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2022-03-31-accounts

REGISTERED CHARITY NUMBER: 1194592

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

SCARBOROUGH AND DISTRICT MENCAP

Smailes Goldie Watson Limited Chartered Accountants 12 Alma Square Scarborough North Yorkshire YO11 1JU

SCARBOROUGH AND DISTRICT MENCAP

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 March 2022

Page
Report of the Trustees 1 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Cash Flow Statement 10
Notes to the Cash Flow Statement 11
Notes to the Financial Statements 12 to 24

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2022

The Trustees are pleased to present their report together with the Charity's financial statements for the year ended 31 March 2022.

Legal and administrative information set out on pages 4 and 5 forms part of this report. The financial statements comply with current statutory requirements, the Charity's governing document and the Statement Of Recommended Practice - Accounting and Reporting by Charities.

OBJECTIVES AND ACTIVITIES Objectives and aims

The organisation has the following objectives:

The object of the CIO is: The relief of people in need by reason of learning disability* in Scarborough and District and environs in particular by the provision of help and support for them and their families, dependents and carers to improve their conditions of life by:

a) promoting inclusion for the public benefit

b) providing or assisting in the provision of facilities to promote personal development, daily living skills, healthy lifestyles, recreation, sport and leisure activities

c) providing resources for support and information services.

*A learning disability is a reduced intellectual ability and difficulty with everyday activities - for example household tasks, socialising or managing money - which affects someone for their whole life and may be mild moderate or severe and include other related conditions.

The practical services and support are funded by agreeing service contracts with bodies such as North Yorkshire County Council and Health Authorities and also directly with people with a learning disability and their carers who receive direct payments and employing staff to deliver the services.

Additional funds to enable us to provide a wider range of social activities for children and adults with a range of learning disabilities and other complex needs are obtained from various sources by:

Generally, Scarborough and District Mencap responds to needs where there is a gap in service provision. Currently, our services include:

Page 1

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2022

OBJECTIVES AND ACTIVITIES

Significant activities and performance

Scarborough and District Mencap is amongst one of the twenty largest local Mencap groups nationally. Generally, the organisation uses input from partner organisations to understand where new services are needed, especially local authority care managers and social workers, and also works closely with families/carers who request direct payment services. In every case where a need for a service has been identified, the organisation has been able to secure funds to start and run the service.

Beneficiaries are provided with services tailored to their individual needs and interests and are supported by trained staff to access local community facilities. This enables people with a learning disability to engage with, and be included in, a variety of social, cultural, sporting and leisure opportunities in their local community, enabling them to be visible, vocal and active citizens who both contribute to society and also receive services.

As a major local service provider, the organisation has to comply with all statutory health and social care requirements. In addition to our own internal monitoring systems, we are also held accountable by local and national statutory bodies, for example North Yorkshire County Council (NYCC) and the Care Quality Commission (CQC) and the Charity Commission. During this financial year we have implemented a new Governance structure to change our organisation to become a Charitable Incorporated Organisation (CIO), with a revised Constitution and developed a new Business Strategy Plan and continually kept service users, families and staff informed about the changes. Our Senior Management team have reviewed all our Policies and Procedures and implemented new operational and financial practices and procedures to improve the efficacy of the whole organisation. This has been a huge additional workload for the Trustees and Management and all have worked closely together to achieve this despite the added disruption of the Coronavirus pandemic.

Public benefit

The Trustees consider that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties, as can be seen from the contents of this report.

Appreciation

The Trustees would like to say thank you to all the staff and volunteers who have worked so hard this year to develop the services and make them of a higher quality. This ensures that we can provide high quality care and support for people with learning and other disabilities, challenging behaviours and complex medical needs, and social activities that help to widen their participation in a range of meaningful activities whilst giving much needed respite to their families/carers. The global Coronavirus pandemic has brought many different challenges for our organisation, service users and their families/carers and our staff team. The Trustees wish to record their highest praise and appreciation for how everyone has responded throughout the whole unprecedented period during Covid-19, which continued into 2020 and to a certain extend is still with us today. We have all found the sudden changes, necessary safety measures and ever-changing guidance to be both challenging and emotionally and physically draining. Yet throughout the very extended period, everyone has responded in a caring, respectful and responsible manner. The Trustees have been particularly impressed with service users who have followed the stringent safety procedures, the families and carers who have taken the strain of care and in particular the Mencap staff team, led by diligent Management, who have adapted and ensured the continuation of care and support and have demonstrated their professionalism and tenacity which is beginning to bring forward a recognition for the profession of Health & Social Care which has long been awaited. Well done everyone.

