Sutton me cap Sutton Mencap Charity Company Annual Report and Financial Statements For the year ended 31 March 2025 Charity number: 1080514 Company number. 03915936
Sutton Mencap Charity Company Annual Report and Financial Statements Year ended 31 March 2025 Contents Page Company information Report of the trustees Responsibilities of the Trustee Board 13 Auditor's report 14 Statement of financial activities 17 Balan sheet 18 Statement of cash flows 19 Notes to the financial statements 20 Page 2 of 29
Sutton Mencap Charity Company Company information Trustee Board Chairman: Mavis Peart OBE Vice-chaimian: Clare Fionda Treasu rer: 'Paul Solomon Trustee: Trustee: Trustee: Trustee: Trustee: Trustee: Trustee: Titilayo Dairo Sandra Gillett (co-opted August 2025) Dennis Henstock Michele Humphreys Edwina Morris Michelle Perrett Simon Vines Company Secretary.. David Hobday, Chief Executive Officer The members of the Trustee Board are the directors of the company. Company Status The company is a company limited by guarantee, not having a share capital and is registered in England and Wales. Registered company number.. 03915936 Registered charity number: 1080514 Registered Office 8 Stanley Park Road Wallington SM6 OEU Bankers CAF Bank 25 Kings Hill Avenue Kings Hill West Malling, Kent ME19 4JQ Unity Trust Bank PO Box 7193 Planetary Road Willenhall WV19DG Auditor Kevin Fisher Kingston Burrows 308 Ewell Road Surbiton KT6 7AL Solicitor WH Matthews and Co 11-13 Grove Road Sutton SM1 1DS Psge 3 of 29
Sutton Mencap Charity Company Report of the Trustees Year ended 31 March 2025 Structure, Governance and Management Governing document Sutton Mencap Charity Company is a charity registered with the Charity Commission and a Company Limited by Guarantee. The Charity Company was registered on 28 January 2000 and uses Sutton Mencap as its working name. The company was set up under a Memorandum of Association which establish'ed the objects and powers of the charitable company and is govemed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1. Appointment of trustees The Trustee Board for the Company is made up of a maximum of 12 members: 3 honorary officers plus up to 9 members. Honorary officers and members are elected at an Annual General Meeting. The Trustee Board may also co-opt members to fill skills gaps, provided that the number of co-opted members does not make up more than one-third of the Trustee Board's membership. Trustee recruitment Trustee recruitment is carried out according to policies which are reviewed on a regular basis. Potential trustees are invited to observe a trustee meeting and interviewed by the Chair andl or another trustee. Trustee induction and training New trustees participate in an induction programme led by the Chief Executive Officer. They are invited to meet with key staff in the organisation and visit a range of services and are provided with an induction pack containing the Memorandum and Articles of Association, latest annual report and financial statements, strategic plan and key policies and procedures. Trustees participate in internal and external training, including an annual away day. Organisational structure The Trustee Board governs the charity and usually meets 8 times a year. The Trustee Board appoints a Chief Executive Officer to manage the day-to-day operations of the charity. The Chief Executive Officer attends Trustee Board meetings and advises and reports to the Trustees. Trustees papers are prepared and circulated in advance of each meeting. Papers include an easy read summary to improve accessibility for any trustees with a leaming disability. Rlsk management and control The Trustee Board has a fonnal risk management strategy which enables it to identify and mitigate the major risks to which the charity is exposed. The strategy consists of: an annual review of the risks which the charity may face; the establishment of systems and procedures to mitigate those risks; Page 4 of 29
Sutton Mencap Charity Company the implementation of procedures designed to report on and minimise any potential impact on the charity should any of those risks materialise. The principal risks and actions taken to mitigate them are grouped under the following headings: Governance Procedures are in place to monitor the success of recruitment and the mix of skills and life experiences trustees bring to the organisation. Effective decision making is .monitored through the adoption and delivery of strategic plans. Finance Trustees consider management accounts, cash flow, and debtors on at least a quarterly basis and confirm that in their view the organisation is a going COnrn. Trustees ensure the charity operates effective financial controls to mitigate the potential for fraud or error. Financial regulations are reviewed on an annual basis. Staffing and volunteering Trustees receive regular reports on staffing levels and staff recruitment. Trustees ensure the charity operates clear policies on staff recruitment, management and training, disciplinary and grievance procedures, as well as operational policies and procedures. Trustees have access to professional external HR advice. Legal compliance Trustees ensure the charity has a range of up-to4ate policies in place and seeks external advice and expertise where required to ensure legal compliance. Serrfice delivery Trustees receive regular reports from staff