Charity rogistratlon number 1142178 Company registration number 07525249 (England and Wal0$1 TOWER HAMLETS MENCAP SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 TOWER HAMLETS MENCAP SOCIETY LEGAL AND ADMINISTRATIVE INFORMATION Twstees Mrs L Kennedy IS6cr8tary} Mrs L Castle Mr D White (Appoinlgd 27 August 20201 Charlty number 1142178 Company number 07525249 Registered office 84 Leslie Road Londo E114HG Auditor Ltrg, DiGkells & Co 3 E8sI Polnl High Street, Seal Sevenoaks Kent TN15 OEG Bankers Barclays Bank plc 1 Churthill Place London E14 5HP TOWER HAMLETS MENCAP SOCIETY CONTENTS Pa9e Trustees, report Statement of trustees. responsibilities Indepen¢Jenl audiloT'S reporl Stslemenl of financial activilios Statement of finanaal position Notes to the financial statements 10-17 TOWER HAMLETS MENCAP SOCIETY TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2021 The trustees present their annual report and financial statements for the year ended 31 March 2021. Th8 financial slalemenls have been prepared in accordance with the a¢counling poli￿eS sel out in note 1 to the financial statements and comply with the Societ￿$ goveming document, the CDmpanies Act 2006 and 'Accounling and Reporting by Charilies.. Slalernenl of RecDmmended Practice applicatsle to charities preparing Iheir accounts in accordance wth the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" leffectivg l January 20191. Qbjectlves and activifje$ The Societls objects are lo promote the care, treatment and education of children and adutts with learning disabilities, by the provision ol help and support for them and their families. dependanls and carers, Gommensurale with their needs. The trustees have paid due regard lo guidance issued by Ihe Charity Commission in deciding what aclivlties the Swety should undertake. Aohlevements and perfomiance Unforttjnalely due to Covid-19 Tower Hamlets Society Could not run a full ser￿￿ due lo our service users falling into the high risk category snd hawng lo self4501ale. However. we kept in contact via telephone calls, virtual calls e.g. Zoom and Facetime. In Septembèr 2020 a Mrtual call was made between Iruslees and il was decided that to further Cold-19 restrictions we would provide 8 shopping seNice lo our service users, parentslcarers at no cost lo themselves and we al80 rnad8 the decision to provide to local food banks. Flnancl#l revièw In June 2020 squatters once again gained 8Gcess to The Kirtland Centre. Our solicitors once again look legal action lo have Iherll removed and they vacated the property in July 2020 after whieh 24 hour security was pul in place until the propgrty was sold. From April 2020 to August 2020 we were still reliant on Mr Kirtland for financial help. The Kirtland Centr8 was sold in August 2020 and all monies owed lo Mr Kirtland have been repaid in full. We now havo sufficient funds lo be able tD continue running the charity from our new premises which ar$ rented from Mr Kirtland which is awailing completion of wod(s and dependanl on Covid-19 restrictions. r( Is the policy of the Society that unreslricled funds which have not been designated for a speclfic use should be maintained at a level equivalent lo between three and six month's expenditure. The Iruslees considers that r8s8rv8s at this level will ensure that, in the event of a significant drop in funding, they will be able to ￿ntinue the Society's current activities while consideration is given to ways in which additional funds may be raised. The Board of Trustees has assessed the major risks lo which the Soryety is exposed, and are satisfied that the systems are in place ID mitigate exposure to the major risks. The trustees regularly monitor the risk exposure of the Socioly and action is taken lo investigate and mitigate any risks identified. Due to the uncertainty of th& Covid-19 pandemic on the clinically vulnerable ènd the continuing woths needed on The New Kirtland Centre w6 will continue contacting service users, parents and carers lo offer physical and mental support where needed. We plan to monitor the on-going situation règarding the pandemic and keep the charity as active as possible. Structure* govemance and managèment The Society was originelly registered as a charity on 4 January 1983 under registration number 286013. The Society adopted a charitable trust deed on 11 November 1982 as amended 26 June 2005. On 10 February 2011 the Society registered as a Company limiled by guarantee and on 1 April 2011 the activities of the Society were transferred to the charity company under registration number 1142178. The Society has now adopted the Local Model Constitution of the Royal MENCAP Society. TOWER HAMLETS MENCAP SOCIETY TRUSTEES, REPORT IINCLUDING DIRECTORS. REPORT) (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 The trustees, who are also the directors forthe purpose of company law, and who served during the year and