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2020-09-30-accounts

Charity Registration No. 701331

Company Registration No. 02357285 (England and Wales)

EXPECT LTD.

COMPANY LIMITED BY GUARANTEE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

Meeting Challenge with Expertise and Compassion

EXPECT LTD. COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Anthony Gilmore
Mandy MacDonald
Janet Hardman
David Egan
Secretary Margaret Ollivier (resigned 14 April 2021)
Debra Collins (appointed 14 April 2021)
Charity number 701331
Company number 02357285
Registered office 151 Stanley Road
Bootle
Liverpool
Merseyside
L20 3DL
Auditor BWM
Castle Chambers
43 Castle Street
Liverpool
L2 9SH
Bankers CAF Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Solicitors Excello Law
1 Derby Square
Liverpool
L2 9XX
Investment advisors Eden Tree Investment Management
24 Monument Street
London
EC3R 8AJ

EXPECT LTD. COMPANY LIMITED BY GUARANTEE CONTENTS

Page
Trustees' report 1 - 7
Statement of trustees' responsibilities 8
Independent auditor's report 9 - 11
Consolidated statement of financial activities 12
Consolidated balance sheet 13
Charity balance sheet 14
Consolidated statement of cash flows 15
Notes to the financial statements 16 - 42

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2020

The trustees present their report and financial statements for the year ended 30 September 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 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) (effective 1 January 2019)".

Objectives and activities

The objects of the charity are to:

1) promote the value of ordinary living opportunities and to eliminate the segregation and stigmatisation of people who consider themselves to be disadvantaged by reason of their physical ill health, mental health or learning disability.

2) provide support services with the aim of preserving and protecting the health and well-being of people with physical health needs, mental health needs and/or learning disabilities.

3) undertake the management of housing projects, including the responsibilities of a management agent, which provide an alternative to institutionalised care for people with physical health needs, mental health needs and/or learning disabilities.

In setting our objectives and planning our activities the trustees have given careful consideration to the Charity Commission's guidance on public benefit.

Our Vision

To be market leader and the first choice provider of high quality services to people living with learning disabilities and/or experiencing mental health problems. Expect Ltd. will achieve this by being acknowledged as a considerate, inspiring and empowering provider and employer; committed to the achievement of excellence with a reputation for 'going the extra mile' whilst, at the same time, maintaining traditional values and principles.

Our Mission

To improve the quality of life and independence of people living with learning disabilities and/or mental health problems. Services will be delivered by a well trained, experienced and supportive team whose primary aim is to go the extra mile in providing quality and flexible support in a way that promotes and enables independence and choice.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Our Values

Everything Expect Ltd. does will be driven by the following values:

E - Empathy

X - eXtra mile

P - Partnership E - Empowerment C - Compassion T - Truthfulness

Empathy - Expect Ltd. will endeavour to identify with the aspirations, concerns and difficulties of the people we work with in order to better understand their wishes and feelings.

eXtra mile - Expect Ltd. has developed a well earned reputation with Commissioners, users and relatives of our services for perseverance and tenacity when providing services to people living with learning disability and/or experiencing mental health problems. This, succinctly summed up as 'going the extra mile,' will be at the heart of our service development.

Partnership - Expect Ltd. will work in partnership and collaboration with people we support, their relatives, commissioning agencies and other likeminded Voluntary, Community and Faith Sector organisations and groups.

Empowerment - Expect Ltd. will support and encourage the people it works with to make difficult, sometimes challenging but safe decisions in relation to all aspects of their lives. Peoples' independence will be fostered as will their retention of links with their communities.

Compassion - Expect Ltd. will strive to understand the individual needs of the people we work with and be driven by a desire to help. This will be demonstrated by our actions and behaviours.

Truthfulness - Expect will be open and straightforward in its dialogue with service users, their relatives and employees in order to ensure that quality of care, transparency and honesty underpin all its actions.

The charity aims to achieve it's objects through the provision of the following services:-

1) Registered Residential Services - the provision of small registered care homes for up to three people.

2) Supported Living Schemes - the provision of supported living housing and support services to enable people to live as independently as possible in homes of their choice.

3) Day Centre Services - the provision of support, advice and structured activity for people experiencing mental ill health.

4) Domiciliary Care - the provision of ongoing outcomes based interventions and short term crisis management.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Achievements and performance

Expect's reputation for the provision of high quality, responsive services, alongside its demonstrable commitment to responsible social values, has been maintained throughout the relevant period, albeit it with a number of COVID-related challenges. Despite the impact that the pandemic has had on the operational day to day running of the Company activity levels have been maintained and remain consistent with Expect's charitable objectives and Strategic Business Plan 2014-2019. The Strategic Plan and associated Action Plans have been subject to regular formal review and revision during their lifetime and as in previous years the reviewing process has been facilitated by an experienced and talented external business consultant. The new Strategic Business Plan is already in its formative stages for the 2020 – 2025 period and will build on the existing plan with regard to an aspiration for growth in both the Charity's reach and offer. All stakeholders clearly value the Charity's adherence to its faithful commitment to "Meeting Challenge with Expertise and Compassion " as well as to the closely related pledge to "Going the Extra Mile" . Both promises underscore the Charity's motivation to offer services to Service Users whose Challenging Behaviours may be regarded by other providers as too much to handle. From Expect's perspective such challenges are there to be managed in order to provide positive and person focused support and assistance.

Your Future Training Solutions (YFTS) was significantly impacted by COVID as the pandemic meant that all planned face to face training from March 2020 to the end of September 2020 could not go ahead. To ensure that the Expect Group’s support staff were still able to access the mandatory training the Director of YFTS utilised Google classroom but there was very little external buy in, understandably, during this period.

