2022-03-31-accounts

COMPANY REGISTRATION NUMBER: 01638939

CHARITY REGISTRATION NUMBER: 513001

William Merritt Disabled Living Centre Company Limited by Guarantee

Financial Statements For the year ended

31 March 2022

William Merritt Disabled Living Centre

Company Limited by Guarantee

Financial Statements

Year ended 31 March 2022

	Page
Trustees' annual report (incorporating the director's report)	1
Independent auditor's report to the members	7
Statement of financial activities (including income and
expenditure account)	12
Statement of financial position	13
Statement of cash flows	14
Notes to the financial statements	15

William Merritt Disabled Living Centre

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 March 2022

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2022.

Reference and administrative details

Registered charity name William Merritt Disabled Living Centre Charity registration number 513001 Company registration number 01638939 Principal office and registered Aire House office 100 Town Street Rodley Leeds LS13 1HP

The trustees

Prof. M A Chamberlain OBE D Bruce (Treasurer) T McDonnell J Spencer K Murray (Chair) R Beverley-Stevenson M Faulkner K Preston N Prior (Appointed 28 January 2022) Dr P D Ghosh (Appointed 18 August 2021) Auditor Ford Campbell Freedman Limited Chartered accountants & statutory auditor 2nd Floor 33 Park Place Leeds LS1 2RY

Structure, governance and management

GOVERNING DOCUMENT

The organisation is a charitable company limited by guarantee, incorporated on 28 May 1982 and registered as a charity on 20 August 1982. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

1

William Merritt Disabled Living Centre

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

Structure, governance and management (continued)

RECRUITMENT AND APPOINTMENT OF DIRECTORS AND TRUSTEES

The directors of the company are also charity trustees for the purpose of charity law and under the company's Articles are known as trustees. Under the requirements of the Memorandum and Articles of Association all of the trustees are required to retire at each annual general meeting and offer themselves for re-election. All policy, strategic and financial decisions are made by the trustees. Dayto-day management of the Centre is devolved to the General Business Manager who also has responsibility for the line-management of the staff.

The trustees may appoint a person who is willing to act to be a trustee either to fill a vacancy or as an additional trustee. Appointments are made based on the skills, knowledge and experience required to ensure the charity is well governed. New trustees are given an induction pack and spend time with the organisation. Trustees meet monthly and are expected to use their influence in the wider community to further the aims of the Centre.

RISK MANAGEMENT

The trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been drawn up and will be updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces.

Objectives and activities

The company has set the following objectives for the charity:

1. To act as an independent centre which provides information and advice on equipment for disabled people, carers and the professionals who work with them.

2. To provide an information service on how and where to get equipment.

3. To offer advice and guidance from trained staff who can demonstrate a wide range of equipment for daily living.

4. To organise education and training of the practical aspects of living with a disability.

The Centre incorporates the Leeds Mobility Centre providing a full assessment by therapists and Advanced Driving Instructors of the driving capability of those people physically or otherwise impaired. In recent years, much work has been done in harnessing new technology to allow a whole range of electronic switches to be added to conventional equipment, games and toys to enable them to be used by disabled children in their everyday environment.

Strategic report

The following sections for achievements and performance and financial review form the strategic report of the charity.

2

William Merritt Disabled Living Centre

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022

Achievements and performance

The Centre's financial year started in the middle of the second country-wide lockdown caused by the Covid 19 pandemic and the Centre wasn't able to re-open until July 2021. Some staff, who were able to carry out their duties from home, continued to do so but given that the bulk of the Centre's activities involve personal assessments with vulnerable people, this was clearly not possible. It also became evident through the remainder of the 2021/22 financial year that there remained a general reluctance of clients, a lot of whom are in the vulnerable category, to visit the Centre for the services they needed.

As in the previous year, these circumstances had a significant impact on the Centre's performance for the year due to the inability to carry out the expected number of assessments and appointments across the range of services provided by its clinicians. The lower level of assessments carried out resulted in a reduction in the grant income received from the Department of Transport together with a lower level of assessment fees from DVLA. Recovery from the pandemic has raised, and will continue to raise, a few unknowns but it has demonstrated that the Centre's ability to be flexible is of great value in serving the needs of those who use our services.

