Charity registratlon numbar 1047360 Company rngistration numb•r 03032631 (England and Wales) MIDSTREAM (WEST LANCS) LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
MIDSTREAM (WEST LANCS) LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Manag8ment Commlttee Robert A. Johnstone PeterA. Atherton Deborah A. B. Morton (Appointed 3 December 2024) Secretary Mark G. Saxon Charity number 1047350 Company number 03032531 Prlncipal address 2 Penrose Place Pimbo Skelmersdale Lancashire WN8 9PR Reg18tered offlce 2 Penrose Place Pimbo Skelmersdale Lancashire WN8 9PR Auditor JS.'Audit Limited James House Stonecross Business Park Yew Tree Way Warringlon Cheshire WA3 3JD Banke The Co-operative Bank plc PO 8ox 101 1 Balloon Street Manchester M60 4EP
MIDSTREAM (WEST LANCS) LIMITED CONTENTS Pag8 Committ&8 Members, report Statement of Committee Members, responsibilities Independent auditor's report Statement of financlal activities 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 2024 The Manag8ment Committee present their annupl report and financial statements for the year ended 31 March 2024. The financial statements have been prepared in accordance with the accounting policies set out in the not88 to the financial ststements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities.. Stat8ment 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)" Since the charity qualifies as small under section 383 of the Companies Act 2006, the Company Strategic Report required of medium and large companies under the Campanies Act 2006 (Strategic Report and Directors, Report) Regulation6 2013 has been omitted. Objectives and activltles 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 guiclance on public benefit when reviewing the charity's aims, objectives and in planning its future activities. The objects of the charlty are to provide employment opportunities and to promote the advancement of education, in particular amongst young peopl8 and adults with leaming difficulties, physical disabilities and those suffering from the negative effects of long term unemployment. By the provisicn of such training facilities the company will enable such persons to acquire and develop vocational skills which will enhance thelr employment prospects. The Impact of the charity's work reaches beyond those we help directly and includes improving the quallty of lives by means of respite care, for families and carers, Our work also ha5 a favourable aesthetic impact upon the n8tural environment as a result of our corporatelcammunity landscape gardeninglmaintenance activities 8nd the growinglsupplying of plants for both retail and wholesale. The charity's pollcy is to consult and discuss wth employees, through unions, stsff councils and at meetings, matters likely to affect employees, interests. Information on matters of concern to employees is given through information bulletins and reports whiGh seek to achieve a common awareness on the part of all employees of the financial and econcmic factors gffecting the charity's performance.
MIDSTREAM (WEST LANCS) LIMITED COMMITTEE MEMBERS, REPORT (CONTINUED)(INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and performance Throughout the year Midstream has continued to offer health & social care, vocational training, education and WO activilies thal is appropriate to each service user's individual needs, The charity has continued to progress service users tcwards achieving the Entry Level "Certificate in Skills for Working Life" awarded by City & Guilds., personal leaming goals have also been planned for those service users wth Education, Health & Care Plans (EHCP). The vocational learning & assessment of the qualification 18 particularly 5uiled for people with additional needs such as learning difficulties, physical disability, sensory impairment or neurodiversity. Service users are given the opportunity to engage in real life working environments in a variety of occupational areas. These include horticulture, landscape gardening and construction, environmental conservation, retail, business administration, crafts, catering, hospitality and hair & beauty- Work experience, gathering work-based evidence, ongoing a88essment and portfolio building forms the key outcomes for the City & Guilds qualification, Participation encourages service users to make infomied choices regardiny vocational occupations and to build the skills needed for a successful working life. A dear progression route to higher level NVQ vocational training is available at Midstream In hair & beauty, business administration and caring for children. The organisation has a180 maintained "Investors In People status and "Quality Guild" approval. This year, although coronavirus is endemic in our communities, it has not dominated Mldstream In the way it did in previous years and we have continued to keep our site as covid-free as possible. Thanks to the Govemment's wde scale vaccination programme (with priority being given to those who were most vulnerable and to those working in health & soci81 care)., and with fewer new cases of covid being repcrted nats'onally, Midgtream continues to operate effectively. Mid8tre8m has made further progress in securlng a position of financial 8trength to ensure delivery of Mldstraam's services into the foreseeable fijture by increased servlce users attending. A new refectory building has been completed which will secure the continuation of Midstream's service provision for the long term. Its completion has released additional capacity for seNice user attendance & will aid in the further development of the future s8Nice provision. As we look to the future, the essential outcome for the continued sustainabillty of the organisation is not to be complacent. Tackling a major challenge such as social exclusion demands concerted efforts. Public, prlvale, community and voluntsry sector organisations all have a part to play in improving the qualty of life of people most disadvantaged in the world of work Ihrough learning disabilities and other additional needs. Midstream bélieves that the more we can work together, the mare we will achieve in the future and the more likely il 16 that barriers to accessing employment opportunities will be broken down for the soci&economic good ofthe client group Midstream serves.
