Birtenshaw Merseyside (A company limited by guarantee) Report and Financial Statements Year ended 31 March 2024 Charity number 1176826 Company number: 10500399
Directors report incorporatlng Strateglc report The Trustees are pleased to present their annual directors, report together with the financial statements of the charity for the year ended 31 March 2024 which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply with the Charitie5 Act 2011, the Companies Act 2CKI6, the Memorandum and Articles of Association, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191. Structurei govemance and management Birtenshaw Mer5ey5ide is a subsidiary of the Birtenshaw group. Birtenshaw Mersey5ide is a registered charity and a company limited by guarantee, governed by its Article5 of A550ciation. Strategic development and governance decisionsare made bythe Board ofTru5tees, on advice provided by the Chief Executive, with the bulk of the work carried out by a very strong Committee structure following a Directorate model: l. School Governing body 2. Audit. Finance and Risk Each of these committees, is chaired by a Trustee and comprises Other Trustees, the Chief Executive and the Department Head responsible for the respective Directorate. The full Board of Trustees meets on a bi-monthly basis, following the Directorate Committee meeting5. The Board of Trustees are advised and briefed bythe Chief Executive, supported bythe Senior Executive Team. This team meet on a weekly basi5 to ensure the Smooth running of the organisation, linked to the Senior Management Team and the wider Management Team. The Chief Executive communicate5 Wlth the Chair on a regular basis to discuss the running of the organisation. Major issues are di5CU5sed and 501utions are agreed where necessary. This enables the Board of Trustees to keep up to date with all services and activities at Birtenshaw Merseyside. Trustee recruitrnent and induction Trustee vacancies are promoted widely, normally in the media and via other organ isations and prof essiona I bodles so a5 to encourage a broad and d iverse range of applicants. Candidates are invited for a site- visit. encouraged to attend at least one Board meeting and interviewed by the Chair of the Board and the Chief Executive Officer who subsequently make an appointment recommendation to the Board. On appointment, Trustees are allocated to the Committee structure as appropriate. All new Trustees are provided with an induction which includes relevant reading materials related to the governance of the charity. Training is offered to Trustees as required and a short training session on key issues is provided by the Charity Solicitor at each Board meeting. When circumstances allow an 'away day, event is held annually for Trustees to review and update the strategic plan.
Key management personnel The Trustees have identified the Senior Executive Team as the key management personnel of the charity. Chief Executive pay is agreed by the Board. Objectives and activities The Trustees refer to the Charity Commission's general guidance on public benefit when reviewing the charitvs aims and objectives and in plannlng future activities. The objects of the Charity as set out in the Articles of Association are The advancement of the education of the public in particular but not so as to limit the generality of the foregoing by the provlsion and maintenance of a school or schoo15 for children and adults Wlth special educational needs and disability. To relieve the needs of children and adults who are disabled or those with special educational needs by providing residential homes, associated amenities and/or care services,. To provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need of such facilities by rea50n of thelr youth, age, Infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life. The Trustees confirm that Birtenshaw Merseyside has complied with Charity Commission guidelines in relation to Public Benefit. Birtenshaw Merseyside was established in 2018. A new state of the art special School opened in January 2018 with the first cohort of pupils joining in September 2018. The school includes a range of classroom sizes enabling individual, paired or small group learning environments. There is a sports hall, health and 25m hydrotherapy suite. a range of light and dark sensory rooms, IT and library facilities, a play safe room and a fully kitted out flat where young people can learn independent living skills. The site is on a long-term lease agreement and all the staff are employed jointly by Birtenshaw and Birtenshaw Merseyside. Principal risks and uncertalntles The management of activities and the implementation of the Birtenshaw Merseyside strategy are subject to a number of risks. The key risks are considered to be reputation315uch as a serious safeguarding incident, and Regulatory and Compliance matters which could all result in reduced funding. Safeguarding risks are mitigated by ensuring there are robust policies and procedures in place which include recruitment, induction and training for staff. a culture of openness and reporting. internal and external monitoring inspections and reports. Regulatory and compliance risk5 are mitigated by having policy and procedures aligned with regulations, regulatory inspections, internal and external monitoring inspections and an experlenced and knowledgeable staff team. The Trustees consider exposure to credit risk to be limited as the organisation does not have any external investments. Market risk is always a risk for the organisation. especially due to the current economic situation, however plans are in place and regular budgeting Is carried out to mitigate this risk. Liquidity risk is not a risk to the organisation due to its strong cash position. Blrtenshaw group has a risk register which is regularly reviewed by the Senior Executive Team and the Board of Trustees and appropriate processe5 Put In place to monitor and mitigate them.
