**Charity registration number 1047350**
**Company registration number 03032531 (England and Wales)**
# **MIDSTREAM (WEST LANCS) LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **MIDSTREAM (WEST LANCS) LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Management Committee**
**Secretary**
**Charity number Company number Principal address**
## **Registered office**
## **Auditor**
## **Bankers**
Robert A. Johnstone Peter A. Atherton Anita C. Cooke 1047350 03032531 2 Penrose Place Pimbo Skelmersdale Lancashire WN8 9PR 2 Penrose Place Pimbo Skelmersdale Lancashire WN89PR Jackson Stephen LLP James House Stonecross Business Park Yew Tree Way Warrington Cheshire WA3 3JD The Co-operative Bank pie PO Box 101 1 Balloon Street Manchester M60 4EP
## **MIDSTREAM (WEST LANCS) LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Committee Members' report|1 - 4|
|Statement of Committee Members' responsibilities|5|
|Independent auditor's report|6-8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 21|
## **MIDSTREAM (WEST LANCS) LIMITED**
## **COMMITTEE MEMBERS' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The Management Committee present their annual report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The charity reviews its aims, objectives and activities each year to help ensure it focuses on its stated purposes. The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims, objectives and in planning its future activities.
The objects of the charity are to provide employment opportunities and to promote the advancement of education, in particular amongst young people and adults with learning difficulties, physical disabilities and those suffering from the negative effects of long term unemployment. By the provision of such training facilities the company will enable such persons to acquire and develop vocational skills which will enhance their employment prospects.
The impact of the charity's work reaches beyond those we help directly and includes improving the quality of lives by means of respite care, for families and carers. Our work also has a favourable aesthetic impact upon the natural environment as a result of our corporate/community landscape gardening/maintenance activities and the growing/supplying of plants for both retail and wholesale.
The charity's policy is to consult and discuss with employees, through unions, staff councils and **at** meetings, matters likely to affect employees' interests.
Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the charity's performance.
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## **MIDSTREAM (WEST LANCS) LIMITED**
## **COMMITTEE MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Achievements and performance**
Throughout the year Midstream has been dominated by the world wide Coronavirus pandemic. Our priority has been to continue to deliver face to face day care and support whilst at the same time keeping the vulnerable people that the Charity serves safe. Whilst infection rates rose steeply throughout the UK the number of new infections amongst our staff & clients has remained low as we _strove_ to keep our site as _Covid_ free as possible. This was achieved by continuing to follow infection prevention & control measures published by the NHS/Gov.uk for Health & Social Care organisations; and the recommendations Social Care Institute for Excellence (SCIE). Despite the lifting of national restrictions for the UK public in July 2021 the Charity has continued to recognise social distancing, compulsory mask wearing, asymptomatic & symptomatic testing of staff and clients. The Garden Centre and Cate has remained closed to the public throughout the year. Despite the Coronavirus pandemic Midstream has continued to offer health & social care, education, vocational training and work activity, which is appropriate to each service user's individual needs. It has also made further progress in securing a position of financial strength to ensure delivery of Midstream's services into the foreseeable future.
The Charity has continued to progress service users towards The Certificate in Skills for Working Life awarded by City & Guilds. This award is particularly suited for people with learning difficulties and/or physical/mental disabilities. Instructional staff have been creative in their delivery allowing service users to work towards their goals and engaging them in real life working environments in a _variety_ of occupational areas. These include horticulture, landscape gardening/construction, environmental conservation, retail, business administration, crafts and catering. Work experience, gathering evidence, ongoing assessment and portfolio building forms part of the award. It encourages service users to make the right choice of occupation and to build the skills needed for a successful working life. A clear progression route onto NVQ is visible as Midstream not only continues to be awarded Approved Centre status to deliver The Certificate in Skills for Working Life but also is approved by the Construction Industry Training Board (CITB) and City & Guilds for the assessment and accreditation of Levels 1 & 2 in Horticulture and Business Administration. In addition, Midstream has maintained Investors In People Status and Quality Guild approval.
