ACCOUNTS - Final Accounts preparation

Caseware UK (AP4) 2022.0.179 2022.0.179 Caseware UK (AP4) 2022.0.179 2022.0.179 2023-03-3114804200976148038085301480148025375402099008102023-03-312023-03-312022-04-01falseNo description of principal activity10 SC252797 2022-04-01 2023-03-31 SC252797 2021-04-01 2022-03-31 SC252797 2023-03-31 SC252797 2022-03-31 SC252797 2022-04-01 SC252797 2021-04-01 SC252797 c:CompanySecretary1 2022-04-01 2023-03-31 SC252797 c:RegisteredOffice 2022-04-01 2023-03-31 SC252797 d:Buildings 2022-04-01 2023-03-31 SC252797 d:Buildings 2023-03-31 SC252797 d:Buildings 2022-03-31 SC252797 d:MotorVehicles 2022-04-01 2023-03-31 SC252797 d:MotorVehicles 2023-03-31 SC252797 d:MotorVehicles 2022-03-31 SC252797 d:FurnitureFittings 2022-04-01 2023-03-31 SC252797 d:FurnitureFittings 2023-03-31 SC252797 d:FurnitureFittings 2022-03-31 SC252797 d:CurrentFinancialInstruments 2023-03-31 SC252797 d:CurrentFinancialInstruments 2022-03-31 SC252797 c:FRS102 2022-04-01 2023-03-31 SC252797 c:Audited 2022-04-01 2023-03-31 SC252797 c:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 SC252797 b:Trustee1 2022-04-01 2023-03-31 SC252797 b:Trustee2 2022-04-01 2023-03-31 SC252797 b:Trustee3 2022-04-01 2023-03-31 SC252797 b:Trustee4 2022-04-01 2023-03-31 SC252797 b:Trustee5 2022-04-01 2023-03-31 SC252797 b:Trustee6 2022-04-01 2023-03-31 SC252797 b:Trustee7 2022-04-01 2023-03-31 SC252797 b:UnrestrictedFundsGeneral 2022-04-01 2023-03-31 SC252797 b:UnrestrictedFundsGeneral 2021-04-01 2022-03-31 SC252797 b:RestrictedIncomeFunds 2022-04-01 2023-03-31 SC252797 b:UnrestrictedFundsGeneral 2023-03-31 SC252797 b:UnrestrictedFundsGeneral 2022-03-31 SC252797 b:RestrictedIncomeFunds 2023-03-31 SC252797 b:RestrictedIncomeFunds 2022-03-31 SC252797 1 2022-04-01 2023-03-31 SC252797 1 2021-04-01 2022-03-31 SC252797 b:UnrestrictedFundsGeneral 1 2022-04-01 2023-03-31 SC252797 b:Activity1 2022-04-01 2023-03-31 SC252797 b:Activity1 2021-04-01 2022-03-31 SC252797 b:Activity1 b:TotalUnrestrictedFunds 2022-04-01 2023-03-31 SC252797 b:TotalUnrestrictedFunds 2021-04-01 2022-03-31 SC252797 b:TotalUnrestrictedFunds 2023-03-31 SC252797 b:TotalUnrestrictedFunds 2022-03-31 SC252797 b:TotalRestrictedIncomeFunds 2023-03-31 SC252797 b:TotalRestrictedIncomeFunds 2022-03-31 SC252797 c:FullAccounts 2022-04-01 2023-03-31 iso4217:GBP xbrli:pure

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 2023

THE ADAM CENTRE

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the company, its Trustees and advisers	1
Trustees' report	2 - 5
Independent auditors' report on the financial statements	6 - 9
Statement of financial activities	10
Balance sheet	11
Statement of cash flows	12
Notes to the financial statements	13 - 26

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 2023

Trustees	Mrs A Reoch, Chair
	Rev G. Bruce (resigned 1 February 2023)
	Mr D May, Vice Chair
	Mr J Paton
	Mr A Moncur
	Mr R N McQuistan (appointed 11 May 2023)
	Ms J M Brown (appointed 1 June 2023)

