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2024-03-31-accounts

REGISTERED COMPANY NUMBER: 04624968 (England and Wales) REGISTERED CHARITY NUMBER: 1099020

Report of the Trustees and Financial Statements for the Year Ended 31 March 2024

for Services for Independent Living

Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS

Services for Independent Living

Contents of the Financial Statements for the Year Ended 31 March 2024

Page
Report of the Trustees 1 to 8
Statement of Trustees' Responsibilities 9
Report of the Independent Auditors 10 to 13
Statement of Financial Activities 14
Balance Sheet 15 to 16
Cash Flow Statement 17
Notes to the Cash Flow Statement 18
Notes to the Financial Statements 19 to 28
Detailed Statement of Financial Activities 29 to 30

Services for Independent Living

Report of the Trustees

for the Year Ended 31 March 2024

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The trustees have adopted the provisions of 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).

CHAIR'S WELCOME

Welcome to the Annual Report for Services for Independent Living (SIL). Thank you for taking the time to read the report.

SIL has performed well during the year. In 2023 SIL won the Hereford Times Health and Social Care Award for the Best Place to Work for a second year in a row. Our retention and recruitment of staff during the year meant that we were able to increase our number of staff to 148 at the end of the year. This enabled us to provide more services to disabled and older people, and increase the service hours provided in Homecare and Independent Living at Home (ILH).

We were also able to increase the income from our direct payments section and we provided a significant amount of mental health training during the year. This enabled SIL to make a financial surplus of over £150,000 for the financial year to 31st March 2024.

Overall, in the Health and Social Care sector there are still significant challenges around funding and the retention and recruitment of staff. 80% of our work is charged at Council rates and Councils have faced significant funding issues. The national living wage increased by 10% for 2024/25. The funding that Councils received for social care from central government and from council tax did not increase by this amount. The Council increased the rates paid for homecare by 7% and for supported living by 8%. The Board therefore decided to increase staff wages by 8.5% for 2024/25.

I would like to take this opportunity to thank all SIL staff for providing a first class services to our service users, and the Senior Management Team for our excellent performance during the year managing the retention and recruitment of staff, and producing a financial surplus for the year.

Angela Higham Chair

Page 1

Services for Independent Living

Report of the Trustees for the Year Ended 31 March 2024

CHIEF EXECUTIVE'S SUMMARY

Welcome to our Annual Report and Accounts for 2023/24. I hope you find the content interesting and take the time to look through some of our achievements during the year.

SIL was successful during the year in retaining and recruiting staff. Staff numbers increased from 132 at the beginning of the year to 148 at the end of the year - a 12% increase. One of our objectives for the year was to make SIL the employer of choice in our sector and in the year we won the Hereford Times Health and Social Care Award for the Best Place to Work. In March 2024 we awarded an 8% pay rise to all staff. Over the last three years the pay award for staff has been nearly 30%.

The increase in staff has been in front line services and this has meant that we were able to increase our service provision in both ILH and Homecare. The increase in income for ILH and Homecare, together with increased income for our Directs Payment section and Mental Health first aid training provided in the year generated a surplus for the year for £148,717 from unrestricted funds. Our central costs were maintained at less than 15% of our income.

During the year SIL was awarded a contract by Herefordshire Council to provide mental health first aid training and over 200 people have benefitted from this training.

SIL has healthy reserves which are currently over £1m. These reserves are necessary because the Health and Social Care sector still faces significant challenges in both funding and in the retention and recruitment of staff. We will need reserves in future years to ensure that we can look after both our service users and our staff. During the year we allocated £25,000 of reserves to a Charitable Aim Fund. This will be used to fund projects to help service users, staff and other organisations improve independence and wellbeing.

During the year we had solar panels fitted to our building in Leominster. We have reduced our electricity bill significantly and now export electricity to the grid. Also, we presented our first Social Values Report showing where SIL delivers added value to our staff, service users and the wider community.

None of these achievements would be possible without our excellent workforce and I would like to take this opportunity to thank everyone who works for SIL. Without your support we would not be able to provide high quality services to the people we support.