on service delivery issues. They also monitor service user feedback and compliance with contract and grant requirements from funders. Trustees allocate resources for quality assuran systems and staff training, inGluding resources devoted to meeting safeguarding responsibilities. Buildings, plant and equipment Trustees consider premises requirements and Complian with the building lease. Trustees allocate resources for building and equipment maintenance and monitor expenditure. External relationships and environment Trustees ensure the charity maintains appropriate relationships with key local and national bodies and keeps abreast of changes in local and national policy which could have an impact on the charity. Strategic plan Trustees agreed a strategic plan which began in 2019. The plan is centred around an agreed vision, which is that all people with a learning disability should be able to lead fulfilling lives and achieve their aspirations and potential. Sutton Mencap's overall aim is to improve the lives of children and adults with a leaming disability and their carers by: Page 5 of 29
Sutton Mencap Charity Company Reducing isolation and developing networks" Improving life skills, promoting independence and enabling choice and control; Supporting parents and carers", and Raising awareness of needs and promoting inclusion. The specific strategic objectives in the current plan are set out under 3 broad headings: 1. Service development To increase local provision of specialist seNice for children and adults and support for people during transition to adulthood. To strengthen our role in supporting seNice users to identify and meet individual goals. To help individuals and families have aCsS to specialist advice and support. To ensure safeguarding remains embedded in every aspect of service delivery. 2. Community development To support people with a learning disability lo develop a slronger collective voi and work with other communities to achieve social change. To increase the participation of children and adults with a learning disability in mainstream activities through providing organisations with training and support alongside direct support to individuals. 3. Servlce support To ensure Sutton Mencap's current and future premises and infrastructure needs are met. To maximise efficiencies and senjice improvement through use of digital technology. To maintain income levels Ihrough fundraising and appropriate pricing of servIs. To ensure staffing arrangements are in pla to support delivery of the plan. To ensure the volS of service users, carers and supporters shape the work of Sutton Mencap. These objectives are used to set an annual delivery plan for the organisation. Trustees monitor progress towards delivering the plan on a quarterly basis. At their away day in March 2025, the Trustees began the prOsS of updating the strategic plan, with the aim of developing a revised plan to start from 2026. Page 6 of 29
Sutton Mencap Charity Company Quality Assurance Trustees developed a new quality assuran programme in 2022, focussing on the following key areas of business: 1. Putting People First.. how all our activities promote person centred care. 2. Staff and management.. how we ensure that staff are recruited, trained and supported to deliver high quality services. 3. The way we work.- How we deliver our services. 4. The way we are run: How governance and management support the delivery of high-quality services. 5. Ourplace within the wider society.. How we fulfil our responsibilities as a local charity. Each year, trustees cover one of these areas in depth, visiting services and putting together a detailed review of how the organisation meets a set of standards that underpin that area. Where we find ways of strenglhening performance, these are then added to the programme of work for the coming year. Organisation structure As at 31st March 2025, Sutton Mencap's organisation structure was as follows: Trustee Board hief Executlve officer children's Services Manager Adult Services Manager Digital Paths to Inclusion Manager Finance Officer Facilities Manager ervices Suppo offIr 1 Sessional staff sesslonal staff DPI SLlPPOrt Worker Procedures for setting staff salaries The trustees have an established system for setting pay and remuneration for key management personnel which takes account of salary levels for similar local charities as well as existing posts within the organisation. The trustees have established a remuneration sub-committee to review salary levels on an annual basis and take account of comparative local and national trends as well as the financial performance of the organisation. The recommendations of the sub- committee are reviewed and agreed by the Trustee Board. Sutton Mencap is a London Living Wage Employer. P3ge 7 of 29