MIDSTREAM (WEST LANCS) LIMITED COMMITTEE MEMBERS. REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Financial revlew The net incoming resources for the year amounted to £261,552 and reserves now stand at £4,969,247. The charity has established a good reputation over the years with social workers, carers, teachers, careers officers, etc. Partnerships wort(ing with public, private and voluntary sector organisations are essential to delivering a service which meets Ihe complex needs of our client group. Combining training with employment with the provision of day care has generated significant income from referring organisations such as Social Services, privately run residential care homes and speci81 schools Midstream has benefited from income in respect of contracts secured with referring organisations totaling £2,259,704 (2023.. £1,948,697) included wilhin incorning resources from charitable activitie5. With growing emphasis on direct payments, Midstream attracts service users from a wider geagraphical 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 generaled income from sales of goods and serviS to the public totalling £110,30512023= £78,169), includad within activities for generating funds. This source of income contributes towards training material costs and promotional costs that the charity has incurred throughout Ihe financial year. The charity's overall expenditure has increased to £2,156,994 ctsmpared to £1,872.913, reflecling the incre8sed charitable activity in the year. Thls year Midstream has invested £668,8S7 {2023'. £37,789) in buildings, plant and equipment and office equipment. In furtherance of the charity's aims and objectives the Trustees took 8 decision in 2021 to construct a n@w detached building for staff and client dining facilities and addition81 staff parking. This year £605.194 was further invesled for the construction and completlon of the new building. With contrscts secured for the majority of Mldstream's activities into the forthcoming year and beyond, financially the outlook for the future is satisfactory. It 18 the policy of the charity that unrestricted funds which have not been designated for a speclfic use should be maintsin8d at 8 level 8quivalent 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 ectivities while consideration is given to ways in which additional funds may be raised. This level of reserves ha5 been exceeded throughout the year. The trustees have assessed the major risks to which the charity 18 exposed and are satlsfied that systems are in place to mitigate exposure to such risks. Structure, governance and management The ch8rity is a company limited by guarantee which was Incorporated on 13 March 1995 and registered as a charily on 20 June 1995. The company is governed by the Memorandum and Articles of Association which establish the objects and powers Of the charily. The Management Committee, who are also trustees and the directors for the purpose of company law, who served during the year were: RobertA. Johnstone PeterA. Atherton Deborah A. B, Morton (Appointed 3 December 2024)
MIDSTREAM (WEST LANCS) LIMITED COMMirrEE MEMBERS, REPORT (CONTINUED){INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2024 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 Commitlee are elected at the Annual General Meeting to serve a period of three years. subjecl to ratrfication 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 tha Charlty now rests with the Chief Executive, Mark G. Saxon (who replaced the retiring Anit8 C. Cooke during the year), who is responsible for ensuring the Charity delivers the serViS specified and that key performance indicators are met, The trustees are familiar with the practlcal 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. Dl8abl8d persons Applications for employment by disabled persons are always fully consldered, bearlng in mind the aptitude6 of the applicant concerned. In the event of memb8rs of staff becoming disabled, every effort is made to ensure that their ernployment within the charity continues and that the appropriate training is 8rranged. It is the policy of the charity thal the training, career development 8nd pramotion of disabled persons should, as far as possible, be identical to that of other employees. Employee Involvem•nt The charity',8 policy Is to consult and discuss with employees, through union8, Staff councils and at meetlngs, matters likaly to affect employees, interests. Infomation of matters of concem to employees is given through information bulletlns and reports which seek to achieve a common awareness on the part of all employees of the financi81 and economic factors affecting the group's performance, Auditor A resolLrtion proposing that JS. Audlt Limited be reappointed as auditors of the company will be put to the members. Dlsclosure of Informatlon to audltor Each member of the Management Committee has confirmed that there is no information of whlch they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have tak8n appropriate steps to identify such rel8vant information and to establish that the auditor 18 aware of such information. The Committee Members, report was approved b the Board of Management Committee. Robert A. Johnstone Director Dated: 8 December 2024