I would also like to thank all of the people who use SIL's services. Without you there is no SIL. I really appreciate how you engage with the organisation, working with your support staff and attending the events we host throughout the year.

Finally, I would like to recognise the work of the SIL trustees. We have seven trustees who are volunteers and give a significant amount of time to ensure that the organisation is run well. Thank you for all that you do. I look forward to working with you all in the future.

Euan McPherson Chief Executive

Page 2

Services for Independent Living

Report of the Trustees

for the Year Ended 31 March 2024

OBJECTIVES AND ACTIVITIES

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 :

Achievement of Objectives 2023/24

SIL supported nearly 400 people throughout Herefordshire in 2023/24 through the services above. The people who used SIL's services include people with physical disabilities, learning disabilities, mental health, older people, Acquired Brain Injuries and carers.

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.

Services provided in pursuit of public benefit:

Page 3

Services for Independent Living

Report of the Trustees for the Year Ended 31 March 2024

ACHIEVEMENT AND PERFORMANCE Achievements and Successes in 2023/24

Listed below are some of our achievements and successes during the year:

FINANCIAL REVIEW

Financial position

The charity achieved a surplus of £157,428 in the year to 31st March 2024, compared to a surplus of £5,146 in the previous year. A surplus of £148,717 was made on unrestricted funds and a surplus of £8,711 on restricted funds.

Principal funding sources

The main source of income for SIL is from charitable activities provided for service users. These services provide individual care and support for disabled and older people, empowering them to lead an independent life.

- Herefordshire Council 54% of income
- Health Service 18%
- Service Users with Direct Payment accounts 22%
- Private Funders 6%

Investment policy and objectives

During the year SIL earned £15,369 on investments. The average investment balance in the year was £516,000 and the average rate of return was 3%. An Investment Report is presented monthly to Finance Committee.

SIL has adopted an ethical investment policy to ensure that its investments do not conflict with the organisation’s aims. The Trustees have agreed a list of approved banks and building societies that funds will be invested in. The Trustees have noted that the rate of return may be less from using the approved list, rather than going to the full market.

Surplus funds held by SIL will be invested prudently with regard to security, liquidity and return. No investments will be made for more than 95 days notice without the approval of the Trustees. SIL will maximise the return from investments ensuring security and liquidity and only using the approved list for investments.

In 2023/24 interest earned from investments was £15,369, compared to £4,439 the previous year. This is due to the increase in interest rates during this period. Over the last two years the Bank of England interest rate increased from 0.75% to 5.25%.

There was no borrowing during 2023/24 and there is no intention to borrow in 2024/25.

Page 4

Services for Independent Living

Report of the Trustees

for the Year Ended 31 March 2024

FINANCIAL REVIEW

Reserves policy

The total funds held by the charity at 31st March 2024 amounted to £1,230,655 (2023 - £1,073,228). This included restricted funds of £53,455 relating to the Third Party Provider and the Herefordshire Men's Mental Health Group and £25,000 designated funds for SIL's Charitable Aims Fund.

Free reserves, which include the amount of unrestricted funds at the year end excluding tangible fixed assets amounted to £730,192 (2023 - £629,052).

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 to cover the total cost of closure. The Trustees consider that this is a responsible way to maintain reserves and this level of reserve has been maintained throughout the year.

Annual Risk Assessment

SIL currently has three 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 **Likelihood ** Impact Score Mitigation
The rates paid by the Council do 5 4 20 A significant proportion of services are
not cover the cost of providing provided to Herefordshire Council. At present
care the rates paid by the Council do not reflect
the hourly cost of care. The Council published
a 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 rates paid for care.
National Living Wage increases 5 4 20 Investment in developing a full range of staff
lead to retention and recruitment benefits: sick pay, welfare visits and support,
issues as staff find other sectors training offer, mental health support, physical
more attractive financially wellbeing
programme,
supervision
and
support, social events.
Retention and recruitment of key 4 4 16 Recruitment of key staff is essential to the
staff
(particularly		 support ongoing
stability
and
growth
of
the
workers) and the ability to plan organisation. The availability of support
succession
with
a		 fluid and workers has a direct impact on our ability to
expanding organisation grow our Homecare and ILH services. We pay
competitive rates and have done a lot of work
on employee wellbeing and support, which has
reduced staff turnover and enabled us to be
seen as an employer of choice in our sector.

