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2020-08-31-accounts

COMPANY NUMBER: 06368719 CHARITY NUMBER: 1122298

BISHOP ’ S STORTFORD MENCAP

TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR PERIOD ENDED 31 AUGUST 2020

BISHOP’S STORTFORD MENCAP 151 LONDON ROAD BISHOP'S STORTFORD HERTS CM23 3JX

TRUSTEES AND DIRECTORS: MR KEVIN DAVIS MR PATRICK DRAPER (RESIGNED 16 MARCH 2020) MR RICHARD SMITH MR DUNCAN MURDOCH MS TRACY FISHER MRS AMY DREW MR STEPHEN DOWNING MR DANIEL WRIGHT MR CHRISTOPHER THORN (APPOINTED 11 NOVEMBER 2019) COMPANY NUMBER: 06368719 CHARITY NUMBER: 1122298 OPERATIONAL NAME: GROVE COTTAGE BANKERS BARCLAYS BANK 10 NORTH STREET BISHOP’S STORTFORD HERTS CM23 2LH SOLICITORS TEES LAW TEES HOUSE 95 LONDON ROAD BISHOP’S STORTFORD HERTS CM23 2GW INDEPENDENT EXAMINER PRICE BAILEY LLP CAUSEWAY HOUSE 1 DANE STREET BISHOP’S STORTFORD HERTS CM23 3BT

BISHOP’S STORTFORD MENCAP
151 LONDON ROAD
BISHOP’S STORTFORD
HERTS
CM23 3JX
CONTENTS
Trustees’ Report 2
Independent Examiner's Report 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

The Trustees of Bishop’s Stortford Mencap (“Grove Cottage”) present their Trustees’ Report for Financial period ended 31 August 2020.

Governing Document

The Charity is a Company Limited by Guarantee, incorporated on 12 September 2007 and is a Registered Charity Number 122298). The Company was established under a Memorandum of Association which established the objects and powers of the Charitable Company and is governed under its Articles of Association. The Charity which is affiliated to the Royal Mencap Society (RMS), was formed in or around 1966. However, it receives no funding from RMS. It has been on the current site in London Road, Bishop’s Stortford since 1972.

Trustees’ Responsibilities

The trustees (who are also directors of Bishop’s Stortford Mencap for the purposes of company law) are responsible for preparing the Trustees’ Annual 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

Trustees and Directors

During the period under review i.e. September 2019 until August 2020 the following changes occurred.

Recruitment and Appointment of Board Members

The Board recruits new Trustees in order to maintain a wide range of skills to maximise the contribution of the Board towards to the goals of the Charity. The training of Trustees is under constant review to ensure that they are familiar with current thinking and legislative changes. Each Trustee is responsible for a different area of business of the charity (depending on their personal skills and expertise) and in addition have a responsibility for a specific club or activity within Grove Cottage for which they report back to the Board on a regular basis. It is the policy of the Board that a Trustee who has a responsibility for a club or activity visits at least once a term.

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

In March 2020, Mr Patrick Draper left the Board of Trustees, Patrick had been a Board member for 9 years and brought his vast experience in Education to Grove Cottage, Patrick was a great source of wisdom and guidance for the Trustees that was always delivered with both gravitas and good humour. On behalf of the Board of Trustees and all of the Grove Cottage family we give our heartfelt thanks for his invaluable contribution.

The Board of Trustees also owes a debt of gratitude to Dr Alec Clarke, who is currently the Director of Education and Skills at the St Elizabeth’s Centre in Much Hadham, for his invaluable advice during the Covid pandemic.

Management and Staffing

Grove Cottage has approximately 38 full and part time staff and numerous incredibly valuable volunteers. During the period under review Ms Rosie Wren, our Fundraising Manager, left to join the Farleigh Hospice, an organisation close to her heart. Rosie made a fantastic difference to Grove Cottage along with her team raising many thousands of pounds. On behalf of all of her friends at Grove Cottage I would like to thank her for her tireless efforts.

