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2022-09-30-accounts

Charity registration number 1040583

Company registration number 02944546 (England and Wales)

CROSSROADS CARE STAFFORDSHIRE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

CROSSROADS CARE STAFFORDSHIRE LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs Ann Flevill
Mrs Susan Brookes
Mrs Rita Godwin
Mr Richard Lamb
Mr Ian Milne
Mrs Carol Moreton
Mrs Diane Hall
Mrs Susan Tams
Charity number 1040583
Company number 02944546
Registered office Environment House, Werrington Road,
Bucknall
Stoke-on-Trent
Staffordshire
England
ST2 9AF

CROSSROADS CARE STAFFORDSHIRE LIMITED

CONTENTS

Page
Trustees' report 1 - 8
Independent auditor's report 9 - 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 24

CROSSROADS CARE STAFFORDSHIRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2022

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006 present their report with the financial statements of the charity for the twelve month period 1st October 2021 to 30th September 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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 2019)".

OBJECTIVES AND ACTIVITIES

Crossroads Care Staffordshire’s fundamental purpose continues to be “to relieve, within the boundaries of Staffordshire, the stresses experienced by carers and people with any physical, mental or sensory impairment within the family or home by offering a respite service through the provision of community-based care attendants.” Despite the reduction nationally in the number of care support workers we still aim to provide highquality care at a realistic cost and occasionally at no cost whatsoever when clients are in financial need. Our annual survey of carers contains many positive comments, showing that we are fulfilling these objectives by supporting the innumerable unpaid carers, whether they are family, friends, neighbours, children, or adults, who, often with no initial training, find themselves in a nursing role.

Although it would seem that the worst of the global pandemic is over, the past year has not been without its problems, as some of the people we care for and their carers have been unable to afford to pay for care because of the increased cost of living and thus it has not proved possible to increase the number of clientvisits and hours delivered by about 2% annually, as we would hope. However, we have delivered 47,106 hours in the year to 30[th] September 2022, only marginally fewer than the 48,252 delivered last year.

The Palliative Care Service provides home-based care to support carers of adults and children with a terminal illness. Crossroads is one of the few specialist providers of end-of-life care in the area and works alongside other care Agencies and hospices, such as The Douglas Macmillan Hospice and Marie Curie Charity. We continue to tender for local palliative care packages, resulting in some of our care support workers undertaking “night sits” which give the family carers a chance to recharge their batteries with an undisturbed night’s sleep.

The Children and Young People’s Service, which covers the age range from new-born babies to those aged up to twenty-five, has continued to adapt to the new circumstances. Excursions such as day trips, bowling, swimming and cinema visits have resumed with our 48 children and young people clients. We also continue to support them under the Aiming High life skills budget, although we are no longer an Aiming High provider as the local budget has been severely reduced.

At Christmas 2022, one of our sponsors, Nutribox, delivered meals to 17 families. At Easter 2022 one of our care support workers organised a raffle (providing all the prizes at her own expense) which raised £288.

Our administrative staff have changed their working practices and adopted a “hybrid-work” scheme between the home/office and the community with a minimum of one office day weekly with one specific member of staff in the office full-time. We are able to do this because of our updated telephone system and i-care facility. We now rent three rooms in a modern building, which has occasioned considerable savings in our overheads as the cost of utilities (on a fixed contract until 2025) is also included in the rent.

CROSSROADS CARE STAFFORDSHIRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

Why do we exist?

