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← Midland Mencap

2022-03-31-accounts

Charity Registration No. 1043360

Company Registration No. 03006451 (England and Wales)

MIDLAND MENCAP

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

midland GBncaThe voice of p learning disability

MIDLAND MENCAP

Contents

Page
Trustees’ report 1-8
Strategic report 9-19
Statement ofTrustees’ responsibilities 20
Independent Auditors’ report 21-24
Consolidated Statement offinancial activities 25
Consolidated Balance Sheet 26
Company Balance Sheet 27
Consolidated Statement ofCash Flows 28
Notestotheaccounts 29-45

MIDLAND MENCAP

Legal and Administrative Information

Registered Charity Name

Midland Mencap

Status

The Organisation is a charitable company limited by guarantee and not having a share capital, incorporated in January 1995 and registered as a charity. The Company was established by its Memorandum of Association which sets out the objects and powers of the Charitable Company and is governed by its Articles of Association. The Memorandum and articles of association were amended and a resolution was passed at a Special General Meeting held on 31 October 2018. The Charity Commission has also approved the amendments to the governing documents.

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||||||| |---|---|---|---|---|---| |Registered|Charity number|1043360| |Company number|03006451| |Trustees|MF|Gallagher — Chairman| |RC Young — Resigned|26 August 2022| |K|Gujral| |J|Cleminson| |V M|Penney|- Resigned|30|September 2021| |C McGinley| |Dr F M|McConnell| |N P Green|- Appointed|25|February|2022| |C|§|Proctor|- Appointed|29 April|2022| |N|Smith|-|Appointed|31|October 2022| |Principal|address and|registered|office|Unit E, Pinewood| |Bell|Heath Way| |Woodgate|Business|Park| |Birmingham| |B32|3BZ| |Auditors|Cooper Parry Group Limited| |Cubo|Birmingham,|Office|401| |4|Floor, Two|Chamberlain|Square| |B3|3AX| |Bankers|Unity|Trust Bank| |Four|Brindleyplace| |Birmingham| |B]|2JB| |Chief Executive|D|Rogers|

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MIDLAND MENCAP

TRUSTEES’ REPORT For the year ended 31 March 2022

The trustees are pleased to present their annual report together with the consolidated financial statements of the charity and its subsidiary (“the Group”) for the year ending 31 March 2022 which are also prepared to meet the requirements of a Directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles ofAssociation, 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).

Mission

Midland Mencap works and campaigns for accessible and inclusive services and a better quality of life for everyone with experience of learning disability by advancing the views, needs and ambitions of people with experience of learning disability, promoting inclusion through challenging prejudice and discrimination, influencing social policy through campaigning, inspiring, developing and delivering innovative quality services which express inclusion, integration, expressed need and diversity and achieving equality of civil and legal rights through campaigning.

Trustees

The Trustees, who are also the Directors for the purpose of company law, who served during the year were:

M F Gallagher — Chairman RC Young — Resigned 26 August 2022 K Gujral J Cleminson V M Penney - Resigned 30 September 2021 C McGinley Dr F M McConnell N P Green — Appointed 25 February 2022 C S$ Proctor — Appointed 29 April 2022 N Smith — Appointed 31 October 2022

None of the Trustees have any beneficial interest in the Company. All of the Trustees are members of the company. The Trustees and other members guarantee to contribute £1 in the event of an insolvent winding up. N Smith is a Trustee and a shadow Director of the Charitable Company.

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MIDLAND MENCAP

TRUSTEES’ REPORT

For the year ended 31 March 2022

Organisational] Structure

The business of the Charity is managed by the Trustees acting as members and the Executive Committee. The Committee consists of the honorary officers of the Charity; up to twelve other members are appointed by the Board. The number of Executive Committee members may not be less than eight.

On 31 October 2018 a special general meeting was held to pass a special resolution allowing the Charity to now be governed by the revised Memorandum and Articles of Association. The Charity Commission has approved amendments to the organisation’s Memorandum and Articles of Association and Charity's Objectives.

The Board of Trustees continues to delegate the responsibility for the day to day management of the Charity business to the Chief Executive and the senior management team. There is a clear distinction between the roles of the trustees and the senior management team. The senior management team is responsible for the production of strategic and operational plans, policies and budgets which are presented to the board of trustees for consideration, approval and monitoring. Board meetings are held regularly in order to update the Trustees on the activities and financial performance of the Charity.

Trustee Recruitment

When recruiting new Trustees the existing Trustees look for those individuals whose skills and experience can make a significant contribution to the management of the Charitable Company.

All new Trustees are made aware of their responsibilities as Charity Trustees and Company Directors and are helped to familiarise themselves with the practical and financial aspects of the Charitable Company’s operations. To help them they are provided with a copy of the Company’s Memorandum and Articles of Association, the latest published accounts, the Charitable Company’s mission statement and appropriate Charity Commission publications.

OBJECTIVES AND ACTIVITIES

The current organisational strategy continues to steer the organisation against a backdrop of extreme challenges and uncertainty of funding that is facing the Third Sector. However, Midland Mencap continues to deliver a progressive and solution based strategy that continues to identify opportunities for growth in our service delivery in order to best serve people with disabilities and their families and carers regardless of age, gender and ethnicity. In delivering Midland Mencap’s aims and objectives we will endeavour:

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MIDLAND MENCAP

TRUSTEES’ REPORT (continued) For year ended 31 March 2022

OBJECTIVES AND ACTIVITIES (continued)

Public Benefit

The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives ofthe Charitable Company and in planning any future activities. The trustees always ensure that their strategic and operational objectives are carried out for the public benefit. This is achieved through the provision of a wide range of services to people with learning disabilities. This annual report demonstrates how Midland Mencap has spent funds available towards meeting its charitable objectives.

Review of financial position

Midland Mencap continues to hold 100% stake in its subsidiary, Birmingham Muiti-Care Support Services. This is a charitable company, limited by guarantee, whose mission, values, objectives and activities align with those of Midland Mencap. As such the Midland Mencap financial statements are reported as consolidated accounts in accordance with relevant Accounting Standards.

The total consolidated income of £9,084,686 included £927,073 income from the subsidiary and the total expenditure of £8,154,009 included £705,506 (before intercompany recharges of £84,795). The subsidiary reported a surplus of £136,774 and the overall group performance reported a surplus of £897,512. The consolidated total reserves are £11,974,317 of which £6,258,087 are free reserves, £3,513,702 is designated to fixed assets and £2,200,000 are designated funds to Domcare services, IT system investment, Community Hub project and new business development funds. The group continues to have sufficient cash flows to carry out its charitable objectives.

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MIDLAND MENCAP

TRUSTEES’ REPORT (continued) For year ended 31 March 2022

As explained in the reserves policy below, some reserves have been designated to meet planned expenditure and projects expected to be undertaken in the coming financial year. £2,2m has been designated to Domcare, new business development to ensure funding diversification and funding the growth and sustainability of Midland Mencap’s Community services in the face of funding cuts against an increased demand for services.

The £893k in restricted reserves is attributed to Birmingham Multi-Care properties with a proviso that the monies be repaid to the trust, local and central government departments should certain conditions not be met.

Covid-19 impact and review

Throughout this year the Board have been acutely conscious that this has been a year of recovery from the pandemic. Working with the leadership team our work and support has focussed on supporting our workforce, ensuring the financial and operational stability of the organisation is maintained whilst continuing to pursue our strategic objectives. Despite the challenges that the pandemic presented the organisation has maintained a high quality of service in meeting increasing demand which has seen us expand our services in Worcestershire, Warwickshire, Coventry, Walsall, and Sandwell as well as consolidate our service offer in Birmingham.

