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2023-03-30-accounts

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Registered number: 12263702 Charity number: 1188118

East Kent Mencap

(A company limited by guarantee)

Trustees' Report and Financial Statements

For the Year Ended 30 March 2023

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East Kent Mencap

(A company limited by guarantee)

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Chairman's statement 2
Trustees' report 3 - 12
Independent auditors' report on the financial statements 13 - 15
Statement of financial activities 16
Balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19 - 36

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EAST KENT MENCAP (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 MARCH 2023

Trustees Amy Rutland, Chair
Angela Stuart
Audrey Emmett (resigned 11 July 2023)
Bridget Crow
Keith Smith (resigned 24 June 2022)
Michael Roberts (appointed 24 September 2022)
Mark Everett (appointed 9 October 2022)
Company registered number 12263702
Charity registered number 1188118
Head office Foresters Hall
Meeting Street
Ramsgate
Kent.CT11 9RT
Registered Address CQC Foresters Hall
Meeting Street
Ramsgate
Kent. CT11 9RTp
Key management personnel Jason Gerlack - Chief Executive Officer
Karen Roberts - Strategic Operations Manager/Registered Manager
Susan Beaumont – Strategic Operations Manager (resigned 16 November 2022)
Independent auditors UHY Kent LLP t/a UHY Hacker Young
Thames House
Roman Square
Sittingbourne
Kent. ME10 4BJ
Solicitors Girlings Solicitors
Stourside Place
Station Road
Ashford
Kent. TN23 1PP
Bankers Lloyds Bank Plc
The Centre
Cecil Square
Margate
Kent. CT9 1JG
Health & Safety/ Peninsula Business Services Ltd
Employment consultants Riverside
New Bailey Street
Manchester
M3 5PB

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EAST KENT MENCAP (A company limited by guarantee)

CHAIR OF TRUSTEES’ STATEMENT FOR THE YEAR ENDED 30 MARCH 2023

The 2022/23 year was a further year of consolidation at East Kent Mencap. Covid-19 continued to present difficulties to the Health and Social Care Sector.

The impact of the cost-of-living crisis and National skills shortage on the Sector is well documented and East Kent Mencap has worked hard to maximise retention and recruitment.

As a board, we said goodbye to one additional Director and inducted the two new directors to the board.

As an organisation we have continued to maintain our position in during challenging times and ensured our membership is empowered and listened to.

We have worked hard to negotiate our way through the many external economic pressures and will continue to steer the organisation in the interests of our membership.

We wish to thank the Senior Management Team of East Kent Mencap, led by Chief Executive Officer, Jason Gerlack for the leadership and commitment shown.

East Kent Mencap is also extremely grateful to our directors and trustees who have all given up their valuable time to guide the charity through this sustained and unprecedented crisis.

Our sincere thanks to all the amazing employees, services, volunteers and fantastic supporters.

………………………………………….

A Rutland – Chair of Trustees

Date: 20 December 2023

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

The Trustees present their annual report together with the audited financial statements of the Charity for the year ended 30 March 2023. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

This report is prepared in accordance with the small company regime (Section 419(2) of the Companies Act 2006).

Members Committee

The board has 14 members who represent members /tenants from all services and geographical locations supported by East Kent Mencap.

The Members Committee have:

We look forward to working towards another great year ahead and supporting more of our friends and peers to proud, confident and heard. We also look forward to representing East Kent Mencap by working in co-production with other services and our local communities.

We would like to thank all of the staff for the support they give, to the Senior Management Team and Directors of East Kent Mencap.

OBJECTIVES AND ACTIVITIES

Objectives and aims

Everything we do is about valuing and supporting adults and children with a learning disability, as well as their families and carers.

What East Kent Mencap wants (our vision)

Our vision is a world where people with a learning disability are valued equally, listened to and included. We want everyone to have the opportunity to achieve the things they want out of life.

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

How East Kent Mencap will achieve this (our mission)

We will:

East Kent Mencap believes in (our values)

Significant activities

The main activities provided by the Charitable society for children, young people and adults with a learning disability and their families are as follows:

  1. Supported Housing

  2. Day resource activities (Hubs)

  3. Social meetings through our clubs and dances (A return post-Covid, with a robust plan for 2024 expanded programme)

  4. Working with partners to provide services to our members

  5. Advocacy and Person-Centred Planning

  6. Community Support Services for people with multiple disabilities

  7. Domiciliary Support

  8. Children’s Services

  9. Complex needs

  10. Older person’s services

Volunteers

The number of volunteers not including Trustees was 15.

