## **LINCOLNSHIRE HOUSE ASSOCIATION**
**Financial statements**
**For the year ended**
**31 March 2024**
**Registered company number: 2262217 Registered charity number: 700717**
## **LINCOLNSHIRE HOUSE ASSOCIATION**
## **Financial statements for the year ended 31 March 2024**
|**CONTENTS**|**PAGE**|
|---|---|
|Executive Council’s report|1|
|Independent auditor’s report|6|
|Statement of financial activities|10|
|Income and expenditure account|11|
|Balance sheet|12|
|Statement of cash flows|13|
|Notes to the financial statements|14|
|The following pages do not form part of the statutory accounts:||
|General account|22|
|Activities income and expenditure account|23|
|Power chair account|23|
|The Wish Appeal Fund|24|
**LINCOLNSHIRE HOUSE ASSOCIATION**
1
## **Executive Council’s report for the year ended 31 March 2024**
The council are pleased to present their annual directors’ report together with the audited financial statements of the charity for the year ending 31 March 2024 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 (FRS 102) published in October 2019.
**Reference and administrative information**
Charity name: Lincolnshire House Association Charity registration number: 700717 Company registration number: 2262217 Registered office and operational address: Lincolnshire House Association Brumby Wood Lane Scunthorpe North Lincolnshire, DN17 1AF
The members of the Executive Council at the date of this report and who served during the year were as follows:
Mrs S K Eynott (Secretary) Mr M Burnett (resigned 13 September 2023) Mr N C Sofroniou Mr B G Taylor Mr R C Eynott Miss G Smith Ms I V Crowther Mrs W Liles Mrs L Haresign Mrs J Hodge Mr A Cheffings (appointed 13 September 2023) Mr S I Jervis (appointed 13 November 2023)
## Manager
Mr I Millard
## Auditors
RNS Chartered Accountants, 50-54 Oswald Road, Scunthorpe, DN15 7PQ
## Bankers
HSBC Bank plc, 84 High Street, Scunthorpe, North Lincolnshire, DN15 6HQ
## Solicitors
The Company has not formally appointed solicitors but uses a number of local firms as the need arises and depending upon the expertise required.
**LINCOLNSHIRE HOUSE ASSOCIATION**
2
## **Executive Council’s report for the year ended 31 March 2024** _**(continued)**_
## **Objectives and activities**
Lincolnshire House provides high quality residential accommodation and day care together with respite care for persons with cerebral palsy and associated or similar disabilities. Care services include education, treatments and the promotion of independence together with the necessary advice and support.
The policies adopted in furtherance of these aims are:
- a) We expend Local Authority, Social Security Benefits funding and other sundry income in a prudent manner for the purpose of the day to day running of Lincolnshire House.
- b) We organise fund raising events, which, together with donations and any surplus designated from the general fund to the WISH Appeal, are to be applied to the construction of further residential accommodation either in the local community or on our existing site.
- c) Lincolnshire House continues to improve the facilities provided for the residences, day attendees and those on respite care. By a continuous programme of staff training we aim to improve on our existing high standards of care.
- d) To widen the experiences of our service users we are establishing relationships with other similar organisations in the local area by arranging regular interchange visits. We will expand this activity in the coming year.
- e) To help further improve our service and ensure continuation of our quality level we continue to address concerns and comments arising from our regular quality assurance surveys.
In shaping our objectives for the year and planning our activities, the council have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.
## **STRATEGIC REPORT**
## **Achievements and performance**
The Wish Appeal income has remained similar at £14,617 compared to £13,166 the previous year. £10,871 was raised through fundraising events and £3,746 was donated.
The 200 club has raised £4,370 Fire Walk £2,567 Horse Racing £1,006 Summer Fete £1,640
These were the fundraising events along with support from car boot sales and the Xmas fayre. Thank you to everyone who has supported our fundraising.