Continuous risk reviews were carried out to ensure that Midland Mencap continues to deliver its operational services. The closure of the local authority day centres meant that our Domcare and support services provided extra hours of services which resulted in an increased income. The Housing offer had a steady income due to restricted movement of tenants and Covid-19 community infection control measures. Despite the fall in income our Children and Community service, the extra Domcare delivery income and continued grant payments from local authorities, Midland Mencap has ended the 2021/22 year with a surplus. Due to restricted movement in our Housing offer.

Due to the overall strong cash flow and financial performance, itis reasonable to conclude that the organisation is a going concern at the date ofsigning off these financial statements.

Reserves policy

Over the last fifteen years Midland Mencap has built up substantial assets and cash reserves. The Trustees and Executive recognise that though the level of reserves provides the charity with significant financial security it also potentially inhibits relationships with existing or potential funders.

Having a reserves policy and clear explanations on why reserves are held at particular levels is a key part of the internal financial management of the organisation allowing the Trustees and management team to manage resources effectively and plan for the future.

Free reserves are the funds Midland Mencap can expend on any of its charitable purposes without external restrictions from funders. This does however exclude restricted funds as these must be spent for a specific purpose that it was initially intended by the funder. The free reserves also exclude the organisations tangible fixed assets held for the

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MIDLAND MENCAP

TRUSTEES’ REPORT (continued) For year ended 31 March 2022

charity’s own use. This is because these assets are used by Midland Mencap to deliver activities and as such will not be instantly be converted to cash in order to meet a funding deficit should such need arise. In addition to this, designated funds are also excluded from free reserves. The designated funds are set aside to meet essential and specific short to medium term liabilities and projects that advance the organisation’s charitable aims and objectives.

Therefore Midland Mencap’s strategic plans have and will be developed to utilise the remaining free reserves to:

Further to the use of free reserves outlined above, below are the details of the circumstances in which the free reserves will be utilised:

In 2021/2022, the consolidated total reserves are £11,974,317. Of this total, £6,258,087 are free reserves, £3,513,702 designated to fixed assets (£893k restricted) and £2,202,528 designated to projects and liabilities.

The Trustees consider that the current level of reserves will ensure that, in the event of a significant drop in funding, they will be able to continue the Charitable Company’s current activities whilst consideration is given to ways in which additional funds may be raised. The reserves levels are monitored and maintained throughout the year.

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MIDLAND MENCAP TRUSTEES’ REPORT (continued) For year ended 31 March 2022

Risk factors

The board of Trustees continually assess the risks to which the charity is exposed and systems have been put in place to mitigate these risks. Internal controls have been put in place to minimise operational risks by implementing an active and rigorous policy on safeguarding and health and safety procedures. Internal financial risks have been minimised by continual review and implementation of authorisation and monitoring of all transactions. Risks to future income and expenditure levels are monitored by setting annual budgets and monitoring actual performance on a monthly basis and this is reported to trustees at every board meeting. Where significant financial risk still remains, the board has ensured proper insurance cover.

The following table explains the principal risks that have been identified and could seriously impact on the charity’s performance and future prospects and the steps taken to mitigate such risks,

Potentialimpact Steps tomitigaterisk
Dependencyon onincome ¢ Cash flow andbudget impactofloss of ¢ Identificationofmajordependencies and
sources income source. finding alternativeincomesources well
before end ofcontractswithmajor funders.
e Adequate reserves policy,
¢ = Diversification ofincome streams.
Relationship
funders		 with ® Deterioration in relationship may impact
on funding andsupport available.		 e Regular contactand briefings tomajor
funders.
¢ Projectreporting asperrequired timelines
bythe funder.
¢ Meeting funders’ terms, conditions and
requirements.
GovernmentPolicy Policy © Availability ofcontract andgrant funding. ¢ Monitoring ofproposedlegaland
e Impactoftaxregimeonvoluntary giving. regulatorychanges.
©
®		 Impactofgenerallegislation orregulation
onhow services are delivered.
Roleofvoluntary sector.		 * Membershipofumbrellabodiesthat
advocatefor rightsofpeoplewithlearning
disabilities.
Investment e Globalmarket instability. ¢ Spread ofriskon investmentportfolios.
* Unforeseenethical issues. ¢ — Regularreviews by investmentmanagers
on riskto portfolios.
e Regular reviews bytheinvestment
managementsystem to ensure
investments are in line with charitable
objectives.

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MIDLAND MENCAP

TRUSTEES’ REPORT (continued) For year ended 31 March 2022

Risk factors (continued)

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|||||||||| |---|---|---|---|---|---|---|---|---| |Project or|service|e|Compatibility with objects,|e|Project appraisal|and costing procedures|to| |development|plans and|priorities.|ensure that new projects|are viable and within the| |e|Funding|and|financial|charity’s|objectives.| |viability.|e|Authorisation|procedures followed|to ensure| |©|Project|viability.|proper|allocation ofincome and expenditure.| |e|Skills|availability.|*|Monitoring and reporting procedures|to ensure| |project’s|progress|is|in|line|with|available| |funding| |Disaster recovery and|©|Computer system|failures|e|Information systems recovery plan.| |planning|or loss of|data.|e|Data backup procedures|and precautions.| |©|Destruction of property,|e|Insurance|cover.| |equipment,|records through|e|Disaster recovery plan for alternative| |fire,|flood or similar|aceurniniedation.| |damage.| |Competition|¢|Loss of contract income.|¢|Monitoring performance|and quality of|service|to| |e|Reduced|fund-raising|ensure|that we maintain and improve|the|quality| |potential|of|service| |e|Reduced profile.|e|Review of|market and methods|of service| |©|Profitability|of trading|delivery|to|find ways of|delivering|services that| |activities.|helps Midland Mencap to stand out.| |e|Fund-raising|strategy|to promote|public| |awareness|and our|external|profile|within|and| |outside|our|sector.| |Subsidiary|company|e|Staff integration|and TUPE|¢|Through due|diligence ofpolicies,|processes,| |¢|Integration of systems,|contracts| |policies|and processes|¢|Continued liquidity reviews| |@|Historical abilities|end|e|Review transferability|ofhistorical|contracts and| |contract commitments|Properties| |©|Reale teadigg seqomeraents:|:|e¢|TUPE—Operation’saudit|continuity reviews|

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MIDLAND MENCAP

TRUSTEES’ REPORT (continued) For year ended 31 March 2022

Employee remuneration

Midland Mencap aims to pay salaries that are fair and competitive within the charity sector in order to retain qualified staff. The remuneration of the senior management team is set and approved by the board of trustees’ who benchmark their decision based on pay levels of similar sized charities.

Our key management personnel are the Chief Executive, Director of Operations, Head of Housing Care and support, Head of Community Operations and Head of Finance.

Midland Mencap is committed to paying the Living Wage as set by Birmingham Business Charter.

Going Concern

The Trustees are satisfied that there are sufficient assets and funds for the Charitable Company to remain a going concern as explained in the notes to the financial statements below.

Related parties

The Charity is affiliated to Royal Mencap, Mencap National Centre, 123 Golden Lane, London, EC1Y ORT.

This report was approved by the trustees on 22 November 2022 and signed on their behalf by:

M F Gallagher Chairman

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MIDLAND MENCAP

STRATEGIC REPORT

Achievements and Performance

Housing, Care and Support services

Midland Mencap’s Housing, Care and Support Services encompass a range of services namely Home Support, Supported Living, and the Carers Emergency Response Service (CERS) under our CQC registered domiciliary care services, Learning Disability Community Wellbeing Service (CWS), Sitting Service, Placing Vulnerable Urban Residents into Employment and Training (PURE) and Housing Management Services.

