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2023-03-31-accounts

REGISTERED CHARITY NUMBER: 1194592

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

Page
Report of the Trustees 1 to 7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13 to 25

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2023

The Trustees are pleased to present their report together with the Charity's financial statements for the year ended 31 March 2023.

Legal and administrative information set out on page 4 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 2023

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 care workers, and also works closely with families/carers who request direct payment services either directly or via one of the Forums for Staff, Service user, Parent carers and Professionals. 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 a variety of social, cultural, sporting and leisure opportunities in the 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 the previous North Yorkshire County Council (NYCC) which is now North Yorkshire Council (NYC) and the Care Quality Commission (CQC) and the Charity Commission. During the last financial year we 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. We continue to keep service users, families and staff informed about any changes. Our Senior Management team and Trustees have reviewed all our Policies and Procedures and implemented new operational and financial practices and procedures to improve the efficacy of the whole organisation.

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 continue 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 offer 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 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, 2021 and 2022, and to a certain extend is still with us today. We 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 initially took the strain of care and in particular the Mencap staff team, led by diligent Management, who adapted and ensured the continuation of care and support and have demonstrated their professionalism and tenacity which is bringing a recognition for the profession of Health & Social Care. Well done everyone.

Page 2

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2023

OBJECTIVES AND ACTIVITIES

Risks to the charity

Scarborough and District Mencap takes all reasonable steps to minimise all risks by ensuring that staff are well trained, duties are clear, risk assessments are updated and generally responsibilities and duties are spread over several post-holders and not exercised by any one individual. For our Finances, this ensures that significant amounts of expenditure require more than one signature. The Trustees have undertaken 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 North Yorkshire Council. At the close of this financial year, we are still recovering from the Coronavirus pandemic which affected our ability to deliver services in our usual way, and whilst we have re-opened most of our services, some people with a learning disability have not fully returned to services, being aware of a recent rise in Covid cases. We are still giving due consideration to ways of mitigating the effect of reduced donations and funding due to Covid-19 Government restrictions which affected fundraising events and donations. The local authority and health authority supported us 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.

FINANCIAL REVIEW

Financial review and reserves policy

At the end of the year, the charity had an overall surplus in funds of £181,750 (2022 - surplus of £189,494). After taking account of a surplus in restricted funds of £18,297 (2022 - surplus of £8,628), the surplus in unrestricted funds is £163,453 (2022 - surplus of £180,866). The reduction in the unrestricted funds is accounted for by the organisation slowly growing service user numbers back towards pre-pandemic levels and as such keeping the infrastructure in place to achieve this.

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 rolling programme of reviews of all overheads has facilitated many efficiency savings. The efficiency measures enabled the Trustees to address the financial liabilities during the previous 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 building which has now been passed giving full planning permission for a new build Mencap Centre and outline planning permission for a residential section on site.

More recently, there has been a reduction in donations and grants. Steps have already been taken to address these issues including agreement for renewed contracts, reviewing of all overheads to achieve best value and a successful 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. During the period when our service users were required to self-isolate our Senior Management team developed a Remote Support Service for our Service Users. We were 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 gradually and safely emerged from this remote or socially distanced service provision towards a more open provision.

The full financial impact from the Coronavirus pandemic is only being fully understood as we fully open all our services. Some service users have needed or wished 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 still feel unable to access our support. Several of our continued funding applications 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 have been successful and some are still in the pipe-line. Our day service provision is getting nearer to our planned level of provision and our flexi- services are also on track to show sustained improvement in hours provided.

Page 3

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2023

FINANCIAL REVIEW

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 now have a Charity Shop and Hub and have developed and implemented our ACE Project (Active Community Engagement) funded by The National Lottery Community Fund.

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 Personal Care System 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 is now operational and we use Social Media to communicate achievements.

Page 4

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2023

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 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.

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:

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 regular 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.

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.

