MAINSTAY DRM LTD STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Unrestricted Restricted funds funds 2023 2023 Totsl Unrestricted Restricted funds funds 2022 2022 Total 2Q23 2022 Notes Income from: Donations and legacies Charitable activities Other trading activities Inveslmenls 9.736 242,578 9,736 242,578 311 152 272,077 10,000 321,152 272.077 1.574 1.534 1,574 1,534 4,725 247 4,725 247 Total income 255,422 255,422 588,201 10,000 598.201 enditure on: Raising funds 2090 2.090 216 216 Charitable activitie5 197,463 197,463 164,814 8,879 173,693 Total expenditure 199,553 199.553 165,030 8,879 173.909 Net incoming resources before transfers 55.869 55,869 423,171 1,121 424.292 Gross transfers belween funds 200,044 1200.044) Net incomel(expenditurel for the yearl Net movement in funds 255,913 {200,044) 55.869 423.171 1,121 424.292 Fund balances at 1 April 2022 3,059.865 210,044 3,269.909 2.636.694 208,923 2.845,617 Fund balances at 31 March 2023 3,315,778 10,000 3.325.778 3.059,865 210.044 3.269.909 The slaternent of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The slalement of financial activities also complies with the requiremei)Is for an income and expenditure account under the Companies Ath 2006. 10
MAINSTAY DRM LTD BALANCE SHEET AS AT 31 MARCH 2023 2023 2022 Notes Fixed assets Tangible assets f3 3.695.602 3 763.753 Current assets Debtors Cash al bank and In hand 14 9.602 368,421 320 609 378,023 320.609 Creditors.. amounts falling due within one year 1S 180.6321 177.773) Net current assets 297.391 242.836 Trjtal assèts1o$s Current Ilabilities 3.992,993 4,006.589 Creditors: amounts falling due after moro than one year 16 {667 215) 1736.6801 Net assèts 3.325.778 3.269.909 Income funds Reslricled funds nreslricled funds Oesignaled funds G&noral unrestricted funds 18 10,000 210,044 19 18,965 3 296.813 18965 3 1)40 900 3315 778 3.059.86S 3.325.778 3 269.9a9 The financi I slalemenls %vere approved by the Tfustees on 22 November 2023 MrJE Trus orman on7pany re9lstration number N10637S6
MAINSTAY DRM LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Notes Cash flows from operating activities Cash generated from operations 24 137,468 192,961 Investing activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed asset5 Investment income received (24,353) {40,206) 705 247 1,534 Net cash used in investing activities 122.8191 (39,2541 Financing activlties Repayment of bank loans 166,837} 1362.942) Net cash used in financing activities {66,837) (362,942) Net increasel{de¢reasel in cash and cash equivalents 47,812 (209.235) Cash and cash equivalents at beginning of year 320.609 529,844 Cash and cash equivalents at end of year 368.421 320,609 12-
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies Charity information Mainstay DRM Ltd is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 2 Cumulus Heights, Ballyvange, Downpatrick. Co Down, BT30 6. 1.1 Accounting convention The financial statements have been prepared in accordance with the charity's Memorandum of Association the Companies Acl 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. l FRS 102") and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accoLinls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)" (effective 1 January 2019}. The charily is a Public Benefit Entity as defined by FRS 102. The financial s121ements 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. The principal accounting poliues adopted are sel out below. 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 slatemenls. 1.3 Charitable funds Unreslricled funds are available for use at the discretion of the trustees in furtherance of their chaTltable objectives. Designated funds comprise funds which have been Set aside at the discretion of the triistees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. Restricted funds are subject to specific conditions by donors as to how they may be usèd. The purposes and uses of the restricted funds are set out in the notes lo the financial 51atemenls. 1.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounls can be measured reliably, and it is probable that income will be received. Cash donalions are recognised on receipt. Other donations are recognised once the charily 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 lime of the donation. Rental income is recognised in the period to which it relates. 13
