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2021-09-30-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 2021

Meeting Challenge with Expertise and Compassion

EXPECT LTD. COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A F Gilmore
Mrs J E Hardman
Ms T Boylin
(Appointed 24 September
2021)
Mr D Broad
(Appointed 24 September
2021)
Ms S McCabe
(Appointed 24 September
2021)
Secretary Ms M Ollivier
(Resigned 14 April 2021)
Mrs D Collins
(Appointed 14 April 2021 &
resigned 9 May 2022)
Mr S Dewhurst
(Appointed 10 May 2022)
Charity number 701331
Company number 02357285
Registered office 151 Stanley Road
Bootle
Liverpool
Merseyside
L20 3DL
Auditor BWM
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Bankers CAF Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Solicitors Excello Law
1 Derby Square
Liverpool
L2 9XX

EXPECT LTD. COMPANY LIMITED BY GUARANTEE CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent auditor's report 8 - 10
Consolidated statement of financial activities 11
Consolidated balance sheet 12
Charity balance sheet 13
Consolidated statement of cash flows 14
Notes to the financial statements 15 - 40

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2021

The trustees present their annual report and financial statements for the year ended 30 September 2021.

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 2021

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.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

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 COVIDrelated challenges. Despite the impact that the pandemic continued to have 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 2020-2025. 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 Strategic Business Plan for 2020 – 2025 period details the planned 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.

Expect Ltd's Bowersdale Resource Centre remained open from May 2020 albeit with a reduced number of people in the Centre at any one time, in line with the continued COVID guidance. Feedback from service users indicates that being able to continue attending the Centre had a positive impact on their lives during what has been an extremely challenging time for people with learning disabilities and mental ill-health. 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 continued to operate 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 as a minimum 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.

The HR Department has continued to make safe recruitment a priority and we continue to recruit based on attitude and behaviour. New staff are provided with a comprehensive training programme of skill and knowledge-based learning, which is delivered both face-to-face and digitally; the training programme is constructed to be utilised in concert with their already identified appropriate personal values and ethics.

The Expect Board of trustees have continued to meet regularly with board meetings being held both remotely and, more recently, face to face to ensure a consistent and continuous decision making process.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Financial review

The operational deficit for the group during the year was £298k (2020: £234k). The deficit is after accounting for the amortisation of goodwill for the year of £150k (2020: £152k). When this is removed the operating deficit of the group for the year is £148k (2020: £82k).

As at 30 September 2021 total group funds of £2.7M (2020: £3M) 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.

Our financial strategy is focused on Expect diversifying its income streams and the types of services that we provided in line with the Government’s white paper on Adult Social Care. It is extremely important that we increase the number of local authorities with whom we work to ensure the longevity of the charity moving forward.

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 (2019-21 incl.) is £4.6M. This equates to a reserve level of fl.SM, of which £0.SM is required to be kept as cash for working capital. As at 30 September 2021 the amount of reserves held in the general fund was £1,766,449. 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 2021.

The group’s focus will remain on organic growth rather than growth through acquisition.

Investment Strategy and Performance

Due to the pandemic and its resultant challenges trustees have been unable to consider making investments. However, this is a priority for Trustees to explore in the upcoming financial year.

Risk Management

The trustees have a risk management strategy which comprises:

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Financial sustainability continues to be a major risk for the charity but the management of this risk ensures that we maintain sufficient working capital.

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 has a dedicated Health and Safety Manager to provide support and guidance to the Senior Management Team and support staff and they ensure that all of the group’s obligations in this area are met.

Plans for future periods

The Expect Group continues to work in line with is latest five year Strategic Business Plan, which is regularly reviewed and updated as appropriate. We continue to build on the robust platform that has been established in recent years and the plan retains our strong ethical underpinnings and values. 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 2018), each of whom agrees to contribute £10 in the event of the charity winding up.

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:

Mr A F Gilmore
Mrs M MacDonald (Resigned 30 September 2021)
Mrs J E Hardman
Mr D Egan (Resigned 4 August 2021)
Ms T Boylin (Appointed 24 September 2021)
Mr D Broad (Appointed 24 September 2021)
Ms S McCabe (Appointed 24 September 2021)

EXPECT LTD. COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

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.

