2024-06-30-accounts - East Cleveland M S Home

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EAST CLEVELAND MS HOME

TRUSTEES’ REPORT AND STATEMENT OF ACCOUNTS

YEAR ENDED 30[TH] JUNE 2024

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

EAST CLEVELAND MS HOME REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2024

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 (resigned 22/4/24) 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, resigned 21/1/25) D Fishlock (appointed 22/2/24) T Bethell (appointed 23/09/24) D Charlesworth (appointed 21/1/25) 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

EAST CLEVELAND MS HOME

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 JUNE 2024

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 2024 was 6 (2023 – 6 ).

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.

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 Alison Barnes Mr Clive Greenley

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 one 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.

In February 2024, the Trustees took the decision to close the Home due to continuing low occupancy levels which meant that the charity was making heavy losses. Also, it was proving difficult to attract a suitably qualified manager and new trustees. However the decision was reversed in March following a groundswell of support from the local community, local councillors and MP. Redcar Council guaranteed to support the Lodge over the short term to give the opportunity to turn around our finances.

A new manager was appointed and the Trustees also recruited on a short-term contract a CEO who also acted as the nominated individual. The Trustees are very grateful to Daniel Cleough, our CEO for his commitment and systems he has put in place to strengthen the integrity of the organisation.

EAST CLEVELAND M S HOME

REPORT OF THE TRUSTEES (CONTINUED)

FINANCIAL REVIEW

Results

The Trust had a net outflow of resources amounting to £149072 with reserves now standing at £290010. This compares with a net inflow of £100,491 in the previous trading year. Following on from a successful trading year in 2023, it is disappointing to report that the year under review proved to be so difficult. Occupancy levels were too low to cover the costs of wages and overheads. This was further aggravated by the difficulty in attracting the right quality of manager and a high turnover in care staff which meant a heavy reliance on agency personnel at a high cost. It was clear that the Lodge could not stay in business with the heavy losses and as reported above, a decision was taken to close although this was rescinded a few weeks later.

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.

With the introduction of a new manager in April 2024 and a CEO on a short term contract, good occupancy levels were restored. Also savings were made with the reduction of contracted hours of the ancillary staff. 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. We are due to receive a legacy of some £109000. In addition to our savings the Lodge also has funds of some £86000 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 the support of Redcar Council, if we can maintain improved 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

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.

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:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and 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 assume that the Institution will continue in operation.

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

There is no relevant audit information of which the company’s auditors are unaware; and
The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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: A Barnes

Dated

EAST CLEVELAND MS HOME

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF EAST CLEVELAND MS HOME FOR THE YEAR ENDED 30[TH] JUNE 2024

Opinion

We have audited the financial statements of East Cleveland MS Home (the charitable company’) for the year ended 30[th] June 2024 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:

Give a true and fair view of the state of the charitable company’s affairs as at 30[th] June 2023 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; and
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 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.

EAST CLEVELAND MS HOME

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF EAST CLEVELAND MS HOME FOR THE YEAR ENDED 30[TH] JUNE 2024

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:

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 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:

adequate accounting records have not been kept, 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 or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

EAST CLEVELAND MS HOME

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF EAST CLEVELAND MS HOME FOR THE YEAR ENDED 30[TH] JUNE 2024

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:

Enquiry of management and those charged with governance around actual potential litigation and claims.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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)

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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:………………………

EAST CLEVELAND MS HOME

STATEMENT OF FINANCIAL ACTIVITIES (including Income & Expenditure Account)

