Charlty reglslratlon number 1125686 Company reglstratlon number 0618298Z (England and Wales) EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr C Mlzen Ms N E Trlmmer Ms M JThurstsn MrA M Nomood Ms L Fennell Ms M S Stubbs MrAPTaylor (Appolnted 31 March 20241 Se¢retsry Ms M J Thurstsn Senlor menagement N Hardlng Chief Executlve Offlcer Charlty number 1125686 Company number 06182982 Reglstered offlcé Greenfleld Centre Greenfl&ld Road Eastbourne East Sussex England BN21 IJJ Audltor JamesTodd & Co Limited Drayton HOUSÈ Dréyton Lane Chichester WÈst Sussex England P020 2EW EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX CONTENTS Page Tru5tees' report lrndependent audltor'5 report Statement of financlal activities 9-10 Balance sheet 11-12 statement of cash flow5 13 Notes to the flnanclal statements 14-29 EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The trustees present thelr annual report and flnanclal ststements for the year ended 31 March 2024, The financlal ststements have been prepared In a¢¢ordancÉ wlth the accounting policles sÈt out In note I to the flnanc5al 5tstemerrts and eomply wlth the charlty's Memorandum and Artlcles of A5soclatlon, the Companles Act 2006 and Accountlng and Reportlng by Charltles,. Ststement of Recommended Practlce appllcable to charlties preparing their accounts in accordance with the Financlal Reportln8 Standard appllcable In the Ul< and Republlc of Ireland IFRS 1021 (effective l January 20191. Objective5 and activities The oblectlve5 of Eastbourne & Dlstrltt Mencap Llmlted as deflned In the Memorandum of Assoclatlon are: The care of people with a learning disabiliiy in partlcular by the pravi5ion of help and support for them and for thelr famllles, dependants and carers. To provlde or asslst In the provlslon of facllltles for the recreatlon or other lelsure tlme o¢cupation for people who have needed theTrof by reason of learnin8 disability with the object of improving their condition5 of life. Our key value5 for all servlce us@rs arÉ.' Indlvlduallty, equallty, freedom and cholce. We provlde servlces that offers compasslon, dÈdlcation and commltment to dellver the hlghest standards of Indlvldual and support wlth practlce5 that are of the highest quallty appropriate to the need5 of each individual in our care. Our objectlve Is to put servlce users at the centre of their own care. Wrth a continued asse55ment and enga8ement we provlde fulfilling and re￿rdIng lives to our Servi￿ users, the care and sUPPOrt we deliver is regularly reviewed to determlne the correct approoch and St￿tegY to support each Indlvldual's needs. We strongly believe in supwrtlng and encouraglng our servlce users to exerc15e thelr own bellets, but do not fÈel we can or should advance ilternatlve bellefs. We review our alms and actlvltles annually looklng at our achlevernents and the outcome5 of our work in the p￿vIoUS 12 months. Our revlew looks at the success of each key attlvlty wSth the benefits they have brought to those groups of Indivlduals we are established to help. The ￿VIeW also ensures that we remain focussed on our stated objectives at all time5 and vjith reference to the Charity Commission'5 public benefit guidance our future activlties are planned to enhance the welfare of our servlce users. Our key alms and actlvlties are: To ensure servlce users have the opportunlty to bè fully iTwolvÈd in the planning and delI￿ry of thelr own care. To ensure senAce users rtghts to prlvacy, refusal, dignity and independence are respected to the highest regard. To actively encoutage relatives and friends of service users to be involved in their INes. To continuously revlew, assess and promote a good quallty of Ilfe. To work In partnershlp with outside agencies to ensure optimum care Is delivered, To ensure there are evldence-based quallty assurance sy5tem5 in place to promote learningp chan8e and improvement. To rernaln tompllarrt wlth the latest leglslatlon and Company pollcle5. To ensure support practlce Is to the highest quality. To ensure support staff receive adequate training to fulfil their role5. To prornote environments whlch are professlonal In servlce creating a homely atmosphere. To promote honesty, integrity and transparency. To offer eomprehen5ive support and SUpe￿i510n and the opportunlty to bu51d careers wlthin the Company through trainln& study and personal development plans. Publlc beneflt The Executlve Committee continue to focus on the public benefit guidonTr i55ued by the Charities Commission In decldlng those Strategies the charlty takes In provldlng the care and supwrt to our serylce users. EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX TRUSTEES, REPORT {INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Ser¥lce$ esldentlal Care Homes The charlty provldes three resldentlal care homes In Eastbourne for Indlviduals wlth learnlng and physic81 disabSlltles each of whleh are Indlvldually registered by the CQC. Indlvlduals movlng Into one of our homes are assured that they can stsy for as long as they wish as our policy ¢ontlnues to be that It Is 'a home for life, subJect to the care and support we are able to provldÈ to them. All of the servltè user5 In our Ca￿ homes are funded by the Adult Soclal Care sector,, our total room space for the 3 homes Is currently 28. Da Core Servlces The eharity provldes a day care centre In Eastboume whlch provldes a programme of workshops and activitles for individua15 with learning disability: thi5 a150 provides respite ftsr famllles and carers. The varlous actlvltles are chosen by those who attend In order to support thelr needs to develop thÉlr IntÈractlons wlth other indlviduals and to Integt7te into soclety. Thls servlce15 avallable for use by any Indivldual wlthin the community with a learning disabiltty and15 funded