Sutton Mencap Charity Company Developments, activities and achievements during the year 1. Service development Children's services At the start of the financial year, the council invited tenders for delivery of short breaks services for high-needs children. The invitation to tender caused some concerns as the total funds allocated by the council would not be sufficient to cover all of the ServIS we provide. We therefore tendered for a reduced level of seNice, which was rejected by the council. That said, the council was unable to procure services from any altemative provider and they have therefore continued to purchase services from us. As a result, we have continued to provide After-school, Saturday and Holiday services for children with high support needs throughout the year. In total, we supported 64 children, up from 59 in the previous year, who between them reIVed 6,700 hours of service, 900 hours more than in the previous year. We were delighted to be able to continue supporting high need children in this way and believe that they benefit significantly from the services we provide. That said, trustees recognise the long-term risks to the Servi and have put in place contingency plans to minimise the impact of changes that mighl be forced on our children's services in the future. Adults services Services for adults continued to expand throughout the year, resulting in our busiest year on record. The number of people we supported increased from 60 to 67. Between them, clients reiVed 35,500 hours of service, up from just under 29,000 in the previous year. Our day servIS and weekends away saw large increases in the numbers of people attending. The popularity of our adult day services means that we are often running at capacity. In the long term we are looking to increase the number of places we can offer through expanding service areas within our building. We have also offered to set up new evening groups, as feedback from commissioners suggests that such groups would be popular. Safeguarding Safeguarding continues to be a major priority for Sutton Mencap. During the year we focussed on strengthening trustee oversight of safeguarding processes. This included commissioning and delivering a new safeguarding course for trustees, which focussed on the board's responsibility for oversight and reporting. We also developed new reporting mechanisms including a new safeguarding log, to ensure trustees have effective oversight of safeguarding. We continue to require staff to undertake appropriate safeguarding training at least every 3 years and we continue to participate in local partnership work aimed at keeping children and adults safe. Page 8 of 29
Sutton Mencap Charity Company 2. Community development Delivering the Digital Paths to Inclusion project Our Digital Paths to Inclusion (DPI) project, funded by the City Bridge Trust has been the ntrepieCe of our community engagement work. DPI combines a community development approach with the use of digital technology to strengthen the Vol of people with a learning disability. Throughout the year, the DPI project continued to identify issues that matter to people with a learning disability, which were then highlighted through films and podcasts and our online digital magazine. We also continued to look at access to local services, with a particular focus on working with GP surgeries. We commissioned an evaluation of the project in early 2025. This has provided a valuable insight into the impact of the project and how we can continue to use to the content prodUd throughout the life of the project to highlight changes that can benefit people with a learning disability. The project will end in July 2025 and we are very grateful to the City Bridge Trust for funding it over the past 5 years. Strengthening engagement with service users, parents and carers Trustees identified the need to develop closer links with Servi users, parents and carers through the Quality Assurance review on Putting People First, carried out in 2023. We have started running Meet the Trustees sessions, which allow people who use our services to meet with trustees and raise any issues that they feel are important. We have also set up parents evening meetings, aimed at parents of people attending our adult services, and coffee mornings for parents on children's services. Supporting delivery of the Learning Disability Strategy We aim to work closely with other agencies to ensure that the Vol of people with a leaming disability is heard and that local services and facilities are available and welcoming for people with a leaming disability. A key focus of this work has been to support the council and NHS in delivering their Learning Disability Strategy. In partlGular we have fed into discussions around access to healthcare services and community participation. We also helped with planning for the annual Learning Disability Conference due to be held in June 2025. 3. Service support Premises and resources We renewed our lease in 2024, which will ensure we have a base for delivery of services for many years to come. We also looked at developing the building to increase the space available to us for service use. Our original plan was to site a new garden room to the rear of the building which would allow us to expand delivery of children's services. However, this had to be put on hold due to the UnrtaInty over future delivery of those services. It is likely that we will instead seek approval Page 9 of 29
