Sandwell Community Caring Trust (A Company Limited by Guarantee) Annual Report and Financial Statements Year ended 31 March 2025 Charity number '. 1086162 Company Number . 03286106 Feztons Feltons Chartered Accountsnts Birmingham B13JR
Sandwell Community Caring Trust (A Company Limited by Guarantee) Report and financial statements Year ended 31 March 2025 Contents Page Reference and administrative details Report of the trustees Independent auditor's report on the financial statements Statement of financial activities incorporating income & expenditure account 13 Balance sheet 14 Cash flow statement 15 Notes forming part of the financial statements, incorporating Statement of accounting policies 16 Other notes to the financial statements 22
Sandwell Community Caring Trust (A Company Limited by Guarantee) Reference and Administrative Details Trustees Mrs S A Rogers Mr G Walker Mrs M Hall Mr A S Coley Ms K L Jones Company secretary Mrs T D Graham Key management personnel Andrew Coley Chief Executive Registered office Trigate Building Hagley Road West Oldbury England B68 ONP Charity number 1086162 Company registration number 03286106 Auditor Feltons 8 Sovereign Court 8 Graham Street Birmingham B13JR Bankers Barclays Bank plc 47 High Street Dudley West Midlands DY11PP Solicitors Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Page 1
Sandwell Community Carinq Trust (A Company Limited by Guarantee) Report of the trustees Year ended 31 March 2025 The Trustees present their report and the financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 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 published in October 2019. Trustees of the charity Details of the trustees who served during the year and to the date these accounts are approved are included in the Reference and Administrative details on page 1. Objectives and activities The charity's objectives are to promote the relief of and provide relief, support and assistance to individuals who, by reason of old age, mental illness or physical or learning disabilities, require special care and attention. To promote, in particular, the relief of and support and assistance to beneficiaries who are resident in or associated to Sandwell MBC, Walsall MBC, Dudley MBC and Torbay Care Trust or any of its neighbouring councils. There has been no change in these during the year. In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit- running a charity (PB),. Whilst the adverse consequences of the Covid-19 pandemic have gradually subsided, Covid-19 continues to pose challenges to the adult social care sector. Despite this, the trust has managed to meet the objectives highlighted above. Throughout the year, the trust has successfully kept its residents, tenants and employees safe. The principal activity of the trust is to provide health and social care services to older people and adults with learning and or physical disabilities. The trust currently provides residential care for over 100 older people, 86 of whom are suffering with dementia, 150 days of day care each week for adults with profound learning and or physical disabilities and care and support to over 280 adults with learning disabilities in supported living. As reported in the previous years, financial statements, the pandemic had a detrimental impact upon occupancy, particularly within residential care, which contributed to a deterioration in financial performance. However, on a positive note, the recovery in occupancy levels within the residential homes in the latter part of that financial year continued in the following years, including the financial year ended 31 March 2025. One of the continuing major objectives during the financial year has been to fully understand the implications of continuing austerity on Local Authority income and the impact that this would have on the fees paid for the delivery of Adult Social Care. In addition, the charity will need to continue to clarify the implications of the continued rise in the National Minimum Living Wage, particularly in the context of ongoing austerity. There is no restriction on who can access the services provided by Sandwell Community Caring Trust. All the care packages which are provided are based on the clinical and social needs of each individual. Page 2
Sandwell Community Carinq Trust (A Company Limited by Guarantee) Report of the trustees (continued) Year ended 31 March 2025 Objectives and activities Icontinued) Admission to Sandwell Community Caring Trust's services normally takes place after a multi4isciplinary needs assessment, which involves the prospective service user and their family. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The services provided by Sandwell Community Caring Trust are compliant with the Commission for Racial Equalities Code of Practice. Due to the nature of the services that it provides, the charity does not rely on the use of volunteers. Strategic report The description under the headings "Achievements and performance" and Financial review, meet the company law requirements for the Trustees to present a strategic report. Achievements and performance The trust has continued to maintain and fulfil its contractual obligations and achieved its targets, securing ongoing provision for the care of vulnerable people. The staff turnover for this year was 18 / (2024 . 170/0) which was an increase of 1 percentsge point compared to last year. Staff turnover not only has a financial impact on the Trust but also impacts on the quality of care that is provided to its service users. These levels have remained constant over the years which contribute to a consistent happy work force that provide a high quality of care to the vulnerable people that deserve to receive continuity from the service they need. Despite the difficulties experienced during the pandemic, the trust successfully maintained the standard of care provision without recourse to the use of staffing agencies and continues to do so. The quality of the care that the trust provides is measured and regulated by the Care Quality Commission and is reflected in their inspection reports on the trust's services. Financial review (including reserves policy) The company's Balance Sheet as detailed on page 14 shows that the funds before the 2025 defined benefit pension scheme liability amounted to £8,430,738 (2024 £8,736,631). The closing position including the pension scheme liability as at 31 March 2025 was £8,430,738 {2024 - £8,736,631). The Statement of Financial Activities on page 13 of these financial statements shows surplus income of £83,107 (2024 - £448,443) for this financial year. The Balance Sheet on page 14 of these financial ststements shows net current assets of £530,614 (2024 £1,701,804)- Page 3
