**REGISTERED COMPANY NUMBER: 02971171 (England and Wales) REGISTERED CHARITY NUMBER: 1046225**
## **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **FOR**
## **BETHPHAGE**
D.R.E. & Co. (Audit) Limited 7 Lower Brook Street Oswestry Shropshire SY11 2HG
**BETHPHAGE**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
||**Page**|
|---|---|
|**Reference and Administrative Details**|1|
|**Report of the Trustees**|2 to 17|
|**Report of the Independent Auditors**|18 to 21|
|**Statement of Financial Activities**|22|
|**Balance Sheet**|23 to 24|
|**Cash Flow Statement**|25|
|**Notes to the Cash Flow Statement**|26|
|**Notes to the Financial Statements**|27 to 35|
**BETHPHAGE**
**REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2023**
|**TRUSTEES**|Derek Lum, Chair|
|---|---|
||Irena Sobolewska, Vice Chair|
||Anthony Charles Aston|
||Ruth Houghton|
||Anna Krauss|
|**COMPANY SECRETARY**|Stuart Wheeler|
|**REGISTERED OFFICE**|8 Longbow Close|
||Harlescott Lane|
||Shrewsbury|
||Shropshire|
||SY1 3GZ|
|**REGISTERED COMPANY**|02971171 (England and Wales)|
|**NUMBER**||
|**REGISTERED CHARITY**|1046225|
|**NUMBER**||
|**AUDITORS**|D.R.E. & Co. (Audit) Limited|
||7 Lower Brook Street|
||Oswestry|
||Shropshire|
||SY11 2HG|
|**SOLICITORS**|Trowers and Hamlin LLP|
||3 Bunhull Row|
||London|
||EC1Y 8YZ|
|**BANKERS**|The Co-Operative Bank plc|
||1 Balloon Street|
||Manchester|
||M4 4BE|
||CAF Bank Ltd|
||25 Kings Hill Avenue|
||West Malling|
||ME19 4JQ|
|**SENIOR MANAGEMENT TEAM**|Stefanie Kay, Chief Executive Officer|
||Alice Blakeman, Service Development Manager|
||Helen Nickless, Head of Operations|
||Clare Shaw, Quality Manager|
||Chris Stephens, Head of Finance and IT|
||Stuart Wheeler, Head of Human Resources|
|
**HONORARY PRESIDENT**|Donna Werner|
|**MEMBERS**|Mosaic|
||Council of Lutheran Churches|
## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
The Trustees present their annual report together with the audited financial statements of Bethphage for the year 1 April 2022 to 31 March 2023. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the second edition Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (October 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Introduction**
The year was dominated by financial pressure due to the fee increases that Commissioners provided being less than the increases in cost that providers faced. The continuing spectre of Covid-19 remained, but thankfully its impact and that of other seasonal illnesses was far less than in the previous year.
The outlook for the coming year is extremely uncertain for the sector given the economic impact of the pandemic, Brexit changes, the war in Ukraine, the increases in National Minimum Wage (NMW) and consequent increase in Employer National Insurance and Pension contributions. Again, settlements imposed by Commissioners for the coming year fall short of the cost increases seen. This is compounded by the difficulty in recruitment as providers in the sector cannot compete for staff against sectors such as retail and hospitality where pay rates have increased and are funded by higher sales prices, or with local authority care roles which command higher rates of pay. Although there has been much talk of ‘properly funding social care’ by the Government, to date the burden of this appears to remain squarely with Local Authorities and their budgets have been squeezed still further this year by Central Government.
A House of Commons briefing paper ‘Adult social care workforce in England’ of 5 September 2022 highlights several issues that Social Care faces including:
_High turnover: Skills for Care estimates the turnover rate of directly employed staff working in adult social care was 28.5% in 2020/21, equivalent to approximately 410,000 leavers over the year._
_Low pay: care worker pay is among the lowest in the economy in general and is falling behind other sectors such as retail._
_Most social care staff are employed by private sector providers who are responsible for setting their pay and conditions. However, public funding plays an important role. The Health and Social Care Committee suggested in July 2022 that ‘increases in pay and improvements in terms and conditions will not be possible without an increase in social care funding.’_
A second House of Commons briefing paper ‘Adult Social Care Funding (England)’ of 17 January, 2023 highlighted:
_Workforce pressures. In 2021/22 there were an estimated 165,000 vacancies and the number of vacant posts increased by 52% between 2020/21 and 2021/22._
The root causes of staff shortages are undoubtedly the hollowing out from the labour market (in sectors other than Learning Disabilities) of people from the European Union because of Brexit, and people not returning to the workforce after Covid-19. The Government Scheme permitting the recruitment of Care Workers from overseas
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## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
has to a degree helped, but the fundamental issues remain unchanged and the additional costs in sponsoring staff are unsustainable, due to the costs of sponsorship and the pay rate, which is above the NMW.
At the end of the current year, Bethphage was poised to return unviable contracts as the uplifted rates from two of the local authorities we work with were too low to cover the costs of providing the services. However, a significant number of providers apparently also stated their intentions to hand back services, which resulted in a further eleventh hour increase to rates, allowing Bethphage to continue providing those services for a further year.
Although Bethphage is a charity, it is not possible to raise significant funds from the general public for services which should receive statutory funding. To continue to provide services at a loss would ultimately lead to the demise of the Charity. Therefore, the Trustees will not agree to do this and will hand back loss-making services. This is devastating for the people that we support and our staff, and does not provide a sustainable future model for the Charity.
The unrelenting pressure on cost in the sector, staff churn and the associated costs of training, over time will inevitably result in reducing the quality of services in the sector. To date, other than platitudes, and claims that the sector does not have highly skilled jobs, the Government has done little to support the sector despite numerous reports from various organisations, which outline the significant challenges the sector is facing: e.g. the Care Providers Association, VODG, National Care Forum, Home Farm Trust sector Pulse report.