YEAR ENDED 30[TH] JUNE 2024

		Restricted	Restricted	Unrestricted	Total	Total
			Funds	Funds	Funds	Funds
			2024	2024	2024	2023
	Note		£	£	£	£
INCOME AND RECEIPT OF ENDOWMENT
**Income from Donations and Legacies: **
Donations and Gifts			-	20063	20063	86807
Grants Receivable			-	-	-	500
*Income from charitable activities:*
Fees for residential care			-	1540463	1540463	1536215
Income from other Trading Activities:
Fundraising and other income			-	3164	3164	-
**Investment income: **
Bank interest receivable		3	-	4498	4498	780
		`──────`		`──────`	`──────`	`──────`
TOTAL INCOME			-	1568188	1568188	1624302
		`══════`		`══════`	`══════`	`══════`
EXPENDITURE
Charitable activities:
Direct Residential and day care costs			-	1697070	1697070	1509291
Other Costs			-	20190	20190	14520
		`──────`		`──────`	`──────`	`──────`
Total Expenditure		4	-	1717260	1717260	1523811
		`══════`		`══════`	`══════`	`══════`
Net outgoing/incoming resources			-	(149072)	(149072)	100491
Transfer between funds			-	-	-	-
		`──────`		`──────`	`──────`	`──────`
Net movement in Funds			-	(149072)	(149072)	100491
Fund balances brought forward at 1st July	2023		-	439082	439082	338591
		`──────`		`──────`	`──────`	`──────`
Fund balances carried forward at 30th June		2024	-	290010	290010	439082
		`══════`		`══════`	`══════`	`══════`

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.

EAST CLEVELAND MS HOME

BALANCE SHEET

AS AT 30[TH] JUNE 2024

			2024		2023
	Note	£	£	£	£
FIXED ASSETS
Tangible fixed assets	9		103027		83885
CURRENT ASSETS
Stocks	10	1400		1300
Debtors	11	132947		137720
Cash at bank and in hand	12	192049		354569
		`──────`		`──────`
		326396		493589
CREDITORS: AMOUNTS FALLING	DUE
WITHIN ONE YEAR	13	(139413)		(138392)
		`──────`		`──────`
NET CURRENT ASSETS			186983		355197
			`───────`		`───────`
NET ASSETS			290010		439082
			`═══════`		`═══════`
FUNDS
Restricted	15		-		-
Unrestricted	16		290010		439082
			`───────`		`───────`
			290010		439082
			`═══════`		`══════`

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:

A Barnes …………………………..

C V Greenley ……………………………

TRUSTEES

Dated

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

EAST CLEVELAND MS HOME STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30[TH] JUNE 2024

	Note	2024	2023
		£	£
Net cash flow from operating activities	19	(127904)	112909
		`══════`	`══════`
Cash flow from investing activities
Payments to acquire tangible fixed assets		(39114)	(16096)
Receipts from sale tangible fixed assets		-	-
Interest received		4498	780
		`──────`	`──────`
Net cash flow from investing activities		(34616)	(15316)
		`══════`	`══════`
Net increase/(decrease) in cash and cash equivalents		(162520)	97593
Cash and cash equivalents at 1stJuly 2023		354569	256976
		`─────`	`─────`
Cash and cash equivalents at 30thJune 2024		192049	354569
		`═════`	`═════`
Cash and cash equivalents consists of:
Cash at bank and in hand		192049	354569
		`═════`	`═════`

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2024

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.

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2024

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.

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2024

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.

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2024

3. INVESTMENT INCOME

Interest receivable

2024	2023
Total	Total
£	£
4498	780
`──────`	`──────`
4498	780
`══════`	`══════`

4. TOTAL RESOURCES EXPENDED

	Basis	Charitable	Other
	of	activities	costs
	allocation			2024	2023
		£	£	£	£
Staff Costs	Staff time	1374968	-	1374968	1227735
Rent & Rates	Direct	17322	-	17322	(5570)
Vehicle Expenses	Direct	4881	-	4881	4385
Insurance/Licence	Direct	19415	-	19415	19062
Catering	Direct	50582	-	50582	46689
Maintenance	Direct	42958	-	42958	45066
Medical Supplies	Direct	29051	-	29051	31397
Energy	Direct	56146	-	56146	73755
Administration	Direct	31334	-	31334	25472
Audit/Accountancy	Direct	-	20190	20190	14520
Subscriptions	Direct	33572	-	33572	12401
Depreciation (including
Loss on Disposal)	Direct	19972	-	19972	16784
Bad Debts	Direct	6860	-	6860	773
Registration Fees	Direct	3371	-	3371	3158
Bank Charges	Direct	136	-	136	200
Miscellaneous	Direct	6502	-	6502	7984
		`──────`	`──────`	`──────`	`──────`
TOTAL RESOURCES
EXPENDED		1697070	20190	1717260	1523811
		`══════`	`══════`	`══════`	`══════`

