**Charity registration number 1099020**
**Company registration number 04624968 (England and Wales)**
## **SERVICES FOR INDEPENDENT LIVING**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **SERVICES FOR INDEPENDENT LIVING**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Angela Higham (Chair) Tom Misselbrook Margaret O'Neill (Resigned 7 July 2022) John Rogers David Hughes Shirley Mackay (Resigned 5 September 2022) Julie Thornby **Secretary** Mr E McPherson **Chief Executive** Mr E McPherson **Charity number** 1099020 **Company number** 04624968 **Registered office** 1 Owen Way Leominster Enterprise Park Leominster Herefordshire HR6 0LA **Auditor** Kendall Wadley LLP Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS **Bankers** Unity Trust Bank Plc Nine Brindleyplace Birmingham B1 2HB
## **SERVICES FOR INDEPENDENT LIVING**
## **CONTENTS**
||**Page**|
|---|---|
|Chair's Statement|1|
|Chief Executive's Summary|2|
|Little Moments Big Memories|3 - 10|
|Trustees' report|11 - 16|
|Statement of trustees' responsibilities|17|
|Independent auditor's report|18 - 20|
|Statement of financial activities|21 - 22|
|Balance sheet|23|
|Statement of cash flows|24|
|Notes to the financial statements|25 - 40|
## **SERVICES FOR INDEPENDENT LIVING**
## **CHAIR'S STATEMENT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Chair's Welcome**
Welcome to the Services for Independent Living (SIL) Annual Report. Thank you for taking the time to read the report. I hope you find it’s contents interesting.
2022/23 has been another difficult year for the Health and Social Care sector due to both financial and recruitment challenges. Most of the services we provide are funded by the Council, who are not given enough funding by central government. During the year we took part with the Council in a Fair Cost of Care exercise which showed that our cost per hour for homecare is more than the rate paid by the Council.
Without adequate funding we cannot pay a competitive wage to our support workers and our care workers. This means that retention and recruitment of staff is always a struggle. This is a shame because with more staff we could provide more services to disabled and older people.
In December the Board took the strategic decision to give a 10% pay rise to all staff to help the retention and recruitment of staff. In March 2022 the Council announced that they would increase their rates for 2022/23 by 6%. 90% of our costs are wages, so we were looking at making a deficit for the year. However, due to the amazing contribution from all staff we managed to turn that round and show a small surplus for the year.
For 2023/24 the Board decided to increase staff wages by the same increase as the Council rate. From 1st April 2023 we gave an 8% pay rise to staff, so that staff have received an 18% increase over the last two years. SIL has always prided itself on looking after its staff and in 2022 the organisation won the Hereford Times Health and Social care Award for the Best Place to Work.
The budget for 2023/24 was showing a small deficit. However, we have managed to increase the service hours provided in all areas and we are showing a surplus for the first four months of the year.
I would like to take this opportunity to thank all SIL staff for another year of providing first class services to disabled people, and the Senior Management Team for managing the financial and retention and recruitment pressures during the year.
## **Angela Higham - Chair**
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## **SERVICES FOR INDEPENDENT LIVING**
## **CHIEF EXECUTIVE'S SUMMARY**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
Welcome to our 2022/23 Annual Report and Accounts. I hope you find the content interesting and take the time to look through some of the exciting achievements we have had this year.
It makes my report much easier to write when we have had a good year and that is indeed the case for 2022/23. Despite forecasting a deficit as a result of giving a generous 10% pay rise to all staff in December 2021, we have ended the year with a small surplus. This has enabled us to agree a further 8% pay award for all staff for April 2023.
In addition, we have continued to recruit new staff and reduce staff turnover, meaning we have seen a significant net increase, during what has been a very difficult period for the sector. Employee numbers were 132 at 31st March 2023, compared to 117 at 31st March 2022. This increase has been in front line staff, with the number of management posts staying the same, and means we can deliver more services to disabled and older people across Herefordshire.
This success has been down to a variety of initiatives to improve the working environment in SIL, which was recognised at the Hereford Time Health and Social Care Awards where SIL won the 2022 Best Place to Work Award.
SIL has also managed to maintain unrestricted reserves of over £1m. This is a significant achievement for a charity of SILs size and enables the organisation to look confidently towards the future, along with providing a platform to invest more in meeting our charitable aims.
None of the above could have been achieved without an excellent workforce and I would like to take this opportunity to thank every single person who works for SIL. SIL staff often talk about being part of the ‘SIL Family’ and it does genuinely feel like that, especially at times of pressure when the teams and individuals pull together to make sure we continue to provide high quality services to the people we support.
