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2022-06-30-accounts

EAST CLEVELAND MS HOME

TRUSTEES’ REPORT AND STATEMENT OF ACCOUNTS

YEAR ENDED 30[TH] JUNE 2022

COMPANY LIMITED BY GUARANTEE (The Company does not have a share capital)

REGISTERED CHARITY NUMBER 519232 COMPANY NUMBER : 2152724

EAST CLEVELAND MS HOME

Contents
Pages
Report of the Trustees 2-6
Report of the Auditors 7-10
Statement of financial activities 11
Balance Sheet 12
Statement of cash flows 13
Notes forming part of the financial statements 14-21
Income & expenditure account –detailed analysis 22-24

1

EAST CLEVELAND MS HOME REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2022

The East Cleveland MS Home is also known as the Ann Charlton Lodge.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charities governing document, the Companies Act 2016 and “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 (FRS102) effective 1[st] January 2019

REFERENCE & ADMINISTRATIVE DETAILS

Registered Office:

Charity number 519232 Company number 2152724 Edenhall Grove REDCAR TS10 4PR

Trustees:

The trustees are directors of the Company for the purpose of Company law. The trustees serving during the year and up to the date of this report:-

P W Wilson - Chairman C V Greenley – Secretary Mrs R Hewitt M Thompson (resigned 1/1/23) C Johnston (appointed 21/9/21) P Sotheran MBE R Fox L Minns (appointed 28/9/21) Mrs Deborah Dobbing (resigned 12/10/21) C Wallis (Appointed 12/12/2022)

Honorary Secretary: C V Greenley Bankers: HSBC Bank PLC, 2 West Dyke Road, Redcar, TS10 1EA. Virgin Money plc, Jubilee House, Gosforth , NE3 4PL. Auditors: Graham Fitzgerald Azets Audit Services, New Garth House , Upper Garth Gardens Guisborough TS14 6HA Solicitors: Cygnet Law Portland House West Dyke Road REDCAR TS10 1DH

2

EAST CLEVELAND MS HOME

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 JUNE 2022

STRUCTURE, GOVERNANCE & MANAGEMENT

Governing Document

The charity is a charitable company limited by guarantee and was set up 7 May 1987. It is governed by a memorandum and articles of association. Its objects are to bring relief to the sufferers of Multiple Sclerosis and other diseases of the central nervous system in Cleveland and the surrounding area.

Appointment of trustees

As set out in the Articles of Association, trustees are appointed by the Board of Trustees and every year one third of the trustees shall retire from office and may put themselves forward for re-election at the Annual General Meeting. Also any new trustees elected during the year shall only hold office until the next following Annual General Meeting and shall then be eligible for re-election.

All members are circulated with invitations to nominate trustees prior to the AGM advising them of the retiring trustees and requesting nominations for the AGM.

The Trustees maintain an ‘equal opportunity’ policy whether it is age, sex, ethnicity or disability with regard to recruiting new Trustees and work to maintain a balance of experience and skills. All candidates are required to make a formal written application, giving the names of two suitable referees; they are also required to undergo an enhanced DBS check before being interviewed by a panel of Trustees who will assess the suitability of the candidate.

Trustee induction and training

New trustees undergo an orientation day to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. During the induction day they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The board of trustees administers the charity. The Trustees meet every month to review operations and to make any decisions required on the running of the Home. Members of the Home guarantee to contribute an amount not exceeding £1 to the assets of the Home in the event of winding up. The total number of such guarantees at 30[th] June 2022 was 8 (2021 – 5).

Investment Powers, Policy and Performance

The Trustees investment powers are governed by the Memorandum and Articles of Association which permits the Home’s funds not immediately required for its purposes to be invested in any such investments, securities or property as may be thought fit.

The Board’s policy is to invest in high interest savings accounts and low risk investments, such as investment in a portfolio of stocks and shares in blue chip companies specially tailored for charitable companies.

The Home’s investments have continued to be managed in conformity with our policy and the Memorandum and Articles of Association and their performance for the year has been in line with our expectations, thanks to the expert advice of our investment advisor and the close control exercised by the management team.

3

EAST CLEVELAND M S HOME

REPORT OF THE TRUSTEES (CONTINUED)

Risk Review

Through the regular involvement in the management of the Home, the Trustees are aware of the risks involved in running the Home. Policies and procedures are in place to mitigate these risks. An annual budget for the year ahead is in place to guide the Trustees and is regularly reviewed. Internal risks are minimised by the implementation of procedures for the authorisation of all transactions and projects, to ensure the consistent quality of delivery for all operational aspects of the Lodge. These procedures are periodically reviewed to ensure that they still meet the needs of the Home and requirements of the regulatory body.