Driven by our ethos to deliver high quality care and support services and to deliver these to a high standard centred on the Care Quality Commissions five key areas of safe, effective, caring, responsive and well-led, the right to safe, secure, housing with the right support at the right time remains the cornerstone of Midland Mencap’s offer to citizens. We continue to maintain the high specification of our existing portfolio of housing stock for people with a learning disability, our current portfolio of properties consists of: -

We have also purchased a two-bedroom, accessible bungalow in Nailers Close, Quinton. This property has undergone a full refurbishment and we will soon be supporting a citizen who is inappropriately housed in a high rise flat to relocate to this property thus affording them a smart, modern, larger living environment that better suits their needs and will enhance their quality of life.

By managing our own housing stock, we continue to have the invaluable opportunity to model the interiors and adapt these to meet individual needs to ensure they offer the opportunity for those with the most complex of disabilities to enjoy high quality, independent living.

A large proportion of Midland Mencap’s Housing, Care and Support services are based on the provision of social care and health services. The service provides support with personal care, independent living and accessing social, recreational and leisure activities within the local and wider community. The service is available to children, young people and adults. All the services are built upon the provision of personalised support, independent living

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MIDLAND MENCAP

STRATEGIC REPORT

Achievements and Performance

Housing, Care and Support services (continued)

and accessing social, recreational and leisure activities. Services are provided in a manner flexible enough to meet peoples’ individual needs, as specified in their own Personal Citizen Plan.

Housing, Care and Support continue to drive new digital technology and software across the organisation, improving a range of previously paper driven processes. We continue to expend tremendous resources in modelling our Unique:IQ software into a bespoke, tailor-made, solution to meet the whole organisation’s needs. This is a complete care management software package that supports us to manage our end-to-end operational requirements from rostering, care planning, monitoring and time and attendance, electronic daily logs through to electronic payroll and invoicing. This will support the organisation to eliminate paper-based procedures, achieve operational efficiencies and reduce admin time and costs.

COVID-19, and the social isolation experienced throughout this, has impacted the already growing demand for mental health services and this is exacerbated by prolonged economic impacts and the cost-of-living crisis. We remain committed to working with health colleagues and local authorities to enhance team working and to deliver a service that focusses on the individual’s needs.

With ever decreasing resources and the continuation and potential worsening of central government austerity policies this has remained a challenging environment for both the recipient of support and the provider. Housing, Care and Support services have this year continued to advocate for the citizen in ensuring individuals continue to receive the right amount of support at the right time. Indeed, whilst many services suffered due to COVID-19, we experienced a large-scale increase in our service delivery as many of the people who use our services would ordinarily attend a day placement/day centre. Due to COVID-19 restrictions these have remained closed, or have partially opened with limited availability, thus meaning that additional care and support has been required to ensure that individuals remain safe and well in their own home environments.

In addition to this we have also encountered increased staff absences and experience unprecedented problems around recruitment. The health and social care sector are still dealing with the emotional toll of the pandemic and frontline health and social are workers are too burned out to now deal with the added pressures around the cost-ofliving crisis which is pushing people who are in secure employment into poverty and with many individuals now having to access foodbanks to make ends meet.

Home Support/Supported Living & Learning Disability Community Wellbeing Service

Across the year our care and support teams have delivered 325,656 hours of home-based care and housing support to individuals’ right across Birmingham. Our home support and supported living services operate twenty-four hours a day, seven days of the week.

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MIDLAND MENCAP

STRATEGIC REPORT

Achievements and Performance

Housing, Care and Support services (continued)

We have: -

Our services have been provided by a phenomenal group of frontline social care workers who have worked tirelessly and diligently to ensure that all the people who use our services have received high-quality, personcentred care this is despite the risks faced by our frontline staff and their families. We cannot commend our workforce enough for the service they have provided, ensuring that all critical care calls were made throughout the whole pandemic this is without mentioning the emotional support that they provided in ensuring that peoples spirits were kept up amongst those that were unable to go outside at the height of the pandemic. Likewise, there was no break in frontline services for any citizen receiving tenancy related support via our Community Wellbeing Service. Face-to-face calls remained for anyone who required or wanted this, with additional doorstep visits carried out routinely supporting with additional shopping/pharmacy runs as well as weekly well-being calls.

Ensuring our staff have the right range of skills to undertake their roles and then maintaining these skills is critical to the safe delivery of our services. The 238-frontline housing, care and support staff have received 1150.25 hours of training and support this year across a wide range of training covering areas such as the Care Certificate, induction, infection control, safeguarding, medication management, safe lifting and handling practices as well as update training in areas such as First Aid and Fire safety. This ensures that our staff are skilled, confident, but most importantly competent to support individuals with a wide range of care and support needs.

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MIDLAND MENCAP

STRATEGIC REPORT

Achievements and Performance

Housing, Care and Support services (continued)

Carers Emergency Response Service (CERS)

Our Carers Emergency Response Service (CERS) has continued to ensure that Carers have absolute peace of mind knowing that if they are unable to undertake their caring responsibilities due to an emergency then our team will step in ensuring care and support to their loved one will continue in their absence. As well as the emergency provision of care CERS also provides an essential service allowing family carers to attend important pre-planned appointments, such as health related consultations, ensuring carers can prioritise their own well-being alongside that of the person they care for.

COVID-19 impacted on the delivery of the CERS service; many pre-planned appointments were cancelled by the NHS due to the massive constraints placed on the national health service. In addition, a vast number of carers were isolating as they were deemed to be clinically extremely vulnerable so would not allow staff into their homes.

CERS staff continue to share information relating to positive mental health websites and helplines. CERS staff also have a referral pathway to utilise should they recognise a family is struggling to cope, especially with the closure of schools and day centres. Families have on occasion called the CERS emergency line to simply ask for advice it has been a pleasure to be able to assist someone with a simple conversation; this may have avoided a breakdown in the care delivery.

CERS staff continue to use their time flexibly and offer support via telephone evening and weekends, this has been welcomed by carers when isolation can feel like such a long and lonely time. This has proved that flexibility works froma service delivery aspect and the personal aspect of staff who were also having to deal with their own issues during the crisis.

Two of our CERS Officers have both received Trusted Assessor training with the Occupational Therapy Service, allowing them to assess for simple O/T equipment and assisting with the BCC waiting list for O/T appointments -— this can now be carried out by CERS staff as part of their assessment process rather than the individual having to be referred via the single point of access.

Despite the constraints we have: -

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MIDLAND MENCAP

STRATEGIC REPORT

Achievements and Performance

Housing, Care and Support services (continued)

Some of our CERS Case Studies/Good News Stories over the last twelve months are:

Placing Vulnerable Urban Residents into Employment and Training (PURE)

The PURE project is a part-funded European Social Funded project and has been operating since March 2019. It brings together a range of coordinated interventions which will assist the needs of citizens with barriers into the employment market. With the support of PURE Intervention Workers, they will support, guide and mentor individuals through to Employment, Education or Training.

The project is eligible for participants Birmingham wide, with an emphasis on areas of deprivation

In the last twelve-month period: -

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MIDLAND MENCAP

STRATEGIC REPORT

Achievements and Performance

Housing, Care and Support services (continued)

Birmingham Multi-Care Support Services

Birmingham Multi-Care is a subsidiary of Midland Mencap and provides a range of care and support services to children, young people and adults across Birmingham. Birmingham Multi-Care services include home based care and support, short breaks and respite as well as access to community based social, leisure and recreational opportunities.