both by Adult Social Care and by the individual/family where fundln8 Is not available to them. AchlÈvements and performan Significant actlvltles and achlevements against objectives The 5ast 12 months has seen 51Enlflcant changes starting wlth the flna1153tlun of the rebrandlng exerclge which has @ttabllshed trddlng name of'lnsplre Susse￿, thls took effect from l Décember 2023 and the Executive Commlttee, mernbe￿ and &115taff employed have efflbrdced thi5 chan8e as a positive move for the future of the charity. A new webslte creatÉd by OLJr buslness partners AThde￿on Norton Is now Ilve. A5 referred to In the financlal review the Company purchased the freehold of a new premises in Ea5tbgurne in FebrLtary 2024 and followlng major refurblshment and adaptatlon of the buildlng,. we fom)Èlly r@located the day cÈntrÈ and head offlce In May 2024. Wlth a Ereatly Improved envlronment and facllities the charity is now in a better p051tion to develop the Services pruvided to our Service u5er& The local commsjnity have 8lven a posltive reception to the Charlly moving into the area and have welcomedthe estsb115hment of a communlty hub at our newcentre. On the lyt Aprll 2024 work commenced with an extension at our Friday street horne, the work being Carried out is a major pr(>jert to add two addltional ground floor rooms for services users alongside a general ￿furbIshrne￿t of the home. The cost of the project has been budgeted at £200,000 and should be completed In lat@ summer 2024. It Is estlmated that the 2 new rooms will bring in addltlonal turnover of between £150,000 and £200,000 per year. The Charlty contlnues to put signlflcant efforts Into fundraislng wlth a current emphasis on ralslng funds to acqulre sultable transport for our setvlce users, speclflcally an addltlonal vehltle that will allow transportatlon for thosè conflned to wheelchair. The Trustees contlnue to appreclate the support the Company receives from the public who have given donation5 nd 5UPPOrted our fundra15ing. The Trustees would Ilke to put on record their gratltude for the loyal and dedlcated support from all staff throughout the year and appreclate the tlrne spent by volunteers, and employees working as volunteers outslde their working hours. helping with the work of the Charity, and recognlse the rlsk of costs increaslng If thls had to be done by pald staff. EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX TRUSTEES. REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Flnanclal revlew Results forthe flnanclal year 31 March 2024 are attached to thls report. The Company's Income from charltable attlvitles15 £2.551.821 whl¢h represents an increase of nearly 17% on thè prevlous year. Thls Increase has been obtalned as a result of ESCC Increaslng resldency and day care fundlng by IO%, a hlgh level of room oc¢upancy throughout the year and the excellent efforts of our mana8ement team In obtalnin8 slzeable fundin8 upllfts for 50me of our hlgh dependant servlce users. Last year's Trustees rewrt d￿W attention to a budget for 2023124 that would see the Company In surplus by the end of the financial year,. this has been the case with a surplus of £47,813: as thls reflects a major turnaround from many years of deficit the Executlve Commlttee wlsh to acknowl@dge the efforts of the CEO and management team In actompllshing thls tumaround. Durin6 the latter parts of the financial year major capital transactlons occurred with the sale of the freehold of 113 Pevensev Road. our day care and head offlc@ centre, and a bungalow called Holmworth a home p￿VIoUSlY used for supported Ilvlng,. the gross sales totsl for th15 was E815,000, Th15 has been reinvested as follows,, Purchase of new day care and head office centre for E525,000. Refurblshment costs of the new centre clrca £175,000: Contribution towards an extenslon at out Friddy Street hotTE Isee belowl, The 2 propÈrty salÈs have produced a 'booV proflt of £640,218 whlch is reflected In the financlal statements wlth an Increase to the unrestrlcted- designated fund, excluded from reserves, Reserves pollcy The purpose of the Company's re5erve5 15 to seGure the future of our 5erviGes and to fund projects that will improve the quality of life of our service user5. The level of reserves Is monitored and reviewed by the Executive Comrnittee on an ongolng bas15 in conslderlng the rlsk5 to Dur operatlon5 to: provlde funds whlch can be designated for speclfic projects to enable these projects to be undertaken at short riotice cover admlnlstratlon, fundralslng and support costs wlthout whSch the Company could not funrtion cover the funds held as functlonal flxed assets wkthout whlch the Company could not dellver adeqL¢ate care to Its residents and to avoid the nece551ty of re4li5ing fixed a55et5 held for the Company'5 use. Those funds held as functional fixed a55ets are designated and excluded from the calculation of re5eryes which recognlses these assets are used operatlonally and their d15P05al would adversely Impact on our abllity to dellver care to our beneflclarles. Tho level of free ffserves requlred to achleve thls amount had been approved by the Trustees at £300,000 whlch Is the sum the Trustees consider necessary to cover ongolng costs If there is a delay In recelving fundlng from East Sussex County Councll, Totsl funds at the end of the year amounted to E2,613,990 of whlch £2,098,353 was deslgnated. Of these deslgnated funds £1,996,029 relate to assets which are required for the Company to carry out its operations and hence, are not available for distributlon. The desl8nated funds were estab115hed by the Company to deslgnate funds for ongolng actlvltles in these are35. There were no restricted funds at the end of the year. Cash and Cash Equlvalents have Increased to £767,726 from £621,778. Over the