Re-election of Trustees

In accordance with clause 31 and 34 of the Articles of Association, the under mentioned resign as Trustees and offer themselves for re-election.

Mr P W Wilson Mr P Sotheran MBE Mrs R Fox

OBJECTIVES

Objectives

The Trust was established for the relief of sickness in persons suffering from Multiple Sclerosis in Cleveland and the surrounding area, through the provision of a residential care home offering long and short stay accommodation, together with day care facilities. The Home now looks after not only people with multiple sclerosis but all conditions of the central nervous system. Day care facilities are no longer available. The Trust is registered as a care home with nursing and currently looks after 24 residents and has 1 respite room.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives in planning its future activities

ACHIEVEMENTS & PERFORMANCE

Achievements during the Year

The Trustees have been active in giving guidance where required on the Home’s activities and business planning including monthly inspections of the Home where every facet of the day to day running of the organisation is scrutinised and audited.

Once again the activities of the Lodge have been greatly affected by the impact of Covid19 but to the great credit of the management and staff, the residents, by and large, have been kept clear of Covid.

During the year, a new computerised system has been introduced to maintain and update care plans which has facilitated more accurate record keeping and improved efficiency. Last year, we commented on the negotiation of a new lease which is yet to be finalised but general agreement has been reached and the lease should be ready for signing imminently. In the meantime, Thirteen Group has replaced the roof and velux windows at great cost which was covered by Thirteen themselves for which we are very grateful.

4

EAST CLEVELAND M S HOME

REPORT OF THE TRUSTEES (CONTINUED)

FINANCIAL REVIEW

Results

The Trust had a net outflow of resources amounting to £79,437 with reserves now standing at £338,591. This compares with a net outflow of £77,363 in the previous trading year. This was another very difficult year due to the impact of Covid which meant that, at times, we were not able to take in new residents. This adversely affected our fee income. Fortunately, local councils continued to supply grants for most of the year under review to offset some of the extra staff costs incurred as a result of Covid. However, we still spent £157,927 on agency staff to cover for absences against a budget of £100,000.

The statement of Financial Activities on page 11 shows the Home’s income and how it has been spent during the year. The Trustees are very grateful for the support received through the efforts of its staff in fundraising as well as other benefactors, including Middlesbrough Voluntary Development Agency who have generously supported our work.

After five poor trading years, the Lodge’s finances have come under increasing strain due, mainly, to low occupancy levels. However, improved funding was negotiated with Redcar Council in November 2021 and, looking ahead, with much better occupancy levels being seen, the picture is improving. Meanwhile, it is essential to maintain the continuing financial support of the public to maintain our excellent level of service and more focus is being placed on increased sponsorship and fundraising. In addition to our savings the Lodge also has funds of some £86,000 lodged with Thirteen Group to cover any major repairs or refurbishment to the external buildings.

PLANS FOR FUTURE PERIODS

Future Strategy

This financial year demonstrates once again the need for caution and careful control of expenditure. Our level of reserves are much depleted but with increased funding having been agreed with Redcar Council, if we can improve occupancy levels, then we should be able to start to build up reserves again. The Trustees continue to look at ways to reduce staffing costs through restructuring and efficiency savings and to have better systems in place, including a new website, to attract future clients. Further the Trustees are working hard to strengthen the Board of Trustees with a view to bring in more expertise and new ideas including increased focus on fundraising. We draw your attention to the going concern accounting policy on page 16, this sets out our current position in respect of the going concern of the organisation.

Reserves Policy - Funds

Whilst the Lodge continues to see a decline in its level of reserves, the Trustees monitor closely the investment strategy to maximise income and protect, as far as is possible, these reserves so as to guarantee the future of the Ann Charlton Lodge for the foreseeable future. Prompt action is taken to address adverse trends.

5

EAST CLEVELAND M S HOME

REPORT OF THE TRUSTEES (CONTINUED)

Statement of trustees Responsibilities for Preparing Accounts

The Trustees (who are also Directors of the East Cleveland MS Home for the purposes of Charity and Company law) are responsible for preparing the Trustees Report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company and Charity law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Institution and of the incoming resources and application of the same, including income and expenditure, of the Institution for that period. In preparing those financial statements the Trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Institution 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 Institution and hence for taking reasonable steps for the prevention of fraud and other irregularities.