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

Mr A F Gilmore Trustee

22 July 2022

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

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 MEMBERS 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 2021 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:

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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

EXPECT LTD. COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EXPECT LTD.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

EXPECT LTD. COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EXPECT LTD.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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 2022

Chartered Accountants Statutory Auditor Suite 5.1 12 Tithebarn Street Liverpool L2 2DT

EXPECT LTD.

COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Unrestricted
Unrestricted
funds
funds
2021
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
25,300
7,017
Income from charitable activities
4
4,120,320
4,276,407
Other trading activities
5
1,457,460
1,668,577
Investments
6
197
2,697
Other income
7
24,046
-
Total income
5,627,323
5,954,698
Expenditure on:
Raising funds
8
1,388,139
1,474,141
Charitable activities
9
4,535,243
4,716,653
Other
13
1,718
(1,845)
Total expenditure
5,925,100
6,188,949
Net gains/(losses) on investments
14
-
177
Net expenditure for the year/
Net movement in funds
(297,777)
(234,074)
Fund balances at 1 October 2020
3,013,009
3,247,083
Fund balances at 30 September 2021
2,715,232
3,013,009		 Unrestricted
Unrestricted
funds
funds
2021
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
25,300
7,017
Income from charitable activities
4
4,120,320
4,276,407
Other trading activities
5
1,457,460
1,668,577
Investments
6
197
2,697
Other income
7
24,046
-
Total income
5,627,323
5,954,698
Expenditure on:
Raising funds
8
1,388,139
1,474,141
Charitable activities
9
4,535,243
4,716,653
Other
13
1,718
(1,845)
Total expenditure
5,925,100
6,188,949
Net gains/(losses) on investments
14
-
177
Net expenditure for the year/
Net movement in funds
(297,777)
(234,074)
Fund balances at 1 October 2020
3,013,009
3,247,083
Fund balances at 30 September 2021
2,715,232
3,013,009		 Unrestricted
Unrestricted
funds
funds
2021
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
25,300
7,017
Income from charitable activities
4
4,120,320
4,276,407
Other trading activities
5
1,457,460
1,668,577
Investments
6
197
2,697
Other income
7
24,046
-
Total income
5,627,323
5,954,698
Expenditure on:
Raising funds
8
1,388,139
1,474,141
Charitable activities
9
4,535,243
4,716,653
Other
13
1,718
(1,845)
Total expenditure
5,925,100
6,188,949
Net gains/(losses) on investments
14
-
177
Net expenditure for the year/
Net movement in funds
(297,777)
(234,074)
Fund balances at 1 October 2020
3,013,009
3,247,083
Fund balances at 30 September 2021
2,715,232
3,013,009
funds
2021
£
Income and endowments from:
Donations and legacies
3		 25,300
Income from charitable activities
4		 4,120,320
Other trading activities
5		 1,457,460
Investments
6		 197
Other income
7		 24,046
Total income 5,627,323
Expenditure on:
Raising funds
8		 1,388,139
Charitable activities
9		 4,535,243
1,718
Other
13		 (1,845)
Total expenditure 6,188,949
177
5,925,100
Net gains/(losses) on investments
14		 -
Net expenditure for the year/
Net movement in funds
Fund balances at 1 October 2020
Fund balances at 30 September 2021
(297,777) (234,074)
3,247,083
3,013,009
3,013,009
2,715,232

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 CONSOLIDATED BALANCE SHEET

AS AT 30 SEPTEMBER 2021

Notes 2021 2021 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		 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
£ £ £
Fixed assets
Goodwill
16
Other intangible assets
16
Total intangible assets
Tangible assets
18
Current assets		 1,138,688
455,387
1,594,075
(420,258)		 213,383
10,692
224,075
1,943,341
2,167,416
1,173,817
3,341,233
(626,001)
2,715,232
2,715,232
2,715,232		 1,235,869
446,035
1,681,904
(431,955)
1,075,078
1,583,867
354,064
Debtors
24
Cash at bank and in hand
Creditors: amounts falling due within
one year
26
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
29
Net assets		 1,394,825
885,533
434,874
(630,506)
3,013,009
3,013,009
3,013,009
Income funds
Unrestricted funds
Designated funds
34
General unrestricted funds
Revaluation reserve
34
The financial statements were approved by the Trustees on 22 July 2022