years, building maintenancè has not suFficlently boen caryled out and thergforo the Bo2rd have dÈclded to I￿k at uslng free reserves andlor borrowlngi to Improve the condltion of our buildlngs, Asset Cover for Funds Note 26 sets out an analysls of the assets attributable to the varlous funds and a description of the trusts. The Trustees are confident the Company has sufflclent assets to meet the Company's obllgatlons on a fund-by-fund basls. Investment policv Aslde from retalnlng a prudent amount In res@rvos each year, most of the Company's funds are held on xhDrt tèrm deposit. EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR EI¥DED 31 MARCH 2024 MaJor rlsks The Executive Committee has assessed the major rlsks to whlch the Company Is exposed and are satisfied that systems are In plaTr to mitigate exposure to the major risks. The process of Identlfylng, evaluatlng and managing the major risks to which the Company Is exposed has continued throughout the year. Where any such weaknesses have been id@ntifiÉd, approprlate system5 or procedures have been estab115hed to mltigate rlsks the Company faces, Internal contrDI rlsks are mlnlmlsed by the Implementstion of procedures for authorlsatlon of all transactlons. Procedures a In place to ensure eompllance with all relevant leglslatlon Intluding health and saftty, equal opportunltles, servlce users, welfare, moving and handllng, fire aWa￿ne$S, medlcatlon, food hygiene amongst others. An Internal Audit System is In place whereby the Chlef Operatlng Officer carries out monthly check5 to ensure pollcl@s, procedures and safeguarding issues are belng corrertly carrled out and recorded. The flnanclal pressures from stsffln8 Costs wlll continue to have Impart durtng the comlng year as the Company contlnue5 to malntsin the l@vel of stafflng which provide the high levels of care tQ Safeguard our servlce users. Ourcurrent focus movlng forwdrd5 to manage rlsks are: Contlnued review of our main charltable objectives 50 they remaln relÈvant and In turne wlth the foundlng principles, also ensurlng thÈy are achlevable. Recruiting and retalnlng good quality staff to reduce the Impact of agency costs. ro alway5 maximlse our Income streams with.full occupancy and to work in consultation with ESCC to uplfft servlce userfees to appropriate level5, To expand the depth, experience and number of Trusteès. the Eyecuthje Committee actively seeks new people to joln thÈ Board as a key priority Stru¢turei governan￿ gnd m4nagement The Q)mpany 15 a charttable Company limited by 8uardntee incorporated on 26 March 2007 to take over the assets and liabilitie5 of the unlncorporated Eastbourne & Dlstrfct Mencap formed in 1949. The Memorandum and Artlcles of Assoclatlon Irewised in 20221 define the objects and powers of the Company. The Company Is govemed by the Trustees vlho are non-executive directo￿ for the purposes of Company law and under the Company'5 Article5 are known as the Executlve CA)mmlttee. The trustees, who arè also the dlrectors for the wrpose of company liw, and who served during the year and up to the date of sl8nature of the financlal ststements were,. Mrcmlzen Ms N E Trlmmer M5 M J Thurstsn MrA M Norwood Ms L Fennell Ms M S Stubbs MrA P Taylor (Appointed 31 March 20241 Retrultment and appolntment of trustees Under the Memorandum and Artlcles of Associatlon the Executlve Commlttee are appolntsd each year at the AGM by the membershlp In accordance with the Artlcles to hold office untll the end Of the next AGM. The membership is Invlted to nomlnate member5 for elettlon, The Trustees give thelr time voluntarlly and recelve no benÈfit5 from the Company. any expenses recla5med from the Company are Set out In the note5 to the accounts. The Executlve Commlttee meet a mlnimum of 4 tlmes a year to administers the Charities operatlons wlth the day to day management is the function of the Chief Executlve Offlcer and the senlor management team. EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX TRU5TEES' REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH2024 In the event of the Company beln8 wound up members are requlred to contrlbute an amount not exceedlng £1. Funds held as ¢ustodlan trustee The Company holds some monles on behalf of servlce users as custodlan Trustees, these monle5 are not assets of the Company and therefore the cash balances and credltors hwe been ellmlnated f rom the accounts. Statement of tkNstees' responslbllltles The trustees, who are also the dlrectors of Eastbourne & Dlstrfct Mencap Llmlted for the purpose of company law, are sponslble for preparing the Trustees, Report and the flnanclal statements In accordance wlth appllcable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accountlng Practlcel. Company Law requlres the trustees to prepare flnanclal statements for each flnanclal year whlch glve a true and falr view of the stste cjf affairs of the charity and of the incomin8 resources and applicatlon of resources, including the income and expenditure, of the charltable company for that year. In preparing these financial statement5, the trustee5 are required to: select suitsble accountlng pollcle5 and then apply them conslstentlv: obseNe the methods and principles In the Charities SORP; - make judgements and estlmates that are reasonable and prudent; and prepare the financial Statements on the going concern bosis unles5 It 15 inappropriate to presume that the charity wlll contlnue In operatlon. The trustees are responslble for keepin8 adequate accounting records that disclose wlth reasonable accuracy at any time the financlal positlon of the ch8rlty and enable them to ensure that the ftnanclal ststernents comply wlth the Companles Act 21x16, Th@y arÈ also responslble for safeguardlng the assets of the charSty and hence for takln£ reasonable