Registered number: 03768527 Charity number: 1086862
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Independent auditors' report on the financial statements | 7 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 - 20 |
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022
| Directors | G A F Smith |
|---|---|
| D R Hodgen | |
| A P Donovan | |
| Company registered number 03768527 Charity registered number 1086862 Registered office Lansdowne House 113 Princess Road East Leicester LE1 7LA Company secretary S Patel (appointed 26 July 2022) N Gallagher (resgined 15 July 2022) Auditor Mazars LLP Chartered Accountants 6 Dominus Way Meridian Business Park Leicester LE19 1RP Bankers Barclays Bank Plc PO Box 1500 Dominus Way Meridian Business Park Leicester LE19 1RP |
Page 1
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management
a. Constitution
The trustees who held office during the financial year and at the date of this report are set out on page 1.
The trustees are drawn from the trustees of the charity’s controlling body, Age UK Leicester Shire and Rutland Limited. On appointment new trustees are invited to attend trustee training courses and are given a structured induction and activities along with those of the holding charity company. The finance and resources committee of Age UK Leicester Shire and Rutland Limited takes special interest in the finances of the company, and in turn, reports to the main body of trustees and the Trustee Board of the parent charity.
The statutory directors of the charity are: Mr G F Smith – trustee Mr D R Hodgen – trustee Mr A P Donovan – executive director
The charity’s Chief Executive, Mr A P Donovan, is responsible for the day to day operation of the company, this responsibility is delegated to Ms Roisin Connor (Homecare and Support Services Manager), who then manages the staff on behalf of the trustees and Mr Neil Gallagher (Finance Director) who manages financial and administrative functions. Remuneration for key management personnel is set by the parent charity in line with the parent charity methodology for setting pay.
The company provides cleaning and personal care services to older people in the community. The clients are assessed as having a “need” as the performance of such routine tasks would cause them pain or discomfort. Most work is privately commissioned by the client’s themselves, although in some cases, relatives, social services or similar will pay for the work. Cleaners and carers in the field are managed on a team basis by Coordinators, who are in turn supervised by the Homecare Management. A respite sitting service operates through the company, providing respite care to the elderly and infirm, and thus granting periods of relief to the clients’ full time carers. This work was originally commissioned by Leicestershire County Council Social Services Department, but increasingly is being commissioned by private clients. Handyman, practical services and gardening operations provide much needed support to clients providing repairs and small home improvements, along with gardening services to those clients that due to age, disability, or infirmity would not be able to complete such tasks on their own behalf.
The systems of financial control are designed to provide reasonable but not absolute assurance against material misstatements or loss. They include:
-
A three-year strategy plan
-
An annual budget approved by the executive committee (board of trustees) of the parent charity
-
Regular monitoring of actual results against budget and forecasts
-
Strict lines of delegation of authority to managers
-
Segregation of staff duties
The charity raises most of its funds through charges for its services. Donations and grants are periodically received from various funding bodies, the year ending 2022 saw a significant decrease in grant income in particular as a result of the various government schemes put in place to support organisations through Covid in the prior year.
The charity does not fundraise.
Page 2
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management (continued)
b. Risk management
All work commissioned is subject to an initial risk assessment. Nearly all appointments take place in the clients’ home or garden. Before any work is undertaken, a trained senior employee visits the premises to:
-
Assess the need for the services by the prospective service recipient; and
-
Carry out a risk assessment of the premises for the benefit or both carer and client
No regular schedule of appointments will commence without such assessment taking place.
The major ongoing risks are operational and are identified as those that may have a significant effect on:
-
Performance of the charity to deliver its services in line with primary aims and objectives
-
The charity’s ability to meet the high expectations of carers and clients
-
The health and safety of staff and clients
-
The impact of Covid on demand and supply of services
The trustees, through the management, review these risks on an ongoing basis. Systems and procedures are in place to mitigate the risks identified and in some cases risks may be mitigated by insurance.
The following structures and procedures are in place to ensure potential risks are mitigated:
-
Monthly Home Help management meetings
-
Regular supervision of carers
-
Mandatory training for carers
-
Monthly financial reports to Home Help Management
-
A clear structure of delegated authority and control
-
A software rostering management system maintained by independent software specialists
-
Monthly billing, debt chasing and financial procedures.
-
A continuing review of key systems and procedure through internal audit arrangements
-
Membership of appropriate Homecare organisations
-
Regular meetings and reviews with trustees via the sub-committee structure
-
Regular discussions with other Age UK brand partners providing a similar service
c. Financial instruments
The company does not actively use financial instruments as part of its financial risk management and is not exposed to credit risk or cash flow risk associated with selling on credit. The nature of its financial instruments means that they are not subject to significant price risk or liquidity risk.