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

Page 5

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2023

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1194592

Principal address Brookleigh 60 Valley Road Scarborough YO11 2JE

Trustees

Trustees of Scarborough and District Mencap as the new Charitable Incorporated Organisation in 2021 : Mrs K Ryan Mrs J Stamford Mrs J Johnson

Trustees of Scarborough and District Mencap CIO in 2023:

Chairperson: Mrs K Ryan (resigned 10/08/2023) Mrs J Stamford (appointed 10/08/2023) Vice- Chairperson: Mrs J Stamford (appointed 21/05/2021) - now vacant Secretary: Mrs J Stamford (appointed 21/05/2021) - now vacant Treasurer: Mrs J Johnson (appointed 21/05/2021) Also: Mrs S Rose (appointed 22/06/2023)

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.

Page 6

SCARBOROUGH AND DISTRICT MENCAP

REPORT OF THE TRUSTEES for the year ended 31 March 2023

Approved by order of the board of trustees on 1 December 2023 and signed on its behalf by:

J A Stamford - Trustee

Page 7

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 2023.

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 member of the Institute of Chartered Accountants in England and Wales, 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 The Institute of Chartered Accountants in England and Wales

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

1 December 2023

Page 8

SCARBOROUGH AND DISTRICT MENCAP

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2023

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
39,113
Charitable activities
6
Provision of services and activities
569,671
Other trading activities
4
45,190
Investment income
5
2,574
Total
656,548
EXPENDITURE ON
Raising funds
7
22,844
Charitable activities
8
Provision of services and activities
651,116
Total
673,960
NET INCOME/(EXPENDITURE)
(17,412)
RECONCILIATION OF FUNDS
Total funds brought forward
180,865
TOTAL FUNDS CARRIED FORWARD
163,453		 Restricted
funds
£
8,551
85,158
-
-
93,709
-
84,041
84,041
9,668
8,629
18,297		 2023
Total
funds
£
47,664
654,829
45,190
2,574
750,257
22,844
735,157
758,001
(7,744)
189,494
181,750		 2022
Total
funds
£
92,245
680,066
24,655
16
796,982
8,301
688,837
697,138
99,844
89,650
189,494

The notes form part of these financial statements

Page 9

SCARBOROUGH AND DISTRICT MENCAP

BALANCE SHEET 31 March 2023

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
14
110,698
CURRENT ASSETS
Debtors
15
21,423
Cash at bank and in hand
358,786
380,209
CREDITORS
Amounts falling due within one year
16
(327,453)
NET CURRENT ASSETS
52,756
TOTAL ASSETS LESS CURRENT
LIABILITIES
163,454
NET ASSETS
163,454
FUNDS
19
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
33,776
33,776
(15,480)
18,296
18,296
18,296		 2023
Total
funds
£
110,698
21,423
392,562
413,985
(342,933)
71,052
181,750
181,750
163,454
18,296
181,750		 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

The financial statements were approved by the Board of Trustees and authorised for issue on 1 December 2023 and were signed on its behalf by:

J A Stamford - Trustee

The notes form part of these financial statements

Page 10

SCARBOROUGH AND DISTRICT MENCAP

CASH FLOW STATEMENT for the year ended 31 March 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash provided by/(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		 2023
£
(8,526)
(8,526)
(1,401)
2,574
1,173
(7,353)
399,915
392,562		 2022
£
91,156
91,156
(14,791)
16
(14,775)
76,381
323,534
399,915

The notes form part of these financial statements

Page 11

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 March 2023

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Increase in debtors
Decrease in creditors
Net cash (used in)/provided by operations		 2023
£
(7,744)
8,898
(2,574)
(3,755)
(3,351)
(8,526)		 2022
£
99,844
8,853
(16)
(48)
(17,477)
91,156

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank and in hand 399,915 (7,353) 392,562
399,915 (7,353) 392,562
Total 399,915 (7,353) 392,562

The notes form part of these financial statements

Page 12

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023

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 13

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

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. 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.

continued...

Page 14

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets

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.

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 £8,714 (2022 - £8,123).

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.

3. DONATIONS AND LEGACIES

Donations
Legacies
Grants		 2023
£
20,414
-
27,250
47,664		 2022
£
9,429
50,000
32,816
92,245

During the reporting period, the charity received £nil (2022 - £3,816) from the local authority in respect of Covid-19 support funding.

continued...