The restructure referred to in the previous year’s trustees’ report was reviewed and some changes were made, the most significant being that it was decided to reduce the number of Divisional Directors to two from three and the position of Head of Estates was created to oversee Housing Initiatives and the maintenance team.

Expect Ltd's Bowersdale Resource Centre closed for a brief period between March 2020 and May 2020 before re-opening on a reduced service basis. Following a rigorous risk assessment it was decided that the maximum number of people in the Centre at any one time was ten and so each day was split into three sessions to accommodate as many service users as possible who wished to access the facilities. This arrangement has worked well and has ensured that the vulnerable client group with whom the Centre staff work have been able to continue to be provided with an effective service, which has been of even greater importance to them during such a difficult and unprecedented time. The service is essentially a partnership between Expect and the Borough of Sefton's two Clinical Commissioning Groups (CCGs). The work of the Centre continues to be supported via a grant from the CCG's which is reviewed on an annual basis. During the period, this grant was successfully retained.

The organisation remains committed to the ethos of the Real Living Wage and operates three different pay scales for its support staff that take into account relevant qualifications and working for the charity for 12 months or more. All support staff are encouraged to achieve the Level 2 Diploma in Health and Social Care during the first year of employment.

Officers of Expect have continued to play an active role in the maintenance and development of broader community based services and remain committed to offering assistance and support to the umbrella organisation Sefton Council for Voluntary Services of which it is a formal member. Expect's CEO and DCEO continue to work closely with the leaders of other similar organisations operating in the geographical area and colleagues in Local Council Commissioning teams, particularly those in Conway, Denbighshire, Sefton, Knowsley and Liverpool to drive up standards and maximise knowledge through effective partnerships. This involvement takes the form of being represented on working groups and at development events.

The recruitment of suitable and motivated staff has been an even bigger issue than usual during the pandemic but staff have rallied round and worked extra hours to cover when their colleagues have had to isolate.

Expect’s HR Manager has made safe recruitment priority during this period and we continue to recruit based on attitude. New staff are provided with a comprehensive programme of skill and knowledge-based learning to be utilised in concert with their already identified appropriate personal values and ethics.

The Expect Board of trustees have continued to meet regularly and once the pandemic hit remote board meetings were convened so that the decision making progress was not hindered.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Financial review

The operational deficit for the group during the year was £234k (2019: £128k). The deficit is after accounting for the amortisation of goodwill for the year of £147k (2019: £129k). When this is removed the operating deficit of the group for the year is £87k (2019: surplus £1k).

As at 30 September 2020 total group funds of £3M (2019: £3.2M) were held all in unrestricted funds available for the general purposes of the charity.

Our primary sources of funding are the fees received from Local Authority Social Services Departments or from Clinical Commissioning Groups, depending upon which body is responsible for financing the care needs of the individual client. Upon referral clients are assessed and a Care Plan agreed with the funders. To assist in this Expect Ltd. has previously agreed set rates with funders depending upon the type and level of care provided. For clients living in one of our residential units, Expect Ltd. also receives additional payments to cover the cost of providing, running and maintaining the homes in which our clients live.

Part of our financial strategy over the last few years has been to reduce the group's reliance upon Sefton MBC which historically has been responsible for over 90% of the charity's income. For the year ended 30 September 2020, Sefton MBC contributed 50% of group income, and this is expected to reduce further over the next year or so.

Reserves Policy

The trustees have considered the need to maintain an appropriate level of reserves for the charity. Consideration has been given to the nature of income and expenditure streams, the need to match income with fixed commitments and the nature of reserves. The trustees have concluded that the following reserves should be maintained.

The trustees wish to have 3 months running costs, based on the last 3 years general fund expenditure in case of a major problem or delays in payments from our funders. The average annual expenditure over the last 3 years (2018-2020 incl.) is £5.5M. This equates to a reserve level of £1.4M, of which £0.5M is required to be kept as cash for working capital. As at 30 September 2020 the amount of reserves held in the general fund was £1,583,867. The trustees consider that this level of reserves satisfies the charitable company's policy on reserves.

The trustees have designated certain funds to assist in the financial management of the charity.

In order to assist the trustees to identify the free cash reserves a designated Fixed Asset Fund should hold the value of both intangible and tangible fixed assets less any loans secured on these assets and less the Revaluation Reserve as at each year-end.

The Project Development Fund is to fund initial costs in exploring and starting new projects. Given the likely requirements on this fund going forward the trustees have agreed to maintain the fund balance of £75,000 as at the 30 September 2020.

Following the purchase of Focus Care Wales Limited in the prior year, the Acquisition Fund has been reduced to £Nil. It is now expected that the group's focus will shift towards organic growth of the group rather than growth through acquisition.

Investment Strategy and Performance

Trustees took the decision in December 2019 to cash in the Eden Tree Investment to assuage cash flow issues arising out of historical monies owed to Expect Ltd. The Group will look to making further investments in the near future.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Risk Management

The trustees have a risk management strategy which comprises:

This work has identified that financial sustainability is the major financial risk for the charity. A Key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank and active management of trade debtors and creditors balances to ensure sufficient working capital by the charity.

Attention has also been focused on non-financial risks arising from fire, health and safety of clients and food hygiene. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place, and regular awareness training for staff working in these operational areas. The organisation recruited a dedicated Health and Safety Officer to provide support and guidance to the Senior Management Team and support staff.

