Charity Tegi5tration number 1125686 (England and Walesl Company registration number 06182982 EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX LEGAL AND ADMINISTRATIVE INFORMATION Trustee5 Ms M J Thurstan Mr A M Norwood Ms L Fennell Ms M S Stubb5 Ms ChrIS￿ne Folev (Appolnted 30 Aprll 2025 Se¢relary Ms M J Thur5tan Senlor mahogemÈnt Mrs N Hardlng Chlef Executive Offlcer Charlty wmber {England Ind Wale51 112S686 Company number 06182982 Registered office Greenfield Cent Greenfield Road Eastbourne East Sussex England BN21 IJJ Auditor James Todd and Co Limited Drayton House Drdyton Lane Chlchester West Sussex England P020 2EW EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX CONTENTS Trustees, report Independent auditoe5 ff port Statement of financl81 acttvlties 9-10 Balance Sheet 11-12 Statement of cash flows 13 Notes to the financial statements 14-27 EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORTI FOR THE YEAR ENDED 31 MARCH 2025 The trustsÉs present thelrannual report and flnanclal statements for the year ended 31 March 2025. The linanclal statements have been prepa red In accordance with the accounting pollcles set out in note I to the financSal statements and comply wlth the charlty's Memorandum and Arknc1e$ of k50clation, the Companles Att 2006 and Accounting and Reporttng by Charlties: Statement of Recommended Practice appllcablè to charitles preparlng they accounts In accordance with the Financlal Reporhng Standard applicable In the UK and Republic of Ireland IFRS 1021" (effective l January 20191. Objectives and activities The objectives of Eastbourne & Dlstrlct Men¢ap Llmlted as defined in the Memorandum of Assoclation are.. The care cf people with a learnlng dlsability In particular by the provlslon of help and support for them and their famllles, dependants and carers, To provlde or asslst In the provision of faclllties for the recreation or other lelsure ￿rne and occupation for people who h4ve need thereof by fftason of learnlng dSsablllty with th@ oblett of improvlng thelr condStion5 of life. It Is our alm to put servlce user5 at the centre of their own care and with a continued as5es5ment and engagemènt we strive to provide fulfilling and rewarding lives. Our key alms and activltle5 are: To ensure service user5 have the opportunlty to be fully invDlved In the plannlng and dellvery of their own cate. To ensure seNlce user5 rlghts to prlvacy, refusal, dlgnlty and independence are respected to the highest regard. To acNvely encourage relaiives and friends of servlce users to be involved in their Ilves. To continuously review, a55es5 and promote a good quallty of Ilfe, To work in partnershlp wlth 0￿51de I￿ncle$ to ensure opttmum care Is delivered. To ensure there are evldence~based quality a55urance systems in place to promote learnlng, change and Improvement. To remain compliant with the latest leglslation and coM￿nY pollcles. To ensure 5UPPOrt practlce Is to the hlghest quality. To ensu￿ support staff re￿1Ve adequate trainin8 to fulftl their role5. To promote environments which are professlornal In servlce creating a homÈly atmosphere. To promote honesty, Integrlty and trangparonry. To oFFer comprÉhenslve support and supervision and the opportunity to build careers within the Company through Iralnln& study and personal development plans. Our key values for all senrlce users are: Indlvlduallty, equallty, freedom and choice, We provlde services that offers compasslon, dedlcafjon and COMMIt￿nt to dellver the highest 5tsndards of Indlvldual care and support wlth pradces that are of the highest quallty approprlate to the needs of each Indfvldual In our care. We ensure that all care and support Is conslstently delivered and regularly reviewed to determlne the optimum approach and strategy to support each Indlvidual's need5 All Manage￿ and teams recèlve rÈgulartrdlnlng that Is relevant and approprlate to de81 with the demand and challenges of thelr roles In provldlng exceptional quallty Ca￿ and support. We wiew our aims artd activitie5 annually looklng at our achlevoments and the outcomes of our work In the prevlous 12 month5. Our review looks at the succes5 of each key acuvlty with the benefits they have brought to those groups of individuals we are established to help. The review also ensures that we rernain focussed on our stated objectives at all times and wilh reference to the Charity Commisslon's public benelit guidance our future activltles are planned to enhan￿ the welfare of our service users. We strongly believe in supwrting and encouraglng our servlce usets to exerclse thelr own beliefs, but we do not feel we Can or should advance altsmative bellefs. Publlc benefft The Executive Commlttee contlnue to focus on the public benefit guidance Issued by the Charlties Commisslon in decldlng those strat@glès the charlty tskes In providing the care and support to our service users. EASTBOURNE & DISTRicf MENCAP LIMITED T/A INSPIRE SUSSEX TRUStEES' REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Resvdentlal Core Ho The charity provides three residential care homes In Eastbourne for indlviduals wlth learnlng and physical disabilities each of whlch are Indlvidually reglstered by the CQC. Indlvlduals movlng into one of our homes are assured that they tan stay for as long as they wlsh as our pollcy continue5 to be that it is 'a home for Ilfe, sublect to thè care and support we are able to provlde to them, All of the service users In our care homes are funded by the Adult Soclal Care settor: ourtotal room space for the 3 homes is currEntly 30. The charity providÈs a day care centr& In Eastbourne whlch Pfevides a programme of workshops and ￿tiVItreS for indlvlduals wlth learning d153billtyi thls also provldes respite for fawnilies and ca￿r5. The variou5 activities are chosen by those who attend In order to support their needs to develop their interactions wlth other Indivlduals and to Integra1e Into Society, This service is avallable for use by any individual wlthln the community wlth a leamlng d15abllity