Risks to the charity

Scarborough and District Mencap takes all reasonable steps to minimise risks by ensuring that responsibilities and duties are spread over several post-holders and not exercised by any one individual. This ensures that significant amounts of expenditure require more than one signature. The Executive Committee undertook a Financial Risk Assessment which informed Business Planning (including Finance Action Plans). We have a significant number of policies and procedures that govern all working practices so that we deliver services in a consistent and safe manner. We are also registered with CQC who inspect and regulate our services providing personal care and we have Inspection visits from NYCC. At the close of this financial year we are recovering from the Coronavirus pandemic which affected our ability to deliver services in our usual way. We are also considering ways of mitigating the effect of reduced donations and funding due to Covid-19 Government restrictions which affected fundraising events and donations. We were supported by the local authority and health to deliver commissioned services where this was possible within the Government Guidance and personal circumstances of Service Users and we successfully adapted our ways of delivering and running the services and organisation to ensure Service User and staff safety. We continue to assess all risks to our organisation at each Executive Committee meeting and to consider ways to mitigate the effect of risks identified.

Page 2

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2022

FINANCIAL REVIEW

Financial review and reserves policy

At the end of the year, the charity had an overall surplus in funds of £189,494 (2021 - surplus of £89,650). After taking account of a surplus in restricted funds of £8,628 (2021 - surplus of £3,888), the surplus in unrestricted funds is £180,866 (2021 - surplus of £85,762).

We have continued to address the challenging financial issues. As reported last year, the continuous review and improvement of underpinning financial procedures and the monitoring systems introduced have ensured that our budget is administered more effectively and the new rolling programme of reviews of all overheads has facilitated many efficiency savings. We have implemented further efficiency savings and continually review all contracts for best value. The efficiency measures enabled the Trustees to address the current financial liabilities through agreed payment plans which we have succeeded in reducing and intend to ensure these are paid in full within the coming financial year. Management structure has been reviewed and some changes made and further reviews will take place, along with a continued review of facilities which culminated in a planned proposal for a new build which is currently being processed via the local planning department. Over the past few years, there has been a reduction in donations and grants. Steps have already been taken to address these issues including application for renewed contracts, reviewing of all overheads to achieve best value and a programme of staff recruitment to reduce over reliance on relief staffing.

The continuing global Coronavirus pandemic required urgent and immediate response to how we delivered our services to keep our service users, staff and volunteers safe, at the same time as we were required to maintain our organisation as a sustainable going concern. Many of our service users have been required to self-isolate, as were some of our staff team. Some staff needed to work from home and this was managed through increased use of technology, and our Senior Management team developed a Remote Support Service for our Service Users. We have been supported by the local authority and health service in delivering and maintaining our contracted work and we successfully applied for Government Community Coronavirus Social Funding. This funding enabled our organisation to develop new ways of working and to buy new equipment which enabled us to continue providing much needed care and support to people with a learning disability throughout the pandemic and we are now gradually and safely emerging from this remote or socially distanced service provision towards a more open provision. The full financial impact from the Coronavirus pandemic will only be fully understood once we fully open all our services. Some service users may now need or wish to make changes to their activity programmes and care packages. We have had some new referrals as well as some indication that a few service users may not need our support, so this may well balance out in the future. We have also recently applied for further funding to enable our organisation to continue in our quest to have a more appropriate Governance Structure and also to help us to look forward and to re-visit our plans for improved Services, Facilities and Opportunities for people with a learning disability.

The organisation aspires to build and maintain a Reserve equivalent to three months operating costs as and when the financial position of the organisation allows. The building remains in the custody of the Trustees.