Last year we completed the extension to the activities. The new facilities include a new training room, exercise room, toilets, changing room with shower and the hot tub room. This facility is proving to be a great addition to the wonderful facilities that we already have at Lincolnshire House. The Hot Tub is being used by both residents and Day service users. This has proved to be an enjoyable experience and has many therapeutic values. Later in 2024 we hope to install the swim spa, which everyone is excited about.
Like the rest of the care industry, we continue to slowly recover from Covid. Although we are offering respite it remains limited due to issues recruiting staff. Day care has returned to normal and many more activities are being offered to everyone.
There has not been an inspection from CQC as this is monitored with regular assessments, our rating remains good. We have received the annual validation by North Lincolnshire Council, no issues or concerns were raised.
Residential fees have increased on average by 7%. This has resulted in staff receiving a 7% pay increase ensuring the staff are paid above the living wage.
**LINCOLNSHIRE HOUSE ASSOCIATION**
3
## **Executive Council’s report for the year ended 31 March 2024** _**(continued)**_
We continue to invest and always look at ways to improve the accommodation. In the past year we have revamped three en-suites, this is a continuous programme. We are now seeing the benefits of investing in solar energy and air source heating; on average we are saving £1,000 per month. We have also installed air conditioning units in several buildings, which will help the residents feel more comfortable in the warmer climate.
In the past year there have been three new residents who have come to live permanently at Lincolnshire House.
## Key performance indicators
The Executive Council monitors the number of residents and day care attendees being housed and supported by the charity. The average numbers are:
|Permanent residents
Regular day care attendees
**Financial review**|**2024**
No
35
10|**2023**
No
34
4|
|---|---|---|
During the period under review, donations and other sundry income into the restricted fund for the WISH Appeal amounted to £14,617. £121,579 was transferred to the Completed Assets fund during phase 10 of the development leaving a balance of £nil in the restricted WISH Appeal fund, after the over-spend of £106,962 was transferred from the WISH Appeal designated fund. This leaves a cumulative designation of £100,474 for the WISH Appeal whenever this is required. The Activities fund is the only restricted fund.
Income for the general running expenses amounted to £2,176,751 of which £1,918,057 was expended. The closing balance of general unrestricted reserves amounted to £2,928,011. The Assets Completed Fund is £2,928,518.
Sponsoring authorities are the main source of income for the charity. Some fundraising is done in the local community and these events are generally run by our employees. We believe we are compliant with GDPR when contacting our supporters and this is done directly by our trained employees to prevent unreasonable intrusion on a person’s privacy, unreasonably persistent methods to receive a donation and undue pressure on a person to give a donation. We have received no complaints regarding our fund raising procedures during the year.
Sponsoring authorities remain committed to the residents of Lincolnshire House and the general reserves are maintained in line with the policy objectives.
## Reserves policy
As of 31 March 2024 Lincolnshire House Association’s average monthly expenditure was £159,838, this includes an average monthly salary bill of around £120,510.
Lincolnshire House Association has decided to aim to keep 12-18 months running costs in reserve, a target range of between £1,918,057 and £2,877,086.
Currently, as at 31 March 2024, it has free reserves of £2,857,864 (unrestricted funds £5,957,003 minus tangible assets £2,998,665 minus designated WISH Appeal fund £100,474).
The current level of reserves, therefore, sits in the ‘target range’ above.
Lincolnshire House Association has decided on a target range of 12-18 months expenditure to allow for challenges still faced with the continuing impact of Covid, plus the challenging increase in inflation and rising energy costs on the charity. This is considered necessary to ensure the critical nature of the services provided could continue with minimum impact on the residents should Lincolnshire House Association have to close.
**LINCOLNSHIRE HOUSE ASSOCIATION**
4
## **Executive Council’s report for the year ended 31 March 2024** _**(continued)**_
## **Plans for the future**
We will:
- Set future fundraising objectives.
- Install the swim spa.
- Install more solar panels.
- Continue to revamp en-suites and bathrooms.
- Review senior management structure.
## **Structure, governance and management**
Lincolnshire House Association is a Charity governed by the Memorandum and Articles of Association and under which the Company is incorporated as a company limited by guarantee.