The process for this is: the risk 15 identified; control measures are applied to transfer the risk, for example, insurance or activity carried out by another service, accept or tolerate the risk, or, treat or control the risk, or, stop the actlvlty. Rlsk is re-assessed at planned regular intervals to monitor and review the effectivene55 Qf either the risk control or the solution. Achlevements and performance The Charlty operates Birtenshaw School Merseyside, an independent special school offering education for children aged 3-19 who have an EHCP (Education Health Care Plan), for pupils with significant physical impairment, complex health needs, learning disability and / or Autistic Spectrum Conditions. The dynamic and pa55ionate staff team are committed to the Birtenshaw vision of Transforming Lives,. We ensure pupils receive the same learning and social opportunities as other pupils; which we achieve by providing facilities which are second to none and a creative curriculum tailored to meet their needs. Birtenshaw School Merseyside was inspected by Ofsted in July 2023 and the judgement was Good. The Charity provides high quality services and continue5 to invest in infrastructure and the school facility. The school has a registration for 80 pupils and is operating at almost full capacitv. Plans for fvture periods Birtenshaw Merseyside's main focus continues to be the delivery of high quality services to larger numbers of pupils with special need5. Financial review Birtenshaw Merseyside opened January 2018 but was not fully operational until the first cohort of pupils joined at the start of the 201812019 academic year. Since that time pupil numbers have increased and the school is operating at almost full capacity. Total incoming resources for the year were £5.3m12023'. £5.Iml, with total resources expended £4m 12023.. £3.5m), meaningthat net incoming resources forthe 2023-24yearwere circa £1.3m. The Charity is considered a going concern as pupil numbers are almost at full capacity and liabilities can be met as they fall due. No material income was received from fundraising events. Reserves policy The Trustees are responsible for ensuring that the Charity maintain5 an appropriate level of reserves to meet assessed risk and to manage cash flow. Birtenshaw Mersey5ide is required to quantify the free reserves position when applying the SORP5 definition of free reserves. At 31 March 2024 the free reserves figure is £4.8m12023: £4.7ml. For the purposes of short and medium term financial management, the Trustees are more concerned with management of cash, and have a target of holding cash levels sufficient to fund six months of ongoing unrestricted expenditure to cover the unlikely eventuality of a material decline in incoming resources. The School is near capacity and demand for services is high with no indication of a downturn. Operational forecasts are made with a high degree of certainty as they are based on age profiles of the service users and placement growth. In addition the source of income such as contratt income from local authorities is stable and reliable. The Trustees consider the charity should be holding six months of expenditure in cash reserve5, based on 24125 forecasts this would equate to £2.2m. The 31 March 2024 cash position is £6.3m therefore exceeding the target.