Future Plans

In the autumn of 2020 the Expect Group endorsed its second five year Strategic Business Plan. The latest plan builds on the success of the previous plan taking into account anticipated future social care and broader societal circumstances. The plan is evolutionary rather than revolutionary, building on the robust platform that has been established in recent years. It retains the strong ethical underpinnings and values that the Expect Group has become synonymous with and strikes a balance between prudence and ambition. A calculated and considered approach will remain central to the Expect Group's strategic development and evolution over the next five years. The main aspirational tenets during the five years will be:

Structure, governance and management

Expect Ltd. is a company limited guarantee governed by its Memorandum and Articles of Association dated 20th May 2005. It is registered with Companies House (No. 2357285) and with the Charity Commission (No. 701331). Anyone over the age of 18 can become a member of the charitable company and there are currently 4 members (4 in 2019), each of whom agrees to contribute £10 in the event of the charity winding up.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Anthony Gilmore Mandy MacDonald Janet Hardman David Egan

Appointment of trustees

As set out in the Articles of Association the trustees are elected by the members of the charitable company attending the Annual General Meeting. The longest serving one third of trustees retires each year and is able to offer themselves for re-election.

Organisation

The Board of Trustees, which shall be no less than 3 members, administers the charity. The board normally meets bi-monthly. A Chief Executive is appointed by the trustees to manage the day to day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within the terms of delegation approved by the trustees, for operational matters including service delivery activity, finance, and human resources.

Trustee induction and training

New trustees are provided with an Induction Pack to brief them on; their legal obligations under charity and company law; the Charity Commission guidance on public benefit; the content of the Memorandum and Articles of Association; the board and the decision making process; the strategic plan; recent financial performance. During the induction process 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.

Pay policy for senior staff

The trustees consider that the board of trustees and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All trustees give of their time freely and no trustees received remuneration in the year.

The pay of the senior staff excluding the Chief Executive are reviewed annually and normally increased in accordance with at least inflation, adjusted for any additional responsibilities. The pay for the Chief Executive has been assessed using the principles contained within the Association of Chief Executives of Voluntary Organisations (ACEVO) 'The Good Pay Guide.' Annual reviews are carried out through discussion between the trustees and the Chief Executive.

Auditor

The auditors, BWM, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Small Company exemptions

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.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

The trustees' report was approved by the Board of Trustees.

Anthony Gilmore Trustee Dated: 29 July 2021

EXPECT LTD. COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 30 SEPTEMBER 2020

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

Company Law requires the trustees 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, including the income and expenditure, of the charitable company for that year.

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF EXPECT LTD.

Opinion

We have audited the financial statements of Expect Ltd. (the ‘charity’) and its subsidiary (the 'group') for the year ended 30 September 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Statement of Cash Flows and the 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).

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 accounts section of our report. We are independent of the group and the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

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

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

We have nothing to report in this regard.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF EXPECT LTD.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charity and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within 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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees, who are also the directors of the charity for the purpose 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 directors 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 group's and the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or 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 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.

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

EXPECT LTD. COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF EXPECT LTD.

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 auditors' 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.

Peter Taaffe FCA CTA DChA (Senior Statutory Auditor) for and on behalf of BWM

29 July 2021

Chartered Accountants Statutory Auditor

Castle Chambers 43 Castle Street Liverpool L2 9SH

EXPECT LTD. COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Unrestricted Unrestricted
funds funds
2020 2019
Notes £ £
Income from:
Donations and legacies 3 7,017 2,033
Income from charitable activities 4 4,276,407 4,391,670
Other trading activities 5 1,668,577 1,241,633
Investments 6 2,697 12,481
Total income 5,954,698 5,647,817
Expenditure on:
Raising funds 7 1,474,141 1,159,495
Charitable activities 8 4,716,653 4,612,274
Other 12 (1,845) 2,631
Total expenditure 6,188,949 5,774,400
Net gains/(losses) on investments 13 177 (1,768)
Net expenditure (234,074) (128,351)
Other recognised gains and losses
Other gains or losses 15 - 664,278
Net movement in funds (234,074) 535,927
Fund balances at 1 October 2019 3,247,083 2,711,156
Fund balances at 30 September 2020 3,013,009 3,247,083

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE BALANCE SHEET

AS AT 30 SEPTEMBER 2020

Notes
Fixed assets
Goodwill
16
Other intangible assets
16
Total intangible assets
Tangible assets
18
Investments
20
Current assets
Debtors
25
Cash at bank and in hand
Creditors: amounts falling due within
one year
27
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
29
Net assets
Income funds
Unrestricted funds
Designated funds
34
General unrestricted funds
Revaluation reserve		 2020
£
£
360,251
15,974
376,225
2,017,341
-
2,393,566
1,235,869
446,035
1,681,904
(431,955)
1,249,949
3,643,515
(630,506)
3,013,009
1,075,078
1,583,867
354,064
3,013,009
3,013,009		 2019
£
£
507,119
21,299
528,418
2,104,721
195,225
2,828,364
1,045,621
384,539
1,430,160
(335,529)
1,094,631
3,922,995
(675,912)
3,247,083
1,014,559
1,766,065
466,459
3,247,083
3,247,083

The financial statements were approved by the Trustees on 29 July 2021

Anthony Gilmore Trustee

Company Registration No. 02357285

EXPECT LTD. COMPANY LIMITED BY GUARANTEE CHARITY BALANCE SHEET

AS AT 30 SEPTEMBER 2020

Notes
Fixed assets
Intangible assets
17
Tangible assets
19
Investments
21
Current assets
Debtors
26
Cash at bank and in hand
Creditors: amounts falling due within
one year
28
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
Designated funds
35
General unrestricted funds
Revaluation reserve
35
The financial statements were approved by the Trustees		 2020
£
£
15,974
805,284
1,124,308
1,945,566
986,817
54,282
1,041,099
(322,722)
718,377
2,663,943
832,085
1,767,685
64,173
2,663,943
2,663,943
on 29 July 2021		 2019
£
£
21,299
861,073
1,319,533
2,201,905
747,897
33,181
781,078
(228,906)
552,172
2,754,077
891,723
1,796,705
65,649
2,754,077
2,754,077		 2019
£
£
21,299
861,073
1,319,533
2,201,905
747,897
33,181
781,078
(228,906)
552,172
2,754,077
891,723
1,796,705
65,649
2,754,077
2,754,077
2,201,905
552,172
2,754,077
2,754,077
2,754,077

