension arrangement for its eligible employees. The pension contributions made in the vear, disclosed above, are in respect of 7112023-721 employees. The average full-time equivalent monthly number of employees was= Staff numbers 2024 2023 Support Services Administration 56 53 61 10. Trustee Remuneration & Related Party Transactions No member of the Executive Committee received any remuneration for this year for their services as a Trustee. and no relevant expenses We reimbursed to Trustees for this year. In the prior year, Nick Latham provided financial support semces in the period from November to March. The total paid under thi5 Colltract was £11.041. 11. Taxation The Charity is exempt from tax on income and gains falling within Section 505 of the Taxes Art 1988 or sectbon 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied in furtherance of its charitable objects. No charge5 to taxation have arisen on the charity in the year. 12023- none) 12. Freehold Property 2024 2023 Cost.. Pine Court 2,f4)8,309 579.021 2.608,309 Stairways 579,021 3.187,330 3.187,330 Freehold Property: 'Pine Courv The freehold property known as 'Pine Court, is situated in Carlton Road. Harpenden. The building is wholly used for charitable purposes and is held to provide services to the charl5 beneficiaries. Accordingly. the value in use comprises the present value of the assevs service potential which is best represented by depreciated replacement cost. This is greater than the actual cost which therefore remains the appropriate carrying value in the accounts and. accordingly. no depreciation is required in accordance with accounting policy Ic. Freehold Property: 'Stairways' The freehold property, known as 'Stairways' 15 Sltuate¢J in Douglas Road, Harpenden. The building is mainly used for charitable purposes and 15 held to provide services to the charitrfs beneficiaries. Given that the indicative current market value of the propertv and, accordingly, the probable residual value is in excess of £3.000,000 the appropriate carrying value in the accounts remains cost and no depreciation is required in accordance with accounting policy Ic. The application of the buildings depreciation policy Ic ts reviewed annually by the Executive Committee and depreciation will be provided for at the point in time when amortisation of cost is recogni5ed as being required.
Harpenden Mencap me Annual Report and Accounts for the year ended 31 March 2024 orpend 13. Other Tangible Fixed Assets Furniture & equipment: Propertv Motor office Vehides Total Cost At l April 2023 Additions 359.999 87.409 22.90S 470,313 33,363 14.8261 1,283 34,646 14,8261 Oisposals At 31 March 2024 388,536 88,692 22,905 500,133 Depreoation At l Apnl 2023 Charge for year Disposals At 31 March 2024 332.825 69.155 22,905 424,885 30,654 14.5211 451,018 20,275 14.5211 10,379 348.579 79.534 22.905 Net book value.. At 31 Marth 2024 39,957 9,158 49.115 At 31 March 2023 27.174 18,254 45,428 The property and office fvrniture and equipment and the motor vehicles are all used wholly for charitable pUoses. 14. Debtors 2024 2023 Residents. charges invoiced Other debtors 3096 47.980 5.441 33,096 37.746 Prepayments 20,579 72.455 77,283 15. Creditors: amounts falling due within one year 2024 2023 Note Bank loan repayable within one year Trade & other creditors 16 45.375 45,226 84,411 36,357 5,068 46,258 78.643 Social Security and other taxes Deferred income 52.998 4,373 67,573 Accruals 217,469 248.813
Harpenden Mencap local me Annual Report and Accounts for the year ended 31 March 2024 Hrpenden 16. Creditors: amounts falling due after more than one year 2024 2023 Bank Loan repayable after more than l year: 839,902 873,605 The bank loan is a non-residential mortgage agreement with the Charity's bankers Triodos Bank UK Itd, for a total sum of £1,400,000, which wa5 raised to part finance the purchase and con5truttion of Pine Court. Cadton Road. Harpenden Isee note 121. At the balance sheet date the loan is secured on the Charitys freehold property'stairways. and comprised approximately 35% of its estimated market value. The loan is repayable in monthly in5talments over 24 years commencing luty 2012. with interest charged at base rate plus 2.25% with a minimum rate of 3.5%. 17. Analysis of Net Assets Between Funds Unrestricted Aestrirted Total Funds Fund Funds Tangible fixed assets Investment properties Current assetslliabilities Long term liabilities Total net asset5 32.755 16,360 49.115 3,187.330 3,169,566 331,461 1839,9021 2,693.880 17,763 23,468 354,929 1839,90ZI Z.751,472 57,592 18. Movements In Funds l April 2023 Income Expenditure Transfers 31 March 2024 Unrestrlrted funds: General fund 2,573,006 2,451,235 12,468,077) 137,716 2,693,880 Designated funds.. 8uilding Major Building Repairs Total unrestricted funds 101,289 1101.2891 136,4271 36,427 2,710,722 2A51.235 12.468.077) 2,693,880 Restrirted funds: Building Employment Projects Amenities 19.044 1.720 ii.(K)01 124.6751 112,3141 137.9891 18,764 33.414 8.739 30,971 11,432 30,089 Total restricted funds 83,429 13.152 57,592 Total Funds 2.794.151 2,464,387 {2,699.807) 2.751.472
Harpenden Mencap local me cap Annual Report and Accounts for the year ended 31 March 2024 Aurp¢nd•rt The description of the fund types is covered in the Accounting Policies (Note 11. The specificfund5 held by the charity are.. General Fund: The unrestricted and general fund is available for tAse in fulfilling the general objects of the charity. At 31 March 2024 the general fund balance available was £2.693.880, of which £2,351,168 ha5 been used to acquire functional fixed a55ets. The remaining balance of £342.712 is available to be applied towards meeting the charity's currentlv assessed feserve requirement of at least £500.000. The Executive Committee continue to monitor both the reserves level requsrement and the funds available in the current year. The Trustees agreed to lift the designation of funds from previoLts years as part of the project to look afresh at the property and business model, making best use of the charity assets and funds. Restricted funds: Building Fund donations and other monies received towards the upkeep and renewal of the buildings. as specified by the donors. Employment project grants received towards projects involving employment opportunities. Amenities donations towards items used to bmprove the lives of residents. 19. Other Commitments As at 31 March 2024 the charity had no capital commitments12023-£nill. However. there were financial commitments under non- cancellable operating leases and agreements as follows.. Land and Buildings.. 2024 Other equipment and agreements 2024 2023 2023 Expiry date '. less than l year between one and five years after more than five years 358 648 627 1,015 At 31 March 2024. the Charity had a building rna1ntenan contract with a 6-month cancellation clause. The financial commitment under the terms of this contract at 31 March 2024 is £36.CKJ312023 £36.31. 20. Post Balance Sheet Events As noted in the Trustees report the Charity is in the process of closing its Stairways site and rlOcatIng the residents to alternative accommodation. This process is expected to be completed by April 2025. The Trustees are still in the process of evaluating the future options available for the soon-to-be vacant Stairways site.