Registered Charity Number

Transcription

1 Registered Charity Number Annual Report 2011

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3 Financial Review April 2010 to March 2011 The consolidated financial statements are presented in the standard format required by The Charities (Accounts and Reports) Regulations 2005 and the Charity Statement of Recommended Practice 2005 (SORP) and cover the activities of Age Concern Stockport and its trading subsidiary Age Concern Stockport Trading Limited for the period 1 April 2010 to 31 March Lacy Watson were reappointed as the organisation s auditors at the 2010 Annual General Meeting and they have formally and independently audited the accounts for the year and a Statement of Financial Activities has been produced in accordance with good practice and the requirements of the Charity Commission. Overview Age Concern Stockport had another solid year in the period April 2010 to March Good control over costs has enabled the trustees to maintain the general contingency fund to the policy level of six months expenditure without further transfer and increase designated funds in line with expected expenditure pressures in the next financial year. The Consolidated Accounts Income Expenditure Statutory Contracts 52% 46% Charitable Expenditure Other Grants 29% 35% Commercial Trading Expenses Charitable Income 5% 8% Fundraising Trading Income 8% 7% Expenses Investment Income 2% 1% Admin & Management Governance Costs Donations & Legacies 4% 3% 92% 93% 5% 4% 1% 1% 2% 2% Total incoming resources showed an increase of 111,230 represented largely by new grants from external sources. The level of donations in the year was slightly lower than the previous year and the level of income from legacies also decreased. The level of income from this source is hard to predict and generally down on the more economically stable years of 2004 to However it remains a welcome and significant contribution to funds. Charitable activities expenditure increased in line with incoming resources and this was represented by staffing and associated costs in relation to the new areas of work. The percentage of charitable activities expenditure increased again from 92% to 93% which clearly indicates the level of work in pursuing the charity s main objectives and the overarching aim of providing public benefit to the communities we serve. Staff costs represent the principal element of the expenditure and staff numbers and costs were up on last year. The figures also included 24,093 Redundancy costs as part of the restructuring. Charitable activities expenditure still represents the vast majority of expenditure as appropriate for an organisation whose key objectives are in delivering services. Age Concern Stockport Financial Review 2011 Page 3

4 More resources have been put into Fundraising costs to continue to attract additional funding to meet the organisation s objectives. In particular efforts continue to attract monies from sources external to Stockport as this brings additional monies and benefit into the Borough. The success rate on applications continues to be good and above average and significantly assists the organisation to meet its priorities. There continues to be an increase in fundraising events and activities, following a positive decision to bring in more unrestricted funds through these activities. Governance costs rose from 29,499 to 36,700 but remained at around 2% of total expenditure due to on-going cost control measures and continued refocusing of resources on service delivery. Commercial Trading Operations Age Concern Stockport Trading Limited is a wholly owned subsidiary and encompasses the varied activities that generate essential independent income for the charity. This includes Insurance products, Funeral plans, Energy products and others. The Trading Company exists to provide relevant products to the over 50 s market and support the work of the charity, with all surplus funds generated transferred directly to the charity under a Deed of Covenant. Work continued during the year locally and nationally, to ensure full and proper regulation for the insurance products. In January 2005 Age Concern Stockport Trading Limited became an Appointed Representative of Age Concern Enterprises Ltd, which is authorised and regulated by the Financial Services Authority (FSA) for general insurance. Throughout the year 2010/11 the organisation continued to be fully compliant, including a very successful external annual review of compliance with FSA procedures. The trading activities have continued to be affected, nationally and locally, by the impact of the rapid expansion of competition in the over 50 s market for insurance and other products. Because of an increase in the volume of trading activity for Stockport, which was above the national levels, and reduced expenditure the net income showed an increase of 16,700 and so increased the Deed of Covenant, again making a vital contribution to the work of the charity. As in all previous years since trading began the covenant payment represents a proportion of the overall surplus for the year. The contribution to the charity for this work is regularly monitored by the Board of the Trading Company and the charity trustees. As part of the brand and governance changes with the charity, as detailed in the Governance report, the Directors of the Trading Company undertook a full review of the whole business model and decided to retain an arranger model as it offered the most assistance to customers. As a consequence at the end of the financial year it was preparing to change its trading name to Age UK Stockport Trading from 1st April It had also already begun to change its products to new Age UK products, and this changeover was completed early into the current financial year. Shops: Age Concern Stockport no longer has any directly owned charity shops, choosing to work in partnership with Age Concern (now Age UK) retail nationally. The three partnership shops are in Bramhall, Cheadle Hulme and Heald Green and they continue to make a good and important contribution to general funds. Restricted & Unrestricted Funds Within the consolidated accounts funds are divided between Restricted and Unrestricted Funds. Restricted Funds are monies which are restricted in their use by the donor for specific purposes and are held by the organisation only for those purposes. The balances in these funds therefore represent monies held over and are protected for use within the specific areas of work. Unrestricted Funds represent the funds that have not been restricted by the donor and are available to the organisation. The components of the unrestricted funds are shown below: Age Concern Stockport Financial Review 2011 Page 4