The Company continues to seek new members for the Executive Council from both public and from the residents of Lincolnshire House. When recruited, new members are given advice and information as to the objectives, policies and procedures of the organisation.
The Manager is responsible to and attends and reports to all meetings of the Executive Council on significant day to day events. All major decisions are discussed at the meetings of the Council and are delegated for implementation either through the Manager or by one or more representatives of the Council and the Manager.
The major risks, to which the Company is exposed, as identified by the Executive Council, have been reviewed and systems have been established to mitigate those risks.
The Executive Council considers that the key risks and uncertainties facing the charity are a mix of issues relating to finance, governance and people.
The financial impact of the cost of living crisis means that budgeting and forecasting accurately are more difficult and ensuring that suppliers deliver value for money to the charity is increasingly important. Funding is always a key concern and the charity continues to keep in close contact with Local Authorities and private funders in order to maintain those income streams.
Through the passage of time, trustees will retire and there is a risk to good governance, if the charity does not maintain suitably experienced trustees. The charity is currently reaching out to the local community to recruit suitable new trustees.
Staffing and recruitment are issues for all businesses in all sectors and there is always the potential risk of being unable to recruit adequately experienced and qualified staff. The charity is well aware of this issue and has active recruitment and staffing policies in place to mitigate this risk.
**LINCOLNSHIRE HOUSE ASSOCIATION**
5
## **Executive Council’s report for the year ended 31 March 2024** _**(continued)**_
## **Executive Council’s responsibilities**
The Council’s members (who are also the directors of Lincolnshire House Association for the purposes of company law) are responsible for preparing a Council’s annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Council’s members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the members of the Council are required to:
- a) Select suitable accounting policies and apply them consistently.
- b) Observe the methods and principles in the Charities SORP 2019 (FRS 102).
- c) Make judgements and estimates that are reasonable and prudent.
- d) State whether applicable UK accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- e) Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Council’s members are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Council’s members are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Statement as to disclosure to our auditors**
In so far as the Council members are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- • the council members 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.
In approving the Council’s Annual Report, we also approve the Strategic Report included therein, in our capacity as company directors.
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
By order of the Council:
|**Principal address and**
**Registered office**
Lincolnshire House Association
Brumby Wood Lane
Scunthorpe
North Lincolnshire
DN17 1AF|
**Ms I V Crowther**
**Representative of**
**the Executive Council **
**Date: 12 August 2024**|
|---|---|
**LINCOLNSHIRE HOUSE ASSOCIATION**
6
## **Independent Auditor’s Report to the Council Members of Lincolnshire House Association**
## **Opinion on financial statements**
We have audited the financial statements of Lincolnshire House Association for the year ended 31 March 2024, which comprise the statement of financial activities, the summary income and expenditure account, the balance sheet, the cash flow statement, and notes to the financial statements, including 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 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 31 March 2024 and of its incoming resources and application of resources 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 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 charitable 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.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Executive Council’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Executive Council with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Executive Council is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
**LINCOLNSHIRE HOUSE ASSOCIATION**
7
## **Independent auditor’s report to the Council Members of Lincolnshire House Association**
_**(continued)**_
## **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 Executive Councils’ report, incorporating the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the Executive Councils’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or directors’ 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 record have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of the Executive Council’s remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Executive Council**
As explained more fully in the Executive Council’s responsibilities statement set out on page 4, the Executive Council (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Executive Council 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 Executive Council are responsible for assessing the charitable 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 Executive Council either intend to liquidate the charitable 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 as auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
**LINCOLNSHIRE HOUSE ASSOCIATION**
8
## **Independent auditor’s report to the Council Members of Lincolnshire House Association**
## _**(continued)**_
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and business performance including the design of remuneration policies;
- the charitable company’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- the key laws and regulations under which the charity operates and whether management were aware of any instances of noncompliance;
- whether the management have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
In addition to the above, our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having a direct effect on the financial statements;
- enquiring of management, concerning any actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- in addressing the risk of fraud in revenue recognition, in addition to our testing described above we have performed focussed testing on income arising close to the year-end combined with analytical review procedures to assess accuracy and completeness of revenue recognised;
- in addressing the risk of fraud in the use of purchase ledger and credit card transactions, we have reviewed the controls surrounding the transactions and whether purchases have been appropriately authorised at each relevant stage;
- in addressing the risk of fraud in payroll, we have tested the control procedures surrounding the authorisation of both timesheets and the payroll itself, sought confirmation over the responsibility of staff members involved in the payroll process and confirmed the existence of a sample of employees; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Due to 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. This 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorresponsibilities. This description forms part of our auditor’s report.