and is funded b(Ah by Adult Social Care and by the Indlvlduallfamlly whÈre fundlng Ss not avallable to them, A¢hlevements and performance Signift¢ant acLl¥ltles and achlovèments agalnst obJectlve5 The financlal year has provided mixed challenges alongside difficult economlc and politlcal outlook. The company has undergone sUbstan￿al Investments to Improve the provlslon of faclllties to both 5eiviGe users and staff.. completlon of the refurbishment to our new day ￿ntre and head c)fRces, eKiension tc and refurbishment of our home at Greensle￿@S, Frlday Street, together these projÈctg have cost over £400,000 a substantial figure for our Charity to have Invested and the Trusteès expre&8 thanks to all who have been involved In the 5ucce55ful ¢omplellon of these two pmleets. The financlal statement aArl revlew summarlse the financlal challenge5 through the 12 months Since the last report. The usè of agency workers at a far higher Staffing c95t has had a significant impact on the flnances and profitabllity in the year, recruitsng replacements where stsff have moved on to flnd new experlences arid roles contlnues tD be dlfficult y￿th the time taken to find, employ and traln suitsble indlvlduals Into the role whllst continuing to staff with asency wot*ers. Unfortunatelyi two of our lon8-term servlce users passed away durlng the year and a third relocated to a new home, a5 a result 3 beds have been unoccupled for several weeks during the year wlth a sizeable1055 of income impacting our results. Challenges have been had placing suitsble Indlvidua15 from the local authority who satisfy our core structure and fundlng model5, Our new day centre has gone from strength to St￿ngth throughout the year with constant increases In the number of service users on the reElSter, most wlth fundlng from the ESCC the local authorlty. The Trustees are comfortsd that this constitutes a successful investment decision to relocate, the new envlronment has prcvlded major benefits to serv*e users and allowed an Improvement in the activitie5 provided. The Charlty continues to put significant efforts into fundralsing but In a hlghly compokntive envlronment findlng the right support In our fundraising activities provlded dIfficul￿e5, a review of our fundraislng strategy is ongoln& and the Trustees will actively engaee to support fundralslng aedvlUes for futu￿ prejects, The Tru5teÉs do conttnue to appreclats the support the Company receives from the publlc who hwe gvèn donadons and supported our fundraising activities and would like to put on record thelr gratitude for tho loyal and dedlcated support frt)m all stsff throu8hout the year and appreclate the time Spent by employees who work outside their normal hours in supwrt of the Charity. EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORn IcoNrriNUED) FOR THE YEAR EhlDED 31 MARCH 2025 Our future continue5 to depend on effectlve leadershlp and governance wlth sound fiTranclal management and as Trustee5 we will conifjnue to ensure we get the baslcs rlght. 2025126 will be a year of consolidation with a financial objectlve to move awav from a deftcit to a surplus and to improve the level of reserves ft)Ilowing a y&ar of Investment. S￿IfiC1Tht financial pressures, along with all buslnesses in the UK. havo been placed upon us wlth the government In(￿ase9 Is National Insurance and the mlnlmum wage. The ESCC upllft of adult s(￿la1 care fees for 2025126 of 4% has not covered the Increased 5tsff costg of over 5%, We will therefo￿ have continual constructive dialo8ue wlth ESCC to ensure awareness of the current level of pressure$ evldent In the running of our seNices and the finzntlal Impllcatlons of fundlng below levels ￿QUI￿d to ensure we continue to satfsfy the ffilgh care frnmework, requI￿d by our CQC registratlon. The local aLrthority have conlirmed a policy golng forward5 of placlng Indlvlduals wlth higher dependency into services such as our5. This is a concern as It will Impact our hlstorlc buslness model of homes that provide a residency for servlce users who are less dependent. The Trustees will have to prepare for the new chollengeg that thls change In pollcy by ESCC wlll brlng Specifically in ensuring 311 our staff continue to satisfy Service user needs and adequate fundlnE Is received. Financial re¥lew Results for the financlal year 31 March 2025 ore attached to this report. A comparlson to the 2023124 financlal year shows an uplfft In turnover lexcludlng donation5, interest and fundraising) of 11.45% to £2,847,624; unoccupled rooms c05t approximately £85,000 in lost income for the year. ESCC upllfted adult social care fees for 202415 by 7% (well bèlow the Government increase lrn the mlnlmum wage of ia%) but successful efft)rts to obtain additional funding for speclfic servlce user5 has posltively Impacted turnover. Our Staffing c05t5 have rlsen during the year by E429,624, an uplift of 19.75% from 2023124: the factor5 (?￿S1￿g this rise are a IO% pay uplift to all staff, a rellance on a￿ncY gtsff for a slzeable part of the year and redundancy costs. Donations, interest and fundralsirsg has contrlbuted £2D,495 additional income for the year, After accounting for overheads the company reports a deft'clt of £129,928 before depreciation for the financlal year, Reserve$ pollcy The purpose of the Company's reserve5 IS t0 5eeurÈ the future of our servlces and to fijnd projects that wlll improve the quality of life of our seNlce users. The level of reserves Is monltored and revlewed by the Executwe Committee on an ongoing basls In consldering the risks to our operations to, provlde funds which can be de518nated for specific projects to enable these proJects to be undertaken at short notice cover admlnlstration, fundra15in8 and support Costs without which the Company could not function cover the funds held as functional fixed assets without whlch the Company Could not dellver adequats care to Its residents and to avold the necessity of reallslng flxed assets held for the Company's use. Those funds held as functional