Statement of Disclosure of Information to Auditors

Auditors

Azets Audit Services were re-appointed as the Home’s auditors during the year and have expressed their willingness to continue in that capacity.

Approved by the Trustees and signed on their behalf by:-

Chairman: P W Wilson

Dated 24[th] April 2023

6

EAST CLEVELAND MS HOME

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF EAST CLEVELAND MS HOME FOR THE YEAR ENDED 30[TH] JUNE 2022

Opinion

We have audited the financial statements of East Cleveland MS Home (the charitable company’) for the year ended 30[th] June 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ] (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Material uncertainty relating to going concern

We draw attention to note 1 in the financial statements (“Going Concern”), which indicates that the company is in a position where losses are being incurred and solutions are being sought to secure the financial stability of the company. As stated in note 1, at the present time there is a material uncertainty that casts doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

7

EAST CLEVELAND MS HOME

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF EAST CLEVELAND MS HOME FOR THE YEAR ENDED 30[TH] JUNE 2022

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. 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:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. 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:

8

EAST CLEVELAND MS HOME

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF EAST CLEVELAND MS HOME FOR THE YEAR ENDED 30[TH] JUNE 2022

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees 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 company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities including fraud is detailed below:

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

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

9

EAST CLEVELAND MS HOME

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EAST CLEVELAND MS HOME

Auditor’s responsibilities for the audit of the financial statements (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

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

Graham Fitzgerald BA FCA DChA Senior Statutory auditor For and on behalf of Azets Audit Services New Garth House Upper Garth Gardens Guisborough TS14 6HA

Date:……………………… 

10

EAST CLEVELAND MS HOME

STATEMENT OF FINANCIAL ACTIVITIES (including Income & Expenditure Account)

YEAR ENDED 30[TH] JUNE 2022

Restricted Restricted Unrestricted Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
Note £ £ £ £
INCOME AND RECEIPT OF ENDOWMENT
**Income from Donations and Legacies: **
Donations and Gifts 7150 20111 27261 5410
Grants Receivable 99765 - 99765 66236
Income from charitable activities:

Fees for residential care		 - 1263613 1263613 1231033
Income from other Trading Activities:
Fundraising and other income - 2517 2517 -
**Investment income: **
Bank interest receivable 3 - 344 344 216
────── ────── ────── ──────
TOTAL INCOME 106915 1286585 1393500 1302895
══════ ══════ ══════ ══════
EXPENDITURE
Charitable activities:
Direct Residential and day care costs 106915 1353062 1459977 1362552
Other Costs - 12960 12960 17706
────── ────── ────── ──────
Total Expenditure 4 106915 1366022 1472937 1380258
══════ ══════ ══════ ══════
Net outgoing/incoming resources - (79437) (79437) (77363)
Transfer between funds - - - -
────── ────── ────── ──────
Net movement in Funds - (79437) (79437) (77363)
Fund balances brought forward at 1st July 2021 - 418028 418028 495391
────── ────── ────── ──────
Fund balances carried forward at 30th June 2022 - 338591 338591 418028
══════ ══════ ══════ ══════

The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities. The notes on pages 14 to 21 form part of these accounts.

11

EAST CLEVELAND MS HOME

BALANCE SHEET

AS AT 30[TH] JUNE 2022

2022 2021
Note £ £ £ £
FIXED ASSETS
Tangible fixed assets 9 84573 91036
CURRENT ASSETS
Stocks 10 975 975
Debtors 11 123978 161744
Cash at bank and in hand 12 256976 280724
────── ──────
381929 443443
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR 13 (127911) (116451)
────── ──────
NET CURRENT ASSETS 254018 326992
─────── ───────
NET ASSETS 338591 418028
═══════ ═══════
FUNDS
Restricted 15 - -
Unrestricted 16 338591 418028
─────── ───────
338591 418028
═══════ ══════

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime

The financial statements on pages 11 to 21 were approved and authorised for issue by the trustees on and signed on their behalf by:

P W Wilson …………………………..

C V Greenley ……………………………

TRUSTEES

Dated 24[th] April 2023

The notes on pages 14 to 21 form part of these accounts.