Anthony Gilmore Trustee

Company Registration No. 02357285

EXPECT LTD. COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Notes
Cash flows from operating activities
Cash absorbed by operations
40
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Purchase of subsidiaries
Proceeds on disposal of other investments
Investment income received
Net cash generated from/(used in)
investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash acquired in period
Cash and cash equivalents at end of year		 2020
£
£
(104,188)
(990)
15,465
-
195,402
2,697
212,574
(46,890)
(46,890)
61,496
384,539
-
446,035		 2019
£
£
(533,998)
(75,340)
-
(391,447)
-
12,481
(454,306)
(3,942)
(3,942)
(992,246)
1,037,865
338,920
384,539

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

Charity information

Expect Ltd. is a private company limited by guarantee incorporated in England and Wales. The registered office is 151 Stanley Road, Bootle, Liverpool, Merseyside, L20 3DL.

1.1 Accounting convention

The financial statements have been prepared in accordance 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)” (as amended for accounting periods commencing from 1 January 2016), and the Companies Act 2006 and the UK Generally Accepted Accounting Practice as it applies from 1st January 2015.

Expect Ltd. meets the definition of a public benefit entity under FRS102.

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

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

Consolidation

The group financial statements consolidate those of the charity and its wholly owned subsidiary undertakings drawn up to 30 September 2020. The results of the charity's subsidiaries have been incorporated on a line by line basis.

A separate Statement of Financial Activities and Income and Expenditure Account for the parent charitable company has not been presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

1.2 Going concern

At the time of approving the accounts and as detailed in note 38, the trustees have considered the impact of Covid-19 on the charity and the group and the trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

All income and expenditure together with gains and losses are allocated to a specific charitable fund.

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

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Further details of designated funds together with their purpose are set out in note 34 and 35.

Restricted funds are donations which the donor has specified are to be used solely for particular areas of the charity's work or for specific projects being undertaken by the charity.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(continued)

1.4 Income

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

Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Dividend income is recognised when the right to receive payment is established, usually when the investment is declared ex-dividend.

Trading income is the amount derived from the provision of services by the subsidiary, and stated after trade discounts, other sales taxes and net of VAT.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charities programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 9.

1.6 Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of incorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill shall be considered to have a finite useful life, and shall be amortised on a straight line basis over five years.

Any negative goodwill is written off to the SOFA in the year of acquisition.

1.7 Intangible fixed assets other than goodwill

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised over their estimated useful life, on the following basis.

Software

25% per annum reducing balance

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(continued)

Where factors such as technological advancement or changes in market price, indicate that residual value or useful life may have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

The assets are reviewed for impairment if the above factors indicate that the carry amount may be impaired.

Costs associated with maintaining computer software are recognised as an expenses, as incurred.

1.8 Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset into its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

Land and buildings include freehold offices and community centres. Land and buildings are stated at cost (or deemed cost for land and buildings held at valuation at the date of transition to FRS 102) less accumulated depreciation and accumulated impairment losses

The charitable company previously adopted a policy of revaluing freehold land and buildings and they were stated at their revalued amount less any subsequent depreciation and accumulated impairment losses. The charitable company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the latest revaluation as deemed cost.

Depreciation is provided at the following annual rates in order to write each asset off over its anticipated useful economic life. A full year's depreciation charge is charged in the year of acquisition and no depreciation is charged in the year of disposal:

Freehold land and buildings No depreciation is charged on land
Leasehold property Straight line basis over 50 years
Freehold improvements Straight line basis over 5 years
Plant and equipment 25% on a reducing balance basis
Fixtures and fittings 15% on a reducing balance basis
Computers 33% on a reducing balance basis
Motor vehicles 25% on a reducing balance basis

The difference between depreciation based on the deemed cost charged in the Statement of Financial Activities and the assets original cost is charged to the Revaluation Reserve. Plant and machinery and fixtures and fittings and motor vehicles are stated at cost less accumulated depreciation and accumulated impairment losses.

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the charitable company and the cost can be measured reliably.

Repairs, maintenance and minor inspection costs are expensed, as incurred.

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Statement of Financial Activities.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(continued)

1.9 Fixed asset investments

Fixed asset investments are initially measured at transaction price including transaction costs, and are subsequently measured at fair value at each reporting date.

The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The charity does not acquire put options, derivatives or other complex financial instruments.

1.10 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.11 Cash and cash equivalents

Cash at bank and cash equivalents 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.

1.12 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried 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 the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and 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.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(continued)

1.13 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

The subsidiaries gift aid their profits during the year and post year end to the parent Expect Ltd. As such there is no tax charge to the subsidiaries.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.14 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.17 Revaluation Reserve

Gains or losses arising on the revaluation of individual fixed assets other than investment properties are credited or debited to a non-distributable reserve known as the revaluation reserve (see note 34 and 35).

Revaluation deficits in excess of the amount of prior revaluation surpluses on the same asset are charged to the statement of financial activities.

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 amount 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 these estimates.