fixed assets are designated and excluded from the calculation of reserves whlch recogni5e5 these assets are used operationally and thelr dlsposal would adversely Impact on our ability to deliver care to our beneflciarles. The level of froe reserve5 requlred to achleve thls amount had been approved by the Trustees at £300,(100 which is the sum the Trustees consider necessary to cover ongoing costs if there Is a delay in receivlng funding from East Sussex County Councll. Total funds at the end of the year 8mounted to £2,426,965 of which £2,041,255 was designated. Of these deslgnated funds £2,039,759 relate to assets whlch are required for the Company to carry out Its operations and hence, are not avallable for dÉstrlbution. The de5igTrated funds were estsbllshed by the Compary to deslgnate funds for ongolng aciivlties In these areas, There were no restrlcted fund5 at the end of the year. Cash and Cash Equlvalents have decreased fft)m £767,726 to £324,633, Over the years. bulldlng malTrtenance has not sufficlently been carried out and therefore the Board have decided to look at uslng free reseNes andlor borrowln& to improve the Cgndition of our buildings. EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORll (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 CovÈr for Funds Note 25 sets out an analysis of the assets attrlbutsble to the varlous funds and a descrlption of the trusts. The Trustees are confident the Company has sufficient assets to meet the Company's obllgations on a fund-by-fund baslg. Investment pollcy Aslde from retaining a prudent amount In reserve5 each year, most of the Company's fund5 aré held on short term deposit, Major r15k5 The Executive Cornrnittee ha5 assessed the major ri5k5 to which the Company Is exposed and are SatI￿led that systems are in place to mitigate exp05ure to the major r15ks, The process of Idenilfylng, evaluating and managing the rDajor rlsks to which the Company Is exposed has conlAnued throughout the year. Where any such weaknesses have been IdentiAed, èpproprlate systen)s or procedures have been e5tabli5hed to mitigate risks the Company faces. Internal control rlsks are mlnlmlsed by the Implementstton of procedu￿ s for authorisation of all tYansaction5. Procedures are In place to Èfisu￿ compllance wlth all relevant legislation includlng health and safety, equal opportunlties, 5ervlcè users, welfare, moving and handlln& tire awarene55, medication, food hyglene amongst othèrs. An Internal Audlt system is in place whereby the Chief Operating Officer carrles out monthly checks to ensure policiesi procedures and 5ae8uarding i55ue5 are belng correctly carrled out and recorded. The financial pressures f rom 5tsffing costs wlll continue to have Impact durlng the comlng year a5 the Company continues to mointain thÈ lÈvel of stsfflng whlch provlde the hlgh levels of care to safeguard our service users. Our current focus moving forward5 to manage risks are: Continued review of our main charitsble objethves so they remain relevant and in tune with the founding principles, also ensurlng they are achlevable. Recrulting Ind retsining 8¢Jod quality staff to reduce the Impatt of aEency costs. To alway5 maximise our incotne st￿aM5 with full occupancy and to work In consultstEon with ESCC to uplSft Service User fees to appropriate levels. To expand the depth, experience and number of Trustses, thè Exeeulive Commlttee actively seeks new people to Join the Board as a key prlorlty structurei governance and management The Company 15 a charitsble Comp3ny Ilmited by guarantee IncorpoTrted on 26 March 2007 to tske over the assÉts and Ilablllties of the unincorporated Eastbourne & District Mencap formed in 1949. The Memorandum and Artlcle5 of A5SOtiailon Irevlsed Sn 20221 define the objerts and powers of the Company. The Company Is governed by the Trustees who are notpexecutive directors for the purposes of Company law and under the Company'sArlicles are known asthe Executive Committee. Tho trustees, who are also the directots for the purpose of company law, and who served durln8 the year and up to the date of signature of the financial statements were: Mrcmizen Ms N ETrlmmer Ms M JThurstsn Mr A M Norwood Ms L Fennell Ms M Sstubbs Mr A P Taylor M5 Chrsstine Foley IReslgnÈd 27 November 20251 IReslgned 7 November 20241 IReslgned 18 June 20251 IAppolnted 30 Aprll 20251 EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORn (CONTINUED) FOR THE YEAR ENDED 31 MARCH2025 R￿(￿ltment and appolntmÈnt of trustees Under the Memordndum and Articles of Association the Executive Committee are appolntèd each year at the AGM by the membershlp In accordance with the Articles to hold office until the end of the next AGM. The membershlp Is invited to nominate members for election. The Trustees give thelrfjme voluntarlly and receive no benefits from the Company, any expenses re clalmed from the Company are Set out in the note5 to the accounts. The Execudve Committee meet a mlnlmum of 4 times a year to admlnisters the Charities operadons wlth the day to day management Is the function of the Chlef Executive Officer and the senlor management team. In the event of the Company beln8 wound up member5 are requlred to contrlbutè an amount not exceedng El. Funds held as ¢ustodlan trustee The Company holds some monies on behalf of servlce Use￿ as custodian Trustees, these monles are rv)t assets cf the Company and therefore the cash balances and crÈdltors have been ellmlnated from the acwuntS. Statement of trustee5' responslbllliles The trustees, who are also the dlrectors of Eastbourne & Dlstrltt Mencap Limited for the purpose of company law, are responslble for preparln£ the Trustees, Report and the financlal statements in accordance wlth appllcable law and Unlted Klngdom Accounting Stsndards Iunlted Kingdom Generally Accepted Accounting Ptsctic@l. Audltor In accordance with the company's article5. a resolution proposlng that James Todd and Co Llmlted reappointed as auditor of the compary will be put at a General Meeting. Dlsclosure