**LINCOLNSHIRE HOUSE ASSOCIATION**
9
**Independent auditor’s report to the Council Members of Lincolnshire House Association** _**(continued)**_
## **Use of our report**
This report is made solely to the charitable 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 charitable 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Mr J Heeney BA FCA Senior Statutory Auditor**
## For and on behalf of: **RNS Chartered Accountants Statutory Auditors**
50-54 Oswald Road Scunthorpe North Lincolnshire DN15 7PQ
## **Date: 12 August 2024**
**LINCOLNSHIRE HOUSE ASSOCIATION**
10
## **Statement of financial activities (including income and expenditure account) For the year ended 31 March 2024**
|||**Restricted **|**Unrestricted**|**Total**|**Total**|
|---|---|---|---|---|---|
|||**funds**|**funds**|**funds**|**funds**|
|||**2024**|**2024**|**2024**|**2023**|
|||**£**|**£**|**£**|**£**|
||**Notes**|||||
|**Income from:**||||||
|Donations||3,746|-|3,746|3,400|
|Charitable activities|**3**|-|2,047,597|2,047,597|1,839,578|
|Other trading activities – fundraising events||10,871|-|10,871|9,766|
|Other||203|4,250|4,453|707|
|Investment income - bank interest||-
|124,904|124,904|1,812|
|**Total income**||**14,820**
|**2,176,751**|**2,191,571**|**1,855,263**|
|**Expenditure on:**||||||
|Charitable activities|**4**|1,356|1,918,057|
1,919,413|1,717,700|
|**Total expenditure**
||**1,356**|**1,918,057**|
**1,919,413**|**1,717,700**|
|
**Net income**||13,464|258,694|
272,158|137,563|
|**Transfers between funds**||(14,617)|
14,617|
-|-|
|**Net movement in funds for the year**||**(1,153)**|
**273,311**|
**272,158**|**137,563**|
|Total funds brought forward||228|5,683,692|5,683,920|5,546,357|
|**Total funds carried forward**
||**(925)**|
**5,957,003**|**5,956,078**|**5,683,920**|
All income and expenditure derive from continuing activities.
The statement of financial activities includes all gains and losses recognised during the year.