The estimates and underlying 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 affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Donations and gifts 1,047 2,033
Grant income 5,970 -
7,017 2,033

4 Income from charitable activities

Residential
Care Services
2020
£
Care Package Income
1,025,062
Client Contributions
78,386
Service Charge Income
1,578
Property Management
Fees
3,213
Utility recharges
34
Other income
65
1,108,338
Analysis by fund
Unrestricted funds
1,108,338		 Supported
Living
Services
Domiciliary
Care Services
Day Services
2020
2020
2020
£
£
£
2,642,225
313,189
145,089
-
-
-
45,368
-
-
4,762
-
-
16,520
150
-
-
-
766
2,708,875
313,339
145,855
2,708,875
313,339
145,855		 Total
2020
£
4,125,565
78,386
46,946
7,975
16,704
831
4,276,407
4,276,407		 Total
2019
£
4,187,940
69,901
69,783
13,570
35,141
15,335
4,391,670
4,391,670

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

4 Income from charitable activities

(continued)

For the year ended 30 September 2019

Residential
Care Services
£
Care Package Income
528,764
Client Contributions
67,760
Service Charge Income
45,986
Property Management Fees
8,808
Utility recharges
23,730
Other income
11,252
686,300
Analysis by fund
Unrestricted funds
686,300		 Supported
Living
Services
Domiciliary
Care Services
Day Services
£
£
£
2,991,788
527,200
140,188
2,141
-
-
23,797
-
-
4,762
-
-
10,641
770
-
-
-
4,083
3,033,129
527,970
144,271
3,033,129
527,970
144,271		 Total
2019
£
4,187,940
69,901
69,783
13,570
35,141
15,335
4,391,670
4,391,670

5 Other trading activities

Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Trading activity income: Young People's Support
553,280
542,067
Trading activity income: Supported Living
696,671
430,977
Trading activities income: Housing support
158,232
15,202
Trading activity income: Domicilliary Care
260,394
253,387
Other trading activities
1,668,577
1,241,633		 Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Trading activity income: Young People's Support
553,280
542,067
Trading activity income: Supported Living
696,671
430,977
Trading activities income: Housing support
158,232
15,202
Trading activity income: Domicilliary Care
260,394
253,387
Other trading activities
1,668,577
1,241,633		 Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Trading activity income: Young People's Support
553,280
542,067
Trading activity income: Supported Living
696,671
430,977
Trading activities income: Housing support
158,232
15,202
Trading activity income: Domicilliary Care
260,394
253,387
Other trading activities
1,668,577
1,241,633
1,241,633
All trading income is unrestricted.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

6 Investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Income from listed investments 2,122 10,817
Interest receivable 575 1,664
2,697 12,481

All investment income is unrestricted.

7 Raising funds

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Trading costs
Other trading activities - non-charitable 163,373 146,749
Other trading activities - charitable 70,296 4,964
Staff costs 1,193,129 993,735
Depreciation and impairment 32,580 3,363
Support costs 14,763 10,684
Trading costs 1,474,141 1,159,495
1,474,141 1,159,495

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

8 Charitable activities

Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
2020
2020
2020
£
£
£
Staff costs
588,821
2,232,075
201,456
Other charitable
expenditure
94,985
75,150
2,272
683,806
2,307,225
203,728
Share of support costs
(see note 9)
214,581
917,466
196,698
Share of governance costs
(see note 9)
14,847
14,845
14,845
913,234
3,239,536
415,271		 Day
Services
2020
£
52,795
34,205
87,000
46,767
14,845
148,612		 Total
2020
£
3,075,147
206,612
3,281,759
1,375,512
59,382
4,716,653		 Total
2019
£
3,615,267
363,553
3,978,820
595,894
37,560
4,612,274

For the year ended 30 September 2019

Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
£
£
£
Staff costs
404,500
2,468,944
577,988
Other charitable expenditure
269,259
53,504
10,408
673,759
2,522,448
588,396
Share of support costs (see note 9)
89,721
412,914
81,103
Share of governance costs (see note 9)
9,390
9,390
9,390
772,870
2,944,752
678,889
Analysis by fund
Unrestricted funds
772,870
2,944,752
678,889		 Day
Services
£
163,835
30,382
194,217
12,156
9,390
215,763
215,763		 Total
2019
£
3,615,267
363,553
3,978,820
595,894
37,560
4,612,274
4,612,274

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

9 Support costs

Staff costs
Depreciation
Central office costs
Audit fees
Accountancy
Legal and professional
Analysed between
Trading
Charitable activities		 Support
costs
Governance
costs
£
£
887,510
-
194,362
-
293,640
-
-
10,500
-
29,951
-
33,694
1,375,512
74,145
-
14,763
1,375,512
59,382
1,375,512
74,145		 2020
£
887,510
194,362
293,640
10,500
29,951
33,694
1,449,657
14,763
1,434,894
1,449,657		 Support
costs
Governance
costs
£
£
257,976
-
184,804
-
153,114
-
-
10,380
-
37,744
-
120
595,894
48,244
-
10,684
595,894
37,560
595,894
48,244		 2019
£
257,976
184,804
153,114
10,380
37,744
120
644,138
10,684
633,454
644,138

Support costs represent the costs of the Central Office and the governance costs represent the annual audit fee and other professional fees.

Where these are directly attributable costs these have been allocated to the relevant activity.

Premises costs have been allocated on a floor area basis and other costs have been allocated on the basis of the head count.

Governance costs attributable to charitable activities have been split equally between the activities.

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the current year or previous year.

