report of the trustees and financial statements for … · statements of the charity for the year...

REPORT OF THE TRUSTEES

AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2016

REGISTERED COMPANY NUMBER: 03206963 (England and Wales)

REGISTERED CHARITY NUMBER: 1057024

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2016

Page

Report of the Trustees 1 to 7

Independent Auditor’s Report 8 to 9

Statement of Financial Activities 10

Balance Sheet 11

Notes to the Financial Statements 12 to 22

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The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial

statements of the charity for the year ended 31st March 2016. The trustees have adopted the provisions of Accounting and Reporting

by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial

Reporting Standard for Smaller Entities (the FRSSE) (effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The organisation's principal objectives are to:

“Provide relief for carers, children and adults who have care needs as a result of disability, illness or age by offering a range of

support services including advice, information, emotional support, advocacy, training and a respite service through the provision of

community based support and advice workers".

These objects were revised and approved by the Charity Commission in relation to the combination with Coventry Carers' Centre

which took place on 1 June 2015. As a consequence, the services offered to carers and those adults and children they care for were

expanded from the provision of practical home based support services to include information, advice and support services, formerly

provided by Coventry Carers' Centre. Hence the revised objectives are achieved by the employment and training of a range of staff to

offer a "one stop shop" for carers which includes:

Advice and information in one to one situations and to groups of carers together with emotional support

Staff to go into the homes of people with care needs to provide practical and emotional support to the adults or child with a

disability or ill health thereby providing the carer with a break from their caring role.

Training for carers to equip them with the skills they need to continue in their caring role, both in groups and one to one in

their own home.

The aims for 2015-16 were:

To maintain current contracts

Grow services

Initiate new services

Achieve continuous improvement

Demonstrate quality

Achieve full cost recovery

Reduce costs and waste

Continue the centralisation of back office services to reduce costs

Ensure the combination of the two charities, Carers Trust Heart of England and Coventry Carers’ Centre was managed

effectively to increase the range of services to carers and those adults and children they care for.

To develop the one stop shop for carers

To manage the move to Coventry Central Library for the Information Advice and Support service

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit

when reviewing the Charity's aims and objectives and in planning future activities. The trustees have also considered how planned

activities will contribute to the aims and objectives of the Charity.

The Charity seeks to support carers to continue caring, thereby enabling those adults and children with care needs to continue to live

in the community independently and with choice and control over their own lives. Although many of the services provided are funded

through statutory bodies there are also significant amounts of services funded through private donations, grants from trusts and

philanthropic organisations. One example of this is the STARS club for children which is an activity club for disabled children of all

ages held each Saturday. The club enables the parents of the children to have time out from their caring responsibilities whilst

knowing their children are well cared for and enjoying activities with their peers. This activity is funded entirely through donations.

Another example is the provision of a service to Young Carers to enable them to benefit from support in their caring role and to

alleviate the effects that caring can have on their health, education and life opportunities. This service is funded by The Big Lottery,

Children in Need and Carers Trust.

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ACHIEVEMENT AND PERFORMANCE

Charitable Activities and Performance

The principal area of activities is the provision of advice and information and practical home based support.

During the year the Information, Advice and Support Service identified and supported 1,368 new carers, of whom 808 were aged

19-64, 309 were 65 and over, and 248 were 18 and under. We had 5,300 one to one support contacts with 2,441 carers mainly

through our telephone helpline, city centre drops in and outreach activities including those at GP surgeries, University Hospital, the

Caludon Centre and schools. Carers' needs were met by the service alone in about 75% of the one to one contacts; in about 25% of

cases carers were signposted to other organisations for additional support including benefit agencies, voluntary sector organisations

and social care services. In addition, 529 adults and 242 young carers were supported through a range of group activities.

Through our partnership work with Coventry City Council we were commissioned to carry out Carers' Assessments on their behalf as

part of their implementation of the Care Act. We continued to provide a specialist service to support carers of those with mental

health needs funded by Coventry and Rugby Clinical Commissioning Group. Our success in applying for grants from non-statutory

sources enabled us to continue our specialist work supporting Chinese carers (Henry Smith Charity), carers of people with learning

disabilities from Black, Asian and Minority Ethnic Communities (Tudor Trust), and our work with over 20 GP surgeries and other

primary care services (Big Lottery).