Page 3
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management (continued)
d. Activities for achieving objectives
Age UK Leicester Shire & Rutland Home Help Limited is a non governmental, non religious, non political organisation established in May 1999. The memorandum and articles of association which were amended on 18 December 2016, list the main objects as:
-
To promote the relief of older, sick or disadvantaged people in any manner which now or hereafter may be
-
deemed by law to be charitable in and around Leicestershire, Rutland and adjoining counties.
-
To promote other Charitable benevolent and philanthropic purposes in and around the area of benefit.
-
The charity provides Home Help services and undertakes routine domestic tasks for elderly persons in the area for whom such tasks would cause them pain or discomfort. The services currently provided include:
-
• Domestic cleaning
-
Personal care services
-
Shopping
-
Training
-
Respite services
-
Handyman scheme and practical services – simple repairs and installation of disability aids
-
Gardening services
-
Personal assistant services
The trustees are of the opinion that all the purposes of Age UK Leicester Shire & Rutland Home Help Limited are for the benefit of the public. The trustees consider that they have complied with their duties under section 3 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission.
Achievements and performance
a. Review of activities
| 2021/2022 | 2020/2021 | |
|---|---|---|
| Hours of cleaning appts | 24,606 | 19,809 |
| Hours of Respite Care | 972 | 1,003 |
| Hours of Personal Care, Shopping & Other | 13,059 | 12,869 |
| Total care Hours | 38,637 | 33,681 |
| Average monthly clients | 451 | 351 |
| Average monthly carers | 74 | 62 |
b. Financial review
During the year the charity raised £908k (2021 - £707k) through direct service provision and received £125k (2021: £361k) through grants and other income. The year ending 2022 saw a significant decrease in grant income in particular as a result of the various government schemes put in place to support organisations through Covid in the prior year. Charitable activities increased as a result of most services resumed following Covid restrictions.
Operational costs were £1,051k (2021 - £1,062k), being the direct cost of service delivery. Fund balances carried forward at 31 March 2022 were £0k (2021 - £18k).
Margins between what is charged and direct costs have narrowed over recent years. The introduction of and the impact of the national living wage, workplace pensions and increasing employer's national insurance payments have caused the contribution towards core costs to diminish on a per hour charged basis.
Page 4
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance (continued)
c. Plans for the future
The Management review the annual plan of the charity in the autumn of each year and have identified the main objectives as being:
-
To expand the service and thus make it available in all parts of Leicester, Leicestershire and Rutland.
-
To make the service financially self sustaining.
-
To continue to support the carers by offering good rates of pay, full and appropriate training, encourage 4. the achievement of applied qualifications and to provide a career development path for those who desire it.
-
To maintain a high quality, competitively priced, value for money service to the clients and funders.
-
To further develop the software and associated systems to improve operational efficiencies and to
-
utilise technological advances in computing and mobile telephony to enhance communications with carers in the field and to improve appointment scheduling, monitoring and recording.
-
To expand the handyman, practical services and gardening operations.
-
To restructure and develop the internal management of the company to cater for changes in the volume of and types of services offered.
d. Reserves policy
It is the trustees aim to carry sufficient free reserves in the Age UK Leicester Shire and Rutland Limited Group to cover its working capital requirements. A minimum of six months costs have been targeted at group level so that should all income streams cease, the charity group would be able to pay off all debts and commitments and continue to operate whilst services were wound down. Before the, it was foreseen that the company would return to a near break even position, due to a re structuring of management and administration staff at the core, a review and increase in sales prices and the development of new services such as footcare. Ultimately it is planned to build up sufficient reserves to provide for six months operating costs as a standalone entity. The pandemic and the resultant effect on the local economy has in the short and medium term seriously affected future planning. The current policy remains to return the Home Help enterprise to profitability and thus to then build up reserves.
e. Going concern
The trustees review the level of reserves at the finance and resources committee on a monthly basis, through the consolidated group management accounts and the individual Home Help Company management accounts. It is recognised that to continue as a going concern, the company is reliant upon the support of the holding company. The Home Help company delivers primary purpose services on behalf of the holding company and as such the trustees of the holding company have pledged to continue to support the operations of the subsidiary entity.
f. Investment policy
The trustees have considered the way in which the company invests its funds and considers the most appropriate approach is for the funds to be held in bank accounts where the money is readily available.
Page 5
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial yea. 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 Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) 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 Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
-
so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
-
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
This report has been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in UK and Republic of Ireland (charities SORP (FRS 102)).
