REGISTERED COMPANY NUMBER." 02996621 {England and Wales) REGISTERED CHARITY NUMBER: 1168733 Report of tho Truslees and Flnancial Statements for the Year Ended 31 March 2024 for Natural Breaks Limlted SB&P Chartered Accountants & Statutory Audilors Oriel House 218 Oriel Road Bootle Merseyside L20 7EP
Natural Breaks Limited Contents of Ihe Financial Statements for the Year Ended 31 March 2024 Page Report of the Trustees 1 to 8 Report of the Independent Auditors 9 to 11 Statement of Financial Activities 12 Statement of Flnancial Position 13 statemenl of Cash Flows 14 Notes to the Slatement of Cash Flows 15 Notes to the Financlal Statements 16 to 21
Natural Breaks Limited Report of the Trustees for the Year Ended 31 March 2024 The trustees who are also directors of the charity for the purposes of the Companies Act 2006. present their report with the finanaal statements of the charity for the year ended 31 March 2024. The tmstees have adopted the provisions of Accounting and Reporting by Charities: Stalement of Recomrnended Practi¢e applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims To relieve the needs of adults and children with disabilities and Iheir carers residing in the North West of England by: Providing help. support and guidance. Promoting health and well being through supporting individuals to lead full and active lives. Providing supported holidays. Providing opportunities for r8SPite. Mission We believe living an ordinary life can be extraordinary. Our mission is to work with people with disabilities. their families. commissioners and our strategic partners to develop and deliver excellent personalised seNices. providing the highest standards of support and care, and best value for money so that people with disabilities and complex needs and theiryamilies can live rnore fulfilling and inclusive lives. Values Our mission is underpinned through 'The Natural Breaks Way,; our values being: Person centednesS The people we support are at the heart of everything we do. W8 believe in empowering people to develop the skills and confidence lo fulfil their aspirations and dreams. Respect We believe in paying due regard and consideration for the feelings, abilities and rights of others. Natural Breaks is a place where everyone feels valued and contributes to making a difference. Kind We believe in the importance of being caring and considerate in providing support that empowers people to live their best life. Commitment We are dedicatÈd to working together to deliver an exceptional service where people are encouraged to achieve their goals and aspirations. Inclusive We believe every individual has the right to live as a valued member of their community. creating a sense of belonging and ability to positively contribute to that Community. Creative We are imaglnative and resourceful in finding solutions which meet individual needs and aspirations. as well as those of the or9anisation. Our key business obJ8ctives for 2023-2024 were as follows: To continually ass85s the need5 and priorities of people we support, workforce availability and technological solulions to deliver services in a safe and secure way To provide value for money to the people and organisations who commission our services. To maintain our position as a preferred supplier with Liverpool Adult Social Services and all local authorities in the areas where we operate as an approved provider on the Liverpool City Region Framework To deliv8r the Financial Sustainability Plan to increase income generation and lo tightly manage expenditure To develop a pathway to prepare lo achieve CQC Outstanding status To deliver our workf0e Development strategy and implement changes to our pay and benefits. tsrms and conditions, h&alth and wellbeing support To rollout our digital care and support system on a phased basis and review digital rota management solutions To continually review how the services we provide fit with Ihe 'a life not a service, concept and identifying how we could address those other needs To develop innovative solutions to meet Ihe needs of people with disabiliti8s who fall outside assessed needs services Page 1
Natural Breaks Llmited Report of the Trustees for the Year Ended 31 March 2024 OBJECTIVES AND ACTIVITIES Significant activities Supported Living - we support 25 people providing support at the right level that enables people to live their lives in their own homes. Support is provided by teams who are dedicated to each person. Teams have a Cowordinator who is directly responsible to a senior manager. Social and Learning - we work with 36 people who have been assessed as needing one or more people to support them. This involves our support staff meeting peopla at the places where they live or at a pre-arranged place so that they can get out regularly to get involved in things that will enhance their wellbeing i.e. college or olher classes. employment or voluntary work. sports and exercise. The Breakers, caravan our accessible caravan in North Wales. In tolal 11 people we support and other peoplè with disabilities, plus their families or carers used the caravan. some more than on. Newquay Holiday- this is an annual event that takes place in August. In 2023, 11 people we support went with 3 staff. The trustees are extremely grateful to Liverpool Lions for their financial contribution to costs and Newquay Lions who host the lrip and provide a range of activities for the people we support to enjoy. We delivered a number of events in 2023-24. The events held were designed to appeal to different tastes and interest5 of as many peopl& we support as possible. Where possible the events were opened up to people with needs who are not supported by Natural Breaks and in some cases. the local community. We were able to ulilise some of the funds raised through 'Take a Break wilh Natural Breaks, fundraising to make Ihese events accessible to more people. Highlights included: Excursions to Llandudno. Blackpool Illurninations. Manchester Christmas market. Cadbury's World. Chester Zoo and ITV'S Emmerdale set Warm Hub days during the winter where people we 5UPPOrt could pop in for lunch and watch an aftemoon film Celebrating landmark birthdays for people we support and long service awards for staff Holding an aftemoon tea to celebrate the Coronation of King Charles111 Christmas Paty, Christmas jumper day and trip to see a Chrislmas Panto A copy of the 2023-24 Impact Report is available on our website https.'Ilwww.naturalbreaks.co.ukl Public benefit In setting our objectives and planning our activities the tnjstees have considered the Charity Commission's general guidance on public benefit. Page 2