However, the Board do recognise how vital our staff are in delivering our services. Again, this year has been exceptional and so have our staff. Their creative energy, optimism, ability to adapt to rapidly changing new and highly challenging situations, and their selflessness at times of great personal risk has been inspirational. As the Board has said for the previous two years, our hope is that our country ultimately recognises the importance and value that society places on social care services and that this is reflected in the rewards that dedicated and skilled staff in the sector receive. Bethphage will continue to strive to invest in the training of its staff, which is vital to ensuring the delivery of high quality services, and the development of individual’s careers.
The Board would also like to thank the people we support, their families and our local authority partners for their support, cooperation and help during the year.
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## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
_**In response to being asked:**_
_**What you think about the staff who support you, people commented that staff are:**_
_**“nice”, “caring”, “friendly”, “kind”, “know my routine”, “great”, “helpful”, “listen to me”, “understand me” and “brilliant”.**_
People we support: Supported living/residential care - 2022
## **Objectives and activities**
## **a. Policies and objectives**
**Our Vision** is of inclusive communities where all people have the opportunity to live the life they choose.
**Our Mission** is to be an excellent provider of services for people with disabilities.
**Our Values:** We seek to deliver services based on four core values. These core values really shape how we work and make a positive difference to the quality of life for the people we support:
At our AGM in October 2022 the Board was delighted to re-appoint Donna Werner as Honorary President of Bethphage for another one-year term. Donna brings a wealth of experience to Bethphage and is a valuable sounding board for both the Board and Executive Management Team (EMT).
During the year Bethphage continued to implemented its Strategic Plan for 2020 – 2024 which, because of Covid-19 and the likely changing financial landscape, was separated into two parts:
2020 - 2022 2022 - 2024
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## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
The first part of the plan is entitled ‘Building Resilience and delivering Best Value’ and lays out the actions and investment plans designed to prepare Bethphage for the challenges ahead. The second part is entitled ‘Creating Sustainable Growth and Quality’ and focuses on the future growth opportunities that will emerge, whilst maintaining our focus on high quality provision. At the time of developing the plan we hoped that the second part would begin after 2022. However, in that plan the board recognised that it was likely that the start of the second part might actually be rather later, and very much dependent on economic climate improvement. This has proven to be the case.
_**In response to being asked:**_
_**What do you think about the staff who support you, people commented that staff are:**_
_**“Very good. Helpful, good communication and thoughtful. Cannot fault them.”**_
_**“They are fantastic, very supportive, there if you need a chat.”**_
_**“I think that they support me with everything that we do as a group and that they help me with independence.”**_
_**“Make me laugh, make me happy.”**_
_**“They are conscientious and well trained.”**_
Families survey: People who use Day Opportunities - 2022
Bethphage recognises that enormous strain has been placed on our Commissioners’ finances by the pandemic and the war in Ukraine, and that they will be seeking to ensure they make savings and improve efficiencies going forward. During the first part of the Strategic Plan Bethphage has looked in detail at how we can improve the efficiency, and therefore lower the cost, of service delivery. Our aim is also to work constructively with Commissioners to develop where appropriate, new models of service and Assistive Technology (AT) which may reduce overall costs, but without sacrificing quality or safety.
As far as is currently possible, AT is being adopted across the organisation to enable the people we support to utilise technology, which increases their independence and reduces the need for face to face support. In addition, Bethphage has invested in an AT post. The postholder provides a support function for the managers and the people we support, carrying out assessments to identify suitable technology on a person centred basis.
The changes in working practices necessitated by Covid-19 have continued to be employed where they yield cost savings or efficiency improvements. For example, face to face meetings are examined to ensure that real value is being obtained by the time and expense of travelling.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance
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## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
**TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)’.
## **b. Strategies and activities for achieving objectives**
Our primary activities are to support people with disabilities to achieve their potential through the direct provision of supported living services, registered care homes, community inclusion, and day opportunities. As at 31st March 2023, we were delivering 8,401 (2022: 7,862) hours per week of support to 165 (2022: 155) people in Shropshire, Telford, Walsall, Wolverhampton and Birmingham, 97 of whom live in our small care homes or their own home with us as the main support provider (‘supported living’) whilst the other 68 attend our day opportunity services. The Shropshire Shared Lives scheme managed by Bethphage has progressed well with standards continuing to improve as measured by our internal quality scores. 55 people with learning disabilities, autism and mental health live permanently or in respite with 44 households and 64 Shared Lives carers. The scheme provides valuable respite breaks for families and permanent Shared Lives carers and enables people to live and be involved in their local communities.
Bethphage’s 2020 - 2024 strategic plan sets out the Charity’s Key Strategies and Activities, and our Aims and Objectives detailed below.
## **c. Public Benefit**
We are confident our objectives and activities are beneficial to the people we support as well as being of benefit to the public in general.
Our vision is of inclusive communities where all people have the opportunity to live the life they choose. We achieve this through our direct service delivery and through our support and contributions to the development of disability services in the UK.
We promote the integration of people with learning disabilities into universal community services such as having equal access to health care, education, employment, sport, and leisure activities.
