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← Hetton Home Care Services

2025-05-31-accounts

Charity registration number 1072294 (England and Wales)

HETTON HOME CARE SERVICES ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

HETTON HOME CARE SERVICES

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees MrsM Barnfather
Mrs K ‘Young
hrs J Hail
Mr J Blackburn
Mrs J Caterer
Mrs
6 Naylor
Mr J Thompson
Ex-officio AEdington
Charitynumber 1o72294
Principal address The Hetton Centre
Welfare Road
Hetton le Hole
County Durham
England
DHS SNE
Auditor Robson LaidlerAccountants Limited
Fernwood House
Fernwood Road
Jesmand
Newcastle upon Tyne
Tyne and Wear
England
NE? 1TJ
Bankers. Barclays Bank Pic
Leicester
Leicestershire
LE8? 2BB
Hampshire Trust bank
PO Box 74003
London
EC2P20R

HETTON HOME CARE SERVICES

CONTENTS

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|||||| |---|---|---|---|---| |Page| |Trustees’|report|1-6| |Independent auditor's|report|7-9| |Statement|of financial|activities|10| |Balance|sheet|in| |Statement|of cash|flows|12| |Nates|to|the financial|statements|13-22|

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HETTON HOME CARE SERVICES

TRUSTEES' REPORT FOR THE YEAR ENDED 37 MAY 2025

The trustees present their annual report and financial statements for the year ended 31 May 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and camply with the charity's Deed of Trust, the Charities Act 2077 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 20193",

Objectives and activities

The aims and chjectives as stated in the constilutian of the charity are;

“The relief of the elderly or infirm persons in Hetton-le-Hole, Houghton-le-Spring and the surrounding area by appropriate means including the provision of a care service in the home."

The charily has achieved its aims and objectives in the Hetton-le-Hole araa by providing personal care and domestic support to clients with varying levels of needs allawing them ta remain living safely in their own hame.

The charity also provides training and employment to over 59 people living in the local area with flexible working patterns.

Quality policy

The organisation believes that having the highest quality care is the absolute right of all our service users, The continuing aim of the organisation is to provide a professional and efficient service to meet all of the requirements of its service users. The long-term goal of the organisation is ta obtain the highest possible level of satisfaction from service users and relatives.

All service users of Hatton Horne Care Services should: -

A) expect the highest quality care possible.

B)} be given a say in the running of the organisation through routine evaluations of each care episode. A larger survey of service user opinion is carried out on an annual basis; the survey will be confidential but the results will be published and available upon request,

C) be free to complain about any aspect of the running of the organisation and to have their complaints welcomed and acted upon promptly - all complaints will be responded to in writing within 7 working days.

To ensure the service is providing a quality service which is relevanl to the needs and wishes of the service users, an annual questionnaire is sent to every service user, Service users’ opinions on all aspects of care provided such as allendance, punctuality, manner, confidentiality, respect and admin, The results of the annual survey are collated and published in the charity's annual report,

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activilies the charily should undertake.

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HETTON HOME CARE SERVICES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

Achievements and performance

Hetton Home Care Services has worked under contract to City of Sunderland Council since 1994 providing personal care to individuals in their own homes. Alongside this contract Hetlon Home Care Services has also provided personal care, domestic support, companionship, overnight care and sleepovers to individuals who are self-funding. Contract Levels June 2024- May 2025

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||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |eee ae| |Average|hours|of care|provided|per week| |Contract values|ae|Seca| |ySS|a|l|Sunderland|«ies| |Self-funding|1|Re|rr| |This|e367,742||p440.317| |equates to|eee|Gees| |SL|as|a, ae| |oOEeee|eeee| |The|care was|provided|to|an|average|of over 158|service|users each|week|and|varied|from domestic|support with| |Nousecare,|shopping|and|laundry|to|personal|care and|Pallialive’and|of life|care,|

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HETTON HOME CARE SERVICES TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

Financial review

Financial position

In the report for 2025 it was staled that the Trustees were pleased that the charity provided a high-quality service. They were concerned that Hetton Home Care Services had made a logs again over that year. This is due to the problams of recruiting and retaining staff, thus reducing the number of care Packages thal could be accepted and results.thus reducing the income made. The impact of the Government National Insurance changes, also impacted an our

Virtually all the income Hetton Home Care Services receives comes from the payment of provision of care to clients. llis either paid for directly by the elient or the council in whose area they reside. With regard to clients paid for by the councils the remuneration we receive is set by the council. not us.