Birmingham Multi-Care Respite Care Provision

We provide 8 respite care beds across two registered Respite Care Homes — Silver Birch Road in Erdington and Greswolde Park Road in Acocks Green. Both homes are regulated by the Care Quality Commission and offer high quality respite provision seven days per week.

The COVID-19 pandemic hada serious impact on our respite service delivery as almost all carers who use our service were deemed to be clinically extremely vulnerable and, consequently, had to shield. This impacted on the respite care bookings as the people who use our services shielded along with their family members/carers. It has taken a long time for families to start using out respite care provision once again, but this is now increasing with bookings beginning to increase once more. At the end of the 2021/2022 period, Silver Birch Road had an overall occupancy rate of 60.78% and Greswolde Park Road had an overall occupancy rate of 68.55%.

Birmingham Multi-Care Home Based Care and Support

Our home support and supported living services operate twenty-four hours a day, seven days of the week. As with our other services, this has been severely impacted by the pandemic as most of the support provided by Birmingham Multi-care is home based and many families were deemed to be clinically extremely vulnerable and, consequently, had to shield. As with our respite care services this impacted on the home-based care bookings as the people who use our services shielded along with their family members/carers. In addition to this staff that specifically supported individuals with recreational based activities were left with no work as all recreational activities and venues closed due to lockdown.

We have: -

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MIDLAND MENCAP

STRATEGIC REPORT

Achievements and Performance

Housing, Care and Support services (continued)

The 25-frontline staff have received 42.5 hours of training and support this year across a wide range of training covering areas such as the Care Certificate, induction, infection control, safeguarding, medication management, safe lifting and handling practices as well as update training in areas such as First Aid and Fire safety. This ensures that our staff are skilled, confident, but most importantly competent to support individuals with a wide range of care and support needs.

Community Services Update 2021/2022

Key achievements during 2021/2022

Children and Young people services:

CYP sessions resumed after covid-19 pandemic for all deliveries in March 2021 after local lockdown restrictions were fully lifted.

In the year 2021-2022, Midland Mencap CYP team continued to react to the ever-changing circumstances surrounding the Covid-19 pandemic. Throughout this period and as restrictions were eased and lifted, we continued to respond to the demand of supporting children and young people with disabilities within our short break service.

Midland Mencap CYP team resumed normal delivery of ShortBreaks sessions in March 2021 and ran these in line with local authority specific Covid secure protocols and guidelines within the months of April 2021 through to March 2022 where we were able to deliver 3820.5 hours of short break support in Birmingham.

In the months that followed, Midland Mencap continued to deliver short break sessions in Birmingham at weekends whilst keeping in regular contact with families during this time.

Worcester delivery supported from January 2021 through unti] March 2022— by offering DOM care hours to support children and young people within their homes. This totalling 10 children receiving DOM care support throughout these months. Worcestershire continued to deliver commissioned short breaks session during school holiday’s at Finstall hall where 7 children attended these sessions.

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MIDLAND MENCAP

STRATEGIC REPORT (continued)

Achievements and Performance

Community Services Update 2021/2022 (continued):

In Coventry and North Warwickshire Midland Mencap for the period of April 2021 through to March 2022 have delivered commissioned packages of support to children and young people.

These continue to operate on the basis of fulfilling the individual needs and wants of the family and the children. Throughout the period of April 2021 to March 2022, capacity has continued to increase for Coventry and North Warwickshire, where we have been able to better establish our group-based sessions on a weekly basis, where these increase during school holidays.

Coventry sessions operated from the Boys and Girls club these ran on a weekend basis and during school holidays, where 8 children regularly attended. In North Warwickshire

Staffing

The CYP support team capacity worked at:

Birmingham Community Hub and Café

The service has had a successful year, re-building from the impact of covid-19 with activities returning to almost near normal levels in attendance and wider, growing range of new activities and in turn seeing many new members join.

The cafe has also continued to grow its customer base and provision of offer to include catering for internal and external events.

During the year there has also been the return of large-scale events like Halloween which have run safely without any covid outbreaks. We ended the year in a strong position to continue to review, co-deign and deliver even better outcomes in the year ahead.

Family Carers Support including Short Break

The team has worked hard to bring back face to face training courses, workshops, and support groups, which is seeing a month on month increase in participation. The impact of Covid-19 on people’s confidence to return to pre-pandemic activities is seen more here than in our learning disabilities activities, with carers worried about getting covid and passing it on to the cared for person.

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MIDLAND MENCAP STRATEGIC REPORT (continued)

Achievements and Performance

Community Services Update 2021/2022 (continued):

The range of partnership working and networking in this service area has been excellent, not just in bringing back partnerships from pre-covid times, but also establishing new ones, across health & social care, education and community services.

Walsall Community Disability Hub

The team have begun to return to face-to-face delivery, which has been much welcomed and like Birmingham, has see the range of new activities and citizens grow. The team continue to deliver a hybrid of face-to -face and online activities.

The team has brought back events successfully and is once again working well in partnerships with organisations like Healthwatch Walsall, Autism West Midlands & Bethagey.

Carers Hub

The end of the year saw a successful partnership bid for launching the new Walsall Carers Hub with Forward Carers. Work has been on-going around legal aspects of the contract as well as general mobilisation planning, ready to see the project launch in early summer 2022.

Parkride

Parkride has continued to provide safe, affordable inclusive cycling across the West Midlands region utilising green spaces and accessible venues. The team have provided 410 individual sessions to 7380 participants who have a wide range of disabilities & experiences of cycling — our youngest participant was 4 and our oldest 97! We have supported 6 Local Authority events.

We continued to deliver our Sport England family fund project; most of the families now utilise our community Parkride offers in their local areas.

Identifying suitable funding streams has been our priority this year and we have been successful in receiving funding from Sandwell Metropolitan Borough Council, Coventry City Council and Birmingham City Council to deliver sessions in some of the West Midlands most deprived areas. This will enable participants to have access to a wide range of adapted and mainstream cycles which will help them to improve their health and wellbeing, improved fitness levels and reduce isolation within their communities.

Citizens Network

Include Me Network has grown from 0 to 96 individuals, groups, organisations, supporters, Schools, Colleges, and Universities being involved at various levels of engagement across the West Midlands from January 2021 to March 2022, with strong relationships being made, we collectively have a reach to an estimated 21,857. This has contributed to the solid foundations being built to allow the Citizens Network to grow and evolve in the future.

Interna] and External Engagement Work 2021/22

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MIDLAND MENCAP

STRATEGIC REPORT (continued)

Community Services Update 2021/2022 (continued)

The focus in 2022 so has been put onto further solidifying various relationships to improve the overall engagement levels as we move forward. To achieve this target forms of re-engagement have consisted of:

Business Development

Key Stats

Key Organisational Strategic Aims

The organisation is currently completing a refresh of its operating strategy published in November 2019. This is to ensure that our strategic objectives remain relevant but also take into account environmental changes as a result of covid recovery planning and the impacts of the cost-of-living crisis. This has been a strong operating year for Midland Mencap and we have seen strong growth in services across our operating footprint. We have been successful in winning new contracts providing health and wellbeing services, a specialist domestic violence service and a new carer support service in Walsall as well as strengthening the offer from our Children’s services and in our accessible cycling scheme Parkride. As covid restrictions have been relaxed we have seen a significant rise in the demand for support from citizens and families, particularly our community services which has meant increasing the range and availability of opportunities and activities provided.