Risk Management

The Board reviews the major risks to which the Charity is exposed. External legal risks are addressed by insurance. Internal risks are minimised by means of regular and documented financial and operational reviews, as well as the implementation of clear reporting lines between the managers and staff and the Management Team and the Board of Trustees.

Fundraising

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. We confirm that all solicitations are managed internally, without involvement of commercial participators, professional fundraisers or third parties. The day-to-day management of all income generation is delegated to the Fundraising Manager at Bishop’s Stortford Mencap. Although the Charity is not required to be bound by any regulatory scheme, the Charity complies with the relevant codes of practice. We have received no complaints in relation to fundraising activities (2019: none).

Mission and Activities

Grove Cottage ‘the home of Bishop’s Stortford Mencap’ under the period of review continued to support approximately 200 members and their families. Grove Cottage continues to support both families and individuals in the Hertfordshire and Essex area. Structured in a club format, we provide life-long care for beneficiaries all of which have some form of learning difficulty. The club activities allow the personal and social development of our members and provide a welcome respite for families and carers. Grove Cottage also provides interventions of other kinds with the aim of improving and enriching the lives of our members.

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

“J loves attending Performing Arts group and the staff and other members have made him feel welcome from the start. Just wish he could come more often!”

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

Currently Grove Cottage operates a Special Needs Nursery, a Speech and Language Therapy service, Grove Cottage @ The Thirst Cafe and a range of clubs that are listed below

Performing Arts Youth Club Adult Club (Wednesday) Adult Club (Thursday) Saturday Club - Small Play Saturday Club - Big Play Saturday Club - Cottage Crew Holiday Clubs Get Active Club Cottage Creates Art Club Life Skills All the clubs are thriving and most are at, or near, capacity.

“A loves Grove Cottage, meeting with friends and all the staff who are always supportive and full of fun. Her favourite activities are baking, creative crafts and trips. She always feels safe and welcome and the opportunity to mix with friends of different abilities is a great advantage.

She celebrated her 21st birthday during the first Covid-19 lockdown and I was worried about making this a special day to remember. Yet again Grove Cottage staff stepped in to bring some friends together on a video call to make her day”.

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

Financial Review

Bishop Stortford Mencap’s income in the financial year was £601,108 (2019: £414,598). Expenditure in the year was £419,311 (2019: £378,889). This resulted in a surplus for the year of £181,797 (2019: £35,709).

The financial results reflect the ongoing changes in Grove Cottage as we seek to deliver and grow services for members and their families. The Board have decided to maintain the designated property reserve at £229,500 as we have now received formal planning permission to redevelop our existing site. It is our intention to start a fundraising campaign to help fund this and therefore we will be looking to grow this reserve further. This will enable us to meet the increasing needs of our members and to offer new clubs and opportunities, notably daytime activities for our adult members.

We continue to be indebted to our local community for a significant amount of our income; to those who generously gave their time organising or attending our fundraising events throughout the year, as well as those who approached us with generous donations. We would like to give a special mention to the work and impact of our many wonderful volunteers, without whom we simply could not operate.

Our good working relationships with Trusts and Foundations, grant-making organisations and community groups has generated a substantial proportion of our income and we continue to be grateful for their support.

Going Concern

Like many charities, we have been impacted by coronavirus which has disrupted our service delivery and our normal calendar of fundraising events. With strong reserves and access to government assistance we are confident that the charity has sufficient resources to see us through the pandemic and to be able to fully resume services when it is safe to do so. The charity believes it is financially viable for the next 12 months, even with the pressures of the current pandemic.

“P has attended Grove Cottage since he was 18 months old. As a family the respite care has been priceless. We are happy knowing P is cared for well so we can relax.”

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

Significant Donations, Grants and Restricted Income

During the year Grove Cottage was the beneficiary of many generous donations and grants, some of which came with restrictions attached. £171,119 is restricted income, of which £88,949 was restricted exclusively for running costs relating to our Special Needs Nursery and £25,000 restricted for the running costs of Grove @ Thirst Cafe.