**LINCOLNSHIRE HOUSE ASSOCIATION**
11
## **Summary income and expenditure account**
## **Year ended 31 March 2024**
|
Income
Investment income
Gross income
Expenditure
**Net income**|**2024**
**£**
2,066,667
124,904
2,191,571
1,919,413
**272,158**
|**2023**
**£**
1,853,451
1,812
1,855,263
1,717,700
**137,563**|
|---|---|---|
**LINCOLNSHIRE HOUSE ASSOCIATION**
12
## **Balance sheet as at 31 March 2024**
## **Company number: 2262217**
|**Notes**
**Fixed assets**
Tangible assets
**8**
**Current assets**
Stocks
**9**
Debtors
**10**
Cash at bank and in hand
**Total current assets**
**Liabilities**
Creditors falling due within one year**11**
**Net current assets**
**Net assets**
**The funds of the charity**
Restricted funds
**14**
Unrestricted funds
**13**
**Total charity funds**
**17**|**£**
2,200
168,636
2,948,449
3,119,285
161,872
|**2024**
**£**
2,998,665
2,957,413
5,956,078
(925)
5,957,003
5,956,078
|**£**
2,200
91,439
2,814,297
2,907,936
172,496
|**2023**
**£**
2,948,480
2,735,440
5,683,920
228
5,683,692
5,683,920
|
|---|---|---|---|---|
The financial statements were approved by the Executive Council on **12 August 2024**
## **Ms I V Crowther**
**Representative of the Executive Council**
**LINCOLNSHIRE HOUSE ASSOCIATION**
13
## **Statement of cash flows**
**Year ended 31 March 2024**
|**Cash flow from operating activities**
Net income for the year
Depreciation
Interest receivable
Increase in debtors
(Decrease)/increase in creditors
Profit on disposal
**Cash flow from investing activities**
Interest received
Payments to acquire tangible fixed assets
Proceeds from sale of tangible fixed assets
**Net cash flow from investing activities**
**Increase/(decrease) in cash and cash equivalents**
**in the year**
**Cash and cash equivalents at 1 April 2023**
**Cash and cash equivalents at 31 March 2024**
**Cash and cash equivalents consists of:**
Cash at bank and in hand
**Cash and cash equivalents at 31 March 2024**|**2024**
**2023**
**£**
**£**
272,158
137,563
82,758
78,838
(124,904)
(1,812)
(11,501)
(5,000)
(10,624)
26,751
(827)
-
_______
_______
207,060
236,340
_______
_______
59,208
1,812
(133,116)
(274,873)
1,000
-
______
______
(72,908)
(273,061)
______
______
134,152
(36,721)
2,814,297
2,851,018
________
________
2,948,449
2,814,297
2,948,449
2,814,297
________
________
2,948,449
2,814,297
|
|---|---|
**LINCOLNSHIRE HOUSE ASSOCIATION**
14
## **Notes to the financial statements for the year ended 31 March 2024**
## **1 Summary of significant accounting policies**
## **General information and basis of preparation**
Lincolnshire House Association is a private limited company registered in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the executive council’s report on page 1 of these financial statements. The nature of the charity’s operations and principal activities are described on page 2.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the Council in furtherance of the general objectives of the charity where these have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Designated funds comprise unrestricted funds that have been set aside by the Council for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
## **Income recognition**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).
For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the
**LINCOLNSHIRE HOUSE ASSOCIATION**
15
## **Notes to the financial statements for the year ended 31 March 2024 (continued)**
## **1 Summary of significant accounting policies (continued)**
charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
Income from trading activities includes income earned from fundraising events to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
## **Government grants**
Government grants are accounted for under the accruals model. Revenue based grants that are received in respect of expenses or losses already incurred by the entity are recognised in profit and loss in the period when the grant becomes receivable.
## **Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
Expenditure on charitable activities includes the costs of the provision of the residential accommodation and day care facilities and care services including education, treatments, advice and support.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
## **Governance costs allocation**
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. These costs have been allocated to expenditure on charitable activities on a basis consistent with use of the resources.
The analysis of these costs is included in note 5.
