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2023-03-31-accounts

Charity registration number NIC103068

Company registration number NI023076 (Northern Ireland)

FAMILY CARE ADOPTION SERVICES

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees' report 1 - 4
Independent auditor's report 5 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 28

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs M Frawley Ms J Coulter Mr S Small Mrs J Crowe Mrs P McGrogan Charity registration number NIC103068 Company number NI023076 Registered office 97 Malone Avenue Belfast BT9 6EQ Auditor GMcG Group Limited 17 Mandeville Street Portadown Craigavon Co Armagh BT62 3PB Bankers AIB 35 University Road Belfast BT7 1ND Ulster Bank Limited Danesfort Stranmillis Road Belfast BT9 5UB Solicitors Rosemary Connolly 2 The Square Warrenpoint Co Down BT34 3JT

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

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 charitable company's Memorandum and Articles of Association, 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 main objectives of Family Care Adoption Services (FCAS) are:

The principal activities of FCAS are:-

The trustees have paid due regard to guidance issued by the Charity Commission for Northern Ireland in deciding what activities the charitable company should undertake.

Achievements and performance

The achievements of the charitable company during the year included:-

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

FCAS provides services to the five Health and Social Care Trusts in relation to providing family placements for children from care in need of adoption. This is a core service for the charity and is key in providing and maintaining financial stability as each placement generates an inter-agency fee. In a time of financial constraint however, the Trusts are increasingly likely to seek placements within their own resources as a first preference, which may present some uncertainty in future periods.

The charity continues to engage with the five Northern Catholic Diocese on an annual basis in relation to their contributions towards service provision to adopted and fostered adults, and to adults historically raised in children's homes which were regarded as operating under the auspices of the Catholic Church. This is an oversubscribed and increasing area of work for which the charity is active in seeking additional funding support, which to date have been unsuccessful. Ongoing service provision is therefore at risk due to the limited and uncertain nature of funding in this area.

The Next Step Project is a service that provides support to birth parents, and other relatives, whose children are going to be placed or have already been placed for adoption. This service continued in the year but is due to be retendered with future funding therefore uncertain.

The charity receives core funding from the Department of Health towards salaried posts within the charity. This core funding is vital for the charity.

The charity's Life Story Project has been funded by the Lottery Community Fund for a five year period beginning in April 2019. This Project works with Young People aged 11-22 who are in Care, have left Care or who have been Adopted, and who have questions about their lives and experiences, in the past and in the present.

Financial review

The charitable company's financial results are set out in detail on pages 11 to 28.

There is an overall surplus on funds this year of £126,270 (2022 - £19,547). The charitable company has maintained an overall strong financial position.

The accumulated funds (unrestricted and restricted) now stand at £507,378 (2022 - £381,108). This comprises restricted funds of £155,928 (2022 - £117,838) and unrestricted funds of £341,450 (2022 - £263,270).

The trustees acknowledges the ongoing support from the Department of Health, the Health and Social Care Board as well as other funders and supporters.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management

The charitable company is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 20 September 1989.

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:

Mrs M Frawley

Ms J Coulter

Mr S Small Mrs J Crowe

Mrs P McGrogan

As set out in the Articles of Association, the existing Directors may appoint any person willing to act as a Director. There is no maximum number of Directors, but there is a minimum of two.

The members of the Board of Directors are drawn from a variety of disciplines as it is considered that a varied membership provides the necessary skills, knowledge and experience to exercise good governance of the charitable company.

Directors induction and training

The charitable company has an induction programme for new Directors. This comprises of an information pack containing details of operation aspects of the charitable company, annual reports and audited accounts, an orientation session with Board of Director members and senior staff and observation of Board of Director meeting.

Organisation

The trustees administer the charitable company and appoint a Chief Officer to manage the day to day running of the charity. The Board meets approximately 5 to 6 times per year.

Risk management

The charitable company has produced a risk management schedule as part of a formal process to identify risks to which the charitable company is exposed. This is monitored and steps taken as appropriate in order to mitigate those risks. The main risk the charitable company faces is in relation to the availability of future funding, the directors continuously seek sources of funding for the charitable company.