Sutton Mencap Charity Company from the council for improvements to the main area of the building which could benefit either children's or adults, services, or both. We have some designated funding for this work and will aim to cover the rest through fundraising. We also put together a set of plans for improving the environmental efficiency of the building as part of our long-term goal of achieving net zero in carbon emissions. Our aim will be to work with the council as our landlord to look at ways to implement these improvements. We made other significant improvements to premises and resources, including through the purchase of a new minibus and the installation of a new kitchen in early 2025. Fundraising We set up a new volunteer-led fundraising sub-committee in 2024, which has planned and delivered a number of events and activities aimed at increasing income for the organisation. We are very grateful to the parents and carers who have taken part in planning these events. Staff management Our quality assurance review for 2024 looked at how we support and supervise our staff team. The review, together with our staff survey, came up with a number of suggestions around improving supervision and staff training, which we are keen to implement in the coming year. Finance report The year ending 31 March 2025 showed our income continuing to increase and the total for the year at £1,122,996 is £124,510 higher than 2024, (or £224,510 if we exclude the capital grant received in the previous year). This increase is mostly driven by price increases and increased activity of which 54°/0 was attributable to adult services, 210/0 to children services and the remainder to grants and donations. In 2024, our costs increased significantly due to an increase in the London Living Wage by over 10 % . This was absorbed as much as possible through increased service delivery, but it was necessary to increase prices to cover these additional costs. This was obviously a challenge for the local authority, who fad their own budget constraints, and we are grateful to them for accepting the need for these increases. For 2025126, we will implement a further increase of 5 % in London Living Wage, as announced in November 2024, as well as covering significant increases in employer's National Insurance contributions. In implementing these. we have again sought to minimise the impact on our prices through further increases in service delivery and implementing cost savings in relation to core staffing. People costs rose in line with the increase in activity of both our services, and, alongside a rise in the London Living Wage rate, amounted to an overall 10 % increase. Overall staff costs in total account for 70 % of charitable activities and equivalent people numbers were in line with last year. Page 10of 29
Sutton Mencap Charity Company Accommodation costs were significantly higher year on year as we spent more on general repairs than in the previous year. Additionally, the kitchen was refurbished at a cost of £27,401 and new doors were installed, costing £6,118. Fixed assets increased by £35,816 with the purchase of a new minibus at £52,840 partially offset by other asset disposals and depreciation charges. Cash is invested in short and medium-term bank deposits and the closing balances on 31 March 2025 totaled £686,639 which is lower by £34,518 but after purchasing the minibus mentioned in fixed assets. We have made changes lo our unrestricted and designated funds. Due to increased activity, we have increased our general reserve to maintain three months running costs. We have added a premium of around £40,000 to this in recognition of the potential risk to our delivery of children's services. This has reduced the amount of funds we have designated for building improvements. The Accounting Standard requires the production of a Cash Flow Statement, and this has been included in the annual report. The Balan Sheet remains strong, and our total assets increased to £750,108 at 31 March 2025. This continues to provide confidence to our members, clients, staff and trustees that we will be able continue to provide seNices, we trust, for many years to come. Suffice to say under this heading, Sutton Mencap's finances are currently in reasonable shape. Despite the ongoing challenges of managing cost pressures, we are confident that 202512026 will continue with a reasonable surplus for Sutton Mencap with the first quarter's results reflecting this optimism. Reserves policy Sutton Mencap requires an appropriate level of reserves to enable it to achieve the following objectives.. Primarily, to ensure that Sutton Mencap is able to survive unexpected set-backs, including short term funding issues. and problems arising from intemal or external causes. To provide the option of developing new seNices or expand current ones in line with the changing needs of the community. Trustees consider il prudent for Sutton Mencap to hold a level of reserves to meet its primary objective equivalent to 3 months, average expenditure, excluding fixed-term, grant-funded activities. Trustees have also set a target of 6 months, expenditure to enable them to meet the second objective of developing or expanding servIs. In addition to our unrestricted reserves, Sutton Mencap designated a significant level of funds to two specific projects, improvement to the building and the purchase of replacement minibuses. Page11 of29
Sutton Mencap Charity Company Public benefit Charity law requires that the Board of Trustees pay due regard to the public benefit guidance published by the Charity Commission and have a duty to achieve the purposes of the charitable company. In setting the charity's objectives, planning its activities and reviewing all proposed activities, the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit. The Trustees review and approve the annual budget and periodically review the financial performance and reports of the company to ensure that it is operating in a manner consistent with achieving its purposes. In addition, the Trustees are of the opinion that the policies and procedures in place are sufficiently robust to ensure Ihat the charity achieves its purpose. Page 12of29
