COMPANY REGISTRATION NUMBER: N1019253 CHARITY REGISTRATION NUMBER. NIC105012 Extra Care for Elderly People Limited Company Limited by Guarantee Financial Statements 31 March 2023 Finegan Gibson Ltd Chartered accountants & statutory auditor Causeway Tower g James Street South Belfast BT2 8DN
Extra Care for Elderly People Limited Company Limited by Guarantee Financial Statements Year ended 31 March 2023 Page Trustees, annual report (incorporating the directorfs report) Independent auditorfs report to the members 16 Statement of financial activities (including income and expenditure account) 22 statement of financial position 23 Statement of cash flows 24 Notes to the financial statements 25 The following pages do not fonn part of the financial ststements Detailed statement of financial activities 41 Notes to the detailed statement of financial activities 42
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) Year ended 31 March 2023 The trustees, who are also the directors for the purposes of company law. present their report and the financial statements of the charity for the year ended 31 March 2023. Reference and administrative details Registered charity name Extra Care for Ehjerly People Limited Charity registration number NIC105012 Company registration number N1019253 Principal office and registered Lucas Exchange office 1 Orchard Way Greystone Road Antrim BT412RU The trustees S Gibson Briggs JFOY A Bing C Craig T Tumer J Harbison (Chalerson) D Jeffrey {Resned 18 November 2022) (Appointed 24 August 2023) Company secretary A Simpson Auditor Finegan Gibson Ltd Chartered accountants & statutory auditor Causeway T¢)wer 9 James Street South Belfast BT2 8DN Bankers Danske Bank PO Box 183 t)onegall Square West Beffast BT16JS
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continu Year ended 31 March 2023 Structure, govemance and management Goveming Document Extra Care for Elderty People Limited is a company limrted by guarantee, governed by its Memorandum and Articles of Association dated 14th February 1986. as updated. approved and adopted on 31st March 2010. The pury)ose of the charity is set out in the objects contained in the company's memorandum of association as follows.. {a) To relieve older and disabled people (including those who are lonely) by providing appropriate care (bl To provide care services to enable dependent adutts and children to continue to live at home and to provide support to famity carers.
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (contlnu Year ended 31 March 2023 Structure, governance and management (contind) Appointment of trustees Extra Care aims to ensure that a wide range of management. administration, financial, legal, research, health and social care skills and property expertise a available on the Board of Directors and in the event of particular expertise being lost due lo retirements, indtviduaLs wrth relevant knowledge are approa¢hed lo be COwOPted onto the Board and stand for election at the following AGM. During the year a number of trustees indicated their desire to retire from the board. On behaw of the board of directors, the chair thanks them for their work and commitment over the last few years and particularly during the drfkult challenges of the previous hvelve months. The Board of Directors are also Charity Trustees for the purposes of Charity law. Under the requirements of the Memorandum and Articles of Association all Directots, other than the chairperson, retire at the AGM and have the option to put themselves foTward for reolection. At the AGM, the following directors and committee chairs were elected.. 1. Dame Joan Harbison (Chairperson) 2. Andrew Bing (VI Chairperson) 3. Chris Craig 4. Julie Foy 5. Tim Tumer Mr D Jeffrey was co-opted to the board on 24th August 2023. Board & Committees In 2022. in response to the pressures generated by ongoing Covid19 pandemic and the smaller board of Trustees. the charity suspended rf(s normal sub-committee structure during the year. Instead. it opted for increasing the frequency of full board meetings wrth an altemating focus on areas usually addressed by the sub-commrttees. This allowed the full board to have greater oversight of the key issues previously raised within the sub-commtttees. Specificalty. the work of the Quality Assurance Committee was subsumed into both the board and the monthly Reg 23 meetings. The Board met on the following dates in the year. 24th May 2022 18th August 2022 29th September 2022 24th November 2022 16th February 2023 24th March 2023 Meetings were a hybrid of inyrson and virtual attendan via mrOSOft Teams. The board also established a commrttee to deal wrth the review of the month Qualty Monitoring Report {Reg23) under the chrmanship of Andrew Bing. The committee met on the following dales: 11th May 2022 20th December 2022 16th February 2023
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (confrnued) Year ended 31 March 2023 Structure, govemance and management (coniinutd) Attendance at Meetings Trustee attendance at meetings is recorded below Board of Trustees 24105122 18108122 29109122 24111122 16102123 24103123 Joan Harbison Chris Crai Andrew Bin Julie Fo Tim Turner Alembers of the Company The following individuals are members of the Charty as at the date of this report. 1. Dame Joan Harbison 2. Andrew Bing (Acting Chairperson) 3. Chris Cra3 4. Julie Foy 5. David Jeffrey (Appointed 24th August 2023) 6. Tim Turner Trustee induction and training New trustees are recrutted using an open recruitment process. Vacancies are advertised across social media arKI through relevant urnbrella bodies and membership organisations. Applicants are then short-listed before being interviewed by a panel includirKJ current trustees and the chief executive. Newty appointed trust have meetings with the chairperson. chief executive and senior management team and are provided with detailed information relating to the organisation, its stralegic plan, annual operational plan. annual budgeL policles and procedures. Each new trustee is provided with a New Trustees Induction Handbook during the indLKtion process. Some Trustees attended staff meetings and accompanied care workers as they visited service users. Arrangements forsethng pay and rnmuneration ofkey managementpersonnel In the absence of the Finance Committee. the senior management team provided the board with recommendations to set pay and remuneratK)n to key management personnel. office staff and to care staff as part of the annual budgeting cycle using any benchmarks. parameters or criteria they feel are appropriate to reward arKI rTr)tivate while sho1ng restraint and delivering on the charttable goals of the organisation.