The income we receive not only has ta pay the wages of the staff who provide the-care but alsa has to finance all other costs to provide the care, This includes the following; supervisory staff and manager to run the charity and ensure COC standards ara met and maintained: office casts: PPE: computer and telephony support: training and human resources, legal and accountancy compliance. The costs for the above are very much fixed and yaries very little with regard to the number of client hours we have, but as has been identified the number of these hours greatly affects the amount of funds we have available to meet these costs, As per the previous year the Nalional Living Wage was increased by 6.7% from £10.44 to £12.21. HHCS has to pay over13.6%.lhe national living wage, to include travel lime between visits. HHOS wages lor carers was increased by

As a care provider we have to register with the Care Quality Commission (COC), who do important work in ensuring the standards with regard care provision are met, In 2020 the CQC raised the fees we have to pay to £13,652 a raise of 9.2%. Due to a reduction in client numbers receiving regulated services the fea paid in 2021 was slightly decreasedat £11,663. to £10,557. In 2022 the fees were increased to £11,100, In 2023 and 2024 our fees remained the same

It was the intention of the Management of Hetton Home Care Services to continue to provide a reliabla, caring and efficient service and to maintain the excellent standard it has previously been rated at,

Unfortunately. in 2025 it became abviaus the losses the Charity was making could no longer be sustained over the nolongsatisfactory term and planssolutionto ceasecan betradefound,in March 2026. Various options to negate these losses have beon explored but

It basically comes down to the our low number of Care Suppart Staff which cannot Sustain our overheads, The problem we found in recruitment and loss of the Sunderland Care contract contributed to the decision made when the imperative was to ensure the wellbeing of our clients and staff.

Reserves policy

tis the policy of the charity to maintain Unrestricted Funds, which are the free reserves of the charity. This provides sufficient funds to cover management, administration and support costs fora period of four to six mantis.

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HETTON HOME CARE SERVICES TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

Risk management

The Trustees have considered the major risks ta the future af the charity:-

1, To continue providing care in the community the charity must comply with the Essential Standards of Quality and Safety for Domiciliary Care as regulated by the Care Quality Commission, The service has been regularly inspected by the Commission for Social Care Inspection and subsequently the Care Quality Commission. The trustees are level,happy thal the latest inspection result was Good on all paints. however recognise the importance of maintaining this 2. Achange in Government policy may see a change in the way local councils purchase domiciliary care, however as both Conservative and Labour Governments have promoted service procurement from the independent and voluntary sector. The Trustees are aware of this angaing situation and have policies in place to deal with this including increasing the proportion of the charity's income from personalised budgets and privately funded clients.

  1. The organisation continues to be pro-active and creative in exploring ways to recruil naw staff alongside the retention of existing staff as this affects the continuity of service we can provide for cur clients and the number of clients we can support. As in previous trustee reports, due to the nature of services provided and the way they are funded, we continue to use zero-hour contracts for care staff, the same as other similar organisations. This is an ongoing situation the Trustees regularly re-visit and are uncomfortable and unhappy with this. Unfortunately, until a more suitable and workable situation is found we have to continue with these contracts. Hawever, we aim ta provide the best working conditions as possible for our existing and future staff to ensure retention and recruilment.

  2. The global Coronavirus (Covid-19} pandemic, although now somewhat in the distance, continues to have same impact on the services provided. The changes implemented during that period continue and are in the foretrant of the daily functioning ef HHCS, Working practices are regularly reviewed to ensure a Covid-secure environment for bath staff and clients. The organisation remains alert to the risks posed by emerging variants and continues to respond flexibly to public health guidance. Hetton Home Cara Services is committed te providing all staff with trainingavailableinframsafetheworkingmain office,practices, including hygiene and the use of personal protective equipment (PPE), which is

To achieve this, Management Committee are committed to ensuring thal the Charity has maintained a good financial reserve, despite the challenges recruitment presents. The Management Committee continue to meet faceremotto-fac e methodson a bi-monthlyof cammunicaand t heion.officers more often when required, We also continue to provide the use of rmare

Staffing levels continue to represent the primary challenge for the Charity

Plans for future periods

In view of our financial siltation, the services the charity provide are no longer sustainable and it is planed that we will cease to trade in March 2026,

Structure, governance and management

The charity is controllad by its governing document, a deed of trust and constitutes an unincarporaled charity,

Hetton Home Care Services was established on 6th June 1994 as an unincorporated association and as a registered charity in November 1998, Number 1072294, The charity was established by a group of volunteers in response to The Community Care Act 1990, Volunteer representatives from other organisations in the area formed a Management Committee and appointed stalf to manage the service.