Our work with young carers continued with successful applications to the Big Lottery, Children in Need and Carers Trust, which

enabled us to expand our support for young carers and young adult carers across the city.

Outcomes reported by adult carers included improved finances (44%), reduced social isolation (79%), reduced stress (75%), more

able to carry on caring (67%) and greater ability to deal with health and social care professionals (65%). Outcomes reported by

young carers included reduced social isolation (88%), improved mental health (86%) and improved physical health (78%).

During the year the regulated services provided 150,368 hours of support to 1,144 service users. Of these hours 27.5% were delivered

to private customers, 65.25% through statutory funding and 7.25% through grants.

In addition to the figures quoted, we have visited and drawn up a support plan, and are able if required, to support a further 1,102

Cress members who are registered with our emergency service in Coventry. We also support a further 255 elderly people who live

alone through the Telecare service as we are key holders for them in the event of an emergency. A further 138 carers have been

supported through our Stars club activities and Carers Training, both group training and one to one.

The effect of the recent Care Act has seen a reduction in the Carers Break hours. Replacement care is now part of the person with care

needs care plan and the unintended consequence is that many carers no longer request replacement care for themselves. This is being

monitored carefully to see if the long term effect of this is to the detriment of carers. However, we delivered 13,590 hours of carers'

break support compared to 17,446 in 14/15, a reduction of 22%. We have continued with the very successful Dementia reablement

programme where we support people with a dementia diagnosis to return home from hospital, this year delivering 1,629 hours of

support to 27 people.

We have continued to develop our training programme which supports carers with training in groups and in their own home and this

service has expanded with the development of our service to support carers to access the appropriate equipment to prevent injury to

themselves and the person they care for.

Feedback through our annual questionnaire demonstrates the value of our regulated services with 96% of customers telling us that

they rate our services 8 ,9 or 10 on a scale of 1 to 10 for satisfaction.

FINANCIAL REVIEW

Principal funding sources

The principal funding source of the organisation is from contracts from the statutory authorities, namely Coventry City Council,

Warwickshire County Council and Coventry and Warwickshire Clinical Commissioning Groups.

These state bodies provided 64% (2015: 85%) of our total income although when excluding the one off total reserves transfer

following the combination with Coventry Carers' Centre this figure is amended to 69%. The reason for the lower percentage figure in

comparison to the 2014/15 year is the non-regulated grant income in respect of Information, Advice and Support Service which has

come with the combination with Coventry Carers' Centre.

Investment policy and objectives

All of the charity's investments with the exception of its headquarters building are represented by cash balances with its Bankers and

these are deemed to yield minimal but secure returns. While bank interest received remains at a low level, the charity has no plans to

transfer these assets to any other areas of risk.

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FINANCIAL REVIEW

Reserves policy

The Charity Commission defines reserves as 'that part of the charity's income funds which can be made available to spend for any or

all of the charity's purposes once it has met its commitments and covered other planned expenditure. The Trustees are aware of the

general legal duty to apply charitable funds within a reasonable time of receiving them.

Therefore, to justify the holding of reserves the charity needs a reserves policy which is based on a realistic assessment of the required

reserves.

Income from restricted funds (income which must be applied to the purposes specified under the terms of the agreement or contract

for which they were given), cannot be set aside for use in line with the reserves policy as any unused funds must be returned, carried

forward or applied in line with the funding agencies requirements.

Unrestricted funds (money generated as a result of fees and charges, or interest on monies invested), is expendable at the discretion of

the Trustees in furthering the objects of the charity.

The board of trustees has identified that a minimum level of unrestricted funds should be set to counter balance trading uncertainty

and provide a base level for stability. A target level of unrestricted funds has been set to allow for growth and for the charity to take

advantage of strategic opportunities for the future growth.

The current level of unrestricted funds should be set as follows:

Minimum level

Three months operating costs plus an additional fund to cover redundancy costs for all staff plus legal costs associated with winding

up of the Company.

Target level

Six months operating costs plus an additional fund to cover redundancy costs for all staff plus legal costs associated with winding up

of the Company.

The board of trustees has approved charity's reserves policy and identified the following reasons to hold reserves:

To provide financial stability to enable us to continue to achieve its objective during challenging trading periods.

To allow us to take advantage of strategic development opportunities and plan for future growth.

To enable us to make investment decisions in accordance with the investment policy and enable us to consider opportunistic

investments which may not be within strategic plan.