12

EAST CLEVELAND MS HOME STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30[TH] JUNE 2022

Note 2022 2021
£
£
Net cash flow from operating activities 19 (11024) (101)
══════ ══════
Cash flow from investing activities
Payments to acquire tangible fixed assets (18068) (17347)
Receipts from sale tangible fixed assets 5000 -
Interest received 344 216
Dividends received - -
────── ──────
Net cash flow from investing activities (12724) (17131)
══════ ══════
Net increase/(decrease) in cash and cash equivalents (23748) (17232)
Cash and cash equivalents at 1stJuly 2022 280724 297956
───── ─────
Cash and cash equivalents at 30thJune 2022 256976 280724
═════ ═════
Cash and cash equivalents consists of:
Cash at bank and in hand 256976 280724
═════ ═════

13

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022

1. ACCOUNTING POLICIES

Charity Information

East Cleveland MS Home is a private company limited by guarantee incorporated in England and Wales. The registered office is Edenhall Grove, Redcar, TS10 4PR. The charity constitutes a public benefit entity as defined by FRS102.

Accounting convention

These accounts have been prepared in accordance with FRS102 “The Financial Reporting Standard applicable in the UK and Ireland’ (“FRS102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for Charities applying FRS102 and UK Generally Accepted Accounting Practice effective 1[st] January 2019.

The accounts are prepared in sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Charitable Funds

Unrestricted funds are available for use at the discretion of the trustees in the furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of restricted funds are set out in the notes to the accounts.

Incoming Resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that the income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require the deferral of the amount. Income tax recoverable in relation to donations received under gift aid or deeds of covenant is recognised at the time of donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of VAT and other sales related taxes.

14

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022

1. ACCOUNTING POLICIES (Continued)

Tangible Fixed Assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Conservatory & Staff Room Annexe 25 years Gifted Assets 10 years Fixtures, Fittings & Equipment 10 years Motor Vehicle 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the net income for the year.

Recoverable amount is the higher of fair value, less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than the carrying amount, the carrying amount of the asset is reduced to the recoverable amount immediately in income/expenditure for the year, unless the relevant asset is carried in at a revalued amount, in which case the impairment loss is treated as revaluation decrease.

Recognised impairment losses are reversed if and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as revaluation increase.

Investments

Investments are recognised initially at fair value which is normally the transaction value excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in “net gains / (losses) on investments” in the SOFA as the shares are publically traded and their fair value can be measured reliably.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost comprises direct materials and where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured at cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

15

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022

1. ACCOUNTING POLICIES (Continued)

Basic Financial Assets

Basic financial assets which include debtors, cash and bank balances, are initially measured at transaction price including transaction costs and subsequently carries at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest. Financial assets classified as receivable within 1 year are not amortised.

Basic Financial Liabilities

Basic Financial Liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within 1 year are not amortised. Debt instruments are subsequently measured at amortised cost, using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

Employee Benefits

When employees have rendered service to the charity, short term benefits to which the employees are Entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The charity operates a defined contribution plan for the benefit of its employees. Contributions are charged as they become payable.

Going Concern

The financial statements have been prepared on a going concern basis, however we are currently in a loss making position and there are some uncertainties around the level of future levels of income and expenditure. Management and trustees are actively engaged in strategies to maximise revenues and minimise costs to secure the medium to long term future of the organisation, however until discussions and negotiations are concluded and key decisions taken, there remains some uncertainty as to our financial stability.

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates.

The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision effects only that period, or in the period of revision and future periods where the provision effects both current and future periods.

16

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022

3. INVESTMENT INCOME

Interest receivable

2022 2021
Total Total
£ £
344 216
────── ──────
344 216
══════ ══════

4. TOTAL RESOURCES EXPENDED

Basis Charitable Other
of activities costs
allocation 2022 2021
£ £ £ £
Staff Costs Staff time 1179393 - 1179393 1070257
Rent & Rates Direct 23325 - 23325 24656
Vehicle Expenses Direct 4955 - 4955 6784
Insurance/Licence Direct 13864 - 13864 9432
Catering Direct 36241 - 36241 35081
Maintenance Direct 45725 - 45725 50548
Medical Supplies Direct 28684 - 28684 47097
Energy Direct 27683 - 27683 23254
Administration Direct 28164 - 28164 22125
Audit/Accountancy Direct - 12960 12960 17706
Subscriptions Direct 12229 - 12229 11502
Depreciation (including
Loss on Disposal) Direct 19531 - 19531 24051
Bad Debts Direct 29307 - 29307 25845
Registration Fees Direct 3331 - 3331 3268
Bank Charges Direct 181 - 181 206
Miscellaneous Direct 7364 - 7364 8446
────── ────── ────── ──────
TOTAL RESOURCES
EXPENDED 1459977 12960 1472937 1380258
══════ ══════ ══════ ══════

Of expenditure of £1472937 (2021:£1380258) £1366022 (2021:£1318817) related to unrestricted and £106915 (2021: £61441) related to restricted funds.