Reserves policy

The organisation aspires to build and maintain a Reserve equivalent to three months operating costs as and when the financial position of the organisation allows. The building remains in the custody of the Trustees.

PLANS FOR THE FUTURE

The organisation has always developed services to meet the needs for local provision. It is anticipated that this will be our future strategy as well as developing and improving existing services. We always welcome input and feedback on our services so that we can adapt and develop accordingly. We have already successfully applied to a wider variety of sources for funding and we shall continue to explore partnership work with local organisations, fellow providers, and Royal Mencap Society. We have taken steps to ensure that our Governance is appropriate for the organisation and we are continuing to review our facilities to ensure they meet the needs of current and potential future Service Users. We have a live Business Strategy which will be continually revised as we go forward. We will continue to digitize our recording and reporting and have already implemented digital Care Plans, and have the facilities to continually record and assess progress which automatically generates an improvement work plan to ensure we have continual improvement of services and administration. Our new website will soon be operational.

Page 3

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Scarborough and District Mencap is a Local Mencap organisation which affiliates to Royal Mencap Society and as from 26 May 2021 is now registered with the Charity Commission as a Charitable Incorporated Organisation (Foundation model - registered charity number: 1194592). The CIO has its own governing document (Constitution) and a Board of Trustees who are also the only members of the CIO. A Chair, Secretary and Treasurer, are appointed by the membership of the CIO. The Trustee Board has the power to appoint Trustees when necessary and to co-opt Trustee members during the year. In addition, the Trustees can co-opt relevant professionals as Trustees. The original Charitable Trust (Scarborough & District Mencap 240354) is legally linked to the new CIO.

The Chief Executive Officer (CEO) reports to the Trustee Board and has delegated responsibility to manage the organisation on a day-today basis within guidelines set by the Trustees. The Chief Executive Officer has regular meetings with the Chair/Vice-Chair of the Trustee Board, to discuss any issues that arise; in addition there is a formal meeting of the Trustee Board at monthly intervals when they receive formal reports from the Chief Executive Officer and the Finance and compliance Manger and sub-committees, in order to understand the financial position and to be informed on operating issues. The Trustee Board makes formal decisions which require their input at each meeting.

The organisation undertook the process of becoming a Charitable Incorporated Organisation and a proposed new Governance Structure and Constitution were agreed an Annual General Meeting (11/07/2019) and Extraordinary General Meeting (20/02/2020) and the formal application to set up a CIO was agreed by the Charity Commission on 26/05/2021.

When setting remuneration for key management personnel, the Trustees are guided in the pay band by external pay benchmarking via the use of market data taken from Voluntary and non-profit making sector pay surveys and reports. Some flexibility is applied to take into consideration the specific requirements for each post and to ensure we can recruit the best candidate possible to meet the needs of our beneficiaries. When offering a salary we also take into consideration the qualification and experience of the person appointed.

The organisation endeavours to have a broad balance of experience within the Trustee Board. There are positions for parent carers supplemented with representatives with specific experience in the Health, Education and related Business fields. When new members are added to the Trustee Board they have induction sessions with the Chair/Vice-Chair and CEO, who provide them with the following:

Scarborough and District Mencap are affiliated to the Royal Mencap Society and adopt their vision, mission and values which influence our operational practice and training for our service delivery for people with a learning disability. These are described by Royal Mencap Society:

Our vision is a world where people with a learning disability are valued equally, listened to and included. Our vision is for the UK to be the best place in the world for people with a learning disability to live happy and healthy lives.

Our mission is to transform society's attitudes to learning disability and improve the quality of life of people with a learning disability and their families. We strive to promote change on three levels: To change society's attitude and culture, to influence people who shape policy and practice and to empower and directly support more individuals to live fulfilled lives.

Our values

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 1194592

Principal address

Brookleigh 60 Valley Road Scarborough YO11 2JE

Page 4

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2022

Trustees

Trustees of Scarborough and District Mencap as the new Charitable Incorporated Organisation:

Mrs K Ryan Mrs J Stamford Mrs J Johnson Trustees Chairperson: Mrs K Ryan (appointed 21/05/2021) Vice-Chairperson: Mrs J Stamford (appointed 21/05/2021) Secretary: Mrs J Stamford (appointed 21/05/2021) Treasurer: Mrs J Johnson (appointed 21/05/2021) Chief Executive Officer Ms K Taylor

Elected Committee Members

The Trustees as named above.