I would also like to thank all of the people who use SIL services, as without you, there is no SIL. I really appreciate the way you engage with the organisation, through working with your support staff, to attending the events we host throughout the year. You also add to the feeling of SIL being an extended family.
And finally, I would like to recognise the work of the SIL trustees. All of our trustees are volunteers and give up a significant amount of time to ensure that the organisation is being run correctly. Thank you for all that you do and I look forward to working with you all in the future.
## **Euan McPherson Chief Executive**
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**SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LITTLE MOMENTS BIG MEMORIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
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**SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LITTLE MOMENTS BIG MEMORIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
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**SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LITTLE MOMENTS BIG MEMORIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
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**SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LITTLE MOMENTS BIG MEMORIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
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**SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LITTLE MOMENTS BIG MEMORIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
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**SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LITTLE MOMENTS BIG MEMORIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
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## **SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LITTLE MOMENTS BIG MEMORIES** _**FOR THE YEAR ENDED 31 MARCH 2023**_
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**SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LITTLE MOMENTS BIG MEMORIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
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## **SERVICES FOR INDEPENDENT LIVING**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1. Introduction**
The trustees present their report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **2. Structure, Governance & Management**
## **2.1 Constitution**
The charity is also a Company Limited by Guarantee and is therefore governed by Articles of Association. It was incorporated on 24 December 2002. Registered charity status was obtained on 15 August 2003. SIL works with all disabled and older people who can benefit from our services.
## **2.2 Our Charitable Objects**
To relieve disabled people and their family carers through the provision and promotion of services which foster independent living and improve their conditions of life, and which assist disabled people and their family carers to actively participate in and integrate into society.
## **Our Vision (the change we would like to see)**
To enable people affected by disabilities to exercise choice and control, to live independent lives, and to actively participate in society.
## **SIL’s Mission**
The provider of choice for individual care and support, empowering people to lead an independent life.
## **SIL’s Guiding Principles:**
- **P** artnership - working with individuals, groups and organisations to share knowledge and improve outcomes for disabled people.
- **R** espect - for all.
- **I** nnovation - adapting efficiently and effectively to change and embracing new technology.
- **D** iversity - to be accepting of all people, both within and outside SIL.
- **E** quality - for all.
- **S** trength-based - maximising ability and not being constrained by disability.
## **2.3 Public Benefit**
Trustees have carefully considered the public benefit duty and are satisfied that the organisation meets this requirement. All our activity is directed towards the benefit of disabled people and family carers with the aim of fostering equality through the provision of services and information.
## **2.4 Services provided in pursuit of public benefit:**
- Independent Living @ Home - domiciliary care service for people with complex support needs
- SIL Homecare – general domiciliary care service
- Employment Law advice and information to disabled people employing their own staff through a direct payment
- Payroll and financial management services to disabled people employing their own staff
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## **SERVICES FOR INDEPENDENT LIVING**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **2.5 Achievement of objectives 2022/23**
SIL supported over 300 people throughout Herefordshire in 2022/23 through the services outlined above. The people who use SIL’s services include people with physical disabilities, learning disabilities, mental health, Acquired Brain Injuries and carers.
## **2.6 Governance**
Consistent with our vision SIL is a service user led/ controlled organisation, having at least 50% disabled trustees, or family carers. A register of interest is maintained and declarations of potential conflicts of interests are a standing agenda item at monthly Board meetings. The Trustees also operate the following committees which report to the Board. Committee membership is determined by the skills and experience of individual Trustees.
## **2.7 Recruitment of Trustees**
SIL uses various channels to attract and identify Trustees with the skills and knowledge to effectively direct the affairs of the charity, including external adverts.
Prospective Trustees complete an application form and a declaration of eligibility and have an interview with the Chair and Chief Executive. They are invited to attend three Board meetings, where they have speaking, but not voting, rights and are supplied with a role description / person specification / ‘The Essential Trustee’ guide. Post Board approval they sign a Contract / Code of conduct and Register of Interests. Access needs are determined in order to provide appropriate support and equipment. A comprehensive induction is provided.
In 2022/23 the Trustees have provided excellent attendance at all our meetings.
## **2.8 Evaluation of Board Performance**
During 2022/23 SIL had Board meetings and Finance Committee meetings held on a monthly basis. All trustees have attended at least the minimum number of Board meetings.
Board meetings have now moved to every two months. Finance Committee meetings are still held monthly.