Whilst our activities and clubs were still greatly reduced, we are grateful to our volunteers who stepped into help as they started to re-open. Volunteers to our Members Committee increased, helping to magnify the voices of everyone who uses our services and ensure their views and opinions are central to the charity.

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

In accordance with Section 17 of the Charities Act 2011, the Trustees have due regard to the guidance published by the Charity Commission on the operation of the requirement that our charitable purpose is for the public benefit, when reviewing the charities aims and objectives and in planning future activities.

The Charitable Company's objects are restricted specifically, in each case only for the public benefit to:

East Kent Mencap has continued to invest in staff through training and development packages. This has ensuredservice quality and compliance with the Health and Social Care Act.

In response to the serious national threats posed by the “Big Resignation” East Kent Mencap has continued to invest in employee salaries, resulting in improved staff retention, creating a more stabilised workforce. However, recruitment of new workers follows national trends, and shortages persist.

Further to our stated commitment in the previous year, we have continued to review our range of services and how we fund delivery. Reacting to short deadlines we tendered for and were successful in the award of an additional contract to support children and families.

We have been enhancing our Governance model by expanding our Members Committee, which has resulted in increased coproduction and better shaping of service delivery. This committee includes representatives from each of the services we operate. Our successes have been recognised externally, including our partnerships with the NHS and Local Authority. Additionally, the Members Committee is currently working in partnership with a consortium of six UK universities.

We are proud to celebrate our 75[th] Anniversary as a successful and vibrant charity that provides vital support to local communities.

In recognition of our work, we won the following Kent Integrated Care Alliance (KICA) Awards:

And were finalists for:

The local authority funded East Kent Mencap’s Valuing People Now (VPN) for a further 6 months in recognition of their critical work on co-producing easy read information.

East Kent Mencap was a regional finalist for the 'Great British Care Awards'.

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

We tendered in the Local Authority procurement process to select providers to sit on the new Day Service contracts. We were successful in our approach ensuring up to four years of stability and growth.

We have secured numerous grants which have enabled the charity to sustain and create new opportunities for children and adults.

We have undertaken support for people with a Learning Disability in the Ashford District as requested by the retiring Charity. This has resulted in East Kent Mencap increasing support in that area. Directors have since set growth targets for the district.

Building on our investments to improve virtual support and cloud-based working, we have been awarded grants to increase digital inclusion.

We reviewed our assets and planned to dispose of one property as outlined in our strategic plan.

We complied with our statutory and regulatory requirements and responsibilities by;

Fundraising activities

As the financial crisis fully embedded, it became apparent that external funding had become an essential requirement of all charities and groups. As such, fundraising became challenging across the sector as may groups applied for dwindling resources.

Despite the pressures, we were successful in generating significant funds:

We are thankful of the support we have received during the financial year.

Fundraising Regulation and Compliance

During the year to 30 March 2023 fundraising was conducted by the East Kent Mencap team of employed fundraisers. No complaints were received with regards to fundraising throughout the course of the year, no professionalfundraisers were contracted, and no commercial partnership agreements were entered in to. Income from fundraising supports our non-statutory activities and projects.

The charity takes a blended approach. A part-time Fundraising Manager researches and submits applications to trusts and foundations, runs individual giving campaigns and creates local events. Funding needs are identified in discussion with managers and the Members Committee.

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

The organisation monitors and manages its fundraising regulation and compliance through a combination of training programmes, internal processes, internal audits and quarterly management reporting. This takes into consideration the collection and use of personal data, frequency of contact, how to identify and support vulnerable people and compliance and regulatory requirements.

East Kent Mencap is registered with the Fundraising Regulator. Jane Brooke, East Kent Mencap’s Fundraising Manager is a Member of the Chartered Institute of Fundraising.

FINANCIAL REVIEW

Results for the year

Income and expenditure reported for the year ended 30 March 2023:

Total income for the year amounted to £3,017,203, comprising £2,951,874 generated from charitable activities. A comparison to the previous year the income was £3,045,763 of which £2,933,111 was made up of charitable activities which does represent growth.

Two of the Charity’s properties were sold in June 2022, generating a profit on disposal of £218,567 which has been disclosed separately within the Statement of Financial Activities.

Total expenditure for the year amounted to £3,257,229, leading to a net movement of funds and a deficit of £21,459. Compared with the Year ended 30 March 2022, after total expenditure of £3,050,276, there was a reported net movement in funds and a deficit of £4,513.

East Kent Mencap remains grateful for the continued support and significant grant funding from the National Lottery Community Fund for the project Getting On with Learning Disability (GOLD).