According to the 2010 census there were 5.4 million people providing unpaid care in England and in 2022, postpandemic, this number has almost doubled to 10.58 million (source: Carers UK) with more than 4.3 million becoming carers every year. Although 4 million people annually stop becoming carers because of the demise of the cared-for, the number of carers is steadily increasing as the population ages and the demand for care increases. Figures vary as to how much unpaid carers save the UK economy but even the government has recognized that this saving is at least £59.5 billion per annum. The proposals in the government’s “Adult Social Care Reform” White Paper have been deferred until October 2025, although in the Autumn 2022 Budget the Chancellor promised an extra £7.5 billion to social care in the next two years and the Secretary of State for Health and Social Care has supported funding to enable local authorities to provide 200,000 more care packages annually. However, these figures seem to vary daily. Discussions between the government, NHS and local authorities about a “fair cost of care” have again been postponed for a further two years with the government proposing that local authorities raise funds for this by increasing council tax revenues by 5%. Our local Integrated Care Board also informed us in December 2022 that the “inflationary uplift” would be delayed further until an independent analysis and review had taken place., hopefully by 2023/2024. However, the Home Care Association’s recommended minimum hourly price for care from April 2022 of £23.20 (£25.95 p.h from April 2023) shows the gap between the true value of care and the funding provided by local authorities and the NHS with the result that charities have to subsidise the cost of the formers’ contracts by increasing the amount paid by privately-funded clients. Within this new White Paper, a paltry £25 million is to be allocated to support unpaid carers with respite breaks and the implementation of peer and well- being support groups.

Most people do not recognise themselves as carers and so the national number of unpaid carers is difficult to ascertain. Many carers will also be unaware that there is practical support available to help them from organisations such as ours. In February 2022, about one million people were claiming Carer’s Allowance (the lowest benefit of its kind, being a paltry £69.70 for caring for more than thirty-five hours weekly, which precludes most people from doing paid work away from home.) Consequently, less than 60% of carers are in paid employment. However, the true number of carers is masked by the fact that when they are able to claim their state pension, they are no longer entitled to receive a Carer’s Allowance under the “overlapping benefits rule”, so the number of carer-pensioners is unknown. According to a 2022 survey by the Joseph Rowntree Foundation, 44% of working-age full-time carers were living in poverty. We know that breaks from a caring role are one of the best ways of helping carers to cope with the pressures they face daily; in fact, there is increasing evidence that caring should be considered a social determinant of health, especially for the 1.6 million people who need support with care at home but are unable to access it because of insufficient funding and workforce incapacity. In the last year, according to a Homecare Association surrey, 35% more people had to leave the workforce in order to care for older family members and children because of the unavailability or unaffordability of care provision. This is why it is so important for us to maintain regular contact with our family carers in order to support them.

We also exist to help our care support workers, who are often ignored among the 1.5 million people who provide care and support in the community, because many of those in this latter group are qualified nurses, social workers and occupational therapists and our care support workers are considered untrained, even though they have a minimum qualification of NVQ Level 2. In fact, care support workers are paid on an average £8,000 pa less than staff in other fields with similar skills, i.e., NHS staff, teaching assistants and police community support officers. There is a high level of staff turnover in this sector; the Home Care Association’s annual survey in September 2022 stated that 59% of home care providers maintained that 66% more care workers were leaving the occupation than pre-Coiid. In fact, in February 2022 care working was added to the list of shortage occupations. It is therefore imperative that investment at a national level in home care of all kinds is increased in order to recruit and retain the skilled, compassionate and competent workforce needed to support both an ageing population and physically and mentally disadvantaged people.

PUBLIC BENEFIT

Trustees must have regard to the Charity Commission’s public benefit guidance when carrying out related activities.

During the reporting period we have delivered only 117 free care hours, funded from our Donations Budget. This is a substantial decrease on last year’s figure of 627.75 free care hours, mainly because our “Time for Me” project involving twenty-five carers and 549.25 free care hours has ceased and also because there have been fewer requests for free care.

CROSSROADS CARE STAFFORDSHIRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

Some individuals give regular monthly amounts to our funds via Stoke on Trent’s Potto Lotto scheme. Others donate throughout the year or at specific times. This has resulted in an amount of £6,752 in our donations kitty, a five-fold increase on last year’s amount. This money is available for people who need free care hours and we would like to thank all our supporters for their continued financial help in providing this.