As we look to the future the essential is not to be complacent. Tackling a major challenge such as social exclusion demands concerted efforts. Public, private, community and voluntary sector organisations all have a part to play in improving the quality of life of people most disadvantaged in the world of work through learning disabilities or other special needs. Midstream believes that the more we can work together the more we will achieve in the future and the more likely it is that barriers to employment will be broken down.
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## **MIDSTREAM (WEST LANCS) LIMITED**
## **COMMITTEE MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Financial review**
The net incoming resources for the year amounted to £207,106 and reserves now stand at £4,530,157.
In the prior year, due to the coronavirus pandemic, there was a significant fall in the activities for generating funds and incoming resources from charitable activities. However, there was a significant increase in other incoming resources and from voluntary income.
The charity has established a good reputation over the years with social workers, carers, teachers, careers officers, etc. Partnerships working with public, private and voluntary sector organisations are essential to delivering a service which meets the complex needs of our client group. Combining training and employment with the provision of day care has generated significant income from referring organisations such as Social Services, privately run residential care homes and special schools. Midstream has benefited from income in respect of contracts secured with referring organisations totalling £1,793,033 (2021: £1,615,115), included within incoming resources from charitable activities. With growing emphasis on Direct Payments, Midstream is now attracting service users from a wider geographical area including Greater Manchester to the East, Merseyside to the West and Cheshire to the South. All are within easy daily travel distance of Midstream.
Midstream's trading activities during the year have generated income from the sales of goods and services to the general public totalling £30,514 (2021: £4,175), included within activities for generating funds. This source of income contributes towards training material costs and promotional costs that the Charity has incurred throughout the financial year.
This year Midstream has invested £57,995 (2021: £20,511) in buildings, plant and equipment and motor vehicles. In furtherance of the charity's aims and objectives the Trustees took a decision in the prior year to construct a new detached building for staff and client dining facilities including access road and parking. £18,646 was invested in the planning and design in preparation for the construction.
With contracts secured for the majority of Midstream's activities into the forthcoming year and beyond, financially the outlook for the future is satisfactory.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to a minimum of at least three months expenditure. The Management Committee considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised.
The trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to such risks.
## **Structure, governance and management**
The charity is a company limited by guarantee which was incorporated on 13 March 1995 and registered as a charity on 20 June 1995.
The company is governed by the Memorandum and Articles of Association which establish the objects and powers of the Charity.
The Management Committee, who are also trustees and the directors for the purpose of company law, who served during the year were:
Robert A. Johnstone
Peter A. Atherton
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## **MIDSTREAM (WEST LANCS) LIMITED**
## **COMMITTEE MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
None of the Management Committee has any beneficial interest in the company. All of the Management Committee are members of the company and guarantee to contribute **£1** in the event of a winding up.
Under the Articles, the members of the Management Committee are elected at the Annual General Meeting to serve a period of three years, subject to ratification at each Annual General Meeting.
The Management Committee meets regularly throughout the year to review the strategy, operations and performance of the Charity. The Management Committee is fully responsible for the decision making process operated by the Charity.
The day to day responsibility of managing the Charity rests with the Chief Executive, Anita C. Cooke, who is responsible for ensuring the Charity delivers the services specified and that key performance indicators are met.
The trustees are familiar with the practical work of the charity and their responsibilities and update training is provided when considered necessary. Additionally, new trustees will be provided with appropriate training and induction.
## **Disabled persons**
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
## **Employee involvement**
The charity's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
## **Auditor**
A resolution proposing that Jackson Stephen LLP be reappointed as auditors of the company will be put to the members.
## **Disclosure of information to auditor**
Each member of the Management Committee has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The Committee Members' report was approved by the Board of Management Committee.
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## **Peter A. Atherton**
Director Dated: 3 November 2022
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## **MIDSTREAM (WEST LANCS) LIMITED**
## **STATEMENT OF COMMITTEE MEMBERS' RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The Management Committee is responsible for preparing the accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Company law requires the Management Committee to prepare accounts for each financial year which 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 net income and expenditure for the year.