Significant financial events

The pandemic and subsequent economic shock continued to have a significant impact on East Kent Mencap's finances, we lost the majority of our self-financing income and our plans to expand our Day Services to new locations were hampered. However, we continue to see a growth in demand for our Day Services particularly in the Herne Bay and Thanet Areas.

Trustees undertook a functional assessment of all assets, evaluation of strategy, reviewed the reserves policy and updated the business risk register. A consultation with people using our services across the charity was carried out which will inform future strategy. Following an invitation from Ashford Mencap to take over their work, workshops and events were hosted to assess local needs and agree a Business Action Plan going forward. Continuation funding of a further three years was secured for our flagship project, GOLD.

Work was completed to restore the roof and toilets of our listed building Foresters Hall in Ramsgate, funded by the Colyer Fergusson Charitable Trust. Links with other community organisations resumed as COVID restrictions were reduced. East Kent Mencap has responded to the cost-of-living crisis, the effect it has had on our employees, recruitment difficulties and rising energy prices by increasing wages.

Having identified recruitment and retention difficulties in 2021, it became apparent that the National Employment Crisis was far worse than expected and this was clear during the 2022-23 operating period. However, some employees who resigned to take up better paid roles externally, returned to EKM due to their alignment to our Mission and Vision.

The UK Government has recently published a much larger National Minimum Wage increase than previously expected. Directors will convene in January 2024 to review organisational structure and set pay points.

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

Reserves policy

The purpose of the East Kent Mencap reserves policy is to secure the future of our services, to fund projects andfuture building costs and property purchases for the benefit of our members. However, as a result of the cost-of-living crisis and other external forces, property purchases have been placed on hold.

The Trustees reviewed the Reserves policy and agreed that East Kent Mencap should hold reserves equal to one to two months of employee payroll.

As of 30 March 2023, the amount of total funds held by East Kent Mencap was £2,821,677, of which the unrestricted reserve total was £2,478,788.

Included in the total funds for the Year ended 30 March 2023, are Tangible fixed assets of £2,996,748 of which Freehold property is stated with a net book value of £2,919,985.

The Trustees consider that the market value of the freehold property to be considerably higher than the amount shown on the Balance Sheet.

The intention to value the properties using professional valuations was undertaken, however, we await reports from our Solicitors.

Within the Tangible fixed assets figure are restricted funds of £184,480.

In considering the charity reserves, the Trustees had carried out an extensive exercise identifying the functional assets of the charity and plans were drawn up for utilising any property reserves if the need should arise, based on their analysis.

Ahead of setting the Reserves Policy, Directors reviewed and or completed the following documents:

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Investment policy

Investment within the financial markets are not undertaken by the Charitable Company. All cash surpluses are placed in bank accounts to attain as high an interest rate return as possible.

It is East Kent Mencap’s strategy to utilise cash surpluses to benefit the Members through capital investment programmes, to acquire Housing and Day Provision from which to launch commissioned services and generate new sources of income.

However, due to the Pandemic and pressures on the Charity’s finances, further purchases of property for supported living continue to be placed on hold. The expansion of the Day Services is a priority as well as investigating new income streams in order to reduce the Charity’s reliance on local authority contracts.

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

As planned properties in the Swale area were sold by auction in June 2022. It is hoped in the future that these monies may be used to acquire a suitable property for the benefit of our Members.

The Strategic plan, Financial Business & Investment Plan and Business Risk register were all extensively reviewed during 2022 and signed off by the Directors in September 2022.

More recently we have had to respond again to the cost-of-living crisis, the effect it has had on our employees, recruitment difficulties and rising energy prices which have all proven to be financially challenging.

In recent years East Kent Mencap had made further significant investments to modernise the Charity, we incorporated the Charity, then merged the Charitable Trust, East Kent Mencap (Charity Number 220798) to East Kent Mencap Charitable Company in June 2020.

We have made significant progress to finalise the procedural aspect of a valuation of the lender-secured properties and expect this process to be completed in 2024.

Following the merger, the Charitable Company is now registered with CQC.

Principal risks and uncertainties

In the face of a changing political landscape marked by the imminent likelihood of a government transition, our charity confronts a multifaceted operating environment which includes serious pressures on the public purse. Brexit continues to impact worker shortages and supply chains. At the same time, the war in Ukraine escalates costs and exerts significant influence on the production and pricing within the food and fuel sectors impacting both employees and the Charity. Simultaneously, a recent government decision to diminish the hierarchical status of the Minister for Disability raises concerns about potential shifts in focus on our mission. Against this backdrop, we recognise the pivotal role of donor considerations and the far-reaching consequences of changes in sovereignty. Our commitment remains unwavering in response as we strategically align our plans with dynamic horizon scanning to ensure adaptability, financial resilience, and continued positive societal impact.