of inforrnqtion to audltor Each of the trustees has confirmed that there Is no Information of which they are awire whlch Is relevant to the audlt, but of whlch the auditor is unaware. They have further Confirmed that they have taken approprlate step5 to Identlfy such relevant Information and to establish that the audltor is aware of Such Information. The trustees, report was approved by the Board of Trustee5, MrA M Norwood Twstee Ms L Fennell Trustee {/ 10/1 EASTBOURNE & DisfRICT MENCAP LIMITED TIA INSPIRE SUSSEX INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF EASTBOURNE & DISTRICT MENCAP LIMITED Oplnlon We have audited the firnanclal statements of Eastboume & Dlstrlct Mencap Llmlted (the 'charity'l br the year ended 31 M?r(h 2025 whlch comprlse the statement of financlal activities, the balance sheet, the statement of cash flows and noles to the flnancial statements, includlng sl8nificant accounting policies. The financial reporknng framework that has been applled In their preparatlon Is applicable law and Unlted Kln8dom Accounting Stsndards, Intludlng Flnanclal Reporting Standard 102 The Finat7ual Reporting Standord oppllcoble In the UK und Republlc of Irelund Iunlted Klngdom Generally Accepted ACCOUn￿n8 Practlcel. In our opinion, the fi'nanclal statements: glve a true and falr vlew of the state of the charltsble company's affalrs as at 31 March 2025 and of Its Incoming resources and application of resources, for the year then ended: have been properly prepared In accordance wlth United Kingdom Generally Accepted Accounting Pract1￿,. and have been prepared In accordance wlth the requlrements of the Companie5 Act 2006. Basis for opinion We conducted our audit In accordance wfrth International Standards cn Audlting IUKI IISAS IUKII and applicable law. Our re5ponslbilities under those standards are further described in the Auditor's responsibillties for the audlt of the finonclal ststements section of our report. We are independent of the charlty in accordance wlth the ethltsl requlrements that are relevant to our audit of the finantlal statements In the UK, Including the FRC'S Ethlcal Stsndard, and we have fullilled our other ethical responslbiiiile5 In accordance wlth these requlrements. We believe that the audit evidence we have obtained Is sufflclent and approprlate to pr()vide a basis for our opinion. Conclusions rel*lng to golng concern In auditing th@ financlal ststements, we have concluded that the trustees, use of the going concem basls of accountlng In thÈ preparation of the financial statements is appropriate. Based on the work WÈ have perfDmied, we have not Identified any material uncertairrtie5 ￿latIng to event5 or condltlDns that, Indlvidually or collectivelyi may cast significant doubt on the charity's ability to continue as 8 ￿[nE contÈrn for a perlod of at least twelve months from when the financial Statements are authortsed for Issue. Our rÈsponslblllttes and the responsibilities of the trustees with respect to going concern arÈ descrlbed In the relevant sections of this report, OthÈr Informatlon The other Informatlon comprlses the information included In the annual report other than the financlal ststements and our auditor's report thereon. The trustee5 are responsible for the other Information contained wlthln the annual report. Our oplnion on the financlal statements does not cover the other Information and we do not express any form of assurance concluslon thereon. Our responslblllty Is to read the other information and, in doin8 so, consider whether the other information Is materially inconsistent with the linanclal gtatements or our knowledgè obtalned In the course of the audit, or otherwise aP￿arS to be materlally rni5Stated. tf we Identlfy such material inconslstellcies or apparent material misststements, we are required to determlne whether this glves rise to a mater141 mlsststement In the financial 5t*ements themselves, If. based on the work we have performed, we conclude that there is a materlal mlsstatement of this other Information, we are requlred to report that fact. We havÈ nothlng to report In thls regard. EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX INDEPENDENT AUDITOR'S REPORT (CONTINUED} TO THE TRUSTEES OF EASTBOURNE & DISTRICT MENCAP LIMITED Matters on whlch we are requlred lo report by ex¢eptlon We have nothing to report In respect of the followlng matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requlres us to report to you rf, in our opinlon: the Informadon given In the financial statements Is inconslstsnt In any materlal respect wSth the trustees, report; or sufficlent accountin8 records have not been kept,. or the financlal Statements are not In agreement wlth the accounting records,. or WÈ have not recelved 811 the Information and explanations we require for our audlt. Responsibilities ol trustees As explalned moro fully In the statement of trustees, responsibilities, the trustees, who are also the dlrectors of the ¢harlty for the purpose of company law, are responsible for the preparation of the flnanclal statements and for beln8 satisfied that they give a true and fair view, and for such int@rnal control as the trustee5 determlne Is necessary to enable the preparation of financial statements that are free from material mi55tatement, whether due to fraud or error. In prepartng the financlal statements, the trustee5 are re5ponslble for assesslng the charlty's ablliiy to contlnue as a golng concern, discloslng, as appli(able, matiers related to going concern and uslng the golng concern basis of accounting unless the trustees elther Intend to liquidate the charitsble company or to cease operations, or have reallstic alternative but to do so. Audltor's responsibilities for the audit of ihe ffnanclal statÈmÈnts We have been appointed as audltor under secyon 144 of the Charities Act 2011 and report in accordance wlth the Act and relevant regulations made or havlng effect thereunder. Our objectives are to obtsln reasonable assurance about whether the financial