Sandwell Communitv Carinq Trust (A Company Limited bv Guarantee) Report of the trustees (continued) Year ended 31 March 2025 Financial review {including reserves policy) (continued) The Trustees are reassured that the Charity continues to meet its loan obligations and working capital requirements, when due, from its cash at bank balances. Having considered the above, in conjunction with projections for the year ending 31 March 2026, at the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, as confirmed in note 1.2 on page 16, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. It is the policy of the charity that unrestricted funds before the defined pension scheme liability, which have not been designated for a specific use, should be maintained at a level equivalent to 10 % of incoming resources from charitable activities. The Trustees considers that reserves at this level will ensure that, in the event of a significant reduction in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. Having developed a clear understanding of the implications of austerity on local authority contracts and the impact of the continued rise in the National Minimum Living Wage, as reported in previous years, the charity introduced changes in the terms and conditions of its employees that reflect the new financial environment within which it operates. These changes were implemented in October 2018 and the Charity continues to assess the impact of these changes and review its financial position, in the context of its operating environment, on a regular basis. As with previous financial years. the increase in weekly fees and hourly rates received for care provided. Investment powers and policy The charity currently has no long-term investments but takes advantage of short-term cash flow situations by placing funds with institutions approved by the Board. Risk management The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to these major risks. The Trustee Board is responsible for overseeing the charity's risk management activities. Detailed consideration of risk is delegated to the Senior Management Team, who are continually reviewing this matter and reporting thereon to the Trustee Board. Through the risk management process established for the charity, the Trustees are satisfied that the major risks have been identified and processes for addressing them have been implemented. It is recognised that any control systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. In previous years the defined benefit pension scheme deficit has had a significant impact on the net assets of the trust and is based on the valuation provided by the scheme's actuaries in accordance with Generally Accepted Accounting Practice. The key risk to the trust surrounding such a pension deficit is the funding of future contributions for both Schemes in place. This is mitigated by the fact that both schemes no longer admit new members agreement with Sandwell MBC that any employer contributions above the agreed 17.9 % relating to the EMI Scheme will be paid by the council although the current employer contributions are 11.5 % for this particular scheme. Furthermore, when an employer applies for admitted body status, the WMPF requires a guarantor or a Bond to cover any costs in the event of insolvency. The WMPF has procedures in place to mitigate the risks of rogue employers. Page 4
Sandwell Community Carino Trust (A Company Limited by Guarantee) Report of the trustees (continued) Year ended 31 March 2025 Risk management (continued) It should be noted that as at 31 March 2025, there was deemed to be a defined benefit pension surplus of £10.35m (2024 - £8.42m). However, under FRS 102, a pension scheme surplus is only recognised as an asset in the Balance Sheet to the extent that the employer can recover a surplus through reduced contributions or refunds. Therefore, in accordance with these requirements, the defined benefit pension liability is shown as £nil on the Balance Sheet. See further details at note 24. The Trustee Board is aware of the combined risks posed by austerity on local authority contracts and the increase in the National Minimum Living Wage (NMLW). These risks have been compounded by the announcement of an increase in the Employer NIC (ENIC) rate and the lowering of the ENIC threshold in the Chancellor's October 2024 budget from 1st April 2025. It has been calculated that, in common with most care providers within the adult social care sector, the combined impact of the increase in the NMLW and ENICS will be a 10 % increase in employment costs for the 2025-26 financial year. As local commissioner fees received have not increased by a commensurate percentage, this represents a significant risk for the sector as a whole. The Trustee Board has formulated clear plans designed to address these risks and ensure the continued sustainability of the charity. The Trustees previously reported on the outcome of a CQC inspection of its supported living services in July 2021. Plans for future periods The trust is always looking towards the future, seeking out new prospects and contracts to enable them to continue to deliver services to those most needy. The trust is able to take advantage of any opportunities for expansion particularly through the transfer of providers from local authorities, as austerity and budget deductions fully impact on local authority expenditure on adult social care. structure, governance and management Governing document The charity is a charitable company limited by guarantee and was set up on 1 April 1997. It is governed by a Memorandum and Articles of Association. The Trustees, who are also the directors for the purpose of company law, and who served during the year Mrs S A Rogers - Mr G Walker Mrs M Hall Mr A S Coley Ms K Jones Appointment of trustees The Board of Trustees may fill vacancies arising during the year by appointing Trustees themselves, but any Trustees so appointed shall retain their office only until the next Annual General Meeting when they shall be eligible for re-election. Page 5
