Deafinitely Independent - Charities report - 19.1

REGISTERED COMPANY NUMBER: 02852695 (England and Wales)

REGISTERED CHARITY NUMBER: 1027567

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 DECEMBER 2018

FOR

DEAFINITELY INDEPENDENT

DEAFINITELY INDEPENDENT

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

Page

Report of the Trustees

1 to 4

Independent Examiner's Report

5

Statement of Financial Activities

6

Statement of Financial Position

7 to 8

Statement of Cash Flows

9

Notes to the Statement of Cash Flows

10

Notes to the Financial Statements

11 to 16

DEAFINITELY INDEPENDENT (REGISTERED NUMBER: 02852695)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2018

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 31 December 2018. 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 applicable in the UK and Republic of Ireland (FRS 102)

(effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charitable trust is constituted by a Trust Deed and its objects are to:

Promote the relief of persons with learning, physical and/or dual sensory disabilities of all ages who are deaf and to

provide learning experiences for such persons so as to encourage them to take responsibility for their own welfare as

far as they are able and to provide residential accommodation, counselling, education and training in furtherance of

these objects.

The main objective of the charitable trust continues to be to provide a quality service appropriate to the needs of current

users and to seek additional finance and support to meet the needs presented by existing and potential beneficiaries.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

2018 was a good year for Deafinitely Independent (DI).

Our residents continued to enjoy a wide range of activities, organised by DI and by themselves. It is lovely to see our

residents leading as normal a life as possible with the support of the caring DI family. Most of the residents have lived

together for many years and this is so important to them. Many of our staff have also worked for us for a long time and

so know our residents really well. We so appreciate the trust that residents' families put in us and we take this

responsibility extremely seriously. Our registered home manager has worked hard to reduce the use of agency staff so

with our permanent staff and regular bank staff, DI has enjoyed a stability in 2018 far more than in recent years.

Our finances have also improved with the manager's careful attention to detail that has led to well controlled

expenditure. This is the result of negotiating better contracts with suppliers, making better use of DI staff skills and

developing clear policies to guide staff on the best use of DI money. There has been a small increase in income due to

local fundraising activities and events, often by Board members or other friends of DI and discussions with local

authorities on realistic contributions towards the care of our residents.

In recent years, we have realised that the cost of our two buildings is a drain on our resources and the state and design

of the buildings is becoming no longer fit for purpose for the needs of our residents, some of whom are losing some

mobility. The Board has therefore been looking for new premises, which has been a frustrating process. We identified

what was required and considered converting another building as well as new builds. We then met with some of the

directors of the WCS Care Group, which has recently built and is building some new care homes to an extremely high

standard. Out of our conversations together came the opportunity to join with WCS in their latest venture Woodside

Care Village. This will provide 2 or 2½ households of 6 or 7 people exclusively for DI residents. This will mean all our

residents and staff can stay together but be supported by the larger charity. Early on, we discussed this with the

Warwickshire Commissioning team (as the commissioners for seven of our residents) and then later with CQC.

Towards the end of the year, we then shared this exciting possibility with the staff, the residents, their families and the

rest of the local authority commissioners / social workers. Plans will be well underway in 2019 for a positive move for

the residents, which is likely to be in early 2020.

We are therefore excited about the future of DI, which will become part of WCS, but still retain its identity, its ethos and

its unique provision for adults who are profoundly deaf with another, often learning, disability.

FINANCIAL REVIEW

Investment powers

The Trust Deed authorises the trustees to make and hold investments using the general funds of the charity, but no

such investments are presently held.

Reserves policy

This organisation exists to provide services to adults who are known to be vulnerable due to the nature of their

disabilities and difficulties.

General Reserves

The trustees declared financial reserves policy has been to ensure not only financial viability but also service level

stability.

The trustees reviewed this policy during 2012 and revised their aim in respect of keeping sufficient "liquid" reserves to

meet at least three months revenue expenditure at all times. All revenue income comes from Central and Local

Government.

The organisation has in place tight financial control systems to ensure it can meet all revenue expenditure within

revenue income.

The organisation operates within a framework of Minimum Standards of Service which is determined by legislation and

has a declared policy of seeking additional finance and support to meet the varying needs presented by existing and

potential beneficiaries.

The level of reserves that were held at the year end was £634,397.

Designated Funds

It was decided to set aside funds into a designated fund. At the year end £100,000 was designated specifically for

future property acquisition and relocation costs.

During 2017, Deafinitely Independent received a £15,532 legacy from a former employee. It was specified in their will

that it was to be spent on the acquisition of a motor vehicle. It has therefore been put into a designated fund until a

suitable vehicle has been sourced.

The trust has managed all its activities within income generated, donations received and fund balances brought

forward, these are set out in the Statement of Financial Activities.

