EALJNG METrICAP (A Company Limited by Guarglltee) REPORT AND FINANCIAL STATEMENTS 31st March 2023 Charity Number: 1054061 Company Number: 03039319 *ACÉJ114FI" 20110r2023 COMPANIES HOUSE A10 Ko Page I Report of the Trustees for the Year Ending 31st March 2023 The trustees are pleased to preseTrt their annual directors, report together with the financial statements of the chaTity for the year ending 31 March 2023 which aTe also prepared lo meet the requirements for a directors, report and accounts for CompaDi¢s Act purposes. The financial statements Comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Cbarities.. Statemenl of Recommended Piacti¢e applicable lo charities preparing their accounts in a￿rdance Mpith the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Our Aims and Purpose Our charity's pu￿0$¢$ as set out in the obJ￿ts ¢ontsined in the company's memorandum of association.. are thai we provide support and services for people with a learning disability and otber disabilities or other disadvantaged p¢rsons. their carers and families. In shaping our objeciiiies fo[ the year and plann&ng our activities. the trustees bave considered the Charity Commission's guidance on public benefiL including tb¢ guidance 'public bellefit.. nu)ning a charity ￿ B2),. The charity relies OD grants and the i￿Ome from fees a￿d charges to ¢over its operating costs. Our Vision Is: To change society so that disabled people can fully enjoy their rights and live as happily and independently as possible. Our mission is: Disabled people ivill have every opportunity throughout their life to achieve ¢heir full potential. Ensuring our Ivork deliveTS our aims We bave remained fowscd and bav¢ acbicv¢d many of tb¢ obj¢ctivcs wc srt ourselves IT) OUT 2 year 21-23 Changing Lives Strat¢gi¢ plan. Our plats ljas ¢nabled us to navigat¢ out way through the challenges wc are still facing after a global panden]ic and we continue to make a slow recovery from it. The Covid pandemi¢, the changing needs of our benefici￿les, Ihe changmg expectations of OUT external fi￿der51st8j(ch0ldcrS and the cost-of- livin8 crisiOsocial care staff shortage crisis is now baving an adverse impact on our income. Plus. 8nd importantly Ealing Council has now revised its commissioning stratègy and the aini is to move away from tlon-building-based services which have provided a significant proportion of Ealing Mencap's illcome and contributiOTJ to Central and management costs for many years. This is not new news to us, and as outlined in our cornrnitments for 22-23 wc have over the past year been WOTking iowards the lasi year of our strategic plan. as well as considering our strategic direction goillg forward inio 2024 a7)d beyond. Changing our strafrgic direction a5 a charity, as well as consideTing our business model, which has served us well is now of paramount importance. As outlined in one of our 22_23 objectives we need to shift away from the reliance of social care funding as OUT business model 15 not fit for the future. To help us with our ihinkn.ng we bave T¢cently been worla.ng with Charities Aid Foundatson to develop a new strafr8y ihat will enable Ealing Men¢ap to change. survive and thn"ve, during what will conunue to be a challenging tim¢ for l)oth the charity and our beneficiaries. Page 2 We now understandlrecognise and aTe comTnitted to both Chan￿ng the fo¢us of what we do.and modernising management and our delivery over the next few years. We have agreed that we need to still, whilst we can, meet the needs of our existing Custo0￿rS and proactively change our approach so we can reach tbose that we are not cu￿entlY supporting. We have agreed that our Vision and Mission and values are fit for putpose for th¢ Dext y¢ar and instead of d¢veloping a new 213-year Strategy we are going to be worknng with a suc¢inct one year 23-24 action plan. The next fcw ycaTS will be critical for the clwity as it seeks to modernise and change. It Is important therefore that to the extent tbai li is possible, Ibe charity has strong and CODSlSteut leadersh]"p. Work has already begun to Strengthen and diversify the skn'llset of the board of m]si¢es. The CEO will be retiTing at the end of Dec¢mbeT 2023 and the rolt will revert to a full-time position and a new cbair will be appointed With￿ the next year. We are commltted to continuing to provide legacy serv1￿ to existing cusiomcrs and we will c4)ntlDue to inDovate and seek to develop new relevant fimded provision for disabl¢d people and th¢ir families. Almost 5,500 adults with a leaming disability are living in our community and many ar¢ reliant on help from their n¢ighbour5 and families. We wanl to P051tively impacl on the b.ves of everyone with a leaming disabdity. Over the next two years as part of the tran5forniation of OUT offcT w¢ will proaGtively rfach out into th¢ community and create new charitsble support products for peopl¢ who ar¢ ineligible for sthtutory fundijg, so that ev¢ryon¢ has support tbat is relevant to them when they need it. W¢ will continue to reseaTch and make use of technology, so we caD swiftly Tespond to tbe changing needs of our. communiry. We are optimisti¢ a5 we move O new eTa for the charity. We Jr¢ aware that as we tTausfomi, we will need to reorganise roles and responsibilities and ￿se reserves. if requiT¢d, as w¢ remain committed to creating a b¢tt¢r so¢i¢ty wher¢ th¢ lives of disabled people ar¢ truly Consider￿ of equal value and worth. We are now at the end of our 21-23 chan￿ng Lives Stratewc Plan. the associated prioritieslaims & objectives to meet them. Throughout tbis year the oulcomes and associated objective have been reviewed on a quarterlyl ¢Dd of year basis.. considering whai we ocbi¢ved from our WOTk ¥nd any ossociated risks therein. The main prioritie5 of our 21-23 Changing Lives Strategic Plan were". W¢ mad¢ a commitment that by 2023 we will: PRIORrrIES l) Have a strong understanding of the unmet J)eeds of disabled people and their f¥milie$ in Ealing and Hryll h2ve an oflering and brand that they like engage Mith, $0 increasing the number of people accessing our support to improve their lives. 2) H#ve redirected resources away from the current personal budget financed model of service provision, so assIsti￿g a greater number of disabled people and their families to gccess their rights and live as happily as independently gs possible. 3) Be a"modern and agile charity providing support relevant for disabled people and their families now and fDr tbe future. 4) Have diver$ifJed our income sources, so reducing our reliance on personal budget income to pay for core Costs and improving our financial stability and sustain¥bility. Page 3 Our aetivitieslservices to meet our purpose Adults and Children > Activities for aduits with a learning disabllity. wher¢ p¢opl¢ call mak¢ friends. develop skn.lls and hav¢ fun with a varied programm¢ of day, evening and weekend activities. > Children's activities. clubs, short respite holiday breaks. > We provide employment training, internships and & Back tnto Employment Servtce. Our employment services are mad¢ up of a number of different offers. Dare io Dr¢am is a service that provides training and suppon to understand the route to meaningful employinenl opportuniti¢s. Project Search provides internships in partnership with the local college, a new employer Ma￿lott Hotel. Employinent Support. supp)rts young people up to the age of 24 into paid employment. > Young Persons Travel Training Service in Hounslow. Participatioj) > We provide a service, which assists young people and adults to have a voice both locally and nationally. > W¢ support tbe Learning Disability Powet Group rnaking sure people's voices &e heard and the views of We do this by: > Making sure information is accessible. > Using lots of different ways to get infoTmaiioD Out there- like social media. > Raising awaTeness and campaigming on issues that matter to our customers. > Holding consultatsons on behalf of the local authority so that our CUS￿Mers can be involved in the decisions that affe¢t th¢Tn. > Working witb professionals so tbey understsnd the best way to support people with disabilities in our Advice > We are the lead organi5ation for a l O-partner advice consortium, Ealing Advice Service EAS. Thi5 seNice provides a local generalist and specialist advice seTvice that aims to provide the people of Ealing with access to high-quality advice. The seTvice brings together key advice agencies ITJ Ealing, who provide a joined-up service which offers residents support on housing, debL immigration. welfare benefits, employment, travel and transport concessioT]s, welfare payments. mentsl healih and community care.. legal representation and a specialist solicitOT