Sandwell Community Carinq Trust IA Company Limited by Guarantee) Report of the trustees (continued) Year ended 31 March 2025 Appointment of trustees (continued) Any appointments rnade are with due regard to the broad range of relevant skills required by the Board of Trustees and the specialist skills and experience offered by the applicant Trustee. None of the Trustees has any beneficial interest in the company. All the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up. Organisation The governing body of the charity is the Board of Trustees which comprises 4 members and has met 4 times a year together with the Senior Management Team. The Chief Executive has been appointed by the Trustees to manage the day-to-day operations. Trustee induction and training Individual Trustee training is undertaken by Trustees on a need basis but training for the full Board of Trustees and Senior Management Team takes place at least annually and focuses on governance issues. Related parties and co-operation with other organisations None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager of the charity with a client or supplier must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. Related party transactions in the current year are described in notes 10 and 25 to the accounts. Pay policy for senior staff The Trustees are responsible for determining the pay and conditions of key management personnel. This is done in consultation with an external human resources company who provide advice on comparative positions across the sector. The Chief Executive Officer is responsible for recommending any changes in pay and conditions of the remainder of the paid service. Employee involvement The charity's policy is to consult and discuss with employees. through unions, staff councils and at meetings, matters likely to affect employees, interests. Information of matters of concern to employees is given through information bulletins and reports, which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance. Page 6
Sandwell Community Carinq Trust (A Company Limited by Guarantee) Report of the trustees (continued) Year ended 31 March 2025 Disabled persons Applications for employment made by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. Auditors A resolution proposing that Feltons be reappointed as auditors of the company will be put to the members. Disclosure of information to auditor We, the directors of the company who held office at the date of approval of these financial statements, as set out above, each confirm, so far as we are aware, that.. there is no relevant audit information of which the company's auditors are unaware., and we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The Trustees, report, including the Strategic Report, was approved by the Board of Trustees. Page 7
Sandwell Communlty Carinq Trust IA Company Llmited by Guarantee) Statement of.trustses'"ro5ponsibilities Year ended 31 March 2025 The Iruslees (who are also diree1015 of Sandwell Communlly Caring Trusi for tho purposes ol company lawl are responsibl¢ for preparing the Trustees. Annual Report IiAcliJding the Slralegic Réport) and the frnancial sleiemèrils in accordancè ivllh ¢ipplicable law and United Kingdofft AGcounling Slandards (United Kingdom.Generally Accepled Accounting Practice}. Cornpany law requlros. the trustees lo prepare fi'nancial slalernen15 for each finanLial 5I08r. Under cornpany law th Ii'uslees must i)ol approve the financial slalemenls unless they are 681i8fi.ed thal Iliey give a true and fair view OT the slate of affair5 of Ihfj charitabl$ company and of the inGoming resources and application ol resources, including. Ihg ineonie and expendituré, of the cl)ariiablE company for Ihal period. In preparing these linanGi81 slalements, the triislees are required lo.. select suitable acrounling policies and then apply11)erri con¥islenlly'. observe the methods and prrnciples in Ilipx Charitie5 SORP 2019 IFRS 1021-, make judgeiTren15 and esllmales that are reasonable and pVtJdenl', slate iyhelher applicable UK Accounting Standards have been lollowed, subject lo any material departure5 disclosed and eKplained in Ihe rinancial.siatemellls.. prepare the Tinancial slalemenls on the going coneein basis unles5 11 is inappropriate lo presumts that Ilie charil¢ible company will continue in operation. The Iruslees are responsible lor keepiog adequate accountsng records that disc105e will) reasor)able accuracy al any lime the financial pog11ion ol the charitable company and enable Ihp.m lo ensure th81 the financial statemen15 comply 'Ith the Compani&s Act 20DS. They a also responsible for safeguarding the assets of the Charitablo conipany 8nd hence for taking reasonable steps for Ilie preijenlion and delgclion of fraud and Oiher irregularities. In so far as the Irusleos are aware: thor? is no relgvanl audit information ol kvhich the charilablc. company's 8udilor is unaware,. Ilie Ir115tees have taken all steps that they ought. lo have Èken lo make themselves aiNare of any relevan audit inTormalion and to es12blish ;hal the auditor 15 aivare of thaf infTh"malion. Mi's M Hall Chair Dated-. - l.i./.ii.l..ZDèJ....... Page 8
Independent Auditor's Report to the Trustees of Sandwell Community Caring Trust (A Company Limited by Guarantee) Opinion We have audited the financial statements of Sandwell Community Caring Trust (the '¢haritable company,) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements give a true and fair view of the state of the charitable company's affairs as at 31 March 2025, 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 with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK} {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may Gast significant doLrbt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial stalements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the trustees 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 nol cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Page 9
Independent Auditor's Report to the Trustees of Sandwell Community Caring Trust (A Company Limited by Guarantee) (continued) Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misststed. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Cornpanies Act 2006 In our opinion, based on the work undertaken in the Course of the audit= the information given in the Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial statements., and the Trustees, Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the lighl of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have nol identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters in relation lo which the Companies Acl 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or the financial statements are not in agreement with the accounting records and returns- or certain disclosures of trustees, remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit; 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 Trustees, Report and from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the trustees, responsibilities ststemenl (set out on page 8}, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the truslees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Page 10