Page 15

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

4.
OTHER TRADING ACTIVITIES
Charity shop income
5.
INVESTMENT INCOME
Interest received
6.
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

During the reporting period, the charity received grants totalling £nil (2022 - £24,625) from the local authority in respect of Workforce Retention and Recruitment funding.

7. RAISING FUNDS

Raising donations and legacies

Charity shop running costs
8.
CHARITABLE ACTIVITIES COSTS
Provision of services and activities		 Direct
Costs (see
note 9)
£
655,307		 2023
£
22,844
Support
costs (see
note 10)
£
79,850		 2022
£
8,301
Totals
£
735,157		 2022
£
8,301

continued...

Page 16

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

9. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff costs
Cost of activities
Transport and general running costs
Agency staff
Consumables
Community hub running costs
Depreciation
SUPPORT COSTS
Management
£
Provision of services and activities
56,924
Support costs, included in the above, are as follows:
Management
Running of Brookleigh
Insurance
Payroll administration
Staff training
Finance
Bank charges		 2023
£
510,413
28,563
15,341
69,412
-
22,680
8,898
655,307
Governance
Finance
costs
£
£
469
22,457
2023
Provision
of
services
and
activities
£
42,723
5,069
2,640
6,492
56,924
2023
Provision
of
services
and
activities
£
469		 2022
£
530,205
5,687
16,228
31,847
294
-
7,997
592,258
Totals
£
79,850
2022
Total
activities
£
34,853
5,102
2,640
9,883
52,478
2022
Total
activities
£
1,739

10. SUPPORT COSTS

continued...

Page 17

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

10. SUPPORT COSTS - continued Governance costs

SUPPORT COSTS - continued
Governance costs
2023 2022
Provision
of
services
and Total
activities activities
£ £
Independent examination services 2,400 2,320
Legal fees 14,627 36,542
Accountancy 3,750 3,500
Accountancy - prior year underprovision 1,680 -
22,457 42,362

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:		 2023
£
476,752
24,947
8,714
510,413		 2022
£
498,705
23,377
8,123
530,205
Charitable activities
Management and administration		 2023
29
5
34		 2022
32
5
37

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

The total key management personnel remuneration was £71,372 (2022 - £84,828). No employees received emoluments in excess of £60,000.

continued...

Page 18

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
84,744
Charitable activities
Provision of services and activities
619,141
Other trading activities
24,655
Investment income
16
Total
728,556
EXPENDITURE ON
Raising funds
8,301
Charitable activities
Provision of services and activities
637,905
Total
646,206
NET INCOME
82,350
Transfers between funds
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		 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

continued...

Page 19

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

14. TANGIBLE FIXED ASSETS

COST
At 1 April 2022
Additions
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 Freehold
property
£
79,091
-
79,091
-
-
-
79,091
79,091		 Fixtures
and
fittings
£
56,865
1,401
58,266
34,213
4,785
38,998
19,268
22,652		 Motor
vehicles
£
34,015
-
34,015
17,563
4,113
21,676
12,339
16,452		 Totals
£
169,971
1,401
171,372
51,776
8,898
60,674
110,698
118,195

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
16.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors

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 £51,487 (2022 - £27,158). 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.

continued...

Page 20

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

17. LEASING AGREEMENTS

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

Within one year
Between one and five years		 2023
£
25,656
19,542
45,198		 2022
£
22,056
39,126
61,182

Included within expenses are charges relating to operating lease rentals of £26,736 (2022 - £4,056).

18. SECURED DEBTS

The following secured debts are included within creditors:

Other creditors 2023
£
151,000		 2022
£
151,000

Other creditors are secured on land and buildings.

19. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Gateway Club fund
Day Services project
Drama fund
Service user activities fund
Sign fund
National Lottery Community Fund: RC
Yorkshire and Humber Region
Workforce Retention and Recruitment
Fund
Children's activities fund
TOTAL FUNDS		 At 1.4.22
£
180,865
62
45
165
500
911
6,749
197
-
8,629
189,494		 Net
movement
in funds
£
(17,411)
-
(45)
(165)
-
(911)
10,118
(197)
867
9,667
(7,744)		 At
31.3.23
£
163,454
62
-
-
500
-
16,867
-
867
18,296
181,750

continued...

Page 21

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

19. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Day Services project
Drama fund
Sign fund
National Lottery Community Fund: RC
Yorkshire and Humber Region
Workforce Retention and Recruitment
Fund
HUB Project Fund
YBS Summer Fund
Children's activities fund
TOTAL FUNDS		 Incoming
resources
£
656,548
-
-
-
85,157
-
5,000
1,968
1,584		 Resources
Movement
expended
in funds
£
£
(673,959)
(17,411)
(45)
(45)
(165)
(165)
(911)
(911)
(75,039)
10,118
(197)
(197)
(5,000)
-
(1,968)
-
(717)
867
(84,042)
9,667
(758,001)
(7,744)
93,709
750,257		 (84,042)
(758,001)

Comparatives for movement in funds

Net Transfers
movement between At
At 1.4.21 in funds funds 31.3.22
£ £ £ £
Unrestricted funds
General fund 85,762 82,349 12,754 180,865
Restricted funds
Let's Get Digital Grant - 3,656 (3,656) -
Gateway Club fund 2,267 - (2,205) 62
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
3,888 17,495 (12,754) 8,629
TOTAL FUNDS 89,650 99,844 - 189,494

continued...

Page 22

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

19. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Let's Get Digital Grant
National Lottery Community Fund: RC
Yorkshire and Humber Region
Workforce Retention and Recruitment
Fund
Infection Control
TOTAL FUNDS		 Incoming
resources
£
728,556
3,686
36,299
24,625
3,816
68,426
796,982		 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

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

Unrestricted funds
General fund
Restricted funds
Let's Get Digital Grant
Gateway Club fund
Day Services project
Drama fund
Service user activities fund
Sign fund
National Lottery Community Fund: RC
Yorkshire and Humber Region
Children's activities fund
TOTAL FUNDS		 At 1.4.21
£
85,762
-
2,267
45
165
500
911
-
-
3,888
89,650		 Net
movement
in funds
£
64,938
3,656
-
(45)
(165)
-
(911)
23,760
867
27,162
92,100		 Transfers
between
funds
£
12,754
(3,656)
(2,205)
-
-
-
-
(6,893)
-
(12,754)
-		 At
31.3.23
£
163,454
-
62
-
-
500
-
16,867
867
18,296
181,750

continued...

Page 23

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

19. MOVEMENT IN FUNDS - continued

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 1,385,104 (1,320,166) 64,938
Restricted funds
Let's Get Digital Grant 3,686 (30) 3,656
Day Services project - (45) (45)
Drama fund - (165) (165)
Sign fund - (911) (911)
National Lottery Community Fund: RC
Yorkshire and Humber Region 121,456 (97,696) 23,760
Workforce Retention and Recruitment
Fund 24,625 (24,625) -
Infection Control 3,816 (3,816) -
Hub Project Fund 5,000 (5,000) -
YBS Summer Fund 1,968 (1,968) -
Children's activities fund 1,584 (717) 867
162,135 (134,973) 27,162
TOTAL FUNDS 1,547,239 (1,455,139) 92,100

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. This fund is now closed.

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 Sign fund relates to monies received to be spent on new signage. This fund is now closed.

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. This fund runs from October each year and further expenditure will occur from this fund in 2023/2024.

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. This fund is now closed.

Infection control fund relates to the monies from the Covid-19 fund.

The Hub Project Fund relates to monies received for the development of the hub in the town centre for the use of service users.

The YBS Summer Fund relates to a donation from YBS for children's activities.

continued...

Page 24

SCARBOROUGH AND DISTRICT MENCAP

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2023

19. MOVEMENT IN FUNDS - continued

Children's activities fund relates to a donation from ex-service user spent over last year and also this year.

20. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.

Page 25