# **Company Limited by Guarantee Number: 03197716 Registered Charity Number: 1055486**
**Vale House Stabilisation Services Annual Report & Financial Statements For The Year Ended 31 March 2021**
Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
|**CONTENTS**||
|---|---|
||**Page**|
|Trustees’ Report|[3-9]|
|Independent Auditor’s report|[10-12]|
|Statement of financial activities|[13]|
|Balance sheet|[14]|
|Cash flow statement|[15]|
|Notes to the financial statements|[16-27]|
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Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees & Directors**|**Yasmin Batliwala (Chair)**|
|---|---|
||**James Saunders**|
||**Gillian Benning**|
||**Richard Paul**|
|**Chief Executive**|**Arun Dhandayudham (to May 2020)**|
||**Anna Whitton (from June 2020)**|
|**Company Secretary**|**Richard Paul**|
|**Charity number**|**1055486**|
|**Company number**|**03197716**|
|**Country of incorporation**|**United Kingdom**|
|**Principal address**|**18 Dartmouth Street**|
||**London**|
||**SW1H 9BL**|
|**Auditors**|**Crowe U.K. LLP**|
||**Statutory Auditors**|
||**55 Ludgate Hill**|
||**London**|
||**EC4M 7JW**|
|**Bankers**|**Barclays Bank**|
||**1 Churchill Place**|
||**London**|
||**E14 5HP**|
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Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
## **Trustees’ Annual Report**
## **Strategic report**
## **Our Objectives**
Our Charity’s purposes as set out in the objects contained in the Company’s memorandum of association are:
- To advance the education of the public in the dangers arising from the habitual or occasional consumption of narcotic, stimulant and hallucinogenic drugs or similar substances.
- To advance education and training among persons who are in the field of drug misuse.
- To relieve the poverty, sickness and distress of persons resulting from the misuse of drugs.
- To promote research into drug misuse and to publish the results of such research.
## **Ensuring Our Work Delivers Our Aims**
We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us to ensure our aim, objectives and activities remained focused on our stated purposes.
## **The Focus of Our Work**
Our main objectives for the year continued to be the promotion and prevention of the misuse of drugs and alcohol and the rehabilitation of those users. The strategies we used to meet the objectives included:
- Provision of a residential detoxification and rehabilitation unit based in Harlow, Essex.
- Provision of intensive detoxification, stabilisation and therapeutic treatment to enable sustained recovery and community integration.
- Offering post recovery support.
## **How Our Activities Deliver Public Benefit**
The Trustees, who are the Board of Directors, have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing VHSS’ aims and objectives and in planning our future activities. The Trustees have set a strategy which considers how all planned activities will contribute to the organisation’s vision, mission (see below), aims and objectives, to ensure that services and activities are operated to benefit those in need within our society.
All our charitable activities currently focus around the provision of treatment for drug and alcohol misuse in our residential detoxification and rehabilitation unit and are undertaken for the benefit of individuals but also for the public benefit in reducing social breakdown.
## **Who Benefits From Our Services?**
Referrals to our services mainly come from the South and East of England and were primarily funded by local authorities. Passmores House is a detoxification and recovery community for men and women aged 18 years and above with drug or alcohol problems and all levels and types of dependency. We deliver our detoxification and residential rehabilitation programmes which help people return to a full and active lifestyle free from dependency.
## **Activities, Achievements and Performance**
Recovery from addiction is possible and Passmores House structures its specialist care in a way that allows service users to take the lead in their recovery. The care package is fully comprehensive, including detoxification, rehabilitation and reintegration. Passmores House is nationally recognised as
3
Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
a leader in its field and model treatment unit.
Passmores House completed **197 inpatient detoxifications** and **31 residential rehabilitations** between April 1[st] 2020 and March 31[st] 2021. During this period, the successful reintegration rates were **89.5%** and **48.4%** respectively.
|**_Activity from 1 April 2020 –_**
**_31 March 2021_**||
**Residential rehabilitation**|
|---|---|---|
||**Inpatient Detoxification**||
||||
|Number ofpatients|220|64|
|Successful reintegration|197|31|
|% of successful reintegration|89.5|48.4|
Passmores House specialises in the following:
- Inpatient detoxification from alcohol, opiates, stimulants and other substances;
- Managing complex detoxifications;
- 24/7 nursing care and access to a Consultant Addictions Psychiatrist;
- Helping residents understand why alcohol and/or drugs have become their coping strategy;
- Providing a secure environment in which residents can reflect and change;
- A comprehensive group and individual programme;
- (Re)building and (re)connecting with family and friends that will support recovery;
- Supporting access to housing and recovery support services in the community;
- Enabling and supporting steps towards training, education and work that will ensure long-lasting change.
Passmores House continued to deliver detoxification and rehabilitation services to residents and within 2020-2021 the services rehabilitation provision also includes complimentary therapies in such as the Gloves boxing programme, Cricket, the Capital Card, an allotment and a new group therapy programme.
## **Quality**
During 2020/21 we have continued to embed qualitative practice in our services. Passmores House has now been fully incorporated within the governance framework of the organisation, with services to achieve the highest standards of care, implementing any learning to improve the service at every opportunity.
