**Registered number: 02992726 Charity number: 1049364**
## **MID NORFOLK MENCAP**
**(A Company Limited by Guarantee)**
## **UNAUDITED**
## **DIRECTORS' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
**MID NORFOLK MENCAP**
**(A Company Limited by Guarantee)**
## **CONTENTS**
||**Page**|
|---|---|
|**Reference and Administrative Details of the Company, its Directors and Advisers**|**2**|
|**Chairman's Statement**|**3**|
|**Directors' Report**|**4 - 10**|
|**Independent Examiner's Report**|**11**|
|**Statement of Financial Activities**|**12**|
|**Balance Sheet**|**13**|
|**Statement of Cash Flows**|**14**|
|**Notes to the Financial Statements**|**15 - 26**|
1
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
**REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY FOR THE YEAR ENDED 31 MARCH 2023**
**Directors** J Gooch R Grout P Grout G Hayes E Jordan J Platten S Simpson **Company registered number** 02992726 **Charity registered number** 1049364 **Registered office** 1A Tavern Lane Dereham Norfolk NR19 1PX **Accountants** ADP Accounting Limited Certified Accountants 19 Farrow Close Mattishall Norfolk NR20 3SZ
2
## **MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **CHAIRPERSON'S REPORT FOR THE YEAR ENDED 31 MARCH 2023**
The chairperson presents their statement for the year.
Once again it has been an incredible year for Mid Norfolk Mencap, as we return to a new normal following the challenges presented by the global pandemic.
Our dedicated staff led by our General Manager, Jon, Wendy at Merle Boddy House, Anya, Debbie and Sarah have continued to work tirelessly to support all of our staff, clients, their families and friends. My thanks on behalf of the trustees goes to our whole staff team, who provide such great support.
Stepping Out and Gateway Club continue to be well supported at their new venues, our thanks goes to those volunteers who help keep these valuable services running. We will of course look to review those services placed on hold, at some point in the future.
Looking forward, our family carers group, which is an important part of our community will now meet a few times a year for friendship and support at Tavern Lane.
Mid Norfolk Mencap is facing exciting times as we look forward to developing a 5 year strategy to help us grow towards a brighter future. The strategy will incorporate the themes from Norfolk County Council, which looks to support our clients to reach their full potential.
It has been great to leave the constraints of the pandemic behind us, supporting the wider disability community and look forward to the opportunities in the coming year.
Pat Grout
Chairperson of Trustees Date:
3
## **MID NORFOLK MENCAP**
## **(A Company Limited by Guarantee)**
## **DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
The Directors present their annual report together with the financial statements of Mid Norfolk Mencap for the year 1 April 2022 to 31 March 2023. The Annual Report serves the purposes of both a Trustee's report and a Directors' report under company law. The Directors 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).
Since the company 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.
## **Objectives and activities**
## **a. Policies and objectives**
The Management of the Charity is vested in its annually elected Board of Trustees, consisting of people with various skills, abilities and knowledge, our responsibility being considerable under the requirements of the Charity Commissioners, Company Law and the Care Quality Commission.
The day-to-day management being delegated to the General Manager and Senior Management Team.
The Charity continues to work in partnership with Norfolk County Council (Adult Learning Disability Service) as an approved provider of Residential Care and an accredited provider of Community Support Services for people with learning disabilities living independently.
Administration of the Charity is provided by our small office team based at 1A Tavern Lane, Dereham.
An essential part of the Charity's work is to support family carers by providing relevant information and seeking to understand the complex changes in legislation and the challenges we face due to the changing agenda of both central Government and Norfolk County Council. The Charity has a local campaigning role to improve services and to try to prevent a reduction in service provision. It also has to be alert to tendering for any new suitable service provision outsourced by the local authority.
The Charity is well supported by a considerable number of valued volunteers, including an active fundraising team and a wellinformed membership.
Mid Norfolk Mencap is affiliated to Royal Mencap and also works in partnership with local organisations that can inform and support our work in the mid, south and north Norfolk areas.
In shaping our objectives for the year and planning our activities, the trustees confirm that in exercising their powers and duties they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission.