Progress in performance and outcomes is generally measured by the production of quarterly Key Performance Indicators by the General Business Manager which are reviewed by the trustees in board meetings, although this has continued to be difficult during the year, due to the unpredictability of client attendances and the high level of cancellations.

Going forward, as normality returns, the development of the Mobility Service in the outreach offices of Sheffield and York will continue to grow. The Shopmobility venture has reached the end of its initial two years lease in the Merrion Centre and renewal is under discussion. A second unit has been opened in the White Rose Centre and early indications are very promising.

The centre continued to be supported by a number of volunteers across a range of activities.

In general terms, the Centre's fundamental principles remain the same and much of the work carried out by its staff by way of assessment and provision of advice and information is free of charge to the recipient. This highlights, and is evidence of, the considerable public benefit emanating from the Centre's activities.

3

William Merritt Disabled Living Centre

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

Financial review

Income - in addition to the revenue grants from our local funding bodies, NHS Leeds and Leeds City Council, a significant source of the Centre's income is derived from the activities of the Mobility Service. In addition to a grant from the Department for Transport of £484,841 (net of the clawback), assessment fee income totalled £89,013. However, as was the case in the previous financial year, a clawback of around £93,000 was applied to the grant due to a continued reluctance of clients, many of whom are in the vulnerable category, to come to the Centre following the Covid 19 pandemic. Additional income was raised through training courses run from the Centre for the benefit of health professionals and carers. A final payment of £8,644 was received from the Job Retention Scheme.

Expenditure - staff costs of £585,868 continued to be the main item of revenue expenditure. Other costs were spread across the renting and maintenance of Aire House together with the administration of the Centre's activities and the financial support required for the Mobility Service and the provision of the courses operated from the Centre.

There was an overall operating deficit of £113,433 caused primarily by the £93,000 clawback in the DFT grant due to the reduced number of assessments achieved during the year. This deficit has been met from the Centre's reserves.

Despite another difficult year, the centre is still in a strong financial position with good reserves enabling it to continue to operate and serve the community, helped by the continued support from our funding bodies, NHS Leeds, LCC and DFT.

The Centre's remuneration policy is aimed at endeavouring to maintain parity with similar organisations by providing annual salary increments within affordable levels and better pension provision than the legal requirements under current government guidelines.

RESERVES POLICY

The trustees have examined the charity's requirements for reserves in the light of the main risks to the organisation. It has established a policy whereby the unrestricted funds of the charity should be a minimum of six months staff costs based on the budgeted expenditure for the following year. The figure for staff costs for 2022/23 is expected to be in the region of £700,000. This policy will provide time for the trustees to source new forms of income or reduce costs should there be a significant and unexpected reduction in part of the core funding.

RESULTS

The directors/trustees are only permitted to use the charity's assets solely towards the promotion of the objectives of the charity.

4

William Merritt Disabled Living Centre

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2022

Plans for future periods

The aims of the Centre will focus around the core work involving the provision of information and advice on equipment and services available for disabled people. The trustees will continue to look at ways of strengthening the return from the core business activities and also seeking alternative sources of income, with the aim of adding to reserves to ensure the long-term continuity of the centre. A new initiative, Hubs Mobility Service, has been agreed with the Department of Transport with funding of of £30K p.a. over three years. The objective is to identify a range of services to increase client independence and reduce isolation and loneliness for older and disabled people, particularly for those who are advised against driving. It is hoped to have the project in place by the end of 2022.

