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2023-06-30-accounts

EAST CLEVELAND MS HOME

TRUSTEES’ REPORT AND STATEMENT OF ACCOUNTS

YEAR ENDED 30[TH] JUNE 2023

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 2023

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

Charity number 519232 Company number 2152724 Registered Office: 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 (resigned 15/11/23) Mrs A Barnes (Chair appointed 25/3/24,Trustee appointed 26/6/23) – C V Greenley Secretary Mrs R Hewitt C Johnston P Sotheran MBE (resigned 1/10/23) R Fox (resigned 1/11/23) L Minns C Wallis (resigned 26/2/24) S Dunn (appointed 23/10/23)

Honorary Secretary: C V Greenley Bankers: HSBC Bank PLC, 60 Albert Road, Middlesbrough, TS1 1RS. Virgin Money plc, Jubilee House, Gosforth , NE3 4PL. Auditors: Graham Fitzgerald Azets Audit Services, Wynyard Park House, Wynyard Avenue, Wynyard, TS22 5TB 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 2023

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 2023 was 6 (2022 8).

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.

Mrs Rose Hewitt Mrs Linda Minns

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.

Negotiations with Thirteen Group for a new lease were being finalised with the lease finally being signed in September 2023.

With the effects of Covid 19 diminishing, the Home returned to some kind of normality and enabled us to maintain almost full occupancy for the year. Sadly, our care home manager, Sarah Jemson left to further her career in March 2023 after 3 years service. Since then, we have struggled to find a suitable replacement and have also struggled to find suitable Trustees.

With low occupancy, due to lack of referrals, causing great pressure on the Home’s finances and the difficulty in finding a suitable manager and new Trustees, the decision was taken in February 2024 to close the Home. However this decision was reversed in March 2024 after strong support came from Redcar and Cleveland Council to ensure the short to medium term viability and an undertaking to be pro-active in filling beds.

4

EAST CLEVELAND M S HOME

REPORT OF THE TRUSTEES (CONTINUED)

FINANCIAL REVIEW

Results

The Trust had a net inflow of resources amounting to £100,491 with reserves now standing at £439082. This compares with a net outflow of £79,437 in the previous trading year. This was a much better trading year due to good occupancy levels and despite a sharp increase in the cost of energy caused by global shortages. The costs of using agency staff also dragged on the Lodge’s performance.

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 a large legacy.

After six poor trading years, the Lodge’s finances improved due to better occupancy levels. However, towards the end of the trading year occupancy levels were falling and next year will be challenging. 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 has seen an improvements in its level of reserves, the Trustees still continue to 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:-

Trustee: C V Greenley

Dated 25[th] March 2024

6

EAST CLEVELAND MS HOME

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF EAST CLEVELAND MS HOME FOR THE YEAR ENDED 30[TH] JUNE 2023

Opinion

We have audited the financial statements of East Cleveland MS Home (the charitable company’) for the year ended 30[th] June 2023 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 going forward and the charity is struggling to fill beds, solutions are being sought to secure the financial stability of the company including discussions with the local council. 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 2023

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 Wynyard Park House Wynyard Avenue Wynyard TS22 5TB

Date:……………………… 

10

EAST CLEVELAND MS HOME

STATEMENT OF FINANCIAL ACTIVITIES (including Income & Expenditure Account)

YEAR ENDED 30[TH] JUNE 2023

Restricted Restricted Unrestricted Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
Note £ £ £ £
INCOME AND RECEIPT OF ENDOWMENT
**Income from Donations and Legacies: **
Donations and Gifts - 86807 86807 27261
Grants Receivable 500 - 500 99765
Income from charitable activities:

Fees for residential care		 - 1536215 1536215 1263613
Income from other Trading Activities:
Fundraising and other income - - - 2517
**Investment income: **
Bank interest receivable 3 - 780 780 344
────── ────── ────── ──────
TOTAL INCOME 500 1623802 1624302 1393500
══════ ══════ ══════ ══════
EXPENDITURE
Charitable activities:
Direct Residential and day care costs 500 1508791 1509291 1459977
Other Costs - 14520 14520 12960
────── ────── ────── ──────
Total Expenditure 4 500 1523311 1523811 1472937
══════ ══════ ══════ ══════
Net outgoing/incoming resources - 100491 100491 (79437)
Transfer between funds - - - -
────── ────── ────── ──────
Net movement in Funds - 100491 100491 (79437)
Fund balances brought forward at 1st July 2022 - 338591 338591 418028
────── ────── ────── ──────
Fund balances carried forward at 30th June 2023 - 439082 439082 338591
══════ ══════ ══════ ══════

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 2023

2023 2022
Note £ £ £ £
FIXED ASSETS
Tangible fixed assets 9 83885 84573
CURRENT ASSETS
Stocks 10 1300 975
Debtors 11 137720 123978
Cash at bank and in hand 12 354569 256976
────── ──────
493589 381929
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR 13 (138392) (127911)
────── ──────
NET CURRENT ASSETS 355197 254018
─────── ───────
NET ASSETS 439082 338591
═══════ ═══════
FUNDS
Restricted 15 - -
Unrestricted 16 439082 338591
─────── ───────
439082 338591
═══════ ══════

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:

S Dunn …………………………..