## **Quality & Impact**
CQC Rating – Good Disability Confident Leader Employer ACAS Model Workplace
Also see section the preceding pages, a year in the life of SIL service users (SU), staff and Trustees.
## **2.9 Memberships**
SIL is a member of the following organisations and Alliances
- Homecare Association
- National Council of Voluntary Organisations
- Disability Rights UK
- Dementia Action Alliance
- Making it Real (Think Local Act Personal)
- Herefordshire Disability United
- Herefordshire Voluntary Organisations Support Services (HVOSS)
SIL is a signatory to the Social Care Commitment; a promise to provide high quality social care services.
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## **SERVICES FOR INDEPENDENT LIVING**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **2.10 Annual Risk Assessment**
The SIL risk register includes four red risks with a combined score for likelihood and impact between 16 and 25. These risks relate to the rates paid by the Council for care and to the retention and recruitment of staff.
|**Risk**|**Likeli-**
**hood**|**Impact**|**Score**|**Mitigation**|
|---|---|---|---|---|
|The rates paid by the Council do not
cover the cost of providing care|
5|5|25|A significant amount of services are
provided to the Council. At present the
rates paid by the Council do not reflect
the hourly cost of care. The Council
have published the Cost of Care
Report which shows that the rates paid
are significantly under the median cost
of care. We will seek to engage with
the Council to discuss the report and
how to increase the rates paid.|
|The Medium Term Financial Strategy
for the organisation cannot balance
the books and produce a break even
situation|
5|4|20|We are currently projecting a deficit for
2022/23 and 2023/24. This is because
the 10% wage increase in December
2021 was higher than the council rate
increases in April 2022. If the level of
activity stays the same the organisation
will need wages to increase by 2.5%
less than the Council rate increase in
order to break even.|
|Minimum
Wage/National
Living
Wage/Pension
Contribution
increases lead to recruitment and
retention issues as staff find other
sectors more attractive financially|
5|4|20|Investment in developing full range of
staff benefits: sick pay, increasing
support staff salaries above NLW,
welfare visits and support, training
offer, mental health support, retained
councillor, physical wellbeing program,
external
Occupational
Health,
supervision and support, social events|
|Recruitment and retention of key
staff (particularly support workers)
and the ability to plan succession
with
a
fluid
and
expanding
organisation.|
4|4|16|Recruitment of key staff is essential to
the ongoing stability and growth of the
organisation. The availability of support
workers has a direct impact on our
ability to grow our Homecare and ILH
services. We pay competitive rates and
have done a lot of work on employee
wellbeing and support, which has
helped
significantly
reduce
staff
turnover and enabled us to be seen as
an employer of choice in our sector.|
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## **SERVICES FOR INDEPENDENT LIVING**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **2.11 Organisational Structure**
SIL promotes the employment of disabled people in line with our guiding principle, ‘Using the skills of disabled people’, and guarantees a job interview to disabled candidates meeting the essential criteria. Approximately 25% of staff are either disabled or have substantial caring responsibilities; our target is to achieve 30%. SIL holds the Disability Confident Leader’ award.
Staff are based at Head Office in Leominster. The Trustees delegate the day-to-day management ultimately to the Chief Executive, who heads a senior management team comprising Heads of Service, HR Manager, Head of Finance and a Head of Projects & Initiatives who report to the Board monthly. The remuneration of key management personnel is set by the Board of Trustees.
At 31 March 2023 SIL employed a headcount total of 132 staff - 115 (87%) whom were providing services and 17 (13%) support staff.
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## **SERVICES FOR INDEPENDENT LIVING**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **3. Achievements and Successes in 2022/23**
Listed below are some of our achievements and successes during the year.
- Maintained staff recruitment, turnover and sickness at sector leading levels.
- Won the Hereford Times Health and Social Care Award for Best Place to work and Care Hero (Agnieszka Simpkin) in 2022.
- Funded a 10% pay award in December 2021 and an 8% pay award in April 2023 – an 18% increase over two years.
- CQC rating ‘Good’ across all areas
- Disability Confident Leader Status
- Incorporated Herefordshire Men’s Mental Health group into the SIL governance and reporting structure.
- Received £10,000 grant from the Lottery Fund for the Herefordshire Men’s Mental Health Group.
- Developed links with New Model Institute for Technology and Engineering.
## **4. Financial Review**
The charity has achieved a surplus of £5,146 (2022 surplus of £28,291) this year. A surplus of £1,673 was made on unrestricted funds and a surplus of £3,473 on the restricted funds.