Independent Auditor's Report to the Trustees of Sandwell Community Caring Trust (A Company Limited by Guarantee) (continued) Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in Ihe aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: We reviewed the company's control and risk management procedures and planned our work based on our assessment of those controls and procedures- This review included an assessment of the risk of material misstatement due to errors, fraud and management override of controls for all material areas in the financial statements- We made enquiries of management and the company's lawyers regarding any actual or potential litigation andlor claims-, Financial ststements disclosures were reviewed and checked for compliance with applicable laws- Detailed testing was conducted on balarsces and transactions including unusual items and those of individual significance to the financial statements- Data analytics were used in order to identify unusual or significant trends,. Communications with management and those charged with governance regarding relevant matters was undertaken throughout the audit and on completion. 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 misstatement 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 events 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilites. This description forms part of our auditor's report. Page11
Independent Auditor's Report to the Trustees ot Sandwell Community Caring Trust (A Company Limited by Guarantee) {continued) Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. David W Farnsworth FCA {Senior Statutory Auditor) For and on behalf of Feltons. Statutory Auditor 8 Sovereign Court 8 Graham Street Birmingham B13JR Date .' as I laoas Page 12
Sandwell Community Caring Trust (A Company Limited by Guarantee) Statement of Financial Activities for the year ended 31 March 2025 Restricted Restricted Unrestricted pension general funds fund funds Total 2025 Total 2024 Notes Income Donations and legacies Income fmm charitable activities.. Residential and day care servi$ 15,318 15.318 30,326 16,580.258 16,580,258 16,154,478 Investment income 9,695 9,695 9,500 Total income 16.605,271 16,605,271 16,194.304 Expenditure Charitable activities.. Operational and support Costs Other costs.. Financing costs Exceptional costs 16,280,576 (389,000) 15,891,576 15,510,703 12 26 205.588 425,000 205.588 425,000 235,158 Total expenditure 16.911.164 (389.000) 16,522,164 15.745,861 Net incomellexpenditurel before transfers (305.893) 389,000 83,107 448.443 Gross transfers between funds 373.393 {373,393) Net incomellexpenditure) after transfers 67,500 389,000 (373,393) 83,107 448,443 other recognised gainslllossesl Actuarial gainsl(lossesl on defined benefit pension schemes 24 (389.000) (389.000) (282,000) Net movement in funds 67,500 {373.393) (305,893) 166,443 Reconciliation of funds Total funds brought forward 19 8,363,238 373,393 8.736.631 8,570.188 Total funds carried forward 8.430,738 8,430,738 8.736,631 All income and expenditure derives from continuing activities. The statement of financial activities includes all gains and losses recognised during the year. Page 13
sand.wèll Commu11ily Caring Trust (A Company Liniited by Guarant@el Company Number: 0328610$ Balance Sl)6et as al 31 Wlarch 2025 I Charlty number: 1086162 2025 2024 Note5 Fixe¢ 85gels Tanglblg assets 1.3 10205,156 9.520,085 Currerit.assetg Debtor Cash al Dank and Iri Iiand 14 1,fj60,807 7,181,870 2.250.622 1,962,.929 1,497,826 3,460,755 Creclitors: arnoiints.falling dLie wlthln one year 15 1.120,008 1.758,951 Net current assetsl.Illabilitie51 Total assets less curront. liabilltl&s JO.614 1,701.804 10.735.770 11,221,889 CredStors: amounts falling du after more than onp year 16 12,305,032) 12.48&.2581 Net as3ets excluding P(4nsion liability 8,430.738 '8,'7aa'.631 Defined beiiefil pension liability Net assets 8.430.738 8.736.631 Fund5 of tlie charlty- Restricted funds G&neral fund 373,393 Uiireslrtcted funds Gènei?I fund Pension fuyd 19 19 8.430,738 8,3e3,238 8,430,738 8.363.238 Total funds 8.430,738 8.73S,631 itteso accounls have been prepared iii accordance %vllh the Special provislons ol Part 15 Gl the Companles Act 200e'reJaling 10 smell componles. Tlie noles oli pagès 16 10 34 forni part or Ihaso acounls. The yinan£lal sta18rnenls were Ip.piov8d by Ihg board ol liuslee5 vn and iYetE signeLI on 11$ b9half .Iis M Hall Chair Page 14
Sandwell Community Caring Trust (A Company Limited by Guarantee) Statement of cash flows for the year ended 31 March 2025 Notes 2025 2024 Cash flow from operating activities 22 598,792 694,706 Net cash flow from operating activities 598,792 694,706 Cash flow from investing activities Payments to acquire tangible fixed assets Interest received {699,221) 9,695 9,500 Net cash flow from investing activities (689,526) 9,500 Cash flow from financing activities Repayment of bank loans 17 {225,277} (520,237) Net cash flow from financing activities (225.277) (520,237) Net increase l (decrease) in cash and cash equivalents {316,011) 183,969 Cash and cash equivalents at 1 April 2024 1,497.826 1,313,857 Cash and cash equivalents at 31 March 2025 1,181,815 1,497.826 Page15
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 1. Accounting policies General information Sandwell Community Caring Trust is a charitable company limited by guarantee. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are to provide health and social care services to older people and adults with learning and or physical disabilities. 1.1 Basis of preparation The charity constitutes a public benefit entity 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 Gharities preparing their accounts in accordance 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 Practice. The significant 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 othejwise stated. 1.2 Going concern The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for a period of 12 months from the date of authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. The charity is Conscious of continuing cost pressures across the sector and will therefore continue to restrict costs as far as possible, whilst seeking new income sources that are consistent with its charitable objectives. The ¢harity will also continue to lobby local authorities regarding a sustainable level of care fees. 1.3 Funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Page 16