PLANS AND PRIORITIES FOR 2024/25

Our strategy for 2024/25 includes the following:

Page 5

Services for Independent Living

Report of the Trustees for the Year Ended 31 March 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Charity constitution

The charity is also a Company Limited by Guarantee and is therefore governed by Articles of association. It was incorporated on 24th December 2002. Registered charity status was obtained on 15th August 2003. SIL works with all disabled and older people who can benefit from our services.

Recruitment and appointment of new 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 three Board meetings, where they have speaking rights, but not voting rights and they are supplied with a role description, person specification and "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 2023/24 the Trustees provided good attendance at all meetings.

Evaluation of Board Performance

During 2023/24 Board meetings were held every two months and Finance Committee meetings were held monthly. Development Sessions were held every two months, including a session specifically to evaluate Board performance. All trustees have attended at least the minimum number of meetings.

Quality and Impact

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 Board meetings. The Trustees also operate a Finance Committee which reports to the Board and have Development Sessions every two months.

Organisational structure

SIL promotes the employment of disabled people in line with our guiding principles, 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 day-to-day management to the Chief Executive, who heads a senior management team comprising Heads of Service (for ILH, for Homecare and for Direct Payments), Head of HR, Head of Finance, Head of Marketing and Head of Projects and Initiatives. The senior management team report to Board on a regular basis. The remuneration of key personnel is set by the Board of Trustees.

At 31st March 2024 SIL employed a headcount total of 148 staff - 129 (87%) of whom were providing services and 19 (13%) support staff.

Page 6

Services for Independent Living

Report of the Trustees for the Year Ended 31 March 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Induction and training of new trustees

New trustees receive a Trustee Welcome Pack and meet with the Chief Executive and each of the senior managers. They also receive on line training through The National Council of Voluntary Organisations (NCVO).

Key management remuneration

The annual pay increase for all staff is approved by the Trustees. Any other changes to the pay for senior managers would be approved by the Board of Trustees.

Memberships

SIL is a member of the following organisations and alliances:

SIL is a signatory to the Social Care Commitment; a promise to provide high quality social care

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Page 7

Services for Independent Living

Report of the Trustees for the Year Ended 31 March 2024

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 04624968 (England and Wales)

Registered Charity number 1099020

Registered office

1 Owen Way Leominster Enterprise Park Leominster Herefordshire HR6 0LA

Trustees

A Higham D Hughes V L Manley (appointed 5.10.23) T R Misselbrook J Rogers S J Smalley (appointed 5.10.23) (resigned 8.2.24) J Thornby

Senior Management E McPherson - Chief Executive Officer P Skelton - Head of Finance

Company Secretary

E McPherson

Auditors

Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS

Bankers

Unity Trust Bank Plc Nine Brindleyplace Birmingham B1 2HB

AUDITORS

The auditors, Thorne Widgery Accountancy Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

..................................................... A Higham - Trustee

Page 8

Services for Independent Living

Statement of Trustees' Responsibilities for the Year Ended 31 March 2024

The trustees (who are also the directors of Services for Independent Living for the purposes of company law) are responsible for preparing the Report of the Trustees 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Page 9

Report of the Independent Auditors to the Trustees of Services for Independent Living

Opinion

We have audited the financial statements of Services for Independent Living (the 'charitable company') for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 21 to the financial statements, 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

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 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 10

Report of the Independent Auditors 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 charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 11

Report of the Independent Auditors to the Trustees of Services for Independent Living

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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.

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

As a result of these procedures we considered the opportunities that may exist within the organisation for fraud and identified the greatest potential for fraud in income, which was raised as a key audit matter in the current year. In common with all UK audits we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework the organisation operates in, focusing on provisions of hose laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The keys laws and regulations we considered in this context include the Companies Act, Charities Act and Charities SORP and tax legislation.