or caseworker. where required. This grant was due to end in March 2023 and has been extended till Oct 2023 and we are currently rcapplying with a view lo include 2 new paTtDers. if we aTe succcssful. Page 4 Parent Support (a serwiee paid for fnbm reserves, ggreed till M4rch 2024) > We have allocated funding from our reserves to provide a new service especially for Parents. This service in the past year has ￿arted to esthblish itself in Ealing and is already in ￿t dernand. The seTvice is supporting parents and careTS whoTn have may)y challenging and diftering needs. The service supports them on an individual basis through each slage of the journey th¢ vision that thi5 service will make it easier for parents to find and engage with the right support when they need it. Achievements and Performance of activities The charity this yeaT is Still fac2ng many challenges, due to the aftermath of COVID 19. and other environmental factors that the so¢io1 care secior are facing. recruilment Issues. c05t of living crisi51 wage increases against a social care sector that caDnot afford an uplift for PTovidwl¢harity inwm¢ (￿ above under Ensuring our work delivers our aims). We have made good progr&ss ov¢[ th¢ last year and in¢om¢ has in¢r¢as¢d by £159k. We hav¢, whcrc possible, continued to cut costs. However, we have an end of year deficit of £89k albeit this is £144k better than we originally expected a5 spending from the Survive and Thrive designated fund has been phased over 3 longer period. This is what we said success would look like and our achievementslimpact in 22-23. We are pleased with many of the outcomes and those thai have been difficult to achieve are caTried foTward into the 23-24 action plan. The outcomes tbus far: Ive sald that we would do under Priority l this Y￿r. > Determine what Ealing Mencgp will be gnd provide *$ a charity beyond 2023, ¢onfinn decisions and actions including deciding on ngme and brand change and sign off at Board. > Engage fully and support the delivery of consultation activities for the Ealing Council S-year All-Age Le#rning Dis#bility Strategy Consultation proce55 ensuring our customers) people with learning disabilities and parents participate #nd hgve their $4).. > Influence decision makers for the 5-year All-Age Learning Disabilit), Strategy so that it delivers outcomes matching what people with learning disabilities and tkneir supporters say is needed. > Souree, commission and organise facilitated consultant support service to hold workshops Cor rin#nce/business modelling and strategy planningg to create and agree a succ￿510￿ proetss and vision Cor 2023 - 2028. This m#), involi'e considering our tore offering? financelfunding model #nd resources required. identity and USP. > Create strong promotional materi21 (market resèar¢hlsurvey out¢omeslfeedbaeklannual report etc) and Thvidely advertise our charity and all it offers disabled people and their families. What we said we would do under Priority 2 this year: > Establish, and trial a range of free at point of contact ch2ritable support products for disabled people and their families on a test and learn basis. > Allocate Su￿]£1ent staff resources, time and attention to reernitmenL service design #rtd promotional gctivities so that we can successfully establish, lxunch, and deliver the Parent Support My Time Servi¢es as new offerings. Page 5 > Agree and implement an agreed organisational marketing strategy to effettivety promole our charity to wider audience Jvho are not in receipt of statutory social ￿re provision. > Conslder, explore, and agree iyhat other 'free at po5nt of contact. productslsupport we can develop and offer to proi'tde more options that ejjable us to interact with the wider Community xudienee and create Change in society. Current ideas include training and engagement with employers, hub and spoke based activities, membership plarform, and informationladviee sessions with experts. > Our H&SC Grants- EAS Consortia and Saturday Youth Scheme- are due to be tendered in August 2023. Sufficient staff resource, time and attention will need to be allocated to completing the lender process to give every chance of success. fe said that we would do under Priority 3 thls year". > Operate OUT serThry¢es using a cost effectivelresource effjeient model of delivery- the rising costs of.living aeross all cost eentre$ is challenging our current price model. > Carry out a systemslproce551technology assessment to identify opportunities to streamline or improve busiDess operations e￿l¢lencY. > Carry out a digital review to identify hardw2re, softw*r4 ¢e¢hDology* skills seL social media, CRM and resource gaps - £20k expenditure from reserve5 ha$ been set aside to reduce longer term corelcentral operations costs Mle said that we Ivould do under Priority 4 this year: > Carry out a form, task, and funrtion assessment of the SiVIT and management tegm to identify gaps, overlap and opportunities for implementing further cost savings andlor enhanced operational delivery. > Implement further cost savings including faciliti&%, staffing #nd resourees based on •e¢ual financial position. > Source #nd invite gn external finance consultant to analyse ¥nd assess our turrent financial position and business model, then faeilitste a workshop ivith the Trustees to discuss and agree what action5 should be taken in response to risks and ¢0 Create a new ￿rategY/bUSinesS model for the SMT to implemenL > Identify and commst to allocating resoureeslstaffing to enable kns to implement opportunitie5 for securing incre2sed leve15 of unrestricted income to better align income v expeDdfttur< reduce the defitit budgeL improve our financial stability and suslainability. What we have aehieved under our 4 priorltles thls year via our sen4ces and I'or our Denetlelxries: 6,788 named iDdividuals accessed Ealing Mencap for support in 2022123. This nurnber was predomiT)antly due to 6,478 people seeking asslStan¢e from our Ealing Advi¢e Service, in)portantly 136 of these individuals ivere supported by our new Parent Support Service. Through our EAS advice consortia in 2022123 we brought an additional £3,692,940 million into r¢sidents' pockets by &ssisting people to a¢¢ess their welfare benefits rights and entitlements, over a million more pounds than 1&st year. The nwnber of people accessing our daily activities as expected h&s only incrwed slowly. Behveen our dky setrvices, My Town children's service, Hounslow TTxvel training and our employment Se￿ICeS we have worked with 310 individuals. Pag¢ 6 Job Start is set up to support 18-24-year-olds through the 12-week support package. W¢ have supported 12 through the Program and current]y 5 are in paid emplO￿ent and another 2 we supported to join supported internships. Part of the funding is also to support 14-18-year-olds in sch(iol in the nexl steps career sessions 23 yoimg people have completed these sessions and ihe feedb￿k from schools h&5 been very positive. We still run our ProJ¢ct Search smrice bui unfortunately after many years and again due to COVID 19 our 12- placed intsrnship program at the Hilton T5 Hotel at Heathrow is O￿l¢la]lY closed. We have beeD working with a new hotel,. Delts Hotels Marriott Windsor Slough. this is going well. albeit we are workizjg wÉth fewer interns and then gaining less paid Job outcomes as there are now many Proj¢ci S¢ar¢h progrojns aTound North Wesl London. We have worked with 9 young people this year and 5 (55 /0) ar¢ in paid employment. Adult and Children's Perforn]ance: we deliver¢d 9,014 sessions of face tr) face day opporttu)ities swporl lo 87 adulis and 183 sessRons of face to face support to c￿"ldren 54 C￿-1dreD. Our adults and children's s¢rvi¢es, are still struggling with gaining newlrelevant referrals and when funding is available via either new ¢ustom¢rs or grants being ible recruit ihe right staff has also impacte(Ilhindered our ability to growlchange whai we do. we have not b¢¢n able to gain the rnornentum we need in starting our new innovative children (and hopefully in the future adults) community based My Town service due to these reasons. Hounslow kndependeni Travel Training (HrrI)'. have throughout this year continued to travel train young people and have su¢¢essfully trained 22 young people illto indepcDdent travel after working with ovu a 147 individuals and their families. Plus we have now been infonnally told that the contract will be carried on for another year. which is positive news. Our PartÈcipation service has worked c105ely with the Partnership Boardl Ealin8 Council on the developmentlconsultalion and endorsement of Ealing Councils All Age t£aming Disability Strategy. The local Adult Partnership boaTd is now a dn.ving force of thi5 