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**(A Company Limited by Guarantee)**
## **BETHPHAGE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
_**In response to being asked:**_
_**What do you like most about your support?**_
_**“I like that they are there for me and help me to be a better person.”**_
_**“Going out on trips and having lunch out.”**_
_**“Going out and about and the companionship.”**_
Families survey: People who use Day Opportunities - 2022
## **d. Service Quality**
A fundamental part of Bethphage’s approach is to continually strive to improve the quality of the services which we deliver and to achieve better outcomes for the people we support (who are some of the most vulnerable in society). As well as statutory Care Quality Commission (CQC) inspections of both of our Registered Homes, and four registered locations, from where we operate community and our Shared Lives services, Bethphage has a long established internal quality audit system in place for all services. Each service is assessed against a range of quality and performance measures by the Bethphage Quality Manager and areas of improvement identified and reported on to the area manager, service manager and staff, the EMT and the Board. During the year the quality system has returned to the normal processes used prior to the pandemic, which relied on face to face meetings with managers, visits to the properties of the people we support, desktop reviews of reporting and systems, surveys of the people we support, their families, and staff. Added to this, regular reporting from the Positive Behaviour Support Team and close monitoring of compliments and investigation of complaints, concerns and suggestions, has provided Bethphage with additional layers of performance monitoring.
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**(A Company Limited by Guarantee)**
## **BETHPHAGE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
_**In relation to your work on quality – I can provide the following compliment received by the Commissioners:**_
_**‘’I would like to say that [Named] Shared Lives Officer has been absolutely wonderful in trying to accommodate the needs of [Service User]. Really responsive with emails and phone calls always very professional and client centred. She kept me in the loop with how she was progressing and really tried to engage the [Service User].’’**_
## Commissioning and Development Manager - 2022
In addition, Bethphage commissioned a local advocacy group to undertake additional engagement with the people we support through interactive group sessions to ascertain the view of the person receiving the service in a different format to ensure that the feedback we derive from our surveys marries up with the feedback from the advocacy service’s findings. The findings are reported to the Board and EMT, evidencing culture and progress. Feedback from those we support and their families plays an integral role in getting beneath the surface of service delivery, ensuring internal views are accurate reflections.
Ongoing relevant and focussed staff training and development is a key part of ensuring that we have the resources available to deliver high quality services and to recognise when change or improvement is required. The majority of training remains online, but with essential training occurring face to face.
Our investment in Positive Behaviour Support (PBS) supports people with the ongoing management of behaviours of concern, for which medication would have been historically prescribed. The principles of STOMP (An initiative that we embraced when it was launched, but no longer exists) are still utilised and the monitoring of medical reviews have been incorporated into Bethphage’s organisation wide Care Management IT system, which provides much greater visibility on medication reviews and the use of psychotropic medication. The Quality Manager reports quarterly to the EMT and the Board and provides progress updates on how the use of medication affects the wellbeing of the people we support. The Board are pleased to report further progress in the year. Bethphage’s Health Improvement Lead plays a vital role guiding staff on medication protocols, infection control, in addition to the normal responsibilities of supervising medication procedures, and improving the health and well-being of the people we support.
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## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
_**In relation to transition into a service:**_
_**Mum said: She was very happy, and commented that the setting was ‘perfect’, the staff are ‘amazing’, she has no concerns and thinks things have gone better than expected. Mum also said she felt the ‘organisation are ‘nailing it’, communication is great, and that she is confident if any ‘bumps in the road happen, it’ll be solved’.**_
Parent in meeting with Bethphage Positive Behaviour Team - 2022
## **e. Volunteers**
Bethphage’s greatest asset is its people. The Trustees, who are themselves volunteers, would like to thank the staff and volunteers for their continuous efforts to ensure that we deliver consistently high-quality, person-centred services in these very challenging times. In recent years, Bethphage has enjoyed the benefit of a steadily increasing number of volunteers, especially in the day opportunity services. Bethphage utilises the time and enthusiasm contributed by volunteers to add value and opportunity to the beneficiaries of our services and not as a replacement for core funded staff. The Trustees wish to record their appreciation of Bethphage’s volunteer supporters and the benefits they bring to the experiences of people using Bethphage services and to the success of the Charity. Bethphage Friends, a group established to increase engagement with our supporters and volunteers, continues to grow.
The Trustees would also like to thank our donors and grant funders for their generous contributions which enable Bethphage to provide enhancements to services and facilities for users of its services.
## **f. Sustainability**
In keeping with many other organisations Bethphage is conscious of its impact on the environment and in particular its energy consumption in the process of delivering services. Work has started to examine the organisation’s carbon footprint and to develop strategies to reduce Bethphage’s environmental impact. The reduction in face to face meetings and the installation of solar panels on the roof of the head office building, together with waste reduction and recycling, are tangible outcomes from the first phase of this work.
## **Achievements and performance**
## **a. Achievements and Performance**
In 2022/23, we retained our existing contracts, consolidating and maintaining our current provision. Our three day opportunity locations, through which we provide meaningful, person-centred day opportunities for adults with learning disabilities, continue to enable large numbers of people with a learning disability to access and benefit from Bethphage services and is consistent with our approach of enabling people to live the life they choose.
The current number of CQC registered locations is six. None of the locations have been inspected by CQC during the 2022 - 2023 financial year. All six locations are each registered as ‘Good’ across all domains.
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**(A Company Limited by Guarantee)**
## **BETHPHAGE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
_**“[Service] staff are working really hard and well with (person’s name) and we appreciate all they do very much.”**_
Clinical Lead Occupational Therapist - 2022
## **b. Fundraising**
Bethphage is registered with the Fundraising Regulator and complies with the Code of Fundraising Practice. Community fundraising generally takes place face to face with the public at events and Bethphage open days etc, through donations via the Bethphage website, and from applications to trusts, foundations, and corporate partners. Third party organisations are not used to fundraise on behalf of Bethphage.
Fundraising and the approach to be used requires approval of the EMT prior to commencing. The fundraising approach is monitored and funds are applied only to the purpose for which they were raised. Fundraising activities involving vulnerable people are restricted to small sums for subscriptions and similar items which represent fair value to them as individuals for the activity concerned.