Sutton Mencap Charity Company Responsibilities of the Trustee Board The trustees (who are also directors of Sutton Mencap for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in aGGordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees 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 company and of the incoming resources and application of reSoUrs, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP 2019 (FRS 102),. make judgements and 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 companywill continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. Exemptions from Disclosures This report has been prepared in accordance with the Special Provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by the Trustees and signed on their behalf by". Date az. 10. If tUL Date Page 13 of 29
Sutton Mencap Charity Company INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF.. SUTTON MENCAP CHARITY COMPANY (A company limited by guarantee) FOR THE YEAR ENDED 31 MARCH 2025 Opinion We have audited the financial statements of Sutton Mencap Charity Company (the 'charitable company'l for the year ended 31 March 2025 which comprise the Statement of Financial Activilies, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting PractlGe). In our opinion the financial st8tements'. give a true and fair view of the state of the charitable company's affairs as at 31 March 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended. have been properly prepared in accordance wtth 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 charitsble company in accordance with the ethical requirements that are relevant to our audit of the financial slatemenls in the UK. including the FRC'S EthiGal Standard. and we have fulfilled our other ethical responsibilities in accDrdanGe 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 lo going concern In auditing the financial statements, we have concluded that th8 trustees. us8 of tha going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfonned, 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 ability to continue as a going conrn for a period of at least bmelve months from when the financial stslements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant seclions of this report. Other information The other information comprises the information included in the trustees. report, other than the financi21 statemenls and our auditor's report thereon. The trustees are responsible for the other information contained within the trustees, report. Our opinion on the financial statements does not cover the other information and, except to the extent otheiSe 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 rinancial statements or our knowledge obtained in the course of the audit or othenNise 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 misstalement in Ihe financial statements themselves. If, based on the work we have performed, we conclude that there is a material misststement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 14 of 29
Sutton Mencap Charity Company INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF: SUTTON MENCAP CHARITY COMPANY (A Company limited by guarantee) FOR THE YEAR ENDED 31 MARCH 2025 Opinions on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the trustees, report {incorporating the directors, report} for the financial year for which the financial stslements are prepared is consistertt with the financial ststements. and th8 directors, report has b8en prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exceptlon In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2008 requires us to report to you if, in our opinion- adequate accounting records have not been kept, or returns adequate for our audit hav8 not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and r8turns' or certain disclosures of directors, remuneration specified by law are not mad8,' or we have not received all the information and explanations we require for our audit., or the trustees were not entitled to prepare the financial statements in accordance with the small companies. regime and take advantage of the small companies, exemptions in preparing the directors, report and from the requirement lo prepare a strategic report. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement on page 13. the trustees (who are also the directors of the charitable company for the purposes of cotnpany law) are responsible for the preparation of the financial st8tem8nts and for being satisfied Ihat they give a true and fair view, and for such internal control as Ihe Irustees detennine is necessary to enabl8 the preparation of financial statements that are free from matarial misstatemenl, whether due to flaud or error. In pr8paring 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 charitsble company or to cease operations, or have no realistic altemative but to do so. Audltoffs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuran about whelher the financial slatements 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 Gonducted in accordance with ISAS (UK) will always detect a material misstatem ent when it exists. Misstatements can arise from fraud or error and are considered matertal if, individually or in the aggregale, they could reasonably be expected to influence the economic decisions of users taken on the basi5 of these financial statements. Irregularities, including fraud, are instsnces of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to deteGt material misstatements in respect of irragularities, including fraud. The sp@cific procedures for this engagement and the extent to which these are capabl8 of detecting irregularitie5, including fraud is detailed below: Page 15 of 29