steps for the preventlDn and detectlon of fraud and other irregularitie5. Audltor In accordance with the company's articles, a resolution proposing that Jarne5 TIKld & Co Limited be reappointed a5 auditor of the company will be put at a General Meeting. DIsc105U￿ of Informatlon lo auditor Each of the trustees ha5 confirmed that there is no Information of which they are aware which Is relevant to the audit, of whlch the audltor is unaware. They have further conflnred that they have taken approprlate steps to Identlfy such relevant Informatlon and to estsbllsh that the auditor Is aware of such Information, Tho tru ps, rowrt was approved by the Board of Trustees. Mrcmi Trustee Date.. EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF EASTBOURNE & DISTRICT MENCAP LIMITED Oplnlon We have audlted the flnanci815tatements of Eastboume & Dlstrlct Mencap Llmlted (the '¢harity'l for the year ended 31 March 2024 whlch comprise the statement of flna ncial actlvltles, the balance sheet, the ststement of eJsh flovn and notes to the flnanclal ststements, Includlng slgnlflcant accountlng pollcles. The financlal reportln8 framework that ha5 been applied in thelr preparatlon is appllcable law and Unlted Klngdom Accounting Standirds, includin8 Flnanclal ReportSng standard 102 The Flnonclul Reporting Stondord oppllcable In the UK Repuhllc of Ireland (Unlted Kingdom Generally Accepted Accountlng Practlcel. In our opinlon, the flnancial statements: give a true and falr vlew of the 5tstr of th@ charitable company's affalrs as at 31 March 2024 and of its Incomlng resourc@s and appllcatlon of resources, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accountlng Practlce- and have been prepared In accordance wlth the requlrements of the Companles Act 2006. Basls for oplnlon We condurted our audlt in accordance with Internatlornal Standards on Audltlng {UKI IISAS IUKII and appllcable law. Our respon5ibilitie5 under those standards are fijrther described In the Audltor's responslbllltles for the audit of the financial stotements Octlon of our report. We are Independent of the charlty in accordance wtth the ethlcal requirements that are relevant to our audit of the financial statements In the UK, including the FRC'S Ethical Standard, and we have fulfllled our othÈr ethical responsibilities in accordance with these requlrements. We belleve th* the audlt evidence we have obtsined Is sufflclent and approprlate to provldè a basls for our oplnlon. Conclusions rel8tln8 to 8olng concern In auditiriE the financlal statements, we have con¢luded that the trustees, use of the Eolng concem basls of accounting in the preparatlon of the financlal ststements Is appropriats. Based on the work we have performed. we have not IdentFfled any mater5al uncertaintlÈi relatlng to events or condltlons that indlvldually or collectlvelyl may cast significant doubt on the charlty's ablllty to continue as a going concern for a period of at least twelve months from when the flnanclal statements are authorised for Issue. Our resptsn5ibilitles a rnd the responslbllltles of the trustéés wlth reS[￿tt to golng concern are described in the relevant sectlons of thls report. Other Information The other information comprlses the Information Included In the annu31 report other than the flnancial ststement5 dnd our audltods report ther￿n. The trustees are responsible for the other Inft)rmation ctsntalned wlthin the annual report, Our oplnlon on the financial Statements does not cover the other Inforrnation and WÈ do n(rt express any forn) of assurance conrluslon thereon. Our responsibilty is to read the other Infomiatlon and, In doing so, conslder whether the other informatlon Is materlally Inconsistent wtth the flnancial statements or our knowledge obtained in the course of the audlt, or otherwise appea￿ to be materEally misstated, If we identify such material incenslstencies or apparent materlal misstatements, we are required to deterniine whether this glves rise to a materlal mlsstatement In the financial statements themselves. If, based on the work we hav@ pèrformed, we conclude that there Is a materlal misstatement of thls other Information, we are quired to report that fact. We have nothing to report In thls regard. EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EASTBOURNE & DISTRICT MENCAP LIMITED Matters on whlch we are requlred to report by exceptlon We have nothing to report in tEspect of the followln8 matters In relatlon to whlch the Charltlos (Accounts and Reports) Regulations 2008 requip us to report to you If, In our opinlon: thè Informatlon glven In the financlal Stydternents Is inconslstent In ary material respect with the tru5tee5' report,. or suff iclent accountlnB records have not been kept; or the financial 5tstements are not In agreement wlth the accountlng ￿COrdS,. or we have not recelved all the Informatlon and explanatlons we requlre for our audlt. Responslbllltles of trustees As explained mgre fully In the statement of trustees, rnsponslbllltles, the trustees, who are also the directors of the charlty for the purposé of company law, a￿ responslble for the prepatotion of the financial statements and for belng 5atlsfied that they glve a true and fair view, and for such Internal control a5 the trustees detsrmlne Is necessary tc enable the preparatlDn of flnancial statements that are f￿e from materSal misstatement, wh@thÈr du@ to fraud or error. In preparfng the financial statements, the trustees are responslble for assesslng the charity's ability to continue as a going concem, disclosing, as appllcable, matters related to going concern and u5in8 the golng concern basi5 of accounting unless the trustees elther Intend to liquid&te the charitable cornpany or to cease operatlons, or have no reallstlc alternatlve but to do SO. Iludltor's