strategy and is continuing its WOTk in enabling the voice of our cusiomeTS and their families to come to the foTe in Ealing. The Ealing Advice Service (EAS) EAS perfomian¢e'. EAS have workedlsupported 6.478 individual clients this year. Our se￿i¢¢S remain higbly regarded by the people they serve. their families and other voluntary and independent organisats'ons. We are still PToactively tying to reach those that do not use our s¢rvi¢¢5. by triallin8lintroducing dtfferent on-line support informationloptions for both. Fundraising Activity Ealing Mencap carries oui fimdraising activitias in order to generate funds for the charity. Ealinu Mencap does not use professional fi]ndraisers or involve commercial panicipawTS. There have been no complaints about fundraising activity this y¢ar' the Charity b&$ due iegard io the Code of Fundtaising Practice in the UK All the charity's marketing activities are undertaken diTectly lo ensure that they are not unxeasonably persisteot or ir]trusiv¢. MaTketiDg materials Contain clear details of how to unsubscribe to future communications and care is tsken to limit the level of commuDicatsons being sent OUL Page 7 Financial Review The charity sustained a loss for the year of £89k after depTeciation of £45k was charged. The rnain reason for the deficit was that the board agreed to fund the £87k deficit on the Parents Support Service from reserves. The f￿anCIal p¢rfom)an¢e of each of our s¢rvi¢es is closely managed to ensure that they are financially viable on a continuing basis. Our current business model, staffing shortsges. different Cornmissioning and the shortage of appropriate grants continues to affect our ability to increase OUT income. It has been a challenging year however, the dI￿lcult decision that needed to be made arouttd finances and Structure are now proceeding and will be actioned as part of the next years Transformational action plan. We have reserves to support us to redefine who we aTe as a cbarity and we will continue lo ensure that risk management is an iniegral part of governance and planninglpToject management processes. Principal Risks and Uncert#inties FiA&fteial Éffe¢r ofsignifie4nl events We have been operating against a backdrop of over l O yeats of ￿sterity the Ealing Council's government grant has been cut by 64 0/0 based on a 2020 report by the [￿ndOn Councils organisation and Ealing Council is CUTTently overspent by £21 million. witb a predominant 'oversp¢nd', panicularly in social services. There is an expectation of cuts and changes in the way scrvices are commissioned. We have identified for some time that lo survive we need to change. Mlhilst we bave built uplgrown what has arguably been the largest personal budget fund¢d adult day activities PTovision in Ealing. a model that has seTved us well, generating Si￿1]rICant unrestricted and surplus income to pay for the core costs of the charity_ We Identified some hrne ago that tkn5 business model is Dow vulnerable and must be changed. It has taken this financ?al year with the support of an outside commissioned service Charity Aids Foundation (CAF) to move us fotivard. We have sttuggled to consider chang¢ mainly because we ar¢ still delivering seryices lo our legacy day opporfunity customers, whilst receiving reduced refe￿a]s. However, it has oow been agreed that ow ambitions as a charity need to cbange. we will continue to use some of the allocated surplus agreed last y¢ar to f¢-d¢v¢lop and rcfocus some aspects of our chantable work. We will be restructuring our semor management team as the cole fun¢tions of tb¢ organisation5 are currently operatins at pre pandemic levels and are not fit for purpose, plus they ar¢ operating at a si￿lficant fuwicial deficit. Whilsr we are concerned. we are equally optsmi5tsc that we will tbriv¢ and cbange the charity and we will continue to meet the needs of our beneficiaries. 9lld stskeholders and reacb those that we do not currently serve using our 23124 focused aciion plan as aid and driver. Reserves Poltcy And Going Concern Reserves are needed to bndge the gap betweeD tbe spending and receiving of income and to ￿Ver unplanned emergency repajrs and oiher expenditure. The tru￿e¢S consider that the ideal level of Eeserves Js ai 31 March 2023 would be the quivalent of 3 months budgeted costs being £458k and that these should be designaied from unrestricted reserves. Total unrestricted funds at 31 March 2023 were £762k. Of Ihcse, £169k was designated for the "Survive and Thrive" project to redevelop and refocus some fundamental stratcgic aspects of our chan"table work to be undertaken over the course of 2022 & 2023. After designating £458k as required by the reseNes policy, und¢sI￿ated unrestriaed reserves lolalled £165k. Page 8 Plans for Future Periods Our future strategic dire¢tion-. We are Continuing to PT02Ctively take action to fi]rther improve people's knowledgclp¢rception of our Charity, whilst wntinuing to provide the legacy support s¢rvi¢es we provid¢. We will now be proa¢tiv¢ly workn'ng towards changing what we what we do so we cao creat¢ further opportt￿itieS to Wotk with the yow)8¢r geyjeration. We n¢¢d to provide products, services and support that appeal to them and what are n¢¢ded for those that do not m¢et criteria for social C￿e. Ackn'eving our prioritte5 means we will be having a positive impact on the lives of more disabled people and their families by providing support that IS Televant to ihem. For the past two years we have focused on tbe inequalities of hea]th, wealth. opportunity and digital in¢lusion. Given feedback we have received and the cuyreni external fa¢tOTS- it is ¢le4r that a root and braDch reform of health and social care is desperately needed as the cutrent sysrem which governs and Ojnds th¢ way peopl¢ with a learning dtsability are supported is bjndatnentslly broken. Given our IJ"mited fU￿)cial resources, we have no ¢hoicc but to as5um¢ that th¢re will be DO SI￿11r1cant chang¢ in Dats"onal OT local poliry/dir¢ction ID thc foreseeable futtw¢ and as a cbarity we will need to transforni and shift our focus. Whilst we will cootinu¢ to focus on the five areas outlined above as part of our transforn)ational action plan 202312024. the main focus in the coming year will be the recruitment of a Dew fulltime CEO (the current Parttime CEO is retiring in December 2023) and the r¢sttucture of the senior management team to support EaliDg Mencap ￿ have a core support function that is suitablelfinancially viable to cany the charity forward so we can Continue to reduce inequality and disadvaotage, inDovate. provide support services dtrectly for disabled people and their families, use our infiuence. to challenge discrimination and CTeale a wideT ¢hange in society, which in turn will enable us to iknive ¥J)d survive. To ensure tbat our l-year action plan going forward is SUGCe55ful and the trdnsforniational ambitions we desire are achieved, withj'n a mucb smallerlchallenging finaTJGial envelope. we bave set ourselves clw prioritieslgoals outlined below and we will c4)nrinue io ¢ollate real data ro demoDstrate and evidence our impact. As a charity we have 8 strategi¢ drivers for our l year 2023-24 tran$formation¥l action pl#n." l. External factors 2. The priorities for our beneficiaries have Shifted 3. Unsustainable current busin￿ model- 4. Raise subslantial funds from noD-5tatutory sources money from third party sources including philanthropy? legacies and individual giving S. Engagement iTrith beneficiaries and supporters in particular making use of digital technologies. 6. We should continue, at least for the time being. to provide leggcy services to existing customers and to try to develop the M}, Tomm seri'ice. 7. Succession planning- The next few J'ears will be critical for the eharity as it seeks to modernise and change. 8. Transition How will M'e transition: Using our 2023-2024 Transition Action Plan our Priorities will be: Priority l - Str•tegy & Strvices > Wt Mqll realign our purpose. we need to have a clear sense of what th5s is #nd what impact ive want ¢0 achieve for disabled people and their families. Page 9 > We Hryll continue to strengthen our eommunity reach- ensuring thgt local people with disabilities their familie5 know about Ealing Menc*p and what we can do lor thejn is essential. Equally? ensuring eonsistent mes5a%in% lo a wider business and community audience will assist in fundrai5in%> SUPPOrt and partnerships ihat will benefit the ¢harity 9nd beneficiaries. Priority 2 - Legdership & Decision Making > D5ver5ify Board - need wider rep￿sentatiOn of all sectors of the community, Miih ranging viewslexperienceslski]Is. > Recruit new Chair as existin% Chair intends to step down and will need 8 replacemenl M4th 2ood handover > Reeruit FT CEO- current CEO has informed BoardlSMT of intentÉon to retire at ihe end of Dec 2023. > Re-or2anise SMTtTeam and any other posts if required > Stroni Decision Nlakin% - aceo¥nt4bility, authority, timeliness* and transparency of decision m4kill% is critical 9t this stage of the organis*tion$ developmellL. Priority 3 - Funding & Sustainability > Diversify Income > ReimxAlne v$e of Build5n% Assets PrRority 4 - People and Culture > Ensure stron2 communication across or2anisation to keep teams motivated, supported and deliverin at high performing leyel Priority- 5 > Review intended impact > Capture Impact The TnJst¢es confim that they have complied with their duty in respeci of public benefit guidance published by the ChaTity Commission. Reference and Administrative Details Charity NuTnber'. 