BC

HETTON HOME CARE SERVICES TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

The trustees who served during the year and up to the date of signature of the financial statements were:

Mrs M Barnfather

Mrs K ‘Young Mr G Davison Mrs E Davison

(Resigned 24 November 2025) (Resigned 24 November 2025)

Mrs J Hall

Mr J Blackburn

Mrs J Caterer Mrs W Naylor Mr J Thormpsan

The current canstitutian (adopted August 1998) of the charity requires the following membership: - a) Minimum of three and maximum of eight members from similar organisations in the area of benefit. b) Minimum of three and maximurn of four residents in the area of benefit, c) One employee elected by the employees (ex-officio), a) The manager of the service (ex-officio), @) Co-opted persons having special knowledge, experience or interest in the charity.

Membership is open to all individuals who are interested in actively furthering the aims and objectives of the charity within the area of benefit, and whose written application for membership has met with the approval of the cormmittas by a simpla majority. Organisations may pul fonvard a representative for membership and if accepted by the cammittee may vole on its behalf at all meetings, but before such a member exercises the right to vote, the organisation shall give particulars in writing to the secretary of the committee of such representative, All new Trustees are required to read and sign the charity's Code of Conduct, Trustees will also be expected to familiarise themselves with Charity Commissioners leaflet CC3 Responsibilities of Charity Trustees and the constitution of the charity. On appointment all trustees will be subject to a 0.8.8 check at the enhanced level.

Organisational structure

The management structure of the charity is: -

Voluntary Management Committee Responsible for all activities of HHCS

Registered Manager Mrs Amie Edington Responsible for all activities and day to day running of HHCS

Lynn Supervisors Cummings, Debra Ward, Hannah Bainbridge, Angela Bond,

Responsible for allocation of staff to client's care plans, health & safety and standards of care delivered by HSA's.

Admin & Accounts Officer Wages Clerk Admin/Training Gordan Co-ordinator Smith Melanie Robertson Hazel Hewitsen

Home Support Assistants Responsible for the delivery of care as per agreed plans

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HETTON HOME CARE SERVICES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

The Management Committee meet bi-monthly to receive reports from the Registered Manager on the financial position and activities of the chanty. The Registered Manager is responsible for day-to-day management of the service and ensuring compliance with the Care Standards for Domiciliary Care regulated by the Care Quality Commission, Major decisions regarding rates of pay for staff, health & safety compliance and future plans for the service are made by the Management Cammittee. The Management committee are voluntary and receive no remittance for their support of the charily.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicablePractice}, law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year,

In preparing these financial statements, the trustees are required to:

will- Preparecontinuetheinfinancialoperation,statements on the going concern basis unless it is inappropriate ta presume that the charity The trustees are responsible far keeping sufficient accounting records thal disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulatians 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable sleps for the prevention and detection of fraud and other irregularities.

Auditor Rabson Laidler Accountants Limited have bean re-appointed as auditor for the ensuing year, The trustees’ report was approved by the Board of Trustees. K You ey aN Mrs K Young — Trustee Date: .,2 Mero POZO ,

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HETTON HOME CARE SERVICES

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HETTON HOME CARE SERVICES

Opinion

We have audited the financial statements of Hetton Home Care Services (the ‘charity’) for the year ended 31 May 2025 which comprise the statement of financial activities, the balance sheet, the statament of cash flows and notes ta the financial statements, including significant accounting policies, The financial reporting framework that has been applied in their preparation is applicable law and United Kingdem Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of freland {United Kingdom Generally Accepted Accaunting Practice).