Independent Examiner Smailes Goldie Watson Limited Chartered Accountants 12 Alma Square Scarborough North Yorkshire YO11 1JU Bankers CAF Bank Ltd 25 Kings Hill Avenue West Malling Kent ME19 4JQ

CONSTITUTION

Scarborough and District Mencap became a Charitable Incorporated Organisation (CIO) with a new Constitution and registered with the Charity Commission on 21st May 2021 (Charity number 1194592). The new organisation is a Foundation CIO and the only members are the Trustees.

This new organisation is a Charitable Incorporated Organisation (Foundation model) and the only members are the Trustees. This new organisation is legally linked to the founding organisation. Scarborough & District Mencap which was founded in 1953 and registered in 1964 with the Charity Commission (Charity number 240354)

The other relevant organisation is Royal Mencap Society, London.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees 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 the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

Page 5

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. 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.

Approved by order of the board of trustees on 13 December 2022 and signed on its behalf by:

K A Ryan - Trustee

Page 6

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SCARBOROUGH AND DISTRICT MENCAP

Independent examiner's report to the trustees of Scarborough and District Mencap

I report to the charity trustees on my examination of the accounts of Scarborough and District Mencap (the CIO) for the year ended 31 March 2022.

Responsibilities and basis of report

As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the CIO's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the CIO as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Use of report

This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my work, or for the opinions I have formed.

Sarah-Jane Sargent FCA ICAEW Smailes Goldie Watson Limited Chartered Accountants 12 Alma Square Scarborough North Yorkshire YO11 1JU

13 December 2022

Page 7

SCARBOROUGH AND DISTRICT MENCAP

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2022

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
84,744
Charitable activities
Provision of services and activities
619,141
Other trading activities
4
24,655
Investment income
5
16
Total
728,556
EXPENDITURE ON
Raising funds
7
8,301
Charitable activities
8
Provision of services and activities
637,905
Total
646,206
NET INCOME
82,350
Transfers between funds
19
12,754
Net movement in funds
95,104
RECONCILIATION OF FUNDS
Total funds brought forward
85,762
TOTAL FUNDS CARRIED FORWARD
180,866		 Restricted
funds
£
7,501
60,925
-
-
68,426
-
50,932
50,932
17,494
(12,754)
4,740
3,888
8,628		 2022
Total
funds
£
92,245
680,066
24,655
16
796,982
8,301
688,837
697,138
99,844
-
99,844
89,650
189,494		 2021
Total
funds
£
73,972
757,234
7,007
68
838,281
387
609,148
609,535
228,746
-
228,746
(139,096)
89,650

The notes form part of these financial statements

Page 8

SCARBOROUGH AND DISTRICT MENCAP

BALANCE SHEET 31 March 2022

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
14
118,195
CURRENT ASSETS
Debtors
15
17,668
Cash at bank
391,286
408,954
CREDITORS
Amounts falling due within one year
16
(346,284)
NET CURRENT ASSETS
62,670
TOTAL ASSETS LESS CURRENT LIABILITIES
180,865
NET ASSETS
180,865
FUNDS
19
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
8,629
8,629
-
8,629
8,629
8,629		 2022
Total
funds
£
118,195
17,668
399,915
417,583
(346,284)
71,299
189,494
189,494
180,865
8,629
189,494		 2021
Total
funds
£
112,256
17,620
323,534
341,154
(363,760)
(22,606)
89,650
89,650
85,762
3,888
89,650

The financial statements were approved by the Board of Trustees and authorised for issue on 13 December 2022 and were signed on its behalf by:

J A Stamford - Trustee

The notes form part of these financial statements

Page 9

SCARBOROUGH AND DISTRICT MENCAP

CASH FLOW STATEMENT for the year ended 31 March 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 2022
£
91,156
91,156
(14,791)
-
16
(14,775)
76,381
323,534
399,915		 2021
£
260,620
260,620
(18,448)
290
68
(18,090)
242,530
81,004
323,534