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continu8dJ Year ended 31 March 2023 Structure, governance and management (contin() Oryanisation At the date of this report, there are FIVE Tnjstees on the board. The directors are also the Charity Trustees and come from a wde range of backgrounds and professional and working experience that are relevant to the work of the Charity and the board's role in overseeing this work and setting direction. The day-to-day responsibility for leading the organisation's work and delrvefing on its strategy rests with the senior management team comprising ot, Managing Director Director of Finance and Facilities Relatedparties Extra Care is operating for the public benefrt and the Trustees are ¥ting in the interests of their Charty and not for private benefrt. Related party transactions involving Trustees or staff are considered incidental as it would have been applied for through the NHS and assigned in the same way as all other beneficiaries_ All Trustees are required to declare any conflict of interest at the beginning of each meeting. Risk management A risk rnanagement structure identrfies and scores the signrficant risks to the delivery of the objectives of the Charity along a matrix of likelihood and impact. The risk matrix is used as the risk reglster for the organisation and is reviewed on a quarterly basis to detect and report any movement in risk as a result of internal performan or extemal events. An organisational risk re9iSter is in place and available as a shared online resource to the entire board of Trustees. The register is reviewed formally vice a year by the Assurance Committee and recommended to the board for approval. Throughout Ihe year the register updates are delegated to the appropriate member of the Senior Leadership Team and updates are taken through the Assuran Committee before approval al a full board meeting. Financial risks are considered by the Finan Committee within their terms of reference. Given the sr2e of the company and the relativety small head Offi function. an intemal audit function is not considered necessary. Any risk posed by the absence of an internal audit function is balanced by the oversight provided by the Finan coMmee and the annual extemal audiL
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2023 Objectives and activities Extra Care continues to position tself in a srgnfficanl portton of the Ca at home market in Northern Ireland working in four trust areas and providing a countrywide assisted peritoneal diatysis service {APD}. As the longest established care at home organisation and tslebrating tts 86th anniversary in 2021, Extra Care's history is unique. and the refreshed aims and objectives as expressed in the organisation's draft strategy for 2019 - 2023 ensures that it will continue to play a sNJnifTrcanl role in in the future. Over 619 people have been able to continue to live at home alone or alongside their faMilS because of Extra Care's support. The age of people supported ranges from adults of 30 years old to over 100 years old. The organisalion employs over 202 care workers on a mix of substantive and flexible contracts ensuring that they can have the work-life balance that those they care for choose. Principal Activity The principal activty of the company during the year is the provision of care for people of all ages in their own homes and providing support for their carers. The core seN1$ provided by Extra Care across Northern Ireland generally fall into the following categories.. - Domiciliary Support - designed to assist very highty dependent people either to remain in their own hornes or to return home from hospital or residential care. Care is provided by care workers on a regular basis to help the service user wrth personal care tasks. Dementia Services - specialist Servi providing indNidually planned programmes of care for people with dementia. Waking Night Help SerVeS. Sleepier Services and Mctjile Night Servi5 - designed to respond to the needs of service users through the ovemight perK)d. APD is an innovatNe option for treatsnent of patients wrth end-stsge renal failure in their homes. This therapy involves patients being treated with APD in their homes. with daily attendance of a health care assistant to perfom a large part of the dialysis-related work.