10054061 Company Number.. 03039319 Registered Offi¢¢.' Enterprise Lodge, Sto¢kdov¢ Way. G￿n(ord. UB6 8TJ. Our advisers AuditOTS'. Wenn Towijsend. 5 Gosditch Street, Cirences￿. GL2 7AG. Bankers.. Barclays Bank plc, 177 Greenford Road. GTeenford. UB6 8QX. Solicitors.. Bird & LA)vibond. 3 Vine StteeL Uxbridge. Middlesex. UB8 IRP. Page 10 Diretcors ottd Trustees The directors of the charitable compaDy (the charity) are its tTUStees for th¢ puryos¢ of charity law. The ITUSiees and officers serving from l April 2022 to the date of approval of th¢se fjnancial statements wer¢ a5 follows.. G A Venus - Chair D Widdowson - Vice Chair T J R Willis J Mills R Samuel (appointed 19th May 2022) J Hirst (appointed 5th April 2023) Key mantsgemenipersoiihel L Dodd - Chief Executive and Secretary Structure, Governance and Management Governing Documenl Ealing Mencap is a company limited by guarantee governed by its MemoTandum and Articles of Association and is a regisiered charity with the Charity Commlssion. Ealing Mencap legally changed its 1995 Memorandum of Articles, th¢se were adopted in Ociober 2016. At this point any person who was a member of the Charity immediately prior to th¢ adoption of these Articles auiomatically ¢￿¢d to be a member of the Charity upon adoptiOYb of these Articles, iinless they were already a Trustee of the Challty. Appoinlmerti ofir¥sts As set out in ihe Articles of Association The Board consists of at least three not more than twelve appointed individuals_ Tn￿tteS shall be appointed by the Board. either to replace a Tn￿tte or as am additional Trnstee, for a terni of up to three years, any Trusiee ivill be eligible for re-appoiDtrnent if the Board thinks fil for a fijrther temj or lenns of up to thr¢e y¢aTS' Trnstees may serve a maximum of three ienns. Tyustse induction aftd training New trustees undergo an orientstton day to brief them on.. their legal obligations under charity and company law, the Charity Commission guidance on public benefiL and inforni tbem of the content of the Memorandum and Articles of Asso¢iation, tbe committee and dccision-maknDg processe5. rh¢ busincss plan and recent fman¢ial performance of the charity. During induction th¢y m¢¢t key cmployces and Oth￿ trust¢cs. Tn￿teeS are en¢owased to attend appropriate ext¢Tnal training eveDts where th¢s¢ will fa¢ilitat¢ th¢ uod¢Ttaking of their rol¢. Pagell OrganiFation The board of trustees administers the chaTity. The board meets quarterly and there are sub-committees covering operatiOTbS and finance and audit which meet quarterly in advance of the main t￿Stee$ meeting. A Chièf Executive is appointed by the tTUStees to manage the day-to-day operdtions of the charity. To facilitsie effective operations, the Chief Executive has delegated authority, within ternis of delegation approved by the tnjstees. for operational matt￿S including fmance. employment and relatrd actsvity. Relatedpartiu and CO•operation with other Organ￿4111￿￿S Non¢ of our tntstees r￿CIv¢ remuneraiion or other benefit from their work with the charity. Any connection bettveen a tnJst¢e or senior manager of the Charity with a supplier or employee must bc disclosed to the full board of trustees in the same way as any other contracmal r¢lationship with a relxted pty. Paypolicyforsertior st8ff The board of directors, is the Trustee Board. The Senior Management Team (SMT), which includes the Chief Executive, are the key management personnel of the charity in charge of directing and controlling, Tunning and operats'ng the chaTity on a day to day basis. All director5 give of their time freely and no director received remuneratson in the year. Details of directOTS' expenses and related paty transa¢tions ar¢ disclosed in note I I to the accounts. The pay of th¢ s¢nioT stsff is reviewed annually and the directors benchmark against pay levels in ch￿ltieS of a similar size run on a volut)tary basis. Risk monagemenl The tjustees have a risk management strategy which c4)mprises'. quarterly 2nd annual review of the PTincipal risks and uncertainties that the charity face. - the establishment of poli¢i¢s, systems and proceduTes to rnltiga￿ those risks identified in the annual review. and - the implementation of procedures desigt)ed to rninimise or manage any potential impact on the charity shouid those risks materialise. Trustees, responsibilities in relation to the financial statements The tnjstees (who are also tbe directors of Ealing Mencap for the purposes of company law) are responsible for preparing the Report of the Trustees and financial statements in ac¢oTdance with applicable law and United Kingdom Accountillg Standards Iuniied Kingdom Generally A¢cepted Accounting Practice). Company law requires the trustees to prepare financial statements for each year which give a true and fair view of the stsl¢ of affairs of the charitable company and of the incoming resources and application of resources, including the income and expendiiure, of the charitable company for that period. In preparing the financial stsiemenrs, tbe trnstees aTe required to: Page 12 select suiiable accounting policies and then apply them consisiently- - observe the methods and principles in the Charities SORP FRSI 02. make judgements and estimates ihal are reasonable and prudeDt.' - state wheiher applicable UK accounting standards have been followed, subject to any mateTial departures disclosed and explained in the financial statemenls,. - prepare the financial $th￿MentS on the going concern basis unless it is inappTopriate to presume that the chaTity will continue in business. The trnstees are responsible for keeping proper ac¢ouniin£ records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Aci 2006. They are also responsiTr)le for safeguarding the assets of the chariiable Gompany and hence for taking reasonable steps for the prevention and detection of fraud and other IJTegularities. The trustees are Tesponsible for tbe maintenance and integnty of the corpordte and financial inforniatton included on ihe Ch￿Itable company's website. Legislation in the United Kingdom governing the prepaTation and dissemination of fjnancial stalemenls may differ from legislation in other Jurisdictions. Statement as to disclosure to our auditors In so far as the tntsle¢s are #wa￿. . there is no relevant audit inforn]ation of which the charitable company's auditor is unaware. and . the tn￿teeS have taken all steps that they oughi to have taken to make themselves aware of any relevant audit infomiaiion and to establish thai ihe auditOT is aware of that inforn)alioD. The financial ststements have been prepared in ac¢ord8nce with the accounting polici¢s set out in notes to the accounts and comply with the cbarity's governing document, the Cbarblles Aci 2011 and Accounting and Reporting by Charities.. Statemettt of Recommended Practsce applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable ID the UK and Republic of treland published on 16 July 2014. This Teport has been prepared in accordance with the provisions applicable to wmpanies entitled to the small compani¢s cx¢rllption. This report was approv¢d by the Board of TruSt￿S on I IÉF signed on its behalf. by". G Venus (Chair) Page 13 EALING MENCAP (A Company Limited by Guarantee) REPORT OF THE INDEPENDENT AUDrroRS TO THE TRUSTEES OF EALING MENCAP W¢ have audited the financial statements of Ealing Mencap {the'¢haritable company) for the year eDded 31 MaTch 2023 which comprise the Statement of Financial Activities. Balance Sheet and Staiemenl of Cash Flows and TTrOtes to the financial statements including a sumn)ary of significant accouoting policies. The financial reporting framework that has been applied in their preparaiioy) is applicable law.and United Kingdom Accounting Standards including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of tTelarid' (United Kingdorn Generally Accepted Accounting Prdctsce). Opinion on fiD¥ncial $tstements In our opinion the financial ststements: - give a tTue and fatr view of the state of the charitsble company's affairs as at 3 1st March 2023 and of its incoming resources and application of reseryes. including its income and expenditure, for the period then ended. - have been properly prepaTed in acwrdance with Charities SORP (FRSI 02)," and - have been prepared tn accordance with the requirements of the Companies Act 2006. Ba515 for opinion .We conducted our audit in accordance with Jniernational StandaTds on Auditing (UK) asAs (UK)) and applicable law. Our responsibilities under those standards are furth¢T descTibed in the Auditovs TesponsibilTti¢S for the audit of ibe financial stalements section of our report. We aTe independent of the charitsble company in accordance with the ethica] requirernents that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled OUT other ethical responsibilities in accordance with these requirements. We believe that the audil evidence we bav¢ obthined is sufficient and appropriate ￿ provide a basis for our opinion. Conclusions re19ting to going eoncern We have nothing to report in respect of th¢ following matteTS in relation to which the ISA'S (UK) require us to report to you wbere.. - the truslees, use of the going concern basAS of accounting ID th¢ preparaiion of the [￿ancial statements is not approprial¢' or - the truste¢s bave not dis¢losed in th¢ fwan¢ial stsiemeDts any identsfied m3teTial uncertainties that may cast significant doubt about the charitsble company's ability to ¢ontinue to adopt the going conLern b)sis of accounting for a period of at least 12 months from tbe dat when the [￿ancIal statements are authorised for issue. Other information The trustees are responsible for the other infonnation. The other informatson comprises the infom)atioTt included in the twsiees, annual report, other than the financial siatements and ow auditovs report thereon. Our opinion on the financial stateFnents does noi cover the otheT information and, excepi to the exient oiheTwise explicitly stated in our report. we do not express any foTm of assurdnce Conclusion thereon. Page 14 In connection with our audii of the financial ￿a￿nents, our responsibility is to read the other infornialion and, in doing so consideT whether the other infom)ation is materially inconsistent with ihe financial staternents or our knowledge obtained in the audit or othenvise appears to be matetially mTSSlated. If we identify such material inconsistencies or apparent material misstsiements. we are required to deterniine whether theTe is a ma*rial misstatement in the financial siatements OT a maieri8l misstatement of the other inforn)ation. If based on the work we have perfonned, we conclude thai there is a maierial misslatement of this other inforn)ation, we are required lo report tbat fact. We have nothing io report in this regard. Matters on which we are required to report by exception We have nothing io report in rwect of the following m¥tters in relation to which the Charities (Accounts and RepoTts) Regulaiions 2008 require us to Teport ￿ you if, in ow opinion= - the informaiion giv¢n in the financial ststem¢nts is inconsisleTII in ony ma¢rial resp¢¢t with the trustees, report; or - the Ch￿itable company has noi kepl appropriate accounting records" or - the financial statements are noi ill ogreernent with ihe a￿Unting re￿[d$ and r¢tthrnS' or we have not received all the infomiaiion and explanations we require for our audit. Responsibilities of trustees As explained more fully in the tr￿tee5, responsibilities statement set out on page I I, tbe trustees (who are also directors of the charitable ¢ompJny for the purposes of company law) are responsible for the preparation of the fjnancial statemellts and for being satisfied thai they give a ttue and fair view, and for such internal control as the tru51ees detennine is necessary to enable the prepardtion of financial ststements that are free from material misstatemeDt. whether due to fraud or error. tn preparing the fu)an¢ial stsiements. the trustees are respoTtsible foi assessing the charitable companys ability to continue as a going concern, disclosing. as applicable. matteTs relating to going concern and using the going concern basis of accounting unless the ttustees either intend to liquidate the charitable company or to c¢ase opeTatlODS, or have no Tealistic alternative but to do so. Auditor's responsibilities for the 9udit or rinantial ststements We have been appoinied as auditor under section 144 of the Charities Aci 2011 and report ID ac¢ordance with regulations made under section 154 of that Act. Our obje¢tives are to obtain reasonable assurance about whether the fmancial statements as a whole are free frotn matenal misStat￿n¢￿t. wheiher due to fraud OT error: and to Issue an auditor's report that iDclude5 our opinion. Reasonable assurance is a high level of a55urance. bul it 15 not a guarantee that an audit conducted in accoTdance with ISAS IUK) will always delccl a materiai misstatement when it exists. Misstaienients can arisc from fraud OT error and are ¢onsidercd material if. individually or in the aggregate, they could reasonably be expect¢d to influence the economic decisiolls of users taken on the basis of these f￿ancial statements. As part of an audit in accordance wiib ISAS IUK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also". Page 15 Identify and assess the risks of maierial misstatement of the financial statemeDts. whether due to fraud or t￿0T, design and perfomi audit procedures responsive to those Tisks, and obtsin audil evidence thal is sufficient and appropriate to provide a b&sis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from e￿0[ as fraud may involve coll￿10n , forgery, intentional omissions, misrepTesentations. or the override of internal control. Obtain an understanding of internal control relevant to the audit in OTder to design audit procedures that are appropriate in the cir¢umstan¢es. but not lor the purpose of expressing an opinion on th¢ eff¢cts"veness of the ch￿itable company's iTJt¢rnal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimales.and related disclosures made by the tTUStees. - Conclude on tbe appropriateness of th¢ irustees, use of the going CODcun basis of accounting and, based on the audit ¢vid¢nc¢ obtained, whether a rnatcrial UDf¢rtainty exists r¢lat￿ to ¢vents or WT)dition5 that may cast significant doubl on the charitable ¢ompany's ability to Continue as a going ¢oo¢eru. If we Conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up lo the date of our auditorfs report. However. future events or conditions may cause the charitable company to cease to continue as a going concern. - Evaluate the overall presentation, structur¢ and content of the fmanc&al ststements, including the disclosures, and whether the financial staiements represent the underlymg transactions and events in a manner that achieiies fair presentatiOD. We communic￿¢ wilh those cbarged with governance tegarding. among oiher matters, the planned scope and . timing of th¢ audit and significant audii r￿dIng$. including any significani deficiencies ID internal control that we identify during our audit. Use of report ThTS reporf is made solely to the charitable company's trustees, as a body, in accordance with Tegulations made under section 154 of the Charities Act 201 l.. Our audit WO￿ has been undertaken so that we mighi state to the charitable COTnpany'$ tTUSlees those matters we are require4J to Sta￿ to them in an auditor's report and for no other purpose. To the fullest extent peTmitted by law. we do Tjot accept or assurne responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit worK for this TeFrf)ry or for the opinions we hav¢ forTn¢d. Wenn Townsend Chartered Accountants Statutory Auditor Date: wet￿ Townsend is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. Page 16 EALLN'G MENCAP (A Company Limited by Guarantee) Statement of Financial Affairs (incorporating the Intome ¥nd Expenditure AcCo￿nt) Year Ended 31st March 2023 Unrestricted Funds Restricted Total funds Total funds Funds 2023 2022 Note Income Donations and legacies Chariiable activities Investments Tolal ineome 9.573 862,237 3,210 875 020 9,573 1,725,440 4,153 1739 166 7,332 1,567,655 4,070 1579 057 863,203 943 864 146 Expenditure Charitable activities To¢*1 expenditure (974,174) (844,121) (1,818,295) (1,641,036) 974 174 1818 295 164103 Realised gains / (losses) on illvesthien Unrealised gains / (losses) on investments (9.459) (9,459) (346) Net income l (expenditure) (108,613) 20,025 (88,588) (62,325) Transfers 99,885 (99,885) Other recognised gains l Oosses): Gains / (losses) on r¢valuation of fixed