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 Avoditor's responsibilities for the audit of fhe financral statements section of our report, We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements, We believe Inat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter - financial statements prepared on a basis other than going concern We draw attention to accounting policy 1.2 Going Concem in these financial slatoments, which explains that the truslees intend to cease trading in March 2026 and therefore do not cansider it appropriate to adopt the going concern basis of accounting in preparing those financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in the accounting policies. Gur opinion is not modified in respect of this matter,

Our responsibilities and lhe responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The olher information comprises the infarmatian included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report, Our opinion on the financial statements does not cover the other information and we do nat express any form of assurance conclusion thereon, Our responsibility is to read the other information and, in going se, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or othenvise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required ta 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,

Matters on which we are required to report by exception

We have nothing to repart in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report ta you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees" report: ar z sufficient accounting records have not been kept or - the financial statements are not in agreement with the accounting records: ar - we have not recelved all the information and explanations we require far our audit.

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HETTON HOME CARE SERVICES INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HETTON HOME CARE SERVICES

Responsibilities of trusteas

As explained mora fully in the statement of trustees" responsibililies, the trustees 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, wheather due to fraud or error. In preparing the financial Statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related ta geing concernhave no realisticand usingalternativethe goingbutconcernto do so.basis of accaunting unless the trustees either intend to cease operations, or

Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act 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 frorn material misstatement, whether due to fraud or ertor, and lo 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 misslatement 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.

The extent to which our procedures are capable of detecting irreqularitias, including fraud, is detailed below,

The risk of material misstatament due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systerns walkthroughs to ensure they are operating effectively, Other substantive tasting is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

The laws and regulations which are considered to be significant to the entity relate to health and safety. Discussions arescrutinizedheld withfor anymanagement evidence onto determinenon-co mpliance,whether any breaches have occurred as well as legal expenditure being

The audit was considered capable of identifying irregularitias only to the extent of the substantive tesling performed and from discussions with management. A further description of our responsibilities is available on the Financial Reporting Council's website at: https: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in prefarence to the Accaunting and Reporting by Charities: Statement of Recommended Practice issued of 7 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Senerally Accepted Accounting Practice,

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HETTON HOME CARE SERVICES

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HETTON HOME CARE SERVICES

Use of our report This roport is mado solely ta the chanty's trustods, as a Sody, in accordance with Pan 4 af the Charities tAccounts and Reports} Reagilalions 2003. Qur avait work has beon undertasen so lat we might atate to the charity's trustees lege Inatlars we ara required ta sfate to tham in an auditor's report and for no other purpose, Te the fullest extent bermitted by law, wa de not accept ar assume responsibility to anyone ather thar the Charity and the charity's (rustees as a body, for cur audit work. Far this fraport, OF for lhe opinions we faye formed

RoWaen Louclle, Accuntints Uref

Robsen Laidler Accountants Limited Statutory Auditor

Fariwnod House Farnwood Read Jesmond Neurcastle uipean Tyne Tyne and Waar England NE279TJ

Robsen Laidier Accountants Limited Bigihl for appointment as auditer of the Charity oy virlue ef its elbybility tor APHaAMimeant 4 suedior ota COMpany under section 1242 of she Caompaniog Ant 9006

4 Mal ch 2026

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HETTON HOME CARE SERVICES

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2025

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
Notes 2025
£		 2025
£		 2025
£		 2024
£		 2024
£		 20274
£
Income and endowments from:
Donationsand legacies
Charitable activities
Investments
Otherincame		 3
4
5
6		 200
1,044 654
6,646
-		 -
-
.
-		 200
1,044,654
6,646
-		 a92
1,073,497
5,316
1,800		 6.000
-
-
-		 6,392
41.073 497
5,316
1,800
Total incame 1,051,500 - 4,051,500 1,081,005 6.000 1,087,005
Expenditure on:
Charitable activities 7 1,103,779 22,763 1,126,542 1,154,404 19,538 1,173,942
Totalexpenditure 1,103,779 22,763 1,126,542 4,154,404 19.538 1,173,942
Net expenditure and
movement infunds (52,279) {22,763} (75.042) (73,399) (13,533) (86,997)
Reconciliation offunds:
Fund balances at 1 June 2024 363,934 27,285 391,219 437,333 40,823 478,156
Fund balances at 31 May
2025 311,655 4,522 316,177 363,934 27205 391,219

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive fram continuing activities.