MIDSTREAM (WEST LANCS) LIMITED STATEMENT OF COMMITTEE MEMBERS. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 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 th8se accounts, the Management Committe8 is required to.. select suitable accounting policies and then apply them consistently., makejudgem8nt5 and estimate8 that are ressonable and prudent., state whether applicable accountlng standards have been followed, subject lo any material departures disclosed, and explained in the accounts., and prepare the accounts on the gcing concern basls unless it is inappropriate to presume that the charity will conlinue in operation. The Management Committea is responsible for keeping proper accounting records that disclose wlth reasonable accuracy at any time the financial position of the charity and which enable it to ensure that the accounts comply with the Compani8s Act 2006. It is also responsible for safeguarding the assets of the charity and 'hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities.
MIDSTREAM (WEST LANCS) LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MIDSTREAM (WEST LANCS) LIMITED Oplnlon We have audited the financial Statements of Midstream (West Lancs) Limited (the 'charity') for the year ended 31 March 2024 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 Raporting Standard applicable in Ihe 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 aff8irs as a131 March 2024 and of its incoming resources and application of resources, including it5 income and expendlture, for the year then ended., have been properly preparad in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordanc8 Wlth the requirements of the Companies Act 2008. Basls for opinlon We conducted our audit in accordance with International Standards on Audlting {UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilit188 for the audit of tha financial st8t9m9nts Section of our report. We are independent of the charity in accordance with the ethical requirernents that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibililies in accordance with these requirements. We believe that the audit evidence we have obtained is suffici8nt and appropriate to provide a basis for our opinion. Conclusions relatlng to going concern In auditing the fin8ncial stalemenls, we have concluded thal 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 relatlng to events or conditions th8t, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at leasl twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Management Committee with respect tc golng concern are described in the relevant sections of this report. Other Information The other information comprises the information induded 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 infomialion is materially inconsistent with the financial statements or our knowledge obtained in the course of the audil, 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 stalements 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 r8POrt in this regard. Oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of our audit= th& 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 thé financial statements., and the direGtors' report included within the Committee Members, report has been prepared in accordance with applicable legal requirements.
MIDSTREAM (WEST LANCS) LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MIDSTREAM (WEST LANCS) LIMITED Matters on whlch we are requlr8d to report by exception In the light of the knowledge and understsnding of the charity and its environment obtained in the course of the audit, we have not identrfied material misstatements in the director8, 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 accounling records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. o the financial statements are not in agreement with the accounting records and returns., or certain disdosures 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 th6 Management Committee were not entitled to pr8pare the financial ststements 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. R8sponsib'llltlo8 of Management Commlttee As explained more fully in the statement of Commlttee M8mbers' r&sponsibilities, the Management Committee, whc ar& also the directors of Ihe charity for the purpose of company law, are responsible for the preparation of the financial stat8ments and for being satisfied that they give a true and fair view, and for such internal control as the Management Committee determine is necessary io 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, m8lteT8 related to going concem and using the going concern basis of accounting unless the Management Commlttee either intend to liquidate the charitable company or to cease operatlons, or have no realistic alternative but to do so. Auditor's re8ponslbllltl8s for th• audlt of the flnanGial stat8ments Our obJ6Ctives 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 IB not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or èrror and are considered material if, individually or in the aggregate, they could reasonably be expected to Influence the economic decisions of users tsken on th8 basis ofthese financial slatements. Irregularities, including fraud, are instances of non-ccmpliance 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 cur procedures are capable of delecting irregularities, including fraud, is detailed below. Based on our understanding of the charitable company and sector. we identtfied th8t 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 financi81 statements (including the risk of oveIde of controls) and delermined that the principal risks were related to management bi8S in accounting estimates and judgements and the risk of fraud in revenue recognition.