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies {Continuedl 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 Iraiisfer of economic benefits will be required in selllemenl, and the aniount of the obligation can be measured reliably. Expenditure is classified by aclivity. The cosls of each activity are made up of the total of direct costs and shared costs, including support costs involved in uiidertaking each activity. Direct costs attributable lo a single activity are allocated directly to that activity. Shared costs which contribute lo 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 Ljse of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges are allocated on the portion of the assel's use. Support costs are those cos15 incurred directly in support of expenditure on the object5 of the charity. Governance costs are those incurred in connection with administration of the charily and compliance with constitutional and slalutory requiremenls. 1.6 Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequently measured al cost or valuation. net of depreciation and any impairment losses. Depreciation is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases". Freehold land and buildings Fixtures and fittings Motor vehicles Equipment 2 /v per annum straight line 20 % per annum straight line 20 /0 per annum slraight line 20 /0 per annum slraight line Freehold land is not depreciated. The gain or loss arising on the disposal of an asset is deterrnined as the difference behveen the sale Pfoceeds and the carrying value of the asset. and is recognised in the statement of financial activitie5. 1.7 Impairrnent of fixed assets Al each reporting end date. the charity reviews the carrying amounts of ils tangible assels to deterniine whether there is any indication that those assets have suffered ali impairment loss. If any such indication exists, the recoverable amount of the asset Is eslimated in order to determine the extent of the ImpaiFmenl loss lif any). 1.8 Cash and cash equivalents Cash and Gash equivalents include cash in hand. deposits held al call with banks. other short-temi 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 charity has elected lo apply the provisions of Section 11 'Basic Financial Instruments and Section 12 'Other Financial Instrumen15 Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charily's balance sheet when ihe charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial slatemenls, when there is a legally enforceable right lo sel off the recognised amounts and there is an inteiilion lo settle on a net basis or to realise the asset and settle the liability simultaneously. 14-
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies {Continuedl Basic financial assets Basic financial assets, which include debtors arid cash and bank balances. are initially measured at transaclion price Including transaction costs and are subsequently carried al amortised cost using the effective interest method unless the arrangemeiit constitutes a financing transaction, where the transaction is measured al the present value of the future receipts discounted at a market fate 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 inilially recognised at transaction price unless the arrangement constitutes a financing Iransaclion. where the debt instrument is measured at the present value of the future payments discounted at a market rale of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subseqiiently carried at amortised cost, using the effective interest rate method. Trade creditor5 are obligations lo pay for goods or services that have been acquired In the ordinary COLirse of operations from suppliers. AmoLinls 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 transaclion price and subsequently measured al arnortised Cost using the effective inteiest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charily's contractual obligations expire or are discharged or cancelled. 1.10 Employee benefits The cost of any unused holiday enlitlemenl is recognised in the period in which the employee's services are received. Terrninalion benefits are recognised immediately as an expense when the charity is demonstrably committed lo lerrninate Ihe employment of an employee or to provide lerminalion benefits. 15-