18

MIDLAND MENCAP

STRATEGIC REPORT (continued)

Key Organisational Strategic Aims (continued)

We now plan to:

The organisation is still recovering from the pandemic with particular pressures on recruitment and retention of staff. This is a sector wide issue and remains the biggest determinate in us successfully delivering our strategic objectives, with pay and conditions a primary driver in people choosing to join the social care workforce. Overall, Midland Mencap is robustly positioned to deliver on its stated strategic objectives not only by using our own resources but by continuing to strengthen collaboration and partnership with key stakeholders with particular reference to co-producing outcomes with citizens and families influencing our decision making through lived experience.

Birmingham Multi-Care Strategic Aims

This has been a year of further recovering the financial position of our organisation and these accounts show we have succeeded in that aim and the organisation is now financially stable. The reputation of the organisation remains positive with citizens, families and funders and this has been reflected in referrals to our team.

We now plan to:

19

MIDLAND MENCAP

Statement of Trustees’ Responsibilities for the Financial Statements

The Trustees (who are also directors for the purposes of company law — except for those mentioned on page 1) are responsible for preparing the Trustees’ Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepting Accounting Practice).

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

The Trustees are responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Statement of disclosure of information to auditors

In so far as the Trustees are aware:

Auditors

Cooper Parry Group Limited will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the Trustees on 22 November 2022 and signed on their behalf by:

hoy M F Gallagher— Ghairmgn

20

MIDLAND MENCAP

Independent Auditor’s Report to the Members of Midland Mencap

Opinion

We have audited the financial statements of Midland Mencap (‘the parent charitable company’) and its subsidiary (“the group”) for the year ended 31 March 2022 which comprise the Consolidated Statement of financial activities, the Consolidated and Parent Company Balance sheets, the Consolidated Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

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 group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees! use ofthe 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 group and parent charitable company 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 ofthe Trustees with respect to going concern are described in the relevant sections of this report.

21

MIDLAND MENCAP

Independent Auditor’s Report to the Members of Midland Mencap (continued)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our Auditor’s report thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the parent and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual 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:

22

MIDLAND MENCAP

Independent Auditors’ Report to the Members of Midland Mencap (continued)

Responsibilities of trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees who are also the Directors of the parent charitable company for the purposes of Company Law, except for those mentioned in page 1 of this annual report, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the 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:

Our assessment focussed on key laws and regulations the group and the parent charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, Charities (Protection and Social Investment) Act 2016, taxation legislation, data protection, anti-bribery and employment legislation.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

23

MIDLAND MENCAP

Independent Auditors’ Report to the Members of Midland Mencap (continued)

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www. frc.org.uk/auditorsresponsibilities. This description forms part ofour Auditors’ Report

Use of our report

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

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exper ion ceemy I
ae
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Glen Bott (FCA) Senior Statutory Auditor for and on behalf of:

Cooper Parry Group Limited

Chartered Accountants and Statutory Auditor Cubo Birmingham, Office 401, 4" Floor, Two Chamberlain Square, B3 3AX

Date: 7 December 2022

24

MIDLAND MENCAP

Consolidated Statement of Financial Activities including the Income and Expenditure Account For the year ended 31 March 2022

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||||||||| |---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|Total| |Funds|Funds|2022|2021| |Notes|£.|£|£|£| |INCOME FROM:| |Donations,|grants and|legacies|2|599,116|643,471|1,242,587|1,256,460| |Charitable|activities|5|1,779,973|-|7,779,973|7,560,604| |Other trading|activities|4|1,461|-|1,461|322| |Investments|3|51,551|-|$1,551|55,948| |Other|income|Sa|9,114|-|9,114|48,081| |Total income|8,441,215|643,471|9,084,686|8,921,415| |EXPENDITURE|ON:| |Charitable|activities|6|7,491,538|662,471|8,154,009|8,000,411| |Total expenditure|TAD S38|662,471|8,154,009|8,000,411| |Unreatised|loss on investments|10a|(33,165)|-|(33,165)|-| |Net movement|in|funds|916,512|(19,000)|897,512|921,004| |Reconciliation|of funds| |Fund balance|at|]|April 2021|10,164,805|912,000|11,076,805|16,155,801| |Fund|balances at 31|March 2022|116|11,081,317|893,000|11,974,317|11,076,805|

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The statement of financial activities includes all gains and losses recognised in the year. The notes on pages 29 to 45 form part of these financial statements

25

MIDLAND MENCAP Registered Number 03006451

Consolidated Balance Sheet As at 3] March 2022

Notes 2022 2021
£ £ £ £
Fixed assets
Tangible assets 10 3,513,702 3,686,175
Investments 10a 966,835 -
4,480,537 3,686,175
Current assets
Stocks 1,187 1,170
Debtors
Cash at bank and in hand		 11 1,089,145
6,306,345		 945,218
6,205,035
Investments 900,000 900,000
8,296,677 8,051,423
Creditors: amounts falling duewithin
one year 12 (800,368) (651,885)
Net current assets 7,496,309 7,399,538
Total assets less current liabilities 11,976,846 11,085,713
Creditors: amounts falling due after 13 (2,529) (8,908)
more than one year
Total net assets 11,974,317 11,076,805
Funded by
Unrestricted funds 15
FreeReserves 6,258,087 ° 5,181,722
Tangible Fixed Assets 2,620,702 2,774,175
Financial Commitments 2,528 8,908
Otherdesignated funds 2,200,000 2,200,000
Restricted funds 16
Tangible FixedAssets 893,000 912,000
Restricted reserves = =
11,974,317 11,076,805

The notes on pages 29 to 45 form part of these financial statements

The accounts were approved by the Board on 22 November 2022, and were signed on their behalf by:

MF Gallagher— Chairman

My 4 el ij ay

26

MIDLAND MENCAP

Registered Number 03006451 Balance Sheet (Company) As at 31 March 2022

Notes 2022 2021
£ £ £ £
Fixed assets
Tangible assets 10 2,619,052 2,771,100
Investments 10a 966,835 -
3,585,887 2,771,100
Current assets
Stocks 1,187 1,170
Debtors 11 1,116,737 891,467
Cash atbank and in hand 5,879,626 6,020,736
Investments 900,000 900,000
7,897,550 7,813,373
Creditors: amounts falling duewithin
oneyear 12 (744,792) (600,208)
Net current assets 7,152,758 7,213,165
Total assets less current liabilities 10,738,645 9,984,265
Creditors: amounts falling due after 13 (2,529) (8,908)
more than oneyear
Total net assets 10,736,116 9:975;357
Funded by
Unrestricted funds 15
Free Reserves 5,914,535 4,995,349
Tangible FixedAssets 2,619,052 2,771,100
Financial Commitments 2,529 8,908
Otherdesignated funds 2,200,000 2,200,000
Restricted funds 16
Restricted reserves - -
10,736,116 9,975,357

The notes on pages 29 to 45 form part of these financial statements

The accounts were approved by the Board on 22 November 2022, and were signed on their behalf by:

MEF Gallagher — Chairman

i :

27

MIDLAND MENCAP CONSOLIDATED STATEMENT OF CASHFLOWS For the year ended 31 March 2022

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Note|2022|2021| |£|£| |Cash|flows|from|operating|activities:| |Net cash|provided|by operating|activities|19|1,072,149|1,040,039| |Cash|flows|from|investing|activities| |Interest|received|7,607|11,964| |Rental|income|43,944|43,984| |Payments|to|acquire|tangible|fixed|assets|(16,009)|(553,278)| |Receipt from|the|sale|of assets|held|for|sale|-|293,000| |Purchase|of investments|(968,899)|-| |Funds|transferred|to|investment manager|awaiting|investment|(31,103)|-| |Net|cash|provided|by|investing|activities|107,689|835,709| |Cash|flows|from|financing|activities:| |Finance|lease|instalments|repayment|(6,379)|(4,973)| |Net cash|used|in|financing|activities|(6,379)|(4,973)| |Change in|cash|and|cash|equivalents|in the|reporting period|101,310|830,736| |Cash|and|cash|equivalents|at|the|beginning|of the|reporting|period|6,205,035|5,374,299| |Cash and|cash|equivalents|at|the|end|of the|reporting|period|6,306,345|6,205,035|