Sutton Mencap Charity Company INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF: SUTTON MENCAP CHARif( COMPANY (A company limited by guarantee) FOR THE YEAR ENDED 31 MARCH 2023 Auditorfs responsibilities for the audit of the financial statements . .ICont'd Enquiry of management and those Gharged with governanGe about actual and potential litigation or claims and the identification of non-compliance with laws and regulations. Reviewing minutes of meetings of those charged with governance. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with appliGgble laws and regulations. Audiling the risk of management override of conlrols, including testing joumal entries and other adjustments for appropriateness; assessing whether the judgements made in making accounting estimates are indicative of a potential blas,. and evaluating the business ratSonale of any significant transactions thal are unusual or outside the normal course of business. Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. Professional scepticism in course of the audit and with audit sampling in material audit areas. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities, including those leading to a material misstalement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the evenls and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance wlth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate 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 pemiitted 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, for our audit work, for this report, or for the opinions we have formed. //d. /* Kevin Fisher BA FCA CTA (Senior Statutory Auditor) For and on behalf of Kingston Burrowes Audit Ltd Statutory Auditors 308 Ewell Road, Surbiton, Surrey. KT6 7AL 2025 Page 16 of29
Sutton Mencap Charity Company Statement of Financial Activities and Income & Expenditure Report for the year to 31 March 2025 Restricted Unrestrlcted Funds Funds 2025 Total 2024 Total Note Income and endowments Donations and legacies 13,000 2.499 15,499 5,389 other trading activities 3,169 3,169 5,629 Investment income 25,039 25,039 19,988 Income from charitable actlvltles Grants Fees from services for childran and young people Fees from services for adults 60,857 33,000 93,857 179,143 368,911 368,911 616,521 296,709 616,521 491,628 Total Income and endowments 73,857 1,049,139 1,122,996 998,486 nditure Expenditure on raislng funds 4,607 4.607 6,796 Expenditure on charilable activities 57,339 1,052,739 1,110,078 875.270 Total ex endilure 57,339 1,057,346 1.114.685 882,066 Net incomel (expenditur8} 16,518 (8,207) 8.311 116.420 Transfers between funds Net movement in funds 17 16,518 (8,207) 8,311 116,420 Reconciliation of funds Total funds brought foward Tolal funds carried forward 120,664 137,182 621,133 741,797 750.108 625,377 741,797 612,926 The slat8ment of financial activities includes all gains and losses recognis8d in the year. All incoming resources and resources expended derive from continuing activities. The notes on pages 19 to 28 form part of the financial statements Page 17 of29
Sutton Mencap Charity Company Balance Sheet as at 31 March 2025 Company Registration Number 03915936 2025 2024 Note Fixed Assets Tangible Fixed Assets 12 63,470 27,654 Current Assets Debtors Investments Cash at Bank and in hand 13 14 106,133 342,635 344,004 792,772 92,808 172,635 548,522 813,965 Liabilities: Creditors 15 106,134 99,822 Net Current Assets 686,638 714,143 Total Assets less Current Liabilities 750,108 741,797 Funds Unrestricted Fund Designated Funds Restricted Funds 17 17 17 378,469 234,457 137,182 750,108 288,349 332,784 120,664 741,797 The financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. Approved by the Trustees on Signed on behalf of the Trustees LQL Name: Date.. Name.. Date: o/ LDIb" Page 18 of 29
Sutton Mencap Charity Company Statement of cash flows for the year to 31 March 2025 Total funds March 2025 Total funds March 2024 Note Net Cash provided by operatlng activities 20 (6.717) 70,050 Cash flows from investing activities Interest income Purchase of tangib18 fixed assets Purchase of investments 25.039 (52,840) (170,000) 19,988 {22,749) (2.635) Net cash (used in)1 provided by investing activities (197,801) (5,396) Change In cash and cash equivalents 1204.518) 64,654 Cash and cash equivalents brought fonmard 548,522 483.868 Cash and cash equival8nts carried forward 344,004 548,522 Analysis of cash and cash 8quivalents Cash at bank and in hand 344,004 548,522 The notes on pages 20 to 29 form part of the financial ststements Page 19 of 29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2025 1) Accounting Policies Basis of preparation and assessment of going concern The charity constitutes a public benefit entily as defined by FRS 102. 