C V Greenley ……………………………

TRUSTEES

Dated 25[th] March 2024

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 2023

Note 2023 2022
£
£
Net cash flow from operating activities 19 112909 (11024)
══════ ══════
Cash flow from investing activities
Payments to acquire tangible fixed assets (16096) (18068)
Receipts from sale tangible fixed assets - 5000
Interest received 780 344
────── ──────
Net cash flow from investing activities (15316) (12724)
══════ ══════
Net increase/(decrease) in cash and cash equivalents 97593 (23748)
Cash and cash equivalents at 1stJuly 2022 256976 280724
───── ─────
Cash and cash equivalents at 30thJune 2023 354569 256976
═════ ═════
Cash and cash equivalents consists of:
Cash at bank and in hand 354569 256976
═════ ═════

13

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2023

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 2023

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 2023

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 organization including discussions with local councils who are offering to fill beds and offer additional funding, 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 2023

3. INVESTMENT INCOME
STMENT INCOME 2023 2022
Total Total
£ £
Interest receivable 780 344
────── ──────
780 344
══════ ══════

4. TOTAL RESOURCES EXPENDED

Basis Charitable Other
of activities costs
allocation 2023 2022
£ £ £ £
Staff Costs Staff time 1227735 - 1227735 1179393
Rent & Rates Direct (5570) - (5570) 23325
Vehicle Expenses Direct 4385 - 4385 4955
Insurance/Licence Direct 19062 - 19062 13864
Catering Direct 46689 - 46689 36241
Maintenance Direct 45066 - 45066 45725
Medical Supplies Direct 31397 - 31397 28684
Energy Direct 73755 - 73755 27683
Administration Direct 25472 - 25472 28164
Audit/Accountancy Direct - 14520 14520 12960
Subscriptions Direct 12401 - 12401 12229
Depreciation (including
Loss on Disposal) Direct 16784 - 16784 19531
Bad Debts Direct 773 - 773 29307
Registration Fees Direct 3158 - 3158 3331
Bank Charges Direct 200 - 200 181
Miscellaneous Direct 7984 - 7984 7364
────── ────── ────── ──────
TOTAL RESOURCES
EXPENDED 1509291 14520 1523811 1472937
══════ ══════ ══════ ══════

Of expenditure of £1523811 (2022:£1472937) £1523311 (2022:£1366022) related to unrestricted and £500 (2022: £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:
2023 2022
£ £
Depreciation/loss on disposal of assets 16784 19531
Auditors remuneration 9970 8820
Other Accountancy fees 4550 4140
═════ ═════

17

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2023

6. TRUSTEES REMUNERATION, EXPENSES AND TRANSACTIONS

The trustees neither received nor waived any emoluments during the year (2022: £ nil). There were no trustee expenses paid (2022: £ nil). No transactions with trustees or connected parties took place during the year (2022: £nil).

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

7. STAFF COSTS 2023 2022
Staff costs were as follows:- £ £
Wages, Salaries, Agency and Training 1148013 1102458
Social Security Costs 63864 61574
Pension Costs 15858 15361
────── ──────
1227735 1179393
══════ ══════

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

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

Fulltime Equivalent
2023 2022
Management and Administration 4 4
Catering 4 4
Domestic and Laundry
 6 6
Nursing and Clinical Lead 8 8
Care Staff 19 19
Drivers/Gardners/Handyman 3 3
───── ─────
44 44
═════ ═════

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 2023

9. TANGIBLE ASSETS

Staff Fixtures,
Room & Fittings Motor Gifted
Annexe Conservatory Equipment Vehicle Assets Total
£ £ £ £ £ £
COST
At 1stJuly 2022 26856 43069 379972 16244 7260 473401
Additions - - 16096 - - 16096
Disposal - - - - - -
────── ────── ────── ────── ────── ──────
At 30thJune 2023 26856 43069 396068 16244 7260 489497
══════ ══════ ══════ ══════ ══════ ══════
DEPRECIATION
At 1stJuly 2022 26856 43069 300003 11640 7260 388828
Disposal - - - - - -
Charge for the year - - 15633 1151 - 16784
────── ────── ────── ────── ────── ──────
At 30thJune 2023 26856 43069 315636 12791 7260 405612
══════ ══════ ══════ ══════ ══════ ══════
NET BOOK VALUE
At 30thJune 2023 - - 80432 3453 - 83885
══════ ══════ ══════ ══════ ══════ ══════
At 30thJune 2022 - - 79969 4604 - 84573
══════ ══════ ══════ ══════ ══════ ══════
10. STOCKS 2023 2022
£ £
Catering stocks 1300 975
═════ ═════
11. DEBTORS 2023 2022
£ £
Trade Debtors 89707 82097
Prepayments and Accrued Income 38863 33220
Other Debtors 9150 8661
───── ─────
137720 123978
═════ ═════