Reserves policy

Reserves are necessary to bridge the funding gap between remunerating staff and the receipt of the funds generated by the professional services provided by those staff members. Whilst core and Diocesan support some of these costs, the charitable company has to rely on the use of its services by the Health and Social Care trusts and others, if it is to remain viable.

In view of the uncertainty over the extent and timing of the flow of such work, the trustees consider that an ideal level of unrestricted reserves to be between 3 to 4 months of running costs. The current level of reserves is £507,378 of which £351,450 is unrestricted.

Plans for the future

The charitable company will continue to develop specialist adoption and childcare services in partnership with statutory and voluntary bodes. Some of which include:

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Statement of trustees. responsibilities The tTUStees, who are also the directors of Family Care Adoption SeNices for the purpose of company law, are responsible for preparing the Tnjstees. Report and the finanaal statements in accordance wilh applicable law and Uniled Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)- Company Law requires the trustees to prepare financial statement5 for each finanual year which give a true and fair view of the state of affairs of the charitable company and of Ihe incoming resources and application of reSoUr￿s, including the income and expenditure. of the charitable company for thal year. In preparing these financial ststements, the trustees are required to.. select suitable accounting poli(ies and then apply them consistently., observe the methods and ptinciples in the Charitses SORP,. make judgements and estimates that are reasonable and prudent- and prepare the financial statefflents on the going concem basis unless il is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting records that disdose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the finanual statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the chantable company and hen￿ for taking reasonable steps for the Prevention and detection of fraud and other irregular6ties. Small companies exemption In preparing this report, the directors have taken advantsge of the small companies exemptions pr(wided by section 415A of the CompaniesAct 2006. Disclosure of information to auditor Each of the Iruslees has confim)ed that there is no infomiation of which they are aware which is relevant to the audtl, but of which the audilor is unaware. They have fijrther confirmed that they have laken appropriate steps to identify such relevant informalion and to eslabli5h thal the auditor is awafe of such infomation. The trustees, report was approved by the Board of Trustees. MSJ Trustee uller Mrs P McGrogan Trustee Date..

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FAMILY CARE ADOPTION SERVICES

Opinion

We have audited the financial statements of Family Care Adoption Services (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally 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 financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FAMILY CARE ADOPTION SERVICES

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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FAMILY CARE ADOPTION SERVICES

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company 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 trustees 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FAMILY CARE ADOPTION SERVICES

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FAMILY CARE ADOPTION SERVICES

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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.

CHIXTEABD ACCOUNTANT8 FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FAMILY CARE ADOPTION SERVICES 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 charttatAe company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report. or for the opinions we have formed. Ms Gllllan Johnston ACA (Senior Statutory Auditor) for and on behalf of GMCG Group Limited 21 December 2023 Chartered Accountants Statutory Auditor 17 Mandeville Street Portadown Craigavon Co Amiagh BT62 3PB 10- CeDturyHo 17 Mandeville Street DX3910 NRBdf&st 50 r282GN r62 3PB Tel: +44 (0)28 9031 1113 Trax: +44 {0)28 903A 07T7 Tel: +44 (0)28 92fJO TJ55 F￿. +44 (0)28 9260 1650 Tel: +44 (0)28 3833 2801 F#x: +44 10)28 3835 0293

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and
legacies
3
48,038
173,365
Charitable activities
4
169,838
156,275
Investments
5
195
-
Total income
218,071
329,640
Expenditure on:
Charitable activities
6
107,718
313,705
Other
11
18
-
Total expenditure
107,736
313,705
Net incoming resources
before transfers
110,335
15,935
Gross transfers
between funds
(22,155)
22,155
Net income for the year/
Net movement in funds
88,180
38,090
Fund balances at 1 April
2022
263,270
117,838
Fund balances at 31
March 2023
351,450
155,928		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
221,403
239,306
-
326,113
85,079
153,838
195
15
-
547,711
324,400
153,838
421,423
308,926
149,765
18
-
-
421,441
308,926
149,765
126,270
15,474
4,073
-
-
-
126,270
15,474
4,073
381,108
247,796
113,765
507,378
263,270
117,838		 Total
2022
£
239,306
238,917
15
478,238
458,691
-
458,691
19,547
-
19,547
361,561
381,108