The trustees also feel that additional funds should be set aside to meet longer term commitments such as leases, property maintenance

and redundancy payments. With the total reserves for this financial year reaching £1,480,840 (2015: £1,272,602) (of which restricted

reserves are £1,049,570, and unrestricted reserves are £431,270 from which certain reserves have been designated), and which the

Trustees believe are sufficient funds exist to allow the continued operation of the company in the event of a significant drop in

funding.

Unrestricted Designated Funds Balance at 1

April 2015

Transfer from

General Funds

Transfer to

General Funds

Balance at 31

March 2016

£ £ £ £

Personnel - 100,000 - 100,000

Premises - 50,000 - 50,000

Equipment replacement - 50,000 - 50,000

Luncheon Club - 353 - 353

Social Club - 557 - 557

General Carers support - 833 - 833

Parent Carers support - 694 - 694

Milan Asian Carers support - 2,215 - 2,215

Total - 204,652 - 204,652

Funds not required on an immediate basis will be invested in line with the investment policy. Trustees review this policy formally on

an annual basis. This total reserves figure is substantially above last year's accounts due to the transfer of funds from Coventry Carers’

Centre as a result of the combining of the two charities. Amount of £273,647 was transferred which consists of unrestricted funding of

£254,947 and restricted funding of £18,700.

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FINANCIAL REVIEW

Reserves policy-continued

Through strategic planning and constant monitoring, the charity has built up over several years a sound asset base backed by cash

reserves.

Summary

Total income amounted to £3,117,348 with an increase of 23% compared to 2015 income of £2,525,359 including restricted and

unrestricted funds. In comparison to the 2015 year-end this figure is substantially higher due to the income from Coventry Carers'

Centre since June 2015. Our principal funding sources were local authority grants and fee contracts as in previous years and totalled

£2,786,071 (2015: £2,426,258) of which £2,866,051 was spent on the provision of care services (2015: £2,449,280). The overall

result for the year was a surplus of £208,238 compared with a deficit of £10,991 for 2015. However principally this surplus was as a

result of the transfer of total funds from Coventry Carers’ Centre of £273,647.

While the accounts detail the actual money received and expended, in addition the value of the work undertaken by volunteers and

contributions in kind are calculated to be in the region of £50,000 - £75,000.

COMBINATION WITH COVENTRY CARERS' CENTRE

The combination with Coventry Carers’ Centre has given Carers Trust Heart of England the opportunity to reach many more carers

and those they care for. The combination of the two charities has been welcomed by the Local Authority and reflects many of the

mergers and combining of charities which is happening throughout the country. Once the initial costs of the combination have been

absorbed it is hoped that the streamlining of back office support, human resources and training will lead to more direct and cost

effective customer facing services to benefit carers.

Shortly after the combination the Information, Advice and Support services moved from their original base to a purpose-built area of

the Coventry Central Library. With a footfall of more than a quarter of a million per annum we anticipate that our higher profile in our

new home will also enable us to be in contact with more carers.

The combination with the charity called Coventry Carers' Centre (as mentioned above) took place on the 1 June 2015. Carers Trust,

Heart of England took over all contracts and responsibilities, and all of the assets and liabilities.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is a charitable company not having a share capital as defined by Companies Act 2006. It was registered as charity on 23

July 1996 and constitutes a limited company, limited by guarantee as defined by the Companies Act 2006. It is controlled by its

governing document and memorandum and articles of association which were amended at the board meeting on 26th March 2015 and

approved by the Charity Commission and registered with Companies House together with the name change to Carers Trust, Heart of

England (formerly Crossroads, Coventry & Warwickshire).

Recruitment and appointment of new trustees

The directors of the company are also charity trustees for the purpose of charity law and are known as members of the Management

Committee. Under the requirements of the Articles of Association, at the Annual General Meeting one third of the directors must

retire from office however, the Board of Trustees may allow the trustees concerned to be reappointed by ordinary resolution. The

Board of Trustees may appoint a person who is willing to act as a trustee either to fill a casual vacancy or as an additional trustee.

