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Registered number: SC252797
Charity number: SC011007
THE ADAM CENTRE
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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THE ADAM CENTRE
(A company limited by guarantee)
CONTENTS
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Reference and administrative details of the company, its Trustees and advisers
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Independent examiner's report
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Statement of financial activities
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Notes to the financial statements
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THE ADAM CENTRE
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 MARCH 2022
Company registered number
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Charity registered number
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Warrack Terrace
Montrose
Angus
DD10 8RX
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EQ Accountants LLP
Chartered Accountants
Westby
64 West High Street
Forfar
Angus
DD8 1BJ
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THE ADAM CENTRE
(A company limited by guarantee)
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The Trustees present their annual report together with the financial statements of the The Adam Centre for the 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
The principal objects of the charity are:
(a) to promote the welfare of and meet the needs of older people by the provision and maintenance of day facilities, having regard to and conforming with the policies and relevant service specifications laid down by Angus Council; and
(b) to meet the needs of older people who are frail and vulnerable, by providing the means to maintain self-confidence and self-esteem, thereby improving their condition of life while remaining in the community.
b. Activities undertaken to achieve objectives
We have had a mixed year; the global pandemic has affected our service throughout 2021/2022. Our staff have worked tirelessly throughout this time to provide ‘as normal’ a service as possible, under the Scottish Government COVID guidelines. It was only in June 2022 that Scottish Government gave the green light for us to return to full capacity, but as yet we have been unable to do so. The main reasons for this are thought to be: service user/family reluctance to return to Centre based activities post COVID, a new early dementia ‘club’ opening in Montrose and the current complexity of Angus Council’s day care referral system.
We are now working with Angus Council to address all the points above in order that we can hopefully ensure, where possible that all relevant adults requiring day care in Montrose and the surrounding area are given the opportunity to attend The Adam Centre at the right time for them and our resources, thus enabling us to meet the service user’s goals and our objectives.
Achievements and performance
a. Review of activities
Although we have had some staffing challenges in the latter part of this reporting period, we have overcome most. New staff are in place and training is up to date.
We took receipt of a new replacement minibus this year, which has allowed the safe continuation of our activities out-with the Centre. Activities within the Centre are now able to return in full, without compulsory mask wearing, which everyone is pleased about! Our new summerhouse, built after successful fundraising, has allowed variation of activities within the Centre compound.
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THE ADAM CENTRE
(A company limited by guarantee)
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence subject to the above. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies..
b. Reserves policy
The Reserves amounted to £1,023,241 which includes £789,007 of Fixed Assets. The balance of £234,234 is liquid reserves of which £75,000 is being set aside for replacement vehicles and £740 for restricted funds.
The Trustees consider the main area of risk is the continuation of funding from Angus Council.
Structure, governance and management
a. Constitution
The charity, which is a recognised charity in Scotland, is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 16/07/2003. The registered charity number is SC011007.
b. Methods of appointment or election of Trustees
The management of the charity is the responsibility of the Directors who are elected and co-opted under the terms of the Articles of Association.
Trustees are drawn from the local community and are generally known to existing trustees and have shown a particular interest in the charity or have skills/experience which would contribute to the running of the Centre.
c. Organisational structure and decision-making policies
The Adam Centre is under the supervision of the Trustees, none of whom are remunerated. The Adam Centre is registered with the Care Commission and as such, is liable to inspection. The relevant Report is available from the Care Commission.
Throughout this year the Trustees continued working to offer a varied program of entertainments/outings, as well as maintaining a high standard of daily personal care, meals and activities. Volunteers are occasionally used and are involved with the directors in fund-raising activities.
The Trustees meet regularly and the Manager reports to this meeting. A Budget is prepared annually and Actual income and expenditure is compared to budget. Decisions are made by a majority vote at the Trustees Meeting.
d. Financial risk management
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
The main financial risk is the continuation of the covid-19 restrictions as imposed by the Government.
The Trustees continue to monitor the situation closely at regular meetings and at present it would seem that re-opening could be a long way off.
The Trustees meet currently through a web based video conference platform called Zoom.
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THE ADAM CENTRE
(A company limited by guarantee)
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the company for the purposes 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 . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
∙select suitable accounting policies and then apply them consistently;
∙observe the methods and principles of the Charities SORP (FRS 102);
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
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THE ADAM CENTRE
(A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT
FOR THE YEAR ENDED 31 MARCH 2022
Independent examiner's report to the Trustees of The Adam Centre
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We report on the accounts of the company for the year ended 31 March 2022 which are set out on pages 6 to 21.
Respective responsibilities of Trustees and examiner
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The trustees, who are also directors of the company for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 ('the Act') and the Charities Accounts (Scotland) Regulation 2006 ('the Accounts Regulations'). The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is our responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to our attention.