We would like to thank all of our supporters who have helped to make a real difference to Grove Cottage and our community. We are appreciative of all donations, small and large. With particular thanks to the following grant-making organisations, community groups and individuals for their generosity:

Aurora Metropolitan Grand Lodge of London Bishop's Stortford Town Council Children in Need Co-op Local Community Fund David Warburton - Marshgate Developments Eastern Counties Educational Trust Ltd Ernest Hecht Charitable Foundation Garfield Weston Foundation Grumpy Givers, Whittles Family trust Hertfordshire Community Foundation Michael and Hannah Shine Simon Gibson Charitable Trust St Michael's Church The Archer Trust The Austin & Hope Pilkington Trust The Brazier Trust The Henry Smith Charity The National Lottery Community Fund Woodroffe Benton Foundation

Thank you.

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

“I was diagnosed with autism at the age of 7 years and also have learning difficulties. I struggle to read and write and rely on friends, family and Grove Cottage to help me day-today. Grove Cottage has given me a

purpose in life and has been a lifeline, especially this year. The staff know how isolating it is and have been in contact with me,

which also supports my family. Before COVID I enjoyed the sessions provided by Grove Cottage and volunteered in the nursery. I like mixing with the staff and children. I would be lost without Grove Cottage and I can’t wait until things go back to normal so I can see everyone again.”

Reserves Policy

Our aim for the next twelve months is to continue to strive for a balanced budget and to develop our plans for meeting our growing property requirements. At the year-end, Bishop’s Stortford Mencap has unrestricted reserves of £597,774 (2019: £416,235) which is made up of:

2020 2019
Designated funds £229,500 £229,500
Unrestricted fixed assets funds £175,599 £169,179
Unrestricted general funds £192,675 £17,556
Total £597,774 £416,235

Restricted funds at the year-end totalled £77,606 (2019: £77,348). It is the Board’s intention to maintain 6 months of projected expenditure as a contingency fund to facilitate sensible management of cash-flow as well as conservatively setting aside monies in the remote chance that the Charity would need to be wound down. This equates to £186,000.

We are not planning any significant refurbishments to the building this year. The cost of any unplanned improvements will be paid for out of reserves or with a sourced capital grant.

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

Achievements and Performance

The period under review has been full of challenges for everyone associated with the running of Grove Cottage and in particular our members and their families. The Covid pandemic meant that face to face services were suspended for a significant part of the year. However, I would like to pay tribute to the efforts of the Trustees, staff and volunteers who reacted in a positive manner by delivering services in alternative formats. These included ‘walk and talk’ sessions, club meetings over zoom and face-to-face sessions in the Grove Cottage Garden and the Grove @ Thirst Cafe. Our staff and volunteers also worked tirelessly during lockdown to maintain contact with some of our most vulnerable members by socially distanced home visits, phone contact and Zoom meetings where possible.

In the time prior to Covid and lockdown we delivered our services at the usual high standard and we were particularly pleased to have re-started our Life Skills sessions at the Thirst Café under the leadership of Kathryn Kehoe and to have secured funding so that Grove Cottage will soon be the Hertfordshire base for the inspirational ‘Music Man’ Project.

Grove Cottage has maintained a stable financial position during the period under review and has maintained an excellent level of service despite the challenges resulting from the pandemic. The charity continues to be indebted to our dedicated staff and volunteers who continually go the extra mile to care for our members and provide a stimulating environment changing the lives of so many. We are also indebted to the local community who are so supportive of our work.

“My daughter has been coming to Grove Cottage for 11 years. Grove Cottage has been a lifeline for her. She has always been incredibly independent and likes the feeling of being able to do things by herself, as she sees her brother doing. Being able to go to Grove Cottage gives her this opportunity to feel independent from us. She thoroughly enjoys ringing the bell and being able to go inside to join in with all the activities. It gives her the chance to make friends in her own right. It is always such a relief to us that we know she will be safe and

well cared for whilst also allowing us some respite. Everyone at Grove Cottage also has the most welcoming smile and it's fantastic to be part of such a wonderful community.”

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

Strategic Objectives and Plans for the Future

In 2019 the Board of Trustees met over a two-day period to review the strategic objectives which had guided the organisation since 2014.

The strategic review in 2019 focussed on identifying areas where Grove Cottage needed to develop.