Trustees' responsibilities statement

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the applicable Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

5

William Merritt Disabled Living Centre

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2022

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

The trustees' annual report and the strategic report were approved on 28 October 2022 and signed on behalf of the board of trustees by:

D Bruce (Treasurer) Trustee

6

William Merritt Disabled Living Centre

Company Limited by Guarantee

Independent Auditor's Report to the Members of William Merritt Disabled Living Centre

Year ended 31 March 2022

Opinion

We have audited the financial statements of William Merritt Disabled Living Centre (the 'charity') for the year ended 31 March 2022 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charity's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

7

William Merritt Disabled Living Centre

Company Limited by Guarantee

Independent Auditor's Report to the Members of William Merritt Disabled Living Centre (continued)

Year ended 31 March 2022

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

8

William Merritt Disabled Living Centre

Company Limited by Guarantee

Independent Auditor's Report to the Members of William Merritt Disabled Living Centre (continued)

Year ended 31 March 2022

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

9

William Merritt Disabled Living Centre

Company Limited by Guarantee

Independent Auditor's Report to the Members of William Merritt Disabled Living Centre (continued)

Year ended 31 March 2022

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

While planning our audit, we have made enquiries of management and those charged with governance around any actual or potential litigation and claims against the company for non-compliance with specific laws and regulations. The same has been done in respect of any instances of fraud or irregularities. The responses received have been communicated with the engagement team at the planning stage.

We have not been informed of any specific laws or regulatory related issues that could materially impact the financial statements in addition to this, there has been no suspected fraud or irregularities reported to the us.

While planning our audit the engagement partner selected appropriately trained staff to be engaged in the audit and the team are allocated based on their competence and capabilities.

The audit work undertaken is a substantive work based audit approach, reviewing to source documentation where appropriate and includes a review and walkthrough of the systems which management have put in place. These tests are directional. Therefore, they are designed in a way to maximise audit effectiveness and the possible identification of any material fraud, irregularities, or instances of systems and procedure breaches. Our testing did not identify any issues that requires any additional reporting.

These tests and other areas of our audit work are designed to enhance our ability to detect cases of material fraud and certain irregularities. It should be noted that our audit is carried out using a material based approach and therefore does not test every transaction, as such, it would not detect all instances of irregularities and specifically fraud which is inherently more difficult to detect.

10

William Merritt Disabled Living Centre

Company Limited by Guarantee

Independent Auditor's Report to the Members of William Merritt Disabled Living Centre (continued)

Year ended 31 March 2022

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Dale Coleman FCA (Senior Statutory Auditor)

2nd Floor 33 Park Place Leeds LS1 2RY

For and on behalf of Ford Campbell Freedman Limited Chartered accountants & statutory auditor

17 November 2022

11

William Merritt Disabled Living Centre

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 March 2022

			2022		2021
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	5	3,256	–	3,256	4,132
Charitable activities	6	843,984	61,084	905,068	934,974
Other trading activities	7	21,175	–	21,175	904
Investment income	8	7,227	–	7,227	7,962
Other income	9	6,800	–	6,800	–
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Total income		882,442	61,084	943,526	947,972
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Expenditure
Expenditure on raising funds:
Costs of raising funds	10	16,753	–	16,753	13,424
Expenditure on charitable activities	11,12	941,666	79,310	1,020,977	848,157
Other expenditure	13	19,456	–	19,456	20,908
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Total expenditure		977,875	79,310	1,057,186	882,489
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Net (expenditure)/income and net
movement in funds		(95,433)	(18,226)	(113,660)	65,483
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Reconciliation of funds
Total funds brought forward		721,623	21,479	743,102	677,619
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Total funds carried forward		626,190 ৶৶৶৶৶৶৶৶৶	3,253 ৶৶৶৶৶৶৶৶	629,443 ৶৶৶৶৶৶৶৶৶৶৶৶	743,102 ৶৶৶৶৶৶৶৶৶

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 15 to 24 form part of these financial statements.