STRATEGIC REPORT

Achievements and Performance

a} Over 196 carers received support during the financial year and a total of 47,106 care hours were delivered, a reduction of slightly more than 1,000 care hours on last year’s figures. We have forty-five care support workers, including the office staff who also work occasionally in a care support role. We are lucky in that we have a 98% retention rate of current staff, mainly because we offer high-quality E-learning and show our appreciation with Christmas bonuses. This retention rate is very high in the care sector.

b} We continue to view and bid for available packages using the SPROC tendering system.

c} Senior management staff will undertake any additional training in aspects which are considered helpful.

d} The Chief Officer continues to procure regular supplies of PPE (Personal Protective Equipment) from the NHS Portal, although this free facility will cease in March 2023. Staff self-test only if they feel they have Covid symptoms, these tests still being free via the NHS portal.

e} Client satisfaction remains high despite the circumstances. We no longer provide regular telephone contact, as coiid-safe care and support has resumed.

Below are just a sample of the comments we have received:-

“Thank you from the bottom of our hearts for all the support, especially during the last few weeks of our caring journey.”

“Thank you for your exceptional services during our mother’s illness. We appreciate the comfort and care provided.”

“I want to thank you for the care and support you gave my late husband and myself…. Your work is essential and very much appreciated.”

“Looking after Janet twenty-four hours a day used to be difficult but manageable. However, as her condition continued to deteriorate, it became harder and for several months after her operation it has become a struggle, so I am really grateful for all your support.”

“Please accept this donation as a gesture of thanks for your care during my illness."

FINANCIAL REVIEW

Three years ago we showed a deficit of £113,067, reduced two years ago to £1,283, and last year we showed a surplus of £27,710. The present audited financial statements show a somewhat reduced surplus of £4,010 but a healthier total fund balance of £210,862 as at 30[th] September 2022. The reduced profit is due to the fact that, for the most part, government financial support has been withdrawn after the pandemic.

The I-Care and the new telephone systems, the completion of the digitalisation of all of our records, plus the fact that the administrative staff are able to work on a home-office rota has meant that the smaller office premises of three rooms is suitable for our present needs. This has resulted in our overheads being considerably reduced, particularly since the cost of utilities is now included in the rental charge and is at a fixed rate until 2025.

Although there were difficulties in negotiating the updated staff contracts, staff have accepted these, especially as we have shown a willingness to be flexible in cases of hardship. We continue to be economically viable even in such difficult times of an increased cost of living.

CROSSROADS CARE STAFFORDSHIRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

RESERVES POLICY

It is the policy of Crossroads Care Staffordshire to review annually the charities reserves and to designate these according to our current perceived needs. Our aim is to free as much of our funds as possible to support free hours of care for carers. The Trustees will seek to comply with current legislation and with the recommendations of the Charity Commission in respect of reserves and their use.

Surplus of Income over Expenditure

This reserve represents accumulated surpluses not specifically designated. It is our policy to review this annually and if the balance is substantial and not expected to be utilised in the foreseeable future , then to allocate it to reserves designated to meet charitable objectives.

Designation of Funds

(a) Contingency for Closure Reserve Fund: Two years ago, the Board approved the removal of this fund and the release of any reserves within it to the general reserve, as they are necessary for day-to-day operations.

(b) Direct Access Fund/Free Care for Carers Fund enables the company to fulfil its charitable objectives of

delivering free care hours to support carers

(c) Restricted Funds: The Trustees will ensure that these are accounted for separately and used for the purpose

they are intended. Currently, there are no restricted funds.

The total amount of reserves held at 30[th] September 2022 was £210,862 none of which is restricted. The Direct Access Fund/Free Care for Carers Fund is the only designated fund and amounts to £867, leaving £209,995 of undesignated funds.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational Structure

(a) As a limited company, Crossroads Care Staffordshire’s Constitution is determined by its Memorandum and Articles of Association.