Natural Breaks Limited Report of the Trustees for the Year Ended 31 March 2024 ACHIEVEMENT AND PERFORMANCE Charitable activities In the year to 31 March 2024 our key achievements were as follows: Continuing to provide quality services to the peopl& we support and théir families and carers. despite the well documentèd challenges the sector fa¢es. The Care Quality Commission's approach to inspections of providers, services has changed but our rating rèmains GOOD. In their July 2023 'off-site' dynamic monitoring review the inspectors stated 'we have not found evidence that we need to carry oul an inspection or reassess our rating,. The last full inspection in May 2019 focused on the five key areas as to whether the service provided is safe. effective. caring. responsiv6 and well-led. Natural Breaks was rated as GOOD in all aas. The inspecloT commented: 'People were positive about Ihè care and support they received from Natural Breaks, 'staff wer6 caring and always promoted people's dignity and independence, 'People and their relatives were highly complimentary about the service. Pèople told us the setvice was 'excellenV' and met people's needs, 'People we spoke with told us they felt safe being supported by the staff, and staff were able to describe the course of action they would take if they felt someone was being harmed or wa5 at risk of harm, Risks which comprornised people's health and well-being were appropriately assessed, and ¢ontained a high level of detailed information. The Trustees were particularly pleased whèn. in recognition of their expertise and experience. of our senior managers were asked to take up joint running of the Liverpool Registered Managers forum in March 2024. Maintaining preferred supplier slatus with Liverpool Adult Social Services. Liverpool City Council Conlracis and Commissioning meetings with providers have now resumed and cover,. safeguarding, quality assurance, use of voids and topical matters. No issues were raised in respect of Natural Breaks. and only positive verbal feedback was received about the Charity's excellent reputation. and its strong engagement with Commissioners. who stated ' We only hear good things about Natural Breaks,. Holding approved provider status with the local authorities for Wirral, Sefton and Cheshire West and Chester. Delivering our financial sustainability plan. which enabled us to increase income and manage our costs whilst keeping our 2023-24 pay rates above Real Living Wage levels. Using the Positive Behavioural Support skills and knowledge in our senior management tearn to ensure a further successful transition of two young people with multiple complex needs from child to adult social care. Achievements that have led to us being approached to deliver similar seFvices in 2024. Developing ideas around 'a life not a service,, for example. facilitating volunteering opportunities in local cornmunilies. people we support ¢O-editing our newsletter and determining the annual events programme. Ensuring that the people we support, through their Have Your Say group, design the events programme and are able to voice their views on all support matters directly to senior management. Recent quotes from the HYS group are.. 'Natural Brèaks have boss staff that encourage you to do the thing5 you want, 'My Dad always told rne he was glad l joined Natural Breaks, since being her61 can budget my own money, and: 'Before Natural Breaks I was supported sornewhere else where l always had to be in by a certain lime,. Delivering our Workforce Development strategy., pulling together initiatives around pay. benefits, conditions, training & development. health and wellbeing ensuring we maIn an attractive and cornpetitive employer. In our latest staff survey (June 2024) employees were asked what they love about working at Natural Breaks,. 'Meeting People - able to learn new skills. build relationships with others and enhance the lives of people we support to live a good. quality life, Making a difference - helping people live their life to the full. making an individual smil8, supporting an individual to achieve their goals. encouraging an individual's confidence and helping an individual overcome a challenge, Tearn - working alongside respecttul, understanding teams and having approachable frtendly manager5. Fe81ing part of a family, Flexibility - having the ability to work and to fit in everyday or personal tasks such as going to the doctor or attending appointments, Commencing roll-out of our integrated care sUPPOrt and rota management system enabling us to transfomi our care plans and support arrangements from paper to digilal. The system was in operation at 25 /0 of Supported Living services by the end of year 1. One OT OLif ¢110r I'n¢)l-lag.-_rs is &, UJ l110[S Oi OUI- nI04 ffl&ilcCjL211l '.biliiTknS) dCci'iJiid Po>iiive o@navioural bui)POiT i-ll I1-n riolui bi31 J )iaCiILlOllQI- siaid- Page 3