Of expenditure of £1717260 (2023:£1523811) £1717260 (2023:£1523311) related to unrestricted and £NIL (2023: £500) 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:
	2024	2023
	£	£
Depreciation/loss on disposal of assets	19972	16784
Auditors remuneration	11578	9970
Other Accountancy fees	8612	4550
	`═════`	`═════`

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2024

6. TRUSTEES REMUNERATION, EXPENSES AND TRANSACTIONS

The trustees neither received nor waived any emoluments during the year (2023: £ nil). There were no trustee expenses paid (2023: £ nil). No transactions with trustees or connected parties took place during the year (2023: £nil).

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

STAFF COSTS	2024	2023
Staff costs were as follows:-	£	£
Wages, Salaries, Agency and Training	1292184	1148013
Social Security Costs	66425	63864
Pension Costs	16359	15858
	`──────`	`──────`
	1374968	1227735
	`══════`	`══════`

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

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

	Fulltime	Equivalent
	2024	2023
Management and Administration	4	4
Catering	4	4
Domestic and Laundry	6	6
Nursing and Clinical Lead	8	8
Care Staff	18	19
Drivers/Gardner’s/Handyman	2	3
	`─────`	`─────`
	42	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.

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2024

9. TANGIBLE ASSETS

	Staff		Fixtures,
	Room		& Fittings	Motor	Gifted
	Annexe	Conservatory	Equipment	Vehicle	Assets	Total
	£	£	£	£	£	£
COST
At 1stJuly 2023	26856	43069	396068	16244	7260	489497
Additions	-	-	39114	-	-	39114
Disposal	-	-	-	-	-	-
	`──────`	`──────`	`──────`	`──────`	`──────`	`──────`
At 30thJune 2024	26856	43069	435182	16244	7260	528611
	`══════`	`══════`	`══════`	`══════`	`══════`	`══════`
DEPRECIATION
At 1stJuly 2023	26856	43069	315636	12791	7260	405612
Disposal	-	-	-	-	-	-
Charge for the year	-	-	19109	863	-	19972
	`──────`	`──────`	`──────`	`──────`	`──────`	`──────`
At 30thJune 2024	26856	43069	334745	13654	7260	425584
	`══════`	`══════`	`══════`	`══════`	`══════`	`══════`
NET BOOK VALUE
At 30thJune 2024	-	-	100437	2590	-	103027
	`══════`	`══════`	`══════`	`══════`	`══════`	`══════`
At 30thJune 2023	-	-	80432	3453	-	83885
	`══════`	`══════`	`══════`	`══════`	`══════`	`══════`

10.	STOCKS	2024	2023
		£	£
	Catering stocks	1400	1300
		`═════`	`═════`
11.	DEBTORS	2024	2023
		£	£
	Trade Debtors	101614	89707
	Prepayments and Accrued Income	28782	38863
	Other Debtors	2551	9150
		`─────`	`─────`
		132947	137720
		`═════`	`═════`

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2024

12.	BANK AND CASH	2024	2023
		£	£
	Current Account	188770	207475
	Virgin Money	1086	60935
	Cambridge & Counties/Shawbrook	-	85030
	Cash in Hand	2193	1129
		`──────`	`──────`
		192049	354569
		`══════`	`══════`
13.	CREDITORS	2024	2023
	Amounts falling due within one year	£	£
	Trade Creditors	39774	51189
	Accruals and Other Creditors	95964	76703
	Other Creditors – Staff Christmas Club	3675	10500
		`─────`	`─────`
		139413	138392
		`═════`	`═════`

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2024


2024	Unrestricted	Restricted
	Funds	Funds	Total
	£	£	£
Tangible Fixed Assets	103027	-	103027
Net Current Assets	186983		186983
	─────	─────	─────
	290010	-	290010
	═════	═════	═════
2023	Unrestricted	Restricted
	Funds	Funds	Total
	£	£	£
Tangible Fixed Assets	83885	-	83885
Net Current Assets	355197	-	355197
	─────	─────	─────
	439082	-	439082
	═════	═════	════

2023

EAST CLEVELAND MS HOME NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[TH] JUNE 2024