12

William Merritt Disabled Living Centre

Company Limited by Guarantee

Statement of Financial Position

31 March 2022

		2022		2021
	Note	£	£	£
Fixed assets
Tangible fixed assets	18		101,059	126,326
Investments	19		277,991	297,448
			ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
			379,050	423,774
Current assets
Debtors	20	39,138		39,183
Cash at bank and in hand		348,786		436,098
		ৄৄৄৄৄৄৄৄৄ		ৄৄৄৄৄৄৄৄৄ
		387,924		475,281
Creditors: amounts falling due within one year	21	114,155		132,576
		ৄৄৄৄৄৄৄৄৄ		ৄৄৄৄৄৄৄৄৄ
Net current assets			273,769	342,705
			ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Total assets less current liabilities			652,819	766,479
Creditors: amounts falling due after more than
one year	22		23,377	23,377
			ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Net assets			629,442	743,102
			৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Funds of the charity
Restricted funds			3,253	21,479
Unrestricted funds			626,190	721,623
			ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Total charity funds	24		629,443	743,102
			৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶

These financial statements were approved by the board of trustees and authorised for issue on 28 October 2022, and are signed on behalf of the board by:

D Bruce (Treasurer) Trustee

The notes on pages 15 to 24 form part of these financial statements.

13

William Merritt Disabled Living Centre

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 March 2022

	2022	2021
	£	£
Cash flows from operating activities
Net (expenditure)/income	(113,660)	65,483
Adjustments for:
Depreciation of tangible fixed assets	61,002	80,848
Other interest receivable and similar income	(7,227)	(7,962)
Gains on disposal of tangible fixed assets	(6,800)	–
Accrued (income)/expenses	(18,421)	111,096
Changes in:
Trade and other debtors	45	(2,539)
Trade and other creditors	–	(82,141)
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Cash generated from operations	(85,061)	164,785
Interest received	7,227	7,962
	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Net cash (used in)/from operating activities	(77,834)	172,747
	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Cash flows from investing activities
Purchase of tangible assets	(35,736)	(13,694)
Proceeds from sale of tangible assets	6,802	–
Revaluation of investments	19,456	20,908
	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Net cash (used in)/from investing activities	(9,478)	7,214
	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Net (decrease)/increase in cash and cash equivalents	(87,312)	179,961
Cash and cash equivalents at beginning of year	436,098	256,137
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
Cash and cash equivalents at end of year	348,786	436,098
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶

The notes on pages 15 to 24 form part of these financial statements.

14

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2022

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Aire House, 100 Town Street, Rodley, Leeds, LS13 1HP.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project, commitment or expected costs to hit the profit and loss from fixed assets.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

15

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

16

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

3. Accounting policies (continued)

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold improvements	-	20% straight line
Fixtures and fittings	-	10% straight line
Motor vehicles	-	33% straight line
Computer equipment	-	20% straight line

Investments

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Limited by guarantee

The company is constituted as a company limited by guarantee.

5. Donations and legacies

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2022	Funds	2021
	£	£	£	£
Donations
Donations receivable	3,256	3,256	4,132	4,132
	৶৶৶৶৶৶৶	৶৶৶৶৶৶৶	৶৶৶৶৶৶৶	৶৶৶৶৶৶৶

6. Charitable activities

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2022
	£	£	£
Revenue grants	218,294	–	218,294
DETR grant	484,841	–	484,841
Driving assessment fees	89,013	–	89,013
Courses and exhibitions	43,192	–	43,192
Project funding	–	–	–
Job retention scheme	8,644	–	8,644
Shop mobility	–	61,084	61,084
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
	843,984	61,084	905,068
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶

17

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

6. Charitable activities (continued)

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Revenue grants	217,727	–	217,727
DETR grant	460,287	–	460,287
Driving assessment fees	45,385	–	45,385
Courses and exhibitions	15,996	–	15,996
Project funding	82,141	–	82,141
Job retention scheme	46,006	–	46,006
Shop mobility	–	67,432	67,432
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
	867,542	67,432	934,974
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶

7.	Other trading activities
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Fundraising events	21,175	21,175	904	904
		৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶	৶৶৶৶
8.	Investment income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Bank interest receivable	39	39	331	331
	National savings income bonds	58	58	501	501
	UK Gilts income	7,130	7,130	7,130	7,130
		ৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄ
		7,227	7,227	7,962	7,962
		৶৶৶৶৶৶৶	৶৶৶৶৶৶৶	৶৶৶৶৶৶৶	৶৶৶৶৶৶৶
9.	Other income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Gain on disposal of tangible fixed
	assets held for charity's own use	6,800	6,800	–	–
		৶৶৶৶৶৶৶	৶৶৶৶৶৶৶	৶৶৶৶	৶৶৶৶
10.	Costs of raising funds
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Ball running costs	16,753 ৶৶৶৶৶৶৶৶	16,753 ৶৶৶৶৶৶৶৶	13,424 ৶৶৶৶৶৶৶৶	13,424 ৶৶৶৶৶৶৶৶

18

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

11. Expenditure on charitable activities by fund type

			Unrestricted	Restricted	Total Funds
			Funds	Funds	2022
			£	£	£
	Driving assessments fees, courses & exhibitions and
	shop mobility costs		175,530	39,382	214,913
	Support costs		766,136	39,928	806,064
			ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄৄৄৄ
			941,666	79,310	1,020,977
			৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶৶৶৶
			Unrestricted	Restricted	Total Funds
			Funds	Funds	2021
			£	£	£
	Driving assessments fees, courses & exhibitions and
	shop mobility costs		96,872	16,267	113,138
	Support costs		705,332	29,686	735,019
			ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
			802,204	45,953	848,157
			৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
12.	Expenditure on charitable activities	by activity type
		Activities
		undertaken		Total funds	Total fund
		directly Support costs		2022	2021
		£	£	£	£
	Support costs	–	731,155	731,155	641,022
	Driving assessments fees, courses &
	exhibitions and shop mobility costs	214,913	–	214,913	113,138
	Governance costs	–	74,909	74,909	93,997
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
		214,913	806,064	1,020,977	848,157
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
13.	Other expenditure
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Movement in market value of
	investments	19,456	19,456	20,908	20,908
		৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶
14.	Net (expenditure)/income
	Net (expenditure)/income is stated after charging/(crediting):
				2022	2021
				£	£
	Depreciation of tangible fixed assets			61,002	80,848
	Gains on disposal of tangible fixed assets			(6,800)	–
				৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶

19

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

15. Auditors remuneration

Fees payable for the audit of the financial statements

2022	2021
£	£
6,300 ৶৶৶৶৶৶৶	5,000 ৶৶৶৶৶৶৶

16. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as	The total staff costs and employee benefits for the reporting period are analysed as	follows:
	2022	2021
	£	£
Wages and salaries	513,036	441,315
Social security costs	42,367	37,737
Employer contributions to pension plans	30,465	29,577
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
	585,868 ৶৶৶৶৶৶৶৶৶	508,629 ৶৶৶৶৶৶৶৶৶

The average head count of employees during the year was 24 (2021: 20). The average number of full-time equivalent employees during the year is analysed as follows:

	2022	2021
	No.	No.
Number of staff	24	20
	৶৶৶৶	৶৶৶৶

No employee received employee benefits of more than £60,000 during the year (2021: Nil).

17. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees in the year.

No trustee expenses have been incurred in the year.

20

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

18. Tangible fixed assets

	Land and	Fixtures and	Motor
	buildings	fittings	vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 April 2021	380,131	51,498	38,572	11,672	481,873
Additions	–	–	27,678	8,058	35,736
Disposals	–	–	(5,568)	–	(5,568)
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
At 31 March 2022	380,131	51,498	60,682	19,730	512,041
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Depreciation
At 1 April 2021	285,180	38,577	27,700	4,090	355,547
Charge for the year	46,915	2,312	8,218	3,557	61,002
Disposals	–	–	(5,567)	–	(5,567)
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
At 31 March 2022	332,095	40,889	30,351	7,647	410,982
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
Carrying amount
At 31 March 2022	48,036	10,609	30,331	12,083	101,059
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
At 31 March 2021	94,951	12,921	10,872	7,582	126,326
	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶

19. Investments

	Other
	investments
	£
Cost or valuation
At 1 April 2021	297,448
Additions	–
Fair value movements	(19,457)
	ৄৄৄৄৄৄৄৄৄ
At 31 March 2022	277,991
	৶৶৶৶৶৶৶৶৶
Impairment
At 1 April 2021 and 31 March 2022	–
	৶৶৶৶৶৶৶৶৶
Carrying amount
At 31 March 2022	277,991
	৶৶৶৶৶৶৶৶৶
At 31 March 2021	297,448
	৶৶৶৶৶৶৶৶৶

All investments shown above are held at valuation.