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.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AS AT 31 MARCH 2023 2023 2022 Notes Fixed assets Tangible assets 15 7,913 9,891 Current assets Debtors Cash at bank and in hand 16 114,369 441,487 34,156 418,184 555,856 452,340 Creditors: amounts falling due within one year 17 (52,593) (73,388) Net current assets 503,263 378,952 Totsl assets less current liabilities 511.176 388,843 Creditors: amounts falling due after more than one year 18 (3.798) (7,735) Net assets 507.378 381,108 Income funds Restricted funds Unrestricted funds 20 155,928 351.450 117,838 263,270 507.378 381,108 These financial statements have been prepared in accordan￿ wth the provisions applicable to companies subjed to the small companies regime. The financial statements were approved by the trustees on ... MsLi oulter Trustee Mrs P McGrogan Trustee Company registration number N1023076 12-

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
24
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from/(used in)
investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
-
195		 £
23,108
195
-
23,303
418,184
441,487		 2022
£
(2,801)
15		 £
(1,427)
(2,786)
-
(4,213)
422,397
418,184

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Family Care Adoption Services is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 97 Malone Avenue, Belfast, BT9 6EQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, 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 charitable company is a Public Benefit Entity as defined by FRS 102.

The charitable company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

As with most organisations operating in the third sector in Northern Ireland, FCAS faces some uncertainty in relation to future funding levels, particularly in respect of the charity's funding from the public sector. FCAS has built up a level of reserves in prior years that will enable the charity to continue with it's current service provision in the immediate future. Therefore, at the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

1.5 Expenditure

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

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings and equipment 20% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

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

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charitable company 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 charitable company's balance sheet when the charitable company 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.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

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 charitable company’s contractual obligations expire or are discharged or cancelled.

1.10 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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

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

The charity employs one employee for whom contributions are made to a multi-employer defined benefit scheme. The operators of the scheme have identified a potential deficit and have notified an annual additional contribution to be made under the terms of a 10 year recovery plan.

2 Critical accounting estimates and judgements

In the application of the charitable company’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.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements (Continued)

Key sources of estimation uncertainty

Fixed assets

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Debtors

Short term debtors are measured at transaction price, less any impairment. Impairment of short term debtors involves some estimation uncertainty.

Pensions

The charitable company is a member of a multi-employer defined benefit pension scheme. Pension obligations have been provided in accordance with agreed upon contributions to the scheme and disclosures have been made in accordance with the requirements of FRS 102. Estimates and assumptions have been used in calculating the present value of future contributions recognised in the financial statements and in the scheme information disclosed at notes 12 to 14. The charitable company used external pension advisors to support the estimates and assumptions made.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Grants and donations
48,038
173,365
Government and National Lottery grants
-
-
48,038
173,365
Donations and gifts
Department of Health Core Funding
-
133,865
Diocesan Contributions
45,168
-
Rank Foundation
-
34,000
Halifax Foundation
-
5,500
Other
2,870
-
48,038
173,365		 Total Unrestricted
funds
2023
2022
£
£
221,403
187,205
-
52,101
221,403
239,306
133,865
129,822
45,168
47,950
34,000
-
5,500
-
2,870
9,433
221,403
187,205		 Total Unrestricted
funds
2023
2022
£
£
221,403
187,205
-
52,101
221,403
239,306
133,865
129,822
45,168
47,950
34,000
-
5,500
-
2,870
9,433
221,403
187,205
239,306
129,822
47,950
-
-
9,433
187,205

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

4 Charitable activities

Assessments, Child Placements and Post Adoption Support
Other Adoption Support Services
Life Story Project
Next Steps Project
Analysis by fund
Unrestricted funds
Restricted funds		 2023
£
158,755
11,083
102,252
54,023
326,113
169,838
156,275
326,113		 2022
£
61,924
23,155
99,215
54,623
238,917
85,079
153,838
238,917