Organisational structure

Carers Trust, Heart of England has a Management Committee of 15 trustees who meet regularly throughout the year and at least bi

monthly. Each meeting includes a review of the current activities including the financial position, actual achievement against the

action plan, health and safety issues and future strategy. The board is supported by ad-hoc sub-committees which are formed as

necessary to discuss particular aspects of the charity's work. The trustees also hold designated training days each year where they

examine in detail specific areas of importance including risk management, health and safety, strategic planning, sustainable funding

and accounts. The trustees also attend both the Annual General Meeting and any training seminars pertinent to their responsibilities as

trustees. The trustees have a wide range of business, social work and management experience from practitioner to director level and

the majority of trustees have also had personal experience of caring.

The head office of the charity is based in Queen Victoria Road, Coventry, the Information, Advice and Support services are delivered

from our new base in Coventry Central Library and our Young Carers services are delivered from the Den in Methodist Central Hall.

There is one other office in Lawford Road, Rugby where the regulated services for Warwickshire are delivered. Carers Trust, Heart of

England provides services throughout Coventry and Warwickshire by teams of staff based in their local areas and managed from one

of the above stated offices.

The day to day responsibility of the organisation is that of the Chief Executive (CEO) who also provides support and advice to the

trustees in business and strategic planning. The Chief Executive is supported by the Head of Operations, and the Managers of the

Coventry and Rugby regulated services, Finance and Administration, Information, Advice and Support Services and the Young

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Organisational structure-continued Carers Service. They respectively manage their teams of advisors, coordinators, assessors, administration staff and care support staff.

A new post this year since the combination with Coventry Carers' Centre is the Head of Service Development who supports the CEO.

Remuneration for staff, including key management personnel is reviewed annually taking into account current minimum wage

legislation and its impact on salary scales together with a review of similar charitable organisations pay scales.


Induction and training of new trustees

An audit is maintained of the trustee's skills to ensure there is a broad mix of skills to manage the organisation particularly in relation

to business/management expertise and knowledge of carers' issues. When vacancies occur individuals are approached with the

necessary skills to offer themselves for election to the management committee.

New trustees are invited to meet with the Chairman and Chief Executive to learn about the organisation and to ensure they are aware

of their responsibilities and obligations as a management committee member, understand the constitution and memorandum and

articles, have a knowledge of the current financial position of the charity and have a broad understanding of the future plans and

objectives.

Related parties and associations

The charity is a partner of the Carers Trust. The Carers Trust was formed as a result of the merger of the former Crossroads

Association and the Princess Royal Trust for Carers. All network partners of the Trust work to an agreed quality assurance standard

and share the same aims and objectives. In addition, the charity is registered with the Care Quality Commission (formerly

Commission for Social Care Inspection) as a domiciliary care agency providing regulated services and as such adheres to the

standards as laid down in the National Minimum Care Standards legislation. Locally, the registered manager and staff work closely

with other charitable and statutory authorities to further the interests of carers and those they care for. The Chief Executive works

locally, regionally and nationally to promote the organisation and forge links with other organisations to further the work of the

charity.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03206963 (England and Wales)

Limited by Guarantee

Registered Charity number

1057024

Registered office Head office

1 & 2 Mercia Village 6 Queen Victoria Road

Torwood Close Coventry

Westwood Business Park West Midlands

Coventry CV1 3JH

West Midlands http://www.carerstrusthofe.org.uk

CV4 8HX

Trustees

Mr. Victor Walter Keene MBE Director

Mrs. Vivien Kershaw Director

Mrs. Rosemarie June Tonkinson Director

Miss Sue Line Director

Mrs. Christine Titley Director

Mr. Dhiran Vagdia Director

Mr. Andrew King Director

Mr. Garth Murphy Director/ Co-Chairman

Mr. John Stephen Payne Director

Mrs. Rita Mary Evans Director

Mr. Gian Singh Seehra Director

Mrs. Davinder Athwal Director

Mrs. Janet Elisabeth Jones-Legg MBE Director/ Co-Chairman

Ms. Jean Erica Jackson Director

Ms. Marcia Garratt Director

Ms. Ghazala Ahmed Director- resigned March 2016

http://www.carerstrusthofe.org.uk/

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REFERENCE AND ADMINISTRATIVE DETAILS