## **c. Future Plans and Investment**
The primary objective for the coming year is to promote the principles and five strategic goals of the four-year strategic plan ‘Building Resilience, Delivering Best Value’, which outlines the approaches we will follow over the first period of the plan to translate the mission, vision and core values of the charity into positive outcomes.
The detailed delivery objectives for 2023/2024 are aimed at continuing to position Bethphage to deal in the most effective way with the financial challenges that the sector is facing. Those objectives are focussed under five strategic headings:
- **Maintain a strategic relationship with commissioners**
## **Efficiency improvement**
- **Improved management processes and communication**
- **Growth**
## **Improved service delivery**
The availability of suitable high-quality accommodation remains a challenge and Bethphage continues to seek to invest further in suitable property as the opportunity arises.
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**(A Company Limited by Guarantee)**
## **BETHPHAGE**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
_**“Our son has been attending [Day Opportunity] for several years and we can't think of anything that could be done better! Communication is excellent. Individuals are extremely well supported and respect given to their individual likes/dislikes and needs. We feel our son is in very safe hands and his mood is noticeably happier after attending the farm. Well done to all the caring staff!”**_
_**“The service provided is excellent, I can’t think of anything they could do better.”**_
_**“Our relative is very happy and looks forward to each day that he can attend.”**_
_**“[Day Opportunity] offers excellent care & support demonstrated by the fact that our relative was seriously mentally ill last year and he would not be recovering so well if he was not so well supported.”**_
## Families survey: People who use Day Opportunities - 2022
## **Financial review**
## **a. Overview**
The Low Pay Commission recommendation, in its report ‘The National Living Wage beyond 2020’, sets a target of a National Living Wage (NLW) at 66.7% of the median hourly earnings by 2024.
Costs for 2023-24 are increasing due to the NLW increase of 9.7%, resulting in a minimum hourly rate of £10.42. Local Authority Settlements for 23-24 ranged from 7-12%, with the bulk at the lower end of the range.
We continue to balance the competing priorities of:
- Competition with sustainability
- Price with quality
- Provider of choice with employer of choice.
During the year investment in organisation wide IT systems together with the associated training costs has continued. After these investment costs, the results for 2023 show a surplus of £22,256 (2022: £236,214).
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## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
**TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
The underlying trading for the year was very significantly affected by increased costs of working for example, recruitment, staff training, staff IT training etc. and by reduced support hours provided – particularly in our Day Opportunities. The infection control protocols relaxed gradually through the year, in accordance with government advice responding to community covid reductions and overall risk reduction
The Trustees are particularly thankful for the efforts of the senior management of Bethphage who provided continued focus to enable the Charity to emerge from the Covid-19 pandemic during the year. In the coming year the Trustees expect financial pressure and recruitment problems to remain.
## **b. Going Concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that Bethphage has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
## **c. Reserves Policy**
The Trustees have considered the operational environment and the opportunities and threats to the organisation in terms of development, contractual variations, tendering processes, and competitor activity. The Trustees’ Reserves Policy balances levels of risk, the liabilities of the Charity, and our ability to invest in new service development. At the year-end we held free reserves of £1,822,620 (2022: £1,803,638) applied for the purposes of day to day working capital, which is sufficient working capital for our needs taking into consideration the payment terms of our contracts and foreseeable risks.
Given the uncertainty, the Trustees consider that their prudent approach to the holding of free reserves to be appropriate for the scale of the risks encountered.
## **d. Principal funding sources**
The vast majority of our funding during the year came from statutory sources with the following local authorities commissioning services: Birmingham City Council, Shropshire Council, Telford & Wrekin Council, Walsall Council. Income comes in the form of block grants, individual contracts, and Direct Payments. A small amount of income comes from private funding. We recognise the pressures that these key stakeholders must operate under and strive to make the working relationships as cost effective and efficient as possible.
With the increasing limitations of local authority funding, we are also now considering other voluntary grants, fund raising opportunities, and the role of volunteers.
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## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **e. Investment Policy**
Having regard to the requirement to maintain sufficient reserves and cash balances to cover potential variations in cash flow, surplus cash balances are placed on deposit with our bankers. As part of the Strategic Plan 2020 2024, if conditions permit, the Trustees intend to invest further in the ownership of residential property relevant to the charity’s activities. Bethphage’s investment in property combines the purpose of achieving a return on our reserves with investing in and providing support and resources to reduce the costs of meeting our charitable objectives. A key principle of our investment in residential property is that the tenants should be able to choose who provides their support services, irrespective of who ultimately owns the property. The need to ensure adequate working capital for operations and growth together with the desire to generate returns from positive cash balances, whilst minimising risk to capital, is kept under review.
## **Structure, governance and management**
## **a. Constitution**
Bethphage is a charitable company limited by guarantee, incorporated on 26 September 1994, and registered as a charity on 4 May 1995. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.
## **b. Recruitment and appointment of Trustees**
New Trustees are recruited through open processes (e.g. advertisements) or by invitation. Applicants are required to meet the people we support, staff and Trustees and demonstrate how their motivation, skills, and experience match the culture, needs and practice of the charity. This process was modified during the pandemic with meetings with staff and Trustees occurring online and visits to meet people we support postponed until safe to do so.
Under the requirements of the Memorandum and Articles of Association one third of the members of the Board (Trustees) retire and may offer themselves for re-election at each AGM.