5 Investments

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Interest receivable 195 15

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

6 Charitable activities

Staff costs
Depreciation
Redundancy payment
Recruitment, training and seminars
Rent, rates and services
Cleaning and hygiene
Insurance
Computer costs
Light and heat
General expenses
Repairs and maintenance
Stationery, printing and advertising
Telephone and postage
Travelling expenses
Adoption panel expenses
Audit and accountancy
Bank charges and interest
Subscriptions and professional fees
Share of support costs (see note 7)
Share of governance costs (see note 7)
Analysis by fund
Unrestricted funds
Restricted funds		 2023
£
249,500
1,840
-
2,220
10,269
-
4,203
4,354
3,120
4,094
928
4,967
6,147
10,356
-
-
-
8,472
310,470
102,410
8,543
421,423
107,718
313,705
421,423		 2022
£
330,939
2,300
11,303
865
14,024
1,585
6,154
4,600
2,849
2,247
735
3,250
9,038
10,959
626
3,880
728
9,078
415,160
38,531
5,000
458,691
308,926
149,765
458,691

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

7
Support costs
Staff costs
Depreciation
Insurance
Stationery
Telephone
Cleaning and hygiene
Rent
Light and heat
Travel
Computer costs
Bank charges
Audit and accountancy
Board meetings and
AGM
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
95,510
-
138
-
741
-
374
-
500
-
1,664
-
1,080
-
345
-
135
-
1,285
-
638
-
-
7,880
-
663
102,410
8,543
102,410
8,543		 2023
£
95,510
138
741
374
500
1,664
1,080
345
135
1,285
638
7,880
663
110,953
110,953		 Support
costs
Governance
costs
£
£
32,882
-
173
-
-
-
245
-
680
-
1,086
-
1,480
-
317
-
135
-
1,533
-
-
-
-
5,000
-
-
38,531
5,000
38,531
5,000		 2022
£
32,882
173
-
245
680
1,086
1,480
317
135
1,533
-
5,000
-
43,531
43,531

8 Auditor's remuneration

Fees payable to the charitable company's auditor and associates: 2023 2022
£ £
Audit of the charitable company's annual accounts 4,500 5,000

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.

10 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
11 13

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

10
Employees (Continued)
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
£
291,518
31,246
22,246
345,010		 2022
£
307,614
28,900
27,307
363,821

There were no employees whose annual remuneration was more than £60,000.

11 Other

Unrestricted
funds
2023
£
Financing costs
18
18		 Total
2022
£
-
-

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

12 Pensions - TPT Retirement Solutions - The Growth Plan

The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January
£3,312,000		 per annum
2025: (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 30 September
£11,243,000		 per annum
2025: (payable monthly and increasing by 3%
each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

13 Pensions - TPT Retirement Solutions - The Growth Plan (continued)

31 March 2023 31 March 2022 31 March 2021
(£s) (£s) (£s)
Present value ofprovision 6,473 10,154 40,187

RECONCILIATION OF OPENING AND CLOSING PROVISIONS

Period Ending Period Ending
31 March 2023 31 March 2022
(£s) (£s)
Provision at start ofperiod 10,154 40,187
Unwinding of the discount factor (interest
191		 232
expense)
Deficit contributionpaid (3,699) (10,170)
Remeasurements - impact of any change
(173)		 (233)
in assumptions
Remeasurements - amendments to the
-		 (19,862)
contribution schedule
Provision at end ofperiod 6,473 10,154

INCOME AND EXPENDITURE IMPACT

Period Ending Period Ending
31 March 2023 31 March 2022
(£s) (£s)
Interest expense 191 232
Remeasurements – impact of any change
(173)		 (233)
in assumptions
Remeasurements – amendments to the
-		 (19,862)
contribution schedule
Contributions paid in respect of future
*		 *
service*
Costs
recognised		 in income
and
*		 *
expenditure account

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.