Mr A F Gilmore Trustee

Company registration number 02357285

EXPECT LTD. COMPANY LIMITED BY GUARANTEE CHARITY BALANCE SHEET

AS AT 30 SEPTEMBER 2021

Notes 2021 2021 2020 2020
£ £ £ £
Fixed assets
Intangible assets
17
Tangible assets
19
Investments
20
Current assets		 916,047
140,340
1,056,387
(294,928)		 10,692
763,830
1,124,308
1,898,830
761,459
2,660,289
2,660,289
2,660,289		 986,817
54,282
1,041,099
(322,722)
832,085
1,767,685
64,173		 15,974
805,284
1,124,308
1,945,566
Debtors
25
Cash at bank and in hand
Creditors: amounts falling due within
one year
27
Net current assets 718,377
Total assets less current liabilities 786,825
1,810,767
62,697
2,663,943
Income funds
Unrestricted funds
Designated funds
35
General unrestricted funds
Revaluation reserve
35
2,663,943
2,663,943

The financial statements were approved by the Trustees on 22 July 2022

Mr A F Gilmore Trustee

Company Registration No. 02357285

EXPECT LTD. COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
39
Investing activities		 2021 2020
£
£
(104,188)
(990)
15,465
195,402
2,697
212,574
-
(46,890)
(46,890)
61,496
384,539
446,035		 2020
£
£
(104,188)
(990)
15,465
195,402
2,697
212,574
-
(46,890)
(46,890)
61,496
384,539
446,035
£ £
-
-
-
197
50,000
(44,926)		 4,081
197
5,074
9,352
446,035
455,387
212,574
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed assets
Proceeds on disposal of investments
Investment income received
Net cash generated from investing
activities
Financing activities
Proceeds of new bank loans
Repayment of bank loans
Net cash generated from/(used in)
financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
(46,890)
61,496
384,539
446,035

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

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 with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

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 2021. 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 financial statements, the trustees have a reasonable expectation that the charity 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 financial statements.

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 2021

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.

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 10.

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 2021

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 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 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.

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 Straight line basis over 50 years
Long 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

Freehold land and assets in the course of construction are not depreciated.

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.

1.9 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).

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(continued)

1.10 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.

1.11 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.

1.12 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 on these distributed profits.

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

1.13 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.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(continued)

1.14 Retirement benefits

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

1.15 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.

1.16 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.

1.17 Group relief

The financial statements have been prepared on the assumption that group relief will be used to facilitate the transfer of corporation tax losses between companies in the group. No compensation is made in respect of any loss relief between companies.

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.

3 Donations and legacies

Unrestricted
Unrestricted
funds
funds
2021
2020
£
£		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
funds funds
2021 2020
£ £
Donations and gifts 1,890 1,047
Grant income 23,410 5,970
25,300 7,017

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

4 Income from charitable activities

Residential
Care Services
2021
£
Care Package Income
731,221
Client Contributions
12,402
Service Charge Income
75
Property Management
Fees
3,219
Utility recharges
-		 Residential
Care Services
2021
£
Care Package Income
731,221
Client Contributions
12,402
Service Charge Income
75
Property Management
Fees
3,219
Utility recharges
-		 Supported
Living
Services
Domiciliary
Care Services
Day Services
2021
2021
2021		 Supported
Living
Services
Domiciliary
Care Services
Day Services
2021
2021
2021		 Supported
Living
Services
Domiciliary
Care Services
Day Services
2021
2021
2021		 Total
2021		 Total
2020
2021 2021 2021
£ £ £ £ £ £
731,221 3,166,157 16,415 149,108 4,062,901 4,125,565
12,402 3,733 - - 16,135 78,386
75 219 - - 294 46,946
3,219 4,614 - - 7,833 7,975
- 32,297 - - 32,297 16,704
Other income - 330 - 530 860 831
746,917 3,207,350 16,415 149,638 4,120,320 4,276,407
Analysis by fund
Unrestricted funds 746,917 3,207,350 16,415 149,638 4,120,320 4,276,407