The areas identified were as follows:

There has been a range of specific short, medium and long-term goals set along within a timeframe for each objective, with work stream ‘owners‘ identified to guide delivery.

As a charity, we have improved the provision of IT within the building having appointed a single contractor. Our financial situation is stable managed by a finance committee and we currently hold appropriate reserves. We have continued to adhere strictly to the relevant information legislation and have dedicated staff to manage our ‘eTapestry’ database.

As a Board of Trustees, we have been keen to invest in staff training and development and value tremendously the contribution of our staff members. We have as an organisation a high level of staff retention. The ‘review of offer’ is an important element to the success of our charity and during the lockdown period we have begun a review of the services we provide to ensure they are relevant to the needs of our members and their families; this work is ongoing and being led by our Operations Manager.

The overriding conclusion of the strategic review was the need for a new building. Having submitted planning permission application in 2019 we received the good news that our submission had been approved in March 2020. Since then, the Board of Trustees has been working hard to develop a structure to cater for fundraising, building construction and continuity planning. I am pleased to say that regardless of the restrictions placed upon our activity we have made particularly good progress in finessing the needs of Grove Cottage and the wider community as a precursor before we approach major grant-making organisations, some of which we have already begun to foster good relationships with.

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

Feedback survey results:

Grove Cottage asks members, families and carers to complete twice-yearly feedback surveys to enable us to monitor and evaluate our service provision.

In our most recent survey, our members and their families told us that they found lockdown difficult because of the loss of routine and face-to-face social contact. However, they also said that our activities help our members to meet and make friends, and parents can see an improvement in their children’s confidence and independence levels. 100% of respondents said that they would recommend to a friend, and 100% rated our overall service as “Excellent” or “Good”.

A number of people taking part in the survey reported that they found it difficult to book certain sessions because they were at full capacity, and they also highlighted that our current building is outdated. This reflects the feedback we collected from a range of stakeholders in our ‘Big Build Community Consultation’; our building is not fully accessible and does not enable us to fully meet our members’ needs. Respondents said that they valued the services currently delivered by Grove Cottage and identified potential areas for growth in the future. There was a desire for more out of school activities for children, day-time services for adults and more support and respite for families.

96% respondents supported a total rebuild of our premises if it brought about the changes above.

Approved by the Board of Trustees on 24[th] May 2021 and signed on its behalf:

Richard Smith Trustee

Bishop’s Stortford Mencap Trustees’ Report for Period End 31 August 2020

“I’ve been working at Grove Cottage for five years and I can’t think of another job I’d rather do. It’s such a unique place to work where every day is different. Seeing our members grow and develop through play and social interaction is truly rewarding. Whenever I am at work my brother Zac, who has attended Grove Cottage clubs for over 10 years, is always in my mind when it comes to the quality of care I provide. I work with a team of people with similar experiences, which creates an enjoyable and caring environment for staff and our members alike. As a staff member I feel my opinion is listened to, I feel valued and respected and I’ve taken up opportunities to gain qualifications and training. I always feel so proud to put on my purple polo top and work with the incredible Grove Cottage.”

Independent Examiner's Report to the Trustees of Bishop’s Stortford Mencap

I report to the Trustees on my examination of the accounts of Bishop’s Stortford Mencap (“the Company or the Charity”) for the period ended 31 August 2020.

Responsibilities and basis of report

As the Charity Trustees of the Company (and also its Directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your Examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & Wales which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not

  4. a matter considered as part of an independent examination; or

  5. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this Report in order to enable a proper understanding of the accounts to be reached.