ststÈments as a whole arè frèè from materlal mls5tst@ment, whether due to fraud or error, and to i55uÈ an audltor's report that Includes our oplnlon, Reasonable assurance Is a hlgh level of a55ufdnce but is not a guarantee that an audlt conducted In accordance with ISAS IUKI will always detect a rllaterlal mi55tstement when It exlsts. MLsststements can arise from fraud or error and are consldered materlal If. indivldually or in the aggregats. they could reasonably be expected to influence the economlc declslons of users tsken on the basi5 of thÈse flnanclal statement5, The extent to whlch our procedures are capable of detecting irregularities, including f roud, is detslled below. As part of an audlt In accordance wlth ISAS, we exercise professlonal judgment and maintain professlonal skepticlsm throughout the audlt. We also,. Identlfy and asse55 the risks of materlal mlsstatement of the financlal statements, whether due to fraud or error. design and perform audit procedures responsive to those rlsks, and ok)tain audit evidence that Is sufPtient and approprlate to provlde a basis for our oplnlon. The risk of not detecting a material mlsstatement resulting from fraud 15 hlgher than for one resulting from error, as fraud May invofve colluslon, forgery, Intentional omi55ions, mlsrepresentations, or the overrlde of Intornal control. Obtaln an understanding of Internal control relevant to the audit in order to deslgn audlt proced￿e$that are approprlate In the circumstances, but not for the purpose of expre55ing an oplnlon on the effectiver)ess of the Company's Internal control, Evaluate the approprlateness of accoUn￿nE pollcles used and the reasonableness of accountin8 estimatss and related disclosures Made by management. Conclude on the appropriateness of management's use of the going concern basls of accounting and. based on the audit evidence obtained, whether a mater131 uncertalnty exlsts related to events or conditions that may cast significant doubt on the Company's ablllty to continue as a goln8 concern. If we conclude that a material uncertalnty exlsts, we are required to draw attention In our auditor's retKJrt to the related dlsc105ure5 in thÈfinanclal statements or, If such dlsc105ure5 are inadequate, to modlfy our oplnlon. Our concluslons are based Dn the audl evidence obtained up to the date of our audltor's report. However, future events or condition5 may cause the Company to cease to continue as a going concern. EvaSuate the overall presentation, strurture and content of the Hnanclal statemènts, and whether the financlal ststsrnents reprE5ent the underlying transactions and events in a manner that achleves fair presentation. EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EASTBOURNE & DISTRICT MEINCAP LIMITED A further description of our re5ponsibilltles Is avallable on the Flnanclal Repoffjng Council's website at: https.'Il www.frc.org.uk/audltorsre5ponslblllties. Thls descrlpdon forn15 part of Dur 8udltor'5 report, Llse of our report Thi5 report Is made solety to the charltrs trustses, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audlt work has been undertaken 50 that we miBht state to the charlty's tru5treS those matters we a required to gtste to them in an auditor'5 report and for no other purpose. To the fullest extent pernltted by law, we do not accept or assume re5ponslbllSty to anyone othÈr than the charlty and the charity's tIU5tee5 as a bo(ty, for our audit work, for thls report, or for the oplnlons we have formed. Ollver Road FCCA ACA (Senior 5tstutory Audltor For and on behalf of James Todd and Co Llmited, Statutory Aud5tor Chartered AccguntsThts Drayton Houge Dt3yton Lane Chichester West Sussex P02D 2EW England Date: James Todd and Co Limited is eli8ible for appointment as audltor of the charlty by vlrtue of Its ellglblllty for appointmerrt as auditor of a company under sectlon 1212 of the Companles Act 2QD6. Ln ro ¢X co 11 I" 75 * 41 w c * In rrj EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX BALANCE SHEET AS AT31 MARCH 2025 2025 2024 Notes Flxed assets IntanElble assets Tangible assets 16 17 20,120 2,2S3,953 30,180 1,965,849 2,274,073 1,996,029 Curret)t assets Debtors Cash at bank and Irb hand 18 57,478 324,633 62,576 767,726 382,111 1227,2141 830,302 1200,1101 Creditors: amounts fall1￿ due wlthln ono ￿r 20 Net current a55et$ 154,897 630,192 Totsl assets les$ currÈnt Ilablllttes 2,428,970 2,626,221 Creditors: amounts falling due after more than one year 21 12,0051 112.2311 Net assets excluding penslon Ilability 2.426,96S 2,613,990 Net assets 2,426,965 2,613,990 The funds of the charlty Unrestrlcted fund5- seneral Unrestricted funds- deslgnated fund 385,710 2,041,255 515,637 2,098,353 2,426,%5 2,613,990 The company Is entitled tD the exemption from the audlt requlrement contained In section 477 of the Companles Att 2006, for the year ended 31 March 2025. The dlrectors acknDwledge thelr responsibllities for complying with the pquirements of the Companies Att 2006 wlth respect to awunting records and the preparataon of flnanclal statements. These flnanclal ststements have been prepared In accordance with the provisiorks appllcable to companies subjett to the small companie5 ￿gime, 11 EASTBOURNE & DISTRicf MENCAP LIMITED T/A INSPIRE SUSSEX BALANCE SHEET (CONTINUED) ASAT31 MARCH 2025 The flnanclal statements were approved by the trustees on ..,.,., MrA Trustee Norwood Ms L Fennell Trustee Company registration number 06182982 (England and Wale51 12- EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Notes Cash flows from operating actlvldes Cash labsorbed byllgenerated from opera11ons 193,4521 34,400 Investlng actlvities Purchase of Intsnglble a55ets Purthase of tanglble fixed assets Proceeds from di5PQ5al of tangible fixed assets Investment income recelved 118,7801 1657,8431 791,269 6,818 1345,2021 5,786 Nét cash {used Inll8enerJted from Investing activities 1339,4161 121,464 Fln8nclng actlvltles Repayment of bank loans 110,2261 19,9151 ljet cash usèd In flnanclng actlviile5 110,2261 19,9151 Net {decrease)lin¢rease In cash and cash oqulvalènts 1443,0941 145,949 Cash and cash equlvalents at beginniD8 of year 767,726 6ZI,778 Cash and cash equlvalent$ at Ènd of year 324,633 767,726 13- EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng polle￿5 Charlty Informatlon Eastbourne & Distrlct Mencap Llmlted Is a prlvate company Ilmlted by guarantee Incorpor8ted In England and Wales. The registered offlce Is Greenfield Cent￿, Greenfield Road, Eastbourne, East Sussex, BN21 IJJ, England. 