For the year ended 30 September 2020

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

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

5 Other trading activities

Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Trading activity income: Young People's Support
287,691
553,280
Trading activity income: Supported Living
779,683
696,671
Trading activities income: Housing support
140,735
158,232
Trading activity income: Domicilliary Care
249,351
260,394
Other trading activities
1,457,460
1,668,577		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Trading activity income: Young People's Support
287,691
553,280
Trading activity income: Supported Living
779,683
696,671
Trading activities income: Housing support
140,735
158,232
Trading activity income: Domicilliary Care
249,351
260,394
Other trading activities
1,457,460
1,668,577		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Trading activity income: Young People's Support
287,691
553,280
Trading activity income: Supported Living
779,683
696,671
Trading activities income: Housing support
140,735
158,232
Trading activity income: Domicilliary Care
249,351
260,394
Other trading activities
1,457,460
1,668,577
funds funds
2021 2020
£ £
287,691 553,280
779,683 696,671
140,735 158,232
249,351 260,394
1,457,460 1,668,577
6
Investments
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Income from listed investments
-
2,122
Interest receivable
197
575
197
2,697
funds funds
2021 2020
£ £
- 2,122
197 575
197 2,697
7
Other income
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Other income
24,046
-
funds funds
2021 2020
£ £
24,046 -
8
Raising funds
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

8 Raising funds (continued) (continued)
Trading costs
Other trading activities - non-charitable 151,461 163,373
Other trading activities - charitable 125,906 70,296
Staff costs 1,055,184 1,193,129
Depreciation and impairment 32,545 32,580
Support costs 23,043 14,763
Trading costs
1,388,139 1,474,141
1,388,139 1,474,141

9 Charitable activities

Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
2021
2021
2021
£
£
£		 Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
2021
2021
2021
£
£
£		 Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
2021
2021
2021
£
£
£		 Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
2021
2021
2021
£
£
£		 Day
Services		 Total
2021		 Total
2020
2021
2021 2021 2021
£ £ £ £ £ £
Staff costs 657,746 2,143,503 79,779 46,808 2,927,836 3,075,147
Other charitable
expenditure
114,349 30,787 1,399 25,616 172,151 206,612
Share of support costs (see
note 10)
772,095 2,174,290 81,178 72,424 3,099,987 3,281,759
214,159 915,669 196,313 46,676 1,372,817 1,375,512
Share of governance costs
(see note 10)
15,609 15,610 15,610 15,610 62,439 59,382
1,001,863 3,105,569 293,101 134,710 4,535,243 4,716,653

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

9 Charitable activities (continued)

For the year ended 30 September 2020

Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
£
£
£		 Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
£
£
£		 Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
£
£
£		 Residential
Care
Services
Supported
Living
Services
Domiciliary
Care
Services
£
£
£		 Day
Services		 Total
2020
£ £ £ £ £
Staff costs 588,821 2,232,075 201,456 52,795 3,075,147
Other charitable expenditure 94,985 75,150 2,272 34,205 206,612
683,806 2,307,225 203,728 87,000 3,281,759
Share of support costs (see note 10) 214,581 917,466 196,698 46,767 1,375,512
Share of governance costs (see note 10) 14,847 14,845 14,845 14,845 59,382
Analysis by fund
913,234 3,239,536 415,271 148,612 4,716,653
Unrestricted funds 913,234 3,239,536 415,271 148,612 4,716,653

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

10 Support costs

Support costs
Support
costs
Governance
costs		 2021
Support costs
Governance
costs		 2020
£ £ £ £ £ £
Staff costs 954,132 - 954,132 887,510 - 887,510
Depreciation 191,886 - 191,886 194,362 - 194,362
Central office costs 226,799 - 226,799 293,640 - 293,640
Audit fees - 11,022 11,022 - 10,500 10,500
Accountancy - 38,022 38,022 - 29,951 29,951
Legal and professional - 36,438 36,438 - 33,694 33,694
1,372,817 85,482 1,458,299 1,375,512 74,145 1,449,657
Analysed between
Trading - 23,043 23,043 - 14,763 14,763
Charitable activities 1,372,817 62,439 1,435,256 1,375,512 59,382 1,434,894
1,372,817 85,482 1,458,299 1,375,512 74,145 1,449,657

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.