rÈsponslbllltles for the audlt of the financial statements We have been appolnted as auditor under seciion 144 of the Charitie5 Att 2011 and report Sn accordance wlth the Act and relevant regulations made or havlnE effect thereunder. Our oblectlves are to obtain reasonable assufdn¢e about whether the financial statements a5 a whole a￿ free from materlal mi53tatement, whether due to fraud or error. and tts Issue an audlto¢s report that Includes our opinlon. Reasonable assurance 15 a high level of assurance butls not a guarantee that an audSt conducted In accordance with ISAS IUKI will always detect a materlal mlsststèment when St exlsts. MSs5tatements can arise from fraud or error and are considered material IF. indlvldually or In the aggregate, they wuld reasonably be expected to influente the economlc declslons of users tsken on the basls of these flnanclal ststement5. The extent to whlch our procedu￿5 are capable of detsctln8 Irregularities, including fraud, 15 detslled below. As part of an audit In accordance wlth ISA5. wè ￿r¢[se professlonal Judgment and malntaln professional skepticism throughout the audit. We also; Identlfy and assess the risks of materlal mlsstatement of the financial statements, whether due to fraud or error, deslgn and perform audlt procedu￿$ reswnsive to those flsks, and obtain audit evidence that 15 sufficlent and approprlate to provlde a basls for our oplnion. The risk of not detecting a mater[81 misstatement resulting from fraud is higher than for one resultln8 from error, 35 fraud may Involve colluslon, forgery, Intentlonal omisslons, mlsrepresentatlons, or the override of Internal control. Obtaln an understsnding of lrternal control relevant to the audit in order to design audit proceduresthat are approprlate In the cIrCumstan￿5, but not for the purpose of expressing an oplnlon on the offectiveness of the Compan¢5 intsrnal control. Evaluate the approprlateness of accountlng pollcles used and the reasonableness of accountin8 estimate5 and related dlsclosures made by management. Conclude on the appropriateness of management's use of the golng concern basls of aecountlng and, based on the audit evidence obtained, whether a material uncertalnty exlsts related to events or conditions that may cast signlflcant doubt on the Company's ability to contlnue as a golng concern. If we conclude that a material uncertslnty exlst5, we are required to drdw Ottentlon in our auditor's rew)rt to the related dlsclosures In the flnanclal statements or, ￿f such dtsclosures are inadequate, to modlfy our opinion. Our conclusions are based on the audSt evldence obtslned up to the date of our audltorfs report. However, future events or condltlons may cause the Company to cèase to continue as a golng concern. Evaluate the overdll presentation, structure and content of the financlal statements, and whether thÈ financlal ststements represent the underlylng transactlons and events In a mannorthat achleves falr presentstlon. EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EASTBOURNE & DISTRICT MENCAP LIMITED A further descrlptlon of our responslbllltles is avallable on the Financial Reporting Council'5 website at,, https:// www.frc,or8.uk/audltorsrespon5ibillties, Thi5 description forms part Df our audltorts report. Usg of our report This report Is made solely to the charity's trustees, as a bo(ty, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audlt work has been undertaken so that we mlght state to the charlty's trustees those matters we are requlred to ststè to thom In an audltovs tEport and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsiblllty to anyone other than the charlty and the charlty's trustee5 as a body, for our audit work, for thls ￿pOrt, orfor the opinlon5 we have formed. Mlchelle Buuèrd FCA {SÈnior Statutory Audltorl for and on behalf of14mes Todd & Co LimFted Chartered Accountants Statutoyy Audllor Drayton House Drayton Lane ChichestÈr West Sussex En8land P020 2EW James Todd & Co Llmlted Is ellglble for appolntment as audStor of the charity by virtue of its eligibility for appolntment as auditor of a company under Section 1212 of the Companies Act 2006. O Ln Ln * LO tn 7J EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX BALANCE SHEET ASAT31 MARCH 2024 2024 202Y Notes Flxed assets Intangible asgets Tangible assets 16 17 30,180 1.965.849 7,600 1,$04,035 1,996,029 1,511,635 Current a￿et$ Debtors Cash at bank and In hand 18 62,576 767,726 67,119 621,778 830.302 1200,1101 688,897 1204,4101 Creditors: amounts falling due within one year 20 Net current assets 630,192 484,487 Total assets less current Ilabllltles 2,626,221 1,996,122 Credltors: amounts fall1￿ due after move than one year 21 112,2311 122,3501 Net assets excludlng penslon Ilablllty 2,613,990 1,973,772 Net assets 2.613,990 1,973.772 The fund5 01 the charity Restrlcted Income funds Unrestrlcted funds- general Unrestricted fund5- Designated fund 23 8,545 430,212 1,535,015 SIS.637 2,098,353 14 2.613,990 1,973,772 The company Is entltled to the exemptlon from the audlt requlrement contalned In sectlon 477 of the Companles Act 2006, for the year ended 31 March 2024, although an audit has been carrled out under section 144 of the Charities Act 2011. The dlrectors acknowledge thelr respon5ibllities for complying with the requirernents of the Companles Act 2006 with respert to accountlng records and the preparation of flnanclal statements. These flnanclal statement5 have been prepared In accordance wlth the provlslons appllcable to companles subject to the small companles reglme. 