We endeavour to encourage all people with a learning disability within our community to take part in our charitable activities.
The strategies employed to achieve the charity's aims and objectives are to:
- Present a broad range of activities for the enjoyment of our local community;
- Offer opportunities for people to get involved in activities exploring their own creative powers;
- Provide facilities for people to develop their independence and life skills.
During the recent pandemic suitable alternative support systems have been instigated where possible in line with Government guidance.
4
**MID NORFOLK MENCAP**
**(A Company Limited by Guarantee)**
**DIRECTORS' REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Objectives and activities (continued)**
## **b. Activities undertaken to achieve objectives**
## **Residential Services**
We run a Care Quality Commission (CQC) registered ten bed residential home in Dereham for adults with learning disabilities under the management of a Registered Manager, with the Nominated Individual being the Chairperson, Pat Grout.
## **Community Support Services**
We provide services to vulnerable people living in their own homes within the local community either by a contracted service from the local authority or by payment via Personal Budgets. Clearly this continues to be an important developmental area for the charity.
This service was CQC registered during the year but now comes under Day Services.
## **Charitable Services**
We continue to provide various charitable services subsidised by our own fundraising efforts and donations.
## **c. Volunteers**
The Charity is involved in the community and relies on voluntary help. Over 30 volunteers assist with running the charitable activities, enabling lower staff costs than would otherwise be the case. We wish to thank these volunteers for their loyal support and service.
## **d. Main activities undertaken to further the company's purposes for the public benefit**
In shaping our objectives for the year and planning our activities, the trustees confirm that in exercising their powers and duties they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission.
The personal involvement of trustees in our services and activities enables direct feedback and informs the decision-making
## **Achievements and performance**
## **a. Key performance indicators**
The main financial performance indicators are bank balances and fund balances. These are monitored regularly by management and Trustees. These are increasingly challenged as the Local Authority funding bodies are operating under an ever tightening budget.
## **b. Review of activities**
The Community Support services have continued to grow over the past year.
The Charitable Services have had to adapt to needs and restrictions during the Covid 19 pandemic.
Our staff deserve credit and praise for their skilful and enthusiastic efforts to provide quality services to our service users under a tight budget and the continuing demands created by Covid 19.
Maintaining a balance between providing services that are safe and effective, and maintaining a financial balance is an ongoing challenge.
5
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **Achievements and performance (continued)**
Residential Services — we have provided some respite care in one of our vacant rooms. We remain prepared to provide urgent residential care if requested and currently have two vacancies.
We have had to postpone our plans to extend the kitchen and refurbish Merle Boddy House, although further important improvements have been carried out. The trustees have been considering wider options and these have to be included in a review of the residential service.
A large proportion of the Norwich Mencap Donation will be used to fund some of this work once final decisions are made, with the remainder coming from our reserves.
We have purchased a new vehicle for Merle Boddy House with some of the money coming from the Norwich Mencap donation.
The Residential Services Fund arises following a legacy from a former resident's family member. The fund is available to be used for any expenditure for the benefit of residents or enhancements of residential services. Once the building work is complete, we will use some of this fund to decorate and furnish the interior of the building.
Community Support — We have increasingly become an essential support service for people with prodominantly learning disabilities living in the community. In addition to routine regular support we have also provided crisis support for these individuals and their families. This has resulted in an improved positive working relationship with other partner agencies.
Charitable Services — Unfortunately due to Covid 19 these services have been run at a restricted level. Some of which have now resumed.
The Charitable Services ran at a small deficit of £50 and is funded by a transfer from unrestricted funds.
The Trustees continue to believe these services are essential, even though they are no longer funded by the local authority.
## **c. Investment policy and performance**
The trustees, having regard to the liquidity requirements of operating the organisation, have kept available funds in interest-bearing deposit accounts and seek to achieve a rate on deposit which reflects the recent increase of interest rates. Due to wider economic circumstances deposit rates have been depressed and so despite very low interest rates and due to the possible future developments requiring capital expenditure the trustees feel that the liquidity of cash deposits is of greater priority. As rates begin to rise we aim to respond where we can, to benefit from higher interest rates.