Michael Cooper-Davis FCCA ACA For and on behalf of Price Bailey LLP Causeway House 1 Dane Street Bishop’s Stortford Hertfordshire, CM23 3BT

Date: 25 May 2021

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account) FOR THE PERIOD ENDED 31 AUGUST 2020

Unrestricted Restricted Total Total
funds funds funds funds
2020 2020 2020 2019
Note £ £ £ £
INCOME:
Donations and legacies 2 184,164 27,549 211,713 87,153
Other trading activities 3 64,637 - 64,637 92,576
Charitable activities 4 179,866 143,570 323,436 233,674
Investments 5 1,322 - 1,322 1,195
______ ______ ______ ______
TOTAL INCOME 429,989 171,119 601,108 414,598
______ ______ ______ ______
EXPENDITURE:
Raising funds 6 17,995 241 18,236 72,228
Charitable activities 7 229,691 171,384 401,075 306,660
______ ______ ______ ______
TOTAL RESOURCES EXPENDED 247,686 171,625 419,311 378,889
______ ______ ______ ______
NET INCOME / (EXPENDITURE) 182,303 (506) 181,797 35,709
Transfers between funds (764) 764 - -
NET MOVEMENT IN FUNDS ______ ______ ______ _____
FOR THE YEAR
181,539 258 181,797 35,709
RECONCILIATION OF FUNDS
Total funds brought forward 416,235 77,348 493,583 457,874
______ ______ ______ ______
TOTAL FUNDS CARRIED FORWARD 597,774 77,606 675,380 493,583
______ _ ______ ______

The notes on page 17 to 31 form part of these financial statements.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee) REGISTERED NUMBER: 06368719

BALANCE SHEET AS AT 31 AUGUST 2020

Note
£
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Cash at bank
484,740
Gift aid
13
1,183
Debtors
13
275
__
486,198
CREDITORS:amount falling due within
one year
14
6,821
____
NET CURRENT ASSETS
NET ASSETS
CHARITY FUNDS
Designated funds
15
Unrestricted fixed assets funds
15
Unrestricted general funds
15
Restricted funds
15		 2020
£
£
196,003
291,231
4,369
3,484
_
299,084
15,220
_
479,377
_
675,380
_
229,500
175,559
192,675
77,606
_
675,380
 2019
£
209,719
283,864
_
493,583
_
229,500
169,179
17,556
77,348
_
493,583

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

Richard Smith Treasurer and Trustee Approved by the Board on 24[th] May 2021

The notes on pages 17 to 31 form part of these financial statements.

BISHOP’S STORTFORD MENCAP

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 AUGUST 2020

2020 2019
£ £
Net cash inflow/(outflow) from operating activities:
Net movement in funds 181,797 35,709
Adjustments for:
Depreciation of tangible fixed assets 13,716 13,716
Interest from investments (1,322) (1,195)
Decrease/(increase) in debtors 6,395 (4,662)
(Decrease)/increase in creditors (8,399) 4,696
______ ______
Net inflow/(outflow) from operating activities 192,187 48,264
______ ______
Cash flows from investing activities:
Interest from investments 1,322 1,195
______ ______
Net cash used in investing activities 1,322 1,195
______ ______
Cash flows from financial activities: - -
(Decrease)/increase in cash in the year 193,509 49,459
Cash brought forward at 1 September 291,231 241,772
______ ______
Cash carried forward at 31 August 484,740 291,231
______ ______

The accompanying accounting policies and notes on pages 17 to 31 form an integral part of these financial statements. A net debt reconciliation for the statement of cash flows is disclosed in note 17.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) (effective 1 January 2019) and the Companies Act 2006.

Bishop’s Stortford Mencap meets the definition of a public benefit entity under FRS 102. Assets and liabilities recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

1.2 Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. A detailed commentary on its impact is detailed in the Trustees’ Report on page 6.

1.3 Company status

The Charity is a company limited by guarantee. The Members of the Company are listed below. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per Member of the Charity.

Members: Betty Slater, Mary Huxtable, Gwen Cooke, Natalie Trapmore, Nell Turfkruyer, Esther Callaghan, Jackie Parker, Susan Parker, Margaret Upton, Esme Willcocks, Andrea Charity, Kevin Davis, Richard Smith, Patrick Draper, Phil Morgan, Duncan Murdoch, Tracy Fisher, Chris Thorn, Daniel Wright, Stephen Downing

* Denotes Trustee

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Investment income, gains and losses are allocated to the appropriate fund.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.5 Income

All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Grant income is recognised when there is a firm commitment and certainty that the funds will be received.