assets Net movement in funds (8,728) {79.860) (88,588 (62J25) Reconciliation of fund5 Total funds brougbt forward Totsl funds carried forward 770,998 762 270 1.152,060 1072 200 1,923.058 1834 470 1.985,383 1923 058 Th¢ ststement of finamcial activities includes all gaiDS and losses recogDJsed ID the year. All income and expenditur¢ derive from contsnuing aclivities. The notes on pages 21 to 34 forn] an integral part of these financiaI ststem¢nts. Page 17 EALINC MENCAP (A Company Limited by Guarantee) Statement of Financial Aff*irs - Previous Year (intorporating the Income and Expenditure Aceount) Year Ended 31st March 2022 Unrestricted Restricted Totsl funds Fund5 2022 Note Funds Income Donations and legacies Charitable activities I1]v￿tMentS Total incorne 7.332 742,863 4,070 7S4 265 7,332 1.567,655 4,070 1 $79 057 824,792 824 792 Expenditure Charitable activities Total expenditure (819,188) 819 188 (821,848) (1,641,036) 821848 1641036 Realised gains / (loss¢s) on inv¢stm¢nts Unrealised gains l (losses) on inv¢stme])ts (346) (346) Net income l (expenditure) (6S,269) 2944 (62,325) Transfers 33,807 {33.807) Other recognised gains l Oosses): Gains / (losses) on revaluation of fixed assets Net.movemen¢ In funds (31,462) (30,863) 62,325) Recon¢iliation of funds Total funds brought forward Total funds earried forw*Td 802.460 770 998 1,182.923 1 152060 1,985,383 1923 058 The staiement of fjnatjcial activities includes all 8ains and losses recogwsed in the year. All income and expendiruie derive from contsnuing activities. The notes on pages 21 to 34 forni an integral part of these financial statements. Page 18 EALLNG MENCAP {A Company Limited by Guarantee) COMPANY NUMBER: 03039319 Balance Sheet Year Ended 31st March 2023 Note 2023 2022 Fixed assets Tangible assets Investments Total fixed assets 15 16 1,159,188 213,778 1.372,966 ,204,486 223,238 1,427,724 Current assets Debtors Cash at bank Total current a55els 17 58.056 890,998 949,054 18,196 782,710 900,906 Liabilities Creditors falling due within one year Net current assets 18 (303,277) 645,777 (217,133) 683,773 Total assets less eurrent liabililies 2.018,743 2,111,497 Creditors falling due affrr more than one year Net a55els 20 (184,273) 1,834,470 (188,439) 1,923,058 The funds of the ¢h¥rity: R¢stric￿d income fi￿d$ Restricted income funds.. Revaluation Reserve Unrestricted fimds Total charity fuuds 21 592.624 479,576 762,270 1,834,470 672.484 479,576 770,998 1,923,058 For the year ended 31 March 2023 tbe compADy was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to srnall companies but as this company is 8 chan"ty, it is subject to audit under the Charities Act 2011. Directors, responsibilities.. - The members have not required ihe company to obtsin an audii of its accounts for the year in question in accoTdan¢e with section 476- - The directors acknowledge their r¢sponsibilities for complying with the rcquirements of the Act with respect to accountittE records alld the prepaniion of ac¢ounts. These accounts bave been prepared in accordance with the provisions applicable to companies subject to the small compani¢s' regime and in a¢cordance with FRS 102 aDd the Charities SORP (FRS 102). These financial statements set out on pas￿ 17 to 33 We￿ approved and auihorised foT issue by the n a Isb 2023 and sigDed on th¢iT behalf by.. S. CHAIR D WIDDOWSON, VJCE CHAIR The notes on pages 21 to 34 forni an integrdl part of these financial statements. Page 19 EALING MENCAP (A Company Limited bv Guarantee) Statement of Cash Flows 2$ at 31st March 2023 2023 2022 Cash floivs from operating activities Nel ¢ash provided by (used in) operdtmg activities Notc (a) 111,617 111,617 (27,995) (27,995) Cash flows from investing gctivities: Dividends and interest from investments Pwchase of proptty.. plant and cquiprnent Net cash provided by (used in) investing aCti￿tieS 4,153 4.070 4,153 4,070 C2sh flows from financing activities: Repayments of boTTowing Net cash provided by (used In) tlnaneing activities (7.482) (7,482) {10,851) {10,851) Change in c¥sh & cash equivalertts in the reporting period 108,288 (34,776) Cash and caslL equivalents at start of the reporting period Cash and cash equivalents at end of the reporting period 782,710 890,998 817.486 782,710 Note (a) N¢1 movement in funds Depreciation Dividends and interest from investsnents {Gains)liosses in value of Investments Gains l (lossf s) on revaluAtion of fixed assds Loan repayments Decrease /{in¢re8se) in d¢btOTS Increase / (decrease) in ¢r¢ditors {88,588) 45,298 (4,153) 9,459 (62,325) 48.851 (4.070) 346 7,482 60,140 81,979 10,851 (26,35 1) 4.703 Net cash iuflow from operdting acttvitses 111,617 {27,995) The J)ot¢s on pag¢s 21 to 34 forni an integral part of these financial ststem¢nts. Page 20 EALING NIENCAP (A Company Limited by Gu4r*ntee) Notes to the Financial Statements for the year ended 31st March 2023 l. Accounting Policles The principal accounting policies adopted judgements and key sources of estimaiion uncertainty in the preparation of the financial ststemenls as follows.. Basis of prep2r4tio The charity constiMtes a public benefit entity as defined by FRS 102. The financial slatements have been prepared in accordance witb A￿OUntIng and Reporting by Charities.. St3tem¢nt of Re¢omtnended Practice applicable to charitkes preparing their a¢counts in a¢cordanc¢ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Fitiancial Rcporting Standard applicable in the United Kmgdom and Republic of Ireland (FRS 102), the Charities Act 201 I, the Companies Act 2006 and UK Generdlly Accepted Prdctice as it applies from l JaJ)uary 2015. Ealing Mencap meets the definitioD of a publi¢ benefit entity w)der FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otheNise stated in Ihe relevant accounting policy note. Income Membership subs¢ripiions. donations and fiujd raisiDg income are accounted for when received by the company. Othei income is accounted for on an accrnals basis as far is pnJdeDt to do so. Income included any in¢ome tax r¢coverable thereon. It is the chan"ty's policy to show income before deduction of expenses except where otherwise statrd. Government Grants Grants income was received from the London Borougbs of Ealing and Hounslow and Central Government. The surns are detailed in note 13. Interest recelvable Interest on funds held on deposit is included when receivable and the amount Can be measured reliably by ihe charity. this is norn)ally uiion notification of tbe inieiest paid or payable by the Bank. Page 21 EALING MENCAP (A Compan), Limited by Guarantee) Notes to the Financial Statements for the year ended 31st March 2023 FuJ)d accounting Unrestricted funds are available to spend On activities ihat fi￿[her any of the pull)oses of chariry. Designated funds are unrestrÈcted funds of the charity which the tsust¢es have decided at their discretion to set aside to us¢ for a specific puq)ose. Restrict￿ fimds ar¢ donations which the donoi has specified are to be solely used for particular areas of the chariWs work or for specific proj¢¢ts. Expenditure and irrecoveroble VAT Expenditure is r¢¢ogaised onc¢ there is a legal or conslTUCtive obligation to make a payment to a tbird party. it is probable that settlement will be required and the arnount of the obligation can be measured reliably. Expendittjre is classified under the following a¢tivity headiDgs". - Expendilure on charitable activities includes the costs of delivving seNices & other aaivities together iith their associated support Costs T￿￿0Verabl¢ VAT is charged as a c05t against the activity for which the expendilure was in¢urred. Allocation of Support Costs Support costs are thos¢ fimctions thai assist ihe work of ihe charity but do not directly undertake charitable a¢tiviti¢s. Support cosis include back 0￿1¢¢ costs. finance. personnel. payroll and governance Costs W￿"Ch support the charity's a¢tivits'¢s. These costs have b¢eD allocated to expend]"tUTe on charitable activitics. The bases on which support costs have been allocated are set out in note 9. Oper*ting leases The charity classifies the le&s¢ of printing and otheT equipment as operdting leases,. the title to th¢ equipment remains with the l¢ssor aDd ibe equipTn¢nl is replaced before the end of its economi¢ lif¢. Rental charges are charged on a straight line basis over the tetm of thc leasc. Tangible fixed assets Depreciation is proyided at the following ar￿￿al rdtes in order to Wri￿ off ea¢h asset over ILS est.rmalcd useful life". - Freebold buildings.. Depreciated over 30 ye3Js, Straighi line metbod - Motor vehi¢les'. 25Q/o on cosl - Office ¢quipmeDt.. 