Total income was £2.895m in 2022/23 compared to £2.742m, in the previous year.
## **Reserves policy**
The total funds held by the charity at the year end amounted to £1,073,228 (2022 £1,068,082). This included restricted funds of £44,745 (2022 £41,272), which related to the Third Party Provider Service and the Herefordshire Mens' Mental Health Group.
Free reserves which includes the amount of unrestricted funds at the year excluding tangible fixed assets amounted to £629,052 (2022 £641,720).
The Trustees have decided that the unrestricted funds which have not been designated for a specific use together with the value of the head office building should be maintained at a level of the total cost of closure. The Trustees consider that this is a responsible way to maintain reserves and this level of reserves has been maintained throughout the year.
## **5. Plans and Priorities 2023/24**
Our strategy for 2023/24 is to:
- Ensure that the deficit for 2023/24 is as low as possible to minimize the use of reserves.
- To be the employer of choice for our sector in the localities in which we operate and improve the number of staff we recruit and retain.
- To be the provider of choice for our sector in the localities in which we operate and increase the number of service users we support.
- To maintain at least a “Good” rating from CQC for all regulated services.
- To proactively search out and respond to new business opportunities.
- To explore and fund the opportunity to develop a Charitable Arm to the organization.
- To engage with the Council and ICS to build relations and discuss the fair cost of care.
- To develop our understanding, knowledge and presentation of SIL’s social value.
Each service has a set of targets related to the strategy which are reported in monthly management reports to the board.
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SERVICES FOR INDEPENDENT LIVING
TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Disclosure of infomiatlon to audltors
Each of the Trustées has ¢onfirmed that there is no information of which they are aware which is relevant lo the
audit, bul of whiGh the auditor is unaware. They have further confirmed that they have taken appropriate steps lo
identify suth levant inforrnalion and lo establish that the auditors are aware ol such inlorniation.
Thi5 report h85 been prepared in accordance with the special provisions rèlating to small companies within Part
15 of Ihe Companies Act 2006.
The Iruslees. report was approved by the Board of Ttusteès.
A Hlgham
Trustee
Dated.. 31 August 2023
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## **SERVICES FOR INDEPENDENT LIVING**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
The trustees, who are also the directors of Services for Independent Living for the purpose 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 year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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## **SERVICES FOR INDEPENDENT LIVING**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF SERVICES FOR INDEPENDENT LIVING**
## **Opinion**
We have audited the financial statements of Services for Independent Living (the ‘charity’) for the year ended 31 March 2023 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 2023 and of its incoming resources and application of resources, 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe 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 annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
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## **SERVICES FOR INDEPENDENT LIVING**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SERVICES FOR INDEPENDENT LIVING**
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 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 intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
## **Extent to which the audit was considered capable of detecting irregularities including fraud**
- an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Board is obtained and their attitude to risk ascertained
- an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride of fraud is made
- an understanding of the specific rules and regulations applicable to the client is obtained, including here all matters relating to safeguarding and the need for DBS clearance of staff
- it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the charity
## **Audit response to risks identified**
- processes to test the outcomes of our assessment include, a review of Board minutes, analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries including the testing of journal entries, and information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material mis-statements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.