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 accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019. the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practi. The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional cUencY of the charity. The signrficant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. Income recognition Items of income are recognised in the financial statements when all of the following criteria are met= the charity has entitlement to the funds. any perfomiance conditions have been met or are fully within the conlrol of the charity- there is sufficient certainty that receipt of the income is considered probable. and the amount can be measured reliably. Expenditure recognition Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount can be measured reliably. Expenditure is c18ssified under the following headings- Costs of raising funds which comprises those costs associated with attracting general donations. Expenditure on charitable activities which comprises the costs of running various activities and services for the charity's beneficiaries. Expenditure includes those costs of a direct nature which can be allocated to specific activity. It also includes indirect costs. including governance costs that do not relate to a specific activity but are necessary to support them. Support costs are apportioned to each activity on the basis of the number of hours of service provided and staff time. Fund accounting Unrestricted general funds are those which are freely available for the use in furtheran of the objects of the charity and which have not been designated for specific purposes. Designated funds are unrestricted funds set aside by the trustees for specific purposes. Page 20 of29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2025 (continued) 1) Accounting Policies (continued) Restricted funds are funds which can only be used in accordance with specific restrictions imposed by the donor or which have been raised for a particular purpose. Debtors and creditors Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Financial Activities. Investments Investments held for resale or pending their sale and cash and cash equivalents with a maturity date of less than one year are treated as current asset investments. Leases Operating lease rentals are charged to the Statement of Financial Activities on a straight- line basis over the period of the lease. Depreciation Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives as per note 12. Pension scheme The charity operates a defined contribution pension scheme. Contributions payable to the scheme are charged to the Statement of Financial Activities in the period to which they relate. 2) Legal status of the charity The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £1. 3) Donations and Legacies 2025 Total 2024 Total Restricted Unrestricted Donalions 13,000 2,499 15,499 5,389 Legacies 13,000 2,499 15,499 5,389 All of the £5,389 recognised in 2024 related to restricted funds. Page 21 of 29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2025 (continued) 4) Other trading activities 2025 Total 2024 Total Restricted Unrestricted Rent received 3.900 Fundraising activities 3.169 3,169 1,729 3,169 3,169 5,629 All of the £5,629 recognised in 2024 related to unrestricted funds. 5) Investment income 2025 Total 2024 Total Restricted Unrestricted Interest received 25.039 25,039 19.988 19,988 25,039 25,039 All of the £19.988 recognised in 2024 related to unrestricted funds. 6) Grants received 2025 Total 2024 Total Restricted Unrestricted City Bridge Trust- DPI Grant in kind- LBS rent 58,857 58.857 57.143 20.000 2.000 100,000 179,143 33,000 33,DOO Gary Kesner Trust LBS - capital grant for building 2.000 2.000 60,857 33,000 93.857 Of the £179,143 recognised in 2024, £159.143 related to restrtcted funds. Page 22 of 29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2025 (continued) 7) Charitable activities 2025 Total 2024 Total Restricted Unrestricted Staff Costs (excluding fundraising and governance) HR and training costs Minibus costs 32,233 727,967 23,119 760,200 23,119 33,994 140,426 88,460 5,483 9,877 48,519 1,110,078 667,967 17,759 2,385 77,652 73,632 3,044 8,232 24,599 875,270 33,994 A¢¢ommi)dation costs 1,983 4,415 1,651 138,443 84,045 Direct project costs (excluding staff costs) Depreciation Governance costs 3,832 9,877 31,462 1,052,739 Administration and office costs 17,057 57,339 Of the £875,270 recognised in 2024, £56,703 related to restricted funds. 8) Staff costs 2025 2024 Wages and salaries Employerfs National Insurance Staff Pensions 700,883 47,140 19,810 4,771 (5,000) 767,604 631,640 41,938 18,063 (8.895) (5.000) 677,746 Holiday pay accrual Employment allowance Total employee benefits for key management personnel amounted to £163.856 (2024: £153,932) No employee earned £60,000 per annum or more. No trustee received remuneration during the year. The average number of full-time equivalent employees were: Chief Executive Officer 2025 2024 Administration and finance Children and young people's seNices Adutt services 13.1 12.6 Digitsl Paths to Inclusion Page 23 of 29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2024 (continued) 9) Net incomel expenditure for the year This is ststed after charging 2025 2024 Depreciation Independenl examination fee Audit fee 5,483 3,044 2,840 3,800 9,283 5,884 10)Trustees Emoluments & Expenses No Truslees received emolumenls or expenses during the year. Training course and trustee event expenses amounting to £863 {2023: £255) were paid on behalf of 9 trustees. 11)Taxation The Gharitsble company is exempt from corporation tax on ils charitsble activilies. Pag8 24 of 29