In appointing Trustees Bethphage maintains a mix of skills on the Board, including financial, legal, human resources, strategic, marketing and health and social care management. As we continue to grow or diversify, the Board will review, at least bi-annually, its skills mix and seek additional Trustees when it identifies gaps. We are currently seeking to recruit an additional Trustee with a legal or accountancy background. Whilst appointment on merit is our primary concern, we are also keen to ensure we are representative of the communities in which we operate. Our gender balance is satisfactory, and whilst under representative of younger people and people from black, Asian and minority ethnic communities, it is largely representative of the workforce and users of services.
## **c. Induction and training of Trustees**
New Trustees are provided with a tour of our services, when safe to do so, in order to understand more fully the operations of the organisation. They are also invited and encouraged to attend a series of short introductory sessions with the Chair, other Trustees and senior managers to familiarise themselves with the Charity and the context within which we operate.
In addition, various Charity Commission publications including the Commission’s guide ‘the Essential Trustee’ are distributed to all new Trustees. Trustees also receive the bi-monthly magazine ‘Governance & Leadership’ and Trustees are expected to devote time to attend briefings by our auditors and other charity specialists.
The Board also receives regular presentations and training by Bethphage managers and other experts in the sector, for example: Positive Behaviour Services, Safeguarding, Data Security.
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**(A Company Limited by Guarantee)**
## **BETHPHAGE**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **d. Pay policy for senior staff**
The pay of the EMT is reviewed annually and normally increased in accordance with average earnings.
## **e. Decision making**
The Trustee Board meets quarterly and is responsible for the strategic direction, financial viability, compliance, risk management, and governance of Bethphage. Senior managers including the Chief Executive Officer (CEO) and EMT also attend for the majority of most meetings, but do not have voting rights.
A scheme of delegation is in place and day to day responsibility for the provision of services rests with the CEO along with the EMT comprising Heads of Operations, Finance and Human Resources (HR) and the Service Development and Quality Managers all of whom attend Board meetings.
The Trustees have adopted the Charity Commission Governance Code and used it to review their performance. Irena Sobolewska and Derek Lum have served as Trustees since 2001 and 2002 respectively. Whilst the Board are very aware of the need to ensure that it does renew itself over time, and takes steps to do so, it is also cognisant of the need to ensure that appropriately skilled people are both available and willing to serve as Trustees. As each long serving Trustee retires by rotation, the Board considers whether it is in the interests of Bethphage to invite them to offer themselves for re-election to the Board. The Board would not hesitate to recommend to the members that a Trustee should not be reappointed if it believed that reappointment was not in the interests of Bethphage. The current composition of the Board provides a good blend of continuity, freshness, enthusiasm and energy.
## **f. Risk management**
The Trustees have conducted a review of the major risks to which the Charity is exposed. The risk register is part of an established system and it is reviewed and updated by the EMT at least quarterly and any changes reported to the Board. The Board receive an updated risk register in advance of each meeting and review it in more detail at least annually. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure the health and safety of the people we support, staff and visitors. Where appropriate, systems or procedures have been established to manage the risks the Charity faces, including those presented by a pandemic or major disaster.
The major risks to the organisation at the end of the year are:
- Financial pressures on our Commissioners
- Additional cost increases to comply with National Minimum Wage regulations and inflation running at over 10% and the uncertainty regarding future funding by Commissioners
- The limitation of resources available to the local authorities who fund our work which have been exacerbated by the Covid-19 pandemic
- The challenge of maintaining a sufficiency of high-quality staff in the current economic climate
- Recruitment, and subsequent training costs
- The risk of losing key personnel
- Economic pressure.
## **g. Remuneration equality**
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 came into force on 6th April 2017. These regulations require employers with 250 or more employees to publish statutory calculations every year showing how large the pay gap is between their male and female employees. The requirement applies to Bethphage.
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## **BETHPHAGE**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
The figures must be calculated using a specific reference date each year, called the ‘snapshot date’. The snapshot date is 5 April for businesses and charities and the data must be published within a year of the snapshot date. Bethphage published its first gender pay gap report on 4th April 2018 and its latest report on the 28[th] of March 2023.
The regulations require employers to calculate specified information and publish the information on the employer’s website and on a designated government website at www.gov.uk/genderpaygap.
The Gender Pay Gap differs from equal pay:
Equal Pay – Bethphage pays the same rates to men and women who carry out the same jobs in accordance with the law.
The gender pay gap shows the differences in average pay for men and women. A number of factors influence this including seniority and the number of hours worked.
The Gender Pay Results for 5 April 2022:
Based upon the snapshot date, Bethphage does not have a gender pay gap. Our female and male colleagues were paid the same on the snapshot date.
## **Plans for future periods**
## **Partnerships, key alliances and regulatory bodies**
Bethphage is a registered provider with the CQC. The CQC requirements place a high-level duty of care upon providers to ensure that services are delivered against benchmarked standards. We work within the appropriate regulations and legislation and align our internal quality processes, policies and procedures with them.
We recognise the importance of strategic and operational partnerships in the communities in which we operate. We have played an active role in relevant local provider forums across Shropshire, Telford, and the West Midlands and in contributing to national initiatives.
The people who use our services are our most important stakeholder and this is reflected in a range of initiatives across the organisation including:
- Positive Behaviour Support
- Person Centred Approaches
- Surveys of the people who use our services, families, staff and managers
- Annual quality audits to review the services we provide and ensure they continue to deliver good outcomes for the people we support
- Management visits and reviews to check and monitor service delivery on a monthly basis
- Investment in staff development to support staff through areas of difficulty and to develop them into the best support workers they can be.
In the coming year Bethphage aims to bring more focus to the development of its Social Values plan. We envisage four main areas of focus:
- 1) Jobs/local skills and employment 2) Growth – support growth of responsible regional business
- 3) Social – Healthier, safer and more resilient communities 4) Environmental impact
Page 15
**(A Company Limited by Guarantee)**
## **BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **Membership**
We are fortunate to have two organisational members – Mosaic and the Council of Lutheran Churches. Mosaic, the founder member, has played a crucial role in our development. As a leading service provider in the field of disabilities in the USA, Mosaic has extensive experience and resources that we have been able to call upon.