## **Financial review**
## **a. Going concern**
During the long history of the Charity, the trustees have always had a reasonable expectation that the company had 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. However, there have been multiple events in recent years that have given rise to a need to consider this more closely.
Despite the increasing pressure on public expenditure the trustees understand that the support from the local authority, Norfolk County Council, has increased in this financial year but not sufficiently to match the rate of inflation, National Living wage rises and pension responsibilities.
6
**MID NORFOLK MENCAP**
**(A Company Limited by Guarantee)**
## **DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **Financial review (continued)**
The Residential Service had suffered decreases of income due to a combination of events including a reduction in levels of funding following reviews and the inability of Norfolk Social Services to conduct and complete meaningful reviews in a timely manner. This has been addressed to a degree over the year, but after yet another year it is not fully resolved. Increased demands by regulatory bodies have also increased costs of both staff and infrastructure. It is also the trustees clear and determined goal to continue to provide a safe environment, meaningful life, nutritionally sound diet and personal choice in the lives of those we care for.
Further investigations are being undertaken to find further areas of savings across the whole organisation.
The principal funding sources of income to the organisation were: residential fees of £471,813, and community support fees of £359,988. The improved efficiencies recently introduced have reduced the shortfall on the day-to-day running of the organisation. The support of our partners continues to be essential to maintaining a varied programme of charitable activities. These services are not all self-supporting and rely on a mixed economy of funding, including an allocation from Mid Norfolk Mencap's unrestricted reserves to ensure a virbant and comprehensive programme of activities.
## **b. Covid-19**
The trustees have adopted Government Guidelines in all areas of it's operation, including all trustee meetings being conducted virtually by Zoom, when restrictions required, and for some sub-committees this continues to be the preferred method. Main Trustee Board meetings are now face to face. Meeting frequency has been increased to deal with the rapidly changing circumstances of the disease and our financial circumstances.
We have received various grants throughout the year from Central Government, via Norfolk County Council, to offset costs incurred due to the Covid 19 regulations.
Testing has been adopted as per guidance. Personal Protective Equipment has been purchased, distributed and staff and residents trained in it's use. All residents and staff are now fully vaccinated.
Support to residents and community support clients has been provided in the best way possible, working within the guidelines.
## **c. Our pricing policy**
Our pricing policy reflects our strategy of enabling all within our community, whatever their means, to take part in our charitable activities. There are no concessions available as we keep our attendance fees at a minimum to all.
Our pricing policy for residential and community support services is restricted by the limits imposed by the local authority.
## **d. Reserves policy**
Reserves are needed to bridge the gap between the spending and receiving of income and to cover contingency expenditure, including voids at our residential home, staffing costs and repairs.
The trustees consider that a level of 3 months running costs, and 2 voids for 6 months, is sufficient.
Total reserves as at 31 March 2023 were £853,832 (2022 - £793,618) of which £106,328 (2022 - £131,584) was restricted.
The charity had unrestricted reserves of £747,505 as at 31 March 2023 (2022 - £662,034) of which £243,139 (2022-£242,171) is currently designated. The total value of fixed assets at 31 March 2023 was £241,891 (2022-£229,893) which leaves free reserves of £262,475 (2022-£189,971).
7
**MID NORFOLK MENCAP**
## **(A Company Limited by Guarantee) DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **Financial review (continued)**
The experience of the last few years has emphasised the importance of adequate reserves.
A strategic review of our reserves has been carried out and the Trustees consider that one of the key benefits to the organisation is via the residential services which need modernising. We have established a new startegy with a timetable over the next five years. We have improved the office space at Tavern Lane to enable expansion of the Community Support services.
## **Structure, governance and management**
## **a. Constitution**
The company is constituted under a Memorandum of Association dated 9 July 2007 and is a registered charity number 1049364. It is a charitable company limited by guarantee.
## **The objects of the Charity are:**
- The relief of people with a learning disability, in particular by the provision of help and support for them and for their
- **.** families, dependents and carers, and to promote the understanding and support of those with learning disabilities for the public benefit; and
- To provide or assist in the provision of facilities for the recreation or other leisure time occupation for people who
- **.** have need thereof by reason of learning disability, with the object of improving their conditions of life.