Natural Breaks Limltod Report of the Trustees for the Year Ended 31 March 2024 ACHIEVEMENT AND PERFORMANCE Fundraislng activities The Trustees decided to aim for modest fundraising levels in 2023-24 and to continue all fundraising without recourse to an intemal fundraiser or extemal support. The charity successfully raised funds around the theme'Take a Break with Natural Breaks,. This fund is designed to provide assistance for people with disabilitiès to be able to access subsidised trips, events etc. Our Chief Executive led on bids and other funds were raised through our staff and trustees, their families and friends. and families and friends of people we support. We raised £6,614 mainly through the following.. a successful bid for £1,500 from the Liverpool Community and Voluntary Service Community Impad Fund a donation from an employee of Scott Bader, related to a person we support, using their allocation of the Scott Bader Employees charity support scheme a member of our staff arranging a Halloween event in collaboration with The Yacht Club, Liverpool other donations frorn individuals connected with our staff. trustees and friends and families of people we support the easytundraising scheme when our supporters use this facility for their on-line shopping Our website, fully launched in 2018, has excellent, secure fundraising functionality and is the prime method for receiving donations. Natural Breaks has registered with the Fundraising Regulalor and follow the Code of Fundraising Practice. We do not use professional fundraisers or commercial parlicipators. All events are managed by a nominated employee and all funds raised are Managed by our Finance Manager. The very nature of our charity bring5 us into contact wilh vulnerable people and we have robust safeguarding and professional boundaries policies. We have had no complaints about fundraising by our charity. Internal and external factors The trustees are delighled with th6 performance of our Chief Executive, Diane Hesketh. Diane is an ideal fil for Natural Breaks. she always brings great enthusiasm to the role. her leadership has transformed the senior management team, motivated and developed our workforce, raised the profile and importance of Natural Breaks with commissionèrs. Diane has a real rapport with the people we support and their families. During Ihe last year three new trustees joined the charity enhancing the Board's overall skill set, knowledge and expertise. One existing trustee, lan Meyer, subsequently resigned in April 2024 and the Board are grateful for the lime, effort and experience he brought whilst with Natural Breaks. FINANCIAL REVIEW Financial position The actions in our Financial Sustainability Plan. first introduced by the trustees in 2018-19. continued through 2023-24. Our income grew by 18.OYll, reflecting significant improvements in rates paid by commissioners and inCaSed delivery. Through careful management of resources {e.g. yet again we delivered our services without recourse to agency staffing) and tight control of costs. we were able to continue to pay above Real Living Wage levels from April 2023 but keep our expenditure increase to 12.50/0. Overall. the organisation recorded a surplus of 4.74/0 which was better than forecast in the plan. The truslees have agreed a further financial sustainability plan for 2024-25 with a number of 8Qtions identified, initiatives to increase overall income and measLJres to tightly ¢ontrol costs. Included wllhln the charity balance sheet at the year-end is an amount of £79,812 being deposits held on behalf of beneficiaries of the charity .{the 'Designated Custodian Fund,). th8 amount is duly represented by an equal creditor of £79.812. Prlncipal funding sources Our principal funding in 2023-24 came from commissioners in the local authorities of Liverpool and Sefton with sorne via NHS Continuing Health Care. Other funding came from direct paymonts by people we support. their families and carers. There were restricted grants and fvnds received in 2023-24 arnounting to £4.061 in respect of the 'Take a Break with Natural Breaks, fund and funding for the caravan. Inveslment policy and objectives Funds that are surplus to requirements in the Short term are kept in fixed term and nolice-based int8rest-bearing accounts in accordance with the charity's Investments Strategy. Natural Breaks does not have any other investments. Page 4
Natural Breaks Llmited Report of the Trustees for the Year Ended 31 March 2024 FINANCIAL REVIEW ReseNes policy Natural Breaks is determined to keep a level of reserves commensurate with balancing the need to release funds with the need to retsin sufficient funds for an orderly, compliant closure and redundancy costs. The calculation of average monthly operaling costs includes all recurring predictable expenses such as redundancy for office-based staff, salari85, taxlNI and rent. Best- and worst-case breakdowns are held with the organisation's Reserve Policy. The level of re5eryes at 31 March 2024 increased to £923,897. The trustees acknowledge that this is higher than that required by the best- and worst-case costs in the Resetves Policy but they believe that it is appropriate in view of the general economic uncertainty in the sector. pressures on income and increasing staff costs. The Reserves Poli¢y is kept under regular review. FUTURE PLANS The tNslees recognise the immediate shortlmediurn term ¢hallÈnges Natural Breaks face delivéring social care: wilh the need to balance the pressures on income, with the expectations of people we support and their families and carers. with the need lo excel in regulatory requirements and meet the needs to reward and develop our workforce. LoDking to the longer term, the trustees foresee that there will be significant changes lo social care provision and, with our Chief Executive and all managers. are developing our'Natural Breaks 2030. strategy. Our plans for 2024-25 build on the financial 5UStainability and the workforce development actions introduced in previous years that have placed the organisation in ideal shape to expand the range of servicès and activities we can provide. Our plans include.. Ensuring we continue delivering services in a safe and secure way by assessing the needs and priorities of people we support, workfor¢e availability, technological solutions and HM Government, commissioners and publi¢ health guidance guidance Delivering the financial sustainability plan to increase income generation and lightly manage expenditure Implementing a pathway to achieve CQC Outstanding status Delivering our Workforce Development plan, irnplementing