A full regulatory inspection by the Care Quality Commission (CQC) took place in April 2018. The service received a rating of “good” and noted a number of areas of good practice including staff behaviour, client service delivery, medicines management and mandatory compliance. We continue to meet regularly with CQC to discuss ways of working to improve services to patients however at the end of 2020/21 we needed to take action to review the effect of Covid 19 on admissions and safety (as noted in ‘Future objectives’ below).
## **Health, Safety and Wellbeing**
The Health and Safety of staff and service users continues to remain of paramount importance and we have provided a significant focus at Passmores House during 2020/21 due to the nature of operating in a 24 hour, 7 days a week environment. Health and Safety and Infection Control audits are completed on a regular basis. Health and Safety audits are all carried out regularly and reviewed.
## **Service User Involvement and Peer Advocacy**
The meaningful involvement of service users in the organisation continues to be a fundamental element of VHSS services and we achieve this through a variety of mechanisms at a local level with weekly meetings which provide opportunities for service users to feedback their views, concerns and suggestions, which in turn feed into improved service delivery, organisational policies and practice.
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Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
## **Staff Development and Volunteers**
Our multidisciplinary staff team at Passmores includes clinical, support and sessional staff. The development and learning of our employees and volunteers continues to be a key commitment for WDP and VHSS. We work with our managers to develop their management and leadership skills through a range of accredited qualifications, continuing professional development and reflective practice. We are committed to facilitating the continuing professional development of our medical and psychosocial teams.
From recovery practitioners and service administrators to peer mentors and trainee counsellors, volunteers engage in a variety of roles across the organisation to support us in service delivery. Our volunteers are always supervised and help to widen the scope of opportunities available to people accessing our services. This has a significant impact on what we can offer as an organisation and is helping us to transform the lives of our clients.
## **Equal Opportunities**
VHSS is an equal opportunities employer and will apply objective criteria to assess merit. It aims to ensure that no job applicant or employee receives less favourable treatment on the grounds of age, race, colour, nationality, religion, ethnic or national origin, gender, marital status, or sexual orientation or disability.
Selection criteria and procedures are regularly reviewed to ensure that individuals are selected, promoted and treated based on their relevant merits and abilities. All employees are given the opportunity and, where appropriate and possible, special training to enable them to progress both within and outside the organisation. The Company is committed to a programme of action to make this policy effective and ensures it is brought to the attention of all employees.
## **Partnership Working**
VHSS works closely with partners in the statutory, voluntary and private sectors to give people the support they need to recover. Service users often need to use a wide variety of services ranging from health and housing to benefits and employment. By collaborating with organisations whose areas of expertise complement our own, we can deliver better services and outcomes for service users and communities.
## **Future Objectives**
The trading environment for detoxification and rehabilitation services continues to be challenging. The Trustees remain confident in the need and demand for high quality services and having purchased the adjacent site last year we continue in our development of creating a new, modern, best of sector offering for detoxification and rehabilitation at the combined sites.
We are aware of the risks associated with the covid-19 pandemic and unfortunately needed to close due to government guidelines and the possible effects on our patients during May and June. After this period of closure we have reopened however we have needed to operate within social distancing guidelines. This has affected our results for 20/21 but we will maintain our high quality service with patient care prioritised at all times. We have now been fully able to reopen and we are working on admittance improvements, including weekend admittance for the first time, to allow patients to be entered into care earlier.
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Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
## **Report of the Management Committee**
## **Structure, Governance and Management**
## **Governance**
Trustees are aware of the principles set out in the Governance Code for charities published in July 2017. The Trustees consider current governance arrangements to be satisfactory and consistent with the principles identified in the governance code. It regularly reviews policies and procedures to ensure these reflect best practice.
## **Constitution**
Vale House Stabilisation Services (VHSS) was incorporated with its Memorandum and Articles of Association as a Company Limited by Guarantee on 13 May 1996 and as a Charity on 22 May 1996. Under the Company’s Articles of Association, the Directors listed are the members of the Management Committee and are the Directors for Company law. The Directors are also Trustees for Charity law. In the event of the Company being wound up the members are required to contribute an amount not exceeding £1 each.
## **Related Parties**
Within the terms of a merger agreement dated 14[th] April 2011, Vale House Stabilisation Services (VHSS) became a wholly owned subsidiary of WDP which is a long-established Charitable Company (Company number 2807934 and Charity number 1031602) and which provides a wide range of substance misuse related services. Following completion of the merger, Vale House Stabilisation Services became a part of the WDP group and adopted governance and management arrangements to align with those of WDP.
## **Recruitment of Directors**
The Directors are the Trustees of the Charity for the purposes of Charity law and are also the members of the Management Committee. The Trustees are recruited to ensure a diverse and broad range of relevant experience, knowledge and business skills. The Chair regularly reviews the membership of the Board to ensure it remains appropriately equipped to meet the strategic needs of the organisation. Should it be identified that additional expertise is needed the Chair will seek to recruit new or additional directors utilising recruitment specialists and media as required to attract suitably qualified applicants with a focus on maintaining a diverse and effective Board of Trustees.
