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2021-09-30-accounts

Company Registration No: 02345874

Charity Registration No: 701958

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

REPORT OF THE DIRECTORS AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

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CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

REPORT OF THE DIRECTORS AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

CONTENTS PAGES
Trustees’/Directors’ Report 1 to 4
Independent Examiner’s Report 5
Statement of Financial Activities/Summary Income and Expenditure Account 6
Balance Sheet 7
Notes to the Financial Statements 8 to 15

Page 1

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

TRUSTEES’/DIRECTORS’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

The trustees present their report, together with the unaudited financial statements of the charity, for the year ended 30 September 2021.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing documents, the Charities Act 2011 and ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland’, published in October 2019.

Trustees of the Charity

The directors of the charitable company are its trustees for the purposes of charity law. Details of the trustees who have served during the year and since the year end can be found on page 4.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The objects of the charity are to relieve, treat and promote the relief and treatment of those diagnosed with Alzheimer’s disease and related disorders and to provide support for such persons and their families. The trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit in reviewing the charity’s aims and objectives.

In previous years, the charity’s objectives were primarily achieved by the letting of two fully equipped care homes to its operating subsidiary Poplars Alzheimer’s Lodge Limited, until those homes were sold in 2019. Since then, the charity has continued to provide advocacy and support to those affected by Alzheimer’s and related disorders, including their families and carers.

The trustees have continued to review the strategic plan, in order to maintain the operation of the organisation in the manner most consistent with the needs of those requiring our services, focussing attention on the following key areas:

The charity has been served throughout by numerous volunteers who have given their time freely to provide the following support services:

The trustees acknowledge their indebtedness to the volunteers for their continued efforts on behalf of the organisation.

ACHIEVEMENTS, PERFORMANCE AND PLANS FOR FUTURE PERIODS

The financial year under review has again been an extremely challenging one but has allowed for a continued period of restructuring and refocussing for the charity.

The previously mentioned property sales generated sufficient unrestricted reserves to enable the charity to repay its long-term loans with Barclays Bank, and other external creditors, in full.

Following the sale of the two care homes, and once the final debtors/creditors reconciliations had been completed, the directors of PAL, with the full support of their fellow charity trustees, took the decision to place that company into liquidation, which is currently in progress and is being handled by Begbies Traynor Group.

In January 2020, the trustees had agreed a proposed strategy of internal change and external expansion to enable the charity to sustain and grow, both geographically and financially, to be funded out of the reserves from the sale of the two homes. These plans had to be quickly adapted to help local people affected by dementia through the significant challenges of three Covid lockdowns and a slow return to a ‘new normal’.

As a consequence, the priority of the charity during 2020/2021 has centred on helping people to be resilient and supporting them during the waves of Covid-19, so that they were able to stay connected to their families, support networks and communities.

With significantly reduced income from fundraising, the trustees had to utilise the Coronavirus Job Retention Scheme (CJRS), and staff were furloughed, which prevented any job losses during the pandemic and reduced cash outflow.

Page 2

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

TRUSTEES’/DIRECTORS’ REPORT (Continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

ACHIEVEMENTS, PERFORMANCE AND PLANS FOR FUTURE PERIODS ( Continued )

Plans for the Future

The effects of Covid-19 on the charity cannot be understated. During the 2020/2021 financial year and beyond, projections show a predicted deficit as the charity continues its transition. Throughout the financial year, we continued to look at ways to develop both trading opportunities and grant-supported services, with a more definite focus on community and home-based support. The pandemic disrupted our plans and we continued to find ourselves in a very challenging position, as fundraising events that usually generated unrestricted income were cancelled in line with government restrictions.

In May 2021, we successfully secured funding for two new projects to contribute to our ongoing service delivery. This enabled us to provide a new dementia-specific bereavement service in Stockton-on-Tees and a ‘reducing loneliness and isolation’ volunteer service across the three boroughs of Stockton-on-Tees, Middlesbrough and Redcar & Cleveland. These projects created one new job opportunity and five new volunteer positions.

The trustees examined the proposed business plan in the light of continuing Covid restrictions and concluded that the staffing levels together with operating costs were too high and, after consultation, made further posts redundant in order to conserve cash reserves. The likelihood of grant funding increasing substantially in the near term is slim in the extreme, though the demand for the services that Clevearc can provide is unquestionable.