11 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.

12 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2021 2020
Number Number
Key management personnel 5 5
Other management & administration 6 6
Client care and support 181 222
Total 192 233

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

12
Employees		 (continued) (continued)
Employment costs
Wages and salaries
Social security costs
Other pension costs
During the year the group paid £51,843 (2020: £nil) in redundancy costs.
The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,000 to £69,999
£80,000 to £89,999
£90,000 tp £99,999
2021 2020
£ £
4,448,086 4,658,347
385,545 386,062
103,521 111,377
4,937,152 5,155,786
2021 2020
Number Number
1 1
- 1
1 -

Contributions totalling £21,619 (2020: £18,453) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

13 Other

Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Net loss on disposal of intangible fixed assets
1,718
-
Net profit on disposal of tangible fixed assets
-
(1,845		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Net loss on disposal of intangible fixed assets
1,718
-
Net profit on disposal of tangible fixed assets
-
(1,845		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Net loss on disposal of intangible fixed assets
1,718
-
Net profit on disposal of tangible fixed assets
-
(1,845
funds funds
2021 2020
£ £
1,718 -
- (1,845
14
Net gains/(losses) on investments
Total Unrestricted
funds
2021 2020
£ £
Gain/(loss) on sale of listed investments - 177

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

15 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
Taxation compliance services
All other non-audit services
Total non-audit fees		 2020
£
10,500
1,000
29,951
30,951
Total
£
782,898
2021
£
11,022
1,040
38,022
39,062
16
Intangible fixed assets - group
Cost
At 1 October 2020
Disposals
At 30 September 2021
Amortisation and impairment
At 1 October 2020
Amortisation charged for the year
Disposals
At 30 September 2021
Carrying amount
At 30 September 2021
At 30 September 2020		 Goodwill Software
£ £
733,318 49,580
- (4,886) (4,886)
778,012
406,673
150,432
733,318 44,694
373,067 33,606
146,868 3,564
- (3,168) (3,168)
553,937
224,075
376,225
519,935 34,002
213,383 10,692
360,251 15,974

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

17
Intangible fixed assets - charity
Software
£
Cost
At 1 October 2020 49,580
Disposals (4,886)
At 30 September 2021 44,694
Amortisation and impairment
At 1 October 2020 33,606
Amortisation charged for the year 3,564
Disposals (3,168)
At 30 September 2021 34,002
Carrying amount
At 30 September 2021 10,692
At 30 September 2020 15,974

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

18 Tangible fixed assets - group

Tangible fixed assets - group Tangible fixed assets - group
Freehold land
and buildings
£		 Long
Leasehold
property
Freehold
improvements		 Plant and
equipment
Fixtures and
fittings		 Computers Motor
vehicles		 Total
£
£ £ £ £ £ £ £
Cost or valuation
At 1 October 2020 1,512,360 528,782 111,256 5,951 86,905 990 16,503 2,262,747
2,262,747
245,406
74,000
319,406
At 30 September 2021 1,512,360 528,782 111,256 5,951 86,905 990 16,503
Depreciation and impairment
At 1 October 2020 98,138 14,194 56,553 1,795 63,865 272 10,589
Depreciation charged in the year 33,470 13,102 21,101 1,038 3,869 237 1,183
At 30 September 2021 131,608 27,296 77,654 2,833 67,734 509 11,772
Carrying amount
At 30 September 2021 1,380,752 501,486 33,602 3,118 19,171 481 4,731 1,943,341
2,017,341
At 30 September 2020 1,414,222 514,588 54,703 4,156 23,040 718 5,914

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

18 Tangible fixed assets - group (continued)
The carrying value of land included in land and buildings comprises:
2021 2020
£ £
Freehold 35,000 35,000

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 freehold and leasehold properties held by Housing Initiatives (U.K.) Limited were valued on 31 March 2009 by Collertons Surveyors and were valued at market value assuming vacant possession.