changes to our pay and benefits. terms and conditions. health and wellbeing support to ensure we remain an attractive and competitive employer Designing and delivering a 'Back to Basics, programme for all stsff. managers and trustees that will reinforce the values and behaviours of Natural Breaks Developing our Cyber Resilience strategy Continuing rollout of our digital care and support plan across our $8rvices. introduction of a digital rota rnanagement system along with investigating integration with our 'back office, systems Reviewing how the services we provide fit with the 'a life not a service, concept and identifying how we could address those other needs. in particular. reassessing the housing needs of the people we support with the aim of future proofing housing models Developing innovative solutions to rneet the needs of people with disabilities who fall outside assessed needs service5 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, a deed of trust. and constitutes a lirnited company, limited by guarantee, as defined by the Companies Act 2006. Charity constitution Natural Breaks activities started in 1992 and was incorporated as a not-for-profit company limited by guarantee in 1994. In Augusl 2016 it became a registered charity. Recruitment and appointment of new trustees The Articles allow for up to 9 Irustees {rninimum 2). As at 31st Mah 2024, Ihe Board had 6 trustees following the recruilment of thr8e trustees during 2023-24. Natural Breaks has a policy governing conflicts of interest and all trustees must Complete a declaration of inleresls. A register is maintained by the company secretary. Trustees are el8Cted by the members of the charity and one third, by rotation, each year must retire and can sland for re- election. The trustees have discretion to admit into membership of the charity individuals who support the objects of Natural Breaks. Constant regard is paid to the skills mix of the trustees to ensure they all have the necessary skills to contribute fully to Ihe charity's development. Page 5
Natural Breaks Limited Report of the Trustees for the Year Ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure The organisation structure at 31st March 2024 was as follows: Trustees Chief Executlve HR & Quality Assurance Mgr Service Managers! Communications, Coordinator 1x31 Finance Manager, Service Coordinators Support Workers,. Decision making The board of trustees meets bi-monthly. The board is supported by the following committees. with defined terms of reference, and which meet throughout the year: Governance and Safeguarding Finance Busin&ss and Marketing The chief executive and senior managers attend, and provide reports to, regular meetings of the board of truste85 and the committees. This enables the business of Natural Breaks. including strategy development and govemance, to be undertaken collaboratively. The chief executive manages the day to day business wilhln defined authority delegated by the trustees. The delegated authority is reviewed annually and covers activities that can be undertaken without the trustees, specifio agreement, for example.. Size and scope of services that can b8 procured. Fundraising. staff policies. Staff remuneration. Budget and expenditure. Procurement ofassets. Contraotual obligations and liabillties. Induction and training of new trustees On becoming a trustee, trustees are briefed by the chair on their responsibilities as a trustee. They are briefed by their ¢o- trustees and chief executive on the history of Nalural Breaks, financial position and operational management of the charrty, current objectives and fijture plans. The trustees are encouraged to attend any courses which they feel are relevant to the development of their role and keep up to date on any changes in legislation. All the directors at th& time Natural Breaks became a charity undertook independent training in Ihe'roles and responsibililies of trustees, and members of the Finance Committee undertook 'financial awareness, training. Page 6
Natural Breaks Limited Report of the Truste85 for the Year Ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management The Governance Committee regularly review thè strategic risk register and have identified key risks and determined their mitigation. These include- Compètition from simllar organisations, with an ever-present factor being those paying higher wages and an emerging factor being use of technology. Mitigation - The Irustees have agreed to pay the Real Living Wage for 2024-25 and continue lo monitor the local market trj ensure the charity's reward and recognilion package is attractive. Developments in adult social care in the Mers6yside area and all requests for new s&rvi¢es are logged and outcomes are reported to the Business & Marketing Committee. Families and carers are surveyèd regularly and their feedback acted upon.. Inforniation Technology. particularly digilisation of the sector and cyber security. Mitigation - To transform our care plans and support arrangements from paper to digital, we procured an integrated care support and rola management system in 2022. This is being rolled out across all our seNices. Mindfvl of the change in risk profile in moving from an essentially paper-based operation, our cyber security strategy and business continuity plans are being reviewed and the Data Protection & Security Toolkit assessment is being updated. 3 Over dependency on one key supplier. Mitigation - Opportunities to develop transition services and sejvices in boroughs outside Liverpool are monitored. Work will conlinue to develop additional sources in 2024-25. 