11 EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX BALANCE SHEET {CONTINUED) ASAf31 MARCH 2024 The financlal statements woro approved by the trustees on . MrCMIz TN$tee MrAM Trustee Ofwood Company re8lstratlon number 06182982 (England and Walesl 12- EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 202a Notès Cash flows from operatln8 artlvltles Cash generated fromllabsorbed by) operatlons 30 34,400 188,5931 Investlng a¢tl¥ltles Purchase of intsngible a55ets Purchase of tanglble flxed assèts Proce@ds from dlsposal of tanglble flxed assets Investment In¢ome recelved 118.7801 1657,8431 791,269 6,818 111,4001 121,3671 2,585 Net cash generated from/{ug8d In) Investlng actlvltles 121.464 130,1821 Finan¢lng actlvltles Repayment of bat)k loans (9,9151 19,3181 Net cash used in finan¢lng attfvltle5 19,9151 19,3181 Net Increa5elldecreasel in (ash and ¢ash equlvalents 145,949 1128,093} Cash and cash equlvalents at beglnnlng of year 621,778 749,872 Cash and cash equlvalents at end of year 767,726 621,778 13- EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Account1￿ pollcles Charity informatlon Ea5tbourne & Dlstrlct Mencap Limlted Is a private company limited by guarantee Incorporated In England and Wales. The reglstered offlce Is Greenfield Centre, Greènfield Road, Eastboume, East Su$5ex. BN21 IJJ, England, 1.1 Accountlng conventlon The flnanclal statements have been prepared in accordance wlth the charlty's Memorandum and Artlcles of Assoclatlon, the Companies Act 2006. FRS 102 The Flnanclal Reporting Standard appllcable In the UK and Republlc of Ireland" I'FRS 102.1 and the CharitSes SORP Accountlng and Reporting by Ch8rltles'. Statement of Recommended Practice applicable to charltles preparlng their accounts in aciordance with the Financial Reportlng Standard applicable In thè UK and Republlc of Ireland IFRS 1021 (effective l January 20191. The charlty Is a Public Ben@fft Entlty as deflned by FRS 102. Thè flnanclal statements are prepa￿d In 5terlln& which is the functional c￿r￿ncY of the charlty. Monetsry amounts In these financial 5tstements are rounded to the nearest £. The financlal statements have been p￿Pared under the historlcal cost tonventlon. The prlnclpal actountlng pollcles adopted are set out below. 1.2 Goln2 concern At the time of approving the flnanclal statements, thÈ trustees have a reasonable expectation that the charity has adequate resources to contlnue In operatlonal exlstence forthe fore5eeabte future. Thus the trustees continue to adopt tho golng concern basls of accounting in preparing the financial statements. 1.3 Charitable funds Unrestrlcted funds are avallable for use at the dk%cretion of the trustees in furtherance of thelr charitsble oblertlvÈs. DeslBnated funds comprise funds whlch have been sot aslde at the dlscretlon of the tru5tee5 for 5peGrfic purwses. The purposes and use5 of the deslgnated funds are set out in the rbote5 to the flnancÈal statements. Restricted funds are subject to speclfic condltlons by donors or grantors as to how they may be used. The purpose5 and Uses of the restrlcted funds are set out In the notesto the flnancial statements, 1.4 Income Income is recognlsed when the chartty Is leEally entitled to It after any perfcmiance condltlons have been met, the amounts ean be measured rellably, and it Is pft)bable that Income will be received. Cash donatlon5 are recognlsed on recelpt. Other donatlons are recognlsed once the charity has been notlfied of the donatlon, unless performance condltlons require deferral of the amount. Income tax recoverable In relatlon to donatlons recelved under Glft Ald or deeds of covenant is recognised at the time of the donation. Legacles are recognlsed on recelpt or otherwise if the charity has been llotlf￿d of an Impendlng distrlbution, the amount Is known, and recelpt Is expected. If the amount Is not known, the legacy is treated as a contingent asset. 14- EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Ac(ounting policies ICorrtinued} The followlng speciflc polleles are applled to partlcular categorles of Income: Voluntsry Income Is ￿e1Ved by way of legacies, donations, and glfts and other voluntar¥ Income Is Included In full In the statement of Financial Actlvltieg when receivable. Legacles are recognlsed In the accounts once the￿ Is sufflclerbt evldence that the Charlty Is entltled to such Income, provlded that the amount recelvable tan be quantlfled wlth relatlve accuracy. Donated services and facllltles are included at the value to the Charlty Whe￿ thls can be quantlfied. The value of seNlces provlded by volunteers has not been Included In these accounts, Provlslon of serwlces- income forthe provlslon of resldentlal and day care seNlces Is recognised for the perli)d covered by the servlce. Investment income Is reco8nised in the financial statements when receivable. Other tradlng Incomè Is recognlsed In the flnanclal statements when recelvable. 1.5 Expenifiture Expenditure Is recognlsed once there is 3 legal or constructlve obllgatlon to trdn5fer economic benefit to a third party, it Is probable that a trdnsfer of economlc benefits will be requlred In settlement. and the amount of the obllgatlon can be measured rellably. Expendlture Is cla5s[fl￿ by actlvlty. The costs of each attivity are made up of the totsl of direct Costs and shared costs, includlng support costs Involved Sn undertdking each activity. Dlrect Costs attributable to a slngle actlvlty are allocated directly to that activity. Shared costs whi¢h contrlbute to more than on@ actlvlty and support costs which aR not attributable to a 51Agle actlvlty are apportioned between those actlvities on a ba515 cor15iStent with the use of resources. Central staff costs are allocated on the basls of tlme sperrt, and depreciation charge5 are allocated on the portlon of the asset s use. 1.6 Intanglble Ilxed asset5 Other than goodwlll Intanglble assets acqulred separately frum a business are recognised at Cost and a￿ subsequently measured at cost less accumulated amorti￿tIon and accumulated