5 Unrestricted Funds Fixed Asset Fund a permanent designated fund matched to fixed assets. These represent functional assets, principally the property at Commonweal, which could only represent useable funds through disposal, which would seriously limit the work of the charity. 29% 27% 27% Contingency or Reserves Fund to enable the level of protection for the future as determined by the trustees in their policy on reserves 51% 53% 54% Designated Fund - for specific identifiable future expenditure that is not expected to be met through the annual budget see below. 17% 19% 18% General Reserve general surplus 3% 1% 1% The remaining small General Reserve will be used to contribute to the costs of senior staff time in representing both the voluntary sector and older people through partnership working and via various multi-agency groups around the Borough. Raising Independent Income The net movement in unrestricted funds represents the contribution to the organisation from the various activities that are specifically undertaken to raise independent funds. The organisation makes considerable effort to bring in this contribution to positively affect the overall finances: Donations and legacies 71,461 Trading income 66,829 Investment and other income 18,761 Total additional unrestricted income 157,051 LESS: Deficit on other activities ( ) Net movement in Unrestricted Funds 82,491 Up to 2003 most of the additional unrestricted income from trading activities, investments and donations was largely absorbed in supporting under funded or unfunded charitable activities, but the charity was still able to finish the year with a modest surplus. However since 2004 these activities and the important additional income they have provided have been totally absorbed in preventing the year finishing with a significant deficit on charitable activities. This level of support from Age Concern Stockport s own resources to delivery is monitored by the trustees to ensure appropriate efforts to raise these independent funds are maintained. The first deficit on activities of 24,563 in 2004 has raised year on year and the 2010/11 deficit of 74,560 remained very similar to last year. Designated Funds Following review during the year the amount of unrestricted funds designated by the trustees has been adjusted to reflect the expected call on the organisation s funds. Particular attention has been paid to the Fixed Assets, the property at Commonweal, which continues to represent the major strand of the organisation s investment policy. Also to an awareness of the wider economic situation, including new and unprecedented pressures in the coming financial year following complete cuts in some funding and significant reductions in many other service areas. Age Concern Stockport Financial Review 2011 Page 5