1.1 Accounting conventlon The financiil statements have been prepared In accordance wlth the charity's Memorandum and Arkncles tsf AssocSadon, the Companie5 Act 2006, FRS 102 "The Financlal Reporrin8 Standard appllcable In the UK and Republic of I￿land. I"FRS 102.1 and the Charities SORP Accounting and Reporting by Charltfes.. Statement of Recommended Practice applicable to charliles preparlng thelr accounts In accordance with the Financial Reporknng Stsndard appllcable in the UK and Republlc of Ireland IFRS 1021" (effective I January 20191, The charity 15 a Public Benefit Entity as defined by FRS 102. The flnanclal statementg are prepared In stedlngi which Is the functionél currency of the charity, Monetary amounts In these financlal statements are rcunded to the nearest £. The financlal statements have been prepared under the hlstorical cost convention, The principal accounting pollcles adopted are set out below. 1.2 Golng concÈrn At the time of approving the financlal Statements, the trustees have a reasonable expectation that the charlty has adequate re50urces to continue In operational exigtence fr)r the foreseeable future. Thus the trustees continue to adopt the golng toncem basls of accounting In preparlng the financial statements. 1.9 Charitable funds Unrestricted fundi are avallable for use at the dlscretion of the tru5tee5 in furtherance of thelr charitable oblectives. Designated funds comprise funds which have been set aslde at the dlscretiDn of tho trustees for specltic purposes, The purposes and uses of the dèsignated funds set out In the notes to the financial ststement5, Restricted funds are Subject to speclflc condltions by donors or g￿ntOrS as to how they rnay be used. The purposes and uses of the restricted funds are set out In the notes to the financlal statements. 1.4 Income Income 15 recognised when the charity 15 legally entttled to It after any performance condlliong have been met, the amounts can be measured reSlabl¥• and St is probable that Income will be received. Cash donations are recognised on ￿CeIpt. Other donation5 are recogni5ed once the charlty has been notified of the donation, unless perfomianco condltions requlre deferral of the amount. Ineotrne tax recoverable In relation to donations recelved under Gift Ald or deeds of covenant is recognised at the time of the donation. Legacies are recognised on recelpt or otherw15e if the charity has been notlfied of an Impending dlstribut1on, the amount Is known. and recelpt ig 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 2025 Accounting policles (Contlnuedl The following speclfic pollcles are applled to partlcular categorles of Income., Voluntary Income 15 received by way of le8acies, donations, and g1ft5 and othèr voluntary Income Is Included In full In the statement of Flnanclal Actlvltles when receivable. Legacies are recognised In the accounts once there Is sufficlent evldence that the Charity Is en￿tled to such Income, provided that the amount receivable can be quantilied with relative accuracv. Donated servlces and facllitles are Included at the value to the Charlty where thls can be qu2ntified, The value of services provlrled by volunteers has not been included in these 3ccount5. Prov15ion of services- income fcir the provlsion of residential and day care 5ervlces Is recognised fDrthe perlod covered by the Service. Investment Income Is recognised in the financlal statsments when recelvable. Other tradlng Income Is recogntsed in the financial 5tstements when receivable. 1.5 Expenditure EKpendlture15 recognlsed once there Is a legal or constructive obllgation to transfer economic benefit to a third party, it Is probable that & transfer of economic benefits will be required in settlement, and the amount of the obllgat5on can be ¥lleasured reliably. Expendlture Is classFtied by activity. The costs of ea¢h artivity are made up of the total of dIr￿t costs and shared costs, including 5UPPQrt costs Involved In undertaking each activity. Dlrect cost5 attrlbutable to a 51ngle activlty are allocated dlrertly tg that actlvlty. Shared costs whlch contrlbute to more than one athvlty and support costs which are not attrlbutsblÈ to a slngle acttvSty are apporknoned between those activities on a basls conslstent with the use of resources. Central stsff cost5 ore allocated on the basis of time spent, and depreciation charge5 are allocated on the portion of th asset's use. 1.6 Intanglble fixed assets other Ihan ￿(￿dwIll Intanglble assets acquired separately from a business are recognlsed at cost and are subsequÈntly measured at cost less accumulated amortlsailon and accumulated Impalrment losses. Intsngible a55ets acquired on business combinations are recogni5ed separately from goodwlll at the acqulsltion date where it is probable that the expected future economlc benefits that arÈ attrlbutable to the asset wlll flow to the entity and the falr value of the asset can be measured rellably; the Intsnglble asset arises from contractual or other legal rights; and the Intan8lble asset is sepaftble from the entity. Amortisation 15 recognlséd so as to wrlte off the cost or valuation of assets less thelr resldual values over their useful Ilves on the followlng bases: Branding IO% stralght Ilne 1.7 Tanglble fixed assels Tangible fixed assets are ini￿allY measured at cost and subsèquently measured at cost or ¥al￿tiOn, net of depre¢iat1on and any Impalrment losses. Depreciation is recognlsed so as to wrlte off the cost or waluation of assets less thelr resldual values