## **Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Tangible fixed assets costing more than £500 are capitalised and included at cost.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
|Leasehold buildings|2%|per annum of cost|
|---|---|---|
|Fixtures and fittings|25%|per annum of net book value|
|Motor vehicles|25%|per annum of net book value|
## **Stocks**
Stocks are valued at the lower of cost and net realisable value.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
**LINCOLNSHIRE HOUSE ASSOCIATION**
16
## **Notes to the financial statements for the year ended 31 March 2024 (continued)**
## **1 Summary of significant accounting policies (continued)**
## **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Creditors**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Taxation**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **Pension costs**
The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
## **Financial instruments**
The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **Going concern**
The financial statements have been prepared on a going concern basis as the Council believe that no material uncertainties exist. The Council have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## **2 Legal status**
The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
**LINCOLNSHIRE HOUSE ASSOCIATION**
17
## **Notes to the financial statements for the year ended 31 March 2024 (continued)**
## **3 Income from charitable activities**
|**Income from charitable activities**||||||
|---|---|---|---|---|---|
|Social Security Benefits
Local Authorities
Third parties|**Restricted**||**Unrestricted**
**£**
209,921
1,540,921
296,755
________
2,047,597
|**2024**
**Total**
**£**
209,921
1,540,921
296,755
________
2,047,597|**2023**
**Total**
**£**
205,158
1,348,712
285,708
________
1,839,578|
|||**£**
-
-
-
________
-
|
|||
## **4 Analysis of expenditure on charitable activities**
|Carers’ salaries
Food and provisions
Repairs and renewals
Telephone charges
Printing, stationery and advertising
Travel and motor expenses
Heating and light
Insurance
Rates
Care quality commission registration fee
Course and tuition fees
Cleaning and sundry
Activities
Depreciation
Profit on disposal of assets
Governance costs (see note 5)|**Restricted**|**Restricted**|**Unrestricted**
**£**
1,276,629
56,160
148,545
1,294
18,709
6,794
68,489
32,512
20,400
5,779
3,218
13,213
-
82,758
(827)
184,384
________
1,918,057
|**2024**
**Total**
**£**
1,276,629
56,160
148,545
1,294
18,709
6,794
68,489
32,512
20,400
5,779
3,218
13,213
1,356
81,931
(827)
184,384
________
1,919,413|**2023**
**Total**
**£**
1,108,846
52,272
156,264
1,223
13,300
6,027
48,879
31,514
20,061
5,779
4,137
14,591
832
78,838
-
175,137
________
1,717,700|
|---|---|---|---|---|---|
|||**£**
-
-
-
-
-
-
-
-
-
-
-
-
1,356
-
-
-
________
1,356
|
|||
|**5**|**Analysis of governance costs**
Bank charges and interest
Accountancy and audit fees
Legal and professional fees
Administration salaries
Administration staff pensions|**Restricted**|**Restricted**|**Unrestricted**
**£**
2,456
5,919
6,518
163,029
6,462
________
184,384
|**2024**
**Total**
**£**
2,456
5,919
6,518
163,029
6,462
________
184,384|**2023**
**Total**
**£**
1,162
5,432
6,805
155,764
5,974
________
175,137|
|---|---|---|---|---|---|---|
||||**£**
-
-
-
-
-
________
-
|
|||
**LINCOLNSHIRE HOUSE ASSOCIATION**
18
## **Notes to the financial statements for the year ended 31 March 2024 (continued)**
## **6 Net income for the year**
This is stated after charging:
|This is stated after charging:|||
|---|---|---|
||**2024**|**2023**|
||**£**|**£**|
|Depreciation and amortisation of owned assets|82,758|78,838|
|Profit on disposal of tangible assets|(827)|-|
|Auditor’s remuneration:|||
|Audit fees|3,600|3,600|
|Accountancy services|2,319|1,832|
## **7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
The total staff costs and employees’ benefits was as follows:
|Wages and salaries
Social security costs
Pension costs|**2024**
**£**
1,326,127
86,891
33,102
1,446,120
|**2023**
**£**
1,165,085
75,520
29,979
1,270,584|
|---|---|---|
The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:
|£60,001 - £70,000|**2024**
1
1|**2023**
-
-|
|---|---|---|
The charity trustees did not receive any remuneration or other benefits from employment with the charity in the year (2023: £nil), neither were they reimbursed expenses during the year (2023: £nil). No charity trustee received payment for professional or other services supplied to the charity (2023: £nil).
Total remuneration of key management personnel in the year was £72,284 (2023: £69,691).