## **Induction and Training of Directors/Trustees**
An induction plan is in place for any new Trustees who join the Board to ensure they are aware of the constitution, their role and responsibilities, organisational activities, strategic plan and financial and governance arrangements. Training needs are reviewed regularly, and appropriate training arranged as required.
## **Organisational Structure**
The Charity is controlled by WDP and adopts WDP’s governance, management and reporting structures. Vale House Stabilisation Services (VHSS) has three Directors who are also Directors of WDP. WDP’s Board of Directors meet a minimum of four times a year to provide the appropriate governance to the WDP group, including VHSS and Board meetings normally involve the attendance of the WDP’s Chief Executives and Senior Management team. In addition, the Directors and Chair participate in working parties and sub committees appointed by the Board when necessary. The Board delegates day-to-day operations of VHSS and service delivery to the Chief Executive of WDP who is supported by senior and functional managers.
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Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
A performance management framework is in place throughout the organisation involving annual appraisals and regular staff supervision in which performance issues and development needs are addressed. A broad range of key performance indicators are monitored in line with a comprehensive Business Plan against which progress is tracked and reported to the Trustees at regular intervals. This includes the monitoring and reporting of service user feedback, operational and business risk and financial performance.
## **Risk Management**
The Trustees regularly review the major risks to which the Charity is exposed and the systems which have been established to mitigate those risks by review of the Strategic Risk Register, which is prepared by the WDP Senior Management Team for Board meetings.
The key risks to the organisation, and the actions taken against each of these are as follows.
_Ability to operate at breakeven level_ – Operating at a significant deficit in the past, has led to the development of a strategic plan that allows for an increase in revenue over time to enable future financial stability. WDP Trustees view the provision of residential accommodation as part of their overall plans to provide comprehensive quality care in respect of detoxification and rehabilitation facilities and recognise the need to financially support VHSS. The budget for 2021/22 is a small surplus after factoring the effects of Covid 19 on our finances and we will review and manage closely as the effects of the pandemic are critical.
Most clients are referred to Passmores House by their local authority which funds the treatment. These are clients whose needs cannot be met by day services within their locality. Continued financial pressure on local authorities means that referrals are only made when funds are available. Further tier 4 contracts have been agreed so that we extend the breadth of our services to further local authority areas to minimise vacancies and increase funding for our services. We continue to promote our services by marketing and publicity. There is also a renewed focus on private patient services. The intention of extending the services offered through the Kings Acre acquisition is designed to mitigate some of the longer-term sustainability risks.
_Level of Reserves and maintaining sufficient working capital_ – Due to losses recorded in the past, and the restrictions in being able to grow or diversify income streams due to the reasons noted above, VHSS has been financially supported by WDP to ensure financial stability and to meet cashflow requirements. It is the intention of WDP that this on-going support will continue for the foreseeable future whilst improvements to the marketing of services are made and until such a time as the organisation becomes self-sustaining financially.
_Quality of care and maintaining current levels of income_ - VHSS can operate at the level which it does due to strong regulator care scores. The Passmores House Service is registered with the Care Quality Commission (CQC) and currently maintains a rating of “good”. Unless this changes – which the Trustees and management team do not expect – there is deemed to be minimal risk surrounding quality of services. The recruitment of a clinical team comprising of a consultant, supporting medical staff, lead nurse and chief pharmacy roles have all contributed to an improved quality of service and a turnaround in Passmore House’s financial viability going forward.
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Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
## **Financial Review**
VHSS funding comes primarily from the statutory sector. Funding streams from Local Authorities and NHS Clinical Commissioning Groups are utilised by local authority-based partnerships or community care managers which commission drug and alcohol services.
WDP has continued to invest funds from its reserves into the development of VHSS Passmores House residential service and anticipate that this support will continue, albeit at reducing levels through the coming financial years. Using this investment, VHSS continues to be able to finance current and future day-to-day operational requirements.
In the year to 31 March 2021 the Charity received income of £705k (2020: £1.1m), a decrease of 11% compared to 2020 due to the effects of the covid-19 pandemic requiring closure for two months and subsequent social distancing for patients and therefore a lower capacity. We have been able to return to full capacity from August 2021 however we continue to monitor how controls and the safety of patients function during these times. Prior to the covid-19 pandemic occupancy rates at Passmores House remained at a consistent level and we plan to continually monitor, review and grow this.
Expenditure for VHSS decreased during the year to £973k (2020: £1.2m). The most significant cost to running the Passmores facility continues to be salary costs. In the coming year we plan to restructure our staffing so we can implement improvements for all patients under our care.
## **Financial Outlook**
Support is provided throughout the year by WDP. The support is not expected to be required in the long term, in line with our business plan for developing Passmores House service. At 31 March 2021 current debt of £1.2m was transferred into an unsecured loan with WDP, the loan is concessionary and repayable on demand at 0% interest, the first repayment is expected March 2023.