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 1. Accounting policies (continued) 1.4 Income recognition All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. Residential and day care services Residential and day care service income is included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt ils recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Donations Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid or payable by the bank. Other income Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the goods have been provided or on completion of the service. 1.5 Expenditure recognition All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to Ihe category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is ¢ategorised under the following headings: Charitable activities These are costs incurred in activities undertaken to further the purposes of the charity and their associated support costs. Governance costs These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including strategic management and trustees, meetings and reimbursed expenses. Irrecoverable VAT is Charged as an expense against the activity for which expenditure arose. Page 17
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 1. Accounting policies (continued) 1.6 Allocation of support costs Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 8. 1.7 Tangible fixed assets Tangible fixed assets are stated al cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset on a systematic basis over its expected useful life as follows.. Freehold and leasehold property Leasehold improvement Motor vehicles Fixtures and fittings not depreciated 200A on a straight line basis 200/0 on a straight line basis 20 /0 on a straight line basis Land and buildings and long leasehold properties are not subject to depreciation as their residual values are considered to be equal to their cost. This is on the basis that significant ongoing repairs and maintenance are undertaken to preserve their condition and value. At each reporting date, the charity reviews the carrying amounts of its tangible assets to 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 any impairment loss. 1.8 Cash at bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 1.9 Financial instruments The Charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all its financial instruments. Financial instruments are reGognised in the charity's Balance Sheet when the charity becomes party to the contractual provisions of the instrument. Page 18
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial ststements for the year ended 31 March 2025 (continued) 1. Accounting policies (continued) 1.9 Financial instruments (continued) Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest rate method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities. including Creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised ¢ost using the effective interest rate method. Trade creditors are obligations to pay for goods or serviGes that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire, are discharged or cancelled. 1.10 Operating leases Rentals payable under operating leases are charged to the SOFA on a straight line basis over the period of the lease. 1.11 Taxation The charity is an exempt charity within the meaning of schedule 3 of the Charities A¢t 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of charitable company for UK corporation tax purposes. Page 19
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 1. Accounting policies (continued) 1.12 Pension benefits During the year. the charity operated LGPS defined benefit pension schemes and a defined contribution pension scheme. Payments to defined ¢ontr¢bution retirement benefit schemes are charged as an expense as they fall due. Neither of the defined benefit schemes admit new members. New members of staff are admitted into the defined contribution scheme on their employment with the charity. The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method and is based on actuarial advice. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred. The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in incomel(expenditure) for the year. Remeasurement changes comprise actuarial gain and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods. The net defined benefit pension asset or liability in the Balance Sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate on high quality corporate bonds) less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information and, in the case of quoted securities, is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the sGheme. 1.13 Employee benefits The cost of any unused holiday entitlement is reGognised in the period in which the employee's services are received. Termination benefits are employee benefits provided in exchange for the termination of an employee's involvement in the charity. Redundancy costs are recognised immediately once the charity is demonstrably committed to terminate employmenl. Page 20
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 2. Critical accounting estimates and judgements In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from 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 from these estimates. The estimates and undedying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affe¢ts both current and future periods. Critical judgements Recoverability of trade debtors A provision for doubtful debtors from operations is set up when the likelihood of recovering the debt 15 diminished. The level of provision will be based on any current repayment plan entered into and which is being adhered to by the debtor, together with an estimate of the likelihood of the amounts being fully recovered. Key sources of estimation uncertainty Defined benefil pension scheme The charity has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors including life expectancy, asset valuations and the discount rate on corporate bonds. Management estimate these factors in determining the net pension obligation in the Balance Sheet. The assumptions reflect historical experience and current trends. See note 24 for the disclosures relating to the defined benefit scheme. Page 21