4 Employment issues. which we perceive could emerge across the sector through the post Covid employment market. such as: recruitment and retention, wellbeing and mental health. Mitigation - Quite unique to Natural Breaks. we have maintained our standard of not using temporary agency staff to provide direct support. A number of factors have made this possible and sustainable including effective rota management. targeted recruitment campaigns, our'Refer a Friend, initiative and successful engagement wilh an employment agency to source permanent support workers and middle managers. Our Chief Executive hosts a quarterly CEOISupport Worker Forum enabling direct communication and an opportunity for our support workers to inform and influence operational and organisational practice. Employee health and well-being is a priority area for the organisalion. Individual hoalth and Welfa checks regularly lake pla¢e and employee support is available Ihrough our Employee Benefits Flexcel Platfomi. Our Wellbeing Slrategy, risks and appropriate mitigation measures was introduced in 2022 and is reviewed regularly with training including Mental Health Awareness and Mental Health Champion5 taking place. Our'Back to Basics, programme for all staff. managers and trustees introduced in June 2024 reinforced roles and responsibilities. policies and procedures and good practices. Dependency on income from local authorities. Mitigation - The Irustees are aware of commenls made by local authorities about their funds. Statements from Liverpool City Council on their financial viability and the potential implications of a Section 114 will be monitored. Our Chief Executive, as a member of VODG and through other forums. has Ihe opportunity to engage with the commissionèrs and represent Natural Break5 and SME'S in relation to fairer funding and term5 and conditions. 6 Compliance with legislation and regulations specifically ensuring highest quality care and support. Mitigation Two of our senior managers hold CQC Registered Manager status and chair the Liverpool Registered Manager forurn. All regulated services are subject to health checks. an intsrnal audit was conducted in 2023-24 and any actions arising completed and reported through the Govemance & Safeguarding Committée. Our Chief Executive and Senior Management team engage with local, regional and national forums and confèrences to keep abreast of compliance, legislative and regulatory developments. Our Chief Executive is a member of Liverpool Adult Safeguarding Board ILSAB} represènting Supported Living and Community Support service. 7 Compliance with legislation and regulations specifically arising from Merseyside Fire & Rescue Service extending regulations to apply to supported living services delivered by all providers. Mitigation - A specialist fire risk assessrnent provider has been engaged and a bi-annual survey programme is in operalion. with assessments and acttons being reported to the trustees Ihrough the Governance & Safeguarding Committee 8 Slaff turnover. our workforce is increasing in size and the overall profile is changing. Mitigation - Recruitment standards have not been diluted, our Welcome Day, Induction procedures and training have been adapted. All staff received 'Back to Basics, training. Demographics of the people we support. an aging population and a tendency in older people to develop multi- health issues requiring additional and specific support. Mitigation - the management team regularly review care plans and take a pro-aotive approach to agreeing changes to support arrangements with Adult Social SeNices. Mindful of the need to consider our social care provision to both existing and new people in the future, the trustees with our Chief Executive and all managers, are developing our'Natural Breaks 2030, strategy. REFERENCE AND ADMINISTRATIVE DETAILS Rogistered Company number 02996621 (England and Wales) Page 7
Natural Breaks Limited Report of tho Trustees for the Year Ended 31 March 2024 Registered Charity number 1168733 Registered offlce Millennium Resource Centre Blenheim Street Liverpool Merseyside L5 8UX Trustees K C Lloyd I P Meyer (resigned 25.4.24) Mrs J Erskine R Itiokiet D G O'shaughnessy (appointed 19.6.23) P H Weston (appointed 19.6.23) G Flanagan (appointed 15.8.23) Company Secretary Mrs K Burke Auditors SB&P Chartered Accountants & Statutory Auditors Oriel House 218 Oriel Road Booue Merseyside L20 7EP STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees (who are also the directors of Natural Breaks Limited for the purposes of company law) are responsible for preparing the Report of the Trustee5 and Ihe financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial yèar which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are qUired to select suitable accounting policies and then apply them consistently: observe the methods and principles in the Charity SORP. make judgements and estimates that are reasonable and prudent,. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitabl8 company will continue in business. The trustees are responsible for keeping proper aOUnting records which disclose with reasonable accuracy al any time the financial position of the charitable cornpany and to enable thern to ensure that the financial Statements comply wilh the Companies Act 2006. They are also responsible for safeguardin9 thè assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: there is no relevant audit infomiation of which the charitable company's auditors are unaware: and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are awa of that infomation. Approved by order of t 7d of trustees on ......... ........... and signed on its behalf by- K C Lloyd - Trustee Page 8