The financial outlook for the coming year remains challenging from an income perspective, complimented by the economic environment, and the effect of the Covid 19 pandemic continuing. In the year ahead, VHSS has budgeted a small surplus after review of the effects of Covid 19, admissions and social distancing. This will be a challenging budget and will be closely managed. However, WDP has strong reserves and the Trustees of VHSS have received assurance that WDP will continue ongoing financial support, as may be required. Passmore House is on the framework provision for new areas and there will be an increased focus on complex detox and rehab service provision.
The Charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.
## **Reserves Policy**
The Trustees’ policy is to retain the consolidated accumulated unrestricted funds to provide for continuity of service in the event of late fund allocation or other contingencies. The policy sets the level of Unrestricted Reserves to be between one and three months running costs. A minimum of approximately £100,000 for the coming year. At 31 March 2021 the VHSS accumulated fund balance of unrestricted funds was a deficit of £381k (2019: £213k deficit). The Trustees and management are working towards achieving the Reserves Policy. The day to day working capital requirements of Vale House Stabilisation Services will continue to be provided by WDP as and when necessary.
VHSS has a revaluation reserve at year end of £210k (2020: £110k). These funds are not accessible without the sale of Thomas Brennan House.
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Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
## **Going Concern**
Following a review of budgets, cash flow forecasts and liabilities there are no material uncertainties surrounding the Charity’s ability to continue as a going concern. The Charity has net current liabilities and is reliant on the support of its parent company, WDP. WDP has indicated that it has the financial capability and its intention to continue supporting VHSS to the extent that it will remain a going concern for the foreseeable future. Looking further forward, the Charity has plans to expand its operations so that additional patients can be cared for. This expansion will also ensure the financial stability and viability in the long term. We have analysed the effects of the Covid 19 pandemic and concluded that the initial effect could alter operations in the short to medium term. We continue to monitor this issue and its effect on staff, financial performance, future plans and the Charity as a whole.
## **Auditors**
Crowe U.K. LLP were appointed as the charitable Company’s Auditors in December 2018 and have expressed their willingness to continue in that capacity.
## **Directors’ Responsibilities Statement**
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 charitable group and of the surplus or deficit of the group 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 in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- • state whether applicable UK Accounting Standards 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 charitable group will continue in operation.
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 charitable group 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 charitable Company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure to Auditors**
Insofar as each of the Directors of the charity at the date of approval of this report is aware there is no relevant audit information (information needed by the charity’s auditor in connection with preparing the audit report) of which the charity’s auditor is unaware. Each Director has taken all the steps that they should have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.
The Trustees’ annual report, including the Strategic report was approved by the Board of Directors on 28[th] March 2022 and signed on their behalf by
…………………………….. Yasmin Batliwala – Chair
9
Vale House Stabilisation Services (VHSS)
A Company Limited by Guarantee
## **Independent Auditor’s Report to the Members and the Trustees of Vale House Stabilisation Services**
## **Opinion**
We have audited the financial statements of Vale House Stabilisation Services (‘the charitable company’) for the year ended 31 March 2021 which comprise The Statement of Financial Activities, Charity Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021 and of its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
10
Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
- the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011,
11
Vale House Stabilisation Services (VHSS) A Company Limited by Guarantee
together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were, CQC Regulations for service providers and managers, taxation legislation, health and safety legislation, employment legislation and General Data Protection Regulation (GDPR).
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing and recognition of contract income, recording the impact of CQC regulatory reviews and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Board of Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading regulatory reports and minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Tim Redwood Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor
London
12
## **VALE HOUSE STABILISATION SERVICES STATEMENT OF FINANCIAL ACTIVITIES (including Income & Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2021**
|Notes
**Income**
Donations
2
Charitable Activities
2
Investment Income
2
Other Income
2
**Total Income**
**Expenditure**
Charitable Activities
3
**Total Expenditure**
**Net Income/(Expenditure) before transfers**
**Transfers between Funds**
**Net Income/(Expenditure) for the year**
**Other recognised Gains/(Losses)**
Gains/(Losses) on revaluation of freehold
property
**Net Movement on Funds**
**Funds at 1 April 2020**
**Funds at 31 March 2021**|Total
Total
General
Designated
2021
2020
£
£
£
£
-
-
-
-
705,042
-
705,042
1,111,051
-
-
-
-
360
-
360
3,246
705,402
-
705,402
1,114,297
973,117
-
973,117
1,217,747
973,117
-
973,117
1,217,747
267,715)
(
-
267,715)
(
103,450)
(
110,000
110,000)
(
-
-
157,715)
(
110,000)
(
267,715)
(
103,450)
(
100,325
-
100,325
-
57,390)
(
110,000)
(
167,390)
(
103,450)
(
323,134)
(
110,000
213,134)
(
109,684)
(
380,524)
(
-
380,524)
(
213,134)
(
Unrestricted|
|---|---|
The Statement of Financial Activities includes all gains and losses in the year and therefore a separate statement of total recognised gains and losses was not prepared.