Anyone can become a member of the Company and there are currently 98 active members, each of whom agreed to contribute £1 in the event of the charity winding up.
We now operate an annual membership subscription. This is to help provide the charitable services and to cover the administration costs in producing monthly communication and detailed annual report.
## **b. Methods of appointment or election of Directors**
The management of the company is the responsibility of the Directors who are elected and co-opted under the terms of the Trust deed.
All members are circulated with invitations to nominate trustees prior to the AGM. When considering co-opting trustees, the Board has regard to the requirement for any specialist skills needed.
## **c. Organisational structure and decision-making policies**
The board of trustees, which can have up to 14 members, administers the charity. The board normally meets every 6 weeks and there are sub-committees covering finance and audit, and personnel which also meet every 6 weeks. The governance and strategy sub-committees meet as and when required. The General Manager manages the day-to-day operations and the Finance Manager, Residential Services Manager and Public Relations and Office Manager, have delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and service activity.
## **d. Policies adopted for the induction and training of Directors**
New trustees are offered an initial briefing on: their legal obligations under charity and company law, and the Charity Commission guidance on public benefit. They are also informed of the content of the Articles of Association, the committee and decisionmaking processes, the business plan and recent financial performance of the charity. During their induction they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training and events where these will facilitate the undertaking of their role.
8
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **Structure, governance and management (continued)**
## **e. Pay policy for key management personnel**
The directors consider the board of directors, who are the charities trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day to day basis. In view of the nature of the charity, the policy for senior staff pay review is that the directors benchmark periodically against pay levels in other health and social care organisations of a similar role.
When setting rates of pay for the salary year 23/24 it was decided that all staff should be given an equal percentage pay rise in order to retain salary differentials and to assist with retention and recruitment. This was based on the increase in Minimum Wage and the matching uplift in fees to be paid by Norfolk County Council. Acknowledging that a benchmarking exercise has not been undertaken for some time, the directors are agreed to implement benchmarking to inform the 2023/24 pay review for senior staff.
## **f. Related party relationships**
None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity with a service user or employee must be disclosed to the full board of trustees in the same way as any other contractual relationship with a third party.
## **g. Financial risk management**
The directors have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that the systems and procedures are in place to mitigate our exposure to the major risks.
The trustees have a risk management strategy which comprises of:
- An annual review of the principal risks and uncertainties that the charity face;
- The establishment of policies, system, and procedures to mitigate those risks identified in the annual review; and
- The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
This work has identified that financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, and active management of trade debtors and creditors balances to ensure sufficient working capital by the charity.
Attention has also been focused on non-financial risks arising from fire, health and safety and food hygiene and maintaining regulatory approval with CQC and Quality Assurance in line with the Care Act. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place and regular training for staff working in operational areas.
## **h. Information on fundraising practices**
The charity does not externally fundraise. There have been no complaints in the year received by the charity about activities undertaken by the charity or by a person on behalf of the charity, for the purpose of fundraising.
9
**MID NORFOLK MENCAP**
**(A Company Limited by Guarantee)**
## **DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **Structure, governance and management (continued)**
## **Plans for future periods**
The strategic committee continue to work on a rolling annual plan.
A major financial concern for the organisation will be ongoing financial sustainability with the effective reduction in funding.
In the next 12 months, the trustees anticipate:
- Continuing discussions with Norfolk County Council Social Services to overcome the delays in establishing correct funding levels for residents. Further discussion also to identify the most cost effective way to structure our residential care service.
- Continuing to focus on improvements to our residential home
- Filling voids at the residential home
- Expanding the community support services
- Further promoting Charitable Services taking into account continuing developing needs.
- To devote the necessary time and effort to progress the strategic review of Merle Boddy House.
## **Statement of Directors' responsibilities**
The Directors (who are also the directors of the company for the purposes of company law) are responsible for preparing the Directors' 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 Directors to prepare financial statements for each financial year. Under company law the Directors 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 company and of its incoming resources and application of resources, including its income and expenditure, for that period.