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 3. Prior year Statement of Financial Activities (year end 31 March 2024) Restricted pension fund Restricted general funds Unrestricted funds Total 2024 Income Donations and legacies Income from charitable activities Investment income Total income 30,326 16,154.478 9.500 16.194,304 30,326 16,154,478 9.500 16,194.304 Expenditure Charitable activities Other Total expenditure 15,792.703 235.158 16,027,861 (282,000) 15,510,703 235,158 15,745.861 282,000) Net incomel{expenditurel before transfers 166,443 282,000 448,443 Actuarial gain on defined benefit pension schemes (282.000) (282,000) Net movement in funds 166.443 166.443 Reconciliation of funds Total funds brought fonmard 8.196.795 373.393 8,570,188 Total funds carried forward 8,363,238 373.393 8,736,631 4. Donations and legacies Unrestricted Restricted funds funds Total 2025 Totsl 2024 Donations and gifts Grants 15,318 15,318 19,187 11,139 30.326 15,318 15,318 S. Income from Charitable activities Restrictsd pension fund Restricted general funds Unrestricted funds Total 2025 Total 2024 Residential and day care services 16,580.258 16,580,258 16.154,478 16,580,258 16.580,258 16,154,478 Page 22
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 6. Investment income Unrestricted Restricted funds funds Totsl 2025 Total 2024 Deposit account interest 9,695 9,695 9,500 9,695 9,695 9,500 7. Expenditure on charitable activities Residential and day care services Total 2025 Total 2024 Operational and support costs Staff costs Heal and light Rent. rates and insurance Telecommunications Other staff costs Motor and travel Repairs. renewals and equipment hire Cleaning. waste and pest control Other office costs and sessionals Printing. postage and stationery Provisions Depreciation Support costs (see note 8) Governan costs (see note 8) 11,428.723 227.284 1.220,512 246 69.898 52.657 365,892 144,829 29,818 11,523 326.858 14,150 1,945,517 53,669 11,428,723 227,284 1,220,512 246 69,898 52,657 365,892 144,829 29.818 11,523 326,858 14.150 1.945.517 53.669 10,633,340 174,581 1.003,611 7,044 21,646 60.450 539.707 142.648 84.880 6.187 364.159 2,428,292 44,158 15,891,576 15.891.576 15,510,703 Total expenditure on charitable activities was £15,891.576 (2024 - £15,510,703) of which £15.891,576 {2024 £15,510,703) was unrestricted and £nil (2024 - £nil) was restricted. Page 23
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 8. Analysis of support and governance costs Basis of allocation General support Governance function Total 2025 Total 2024 Staff costs Heat and light Rent. rates and insurance Telecommunications Other staff costs Motor and travel Repairs, renewals and equipment hire Cleaning, waste and pest control Other office costs and sessionals Printing. postage and stationery Provisions Audit and accountancy SeNiS Legal and other professional Staff time Usage Usage Usage Usage Usage Usage Usage Usage Usage Usage Governance Governance 986,178 986,178 1,111,220 10.694 366,929 38,208 182,337 33,357 320,580 55,536 63,645 56,872 320,580 55,536 63,645 56,872 72,490 72,490 157,720 14,032 348.712 24,787 2.685 14,032 348,712 24,787 2,685 21,300 32,369 1,999,186 81.134 417.235 24.011 5.447 40.110 4.048 2,472.450 21.300 32.369 53.669 1,945.517 9. Net incomel(expenditure) for the year Net income l (expenditure) is stated after charging l (crediling)= Total 2025 Total 2024 Operating lease rentals Office equipment Premises Bank interest payable Auditors remuneration 32,092 1,264,219 205.588 15,000 106,222 1.066.246 235.158 15,000 The auditors remuneration amounts to an audit fee of £13.500 {2024 - £13,500) and other services of £1,500 (2024- £1,500). 10. Trustees and key management personnel remuneration and expenses During the year, no trustees received any remuneration or other benefits for their role as trustees {2024 - none). A Coley received remuneration in the year of £99,940 (2024 - £98.000) paid to him for his role as Chief Executive Officer. No trustee was reimbursed expenses during the year {2024 - £nil). The charity considers its key management personnel to comprise of the Chief Executive Offir. The total amount of employee benefits received by key managemenl personnel was £99.940 {2024 - £98,000). Page 24
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 11. Analysis of staff costs and numbers a) Staff costs . Total 2025 Total 2024 Wages and salaries Social security costs Other pension costs 11,433,565 991,767 10.431) 12,414,901 10,727.813 891.151 111.828 11,730.792 13.768 11,744.560 Severance payments 12,414,901 Included in other pension costs above is a net credit of £389,000 (2024 - £282.000). which has been recognised in respect of the 2025 Pension Expense Calculation prepared by the Actuary for the Local Government Pension Scheme. This credit comprises a shortfall in service cost contributions of £17,000 {2024 - £31.0001. interest costs of £406.000 (2024 - £313,000), and no administration costs in either year. bl Staff numbers . The average monthly number of employees during the year were as follows= 2025 Number 2024 Number Care Finance and administration 509 12 521 475 13 488 c) Higher paid staff The number of employees whose employee benefits (excluding employer pension costs) exceeded £60.000 were.. 2025 Number 2024 Number £90,001- £100.000 12. Other costs Total 2025 Total 2024 Finance costs 205,588 235,158 Page 25
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 13. Tangible fixed assets Freehold and leasehold Leasehold property improvements Motor vehicles Fixtures and fittings Total Cost At 1 April 2024 Additions Disposals 9,520,085 550.000 9,520,085 699,221 11,644 11,195 126.382 Al 31 March 2025 10.070,085 11.644 11,195 126.382 10,219.306 Depreciation At 1 April 2024 Charge for the year Released by disposals 1,013 282 12,855 14,150 At 31 March 2025 1.013 282 12.855 14,150 Net book values At 31 March 2025 10,070,085 10,631 10.913 113,527 10,205.156 At 31 March 2024 9,520,085 9,520.085 Freehold land and buildings with a carrying amount of £7.467,081 12024 - £7,467.081) have been pledged to secure the Unity Trust loan. Certain properties ale also subject to legal charges in favour of Barclays Bank plc as security for the charity's overdraft facility. Further details are provided in note 17. Depreciation on freehold and leasehold property is not provided as the trustees feel Ihat significant replacement and maintenance works are carried out on an annual basis to the extent that the residual value is considered lo be equal to the cost. 14. Debtors Total 2025 Total 2024 Debtors from operations Prepayments and accrued income Other debtors 902,236 149,069 17,502 1.654,169 260,837 47,923 1,068,807 1.962,929 Page 26