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

At 30 September 2021, 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 £1,174,562 (2020: £1,266,227).

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

Tangible fixed assets - charity Tangible fixed assets - charity Tangible fixed assets - charity Tangible fixed assets - charity Tangible fixed assets - charity
Freehold land
and buildings
Freehold
improvements
Fixtures and
fittings
Motor vehicles
£
£
£
£		 Total
£ £ £ £ £
Cost or valuation
At 1 October 2020 800,082 111,256 86,905 16,503 1,014,746
At 30 September 2021 800,082 111,256 86,905 16,503 1,014,746
Depreciation and impairment
At 1 October 2020 78,455 56,553 63,865 10,588 209,461
Depreciation charged in the year 15,302 21,101 3,869 1,183 41,455
At 30 September 2021 93,757 77,654 67,734 11,771 250,916
Carrying amount
At 30 September 2021 706,325 33,602 19,171 4,732 763,830
At 30 September 2020 721,627 54,703 23,040 5,915 805,284

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

19 Tangible fixed assets - charity (continued)
The carrying value of land included in land and buildings comprises:
2021 2020
£ £
Freehold 35,000 35,000

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 2021, 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 £542,178 (2020: £614,579).

The revaluation surplus is disclosed in note 35.

20 Fixed asset investments - charity

Other
investments
£		 Other
investments
£
£
Cost or valuation
At 1 October 2020 & 30 September 2021 1,124,308
Carrying amount
At 30 September 2021 1,124,308
At 30 September 2020 1,124,308
2021
Other investments comprise:
£
2020
£
Investments in subsidiaries
21
1,124,308		 1,124,308

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

21 Subsidiaries: Charity

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

Details of the charity's subsidiaries at 30 September 2021 are as follows:

Name of undertaking Registered Nature of business Class of % Held % Held
office shares held Direct Indirect
Access to Care Ltd England & Wales Housing Support for Young Ordinary £1 100.00
People
Rowan Care Ltd England & Wales Domiciliary Care Ordinary £1 100.00
Focus Care Wales Ltd England & Wales Supported Living Domicillary Ordinary £1 100.00
Support Service
Focus On Work Ltd England & Wales Delivering opportunities to Ordinary £1 100.00
people with learning disabilities
(dormant)
Your Future Training England & Wales Provision of training services Ordinary £1 100.00
Solutions Ltd to the Health & Social Care
sector
Housing Initiatives (U.K.) Ltd England & Wales Housing support for people Company 100.00
with learning disabilities and Limited by
other vulnerable people Guarantee
Name of undertaking
Profit/(Loss)
Capital and
Reserves
£
£
Access to Care Ltd
(82,083)
51,134
Rowan Care Ltd
88,319
77,168
Focus Care Wales Ltd
119,804
219,119
Focus On Work Ltd
-
200
Your Future Training
Solutions Ltd
(7,878)
(19,941)
Housing Initiatives (U.K.) Ltd
(25,416)
638,489
22
Financial instruments		 2021 2020
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost		 £ £
1,538,411 1,621,058
937,013 944,287

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

23
Financial instruments - charity		 2021 2020
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost
24
Debtors - group
Amounts falling due within one year:
Trade debtors
Corporation tax recoverable
Other debtors
Prepayments and accrued income
25
Debtors - charity
Amounts falling due within one year:
Trade debtors
Amounts due from subsidiary undertakings
Other debtors
Prepayments and accrued income		 £ £
956,834 947,984
1,124,308 1,124,308
201,592 233,068
2021 2020
£ £
828,376 445,395
44,631 44,631
254,648 729,628
11,033 16,215
1,138,688 1,235,869
2021 2020
£ £
615,727 208,921
90,025 76,900
200,767 684,781
9,528 16,215
916,047 986,817

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

26 Creditors: amounts falling due within one year - group

Notes 2021 2020
£ £
Bank loans
30		 58,249 48,667
Other taxation and social security 107,370 118,174
Deferred income
28		 1,876 -
Trade creditors
Other creditors
Accruals		 142,580 127,878
47,595 68,481
62,588 68,755
420,258 431,955

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 2021 £315,966 (2020: £442,805) was held for service users and this amount has been excluded from the cash at bank and in hand figure and from creditors.