Trustees, responsibllities The Trustees Iwho are also dirertors of Birtenshaw Merseysidel for the purposes of company lawl are responsible for preparing the Trustees, Report and the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resource5, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP,. make judgments and estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards have been followed, and prepare the financial statements on the going concern basi5 unles5 It is inappropiiate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companie5 Act 2006. They are a150 responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governinB the preparation and di55emination of financial statements may differ from legislation in other jurisdictions. Statement as to disclosure of information to auditors In so far as the Trustees are aware.. there is no relevant audit information of which the charitable company'5 auditor 15 unaware,. the Trustee5 have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information Small Company rezime These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companie5 Act 2006 and are for circulation to members of the companv. This report was approved by the Board of Trustees on 03 December 2024 and signed on its behalf by: Deborah Sidebottom Chair of the Board of Trustees kK,l-IwJ
Reference and administrative details Charity number: 1176826 Company number: 10500399 Registered Office: Darwen Road, Bromley Cross, Bolton. BL7 9AB Our advisers External Auditors Beever and Struthers Statutory Audwtor5 One Express, l George Leigh St, Manchester M4 5DL. Bankers Natwest Bank 24 Deansgate, Bolton, BLI IBN Solicltors Shakespeare Martineau Waterfront House, Waterfront Plaza, Nottingham NG2 3DQ Directors and Trustees The directors of the charitable company Ithe charity) are r(s Trustees for the purpose of charity law. The Trustees and officers serving during the year and since the year end were as follows.. Key management personnel Birtenshaw: Trustees, and Directors Trustees Ms D Sidebottom MrA Morse Mr J Pilkington Mr M Walmsley Mr R Armitage Mr T Long Ms D Thompson Mr R Ayra Mr C Ashton Ms S Mather Mr R Houghton Mr G Tomison Chair of the Board of Trustees Chair of Care Service5 Committee Resigned 22 January 2024 Chair of Education Committee Chair of Audit, Finance and Risk Committee Resigned 01 October 2024 Appointed 22 January 2024 Appointed 10 September 2024 Key management personnel (Senior executive team): Chief Executive.. David Reid Chief Operating Officer Assistant Chief Executive.. Service5 Assistant Chief Executive.. Resources
Independent Auditorfs Report to the members of Birtenshaw Merseyside Opinion We have audited the financial statements of Birtenshaw Merseyside "the charitable company" for the year ended 31 March 2024 which comprise the Statement of Financial Activities, Balance Sheet, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation Is applicable law and Unlted Kingdom Accounting Standards, including FRS 102 "The Flnanclal Reporting Standard applicable in the UK and Republlt of Ireland" (United Kingdom Generally Accepted Accountlng Practlcel. In our opinion. the financial statements: give a true and fair view of the state of the charitable companws affairs as at 31 March 2024 and of its incoming resources and application of resources for the 31 March 2024. have been properly prepared In accordance wlth Unlted Klngdom Generally Accepted Accounting Prattice,. and have been prepared in accordance with the requirements of the Companies Act 2006. 8asls for oplnlon We tonducted our audit in accordance wfch International Standards on auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs 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 appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaintie5 relating to event5 or conditions that, individually or collectively, may cast significant doubt on the charlty's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the infom)ation included in the annual report, other than the financial statements and our auditorfs report thereon. The trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the other information. Our opinion on the financial statements doe5 not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. In connection with 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 material incon51Stencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed. we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other rnatter5 prescribed by the Companies Act 2006 In our opinion, based on the work undertaken irb the course of the audit.. the information given In the trustees, report. which includes the dirertors. report and the strategic report prepared for the purposes of company law. for the financial year for which the financial statements are prepared is consistent with the financial statements- and the strategic report and the dirertors, report included within the trustees. report have been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exceptlon