Sutton Mencap Charity Company Notes to the financlal statements for the year ended 31 March 2025 (continued) 12)Tangible fixed assets Leasehold Property Furniture Fittings Fixtures Office Equipment Motor Vehicle Gard8n Total Cost As at 1 April 2024 Additions 482,091 49,628 15,228 14,484 561,431 52,840 52,840 (11,541) 602,730 Disposals As at 31 March 2025 (11,541) 470,550 49,628 15,228 52,840 14,484 Depreciation At 1 April 2024 Charge for the year Disposals At 31 March 2025 455,294 48.771 217 15.228 14.481 533,774 5,483 3,615 1,651 458,909 48,988 15,228 1,651 14,481 539,257 Net Book Value Al 31 March 2025 11.641 640 51,189 63,470 At 31 March 2024 26,797 857 27,654 Depreciation rates 25 years straight line Lease period 25 years straight line Lease period 25°/o reducing balance 250/. reducing balance 10 years slraight line 13)Debtors 2025 2024 Prepayments Debtors 14,435 16.039 79.769 (3.000) 92,808 94,698 {3,000) 106,133 Less: provision for bad debts Page 25 of 29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2025 (contlnued) 14)Investments 2025 2024 Cash on deposit 342,635 172,635 342,635 172,635 15)Creditors - Amounts falling due within one year 202S 2024 Accruals 4,857 5,787 5.244 Holiday pay accrual Deferred income 14,665 2.000 23,973 69,517 12.000 18,150 49.763 Creditors Payroll Creditors 106.134 99,822 16)Obligations under lease At the 31 March 2025 the charity was committed to making the following le8se payments under non- cancellable leases Photocopler Land and Buildings 2025 Photocopier Land and Buildings 2024 2025 2024 Within one year BebNeen one and five years 1.437 33,000 165,000 1,629 1,766 5,798 More than five years Total 552,750 750,750 7,235 3,395 . The trustees of Sutton Mencap entered into a lease of 8 Stanley Park Road for 23 years from 3 September 2024 at the current rental of £33,000 per annum. Rentsl is funded via a payment from the London Borough of Sutton. Page 26 of 29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2025 {continued) 17)Movement in funds Balance 1.4.24 Income Expenditure Transfers Balance 31.3.25 Unrestricted funds General fund 288.349 1,049,139 (1,057,346) 98,327 (76,694) (21,633) 378,469 191,070 40.387 Building designated fund Minibus designated fund Bad debt designated fund Total unrestricted funds 267.764 62,020 3,000 621,133 1,049,139 3,000 (1,057,346) 612,926 Balance 1.4.24 Income Expenditure Transfers Balance 31.3.25 Restricted funds LBS building grant City Bridge Trust Gary Kesner Trust Minibus fund 100,000 10,403 100,000 17,555 58,857 2,000 3.000 10.000 (51,705) (2,000) (1,651) (1,983) 7.258 3,003 8,607 11,020 Children's play equipment Total restricted funds 120,664 73.857 (57,339) 137.182 Total funds 741,797 1.122.996 (1,114,685) 750,108 2024 Comparative infomiation for the net movem8nt in funds Is as follows: Balance 1.4.23 Income Expenditure Transfers Balance 31.3.24 Unrestrlcted funds General fund 367.153 225,000 15.000 839,343 (825,363) <92,784) 42,764 ' 47,020 3,000 288,349 Building designated fund Minibus designated fund Bad debt designated fund Total unrestricted funds 267,764 62,020 3,000 607,153 839,343 (825,363) 621,133 Page 27 of 29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2025 (continued) Balance 1.4.23 Income Expendlture Transfers Balance 31.3.24 Restricted funds LBS building grant City Bridge Trust Gary Kesner Trust Minibus fund 100,000 57,143 2.000 100,000 10,403 7,963 (54,703) (2,000) 7,258 3,003 7.258 3.003 Children's play equipment Total restricted funds 18,224 159,143 (56,703) 120,664 Total funds 625.377 998.486 (882,066) 741,797 18)Analysis of net assets between funds Restricted funds Unrestricted funds Total funds Tangible fixed assets Net current assets 63,470 63,470 137,182 137,182 549,456 612,926 686,638 750,108 Funds are used for the provision of services and for works to the property that is used in the provision of these seNices. 2024 Comparative infomiation for the net movement in funds is as follows: Restrlcted funds Unrestricted funds Total funds Tangible fixed assets Net current assets 27.654 593,479 27,654 714,143 741,797 120,664 120,664 621,133 Page 28 of 29
Sutton Mencap Charity Company Notes to the financial statements for the year ended 31 March 2025 (contlnued) 19)Pension commitments The charity operates a defined conlrtbution pension scheme. The assets of the scheme are held separately from those of the Charily in an independently administared fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £19,810 (2024: £18,024) At 31 March 2025 £2,936 of conlributions were payable and included in creditors. (2024: £2,874) 20)Reconciliation of net movement in funds to net cash flow from operating activities 2025 2024 Net movement in funds Add back depreciation charge Add back depreciation on disposal Deduct interest income shown in investing activiti8S Decreasel (increase) in debtors (Decreasey increase in creditors 8,311 5.483 11.541 (25,039) (13,325) 6.312 116,420 3,044 (193,988) 20,0274 9,952 70,050 Page 29 of 29