Report of the Independent Auditors to the Members of Natural Breaks Limited Opinion We havé audited the financial statements of Natural Breaks Limited (the 'charttable company.) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position. the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accèpted Accounting Practice). In our opinion the financial statements= give a true and fair view of Ihe state of the charitable company's affairs as at 31 March 2024 and of its incorning resources and application of resources, including its income and expénditure, for the year then ended., have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companiés Act 2006. Basls for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS {UK}} and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriats to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statemenls. we have concluded that the trustees, use of the going concem basis of accounting in the preparalion of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability lo continue as a going concem for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are descrtbed in the relevant sections of this report. Other inforniation The trustees are responsible for the other infomiation. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on Ihe financial statements does not cover the other information and, except to the extent otherwise explicitiy stated In our report, we do not expres5 any form of assurance Conclusion Ihereon. In connection wilh our audit of the financial statements, our responsibility is to read the other information and. in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such rnaterial inconsistencies or apparent material mis5talements, we are required to detemine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude Ihat there is a material misstatement of this other information, we are required to report that fact. We have nothing lo report in thi5 regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on Ihe work undertaken in the course of Ihe audit.. the inforrnation given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements-, and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of tho knowledge and understanding ot the charitable company and ils environment obtained in the course of the audit. we have not identified material misstatements in Ihe Report of the Trustees. We have nothing to report in respect of the following matters where the Compani85 Act 2006 requires US to report to you if. in our opinion- adequate accounting records have not been kept or retums adequate for our audit have not been Cerved from branches nol visited by us. or the financial statements are not in agreement with the accounting records and returns.. or certain disclosures of trustees, remuneration specified by law are not made- or we have not received all the infomiation and explanations we require for our audit-, or the trustees were not entitled to take advantage of the small companies exemption from the requirement lo prepare a Strategic Report or in preparing the Report of tho Trustees. Page 9
Report of the Independent Auditors to the Members of Natural Breaks Llmited Responslbilities of trustees As explained more fully in the Statement of Trustees, Responsibilities, the Irustees (who are also the directors of the charitable company for the purposes of cornpany lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees detemiine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Ihe trustees are responsible for assessing Ihe charitable company's abiltyto continue as a going concem. disclosing, as applicable. matters relaled to going concem and using the going concem basis of accounting unless the trustees either intend to liquidate Ihe charitable company or to cease operations, or have no realistic alternative but to do so. Our responsibilltles for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mi5Stalemenl. whelher due to fraud or error, and lo issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always dete¢t a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The objectives of our audit are to identify and assess the risks of material misstatement of the financial stalemenls due to fraud or error,. lo obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or emr., and to respond appropriately to those risks. Owing to the inherent limitations of an audit there is an unavoidable risk Ihat material misstatements in the financial statements may not be detected. even though the audit is properly planned and performed in accordance with the ISAS (UK). In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the sector in which it operates. We detemined that the following laws and regulations were most significant.. The Companies Acl 2006 UK corporate tax laws UK employment laws UK heallh and safety regulations Care Quality Commission Health and Social Care Act 2008 Heallh and Care Act 2022 We assessed the susceptibility of the Company's financial statsrnents to materiality misstaternent. including how fraud might occur. Audit procedures performed by the audit engagement team included.. identifying Ihe controls that management has in place to prevent and detect fraud- challenging assumptions and judgements made by management in its significant accounting estimates., auditing the rrsk of management override of controls. including through testing joumal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business- assessing the extent of compliance with the relevant laws and regulations. A further description of our responsibilities for the audit of the financial statsments is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description foms part of our Rèport of the Independent Auditors. Page 10
Report of the Independent Auditors to the Members of Natural Breaks Limited Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale to the charitable company's members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company. mernbers as a body. for our audit work. for this report, or for Ihe opinions we have fomied. Suzanne Draper FCCA ACA {Senior Statutory Auditor) for and on behalf of SB&P Chartered Accountants & Statutory Auditors Oriel House 218 Oriel Road Bootle Merseyside L20 7EP Date.. Page 11
Natural Breaks Llmited Statement of Flnancial Activities for the Year Endod 31 March 2024 31.3.24 Total funds 31.3.23 Total funds Unrestricted funds Restricted funds Noles INCOME AND ENDOWMENTS FROM Donations and legacies 16,109 1,834 17,943 27,015 Charitable activitles Supported Living 3,943,805 1,670 3,945,475 3,337,323 other trading activities Investment incorne 295 557 852 9,812 675 2,983 Total 3,970,021 3,974,082 3.367,996 EXPENDITURE ON Charitable activities Supported Living 3,773,735 12,222 3 785,957 3,365,381 NET INCOMEI(EXPENDITURE) Transfers between funds 196,286 6,046 {8,161) 188,125 2,615 15 Net movement in funds 190.240 (2,115) 188,125 2,615 RECONCILIATION OF FUNDS Total funds brought foMard 714,751 21,021 735,772 733,157 TOTAL FUNDS CARRIED FORWARD 904,991 923,897 735.772 The notes form part of these financial statements Page 12