In the Ilght of the knowledge and understanding of the charitable company and its environment obtained in the COLFrse of the audit, we have not identified material misstatements in the Strategic report or the directors. report included within the tru5tees' report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion.. In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report,. or adequate accounting records have not been kept. or returns adequate for our audit have not been received from branche5 not visited by us: or the financial statements are not in agreement with the accountlng records and returns,. or certair* disclosure5 of trustees, remuneration Specified by law are not made; or we have not received all the information and explanations we require for our audit. the trustees were not entltled to prepare the financlal statements In accordance with the small companies, regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Responsibilltles of trustees As explained more fully in the Trustees, Responsibilities Statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial 5tatement5 and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine 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, the trustees are responsible for assessing the charitable compan$ ability to continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditorfs responsibilities for the audlt of the ftnanclal statements Our objectives are to obtairb reasonable assuran about whether the financial statements as a whole are free from material mi5Statement, whether due to fraud or error, arbd to issue an auditorfs report 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 IUKI will always detect 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. Irregularities, intluding fraud, are instances of rior)-compliance with laws and regulations. We design procedure5 in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting Irregularlties, includlng fraud Is detalled below- The extent to whlch the audlt was consldered capable of deterting Irregularltles Includlng fraud Our approach to identifying and assessing the risks of material misstatement In respect of Irregulorities, including fraud ond non-rompliance wlth laws and regulotions, wos asfollow5.' the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identified the laws and regulations applicable to the company through discussions with directors and other management, and from Our commercial knowledge and experience of the computer component manufacturing and supply sector. we focijsed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operatiorb5 of the company, including the Companies Act 2006. the Charities Att 2011, and taxation legislation. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence. identified laws and regulations were communicated within the audit team regularly and the team remained alert to instance5 of non-compliance throughout the audit. We ussessed the susceptibility of the coMp(Jn5finnCllll stotements to moterial misstGtement including obtainlng on understonding of howfraud might occur, by.. making enquiries of mana8emer7t as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To oddress the risk offraud through management bias and override of controls, we.- tested journal entries to identify unusual transèctions. assessed whetherjudgements and assumptions made in determining the accounting estimates set out in Note I were indicative of potential bias. investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described atN)ve. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compli3nce with laws and regulatlons to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, If any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibilities. Thi5 description forms part of our auditorfs report. 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 state to the charitable company's members those matters we are required to state to them in an auditor's 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 charitsble companls members as a body for our audit work, for this report, or for the opinion5 we have formed. Sue Hutchinson FCCA Isenior Statutory Auditor) For and on behalf of BEEVER AND STRUTHERS Statutory Auditor One Express, l George Leigh St. Ancoats, Manthester M4 SDL Date.. 17 D8cernb8r 2024 10
Birten5h?w Mersey5ide Statement of Financial Activitie5 for yeaT ended 31 March 2024 Unrestrlcted Funds Restricted Total Funds Funds 2024 Total Fund5 2023 Note Income from: Donations and grants Charitable activities Other trading activities Investment Income 29,744 5,003,111 54,838 183,225 29.744 5,003,111 54,838 183,225 7,076 4,958,118 81,494 20,828 Total income 5,270,918 5,270,918 5,067,516 Expenditure on: Expenditure octivities.- Charitable activities on choritoble 3,967,655 4,409 3,972,064 3,531,532 Total expenditure 3,967,655 3,972,064 3,531,532 Net Income and net movement in funds for the year 1,303,264 14,4091 1,298,855 1,535,984 Total Funds brought forward 4.959.388 8,820 4,968.208 3,432,224 Total funds carried ft>nvard 6,262,652 4.411 6,267.063 4.968.208 The statement of financial activities includes all gains andlosses recognised in the year. All income and expenditure derive from continuing activities. See Note 24 for Comparative Statement of Financial Activities for year ended 31 March 2023