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28

MIDLAND MENCAP NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

The principal accounting policies adopted, judgements and key sources of estimation in the preparation of the financial statements are as follows:

1.1 General information and basis of preparation

Midland Mencap is a charitable company domiciled in the United Kingdom. The address of the registered office is shown on the legal and administrative information page of this report. The charity constitutes a public benefit as defined by FRS102

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 Standard applicable in the UK and Republic of Ireland (FRS 102) — (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

In the Trustees’ Report, there is a review of the charity’s current financial performance, liquidity and the ability to meet its current and future obligations. Financial projections into the foreseeable future have been made taking into consideration the potential risks to various income streams to Midland Mencap. As a result of this analysis, the trustees have reasonable assurance that the charity is able to continue with its operations for the foreseeable future. Therefore, the financial statements are prepared on a going concern basis under the historical cost convention as modified to include property at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The consolidated accounts incorporate the accounts of the parent charitable company and all group undertakings. Consolidation has been undertaken on a line-by-line basis. A separate statement of financial activities for the parent charitable company is omitted from the group accounts by virtue of section 408 of the Companies Act 2006.

1.2 Income recognition

Income from grants for charitable activities is recognised when earned. Other trading activities, investment and other income is recognised when received. Donations and legacies are recognised when notified provided the conditions for their receipt have been met and there is reasonable certainty of receipt and the amounts can be measured reliably.

No amount is included in the financial statements for volunteer time in line with SORP (FRS 102).

1.3 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate costs related to the category. Expenditure is recognised where there is legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as an expense against the activity for which the expenditure arose.

29

MIDLAND MENCAP NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

Expenditure recognition (continued)

As per FRS 102, governance costs form part of the charitable expenditure in the Statement of Financial Activities (SOFA) but more detail is shown in Note 6a to the accounts. Charitable expenditure comprises those costs directly incurred in carrying out its charitable activities and expenditure of an indirect nature necessary to support these activities. Governance costs are those associated with the constitutional and statutory requirements of the charitable company and include audit fees and costs incurred in the strategic management of the charitable company.

Rental charges payable under operating leases are charged to the Statement of Financial Activities on a straightline basis over the term of the lease. Assets held under finance leases are shown as fixed assets and depreciated over the life of the lease.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost (or deemed cost as per FRS 102 first adoption rules) less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life. The rates used are:

Leasehold property Over theperiod ofthe lease
Freehold property Written offover25 yearsand50years
Property additions 10% straight line
Officemachinery Between 10% and35% straight line
Fixtures and fittings Between 10%and35% straight line
Motorvehicles 25%straightline

Purchases of equipment and any fixtures and fittings deemed to be additions, as distinct from replacements, are capitalised if the initial cost of the asset exceeds £1,000. Otherwise the cost is treated as an expense.

Where the current value of a tangible fixed asset is found to be less than its carrying value, the asset is written down to its recoverable amount. The loss on impairment is charged to the appropriate expenditure category in the statement of financial activities. The charitable company currently has no assets to which impairment provisions apply.

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains are recognised within the statement of financial activities unless they reverse a charge for impairment that has previously been recognised as a cost within expenditure headings of the statement of financial activity. Revaluation losses are recognised as an expense in the relevant expenditure heading of the Statement of financial activities except to the extent to which they offset any previous revaluation gains, in which case the loss is shown in the ‘Gains/(losses) on the revaluation of fixed assets section of the statement of financial activities.

30

MIDLAND MENCAP NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

1 ACCOUNTING POLICIES (Continued )

15 Stocks

Stocks are valued at the lower of cost and net realisable value.

1.6 Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably.

L7

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.

1.8 Leases

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability.

Rentals payable and receivable under operating leases are charged to the SoFA ona straight-line basis over the period of the lease.

1.9 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which a donor has specified to be solely used for particular areas of the charity’s activities.

1.10 Going concern

These accounts have been prepared on a going concern basis. The financial results reported within this report demonstrate a strong reserves and cash position which will support and underpin the organisation’s aims and objectives going forward as well as meet the risks of the current uncertain financial climate. In addition, the organisation has strong and well-established relationships with main commissioners and funders that will serve to retain and secure services.

The forecast for 2022 23 and projection for next 12 months assume a surplus position despite growing costs and inflationary pressures. As a further check the organisation will produce a 3-year business plan to align with 2023 -26 strategic objectives. Therefore, the financial statements have been prepared on a going concern basis.

31

MIDLAND MENCAP NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

1 ACCOUNTING POLICIES (Continued)

1.11 Financial] Instruments

The charitable company enters into only basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.12 Pensions

The charitable company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charitable company. The annual contributions payable are charged to the Statement of Financial Activities.

2

Donations, grants and legacies

Unrestricted Restricted Total Total
funds funds 2022 2021
£ £ £ £
Donations 25,789 - 25,789 32,399
Legacies 83,989 - 83,989 19,186
Grants 489,338 643,471 1,132,809 1,204,875
599,116 643,471 1,242,587 1,256,460

Of the £1,256,460 income received in 2021, £626,365 was restricted income and £630,095 was unrestricted income.

3 Investment income

Investment income
Unrestricted Restricted Total Total
funds funds 2022 2021
£ £ £ £
Rental income 43,944 - 43,944 43,984
Interest receivable 7,607 - 7,607 11,964
51,551 - 51,551 55,948

All investment income received in 2021 all related to unrestricted funds.

32

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

4 Other Trading Activities

Unrestricted Restricted Total Total
funds funds 2022 2021
£ £ £ £
Bar sales - - - 322
Community Cafe 1,461 - 1,461 -
1,461 . 1,461 322

Income from Other trading activities in 2021 all related to unrestricted funds

5 Income from charitable activities

Unrestricted Restricted Total Total
funds funds 2022 2021
= £ £ £
Carers activities (Forward Carers) 676,768 - 676,768 635,297
Domceare fees 4,566,047 - 4,566,047 4,608,440
Supporting People 1,319,308 - 1,319,308 1,340,753
HB& Residents’ contributions 758,311 - 758,311 689,030
Activity and Travel Contributions 48,829 - 48,829 20,509
Other Contributions 45,989 - 45,989 38,760
PA Service 364,721 - 364,721 227,816
7,779,973 - 7,779,973 7,560,604

Income from Charitable activities in 2021 all related to unrestricted funds

5a Other income

Unrestricted Restricted Total Total
funds funds 2022 2021
£ £ £ £
Other income 9,114 - 9,114 5,081
Profit from sale offixed asset - - ° 43,000
9,114 - 9,114 48,081

In 2021 all other income related to unrestricted funds.

33

MIDLAND MENCAP

Notes to Financial Statements (continued) For the Year ended 31 March 2022

6 Resources expended Unrestricted Restricted Total Total
funds funds 2022 2021
£ £ £ £
Charitable expenditure
Salaries, wages and social security 5,959,270 468,660 6,427,930 6,245,829
Other staffcosts 98.707 14,712 113,419 85,063
Direct costs forcharitable activities 370,850 84,943 455,793 375,003
Office, SupportandAdmin costs 778,603 72,679 851,282 986,804
Governance (note 6 a) 114,624 2,477 117,101 96,982
Depreciation 169,484 19,000 188,484 210,730
7,491,538 662,471 8,154,009 8,000,411

Of the £8,000,411 expended in 2021, £662,493 was restricted expenditure and £7,337,918 was unrestricted expenditure.