up lo the dale of signaluro of the flnancAal statements were= Miss J Hajiyiannis (Resigned 1 March 2021) Mrs L Kennedy Isecrelary) Mrs M Robbins Mrs B Albert MrJ Stewart Miss A Edmeads (frEasL¢rerl Mrs L Castle Mr D White {Resigned 1 August 20201 (Resigned 16 August 20201 (Resigned 23 August 20201 (Resigned 26 August 20201 (Ap￿Ynte(I27 August 2020) The tnjstees are appointed by the Board of Tnjsiees and seTve for five years after which period they may put Ihemselves forward fw re-appointmert. None of the Iwslee5 has any benefiaal interest Én the company. All of the trusiees are members of the company and guarantee to contribute £1 irb the evenl of a wnding up. Due lo Ruth Hajiyiannis ICo-ordinalorlAdminstrator) continuing deterioration of health it was agreed by all trustees that as of 28th February 2021 Ruth would step dovm her position. It was further agreed by tnJslees that as of 1 March 2021 Jacky Hajiyiannis W￿k1 lake over this role. The trustees, meetings are hetd quarteFly and at suGh meetings the trustees agree the Board's strategy and areas of aclivily for the Society. including considerdlion of reserves and risk managomenl policies and p&rformanc8. The Board keeps the skill requirements for the trustee body under re￿e￿ and in the event that 8 Iruslee permanently retires or additional new Iwslees are required, the Board acttvely recruits the new trustee by advertisement or through a dialogue with assixiated bodies. The Society is a member of the Royal Mencap Society IMENCAPI. The Royal Mencap Soo#ety proMde8 helpful infornialion on good practice, changes in the law affecting charibes and acts a8 an authoritatsve lobby on behalf of the MENCAP Societies Ihe govomment regulaloFS. Audltor Lee, Dickells & Co were appoinled as aLtditor to the r4Jnpany and a resrAution proposing that they be r8- apwinted will be put al a General Meeting. Dlsclosuro of Informatlon to audltor Each of the trustees has confimied that there is no information of which they are aware whid) is relevanl lo the audit, bul of which the auditor is unaware. They have further confimied that they have taken appropriate steps to identify such relevant infomiation and to establish that Ihe auditor is aware of suth infomiation. Th& trustees, report was approved by the Board of Trustees. Mrs L Kennedy (Secretary) Trustee Dated.. ..If). TOWER HAMLETS MENCAP SOCIETY STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021 The trusteEs, who are also the directors of Tower Hamlets MENCAP Society for the purpose of company law, are responsible for preparing the Truslee5' Report and the financial ststements in 8ccordanc& with appllcable law and United Kingdom Accouriling Standards (United Kingdom Generally Accepted Accounting practi￿). Company Law requires the Iruslees to prepare financial statements for each finanei81 year which give a true and fair view of the stsle of Éffaira of the Society and of the incorrTing resources and application of resources, including the income and expendilure, of the charitabl8 company for that year. In preparing these financial slalements, th6 truste85 are requir8d lo.. select suitsble accounllng policies and then apply Ihem consi$tenlty', observ8 th8 methods 8nd principles in the Charities SORP. make judgements and 8stirnales that are reasonable and pYud8nt'. state whether appli¢able UK Accounting Standards have been followed, subjèct lo any material depat1ures disclosed and explained the finanual statements; and prepare the finanLxal slalemenis on the going concem basis unless il is inappropriate to presume that the Society will continue in operation. The Irustees ar8 responsible for keeping adequate accounling records that disdose with reasonable accuracy at any time the financial position of the Society and enable them to ensure that the financial stalernents comply with the Companies AGt 2006. They are also responsible lor safeguarding the assets of the Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. TOWER HAMLETS MENCAP SOCIETY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF TOWER HAMLETS MENCAP SOCIETY Oplnlon We have audited the flnancial slalemenls of Tower Hamlets MENCAP Society Ilhe 'Soaety'l for th& year 8nded 31 March 2021 which comprise the statement of financial aclivilies, the statement of financial position and notes lo the financial slalements, including significant accounting policies. The financi81 reporting framework that has begn applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Financi81 Rgporting St8ndard applicablg in th8 UK and RepubliG of Ireland (United Kingdom GenerallyAccepled AGcounling Praclicel. In our opinion, the financlal stalemenls.. give a true and fair view of the stale of the charilable companvs affairs as at 31 March 2021 and of ils incorning resources and application of resources, for th8 y8ar then ended., have been properly prepared in accordance wilh Unittsd Klngdom