27 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		 2021 2020
£ £
87,816 82,239
133,560 125,158
5,520 7,415
22,171 61,547
45,861 46,363
294,928 322,722

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 2021 £315,966 (2020: £442,805) was held for service users and this amount has been excluded from the cash at bank and in hand figure and from creditors.

28 Deferred income - group

2021 2020
£ £
Other deferred income 1,876 -

Deferred income is included in the financial statements as follows:

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

28
Deferred income - group
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 October 2020
Resources deferred in the year
Deferred income at 30 September 2021
29
Creditors: amounts falling due after more than one year -
group
Notes
Bank loans
30
30
Loans and overdrafts - group		 (continued) (continued)
2021 2020
£ £
1,876 -
- -
1,876 -
1,876 -
2021 2020
£ £
626,001 630,506
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2021 2020
£ £
684,250 679,173
58,249 48,667
626,001 630,506
376,154 427,850

Security has been given in respect of bank loans of £634,251 (2020: £679,173).

The bank borrowings with Lloyds Bank of £403,040 (2020: £435,834) are secured by a fixed and floating charge over four of the freehold properties held by Housing Initiatives (U.K.) Ltd.

The bank borrowings with Social Investment Business (formerly Futurebuilders England Limited) of £231,211 (2020: £243,339) are secured by a fixed and floating charge over the leasehold properties.

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

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 £103,521 (2020 - £111,377).

At 30 September 2021 the group owed £1,306 (2020: £20,843) 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		 2021 2020
£ £
32,962 32,393
22,557 44,724
55,519 77,117

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:

2021 2020
£ £
Within one year - 254

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

34 Designated funds - group

The unrestricted funds include:

Balance at
1 October 2019
£		 Balance at
1 October 2019
£		 Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds
Income
Expenditure		 Transfers
Balance at
1 October 2020
Expenditure		 Transfers
Balance at
30 September
2021
£ £ £ £ £ £ £ £
- 354,064
1,000,078
Revaluation reserve 466,459 (112,395) - (21,755) 102,565 434,874
Fixed asset fund 939,559 89,931 - (29,412) (4,886) (110,241) 884,951
Project development fund 75,000 - - - 75,000 - - 75,000
89,931 1,429,142
1,481,018 (112,395) (29,412) (26,641) (7,676) 1,394,825

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.

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

35 Designated funds - charity

The unrestricted funds include:

Balance at
1 October 2019
Expenditure
Transfers
Balance at
1 October 2020
Expenditure
Revaluation
reserve
65,649
(1,476)
-
64,173
(1,476)
Fixed asset
fund
816,723
(29,236)
(30,402)
757,085
(40,374)
Project
development
fund
75,000
-
-
75,000
-		 Balance at
1 October 2019
Expenditure
Transfers
Balance at
1 October 2020
Expenditure
Revaluation
reserve
65,649
(1,476)
-
64,173
(1,476)
Fixed asset
fund
816,723
(29,236)
(30,402)
757,085
(40,374)
Project
development
fund
75,000
-
-
75,000
-		 Balance at
1 October 2019
Expenditure
Transfers
Balance at
1 October 2020
Expenditure
Revaluation
reserve
65,649
(1,476)
-
64,173
(1,476)
Fixed asset
fund
816,723
(29,236)
(30,402)
757,085
(40,374)
Project
development
fund
75,000
-
-
75,000
-		 Transfers
Balance at
30
September
2021
-
62,697
Fixed asset
fund
(4,886)
711,825
Project
development
fund
75,000
-
-
75,000		 - -
75,000
957,372
(30,712)
(30,402)
896,258
(41,850)
(4,886)
849,522

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.