(b) The organisational structure remains almost the same with a Chief Officer and a Finance Officer but the two Senior Team Leaders posts have now been amalgamated into one. Senior Care Support Workers undertake the day-to-day management of individual teams of Care Support Workers. The Children’s and Young People’s Service is managed by a Senior Care Support Worker. The Trust Board exists alongside the Chief Officer to review and adjust this structure at regular intervals.

(c) A scheme of delegation is in place and the day-to-day management and provision of services rests with the Chief Officer and the Senior Team Leader. The Chief Officer is responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. The management team is responsible for the day-to-day operational management of services.

(d) The Board of Trustees manages the company through a system of reserved powers. Those matters over which the Board wants to have direct control, including the appointment of Senior Management, pay rates and major expenditure, are defined in the Reserved Powers Policy document. Anything not so defined is considered proper to the Chief Officer. The Chief Officer may propose actions to the Board which are outside her remit and equally may ask for the Board’s endorsement of actions within it.

(e) The pay scales of staff are set by the Board and are benchmarked against similar organisations operating in

the area.

(f) The Board of Trustees meets six times a year. Meetings are now being held in person once more, although on occasion sub-group meetings continue to be held via Zoom. These sub groups are Finance, Policies, Quality and Safeguarding and they report at the Trust Board Meeting.

(g) We would welcome new trustees and would give them all the necessary support and training to enable them to make a worthwhile contribution to the charity.

CROSSROADS CARE STAFFORDSHIRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

DECISION MAKING

Decisions are taken at Board Meetings either by consensus or, rarely, by a simple majority vote. The Chairman is authorised to make decisions between Board Meetings if there is an urgent matter, but must then seek agreement to the decision at the next Board Meeting. In the normal course of events a paper will be produced with the key decisions taken, the reasons for the actions and the expected outcome. Any alternatives to the proposal will be included, plus the costings, and any savings arising from implementation. The Board will always be vigilant in considering changes that will either improve or at least will not impair the financial stability of the Charity and which will enhance the services for carers. At all times, wherever possible, the Board seeks to maintain or improve the conditions of service for staff, as it is their contribution which is essential to the success of the company.

RISK MANAGEMENT

(a) At present very little of the annual income is derived from charitable donations.

(b) The company has to compete for contracts, presently awarded by Local Authorities and NHS Commissioners, in order to fund the service.

(c) The obvious cause of the loss of a contract is through failure to tender at a price which is competitive. Funding bodies are under pressure to accept the lowest price from those tendering. We continue to stress the value of high-quality support for carers in order to achieve a contract price which covers our organisation’s delivery costs.

(d) The main element of control in pricing is the management of overheads, which entails ensuring that the management structure is kept at a minimal level of cost.

(e) There has been a growing tendency for contracts to be offered at a set price for the contractual period of duration. However, some large contracts have now been sub-divided into smaller units, allowing for some flexibility in price and duration.

(f) Risk is mitigated further through diversity. Thus, Crossroads Care Staffordshire does not depend on one major contract for its income. No single contract accounts for more than 20% of total income. The loss of some smaller contracts would have little effect individually, but the loss of a larger contract would be more serious. Swift action and the use of dedicated reserves, if necessary, should enable survival.

(g) Further risks involve the failure to recruit appropriate staff. Care support workers are poorly paid nationally. Qualifications within the Social Care field are required for staff in a management role, and employees are encouraged to gain further knowledge and skills in the course of their employment. However, development of the workforce makes the staff more attractive to other competitor organisations, although repayment of tuition fees is a contractual requirement for staff who move to another organisation within two years of training.

(h) The Trust Board has a varied mix of Trustees, all bringing very different skills to the organisation. However, it is becoming increasingly difficult to recruit new and younger people, so active recruitment is an ongoing process.

(i) The Board of Trustees is responsible for ensuring effective and adequate risk management, with internal control systems in place to manage the major risks to which the charity is exposed. This is done by monitoring the effectiveness of the risk management framework.

(j) Trustees and the management team must remain focused on these risks which could adversely affect our reputation and the stability of the organisation.