Generally Accepted Accounting Practice. and h8ve been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Atjdiling IUKI IISAS IUKI) and applicable law. Our responsibilities under those standards are further described in the Audiloffs responsibilities for the audit of the financial st8tements se¢lion of our report. We are independent of the Society in accordanc8 With the 8thical requirements th81 are relevant to our 8u¢Jit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical respDnsibilities in accordance ￿rith these requiremenis. We believe that the audit evidence we have obtained is suffic4ev)18nd appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial stslem&nts, we have Concluded that the trustees. use of the going concern basis of accoLtnling in the p￿paratIOn of the financial statements is appropriate. Based on the work we have perfor¥ned. we have not identified any Mate￿al uncertainties ￿lating lo events or conditions that, individualty or collectively, may cast signific8nl doubl on the Society's ability lo continue as a going concem for a ptsrlod of al least twelv6 months from when the financial slatem8nts are aulhorised for issue. Our responsibilili8s and the responsibili118s of Ihe trustees with respect to going concern are described in th8 r&levanl sections of this report. Other infomiation The olher information Comprises the information included in the annual report other than the financial statements and our auditols report Ihereon. The trustees are responsible for the other infonnation contained within the annual report. Our opinion on the financial slalemenls does not cover the other information and. Ex￿p1 to the extent otherwise expliEitiy slated in our report. we do not express 8ny form of assurance conclusion Ihereon. Our responsibility is lo read the other information and. in doing so. consider whether the other infomiation is m81eri811y inconsistent with the financial statements or our knowledge obtained in the rourse of the audit, or oth8nNise appears lo be materially misstaled. If we identrfy such material In￿nSiSte￿￿1es or apparenl material misslaternenls, we are required to determine whether this gives rise to a material misslalement in the finanoial staternents thernselves. If. based on the worf( we h8ve performed. we conclude that there is a material misstatemenl of this other infomialion, we are required lo report that fact. We have nothing to report in this regard. TOWER HAMLETS MENCAP SOCIETY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF TOWER HAMLETS MENCAP SOCIETY Opinions on other matlers prescrlbed by the Companles Act 2006 In our opinion, based on the work undertakÈn in the course of our audit.. the infDmation given in the Iruslges, report for the financial yaar for which the financial ststements are pr&pared, whith includes the direGlors' report prepared for the purposes of company law, is consistanl with the financial statements., 8nd the directors. report included wthin the trustees, report has been prepared in accordance w6th applicable legal requirements. M#tt6rs on whlch we are required to report by exception In the light of the knowledge and understsnding of the Society and Its envlronlnent obtained in the course of the audit, we have not identilied material misslalements in the directors, report included within the INslees' reporL In the light of the knowledge and understanding of the COTnpany and its enmronmenl obtained in the course of the 8udil, we have not identified m8terF81 misstatements in the trustees, ieport. We have nothing lo report in respect of the following matters in relation lo which the Companies Act 2006 ￿ql)ireS us to report to you Ff. in OUT opinion.. adequate accounting records have nol been kept, or rtslurns adequate for our audit have not been received from branches nDt visited by us,. or the linancial statements are not in agreement wlth the accounting records and retums,. or certain disclosures of Iwstees, remuneration spacilied by law are not made., or we have not received all the inforrnalion and explanations we require for our audit.. or the tnJsl2es were not enlitl8d ID prepare the financial slalements in accordan￿ with the small companies regime and lake advantage of the small ¢ompanies' exemptions in prep8ring the trustees. report and from the requirement Lo prepare a strategic r8POrt. Respon51bllltles of trustees As explained more fully in the stat8menl of trustees, responsibilities, the truslees. who ar8 also the directors ol the Society for Ihe purpose of company law, are responsible for the preparation of the financial statements and lor being satislied that they gNe a true and fair view, and for such intemal control as the trustees determine is necessary lo enable the preparation of financial slalemenls that are free from material misslalement, whether due ID fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Sociely's ability lo continue