Basis of independent examiner's statement
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Our examination was carried out in accordance with regulation 11 of the Accounts Regulations. An examination includes a review of the accounting records kept by the company and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently we do not express an audit opinion on the view given by the accounts.
Independent examiner's statement
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In the course of our examination, no matter has come to our attention:
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which gives us reasonable cause to believe that in any material respect the requirements:
∙to keep accounting records in accordance with section 44(1)(a) of the Act and regulation 4 of the Accounts Regulations; and
∙to prepare financial statements which accord with the accounting records, Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102) and in other respects comply with regulation 8 of the Accounts Regulations
have not been met; or
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to which, in our opinion, attention should be drawn in order to enable proper understanding of the financial statements to be reached.
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This report is made solely to the company's Trustees, as a body, in accordance with regulation 11 of the Charities Accounts (Scotland) Regulations 2006. Our work has been undertaken so that we might state to the company's Trustees those matters we are required to state to them in an Independent examiner's 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 company and the company's Trustees as a body, for our work or for this report.
Signed: Angela Haig Dated: 20 October 2022
Angela Haig CA ATA
EQ Accountants LLP
Chartered Accountants
Westby
64 West High Street
Forfar
Angus
DD8 1BJ
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THE ADAM CENTRE
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 MARCH 2022
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Total funds brought forward
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Total funds carried forward
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The Statement of financial activities includes all gains and losses recognised in the year.
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The notes on pages 9 to 21 form part of these financial statements.
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THE ADAM CENTRE
(A company limited by guarantee)
REGISTERED NUMBER: SC252797
BALANCE SHEET
AS AT 31 MARCH 2022
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Net assets excluding pension asset
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The company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on 19 October 2022 and signed on their behalf by:
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THE ADAM CENTRE
(A company limited by guarantee)
REGISTERED NUMBER: SC252797
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2022
The notes on pages 9 to 21 form part of these financial statements.
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The Adam Centre is a charitable company, limited by guarantee, incorporated in Scotland with the registration number SC252797. The charity is registered with OSCR charitable number SC011007. The registered office is Warrack Terrace, Montrose, Angus, DD10 8RX.
The financial statements are presented in Sterling, which is the functional currency of the company and rounded to the nearest £.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Adam Centre meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.
During the year the charity was in receipt of the following revenue grants in relation to COVID-19 pandemic:
Local Authority Angus Council - Care Workers and PPE
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Tangible fixed assets and depreciation
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Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
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Liabilities and provisions
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Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
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Income from donations and legacies
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Included within Government grants are revenue grants relating to the following Local Authority schemes
Refund for PPE - £999
Care workers bonus - £4,598
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Income from charitable activities
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Analysis of expenditure on charitable activities
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Analysis of expenditure by activities
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Activities undertaken directly
2022
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
7.Analysis of expenditure by activities (continued)
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Water rates and insurances
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Printing,stationary and postage
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Analysis of support costs
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Water rates and insurance
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Printing,stationary and postage
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Registration fees - Community transport
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Computer expenses - Restricted
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Independent examiners' fees
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Legal and professional fees
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
7.Analysis of expenditure by activities (continued)
Analysis of support costs (continued)
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Independent examiner's remuneration
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Fees payable to the company's independent examiner for the independent examination of the company's annual accounts
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Contribution to defined contribution pension schemes
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The average number of persons employed by the company during the year was as follows:
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No employee received remuneration amounting to more than £60,000 in either year.
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Trustees' remuneration and expenses
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During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
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During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
13.Creditors: Amounts falling due within one year (continued)
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Deferred income at 1 April 2021
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Resources deferred during the year
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Amounts released from previous periods
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Statement of funds - current year
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Balance at 1 April 2021
£
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Balance at 31 March 2022
£
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Restricted Funds - all funds
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The restricted funds consisted of a grant received to fund the purchase of Tablets for the services users.
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Statement of funds (continued)
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Statement of funds - prior year
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Balance at
1 April 2020
£
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Balance at
31 March 2021
£
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Summary of funds - current year
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Balance at 1 April 2021
£
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Balance at 31 March 2022
£
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Summary of funds (continued)
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Summary of funds - prior year
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Balance at
1 April 2020
£
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Balance at
31 March 2021
£
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Analysis of net assets between funds
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Analysis of net assets between funds - current year
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Creditors due within one year
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Analysis of net assets between funds - prior year
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Creditors due within one year
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THE ADAM CENTRE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £9,010 (2021 - £9,196). Contributions outstanding to the fund at the balance sheet date were £639 (2021 - £519) and are included in creditors.
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