over their useful Ilves on the followlng bases,. Freehold land and buildings FiXtu￿S and flthngs Motorvehicles 50 years stralght Ilne IO% reduclng balance 20% reducing balance 15 EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accountini pollcles {Contlnuedl The gain or loss arislng on the dlsposal of an asset 15 determined as the difference between the sale proceeds and the carrying value of the as5eL and 15 reco8nlsed In the ststemeTht of financlal activiti6S, 1.8 Impalrment of flxed assets At ea¢h reporknns end date, the charlty revlews the tarrylng amounts of Its tangible and Intangible assets to determlne whether there Is any indlcation that those assets have sUffe￿d an ImpalrmeTrt loss. If any such Indlcation Èxlsts, the recoverable amount of the asset is e5tim4ted in order to determine the extent of the impairrnent loss Ilf anyl, 1.9 Cash and ¢ash equlvalents Cash and cash equlvalents include cash In hand, deposits held at call wlth banks, othor short-term Ilquld Investments wlth origin31 maturities of three months or less, and bank overdr2fts. Bank overdraft5 are shown wlthin borrowings In current liabilities. 1.10 Flnandal instruments The charity has elected to apply the provlslons of Secifon 11 'Baslc Financial Instruments, and Section 12 '0ther Flnanclal Ingtruments Issues, of FRS IOZ to all of Its thnancial instruments. Financial instruments are recognlsed in the charlty's balance sheet when the Charity become5 party to the contractual provlslons of the Instrument. Financial assets and liabillties are offset. wlth the net amounts presented In the linanclal statement5, when there Is a legally enforceable rlght to set off the recognlsed amounts and there is an intention to settle on a net basls Dr to reallse the asset and settle the Ilabllity simultaneouslv. Boslcflnundal assets Baslc fi'nancial assets, which includÈ debtors and cash and bank balanceg, are In5tially measured at transaction prlce including transaction costs and are subseqLJently carrled at amorknsed c05t Using the effedive Inte￿st method unless the arrangement constftutes a financlng transaction, where the transaction Is measured at the present value of the future recelpts discounted at a market rate of Interest. Flnanclal assets classlfiÈd as recelvable wlthin one year are not amortised. 8uslcflnancialliathlities Basic flnancial Ilabllltles, IncludlnB ¢￿dItorS and bank loans are initially ￿co￿nISed at transaction prlce unless the arrangement consdtutes a financing transaction, where the debt instrument 15 measured at the p￿Sert value of the future payments dlscounted at a market rate of Sntere5t. Flnanclal IlabllSties classified as payable wlthin one year are not amortised. Debt1Trstruments are subsequently carried at amortised cosL using the effectfve Interest rate method, Trade credltors are obll&dilons to pay for goods or servlces that have been acquired in the ordlnary coursÈ of operation5 from suppllers. Amounts payable are classlfied as current liabilitie5 if payment15 due wlthln one year or less. If not, they are presented as non-current liabilities. Trade creditors are retognised In[￿allY at transaction pri￿ and subsequently measured at 3mortised cost uslng the effecthfft Interest method. Deretognition offinoncial li(Ybilities Financial Ilabllltles are derecognlsed when the charfty's contractual obllgations expire or are dlscharged or cancelled. 16- EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH2025 A¢¢ounllng pollcies (Continued) 1.11 Employee benefits The cost of any unused holiday entStlement 15 recognised in the per￿d In whlch the employee's servlces are recelved, Termination benefits are recognlsÈd Immedlately as an expense when the charlty Is demonstrably commltted to termlnats the employment of an employee or to provlde termination benefi'ts. 1.12 Retirement beneffts Payments to defined contribution retlrement benefit schemes are charged as an expense as they fall duÈ. Chunge In accoundng pollcv In the Cufrent year the accounting policies regardlng depreclatlon wor@ revlewed, and It was deern&l appropriate to change these pollcles to brlng the depreclation of the assets In line with the estimated useful Ilfe of the a55ets. The prlor perlods havÈ not been adjusted. Critical a¢countlng estlmates and ludgem#nts In the application of the charity's accounting polities, the trustees are requlred to mèke judgements, e5tr'mates and assumptions about the c4rrying amount of assets and liabl11￿eS that are not readlty apparent from other source5. The estlmates and associated assumpL1ons are based on hi5torScal experience and other factors that are consldered to be relevant. Actual results may differfrom these estimate5. The estimates and underlying assumptlons are revlewed on an ongoing basis. Revi5iDns to accounting estimates are recognlsed In the perlod In whlch the estimate 15 revised where the revision affects only that perfcKI, or In the pèriod of the revislon and future periods where the revision affects ￿th current and firture perlods. Income from donatlons and logacles Unreslricted funds 20Z5 Unrestricled funds 20Z4 DoTr3tion# and gifts Membershlp fees 14,389 320 11,912 475 14.709 12,3B7 17- EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 Income from ¢h0rltable attlvltles Unrestricted funds 2025 Unrertri¢tÈd fiAnds 2024 Resldential Care Services Services provlded under contract Other Income 2,608,747 14,436 2,294,648 19,813 Day Care ServlcÈs Servlces provlded under contract 224,441 237,360 2,847,624 2,551,821 Income from othÈr tradlng attlvmes Restrl¢ted lund5 2025 Re5tri¢ted funds Other Income 785 Income from In￿stMents Llnrestricted funds 2025 UnrÈstrlcted tund$ 2024 Interest receivable 5,786 6,818 Other Income Unrestrlcted funds deslgnated fund 1025 Unrestricted funds desl8nated fund 2024 Net gain on diswsal of tanglble fix@d assets 619,961 18- EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Expendlture on ralslng funds Unresirlcted Unrestrlcted funds funds 2025 2024 Fundralsln8 and publitity OthÈr fundralslng