Birtenshaw Merseyside Balance Sheet as at 31 March 2024 Note 2024 2023 Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand 15 158,249 211,244 16 483,436 6,284,838 151,382 5,333.817 6.768,274 5,485,199 Creditors: amounts falling due wfthin one year 17 1659,4601 1728,2351 Net current assets 6,108,814 4,756,964 Total assets le55 current liabllities 6,267,063 4,968,208 Nel Assets 6,267,063 4,968,208 Inc¢mefunds Restricted funds 19 4,411 8,820 Unrestricted funds 6.262.652 4,959,388 Total funds 6,267.063 4,968,208 The Trustees have prepared accounts in accordance with settion 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company. The notes at pages 15 to 26 form part of these accoLtnts. These financial statements were approved and authorised for issue by the Trustees on 03 December 2024 and slgned on their behalf by: Ms D Sidebottom Chair of the Board of Trustees Arya Trustee Trustee Approved by the Trustees on 03 December 2024 12
Birten5haw Merseyside ststement of Cash Flows for year ended 31 March 2024 2024 2023 Net cash generated from Operatlng Activities 788,932 1,684,225 Cash flow from investing activities Purchase of tangible fixed assets Interest received 121,1361 183,225 1113,0211 20,828 162,089 (92,1931 Cash flow from finan¢ing artivities Bank loan interest Repayment of bank loans (1,3301 132,2361 133,566) Net change in cash and cash equlvalents Cash and cash equivalent5 at beginning of year Cash and cash equivalents at end of year 951.021 5,333,817 6,284A38 1,558,466 3,775,351 5,333,817 Reconciliation of Operatlng Surplus to Net Cash Inflow from Operating Activities 2024 2023 Cash generated from operaling artivities Surplus for the financial year 1,298,855 1,535,984 Adjustment for non cash items Deprecation of tangible flxed assets Disposal of Fixed assets Decreasellincre35el ill trade and other debtors Decrease in trade and other creditors 74,132 86,415 1332,0531 168.7771 85,997 14,6721 Adjustment for investlnE or flnancial actlvlties Interest paid Interest received 1,330 120,8291 1183,2251 Net cash generated from operatinE actlvltles 788,932 1,684,225 13
Analysis of changes in net debt Other changes 2024 As at 01 April 2023 Cash Flows At 31 March 2024 Cash 5.333,817 5,333,817 951,021 951,021 6,284,838 6,284.838 14
Notes forming part of the financial staternents for the year ended 31 March 2024 Ni)tss on the accounts l. Attounting Policles The principal accounting policies adopted, judgements and key sour5 of estimation uncertainty in the preparation of the financial statements are as *ollows'. a) Basis of preparation The financial statements have been prepared In accordance with Accounting Ènd Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191 (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 and the Companies Act 2006. Birtenshaw Merseyside meets the definition of a public benefit entity under FRS 102. Assets and liabilities are inltially recognised at historical cost or transaction value unless otherwise stated In the relevant accounting policy notelsl. b) Preparation of the accounts on a Eoing concern basis The Trustees consider the financial position of the Charity on 8 regular basi5 a5 part of Board meetirbg discussions. In assessing the appropriateness of adopting the going concern basis forthe preparation of these financial statements they considered the Charity'5 three year plan to March 2026, the progress against the plan to date, the expected and secured amount of pupil numbers and the current bank facilities. The Trustees have concluded that the forecasts that have been prepared are appropriate and that the level of secured and expected pupil numbers is of a level that sufficient income will be generated to fund its activities and tonsequently the Charity can meet its financial obligations as they fall due and hence have concluded that it Is appropriate to conslder the organisation a going concern. cl Incorne Incomin8 resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particuSar categories of income. Income receivable is reviewed on an entitlement, certalnty and measurement basis. Income not meeting this criterion is treated as deferred income. Voluntary income is received by way of grant5, donations and gifts and is included in full in the Statement of Financial Attivities when receivable. Income for service charges receivable for children's education are recorded in the Statement of Financial Activities in the year in which they are received,. amounts received that relate to academic terms subsequent to the accounting period are deferred. Investment income is included when receivable. Donated servlces and facilltles are included at the value to the charity where this can be quantifled. The value of services provided by volunteers has not been Included in these financial statements. 15