Income tax recoverable in relation to donations received under gift aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

1.6 Expenditure

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Support costs are those costs incurred directly in support of expenditure on the objects of the Charity. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

1.7 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Deprecation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Motor vehicles – 5 years on a straight line basis

Freehold property is considered to have a very long useful economic life and the expected residual value of the asset is not considered to be materially different from its carrying value; as a result depreciation is not considered to be material and therefore has not been charged in the year.

1.8 Gifts in kind

Where services are provided to the Charity as a donation, the contribution is included in the financial statements at an estimate based on the value of the contribution to the Charity.

1.9 Pension Costs

The Charity operates a defined contribution pension scheme for employees. These assets of the scheme are held separately from those of the Charity. The annual contributions payable are charged to the statement of financial activities.

1.10 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date .

1.11 Cash at bank

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.

1.12 Creditors

Creditors 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 are normally recognised at their settlement amount after allowing from any trade discounts due.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 AUGUST 2020

1.13 Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their fair value as at the balance sheet date. All financial instruments of the charity are measured at cost.

Financial assets include the bank balances, trade debtors and other debtors but exclude prepayments and taxation.

Financial liabilities include trade creditors, other creditors, accruals and deferred income but exclude social security and other taxes due.

1.14 Key Source of Judgement and Estimate Uncertainty

No significant judgements, accounting policies or assumptions have been made by management in applying the charity’s accounting policies.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

2. DONATIONS AND LEGACIES

Unrestricted
Restricted
Total
funds
funds
funds
2020
2020
2020
£
£
£
Donations
184,164
27,549
211,713
__
_
___
184,164
27,549
211,713


 Total
funds
2019
£
87,153
______
87,153

Income from donations and legacies in 2019 was £56,396 of unrestricted income and £30,757 of restricted income.

3. OTHER TRADING ACTIVITIES

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Events and activities
64,637
-
_
_
Net income from trading activities
64,637
-

 Total
funds
2020
£
64,637
_
64,637
 Total
funds
2019
£
92,576
_
92,576

Income from other trading activities in 2019 of £92,576 was all unrestricted income.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

4. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Clubs
19,372
202
Special Needs Nursery
-
3,253
Speech and language therapy
8,280
-
Member subscriptions
-
-
Grants
147,824
140,115
Thirst
4,390
-
_
_
179,866
143,570

 Total
funds
2020
£
19,574
3,253
8,280
-
287,939
4,390
_
323,436
 Total
funds
2019
£
38,407
4,654
14,160
-
171,119
5,334
_
233,674

Income from charitable activities in 2019 included £120,143 of unrestricted income and £113,531 of restricted income.

5. INVESTMENT INCOME

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Bank interest
1,322
-

 Total
funds
2020
£
1,322
 Total
funds
2019
£
1,195

All of the investment income in 2019 was unrestricted.

6. RAISING FUNDS

Unrestricted
funds
2020
£
Events and fundraising
17,995
 Restricted
funds
2020
£
241
 Total
funds
2020
£
18,236
 Total
funds
2019
£
72,228

Cost of raising funds in 2019 was all unrestricted income.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

7. EXPENDITURE BY CHARITABLE ACTIVITY

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Clubs
14,628
41,393
Special Needs Nursery
13,874
94,293

Speech and language therapy
13,233
6,882
Grove Cottage @Thirst Café
1,875
14,371
Direct support costs (note 8)
186,080
14,446
_
_
Total
229,691
171,384

 Total
funds
2020
£
56,021
108,167
20,115
16,246
200,526
_
401,075
 Total
funds
2019
£
58,435
82,121
20,965
18,709
126,430
_
306,660

Expenditure on charitable activities in 2019 included £155,903 of unrestricted expenditure and £150,757 of restricted expenditure.