We continued building working relationships with other organisations to enable us to deliver projects in other areas. We were able to work with an independent expert to explore possible opportunities for the sustainability of the charity going forward. This work will now inform the review of the charity’s Vision, Mission, Values and Strategic Direction and the formulation and application of a new business plan.

Because there is increased uncertainty as regards future funding to the voluntary sector due to Covid-19 we will search for new income streams, particularly through trading and donations, to improve the charity’s financial stability. We will also continue our work around improving care for people and families living with dementia across the Tees Valley, and assess its impact through our ongoing development and success in creating inclusive dementia-friendly communities.

FINANCIAL REVIEW

A summary of the income and expenditure of the charity, and of its opening and closing balance sheet positions, is provided within the annexed accounts.

The charity ended the financial year with unrestricted cash reserves of £274,484 (previous year: £447,644) which continues to be used as seed-funding for the charity’s activities going forward.

Reserves Policy

In past accounting periods, and in the normal course of events, the trustees would have expected the trading subsidiary company to generate sufficient profits to enable it to pay annual amounts by way of property rental and gift aid donation to the parent charity. This, in turn, would have enabled the parent charity to generate annual net incoming resources and maintain its own reserves for the ongoing funding of its bank loan repayments, beyond which the charity itself had little need to retain significant cash reserves.

Following on from the matters referred to above, particularly around the cessation of the subsidiary company’s activities and the restructuring and reorganising of the charity’s affairs (including full repayment of its bank loans), the trustees have considered their requirements in terms of minimum levels of cash-backed unrestricted reserves going forward. At present, this is expected to be fairly modest, given the charity’s transition towards becoming a grant-funded provider of services and support, rather than an owner of specialist care homes.

Investment Powers and Policy

Under its Memorandum and Articles of Association, the charity has the power to make any investment which the trustees see fit.

The trustees have operated a policy of retaining surplus funds in an interest-bearing bank deposit account.

Page 3

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

TRUSTEES’/DIRECTORS’ REPORT (Continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Cleveland Alzheimer’s Residential Centre Limited is a company, limited by guarantee and not having a share capital, governed by its Memorandum and Articles of Association dated 10 February 1989. It is also a charity registered with the Charity Commission. Members of the company agree to contribute an amount not exceeding £1 in the event of the charity being wound up.

Appointment of Trustees/Members of the Council of Management

The initial members of the Council of Management were the subscribers to the Memorandum and Articles of Association. New members are appointed from time to time at the discretion of existing members to fill identified skills gaps. The minimum number of members is three.

In relation to the Companies Act 2006, members of the Council of Management are also directors of the limited company.

Trustee Induction and Training

New trustees normally attend an initial meeting with the Chairman. This meeting involves consideration of and discussion around the latest reports and financial statements, Memorandum and Articles of Association, Ethos and Values Statements, Corporate Brochure and Business Plan. Copies of all of these documents are then retained by the new trustee.

Trustees are encouraged to attend appropriate external training events, where these will facilitate the undertaking of their role, and are also provided with in-house mentoring and support when required.

Organisation

The charity is administered by the trustees who, throughout the year under review, delegated responsibility for the day to day operations of the charity to its CEO.

Remuneration of Key Management Personnel

The trustees consider the CEO to be the Key Management Personnel of the organisation. The remuneration package for the CEO has been reviewed on an annual basis having regard to external factors such as the recruitment market and salary rates for positions offered locally by other care providers.

Related Parties

The charity owns 100% of the issued share capital of Poplars Alzheimer’s Lodge Limited. That company was set up to operate two care homes and to provide respite and day care for people living with dementia. The whole of the profits of Poplars Alzheimer’s Lodge Limited have historically been paid across to the charity by way of rent and/or gift aid.

Risk Management

The trustees have developed a corporate risk register which identifies the areas of risk to which they believe the charity is exposed. The major risk categories have been identified as follows:

The trustees have then highlighted the main issues within each of the above categories and have developed risk reduction strategies to enable them to manage those issues.

The corporate risk register is used as a monitoring tool and is reviewed at each governance meeting.