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Critical accounting estimates and judgements Iii the application of the charity's accounting policies, the trustees are required to make judgements. eslimales and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assuniplions are based on historical experience and other factors that are considered lo be relevant. Aclual results may differ from these estiniales. The estiniales and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the eslimate 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. Fixed Assets The aniiual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and eslimales of residual values. The trustees regularly review these asset lives and chaiige them as necessary to reflect current Ihinkii)g on remaining lives in light of prospective economic ulilisalion and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisalion charges for the period. Detail of the Liseful lives is iiicluded in the accounting policies. Restricted and Unrestricted Funds Judgements are rnade in relation lo allocation of income and expenditure to reslricled and unrestricted funds. The trustees consider il appropriate lo allocate these funds based on interpretation of donations and grants received. Donations and legacies Unrestricted funds Unrestricted Restricted funds funds Totsl 2023 2022 2022 2022 Donations and gifts 9,736 311,152 10,000 321.152 Donations and gifts Mainstay DRP Sensory garden Other donations 297,863 297,863 10,000 13,289 10,000 9,736 13,289 9,736 311,152 10.000 321,152 16
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Charitable activities 2023 2022 Charitable rental incorne Other income 227,015 15,563 240,493 31,584 242.578 272,077 Other trading activities Unrestricted Unrfrstricted funds fund$ 2023 2022 Fundraising events 1,574 4,725 Investments Unrestricted Unrestricted funds funds 2023 2022 Interest receivable 1.534 247 Raising funds Unrestricted Unrestricted funds funds 2023 2022 Fundraisin and ublicit Other fundraising costs 2.090 216 2.090 216 17-
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Charitsble activities Totsl 2023 Total 2022 BEAMA Activities 2,433 Share of support costs (see note 9} Share of governance costs (see note 91 186,108 8,922 169,886 3,807 197,463 173,693 Analysis by fund Unrestricted funds Restricted funds 197,463 164.814 8,879 Support Costs Support Governance costs costs 2023 Support Governance costs costs 2022 Depreciation Rates Bank Fees Repairs and Mainiellance Provision for doubtful debts Interest payable and similar charges Insurance Audit fees Legal and professional 92,504 5.830 189 92.504 5.830 189 91.219 5,186 92 91,219 5,186 92 56,515 56,515 27,431 27,431 8,605 8,605 30.657 413 30.657 413 3.630 5,292 37,353 37,353 3.630 5,292 3.592 215 3,592 215 186,108 8,922 195.030 169.886 3.807 173,693 Analysed between Charitable activities 186.108 8.922 195.030 169,886 3,807 173,693 Governance costs includes payments to the auditors of £3.63012022- £3,592) for audit fees. 10 Trustees None of the tru51ees lor any persons connected with them) received any remuneration or benefits from the Gharity during the year. 18
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 11 Employees The average monthly number of employees during the year was.. 2023 Number 2022 Number Total There were no employees whose annual remuneration was more than £60.000. 12 Taxation The charity is exempl from lax 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. 13 Tangible fixed assets Freehold land Fixturès and Motor v8hlcl8s and bulldings fittings Equipmont Total Cost At 1 April 2022 Additions Disposals 4,414,951 92.452 9.714 {38.0221 33,700 14,639 5,245 4.546,348 24.353 141.366) (3,344} At 31 March 2023 4,414.951 64.144 48.339 1,901 4,529,335 Depreciation and impairment At 1 April 2022 Depreciation charged in the year Eliminated in respect of disposals 671,891 84.804 80,088 3,508 (38,0221 26,484 3,784 4,132 408 {3,344} 782.595 92.504 141.366) At 31 March 2023 756.695 45,574 30,268 1,196 833,733 Carrying amount Al 31 March 2023 3.658.256 18,570 18,071 705 3,695.602 At 31 March 2022 3,743.060 12,364 7,216 1,113 3,763.753 Freehold land and buildings with a carrying amount of £3.499.12212022 - £3,583.9261 have been pledged lo secure borrowings of the charity. Land with a carrying amount of £159,13412022 - £159,134) is not being depreciatéd. 19-
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 14 Debtors 2023 2022 Amounts falling due within one year: Other debtors Prepayments and accrued income 1.382 8.220 9,602 15 Creditors: amounts falling due within one year 2023 2022 Notes Bank loans Accruals and deferred income 17 69,466 11,166 66.838 10.935 80,632 77,773 16 Creditor5: amounts falling due after more than one year 2023 2022 Notes Bank loans 17 667,215 736,680 17 Loans and overdrafts 2023 2022 Bank loans 736,681 803,518 Payable within one year Payable after one year 69.466 667,215 66.838 736.680 Amounts included above which fall due after five year5.. Payable by instalments 360.142 441,584 Bank loans are secured by a floating charge over assets and undertakings of the charitable company and by way of a legal mortgage over the properties owned by the charitable company. Bank loans are being repaid by way of monthly instalments iintil Jan 2032 with an interest rate of LIBOR plus 20-