Chief Executive/Company Secretary

Mrs. Penelope Avril Collard MBE

Auditors

Armstrongs Accountancy Ltd

Chartered Accountants and Statutory Auditor

1 & 2 Mercia Village

Torwood Close

Westwood Business Park

Coventry

West Midlands

CV4 8HX

Bankers

Barclays Bank Plc

25 High Street

Coventry

CV1 5QZ

Solicitors

Mr. David Dumbleton

Rotherham & Company

8 & 9 The Quadrant

Coventry

Accountant

Mr. Greville Webb & Mr Andrew Webb

11 Elm Bank Close

Leamington Spa

CV32 6LR

GOING CONCERN

The trustees have considered the reserves policy above and the working capital requirements for the period of 12 months from the

date of this report and have reasonable expectation that the Charity has adequate resources to continue its operations for the

foreseeable future. Accordingly, the trustees continue to adopt the going concern basis for the preparation of the annual report and

accounts.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also the directors of Carers Trust, Heart of England for the purposes of company law) are responsible for

preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting

Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state

of affairs of the charitable company and of the incoming resources and application of resources, including the income and

expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charity SORP;

- make judgements and estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company

will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial

position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the

charitable company`s auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order

to make them aware of any audit information and to establish that the charitable company`s auditors are aware of that information.

AUDITOR

The auditor, Armstrongs Accountancy Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

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

companies.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

CARERS TRUST, HEART OF ENGLAND

We have audited the financial statements of Carers Trust, Heart of England for the year ended 31st March 2016 on pages ten to

twenty-one. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting

Standard for Smaller Entities (effective January 2015) (United Kingdom Generally Accepted Accounting Practice applicable to

Smaller Entities).

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies

Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are

required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit

work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors

As explained more fully in the Statement of Trustees Responsibilities set out on page six, the trustees (who are also the directors of

the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being

satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International

Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards

for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable

assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an

assessment of: whether the accounting policies are appropriate to the charitable company's circumstances and have been consistently

applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall

presentation of the financial statements. In addition, we read all the financial and non-financial information in the Report of the

Trustees to identify material inconsistencies with the audited financial statements and to identify any information that is apparently

materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If

we become aware of any apparent material misstatements or inconsistencies, we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

- give a true and fair view of the state of the charitable company's affairs as at 31st March 2016 and of its incoming resources

and application of resources, including its income and expenditure, for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to

Smaller Entities; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Trustees for the financial year for which the financial statements are

prepared is consistent with the financial statements.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF


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STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)


2016 2015

Unrestricted

fund

Restricted funds

Total funds Total funds

Notes £ £ £ £

INCOME AND ENDOWMENTS FROM

Donations and legacies 2 44,293 - 44,293 85,987

Charitable activities 5

Care and support services - 2,786,071 2,786,071 2,426,258

Other trading activities 3 4,957 - 4,957 7,022

Investment income 4 8,380 - 8,380 6,092

Other income 6 254,947 18,700 273,647 -

Total 312,577 2,804,771 3,117,348 2,525,359

EXPENDITURE ON

Raising funds 7 43,059 - 43,059 87,070

Charitable activities 8

Care and support services - 2,866,051 2,866,051 2,449,280

Total 43,059 2,866,051 2,909,110 2,536,350

NET INCOME/(EXPENDITURE) 269,518 (61,280) 208,238 (10,991)

RECONCILIATION OF FUNDS

Total funds brought forward 161,752 1,110,850 1,272,602 1,283,593

TOTAL FUNDS CARRIED FORWARD 431,270 1,049,570 1,480,840 1,272,602

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BALANCE SHEET

AT 31ST MARCH 2016

2016 2015

Notes £ £

FIXED ASSETS

Tangible assets 15 418,084 397,133

CURRENT ASSETS

Debtors 16 102,928 129,740

Cash at bank and in hand 1,576,090 1,384,101

1,679,018 1,513,841

CREDITORS

Amounts falling due within one year 17 (616,262) (638,372)

NET CURRENT ASSETS 1,062,756 875,469

TOTAL ASSETS LESS CURRENT LIABILITIES 1,480,840 1,272,602

NET ASSETS 1,480,840 1,272,602

FUNDS 20

Unrestricted funds

- General funds 226,618 161,752

- Designated funds 204,652 -

Restricted funds 1,049,570 1,110,850

TOTAL FUNDS 1,480,840 1,272,602

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NOTES TO THE FINANCIAL STATEMENTS


1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company have been prepared in accordance with the Charities SORP (FRSSE)

'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts

in accordance with the Financial Reporting Standard for Smaller Entities (the FRSSE) (effective 1 January 2015)', the

Financial Reporting Standard for Smaller Entities (effective January 2015) and the Companies Act 2006. The financial

statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable

that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that

expenditure, 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 accounted for on an accruals basis and has been classified under headings that

aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been

allocated to activities on a basis consistent with the use of resources.