- our understanding of the legal and regulatory framework as applicable to the company is reviewed alongside knowledge of the procedures put in place by the company in order to comply with the same
- it is established if there have been any instances of non-compliance with applicable laws and regulations, where there are such breaches, a full understanding, including gathering of relevant documentation appertaining to the event is obtained and assessed
It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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## **SERVICES FOR INDEPENDENT LIVING**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SERVICES FOR INDEPENDENT LIVING**
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Use of our report**
This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
**Sarah Morley ACA (Senior Statutory Auditor) for and on behalf of Kendall Wadley LLP**
31 August 2023
**Chartered Accountants Statutory Auditor**
Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS
Kendall Wadley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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## **SERVICES FOR INDEPENDENT LIVING**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
340
39,316
Charitable activities
**4**
2,643,185
208,335
Investments
**5**
4,439
-
**Total income**
2,647,964
247,651
**Expenditure on:**
Charitable activities
ILH
**6**
1,955,924
30,024
Mens Health
**6**
-
5,323
Homecare
**6**
533,969
-
Third Party Provider Service
**6**
-
208,335
Hereford DPSS
**6**
156,398
496
Other
**6**
-
-
**Total charitable expenditure**
2,646,291
244,178
Gross transfers between funds
-
-
**Net income for the year/**
**Net movement in funds**
1,673
3,473
Fund balances at 1 April 2022
1,026,810
41,272
**Fund balances at 31 March 2023**
1,028,483
44,745|**Total**
**2023**
**£**
39,656
2,851,520
4,439
2,895,615
1,985,948
5,323
533,969
208,335
156,894
-
2,890,469
-
5,146
1,068,082
1,073,228|Total
2022
**£**
73,065
2,666,268
3,019
2,742,352
1,950,030
13,950
560,078
77,420
144,153
(31,570)
2,714,061
-
28,291
1,039,791
1,068,082|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 21 -
## **SERVICES FOR INDEPENDENT LIVING**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Prior financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
1,860
71,205
Charitable activities
**4**
2,572,089
94,179
Investments
**5**
3,019
-
**Total income**
2,576,968
165,384
**Expenditure on:**
Charitable activities
ILH
**6**
1,936,568
13,462
Infection Control
**6**
-
13,950
Homecare
**6**
543,811
16,267
Third Party Provider Service
**6**
-
77,420
Hereford DPSS
**6**
141,128
3,025
Other
**6**
(31,570)
-
**Total charitable expenditure**
2,589,937
124,124
Gross transfers between funds
9,406
(9,406)
**Net income for the year/**
**Net movement in funds**
(3,563)
31,854
Fund balances at 1 April 2021
1,030,373
9,418
**Fund balances at 31 March 2022**
1,026,810
41,272|**Total**
**2022**
**£**
73,065
2,666,268
3,019
2,742,352
1,950,030
13,950
560,078
77,420
144,153
(31,570)
2,714,061
-
28,291
1,039,791
1,068,082|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 22 -
SERVICES FOR INDEPENDENT LIVING
BALANCE SHEET
AS AT31 MARCH 2023
2023
2022
Notes
Fixed assets
Goodwill
Tangible assets
10
11
2,604
396,827
8,854
417,508
399,431
426,362
Currènt assèts
Debtors
Investments
Cash at bank and in hand
13
14
294,642
171,620
356.606
284,887
295.554
251.301
822.868
831.742
Creditors: amounts falling due within
one year
15
1149.0711
1190,0221
Net current assets
673,797
641.720
Totsl a$yets less current liabilities
1,073,228
1,068,082
Income funds
Restricled funds
Unrestricted funds- general
17
44,745
1,028.483
41,272
1.026,810
1,073,228
1,068,082
The company is entitlad to the èxgmplion from the audit requirement Contsined in section 477 of the Companie5 Act
2006, for the year ended 31 March 2023. although an audit has been carried out under section 144 of the Charities
Ad 2011. No member of the company ha5 deposited a notice. pursuant lo section 476, requiring an audit of these
finanal statemènts under the requirements of the Cornpanies Act 2006.
The Tru51ee5 a¢knOedge their responsibilities for complying with the requirements of the Companies Act 2006
with respect lo accounting records and the preparation of financial statements.
Thèse financial statements have been prepared in accordance with the provisions applicable to companies subject
lo the small companie$ regime.
The accounts were approved by the Trustees on 31 August 2023
T Missèlbrook
Trustee
A Higharn
Trustse
Company Règlstration No. 04624968
-23-
## **SERVICES FOR INDEPENDENT LIVING**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**20**
**Investing activities**
Purchase of tangible fixed assets
Short term investments
Interest received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
(3,659)
123,932
4,439|**£**
(19,406)
124,712
-
105,306
251,300
356,606|**2022**
**£**
(11,727)
46,515
3,019|**£**
(42,994)
37,807
-
(5,187)
256,487
251,300|
|---|---|---|---|---|
- 24 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **Company information**
Services for Independent Living is a private company limited by guarantee and was registered in England and Wales. The registered office is 1 Owen Way, Leominster Enterprise Park, Leominster, Herefordshire, HR6 0LA.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
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 the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Voluntary income is recognised as incoming resources when receivable, except insofar as they are incapable of financial measurement.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of VAT.
- 25 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Creditors represent the amount the charity anticipates it will pay to settle a debt or a provision for goods and services it has received not yet invoiced, measured at settlement amount.
## **1.6 Intangible fixed assets - goodwill**
Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill shall be considered to have a finite useful life, and shall be amortised on a systematic basis over its life of 4 years,
## **1.7 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings 2% on cost for buildings, no depreciation on land Fixtures, fittings & equipment 25% and 33% on cost Motor vehicles 25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.8 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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 the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
- 26 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
Cash deposits where maturity exceeds three months are treated as short term investments and carried in current assets.
