**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. 

- 1 - 



## **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. 

- 2 - 



## **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. 

- 3 - 



## **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. 

- 4 - 



## **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: 

- an annual review of the principal risks and uncertainties that the charity faces; 

- the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and 

- the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise. 

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: 

- To continue in the provision of services of the highest quality 

- To nurture and support the Expect Group's ethical and socially sensitive approach to delivering and commissioning services 

- To seek opportunities to work in partnership with commissioners and Service Users/Citizens to develop solutions to challenges currently affecting the delivery of effective and comprehensive levels of Service Provision 

- To demonstrate to existing and potential employees that working for the Expect Group is the decision of choice. In a competitive recruitment market place the _offer_ of high levels of support, training and comradeship as well genuine intent to pay the highest possible rates of pay to those who often feel undervalued will prove a strong inducement to recruitment. 

- To give investment in local communities a high level status 

- To continue to work for a social care market place where the choices and preferences of individuals are given the highest level of importance. Where choice is seen as a key driver to the design and delivery of services. 

- To place the maximisation of individuals, both Service Users, Citizens and employees as a high level objective. 

- To acknowledge opportunities to acquire suitable potential members of the Expect Group but to give priority to the consolidation, strengthening and development of those services and in areas where the Group currently operates. 

- To ensure that the Group's business evolution takes place within a strategic framework that places the highest value on retaining tight control over quality as it is a central belief that this provides the most effective means of securing the best. 

## **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. 

- 5 - 



## **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. 

- 6 - 



## **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 

- 7 - 



## **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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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. 

- 8 - 



## **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). 

- In our opinion, the financial statements: 

- give a true and fair view of the state of the group's and the charitable company's affairs as at 30 September 2020 and of the group's 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 the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the 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: 

- the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's or the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **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. 

- 9 - 



## **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: 

- the information given in the trustees' report, which includes the directors' 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 directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of 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: 

- adequate accounting records 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 trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report. 

## **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. 

- 10 - 



## **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 

- 11 - 



## **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. 

- 12 - 



## **EXPECT LTD. COMPANY LIMITED BY GUARANTEE BALANCE SHEET** 

## _**AS AT 30 SEPTEMBER 2020**_ 

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



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

Anthony Gilmore **Trustee** 

## **Company Registration No. 02357285** 

- 13 - 



## **EXPECT LTD. COMPANY LIMITED BY GUARANTEE CHARITY BALANCE SHEET** 

## _**AS AT 30 SEPTEMBER 2020**_ 

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



Anthony Gilmore **Trustee** 

## **Company Registration No. 02357285** 

- 14 - 



## **EXPECT LTD. COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS** 

## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ 

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



- 15 - 



**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. 

- 16 - 



## **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: 

- Residential Care - Supported Living - Domiciliary Care - Day Services 

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 

- 17 - 



## **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. 

- 18 - 



## **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. 

- 19 - 



## **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. 

- 20 - 



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



- 21 - 



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



## **5 Other trading activities** 

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



- 22 - 



## **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|



- 23 - 



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

## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ 

## **8 Charitable activities** 

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



## **For the year ended 30 September 2019** 

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



- 24 - 



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

## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ 

## **9 Support costs** 

|Staff costs<br>Depreciation<br>Central office costs<br>Audit fees<br>Accountancy<br>Legal and professional<br>Analysed between<br>Trading<br>Charitable activities|**Support**<br>**costs**<br>**Governance**<br>**costs**<br>**£**<br>**£**<br>887,510<br>-<br>194,362<br>-<br>293,640<br>-<br>-<br>10,500<br>-<br>29,951<br>-<br>33,694<br>1,375,512<br>74,145<br>-<br>14,763<br>1,375,512<br>59,382<br>1,375,512<br>74,145|**2020**<br>**£**<br>887,510<br>194,362<br>293,640<br>10,500<br>29,951<br>33,694<br>1,449,657<br>14,763<br>1,434,894<br>1,449,657|Support<br>costs<br>Governance<br>costs<br>£<br>£<br>257,976<br>-<br>184,804<br>-<br>153,114<br>-<br>-<br>10,380<br>-<br>37,744<br>-<br>120<br>595,894<br>48,244<br>-<br>10,684<br>595,894<br>37,560<br>595,894<br>48,244|2019<br>£<br>257,976<br>184,804<br>153,114<br>10,380<br>37,744<br>120|
|---|---|---|---|---|
|||||644,138|
|||||10,684<br>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<br>Other management & administration<br>Client care and support<br>Total|**2020**<br>**Number**<br>5<br>6<br>222<br>233|**2019**<br>**Number**<br>5<br>6<br>224|
|---|---|---|
|||235|