All of the above amounts relate to continuing activities
The notes on pages 16 - 27 form part of these financial statements
13
## **VALE HOUSE STABILISATION SERVICES BALANCE SHEET**
## **AS AT 31 MARCH 2021**
|Notes
**Fixed Assets**
Tangible Fixed Assets
6
**Current Assets**
Debtors
7
Cash at bank and in hand
**Current Liabilities**
Creditors: Amounts falling due within one year
8
**Net Current Assets**
**Total Assets less Current Liabilities**
Creditors: Amounts falling due in greater than one year
Provisions for Liabilities
10
**Total Net Assets**
**Funds**
Unrestricted Funds
General Funds
Revaluation Reserve
Designated Funds
Revaluation Reserve
**Total Funds**
12|2021
£
594,286
594,286
389,610
18,631
408,241
1,383,051)
(
974,810)
(
380,524)
(
-
-
380,524)
(
590,849)
(
210,325
-
380,524)
(|2020
£
504,271|
|---|---|---|
|||504,271|
|||297,579
104,022|
|||401,601
1,090,007)
(|
|||688,406)
(|
|||184,135)
(
-
29,000)
(|
|||213,134)
(|
|||323,134)
(
110,000|
|||213,134)
(|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
Approved by the Trustees and authorised for issue on 28th March 2022 and signed on their behalf by:
|||
|---|---|
|Yasmin Batliwala - Director||
|Charity Registration Number:|1055486|
|Company Registration Number:|03197716|
14
## **VALE HOUSE STABILISATION SERVICES CASHFLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021**
|Notes
**Reconciliation of Cashflows from Operating Activities**
Net Movement in Funds
Bank Interest Received
Sales of Fixed Assets
Depreciation of Tangible Fixed Assets
(Gain)/Loss on Revaluation of Freehold Property
(Increase)/Decrease in Debtors
Increase/(Decrease) in Creditors
Increase/(Decrease) in Provisions
Net cash provided by (used in) operating activities
**Cashflows from Investing Activities**
Bank Interest
Profit from sale of fixed assests
Purchase of fixed assets
Net cash provided by (used in) investing activities
**Cashflows from Financing Activities**
Increase/(decrease) in borrowing
Net cash provided by (used in) financing activities
15
**Increase in Cash and Cash Equivalents**
**Cash and Cash Equivalents at 1 April**
**Cash and Cash Equivalents at 31 March**
15
**Analysis of Cash and Cash Equivalents**
Cash at bank and in hand|2021
£
167,390)
(
-
4,701)
(
10,312
100,325)
(
92,031)
(
293,044
29,000)
(
90,092)
(
-
4,701
-
4,701
-
-
85,391)
(
104,022
18,631
18,631
18,631|2020
£
103,450)
(
-
-
41,384
-
173,314)
(
178,289
-|
|---|---|---|
|||57,091)
(|
|||-
6,629
-|
|||6,629|
|||5,609)
(|
|||5,609)
(|
|||56,071)
(
160,093|
|||104,022|
|||104,022|
|||104,022|
15
**VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## **1** _**Accounting policies**_
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## _**a) Basis of preparation**_
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102, 2nd edition, effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Charity 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 note(s).
## _**b) Legal status of the Charity**_
The Charity is a company limited by guarantee incorporated in England and Wales whose registered office is 18 Dartmouth Street, London, SW1H 9BL. Registered number 1055486. The Charity has no share capital. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. There are 4 members of the Charity (2019: 4).
## _**c) Going concern**_
Following a review of budgets and cash flow forecasts there are no material uncertainties surrounding the Charity's ability to continue as a going concern. The Charity has net current liabilities and is reliant on the support of its parent company WDP. WDP has indicated that it has the financial capability and its intention to continue supporting VHSS to the extent that it will remain a going concern for the foreseeable future. The Charity has secured a loan from the parent Charity, WDP, for £1,200,000 which is unsecured and repayable on demand. As the loan is concessionery and for charitable purposes the interest rate is 0%.
Looking further forward, the Charity has plans to expand operations so that additional service users can be cared for. This expansion would ensure the financial stability and viability in the long term.
We have analysed the effects of the Covid-19 pandemic and concluded that initial effect could affect operation in the short to medium. We continue to monitor this issue and its effects on staff, financial performance, future plans and the Charity as a whole. This is covered in more detail in the performance and risk sections of the Trustees’ annual report.
## _**d) Income**_
Income is credited to the statement of financial activities in the period to which it relates.
Donations and gifts are recognised when the Charity is entitled to the funds, receipt is probable and the amounts can be measured reliably. Gifts are valued by the Trustees on the basis of their worth to the company. Income from charitable activities comprises contracts for treatment services, advice and information, and outreach work. Income from contracts, advice and outreach work is recognised upon successful provision of the service on a receivables basis and is accrued or deferred where funds are received in advance or arrears of service provision.
Grant income is recognised when the Charity becomes entitled to the funds. Where there are grant conditions, the income is recognised once those conditions have been fulfilled, otherwise it is deferred.
16
**VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## _**e) Expenditure**_
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Charitable expenditure comprises services identifiable as wholly or mainly in support of the company’s charitable and operational work. These costs are regarded as an integral part of carrying out the direct charitable objectives of the company and include an appropriate proportion of overhead costs.