5. NET INCOMING RESOURCES FOR THE YEAR

This is stated after charging:

5.
NET INCOMING RESOURCES FOR THE YEAR
This is stated after charging:
2022 2021
£ £
Depreciation/loss on disposal of assets 19531 24051
Auditors remuneration 8820 5496
Other Accountancy fees 4140 12210
═════ ═════

17

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022

6. TRUSTEES REMUNERATION, EXPENSES AND TRANSACTIONS

The trustees neither received nor waived any emoluments during the year (2021: £ nil). There were no trustee expenses paid (2021: £ nil). No transactions with trustees or connected parties took place during the year (2021: £nil).

The Home is covered under its general insurance policy for any actions of its trustees.

7. STAFF COSTS 2022 2021
Staff costs were as follows:- £ £
Wages, Salaries, Agency and Training 1102458 999044
Social Security Costs 61574 56666
Pension Costs 15361 14547
────── ──────
1179393 1070257
══════ ══════

No employee received emoluments of more than £60,000.

The average number of persons employed during the year, analysed by

Fulltime Equivalent
2022 2021
Management and Administration 4 2.5
Catering 4 3.5
Domestic and Laundry 6 4
Nursing and Clinical Lead 8 8
Care Staff 19 20
Drivers/Gardners/Handyman 3 2.5
───── ─────
44 40.5
═════ ═════

8. TAXATION

The trust is a registered charity and as such is exempt from Income Tax, Corporation Tax or Capital Gains Tax on its charitable activities.

18

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022

9. TANGIBLE ASSETS

Staff Fixtures,
Room & Fittings Motor Gifted
Annexe Conservatory Equipment Vehicle Assets Total
£ £ £ £ £ £
COST
At 1stJuly 2021 26856 43069 537809 44139 7260 659133
Additions - - 18068 - - 18068
Disposal - - (175905) (27895) - (203800)
────── ────── ────── ────── ────── ──────
At 30thJune 2022 26856 43069 379972 16244 7260 473401
══════ ══════ ══════ ══════ ══════ ══════
DEPRECIATION
At 1stJuly 2021 25776 43069 454942 37050 7260 568097
Disposal - - (170706) (26945) - (197651)
Charge for the year 1080 - 15767 1535 - 18382
────── ────── ────── ────── ────── ──────
At 30thJune 2022 26856 43069 300003 11640 7260 388828
══════ ══════ ══════ ══════ ══════ ══════
NET BOOK VALUE
At 30thJune 2022 - - 79969 4604 - 84573
══════ ══════ ══════ ══════ ══════ ══════
At 30thJune 2021 1080 - 82867 7089 - 91036
══════ ══════ ══════ ══════ ══════ ══════
10. STOCKS 2022 2021
£ £
Catering stocks 975 975
═════ ═════
11. DEBTORS 2022 2021
£ £
Trade Debtors 82097 100331
Prepayments and Accrued Income 33220 50872
Other Debtors 8661 10541
───── ─────
123978 161744
═════ ═════

19

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022

12. BANK AND CASH 2022 2021
£ £
Current Account 110441 109009
Virgin Money 60935 85935
CAF (Shawbrook) 85000 85000
Cash in Hand 600 780
────── ──────
256976 280724
══════ ══════
13. CREDITORS 2022 2021
Amounts falling due within one year £ £
Trade Creditors 40074 35155
Accruals and Other Creditors 79067 73211
Other Creditors – Staff Christmas Club 8770 8085
───── ─────
127911 116451
═════ ═════
14. ANALYSIS OF NET ASSETS BETWEEN FUNDS
2022 Unrestricted
Restricted
Funds Funds Total
£ £ £
Tangible Fixed Assets 84573 - 84573
Net Current Assets 254018 - 254018
───── ───── ─────
338591 - 338591
═════ ═════ ═════
2021 Unrestricted
Restricted
Funds Funds Total
£ £ £
Tangible Fixed Assets 91036 - 91036
Net Current Assets 326992 - 326992
───── ───── ─────
418028 - 418028
═════ ═════ ════

20

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2022

15. RESTRICTED FUNDS
15. RESTRICTED FUNDS 2022 2021
£ £
At beginning of Year - -
Incoming Resources 106915 64378
Resources expended (106915) (61441)
Transfer between funds - (2937)
────── ──────
- -
══════ ══════

Purpose of Restricted Funds

The restricted funds relate to grants received from local councils of £99765 in respect of Infection control , Rapid testing support, Lateral flow testing national living wage increases and training. There were also restricted donations of £7150 specifically for the purpose of covering cost of macerators, weighing hoists, resident activities, slings and refurbishment. These funds had all been expended by the year end.