Notes forming part of the financial statements for the year ended 31 March 2024 Accounting Policies leontinued) d) Resources expended All expenditure is accounted for on an on-going basis and ha5 been cSassified under headings that aggregate all costs relating to the category. Where costs cannot be directly attributed to particular activities. they have been allocated on a basis consistent with the use of the resources. The irrecoverable element of VAT is included with the item of expenses to which it relates. Costs of generated funds include costs associated with generating incoming resource5 from all sources other than from undertaking charitable activities. Sp¥Jort and central cost5 represent those costs incurred by the charity to meet its charitable objectives, which cannot be directly attributed to a particular charitable attivity. Resources expended on charitable activities include all the resources applied by the charity in its undertaking to meet its charitable objectives for the school and the homes. Governance costs include those costs incurred in the governance of the charivs assets and are associated with constitutional and statutory requirements. el Reserves Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the charity,. unrestricted funds comprise the accumulated surpluses and deficits of unrestrirted income and expenditure. Where the Trustees set aside unrestricted funds for speclf1c purpose5 these are termed designated funds. Restricted funds are those where the donor has Imposed restrictions on the use of the funds which are binding. Income arising on restrlcted funds and expenditure in respert of these funds are reflerted through the Statement of Flnancial Activitie5. fl Tangible fixed assets and depreciation All assets costing more than £IOOO ore capitalised at cost. Tangible fixed assets other than freehold land are ststed at cost less depreciation. Depreciation is provided at rates calculated to write off the c05t le55 estimated re51dual value of each asset over its expetted useful life, as follows.. Fixtures, fittings and equipment Motor vehicles 10%- 33% per annum on a straight line basis 20%- 33% per annum on a straight line basis gl Leasing and htre purchase commitments Rentals applicable to operating leases are charged to the Statement of Financial Activities over the period in which the cost is incurred. Assets purchased under finance leases are capltalised as fixed assets. Obligations under such agreements are included in creditors. The difference between the capitalised cost and the total obligation under the lease represents the finance charges. Finance charges are written off to the Statement of Financial Activitie5 over the period of the lease so as to produce a constant periodic rate of charge. 18
Notes formlng part of the financial staternents for the year ended 31 March 2024 l. Accounting Policies lcontinuedl h) Llquid resources For the purposes of the cash flow statement, liquid resources are defined as current asset investments and short term deposits. i} Allocation of support costs Support costs are those functlons that asslst the work of the tharlty but do not directly undertake charitable activitie5. Support costs intlude back offlce Costs, finance, human resources, payroll and governance costs which support Birtenshaw's activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support cost5 have been allocated are set out in note 8. 5) Operating leases The charity classifies the lease of, printers, IT and sensory equipment as operating leases- the title to the equipment remains with the lessor and the equipment is replaced every 5 years whilst the economic Ilfe of such equipment Is normally 10 years. Rental charges are charged on a stralght line basis over the term of the lease. kl Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. l) Cash * bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the dep051t or similar account. m) Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provision5 are normally recognised at their settlement amount after allowing for any trade discounts due. n) Financlal Instruments The organisation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amort15ed cost using the effective iAterest method. o} Judgement5 The preparation o* the financial statements require management to make judgements, estimates and assumptioris that affert the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the opinion of the Trustees, there are no key judgements, estimates or assumptions to be disclosed. 17