Auditors
The auditors, Mazars LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
A P Donovan
A P Donovan (Nov 21, 2022 08:13 GMT)
A P Donovan Director
Date: Nov 21, 2022
Page 6
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
Opinion
We have audited the financial statements of Age UK Leicester Shire and Rutland Home Help Limited (the ‘Charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, 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 FRS 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 Charity’s affairs as at 31 March 2022 and of its income and expenditure for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the "Auditor’s responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the trustees' report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 7
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
Other information (continued)
In connection with our audit of the financial statements, 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 misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the trustees' report which includes the strategic report and directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of Trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the trustees’ responsibilities statement set out on page 6, 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' responsible for assessing the Charity’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 to liquidate the Charity or to cease operations, or Trustees' no realistic alternative but to do so.
Page 8
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, the Charities Statement of Recommended Practice, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
-
Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
-
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
-
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
-
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.
In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to income recognition (which we pinpointed to the cut off assertion) and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
-
Making enquiries of the Trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
-
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
-
Discussing amongst the engagement team the risks of fraud; and
-
Addressing the risks of fraud through management override of controls by performing journal entry testing.
Page 9
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
Auditor's responsibilities for the audit of the financial statements (continued)
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit report
This report is made solely to the Charity'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 Charity'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 Charity and the Charity's members as a body for our audit work, for this report, or for the opinions we have formed.
David Hoose (Nov 21, 2022 08:15 GMT)
David Hoose (Senior Statutory Auditor)
For and on behalf of
Mazars LLP Chartered Accountants and Statutory Auditor 6 Dominus Way Meridian Business Park Leicester LE19 1RP
Date: Nov 21, 2022
Page 10
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022
| Note Income from: Charitable activities Grant and other income Total income Expenditure on: Charitable activities 3 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 907,874 124,853 1,032,727 1,050,999 1,050,999 (18,272) 18,435 (18,272) 163 |
Total funds 2022 £ 907,874 124,853 1,032,727 1,050,999 1,050,999 (18,272) 18,435 (18,272) 163 |
Total funds 2021 £ 707,150 361,554 |
|---|---|---|---|
| 1,068,704 | |||
| 1,061,859 | |||
| 1,061,859 | |||
| 6,845 | |||
| 11,590 6,845 |
|||
| 18,435 |
All income and expenditure activities are derived from continuing activities.
There were no other recognised gains and losses for the year ended 31 March 2022 or the year ended 31 March 2021 other than those included in the Statement of Financial Activities.
All funds are unrestricted funds for 2022 and 2021.
The notes on pages 14 to 20 form part of these financial statements.
Page 11
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee) REGISTERED NUMBER: 03768527
BALANCE SHEET AS AT 31 MARCH 2022
| Note Current assets Stocks Debtors 7 Cash at bank and in hand Creditors: amounts falling due within one year 8 Net current assets Total net assets Charity funds Unrestricted funds Total funds |
- 104,615 6,526 111,141 (110,978) |
2022 £ 163 163 163 163 |
3,207 111,201 5,146 119,554 (101,119) |
2021 £ 18,435 |
|---|---|---|---|---|
| 18,435 | ||||
| 18,435 | ||||
| 18,435 |
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
A P Donovan
A P Donovan (Nov 21, 2022 08:13 GMT)
A P Donovan Director
Date: Nov 21, 2022
The notes on pages 14 to 20 form part of these financial statements.
Page 12
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
| STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022 |
||
|---|---|---|
| Cash flows from operating activities Net cash used in operating activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 14 to 20 form part of these financial statements. |
2022 £ 1,380 1,380 5,146 6,526 |
2021 £ (1,660) (1,660) 6,806 5,146 |
Page 13
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. General information
Age UK Leicester Shire & Rutland Home Help Limited is a charitable company (company number 03768527) and is also registered as a charity at the Charity Commission in England and Wales. The charitable company is limited by guarantee and as such has not issued share capital. The liability of its members in the event of the company being wound up is limited to a sum not exceeding £1 each. The registered office and principal place of business is Lansdowne House, 113 Princess Road East, Leicester, LE1 7LA.
The Charity's principal objective is to promote the relief of older, sick or disadvantaged people in any manner which now and hereafter may be deemed to be charitable in and around Leicestershire, Rutland an adjoining counties.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Age UK Leicester Shire and Rutland Home Help Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The trustees review the level of reserves at the finance and resources committee on a monthly basis, through the consolidated group management accounts and the individual Home Help Company management accounts. It is recognised that to continue as a going concern, the company is reliant upon the support of the holding company. The Home Help company delivers primary purpose services on behalf of the holding company and as such the trustees of the holding company have pledged to continue to support the operations of the subsidiary entity.
2.3 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Voluntary income, including donations are recognised where there is entitlement, probable receipt and the amount can be reliably measured.
Income from charitable activities is recognised as it is earned and consists of charges for the provisions of home help services and routine domestic tasks for elderly persons in the area for whom such tasks would cause them pain or discomfort.