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

36
Analysis of net assets between funds - group		 36
Analysis of net assets between funds - group		 36
Analysis of net assets between funds - group		 36
Analysis of net assets between funds - group		 36
Analysis of net assets between funds - group		 36
Analysis of net assets between funds - group		 Total
2020
£
376,225
2,017,341
1,249,949
Unrestricted
Designated
Revaluation
reserve
2021
2021
2021
£
£
£
Fund balances at 30 September 2021 are
represented by:
Intangible fixed assets
213,383
10,692
-
Tangible assets
(3)
1,508,470
434,874
Current assets/(liabilities)
1,220,793
(46,976)
-
Long term liabilities
(39,351)
(586,650)
-
1,394,822
885,536
434,874		 Total
Unrestricted
Designated
Revaluation
reserve
2021 2021 2021 2021 2020 2020 2020
£ £ £ £ £ £ £
213,383 10,692 - 224,075 360,251 15,974 -
(3) 1,508,470 434,874 1,943,341 - 1,663,277 354,064
1,220,793 (46,976) - 1,173,817 1,223,616 26,333 -
(39,351) (586,650) - (626,001) - (630,506) - (630,506)
3,013,009
Total
2020
£
15,974
805,284
1,124,308
718,377
2,663,943
1,394,822 885,536 434,874 2,715,232 1,583,867 1,075,078 354,064
37
Analysis of net assets between funds - charity
Unrestricted
Designated
Revaluation
reserve
2021
2021
2021
£
£
£
Fund balances at 30 September 2021
are represented by:
Intangible fixed assets
-
10,692
-
Tangible assets
-
701,133
62,697
Investments
1,124,308
-
-
Current assets/(liabilities)
686,459
75,000
-
1,810,767
786,825
62,697		 Total Unrestricted Designated Revaluati
on
reserve
2021 2021 2021 2021 2020 2020 2020
£ £ £ £ £ £ £
- 10,692 - 10,692 - 15,974 -
- 701,133 62,697 763,830 - 741,111 64,173
1,124,308 - - 1,124,308 1,124,308 - -
686,459 75,000 - 761,459 643,377 75,000 -
1,810,767 786,825 62,697 2,660,289 1,767,685 832,085 64,173

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

FOR THE YEAR ENDED 30 SEPTEMBER 2021

38 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 654,842 414,925

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.

The group has taken advantage of the disclosure exemptions to which it is entitled regarding transactions between parent and 100% owned subsidiary companies and there are no other disclosable related party transactions.

39
Cash generated from operations
2021
2020		 39
Cash generated from operations
2021
2020		 39
Cash generated from operations
2021
2020
£
£
Deficit for the year
(297,774)
(234,073)
Adjustments for:
Investment income recognised in statement of financial activities
(197)
(2,697)
Gain on disposal of tangible fixed assets
-
(1,845)
Loss on disposal of intangible assets
1,718
-
Gain on disposal of investments
-
(177)
Amortisation and impairment of intangible assets
150,432
152,193
Depreciation and impairment of tangible fixed assets
74,000
74,750
Movements in working capital:
Decrease/(increase) in debtors
97,181
(190,248)
(Decrease)/increase in creditors
(23,155)
97,910
Increase in deferred income
1,876
-
Cash generated from/(absorbed by) operations
4,081
(104,187)
(197)
(2,697)
-
(1,845)
1,718
-
-
(177)
150,432
152,193
74,000
74,750
97,181
(190,248)
(23,155) 97,910
1,876 -
4,081
(104,187)

EXPECT LTD. COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

40 Analysis of changes in net (debt)/funds
At 1 October Cash flows At 30 September
2020 2021
£ £ £
Cash at bank and in hand 446,035 9,352 455,387
Loans falling due within one year (48,667) (9,582) (58,249)
Loans falling due after more than one year (630,506) 4,505 (626,001)
(233,138) 4,275 (228,863)