The average monthly head count was 71 staff (2023: 70 staff) and the average monthly number of fulltime equivalent employees (including casual and part-time staff) during the year were as follows:
|Charitable activities
Governance|**2024**
67
4
71|**2023**
66
4
70|
|---|---|---|
**LINCOLNSHIRE HOUSE ASSOCIATION**
19
## **Notes to the financial statements for the year ended 31 March 2024 (continued)**
## **8 Tangible fixed assets**
|**9**
**10**|
**Cost**
At 1 April 2023
Additions
Disposals
At 31 March 2024
**Depreciation**
At 1 April 2023
Provided during the year
Re disposals during the year
At 31 March 2024
**Net book value**
At 31 March 2024
At 31 March 2023
**Stocks**
Consumables
**Debtors:**All receivable within one year
Trade debtors
Prepayments and accrued income|**Leasehold**
**property**
**£**
3,907,748
121,579
-
4,029,327
977,816
78,155
-
1,055,971
2,973,356
2,929,932|**Leasehold**
**property**
**£**
3,907,748
121,579
-
4,029,327
977,816
78,155
-
1,055,971
2,973,356
2,929,932|**Fixtures**
**and**
**fittings**
**£**
174,282
11,537
-|**Motor**
**vehicles**
**Total**
**£**
**£**
104,167
4,186,197
-
133,116
(24,570)
(24,570)
79,597
4,294,743
91,363
1,237,717
3,167
82,758
(24,397)
(24,397)
70,133
1,296,078
9,464
2,998,665
12,804
2,948,480
**2024**
**2023**
**£**
**£**
2,200
2,200
**2024**
**2023**
**£**
**£**
93,106
81,204
75,530
10,235
168,636
91,439|
|---|---|---|---|---|---|
|||||||
||||4,029,327|185,819||
||||977,816
78,155
-|168,538
1,436
-||
||||1,055,971|169,974||
||||2,973,356|15,845||
||||2,929,932|5,744||
||||||**2024**
**£**
2,200
**2024**
**£**
93,106
75,530
168,636|
**LINCOLNSHIRE HOUSE ASSOCIATION**
20
## **Notes to the financial statements for the year ended 31 March 2024 (continued)**
**11 Creditors:** Amounts falling due within one year
|**Creditors: **Amounts falling due within one year|||
|---|---|---|
||**2024**|**2023**|
||**£**|**£**|
|Trade creditors|14,276|35,173|
|Other tax and social security|19,783|17,211|
|Other creditors|6,737|11,598|
|Accruals and deferred income|121,076|108,514|
||161,872|172,496|
## **12 Pension costs**
The Association operates a defined contribution scheme and contributions are charged in the profit and loss account as they accrue. The cost for the year was £33,102 (2023: £29,979).
## **13 Analysis of movement in unrestricted funds**
|Balance at 1 April 2023
Incoming resources
Resources expended
Transfers
Balance at 31 March 2024|**Retained**
**Surplus**
**£**
2,592,202
2,176,751
(1,840,942)
-|
**Assets**
**Completed**
**£**
2,884,054
-
(77,115)
121,579|**Designated**|**Designated**|**Designated**|**Designated**|
|---|---|---|---|---|---|---|
|||||**Fund for**|||
||||||**WISH**
**Appeal**|**WISH**|
||2,928,011|2,928,518|||||
The Retained Surplus represents the free funds of the Charity which are not designated for particular purposes.
The Assets Completed Fund has been set up to assist in identifying those funds that are not free funds, and it represents the value of assets now completed less accumulated depreciation which have been funded from the First Brick and WISH Appeal.
The Designated Fund represents funds allocated to the WISH Appeal.
## **14 Analysis of movement in restricted funds**
|**Analysis of movement in restricted funds**|||||||
|---|---|---|---|---|---|---|
|
Balance at 1 April 2023
Incoming resources
Resources expended
Transfers
Balance at 31 March 2024|
|**Activities**
**Fund**
**£**
228
203
(1,356)
-|**WISH**
**Appeal**
**Fund**
**£**
-
14,617
-
(14,617)|**Power**
**Chair**
**Football**
**Fund**
**£**
-
-
-
-||**Total**
**Restricted**
**Funds**
**£**
228
14,820
(1,356)
(14,617)
(925)|
|||(925)
|-||-||
**LINCOLNSHIRE HOUSE ASSOCIATION**
21
## **Notes to the financial statements for the year ended 31 March 2024 (continued)**
## **15 Control relationships**
The Association was controlled throughout the current and previous period by its Executive Council.