The notes form part of these financial statements

Page 10

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 March 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
Interest received
(Increase)/decrease in debtors
Decrease in creditors
Net cash provided by operations		 2022
£
99,844
8,853
-
(16)
(48)
(17,477)
91,156		 2021
£
228,746
7,545
674
(68)
47,701
(23,978)
260,620

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21 Cash flow At 31.3.22
£ £ £
Net cash
Cash at bank 323,534 76,381 399,915
323,534 76,381 399,915
Total 323,534 76,381 399,915

The notes form part of these financial statements

Page 11

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022

1. STATUTORY INFORMATION

Scarborough and District Mencap is a Charitable Incorporated Organisation registered with the Charity Commission in England and Wales. The charity's registered number and principal office address can be found within the Report of the Trustees.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: 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) and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling, which is the functional currency of the charity.

Preparation of the accounts on a going concern basis

These financial statements have been prepared on the going concern basis, which assumes that the charity will continue in operational existence for the foreseeable future. The Trustees believe it is currently appropriate for the financial statements to be prepared on the going concern basis. This judgement is based on a number of factors, including the Trustees' assessment that:

continued...

Page 12

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

2. ACCOUNTING POLICIES - continued

Basis of preparing the financial statements

The Trustees are aware that there are still challenges ahead and that the lack of general reserves could contribute to uncertainty and this has influenced them to agree to work towards holding increasing levels of general reserves to protect against a potentially challenging environment in the years to come. The Trustees have plans in hand to address this situation by accumulating reserves once the financial situation allows. There are current outstanding financial liabilities which the Trustees are addressing, including a £151,000 loan which is secured on the land and buildings and outstanding non-current HMRC debts of £23,450 for which repayment plans have been agreed and implemented. The efficiency initiatives already in place and additional fundraising implemented contributed to generate annual savings which enabled current liabilities to be managed through agreed payment plans. A review of facilities has taken place and proposed plans for improved facilities are to be submitted in the coming year. There were several steps needed to achieve the improved financial situation and a major financial focus for the Trustees has been maintaining ongoing financial sustainability given the lower level of support from donations and the need for increased income from a broader range of sources including grant applications and funding bids. The most recent Covid-19 virus and consequent Government restrictions did present the organisation with some uncertainty, but the contingency measures implemented to mitigate against the effect of the situation on Services and the organisation’s sustainability have proved so far to be effective.

Critical judgements in applying the charity's policies

The trustees do not consider that there are any significant judgements which have had to be made in preparing these financial statements and they also do not consider that any of the estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Critical accounting estimates and assumptions

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The assumptions used regarding useful economic lives and residual values are assessed annually. They are amended when necessary to reflect current estimates based on market conditions and physical conditions of the assets.

Incoming resources

All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. Grants receivable from the local authority are recognised when the service is provided. Income is deferred where it is received in advance to be expended in the following period or it relates to a fundraising event to be held in the following period. Donations and gifts are recognised when receivable at market value, with the exception of gifts donated for resale which are recognised as income on point of sale as charity shop income. No amounts are included in the financial statements for services donated by volunteers.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the charity will comply with conditions attaching to them and the grants will be received, using the performance model.

Resources expended

All expenditure is accounted for on an accruals basis. Charitable activities comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Expenditure on raising funds comprise costs incurred from the charity shop. Governance costs which are included within support costs are those costs incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

Tangible fixed assets

The Trustees' policy is currently not to provide for depreciation of freehold buildings, as the trustees believe the current market value exceeds book value. In the opinion of the Trustees, the omission of depreciation on freehold buildings would not materially affect the appreciation of the financial statements.

Fixtures, fittings, tools and equipment 15% - 50% reducing balance Motor vehicles 25% reducing balance

There is no specific capitalisation threshold for tangible fixed assets.

Taxation

The charity is exempt from tax on its charitable activities.

continued...