In preparing these accounts, the Management Committee is required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Management Committee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and which enable it to ensure that the accounts comply with the Companies Act 2006. It is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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## **MIDSTREAM (WEST LANCS) LIMITED**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE MEMBERS OF MIDSTREAM (WEST LANCS) LIMITED**
## **Opinion**
We have audited the financial statements of Midstream (West Lanes) Limited (the 'charity') for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 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 _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Committee Members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Management Committee with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Management Committee are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Committee Members' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
- the directors' report included within the Committee Members' report has been prepared in accordance with applicable legal requirements.
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## **MIDSTREAM (WEST LANCS) LIMITED**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MIDSTREAM (WEST LANCS) LIMITED**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Committee Members' 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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the Management Committee were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Committee Members' report and from the requirement to prepare a strategic report.
## **Responsibilities of Management Committee**
As explained more fully in the statement of Committee Members' responsibilities, the Management Committee, who are also the directors of the charity for the purpose 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 Management Committee 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 Management Committee are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management Committee either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the charitable company and sector, we identified that the principal risks of non compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, the Charities Act 2011, employment, pension and health and safety legislation and we considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.
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## **MIDSTREAM (WEST LANCS) LIMITED**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MIDSTREAM (WEST LANCS) LIMITED**
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance;
- obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of provisions; and
- in addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
**Peter Atkinson F.C.A. (Senior Statutory Auditor) for and on behalf of Jackson Stephen LLP**
7 December 2022
**Chartered Accountants Statutory Auditor**
James House Stonecross Business Park Yew Tree Way Warrington Cheshire WA3 3JD
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MIDSTREAM (WEST LANCS) LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
Unr•$trlct¢d Unrèstrl¢tèd R•$trleted
funds
funds
funds
2022
2021
2021
Tol•l
2021
Not••
In
nd •ndowmen
Voluntary incorne
Incoming resour from charilablo acimties
Aclivdies for generafing lunds
Inve5tmonls
Other in¢om#ig resources
7.019
1.615.4
4.175
1,797
447,979
7.019
1,615,49)
4,175
1,797
480,980
1.793.033
30,514
309
60.190
13,(X)1
Totol Income
1.885,010 2,076,460
13.¢XJ1
2.089,461
Raising funds
4,437
4.437
Charitable aclMtEs
1,651,060
1,544,762
13,001
1,557,763
Total gxp8ndtture
1,677,904
1,549,199
13,001
1,562,200
Net income for the yearl
movement in lundi
207.1C6
527,261
527.261
Fund baLances at 1 April 2021
4.323.051
3.795.7
3,795,7S
Fund balances at 31 March 2022
4,530,157
4,323,051
4,323,051
The slalemenl of linancAal activibes indleS all galns and k)sses rgcognised in the yeaf.
All income aThJ expenditure derive frn oJniinuing athwties.
The statement ol financial artivitios also complies with the requiremenls for an income and expendliure account
under the Companie5 Act 2006.
MIDSTREAM (WEST LANCS) LIMITED
BALANCE SHEET
ASAT31 MARCH 2022
2022
2021
Notes
Fixed assets
Tangible assets
13
1,927,578
1.964,031
Current 4$$¢ts
Stocks
D8btors
Cash at bank Bnd in hand
14
15
10,841
156,425
2,485,219
10,401
202,433
2,225,919
2,652.485
2,438.753
Creditors: amounts falling due within
one year
16
{49,9061
179,733
Nel current assets
2,602,579
2,359,020
Total assets less current liabilities
4,530,157
4,323.051
Ineonw funds
Unrestricted funds
General unreslricleo funds
Rèvalu8b"on reserve
4,030.158
499,999
3,823.052
499,999
4,530,157
4,323,051
4,530,157
4,323,051
The accounts wer8 approv8d by th8 Manag&m6nt Committee on 3 November 2022
PelerA. Alherton
Trustee
Company Re9i$tration No. 03032531
10.