Natural Breaks Limited statement of Financial Position 31 March 2024 31.3.24 Total funds 31.3.23 Total funds Unrestricted funds Restricted fvnds Notes FIXED ASSETS Tangible assets 11 14,664 11,060 25,724 25.733 CURRENT ASSETS Debtors Cash at bank and in hand 12 404,538 722,692 450 7,396 404,988 730,088 325,553 611,451 1,127,230 7.846 1.135,076 937.004 CREDITORS Amounts falling due within one year 13 (236,903) (236,903) {226.965) NET CURRENT ASSETS 890 327 7,846 898 173 710.039 TOTAL ASSETS LESS CURRENT LIABILITIES 904,991 18,906 923,897 735,772 NET ASSETS 904 991 18,906 923,897 735.772 FUNDS Unrestricted funds Restricted funds 15 904,991 714,751 21.021 TOTAL FUNDS 923,897 735,772 These financial statements have been prepared in accordance wilh the provisions applicable to charitable cornpanies subject to the small ¢ompanies regime. The financial statements were approved by the Board ofTrustees and authorised for issue on ... and were signed on its behal K C Lloyd - Trustee The notes form part of these financial statements Page 13
Natural Breaks Limited ststement of Cash Flows for the Year Ended 31 March 2024 31.3.24 31.3.23 Notes Cash flows from operaling activities Cash generated from operations 114,681 12.660} Net cash provided byl(used in) operating activities 114,681 12,660) Cash flows from investing activities Purchase of tangible fixèd assets Interest received (5,856) 9,812 (2,596) 2.983 Net cash provided by investing activities 3,956 387 Change in cash and cash equivalents In the reporting period Cash and cash equivalents at the beginning of the reporting period 118,637 112,273) 611451 623,724 Cash and cash equivalents at the end of the reporting period 730 088 611.451 The notes form part of these financial statements Page 14
Natural Breaks Llmited Notes to the Statement of Cash Flows for the Year Ended 31 March 2024 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.3.24 31.3.23 Net income for the reporting perlod (as per thè Statement of Financial Activities) Adjustmènts for: Depreciation charges Loss on disposal of fixed assets Interest received Increase in debtors Increasel(decrease) in creditors 188,125 2,615 5,192 673 {9,812) (79,435) 9,938 5,955 (2.983) 12,772) 15,475 Net cash providad byl(used in) operatlons 114,681 12,6601 ANALYSIS OF CHANGES IN NET FUNDS At 1.4.23 Cash Itow At 31.3.24 Net cash Cash at bank and in hand 611,451 118,637 730 088 611,451 118 637 730.088 Total 611,451 118,637 730,088 The notes fOn part of these financial statements Page 15
Natural Breaks Limited Notes to the Financial Staternenls for the Year Ended 31 March 2024 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP {FRS 102) 'Accounting and Reporting by Charities= Slalement of Recornmended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2019),. Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that Ihe income will be received and the amount can be measured réliably. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure. it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basi5 and has been classified under headings that aggregate all cost related to Ihe category. Where costs cannot be direcuy attrtbuted to particular headings they have been allocated to activities on a basis consistent with the usè of resources. Allocation and apportionment of costs Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs. govemance costs, administrative payroll costs. They are incurred direcuy in support of expenditure on the objects of the charity and include projecl management. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis Consistent with use of the SourCes. The basis of the allocation of premises overheads and olher overheads is shown in note 5. Fund-raising costs are those incurred in seeking volLsntary contributions and do not include the costs of disseminating infomiation in support of the charitable activities. The analysis of these costs is included in note 5. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful lifv. Improvements to propety Fixtures and fittings 20 % on cost 200/0 on reducing balance Taxatlon The charity Is exempt from corporation tax on its Gharttable aGtivities. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discrelion of the trustees. Restricted fijnds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for parttcular restricted purposes. Further explanation of the nature and purpose of each fvnd is included in the notes to the financial statements. Pension costs and other pOStet1reM¢nt benefits The charitable cornpany operates a defined contribution pension scheme. Contributions payable lo the charitable company's pension scheme are charged to the Statement of Financial Activities in Ihe period to which they relate. Employee benefits When employees have rendered service to the company, short-term employee benefit5 to which the employees are entitles are recognised at the undiscounted amount expected to be paid in exchange for that service. Page 16 continued...
Natural Break5 Lirnitad Notes to the Financial Statements - continued for the Year Ended 31 March 2024 DONATIONS AND LEGACIES 31.3.24 31.3.23 Contributions to Activities Gifts and donations Grants 12,181 5,762 11.738 9,974 5.303 17,943 27.015 Grants received, included in the above, are as follows: 31.3.24 31.3.23 Job Rétention Schem6 Grant 5.303 OTHER TRADING ACTIVITIES 31.3.24 31.3.23 Fundraising events 852 675 INVESTMENT INCOME 31.3.24 31.3.23 Interèst receivable 2.983 INCOME FROM CHARITABLE ACTIVITIES 31.3.24 31.3.23 Supported living servi$ Social Leaming Outreach Income Activity Supported Living 3,551,145 2.972.288 Supported VIng 394,330 365 035 3,945 475 3,337.323 CHARITABLE ACTIVITIES COSTS Support costs (see note 7) Direct Costs Totals Supported Living 3 103,892 682,065 3 785,957 Page 17 continued...