Governance costs comprise expenditure incurred for constitutional and statutory requirements.
All resources expended are allocated to the particular activity where the cost relates directly to that activity. Indirect costs and overhead expenses are apportioned by the Trustees on a judgemental basis across all service project cost centres in proportion to the turnover or number of staff directly working in each of the service projects.
## _**f) Volunteers**_
The value of the services provided by volunteers is not incorporated into these financial statements.
## _**g) Tangible fixed assets**_
Expenditure on equipment is only capitalised where the cost of individual items exceeds £2,500.
Depreciation is provided at the following annual rates in order to write off the cost of each asset over its expected useful life:
Furniture and Equipment 25% straight line Computer Equipment 33% straight line Motor Vehicles 25% straight line Leasehold Improvement 2% straight line Freehold Property (Land & Buildings) 2% straight line
As is common with many charities, assets are purchased for particular projects from the proceeds of funding specifically given for that purpose. In such circumstances the funds specifically given are treated as income in the year of receipt and the cost of purchase is treated as expenditure in the year of acquisition, which are usually the same financial year.
## _**h) Revaluation of tangible fixed assets**_
The Charity has adopted the revaluation model to revalue items of freehold property whose fair value can be measured reliably. The revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.
The fair value of land and buildings is usually determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in the Statement of Financial Activities and added to reserves in a separate Revaluation Reserve.
17
**VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## _**i) Fund accounting**_
The accumulated fund consists of those funds that the company may use in furtherance of its objectives at the discretion of the Trustees.
The unrestricted designated fund comprises the net book value of the leasehold improvement.
The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.
## _**j) Taxation**_
The Charity meets the definition of a charitable company for UK corporation tax purposes.
The Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## _**k) Pension Costs**_
The Charity operates defined benefit contribution pension schemes for its employees. The assets of the scheme are held seperately from those of the Charity in an independently administered fund. Contributions for the year are charged to the Statement of Financial Activities.
## _**l) Operating leases**_
Rentals applicable to operating leases are charged to the Statement of Financial Activities in the period in which the cost is incurred. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period of the lease.
## _**m) Debtors**_
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.
## _**n) Creditors**_
Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. Concessionary inter company loan was originally recognised at transaction price and subsequently at amortised cost.
18
## **VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## _**o) Financial Instruments**_
Financial assets and liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. All financial assets and liabiltities are initially measured at transaction price (including transaction costs).
The Charity only has financial assets and financial liabilites 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.
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and cash 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 depoit or similar account.
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## _**p)**_ **Country of incorporation and registered office address**
The registered office is situated in England and Wales and its address is 18 Dartmouth Street, London, SW1H 9BL.
## _**q)**_ **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.
## _**r)**_ **Judgements and key sources of estimation uncertainty**
In the application of the Charity’s accounting policies, the Trustees are required to make judgment estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The Trustees have reviewed the current Balance Sheet value of assets and liabilities and in particular property and buildings in the light of the Covid-19 pandemic and believe the values as stated are correct at this time. The estimates and associated assumptions based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the accounting period in which the estimate is reviewed where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Areas of key estimate and judgement include the valuation of land and buildings and any provisions for other liabilities.
19
**VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## **2** Income
|Income|||
|---|---|---|
|Donations
Donations
Charitable Activities
Residential Detox & Rehab|2021
£
-
-
705,042
705,042|2020
£
-|
|||-|
|||1,111,051|
|||1,111,051|
The Trustees' Report contains information on the local authorities that fund the Charity's services. There are no unfulfilled conditions or other contingencies attaching to government funding received.
|Other Income
Sundry Income|2021
2020
£
£
360
3,246
360
3,246|
|---|---|
Other income in the year relates to unrestricted funds.
- **3** Total Expenditure
|Total Expenditure||||
|---|---|---|---|
|Residential Detox & Rehab
Allocation of Support Costs:
Residential Detox & Rehab
Governance Costs
Audit Fees
Accountancy Fees
Legal Costs
Head Office Costs|Staff
Costs
£
677,939|Direct
Support
Costs
Costs
£
£
255,026
40,153|Total
Total
2021
2020
£
£
973,117
1,217,747|
||677,939|255,026
40,153|973,117
1,217,747|
|||Governance
Executive
Costs
& Admin
£
£
5,355
34,798|Total
Total
2021
2020
£
£
40,153
83,348|
|||5,355
34,798|40,153
83,348|
||||Total
Total
2021
2020
£
£
3,500
3,500
1,435
-
420
-
1,406
5,355
4,906|
All governance costs in the current and previous year relate to unrestricted funds. All expendiure within the financial statements is inclusive of vat. In the current year other governance and audit costs have been paid by WDP.