## **1.10 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 of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
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 method. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors 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 cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services 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 or are discharged or cancelled.
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
- 27 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **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 underlying 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 affects both current and future periods.
- 28 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**general**
**2023**
**2023**
**£**
**£**
Grants income
-
39,316
Other
340
-
340
39,316
**Grants receivable for**
**core activities**
Herefordshire Council
Fair Cost of Care Grant
-
11,840
Herefordshire Council -
Infection Control
-
7,230
Coronavirus Job
Retention Scheme
-
-
Workforce Recruitment
and Retention
-
-
DWP Wage Grant
-
-
Education and Skills
Fund Agency
-
-
Herefordshire Council
Men's Mental Health
(HMMH)
-
19,201
Megan Baker House
-
735
Other
-
310
-
39,316|**Total**
Unrestricted
Restricted
funds
funds
general
**2023**
2022
2022
**£**
£
£
39,316
1,860
71,205
340
-
-
39,656
1,860
71,205
11,840
-
-
7,230
-
22,656
-
1,860
-
-
-
44,167
-
-
3,382
-
-
1,000
19,201
-
-
735
-
-
310
-
-
39,316
1,860
71,205|Total
2022
£
73,065
-|
|---|---|---|
|||73,065|
|||-
22,656
1,860
44,167
3,382
1,000
-
-
-|
|||73,065|
- 29 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **4 Charitable activities**
|**ILH**
**£**
Charitable activities
income
1,965,787
Analysis by fund
Unrestricted funds -
general
1,965,787
Restricted funds
-
1,965,787
**For the year ended 31 March 2022**
Unrestricted funds -
general
1,969,113
Restricted funds
-
1,969,113
**Investments**
Interest receivable|**Homecare**
**£**
473,185
473,185
-
473,185
426,120
-
426,120|**Third Party**
**Provider**
**Service**
**Hereford DPSS**
**Total**
**2023**
**Total**
**2022**
**£**
**£**
**£**
**£**
208,335
204,213
2,851,520
2,666,268
-
204,213
2,643,185
208,335
-
208,335
208,335
204,213
2,851,520
-
176,856
2,572,089
94,179
-
94,179
94,179
176,856
2,666,268
**Unrestricted Unrestricted**
**funds**
**funds**
**general**
**general**
**2023**
**2022**
**£**
**£**
4,439
3,019|**Total**
**2022**
**£**
2,666,268|
|---|---|---|---|
||||2,572,089
94,179|
||||2,666,268|
## **5 Investments**
- 30 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**6**
**Charitable activities**
Staff costs
Depreciation and impairment
Travel expenses
Training expenses
Telephone
Print, postage and stationery
Rent
Resources
Consumables and other
Bad debts
Charitable expenditure heading 15
Share of support costs (see note 7)
Share of governance costs (see note 7)|**ILH**
**Mens Health**
**£**
**£**
1,596,457
4,680
-
-
17,898
-
1,126
-
11,094
58
772
-
3
-
-
-
33,988
468
2,687
-
-
117
1,664,019
5,323
313,992
-
7,937
-
1,985,948
5,323|**Homecare**
**£**
426,069
6,250
35,390
1,126
7,682
647
-
-
9,778
216
-
487,158
45,706
1,105
533,969|**Third Party**
**Provider**
**Service**
**Hereford DPSS**
**£**
**£**
188,622
109,837
-
-
-
17
-
-
-
1,247
-
-
-
-
-
336
19,713
6,270
-
517
-
-
208,335
118,224
-
37,665
-
1,005
208,335
156,894|**Other**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**Total**
**2023**
**£**
2,325,665
6,250
53,305
2,252
20,081
1,419
3
336
70,217
3,420
117
2,483,059
397,363
10,047
2,890,469|**Total**
**2022**
**£**
2,215,802
(25,068)
48,427
2,468
19,715
4,984
-
7,788
63,301
-
-
2,337,417
366,746
9,898
2,714,061|
|---|---|---|---|---|---|---|
- 31 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
**----- Start of picture text -----**
6 Charitable activities
**----- End of picture text -----**
## **(Continued)**
|Analysis by fund
Unrestricted funds - general
Restricted funds
For the year ended 31 March 2022
Unrestricted funds - general
Restricted funds|**ILH**
1,955,924
30,024
1,985,948
1,936,568
13,462
1,950,030|**Infection**
**Control**
-
5,323
5,323
-
13,950
13,950|**Homecare**
533,969
-
533,969
543,811
16,267
560,078|**Third Party**