MIDSTREAM (WEST LANCS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
2022
2021
Nats$
Cash flows from operatlng a¢tiviti¢$
Cash generated from operations
18
316,789
627.478
Investlng actlvlties
Purchase of tsnglb fixed assets
Proceeds on (Jispos81 of tangible fixed
assols
Inler&st received
157,9951
120,5111
197
309
1.797
Net cash US In Investing activities
157,4891
118,7141
Net cash used in finanelng Èetivities
Net increase Sn cash and cash equivalents
259,300
608,764
Cash and ¢ash 8quivalents at beginning of year
2,225,919
1.617,155
Cash and cash 8quival¢nts at end of year
2,485,219
2.225,919
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
AOnting policlès
Ch•rlty Informat5on
Midstream IW&st Lani¥l Limited is a private company limit8d by guaranlee incorporated in England and
Wales. The registet8d office is 2 Penrose Place, Pimtm). Skelmersdale, Lancashir8. WN8 9PR.
1.1 A¢counn9 conventlon
The 8¢counis have been prepared in accordance with the charity's Memorandum and Artides of AssWdatn,
the Companies Act 2006 and 'Aceounting and Reporting by Charities.. St8temenl of Recommgnded Practice
applicable lo charities preparing their accounts in accordance with the Financial Reporting Stsndar(I
applicable in the UK 8nd Republic ol Ireland IFRS 1021. effective 1 January 2019. The charity is a Publi¢
Benefit Entity as defined by FRS 102.
The financial slatem&nls are prepared in sterling, which is the functional currency of the charity. Mongtsry
atnounts in these financial slaloments are rounded to the near95t £.
The accounts have baan prepared under the historfcal cost convention, modthed to indude freehold land &
buildings al revalued amounts.
1.2 Golng concem
At the lime of 8pproving Ihe financial stalemenls, the Management Committe8 have a reasonable expèctation
that the charity has 8dequata resources to continue in operational existence fow the foreseeable future. Thus
the Management Committee continue lo &lopt the going concern basis of accounling in preparing tha
financial stalemenls.
1.3 Charltable funds
Uniestricted fvnds are available for use al the discrelitsn of the Uanagemenl Committee in furtherance of th8ir
charitable objeciwes.
Unre$lri¢t8d funds are donat5 and othar incoming resources r8¢eivable or generated for the objects of the
charity wilhoul further specified purwso and arg available as general funds,
1.4 Incomlng resour¢o$
Income is recognised when the charity is legally entitd lo it after any performance conditions have b&&n met,
the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are rewgnised on receipt. Other donations ara rtrcognised once the charity has been notffi8d
ol the donation, unles5 perforfflancè conditions require d8férral of the arnount. Income tax recoverable in
relation lo donations received under Gtft Aid or deeds of covenant is regnIsed at the lime of the donation.
Incoming resources frorn commercial aclivities including the supply of plants, garden furniture, fencing,
gardening services and from tho lea shop are included when rec8ivable, net of VAT.
Tumover 15 tllga5ured at the fair value of thè consideration received or receivable and r8present8 amounts
receivable for gd$ and services provided in the rMal ¢oursa ol business, net of discounls, VAT and other
sales relaled laxes.
1.5 Resour¢e$ expended
Expenditure is reco9nised oncts there Is a legal or constructive obligation lo transfer economi¢ bènefil to
third party, it is probable that a transfer ol economic bènefits will be required in settlement, and the amount of
th8 obligation can be measured reliably.
12-
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
A¢¢ounting pollel•s
(Continuèd)
Expenditure is classified by activity. The costs ol each actiwty are made up ol the total of direci costs and
shared costs, including support Costs involved in undgrtaking each activity. Direct costs attribuiable to a sirhgle
c¢ivity afe allocated dire¢lly tu that activily. Shared costs which contribute to more Ihan one activity and
support costs which are not altributable lo a single activity are apportioned between thos8 activities on a basis
consistent wrth the use ol resources. Central staff costs are allocaled on the basis of time swnl. and
dèpigcialion charges a allocated on the portion of the asset's use.
1.6 Tanglble fixed assets
Tangible fixed assets are initsally measur8d at cost and subsequently measured at cost or valuation, net of
depreciation and any impairrnent losses.
Deprgciation is re¢ogni8ed so as to WTite oll the cost or valuation of assets less Ih&ir r&sldual values over their
useful lives on the following bas$8'.