11 Employees

The average monthly number of employees during the year was:

Key management personnel
Other management & administration
Client care and support
Total		 2020
Number
5
6
222
233		 2019
Number
5
6
224
235

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

11
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or
more were:
£60,000 to £69,999
£80,000 to £89,999		 (continued)
2020
2019
£
£
4,658,347
4,446,925
386,062
340,521
111,377
79,532
5,155,786
4,866,978
2020
2019
Number
Number
1
-
1
1		 (continued)
2020
2019
£
£
4,658,347
4,446,925
386,062
340,521
111,377
79,532
5,155,786
4,866,978
2020
2019
Number
Number
1
-
1
1
4,866,978
2019
Number
-
1

Contributions totalling £18,453 (2019: £11,034) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

12 Other

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Net loss on disposal of intangible fixed assets - 2,631
Net profit on disposal of tangible fixed assets (1,845) -

13 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Revaluation of listed investments - (1,768)
Gain/(loss) on sale of listed investments 177 -
177 (1,768)

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

14 Auditor's remuneration

The analysis of auditor's remuneration is as follows:
Fees payable to the charity's auditors
Audit of the charitable group's annual accounts
Non-audit services
Audit-related assurance services
Taxation compliance services
Services relating to corporate finance transactions
All other non-audit services
Total non-audit fees
15
Other gains or losses
Goodwill on acquisition written off
16
Intangible fixed assets - group
Cost
At 1 October 2019 and 30 September 2020
Amortisation and impairment
At 1 October 2019
Amortisation charged for the year
At 30 September 2020
Carrying amount
At 30 September 2020
At 30 September 2019		 2020
2019
£
£
10,500
10,380
-
7,000
1,000
800
-
15,696
29,951
21,005
30,951
44,501
Unrestricted Unrestricted
funds
funds
2020
2019
£
£
-
(664,278)
Goodwill
Software
Total
£
£
£
733,318
49,580
782,898
226,199
28,281
254,480
146,868
5,325
152,193
373,067
33,606
406,673
360,251
15,974
376,225
507,119
21,299
528,418

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

17 Intangible fixed assets - charity
Software
£
Cost
At 1 October 2019 and 30 September 2020 49,580
Amortisation and impairment
At 1 October 2019 28,281
Amortisation charged for the year 5,325
At 30 September 2020 33,606
Carrying amount
At 30 September 2020 15,974
At 30 September 2019 21,299

Motor
Total		 vehicles £
£		 46,905
2,292,159		 -
990		 (30,402)
(30,402)		 16,503
2,262,747		 25,892
187,438		 1,479
74,750		 (16,782)
(16,782)		 10,589
245,406		 5,914
2,017,341		 21,014
2,104,721
Computers £ - 990 - 990 - 272 - 272 718 -
Fixtures and fittings £ 86,905 - - 86,905 59,152 4,713 - 63,865 23,040 27,752
Plant and equipment £ 5,951 - - 5,951 757 1,038 - 1,795 4,156 5,194
Freehold improvements £ 111,256 - - 111,256 34,877 21,676 - 56,553 54,703 -
Leasehold property £ 528,782 - - 528,782 1,092 13,102 - 14,194 514,588 527,690
Freehold land and buildings £ 1,512,360 - - 1,512,360 65,668 32,470 - 98,138 1,414,222 1,523,071
Tangible fixed assets - group Cost or valuation At 1 October 2019 Additions Disposals At 30 September 2020 Depreciation and impairment At 1 October 2019 Depreciation charged in the year Eliminated in respect of disposals At 30 September 2020 Carrying amount At 30 September 2020 At 30 September 2019
18

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

18 Tangible fixed assets - group (continued)
The carrying value of land included in land and buildings comprises:
2020 2019
£ £
Freehold 35,000 34,000

Two of Expect Ltd.'s freehold properties were revalued on an open market basis as at 31 March 2014 by Sutton Kersh, Chartered Valuation and Building Surveyors.

The trustees are not aware of any material changes in value since this last valuation.

At 30 September 2020, had the revalued freehold land and buildings been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £1,266,227 (2019: £1,338,628).

The revaluation surplus is disclosed in note 34.

There is a first legal charge over 7 St Edmond's Road, 14/15 Tarbrock Court, 445 Stanley Road, 443 A/B Stanley Road and 1 Hougoumont Grove. The bank loans secured on the properties amounted to £679,173 which is 56% of the net book value of the properties. Social Investment Business (formerly Futurebuilders England Limited) has a first legal charge over 2-8 Gainsford Road.

19 Tangible fixed assets - charity

Freehold land
and buildings
Freehold
improvements
Fixtures and
fittings
Motor vehicles
£
£
£
£
Cost or valuation
At 1 October 2019
800,082
111,256
86,905
46,905
Disposals
-
-
-
(30,402)
At 30 September 2020
800,082
111,256
86,905
16,503
Depreciation and impairment
At 1 October 2019
64,153
34,877
59,152
25,892
Depreciation charged in the year
14,302
21,676
4,713
1,479
Eliminated in respect of disposals
-
-
-
(16,782)
At 30 September 2020
78,455
56,553
63,865
10,589
Carrying amount
At 30 September 2020
721,627
54,703
23,040
5,914
At 30 September 2019
735,929
76,379
27,753
21,013		 Total
£
1,045,148
(30,402)
1,014,746
184,074
42,170
(16,782)
209,462
805,284
861,073

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

19 Tangible fixed assets - charity (continued)
The carrying value of land included in land and buildings comprises:
2020 2019
£ £
Freehold 35,000 34,000
Two of Expect Ltd.'s freehold properties were revalued on an open market basis as at 31 March 2014 by
Sutton Kersh, Chartered Valuation and Building Surveyors.

The trustees are not aware of any material changes in value since this last valuation.

At 30 September 2020, had the revalued freehold land and buildings been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £614,579 (2019: £686,980).

The revaluation surplus is disclosed in note 35.

20 Fixed asset investments - group

Listed
investments
£
Cost or valuation
At 1 October 2019 195,225
Disposals (195,225)
At 30 September 2020 -
Carrying amount
At 30 September 2020 -
At 30 September 2019 195,225
2020 2019
£ £
Investments at fair value comprise:
Amity Balanced Fund for Charities (176,835 units) - 195,225

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

21 Fixed asset investments - charity

Listed
investments
Other
investments
£
£
Cost or valuation
At 1 October 2019
195,225
1,124,308
Disposals
(195,225)
-
At 30 September 2020
-
1,124,308
Carrying amount
At 30 September 2020
-
1,124,308
At 30 September 2019
195,225
1,124,308
2020
Other investments comprise:
£
Investments in subsidiaries
22
1,124,308
2020
£
Investments at fair value comprise:
Amity Balanced Fund for Charities (2020: nil, 2019: 176,835 units)
-		 Total
£
1,319,533
(195,225)
1,124,308
1,124,308
1,319,533
2019
£
1,124,308
2019
£
195,225

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

22 Subsidiaries: Charity

Consolidated financial statements for the group are prepared and publicly available.