Future Plans

We will:

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

East Kent Mencap is a Charitable Company registered with the Charity Commission and a Company Limited by Guarantee. The Charitable Company was entered on the Register of Charities on 15 February 2020 and uses East Kent Mencap as its working name.

The Company was set up under a Memorandum of Association which established the objects and powers of theCharitable Company and is governed under its Articles of Association. In the event of the Company being woundup members are required to contribute an amount not exceeding £1.

Methods of appointment or election of Trustees / Directors

Those who wish to be considered for a post of Trustee within the Charitable Company need to register an interest. Any person who is willing to act as a Trustee and who is permitted by law to do so, may be appointed by ordinary resolution of the Trustees so that voting can take place at that meeting. A Trustee shall also become a Member on their appointment.

Organisational structure

The Charity is run by a board ofTrustees who meets at least four times a year.

The number of Trustees is not subject to a maximum but shall not be less than three.

Subject to Article 8 of the Articles of Association, Membership of the Charity shall be open to all people aged 18 years or over (whether with or without a learning disability) who declare their support for and are found in sympathy with the objects.

East Kent Mencap has published its current Governance Structure:

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

The day to day running of the Charity is further delegated to the Chief Executive Officer (CEO) Jason Gerlack.

Members hold regular meetings, and report and make requests to the appropriate teams. .Regular employee meetings are held to ensure that quality assurance is maintained. The CEO reports to the Trustees which ensures due diligence is followed in all areas.

Regular Health & Safety meetings seek to ensure continuous safety and welfare improvement. Thisprocess is audited externally by designated consultants.

Financial protocols are rigorously adhered to.

Pay Policy for Senior Staff

No new Management positions have been appointed within the reporting period.

The process for determining compensation for key management personnel at East Kent Mencap involves a structured competency framework. This framework evaluates skills, knowledge, and behaviour against specific requirements, with rewards being allocated based on achieved outcomes. To ensure fairness and competitiveness, our pay structure is externally benchmarked at local and national levels. This rigorous approach to compensation aligns with our commitment to transparency, equity, and excellence in talent management.

A review of our current structures will be undertaken in 2024.

Policies adopted for the induction and training of Trustees / Directors

Trustees / Directors are made aware of their responsibilities by dialogue with existing Trustees, a copy of the Charity Commission booklet on trustee responsibilities.

Due to the nature of our work, an Enhanced DBS check is required (updated every three years) and two references obtained.

East Kent Mencap is dedicated to equipping its Trustees with a comprehensive understanding of their roles and responsibilities. Our approach involves utilising the locally sourced DELTA e-learning package, covering essential training areas such as safeguarding, governance, effective communications, and policy training (including Prevent and British values) tailored to individuals supporting those with learning disabilities. Additionally, our Trustees benefit from first-hand insights during induction from current Trustees. This collaborative learning environment ensures a well-rounded understanding of how charities operate, the importance of appropriate participation, and promotes informed and effective leadership within the organisation.

Wider network

East Kent Mencap is affiliated to National Mencap through a Membership Agreement 2007-2009 (England& Wales). Affiliation agreements have been retained under review with Mencap’s 20/20 plan.

There is little impact on East Kent Mencap policy as these are generally in line with Regulatory, Statutory or Legal responsibilities.

Risk management

Policy and procedure documentation is in place to cover organisational structure and decision-making processes. These policies are constantly updated and added to as soon as a need is recognised. Risk management is constantly reviewed by all staff involved, and written documentation in place.

East Kent Mencap has appointed Peninsula Business Services Ltd as consultants on Health & Safety matters.

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EAST KENT MENCAP (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 MARCH 2023

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales 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 Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011,the Charity (Accounts and Reports) Regulations 2008 and provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to the auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, UHY Hacker Young, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Amy Rutland Chair of Trustees

Date: 20 December 2023

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East Kent Mencap

(A company limited by guarantee)

Independent Auditors' Report to the Members of East Kent Mencap

Opinion

We have audited the financial statements of East Kent Mencap (the 'charity') for the year ended 30 March 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International 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 United Kingdom, including the Financial Reporting Council'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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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 information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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East Kent Mencap (A company limited by guarantee)

Independent Auditors' Report to the Members of East Kent Mencap (continued)

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic 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:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements 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 company's 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.