Page 4

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

TRUSTEES’/DIRECTORS’ REPORT (Continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Company Registration No: 02345874 Charity Registration No: 701958 Governing Document: Memorandum and Articles of Association dated 10 February 1989 Registered Office: Redheugh House 1st Floor, Thornaby Place Thornaby Stockton-on-Tees TS17 6SG Independent Examiner: Mr. J. Lester FCA Baines Jewitt Limited Barrington House 41-45 Yarm Lane Stockton-on-Tees TS18 3EA Bankers: Barclays Bank plc P.O. Box 235 Barclays House Teesdale Business Park Stockton-on-Tees TS17 6YJ Trustees/Members of the Mr. H.A. Kitching (Chairman) Council of Management: Dr. J.R. Mann (resigned 18.12.20) Mrs. F.L. Harding Mr. A.G. Southall Mr. H. McGouran (Vice-Chairman) Mrs. D.J. Smith Company Secretary: Mr. G. Skeoch (resigned 10.9.21) Chief Executive Officer: Ms. G.G. Tweed (left 10.9.21)

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approval

This report was approved by the trustees/directors on 27 January 2022 and signed on their behalf by:

MR. H.A. KITCHING Chair of Trustees

Page 5

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

I report to the charity trustees on my examination of the accounts of the company for the year ended 30 September 2021, which are set out on pages 6 to 15.

Responsibilities and basis of report

As the charity trustees of the company (who are also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

J. Lester

Mr. J. Lester FCA Baines Jewitt Limited Barrington House 41-45 Yarm Lane Stockton-on-Tees TS18 3EA

Dated: 27 January 2022

JL/AJD

Page 6

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

(including Summary Income and Expenditure Account)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Unrestricted Funds Unrestricted Funds Restricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
Notes £ £ £ £ £ £
Income from:
Grants, donations and legacies 3 34,383 33,384 59,592 48,037 93,975 81,421
Charitable activities 4 160 1,013 - - 160 1,013
Investments 5 109 431 - - 109 431
______ ______ ______ ______ ______ ______
Total Income 34,652 34,828 59,592 48,037 94,244 82,865
--------- --------- --------- --------- --------- ---------
Expenditure on:
Raising funds 6 - 43 - - - 43
Charitable activities 7 201,242 226,551 58,492 68,890 259,734 295,441
_ _ ______ ______ _ _
Total Expenditure 201,242 226,594 58,492 68,890 259,734 295,484
---------- ---------- --------- --------- ---------- ----------
Net gains/(losses) on investments 13 626 (2,287) - - 626 (2,287)
-------- -------- ------ ------ -------- --------
Net Income/(Expenditure) (165,964) (194,053) 1,100 (20,853) (164,864) (214,906)
Transfers between funds (8,196) 13,075 8,196 (13,075) - -
Other recognised gains/(losses):
Profit on disposal of freehold land
and buildings (net of costs) - 119,919 - - - 119,919
Provision for impairment of
subsidiary company loan 12&18 - (500,000) - - - (500,000)
_ __ ______ ______ _ __
Net movement in funds 8 (174,160) (561,059) 9,296 (33,928) (164,864) (594,987)
Reconciliation of funds:
Total funds brought forward 17 447,644 1,008,703 87,062 120,990 534,706 1,129,693
_ __ ______ _ _ __
Total funds carried forward 16&17 273,484 447,644 96,358 87,062 369,842 534,706
====== ======= ===== ====== ====== =======

The Statement of Financial Activities includes all gains and losses recognised in the period.

The notes on pages 8 to 15 form part of these financial statements

Page 7

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

Company Registration No: 02345874

BALANCE SHEET AS AT 30 SEPTEMBER 2021

Notes 2021 2020
£ £ £ £
FIXED ASSETS
Tangible assets 11 1,982 5,801
CURRENT ASSETS
Debtors 12 137,939 140,199
Cash at bank and in hand 246,363 417,796
Investments 13 2,763 2,137
_____ _____
387,065 560,132
CURRENT LIABILITIES
Creditors: Amounts falling due
within one year 14 (19,205) (31,227)
_____ _____
NET CURRENT ASSETS 367,860 528,905
_____ _____
NET ASSETS 369,842 534,706
========== ==========
Funds 16 & 17
Unrestricted - General 268,484 442,644
- Designated 5,000 5,000
_____ _____
273,484 447,644
Restricted 96,358 87,062
_____ _____
369,842 534,706
========== ==========

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2021.