In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the organisation's ability to operate. These include health and safety.

In addition to the above, our procedures to respond to risks identified include the following:

We also communicated relevant laws and regulations and potential fraud risks to all engagement team members, including internal specialises and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Page 12

Report of the Independent Auditors to the Trustees of Services for Independent Living

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS

Date: .............................................

Page 13

Services for Independent Living

Statement of Financial Activities

(Incorporating an Income and Expenditure Account) for the Year Ended 31 March 2024

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
ILH
Mental Health Training
Homecare
Third Party Provider Service
Hereford DPSS
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
ILH
Mental Health Training
Hereford Men’s Mental Health Group
Homecare
Third Party Provider Service
Hereford DPSS
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
2,635
2,303,749
33,333
672,096
-
232,662
15,368
3,259,843
2,266,402
6,911
-
671,909
-
165,904
-
3,111,126
148,717
1,028,484
1,177,201		 Restricted
funds
£
8,694
-
-
-
208,905
-
-
217,599
-
-
12,169
-
196,170
-
549
208,888
8,711
44,744
53,455		 31.3.24
Total
funds
£
11,329
2,303,749
33,333
672,096
208,905
232,662
15,368
3,477,442
2,266,402
6,911
12,169
671,909
196,170
165,904
549
3,320,014
157,428
1,073,228
1,230,656		 31.3.23
Total
funds
£
39,656
1,965,787
-
473,185
208,335
204,213
4,439
2,895,615
1,985,947
-
5,323
533,969
208,335
156,894
-
2,890,468
5,147
1,068,081
1,073,228

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 14

Services for Independent Living

Balance Sheet
31 March 2024
Notes
FIXED ASSETS
Intangible assets
11
Tangible assets
12
CURRENT ASSETS
Debtors
13
Investments
14
Cash at bank
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS		 31.3.24
£
-
422,009
422,009
415,887
316,315
557,096
1,289,298
(480,651)
808,647
1,230,656
1,230,656
1,177,201
53,455
1,230,656		 31.3.23
£
2,604
396,827
399,431
294,642
171,620
555,320
1,021,582
(347,785)
673,797
1,073,228
1,073,228
1,028,484
44,744
1,073,228

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The notes form part of these financial statements

continued...

Page 15

Services for Independent Living

Balance Sheet - continued 31 March 2024

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. A Higham - Trustee

The notes form part of these financial statements

Page 16

Services for Independent Living
Cash Flow Statement
for the Year Ended 31 March 2024
31.3.24
Notes
£
Cash flows from operating activities
Cash generated from operations
1
176,576
Net cash provided by operating activities
176,576
Cash flows from investing activities
Purchase of tangible fixed assets
(45,473)
Invested into unlisted investments
(144,695)
Interest received
15,368
Net cash (used in)/provided by investing activities
(174,800)
Change in cash and cash equivalents in
the reporting period
1,776
Cash and cash equivalents at the
beginning of the reporting period
555,320
Cash and cash equivalents at the end of
the reporting period
557,096		 31.3.23
£
179,307
179,307
(3,659)
123,932
4,439
124,712
304,019
251,301
555,320

The notes form part of these financial statements

Page 17

Services for Independent Living

Notes to the Cash Flow Statement

for the Year Ended 31 March 2024

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.3.24
£
Net income for the reporting period (as per the Statement of Financial
Activities)
157,428
Adjustments for:
Depreciation charges
22,895
Interest received
(15,368)
Increase in debtors
(121,245)
Increase in creditors
132,866
Net cash provided by operations
176,576		 31.3.23
£
5,147
30,591
(4,439)
(9,755)
157,763
179,307

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£ £ £
Net cash
Cash at bank and in hand 555,320 1,776 557,096
555,320 1,776 557,096
Liquid resources
Deposits included in cash - - -
Current asset investments 171,620 144,695 316,315
171,620 144,695 316,315
Total 726,940 146,471 873,411

The notes form part of these financial statements

Page 18

Services for Independent Living

Notes to the Financial Statements for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The Trustees have assessed whether the use of the going concern basis is appropriate particularly after taking account of the impact of the current external financial environment. They have re-assessed the business plans, income and expenditure projections, and taken the Charity's reserve levels into account. Their conclusion is that there is no doubt about the Charity's ability to continue operating as a going concern.