Notes forming part of the financial statements for the year ended 31 March 2024 2. Legal st*us of the TNst The Trust is a company limited by guarantee and has no share capital. In the event of the charlty belng wound up, the charlty may Indemnify a Trustee or formerTrustee against any Ilability Incurred by him in that capacity to the extent permitted by sections 232 to 234 of the Companies Act 2006. 3. Income from donations and Erants 2024 Total funds 2023 Total Funds Unrestricted Restricted Funds funds Grants receivable for core activities 29,744 29,744 29,744 29,744 7,076 7,076 4. Income from charltable artlvltles Unrestrirted Unrestrlcted funds funds 2024 2023 Education Total income from charitable artivities 5,003,111 5,003,111 4,958,118 4.958,118 5. Income earned from other trading artbvitles Unrestrlcted Unrestricted funds fund5 2024 2023 Miftor trading operations 54,838 81,494 6. Investment Income Unrestrlcted Unrestrlcted funds funds 2024 2023 Interest receivable on bank deposits 183,225 20.828 18
Notes forming part of the financlal statements for the year ended 31 March 2024 7. Analysis of expenditure on charitsble actlvlties Other Depreciation Cost5 Total 2024 Total 2023 Staff Costs Cost of generating funds Costs generating donations and legacies Charitsble acttvlties Educotion Activities directly Inote 71 Total 2,805,481 74,131 1.092.452 3,972.064 3,531,532 undertake 2, 805A81 74,131 1,092,45Z 3,972,064 3,531.532 8. Summary analysls of expendlture for charltable actlvltles This table shows the tost of the main charitsble activity Total 2024 Total 2023 Edu&ition Costs Children's Services Catering costs Staff-related costs Business running costs Motor and travel Loan interest Training expenses 54,686 56,080 8,901 850,454 114.723 54,686 56,080 8,901 850,454 114.723 31.145 42.731 7,518 722.705 125,312 1.330 17,853 11,894 11,894 1,096,738 1,096,738 948,594 9. Analysls of governance and support costs The charity initially identifies the costs of its support functions. It then identifies those cost5 which relate to the governance fLtnction. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned in line with income between the key charitable activities undertaken Isee note 71 in the year. Refer to the table below for the analysis of support and governance costs. Total 2024 Totsl 2023 Education Legal and other professional fees Audit fees Bank charges Total 8,140 9.480 179 8.140 9.480 179 2.280 7.680 120 17.799 17.799 10,080 19
Notes forming part of the financial statements forthe year ended 31 March 2024 10. Net Income for the year 2024 2023 This Is stated after charging: Operating lease5- Equipment Motor vehicles Properties 522 43.515 405.804 IA99 80,434 405,804 Depreciation Audit fees 74,131 6,490 86.415 6,100 11. Analysis of staff costs, trustee remuneralion and expenses, and the cost of key management personnel 2024 2023 Salaries and wages Social security costs Pension costs 2.559,875 136,635 108,971 2,273,343 121,201 101,979 2,805,481 2,496.523 Salary costs are met by Birtenshaw and recharged direttly. The wages costs above include costs for contract workers of £254k.12023.. £262kl The number of employees whose annual remuneration was £60,OC¥J or more excluding employer national insurance and pension were: 2024 Number 2023 Number £60,001 £70,000 £70,001 £80,000 £130,001- £140,000 £150,001- £160,000 £190,001- £200,000 £270,001- £280,000 The charity Trustees were not paid or received any other benefits from employment wlth the Trust or Its subsldiary in the year12023.. £nill. They were reimbursed travel expenses during the year of £Nil12023: £901. Related party transactions involvlng Trustees are detailed at note 13. The key management personnel of the parent charityi comprise the Trustee5 and the Senior Executive Team. The total employee benefit5 (including pension and employers national insurancel of the key management personnel of the Trust were £780,00012023.. £637,081). The emolument5 of the highest paid director, the Chief Executive excluding pension contributions were £304,18712023'. £217,942). This is a role across the Group. 20
Notes forming part of the financial statements for the year ended 31 March 2024 The Chief Executive 15 a member of the Greater Manchester Pension Fund and no enhanced or special terms apply. Employer contributions for the Chief Executive were £68,17412023.. £48,870) 12. Staff Numbers The average number of employees during the year was as follows= 2024 Number 2023 Number Education 74 74 74 74 The average number of full-time equivalent employees during the yearwas.. 2024 Number 2023 Number Education 61 61 61 61 13. Related party tr¥nsactions The company's immediate parent is Birtenshaw, a company incorporated in England and Wales. Company number 2978546, Charity Number 1092798. The principle activity is to provide a range of services for children and adults, with moderate to severe learning disability including Autism Spectrum Conditions and/or significant physical disability. including complex health needs. Consolidated accounts can be obtained from Companies House. Salary costs are met by Birtenshaw and recharged directly. Other associated costs are met by Birtenshaw and recharged directlv. 2024 2023 Staff Costs Other associated costs 2,539,982 3,849 2,543,831 2,245,982 7,902 2,253,884 The charity enjoys a close working relationship with Tezlom Iformally 2471 Professional Health). A Trustee of the Board is a Director and 30% shareholder of Tezlom. The company provides the charity with agency staff to support our activities. 2024 2023 Te21om 5,184 5,184 14,750 14.750 All the above expenditure was Included under staffing costs, and has been included in the financial statements under expendlture on charitable activwtie5. At the 31 March 2024 there was a trade creditor of nil12023: £nill. All the above expenditure has been included in the financial statements under experiditure on charitable activities. 21