- 25 - 



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

## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ 

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



- 26 - 



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



- 27 - 



## **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|



- 28 - 



## 

||**Motor**<br>**Total**|**vehicles**|**£**<br>**£**||46,905<br>2,292,159|-<br>990|(30,402)<br>(30,402)|16,503<br>2,262,747||25,892<br>187,438|1,479<br>74,750|(16,782)<br>(16,782)|10,589<br>245,406||5,914<br>2,017,341||21,014<br>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**<br>**and buildings**<br>**Freehold**<br>**improvements**<br>**Fixtures and**<br>**fittings**<br>**Motor vehicles**<br>**£**<br>**£**<br>**£**<br>**£**<br>**Cost or valuation**<br>At 1 October 2019<br>800,082<br>111,256<br>86,905<br>46,905<br>Disposals<br>-<br>-<br>-<br>(30,402)<br>At 30 September 2020<br>800,082<br>111,256<br>86,905<br>16,503<br>**Depreciation and impairment**<br>At 1 October 2019<br>64,153<br>34,877<br>59,152<br>25,892<br>Depreciation charged in the year<br>14,302<br>21,676<br>4,713<br>1,479<br>Eliminated in respect of disposals<br>-<br>-<br>-<br>(16,782)<br>At 30 September 2020<br>78,455<br>56,553<br>63,865<br>10,589<br>**Carrying amount**<br>At 30 September 2020<br>721,627<br>54,703<br>23,040<br>5,914<br>At 30 September 2019<br>735,929<br>76,379<br>27,753<br>21,013|**Total**<br>**£**<br>1,045,148<br>(30,402)|
|---|---|
||1,014,746|
||184,074<br>42,170<br>(16,782)|
||209,462|
||805,284|
||861,073|



- 30 - 



## **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|



- 31 - 



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



- 32 - 



## **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)**<br>**Capital and**||||||
||||**Reserves**|||||
||||**£**<br>**£**|||||
||Access to Care Ltd|45,572<br>198,217||||||
||Rowan Care Ltd|54,305<br>73,849||||||
||Focus Care Wales Ltd|48,762<br>189,316||||||
||Focus On Work Ltd|4,210<br>200||||||
||Your Future Training|||||||
||Solutions Ltd|(11,352)<br>(12,063)||||||
||Housing Initiatives (U.K.)|||||||
||Ltd||(976)<br>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|



- 33 - 



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

## _**FOR THE YEAR ENDED 30 SEPTEMBER 2020**_ 

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



- 34 - 



## **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**<br>Bank loans<br>**30**<br>Corporation tax payable<br>Other taxation and social security<br>Trade creditors<br>Other creditors<br>Accruals and deferred income|**2020**<br>**£**<br>48,667<br>-<br>118,174<br>127,878<br>68,481<br>68,755<br>431,955|**2019**<br>**£**<br>44,090<br>6,061<br>102,700<br>89,146<br>37,492<br>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<br>Trade creditors<br>Amounts due to subsidiary undertakings<br>Other creditors<br>Accruals and deferred income|**2020**<br>**£**<br>82,239<br>125,158<br>7,415<br>61,547<br>46,363<br>322,722|**2019**<br>**£**<br>72,804<br>88,531<br>6,094<br>25,769<br>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**<br>**group**|**more than one year -**|||
|---|---|---|---|
|||**2020**|**2019**|
||**Notes**|**£**|**£**|
|Bank loans|**30**|630,506|675,912|