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HETTON HOME CARE SERVICES

BALANCE SHEET

AS AT 37 MAY 2025

2025 7024
Notes £ £ E £
Fixed assets
Tangible assets 12 14.021 19,727
Current assets
Debtors 13 64 B16 120,956
Cash at bank and in hand 308,389 313,302
373,205 434,258
Creditors: amounts falling due within 14
one year (71,049) (62,766)
Net current assets 302,156 371,492
Total assets less current liabilities 316,177 391,219
The funds of the charity
Restricted income funds 15 4 522 27,205
Unrestricted funds 311,655 363,934
316,177 391,279

The financial statements were approved by the trustees on ae, Meet 201.

Mrs Ml Barnfather Trustee

Mrs K Yeung Trustee

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HETTON HOME CARE SERVICES

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2025

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||||||| |---|---|---|---|---|---| |2025|2024| |Notes|E|£|£|£| |Cash|flows|from|operating|activities| |Cash absorbed by operations|21|(17,559)|(78,750)| |Investing|activities| |Purchase of tangible fixed|assets|"|(4,772)| |Investment|income|received|6,646|5,316| |Net cash generated from|in|vesting activities|6,646|544| |Net cash|generated|from financing|activities|-|-| |Net decrease|in cash and cash equivalents|(4,913)|(78,206)| |Gash and cash|equivalents|at beginning|of year|313,302|391,508| |Cash and cash|equivalents|at end|of year|308,389|313,302|

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HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policies

Charity information

Centre,Hetton HomeWelfareCareRoad,ServicesHettan leis Hole,4 charityTyne andragisteradWear, inDHSEngland SNE. and Wales. The principal office is Hetton

1.1 Accounting convention The financial statements have bean Prepared in accordance with the charity's Deed of Trust, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” ("FRS 102") and the Charities SORP “Accounting and Reparting by Charities: Statement of Recommended Practice applicable to charities Preparing their accounts in accordance with lhe Financial Reporting Standard applicableBenefit Entityin theas UKdefined andbyRepublicFRS 102.of Ireland {FRS 102)" (effective 1 January 2019), The charity is a Public

The financial statements are Prepared in sterling, which is the functional currency of the charity, Monetary amounts in these financial statements are rounded to the nearast £,

1.2 Going concern As explained in more detail in note 20: Post balance Sheet events, the trustees intend to cease trading in March 2026 and therefore do not consider it appropriate ta adopt the going concern basis of accounting in preparing these financial statements. Accordingly the accounts have been prepared on a break up basis.

1.3 Charitable funds ; Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees, Restricled funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. charity,Endowment funds are subject to specific conditions by donors that the capital must be maintained by the

1.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have bean met, the amounts can be measured reliably, and itis probable that incame will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in refation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, contingentthe amauntassel.is known, and receipt is expected. if the amount is net Known, the legacy is treated as a

Investment incame is included when receivable,

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HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

1 Accounting policias

(Continued)

Expendilure is classified by activity. The casts of each activity are made up of the total of direct costs and shared costs, including support casts invalved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to thal activity. Shared costs which contribute to more than one activity and Support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with lhe use of resources. Central staff costs are allacated on the basis of time spent, and depreciation charges are allocated on the partion of the asset's use,

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannal be fully recovered, and is reported as part of the expenditure to which il relates:

Casts of raising funds comprise the costs associated with attracting donations, grants and legacies and the costs of trading for fundraising purposes, Charitable expenditure comprises those costs incurred by the charity in the delivery of its' activitias and services for its beneficiaries. It includes both casts that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Other expenditure includes all expenditure that is neither related lo raising funds for the charity ner part of its expenditure on charitable activities,

All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use af the resource, Costs relating to a particular aclivily are allocated directly, others are apportianed on an appropriate basis, as set out in the notes to the accounts, 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation. net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cast or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements o% straight line Fixtures and fittings 15% reducing balance Computers 50% reducing balance

The gain or loss arising on the disposal of an assetis determined as the difference between the sale proceeds and the carrying value of the asset, and is recagnised in the statement of financial activities. 1.7 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets fo determine whether there is any indication that those assets have suffered an impairment loss, If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment lass (if any),

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HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

(Continued)

1.9 Employee benofits received,The cost of any unused haliday entitlement is recognised in the period in which the employee's services are

Termination benefits are recagnised immediately as an expense when the charity is demonstrably committed ta terminate the employment of an employee or to provide terrnination benefits.