RESTRICTED FUNDS	2024	2023
	£	£
At beginning of Year	-	-
Incoming Resources	-	500
Resources expended	-	(500)
Transfer between funds	-	-
	`──────`	`──────`
	-	-
	`══════`	`══════`

Purpose of Restricted Funds

2023

The restricted fund was a support grant to cover recruitment

UNRESTRICTED FUNDS	2024	2023
	£	£
At beginning of Year	439082	338591
Incoming Resources	1568188	1623802
Resources expended	(1717260)	(1523311)
Transfer between funds	-	-
	`──────`	`──────`
	290010	439082
	`══════`	`══════`

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
	2024	2023
	£	£
Net income/expenditure for the year	(149072)	100491
Interest Received	(4498)	(780)
Depreciation and impairment of tangible fixed assets	19972	16784
(Increase in stock)	(100)	(325)
(Increase) Decrease in debtors	4773	(13742)
Increase in creditors	1021	10481
	`─────`	`─────`
Net cash flow from operating activities	(127904)	112909
	`═════`	`═════`

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2024

	2024	2023
INCOME	£	£
Residents’ Fees	1540463	1536215
Grants	-	500
	`──────`	`──────`
TOTAL INCOME	1540463	1536715
	`══════`	`══════`
DIRECT EXPENSES
Salaries, Wages & Oncosts	1366966	1212535
Bad Debts	6860	773
Staff Training	6236	13461
Catering Supplies	50582	46689
Staff Social Fund - Vouchers	1766	1739
	`──────`	`──────`
TOTAL DIRECT EXPENSES	1432410	1275197
	`══════`	`══════`
GROSS SURPLUS	108053	261518
	`══════`	`══════`
OVERHEADS
RENT AND RATES
Rent	11253	(7488)
Water Rates	4377	-
General Rates	1693	1918
	`─────`	`─────`
	17323	(5570)
	`═════`	`═════`
FEES AND INSURANCE
Audit and Accountancy Fees	20190	14520
Subscriptions, Professional and Consultancy	33572	12401
Bank Charges	136	200
Insurance	19094	18834
Registration Fees	3371	3158
TV Licences	321	228
	`─────`	`─────`
	76684	49341
	`═════`	`═════`
VEHICLE EXPENSES
Fuel and Oil	1955	2011
Repair	1099	697
Tax and Insurance	1135	1237
Miscellaneous and Travel	692	441
	`─────`	`─────`
	4881	4386
	`═════`	`═════`

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2024

	2024	2023
CLEANING AND MEDICAL SUPPLIES	£	£
Laundry Supplies	4986	7579
Cleaning Materials	8879	6335
Medical Consumables	15186	17483
	`─────`	`─────`
	29051	31397
	`═════`	`═════`
MAINTENANCE
Property & Equipment Repairs	34691	37623
Office Equipment Repair	11051	7094
Refuse Collection	8267	7443
	`─────`	`─────`
	54009	52160
	`═════`	`═════`
ENERGY
Electricity & Gas	56146	73755
	`─────`	`─────`
	56146	73755
	`═════`	`═════`
ADMINISTRATION
Telephone and Internet	13624	12763
Advertising	2078	1531
Stationery	3705	3279
Postage	96	114
Equipment Rental	779	690
	`─────`	`─────`
	20282	18377
	`═════`	`═════`
MISCELLANEOUS
Miscellaneous/Newspapers	3398	5413
Staff Uniforms	1562	1626
Towels and Bedding	1121	567
Aquarium Maintenance and supplies	421	378
	`─────`	`─────`
	6502	7984
	`═════`	`═════`

EAST CLEVELAND MS HOME

INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 30[TH] JUNE 2024

	2024	2023
OTHER EXPENSES	£	£
Depreciation/Loss on Sale	19972	16784
	`─────`	`─────`
	19972	16784
	`═════`	`═════`
TOTAL OVERHEADS	284850	248614
	`═════`	`═════`
TRADING SURPLUS/DEFICIT	(176797)	12904
	`═════`	`═════`
OTHER INCOME
Catering Income	3164	-
Donations Received	20063	86807
Bank Interest Received	4498	780
	`──────`	`──────`
NET (DEFICIT)/SURPLUS	(149072)	100491
	`══════`	`══════`