Notes formlng part of the financial statements for the year ended 31 March 2024 At the 31 March 2024 there was a creditor balance with Birtenshaw of £61312023.. £1,354) 14. Corporation Taxation The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or settion 252 of the Taxation of Chargeable GainsAct 1992 to the extentthat these are applied to its charitable objects. 15. Tangible fixed assets Flxtures, FFttings And Equipment Motor Vehicles Totsl Cost: As at l April 2023 Addition5 381,859 13,986 144,088 7,150 525,947 21,136 As at 31 March 2024 395,845 151.238 547,083 Depreciation.. A5 at l April 2023 Charge for the year As at 31 March 2024 1247,7111 146,6821 1294,3931 166,9921 127,4491 194,4411 1314,7031 174,1311 1388,834) Net book value As at 31 March 2024 101,452 56,797 158,249 A5 at 31 March 2023 134,148 77,096 211,244 16. Debtors 2024 2023 Trade debtors Other debtors Prepayments and accrued income 339.259 185 143,992 32,669 375 118,338 483,436 151,382 22
Notes forming part of the financial statements for the year ended 31 March 2024 17. Creditors." amounts falling due within one year 2024 2023 Trade creditors Other creditors Accruals and deferred income 19,953 7,533 631,974 659A60 40,649 5,069 682,517 728,235 18. Deferred income Deferred income comprises education income received in advance. 2024 2023 Balance as at l Apri12023 Amount released to income earned from charitable artivities Amount deferred in year Balance as at 31 March 2024 56,159 156,1591 56,159 56,159 56,159 56,159 19. Funds Restritted funds The income funds of the charity include restrirted funds omprising the following balances of donations and grants held on trust for specrfic purposes. Movements in funds Incoming Resources Balance at resources expended Transfers 31 March 2024 Balance at l April 2023 Sunshine Variety 8.820 14,4091 4,411 Balance at l April 2022 Incomlng resources Resources Balance at expended Transfers 31 March 2023 Sunshine Variety 13,229 14,4091 8,820 13,229 4,409 8.820 Sunshine Variety provided a grant for the purchase of a vehicle. The grant wa5 restricted to the purchase of a vehicle which is being depreciated over five years. 23
Notes formlng part of the financial statements for the year ended 31 March 2024 Unrestricted Funds Movements in funds Incomlng Resource5 BaEan¢e at resources expended Transfer$ 31 March 2024 Balance at l April 2023 General fund 4,959,388 5.270,918 13.967,6551 6,262,652 4 959 388 5,270,918 3,967,655 6 262 652 Movements in funds Incomlng Resources Balance at resources expended Transfers 31 March 2023 Balance at l April 2022 General fund 3,418,995 5,067.516 {3,527.1231 4,959.388 3 418 995 5,067,516 3,527,123 4,959,388 20. Analysls of assets and Ilabllltles between funds Unrestrirted Restrlcted 2024 2024 Totsl 2024 Tangible Fixed Assets Debtors Cash Current Liabilities 153,838 483,436 6,284,838 1659,4601 4,411 158,249 483,436 6,284,838 1659,4601 Total Net Assets 6,262,652 4,411 6,267,063 2023 Comparative Unrestricted 2023 Restrlcted Total 2023 2023 Tangible Fixed Assets Debtors Cash Current Liabilitie5 202,424 151,382 5,333,817 1728,2351 8,820 211,244 151,382 5.333,817 1728,2351 Total Net Assets 4.959.388 8.820 4.968,208 24
Notes formlng part of the flnandal statements for the year ended 31 March 2024 21. Commitments under operating leases At 31 March 2024 the company had annual payment commitments under noTt-cancellable operating leases as follows: 20Z4 2023 Land & Buildi Land & Buildings other Other Expiry date.. Within one year Between one and two years Between two and five yea 460,461 43,515 1,841,844 310,109 5.681,844 460,461 1,841,844 6.142,305 80.434 37,635 7,984,149 353,624 8,444,610 118,069 22. P05t-balance sheet Èvents None 23. Statement of Financial Activitie5 for year ended 31 March 2023 Unrestrirted Funds Restrlcted Total Funds Fund5 2023 Total Funds 2022 Note Income from: Donations and grants Charitable activities Other trading activities 7,076 4,978,946 81,494 7,076 4.978,946 81,494 14,130 4,860,638 51,166 Total income 5,067,516 5,067,516 4,925.934 Expendfture on: Expenditure octivities.. Charitable attivities on charitrjble 3.527.123 4,409 3,531,532 3,247,475 Total expenditure 3,527,123 3,531,532 3,247,475 25
Notes forming part of the finanaal statements for the year ended 31 March 2024 Net Income and net movement in fund5 for the year 1,540,393 14,4091 1,535,984 1,678,459 Total Funds brought forward 3,418,995 13,229 3,432,224 1,753,765 Total funds carried forward 4,959,388 8,820 4,968,208 3,432,224 26