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 flnanclal statement disclosures and testing to supporting documentstion lo assess compliance with provisions of relevant laws and regulations déscribed as having a dlrect effect on the financial statements; enquiring of management about actu81 and potential litigation and claim8, Iheir policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, 8uspecled or alleged fraud., performing analytical procedures to identity any unusual or unexpected relation6hips that may indicate risks of material mlsslatement due lo fraud., reading minules of meatings of those charged wth governance, obtaining an understanding of provisions and holding discussions Wlth management to understand the basis of recognition or non-recognition of provisions., and • in addrossing the risk of fraud through management ovenide of control8'. testing the appropriateness of joumal 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 slgnificant transactions that are unusual or outside the nonnal course of business. INe also communicated rel8vant identified laws and regulations and potenlial fraud risks to all engagement team memb8rs and remained glert to any indication8 of fraud or non-complianc& 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 transactlons, the less likely It is thal we would become aware of non-complian. Auditing st8ndards also limit the audit procedures required to identify ncn-compliance wlth laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arlse due to fraud c8n be harder to detect than tho88 that 8r18e from error a9 they may Involve deliberate concealment or collusion. A further d8scrlpllon of our re8pon8lbilities is available on the FlnancSal Reporting Councll's website at: https-11 www,frc.Drg.uauditorSraBponsibIlitie8. This deScri10n forms part of our Budltor's report. Use of our report This reportls m8de solely to the charitabl8 company's members, as a body, in accordance with Chaptar 3 of Part 16 of the Companies Act 2008. Our audlt vrfork 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 fullesl extent pemiitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charltable companls member5 a5 a body, for our audit work, for thi8 report, or for the opinions we have formed. E P P (Ol PeterAtklnson F.C.A. {Senlor Statutory Audltor) for and on behalf of JS. Audlt Limited 1211212024 Chartèred Accountants Statutory Auditor James House stonecross BusineGS Park Yew Tree Way Warrington Cheshire WA3 3JD
MIDSTREAM (WEST LANCS) LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestrlcted funds 2024 Unrestrlcted funds 2023 Notes Incom8 and endowments from: Donations and18gaGies Charitable activities Other tr8ding activities Investments Other income 1,119 2,259,704 110,305 39,236 8,182 1,587 1,848,697 78,169 11,344 10,854 Total income 2,418,546 2,050,451 Exp•nditure on: Raising fund8 Charitsble a¢tivitie8 99,862 2,057,132 61,773 1,811,140 Total expendlture 2,156,994 1,872,913 Net Income and movement in funds 261,552 177,538 R•concillatlon of funds.. Fund balances at 1 April 2023 4,707,695 4,530,157 Fund balances at 31 March 2024 4,969,247 4,707,695 The gtatèment of financial activities includes all gains and losses recognised in the year. All Incorre and expenditure derive from continuing activities.