In preparing these financial statements, the Directors 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 company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Directors and signed on their behalf by:
P Grout, Chairperson
Date:
10
**MID NORFOLK MENCAP**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT EXAMINER'S REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Independent Examiner's Report to the Directors of Mid Norfolk Mencap ('the company')**
I report to the charity Directors on my examination of the accounts of the company for the year ended 31 March 2023.
## **Responsibilities and Basis of Report**
As the Directors of the company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145-5 (b) of the 2011 Act.
## **Independent Examiner's Statement**
Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
- 1 accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
- 2 the accounts do not accord with those records; or
- 3 the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
- 4 the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the company's Directors, as a body, in accorcance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the company's Directors those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's Directors as a body, for my work or for this report.
Signed:
Dated:
Pauline Street ACCA FMAAT ADP Accounting Ltd 19 Farrow Close Mattishall Norfolk NR20 3SZ
11
**MID NORFOLK MENCAP**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023**
|**Note**
**Income from:**
Donations and legacies
**2**
Charitable activities
**3**
Investments
**4**
**Total income**
**Expenditure on:**
Charitable activities
**Total expenditure**
**Net expenditure**
Transfers between funds
**14**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
Total funds carried forward|**Unrestricted**
**Restricted**
**Total**
**Total**
**funds**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**2022**
**£**
**£**
**£**
**£**
5,293
250
5,543
24,023
879,920
5,372
885,292
807,758
2,659
30
2,689
1,686
887,872
5,652
893,524
833,467
827,352
5,959
833,310
749,379
827,352
5,959
833,310
749,379
60,521
-307
60,214
84,088
24,950
-24,950
0
0
85,471
-25,257
60,214
84,088
662,034
131,584
793,618
709,531
85,471
-25,257
60,214
84,088
747,505
106,328
853,832
793,618|
|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
**The notes on pages 15 to 26 form part of these financial statements**
12
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **BALANCE SHEET AS AT 31 MARCH 2023**
|**Note**
**£**
**£**
**Fixed assets**
Tangible assets
**10**
241,891
Investments
**11**
99,523
341,415
**Current assets**
Debtors
**12**
115,755
Cash at bank and in hand
425,820
541,574
**13**
-29,157
**Net current assets**
512,417
**Total net assets**
853,832
**Charity funds**
Restricted funds
**14**
106,328
Unrestricted funds
**14**
747,505
**Total funds**
853,832
**2023**
**Creditors: amounts falling due within one year**|**£**
**£**
229,893
98,485
328,378
56,472
445,506
501,977
-36,737
465,240
793,618
131,584
662,034
793,618
**2022**|
|---|---|
The company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Directors and signed on their behalf by:
P Grout, Chairperson
J Gooch
Date:
**The notes on pages 15 to 26 form part of these financial statements**
13
## **MID NORFOLK MENCAP**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Interests from investments
Purchase of tangible fixed assets
Sale of tangible fixed assets
**Net cash (used in)/provided by investing activities**
**Cash flows from financing activities**
Interest capitalised
**Net cash used in financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**2023**
**£**
3,558
2,689
-24,995
100
-22,206
-1,038
-1,038
-19,686
445,506
425,819|**2022**
**£**
76,263
1,686
-4,226
0
-2,540
-990
-990
72,733
372,773
445,506|
|---|---|---|
**The notes on pages 15 to 26 form part of these financial statements**
14
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1) Accounting policies**
## **1.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: preparing their accounts in accordance with the Financial Reporting Standard Statement of Recommended Practice applicable to Charities in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) and the Companies Act 2006.
Mid Norfolk Mencap meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **1.2 Company status**
The company is a company limited by guarentee. The members of the company are the Directors named on page 1.
## **1.3 Income**
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably.
In accordance with the Charities SORP (FRS102), the general volunteer time of the Friends is not recognised and refer to the Directors' Report for more information about their contribution.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## **1.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.
Direct costs attributable 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 are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support and governance costs.
## **1.5 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
15
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1) Accounting policies (continued)**
## **1.6 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is provided on the following bases:
Leasehold property improvements - Depreciated over 6 years (lease term) Motor vehicles - 5-10 years straight line Fixtures and fittings - 5 years straight line
## **1.7 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably, in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as `Gains/(Losses) on investments' in the Statement of Financial Activities.