In summary, the major risks remain a shortage of reserves, occasional over-reliance on an individual contract, possible loss of a contract and inability to recruit sufficient staff to provide a service.

CROSSROADS CARE STAFFORDSHIRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

REFERENCE AND ADMINISTRATIVE DETAILS

(a) Crossroads Care Staffordshire is a charity, registration number 1040583. It is also a company limited by guarantee, registration number 02944546.

(b) The sole office and registered address of the company is Environment House, Werrington Road, Bucknall, Stoke on Trent ST2 9AF.

(c) The trustees who are also directors of the company are Mrs Susan Brookes (Chair), Mrs Diane Hall (Vice Chair), Mrs Ann Flevill, Mrs Rita Godwin, Mr Richard Lamb, Mr Ian Milne, Mrs Carol Moreton, Mrs Susan Tams and Mrs Jan Price as Carers’ Representative. The Articles of Association do not require a post of Company Secretary.

(d) The company’s Accountants and Business Advisors are Geens Limited, 68 Liverpool Road, Stoke-on-Trent

(e) The company’s Auditors are Deans (Staffordshire) Limited, Gibson House, Hurricane Court, Hurricane Close, Stafford.

(f) Banking services are provided by Unity Trust Bank, Brindley Place, Birmingham.

(g) Senior Management Team

- Finance Officer Mrs Christine Hales
- Senior Team Leader Mrs Kerry Bible

With the retirement of the Senior Team Leader (Staffordshire), we have amalgamated the two positions into one senior role.

(h) Crossroads Care Staffordshire like all other organisations using the Crossroads’ name is a Network Partner of Carers’ Trust. The partnership followed the merger of Crossroads and the Princess Royal Trust for Carers. This partnership provides a range of services, including Human Resources support, Legal Advice, Provision of Policies and various other services to support Partners within the Network.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees who are the directors of Crossroads Care Staffordshire Limited for the purpose of Company Law are responsible for preparing the Trustees’ Report and the Financial Statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

They are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company. At all times they must be able to show that the financial statements comply with the Companies Act 2006.Trustees are also responsible for safeguarding the assets of the charitable company and also for taking reasonable steps in the prevention and detection of fraud and other irregularities.

CROSSROADS CARE STAFFORDSHIRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

Company Law requires that for each financial year the Trustees prepare financial statements, which give a true and fair view of the state of affairs of the charitable company, of the incoming resources and the application of those resources. This includes the income and expenditure of the charitable company for the financial year. In preparing these financial statements the Trustees are required to

So far as the Trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditors are unaware and each Trustee has taken all the steps that he or she ought to have taken as a Trustee in order to make him/herself aware of any relevant audit information, and to establish that the company’s auditors are aware of that information.

REPORT ON BEHALF OF THE BOARD OF TRUSTEES

To a large extent, life has returned to normal in the last year and although we have lost one or two of our care support workers, our retention rate is still higher than the national average and we are able to cope with the number of clients we have, since a few have not returned to us in the last few months, mainly those whose packages are either privately funded or part of the direct payments scheme. This would seem to be as a result of the increase in the cost of living, resulting, ultimately, in the fact that some carers are having less time for a break. It is also unfair that self-funders pay more for care whether this is provided in their own home or in a nursing/care home. However, there remain many causes of worry within the home care sector. There is confusion about the different kinds of carers who exist. Our main responsibility is towards our family carers who are generally ignored by the rest of society as they are too exhausted to put forward their case and who often receive a lower amount in their state benefit than the person for whom they care. The government may state that it is “incredibly grateful” to carers for their “extraordinary commitment” but is it confusing carers and care support workers? It should be incredibly grateful to both groups because without the bedrock of family carers, social care nationally would crumble, as it would if care support workers decided to strike, demanding an increase well above the national living wage they receive. Our care support workers (CSWs) are also of a different calibre from those who work in care homes or who give basic domiciliary care, such as helping people to dress and undress and provide meals. Our CSWs may spend three or four hours with someone who is cared-for, in order to give the carer an adequate break. The service might require the CSW to give medication, change a colostomy bag or PEG-feed a client – and all this for a basic wage. As a charity we would love to pay our staff a higher wage but we are unable to do this, as we are reliant on the fees paid by local authorities and the NHS which do not reflect the true value of the service. The Carers Trust has advocated that the government needs a comprehensive national strategy to raise the funding of social services and that this should not be dependent on local authorities raising extra taxes. Equally, 80% of home care providers according to a 2022 Homecare Association survey said that local authority and NHS fees were too low to cover costs. The Carers Trust has also expressed the urgent need to raise Carer’s Allowance beyond the level of inflation and to extend its eligibility to more family carers. In effect, family carers are paid just £2.00 per hour or even less, i.e. £69.70 for doing a minimum of thirty-five hours a week of care. The anomaly of paying the single rate whether one or more people are cared for should also be abandoned. As carers do not complain, most people have no idea of the dire situation in which they find themselves. To try and drum up support for carers, we have arranged a meeting with the MP for Stoke on Trent