6 Funds designated for fixed asset maintenance; 60,000 IT Development & Contingency Fund 15,000 Communications Fund: 14,000 Public Office costs 18,000 Project Contingency 52,483 Vehicle replacement 38,000 Service and Delivery Fund 30,000 Emergency Planning Fund 5,000 Standards Fund inc. Intranet Development 16,500 The Fixed Asset ( a ccommodation ) Fund was established to provide sufficient funds to maintain the building which was essential to the organisation of the Charity and the efficient provision of its services and also a major strand of the investment policy. The reserve is reviewed annually and has been adjusted down by 36,000 this year to reflect the work carried out during the reporting year and to ensure sound maintenance in the next period. The IT Development & Contingency Fund was set up following an improvement in the computer infrastructure in 08/09 to ensure planning for the necessary maintenance of the system in recognition that this is now a crucial part of the organisation s operations. This has been increased due to the increase in IT reliance generally and following the organisational introduction of a delivery database, Charity Log in The Communications Fund is to ensure the organisational aims and values of accessibility and fairness in supporting local people are achieved. This will include investment in promotional work including increasing newsletter distribution, dealing with accessibility and diversity issues. This has been increased slightly to respond to the development of personalisation. Increased on the previous year as the use of the Pop In as a social centre and the adjacent offices are subject to a fundamental review of the premises. This fund will be reviewed on an on-going basis. Designated funds represent some contingency against a budgeted deficit for 2011/12. It is also expected to contribute to some specific pressures in changes in services. This has been maintained as the two Handy Help vans get nearer needing replacement and are now a critical part of delivery. Maintained at 30,000 in view of the pressures on maintaining service delivery in the current economic climate. It now represents a limited fund for support costs for areas of work that will require an amount of support from the charity s resources to be sustainable, to give time for further funding to be found or time to wind up. The Emergency Planning Fund represents a fund set aside to ensure the provision of backup in the case of an emergency event, following local and national advice. In view of positive steps taken in planning in previous years this has been maintained at the same level. This fund is to cover additional investment in the organisations quality standards and its internal infrastructure, particularly the development of the Intranet and new IT based delivery systems, Charity Log, to support new ways of working. This has been increased to reflect the ongoing work around fully establishing Charity Log, the commitment to ISO 9001 and and also expected new quality standards from the new national body Age UK. New Structure & Brand Fund 15,000 The costs of the change to an incorporated charity have been largely dealt with. However the continued costs of the new delivery structure together with marketing the rebranding in a more competitive environment will continue into the next financial year. Age Concern Stockport Financial Review 2011 Page 6

7 Reserves The trustees have continued to review the charity s activities and its financial position, with regard to the level of commitments in respect of contracted services, the staffing profile, property and expected future needs and opportunities. The review focused on forecasts for levels of income and planned expenditure in future years, analysis of contingencies, anticipated existing and new challenges, vulnerabilities and risks and their potential impact and likelihood. New challenges focused on the uncertainties and destabilisation in the development of the personalisation agenda and the massive governmental changes taking place in statutory structures and delivery, as well as consideration of the impact of the economic situation generally and locally. From this the contingency reserve was maintained at the level of six months running costs by transferring the required amount to the contingency fund. The trustees note that the challenge in immediate years will be to maintain the contingency reserve at this required level for prudence for the organisation whilst also keeping the organisation in a solid position that enables it to apply to other agencies and seek to continue to attract funds from external sources into Stockport. Investment The trustees recognise the continued instability of the property market but still remain generally satisfied by the main strand of their investment policy represented by the purchase of the base at Commonweal in June In addition to being a good investment, the aim to remove previously identified risks and inefficiencies and to increase the opportunities for external funding, that often does not include a contribution to central costs, have all continued to be well met through this asset. In addition the ownership and control of a central base has enabled Age Concern Stockport to pursue an environmental policy, first introduced in 2005, and actively and positively championed by a group of staff and to be taken further in 2011 by the relevant ISO standard. The trustees recognise that the property investment is a functional asset, meaning it could only represent useable funds through disposal which would seriously limit the work of the charity and open it up to significant operational risks. The trustees have continued to review the designation of unrestricted funds and the investment elements of beneficial banking arrangements and remain satisfied in this respect. However the sensible approach to investment and the continued drop in interest rates significantly affected the overall position with a significant decrease in investment income in the year and the trustees continue to carefully monitor the market and the overall external environment. Volunteers It is important to highlight that Age Concern Stockport provides a wide variety of services to older people across the Borough, from the most vulnerable to the most active. Services such as one to one support including home visiting, group support such as the Travel Desk, through to the behind the scenes work such as the production of the Newsletter are all well used and well thought of, all involve volunteers. There are currently 180 Volunteers (at March 2011) involved across the various projects, and pleasingly the number of volunteers has remained around the 175 mark for some years now despite a national downward trend. Estimates of financial value are made by assessing the hours worked and converting this into a monetary value using appropriate hourly rates for the different types of involvement. This was first done in 2005 resulting in an estimate that the organisation would need to find an additional 292,634 to pay staff to cover services that were provided by volunteers. At the time of writing with an increase in the minimum wage, inflation and changes in some volunteer responsibilities this would have increased again to an estimated figure in the region of 435,000 as at March The true value of volunteer involvement though far exceeds any monetary value as they bring fresh energy and community knowledge to the organisation in so many ways. Age Concern Stockport Financial Review 2011 Page 7