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 30 September 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for:

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

These financial statements were approved by the trustees on 27 January 2022 and signed on their behalf by:

MR. H.A. KITCHING Chair of Trustees

The notes on pages 8 to 15 form part of these financial statements

Page 8

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

1. STATUTORY INFORMATION

Cleveland Alzheimer’s Residential Centre Limited is a charitable company limited by guarantee, incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the Reference and Administrative Details on page 4 of these financial statements. The nature of the charity’s operations and principal activities are to relieve, treat and promote the relief and treatment of those diagnosed with Alzheimer’s disease and related disorders and to provide support for such persons and their families.

2. ACCOUNTING POLICIES

(a) Basis of Preparation of the Financial Statements

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’, issued in October 2019, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention. They are prepared in pounds sterling, which is the functional currency of the charity, and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. The policies have been consistently applied to all years presented unless otherwise stated.

(b) Income Recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For grants and donations to be recognised, the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the grant or donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees’ Annual Report.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity whilst it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest and is included when the amount can be measured reliably and the charity’s right to receive payment is established.

(c) Resources Expended

Resources expended are recognised in the Statement of Financial Activities on an accruals basis, inclusive of VAT. Individual costs are allocated between the various headings in the Statement of Financial Activities by reference to the underlying nature or reason for which those costs were incurred, on an estimated basis.

(d) Funds

Unrestricted general funds are those available for use at the discretion of the trustees, in furtherance of the general objectives of the charity, and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes.

Restricted funds are those which are to be used in accordance with specific restrictions imposed by the donor or as the result of a specific appeal or application. Such funds are kept separate from the unrestricted funds of the charity and only related expenditure is charged against them.

Page 9

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

2. ACCOUNTING POLICIES ( Continued )

(e) Fixed Assets and Depreciation

Fixed assets are stated at cost less depreciation. Depreciation is calculated so as to write off the cost, less estimated residual value, of an asset over the estimated useful life of that asset as follows:

Fixtures and equipment - 15% reducing balance Motor vehicles - 25% reducing balance

(f) Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations at each balance sheet date.

(g) Debtors and Creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Debtors are recognised at the settlement amount due.

(h) Cash at Bank and in Hand

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(i) Loans and Borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method.

(j) Pension Costs

Contributions, which are payable into the personal pension plans of individual members of staff, are charged to the Statement of Financial Activities for the period to which they relate.

(k) Going Concern

The financial statements have been prepared on a going concern basis. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

3. INCOME FROM GRANTS, DONATIONS AND LEGACIES

Unrestricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Grants 27,096 29,680 52,025 38,704 79,121 68,384
Donations 7,287 3,704 7,567 9,333 14,854 13,037
__ __ __ __ __ __
34,383 33,384 59,592 48,037 93,975 81,421
======= ======= ======= ======= ======= ========

4. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Fundraising events - 1,013 - - - 1,013
Training activities 160 - - - 160 -
______ _ ______ ______ ______ _
160 1,013 - - 160 1,013
===== ====== ===== ===== ===== ======

Page 10

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

5. INCOME FROM INVESTMENTS

Bank interest Dividends

Unrestricted Funds 2021 2020 £ 33 376 76 55 _ ___ 109 431

6. EXPENDITURE ON RAISING FUNDS

EXPENDITURE ON RAISING FUNDS
Unrestricted Funds
2021 2020
£ £
Fundraising expenditure - 43
===== =====

7. EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Funds Unrestricted Funds Restricted Funds Total Funds
Basis of 2021 2020 2021 2020 2021 2020
Allocation £ £ £ £ £ £
Depreciation:
- fixtures and equipment Direct 350 835 - - 350 835
- motor vehicles Direct - 357 - - - 357
Loss on disposal of fixed assets Direct 469 1,938 - - 469 1,938
______ _ ______ ______ ______ _
819 3,130 - - 819 3,130
Rent and service charge Direct 18,002 1,729 - - 18,002 1,729
Rates and water Direct 852 428 - - 852 428
Heating and lighting Direct 1,570 - - - 1,570 -
Insurance Direct 2,113 830 - - 2,113 830
Staff costs Direct 98,470 64,967 42,859 60,151 141,329 125,118
Staff settlement agreement Direct 23,000 - - - 23,000 -
Repairs and renewals Direct - 5,000 - - - 5,000
Bank charges and interest - loan
accounts (incl. £42,915 early
settlement costs) Direct - 46,891 - - - 46,891
Other loan interest Direct - 1,355 - - - 1,355
Other bank charges Direct 866 1,009 - - 866 1,009
Sundry expenses Direct 773 1,436 405 14 1,178 1,450
Protective equipment Direct - - - 555 - 555
Training Direct - - - 120 - 120
Residents gifts and activities Direct - 302 - - - 302
Dementia cafe expenses Direct - - 636 831 636 831
Bereavement service expenses Direct - - 186 - 186 -
Events Direct - - 11,903 5,375 11,903 4,375
Telephone and internet Direct 1,277 1,287 913 350 2,190 1,637
Printing, postage and stationery Direct 2,391 1,173 - 750 2,391 1,923
Subscriptions Direct 2,188 1,396 - - 2,188 1,396
Hire of equipment Direct 9,560 1,802 - - 9,560 1,802
Travelling expenses Direct - - 1,590 1,520 1,590 1,520
Volunteer expenses Direct - - - 224 - 224
Motor expenses Direct 749 528 - - 749 528
Removal and storage costs Direct 2,850 2,319 - - 2,850 2,319
Governance costs See below 35,762 90,969 - - 35,762 90,969
____ ____ __ __ ____ ____
201,242 226,551 58,492 68,890 259,734 295,441
========= ========= ======= ======= ========= =========

Page 11

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

7. EXPENDITURE ON CHARITABLE ACTIVITIES ( continued )

Governance Costs Unrestricted Funds Unrestricted Funds Restricted Funds Total Funds
Basis of 2021 2020 2021 2020 2021 2020
Allocation £ £ £ £ £ £
Accountancy and independent
examination fees Direct 7,000 7,980 - - 7,000 7,980
Legal, clinical and other professional
fees Direct 28,762 82,989 - - 28,762 82,989
___ ___ ______ ______ ___ ___
35,762 90,969 - - 35,762 90,969
======== ======= ===== ===== ======== =======

8. NET MOVEMENT IN FUNDS FOR THE YEAR

The net movement in funds for the year is stated after charging: 2021 2020
£ £
Depreciation of owned tangible fixed assets 350 1,192
Loss on disposal of fixed assets 469 1,938
Provision for impairment of subsidiary company loan - 500,000
Profit on disposal of freehold land and buildings (net of costs) - (119,919)
External examiner’s remuneration:
- independent examination 4,350 4,350
- accountancy, taxation, consultancy and other services 2,650 3,630
Charges and interest on bank loans (incl. early settlement costs of £42,915) - 46,891
Interest on other loan - 1,355
Operating lease payments 1,766 1,766
======== =========

9.

STAFF COSTS AND TRUSTEES’ REMUNERATION 2021 2020
£ £
Salaries and wages 130,478 118,070
Social security costs 9,235 5,574
Pension contributions 1,616 1,474
_____ _____
141,329 125,118
========== =========

One employee earned more than £60,000 per annum (2020: none).

No trustee received remuneration or reimbursement of expenses during the current or previous period.

The total remuneration cost for Key Management Personnel during the year was £70,923 (2020: £44,527).

10. STAFF NUMBERS

The average number of employees during the year was five (2020: five).

Page 12

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

11. TANGIBLE FIXED ASSETS

11. TANGIBLE FIXED ASSETS
Fixtures and Motor
Equipment Vehicles Total
£ £ £
COST
At beginning of year 33,055 24,329 57,384
Additions - - -
____ ____ ____
33,055 24,329 57,384
Disposals (20,728) (24,329) (45,057)
____ ____ ____
At end of year 12,327 - 12,327
========= ========= =========
DEPRECIATION
At beginning of year 28,324 23,259 51,583
On disposals (18,329) (23,259) (41,588)
____ ____ ____
9,995 - 9,995
Charge for year 350 - 350
____ ____ ____
At end of year 10,345 - 10,345
========= ========= =========
NET BOOK VALUE
At beginning of year 4,731 1,070 5,801
======= ======= =======
At end of year 1,982 - 1,982
======= ======= =======
12. DEBTORS
2021 2020
£ £
Loan account balance due from Poplars Alzheimer’s Lodge Limited 636,947 636,947
Less:Impairment provision (see below) (500,000) (500,000)
_____ _____
136,947 136,947
Other debtors and prepayments 992 3,252
_____ _____
137,939 140,199
========== ==========