Central, Jo Gideon, in the middle of February 2023.

CROSSROADS CARE STAFFORDSHIRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

However, we need to take a positive approach. We have reduced our overheads and have adapted well to technological advances. Our care support workers and administrative staff continue to work hard to maintain the smooth running of the organisation. Chief Officer Rebecca Bestwick and Finance Officer Christine Hales have continued to do an excellent job with forward-planning and initiatives, and have given me constant support above the call of duty. The Board of Trustees has been in regular contact either at board meetings, sub-group meetings or on-line and I have been very grateful for all their help. The Annual Report gives me the chance to thank everyone, both trustees and staff, for their support of carers in North Staffordshire, particularly Diane Hall, the Vice Chairman, Ann Flevill for her understanding of working practices and Richard Lamb for his leadership in our financial affairs.

The trustees' report was approved by the Board of Trustees.

Mrs Susan Brookes

Chair Dated: 22 March 2023

CROSSROADS CARE STAFFORDSHIRE LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF CROSSROADS CARE STAFFORDSHIRE LIMITED

Opinion

We have audited the financial statements of Crossroads Care Staffordshire Limited (the ‘charity’) for the year ended 30 September 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

CROSSROADS CARE STAFFORDSHIRE LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF CROSSROADS CARE STAFFORDSHIRE LIMITED

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the 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 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, is 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 is responsible for assessing the charity’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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

CROSSROADS CARE STAFFORDSHIRE LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CROSSROADS CARE STAFFORDSHIRE LIMITED

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

Our procedures to respond to risks identified included the following:

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 noncompliance with laws and regulations throughout the audit.

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/auditorsresponsibilities. This description forms part of our auditor's report.

CROSSROADS CARE STAFFORDSHIRE LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CROSSROADS CARE STAFFORDSHIRE LIMITED

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 auditors' 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.

Susan Whiting BA ACA (Senior Statutory Auditor) for and on behalf of Deans Chartered Accountants Statutory Auditor Gibson House Hurricane Court Hurricane Close Stafford ST16 1GZ

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CROSSROADS CARE STAFFORDSHIRE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2022

Unrestricted
Designated
funds
funds
2022
2022
Notes
£
£
Income and endowments from:
Donations and legacies
3
6,752
-
Charitable activities
4
896,693
-
Other income
5
44,614
-
Total income
948,059
-
Expenditure on:
Raising funds
6
631
-
Charitable activities
7
942,389
-
Total resources expended
943,020
-
Net gains/(losses) on
investments
11
(1,029)
-
Net incoming resources
before transfers
4,010
-
Gross transfers between
funds
-
-
Net income for the year/
Net movement in funds
4,010
-
Fund balances at 1 October
2021
205,985
867
Fund balances at 30
September 2022
209,995
867		 Total Unrestricted
Designated
funds
funds
2022
2021
2021
£
£
£
6,752
1,229
-
896,693
835,338
-
44,614
211,168
-
948,059
1,047,735
-
631
1,521
-
942,389
1,021,433
-
943,020
1,022,954
-
(1,029)
2,929
-
4,010
27,710
-
-
120,052
(120,052)
4,010
147,762
(120,052)
206,852
58,223
120,919
210,862
205,985
867		 Total
2021
£
1,229
835,338
211,168
1,047,735
1,521
1,021,433
1,022,954
2,929
27,710
-
27,710
179,142
206,852