8 Risk The trustees are fully aware of their responsibilities to identify, assess and manage risk in all areas of the organisation. The full and active implementation of a comprehensive risk management policy and procedures ensure that trustees have good knowledge and information for management of all elements of the organisation s risk, and comprehensive details are included in the governance section of this report. The Risk Management procedures have continued to receive commendation from external reviewers. Public Benefit The trustees incorporated the most recent Charity Commission guidance on public benefit in all aspects of their governance of the charity, including when deciding what activities the charity should undertake. This financial review together with the comprehensive review of performance in the annual report, demonstrate how the key aims of the charity are carried out, through the activities undertaken, for the public benefit. The sections that provide details of activities by project and organisational actions directly related to the five key aims directly demonstrate the delivery of specific services and activities that contribute to the public benefit for a wide range of beneficiaries. Partnership Working The trustees completed a two year review and extensive consultation with a range of stakeholders in December 2010 and made a decision in favour of accepting the offer of a Brand Partnership with the new national organisation Age UK. Decisions were made in the best interests of local older people and came into effect formally at the end of the reporting year. We also continue to look forward to new partnerships and to work for positive and productive relationships with key partners to assist in delivery of statutory priorities supporting local older people to live independent and fulfilling lives. Summary In summary the accounts reflect another busy year of effective service delivery for Stockport. For the seventh year running the charity has been able to turn a loss on charitable activities into an overall surplus by its own efforts in trading and fundraising thereby directly contributing above and beyond local statutory funding for the benefit of people in Stockport. The trustees continue to ensure that the organisation demonstrates a sound financial base, which is a key element in successful applications for new project funding generally, and particularly for attracting funds into Stockport from outside funding agencies. This was clearly demonstrated by the success of the application to the Home Office Transitional fund at the end of the financial year, a key element of which was being able to demonstrate solid reserves. The Trustees are aware that the future continues to involve many changes in the external environment in which the charity works, particularly influenced by the national move to the personalisation agenda. In addition the general and local economic situation presented the organisation with many significant challenges at the end of the year as many projects lost funding and came to an end and the organisation had a 10% cut for the next financial year 2011/12 from its main local government funding. With all of these changes still unfolding there are many and significant uncertainties in many parts of the system, however the staff team continue to flex and change to meet these challenges and maintain support to local older people. By order of the Trustees of Age Concern Stockport: Derek Caldwell Chair of Trustees, Age Concern Stockport Date 24th October 2011 Age Concern Stockport Financial Review 2011 Page 8

9 Age Concern Stockport Statement by Trustees Summarised Accounts The attached summarised accounts are a summary of information extracted from the annual accounts and certain information relating to both the Statement of Financial Activities and the Balance Sheet. These summarised accounts may not contain sufficient information to allow for a full understanding of the financial affairs of the charity. For further information, the full annual accounts and the trustees annual report, should be consulted: copies of these can be obtained from Commonweal, 56 Wellington Street, Stockport. The full annual accounts have been subject to external examination by an independent auditor and received an unqualified report. The annual accounts were approved by the trustees on 3 October 2011 and have been submitted to the Charity Commission. Signed: Mr. Derek Caldwell, For and on behalf of the Board of Trustees 24th October 2011 Age Concern Stockport Financial Review 2011 Page 9