## **1.8 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered.
Prepayments are valued at the amount prepaid net of any trade discounts due.
## **1.9 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.10 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
## **1.11 Financial instruments**
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
16
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1) Accounting policies (continued)**
## **1.12 Pensions**
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
## **1.13 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Directors in furtherance of the general objectives of the company and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Directors 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 company 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.
Investment income, gains and losses are allocated to the appropriate fund.
## **2) Income from donations and legacies**
|Donations
Donations
**3) Income from charitable activities**
Incoming resources
Incoming resources|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
5,293
250
5,543
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2022**
**2022**
**2022**
**£**
**£**
**£**
23,558
465
24,023
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
879,920
5,372
885,292
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2022**
**2022**
**2022**
**£**
**£**
**£**
798,058
9,700
807,758|
|---|---|
17
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
|Residential income
Service users
Grants
Covid related
Catering/Refreshments
Community support
Misc
Room hire
Residents Benefits
Fundraising Income
**4) Investment income**
Investment income
Investment income
**5) Analysis of incoming resources by department**
Merle Boddy House (MBH)
Office
Family Carers Group
Dereham & District Gateway Club
Saturday Clubs
Playscheme
Fundraising
Presidents Fund
Friends of MBH
Stepping Out Club
Cromer Drop In
Sensory Room Project
Community Support
North Norfolk|**2023**
**2022**
**£**
**£**
471,813
384,161
1,086
219
1,050
10,773
0
26,109
624
40
359,988
347,036
1,151
2,964
8,568
120
38,095
34,579
2,917
1,758
885,292
807,758
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
2,659
30
2,689
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2022**
**2022**
**2022**
**£**
**£**
**£**
1,686
0
1,686
**2023**
**2022**
**£**
**£**
509,908
467,541
12,477
763
28
95
1,898
0
0
68
0
0
3,091
11,214
0
0
386
244
458
158
802
776
2,882
465
360,791
351,365
802
776
893,524
833,467|
|---|---|
18
**MID NORFOLK MENCAP**
**(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **6) Analysis of Charitable Activities by expenditure type**
|Merle Boddy House
Office
Family Carers Group
Dereham & District Gateway Club
Saturday Clubs
Playscheme
Fundraising
Presidents Fund
Friends of MBH
Stepping Out Club
Cromer Drop In
Sensory Room Project
Community Support
Merle Boddy House
Office
Dereham Drop in
Family Carers Group
Dereham & District Gateway Club
Saturday Clubs
Playscheme
Fundraising
Presidents Fund
Friends of MBH
Stepping Out Club
Cromer Drop In
Sensory Room Project
Community Support|**Other**
**Total**
**Staff Costs Depreciation**
**Costs**
**funds**
**2023**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**£**
347,032
7,053
101,668
455,753
93,792
980
43,235
138,006
129
129
2,178
2,178
0
50
50
3,062
3,062
636
636
351
351
452
452
0
0
2,793
6
2,799
191,897
2,722
35,275
229,894
632,721
13,548
187,042
833,310
**Other**
**Total**
**Staff Costs Depreciation**
**Costs**
**funds**
**2022**
**2022**
**2022**
**2022**
**£**
**£**
**£**
**£**
321,008
6,025
91,391
418,424
84,873
1467
42,517
128,857
0
0
85
85
0
0
0
0
30
30
2,910
2,910
1,393
1,393
345
345
653
653
0
0
3,142
0
3,142
163,657
3,627
26,255
193,539
569,538
14,261
165,580
749,379|
|---|---|
19
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **7) Independent examiner's remuneration**
|**8) Staff costs**
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Fees payable to the company's independent examiner
of the company's annual accounts|**2023**
**£**
5,042
**2023**
**£**
575,709
29,790
27,222
632,721|**2022**
**£**
3,138
**2022**
**£**
514,772
33,274
21,493
569,538|
|---|---|---|
Included within the above is £28,290 (2022: £11,446) of agency costs.
The average number of persons employed by the company during the year was as follows:
|Residential and Day Centre
Administration|**2023**
**No.**
30
4
34|**2022**
**No.**
29
4
33|
|---|---|---|
No employee received remuneration amounting to more than £60,000 in either year.