Auditors' responsibilities 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 misstatement, whether due to fraud or error, and to issue an Auditors' 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 (UK) 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, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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East Kent Mencap

(A company limited by guarantee)

Independent Auditors' Report to the Members of East Kent Mencap (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Allan Hickie FCA (Senior statutory auditor)

for and on behalf of

UHY Kent LLP

Chartered Accountants Statutory Auditors Thames House Roman Square Sittingbourne Kent ME10 4BJ

Date: 21 December 2023

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East Kent Mencap

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 30 March 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
7
Investments
8
Total income
Expenditure on:
Raising funds
9
Charitable activities:
10
Profit on sale of tangible fixed assets
. Other charitable activities
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward
19		 Restricted funds
2023
£
725
368,060
59
-
368,844
3,692
-
215,920
219,612
149,232
193,657
149,232
342,889		 Unrestricted
funds
2023
£
59,132
2,583,814
4,675
738
2,648,359
635
(218,567)
3,036,982
2,819,050
(170,691)
2,649,479
(170,691)
2,478,788		 Total
funds
2023
£
59,857
2,951,874
4,734
738
3,017,203
4,327
(218,567)
3,252,902
3,038,662
(21,459)
2,843,136
(21,459)
2,821,677		 Total
funds
2022
£
111,560
2,933,111
1,047
45
3,045,763
191
-
3,050,085
3,050,276
(4,513)
2,847,649
(4,513)
2,843,136

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 19 to 36 form part of these financial statements.

Page 16

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee) Registered number: 12263702

Balance Sheet As at 30 March 2023

Note
Fixed assets
Tangible assets
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one
year
18
Total net assets
Charity funds
Restricted funds:
Restricted funds
19
Unrestricted funds
19
Total funds		 464,532
451,894
916,426
(271,530)		 2023
£
2,996,748
644,896
3,641,644
(819,967)
2,821,677
342,889
2,478,788
2,821,677		 407,082
632,893
1,039,975
(291,828)		 2022
£
3,017,180
748,147
3,765,327
(922,191)
2,843,136
193,657
2,649,479
2,843,136

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Amy Rutland, Chair

Date: 20 December 2023

The notes on pages 19 to 36 form part of these financial statements.

Page 17

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Statement of Cash Flows For the Year Ended 30 March 2023

Note
Cash flows from operating activities
Net cash used in operating activities
22
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
23		 2023
£
(333,257)
738
319,565
(168,045)
152,258
(180,999)
632,893
451,894		 2022
£
(3,700)
45
-
-
45
(3,655)
636,548
632,893

The notes on pages 19 to 36 form part of these financial statements

Page 18

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

1. General information

East Kent Mencap is a private company limited by guarantee incorporated in England and Wales in the United Kingdom (registered number12263702) . The registered office East Kent Mencap, Foresters Hall, Meeting Street, Ramsgate, Kent, CT11 9RT.

The financial statement are presented in sterling which is the functional currency of the Charity and rounded to the nearest £1.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and 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 (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

East Kent Mencap meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The Trustees assess whether the use of going concern is appropriate i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. They make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

Their assessment takes into account a review of prudent forecasts which have been prepared by management for the period through to 31 December 2024 using all currrently known information.

The charitable company is in the process of selling a property, the sale of which is expected to generate an accounting profit and a boost to cash flow before the end of the 2023/24 financial year.

Talking the above into consideration, the Trustees have a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future, and accordingly the Charity continues to adopt the going concern basis in preparing the financial statements.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other trading activities comprise income generated from various fund raising and social events.

Page 19

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants are credited to the Statement of financial activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.

Page 20

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property - 2% on cost Motor vehicles - 25% reducing balance Fixtures and fittings - 25% reducing balance Other fixed assets -

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and 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 deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.12 Financial instruments

The Charity 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 amortised cost using the effective interest method.

2.13 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight-line basis over the lease term.

2.14 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 21

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Estimating the useful economic life of tangible fixed assets for the purposes of determining a depreciation rate.

Estimating the carrying value of assets for the purposes of ensuring that this does not exceed their recoverable amount.

Estimating the recoverability of debtors for the purposes of determining whether there is a need for a bad debt provision.

Critical areas of judgment:

There are no significant judgements in relation to the above accounting policies that have a material impact on the financial statements.

4. Income from donations and legacies

Donations
Legacies
Government grants
Analysis of 2022 total by fund		 Restricted
funds
2023
£
725
-
-
725
2,221		 Unrestricted
funds
2023
£
20,497
38,635
-
59,132
109,339		 Total
funds
2023
£
21,222
38,635
-
59,857
111,560		 Total
funds
2022
£
8,055
100,000
3,505
111,560

Included with government grants above are amounts received from HMRC amounting to £Nil (2022 - £1,787) for the coronavirus job retention scheme. There are no unfilled conditions or other contingencies attached to the grant at the balance sheet date and no other form of government assistance has been received during the period.