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 18 Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balance5 of donations and grants held on trust for specific purposes.. Movement in funds Incoming Resources Balance at rg$our¢e$ •xp¢ndod 1 Aprll 2022 Balance at 1 April 2021 Transfers Balance at 31 Mar¢h 2023 Garfield Weston Bailey Thomas Beatrice Lang Ulster Bank Staff Charity Fund The Wolfson Foundation The Clothworkers Foundation Awards forAII Northern Ireland Ulster Garden The Forbes Charitable Foundation Sensory Garden 45,693 26.630 44.383 {1.3281 (600} (1,0001 44.365 26.030 43.383 {44,365) (26,030) (43,383) 2,405 28,405 1541 (6401 2,351 27,765 {2,351) {27.765) 44,383 {1,000) 43.383 {43,383) 2.607 13,107 16521 {3,277} 1.955 9.830 (1,955) (9,830) 1,310 (328) 982 10,000 (982) 10,000 10.000 208.923 10.000 (8,879} 210.044 (200,044) 10,000 Restricted Funds The restricted fund5 as al 31 March 2022 relate to income received from providers towards the construction of Cumulus Heights and the provision of equipment and fixtures for the new facility. Although these funds were spent they continued lo be identified as reslricled as conditions relating to the capilal grants are still applicable. Now the conditions have been satisfied the funds have been transferred in the year lo unrestricted. Senso Garden Restricted Fund This relates lo funds that have been received by Mainstay DRM or fundraised specifically for the construction of a sensory garden. 21
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 19 Designated funds The income funds of the charity include the following designated funds which have been sel aside out of unreslricled funds by the trustees for specific purposes.. Movement in funds Incoming r•sour¢gs Movement in funds In¢omlng Balance at resources 31 March 2023 Balance at 1 Aprll 2022 Propety fund Sensory Garden fund 16,876 2,089 16.876 2,089 16,876 2,089 18,965 18.965 18,965 The company has designated £18,965 of its unrestricted fund5 for the following purposes. £1 6.876 is for any future capital works which may need ID be carried out on ils properties. £2.089 has been designated for a sensory garden. 20 Contingent Liabilities A portion of capital grants received may become repayable if the conipany fails lo comply with the terms of the letters of offer. 21 Capitsl commitments 2023 2022 Al 31 March 2023 the charity had capital commitments as follows.. Contracted for but not provided in the financial statements.. Acquisition of property, plant and equipment 17.823 50.000 22 Related party transactions The company works closely with Mainstay DRP which shares the charity's passion for providing accommodation and care and support to people who have a learning disability and their families. As at 31 March 2023 a balance of £1.38212022'. £nil} is owed lo the charity from Mainstay DRP. During the year, the company rented a number of properties to Mainstay DRP for £219,966 (2022.. £223,617) and received training facilities and consultancy seNice income of £2.411 12022.. £28,936). During the year, the charity received service charge income of £8.391 from Mainstay DRP {2022'. £nil). In addition, Mainstay DRP provides management, finance and administrative support lo the charrty for no charge. 22-
MAINSTAY DRM LTD NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 23 Analysis of net assets beeen funds Unrestricted Restricted funds funds 2023 2023 Totsl Unrestricted Restricted funds funds 2022 2022 Total 2023 2022 Fund balances at 31 March 2023 are represented by". Tangible assets Current assetsl{liabilities> Long term liabilities 3,695,602 287.391 1667,215) 3,695.602 3,563.709 297,391 232.836 (667,2151 1736.6801 200,044 10,000 3.763,753 242,836 1736.680) 10,000 3.315,778 10,000 3,325,778 3,059.865 210,044 3.269.909 24 Cash generated from operations 2023 2022 Surplus for the year 55.869 424.292 Adjustrnent5 for.. Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets 11,534} 92.504 12471 91.219 Movements in working capital.. (Increaselldecrease in debtors Increasel{decreasel in creditors (9,602) 231 11,025 1333,3281 Cash generated from operations 137,468 192,961 25 Analysis of changes in net Idebtlmunds At 1 April 2022 Cash flowsAt 31 March 2023 Cash at bank and in hand 320.609 47,812 368,421 Loans falling due within one year Loans falling due afler more than one year {66.8381 1736.6801 {2,628) 89,465 169,4661 {667,2151 1482,9091 114.649 1368,2601 23-