10 Independent Auditors Statement to the Trustees of Age Concern Stockport We have examined the summarised financial statements of Age Concern Stockport. Respective responsibilities of trustees and auditors The trustees are responsible for preparing the summarised annual report in accordance with applicable law. Our responsibility is to report to you our opinion on the consistency of the Summarised Financial Statements within the Summarised Annual Report, with the full Financial Statements and Trustees Report. We also read the other information contained in the Summarised Annual Report and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the Summarised Financial Statements. Basis of Opinion We have conducted our work in accordance with Bulletin 1999/6 The auditors statement on the summary financial statement issued by the Auditing Practices Board for use in the United Kingdom. Opinion In our opinion, the summarised financial statements are consistent with the full Financial Statements and Trustees report of Age Concern Stockport for the year ended 31 st March Mr Stephen Hennessey (senior statutory auditor) On behalf of Lacy Watson Chartered Accountants 107 Wellington Road South, Stockport, Cheshire. SK1 3TL Date 24th October 2011 Age Concern Stockport Summarised Financial Statements year ended 31 March 11 CONTENTS Consolidated Statement of Financial Activities Balance Sheets Notes to the Financial Statements Age Concern Stockport Financial Review 2011 Page 10

11 AGE CONCERN STOCKPORT CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 ST MARCH Unrestricted Restricted Total Total Note funds funds funds funds Incoming resources Incoming resources from generated funds: Voluntary income: Grants and donations 70, ,461 79,759 Activities for generating funds: Commercial trading operations 117, , ,780 Investment income 18,761-18,761 26, , , ,702 Incoming resources from charitable activities 1,048, ,366 1,445,736 1,307,679 Total incoming resources 1,255, ,048 1,653,611 1,542,381 Resources expended Cost of generating funds Fundraising costs of grants and donations 20,730-20,730 11,730 Commercial trading operations 58,074-58,074 78,651 Cost of generating funds 78,804-78,804 90,381 Charitable activities 1 1,057, ,962 1,458,530 1,334,792 Governance costs 36,700-36,700 29,499 1,094, ,962 1,495,230 1,364,291 Total resources expended 1,173, ,962 1,574,034 1,454,672 Net movement of funds in year 82,491 (2,914) 79,577 87,709 Total funds brought forward 1,364, ,484 1,780,498 1,692,789 Total funds carried forward 1,446, ,570 1,860,075 1,780,498 Age Concern Stockport Financial Review 2011 Page 11

12 AGE CONCERN STOCKPORT CONSOLIDATED AND CHARITY BALANCE SHEETS AT 31 ST MARCH 2011 Group Charity Note Fixed assets Tangible fixed assets 382, , , ,620 Investment in Trading subsidiary Current assets 382, , , ,622 Debtors 220, , , ,216 Cash at bank and in hand 1,779,414 1,706,301 1,743,570 1,676,199 1,999,500 1,837,599 1,959,452 1,801,415 Creditors amounts falling due within one year (521,596) (430,721) (481,550) (394,539) Net current assets 1,477,904 1,406,878 1,477,902 1,406,876 Net assets 1,860,075 1,780,498 1,860,075 1,780,498 Funds Unrestricted 2 1,446,505 1,364,014 1,446,505 1,364,014 Restricted 413, , , ,484 1,860,075 1,780,498 1,860,075 1,780,498 Approved by the Board of Trustees on 24 October 2011 And signed on its behalf by Mr. D. Caldwell Chairperson Age Concern Stockport Financial Review 2011 Page 12

13 AGE CONCERN STOCKPORT NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH Charitable activity expenditure Unrestricted Restricted funds funds Prevention Services 492,796 69, , ,723 Hospital Services 78,997-78,997 82,618 Carers and Direct Care Services 390,842 92, , ,936 Community Support 71, , , ,478 Other 23,342 40,423 63,765 78, Unrestricted Funds 1,057, ,962 1,458,530 1,334,792 The funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. Transfer from/(to) Balance at Income & Balance at 31 st March Expenditure Transfer 31 st March 2010 Account of funds 2011 General Contingency Fund 727,336 60, ,336 Accommodation and Maintenance Funds 95,000 (35,000) 60,000 IT Development & Contingency Fund 8,000 7,000 15,000 Communication Fund 8,000 6,000 14,000 Public Office Fund 12,000 6,000 18,000 Project Contingency Fund 26,000 26,483 52,483 Vehicle Replacement Fund 38,000-38,000 Service & Delivery Fund 30,000-30,000 Emergency Planning Fund 5,000-5,000 Standards Fund 12,000 4,500 16,500 New structure and Brand costs 19,200 (4,200) 15, ,536 70,783 1,051,319 Fixed Asset 373,620 8, ,171 General Reserve 9,858 82,491 (79,334) 13,015 1,364,014 82,491-1,446,505 Age Concern Stockport Financial Review 2011 Page 13