Member representatives attend the AGM and sometimes contribute in between meetings as required. We value the engagement of our two members and thank them for another year of valued contribution.
The extent of the involvement and support of our two corporate members has enabled the Charity to attract and retain Trustees of a high calibre, professional expertise, and experience necessary to enable the organisation to develop and grow successfully and consistently.
## **Engagement with employees and employment of the disabled**
Employees have been consulted on issues of concern to them by means of regular consultative committee and staff meetings and have been kept informed on specific matters directly by management. We carry out exit interviews for all staff leaving the organisation and have adopted a procedure of upward feedback for senior management and the Trustees. We have implemented and regularly review a number of detailed policies in relation to all aspects of personnel matters including:
- Equal opportunities policy
- Volunteers' policy
- Health & safety policy
In accordance with the Charity's equal opportunities policy, the Charity has long-established fair employment practices in the recruitment, selection, retention and training of disabled staff.
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles of the Charities SORP (FRS 102);
- Make judgments and accounting estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention
Page 16
BETHPHAGE
IA Company Limitsd by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDEO 31 MARCH 2023
and detection of fraud and other irregularities.
DSsclosure of information to auditors
Each of the persons who are Trustees al the time when this Trustees. Report is approved has confirmed Ihal..
So far as that Trustee is aware, there is no relevant audit information of which the Charills auditors are
unaware, and..
That Trustee has taken all the steps that otjghl lo have been taken as a Trustee in order to be awaTe of
any relevant audit information and to establish that the ChaTIIys auditors ar8 aware of that infomialion.
Audltors
Dur(ng Ihe year D.R.E. & Co (Audit} LNnited. were appointed as auditors. D.R.E. & Co IALKl¢t) Limited, have
indicated their willingness lo eonliftue in office. The Trustees will propose a motion reappointing the audOrS al
meeting of the Membe.
Approved by order of the members of the board of Trustees and signed on their behalf by=
Derek Lum
Chair of Trustees
Dale..
10/(0/25
Page 17
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BETHPHAGE
## Opinion
We have audited the financial statements of Bethphage (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
## In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Other information
The 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 Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
- the charitable company has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
Page 18
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BETHPHAGE
## Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 19
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF BETHPHAGE
## Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the care and support sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charity SORP (FRS102), employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to
instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Page 20
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF
BETHPHAGE
A further description of our responsibilities for the audit of the financial statements is localtrd on the Financial
Reporting Courlcil's website al v.frC.org.UkIaudlt0rsreSponSlb1lI1les. This description forms part of our
Report of the Independent Auditors.
Use of our report
This report is made solely lo the charitable company's trustees, as a body, in accordance with Part 4 of the
Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might
slate to the charitable company's Iruslees those mallers we are required lo stale to them in an auditors, report
and for no other purpose. To the fullest extent permilled by law. we do not accept or assume responsibility to
anyone other than the charitable company and the charitable companW$ trustees as a body, for our audit work,
for this report, or for the opinions we have formed.
D.R.E. & Co. (Audit) Limited
Eligible lo act as an auditor in terms of Sectlon 1212 of the Companles Act 2006
7 Lower Brook Street
Osweslly
Shropshire
SY112HG
Date..
Page21
**BETHPHAGE**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
4
Support services
Investment income
3
**Total**
**EXPENDITURE ON**
Raising funds
5
**Charitable activities**
6
Support services
**Total**
**NET INCOME**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
**7,208**
**9,420,344**
**25,302 **
**9,452,854 **
**-**
**9,433,872**
**9,433,872**
**18,982**
**3,103,638**
**3,122,620**|Restricted
fund
£
**3,988**
**-**
**-**
**3,988**
**1,957**
**(1,243) **
**714**
**3,274**
**33,717**
**36,991 **|**31.3.23**
**Total**
**funds**
**£**
**11,196**
**9,420,344**
**25,302 **
**9,456,842**
**1,957**
**9,432,629**
**9,434,586**
**22,256**
**3,137,355**
**3,159,611**|31.3.22
Total
funds
£
291,012
8,806,966
5,246
9,103,224
5,396
8,861,614
8,867,010
236,214
2,901,141
3,137,355|
|---|---|---|---|---|
The notes form part of these financial statements
Page 22
**BETHPHAGE**
## **BALANCE SHEET 31 MARCH 2023**
|Notes
**FIXED ASSETS**
Tangible assets
12
**CURRENT ASSETS**
Debtors
13
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
14
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**PROVISIONS FOR LIABILITIES**
16
**NET ASSETS**
**FUNDS**
17
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
funds
£
**928,486**
**1,466,354**
**3,862,911**
**5,329,265**
**(2,815,829**)
**2,513,436**
**3,441,922**
**(319,302)**
**3,122,620**|Restricted
fund
£
**-**
**-**
**36,991 **
**36,991**
**-**
**36,991 **
**36,991**
**-**
**36,991 **|**31.3.23**
**Total**
**funds**
**£**
**928,486**
**1,466,354**
**3,899,902 **
**5,366,256**
**(2,815,829**)
**2,550,427**
**3,478,913**
**(319,302)**
**3,159,611**
**3,122,620**
**36,991 **
**3,159,611**|31.3.22
Total
funds
£
734,520
1,062,548
4,074,584
5,137,132
(2,541,128)
2,596,004
3,330,524
(193,169)
3,137,355
3,103,638
33,717
3,137,355|
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.