Page 13

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

2. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted income funds are available to use at the discretion of the Trustees in furtherance of the general objectives of the charity. Designated funds are set aside by the Trustees out of unrestricted general funds for specific future purposes. Restricted income funds are funds to be used in accordance with specific restrictions imposed by donors or funds that have been raised for a particular purpose.

Operating leases

Operating lease rentals are included within expenses of the period to which they relate.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate and total £8,123 (2021 - £5,746).

Donated goods

Items donated for resale are not included in the financial statements until they are sold.

Financial instruments

The charity only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other debtors and creditors. Debt instruments that are payable or receivable within one year, typically debtors or creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Comparatives

Comparative figures have been amended to reflect a better classification between direct costs and support costs.

3. DONATIONS AND LEGACIES

Donations
Legacies
Grants		 2022
£
9,428
50,001
32,816
92,245		 2021
£
919
-
73,053
73,972

During the reporting period, the charity received £3,816 (2021 - £73,053) from the local authority in respect of Covid-19 support funding.

4. OTHER TRADING ACTIVITIES

5.

Charity shop income
INVESTMENT INCOME
Interest received		 2022
£
24,655
2022
£
16		 2021
£
7,007
2021
£
68

continued...

Page 14

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

6. INCOME FROM CHARITABLE ACTIVITIES

INCOME FROM CHARITABLE ACTIVITIES
Activity
Local authority and health
authority income
Provision of services and activities
Sales and fees receivable
Provision of services and activities
Grants
Provision of services and activities		 2022
£
548,310
70,831
60,925
680,066		 2021
£
671,217
40,506
45,511
757,234

During the reporting period, the charity received grants totalling £24,625 (2021 - £nil) from the local authority in respect of Workforce Retention and Recruitment funding.

7. RAISING FUNDS

Raising donations and legacies

Raising donations and legacies
2022
2021
£
£
Charity shop rental costs 8,301
-
Raising funds -
387
8,301
387

8.

9.

CHARITABLE ACTIVITIES COSTS

Provision of services and activities
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Cost of activities
Transport and general running costs
Agency staff
Consumables
Depreciation		 Direct
Costs (see
note 9)
£
592,258		 Support
costs (see
note 10)
£
96,579
2022
£
530,205
5,687
16,228
31,847
294
7,997
592,258		 Totals
£
688,837
2021
£
503,252
3,764
15,201
6,380
6,105
7,091
541,793

DIRECT COSTS OF CHARITABLE ACTIVITIES

continued...

Page 15

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

10. SUPPORT COSTS

Management
£
Provision of services and activities
52,478
Support costs, included in the above, are as follows:
Management
Running of Brookleigh
Insurance
Payroll administration
Staff training
Finance
Bank charges
Governance costs
Independent examination services
Legal fees
Accountancy		 Governance
Finance
costs
Totals
£
£
£
1,739
42,362
96,579
2022
2021
Provision
of
services
and
Total
activities
activities
£
£
34,853
30,936
5,102
5,026
2,640
2,640
9,883
5,315
52,478
43,917
2022
2021
Provision
of
services
and
Total
activities
activities
£
£
1,739
69
2022
2021
Provision
of
services
and
Total
activities
activities
£
£
2,320
2,400
36,542
17,669
3,500
3,300
42,362
23,369

continued...

Page 16

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Charitable activities
Management and administration		 2022
£
498,705
23,377
8,123
530,205
2022
32
5
37		 2021
£
478,493
19,013
5,746
503,252
2021
35
5
40

No employees received emoluments in excess of £60,000.

The total key management personnel remuneration was £84,828 (2021 - £88,384). No employees received emoluments in excess of £60,000.

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
40,062
Charitable activities
Provision of services and activities
711,723
Other trading activities
7,007
Investment income
68
Total
758,860
EXPENDITURE ON
Raising funds
387
Charitable activities
Provision of services and activities
529,463
Total
529,850
NET INCOME/(EXPENDITURE)
229,010		 Restricted
funds
£
33,910
45,511
-
-
79,421
-
79,685
79,685
(264)		 Total
funds
£
73,972
757,234
7,007
68
838,281
387
609,148
609,535
228,746

continued...