The net surplus for the year on unrestricted funds was £120,684 (2017 - £24,302 deficit), comprising total incoming

resources of £1,494,077 (2017 - £747,993) and total resources expended of £1,373,393 (2017 - £723,357).

Total funds increased from £538,015 to £634,397. Cash at bank and in hand increased in the year to £552,393 from

£493,222 in the previous year.

FUTURE PLANS

The organisation will continue to monitor standards and financial stability. Throughout the coming year essential

renovation work will take place at Chestnut Lodge to continue the focus on high quality provision of accommodation

available to beneficiaries. The Trustees will continue to build reserves, above the standard policy level. The purchase of

an appropriate building will be considered when the financial climate becomes more stable.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The company is registered as a charity by the Charity Commissioners (No 1027567) and is recognised as such by H M

Revenue and Customs. The charity is governed by its Memorandum and Articles of Association (incorporated 13

September 1993 and amended by special resolution dated 7 August 2011).

Appointment of new trustees

Appointment of trustees is governed by the deed of the charity. The Board of Trustees is authorised to appoint new

Trustees at any time to fill a casual vacancy or as an addition to the existing Trustees.

Organisational structure

The board of trustees administers the charity. The board meets on average six times a year.

The trustees delegate the day to day responsibility for all routine financial matters, staff selection, development and

supervision, residents' and staff safety and compliance with all necessary legislation to the C.E.O.

Induction and training of new trustees

New trustees undergo an orientation process to brief them on their legal obligations under charity law, the charity's

governing documents, the committee and decision making processes, the business plan and recent financial

performance of the charity. During the induction process they meet key employees and other trustees, Trustees are

encouraged to attend appropriate external and internal training events which will assist them to carry out their role.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02852695 (England and Wales)

Registered Charity number

1027567

Registered office

Beech Lodge

28 Warwick New Road

Leamington Spa

Warwickshire

CV32 5JJ

Trustees

Mrs S Cox MBE

Retired

Mr P Clow

Retired

Mrs M James

Retired

Mr M Fry

Retired

Mr C J Sutton

Banker

Miss S E Dobinson

Trustee

Company Secretary

Mrs S Cox MBE

Independent examiner

TGFP

Chartered Accountants

Fulford House

Newbold Terrace

Leamington Spa

Warwickshire

CV32 4EA

Bankers

Lloyds Bank plc

73 Parade

Leamington Spa

Warwickshire

CV32 4BB

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

to small companies.

Approved by order of the board of trustees on 22 July 2019 and signed on its behalf by:

Mrs S Cox MBE - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

DEAFINITELY INDEPENDENT (REGISTERED NUMBER: 02852695)

Independent examiner's report to the trustees of Deafinitely Independent ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2018.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCA which is one of the listed bodies

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.

the accounts do not accord with those records; or

3.

the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached

Benjamin Reynolds

FCA

TGFP

Chartered Accountants

Fulford House

Newbold Terrace

Leamington Spa

Warwickshire

CV32 4EA

22 July 2019

DEAFINITELY INDEPENDENT

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2018

2018

2017

Unrestricted funds

Total funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

2,245

16,550

Charitable activities

5

Rents

743,487

731,137

Other trading activities

3

38

256

Investment income

4

314

50

Total

746,084

747,993

EXPENDITURE ON

Charitable activities

6

Costs of charitable activities

649,702

723,691

NET INCOME

96,382

24,302

RECONCILIATION OF FUNDS

Total funds brought forward

538,015

513,713

TOTAL FUNDS CARRIED FORWARD

634,397

538,015

DEAFINITELY INDEPENDENT (REGISTERED NUMBER: 02852695)

STATEMENT OF FINANCIAL POSITION

AT 31 DECEMBER 2018

2018

2017

Unrestricted funds

Total funds

Notes

£

£

FIXED ASSETS

Tangible assets

10

61,621

70,056

CURRENT ASSETS

Debtors

11

85,774

78,200

Cash at bank and in hand

552,393

493,222

638,167

571,422

CREDITORS

Amounts falling due within one year

12

(65,391

)

(103,463

)

NET CURRENT ASSETS

572,776

467,959

TOTAL ASSETS LESS CURRENT LIABILITIES

634,397

538,015

NET ASSETS

634,397

538,015

FUNDS

13

Unrestricted funds

634,397

538,015

TOTAL FUNDS

634,397

538,015

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 December 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 December 2018 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)

ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies

Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 22 July 2019 and were signed on its behalf by:

Mrs S Cox MBE -Trustee

DEAFINITELY INDEPENDENT

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2018

2018

2017

Notes

£

£

Cash flows from operating activities:

Cash generated from operations

1

68,428

39,720

Net cash provided by (used in) operating activities

68,428

39,720

Cash flows from investing activities:

Purchase of tangible fixed assets

(9,571

)

(1,560

)

Interest received

314

50

Net cash provided by (used in) investing activities

(9,257

)

(1,510

)

Change in cash and cash equivalents in the reporting period

59,171

38,210

Cash and cash equivalents at the beginning of the reporting period

493,222

455,012

Cash and cash equivalents at the end of the reporting period

552,393

493,222

DEAFINITELY INDEPENDENT

NOTES TO THE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2018

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2018

2017

£

£

Net income for the reporting period (as per the statement of financial activities)

96,382

24,302

Adjustments for:

Depreciation charges

18,006

21,348

Interest received

(314

)

(50

)

Increase in debtors

(7,574

)

(23,663

)

(Decrease)/increase in creditors

(38,072

)

17,783

Net cash provided by (used in) operating activities

68,428

39,720

DEAFINITELY INDEPENDENT

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement

of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial

Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)',

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland' 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.

Tangible fixed assets

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

life.

Long leasehold

- in accordance with the lease

Fixtures and fittings

- 20% on cost

Motor vehicles

- 25% on reducing balance

Computer equipment

- 20% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the charity.

Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis

over the period of the lease.

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.

2.	DONATIONS AND LEGACIES

2018

2017

£

£

Donations

2,245

16,550

3.	OTHER TRADING ACTIVITIES

2018

2017

£

£

Fundraising events

38

256

4.	INVESTMENT INCOME

2018

2017

£

£

Bank interest receivable

314

50

5.	INCOME FROM CHARITABLE ACTIVITIES

2018

2017

Activity

£

£

County Councils and DSS

Rents

743,487

731,137

6.	CHARITABLE ACTIVITIES COSTS

Direct costs

Totals

£

£

Costs of charitable activities

649,702

649,702

7.	NET INCOME/(EXPENDITURE)

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

2018

2017

£

£

Depreciation - owned assets

18,006

21,348

Hire of plant and machinery

40

3,370

Other operating leases

129,500

129,500

Accountancy remuneration

-

1,500

8.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2018 nor for the year

ended 31 December 2017.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2018 nor for the year ended

31 December 2017.

9.	STAFF COSTS

2018

2017

£

£

Wages and salaries

340,754

363,776

Social security costs

15,893

24,376

Other pension costs

3,035

4,885

359,682

393,037

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

2018

2017

Direct charitable services

22

22

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

10.	TANGIBLE FIXED ASSETS

Long leasehold

Fixtures and fittings

Motor vehicles

Computer equipment

Totals

£

£

£

£

£

COST

At 1 January 2018

278,834

245,657

21,857

33,625

579,973

Additions

2,240

930

-

6,401

9,571

At 31 December 2018

281,074

246,587

21,857

40,026

589,544

DEPRECIATION

At 1 January 2018

215,223

244,874

17,614

32,206

509,917

Charge for year

14,620

422

1,061

1,903

18,006

At 31 December 2018

229,843

245,296

18,675

34,109

527,923

NET BOOK VALUE

At 31 December 2018

51,231

1,291

3,182

5,917

61,621

At 31 December 2017

63,611

783

4,243

1,419

70,056

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Prepayments and accrued income

85,774

78,200

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

27,235

36,992

Social security and other taxes

5,822

6,298

Other creditors

1,560

379

Attachment of earnings

69

-

Accruals and deferred income

30,705

59,794

65,391

103,463

13.	MOVEMENT IN FUNDS

At 1.1.18

Net movement in funds

At 31.12.18

£

£

£

Unrestricted funds

General fund

422,483

96,382

518,865

Designated funds

115,532

-

115,532

538,015

96,382

634,397

TOTAL FUNDS

538,015

96,382

634,397

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

746,084

(649,702

)

96,382

TOTAL FUNDS

746,084

(649,702

)

96,382

Comparatives for movement in funds

At 1.1.17

Net movement in funds

At 31.12.17

£

£

£

Unrestricted Funds

General fund

413,713

8,770

422,483

Designated funds

100,000

-

100,000

J Healey Designated fund

-

15,532

15,532

513,713

24,302

538,015

TOTAL FUNDS

513,713

24,302

538,015

Comparative net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

732,461

(723,691

)

8,770

J Healey Designated fund

15,532

-

15,532

747,993

(723,691

)

24,302

TOTAL FUNDS

747,993

(723,691

)

24,302

A current year 12 months and prior year 12 months combined position is as follows:

At 1.1.17

Net movement in funds

At 31.12.18

£

£

£

Unrestricted funds

General fund

413,713

105,152

518,865

Designated funds

100,000

-

100,000

J Healey Designated fund

-

15,532

15,532

TOTAL FUNDS

513,713

120,684

634,397