Unrestricted Restricted Total Total
funds funds 2022 2021
£ £ £ £
6a Governance costs
Salaries and social security 39,000 - 39,000 39,026
Trustees’ indemnity insurance - - : 1,512
Audit fee 21,150 - 21,150 20,087
Auditfee—prioryearunderprovision 18,565 “ 18,565 -
Printing - - - 23
Travel expenses 47 - 47 -
Payrollcharges - 720 720 -
HR consultancy 34,842 1,757 36,599 35,825
Affiliation 1,020 - 1,020 509
114,624 2,477 117,101 96,982

Expenditure not directly attributable to governance has been apportioned on an appropriate basis such as staff time or usage.

34

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

6b

Net Group incoming resources for the year

Net incoming resources for the group are stated after charging:

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|||||| |---|---|---|---|---| |2022|2021| |£|£| |Depreciation|188,484|210,730| |Rentals from|operating|expenses|245,173|263,260| |Auditor’s|remuneration — current|year|21,150|21,618| |Auditor’s|remuneration — prior year|under provision|18,565|-|

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7 Trustees

During the year, one trustee was reimbursed out of pocket expenses in relation to travel. The total amount reimbursed amounted to £47 (2021: £nil). No Trustee received any remuneration (2021: £nil). There were no.donations from Trustees to the charitable company (2021: Nil)

8

Employees

Tota] Staff costs

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||||||| |---|---|---|---|---|---| |!|2022|2021| |£|£| |Wages|and|salaries|5,948,228|5,821,293| |Social|security|costs|413,454|361,762| |Pension|scheme|contributions|105,248|101,800| |6,466,930|6,284,855| |Number of employees| |2022|2021| |No.|No.| |The|average number of employees|during|the year was:|386|387|

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In 2021/22 the organisation had seven senior managers whose total pay remuneration costs amounted to £465,438 (2021, eight senior managers: £468,905). Pension contributions in respect of these individuals were £5,988 (2021: £5,415).

There was one employee whose annual emoluments were in the range £100,000 - £110,000, one employee in the range of£80,000 - £90,000 and two employees in the range of £60,000 - £70,000. (2021: one employee in the range of £90,000 - £100,000 and one employee in the range of £60,000 - £70,000.

35

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

9 Pension scheme

The Charitable group contributes to group personal pension plans for certain employees. Midland Mencap continues to comply with Work Place Pensions law by making contributions to the new pension scheme for all eligible employees. All employees who qualify are automatically enrolled into the pension scheme. Those employees who are not automatically eligible are given the opportunity to opt into the pension scheme. The employer contribution is 3% in line with the Pension regulators requirements. The old pension scheme was closed to new entrants so it is set to remain stable or decrease as employees make career moves. The charge in the Statement of Financial Activities represents contributions paid by Midland Mencap in respect of the year ended 31 March 2022 amounted to £105,248 (2021: £101,800).

10 Tangible fixed assets (Group)

Freehold Leasehold Office Fixtures& Motor
property property equipment fittings vehicles Total
£ £ £ £ £ £
Cost orvaluation
At April 2021 3,604,271 606,935 240,014 318,246 40,889
Additions 10,512 5,499 - - - 16,011
At 31 March 2022 3,614,783 612,434 240,014 318,246 40,889 4,826,365
Depreciation
At 1 April 2021 165,258 566,942 177,484 199,203 15,293 1,124,179
Charge foryear 67,905 27,631 25,809 57,861 9,278 188,484
At 31 March2022 233,163 594,573 203,293 257,064 24,571 1,312,663
Net bookvalue
At 31 March2022 3,381,620 17,861 36,721 61,182 16,318 3,513,702
At31March2021 3,439,013 39,993 62,530 119,043 25,596 3,686,175

The charity lets a portion of its freehold property to another charity with similar charitable purposes and receives a rental income from this arrangement

36

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

10 Tangible fixed assets (continued))

Tangible fixed assets (Company only)

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Freehold|Leasehold|Office|Fixtures &|Motor| |property|property|equipment|fittings|vehicles|Total| |£|£|£|£|£|£| |Cost| |At|1|April 2021|2,654,271|606,935|235,955|316,596|40,889|3,854,646| |Additions|10,512|5,499|-|-|-|16,011| |At|31|March|2022|2,664,783|612,434|235,955|316,596|40,889|3,870,657| |Depreciation| |At|1|April|2021|127,257|566,942|175,813|198,240|15,293|1,083,545| |Charge|for year|48,907|27,631|24,797|57,447|9,278|168,060| |At|31|March|2022|176,164|594,573|200,610|255,687|24,571|1,251,605| |Net|book|value| |At|31|March 2022|2,488,619|17,861|35,345|60,909|16,318|2,619,052| |At 31|March 2021|2,527,013|39,993|60,114|118,356|25,596|2,771,100|

----- End of picture text -----

10a __—s*#Fixed asset investments

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2022| |£| |Market|value|of investments|at|1|April|2021|-| |Additions|968,899| |Loss|in the year|(33,165)| |Movement|in|cash|31,101| |Market|value|of investments|at|31|March|2022|966,835| |Historical cost|of investments|at 31 March 2022|1,000,137|

----- End of picture text -----

37

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

:

11 Debtors

Group Company Company
2022 2021 2022 2021
£ £ £ £
Trade debtors 611,193 542,702 691,881 463,607
Prepayments 54,712 47,533 49,442 40,425
Accrued income 423,240 354,982 375,414 387,434
1,089,145 945,218 1,116,737 891,467
12 Creditors: amounts falling due within one year
Group Company
2022 2021 2022 2021
£ £ £ £
Tax and Social Security 124,227 118,160 115,594 109,846
Othercreditors 169,017 104,775 132,195 103,769
Accruals
Deferredincome (12a)		 487,014
20,110		 346,456
82,494		 476,893
20,110		 315,635
79,866
800,368 651,885 744,792 609,116
12a _—Deferred income analysis(Group and Company)
2022 2021
£ £
Deferred income brought forward 82,494 2,000
Deferred income released inyear (82,494) (2,000)
Deferred income during the year 20,110 82,494
Deferredincomecarriedforward 20,110 82,494

38

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

13 Creditors: amounts falling due after 1 year

Group Company
2022 2021 2022 2021
£ £ £ £
Obligations underfinance leases 2,529 8,908 2,529 8,908
2,529 8,908 2,529 8,908

14

Analysis of net assets between funds

Restricted
Total
funds
funds
GROUP (CURRENTYEAR
a
ee ee ee
ee
Tangible fixed assets
2,620,702
893,000
966835/966,835
4187
Unrestricted
Restricted
Total
funds
funds

39

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

14 Analysis of net assets between funds (Continued)

eeefunds funds |COMPANY (CURRENTYEAR) |mefT ee |Tangiblefixedassets | 2,619,052] = | 2,619,052 [Fixed986,835)assetinvestments FB Stocks = | 966,835 | 6737-116, [Debtors | [Cashatbankandinhand 737 | [Investments |5,879,626]900,000) =900,000 | 5,879,626 | ear re,ee a ae Tae eefunds funds [Tangible[COMPANY(PRIORYEAR)| || TO [Stocks fixedassets | 7700] = | | 2,771 1 ,17 0 0 | [Cashatbankandinhand 900,000 [Investments |S 020,736 | =| | 6,02(90 0, 736000 | [alaska8,908 8,908 eeear aeeS aes P|nema nr

40

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

15 Unrestricted funds Group (Current year)

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Atl|April|| Incoming|||Outgoing|| Transfer/gains|At31| |2021|resources|||resources|or (losses)|March| |2022| |es| |5,181,722|||8,441,215|||(7,491,538|126,688|||6,258,087| |Designated funds|ee|||eee|||ee|ee|ee| |Tangible|fixed assets|2774175||ss -|=||153,473)|||2,620,702| |Other designated funds|2,200,000|8908] =|-||=-| ||~~6,380)=||2,200,0002,528| |ee||ee|(ee|(ee|ee| |10,164,805|||8,441,215 ||(7,491,538)|(33,165)|||11,081,317|

----- End of picture text -----

The £2,200,000 reserves are designated to Domcare services (£800k), IT system investment (£400k), Community Hub project (£500 k) and new business development funds of (£500k).