16. UNRESTRICTED FUNDS 2022 2021
£ £
At beginning of Year 418028 495391
Incoming Resources 1286585 1238517
Resources expended (1366022) (1318817)
Transfer between funds - 2937
────── ──────
338591 418028
══════ ══════

17. TRUSTEE CONTRIBUTION

Every Member of the Trust undertakes to contribute to the assets of the Trust in the event of its being wound up, while he or she is a member, or within one year after he or she ceased to be a member, for payments of the debts and liabilities of the Trust contracted before he or she ceased to be a member, and of the costs, charges and expenses of winding up and for the adjustment or the rights of the contributories among themselves, such amount as may be required not exceeding one pound. There are 7 members.

18. RELATED PARTY TRANSACTIONS

There were no transactions with related parties in the period that require disclosure under FRS102.

19 . RECONCILIATION OF NET INCOME/EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2022 2021
£ £
Net expenditure for the year (79437) (77363)
Interest Received (344) (216)
Depreciation and impairment of tangible fixed assets 19531 24051
Decrease in stock - 48
Decrease in debtors 37766 16994
Increase in creditors 11460 36385
───── ─────
Net cash flow from operating activities (11024) (101)
═════ ═════

21

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2022

2022 2021
INCOME £ £
Residents’ Fees 1263613 1231033
Grants 99765 66236
────── ──────
TOTAL INCOME 1363378 1297269
══════ ══════
DIRECT EXPENSES
Salaries, Wages & Oncosts 1168044 1059287
Bad Debts 29307 25845
Staff Training 8867 9505
Catering Supplies 36241 35081
Staff Social Fund - Vouchers 2482 1465
────── ──────
TOTAL DIRECT EXPENSES 1244941 1131183
══════ ══════
GROSS SURPLUS 118437 166086
══════ ══════
OVERHEADS
RENT AND RATES
Rent 17406 19091
Water Rates 4200 3830
General Rates 1719 1735
───── ─────
23325 24656
═════ ═════
FEES AND INSURANCE
Audit and Accountancy Fees 12960 17706
Subscriptions 12229 11502
Bank Charges 181 206
Insurance 13412 9144
Registration Fees 3331 3268
TV Licences 452 288
───── ─────
42565 42114
═════ ═════
VEHICLE EXPENSES
Fuel and Oil 2021 1558
Repair 756 2082
Tax and Insurance 1849 2296
Miscellaneous and Travel 329 848
───── ─────
4955 6784
═════ ═════

22

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2022

2022 2021
CLEANING AND MEDICAL SUPPLIES £ £
Laundry Supplies 3855 7513
Cleaning Materials 5225 5387
Medical Consumables 19604 34197
───── ─────
28684 47097
═════ ═════
MAINTENANCE
Property & Equipment Repairs 36267 39361
Office Equipment Repair 12071 5593
Refuse Collection 9458 11186
───── ─────
57796 56140
═════ ═════
ENERGY
Electricity & Gas 27683 23254
───── ─────
27683 23254
═════ ═════
ADMINISTRATION
Telephone and Internet 12263 10387
Advertising 767 874
Stationery 2223 4380
Postage 43 95
Publications - -
Equipment Rental 797 797
───── ─────
16093 16533
═════ ═════
MISCELLANEOUS
Miscellaneous/Newspapers 3457 4534
Staff Uniforms 2490 2594
Towels and Bedding 1210 1152
Resident Spending - -
Aquarium Maintenance and supplies 207 166
───── ─────
7364 8446
═════ ═════

23

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2022

2022 2021
OTHER EXPENSES £ £
Depreciation/Loss on Sale 19531 24051
───── ─────
19531 24051
═════ ═════
TOTAL OVERHEADS 227996 249075
═════ ═════
TRADING DEFICIT (109559) (82989)
═════ ═════
OTHER INCOME
Fundraising 2517 -
Donations Received 27261 5410
Bank Interest Received 344 216
────── ──────
NET DEFICIT (79437) (77363)
══════ ══════

24