Deferred income

In accordance with the Charities SORP (FRSSE) received in advance and specified by the provider as relating to specific

accounting periods or alternatively which are subject to conditions which are still to be met, and which are outside the control

of the charity or where it is uncertain whether the conditions can or will be met, are deferred or an accruals basis to the period

to which they relate. Such deferrals are shown in the notes to the financial statements and the sums involved are shown as

creditors in the financial statements

Recognition of liabilities

Liabilities are recognised on accrual basis in accordance with normal accounting principles, modified where necessary in

accordance with the guidance given in the Charities SORP (FRSSE).

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities (SoFA) on a straight-line basis over

the period of the lease.

Investments

Short term investments are classified as current assets and valued at current market value.

Allocation and apportionment of costs

Support Costs: The costs are directly allocated to that contract. Where support costs relate to several contracts, the costs are

allocated to each of the contacts in direct proportion to the care staff hours that are required by the contact.

The number of care staff hours in a contract is deemed to be the appropriate basis for allocating support costs as it closely

reflects the resource usage of the support functions for the core activities. Support costs that represent the support functions of

Management, Finance and Accounts, Human resources, IT and Offices facilities are allocated to each activity based on the

number of staff performing a particular activity in relation to the total number of staff performing all the core activities.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - not provided

Fixtures, fittings & equipment - 25% on reducing balance

Freehold property policy - The charity does not depreciate assets that retain their value over the period of ownership.

Tangible fixed assets are stated at historic cost less accumulated depreciation. Costs include the original purchase price of the

asset and the costs attributable to bringing the asset to its working condition for its intended use. All expenditure of a capital

nature is capitalised at cost as fixed assets with items costing below £1500 being fully depreciated during the year of

purchase.

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED


1. ACCOUNTING POLICIES - continued

Taxation

The charity is exempt from corporation tax to the extent that its income and gains are applicable to charitable purposes only.

Value Added Tax is not recoverable by the Charity and is therefore included in the relevant costs in the Statement of

Financial Activities (SoFA).

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general

objectives of the charity and which have not been designated for other purposes.

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

are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the

charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund.

Investment income and gains are allocated to the appropriate fund.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's

pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Going concern

The trustees have considered the reserves policy above and the working capital requirements for the period of 12 months

from the date of this report and have reasonable expectation that the Charity has adequate resources to continue its operations

for the foreseeable future. Accordingly, the trustees continue to adopt the going concern basis for the preparation of the

annual report and accounts.

2. DONATIONS AND LEGACIES

2016 2015

Unrestricted Restricted Total Total

funds funds funds funds

£ £ £ £

Training grants 544 - 544 16,840

Donations and subscriptions 43,749 - 43,749 69,147

44,293 - 44,293 85,987

3. OTHER TRADING ACTIVITIES

2016 2015



£ £ £ £

Fundraising events 4,957 - 4,957 7,022

4. INVESTMENT INCOME

2016 2015



£ £ £ £

Rents received 1,667 - 1,667 -

Deposit account interest 6,713 - 6,713 6,092

8,380 - 8,380 6,092

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5. INCOME FROM CHARITABLE ACTIVITIES

2016 2015

Activity £ £

Local authority contracts Care and support services 1,950,226 2,135,478

Grants (see below) Care and support services 835,845 290,780

2,786,071 2,426,258

In the above Grants figures for Care and support services includes the following funding providers:

2016 2015

Grants Activity £ £

Big Lottery Care and support services 17,536 -

Children in Need Care and support services 21,757 -

Alan Higgs Trust Care and support services 7,500 -

Carers Trust – Time for Change Care and support services 9,090 -

Henry Smith Charity Care and support services 8,667 -

Tudor Trust Care and support services 23,260 -

Big Lottery Care and support services 63,037 -

Local Authority Grants Care and support services 639,389 259,847

Peoples Health Trust (Carers Trust) Care and support services 18,444 10,385

Provincial Grand Chapter Care and support services - 9,487

Other Grants Care and support services 27,165 11,061

835,845 290,780

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6. OTHER INCOME

2016 2015



£ £ £ £

Transfer of funds from Coventry Carers’ Centre 254,947 18,700 273,647 -

On 1st June 2015, the assets and liabilities of Coventry Carers’ Centre (A company limited by Guarantee) registered number

03611360 and charity registered number 1074758 were transferred to the Charity.