The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.
The notes form part of these financial statements
Page 23
continued...
BEfHPHAGE
BALANCE SHEE
31 MARCH 2023
in
These financSal statements have been prepared in accordance vAth the provislons applicable to charitable
companles subject to the small companles reglme.
The flnancial ststemenls were approved by the Board of Trustees and aulhorised for Issue on
and were siglled on its behalf by..
D Lum - Trustee
The notes fom part of these financial slalements
Page 24
**BETHPHAGE**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash (used in)/provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Provision movement
Net cash (used in)/provided by investing activities
**Change in cash and cash equivalents**
**in the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end**
**of the reporting period**|**31.3.23**
**£**
**(50,815) **
**(50,815) **
**(250,000)**
**126,133**
**(123,867)**
**(174,682)**
**4,074,584 **
**3,899,902 **|31.3.22
£
371,223
371,223
(35,693)
193,168
157,475
528,698
3,545,886
4,074,584|
|---|---|---|
The notes form part of these financial statements
Page 25
**BETHPHAGE**
## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023**
## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income for the reporting period (as per the Statement of**
**Financial Activities)**
**Adjustments for:**
Depreciation charges
Increase in debtors
Increase in creditors
**Net cash (used in)/provided by operations**|**31.3.23**
**£**
**22,256**
**56,034**
**(403,806)**
**274,701 **
**(50,815) **|31.3.22
£
236,214
55,528
(351,733)
431,214
371,223|
|---|---|---|
**2. ANALYSIS OF CHANGES IN NET FUNDS**
|**Net cash**
Cash at bank and in hand
**Total**|At 1.4.22
£
**4,074,584 **
**4,074,584 **
**4,074,584 **|Cash flow
£
**(174,682)**
**(174,682)**
**(174,682)**|**At 31.3.23**
**£**
**3,899,902 **|
|---|---|---|---|
||||**3,899,902 **|
||||**3,899,902 **|
The notes form part of these financial statements
Page 26
**BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.
The financial statements are for the individual entity only.
The financial statements are presented in Sterling (£), rounded to the nearest £1.
## **Company status**
The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether 'capital' grants or 'revenue' grants is recognised when the charity has entitlement to the funds, and performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that 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. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter:
Freehold property - 2% straight line Long leasehold - straight line over the life of the lease Fixtures and fittings - 3 to 10 years straight line Motor vehicles - 3 to 10 years straight line
Land is not depreciated.
Components of the freehold properties including bathrooms and kitchens have been depreciated from 1 April 2018 on a 10% straight line basis.
Assets relating to contracts are depreciated over the length of the contracts where the asset belongs to the contract and cannot be sold or disposed of by Bethphage to realise any residual value.
Page 27
continued...
**BETHPHAGE**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES - continued**
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **Pension costs**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
The charity operates a defined benefits pension scheme. The scheme is a multi-employer scheme where it is not possible, in the normal course of events, to identify on a consistent and reasonable basis, the share of underlying assets and liabilities belonging to individual participating employers. Therefore, as required by paragraph 28.11 of FRS 102, the charity accounts for this scheme as if it was a defined contribution scheme. The amount charged to the Statement of Financial Activities represents contributions payable to the scheme in respect of the accounting period.
## **Financial instruments**
The charity has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
## (i) Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
## (ii) Financial liabilities
Page 28
continued...
**BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES - continued**
## **Financial instruments**
Basic financial liabilities, including trade and other creditors, 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 receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
## **2. DONATIONS AND LEGACIES**
|Donations
Other grant income
**3.**
**INVESTMENT INCOME**
Investment income
**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Support services
Support services|**31.3.23**
**£**
**11,196**
**-**
**11,196**
**31.3.23**
**£**
**25,302 **
**31.3.23**
**£**
**9,420,344**|31.3.22
£
20,840
270,172
291,012
31.3.22
£
5,246
31.3.22
£
8,806,966|
|---|---|---|
Page 29
continued...
**BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023**
## **5. RAISING FUNDS**
|**Raising donations and legacies**
Expenditure on raising voluntary income
**6.**
**CHARITABLE ACTIVITIES COSTS**
Direct
Costs
£
Support services
**8,442,668**
**7.**
**SUPPORT COSTS**
Management
£
Support services
**944,660**
**8.**
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets|**31.3.23**
**£**
**1,957 **
Support
costs (see
note 7)
£
**989,961 **
Governance
costs
£
**45,301 **
**31.3.23**
**£**
**11,246**
**56,034 **|31.3.22
£
5,396
Totals
£
**9,432,629**
Totals
£
**989,961 **
31.3.22
£
9,008
55,527|31.3.22
£
5,396
Totals
£
**9,432,629**
Totals
£
**989,961 **
31.3.22
£
9,008
55,527|
|---|---|---|---|
|||||
|||||
## **9. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022
## **Trustees' expenses**
During the year, expenses totalling £588 (2022: £1,182) were reimbursed or paid directly to 3 Trustees.
## **10. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs|**31.3.23**
**£**
**6,936,326**
**576,003**
**187,405**
**7,699,734 **|31.3.22
£
6,341,742
500,729
171,679|
|---|---|---|
|||7,014,150|
Page 30
continued...
**BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023**
## **10. STAFF COSTS - continued**
The average monthly number of employees during the year was as follows:
|Administrative
Service delivery|**31.3.23**
**52**
**279**
**331 **|31.3.22
52
262
314|
|---|---|---|
No employee received emoluments in excess of £60,000.
