SATELLITE_CONSORTIUM_LIMI - Accounts

The trustees present their report and financial statements for the year ended 31 December 2019.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in January 2015 (FRS 102 SORP).

The charity's objects are the provision of culturally sensitive home care services in Haringey and neighbouring boroughs. The company is a non profit making organisation and its activities are being managed by a management committee drawn from the local black and ethnic minorities and refugee organisations. The core activities are of home care services provision, staffed by workers drawn from the local community and there has been no change in these during the year.

Dependence on the service of unpaid volunteers

The charity does not deploy volunteers in respect of contracted services. However, the services of volunteers may be obtained in respect of non-contracted activities.

The charity ceased operations in 2018. The charity has closing reserves of £3,188 (2018: £38,617). These reserves can be utilised in the event of circumstances as detailed in the reserve policy.

Reserve Policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

• Satellite Consortium needs reserves to:

• Cover gaps between incurring expenditure and receiving the corresponding funds    

• Maintain services if funding is suddenly reduced or withdrawn until new funding can be found

• Avoid reliance on bank overdrafts, which may be recalled at any time

• Provide for unforeseen expenditure

• Pay redundancy costs if services are reduced

Principal funding sources and deployment of these funds

The principal source of income for the charity is contract from the London Borough of Haringey council. The majority of these funds is spent on staff who provide home care services to the local community.

Risks management

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The trustees have conducted a review of the major risks to which the charity is exposed and systems have been established to mitigate those risks. The trustees have developed a strategic plan to reduce the significant external risk to funding due to their reliance on one major customer. The trustees regularly review their internal control systems to ensure that all internal risks are minimised and ensure the consistent quality of delivery of all operational aspects of the charitable company.

Plans for the Future

The trustees are reviewing the activities of the charity and are considering options

Going Concern

The trustees' have assessed the appropriateness of use of going concern basis in preparing financial statements. The charity has ceased trading during the period, trustee's have considered going concern basis not to be appropriate therefore the financial statements have been prepared on a basis other than that of a going concern which includes, where appropriate, writing down the company’s assets to net realisable value.

Public Benefit Statement

The trustees of a charity have a duty to report in their Annual Report on their charity's public benefit. The sections above entitled "Objectives and activities" and "Achievements and performance" set out the objectives and financial performance for the year.

Our main activities are described above. All our charitable activities focus on the provision of home care services to the general public and are undertaken to further our charitable purpose for the public.

The charity is a company limited by guarantee incorporated in the UK and registered as a charity. The charitable company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed by its Articles of Association.

Trustees

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Recruitment, induction and training of trustees

The board of trustees appoints new trustees. The recruitment and selection of new trustees is based on their qualification and experience in the sector.

Indemnity insurance

The charity paid for the insurance premiums to indemnify trustees and senior staff from any loss arising from neglect or defaults of trustees or staff and any consequent loss.

Board of Trustees

The board of trustees reports to the Annual General meeting of the company. Currently there are six trustees who together with the registered manager meet at least four times per year to make decisions concerning the running of the company. The implementation of those decisions is delegated to the registered manager.

The board is responsible for safeguarding the assets of Satellite Consortium Ltd including taking all reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:

• It is operating efficiently and effectively

• Its assets are safeguarded against unauthorised use and disposition

• Proper records are maintained and financial information used internally or for publication is reliable

• It complies with relevant laws and regulations

Management Committee

The maximum number of committee members shall be determined by the company in the general meeting, but unless and until so fixed there shall be no maximum number. The minimum number of the committee members shall be three.

The trustees, who are also the directors of Satellite Consortium Limited for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' report was approved by the Board of Trustees.

I report to the trustees on my examination of the financial statements of Satellite Consortium Limited (the charity) for the year ended 31 December 2019.

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

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

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 that in any material respect:

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

the financial statements do not accord with those records; or

the financial statements 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

the financial statements 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 financial statements to be reached.

Georgiades Charalambou & Co LLP

Home care services

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2019.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Satellite Consortium Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 9 Clarendon Road, Hornsey, London, N8 0DJ.

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The financial statements have been prepared on a basis other than that of a going concern which includes, where appropriate, writing down the charity’s assets to net realisable value. Provision has also been made for any contractual commitments that have become onerous at the balance sheet date. The financial statements do not include any provision for the future costs of terminating the business of the charity except to the extent that such costs were committed at the balance sheet date.’

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Costs of generating funds comprise the direct costs associated with providing its home carers services.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Frequency of reporting

The financial statements are presented for a longer than one year due to changes in its trading conditions as described in note15. Therefore, comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Home care services

None of the trustees (or any persons connected with them) received any remuneration during the year.

The average monthly number of employees during the year was:

The charity's activities fall within the exemptions afforded by the provisions of the Income and Corporation Taxes Act 2006. Accordingly, there is no taxation charge in these accounts.

Purposes of unrestricted funds

The purpose of the unrestricted funds is for the furtherance of the objects of the charity.

There were no disclosable related party transactions during the year.

At the time of approving the financial statements, the trustees do not expect the charity to continue in operational existence for the foreseeable future. Thus the trustees do not continue to adopt the going concern basis of accounting in preparing the financial statements.