Freehold land and buildings
Plant and machinery
Computers and office equipmènt
Motor vehicles
2- 12.SVo par annum on a straight line basis
15% per annutn on a reducing balance basis
33% per annum on a reducing balan basis
25% per annum on a r9ducing balance basis
The gain or 1055 arising on th8 dis)SaI ol an ass8t is det•rminad a$ the dIffenCe bafvern the saK8
pn)ceeds and the carrying value ol th6 as5el, and is raeognised in the ststement of financial activrties.
1.7 Impairment of flx•d as5etS
At each reporting end date, the charity rewews the carrying amounts ol its tangible assets lo determine
whèther there is any indication Ihat Ihose assets havo suffered an impairment loss. 11 any such indication
oxisis, the recovèrable amount of the asset is estimated in order to determine the extent of the impairment
loss lil any).
1.8 Stocks
Stocks are staled al the lower ol cost and estimated selling price less costs to complete and sell.
Net rèalisable valu6 IS thg eslimaled selling pri less all estimated costs of completion and costs to bè
incurred in marketing, selling and distribution.
1.9 Cash and cash equivalgnts
Cash and cash equivalents include cash in hand, deposits herd al call with b8nks, other short-tgnn Itquid
investments with Original malurilies of thre8 rnonlhs or less. and bank ovèr(Jrafts. Bank overdratts are shown
within tK)rtowings in current liabilities.
1.10 Flnancial instrumènts
The ¢harity has electsd to apply tha provisions of Section 11 'Basic Financial Instruments, and Section 12
'Olher Financtal Instrumenls Issues. of FRS 102 to all of its financial instruments.
Financial instwmenls are recognised in the charitys balancè $heel when the Charity becomes paty lo the
contractual provisions of the inslrurnent.
Fin3n¢ial assets and liabilities are offset, wlh the net amounts presentad in the financial stslements, when
there is a legally enforceable right to Sgt off the recognised amounts and there is an intention lo settle on
net basis or lo roali5e the asset and settle the liability simultaneously.
13-
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Accounting pollcles
(Continued)
Baslc finan¢l818ssèts
Basic financial assets, which includ8 d8btors and cash and bank balances, 8rB initially m•asured al
Ir8nsa¢tion price including Iransacb'on costs and are subsequently c8rri8d at amortised cosl using the
effective intarest method unless the arrangement ¢onstitLJtes a financing transaction. whèrè the transaction is
measured al th8 prèsant value ol the future receipts discounted at a market rale of interest. Financial assets
classified as receivable within onè year are not anrtIsed.
Dorecognltion of financlal assets
Finanaal assets are derecognised only when the contractual rights lo the cash flows from the asset expir8 or
are sellled, or whèn the charity transfers the financial asset and subslantially all the risks and rewards of
ownership to another entity. or il some significant risks and rewards ol ownership are retained but control of
Ihg 8sS8t has Iransferred lo another party that is able lo sell the asset in ts entirety to an unrelated third party.
Baslc flnanclalliabilili*$
Bagic financial liabilities. includltvJ credilors and bank loans are inibally racognised al transaction price unless
the arrangement conslilutes a fin8ncing transaction, where the debt instrument is measured at the presènt
value of the luture payments discounte(l al a arket rate ol interest. Financial liabilities ¢lassified as payable
within one year are not 8mortis8d.
Debt inslnjments are subsequently carried al amortisad cost. using the effeclwg int8r6st rate method.
Trade edItorS are obligatKbns to Pay for 9oods or services that have b8gn acquired In tha ordinary course of
operations from suppliers. Amounts payable are cl8ssifi8d as current liabilities il payrnant is due within one
year or less. If not, thèy are presented as non-current liabilities. Trade creditors are r6ctsJnised initially at
IransBCtion price and subsoquently measured at arnortised cost using the effective interest method.
Derecogniti¢)n of financial liabllltl
Financial li8bilities are decogniSed when the charity's contractual obligations expire or are discharged or
cancelled.
1.11 Employee bgnvfits
The cost of any unused holiday enlrtlemenl is ro¢0gnisèd in the period in which thè employee's services artr
received.
TgmilnatK)n benefits are recognised immadiately as an expense when tha charity is demonstrably committed
lo lerrninata the employment of an employee or to provide termination beneffts.