MIDSTREAM (WEST LANCS) LIMITED BALANCE SHEET ASAT31 MARCH 2024 2024 2023 Not88 Fixed assets Tangible assets 14 2,446,338 1,875,858 Current assets Slocks Debtors Cash al bank and in hand 15 16 15,720 283,252 2,295,819 27,276 191,436 2,675,206 2,594,791 2,893.918 Credltors: amounts falllng due wlthln one year 17 171,882) (62,081) Net current assets 2.522,909 2,831,837 Total assets less current Ilabllltles 4,969,247 4.707,695 Income fund8 restri led funds General unrestricted funds Revaluation reserve 19 4,469,248 499,999 4,207,696 499,999 4,969,247 4,707,695. 4,969,247 4,707,695 The notes on pages 12 to 21 form part of these financial statements. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financlal statements were approved by the Management Commlttee on 6 December 2024 RobertA. Johnstone Trustee Company registratlon number 03032531 10-
MIDSTREAM (WEST LANCS) LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operatlng activitles Cash generated from operations 21 248,034 216,432 Investing activltles Purchase of tangible fixed assets Interest received <66e,857> 39,236 (37,789) 11,344 Net cash used In Investing actlvltles (627,421) (28,445> Net cash used In flnanclng actlvltles Net (decrease)IlnGrease in Gash and cash equlval8nts (379,387} 189,987 Cash and cash equivalents at beginning of year 2,875,206 2,485,219 Ca8h and caah equlvalents at end of year 2,295,819 2,675,206 11
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcies Charlty Informatlon Midstream (West Lancs) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 2 Penrose Place, Pimbo, Sk81mersdale, Lancashire, VVN8 9PR. .1.1 Accounting conventlon The account5 have been prepared in accordance with the charitvs Memorandum and Articles of Association, the Companies Act 2006 and °Accounting and Reporting by Charities. Statement of Recommended Practice applicable to charities preparing Iheir accounls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)° effective 1 Janu8ry 2019, Th6 charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared In sterling, which is the functional cUencY of the tharily. Monetary amounts in thes8 financial statements are rounded to the nearest £. The accounts have been prepared under the hlstorical cost convention, modlfied to include freehold land & buildings 8t revalued amounts. 1.2 Golng concern At the time of approving the financlal statements, the Management Committee have a reasonable expectalion that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Management Committee continue to adopt the golng concern basis of accounting In preparing the financial statements. 1.3 Charltable funds Unrestricted funds are available for use at the di8cr8tion of the Management Committee in furtherance of their charitable objectives. Unrestrlcted fund8 are donations and other incoming resources recelvable or generated for the objects of the charity without further specified purpose and 8re available as general funds. 1.4 Incoming resourc85 Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and il is probable that income will be received. Cash donations are recognised on recelpt. Other donations are recognised once the charity has been notlfled of the donation, unless perfonnance conditions r8quire deferral of the amount. Income tax recoverable in relation to donations received under Girt Aid or deeds of Covenant is recognised at the time of the donation. Incorning resources from commercial activities including the supply of plants, garden furniture. fencing. gardening services and from the tea shop are included when receivable, net ofVAT. Tumover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales r61ated taxe5. 1.5 Resources expended Expenditure is recognis&d once there is a legal or constructive obligation tD transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be requirèd in settlement. and the amount of the obligation can be measured reliably. 12-
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcles (Contlnued) Exp8nditure is classified by aclivity, The cost5 of each activity are made up af the total of direct costs and shared costs, including support costs involved in undertaking each aclivity Direct costs attributsble to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and Support costs which are not attributable to a single activity ar8 apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and d8preciation charges are allocated on the portion of the asset's use. 1.6 Tanglble flxed asset8 Tangible fixed assels are initially measured at cost and subsequently measured at cost or valuatlon, net of depreciation and any impaimient losses. Depreciation is recognised 80 as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold land and buildings Plant and machinery Computers and office equipment Motor vehicles 2 - 12.5Vo per annum on a Straight line basls 15D/o per annum on a reducing balance bas15 33Q/o per annum on a reducing balance basis 250/ts per annum on a reducing balance basis The gain or loss arising on the disposal ol an asset is detenined as the difference belween the sale proceèds and the carrying value of the asset, and Is recognised in th8 Statement cf financial activlties. 1.7 Impairment of tlxed assets At each reporting end date, the charity reviews the carrying amounts of it8 tangible assets to deterniine whether there is 8ny indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent af the impairment loss lif any). 1.8 Stocks stocks are ststed at the lower of cost and estimated selling price less costs to complete and sell. Net realisable value is the eslimated selling price less all estimated costs of completion and costs to be Incurred in marketing, selling and distribution. 1.9 Cash and cash equlvalents Cash and cash equivalents include cash In h8nd, deposits held al call wth banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.10 Flnanclal Instruments The charity has elected to apply the provisions of Section 11 '8asic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes paty to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to setde on a net basis or to realise the asset and settle the liability simuEtaneous1y. 13-