Unrestricted funds Group (Prior year)

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Atl|Incoming|||Outgoing|||Transfer/gains|At 31| |April|resources|||resources|or (losses)|March| |2020|2021| |esee Ss|(ee|ee|es|(ee|er| |4,589,868 ||8,291,320 ||(7,337,918|361,548)|||3,658,867| |Designated funds|ee|ee|eee|eee|eee| |Tangible|fixed assets|i|361,548|||2,774,175| |8908]|||e|8,908| |Other designated funds|2,200,000||-| S||C= |,200,000| |esee|ee) ||ee|ee|

----- End of picture text -----

4j

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

16 Restricted Group funds (Current Year)

|At1|Incoming | Outgoing | Transfer/gains
At31| |---|---| |April|resources | resources
or (losses)
March| |2021|2022| |eS
a ee ee ee ee
ee ee
ee ee
CommunityHub————s|
SS (|
~—«'100,000 |
~(100,000)|
| CC |
WalsallHub
|=|
39,500]
39,500) ||e
WalsallGroups
=|
7000]
7,000) |
SportsEngland
=|
103,707 |
(103,707)
||e
Children’sCommissioned
| ez.
Servic s
233,978
(233,978
Birmingham Multi-Care
p=|
159,286]
(159,286);T=|
Freehold property-BMC
912,000;-|
(19,000);
=
~————=|
_~__-893,000||

Restricted Group funds (Prior year)

|Atl
Incoming ||Outgoing |Transfer/gains
At31| |---|---| |April
resources ||resources
or(losses)
March| |2020|2021| |a
ee
ee
‘CommunityHub
|
= | 118,750 |
(118,750) ||e
WalsallHub
|
39,500]
39,500)||
WalsallGroups
|
=|
7000]
7,000) ||e
SportsEngland
13,398
55,625
(69,023);lS
Children’sCommissioned
249,934 | (249,934)Ls
Services
BirminghamMulti-Care
—-|:159,286 |
(59,286);||
Freehold property-BMC
931,000; _———-|
(19,000);=|
__9'12,000||

42

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

16 Restricted funds (continued)

The Community Hub — is a service for adults with learning disability, offering meaningful daytime opportunities and activities such as education, training and leisure. The staff consults individuals, their carers and families, to tailor services to suit their needs and wishes, arranging support and activities, and signposting to other relevant agents if necessary. You Choose service is part of the Community Hub grant that gives information and advice, using person-centred approaches, to young people with learning disabilities in the transition period of moving from education to adult life. Staff helps the service-user to plan and organise their care support, exploring their options, in a culturally sensitive way to meet their everyday needs, and give practical advice in managing their finances.

The Walsall Hub — is a service for all people with a learning disability, offering opportunities and activities such as education, leisure and training. The services are provided in a bespoke setting in Walsall town centre. Walsall City Council provides funding towards the building and clubs.

Walsall Groups — is a service facilitating social groups for people with a learning disability and receives funding from Walsall Council.

Sports England - Park Ride is a Sports England funded project that facilitates an inclusive family cycling project that provides the whole family, regardless of age or need with the opportunity to enjoy the great outdoors together by using a range of adapted and mainstream bikes.

Children’s Commissioned Services — offer short breaks usually in 2 hour blocks to family carers. This gives them some free time to pursue their own interests, secure in the knowledge that their dependent is professionally supported, whether at home or on planned outings.

Birmingham Multi-Care Restricted income — Birmingham City Council funds the two respite care homes and the day centre to provide respite care and day time activities for Birmingham Multi-Care’s citizens and carers.

Freehold property BMC represents the value ofthe properties held in the subsidiary Birmingham Multi-care Support Services Limited.

43

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

17 Capital commitments

There were no material capital commitments as at 31 March 2022.

18 Operating lease commitments

At 31 March 2022 the group company had minimum future lease payments under non-cancellable finance and Operating leases as follows:

Land and
Buildings Other 2022 2021
£ £ £ £
Less than year 235,460 13,420 248,880
2-5 years 661,560 - 661,560 728,240
Morethan 5 years 1,121,950 - 1,121,950 1,453,410
2,018,970 13,420 2,032,390 2,441,992

Our three main housing long term operating leases are for periods of 10 and 20 years.

19 Net cash provided by operating activities

Net cashcash provided by operatingoperating activities
2022 2021
£ £
Net movement in funds 897,512 921,004
Interestreceived (7,607) (11,964)
Rentreceived (43,944) (43,984)
Depreciation
Profiton disposal offixed assets		 188,484
-		 210,730
(43,000)
Increase in stock (17) (4)
Increase in debtors (143,927) (129,030)
Increase in creditors 148,483 136,587
Loss on investments 33,165 -
1,072,149 1,040,039

44

MIDLAND MENCAP

Notes to the Financial Statements (continued) For the year ended 31 March 2022

20 Related party transactions

There were no related party transactions between Midland Mencap and its Trustees in the year ended 31 March 2022.

Birmingham Multi-care Support Services Limited is a wholly owned subsidiary of Midland Mencap. Transactions during the year related to providing all functions of the Finance services, strategic and operational management. These services range from day to day transaction processing to internal and external reporting and governance. The related part transactions also include Central overhead costs allocation as BMC operates from the parent company’s premises. Birmingham Multi-care Support Services paid £84,795 to Midland Mencap for the provision of these services (2021: £85,671).

Midland Mencap is a member of Forward Carers Consortium Limited and the CEO of Midland Mencap is a Board Director of the Consortium. Midland Mencap facilitated the transition of Forward Carers Consortium Limited from being a Midland Mencap project to delivering the project independently as a social enterprise organisation. In 2021/22 the total value of transactions to CERS, Family Carers and management services amounted to £520,918 (2021: £550,014). The amount due to Midland Mencap at 31 August 2022 was £66,286 and is included in trade debtors.

21 Net income from activities of subsidiary

Birmingham Multi-Care Support Services Limited, the wholly owned subsidiary of the charity is a charity providing care and support to people in Birmingham who have multiple disabilities and respite to their Parents and Carers. A summary of its results for the year to 31 March 2022 are shown below.

Audited accounts will be filed with the Registrar of Companies.

2022 2021
Incoming resources 927,073 775,739
Resourcesexpended (790,299) (728,823)
Netexpenditure 136,774 46,916
The assets and liabilities at 31 March were:
Fixed assets 894,649 915,077
Current assets 570,944 326,499
Current liabilities (227,393) (140.150)
Total net assets 1,238,200 1,101,426
Total funds
Unrestricted funds 345,200 189,426
Restricted funds 893,000 912,000
1,238,200 1,101,426

45