costs 3,414 1,091 10 Expendlture on charltable ath¥ltles Resldentlal Care Servlces 2025 Day Care Services 2025 Total ResidentÈ81 Care Ser¥i¢es 2024 Day Care Ser¥lces 2024 Total 2025 2Q24 Dire¢t costs stsff costs Depreciation and Impairment Dlrect costs Rent and rate5 Light and heat Repair5 and renewals Telephone tosts Prlnting, postage, stationery and computer Motor expenses Travel costs Sundry and other expenditu 2,127,364 170,554 2,297,918 1,768,486 189,787 1,958,273 67,158 93,424 15,819 42,934 25,898 2,724 67,158 117,768 15,819 52,785 28,491 3,475 20,921 105.962 13,016 23,784 29,056 2,257 20,921 143,780 15,198 28,675 31,280 2,901 Z4,344 37,818 2,182 4,891 2,224 644 9,851 2,593 751 15,875 7,579 5,653 836 1,185 1.434 16,711 8,764 7,087 13,647 7,079 6.426 778 10.269 899 14,425 17,348 7,325 12,589 2,675 15,264 11,747 1,672 13,419 2,417,017 214,223 2,631,240 2,Q)2,381 251,164 2,253,545 Share of support and 8o¥ernan¢e tosts15ee note 11 support 332,879 58,743 Governance 24,539 4.330 391,622 28.869 238,147 14,233 42,026 2,512 280,173 16,745 2,774,435 277,296 3,051,731 2,254,761 295,702 2.550,463 Analy515 b¥ fund Unrestrlcted funds. general Unrestrlcted funds. designated fund Restricted funds 2,717,337 277,296 L994,633 2,230,040 292,082 2,522,122 57,098 57,098 24,721 24,721 3,620 3,620 2,774,435 277,296 3,051,731 2,254,761 295,702 2,550,463 19- EASTBOURNE & DISTRICT MENCAP LIMITED T/A INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS ICONTINUED} FOR THE YEAR ENDED 31 MARCH2025 11 Support costs allocat@d to acilvltles 2025 2024 stsff costs Dirett Costs Rent and rates Insurance costs Repair5 and renewals Telephone costs PrITh￿ng, p05tage. ststionery and computer Travel costs Sundry eKpenses and other costs Governance costs 274,627 23,529 5,500 31,134 2,720 4,994 24,337 8,081 16,700 28,870 175,642 17,457 6,750 25,653 19 4,176 32,493 10,408 7,575 16,745 420.491 296,918 Anatysed bÈtweÈn: Resldential Care Service5 Day &re Services 3S7,418 63,073 252,380 44,538 420.491 296,918 12 NÈt mo¥Èment In ￿ndS 2025 2024 The net movement in funds Is stated after charglng/lcr@ditlngl: FeÈs payable for the audlt of the chariV5 financlal statements Depreciation of owned tsngible fixed assets Lossllprofitl on dlsposal of tanglble fixed assets Amorttsation of Intangible assets 9,144 57,097 9,144 24,721 1619,9611 10,060 13 Trustees None of the trustees lor any persons connected wlth them) recelved any remuneratlon or benefits from the charity durlng the year. -20- EASTBOURNE & DISTRICT MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Employees The average monthly number of employees during the year wa5., 2025 Number 2024 Number Adminlstrnilon staff Dlrect and support stsff 84 81 Total 92 86 Employment ¢¢)st$ 2025 2024 Wages and 5alarfes Soclal securlty costs Other pension c05ts 2,050,030 168,713 38,330 1,762,479 139,676 33,185 2.257,073 1,935,340 The number of employees whose annual remuneration was more than £60.000 Is a5 follows,. 2025 Number 2024 Number £60,001 to £70,000 Taxatlon The charlty15 exempt from tsxation on its activitie5 because all Its Income Is applled for charitable purposes. 21 EASTBOURNE & DisfRICT MENCAP LIMITED T/A INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 16 Inlangible fixed assets Brandlng Cost At l Aprll 2024 and 31 March 2025 30,180 Amortisailon and Impalrment At l April 2024 Amortisation charged for the year io,o&J At 31 March 2025 10,060 Carrying gmounl At 31 March 2025 20,120 At 31 March 2024 30,180 The Intsnglble assets relate to a name change and rebranding of the Charlty. These were not fully complete until 31 March 2024, and as such the amordsation started at the beginning of the Cufrent year. 17 fanglble IIKed assets Freehold knd and bulldln85 Fknture$ and MotDrvehi 385,710 2,041,255 2,426,965 Unrestrlcted funds general 2024 Unrestrlcted funds designated 2024 Totsl 2024 Fund balance5 at 31 March 2024 are represented by: Intangible lixed assets TanElble iS￿ts Current assetsllliabilitie51 LonB term liabilities 30,180 1,965,849 102,324 30,180 1,965,849 630,192 112,2311 527,868 112,2311 515,637 2,098,353 2,613,990 26 Flnan¢lal commitmen151 8uarantees and contingent Ilabllltles Thè Slxlety sees Its overall commitment In terms of prcvldlng a 'Horne ft)r Llfè, for those wlth leamlng dtsablllties, Due to Its long terni and uncertain nature, it Es not possible to quandfy thls commitment, 27 Operatingloase commitments Lessee At the reporting Ènd date the charity had outstandlng commitments for future mlnlmum lease payments under non- cancellable operating leases, whlch kll due as follows.. 2025 2024 Within one year Between two and five yèars 5,674 7,tJJ7 4,522 10,081 12,681 14,603 26- EASTBOURNE & DISTRicf MENCAP LIMITED TIA INSPIRE SUSSEX NOTES TO THE FINANCIAL STATEMENTS {CO￿lNuED) FOR THE YEAR ENDED 31 MARCH 2025 Related party tran$8¢tlons Durfng the y&arthe charlty entered into the followin8 tran5actlon5 wlth related parti@s: During the year, t￿InIng was provided by On Target Training Network Itd. Trustee M Stubbs Is the company dlrector and provlded the trainlng. Total invoices raised In the year totalled £11,05512024.. £13,600) 29 Cash generatsd from operatlons 2025 2024 IDelicitl/surpus for the ￿ar 1187,0261 640.219 Adjustments for: Investment income recognlsed In Statement of flnanclal activities Gain on dlsposal of tanglble fixed assets Amortisation and impairment of intangible a$5ets Depreciation and impairment of tsnglble fixed a5SEts 15,7861 16,8181 1619,9611 3,8(Kl 24,721 17,6001 60,898 Movements In worklng capital: Decrease in debtors Increase/ldecreasel In creditors 5,Q98 27.104 4,543 14,5041 Cash (absorbed by)Igenerated from operatlons 1107,3121 42,000 Difference 13,860 17,5001 Per cash flow ststement page 93,4521 34,400 50 Analysls of changes In not funds Atl Aprl 2024 Cash Ilow8 At31 Morch Z025 Cash at bank and In hand 767,726 1443,0931 324,633 Loans falllng due wlthln one year Loans falllng due after mre than one year 110,2041 112,2311 110,2041 12,0051 10,226 745,291 1432,8671 312,424 -27-