The Trustees have made this assessment for a period of a least one year from the date of approving the financial statements and are assured that the Charity has adequate resources to continue to operate for the foreseeable future.

The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts.

Investment income is included when receivable.

Incoming resources from charitable trading activity are accounted for when earned.

Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis.

continued...

Page 19

Services for Independent Living

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% on cost - Fixtures and fittings Straight line over 4 years and Straight line over 10 years Motor vehicles - Straight line over 4 years

Revaluations

Land and buildings are subject to a full revaluation exercise at least every three years. The last full valuation took place at 31st March 2022.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Investments

Investments are valued at mid-market price at the balance sheet date. Realised investment gains/losses represent the differences on sale of investments between the proceeds on sale and the opening market value and/or cost of additions in the period. Unrealised investment gains/losses represent the differences between the closing market value and the opening market value and/or cost of additions in the period.

Debtors

Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any discounts due.

Cash at bank and in hand

Cash at bank and cash 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.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

continued...

Page 20

Services for Independent Living

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

2. DONATIONS AND LEGACIES

Unrestricted
Restricted
funds
funds
£
£
Donations
-
1,349
Grants
-
7,345
Other
2,635
-
2,635
8,694
Grants received, included in the above, are as follows:
Herefordshire Council Fair Cost of Care Grant
Herefordshire Council - Infection Control
Herefordshire Council Men's Mental Health
3.
INVESTMENT INCOME
Unrestricted
Restricted
funds
funds
£
£
Deposit account interest
15,368
-
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Care and support services
ILH
Care and support services
Mental Health Training
Care and support services
Homecare
Care and support services
Third Party Provider Service
Care and support services
Hereford DPSS		 31.3.24
Total
funds
£
1,349
7,345
2,635
11,329
31.3.24
£
-
-
7,345
7,345
31.3.24
Total
funds
£
15,368
31.3.24
£
2,303,749
33,333
672,096
208,905
232,662
3,450,745		 31.3.23
Total
funds
£
1,045
38,271
340
39,656
31.3.23
£
11,840
7,230
19,201
38,271
31.3.23
Total
funds
£
4,439
31.3.23
£
1,965,787
-
473,185
208,335
204,213
2,851,520

continued...

Page 21

Services for Independent Living

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

5. CHARITABLE ACTIVITIES COSTS

ILH
Mental Health Training
Hereford Men’s Mental Health Group
Homecare
Third Party Provider Service
Hereford DPSS
Other
6.
SUPPORT COSTS
ILH
Homecare
Hereford DPSS
7.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
Goodwill amortisation		 Direct
Costs
£
1,910,359
6,911
12,169
627,723
196,170
121,718
549
2,875,599
Management
£
342,060
44,186
44,186
430,432		 Support
costs (see
note 7)
£
356,043
-
-
44,186
-
44,186
-
444,415
Governance
costs
£
13,983
-
-
13,983
31.3.24
£
6,995
20,291
2,604		 Totals
£
2,266,402
6,911
12,169
671,909
196,170
165,904
549
3,320,014
Totals
£
356,043
44,186
44,186
444,415
31.3.23
£
4,500
24,340
6,250

continued...

Page 22

Services for Independent Living

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.