1.12 Retlrement benefits
The charity operates a defined wntribution p&nsion scheme. Contributions ara charged in the accA)unts as
they becotne payable in accordance with the rulas of the scheme.
Criti¢al a¢¢ountlng estlmates and judggments
In the application ol tho tharilys accounting policies. Ihg Managtrment Cornmrtlee are requir8d lo make
judgeffl8nts, eslirnales and assumptions aboul ihe carying amount of assets and liabilities that are not rè8dily
apparent from other sources. The estimates and 8ssc>ciated assumptions ai& based on historical experience
and other factors Ihal aro ¢onsidered io be relevant. Actual r8sults may difter Irorn thes8 8Stimates.
The e5tiThates and underfying assumpb.ons are reviewed on an ongoing basis. Revisions lo accounting
estimates are recognised in the period ir) which thts estimate is revised where the revisH)n affects only that
period, or in the period of the rèvision and future periods where the remsion affects both current ond future
periods. The critical estimates by th8 Management Cornmillee in preparing these financial slalements
relate lo the assessment of the useful economic lives ol the charitys tangible fixed assets when determining
the appropriat8 depreciati( poli¢ies as disclosed in Note 1.6.
14-
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Voluntary Sncom•
Unrestriet•d Unrestrl¢ted
funds
funds
2022
2021
Donations and gifts
964
7,019
4 IncomSng rg$ources from charitable a¢tivities
Unrestricted Unro9lrf¢ted Llnro8trkted
Tralnlng and
Contra
Total
day Earfr
2022
In¢omo
2022
Unrnstricted
Total
2021
2022
Sales within charitable activit$
1,793.033
1,793,033
1,615,490
Acttvitlès f¢r generating fvnds
Unw$tricted Unrestricted
funds
furyjs
2022
2021
Non-charitable trading adivities
30,514
4,175
Inve8tmants
Unr•stricted Unr&stri¢ted
funds
funds
2022
2021
Intafyst receivable
309
1,797
15
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
other inwming resourcès
Unrostricted Unreslricted Reslricled
funds
funds
funds
Totsl
2022
2021
2021
2021
Nel gain on disFM)s81 of tangiblo fixed assets
other income
185
60,005
447,979
13.001
460.980
60.190
447,979
13,001
460,980
Included within other inwme above is £57,195 12021.. £448,733) reIVed in the year relating lo support
grants from the governmenl and local authority in relation to thè coronavirus pandemic.
Ralslng funds
Unrostrlcted
fund$
Unr•$trlctod
funds
2022
2021
Advertlsing
Training materials
Repairs and renewals
Lighl and heal
Motor expenses
Telephone
Printing and swonery
Insurancè
L9gal and professional
Audit and accountancy
Bank charges
Vehicle and equipment leaselhirg
Sundry
Staff costs
Depreciation and impaimienl
Slaff training
Profil on sale of fixed asset
10
1,311
587
319
832
61
172
101
82
105
33
164
82
47
85
12
18
21
20
826
20,770
1,511
127
131
97
3,617
256
Tea shop and plant 5al8s
26,844
4,437
16-
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Charltabl• a¢tivlt5es
Training and
day care
Contract
income
Total
2022
Total
2021
Stsff costs
Depreciation and impaimienl
Legal and professional
Training materials
Repair$ and renewals
Staff training
Light and hèat
Motor expens8s
Printing and stationery
Telephone
Advertising
Insurance
Bank charges
Audit and accountancy
Vehide and equipment hire
Sundry
1,277,325
92,925
5,064
80,620
36,114
7,798
19,645
51,147
10,571
3,758
612
6,214
2,033
6,463
1,277.325
92.925
5,064
80,620
36,114
7,798
19,645
51,147
10,571
3,758
612
6,214
2,033
6,463
1,267,269
89.652
2,650
57,313
28,714
2,488
18,682
29,514
6,422
4,289
457
7.220
1,701
6,923
1,662
34,827
50.771
50,771
1,651,060
1.651,060
1,557,763
Analysi8 by fund
Unreslri¢led funds
1.651,060
1,651.060
For the yèar Onded 31 Mareh 2021
Unrestricted funds
Roslricted funds
1,544,324
13,001
438
1,544,762
13.001
1,557,325
438
1.557,763
10 Management Committee
No remuntsralion was paid lo the Irustees in the year12021.. £Nill. Expenses totalling £Nil12021." £Nill wgrg
paid to Ihe Iruslees in the year.