19

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2023

12. BANK AND CASH 2023 2022
£ £
Current Account 207475 110441
Virgin Money 60935 60935
Cambridge & Counties/Shawbrook 85030 85000
Cash in Hand 1129 600
────── ──────
354569 256976
══════ ══════
13. CREDITORS 2023 2022
Amounts falling due within one year £ £
Trade Creditors 51189 40074
Accruals and Other Creditors 76703 79067
Other Creditors–Staff Christmas Club 10500 8770
───── ─────
138392 127911
═════ ═════

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2023 Unrestricted Restricted
Funds Funds Total
£ £ £
Tangible Fixed Assets 83885 - 83885
Net Current Assets 355197 355197
───── ───── ─────
439082 - 439082
═════ ═════ ═════
2022 Unrestricted Restricted
Funds Funds Total
£ £ £
Tangible Fixed Assets 84573 - 84573
Net Current Assets 254018 - 254018
───── ───── ─────
338591 - 338591
═════ ═════ ════

2022

20

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2023

15. RESTRICTED FUNDS
15. RESTRICTED FUNDS 2023 2022
£ £
At beginning of Year - -
Incoming Resources 500 106915
Resources expended (500) (106915)
Transfer between funds - -
────── ──────
- -
══════ ══════

Purpose of Restricted Funds

2023

The restricted fund was a support grant to cover recruitment

2022

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
16. UNRESTRICTED FUNDS 2023 2022
£ £
At beginning of Year 338591 418028
Incoming Resources 1623802 1286585
Resources expended (1523311) (1366022)
Transfer between funds - -
────── ──────
439082 338591
══════ ══════

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 6 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
2023 2022
£ £
Net income/expenditure for the year 100491 (79437)
Interest Received (780) (344)
Depreciation and impairment of tangible fixed assets 16784 19531
(Increase in stock) (325) -
(Increase) Decrease in debtors (13742) 37766
Increase in creditors 10481 11460
───── ─────
Net cash flow from operating activities 112909 (11024)
═════ ═════

21

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2023

2023 2022
INCOME £ £
Residents’ Fees 1536215 1263613
Grants 500 99765
────── ──────
TOTAL INCOME 1536715 1363378
══════ ══════
DIRECT EXPENSES
Salaries, Wages & Oncosts 1212535 1168044
Bad Debts 773 29307
Staff Training 13461 8867
Catering Supplies 46689 36241
Staff Social Fund - Vouchers 1739 2482
────── ──────
TOTAL DIRECT EXPENSES 1275197 1244941
══════ ══════
GROSS SURPLUS 261518 118437
══════ ══════
OVERHEADS
RENT AND RATES
Rent (7488) 17406
Water Rates - 4200
General Rates 1918 1719
───── ─────
(5570) 23325
═════ ═════
FEES AND INSURANCE
Audit and Accountancy Fees 14520 12960
Subscriptions 12401 12229
Bank Charges 200 181
Insurance 18834 13412
Registration Fees 3158 3331
TV Licences 228 452
───── ─────
49341 42565
═════ ═════
VEHICLE EXPENSES
Fuel and Oil 2011 2021
Repair 697 756
Tax and Insurance 1237 1849
Miscellaneous and Travel 441 329
───── ─────
4386 4955
═════ ═════

22

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2023

2023 2022
CLEANING AND MEDICAL SUPPLIES £ £
Laundry Supplies 7579 3855
Cleaning Materials 6335 5225
Medical Consumables 17483 19604
───── ─────
31397 28684
═════ ═════
MAINTENANCE
Property & Equipment Repairs 37623 36267
Office Equipment Repair 7094 12071
Refuse Collection 7443 9458
───── ─────
52160 57796
═════ ═════
ENERGY
Electricity & Gas 73755 27683
───── ─────
73755 27683
═════ ═════
ADMINISTRATION
Telephone and Internet 12763 12263
Advertising 1531 767
Stationery 3279 2223
Postage 114 43
Publications - -
Equipment Rental 690 797
───── ─────
18377 16093
═════ ═════
MISCELLANEOUS
Miscellaneous/Newspapers 5413 3457
Staff Uniforms 1626 2490
Towels and Bedding 567 1210
Aquarium Maintenance and supplies 378 207
───── ─────
7984 7364
═════ ═════

23

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2023

2023 2022
OTHER EXPENSES £ £
Depreciation/Loss on Sale 16784 19531
───── ─────
16784 19531
═════ ═════
TOTAL OVERHEADS 248614 227996
═════ ═════
TRADING SURPLUS/DEFICIT 12904 (109559)
═════ ═════
OTHER INCOME
Fundraising - 2517
Donations Received 86807 27261
Bank Interest Received 780 344
────── ──────
NET SURPLUS/DEFICIT 100491 (79437)
══════ ══════

24