Trustees' expenses

2 (2023: 1) trustee was reimbursed £296 ( 2023: £1,950) for travel and other expenses.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 31.3.24
£
2,692,900
206,965
63,701
2,963,566		 31.3.23
£
2,336,684
190,755
58,301
2,585,740

The average monthly number of employees during the year was as follows:

31.3.24 31.3.23
Direct charitable activities 129 114
Support 12 12
141 126

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

31.3.24 31.3.23
£60,001 - £70,000 1 -

Remuneration of key management personnel totalled £97,002 (2023: £90,916 ) for the year.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
ILH
Homecare
Third Party Provider Service
Hereford DPSS
Investment income
Total
EXPENDITURE ON
Charitable activities
ILH
Hereford Men’s Mental Health Group
Homecare
Third Party Provider Service		 Unrestricted
funds
£
340
1,965,787
473,185
-
204,213
4,439
2,647,964
1,955,923
-
533,969
-		 Restricted
funds
£
39,316
-
-
208,335
-
-
247,651
30,024
5,323
-
208,335		 Total
funds
£
39,656
1,965,787
473,185
208,335
204,213
4,439
2,895,615
1,985,947
5,323
533,969
208,335

continued...

Page 23

Services for Independent Living

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Hereford DPSS
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
11.
INTANGIBLE FIXED ASSETS
COST
At 1 April 2023 and 31 March 2024
AMORTISATION
At 1 April 2023
Charge for year
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
12.
TANGIBLE FIXED ASSETS
Freehold
property
£
COST
At 1 April 2023
459,761
Additions
-
At 31 March 2024
459,761
DEPRECIATION
At 1 April 2023
81,680
Charge for year
6,924
At 31 March 2024
88,604
NET BOOK VALUE
At 31 March 2024
371,157
At 31 March 2023
378,081		 - continued
Unrestricted
funds
£
156,398
2,646,290
1,674
1,026,810
1,028,484
Fixtures
and
fittings
£
82,247
45,473
127,720
65,338
11,530
76,868
50,852
16,909		 Restricted
funds
£
496
244,178
3,473
41,271
44,744
Motor
vehicles
£
15,250
-
15,250
13,413
1,837
15,250
-
1,837		 Total
funds
£
156,894
2,890,468
5,147
1,068,081
1,073,228
Goodwill
£
25,000
22,396
2,604
25,000
-
2,604
Totals
£
557,258
45,473
602,731
160,431
20,291
180,722
422,009
396,827

continued...

Page 24

Services for Independent Living

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

12. TANGIBLE FIXED ASSETS - continued

Included in cost or valuation of land and buildings is freehold land of £113,833 which is not depreciated.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income		 31.3.24
£
329,016
65,407
21,464
415,887		 31.3.23
£
219,159
55,209
20,274
294,642

14. CURRENT ASSET INVESTMENTS

Unlisted investments 31.3.24
£
316,315		 31.3.23
£
171,620

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
VAT
Other creditors
Client accounts
Accruals and deferred income		 31.3.24
£
9,923
46,042
14,788
13,111
275,023
121,764
480,651		 31.3.23
£
640
38,814
9,744
9,643
198,714
90,230
347,785

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets
Current assets
Current liabilities		 Unrestricted
funds
£
422,009
1,234,841
(479,649)
1,177,201		 Restricted
funds
£
-
54,457
(1,002)
53,455		 31.3.24
Total
funds
£
422,009
1,289,298
(480,651)
1,230,656		 31.3.23
Total
funds
£
399,431
1,021,582
(347,785)
1,073,228

continued...