The charity considers its key management personnel comprises the trustees and four department managers. The total employment benefits including employer pension contributions of the key management personnel were £129,978 (2022: £117,953).
## **9) Directors' remuneration and expenses**
During the year, no Directors received any remuneration or other benefits (2022 - NIL). During the year ended 31 March 2023, no Director expenses have been incurred (2022 - NIL).
20
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **10) Tangible fixed assets**
|**Cost or valuation**
At 1 April 2022
Additions
Disposals
At 31 March 2023
**Depreciation**
At 1 April 2022
Charge for the year
Depreciation eliminated on disposal
At 31 March 2023
**Net book value**
At 31 March 2023
At 31 March 2022|**Short-term**
**Freehold**
**leasehold**
**Motor**
**Fixtures and**
**property**
**property**
**vehicles**
**fittings**
**Total**
**£**
**£**
**£**
**£**
**£**
195,000
59,124
46,112
33,112
333,348
24,995
24,995
-16,800
-16,800
195,000
59,124
54,307
33,112
341,543
42,493
40,754
19,557
102,804
4,334
5,042
4,272
13,648
-16,800
-16,800
0
46,827
28,996
23,829
99,652
195,000
12,297
25,311
9,283
241,891
195.000
16,631
5,358
13,555
230,544|
|---|---|
## **11) Long term cash deposits**
|**Cost or valuation**
At 1 April 2022
Transfer to current account
Interest reinvested
At 31 March 2023
**Net book value**
At 31 March 2023
At 31 March 2022|**Other fixed**
**asset**
**investments**
**£**
98,485
0
1,038
99,523
99,523
98,485|
|---|---|
21
**MID NORFOLK MENCAP**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **12) Debtors - Due within one year**
|Trade debtors
Prepayments and accrued income
**13) Creditors: Amounts falling due within one year**
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|**2023**
**£**
104,656
11,098
115,755
**2023**
**£**
8,919
123
0
20,114
29,157|**2022**
**£**
37,393
19,078
56,472
**2022**
**£**
14,085
10,919
42
11,692
36,737|
|---|---|---|
## **14) Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
**Designated funds**
Norfolk Development Fund
Cromer Drop in
Presidents Fund
**General funds**
Reserves
**Total Unrestricted funds**
**Restricted funds**
Norwich Mencap Donation
Dereham & District Gateway Club
Friends of MBH
Sensory Room Project
Stepping Out Club
Family Carers Group
Residential Services Fund
Saturday Clubs
Playscheme
**Total Restricted funds**
**Total of funds**|**Balance at 1**
**April 2022**
**Income**
**Expenditure**
**Transfers**
**In/Out**
**Balance at**
**31 March**
**2023**
**£**
**£**
**£**
**£**
**£**
227,644
802
0
228,446
2,527
802
0
3,329
12,000
0
-636
11,364
242,171
1,604
-636
0
243,140
419,863
886,268
-826,716
24,950
504,365
662,034
887,872
-827,352
24,950
747,505
51,464
0
0
-15,000
36,464
5,114
1,898
-2,178
4,834
4,518
386
-351
4,553
4,682
2,882
-2,799
4,766
0
458
-452
6
2,283
28
-129
2,182
63,361
0
0
-10,000
53,361
162
0
0
162
0
0
-50
50
0
131,584
5,652
-5,959
-24,950
106,328
793,618
893,524
-833,310
0
853,833|
|---|---|
22
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **14) Statement of funds (continued)**
The Norfolk Development designated fund was established using the funds received from Royal Mencap upon cessation of North Norfolk Mencap. These funds are unrestricted however, the trustees have designated these funds with the intention that they are used for the benefit of Norfolk residents.
The Residential Services Fund arises following a legacy from a former residents family member. The fund is available to be used for any expenditure for the benefit of residents or enhancements of residential services. Once the building work is complete we will use some of this fund to decorate and furnish the interior of the building.