£

Current assets Debtors 2,701

Cash at bank and in hand 401,139

403,840

Current liabilities Trade creditors 7,307

Other creditors 1,332

Accruals and deferred income 121,554

130,193

Net assets 273,647

Funds Restricted funds

Unrestricted funds 18,700

- General funds 125,509

- Designated funds 129,438

Total funds 273,647

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7. RAISING FUNDS

Raising donations and legacies

2016 2015



£ £ £ £

Staff costs 20,000 - 20,000 72,000

Support costs 18,027 - 18,027 9,885

38,027 - 38,027 81,885

Other trading activities

2016 2015



£ £ £ £

Support costs 3,932 - 3,932 4,085

Investment management costs

2016 2015



£ £ £ £

Support costs 1,100 - 1,100 1,100

Aggregate amounts 43,059 - 43,059 87,070

8. CHARITABLE ACTIVITIES COSTS

Direct costs Support costs Totals

(See note 9) (See note 10)

£ £ £

Care and support services 2,120,876 745,175 2,866,051

9. DIRECT COSTS OF CHARITABLE ACTIVITIES

2016 2015

£ £

Staff costs 2,039,559 1,742,629

Carers' grant equipment & support 49,017 3,841

Protective clothing 9,318 13,577

Training costs 12,623 20,150

Bad debts 286 623

Depreciation 10,073 3,089

2,120,876 1,783,909

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10. SUPPORT COSTS

Management

Governance

costs

Totals

£ £ £

Costs of generating voluntary income 18,027 - 18,027

Fundraising trading: cost of goods sold and other costs 3,932 - 3,932

Investment management costs 1,100 - 1,100

Care and support services 653,497 91,678 745,175

676,556 91,678 768,234

Support costs, included in the above, are as follows:

Costs of

generating

voluntary

income

Fundraising

trading: cost of

goods sold and

other costs

Investment

management

costs

£ £ £

Wages 17,036 2,000 1,000

Insurance 40 - -

Light and heat 40 - -

Telephone 300 300 100

Postage and stationery 400 400 -

Computer support 100 - -

Other administrative expenses 111 1,232 -

Social security - - -

Pensions - - -

Premises costs - - -

Advertising - - -

Wages - - -

Pensions - - -

Auditors' remuneration - - -

Telephone - - -

Postage and stationery - - -

Sundries - - -

Legal and professional charges - - -

18,027 3,932 1,100

2016 2015

Care and

support services

Total activities

Total activities

£ £ £

Wages 427,949 447,985 454,587

Insurance 14,890 14,930 15,509

Light and heat 12,597 12,637 7,418

Telephone 17,537 18,237 17,024

Postage and stationery 20,965 21,765 14,252

Computer support 32,146 32,246 35,745

Other administrative expenses 26,485 27,828 35,420

Social security 41,124 41,124 38,207

Pensions 2,401 2,401 -

Premises costs 49,084 49,084 20,022

Advertising 8,319 8,319 -

Carried forward 653,497 676,556 638,184

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10. SUPPORT COSTS - continued

2016 2015

Care and

support services

Total activities

Total activities

£ £ £

Brought forward 653,497 676,556 638,184

Wages 39,000 39,000 11,000

Pensions 250 250 -

Auditors' remuneration 5,435 5,435 5,150

Telephone 1,500 1,500 1,200

Postage and stationery 3,800 3,800 1,500

Sundries 4,150 4,150 2,650

Legal and professional charges 37,543 37,543 20,757

745,175 768,234 680,441

11. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2016 2015

£ £

Auditors' remuneration 5,435 5,150

Depreciation - owned assets 10,072 3,090

12. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st March 2016 nor for the year ended

31st March 2015.

Trustees' expenses

During the year ending 31st March 2016 expenses totalling £157 (2015 £nil) were paid to trustees.

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13. STAFF COSTS

2016 2015

£ £

Wages and salaries 2,426,010 2,197,292

Social security costs 139,074 114,856

Other pension costs 25,235 6,275

2,590,319 2,318,423

The average monthly number of employees during the year was as follows:

2016 2015

Chief executive 1 1

Practical support services 138 161

Young/Young adult carer information, advice and support services 3 -

Central management support 6 4

Adult information advice and support services 14 -

Finance and administration 9 6

171 172

No employees received emoluments in excess of £60,000.