impairment losses. Intanglble assets acqulred on buslness comblnations are recoEni5ed separately f rom goodwlll at the acqulsltion date where it Is probable that the expected future economlc benefits that are attrfbutsble to the asset wlll fli)w to the entity and the fair value of the asset can be measured rellably,. the Intangible asset arfses from contractual or other le8al rights,. and the intsnglble asset Is separable from the entlty. Amortlsation Is recognised so a5 to wrlte off the cost or valuation of assets less thelr resldual values over thelr useful lives on the followlng bases: Brandlng 10% stral8ht Ilne 15- EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Auountlng polldo$ {Contlnu#dl 1.7 Tanglble flxed #ssets Tanglble flxed assets are inltlally measured at Cost and subsequently measured at cost or valuatlon, net of depreciatlon nd any Impalrment losses. Depreciation Is ￿rOBnIsed so as to wrlte off the c05t or valuatlon of assets less thelr resldual values over their useful lives on the following bases: Freehold land and building5 Fixtu￿$ and ffttlngs MOtor￿h1£1eS 50 years straight Ilne IO% reducing balance 20% reducing balance The gain or loss arlslng on the dlsposal of sn asset Is detemilned as the difference between th¢ sale proceed5 and the carrylng valuè of the asset, and Is recognised in the Statement of financial activities. 1.8 Impaimient of flxed assets At each rÉpDrtlng end date, the charity review5 the carryln8 amounts of its Lingible and Intsnglble assets to detemilne whether there 15 any indlcation that those assets have suffered an Impalrment loss. If any such Indicatlon exlsts, the recoverable amount of the asset Is estlmated In order to determlne the extent of the impairrnent loss {if anvl. 1.9 Cash and cash equivalent5 Cash and cash equlvalents Include cash In hand, deposlts held at call with bank5, Other short-term liquid investments wlth orlginal maturlties of three months or le55, and bank overdrafts. Bank overdrafts are shown withln borrowlngs In current Ilabllltle5. 1.10 Flnanclal In$trumÈnts The charlty ha5 elected to apply the provisions of Sectlon 11 'Baslc Flnantlal Instruments. and Sectlon 12 '0ther Financlal Instruments Issues, of FRS 102 to all of its flrnanclal Instruments, Financlal Instruments are recognised in the charity's balance sheet when the charlty become5 Party to the contractual provisions of the instrument. Flnanclal assets ènd liabllltles are offset, with the net amounts presented in the financlal statements, when thor@ Is a legally enforceable right to set off the reco8nised amuunt5 and there Is an Intentlon to settle on 8 net basls or to realise the a55et and settle the liablllty simultsneouslv. Boslcflnanclulo55et5 Basic financial assets, whlch Include debtors and cash and bank balance5, are initially measured at transaction prlce Includlng transattion Costs and are subsequently carried at amortised cost uslng the effective interest method unless the arrangement constitutes a financin8 transactlon. where the transactlon Is measured at the present value of the future retelpts dlscounted at a market rdte of Interest, Financlal assets classlfled as re￿[vable within one year are not amort15ed. 16- EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accountlng pollcles (Contlnuedl 8osl¢flnunclal Ilubllltie5 Basic financlal Ilabilltles, Includlng credltors and bank loans are Inltlally recognised at transactlon price unless th arrangement constitutes a fSnancln8 transaction, where the debt Instrument 15 measured at the p￿sent value of the futu￿ payments discounted at a market rate of InterÈst. Financlal Ilabllltles classlfled as payable withln one year are not amortlsed. Debt Instruments are subsequently carried at amortlsed cost. U51ng the Èfféctlve Interest rate method, Trade credItO￿ are obllgatlons to pay for Eoods or servlces that have been acquired in the ordlnary course of opet7tlons from suppllers. Amounts p8y3ble are ¢la55ifled as current liabilitles If payment Is due wlthin on& year or less. If not, thev are presented as nOn-cur￿nÈ liabilitles. Trade credltors are rÉcognlsed Inltlally at transactlon prlce and subsequentlv measured at amortlsed cost uslng thé effectlve Interest method. De￿CognItion 0Aflnon￿¢IIli￿hll¥tYeS Financlal Ilabllitles are derecognlsed when the charity's contractual obligations expl￿ or are dlscharged or cancelled. 1.11 Employee benefits The cost of any unused hollday entitlement ￿ recognised in the period in which the employee's servlcès are recelved, Termination benefrt5 are recognlsed ImmediatÈly as an expense when the charity 15 demonstrably commltted to termlnate the employment of an employee or to pKwide termination benefits. 1.12 Retirement benefits Payments to deflned contrtbutlon retlrement benefit 5¢hemes are char8ed as an expense as they fall due. Cha￿e In a. 21 Creditors: amounts falllng due after more than one year 2024 2023 NotOS Bank loans 19 12,231 22,350 -24- EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Retlrement beneflt schemes 2024 1023 Deflned contrlbutlon schemes Charge to proflt or loss In respect of defined contribution schemes 33,185 27,541 The charlty operatei a deflned contrfbutlon pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity In an Independently admlnlst'ered fund, 23 Restricted funds The restrlcted fund5 of the charity comprlse the unexpended ￿lanceS of donatlons and grdnts held on trust subject to speclfic conditions by donors as to how they may be used. At l Aprll 1023 Inwmlng resource5 Resources expended Transfers At 31 March 2024 The Leaf Hall Projert 8,545 785 13,6201 15.7101 Previous year.. At l Aprll 2022 Incomlng resources Re50ur¢es expended Transfers At 31 March 2023 The Leaf Hall Projert 4,938 12.737 19,1301 8.545 The Leaf Hall Project 15 a soclal enterprlse