## **Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Norfolk Development Fund
Cromer Drop in
Presidents Fund
**General funds**
Reserves
**Total Unrestricted funds**
**Restricted funds**
Norwich Mencap Donation
Dereham & District Gateway Club
Friends of MBH
Sensory Room Project
Stepping Out Club
Family Carers Group
Residential Services Fund
Saturday Clubs
Playscheme
**Total Restricted funds**
**Total of funds**|**Balance at 1**
**April 2021**
**Income**
**Expenditure**
**Transfers**
**In/Out**
**31 March**
**2022**
**£**
**£**
**£**
**£**
**£**
226,868
776
0
227,644
1,751
776
0
2,527
12,000
0
12,000
240,619
1,552
0
0
242,171
334,168
830,884
-745,124
-65
419,863
574,787
832,436
-745,124
-65
662,034
51,464
51,464
5,114
0
0
5,114
4,619
244
-345
4,518
7,359
465
-3,142
4,682
460
158
-653
35
0
2,273
95
-85
2,283
63,361
63,361
94
68
0
162
0
0
-30
30
0
134,744
1,030
-4,255
65
131,584
709,531
833,466
-749,379
0
793,618|
|---|---|
23
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **15) Summary of funds**
## **Summary of funds - current year**
|Designated funds
General funds
Restricted funds
**Summary of funds - prior year**
Designated funds
General funds
Restricted funds|**Balance at 1**
**April 2022**
**Income**
**Expenditure**
**Transfers**
**in/out**
**Balance at**
**31 March**
**2023**
**£**
**£**
**£**
**£**
**£**
242,171
1,604
-636
0
243,139
419,863
886,268
-826,716
24,950
504,365
131,584
5,652
-5,959
-24,950
106,328
793,618
893,524
-833,310
0
853,832
**Balance at 1**
**April 2021**
**Income**
**Expenditure**
**Transfers**
**in/out**
**Balance at**
**31 March**
**2022**
**£**
**£**
**£**
**£**
**£**
240,619
1,552
0
0
242,171
334,168
830,884
-745,124
-65
419,863
134,744
1,030
-4,255
65
131,584
709,531
833,467
-749,379
0
793,618|
|---|---|
## **16) Analysis of net assets between funds**
## **Analysis of net assets between funds - current period**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**
**Analysis of net assets between funds - prior period**
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
241,891
241,891
99,523
99,523
435,247
106,328
541,574
-29,157
-29,157
747,504
106,328
853,832
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2022**
**2022**
**2022**
**£**
**£**
**£**
229,893
229,893
98,485
98,485
361,328
140,649
501,977
-36,737
-36,737
652,969
140,649
793,618|
|---|---|
24
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **17) Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest
Decrease/(Increase) in debtors
Increase/(Decrease) in creditors
**Net cash provided by/(used in) operating activities**
**18) Analysis of cash and cash equivalents**
Cash in hand
Total cash and cash equivalents
**19) Analysis of Net Debt**
Cash at bank and in hand|**2023**
**2022**
**£**
**£**
60,214
84,088
13,548
14,261
-2,689
-1,686
-59,934
-39,290
-7,580
18,891
3,558
76,264
**2023**
**2022**
**£**
**£**
425,820
445,506
425,820
445,506
**At 1 April**
**At 31 March**
**2022**
**Cash flows**
**2023**
**£**
**£**
**£**
445,506
19,686
425,820|
|---|---|
## **20) Pension commitments**
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £27,222 (2022: £21,493).
25
**MID NORFOLK MENCAP (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **21) Operating lease commitments**
At 31 March 2023 the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|**Amounts payable Land and Buildings**
Within 1 Year
Between 1 and 5 years
**Amounts payable Other**
Within 1 Year
Between 1 and 5 years|**2023**
**£**
15,000
33,750
48,750
**2023**
**£**
1,867
7,936
9,804|**2022**
**£**
15,000
48,750
63,750
**2022**
**£**
2,599
624
3,223|
|---|---|---|
## **22) Related party transactions**
In the year, children of certain trustees attended activities or were residents at Merle Boddy House. Payment for these services was at the same rates as for other attendees.
The daughter and step daughter of R Grout and P Grout (both trustees) is employed by the charity, at the same pay scales used for other employees.
26