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continwdj Year ended 31 March 2023 Achievements and performance This year Extra Care delivered over 208,000 hours of Care across the 5 Trust areas. Service Users by Type of Care Provided *APD Dementia Team Elderly Team Learning Disability Team A Mental Health Team Physical Disabi lity Team
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2023 Hours Delivered by Commissioning Body 78.84 % 5.46 Private Clients - 0.51 %
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) (contlnued) Year ended 31 March 2023 Share of Total Hours Delivered by Geographica Area N'Abbey 6% "Apd 6% caIck Whitehead Ne 5% iame Beifa5t 6%
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2023 Care to delivered 619 service users Over 750,000 miles travelled by care workers Extra Care YLTrU..Choice. YGarCare. YoJr Over 265 people employed 208,000 hours of care provided 10
Extra Care for Elderly People Lirnited Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directovs Report) (continuedj Year ended 31 March 2023 Financial review The 2022123 year continued to be very challenging for the charity. The abilty to deliver care is wholly dependent on the abilty to provide sufficient staff to deliver those care hours and the company continued to struggle to recruit staff in large enough numbers to grow the business. As a resu. the hours declined during the year. In response to the declining income stream and increasing cash flow pressures. the charty went through a re-struclunng process in the Autumn of 2022. The new structure and reduced operating costs will place the charity in a more secure position in future yeats. Cashflow projections prepared in late 2022 showed a retum to surplus in 2025 but were conditional on an increase in the regional rate offered by hearth trusts that at least matched the statutory increase in wages arising from the National Minimum Wage however the regional rate increased by a disappointing 30h while the National Minirnum Wage increased by 9.7 %. This ha$ reSued in the charity incurring more significant losses than had originally been projected. In 2022123 the Charity eamed income of £3,820,472 (2022 £4,284,666) from its Charitab activities. the largest source of which was the Northem Heah and Social Care Trust. In June 2018 the Charity acquired Lucas Exchange11, an investment property located adjacent to the head office in Antrim. The income from rentals in the year was £189.922 {2022.' £191,790). A further £1,066 was earned from listed investments and donationsllegacies. The charity also benefitted from a gacY donation during the year of £90.122 (2022: 2371 and a donation of PPE stock lo the value of £74.094 {2022-. £43.056) bringing the total income for the year to £4.177,401 (2022: £4,744,062). Expenditure on charitable actwities amounted to £4.367.581 (2022: £4.719.542). A total of £58,709 (2022: £42,986) was paid out in interest on an overdraft converted from a propety loan during the year. the original purp)se of which was the purchase of an Investment property. Before unrealised losses on investments, the charity made a net deficit of £190.180. The charty incurred an actuarial gain on the Northem Ireland Charities Pension Scheme amounting to £3.905 {2022'. £3.428 loss) and an105s on investments of £7.441 {2022 £3.13510ss). During the year the charlty listed the propety for sale on the open market with a view to using the proceeds to settle the overdraft secured upon it. The value of the property has subsequentty be revalued in the accounts to reflect the realistic market value of £1.5m, giving rise to a unrealised loss on revaluation of £300,00012002.' £750.100). After the revaluation, the net movement in funds for the year ts a deficit of £530.828 {2022.' £725.873). The deficit brings the Charity's total unrestricted reseNes to £304.159 12022. £797.875) of which £1.587.424 is represented by fixed assets including £1,500,000 (2022 £1.800,0001 of investment property. 11
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continue Year ended 31 March 2023 Financial review (continued) Invesbnentpowers andpolicy Under the Memorandum and Articles of Association. Extra Care has the power to invest in any way the Trustees wish. A specific investment policy is in place. The overall objectives of the investment policy are to enable the Charity to carry out its purposes Gonsistently year by year with due and proper consideration for future needs and the maintenance of. and if possible. enhancement of the value of the invested funds while they are retained. Both caprtal and income may be used at any time for the furtherance of the Charity's aims. QuiKer Cheviot were engaged during the year to manage the investment portfolio (excluding the investment property). Reserves policy The reserves policy will manage the level of unrestricted reserves in line with the requirements of Extra Care and best practice within the sector and is proportional to the scale and complexity of the organisation's affairs. This reseNes policy states the purpose of holding the reserves and provides the public and e$tIng and potential funders wrth a clear explanation of the reserves held. A new reserves policy was adopted by the Trustees in early 2019. Cash reserves are needed to bridge the timing gap between spending and receiving of income and to cover unplanned temporary shortfalls in income should they arise. Holding adequate reserves safeguards the provision of our services in the event of unewted significant financial pressures. The Trustees consider that the ideal level of cash reserves would be three months, expendilure. For the year ended 31 March 2023 the figure Vuld be £1.09m. On 31st March 2023 the Charity's balan sheet shows nel assets of £304.159. This includes tangible fixed assels of £87,424 and an investment property of £1.500.000. It also includes a overdraft of £1.95m within short-tenn CredOrS and due for renewal in June 2023. the circumstances of which are set out in greater detail within note 27 of the aCCntS. £1.5m of the Charity's assets are represented by Lucas Exchange11, an investment property acquired by the Charity in 2018. The property has an associated overdraft liability of £1.195m secured against it and reported within liabilities falling due within one year. The Trustees are confident that the net value of this asset of £0.3m could be released wtthin a reasonable period should it be required, giving the Charity access to £0.3m within a 12-month period. This falls short of the TnJst*s' target reserves and in response, adions are being taken to address the reduced liquidty of the charity including a sale of its investment propety. Greater detail of the Trustees. assessment of going concern ts contained within note 27 of the accounts. 12