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
11 Employo08
Number of Bmployees
Thg avgrage monthly nurnber of ernployges during tho yoar was..
2022
Number
2021
Number
Employees
47
48
Employment costs
2022
2021
Vvages and salari88
Social security ¢osts
other pension costs
1,101,454
99,675
96,966
1,085.316
90,816
94,754
1.298,095
1,270,886
The number ol employees whos¢ annual remuneration was £60,000 or more
were..
2022
Numbgr
2021
Numb•r
60.001 to 70.000
80,001 to 90.000
90,001 to 100,000
12 Taxatlon
The chariiable company is exernpl from corporation lax on ils ¢h8rit8ble 8Ctiviti¢s.
18
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED
FOR THE YEAR ENDED 31 MARCH 2022
13 Tanglble fixed assèts
Fr•8hold land
aNJ bulldirtgs
Plant and
machinery
¢omput8rs Motor vohicles
and offico
qulpment
Totsl
C¢$t or valuation
Al 1 April 2021
Additions
Disposals
2.637,337
18,646
224,W5
114,016
12,999
11.4801
150,775
26,350
3.127,033
57,995
11,4801
At 31 March 2022
2,655,983
224,905
125,535
177,125
3.183,548
Depreclatlon and Impalrment
Al 1 April 2021
Depreciation charged in the year
Elbminated in respect of disposals
781,792
61,454
169,208
8,355
107.834
6.388
11.4681
104,168
18,239
1,163,002
94,436
{1.4681
Al 31 March 2022
843,246
177,563
112,754
122.407
1,255,970
Carrying amount
At 31 March 2022
1,812,737
47,342
12,781
54,716
1,927.578
Al 31 March 2021
1,855.545
55,697
6,182
46,607
1,964.031
The freehold land was revalued in the amount of £500,000 by 8 firm of independent Charted Surveyor8.
Parkinson Commerci81 Property Consuliants, oll 12 January 1996 on the basis of an open market valuation
lor existing use. The valuation has not been updatad and the trustees have adopted the transinal rules ol
FRS102 and trealed this as th& deemed ¢osl of the land.
The freehold land valued at £500.000 is not depreciated.
At 31 March 2022, had the revalu6d assets been carried at historic cost loss awumulated deweciation and
accumulated impairment 10s8es. their carrying amount would have btren approximately £1,312.73812021
£1,355,546).
14 Stocks
2022
2021
Finished goods and goods for resale
10.841
10,401
19
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
15 DebloTS
2022
2021
Amounts falllng due within one year.
Trade debtors
Othèr debtors
Prepayments and accrued Inm8
134,741
3,699
17,985
178,130
2,839
21,464
156,425
202.433
16 Creditors.. amounts falllng due within one year
2022
2021
Other laxalion and so¢ial security
Trade creditors
Accruals and deferred Inu)m8
21,672
23,971
4,263
27,145
15,131
37,457
49,906
79,733
17 Retated party tran$actlon$
R¢murtèratlon of key management personnèl
The remuneration ol key managemgnt personnel is as follows.
2022
2021
Aggregate compensation
92,168
93,377
18 Cash generated from operalion5
2022
2021
Surplus for the year
207,106
527,261
Adjustments for..
Investment income rewgnlsed In statement of financial activitias
Gain on disposal ol tangible fixed assets
Depreciation and ImpBirment of tsngible fixed assets
13091
11851
94,436
11,797)
89,908
Moveménts in wort(ing capital.
Ilncrèasèydecrease in stocks
De¢igas81lincreasel in debtors
(Decreaseyincrease in cr8dilors
14401
46,008
129,8271
1,460
113,5751
24,221
Cash generated from operation$
316,789
627,478
20-
MIDSTREAM (WEST LANCS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
19 Analysls of ehanges In nat debt
The charity had no debt during the y&ar.
21