as a going conc&rn, Llisclosing, as applicable, matters related to going concern and using the going concem basis Df accounting unless the Iruslees either intend to liquidate the charitable company or lo rease operations, or have no realisbc all8maUve bul to do so. AuditoVs Yesponsibilities lor tho audit of the flnancial sLitements Our objeGIIv8s are to obtain re8son8ble assurance abDuI whether the financial statements as a whole 8re free from material misslalemenl, whether due lo fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee ihat an audit conducted in accordance with ISAS IUKI will always delecl a rnaterial misslalemenl when it exists. Misstatements can arise Irom fraud or error and are considered material if, individually or in the 8ggregate. they could reasonably b expected to influence the economic deasions of users taken on the basis of these financial slalements. The extent to whlch our prO￿dureS 8re capable of detecting irregularlties, including fraud, is detsile¢J below. A further description of our responsibilities is available on the Financial Reporting Council's website 8t.. https'll www.frc.org.uklaudilorsrespon51bllilies. This description forms part of our 8ucliloVs report. TOWER HAMLETS MENCAP SOCIETY INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF TOWER HAMLETS MENCAP SOCIETY This report Is made solely to the charitsble company's members, as a body, in accordan￿ with Chapter 3 of Part 16 of th& Companies Act 2006. Our audit work has been undertaken so that we might state lo the charitable company's members those matters we are requlred to sl818 lo them in an auditors, report and for no other purpose. To the fullest exlenl pemitted by law. we do not accept or assume responsibi11ty to anyone other than the charitsble company and the charitable company's members as 8 body, for Dur audit work, fo¥ this report, or for the opinions we ha e fomied. Mlchael Bushell (Senlor Statutory Auditor) for and on behalf of Lee. Dlcketts & Co 24 May 2022 Chartered Certified Accountants Statutory Audltor 3 East Point Hlgh Street. Seal Sevenoaks Kent TN150EG TOWER HAMLETS MENCAP SOCIETY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021 Currnnt financlal year Unre3trlcted Restrlcted funds tunds 2021 2021 Total Total 2021 2020 Notes Income and an Donations and gifts Investments other income nts from: 980 65 2,100 65 1,361,118 1.361.118 Total incomg 1.045 1.361,118 1,362,163 2.101 Charitable activities 95,191 93,487 188,678 5,833 Other 10 389 389 Total resourcos expended 95,580 93,487 189,067 5,833 Not (outgoingifincoming resourc•s before Iransfers 194,5351 1,267.631 1,173,096 {3.732) Gross Iranslers between funds 1,397,631 11,397,631) Net Incomel(expenditurel for tho ye•rl Net movemenl In funds 1,303,096 {130,OOQI 1,173,096 {3.732) Funij b81anGeg at 1 April 2020 178.5221 730,000 51,478 55,210 Fund balances at 31 March 2021 1.224,574 1.224,574 51,478 Th8 statement of financial activllies indudes all gains and losses recognised in tho year. All income and 8xpendilure derive from CDnlinulng aGlivities. The stalernenl of financial activities also complies wslh the roquiremenls for an Income and expenditure account underthe Companies Act 2006. TOWER HAMLETS MENCAP SOCIETY STATEMENT OF FINANCIAL ACTWITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021 Prior financial year Unrestrlcted R￿trICted fund$ funds 2020 2020 Total Z020 Note5 and endowmè Donations and gifts Investments 2,100 2.100 Total Income 2,101 2,101 Charitable activkies 5,833 5,833 Totsl resources expended 5,833 5.833 Net {outgolngyincoming resources before transfers {3,7321 (3,7321 Net incomellexpenditurel for the yearl Not movement in fund$ {3,7321 (3.732) Fund balances at 1 April 2019 174,7901 130,000 55,210 Fund balances at 31 March 2020 178,5221 130,000 51,478 The st8tevnent of finanual activities includes all gains and losses r6Gognised in the year. All inGome and expendlture derlve from continuing 8clivitSes. The statement of financial activities also complies wth the requlrements for an income and expendilure account under the Companies Act 2006. TOWER HAMLETS MENCAP SOCIETY STATEMENT OF FINANCIAL POSITION ASAT31 MARCH 2021 2021 2020 N￿e6 Flxed a55ets Tangible assets 11 134,771 Current a$$ets Doblors Cash al bank and in hand 12 1,102 4,295 1.227.143 1.227.143 5,397 Creditors: amount$ falling due within one year 13 12.5691 188,690) Nel current asset311liabilitiesl 1,224.574 183,293) T¢>tal a55ets less currgnt Ilabllltles 1,224,574 51.478 Income funds Restricted funds Unrestricted funds 14 130,000 178,522) 1,224.574 1,224,574 S1,478 The financial statements were approved by Ihe Tnjstees on 2010512022 Mis L Kennedy Isecrelaryl Trustee Company reglstratlon number 07525249 TOWER HAMLETS MENCAP SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accountlng pollcles Charlty Infomiatlon Tower Hamlets hAENCAP sO￿etY is a private company limited