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accountlng policies (Contlnu8d) Baslc financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently c8rried at amortised cost using the effective interest method unless the arrangement constitules a financing transaction, where the transaction is maasured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised, Derecognltlon of flnanclal assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership lo another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to Sell the asset in ils entirety to an unrelated third paty. Basic flnancial liabilitles Basic financial liabilities, including creditors and bank loans are initially recognlsed at transaction price unless the arrangement constitutes a financing transection, where the debt instrument is measured at the present value of the future paymenls discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interesl rate method. Trade creéltors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year Dr less. If not, th8y are presented as non-currenl Ilabllitles. Trade creditors are recognised initially at transaction price and subsequently measured at amorti88d cost using the effective Interest method. Derecognitlon of flnancial Ilabllhles Financial liabilities are derecognised when the ch8rity's contractual obligations expire or are dlscharged or cancelled. 1.11 Employee benefits The cost of any unused holiday entitlement is recognlsed In the period in which the employee's serviGes are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to lerminate the employment of an employee or to provide termination benefits. 1.12 Retlrement benefits The charity operates a defined contrfbution pension scheme. ContribLrtions are charged in the accounts as they become payable in accordance with the rules ofthe scheme. Crltlcal accountlng estimates and Judgements In the application of the charity's accounting policies, the Management Committee are required to make judgements, estimates and assumplions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant, Actual resulls may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periodB. The critical estimates made by the Managernent Committee in preparing these financial statements relate to the assessment of the useful economic lives of the charity's tangible fixed assets when determining the appropriate depreciation policies as disclosed in Note 1.6. 14-
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from donations and legacles Unrestricted funds 2024 Unre8trlcted funds 2023 Donations and gifts 1,119 1,587 Incomlng resources from charltable activltl88 Unrestrlcted Unr88trfcted Tralnlng andTrainlng and day care day care Income income 2024 2023 Sale8 Within charitable activities 2,259,704 1,948,697 Incom8 from othertradlng actlvttle8 Unrastrlcted Unre8trlGted funds funds 2024 2023 Non-charit8ble trading activities 110,305 78,189 Income from investments Unrestrlcted Unrestricted funds funds 2024 2023 Interest re1vable 39,236 11,344 Other Income Unrestrlcted Unre5trfctad funds funds 2024 2023 other income 8,182 10,654 15-
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Other Income {Contlnued) Included within other income 8bove is £8,182 (2023.. £10,654) received in the year mainly relating to fund raising events ané an insurance claim. Rai51ng funds Unrestrlcted fund8 Unrnstricted nd8 2024 2023 Irrecoverable Input tax Advertising Training Materials Repairs and renewals Light and heat Motor expenseB Telephone Printing and stationery Insurance Legal and professional Audit and accountancy Bank charges Vehicle and equipment le8selhire Sundry Stsff costs Depreciation and impainnent Staff training 2,041 24 7,217 2,168 2,238 4,139 311 690 348 188 346 97 56 1,021 74,502 4,478 36 1,753 558 997 1,070 61 162 106 69 122 50 838 54,360 1,432 161 Tea shop and plant S81os 99,862 61,773 16-
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Charltable activltles Tralnlng and Training and day care day car8 Income Income 2024 2023 Staff costs D8preciation and impairment Legal and professional Training materials R8pairs and renewals staff training Light and heat Motor expenses Printing and stationery Telephone Advertislng Insurance Bank charges Audit and account8ncy Vehicle and equipment hire Sundry 1,526,235 91,701 4,036 134,187 46,59Q 11,321 48,09e 88,93e 14,830 6,672 515 7,487 2,087 7,440 1,194 65,805 1,355,150 88,077 4,232 107,803 34,212 9,925 61,295 65,818 9,990 3,742 2.207 6.515 3,104 7,493 51,577 2,057,132 1,811,140 Analy818 by fund Unrestricted funds 2,057,132 Forthe year ended 31 March 2023 UnrestriGted funds 1,811,140 1,811,140 10 Net movemont In funds 2024 2023 The n8t movement in funds is stated after chargingl(crediting)'. Depreciation of owned tangible fixed assets 96,177 89,509 11 Management Commltte8 No remuneration was paid to the trustees in the year (2023.. £Nill. Expenses totalling £982 (2023.. £255) were paid to the trustees in the year.