Page 17

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
14.
TANGIBLE FIXED ASSETS
COST
At 1 April 2021
Additions
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Freehold
property
£
79,091
-
79,091
-
-
-
79,091
79,091		 Unrestricted
fund
£
(143,248)
85,762
Fixtures
and
fittings
£
42,074
14,791
56,865
30,845
3,368
34,213
22,652
11,229		 Restricted
funds
£
4,152
3,888
Motor
vehicles
£
34,015
-
34,015
12,079
5,484
17,563
16,452
21,936		 Total
funds
£
(139,096)
89,650
Totals
£
155,180
14,791
169,971
42,924
8,852
51,776
118,195
112,256

The market value of the freehold property on a current use basis is estimated by the trustees to be in excess of £250,000.

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Prepayments and accrued income		 2022
£
15,560
2,108
17,668		 2021
£
12,509
5,111
17,620

continued...

Page 18

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors		 2022
£
4,863
341,421
346,284		 2021
£
5,435
358,325
363,760

Deferred income relates to funding received before the year end for future periods. The balance included within creditors relates to amounts deferred during the reporting period of £27,158 (2021 - £43,894). All amounts have been released in the current period from the previous year.

Other creditors includes an interest free loan of £151,000 secured on land and buildings, for which no specific repayment terms have been agreed.

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2022
£
22,056
39,126
61,182		 2021
£
4,056
13,182
17,238

Included within expenses are charges relating to operating lease rentals of £4,056 (2021 - £4,134).

18. SECURED DEBTS

The following secured debts are included within creditors:

2022 2021
£ £
Other creditors 151,000 151,000

Other creditors are secured on land and buildings.

continued...

Page 19

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

19. MOVEMENT IN FUNDS

Net
movement
At 1.4.21
in funds
£
£
Unrestricted funds
General fund
85,762
82,349
Restricted funds
Let's Get Digital Grant
-
3,656
Gateway Club fund
2,267
-
Day Services project
45
-
Drama fund
165
-
Service user activities fund
500
-
Sign fund
911
-
National Lottery Community Fund: RC
Yorkshire and Humber Region
-
13,642
Workforce Retention and Recruitment Fund
-
197
3,888
17,495
TOTAL FUNDS
89,650
99,844
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
728,556
Restricted funds
Let's Get Digital Grant
3,686
National Lottery Community Fund: RC
Yorkshire and Humber Region
36,299
Workforce Retention and Recruitment Fund
24,625
Infection Control
3,816
68,426
TOTAL FUNDS
796,982		 Transfers
between
At
funds
31.3.22
£
£
12,754
180,865
(3,656)
-
(2,205)
62
-
45
-
165
-
500
-
911
(6,893)
6,749
-
197
(12,754)
8,629
-
189,494
Resources
Movement
expended
in funds
£
£
(646,207)
82,349
(30)
3,656
(22,657)
13,642
(24,428)
197
(3,816)
-
(50,931)
17,495
(697,138)
99,844

continued...

Page 20

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Restricted funds
Gateway Club fund
Project fees fund
Sensory room fund
Day Services project
Drama fund
Service user activities fund
Sign fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Infection Control fund
National Lottery Community Fund and
Programme Coronavirus Community Support
Fund
Let's Get Digital Grant
Project fees fund
Sensory room fund
TOTAL FUNDS		 At 1.4.20
£
(143,248)
2,267
245
19
45
165
500
911
4,152
(139,096)

Incoming
resources
£
758,860
33,910
42,896
2,615
-
-
79,421
838,281		 Net
movement
At
in funds
31.3.21
£
£
229,010
85,762
-
2,267
(245)
-
(19)
-
-
45
-
165
-
500
-
911
(264)
3,888
228,746
89,650
Resources
Movement
expended
in funds
£
£
(529,850)
229,010
(33,910)
-
(42,896)
-
(2,615)
-
(245)
(245)
(19)
(19)
(79,685)
(264)
(609,535)
228,746

continued...