**Provider**
**Service**
**Hereford DPSS**
-
156,398
208,335
496
208,335
156,894
-
141,128
77,420
3,025
77,420
144,153|**Other**
-
-
-
-
-
31,570|**Total**
**2023**
2,646,291
244,178
2,890,469|**Total**
**2022**
2,589,937
124,124|
|---|---|---|---|---|---|---|---|
||||||||2,714,061|
- 32 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **7 Support costs**
|**Support costs**
**Governance costs**
**£**
**£**
Staff costs
260,075
-
Depreciation
24,343
-
Heat and light
2,876
-
Rates
1,724
-
Building maintenance
7,561
-
Print, postage and
stationery
10,556
-
Insurance
8,244
-
Computer costs
21,630
-
Accreditation fees
-
-
Bank charges
2,065
-
Subscriptions
3,181
-
Consumables and other
costs
10,855
-
Recruitment fees
10,083
-
Telephone
11,304
-
Training
15,993
-
Marketing
5,112
-
Legal and Professional
1,761
-
Accountancy
-
6,593
Committee meeting &
AGM expenses
-
3,454
397,363
10,047
Analysed between
Charitable activities
397,363
10,047|**2023**
**£**
260,075
24,343
2,876
1,724
7,561
10,556
8,244
21,630
-
2,065
3,181
10,855
10,083
11,304
15,993
5,112
1,761
6,593
3,454
407,410
407,410|**2022 Basis of**
**allocation**
**£**
211,488
26,450
4,393
2,312
5,189
6,074
7,563
26,948
13
1,899
1,870
9,063
2,444
10,292
22,697
26,978
1,072
4,868 Governance
5,030
Governance
376,643
376,643|
|---|---|---|
The above costs are apportioned to charitable activities on a time spent basis.
Governance costs includes payments to the auditors of £4,500 (2022- £4,500) for audit fees.
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year, one of the trustees was reimbursed £1,950 for travel and other expenses (2022: no trustees were reimbursed).
- 33 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **9 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|Direct charitable activity
Support
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2023**
**Number**
114
12
126
**2023**
**£**
2,336,684
190,755
58,301
2,585,740|**2022**
**Number**
102
13|
|---|---|---|
|||115|
|||**2022**
**£**
2,203,172
167,788
56,330|
|||2,427,290|
There were no employees whose annual remuneration was £60,000 or more.
## **10 Intangible fixed assets**
|**Cost**
At 1 April 2022 and 31 March 2023
**Amortisation and impairment**
At 1 April 2022
Amortisation charged for the year
At 31 March 2023
**Carrying amount**
At 31 March 2023
At 31 March 2022|**Goodwill**
**£**
25,000|
|---|---|
||16,146
6,250|
||22,396|
||2,604|
||8,854|
- 34 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **11 Tangible fixed assets**
|**Tangible fixed assets**||
|---|---|
|**Freehold land**
**and buildings**
**Fixtures,**
**fittings &**
**equipment**
**Motor vehicles**
**£**
**£**
**£**
**Cost**
At 1 April 2022
459,761
78,588
15,250
Additions
-
3,659
-
At 31 March 2023
459,761
82,247
15,250
**Depreciation and impairment**
At 1 April 2022
74,761
51,729
9,601
Depreciation charged in the year
6,919
13,609
3,812
At 31 March 2023
81,680
65,338
13,413
**Carrying amount**
At 31 March 2023
378,081
16,909
1,837
At 31 March 2022
385,000
26,859
5,649|**Total**
**£**
553,599
3,659|
||557,258|
||136,091
24,340|
||160,431|
||396,827|
||417,508|
## **12 Impairments**
Impairment tests have been carried out where appropriate and the following impairment loss reversal have been recognised in the statement of financial activities:
|In respect of:
Property, plant and equipment
**13**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**14**
**Current asset investments**
Unlisted investments|**2023**
**£**
-
**2023**
**£**
219,159
55,209
20,274
294,642
**2023**
**£**
171,620|**2022**
**£**
(31,570)|
|---|---|---|
|||**2022**
**£**
234,505
39,687
10,695|
|||284,887|
|||**2022**
**£**
295,554|
- 35 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **15 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
|Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2023**
**£**
48,558
640
9,643
90,230
149,071|**2022**
**£**
54,648
9,013
22,277
104,084|
|||190,022|
## **16 Retirement benefit schemes**
## **Defined contribution schemes**
The charity operates a defined contribution 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 the statement of financial activities in respect of defined contribution schemes was £58,301 (2022: £56,330).