Natural Broaks Limltod Notes to the Financial Statsments - continued for the Year Ended 31 March 2024 SUPPORT COSTS Human resources Office costs Premis8S costs Supported Living 466,388 136,115 70,729 Governance costs Other 3 Totals Supported Living 673 8,160 682,065 NET INCOMEI(EXPENDITURE} Net incomel(expenditure) is stated after chargingl(crediting): 31.3.24 31.3.23 Auditors, remuneration Depreciation - owned assets Deficit on disposal of fixed assets 7.560 5,192 673 5,799 5,955 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. Trustees. expenses There were no trustees, expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023. STAFF COSTS 10. 31.3.24 31.3.23 Wages and salaries Social security costs Other pension costs 3,122A37 292,476 80,775 2.741,049 264.352 71,007 3,495 688 3.076,408 The average monthly number of employees during the year was as follows: 31.3.24 120 Charitable activity staff 31.3.23 108 No employees received emolumenls in excess of £60.000. Page 18 continued...
Natural Breaks Limited Notes to the Flnanclal Statements - conllnued for the Year Ended 31 March 2024 11. TANGIBLE FIXED ASSETS Improvements Fixtures and fittings property Totals COST At 1 April 2023 Additions Disposals 75,789 96,967 5,856 13,6321 172.756 5,856 13.6321 At 31 March 2024 75,789 89,191 164 980 DEPRECIATION At 1 April 2023 Charge for year Eliminated on disposal 75,789 71.234 5,192 12,959) 147,023 5,192 12 959) At 31 March 2024 75,789 63.467 139.256 NET BOOK VALUE At 31 March 2024 25,724 25.724 At 31 March 2023 25.733 25,733 12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Trade debtors other debtors Prepayments 349,144 33,922 21,922 297.698 9,088 18.767 404,988 325.553 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Pensions Other creditors Accruals and deferred incom& 12,671 139,363 12.671 119,105 95.189 236,903 226.965 14. LEASING AGREEMENTS Minimum lease payments under non-cancellablè operating leases fall due as follows: 31.3.24 31.3.23 Within one year Between on8 and five years 55,640 166.920 54,768 222,560 109.536 Page 19 continued...
Natural Breaks Limited Notes to the Financial Statements - continued for the Year Ended 31 March 2024 15. MOVEMENT IN FUNDS Net movement in funds Transfers between funds At 31.3.24 Al 1.4.23 Unrestricted funds General fund 714,751 196,286 (6,046) 904,991 Restricted funds Caravan Fund Take A Break Project 11,509 9,512 (6,045) 6,046 11,510 8,161 6,046 18,906 TOTAL FUNDS 735.772 188,125 923,897 Net movement in funds, included in the above are as follows.. Incoming r8s0urces Resources expended Movement in funds Unrestricted funds General fvnd 3,970,021 (3,773,735) 196,286 Restricted funds Caravan Fund Take A Break Project 1,670 2.391 {7,715) (6,0451 2,116 4,061 12,222 8,161 TOTAL FUNDS 3,974.082 3.785,957) 188,125 Comparatives for movement in funds Net movement in funds Transfers between funds At 31.3.23 At 1.4.22 Unrestricted funds General fund 675,539 7,117 32,095 714,751 Restricted funds Caravan Fund Workforce Retention Fund Take A Break Project 16,357 38,275 4.986 (9,868) 840 4.528 5,020 (37.115) 11.509 9.512 57,618 4.502 32,095 21,021 TOTAL FUNDS 733,157 2.615 735,772 Page 20 continued...
Natural Broaks Limlted Notes to the Financial Statements - contlnued for the Year Ended 31 March 2024 15. MOVEMENT IN FUNDS . continued Comparative net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund 3.356,295 13.349,178) 7.117 Restricted funds Caravan Fund Workforce Retention Fund Take A Break Project 1,621 {11,489) 19.868) 840 4.526 9,240 11.701 16,203 4,502 TOTAL FUNDS 3,367,996 3,365,381) 2,615 16. RELATED PARf( DISCLOSURES There were no related party transactions for the year ended 31 March 2024. UNRESTRICTED FUNDS 17. General fund This fund may be used at the discretion of the board of trustees in fijrtherance of the charitable company's objects. 18. RESTRICTED FUNDS Caravan Fund The fund was set up following consultation with beneficiaries of the charity and their families. The provision of accessible holidays and short breaks were identified as a valuable service that would benefit many. Receipt of a restricted donation, together with general fundraising gave the charity the opportunity to purchase a 6 berth fully accessible caravan at Lyons Holiday Parks in Toywn, North Wales. It has been a hugely successful acquisition. giving well deserved opportunity and benefit to those we support. Thè balance of the fund represents the NBV of th8 caravan included in fixed assets. Workforce Ca aci Grant received to enable local authorities to deliver measures to supplement and strengthen adult social care staff capacity. Take a Break Pro ect To subsidize the cost of holidays. day trips and other centre activities to enable service users to attend without the additional cost. 19. TRANSFERS An amount of £6,046 has been transferred from General fund lo Caravan fund as a contribution which r8presents expenses paid towards caravan costs incurred during the year. Page 21