1.11 Short term debtors/creditors Debtors and creditors with no interest rate which are receivable or payable within one year are recorded at transactionActivities, price. Any loss arising fram impairment are recognised immediately in the Statement of Financial

2 Critical accounting estimates and judgements

In the application of the charity's accounting policies, the trustees ara required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent fram other sources, The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ fram these estimates.

The estimates and Underlying assumptions are reviewed on an ongaing basis. Revisions to accounting estimates are recognised in the period in which the astimate is revised where the revision affects anly that periods.period, or in the period of the revision and future periods where the revision affects both current and future

3 Income from donations and legacies

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||||||||| |---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|Unrestricted|Restricted|Total| |funds|funds|funds|funds| |2025|2025|2025|2024|2024|2024| |E|£|£|£|£|£| |Donations and|gifts|200|-|200|392|6.000|6,392|

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|||| |---|---|---| |Unrestricted|Unrestricted| |funds|funds| |2025|2024| |£|E| |Home|care|provision| |Other income|1,044,654|1073.497|

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-15-

HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 37 MAY 2025

5 Income from investments

Interest receivable

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||| |---|---| |Unrestricted|Unrestricted| |funds|funds| |2025|2024| |£|£| |6,646|5,416|

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|||| |---|---|---| |Unrestricted|Unrestricted| |funds|funds| |2025|2024| |£|£| |Funding|for|training| |-|7,800|

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HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

7 Expenditure on charitable activities

Home care Home care
provision provision
2025 2024
Diract costs £ FE
Staff costs
Insurance 1,015,020 1,066,413
DBS checks 8,326 8,636
Telephone
Donations
andlunchclub
Advertising
Training
Subscriptions
Disposables
and consumerables
Client Gifts		 196
10.879
6,390
604
1,672
13,690		 302
10,125
340
2,766
3.853
16,044
ayy
Bad debts 6.162 5.075
Uniforms 67a
3,586		 549
2,642
1,067,200 1,117 622
Share ofsupportandgovernance costs (see note 8)
Support
Governance		 49,510 46,719
9,837 9.601
1,126,542 1,173,942
Analysis by fund
Unrestricted funds
Restricted funds		 1,103,779
22,763		 1,154404
19,538
1,126,542 1,173,942

ay rea

HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

8 Support costs allocated to activities

Support costs allocated to activities
2025 2024
£ £
Depreciation
Otherestablishment costs
Other officecosts
Watercooler
Sundries
Bank charges
Repairsand maintenance
Governance costs		 5,707
21,165
4 B44
500
28d
2227
4 erg
9.892		 8,432
17,439
4.554
332
dy2
2175
13,315
9,604
59,342 56,320
Analysed between:
Homecare provision §9,342 96,320
Governance
costscomprise:		 2025
£		 2024
£E
Auditfees
Accountancy
Legaland professional		 3,150
3,750
3,532		 3,000
3,012
3,589
9,892 9,604

9 Trustees

None of the trustees (ar any persona connected with them) received any remuneration or benefits fram the charity during the current or preceeding year,

10 Employees

The average monthly nurnber of employees during the year was:

2025 2024
Number Number
62 69
Employmentcosts
:		 2025 2024
£ £
Wages and salaries
Social securitycosts
Otherpensioncosts		 936 476
58,843
19,701		 985.875
57,834
22,704
1,015,020 1,066,413

HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

10 Employees

(Continued)

Key management personnel received remuneration of £50,524 (2024: £47,297) in the year.

There were no employees whose annual remuneration was more than £60,000.

11) Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

12 Tangible fixed assets

Leasehold
improvements		 Fixtures and
fittings		 Computers Total
Cost £ £ £ £
At 1 June2024 50,000 61,534 44 654 156,188
At 37 May2025 50,000 61,534 44.654 156,188
Depreciation and impairment
Ald June 2024
Depreciation charged inthe year		 60,000
-		 49,654
1,782		 36,806
3,925		 136.460
5 FOr
AL31 May2025 50,000 61,436 40,731 142,167
Carrying amount
ALS) May 2025 - 10,098 3,923 14,021
At 31 May 2024 - 11,879 ?,6d8 19.727
13 Debtors
Amounts
falling due within oneyear:		 2025
£		 2024
£
Trade debtors
Prepayments andaccrued income 56 044
a,ff2		 90,457
21,499
64,016 120,956
14 Creditors: amounts falling duewithin oneyear
2025 2024
£ £
Tradecreditors
Other creditors		 2,752 1,693
Aceruals
and deferred income		 3,583
64,774		 4470
56,603
71,049 62,766

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HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

15 Restricted funds

The restricted funds of the charily comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Movement in funds Movement in funds
Balance at
1June2023
£		 Incoming
resources
£		 Resources
expended
£		 7 Balanceat
June 7024
E		 Resources
expended
£		 Balance at
34 May 2075
E
Infection ControfFund
Recruitment Grant
PowerBl Fund
Anniversary EventFund		 8,776
27,525
4.522
-		 -
-
.
6,000		 (FOS)
(18,843)
-
-		 8,074
6.692
4,522
6,000		 (8.071)
(8,692)
-
(6,000)		 -
:
4522
=
40,823 6,000 (19,538) 27285 (22,763) 4,522

Infection Control Funding and the Omnicron Support Grant were awarded by the Government during the COVID 19 pandemic to assist the care industry to deliver care throughout.

workforce.Recruitment funding was awarded by Sunderland City Council to help improve recruitment to increase the Power Bl Funding was awarded by Sunderland City Council ta purchase Power Bl licances.

Anniversary fund held amounts for the Charity's 30th anniversary party al Rainton Arena.

16 Analysis of net assets between funds

Unrestricted Restricted Total
funds funds
2025 2025 2025
At 31 May 2025: E E £
Tangible assets
Current assets/fliabililies)		 14,024
257.634		 -
4,522		 14,021
302,156
311,655 4 522 316,177
Unrestricted Restricted Total
funds funds
2024 2024 2024
At 31 May 2024: £ £ £
Tangibleassets
Current assets/(liabilities)		 4,556
355,378		 11,171
16,114		 19,727
a7 1,492
363,934 27,285 391,219

17 = Operating lease commitments

HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025

17 Operating lease commitments

(Continued)

At the reporting end datethe charity had outstanding commitments forfuture
han-cancellable operating leases, which fall due as follows:		 minimum lease payments under
2025 2024
£ £
Within aneyear
Between twoand five years		 3,445
271		 3,445
3,ef2
3°16 6,717

18 Related party transactions

There were ro disclasable related party transactions during the year (2024 - none},

19° Employee Benefit Obligations

The amount recognised in income and expenditure as an expense in related to defined contribution plans was FIS.701 (2024: £22,704).

20 Post Balance Sheet Events

During 2025, it became evident that the financial lasses being incurred by the Charity were not sustainable aver the long term. We therefore plan to cease trading in March 2026.

A range of options to mitigate these losses was explored; hawever, no viable or sustainable solution could be identified.

The principal issue relates to the insufficient number of Care Support Staff, resulting in income levels that are inadequate to cover the Charity's fixed overheads. Ongoing recruitment challenges, together with the loss of the Sunderland Care contract, further exacerbated the financial position,

In light of these factors, the Trustees determined that the charity is no longer considered a going concern. We plan te cease trading in March 2026. Priority is being given ta safeguarding the wellbeing of both clients and staff in the closure process.

Por iy

HETTON HOME CARE SERVICES

NOTES TO THE FINANCIAL STATEMENTS (CONTINU ED) FOR THE YEAR ENDED 31 MAY 2025

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||||||||| |---|---|---|---|---|---|---|---| |21.|Cash absorbed by operatians|2025|2024| |£|£| |Deficit|far|the|year| |(75,042)|(86,937)| |Adjustments|for:| |Investment income recognised|in statement of financial|activities|(6,646)|(5,376)| |Depreciation and impairment|of tangible|fixed assets|5,707|8,433| |Movements|in|working|capital:| |Decrease|in|debtors| |Increase/(decrease}|[in]|creditors|56,139|6,152| |8,283|(1,082)| |Cash absorbed|by operations|(11,559)|(78,750)| |22|Analysis|of changes|in|net funds| |The charity|had|no|material|debi|during|the|year.|

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Cee