- 35 - 



## **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<br>Payable within one year<br>Payable after one year<br>Amounts included above which fall due after five years:<br>Payable by instalments|**2020**<br>**£**<br>679,173<br>48,667<br>630,506<br>427,850|**2019**<br>**£**<br>720,002|
|||44,090<br>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<br>Between two and five years|**2020**<br>**£**<br>5,694<br>4,080<br>9,774|**2019**<br>**£**<br>3,048<br>278|
|---|---|---|
|||3,326|



- 36 - 



## **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<br>Between two and five years|**2020**<br>**£**<br>254<br>-<br>254|**2019**<br>**£**<br>3,048<br>278|
|---|---|---|
|||3,326|



- 37 - 



## 

|**Designated funds - group**|The unrestricted funds include:|**Movement in funds**|**Balance at**<br>**Expenditure**<br>**Transfers**<br>**Balance at**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**Balance at**|**1 October 2018**<br>**1 October 2019**<br>**30 September**|**2020**|**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|Revaluation reserve<br>67,125<br>(1,476)<br>400,810<br>466,459<br>-<br>(112,395)<br>-<br>354,064|Fixed asset fund<br>798,704<br>(59,529)<br>200,384<br>939,559<br>89,931<br>-<br>(29,412)<br>1,000,078|Acquisition fund<br>384,791<br>-<br>(384,791)<br>-<br>-<br>-<br>-<br>-|Project development fund<br>75,000<br>-<br>-<br>75,000<br>-<br>-<br>-<br>75,000|1,325,620<br>(61,005)<br>216,403<br>1,481,018<br>89,931<br>(112,395)<br>(29,412)<br>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**<br>**1 October 2018**<br>**Expenditure**<br>Revaluation<br>reserve<br>67,125<br>(1,476)<br>Fixed asset<br>fund<br>798,704<br>(57,321)<br>Acquisition fund<br>384,791<br>-<br>Project<br>development<br>fund<br>75,000<br>-<br>1,325,620<br>(58,797)|**Transfers**<br>**Balance at**<br>**1 October 2019**<br>**Expenditure**<br>-<br>65,649<br>(1,476)<br>75,340<br>816,723<br>(29,236)<br>(384,791)<br>-<br>-<br>-<br>75,000<br>-<br>(309,451)<br>957,372<br>(30,712)|**Transfers**<br>**Balance at**<br>**1 October 2019**<br>**Expenditure**<br>-<br>65,649<br>(1,476)<br>75,340<br>816,723<br>(29,236)<br>(384,791)<br>-<br>-<br>-<br>75,000<br>-<br>(309,451)<br>957,372<br>(30,712)|**Transfers **<br>-<br>(30,402)<br>-<br>-|**Balance at**<br>**30**<br>**September**<br>**2020**<br>64,173<br>757,085<br>-<br>75,000|
|---|---|---|---|---|
|||(1,476)<br>(29,236)<br>-<br>-|||
|||(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. 

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## 

||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<br>Designated<br>Revaluation|reserve|2019<br>2019<br>2019|£<br>£<br>£||||507,119<br>21,299<br>-|-<br>1,638,262<br>466,459|195,225<br>-<br>-|1,063,721<br>30,910<br>-|-<br>(675,912)<br>-|1,766,065<br>1,014,559<br>466,459|||Unrestricted<br>Designated<br>Revaluati|on|reserve|2019<br>2019<br>2019|£<br>£<br>£||||-<br>21,299<br>-|-<br>795,425<br>65,649|1,319,533<br>-<br>-|477,171<br>75,000<br>-|1,796,704<br>891,724<br>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**<br>**Designated**<br>**Revaluation**|**reserve**|**2020**<br>**2020**<br>**2020**|**£**<br>**£**<br>**£**||||360,251<br>15,974<br>-|-<br>1,663,277<br>354,064|-<br>-<br>-|1,223,616<br>26,333<br>-|-<br>(630,506)<br>-|1,583,867<br>1,075,078<br>354,064|||Unrestricted<br>Designated<br>Revaluation|reserve||**2020**<br>**2020**<br>**2020**|**£**<br>**£**<br>**£**||||-<br>15,974<br>-|-<br>741,111<br>64,173|1,124,308<br>-<br>-|643,377<br>75,000<br>-|1,767,685<br>832,085<br>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)|



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## **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)|



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