Page 25

Services for Independent Living

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Designated Charitable Aims Fund
Restricted funds
Megan Baker House Ltd
Hereford Men's Mental Health Group
Third Party Provider Service
TOTAL FUNDS
Net movement in funds, included in the above ar
Unrestricted funds
General fund
Restricted funds
Megan Baker House Ltd
Hereford Men's Mental Health Group
Third Party Provider Service
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Megan Baker House Ltd
Hereford Men's Mental Health Group
Infection Control
Workforce Recruitment and Retention
Third Party Provider Service
TOTAL FUNDS		 At 1.4.23
£
1,028,484
-
1,028,484
549
13,878
30,317
44,744
1,073,228
e as follows:		 Net
movement
in funds
£
148,717
-
148,717
(549)
(3,475)
12,735
8,711
157,428
Incoming
resources
£
3,259,843
-
8,694
208,905
217,599
3,477,442
At 1.4.22
£
1,026,810
-
-
9,346
15,167
16,758
41,271		 Transfers
between
funds
£
(25,000)
25,000
-
-
-
-
-
-
Resources
expended
£
(3,111,126)
(549)
(12,169)
(196,170)
(208,888)
(3,320,014)
Net
movement
in funds
£
1,674
549
13,878
(9,346)
(15,167)
13,559
3,473		 At
31.3.24
£
1,152,201
25,000
1,177,201
-
10,403
43,052
53,455
1,230,656
Movement
in funds
£
148,717
(549)
(3,475)
12,735
8,711
157,428
At
31.3.23
£
1,028,484
549
13,878
-
-
30,317
44,744
1,073,228
1,068,081 5,147

continued...

Page 26

Services for Independent Living

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

17. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Ukraine fund
Megan Baker House Ltd
HCC Fair Cost of Care Grant
Hereford Men's Mental Health Group
Infection Control
Workforce Recruitment and Retention
Third Party Provider Service
TOTAL FUNDS		 Incoming
resources
£
2,647,964
310
735
11,840
19,201
7,230
-
208,335
247,651
2,895,615		 Resources
expended
£
(2,646,290)
(310)
(186)
(11,840)
(5,323)
(16,576)
(15,167)
(194,776)
(244,178)
(2,890,468)		 Movement
in funds
£
1,674
-
549
-
13,878
(9,346)
(15,167)
13,559
3,473
5,147

A description of restricted funds is as follows:

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.

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).

18. EMPLOYEE BENEFIT OBLIGATIONS

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 £63,701 (2023: £58,301).

continued...

Page 27

Services for Independent Living

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

19. RELATED PARTY DISCLOSURES

At the year end £275,023 (2023: £198,714) 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 3 (2023: 2) trustees received services from the charity amounting to £316,806 (2023: £230,967), at the balance sheet date £220 (2023: £nil) was outstanding.

20. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

Page 28

Services for Independent Living
Detailed Statement of Financial Activities
for the Year Ended 31 March 2024
INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
Other
Investment income
Deposit account interest
Charitable activities
Care and support services
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Recruitment and training
Support Services
Travel expenses
Telephone
IT Costs
Sundries
Amortisation of intangible fixed assets
Support costs
Management
Wages
Social security
Pensions
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Marketing
Recruitment
Other costs
Building maintenance
Computer costs
Bank charges
Subscriptions
Carried forward		 31.3.24
£
1,349
7,345
2,635
11,329
15,368
3,450,745
3,477,442
2,446,051
186,362
58,080
9,477
15,000
60,009
33,621
45,277
19,118
2,604
2,875,599
246,849
20,603
5,621
2,075
8,259
11,511
7,420
10,279
5,152
7,000
13,421
6,889
21,412
2,210
2,465
371,166		 31.3.23
£
1,045
38,271
340
39,656
4,439
2,851,520
2,895,615
2,076,609
172,819
52,723
2,252
15,000
53,305
20,081
45,400
15,105
6,250
2,459,544
260,075
17,936
5,578
1,724
8,244
2,876
11,304
10,556
5,112
9,493
6,412
7,561
21,630
2,065
3,181
373,747

This page does not form part of the statutory financial statements

Page 29

Services for Independent Living

Detailed Statement of Financial Activities

for the Year Ended 31 March 2024
Management
Brought forward
Bad debt
Travel
Training
Office equipment
Depreciation of tangible and heritage assets
Governance costs
Auditors' remuneration
Committee meeting expenses
Accountancy and legal fees
Total resources expended
Net income		 31.3.24
£
371,166
1,628
869
22,421
14,057
20,291
430,432
6,995
2,747
4,241
13,983
3,320,014
157,428		 31.3.23
£
373,747
-
207
16,376
4,443
24,343
419,116
4,500
3,454
3,854
11,808
2,890,468
5,147

This page does not form part of the statutory financial statements

Page 30