14 2. Unrestricted Funds continued AGE CONCERN STOCKPORT NOTES TO THE SUMMARISED ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH 2011 The General Contingency Fund represents funds set aside to mitigate the risks and vulnerabilities identified to the Charity s major sources of income. The aim of the Charity is to ensure that sufficient funds are available to meet its committed costs for a period of six months of both restricted and unrestricted funds. The desired level has been maintained. The Accommodation and Maintenance Fund was established to provide sufficient funds to maintain the building which was essential to the organisation of the Charity and the efficient provision of its services. The reserve has been reviewed and reflects the anticipated ongoing maintenance cost of the Charity s premises. The IT Development & Contingency Fund is a fund set up following a review of the computer infrastructure in 08/09 to ensure planning for the necessary maintenance of the system in recognition that this is now a crucial part of the organisation s operations. This has been reviewed with the introduction of further computer based systems thorough Charity Log. The Communication Strategies Fund is a maintained fund to ensure the organisational aims and values of accessibility and fairness in supporting local people are achieved. accessibility and fairness in supporting local people are achieved. This includes investment in promotional work including newsletter distribution, and dealing with accessibility and diversity issues. This has been reviewed to include marketing with the development of personalisation. The Public Office Fund reflects and is designed to respond to the social centre and the adjacent offices being subject to a fundamental review of the premises. The Project Contingency Fund represents funds set aside to meet a contingency against a budgeted deficit for 2010/2011. It is also expected to contribute to some specific pressures in changes in services. The Vehicle Replacement Fund is maintained as the two Handy Help vans get nearer to needing replacement. The Service Delivery Fund responds to the pressures on maintaining service delivery in the current economic climate. It now represents a limited fund for support costs for areas of work that will require an amount of support from the charity s resources to be sustainable, to give time for further funding to be found or time to wind up. The Emergency Planning Fund represents a fund set aside to provide backup in the case of an emergency event. The Standards fund is to cover additional investment in the organisation quality standards and its internal infrastructure, particularly the development of the Intranet and new IT based delivery systems, Charity Log, to support new ways of working. This also reflects the work around Charity Log, the commitment to ISO 9001 and and also expected new quality standards from the new national body Age UK. The New Structure & Brand Costs Fund represents the continued costs of the fundamental new delivery structure and the rebranding into the current year. The Fixed Asset Fund has been set up to assist in identifying those funds that are not free funds and it represents the net book value of tangible fixed assets. The General Reserve represents the free funds of the charity which are not designated for particular purposes. Age Concern Stockport Financial Review 2011 Page 14

15 Administrative Details of Age Concern Stockport For the reporting period 1st April 2010 to 31 March 2011 Age Concern Stockport is a registered charity number The charity is governed by a constitution originally adopted in September 1984 and amended in February The principal office is located at Commonweal, 56 Wellington Street, Stockport, SK1 3AQ. Board of Trustees Chair: Mr Derek Caldwell Vice Chair: Mrs Janet E Mehta Elected Members: Susan Chapman Hester Ormiston Satish Mehta MBE Sheelagh Peel Prof. Datta Chaudhuri Honorary Life Members The presiding Mayor of Stockport (President) Mr Bryan P Lingwood (Vice President) Principal Officers Chief Executive Officer Community Development Manager Business Development Manager Margaret J Brade, MBA, LIB Hons, BSc Hons, Clare Mullins, BA Hons Michelle Bancroft, BA Hons Professional Advisors Bankers Auditors Insurance Brokers The Co-operative Bank plc, 1 St Peters Square, Stockport, SK1 1NX Lacy Watson, Carlyle House, 107 Wellington Road South, Stockport, SK1 3TL Towergate MIA, Kings Court, London Road, Stevenage, Herts, SG1 2GA Age Concern Stockport Financial Review 2011 Page 15

16 Age Concern Stockport Commonweal 56 Wellington Street, Stockport, SK1 3AQ Telephone: Fax: Web: Registered Charity No