Details of the charity's subsidiaries at 30 September 2020 are as follows:

Name of undertaking Registered Nature of business Class of % Held % Held
office shares held **Direct ** Indirect
Access to Care Ltd England & Housing Support for Young Ordinary £1 100.00
Wales People
Rowan Care Ltd England & Domiciliary Care Ordinary £1 100.00
Wales
Focus Care Wales Ltd England & Supported Living Domicillary Ordinary £1 100.00
Wales Support Service
Focus On Work Ltd England & Delivering opportunities to Ordinary £1 100.00
Wales people with learning
disabilities
Your Future Training England & Provision of training services Ordinary £1 100.00
Solutions Ltd Wales to the Health & Social Care
sector
Housing Initiatives (U.K.) England & Housing support for people Company 100.00
Ltd Wales with learning disabilities and Limited by
other vulnerable people Guarantee
Name of undertaking Profit/(Loss)
Capital and
Reserves
£
£
Access to Care Ltd 45,572
198,217
Rowan Care Ltd 54,305
73,849
Focus Care Wales Ltd 48,762
189,316
Focus On Work Ltd 4,210
200
Your Future Training
Solutions Ltd (11,352)
(12,063)
Housing Initiatives (U.K.)
Ltd (976)
663,905
23 Financial instruments - group 2020 2019
£ £
Carrying amount of financial assets
Debt instruments measured at amortised cost 1,621,058 1,360,281
Instruments measured at fair value through profit or loss - 195,225
Carrying amount of financial liabilities
Measured at amortised cost 265,114 182,678
Loan commitments measured at cost less impairment 679,173 720,002

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

24
Financial instruments - charity
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Instruments measured at fair value through profit or loss
Carrying amount of financial liabilities
Measured at amortised cost
25
Debtors - group
Amounts falling due within one year:
Trade debtors
Corporation tax recoverable
Other debtors
Prepayments and accrued income
26
Debtors - charity
Amounts falling due within one year:
Trade debtors
Amounts due from subsidiary undertakings
Other debtors
Prepayments and accrued income		 2020
£
947,984
1,124,308
-
233,068
2020
£
445,395
44,631
729,628
16,215
1,235,869
2020
£
208,921
76,900
684,781
16,215
986,817		 2019
£
620,098
1,124,308
195,225
150,008
2019
£
707,492
44,631
268,250
25,248
1,045,621
2019
£
321,069
137,311
265,848
23,669
747,897

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

27 Creditors: amounts falling due within one year - group

Creditors: amounts falling due within one year - group
Notes
Bank loans
30
Corporation tax payable
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2020
£
48,667
-
118,174
127,878
68,481
68,755
431,955		 2019
£
44,090
6,061
102,700
89,146
37,492
56,040
335,529

A number of Expect's service users have been unable to open personal bank accounts due to the difficulty in appointing suitably independent advocates. As a result Expect Ltd. continues to receive all benefits and monies due to some service users. In order to protect the long term financial position of these service users, Expect Ltd. has operated a specially designated Client Money Account with the Buckinghamshire Building Society to hold these balances.

As at 30 September 2020 £442,805 (2019: £398,029) was held for service users and this amount has been excluded from the cash at bank and in hand figure and from trade creditors.

28 Creditors: amounts falling due within one year - charity

Creditors: amounts falling due within one year - charity
Other taxation and social security
Trade creditors
Amounts due to subsidiary undertakings
Other creditors
Accruals and deferred income		 2020
£
82,239
125,158
7,415
61,547
46,363
322,722		 2019
£
72,804
88,531
6,094
25,769
35,708
228,906

Some of our service users have been unable to open personal bank accounts due to the difficulty in appointing suitably independent advocates. As a result Expect Ltd. continues to receive all benefits and monies due to some service users. In order to protect the long term financial position of these service users, Expect Ltd. has operated a specially designated Client Money Account with the Buckinghamshire Building Society to hold these balances.

As at 30 September 2020 £442,805 (2019: £398,029) was held for service users and this amount has been excluded from the cash at bank and in hand figure and from trade creditors.

29 Creditors: amounts falling due after more than one year - group

Creditors: amounts falling due after
group		 more than one year -
2020 2019
Notes £ £
Bank loans 30 630,506 675,912

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

30 Loans and overdrafts - group

Loans and overdrafts - group
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2020
£
679,173
48,667
630,506
427,850		 2019
£
720,002
44,090
675,912
481,221

Security has been given in respect of bank loans of £679,173 (2019: £720,002).

The bank borrowings with Lloyds Bank of £435,834 (2019: £467,341) are secured by a fixed and floating charge over the assets of Housing Initiatives (U.K.) Ltd.

The loan with Futurebuilders of £243,339 (2019: £252,661) is secured by way of a legal charge over the leasehold buildings held by Housing Initiatives (U.K.) Ltd.

31 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £111,377 (2019 - £79,532).

At 30 September 2020 the group owed £20,843 (2019: £7,023) in respect of pension contributions.