The historic cost of the investments are £307,065 (2020: £307,065).

20. Debtors

	2022	2021
	£	£
Prepayments and accrued income	39,138 ৶৶৶৶৶৶৶৶	39,183 ৶৶৶৶৶৶৶৶

21

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

21. Creditors: amounts falling due within one year

		2022	2021
		£	£
	Accruals and deferred income	114,155	132,576
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
22.	Creditors: amounts falling due after more than one year
		2022	2021
		£	£
	Other creditors	23,377	23,377
		৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶

The above amount relates to grant funding received from Leeds Primary Trust to cover potential redundancy costs following the transfer of staff from the Leeds Primary Trust under TUPE rules. The grant will be repaid as and when staff leave the employment of the Charity or retire.

23. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £30,465 (2021: £29,577).

24. Analysis of charitable funds

Unrestricted funds

					At
		At		31	March 202
	1	April 2021	Income	Expenditure	2
		£	£	£	£
General funds		721,623	882,442	(977,875)	626,190
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
					At
		At		31	March 202
	1	April 2020	Income	Expenditure	1
		£	£	£	£
General funds		677,619 ৶৶৶৶৶৶৶৶৶	880,540 ৶৶৶৶৶৶৶৶৶	(836,536) ৶৶৶৶৶৶৶৶৶	721,623 ৶৶৶৶৶৶৶৶৶

The Property Reserve Fund was in relation to the new premises the charity occupy therefore the only reduction to this reserve is in relation to depreciation of fixed assets. This was fully reduced in the prior year.

22

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

24. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
					At
		At		31	March 202
	1	April 2021	Income	Expenditure	2
		£	£	£	£
Shop mobility		21,479	61,084	(79,310)	3,253
		৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶
					At
		At		31	March 202
	1	April 2020	Income	Expenditure	1
		£	£	£	£
Shop mobility		–	67,432	(45,953)	21,479
		৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶

This restricted fund relates to a new revenue stream for the charity, a grant is received from Leeds City Council and all other income and expenditure relating to this service is to be restricted.

25. Analysis of net assets between funds

		Unrestricted	Restricted	Total Funds
		Funds	Funds	2022
		£	£	£
	Tangible fixed assets	101,059	–	101,059
	Investments	277,991	–	277,991
	Current assets	384,672	3,253	387,925
	Creditors less than 1 year	(114,155)	–	(114,155)
	Creditors greater than 1 year	(23,377)	–	(23,377)
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
	Net assets	626,190	3,253	629,443
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2021
		£	£	£
	Tangible fixed assets	126,326	–	126,326
	Investments	297,448	–	297,448
	Current assets	453,802	21,479	475,281
	Creditors less than 1 year	(132,576)	–	(132,576)
	Creditors greater than 1 year	(23,377)	–	(23,377)
		ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
	Net assets	721,623	21,479	743,102
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶
26.	Analysis of changes in net debt
				At
		At 1 Apr 2021	Cash flows	31 Mar 2022
		£	£	£
	Cash at bank and in hand	436,098	(87,312)	348,786
		৶৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶	৶৶৶৶৶৶৶৶৶

23

William Merritt Disabled Living Centre

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2022

27. Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2022	2021
	£	£
Not later than 1 year	84,000	84,000
Later than 1 year and not later than 5 years	124,000	208,000
	ৄৄৄৄৄৄৄৄৄ	ৄৄৄৄৄৄৄৄৄ
	208,000 ৶৶৶৶৶৶৶৶৶	292,000 ৶৶৶৶৶৶৶৶৶

24