project dellvered by Eastbourne Mencapi partnered with Our Neighbourhood, to enoble our servlce users to experlence working in the communlty. The prolect 15 funded by The Devonshlre West Blg Local Board created to distribute fund5 to benefit the local area. -25- EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (Co￿tINuED} FOR THE YEAR ENDED 31 MARCH 2024 24 Unrestrlrted funds- Designated fijnd These aré unrestrlcted fund5 which afft materfal to the charlty's activities. At l Aprll 2023 Incomlng resources ReSoU￿e$ expended Transfer5 At 31 March 2024 Sedgemoor and Framley resldents Hlve of Attlvlty Functlonal fixed a55et fund Drdma Greensleeves resldents Arundel Road resldents 14,672 14,054 1,500.467 3,726 420 1.676 114,6721 114,0541 619,961 124,7211 2,095,707 2,646 11,0801 14201 11,6761 1,535,015 619,961 124,7211 131,9021 2,098.353 Pre¥lous year: At l Aprll 2022 Incoming resouros Resour expended Transfers At al March 2023 SedEemoor and Frnmley resldents Hlve of Actlvlty Functlonal fixed a55et fund Drama Greensleeves resldents Arundel Road residents 14,672 14,054 1,526,734 3,726 421 1,676 14.672 14,054 1,500,466 3,726 421 1,676 147,6351 21,367 1.561.283 147,6351 21,367 1,535,015 Sedgemoor and Framley, Gr@ènsleeves and Arundel Road residents fund5 were established to hold funds to be used for rÈgidents' w8lfare. These fund5 were ifbitially set up when money started belng donated to the Home rather than Society. Thi5 has always been considered a deslgn3ted fund rather than a regtrictÈd oné, as the resident may move on fter a donatlon15 received, and before Itls spent. The Hfve of Actlvlty fund was established to hold donatlon5. gifts and funds towards the costs of the day servlces. Thls fund was iriitially set up when the Soclety receivÉd a g￿nt from the Natlonal Lottery towards the runnlng costs of the day servlce ft)r thÈ flrst th￿e years after It was set up. The Functlonal flxed asset fund wa5 estsblished to exclude funds held as functlonal fixed assets from generdl reserves. Thi5 IS to reco8nlse that these assets are used operatlonally and their disposal would a(fversely Impact on the charity's abllity to dell¥er it's alms. The expense from thls fund represents the depreciation charged durlng the year. The transfèrs to thls fund represents fixed &55ets purchased or sold during the year. The Drama fund has been deslgnated by theTrustees far the drama perfom)ances and shows put on byThe Hive, -26- EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH2024 25 Unrertrlcted fvnds The unrestrlcted funds of the charlty compr15e the unexpended balances of donations and 8rants whlch are not sublect to 5pe¢lftc condltions by don0￿ and grantors as to how they may be used. These include deslgnated funds whlch have been set aslde out of unrestricted funds by the trustees for speclfic purposes, At l April 2023 Incomlng resources Resources èxpended Transfers At 31 Mgrch 2024 General funds 430,212 2.571.026 12,523.2131 37,612 515,637 pr￿louS year: At l April 2022 Incomlng resources RÈsources expended Transfers At 31 March 2023 General funds 551,392 2,204.272 12,304,085) 121,3671 430,212 Z6 Analysls of net assels between funds Unrestricted funds ggnèral 2024 Unrestricted fund5 deslgnated 2024 Restrlcted funds Totsl 2024 2024 Fund balances at 31 March 2024 are represented bv: Intangible flxed assets Tanglble assets Current assets/lllabilltiesl Long term Ilabilities 30.180 1,965,849 102,324 30,180 1,965,849 630,192 112,2311 527.868 112,2311 S15,637 2,098,353 2.613, Unrestrlcted funds general 2023 Unrestrirted fund5 deslgnated ZOZ3 Restricted funds Total 2023 2013 Fund balances at 31 March 202a are represented hy: Intangible flxed assets Tanglble asset5 Current assetsllllabllltles} Long tem) Ilabillties 7,600 7,600 1,504,035 484,487 122,3501 1,504,035 30,980 444,962 122,3501 8,545 430,212 1,535,015 8,545 1,973,772 -27- EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL ￿ATEmE￿[S (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 27 Flnan¢lal ¢ommltmentSi guarnntees Ind contI￿ent Ilabllltles The Soclety sees It5 ove￿71 commltment In terms of providlng a 'Home for Life, for those wlth learnlng disabllltles. Due to its long term and uncertaln nature, it is not PDsslble to quantify th15 commltment. Operatlng lease commltments Le$5ee At the reportlng énd date the charSty had outstsndlng commltments for future minimum lease payments under non- cancellable operatlng leases, whlch fall due as follows., 2024 2023 Within one year etween two and fl¥e years 4,522 10,081 4,522 14,602 14,603 19,124 29 Related party transactlons Durlng the year the charlty entered into the fo11owin8 transaction5 With related partles.. Durln8 the year. 7 Trustee5 pald £140 In membershSps12023,' 1 Trustee £401. During the year, l Trustee paid for £851 of expendlture person311y, which was later repald to them in expen5es12023,. 1 Trustee £2761 30 Cash generated from operations 2024 2023 SurpluslldefTcltl for the year 640,219 1143,8411 Adjustments for: Investment Income recognised In ststement of financial activitie5 Galn on dlsposal of tangible r￿ed assets Amortisation and impalmient of intangible assets Depreclation and Imp21rment of tangible fixed assets 16,8181 1619,9611 17,6001 28,521 12,5851 3,800 44,067 Movements In working capital., Decrease in debtors (Decreasol In credltors 4,543 14,5041 14,528 {4,5621 Cash generated fromllabsorbed byl operatlons 34,400 188,5931 -28- EASTBOURNE & DISTRicf MENCAP UMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 31 Analysls of changes In nel funds At l Aprll 2023 Cash flowg At 3L March 20Z4 Cash at bank and in hand 621,778 145,948 767,726 Loans falllng due wlthln one year Loans falllng due after more than one year iio,0001 122,3501 12041 10,119 10,2041 1112311 589,428 155,263 745,291 -29-