Page 21

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

19. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Net Transfers
movement between At
At 1.4.20 in funds funds 31.3.22
£ £ £ £
Unrestricted funds
General fund (143,248) 311,359 12,754 180,865
Restricted funds
Let's Get Digital Grant - 3,656 (3,656) -
Gateway Club fund 2,267 - (2,205) 62
Project fees fund 245 (245) - -
Day Services project 45 - - 45
Drama fund 165 - - 165
Service user activities fund 500 - - 500
Sign fund 911 - - 911
National Lottery Community Fund: RC
Yorkshire and Humber Region - 13,642 (6,893) 6,749
Workforce Retention and Recruitment Fund - 197 - 197
4,133 17,250 (12,754) 8,629
TOTAL FUNDS (139,096) 328,590 - 189,494

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 1,487,416 (1,176,057) 311,359
Restricted funds
Let's Get Digital Grant 6,301 (2,645) 3,656
Project fees fund - (245) (245)
National Lottery Community Fund: RC
Yorkshire and Humber Region 36,299 (22,657) 13,642
Workforce Retention and Recruitment Fund 24,625 (24,428) 197
Infection Control 3,816 (3,816) -
71,041 (53,791) 17,250
TOTAL FUNDS 1,635,263 (1,306,673) 328,590

Let's Get Digital Grant. The Department for Digital, Culture, Media and Sport (DCMS), Pears Foundation and National Lottery have provided funding to support organisations through the Covid-19 outbreak. Mencap will be administering this fund to Network Partners through our "Let's Get Digital" programme. Mencap and Scarborough and District Mencap wish to work together to develop digital strategies and increase digital inclusion of people with a learning disability through this Fund.

The Gateway Club fund relates to monies received to be spent to benefit this service.

The Day Services Project fund relates to monies received to be spent to benefit this service.

The Drama fund relates to monies received to be spent to benefit this service.

The Service user activities fund relates to a legacy received to be spent to benefit these activities.

continued...

Page 22

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

19. MOVEMENT IN FUNDS - continued

The Sign fund relates to monies received to be spent on new signage.

The National Lottery Community Fund: RC Yorkshire and Humber Region has enabled us to set up a Active Community Engagement project aimed at providing additional choices and experiences for local people with a learning disability and enhancing their lives and opportunities

The Workforce Retention and Recruitment Fund has been used as specified by NYCC. The fund has been used on staff recruitment, retention and bank staff as detailed in the returns to the local authority.

Transfers between funds

A transfer of £12,754 has been made during the reporting period from restricted to unrestricted funds, representing the value of fixed assets that have been purchased from restricted fund monies where the assets are held for a general and not a restricted purpose.

20. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2022.

21. MERGER

Scarborough & District Mencap (charity number 0240354) and Scarborough and District Mencap CIO (charity number 1194542) merged on 30 September 2021.

Analysis of principal Statement of Financial Activities components for the current reporting period

Total income
Total expenditure
Net income
Other gains/losses
Net movement in funds		 Scarborough &
District Mencap
(pre-merger)
£
424,215
(341,272)
82,943
-
82,943		 Scarborough and
District Mencap
CIO
(pre-merger)
£
-
-
-
-
-		 Scarborough and
District Mencap
CIO
(post-merger)
£
372,677
(355,776)
16,901
-
16,901		 Combined
Total
£
796,892
(696,688)
99,844
-
99,844

Analysis of principal Statement of Financial Activities components for the previous reporting period

Total income
Total expenditure
Net income
Total funds brought forward
Total funds carried forward		 Scarborough &
District Mencap
£
838,281
(609,535)
228,746
(139,096)
89,650		 Scarborough and
District Mencap
CIO
£
-
-
-
-
-		 Combined
Total
£
838,281
(609,535)
228,746
(139,096)
89,650

continued...

Page 23

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2022

21. MERGER - continued

Analysis of net assets at the date of the merger

Net assets
Represented by:
Unrestricted funds
Restricted income funds
Total funds		 Scarborough &
District Mencap
Scarborough and
District Mencap
CIO

£
£
172,593
-
168,705
-
3,888
-
172,593
-		 Combined
Total
£
172,593
168,705
3,888
172,593

Page 24