Sandwell Community Caring Trust {A Company Limited by Guaranteel Notes to the financial statements for the year ended 31 March 2025 (continued) 15. Creditors - amounts falling due within one year Total 2025 Total 2024 Creditors from operations Taxation and social security Accruals and deferred income Bank loans Other creditors 141,460 185,358 1,171,635 175,521 46.034 1,720,008 305,875 199,307 975,110 220,572 58,087 1.758,951 Deferred income Deferred income brought forward Resources deferred in the year Amounts released from previous years Deferred income carried forward 127,866 363,728 127,866} 363,728 186,223 127,866 {186,2231 127,866 At the balance sheet date. the charity was holding funds received in advance for a residential and day care fees. 16. Creditors - amounts falling due after more than one year Total 2025 Total 2024 Bank loans 2,305.032 2,485.258 17. Loans and overdrafts Total 2025 Totsl 2024 Bank loans 2,480,553 2.705,830 Payable within one year Payable after more than one year 175,521 2,305,032 2,480,553 220,572 2.485,258 2.705,830 The loans are secured by fixed charges over the specific properties to which they relate. One loan facility is held with Unity Trust Bank and was originally due to mature within one year of the reporting date. However, negotiations to refinance the facility are ongoing. and the lender has indicated that it is not presently their intention to withdraw this funding. The average interest rate on this facility during the year was approximately 7.96 /0. Wlth total interest charged of £193.437, presented within finance costs (see note 121. There are no financial covenants allached lo this facility. Details of associated security are disclosed in note 13. Page 27
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 17. Loans and overdrafts {continuedl The second loan is a Coronavirus Business Interruption Loan Scheme {CBILS) facility, which carries a fixed interest rate of 7.50/0 and is due to mature in November 2025. Interest charged during the year amounted lo £12,151 and is also included within finance costs (see nole 121. There are no financial covenants associated with this loan. The charity has an overdraft facility of £500,000 with Barclays Bank plc. This facility is secured by a debenture, a limited guarantee of £400.000 provided by the Department for Energy Security and Net Zero daled 26 November 2020, and legal charges over certain properties held by the charity. At the year end, no amount was drawn down on this facility. 18. Commitments under operating leases At 31 March 2025. the charity was committed to making the following payments under non- cancellable operating leases Total 2025 Total 2024 Within one year Within two to five years inclusive In over five years 1,335,954 4,755.553 17,074,942 23,166,449 1.332,217 4.788,621 18.102,072 24.222,910 19. Analysis of funds Balance at 1 April 2024 Gains losses and transfers Balance at 31 March 2025 Incoming resources Resources expended Restricted funds Alsop House Pension 373,393 (373.393) (389.000} (762,393) 389,000 389,000 373,393 Unrestricted funds General fund 8,363,238 8,363,238 16.605,271 (16,911,164) 16,605,271 (16,911,164) 373.393 373.393 8,430,738 8,430,738 Totsl funds 8,736,631 16.605.271 {16,522,164) 389.000 8,430.738 Page 28
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 19. Analysis of funds (continued) Name of fund Description, nature and purpose of fund Restricted general fund Money given to the charity where the donor requires that a grant or donation be spent for a specific project. Funds relating to Alsop House were originally received from the National Lollery Community Fund. with a condition that 92/0 of the asset value would be repayable to the Fund in the event of disposal prior to 1 February 2025. As this date has now passed and the property has not been disposed of. there is no longer any repayment obligation and these funds have been transferred to the unrestricted fund. Unrestricted general fund The free reserves of the charity which are not designated for particular purposes. 20. Analysis of net assets between funds Fund balances at 31 March 2025 are represenled by.. Restricted pension fund Restricted general funds Unrestricted funds Total funds Tangible fixed assets Current assets Current liabililies Long term liabilities Total net assets 10,205,156 2,250,622 (1.720,008) 2,305,032) 8,430,738 10.205,156 2,250.622 {1,720,008) {2.305.032) 8,430.738 Comparative information in respect of the preceding period is as follows-. Restricted pension fund Restricted general funds Unrestricted funds Total funds Tangible fixed assets Current assets Current liabilities Long term liabilities Totsl net assets 9.146.692 3.460,755 (1.758,951) {2.485.258 8.363.238 373.393 9,520.085 3,460.755 (1,758,951) 2,485.258) 8,736.631 373.393 Page 29
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 21. Financial commitments, guarantees and contingent liabilities In the 2017-18 financial year, the charity entered into a lease with Real Estate Investors plc and Sandwell Valley School lo act as the guarantor of the rent should the tenant (being Sandwell Valley School) fail to pay. The lease runs from 29 September 2016 to 28 September 2041 with a rental charge of£120,000 plus VAT per annum. 22. Reconciliation of net incomel{expenditurel to net cash flow from operating activities Total 2025 Total 2024 Net incornel(expenditure) for the year Depreciation Interest receivable Defined benefit pension scheme cost less contributions payable (note 24) Defined benefit pension scheme finance cosV(income) (note 24) Defined benefit pension scheme unfunded benefits paid (Increase) I decrease in debtors Increase l (decrease) in creditors 83.107 14.150 (9.6951 25.000 (406.000) {8,000) 894,122 6,108 448,443 (9,500) 39,000 (313,0001 18,000) 100,805 436,958 Net cash flow from operating activities 598.792 694,706 23. Analysis of changes in net {debt)Ifunds At1 April 2024 Cash flows At31 March 2025 Cash al bank and in hand 1,497,826 (316.011) 1,181,815 Loans falling due within one year Loans falling due after more than one year (220,572) (2.485,258) 45.051 180.226 (175.521 } {2,305,0321 (1.208.004) {90,734} {1.298.738) 24. Retirement benefit schemes Defined contribution schemes The charity operates a defined conlribulion pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £253,374 (2024- £257,936). Page 30