Impairment provision - the charity made an impairment provision of £500,000 against the loan account balance due from its subsidiary company at the previous balance sheet date. This loan reflects the ongoing financial support to enable that company to continue trading, thereby safeguarding a high standard of continuing care for the remaining residents, through to the date of sale, and maximising the selling price of the freehold property. It is hoped that some, if not all, of the remaining loan account balance will be recovered by means of the return of any residual cash balances to the charity on completion of the liquidation of the subsidiary company.

Page 13

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

13. CURRENT ASSET INVESTMENTS

CURRENT ASSET INVESTMENTS
2021 2020
Listed Equity Shares (708 HSBC) £ £
Market value at beginning of year 2,135 4,422
Gain/(loss) on revaluation - per statement of financial activities 626 (2,287)
__ __
Market value at end of year 2,761 2,135
Unlisted Equity Shares (2 Poplars Alzheimer’s Lodge Limited)
Estimated market value at beginning and end of year 2 2
__ __
2,763 2,137
======= =======
CREDITORS: Amounts falling due
within one year 2021 2020
£ £
Redundancy loan - 17,166
Taxation and social security costs 9,681 2,525
Other creditors and accruals 9,524 11,536
___ ___
19,205 31,227
======== =========

14. CREDITORS: Amounts falling due

15. OPERATING LEASE COMMITMENTS

The following operating lease payments were committed to be paid within one year from the balance sheet date:

30.9.21 30.9.20
On leases expiring: £ £
Within one year 883 -
Within two to five years - 1,766
===== =======
ANALYSIS OF NET ASSETS BETWEEN FUNDS
General Designated Restricted Total
£ £ £ £
Tangible fixed assets 1,982 - - 1,982
Cash at bank and in hand 145,005 5,000 96,358 246,363
Other net current assets 121,497 - - 121,497
_____ __ ___ _____
268,484 5,000 96,358 369,842
========== ======= ======== ==========

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

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CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

17. STATEMENT OF FUNDS

STATEMENT OF FUNDS
At Investment
beginning Gains/ At end
of year Income Expenditure (Losses) Transfers of year
Unrestricted Funds: £ £ £ £ £ £
General 442,644 34,652 201,242 626 (8,196) 268,484
Designated 5,000 - - - - 5,000
____ __ ____ _ __ ____
Total unrestricted funds 447,644 34,652 201,242 626 (8,196) 273,484
========= ======= ========= ====== ======= =========
Restricted Funds:
Fusion cafe 4,094 400 636 - - 3,858
Dementia Voices Stockton 36,316 1,000 26,679 - 14,987 25,624
Dementia Friendly
Middlesbrough and
Redcar & Cleveland 44,801 44,271 25,515 - (6,119) 57,438
Dementia Friendly Stockton 1,851 - 14 - - 1,837
Social engagement through
music and dance - 8,921 5,462 - - 3,459
Dementia Bereavement Service - 2,500 186 - - 2,314
Reducing isolation and
loneliness - 2,500 - - (672) 1,828
__ __ __ ______ __ __
Total restricted funds 87,062 59,592 58,492 - 8,196 96,358
======= ======= ======= ===== ======= =======
Total Funds 534,706 94,244 259,734 626 - 369,842
========= ======= ========= ====== ===== =========

Unrestricted Designated Fund

The above designated fund reflects a transfer from general funds of a £5,000 legacy from the estate of the former Chairman, Mr. J.R. Southall deceased.

Restricted Funds

Fusion cafe - this is a popular dementia cafe which has been running since February 2006. It is led by Clevearc, staffed by volunteers, and is a free service, funded by individual donations and fundraising. The cafe provides a supportive environment for people with dementia and their carers to attend a social occasion together, where the effects of their dementia are understood and accepted. The cafe is open on the last Friday of every month, staffed by 8 to 10 volunteers and attended by 35 to 45 customers.