32 Operating lease commitments - group

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2020
£
5,694
4,080
9,774		 2019
£
3,048
278
3,326

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

33 Operating lease commitments - charity

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2020
£
254
-
254		 2019
£
3,048
278
3,326

Designated funds - group The unrestricted funds include: Movement in funds Balance at
Expenditure
Transfers
Balance at
Income
Expenditure
Transfers
Balance at		 1 October 2018
1 October 2019
30 September		 2020 £
£
£
£
£
£
£
£		 Revaluation reserve
67,125
(1,476)
400,810
466,459
-
(112,395)
-
354,064		 Fixed asset fund
798,704
(59,529)
200,384
939,559
89,931
-
(29,412)
1,000,078		 Acquisition fund
384,791
-
(384,791)
-
-
-
-
-		 Project development fund
75,000
-
-
75,000
-
-
-
75,000		 1,325,620
(61,005)
216,403
1,481,018
89,931
(112,395)
(29,412)
1,429,142		 The trustees have designated certain funds to assist in the financial management of the charitable company. In order to assist the trustees to identify the free cash reserves a designated Fixed Asset fund should hold the value of both intangible (excluding goodwill) and tangible fixed assets less any loan balance used to acquire fixed assets and less the Revaluation Reserve as at each year end. The Project Development Fund is to fund initial costs in exploring and starting new projects.
34

FOR THE YEAR ENDED 30 SEPTEMBER 2020

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

35 Designated funds - charity

The unrestricted funds include:

Balance at
1 October 2018
Expenditure
Revaluation
reserve
67,125
(1,476)
Fixed asset
fund
798,704
(57,321)
Acquisition fund
384,791
-
Project
development
fund
75,000
-
1,325,620
(58,797)		 Transfers
Balance at
1 October 2019
Expenditure
-
65,649
(1,476)
75,340
816,723
(29,236)
(384,791)
-
-
-
75,000
-
(309,451)
957,372
(30,712)		 Transfers
Balance at
1 October 2019
Expenditure
-
65,649
(1,476)
75,340
816,723
(29,236)
(384,791)
-
-
-
75,000
-
(309,451)
957,372
(30,712)		 Transfers
-
(30,402)
-
-		 Balance at
30
September
2020
64,173
757,085
-
75,000
(1,476)
(29,236)
-
-
(30,712) (30,402) 896,258

The trustees have designated certain funds to assist in the financial management of the charitable company.

In order to assist the trustees to identify the free cash reserves a designated Fixed Asset fund should hold the value of both intangible (excluding goodwill) and tangible fixed assets less any loan balance used to acquire fixed assets and less the Revaluation Reserve as at each year end.

The Project Development Fund is to fund initial costs in exploring and starting new projects.

Total 2019 £ 528,418 2,104,721 195,225 1,094,631 (675,912) 3,247,083 Total 2019 £ 21,299 861,074 1,319,533 552,171 2,754,077
Unrestricted
Designated
Revaluation		 reserve 2019
2019
2019		 £
£
£		 507,119
21,299
-		 -
1,638,262
466,459		 195,225
-
-		 1,063,721
30,910
-		 -
(675,912)
-		 1,766,065
1,014,559
466,459		 Unrestricted
Designated
Revaluati		 on reserve 2019
2019
2019		 £
£
£		 -
21,299
-		 -
795,425
65,649		 1,319,533
-
-		 477,171
75,000
-		 1,796,704
891,724
65,649
Total 2020 £ 376,225 2,017,341 - 1,249,949 (630,506) 3,013,009 Total 2020 £ 15,974 805,284 1,124,308 718,377 2,663,943
Unrestricted
Designated
Revaluation		 reserve 2020
2020
2020		 £
£
£		 360,251
15,974
-		 -
1,663,277
354,064		 -
-
-		 1,223,616
26,333
-		 -
(630,506)
-		 1,583,867
1,075,078
354,064		 Unrestricted
Designated
Revaluation		 reserve 2020
2020
2020		 £
£
£		 -
15,974
-		 -
741,111
64,173		 1,124,308
-
-		 643,377
75,000
-		 1,767,685
832,085
64,173
Analysis of net assets between funds - group Fund balances at 30 September 2020 are represented by: Intangible fixed assets Tangible assets Investments Current assets/(liabilities) Long term liabilities Analysis of net assets between funds - charity Fund balances at 30 September 2020 are represented by: Intangible fixed assets Tangible assets Investments Current assets/(liabilities)
36 37

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

38 Coronavirus

During the first quarter of 2020 there was a global outbreak of Covid-19. The directors and senior management of the company have, from the outset, monitored the developments on a daily basis as well as developing, and reviewing, robust risk assessments in line with both central and local government guidance. In addition, a section on the pandemic has been added to the organisation’s Business Continuity Plan.

All Head Office staff worked from home for a period of 11 weeks and prior to the office re-opening full social distancing and PPE measures were implemented. Although the impact on the company has been negligible we continue to monitor the situation daily.

39 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2020 2019
£ £
Aggregate compensation 414,925 365,737

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the current year or previous year.

40 Cash generated from operations 2020 2019
£ £
(Deficit)/surplus for the year (234,073) (128,351)
Adjustments for:
Investment income recognised in statement of financial activities (2,697) (12,481)
Gain on disposal of tangible fixed assets (1,845) -
(Gain)/loss on disposal of intangible assets - 2,631
Gain on disposal of investments (177) -
Fair value gains and losses on investments - 1,769
Amortisation and impairment of intangible assets 152,193 128,638
Depreciation and impairment of tangible fixed assets 74,750 59,529
Taxation charge/credit - (3,550)
Movements in working capital:
(Increase) in debtors (190,248) (550,962)
Increase/(decrease) in creditors 97,910 (31,221)
Cash absorbed by operations (104,187) (533,998)

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

41 Analysis of changes in net (debt)/funds
At 1 October Cash flows At 30 September
2019 2020
£ £ £
Cash at bank and in hand 384,539 61,496 446,035
Loans falling due within one year (44,090) (4,577) (48,667)
Loans falling due after more than one year (675,912) 45,406 (630,506)
(335,463) 102,325 (233,138)