Page 22

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

5. Income from charitable activities

Income from charitable activities
Analysis of 2022 total by fund
KCC
Housing benefit
Direct payments from members
Grants (note 6)
Transport
Rent from residents
Rent from leased buildings
Local Authority Funding (non KCC)
Other		 Restricted
funds
2023
£
368,060
210,762		 Unrestricted
funds
2023
£
2,583,814
2,722,349		 Total
funds
2023
£
2,951,874
2,933,111
1,542,818
503,382
428,059
373,431
10,449
42,979
8,200
30,811
11,745
2,951,874		 Total
funds
2022
£
2,933,111
1,505,516
523,207
403,714
320,097
7,018
48,913
7,050
108,996
8,600
2,933,111

Page 23

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

6. Analysis of grants received

National Lottery Community Fund - GOLD
Colyer Fergusson
KCC - short break activity grant
East Kent Area VPN Grant
Kent Community Foundation
KCC COVID-19 Grant
Jubilee Grant
Education & Skills Grant
Architectural Heritage Grant
Breakfast Club
Fit Start
Complex Needs
Sheerness Town Council Community Grant
The National Lottery Coronavirus Community Support Fund
KCC - Infection Control Grant
KCC Workforce Capacity
Sport England Tacking Inequalities Grant
Community Confidence Project Grant
Young People's Autistic Spectrum Condition Innovation Grant
East Kent Treat Me Campaign
Access Impact Business Growth Fund
Letsgetdigital Grant
Dover District Council - Green Initiatives Project
Ramsgate Town Council Fund		 2023
£
266,571
130,000
43,285
40,599
24,713
19,736
8,850
7,500
4,056
3,819
3,164
2,260
500
-
-
-
-
-
-
-
-
-
-
-
555,053		 2022
£
98,915
-
29,600
40,599
6,300
14,445
-
3,000
14,984
-
-
-
500
4,618
39,643
23,693
3,399
1,255
17,426
1,300
4,050
10,032
2,838
3,500
320,097

7. Income from other trading activities

Income from fundraising events

Fundraising
Analysis of 2022 total by fund		 Restricted
funds
2023
£
59
282		 Unrestricted
funds
2023
£
4,675
765		 Total
funds
2023
£
4,734
1,047		 Total
funds
2022
£
1,047

Page 24

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

8. Investment income

Deposit account interest
Analysis of 2022 total by fund		 Unrestricted
funds
2023
£
738
45		 Total
funds
2023
£
738
45		 Total
funds
2022
£
45

9. Expenditure on raising funds

Fundraising trading expenses

Fundraising trading expense
Analysis of 2022 total by fund		 Restricted
funds
2023
£
3,692
-		 Unrestricted
funds
2023
£
635
191		 Total
funds
2023
£
4,327
191		 Total
funds
2022
£
191

10. Analysis of expenditure on charitable activities

Summary by fund type

Cost of charitable activities
Analysis of 2022 total by fund		 Restricted
funds
2023
£
215,920
157,941		 Unrestricted
funds
2023
£
2,818,415
2,892,144		 Total
2023
£
3,034,335
3,050,085		 Total
2022
£
3,050,085

Page 25

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

11. Analysis of expenditure by activities

Cost of charitable activities
Analysis of 2022 total
Analysis of direct costs		 Activities
undertaken
directly
2023
£
3,019,035
3,022,609		 Support costs
2023
£
15,300
27,476		 Total
funds
2023
£
3,034,335
3,050,085		 Total
funds
2022
£
3,050,085
Staff costs
Depreciation
Rates and water
Insurance
Light and heat
Telephone, postage and stationary
Advertising
Sundries
Computer costs
Tenant share of utilities
Vehicle and transport costs
Room hire
Repairs and renewals
Cleaning and house facilities
Activities
Training
Professional fees
Legal fees
Interest and similar charges
Bad debts
Profit on sale of tangible fixed assets		 Total
funds
2023
£
2,633,017
87,479
16,273
32,052
46,079
21,159
1,724
15,645
74,558
15,729
33,447
11,462
60,879
30,760
22,978
8,220
59,658
4,453
53,211
8,819
(218,567)
3,019,035		 Total
funds
2022
£
2,454,168
89,277
17,832
27,181
40,629
27,868
1,297
17,522
53,054
11,524
49,317
10,202
46,213
26,123
15,572
2,663
65,541
1,808
54,742
10,076
-
3,022,609

Page 26

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

11. Analysis of expenditure by activities (continued)

Analysis of support costs

Auditor's remuneration
Total 2022		 Governance
costs
2023
£
15,300
27,476		 Total
funds
2023
£
15,300
27,476		 Total
funds
2022
£
27,476

12. Auditors' remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual accounts 15,300 18,460
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above - 9,016

13. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
2,377,125
208,415
47,477
2,633,017		 2022
£
2,227,554
182,429
44,185
2,454,168

The average number of persons employed by the Charity during the year was as follows:

Productive Staff
Administrative Staff		 2023
No.
101
15
116		 2022
No.
95
26
121

Page 27

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

13. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band £80,001 - £90,000 1 1

Key management personnel of the Trust comprise of the Trustees and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the Trust was £195,146 (2022 - £210,467).

14. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year ended 30 March 2023, no Trustee expenses have been incurred (2022 - £NIL) .

15. Tangible fixed assets

Cost or valuation
At 31 March 2022
Additions
Disposals
At 30 March 2023
Depreciation
At 31 March 2022
Charge for the year
On disposals
At 30 March 2023
Net book value
At 30 March 2023
At 30 March 2022		 Freehold
property
£
3,672,023
-
(103,594)
3,568,429
702,356
71,715
(6,117)
767,954
2,800,475
2,969,667		 Motor vehicles
£
14,945
35,990
-
50,935
14,842
3,025
-
17,867
33,068
103		 Fixtures and
fittings
£
121,218
12,545
(7,431)
126,332
73,808
12,740
(3,911)
82,637
43,695
47,410		 Assets under
construction
£
-
119,510
-
119,510
-
-
-
-
119,510
-		 Total
£
3,808,186
168,045
(111,025)
3,865,206
791,006
87,480
(10,028)
868,458
2,996,748
3,017,180

Included within Assets under construction are costs incurred during the year in respect of the restoration of Foresters Hall. The works were not complete at the year end, and were therefore not in uses. Because of this there has been no depreciation charged.

Page 28

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

16. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
372,723
2,256
89,553
464,532		 2022
£
333,722
6,586
66,774
407,082

17. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals		 2023
£
112,047
32,056
38,989
10,971
77,467
271,530		 2022
£
137,489
22,156
39,834
11,193
81,156
291,828

Page 29

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

18. Creditors: Amounts falling due after more than one year

Bank loans
Included within the above are amounts falling due as follows:
Between one and two years
Bank loans
Between two and five years
Bank loans
Over five years
Bank loans		 2023
£
819,967
2023
£
76,106
477,848
266,013		 2022
£
922,191
2022
£
114,634
492,399
315,158

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments 2023
£
266,013
266,013		 2022
£
315,158
315,158

The bank loan is secured by a charge over the Charity's freehold property.

Page 30

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

19. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Restricted funds
Housing Property Fund
Thanet Community Fund
Sheppey Community Fund
Canterbury Fund
Big Lottery Fund - GOLD
KCC - Children & Youth
Valuing People Now
Complex Needs
Kent Community Foundation
Jubilee
Covid-19
Colyer Fergusson
Architectural Heritage
Total of funds		 Balance at 31
March 2022
£
2,649,479
39,470
19,780
18,281
17,684
84,366
6,529
6,615
932
-
-
-
-
-
193,657
2,843,136		 Income
£
2,648,359
-
3,918
500
3,819
86,833
43,560
40,599
2,260
24,713
8,850
19,736
130,000
4,056
368,844
3,017,203		 Expenditure
£
(2,819,050)
(4,048)
(3,325)
(489)
(8,809)
(109,085)
(43,401)
(18,068)
(1,302)
(19,504)
-
-
(9,306)
(2,275)
(219,612)
(3,038,662)		 Balance at 30
March 2023
£
2,478,788
35,422
20,373
18,292
12,694
62,114
6,688
29,146
1,890
5,209
8,850
19,736
120,694
1,781
342,889
2,821,677

Page 31

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

19. Statement of funds (continued)

Unrestricted Fund:

General Fund – represents income and expenditure that has not been deemed as restricted in nature and is not designated for any purpose.

Restricted Funds:

Housing Property Fund – Grants received to assist in the purchase of Backler House and Arkley Road. Amounts released annually to match depreciation charge in proportion to amounts funded by grant.

Thanet Community Fund – Funding specifically for projects within the Thanet community.

Sheppey Community Fund – Funding specifically for projects within the Sheppey community.

Canterbury Fund – Funding specifically for projects within the Canterbury community.

National Lottery Community Fund – GOLD – Funding specifically for Getting On with Learning Disability project.

Kent Valuing People Partnership – Funding specifically to provide local workers and facilitate local presence and community working.