Grant income provides funding to support performance activities and is recognised when the charity has entitlement to the funds, any performance conditions attached to the grant have been met and the amount can be reliably measured. Income is deferred when performance related grants are received in advance of the time period or expenditure to which they relate.
Page 14
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.4 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
2.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Support costs include central functions and governance costs have been allocated to activity cost categories on a basis consistent with the use of the resource.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
All expenditure is inclusive of irrecoverable VAT.
2.6 Taxation
The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2.7 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
2.8 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Page 15
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.9 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.
2.10 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.
2.11 Financial instruments
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.12 Pensions
The Company operated a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
2.13 Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no critical accounting estimates and areas of judgement to note.
3. Details of charitable activities
| Home help services Support costs Governance costs |
2022 £ 987,613 62,626 2,760 1,052,999 |
2021 £ 991,949 58,073 11,837 |
|---|---|---|
| 1,061,859 |
Page 16
(A company limited by guarantee)
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
4. Staff costs
| Wages and salaries Social security costs Other pension costs |
2022 £ 885,929 30,921 23,581 940,431 |
2021 £ 872,437 17,709 20,153 |
|---|---|---|
| 910,299 |
The average number of persons employed by the Company during the year was as follows:
| Provision of services Administration |
2022 No. 91 2 93 |
2021 No. 92 2 |
|---|---|---|
| 94 |
No employee received remuneration amounting to more than £60,000 in either year.
The Charity employs a number of part-time employees who are included within the figures above, the average monthly number of full time equivalent employees during the year was 37 (2021 - 44).
The charitable Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension costs charge £23,581 (2021 - £20,153) represents contributions payable by the charitable company to the pension scheme. At the year end £4,701 (2021 - £3,233) was owed to the pension scheme and is included within creditors.
5. Trustees' remuneration and expenses
( a) Trustees remuneration
During the year, no Trustees received any remuneration or other benefits (2021 - £Nil).
(b) Key management remuneration
The key management personnel of the charitable company are remunerated through the parent charitable company Age UK Leicester Shire and Rutland Limited.
Page 17
(A company limited by guarantee)
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
6. Net income/(expenditure)
Fees payable to the auditors in respect of both audit and non-audit services are as follows:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Audit services - statutory audit of charitable company | 2,337 | 2,215 |
| Other assurance services | - | 814 |
7. Debtors
| Trade debtors Amounts owed by group undertakings Other debtors and prepayments |
2022 £ 98,384 2,855 3,376 104,615 |
2021 £ 107,648 20 3,533 |
|---|---|---|
| 111,201 |
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
8. Creditors: Amounts falling due within one year
| Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income |
2022 £ 3,901 48,017 7,593 4,807 46,660 110,978 |
2021 £ 3,450 44,931 4,151 3,248 45,339 |
|---|---|---|
| 101,119 |
At 31 March 2022, the Charity was holding £11,206 in deferred income in respect of grants received in advance (2021 - £Nil).
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
Page 18
(A company limited by guarantee)
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
9. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Decrease in stocks Decrease in debtors Increase/(decrease) in creditors Net cash provided by/(used in) operating activities |
2022 £ (18,272) 3,207 6,586 9,859 1,380 |
2021 £ 6,845 |
|---|---|---|
| - 2,689 (11,194) |
||
| (1,660) |
10. Analysis of cash and cash equivalents
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Cash in bank | 6,526 | 5,146 |
11. Analysis of changes in net funds
| At | 1 April | At 31 March | ||
|---|---|---|---|---|
| 2021 | Cash flows | 2022 | ||
| £ | £ | £ | ||
| Cash at bank and in hand | 5,146 | 1,380 | 6,526 |
12. Pension commitments
The Company operates defined contribution pension schemes. The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge of £23,581 (2021 - £20,153) represents contributions payable by the Company funds. At the year end there was a pension creditor balance of £4,701 (2021 - £3,233).
Page 19
(A company limited by guarantee)
AGE UK LEICESTER SHIRE AND RUTLAND HOME HELP LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
13. Related party transactions
FRS 102 section 1A does not require disclosure of transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is a party to the transaction is wholly owned by a member of that group.
14. Ultimate parent undertaking and controlling party
The Company is a 100% subsidiary of Age UK Leicester Shire and Rutland, a Company registered in England and Wales (charity registration number 1146649). The parent Company's registered office, Lansdowne House, 113 Princess Road East, Leicester, LE1 7LA. In the opinion of the Directors, Age Uk Leicester Shire and Rutland is the Company's immediate and ultimate controlling party.
This is the largest and smallest group for which consolidated financial statements are prepared. Consolidated financial statements are available from the charitable company's registered office Lansdowne House, 113 Princess Road East, Leicester, LE1 7LA.
Page 20