20
## **VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
**4** Net Income
|Net Income|||
|---|---|---|
|Net Income is stated after charging:
Auditors Remuneration (excluding Vat)
Operating Leases
Depreciation
Profit on Sale of Asset
Analysis of Staff Costs & Key Management Personnel
Salaries & Wages
Social Security Costs
Pension Costs
Clinical, Agency Support & Other Staffing Costs|2021
£
2,917
-
10,312
4,701
17,929
2021
£
598,355
63,457
16,127
677,939
130,138
808,077|2020
£
2,917
-
41,383
6,629|
|||50,929|
|||2020
£
644,076
64,027
16,421|
|||724,524
252,984|
|||977,508|
**5** Analysis of Staff Costs & Key Management Personnel
Key management personnel are from the parent charity, WDP, and are not directly employed by VHSS.
The number of employees whose emoluments for taxation purposes amounted to over £60,000 in the year was as follows:
|as follows:|||
|---|---|---|
||2021|2020|
|£60,001 - £70,000|0|0|
|£70,001 - £80,000|1|1|
||£|£|
|Pension contributions in respect of the above bandings|2,238|2,238|
Trustees are not remunerated for their services and during the year, no Trustee was reimbursed (2020 - £62) for travel expenses.
The average monthly number of employees during the year was as follows:
|Residential Detox & Rehab|2021
2020
19
20
19
20|
|---|---|
21
## **VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## **6** Fixed Assets
|Fixed Assets|||||||||
|---|---|---|---|---|---|---|---|---|
||Freehold Land||Leasehold|Fixtures,||Motor||Total|
||& Buildings|Improvemts||Fittings &Eq||Vehicles||2021|
||£||£|£||£||£|
|Tangible Fixed Assets|||||||||
|Cost or Valuation|||||||||
|At 1 April 2020 (Restated)|454,675||175,100|28,488||13,500||671,763|
|Additions|-||-|-||-||-|
|Revaluation|100,325||-|-||-||100,325|
|Disposals|-|(|7,949)|-|(|13,500)|(|21,449)|
|At 31 March 2021|555,000||167,151|28,488||||750,639|
|Depreciation|||||||||
|At 1 April 2020 (Restated)|-||137,353|17,200||12,938||167,491|
|Adjustments to Op Balance|-|||-||-||-|
|Charge for year|-||5,326|4,423||563||10,312|
|Disposals|-|(|7,949)|-|(|13,500)|(|21,449)|
|At 31 March 2021|-||134,730|21,623||-||156,353|
|Net Book Value|||||||||
|At 31 March 2021|555,000||32,421|6,865||-||594,286|
|At 31 March 2020 (Restated)|454,675||37,746|11,288||563||504,271|
Opening balances as at 1 April 2020 have been restated in order to redefine asset type with no effect on total net book value.
Freehold Land and Buildings were revalued as at March 2021, the valuation was undertaken by Cluttons Chartered Surveyors. The historical cost of land and buildings is £300,000 (2020 - £300,000)
## **7** Debtors
|ebtors||
|---|---|
|Trade Debtors
Prepayments & Accrued Income
Other debtors|2021
2020
£
£
337,027
263,996
52,583
32,983
-
600|
||389,610
297,579|
22
## **VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## **8** Creditors: amounts falling due within one year
|Creditors: amounts falling due within one year||
|---|---|
|Bank Loans & Overdrafts
Trade Creditors
Amounts owed to WDP: Loan
Amounts owed to WDP: Other
Accruals & Deferred Income
Taxation & Social Security
Other Creditors
Parent Company Loan
Unsecured loan falling due within one year|2021
2020
£
£
-
-
43,054
4,417
1,200,000
-
16,520
960,445
42,573
107,194
13,966
14,532
66,938
3,418|
||1,383,051
1,090,006|
||2021
2020
£
£
1,200,000
-|
||1,200,000
-|
Unsecured loan is concessionery and repayable on demand with 0% interest.