250/0 on cost Freehold Land and Buildings aTe included in the balance sheet at fair value and are professtonally revalued every thr¢c ycars. Any change in fair value is recognised in the stsi¢m¢nl of financial activities. Page 22 EAL114G MENCAP (A Compgny Limited by GU*r3￿tee) Notes to the Financial Statements for the year ended 31st March 2023 Debtors Trade and other debtors are reco￿lSed at the settlement amouttt due after any trdde discount offered. Prepayments ar¢ valued ai the amount prepaid net of any trade discounts thje. Cash at bank and in hand Cash at bank a7Jd cash in hand inC￿deS cash and sbort ierni highly liquid investments wilh a sbort maturity of three months or less from the date of aquisition or opening of the deposit or similar account. Creditor$ Ind provisions Creditors and provisions are reCO￿lsed where the chaTity has a present obligation resulting from a past cvent that will probably result in the transfer of funds to a th￿d party and tbe amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are nornially wgnised at their settlement amount after allowing for any trade discounis du¢. Financial instruments The ¢harity only ha5 financial assets and f￿ancial liabib.ties ot a kn.nd that qualify as basic f￿anCIal instruments. Basi¢ financial instruments inits'ally re￿gniSed at transaciion value and subsequently m¢asured at their settlernent value with the ¢xcq)tion olbank loaDs which are subsequcntly measured at amortis¢d cost Using the ¢ff¢ctive interest method. Pensions Employees are automatically enrolled ir)to a defll)ed contributions pevjsions s¢hcmc operated by B&CE Peoples Pcnsion. Employees can subsequently opt out. Employ¢¢s joining tbe scheme. contract directly with tbe pension company. The charity makes a matching contributlOD of 30/0 of qualifying eamings io this pension scheme and acts as agent in collectitig and paying over employee pension ¢ontribulions. The contributions mad¢ foi ¢b¢ accounting period ar¢ ireated as att expens¢ and were £18.489 (2022.. £19.537). Listed Investments Investments aTe a fom of basic financial instnllneJ)t and are initially recognised at their transaction value and subsequently measured at their fair values &s at the ba]ance sheet da* using the closing quoted Mark￿ price. Any change in fair valu¢ will be recognised in the stst¢ment of financial a¢tivities. Page 23 EALING MENCAP (A Company Limited by Guarantee) Notes to the Financial Statements for the y￿r ended 31st March 2023 2. Legal status of the charity EaliDg Mencap is a charitable ￿MpanY incorporated in England under the Companies Act 2006. In the event of the charity being wound up. the liability in respect of the guaranlee is limited to £1 per member of the charity. The address of the T¢gistered office 15 given in the charity iDforn]ation on page 9 of th¢se financial statements. The nature of the ¢harity'S operatsolls and principal activities are to promote care, treatment aDd education for c￿"ldren and adults wilh a learniDg disability and to secure provisions and seryices commensuraie with their needs. 3. Financial Performanee of the Charity The StsteTnenl of Financial Activities states the financial perfomi8n¢e of the charity. 4. Income from donations and legacies 2023 2022 General donations Legacies 9.573 7.332 9,573 7,332 £4,299 was donated by the Ealing Housing Association on closure of its bank account for the purpose of providing bousing advice. All income other from donations and legacies was unrestricted (2022 - all unrestrlcted). 5. Income from charitable a¢tivities 2023 2022 Grants receivable - Restricted - Unrestricted 857,864 171,855 1,029,719 i.iio 694.61 1.725,440 823,979 168,293 992,272 813 Individual budgets and direct payments (restr]"cted) IrLdividual budgets and direct payments (unrestrictrd) 574,570 1,567,655 6. Investment ittcome 2023 2022 Intuest received Dividends 34 4,119 4,153 4,067 4,070 Page 24 EALING MENCAP (A Company Limited b}, Guarantee) Notes to the Financial Statements for the year ended 31st March 2023 7. Anal}'sis of expenditure on eharitsble *divities Access & adYocg¢y services Children Real Me, aDd Young Gateway & People other Total Note Stsffing aud related costs Projects, external costs Other direct activity costs Premis¢s Costs inc. d¢pr¢ciation Rent & venue hire Support & governance 145,253 426.292 89,483 108,017 545.218 798,488 426,292 196,957 63,056 69.315 264,187 21.525 1,200 600 26,619 85,949 61.856 37,500 214,313 31.215 23,255 715.498 157.961 944.836 1.818,295 Analysis between restn.cted and unr¢strict¢d ¢xpenditr: Restricted Unrestricted 710,964 4,534 715,498 34.667 123.294 157.961 98.490 846,346 944.836 844,121 974,174 1.818,295 Expendityre on charitable activities was £1,827.670 (2022-. £1,641,036) of which £983,549 was unrestricted (2022.. £819,188) and £844.121 was restricied (2022: £821.848)- 8. Summary anilysis of expehditure and related income for charitable activities This tsble shows the cosi of the th￿ main charitabl¢ activities and the sources of income directly to support those a¢iivities. Access & advocacy servic Children Real M< and Young Gateway & People oth¢r Tot¥1 Costs Personal budgets and direcl payments Direct grant support (715.498) (157.961) (944.836) (1,818,295) 2,486 1.085 690.754 694.325 738,830 73.981 218.304 1,031.115 Nei intome 25,818 82,895 (35,778 {92,855) Page 25 EALING NIENCAP {A Company Limited by Guaratttee) Notes to the Financial Ststements for the year ended 31st Mareh 2023 9, Analy$i$ of governance and support costs Tbe charity initially identifies the costs of its support functions. It then identifLes those costs which relate to governance. Having identified its govcrnance costs, the remaitLing support Costs tog¢th¢r with the governance cos15 are apporlioned b¢tw¢¢n the rbaritabl¢ a¢tiviti¢s und¢ttsken (see not 7) in the year. Refer to the iable below for the basis for apportionment and the analysis of support and governance costs. General Support Governance Tot91 Basis of Apportionment Solary, wages & related cosis 147.058 147.058 Apportioned on an income basis 32.596 except where limited by grant 35,000 conditions or where specific cost 6,000 allocations identified. Get)eral office ¢osts 32.596 Premise5 costs inc. depreciation 35.000 Audit fees & annual report Finan¢¢, HR & Consu]tancy 43,533 43,533 Legal 258,187 6,000 264,187 Page 26 EALING MENCAP (A Company Limited by Guarantee) Notss to the Financial Statements for the year ended 31st March 2023 10. Net incomel(expeDditure) for the year This 15 Stated after charging: 2023 2022 Operating l¢as¢s Depreciation ortgage interest payable Audit fees 46.595 45,298 10,056 6.000 52,194 48.851 6.475 5.400 107.949 12,920 11. Analysis of st#ff costs, trustee remuneration and upens¢4 2nd the cost of key management p¢rsonnel 2023 2022 Salaries and ￿TageS Social secuTSty costs Pension costs 824,348 68.677 18,489 757,682 60.714 16.349 911,514 834.745 No employees had employee benefits in excess of £60.000 (2022= nil)- Pension cosls are allocated to activities in proportion to the r¢lat¢d staffing costs incurred. The charity tjvstees were not paid or received any other benefits from employment with the charity in the year (2022.. £nil) neither Miere they reimbursed expenses during the year {2022". £nil). No charity tN5tee received payment for professional or other services supplied to the charity (2022-. £J]il). The key management personnel of the charity compris¢ the iTU5tees and the Chief Exccutiiie Officer. The total employee benefits (Including employer pension contribution but excluding employer national insurance) of the key management personnel of the cFLarity were £46,428 (2022.. £47:440). Page 27 EALING MENCAP (A Company Limited by Guarantee) Notes to the Financial Statements for the year ended 31st March 2023 12. Staff numbers The aveTage monthly bead count was 36 staff (2022.. 39 staff) and the average monthly number of full- tirne equivalent ernployees (including c&sual and part-time staffj during the year were as follows: 2023 Number 2022 Number Community care services Management and administration 24 21 29 27 13. Government grants 2023 2022 Lo¢al authori nts LB Ealing- A¢¢ess, advocacy, clll"Idren's activilies LB Hounslow - Travel training 736,263 124.313 676.074 129.873 Central Government HMRC Job Retention Scheme Grant Eduction and Sk]"Ils Funding Agency GTealer London Authority 2.761 .500 13.591 1.500 49,508 14. Corporate taxation The charity is exempt from tax OD income and gains falling u'ithin ￿cl)nn 47R nf the C.oryoralion Tax Act 2010 to the exlcnt that these are applied to its charilabl¢ obJ¢¢ts. Page 28 EALING IIIENCAP {A Compan}, Limited by Guarantee) Notes to the Financial Statement5 for the year ended 31st March 2023 15. Tangible fixed assets Freehold Land Freehold Office & Buildings Other (Property) Equipment Total Cost Balance as at 1.4.22 Additions Disposals Revaluation Balance as at 31.3.23 136,998 1,113,003 97,646 1,347.647 136,998 .113.003 97.646 ,347.647 Depreciation Balance as at 1.4.22 Charged for year Disposals Revaluation Bilanc¢ as at 31.3.23 (45.515) (45,298) (97.646) (143,161) (45.298) {90.813) (97,646) (188,459) Net book value 31.3.23 136,998 1,022,190 1,159,188 Nei book volue 31.3.22 136,998 .067.488 ,204,486 The freehold land and buildings were revalued by Martin & Pole Chartered Surv¢yoTS in Julle 2022. Tbe Historical Cost of frc¢hold land and buildiDgs was £1.050.000 at 31 st Marcb 2023. 