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

All income and expenditure derive from continuing activities.

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

CROSSROADS CARE STAFFORDSHIRE LIMITED

BALANCE SHEET

AS AT 30 SEPTEMBER 2022

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
Designated funds
16
General unrestricted funds		 2022
£
86,086
157,057
243,143
(50,826)
867
209,995		 £
4,941
13,604
18,545
192,317
210,862
210,862
210,862		 2021
£
99,327
146,782
246,109
(63,778)
867
205,985		 £
9,888
14,633
24,521
182,331
206,852
206,852
206,852

The financial statements were approved by the Trustees on 22 March 2023

Mrs Susan Brookes

Trustee

Company registration number 02944546

CROSSROADS CARE STAFFORDSHIRE LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

Notes
Cash flows from operating activities
Cash generated from operations
20
Investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
(1,850)		 £
12,125
(1,850)
-
10,275
146,782
157,057		 2021
£
(9,924)		 £
36,224
(9,924)
-
26,300
120,482
146,782

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

Charity information

Crossroads Care Staffordshire Limited is a private company limited by guarantee incorporated in England and Wales. The registered office address is Environment House, Werrington Road, Bucknall, Stoke-on-Trent, Staffordshire, England, ST2 9AF

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "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 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable 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 from charitable activities includes income from service contracts and trading activities to raise funds for the charity. Income is received in exchange for supplying services in order to raise funds and is recognised once entitlement has occurred.

Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

1.5 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Expenditure on charitable activities includes the cost of providing care services in accordance with the objectives of the charity.

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

(Continued)

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include management and charitable activities. Where support costs cannot be directly attributed to particular headings they have been allocated to the cost of raising funds and expenditure on charitable activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings Straight line over 5 years Computers Straight line over 3 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 is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

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

1.12 Retirement benefits

The charitable company operates a defined contribution pension scheme. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the 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 estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 6,752 1,229

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

4 Charitable activities

Care Care
services services
2022 2021
£ £
Care services 896,693 835,338

5 Other income

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Government job retention scheme grant - 59,250
Other grant income 44,614 151,918
44,614 211,168

6 Raising funds

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Fundraising and publicity
Other fundraising costs 631 1,521
631 1,521

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

7 Charitable activities

Staff costs
Depreciation and impairment
Premises
Travel
Affiliation fees
Protective clothing
Printing, postage, stationery & adverts
Telephone
Training
Miscellaneous
Bank Fees
Insurance
Repairs and renewals
Bad debts
Professional fees
IT software and computer support costs
Share of support costs (see note 8)
Share of governance costs (see note 8)		 2022
£
692,154
6,797
16,289
50,127
9,250
367
2,173
16,574
4,596
2,746
2,376
7,743
7,540
-
324
19,171
838,227
82,581
21,581
942,389		 2021
£
722,990
6,616
24,474
57,564
9,622
3,224
1,864
12,427
2,057
8,409
1,856
7,745
8,347
456
630
20,827
889,108
111,813
20,512
1,021,433

8 Support costs

Staff costs
Committee meetings
Audit fees
Accountancy
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
82,581
5,141
-
550
-
6,170
-
9,720
82,581
21,581
82,581
21,581		 2022
£
87,722
550
6,170
9,720
104,162
104,162		 Support
costs
Governance
costs
£
£
111,813
4,966
-
65
-
5,808
-
9,673
111,813
20,512
111,813
20,512		 2021
£
116,779
65
5,808
9,673
132,325
132,325

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (£2021 - £nil).