Children & Youth – Funding specifically to provide support for individuals aged between 8 and 26.

Valuing People Now – Funding specifically to improve the lives of people with learning disabilities and their families which is part of the government’s three year big plan. It covers all aspects of life, including health, housing, getting a paid job, personalisation transition, advocacy, hate crime and relationships.

Complex Needs – A service specifically seeking to improve the lives of people with profound and multiple learning difficulties. This can include having severe learning difficulties and other significant difficulties such as physical disabilities, sensory impairment or a severe medical condition.

Kent Community Foundation - Funding specifically received to review the charity's current administrative systems and identify ways to streamline invoicing and timesheet systems.

Jubilee - Funding secured specifically to celebrate the Queens Jubilee. The project worked with local artists in four East Kent Mencap locations across East Kent to create a variety of projects with people with a learning disability to celebrate the Queen's Platinum Jubilee.

Colyer Fergusson Charitable Foundation - Funding initially pledged funding for the restoration of Foresters Hall, the work was completed in 2023, with a much needed new roof and toilets for the listed building.

Architectural Heritage - Funding secured for a development grant. The development grant built on the previous work and enabled the project to achieve planning permission for the whole development at Foresters Hall, including the listed building.

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East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds - all funds
Restricted funds
Housing Property Fund
Thanet Community Fund
Sheppey Community Fund
Canterbury Fund
Big Lottery Fund - GOLD
KCC - Children & Youth
Valuing People Now
Complex Needs
Total of funds		 Balance at
1 March 2021
£
2,707,851
40,865
10,471
8,799
14,196
60,802
6,529
(2,796)
932
139,798
2,847,649		 Income
£
2,833,963
14,986
15,695
11,866
12,946
114,408
-
41,899
-
211,800
3,045,763		 Expenditure
£
(2,892,335)
(16,381)
(6,386)
(2,384)
(9,458)
(90,844)
-
(32,488)
-
(157,941)
(3,050,276)		 Balance at
30 March 2022
£
2,649,479
39,470
19,780
18,281
17,684
84,366
6,529
6,615
932
193,657
2,843,136

20. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 Balance at 31
March 2022
£
2,649,479
193,657
2,843,136		 Income
£
2,648,359
368,844
3,017,203		 Expenditure
£
(2,819,050)
(219,612)
(3,038,662)		 Balance at 30
March 2023
£
2,478,788
342,889
2,821,677

Page 33

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

20. Summary of funds (continued)

Summary of funds - prior year

General funds
Restricted funds		 Balance at
1 March 2021
£
2,707,851
139,798
2,847,649		 Income
£
2,833,963
211,800
3,045,763		 Expenditure
£
(2,892,335)
(157,941)
(3,050,276)		 Balance at
30 March 2022
£
2,649,479
193,657
2,843,136

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2023
£
184,480
158,409
-
-
342,889		 Unrestricted
funds
2023
£
2,812,268
758,017
(271,530)
(819,967)
2,478,788		 Total
funds
2023
£
2,996,748
916,426
(271,530)
(819,967)
2,821,677

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted funds
2022
£
170,205
23,452
-
-
193,657		 Unrestricted
funds
2022
£
2,846,975
1,016,523
(291,828)
(922,191)
2,649,479		 Total
funds
2022
£
3,017,180
1,039,975
(291,828)
(922,191)
2,843,136

Page 34

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Profit)/loss on sale of tangible asset
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Decrease in creditors
Net cash used in operating activities
23.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
24.
Analysis of changes in net debt
Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 31 March
2022
£
632,893
(137,489)
(922,191)
(426,787)		 2023
£
(21,459)
87,479
(218,567)
(738)
(57,450)
(122,522)
(333,257)
2023
£
451,894
451,894
Cash flows
£
(180,999)
25,442
102,224
(53,333)		 2022
£
(4,513)
89,277
-
(45)
80,297
(168,716)
(3,700)
2022
£
632,893
632,893
At 30 March
2023
£
451,894
(112,047)
(819,967)
(480,120)

25. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £47,477 (2022 - £44,185).

As at the year end, £8,482 (2022 - £8,269) was payable to the fund at the balance sheet date and are included in creditors.

Page 35

����������������������������������������������������������

East Kent Mencap

(A company limited by guarantee)

Notes to the Financial Statements For the Year Ended 30 March 2023

26. Operating lease commitments

At 30 March 2023 the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2023
£
12,544
11,916
24,460		 2022
£
19,983
19,881
39,864

27. Related party transactions

During the year, relatives of some trustees utilised the housing facilities at East Kent Mencap as customers. These transactions were at commercial rate.

Page 36