## **9** Deferred Income
|Unrestricted
Opening: Balance 1 April
Amount released in year
Amounts deferred in year
Closing balance 31 March
**10** Provisions for Liabilities
Dilapidations & Repairs
**11** Unrestricted Funds
Balance at 1 April
Net Expenditure before Transfers
Gain on revaluation of Freehold Property
Balance at 31 March|At 1 April
Utilised/
2020
Released
£
£
29,000
29,000|2021
2020
£
£
99,857
52,232
189,697)
(
52,232)
(
89,840
99,857|
|---|---|---|
|||-
99,857|
|||Provided
At 31 March
2021
£
£
-
-|
||29,000
29,000|-
-|
|||2021
2020
£
£
213,134)
(
109,684)
(
267,715)
(
103,450)
(
100,325
-|
|||380,524)
(
213,134)
(|
23
## **VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
**12** Analysis of Net Assets between Funds
|Analysis of Net Assets between Funds|Analysis of Net Assets between Funds||
|---|---|---|
|Fund Analysis
Fund balances at 31 March 2021
are represented by :
Tangible Fixed Assets
Current Assets
Creditors: falling due within 1 year
Creditors: falling due after 1 year
Provisions
Total Net Assets
Movement in Funds
At 1 April
Income
2020
£
£
Unrestricted Funds
General Funds
323,135)
(
705,402
Revaluation Reserve
-
-
Designated Funds
Revaluation Reserve
110,000
-
Total Unrestricted Funds
213,135)
(
705,402||Unrestricted Designated
Restricted
Total
Fund
Fund
Fund
£
£
£
£
594,286
-
-
594,286
408,241
-
-
408,241
1,383,051)
(
-
-
1,383,051)
(
-
-
-
-
-
-
-
-|
|||380,524)
(
-
-
380,524)
(|
|||Expenditure
Transfers
Gains /
At 31 March
(Losses)
2021
£
£
£
£
973,117)
(
-
-
590,850)
(
-
110,000
100,325
210,325
-
110,000)
(
-
-|
||213,135)
(
705,402|973,117)
(
-
100,325
380,524)
(|
24
## **VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
**13** Comparative analysis of net assets between funds and movement in funds
|Fund Analysis
Fund balances at 31 March 2020
are represented by :
Tangible Fixed Assets
Current Assets
Creditors: falling due within 1 year
Creditors: falling due after 1 year
Provisions
Total Net Assets
Movement in Funds
At 1 April
Income
2019
£
£
Unrestricted Funds
General Funds
219,686)
(
1,114,297
Designated Funds
Revaluation Reserve
110,000
-
Total Funds
109,686)
(
1,114,297|Fund Analysis
Fund balances at 31 March 2020
are represented by :
Tangible Fixed Assets
Current Assets
Creditors: falling due within 1 year
Creditors: falling due after 1 year
Provisions
Total Net Assets
Movement in Funds
At 1 April
Income
2019
£
£
Unrestricted Funds
General Funds
219,686)
(
1,114,297
Designated Funds
Revaluation Reserve
110,000
-
Total Funds
109,686)
(
1,114,297|Unrestricted Designated
Restricted
Total
Fund
Fund
Fund
£
£
£
£
394,271
110,000
-
504,271
401,601
-
-
401,601
1,090,006)
(
-
-
1,090,006)
(
-
-
-
-
29,000)
(
-
-
29,000)
(|
|---|---|---|
|||323,134)
(
110,000
-
213,134)
(|
|||Expenditure
Transfers
Gains /
At 31 March
(Losses)
2020
£
£
£
£
1,217,745)
(
-
-
323,134)
(
-
-
-
110,000|
||109,686)
(
1,114,297|1,217,745)
(
-
-
213,134)
(|
## **14** Pension Schemes
The Charity and it's employees contribute to the People's Pension Scheme. The Peoples Pension Scheme is a stakeholder pension scheme
Contributions payable in the year amounted to £9,764 (2020 - £9,764).
## **15** Reconciliation of Net Debt
|Cash in Hand
Borrowing|2020
£
104,022
-
104,022|Cashflows
2021
£
£
85,391)
(
18,631
-
-
85,391)
(
18,631|
|---|---|---|
25
## **VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
## **16** Related Party Transactions
During the year, there were amounts owed from and to the parent Charity, WDP. For the year ended 31st March 2020 £1,216,520 was owed to WDP (2020 : £960,445). Of this balance £1,200,000 is in the form of an unsecured concessionery loan at 0% interest and repayable on demand. It is expected that the first repayment will be March 2023. Other intercompany transactions included an amount of £12,921 within WDP (2020 - £148,719) for the purchase and supply of residential rehab and detox services.
The Trustees are not remunerated for their services and during the year no Trustees were reimbursed for travel.
## **17** Controlling Party
In the opinion of the Trustee's, Westmister Drug Project (WDP) is the controlling party. WDP is incorporated in England under company number 02807934 and is registered as a charity, charity number 1031602 WDP exercises control by its Trustees having the power to appoint or remoave the Trustees of VHSS. The principal purpose and activities of WDP is that of the provision of advice, information, treatment and support services to people with issues of substance abuse.
The accounts can be obtained from WDP, 18 Dartmouth Street, London, SW1H 9BL.
26
## **VALE HOUSE STABILISATION SERVICES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021**
**19** Comparative Statement of Financial Activities for the year ended 31 March 2020
|**Income**
Donations
2
Charitable Activities
2
Investment Income
2
Other Income
2
**Total Income**
**Expenditure**
Charitable Activities
3
**Total Expenditure**
**Net Income/(Expenditure) before transfers**
**Transfers between Funds**
**Net Income/(Expenditure) for the year**
**Other recognised Gains/(Losses)**
**Net Movement on Funds**
**Funds at 1 April 2019**
**Funds at 31 March 2020**|Total
Total
General
Designated
2020
2019
£
£
£
£
-
-
-
3,395
1,111,051
-
1,111,051
1,074,486
-
-
-
-
3,246
-
3,246
3,401
1,114,297
-
1,114,297
1,081,282
1,217,747
-
1,217,747
1,193,031
1,217,747
-
1,217,747
1,193,031
103,450)
(
-
103,450)
(
111,749)
(
-
-
-
-
103,450)
(
-
103,450)
(
111,749)
(
-
-
-
-
103,450)
(
-
103,450)
(
111,749)
(
219,684)
(
110,000
109,684)
(
2,064
323,134)
(
110,000
213,134)
(
109,684)
(
Unrestricted|
|---|---|
27