ASSUMPTIONS

31 March
31		 March
31		 March
2023 2022 2021
%per annum %per annum %per annum
Rate of discount 5.52 2.35 0.66

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

14 Pensions - TPT Retirement Solutions - The Growth Plan (continued)

The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:

DEFICIT CONTRIBUTIONS SCHEDULE

Year ending 31 March 2023 31 March 2022 31 March 2021
(£s) (£s) (£s)
Year 1 3,699 3,699 10,170
Year 2 3,083 3,699 10,475
Year 3 - 3,083 10,789
Year 4 - - 9,261
Year 5 - -
-
Year 6 - -
-
Year 7 - -
-
Year 8 - -
-
Year 9 - -
-
Year 10 - -
-

The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the company's balance sheet liability.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

15 Tangible fixed assets
Fixtures, fittings and equipment
£
Cost
At 1 April 2022 139,772
At 31 March 2023 139,772
Depreciation and impairment
At 1 April 2022 129,881
Depreciation charged in the year 1,978
At 31 March 2023 131,859
Carrying amount
At 31 March 2023 7,913
At 31 March 2022 9,891
16 Debtors
2023 2022
Amounts falling due within one year: £ £
Trade debtors 107,870 29,384
Prepayments and accrued income 6,499 4,772
114,369 34,156
17 Creditors: amounts falling due within one year
2023 2022
£ £
Provision for pension scheme deficit 3,699 3,699
Trade creditors 3,030 185
Other creditors 24,292 35,125
Accruals and deferred income 21,572 34,379
52,593 73,388
18 Creditors: amounts falling due after more than one year
2023 2022
Notes £ £
Provision for pension scheme deficit 2,774 6,455
Government grants 19 1,024 1,280
3,798 7,735

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

19 Government grants

Deferred income is included in the financial statements as follows:

2023 2022
£ £
Deferred income is included within:
Non-current liabilities 1,024 1,280

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Balance at
1 April 2021
Incoming
resources
Resources
expended
Balance at
1 April 2022
r
£
£
£
£
Diocesan Capital Fund
24,774
-
-
24,774
Life Story Project
88,991
54,623
(51,641)
1,091
Next Steps Project
-
99,215
(98,124)
91,973
DoH Core Funding
-
-
-
-
Donations
-
-
-
-
113,765
153,838
(149,765)
117,838		 Movement in funds
Incoming
esources
Resources
expended
£
£
-
-
102,252
(98,706)
54,023
(54,023)
133,865
(150,035)
39,500
(10,941)
329,640
(313,705)		 Transfers
Balance at
31 March 2023
£
£
-
24,774
5,985
10,622
-
91,973
16,170
-
-
28,559
22,155
155,928		 Transfers
Balance at
31 March 2023
£
£
-
24,774
5,985
10,622
-
91,973
16,170
-
-
28,559
22,155
155,928
155,928

Diocesan Capital Fund - the various diocese have waived a loan which was made to FCAS some years ago on condition that the amount be retained by the charity to be used for its charitable purposes.

Life Story Project - this project assists young people, aged 11 to 22, who are in care, leaving care or have been in care. The project is funded by the Lottery Community Fund.

Next Steps Project - this project provides support to birth families and their relatives whose child has been or is being placed for adoption. The project is funded by the Health & Social Care Board.

DoH Core Funding - the Department of Health has provided funding for the salaries of three employees.

Donations - The Rank Foundation provided a grant in the current year for salary costs of one employee. the Halifax Foundation provided funding towards rent expenses.

FAMILY CARE ADOPTION SERVICES (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

21
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
March 2023 are
represented by:
Tangible assets
7,913
-
Current assets/(liabilities)
346,311
156,952
Long term liabilities
(2,774)
(1,024)
351,450
155,928		 Total Unrestricted
funds
Restricted
funds
2023
2022
2022
£
£
£
7,913
9,891
-
503,263
259,834
119,118
(3,798)
(6,455)
(1,280)
507,378
263,270
117,838		 Total
2022
£
9,891
378,952
(7,735)
381,108

22 Financial commitments, guarantees and contingent liabilities

A portion of grants received may become repayable if the charity fails to comply with the terms of the relevant letters of offer.

The charity may, in the future, be required to make additional pension contributions in respect of the multiemployer scheme deficit as disclosed in notes 12 to 14.

23 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

24
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
(Decrease) in creditors
(Decrease) in deferred income
Cash generated from/(absorbed by) operations
25
Analysis of changes in net funds		 2023
£
126,270
(195)
1,978
(80,213)
(24,476)
(256)
23,108		 2022
£
19,547
(15)
2,473
4,440
(27,552)
(320)
(1,427)

The charitable company had no debt during the year.