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12 Employees Numb8r of employees The average monthly number of employees during the year was= 2024 Number 2023 Number Employees 48 46 Employmant costs 2024 2023 Wages and salaries Social security costs Oth8r pension c08ts 1,369,403 127,541 103,783 1,191,102 11 S,026 103,382 1,600,737 1,409,510 The number of employees whose annual remuneration was £60.000 or more were.. 2024 Number 2023 Numbor 70,001 to 80,000 80,001 to 90,000 90,001 to 100,000 ,13 Taxatlon The charitable company is exempt from corporatlon tax on Itg charltable actlvlties. 18-
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) , FOR THE YEAR ENDED 31 MARCH 2024 14 Tanglble flxed assets Fre8hold land and buildings Plant and machinery Computgrs and office equlpment fvlotor vghlclos Totsl Cost or valuation At 1 April 2023 Additions 2,674,684 605,194 241,083 9,821 128,465 18,147 177,125 3,221,337 33,495 666,657 At 31 March 2024 3,279,858 250,904 146.612 210,620 3,887.994 Depreclatlon and Impalrnient At 1 April 2023 Depreciation charged in the year 904,700 58,429 187,091 9,571 117,601 9.669 136,087 1,345,479 18,508 96,177 At 31 March 2024 963,129 196,662 127,270 154,595 1,441,656 Carrylng amount At 31 March 2024 2,316,729 54,242 19,342 58,025 2,446,338 At 31 March 2023 1,789,964 53,992 10,864 41,038 1,875,858 The freehold land was revalued in the amount of £500,000 by a firm of independent Chartered SurveyDrs, Parkinson Commercial Property Consultants, on 12 January 1996 on the basis of an open market valuation for existing use, The valuation has not been updated and the trustees have adopted the transitional rules of FRS102 and treated this as the deemed cost of the land. The freehold land valued at £500,000 is nol depreciated. At 31 March 2024, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying emount would have been 8pproximately £1,816,729 {2023 £1,269,984). 15 Stocks 2024 2023 Finished goods and goods for resale 15,720 27,276 16 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income 185,6Q6 57,577 40,069 155,762 3,970 31,704 283,252 191,436 19-
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 17 Credltors: amounts falllng due wtthin one year 2024 2023 other taxation and social security Trade creditors Accrua15 and deferred income 27,750 38,475 5,657 27,140 29,906 5,035 71,882 62,081 18 Retirement beneflt schemes 2024 2023 Defined contributlon schemes Charg6 to profit or Ios8 in respect of defined contribution schemes 103,793 103,382 The charity operates a defined contribution pension scherne for all qualifying employee8. The assets of the scheme are held separately from those of the charity in an independently administered fund. 19 Unyestrfctod funds The unrestricl&d fund8 oflhe charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors 2nd grantors as to how they may bg used. These include designated funds which have been 8et aside out of unrestricted funds by the tru8tees for specific purposes, At 1 Aprll 2023 Incoming re50urGes Resources At 31 March expended 2024 General funds Revaluation reseNe 4,207,696 499,999 2,418,546 (2,156,994) 4,469,248 499,999 Prevlous year: At 1 April 2022 Incomlng .Re3ourcos At 31 March resources expended 2023 General funds Revaluation reserve 4,030,158 499,999 2,050,451 (1,872,913) 4,207,696 499,999 -20-
MIDSTREAM (WEST LANCS) LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 20 Related party transactlons Remuneration of key manag8ment personnel The remuneration of key management personnel was as follows: 2024 2023 Aggregate compensation 103,671 97,035 21 Cash generated from operatlons 2024 2023 Surplus for the year 261,552 177,538 Adjusiments for.. Investment income recognised in statement of financial activities Depreciation and Impairm&nt of tangible fixed ass8t8 139,236) 96,177 (11.344) 89.509 Movements in working capital.. Decreasel{increase) In gtecks Ilncrease> in debtors Incr8ase in creditors 11,556 (91,816> 9,801 116,435) (35,011) 12,175 Cash generated from operations 248,034 216,432 22 Analys18 of changes in net debt The charity had no debt during the year. 21