by guarantee incorporated in England and Wales. The regbstered office is , 84 Leslie Road, London, E11 4HG. 1.1 Accountlng convention The financial slalements have been prepared in accordance with the Societls Igoveming documentl, the Companies Act 2006, FRS 102 "The Fin8nci81 Reporting Standard applicable in the UK and Republic Df Ireland" I"FRS 102,1 and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndar(l applicable in Ihe UK and Republic of Ireland IFRS 1021" leffeclive 1 January 20191. The Society is a Public Benefit Entity as defined by FRS 102. The So(#ety has taken advanlage of the provtsions in the SORP for charities not to prepare a Statement of Cash Flows. The finanaal statements are prepared in sterfing, which is the functional currency of the Sociely. Monetary amounts in these finanGial slatem8nls are rounded lo the nearest £. The ffnancial ststements have been prepared Ltnd&r the historical cost convention. The prinapal accounting policies adopted are set o¢Jt b&low. 1.2 Golng concem Al the lime of approving the financial statements, the Irus18es have a reasonable expectation that the Society has adequate resources lo continue in operational existence for the foreseeable future. Thus the Iruslees continue lo adopt Ihe going Goncern basis of accounting in preparing the fin8ncial sl8tements. 1.3 Charltable funds Unrestricted funds are avallable for use al the dlsGretson of the trustees In furtherance ol Ihelr chariiable objectives. Reslricled funds are subject to specific condib'ons by donors as to how they may be used. The PLirposes and uses of the reslrlcted funds are set out in the noles lo the financial stst2ments. 1.4 Incomlng resources Incomo is recognised when the Society is legally enlilltsd to il after any performance Gonditions have been mel. the amounts Can bo measured reliably, and it is probable that income will be received. Cash donations are recognised on re￿ipt. Other donations are recognised once the Society has been noliffed of Ihe donallon, unless performance conditions requlre deferral of Ihe amount. Income tsx recoverable in relation lo donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 1.5 Resources ¢xponded The accruals basis is applied to all expenditure. Expenditure has been allocated according to the Statement of Recommended Praclico 'Accounting and Reporting by Chorilies" and is shown Under the appropriate sub-heading. Items of expenditure which involve more than one chariiable activity , are allocated appropriately between the Charitable activities involved on the basis of Oslimalfjs made by the ch8rity'8 managernent. 10- TOWER HAMLETS MENCAP SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Accounting pollcles {Contlnuedl 1.6 Tanglble fixed assets Tanglble flxed assets are inllially measured at cost and subsequently measured al cost or valuation, net of depreciation and any impairment losses. D8pr8cialion is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Land and bijildings Equipment Fixtures and fittings 20°k on written down value 15Vo on written down value Th8 gain or k)ss arislng on ihe disposal of an asset is determined as the difference be￿een the sale pro￿edS and the carrying value of the asset, and is recognised in the slalement of financial activities. 1.7 Impairment of fixed assets Al each r8POrting end date, the Society reviews the carrying amounls of its 18ngible assets lo detemiine whether there is any indication that those assets have suffered an impairm8nt loss. If any such indication exists. the r8coverable 8mount of the asset is estimated in order lo d818rmine the extent of the impairment loss lif any). 1.8 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held al call with banks, other short4emi liquid investments with original maturities of three rmonlhs or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Employee benafits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Terminglion b8nefits are recognised immediately as an expense when the Soclely is demonstrably committed lo 18rminate the employm&nl of an employee or to provide temiination benefits. 1.10 Retirement benefits Payments to defined contribution retlromenl b6n@fit schem8s are charged as an expense as they fall due. 1.11 Ba91¢ fFnancial instrumènts Debtors and creditors with no slated interest rate and receivable or payable wlthin one year are recorded at transaction priG8. Any loss arising from impairment 8r8 recDgnlsed in Ihe profil and loss account In other administratNe expenses. Donations 8nd glfts Unrestrlcted Unreslricted funds lunds 2021 2020 Donations and gifts 980 2.100 TOWER HAMLETS MENCAP SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Inveslments Unrestrlcted Unrestricted funds fijnds 2021 2020 Interest receivabl& 65 Other Income Restricted funds Tutal 2021 2020 Net gain on disposal of tangible fixed assets 1.361,118 12- J ry) Lfj ￿ Lrj ie) r ID I Ln I r LU