No travel and subsistence payments were paid to trustees (2021 - £nil).

10 Employees

The average monthly number of employees during the year was:

Operational staff
Governance
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
Number
48
1
49
2022
£
727,817
39,757
12,302
779,876		 2021
Number
53
1
54
2021
£
782,797
43,315
13,657
839,769

The key management personnel of the charity comprise the trustees, the chief officer, the financial controller and senior team leaders. The total employee benefit of the key management personnel of the Charity was £87,722 (2021 - £129,861).

There were no employees whose annual remuneration was more than £60,000.

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Gain/(loss) on valuation of nvestments (1,029) 2,929

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

12 Tangible fixed assets
Fixtures and Computers Total
fittings
£ £ £
Cost
At 1 October 2021 12,059 37,813 49,872
Additions 1,850 - 1,850
At 30 September 2022 13,909 37,813 51,722
Depreciation and impairment
At 1 October 2021 11,692 28,292 39,984
Depreciation charged in the year 583 6,214 6,797
At 30 September 2022 12,275 34,506 46,781
Carrying amount
At 30 September 2022 1,634 3,307 4,941
At 30 September 2021 367 9,521 9,888
13 Fixed asset investments
Unlisted
investments
£
Cost or valuation
At 1 October 2021 14,633
Valuation changes (1,029)
At 30 September 2022 13,604
Carrying amount
At 30 September 2022 13,604
At 30 September 2021 14,633
14 Debtors
2022 2021
Amounts falling due within one year: £ £
Trade debtors 21,503 26,491
Prepayments and accrued income 64,583 72,836
86,086 99,327

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

15 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
9,542
23,069
3,860
14,355
50,826		 2021
£
10,994
33,162
5,182
14,440
63,778

16 Designated funds

The unrestricted funds of the charity include the following funds which have been set aside by the trustees for specific purposes:

Movement
in funds
Balance at Transfers Balance at Incoming Balance at
1 October 2020 1 October 2021 resources 30 September
2022
Contingency for closure fund 120,052 (120,052) - - -
Free care for carers 867 - 867 - 867
120,919 (120,052) 867 - 867

Contingency for closure fund

The contingency for closure fund represented a provision against the cost of redundancy and any lease obligations should all service contracts be lost resulting in Crossroads Care Staffordshire being in a position where they would be unable to continue to provide services. During the year the Board approved the removal of this fund and the release of any reserves within it to the general reserve, as they are necessary for day-today operations.

Free care for carers fund

This fund is to provide free care to support carers to take a break from their caring role on an occasional basis. This may be to supplement existing support that may already be in place or to help those carers who only need an occasional break to support them in their caring role.

17

Analysis of net assets between funds
Unrestricted
funds
Designated
funds
2022
2022
£
£
Fund balances at 30
September 2022 are
represented by:
Tangible assets
4,941
-
Investments
13,604
-
Current assets/(liabilities)
191,450
867
209,995
867		 Total
Unrestricted
funds
Designated
funds
2022
2021
2021
£
£
£
4,941
9,888
-
13,604
14,633
-
192,317
181,464
867
210,862
205,985
867		 Total
2021
£
9,888
14,633
182,331
206,852

CROSSROADS CARE STAFFORDSHIRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022

18 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2022
£
3,136
1,307
4,443		 2021
£
10,321
11,629
21,950

19 Related party transactions

There were no disclosable related party transactions during the year (2021 - none).

20 Cash generated from operations
Cash generated from operations 2022 2021
£ £
Surplus for the year 4,010 27,710
Adjustments for:
Loss/(gain) on investments 1,029 (2,929)
Depreciation and impairment of tangible fixed assets 6,797 6,616
Movements in working capital:
Decrease in debtors 13,241 55,912
(Decrease) in creditors (12,952) (51,085)
Cash generated from operations 12,125 36,224