There were no employees with emoluments exceeding £60,000 during the year.

14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

fund

Restricted funds

Total funds

£ £ £

INCOME AND ENDOWMENTS FROM

Donations and legacies 85,987 - 85,987

Charitable activities

Care and support services - 2,426,258 2,426,258

Other trading activities 7,022 - 7,022

Investment income 6,092 - 6,092

Total 99,101 2,426,258 2,525,359

EXPENDITURE ON

Raising funds 87,070 - 87,070

Charitable activities

Care and support services - 2,449,280 2,449,280

Total 87,070 2,449,280 2,536,350

NET INCOME/(EXPENDITURE) 12,031 (23,022) (10,991)

RECONCILIATION OF FUNDS

Total funds brought forward 149,721 1,133,872 1,283,593

TOTAL FUNDS CARRIED FORWARD 161,752 1,110,850 1,272,602

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15. TANGIBLE FIXED ASSETS

Freehold

property

Fixtures, fittings

& equipment

Totals

£ £ £

COST

At 1st April 2015 400,122 28,226 428,348

Additions - 31,023 31,023

At 31st March 2016 400,122 59,249 459,371

DEPRECIATION

At 1st April 2015 12,256 18,959 31,215

Charge for year - 10,072 10,072

At 31st March 2016 12,256 29,031 41,287

NET BOOK VALUE

At 31st March 2016 387,866 30,218 418,084

At 31st March 2015 387,866 9,267 397,133

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016 2015

£ £

Trade debtors 96,777 129,063

Other debtors 1,500 -

Prepayments 4,651 677

102,928 129,740

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016 2015

£ £

Trade creditors and provisions 49,685 67,631

Social security and other taxes 231 20

Deferred income 566,346 570,721

616,262 638,372

Deferred income

2016

£

2015

£

As at 1st April 570,721 562,196

Deferred income acquired through business combination 115,370 -

Amounts received in the year 717,768 299,305

Income utilised in the year (837,513) (290,780)

As at 31st March 566,346 570,721

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18. OPERATING LEASE COMMITMENTS

The following operating lease payments are committed to be paid within one year:

2016 2015

£ £

Expiring:

Between one and five years 13,334 -

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2016 2015

Unrestricted

fund

Restricted funds

Total funds Total funds

£ £ £ £

Fixed assets 30,218 387,866 418,084 397,133

Current assets 418,281 1,260,737 1,679,018 1,513,841

Current liabilities (17,229) (599,033) (616,262) (638,372)

431,270 1,049,570 1,480,840 1,272,602

20. MOVEMENT IN FUNDS

At 1.4.15

Net movement

in funds

At 31.3.16

£ £ £

Unrestricted funds

General funds 161,752 64,866 226,618

Designated funds - 204,652 204,652

Restricted funds

Designated funds 1,110,850 (61,280) 1,049,570

TOTAL FUNDS 1,272,602 208,238 1,480,840

Net movement in funds, included in the above are as follows:

Incoming

resources

Resources

expended

Movement in

funds

£ £ £

Unrestricted funds

General funds 107,925 (43,059) 64,866

Designated funds 204,652 - 204,652

Restricted funds

Designated funds 2,804,771 (2,866,051) (61,280)

TOTAL FUNDS 3,117,348 (2,909,110) 208,238

The restricted funds are represented by local authority contracts with Coventry City Council, Warwickshire County Council

and Coventry and Warwickshire Clinical Commissioning Groups.

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21. PENSION COMMITMENTS

The Charity operates a defined contribution scheme for management employees with more than two years’ services. The

defined contributions are paid immediately each month to the nominated fund of the respective employees. The amount paid

into scheme during the year amounted to £25,235 (2015: £6,275). There were no amounts outstanding or prepaid at 31st

March 2016 (2015: Nil).

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31st March 2016.

23. ULTIMATE CONTROLLING PARTY

Carers Trust, Heart of England is a charitable company limited by guarantee. The members of the company have agreed to

contribute £5 each to the assets of the company in the event of company being wound up.

Ultimate control of the company rests with the trustees who are also directors and members of the company.

report of the trustees and financial statements for … · statements of the charity for the year...

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