- 36 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **17 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 April 2021**
**r**
**£**
Ukraine fund
-
Megan Baker House Ltd
-
HCC Fair Cost of Care Grant
-
Herefordshire Council Men's Mental Health (HMMH)
-
Wish Fund
9,418
Infection Control
-
Workforce Recruitment and Retention
-
Third Party Provider Service
-
-
Education and Skills Fund Agency
-
9,418|**Movement in funds**
**Incoming**
**esources**
**Resources**
**expended**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
22,656
(13,310)
44,167
(29,000)
94,179
(77,420)
3,382
(3,394)
1,000
(1,000)
165,384
(124,124)|**Movement in funds**
**Transfers**
**Balance at**
**1 April 2022**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**31 March 2023**
**£**
**£**
**£**
**£**
**£**
-
-
310
(310)
-
-
-
735
(186)
549
-
-
11,840
(11,840)
-
-
-
19,201
(5,323)
13,878
(9,418)
-
-
-
-
-
9,346
7,230
(16,576)
-
-
15,167
-
(15,167)
-
-
16,758
208,335
(194,776)
30,317
12
-
-
-
-
-
-
-
-
-
(9,406)
41,272
247,651
(244,178)
44,745|**Movement in funds**
**Transfers**
**Balance at**
**1 April 2022**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**31 March 2023**
**£**
**£**
**£**
**£**
**£**
-
-
310
(310)
-
-
-
735
(186)
549
-
-
11,840
(11,840)
-
-
-
19,201
(5,323)
13,878
(9,418)
-
-
-
-
-
9,346
7,230
(16,576)
-
-
15,167
-
(15,167)
-
-
16,758
208,335
(194,776)
30,317
12
-
-
-
-
-
-
-
-
-
(9,406)
41,272
247,651
(244,178)
44,745|
|---|---|---|---|
||||44,745|
- 37 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **17 Restricted funds**
**(Continued)**
Ukraine Fund: Monies raised for Ukraine.
Megan Baker House Ltd - Monies raised towards Megan Baker House.
Herefordshire Council Fair Cost of Care Grant: to improve sustainability of the 65+ care home and 18+ domiciliary care markets.
Herefordshire Council Men's Mental Health (HMMH): Includes £10,000 received from the Community Fund and income raised previously initially developed by the Chief Executive, to assist with the mental wellbeing of men in Herefordshire.
Wish Fund: Monies received to provide the Information Advice and Signposting Hub Service to coordinate information relating to well-being healthcare and support available in Herefordshire. Herefordshire Council have agreed that the balance can be transferred to unrestricted funds.
Infection Control: Monies received from COVID-19 grant funds
Workforce Recruitment & Retention: Monies received to support existing or recruit additional adult social care workforce
Third Party Provider Service: SIL manages the finance for an individual funded by the Clinical Commissioning Group (CCG).
Education & Skills Fund Agency: Fund Apprentice.
- 38 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**18**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**£**
**£**
Fund balances at 31
March 2023 are
represented by:
Intangible fixed assets
2,604
-
Tangible assets
396,827
-
Current assets/(liabilities)
629,052
44,745
1,028,483
44,745
**19**
**Related party transactions**|**Total**
Unrestricted
funds
**2023**
2022
**£**
£
2,604
8,854
396,827
417,508
673,797
600,449
1,073,228
1,026,811|Restricted
funds
2022
£
-
-
41,272
41,272|Total
2022
£
8,854
417,508
641,720|
|---|---|---|---|
||||1,068,082|
|||||
## **Remuneration of key management personnel**
The remuneration of key management personnel, is as follows.
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|91,590|84,595|
## **Transactions with related parties**
At the year end £198,714 (2022: £178,095) cash was being held separately in a client bank account by the charity on behalf of its service users in connection with the Payroll and Managed Accounts Service, to which the charity operates in an agent capacity.
During the year 2 (2022: 3) trustees received services from the charity amounting to £230,967 (2022: £165,048), at the balance sheet date £nil (2022: £3,978) was outstanding.
|**20**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
(Decrease)/increase in creditors
**Cash absorbed by operations**|**2023**
**£**
5,146
(4,439)
30,593
(9,755)
(40,951)
(19,406)|**2022**
**£**
28,291
(3,019
1,383
(101,013
31,364|
|---|---|---|
|||(42,994|
- 39 -
## **SERVICES FOR INDEPENDENT LIVING**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **21 Analysis of changes in net funds**
The charity had no debt during the year.
- 40 -