Sandwell Community Caring Trust (A Company Limited by Guarantee Notes to the financial statements for the year ended 31 March 2025 (continued) 24. Retirement benefit schemes (continued) Defined benefit schemes The charity operates a defined benefit pension plan for qualifying employees providing benefits based upon final pensionable pay. The pension plan is funded by the payment of contributions and assets of the plan are held in a separately administered fund. The most recent comprehensive actuarial valuation of pension plan assets and the present value of the defined benefit obligation were carried out al 31 March 2019. The fair value of the pension assets at 31 March 2025 are in excess of the present value of the defined benefit obligation at that date. This gives rise to a surplus of £10,349,000 {2024 - £8,423.000). The surplus is recognised in the financial statements only to the extent that the charity can recover that surplus, either through a reduction in future contributions or Ihrough a refund lo the charity. The charity is not able to determine that future contributions w¢ll be reduced nor will it receive a refund in the foreseeable future. Therefore the surplus of £10,349,000 {2024 - £8.423,000) is not recognised as an asset at 31 March 2025. An adjustment has been made through the Statement of Financial Activities to reflect this. Principal actuarial assumptions At31 At31 March 2025 March 2024 5.80% 2.78 /. 3.78/4 Discount rate for scheme liabilities Rate of increase for pensions in payment l inflation Rate of increase in salaries 4.830/0 Mortality assumptions The assumed life expectations on retirement age 65 are.. At31 At31 March 2025 March 2024 Retiring today Males Females Retiring in 20 years Males Females 20.3 22.7 20.3 22.7 19.4 24.4 19.5 24.4 Amounts recognised in the statement of financial activities Total 2025 Total 2024 Current seNice cost Interest income Interest cost 145,000 179.000 (1,226,000) (1.121,000) 820,000 808,000 Page 31
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 24. Retirement benefit schemes (continued) Amounts taken to other comprehensive income Totsl 2025 Total 2024 Actual relum on scheme assets Interest income Return on scheme assets Actuarial changes related to scheme assets 1,226,000 1.226.000 (389.000) 1,121.000 1,121,000 282,000 The actual return on scheme assets was 0.400/0 (2024- 9.70/4) The amounts included on the balance sheet arising from the charity's obligations in respect of defined benefit schemes are as follows: Total 2025 Total 2024 Present value of defined benefit obligations Fair value of plan assets Deficit in scheme 25,298,000 {25.298.000 25,690,000 25,690,000) Changes in the present value of defined benefit obligations were as follows 2024125 2023124 At 1 April 2024 Current service cost Benefits paid Unfunded benefits paid Employee contributions Actuarial gainsl(losses) Interest cost Adjustment for unrecognised surplus in scheme At 31 March 2025 25,690,000 145,000 (653,000) 18,000) 50,000 (2,672,000) 820,000 1,926,000 25.298.000 23.793.000 179.000 (590.000) (8.000) 54,000 1367.0001 808,000 1,821,000 25,690.000 The defined benefit obligations arise from plans funded as follows 2024125 2023124 Wholly unfunded obligations Wholly or partly funded obligalions Adjuslmenl for unrecognised surplus in scheme 81.000 14.868.000 10.349.000 25,298,000 89,000 17,178,000 8,423,000 25.690,000 Page 32
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 (continued) 24. Retirement benefit schemes {continuedl Changes in the fair value of Trust's share of scheme assets were as follows 2024125 2023124 At 1 April 2024 Interest income Return on assets less interest Benefits paid net of transfers in Employer contributions Employee contributions At 31 March 2025 25,690,000 1,226,000 {1,135,000) (653,000) 120,000 50.000 25,298,000 23,793,000 1,121,000 1,172,000 (590.000) 140.000 54,000 25.690,000 The trust's share of the assets in the scheme was . 31 March 2025 31 March 2024 Equities Bonds Property Cash and other liquid assets Total market value of assets 12.396.020 9,360.260 1,770.860 1.770,860 25,298,000 15,670,900 7,193,200 1.541,400 1.284,500 25.690,000 The latest asset split that has been provided allows for index returns, where required, on each assel category lo determine the split of assets. 25. Related party transactions The following related party transactions look place during the period Sandwell Valley School Limited Trustees M Hall, A Coley and G Walker are company directors within Sandwell Valley School Limited. During the year. Ihe charity incurred costs of £1,057 {2024 £2,584) on behalf of Sandwell Valley School Limited. These costs were recharged in full and offset against the original expenditure. As such, they are nol included within the Statement of Financial Activities. There was no amount outstanding at the year end {2024 - debtor balance of £246). All transactions were carried out in the normal course of business and on an arm's length basis. Lymphcare UK CIC During the year, the charity provided services to Lymphcare UK CIC. a company in which Kristina Jones. a member of the Board of Trustees, holds a position on the board. Income of £3,122 was received in the year (2024 - £3.870). and is recorded within income from charitable activities in the Statement of Financial Aclivilies. At the year end, a balance of £125 was due from Lymphcare UK CIC (2024 - £4,245). and is included within debtors (see note 14). All transactions were carried out in the normal course of business and on an arm's length basis. Page 33
Sandwell Community Caring Trust (A Company Limited by Guarantee) Notes to the financial statements for the year ended 31 March 2025 {continued) 26. Exceptional costs Property commission payment During the year, the charity made a one-off payment of £425.000 in settlemenl of an historic commission claim relating to a property transaction originally completed in March 2021. The transaction enabled the charity to secure ils continued occupation of the properties and resulted in a net gain of £521,000 lo the charity al the lime. Following legal advice. the trustees approved a negotiated settlement of £425,000, which was formalised by a signed settlement agreement. Page 34