Extra Care for Elderly People Limited Company Llmlted by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continuedj Year ended 31 March 2023 Plans for future periods 2022r23 continued to be a penod of extreme pressure within the Heatth and Sttial Care market and has been exacerbated by the impact of the global pandemic. Preexisting financial pressures from National Living Wage. pension auto-enrolment and travel lime continued to mount on all providers and pressure on commissioners from continuing central and nationai govemment decreases in real terms funding shows no sign of lessening. The social care sector has particulady suffered frtyn a lack of staff since the pandemic. Since March 2020 at the beginnin9 of the pandemic. the number of care wotkers employed within the charity has fallen by over 20°A from 212 care workers to 167, making it drfficult for the charty to continue to deliver care at Ihe same level as before. The impact has been a drop in the hours delivered from 5,500 to 3.400. This reduction in hours has had a signtficant impact on the charity's financial resuits and cash flow and since July 2022 the charity has needed the support of its bank in the form of a short-temi overdraft facility. In June 2022 the charity's loan of £1.2m came up for renewal with Danske Bank who decided at that time that the loan did not sit within their portfolio and the facility expired. The outstanding liability of £1.198m was converted into an interest only overdraft and the charity continues to benefit from the support of the bank while it rre$ to sdl the property to settle the debt due to the bank. Given the ongoing impact of Covid-19. the Trustees do not foresee the cash reserves growing over the next couple of years but continue to ¢onsider the tsrget of three months, expendrture as appropriate. In response lo the declining income stream and increasing cash flow pressures, the charty went through a re-structuring prOsS in the Autumn of 2022. Further measures were taken in the post balance sheet period and the charity continues to seeks to reduced ris operating costs to pla the Charty in a more secure position in future years. Trustees. responsibilltles statement The trustees, who are also directors for the purposes of company law. are responsible for preparing the truslee5' report and the financial statements in accordance wrth applicable law and United Kingdom Accounting Standards (United Kingdom GenerlY Accepted Accounting Practice). Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and applicalion of resources, induding Ihe income and expendf(ure, for Ihat period. In preparing these financial statements. the trustees are required to: select surtable accounting policies and then app them consistenty; observe the methods and prin¢iples in the applicab Charities SORP., make judgments and accounting estimates that are reasonable and prudent., prepare the financial statements on the going concern basis unless it inappropriate to presume that the charity will ¢ontinue in business. 13
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees, Annual Report (Incorporating the Director's Report) (emtinue Year ended 31 March 2023 The trustees are respsIble for keeping adequate accounts'ng records that are sufficient to shN and explain the charity'5 transactions and disck)se with reasonable accuracy at any time the financial position of the charity and enab them to ensure that the financial statements comply wlth the Companies Art 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitÈs. The trustees (who are also the directors of Extra Care for Elderly People Limited for the purposes of company lawl are responsible for preparing the Trustees. Annual Report and the financial statements in accordan with applicable law and regulations. Company law requires the trustees to prepare accounts for each financial year. Under company law the trustees must not approve the financial statements unless they are satfied that they give a true and fair view of the slate of affairs of the charity and the income and expenditure of the charity for that pericKJ. In preparing these accounts. the TTUStees are required to.. select surtable accounting policies and then appty them consistentty; observe the methods and principles in the Charities SORP.. ' make judgements and acCntIng estimates that are reasonable and prudent.. and prepare the financial statements on the going concem basis unless it k8 inappropriate to presume thal the charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charty and enable them to ensure that the financk31 statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detects.on of fraud and other irregularities. Auditor Each of the persons who is a Trustee at the date of approval of thts rep confims that: so far as each Trustee is aware. there rs no relevant audit infomation of which the charity's auditor is unaware.. and each Trustee has taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the Charity's audrtor aware of that information. Small company provisions This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. 14
Extra Care for Elderly People Limited Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) {ContInt Year ended 31 March 2023 The trustees, annual report was approved on 25th January 2024 and signed on behalf of the board of trustees by: A Bing Trustee 15