Dementia Voices Stockton - this advocacy project was initially funded by Comic Relief, Ballinger Charitable Trust and Northern Rock Foundation for two years. Due to the success of the project the Ballinger Charitable Trust funded a further three year project incorporating additional services, including a Dementia Care Co-ordinator service. The project is the only service of this kind in the North of England and empowers people in Stockton-on-Tees to self-manage their health and care from diagnosis to living well with dementia.

Dementia Friendly Middlesbrough and Redcar & Cleveland - this project, which has operated since September 2015, received joint funding in April 2018 for one year from Middlesbrough and Redcar & Cleveland Borough Councils to employ a Dementia Friendly Communities Business Engagement Lead. The project aims to build on the success of the Dementia Friendly Middlesbrough project and also establish a new Dementia Friendly Community in the borough of Redcar & Cleveland. A dementia friendly community enables people living with dementia to remain active, meet with understanding and have the ability to live independently with support. Dementia friendly communities also support local businesses and organisations to make simple changes that will ensure their services are more accessible for their customers who are living with dementia or are carers.

Dementia Friendly Stockton - this project is financed by fundraising from small events and raises dementia awareness within the town, particularly during National Dementia Awareness Week in May each year.

Social engagement through music and dance - social engagement through music and physical activity, dancing, has been found to improve confidence, self-esteem and wellbeing for those living with dementia and their families and carers. Funding has been provided by Sport England’s Your Active Living Fund and from Middlesbrough Matters to provide dance sessions in both Middlesbrough and Redcar & Cleveland.

Page 15

CLEVELAND ALZHEIMER’S RESIDENTIAL CENTRE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

17. STATEMENT OF FUNDS (Continued)

Dementia Bereavement Service - Thirteen Community Fund and a local family business have provided funding for a bereavement service specifically for carers of people with dementia. Throughout the pandemic, carers have struggled with no support network whilst the person they cared for could not understand what was happening in their lives. Throughout the pandemic, there have been a disproportionate number of deaths amongst those who have dementia which has left carers bereaved. The aim is to improve the health and wellbeing of bereaved carers through creative participation and direct therapy to allow carers to express their emotions, find ways to cope with their grief and come to terms with their loss. A counsellor who already provided bereavement support for a local hospice will lead the sessions.

Reducing isolation and loneliness - Tees Valley Community Fund through their Better Together Fund have provided funding to help those living with dementia and their carers reconnect with the local community following the easing of lockdown restrictions by providing support, training and advice to carers.

18. SUBSIDIARY UNDERTAKING AND RELATED PARTY TRANSACTIONS

Cleveland Alzheimer’s Residential Centre Limited is the parent company of Poplars Alzheimer’s Lodge Limited.

(a) Balances due from the subsidiary company at the balance sheet dates 2021 2020
were as follows: £ £
Loan account balance 636,947 636,947
Less:Impairment provision (see note 12) (500,000) (500,000)
_____ _____
136,947 136,947
========== ==========
(b) Expenditure reimbursed to the subsidiary company during the year:
Salaries, national insurance and employer’s pension - 20,304
Telephone - 350
Printing, postage and stationery - 700
Volunteer expenses - 200
========= ========

Mr. H.A. Kitching is a trustee of Cleveland Alzheimer’s Residential Centre Limited and had the following transactions with the charitable company during the year under review:

with the charitable company during the year under review:
2021 2020
£ £
Balance due to Mr. H.A. Kitching at beginning of year - 71,593
Interest charged - 1,355
Loan repaid - (72,948)
___ ___
Balance due to Mr. H.A. Kitching at end of year - -
======== ========

The above loan was advanced on 1 April 2019, for a maximum period of two years, with interest at 4.5% per annum. The full balance, including accrued interest, was repaid on 26 February 2020.

Other than as referred to above, there were no transactions with related parties during the period under review or the previous period.

19. TAXATION

HM Revenue & Customs have approved the charitable status of Cleveland Alzheimer’s Residential Centre Limited and its income is therefore exempt from tax, under Sections 505 and 506 of the Taxes Act 1988, provided that it is applied for charitable purposes only.