Total key management personnel remuneration was £357,309 (2022: £345,435).
|**11.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
279,207
**Charitable activities**
Support services
8,804,991
Investment income
5,246
**Total**
9,089,444
**EXPENDITURE ON**
Raising funds
-
**Charitable activities**
Support services
8,835,033
**Total**
8,835,033
**NET INCOME/(EXPENDITURE)**
254,411
**RECONCILIATION OF FUNDS**
Total funds brought forward
2,849,227
**TOTAL FUNDS CARRIED FORWARD**
3,103,638|
Restricted
fund
£
11,805
1,975
-
13,780
5,396
26,581
31,977
(18,197)
51,914
33,717|Total
funds
£
291,012
8,806,966
5,246
9,103,224
5,396
8,861,614
8,867,010
236,214
2,901,141
3,137,355|
|---|---|---|
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continued...
**BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023**
## **12. TANGIBLE FIXED ASSETS**
|Fixtures
Freehold
Long
and
property
leasehold
fittings
£
£
£
**COST**
At 1 April 2022
**757,895**
**13,065**
**269,946**
Additions
**250,000**
**-**
**-**
At 31 March 2023
**1,007,895**
**13,065**
**269,946**
**DEPRECIATION**
At 1 April 2022
**107,480**
**13,065**
**201,081**
Charge for year
**18,846**
**-**
**28,638**
At 31 March 2023
**126,326**
**13,065**
**229,719**
**NET BOOK VALUE**
At 31 March 2023
**881,569**
**-**
**40,227**
At 31 March 2022
650,415
-
68,865
**13.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments and accrued income
**14.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses
**15.**
**LEASING AGREEMENTS**||
|---|---|
Minimum lease payments under non-cancellable operating leases fall due as follows:
||**31.3.23**|31.3.22|
|---|---|---|
||**£**|£|
|Within one year|**13,592**|15,516|
|Between one and five years|**1,304 **|14,895|
||**14,896**|30,411|
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continued...
**BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023**
## **16. PROVISIONS FOR LIABILITIES**
|**16.**
**PROVISIONS FOR LIABILITIES**||
|---|---|
|Provisions
**17.**
**MOVEMENT IN FUNDS**
At 1.4.22
£
**Unrestricted funds**
General Funds - all funds
**1,803,638**
Innovation and Development Fund
**1,200,000**
Infection Control and Rapid Testing
protection measures
**100,000**
**3,103,638**
**Restricted funds**
Restricted Funds - all funds
**33,717**
**TOTAL FUNDS**
**3,137,355**
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General Funds - all funds
**9,452,854**
**Restricted funds**
Restricted Funds - all funds
**3,988**
**TOTAL FUNDS**
**9,456,842**||
|||
|||
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continued...
**BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023**
## **17. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|**Unrestricted funds**
General Funds - all funds
Innovation and Development Fund
Infection Control and Rapid Testing
protection measures
**Restricted funds**
Restricted Funds - all funds
**TOTAL FUNDS**|At 1.4.21
£
2,249,227
500,000
100,000
2,849,227
51,914
2,901,141|Net
movement
in funds
£
254,411
-
-
254,411
(18,197)
236,214|Transfers
between
funds
£
(700,000)
700,000
-
-
-
-|At
31.3.22
£
1,803,638
1,200,000
100,000
3,103,638
33,717
3,137,355|
|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Restricted Funds - all funds
**TOTAL FUNDS**|Incoming
resources
£
9,089,444
13,780
9,103,224|Resources
expended
£
(8,835,033)
(31,977)
(8,867,010)|Movement
in funds
£
254,411
(18,197)
236,214|
|---|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General Funds - all funds
Innovation and Development Fund
Infection Control and Rapid Testing
protection measures
**Restricted funds**
Restricted Funds - all funds
**TOTAL FUNDS**|At 1.4.21
£
2,249,227
500,000
100,000
2,849,227
51,914
2,901,141|Net
movement
in funds
£
273,393
-
-
273,393
(14,923)
258,470|Transfers
between
funds
£
(700,000)
700,000
-
-
-
-|At
31.3.23
£
1,822,620
1,200,000
100,000
3,122,620
36,991
3,159,611|
|---|---|---|---|---|
Page 34
continued...
**BETHPHAGE**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023**
## **17. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Restricted Funds - all funds
**TOTAL FUNDS**|Incoming
Resources
resources
expended
£
£
18,542,298
(18,268,905)
17,768
(32,691)
18,560,066
(18,301,596)|Movement
in funds
£
273,393
(14,923)
258,470|
|---|---|---|
## **Innovation and Development fund**
The Innovation and Development fund is held to fund the purchase of a third home for the people of the Charity; business development and sustainability projects, and increased costs of working due to Covid19 impact. There has been no movement on the designated fund during the year as the designated fund is intended to be carried forward whilst a search for a suitable property continues.
## **Infection Control and Rapid Testing protection measures fund**
The Infection Control and Rapid Testing protection measures fund is held to protect against any future impact of Covid-19 and any costs relating to purchasing tests and safeguarding against a future outbreak.
## **Restricted fund**
The Restricted funds include funding received (net of expenditure) for specific projects and ongoing projects.
## **18. RELATED PARTY DISCLOSURES**
During the year, the trustees were reimbursed expenses of £588 (2022: £1,182) respectively.
Bethphage received donations totalling £350 (2022: £nil) from Basil Houghton Memorial Trust. At the year end, there was a balance outstanding of £nil (2022: £nil). Basil Houghton Memorial Trust are a related party as one of the trustees of Bethphage is a trustee of Basil Houghton Memorial Trust.
Bethphage acquired services totalling £15,576 (2022: £7,469) from Shropshire Partners in Care. At the year end, there was a balance outstanding of £2,816 (2022: £1,534). Shropshire Partners are a related party as one of the senior management team of Bethphage is a director of Shropshire Partners in Care.
Page 35