## **16 Related party transactions**
There are no related party transactions during the period (2023: £nil).
## **17 Analysis of net assets between funds**
Fund balances at 31 March 2024 are represented by:
|**Analysis of net assets between funds**
Fund balances at 31 March 2024 are represented by:||||
|---|---|---|---|
|
Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
Total
|**Restricted **|||
||
||**funds**|
|||||
**LINCOLNSHIRE HOUSE ASSOCIATION**
22
## **General account for the year ended 31 March 2024**
|**Income**
Social security benefits and third parties
Personal allowances
Local authority and third parties
- day attenders
- funding
- respite care
- assessment fees
- continuing care
Sundry receipts
Grants received
Rents received
Bank interest receivable
**Less:** **Overheads**
Salaries and employees healthcare
Food and provisions
Repairs and renewals
Telephone charges
Printing, stationery and advertising
Travel and motor expenses
Heating and lighting
Insurances
Rates
Accountancy charges
Bank charges
Legal, professional and CRB fees
Care Quality Commission registration fee
Course and tuition costs
Cleaning and sundry expenses
Depreciation
Profit on disposal of tangible assets
**Net surplus for the year**
|**2024**
**£**
230,843
(20,922)
113,470
1,473,830
11,008
578
230,480
8,310
3,500
750
124,904
________
2,176,751
1,446,120
56,160
148,545
1,294
18,709
6,794
68,489
32,512
20,400
5,919
2,456
6,518
5,779
3,218
13,213
82,758
(827)
________
1,918,057
258,694
|**2023**
**£**
227,537
(22,379)
91,530
1,299,790
14,626
101
223,826
4,547
-
570
1,812
________
1,841,960
1,270,584
52,272
156,264
1,223
13,300
6,027
48,879
31,514
20,061
5,432
1,162
6,805
5,779
4,137
14,591
78,838
-
________
1,716,868
125,092|
|---|---|---|
||||
**LINCOLNSHIRE HOUSE ASSOCIATION**
23
## **Activities income and expenditure account for the year ended 31 March 2024**
|**2024**
**£**
Balance brought forward 228
**Income**
Arts and crafts 138
126
Health and beauty 45
-
Baking 20 203 11
____ _____
____
431
**Expenditure**
Arts and crafts
244
105
Baking
5
17
Christmas
-
710
Health and beauty
28
-
General
1,079
-
____
____
1,356
Balance carried forward (925)
**BLF Grant– Power Chair Football account for the year ended 31 March 2024**
**2024**
**£**
Balance brought forward
-
Transfer to Wish Appeal
-
_____
Balance carried forward
-
|**2023**
**£**
923
137
_____
1,060
832
____
228
**2023**
**£**
867
(867)
_____
-
|
|---|---|
|
Balance brought forward
Transfer to Wish Appeal
Balance carried forward
||
**LINCOLNSHIRE HOUSE ASSOCIATION**
24
## **The Wish Appeal Fund for the year ended 31 March 2024**
|**2024**
**£**
**Income**
Donations received
3,746
**Net Income from Fund Raising Efforts**
200 Club
4,370
Car Boot sales
750
Christmas Draw
-
Summer Fete
1,640
Lincs Lotto
9
Easter Fayre
23
Horse Racing
1,006
Fire Walk
2,567
Christmas Fayre
506
10,871
**Total income**
14,617
**Surplus for the year**
14,617
**The Wish Appeal Fund for the year ended 31 March 2024**
**2024**
**£**
Balance brought forward at 1 April 2023
-
Funds raised during the year
14,617
Capital expenditure transferred to Assets Completed Fund (121,579)
Transfer from designated fund
106,962
**Fund balance at 31 March 2024**
-
**Amount Designated for the fund from the Retained Surplus**
Balance brought forward
207,436
Transfer to restricted fund (106,962)
Transfer from Power Chair account
-
**Balance at 31 March 2024**
100,474
**Total Wish Appeal Fund**
100,474
||
|---|---|
|||