16. Investments 2023 2022 Market value as at l April Additions Disposals Net investment gains / Oosses) Market value a5 at 3 1st Mar¢b 223,237 223,583 (9,459) 213.778 (346} 223,237 Historical cost as at 3 1st March 179,272 179,272 UK Fixed tnt¢rest UK Equits"es tllvestment Tn￿ts Overseas Equiiies 64.163 73,559 45,946 30,110 213,778 65,140 75,757 51,083 31,257 223,237 Page 29 EALING MENCAP (A Company Limited by Guarantee) Notes to the Finaneial Statements for the year ended 31st March 2023 17. Debtors 2023 2022 Amounts falling due after one year". Lease deposit 18.750 18,750 Amounts falbng due witbin one year.. Trade debtor5 Other debtors Prepayments 14,730 5.000 19.576 58,056 59.228 10.625 29,593 118.196 18. Creditors Amounts falling due within QDe year 2023 2022 Tax and social security A¢cruals aT)d deferred income Trade and otber Creditors LoarA due within one year 16.568 138,089 141,288 7,332 303,277 17,572 63,504 109,855 9.473 200,404 19. Deferred income Deferred in¢om¢ comprises amounLS receiv￿ from grant and fijnding bodies thai r¢laie to income awarded rt5alin8 to the following fu)ancial year. 2023 2022 Balanc¢ at 1st April Amount rel¢&s¢d to income earned from ¢kntsbl¢ activilies 68,284 (68.284) 124.203 124,203 53.584 (53.584) 68,284 68,284 Amoullt def¢Thed ill y Balance at 31st Marcb 20. Creditors: amounts falling due after more than one year The mortgage of £191,605 is secured on Enlerprise Lodge. Stockdove Way. The imtial mortgage of £279.000 is repayable ovcr 25 years. The interest rate 15 3 /0 above base rdte. Inters￿ payable for the year was £10,056 (2022.. £6,475)- Th¢ Tegistered charge is dated 27th July 2012 2023 2022 Mortgage balance due after more thar one year (see note 23) 184,273 188,439 Page 30 EALINC IIIENCAP (A Company Limited by Guarantee) Notes ttb the Financial Ststements for the year ended 31st March 2023 21. Analysis of eharitsble funds Balance Incoming 1.4.22 Resources and Designation Resources Expended Transfers "Ini'estmeDt ¢olfrom gainlooss) restricted fu*ds Funds 31.3.23 Analysis of movements ID unrestricted funds: General timd 554,098 417,020 Designated (reserv￿} 458,000 DeSI￿ated (Survive & Thrive) <864.465) 37.816 (9.459) 135,010 458,000 169,260 216.900 (109,709) 62.069 770,998 875.020 (974,174) 99,885 (9,459) 762,270 Analysis OC movements in restricted funds: Freehold 18J)dlproperty 724,910 Revaluation reserve 479,576 Mortgage {199,087) Enterprise Lodge 1,005,399 ENte￿rise Lodge- development Fund EAS Children in Need Participation City Bridge Ttust Project Search Advice Reslience Fund ctN Employability Children & Young People's Fund Satt]rday Youih Club COMF Jan-Jun'22 GLA- Advi¢e In Communiry Settings grant (45,298) 679.612 479,576 (191,605) 967,583 7,482 (37,816) 3.618 943 542.206 241 49,000 27.038 72,379 4,229 20,112 4,561 (542,206) {11.830) (41.657) (23.895) (72.492) (2,795) (25.998) 13.452 6,611 4.557 1,819 25,338 5,886 62.069 1,863 13,954 7,700 1,706 26,772 (62,069) 13,662 1,341 7,886 31,695 10,707 49.508 (22.836) (9.983) (54.881) 22,521 2,065 2,513 (R) LBE I NW London ICB Mental Health FY23 LBE Winter Crisis Dec22- May23 Household Support Fwid Sports Engiand 29.435 (26,936) 2,499 26,653 (8.612) 18,041 173 249 1,152,060 173 249 1,072.200 864.146 (844.121) (99,885 Page 31 EALING MENCAP (A Company Limited by Guarantee) Notes to the FiD2nci21 Statements for the year ended 31st March 2023 21. Analysis of charitable funds (continued) Name ofrefirictedfujryd Enterprise Lodg¢ D￿¢T1p[lOn. nathre andpupp0S￿ ofthefup￿.. Represents the net value of the freehold land & building after deductinE the ouistanding mongage and depreciatlon. The putyose of the fund is to ensure Ealing Mencap maintains a secure physical centre for its chan"table operations. The original grant fundtng and donations were conditional on them being used to fund the purchase of land and constructlOD of a building. Enterprise Lodge Development Fund To provide fimding as required lor developments (e.g. new specialist faciliti¢s) ai Ente￿riSe Lodge. Ealmg Advice Service is supported by grant funding from the I￿ndOn Borough of Ealing. li wa5 fornierly known as ESAS. 3 year ￿ant awarded to rL]n Thvo residential trips per year for Children. Y3 has beèn defe￿ed to 2022122 due to Covid 19 at the request of the funder. EAS Children in Need Participation (fornierly Inclusion) A group of elected representatives who campaign for people with l¢aTning disabiliti¢s in Ealing. To provide trdvel and transport advice for 21 hours per week. ' Project SeaTch is a supported internship programme delivered in partnership by Ealing Mencap alongside the Marriot Hotel, Coills and West London College. Southall. Funding from CAF Reslience Fund and LB Ealing to enable the conlinuation of an advisor post into FY22 fornjerly funded by the City Bridge trust City Bridge Tn]5t Project Search Advice Reslience Fund CJN Employability An initial 18 monih project to assist adults with employment skills and opportunilies funded by Children in Need. The project has b¢en exiended until 2023. Children & Young People's Fund SatLirday Youth Club The hnd wos ned¢d to support th¢ new Parent Support Servi￿. Saturday Youth Club including fvnding from LB Ealing (includes Holiday funding) Community-based support for those dispTOPOrtionalely impacted such as th¢ BAME populdlivll. F￿￿J￿ by LB Ealiiig. GLA - Advice In Community Settings to deliver tsrgeted interventions to help families or individuals on low or grant fft) no incomes ￿ access advice and support. Funded by the Greater tA)ndon Authority. COMF Jan-Jun?2 LBE / NW London ICB Mentsl Health NHS fijnded Mental Health prOJ￿t. FY23 LBE Winter Crisis Dec22-May23 Household Support Fun TaTg¢ted hnding for thos¢ facing hardship during thc winter. A fund provided by LB Ealing to ellable emergency payments to be lljade io residents of th¢ borough for h61p with household bills Page 32 EALING MENCAP (A Company Limited by Guarantee) Notes to the Financial Statements for the year ended 315t Mareh 2023 21. Anal)Jsis of charitable funds (continued) Name of reslrictedfynd Description. nalure arydpuTpose5 of thefund.. Sports England Sports c0acbll￿ ses510ns Designated (Survive & Thrive) The Survive and Thn"ve project is designated to redevelop and refocus strdtegic aspects of our charitable work including the new Parent Support Service. 22. ADalysi5 of net assets between funds Unrestricted funds Restricted fund5 Tot*1 2023 Tangible fixed assets Cash at bank and in hand Other net current asse￿(118b]IltICs} Creditors of more than otte year 213,778 1.159,188 1.372,966 657,178 233.820 890,998 (108,686) (136,535) (245.221) (184.273) (184,273) 1,072,200 1,834,470 762,270 Unrestricted funds Restricted funds Total 2022 Tangible fixed assets Cash at bank and in band Other net current assetsl(liabilities) Creditors of more than one year 223.238 578,390 (30.630) 1,204,486 ,427,724 204,320 782,710 (68,307) (98,937) (188.439) (188.439) 770.998 1,152.060 1.923.058 23. Financial Instruments Financial insrtuments measured ai amortised cost comprise the mortgage provided by Barclays Bank PIC lo ihe Charity secured on ihe freehold land and buildings al ET)ieTprise Lodge, Stockdove Way, Perivale. Middlesex_ The initial mortgage of £279,000 is repayable over 25 years. The interest rate is 30/0 above base rate. 2023 2022 Mortgag¢ repayable - less that) l yeor Mortgage repayable - witbin I to 2 years Mortgage repayable - within 2 to S years Mortgage rcpayabl¢ in over 5 years 7,332 8,518 29.553 146,202 10,648 1,025 35,478 141,936 191,605 199,087 Page 33 EALLNG MENCAP (A Compan J, Limited by Gvar2ntee) Notes to the Financial Ststements for the year ended 31st March 2023 24. Post Balance Sheet Events The trwstees w¢r¢ not awa￿ of any post balall¢e sheet ¢v¢nls at the dats of appToval of tbe 2023 25. Operating leas 2023 2022 Land and buildings due: Within one year Betw¢en one and five years More than five years 37,500 150.000 84,375 37,500 150,000 187,500 Office equipment due.. Within one year Between one and five years More than five years 18.876 29.714 11,531 15.714 Th¢ totals above r¢prcs¢nt thc ￿tal futur¢ minimum lease paym¢DtS UDder Don