8. SUPPORT COSTS

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Staff costs
119,592
-
Equipment and repairs
11,900
-
Insurance
4,108
-
Occupancy costs
4,448
-
Motor vehicle costs (including depreciation)
2,007
13,716
Miscellaneous
33,279
480
Governance (see note 9)
10,746
250
_
_
186,080
14,446

 Total
2020
£
119,592
11,900
4,108
4,448
15,723
33,759
10,996
_
200,526
 Total
2019
£
62,274
8,347
4,034
4,304
15,749
23,649
8,073
_
126,430

Support costs in 2019 included £110,714 of unrestricted expenditure and £15,716 of restricted expenditure.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

9. GOVERNANCE COSTS

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Legal and professional fees
10,746
250

 Total
funds
2020
£
10,996
 Total
funds
2019
£
8,073

Governance costs in 2019 was all unrestricted income.

10. NET INCOME / (EXPENDITURE)

This is stated after charging

This is stated after charging
2020 2019
£ £
Depreciation of tangible fixed assets:
- Owned by the Charity 13,716 13,716
Independent examiner’s fee 1,620 1,620
_ _

During the year, no Trustees received any benefits in kind (2019 - £NIL).

During the year, a Trustee received £NIL (2019 - £30) relating to reimbursement of expenses.

There were no other related party transactions (2019 – £NIL).

11. STAFF COSTS

Staff costs were as follows:

Wages and salaries

Social security
Employers pension contributions
 2020
£
294,547

6,968
3,134
_
304,649

 2019
£
271,840
6,940
2,823
_
281,603

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

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

Administration
Fundraising
Front line services

 2020
No.
4
4
30
_
38
 2019
No.
4
4
28
_
36

No employee received remuneration amounting to more than £60,000 in either year (2019 – 0).

The Charity considers its key management personnel to comprise the Trustees as listed on the information page. No key management personnel received benefits in the year (2019 – Nil).

12. TANGIBLE FIXED ASSETS

Cost
At 1 September 2019
Additions
Disposals
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
Depreciation on disposal
At 31 August 2020
Net book value
At 31 August 2020

At 1 September 2019
 Freehold
property
£
168,000
-
-
_
168,000
_
-
-
-
_
-
_
168,000
_
168,000
 Motor
vehicles
£
68,580
-
-
_
68,580
_
26,861
13,716
-
_
40,577
_
28,003

_
41,719

 Total
£
236,580
-
-
_
236,580
_
26,861
13,716
-
_
40,577
_
196,003
_
209,719

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

13. DEBTORS

Due within one year

Prepayments and accrued income
Other debtors
Debtors control account		 2020
£
-
1,183
275
_
1,458
_		 2019
£
1,697
4,369
1,787
_
7,853
_

14. CREDITORS

Amounts falling due within one year

Accruals and deferred income
Creditors control account
PAYE and net wages
Other creditors		 2020
£
2,026
2,415
1,771
609
_
6,821
 2019
£
11,033
1,330
2,361
496
_
15,220

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

15. STATEMENT OF FUNDS

Brought Incoming Resources Transfers Carried
forward resources expended in/out forward
£ £ £ £ £
Restricted funds
Nursery - 88,949 (75,839) 764 13,874
Saturday Clubs - 15,000 (7,411) - 7,589
Grove Cottage @ Thirst Cafe 14,212 25,000 (16,499) - 22,713
Wednesday Adult Club 105 95 (95) - 105
Get Active 1,860 - (1,860) - -
SLT Salaries 1,712 - (1,712) - -
Easyjet Sing and Sign 250 - (250) - -
Evening Clubs 8,100 - (8,100) - -
Day trips for Nursery 205 2,405 (846) - 1,764
Big Play 1,011 - (1,011) - -
Clubs for Young People 200 - (200) - -
Holiday Clubs 9,153 - (9,153) - -
Thursday Adult Club - 50 (50) - -
Nursery - 18,050 (18,050) - -
SLT - 6,250 (6,250) - -
Get Active - 4,990 (1,652) - 3,338
Youth Volunteering - 4,770 (2,012) - 2,758
Children’s Services - 500 (500) - -
Music Man Project - 5,060 - - 5,060
Minibus 40,540 - (20,136) - 20,404
__ __ __ __ _
77,348 171,119 (171,625) 764 77,606
Designated funds - property 229,500 - - - 229,500
General funds 186,735 429,989 (247,686) (764) 368,274
__ __ __ __ _
Total funds 493,583 601,108 (419,311) - 675,380
__ __ __ __ _

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

15. STATEMENT OF FUNDS CONTINUED

Unrestricted funds

Included within unrestricted general funds are fixed assets of £175,599, leaving free reserves of £192,675.

Restricted funds

During the year, Grove Cottage was the beneficiary of many general donations.

Some grants and donations were specific in terms of what they were to be spent on, including:

BBC Children In Need - Large Grant £18,050
BBC Children In Need - Small Grant £15,000
Bishop's Stortford Town Council £2,530
Charity at Chubb £500
Co-op Community Fund £2,405
Eastern Counties Educational Trust £6,250
Hertfordshire Community Foundation - #iwill Programme £4,770
Hertfordshire Community Foundation - Large Grant £4,990
Hertfordshire County Council Locality Budget Scheme £750
David Warburton – Marshgate Developments - donation £25,000
I Aslan £520
The Brazier Trust £2,530
The National Lottery Community Fund £20,000

We are very grateful to all of the above for their generosity which has enabled us to offer our wide range of services to our beneficiaries.

Purpose of designated funds

Property Fund

The Trustees have designated funds to pay for a future redevelopment of the current site or a move to new premises.

Transfers

A small transfer to the Nursery fund was made during the year from unrestricted funds. In the prior year a large transfer was made from unrestricted funds to designated funds for the future redevelopment and to the Nursery fund to cover costs.

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

16. PRIOR YEAR’S STATEMENT OF FUNDS

Brought Incoming Resources Transfers Carried
forward resources expended in/out forward
£ £ £ £ £
Restricted funds
Nursery 1,050 60,306 (82,121) 20,765 -
Defibrillator 6 - - (6) -
Saturday Clubs - 10,000 (10,000) - -
Grove Cottage @Thirst Cafe 5,000 29,880 (20,668) - 14,212
Wednesday Adult Club - 175 (70) - 105
Speech and Language 496 4,958 (5,454) - -
Volunteer Co-ordinator 750 - (750) - -
Performing Arts 1,500 - (1,500) - -
Get Active - 1,650 (1,650) - -
Website Development - 2,000 (2,000) - -
Evening clubs - 7,582 (7,582) - -
Get Active - 2,000 (140) - 1,860
SLT Salaries - 5,000 (3,288) - 1,712
Easyjet Sing and Sign - 250 - - 250
Evening Clubs - 8,100 - - 8,100
Tesco Bags of Help - 1,000 (1,000) - -
Day trips for Nursery - 607 (402) - 205
Big Play - 1,427 (416) - 1,011
Children’s Clubs - 200 - - 200
Holiday Clubs - 9,153 - - 9,153
Minibus 54,256 - (13,716) - 40,540
__ __ __ __ _
63,058 144,288 (150,757) 20,759 77,348
Designated funds - property 125,000 4,500 - 100,000 229,500
General funds 269,816 265,810 (228,132) (120,759) 186,735
__ __ __ __ _
Total funds 457,874 414,598 (378,889) - 493,583

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Designated Total
funds funds funds funds
2020 2020 2020 2020
£ £ £ £
Tangible fixed assets 175,599
20,404		 - 196,003
Current assets 192,675
64,023		 229,500 486,198
Creditors due within 1 year -
(6,821)		 - (6,821)
Total 368,274
77,606		 229,500 675,380
ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR
Unrestricted Restricted Designated Total
funds funds funds funds
2019 2019 2019 2019
£ £ £ £
Tangible fixed assets 169,179
40,540		 - 209,719
Current assets 17,556
52,028		 229,500 299,084
Creditors due within 1 year -
(15,220)		 - (15,220)
Total 186,735
77,348		 229,500 493,583

BISHOP’S STORTFORD MENCAP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020

17. ANALYSIS OF CHANGES IN NET DEBT

This note refers to the cash flow note on page 16.

Cash and cash equivalents
Total net debt		 Opening
Cash flows
Other non
Closing
balance
2019
cash changes
balance
2020
£
£
£
£
291,231
193,509 -
484,740
291,231
193,509
-
484,740