Company registered number

SC252797

Charity registered number

SC011007

Registered office

Warrack Terrace

Montrose

Angus

DD10 8RX

Company secretary

Ms J M Brown

Independent auditors

EQ Audit Services LLP

Chartered Accountants

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH

Page 1

THE ADAM CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report together with the audited financial statements of the The Adam Centre for the 1 April 2022 to 31 March 2023. 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 the ability to have a full complement of service users since June 2022, but the number attending has remained lower than pre COVID-19. As stated last year, this is primarily because service users and/or their families are still uneasy at meeting in enclosed spaces. However, numbers continue to slowly improve. The new day facility for adults with early dementia in Montrose continues to have an impact on the number of service users with early dementia being referred to us.

As a Board we have worked together to address these challenges: we are improving our marketing to both potential service users and referrers (local authority and private). A marketing plan is being developed and a new website created: this will be live in the next financial year, and associated marketing materials are being developed.
All staff mandatory training is kept up to date, but we have plans to introduce extra dementia training to ensure we are equipped with the increased challenges this brings.
We have had a difficult year with long term sick leave, which required us to review both our administrative and IT structure.
This year staff have been involved in facilitated team improvement events, with these being planned to continue biannually, providing time for members of staff to be part of any new developments within the Centre.

Page 2

THE ADAM CENTRE

(A company limited by guarantee)

Achievements and performance

a. Review of activities

Through our new website it is hoped that the people of Montrose, and the surrounding area, will become better informed about what is on offer at The Adam Centre and clearly understand how to access our services.
We now have a more effective administrative and IT systems in place. Several further developments have already been identified and implemented through the staff improvement events.

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 £1,269,510 which includes £808,383 of Fixed Assets. The balance of £461,127 is liquid reserves of which £75,000 is being set aside for replacement vehicles and £8,485 for the social fund.
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.

Page 3

THE ADAM CENTRE

(A company limited by guarantee)

Structure, governance and management (continued)

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.

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.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

∙so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and

∙that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

Auditors

The auditors, EQ Audit Services LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Page 4

THE ADAM CENTRE

(A company limited by guarantee)

Mrs A Reoch Chair
Date: 4 October 2023

Page 5

THE ADAM CENTRE

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ADAM CENTRE

Opinion

We have audited the financial statements of The Adam Centre (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 6

THE ADAM CENTRE

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ADAM CENTRE (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

∙the Trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

∙adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of Trustees' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit; or

∙the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.

The financial statements of the Charity for the year ended 31 March 2022 were not audited.

Page 7

THE ADAM CENTRE

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ADAM CENTRE (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates, and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities and Trustee Investment (Scotland) Act 2005, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 8

THE ADAM CENTRE

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ADAM CENTRE (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, its members, as a body, and its trustees, as a body for our audit work, for this report, or for the opinions we have formed.

Greg Stapley (Senior statutory auditor)

for and on behalf of

EQ Audit Services LLP

Chartered Accountants

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH

4 October 2023

EQ Audit Services LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 9

THE ADAM CENTRE

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2023

	Unrestricted funds 2023	Restricted funds 2023	Total funds 2023	As restated Total funds 2022
Note	£	£	£	£

Income from:
Donations and legacies	3	503,162	-	503,162	276,397
Charitable activities	4	10,105	-	10,105	9,240
Investments	5	994	-	994	1,295
Total income		514,261	-	514,261	286,932

Expenditure on:
Charitable activities	6	294,995	-	294,995	259,929
Total expenditure		294,995	-	294,995	259,929

Net movement in funds

219,266

27,003

Reconciliation of funds:
Total funds brought forward	1,049,504	740	1,050,244	1,023,241
Net movement in funds	219,266	-	219,266	27,003
Total funds carried forward	1,268,770	740	1,269,510	1,050,244

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

The notes on pages 13 to 26 form part of these financial statements.

Page 10

THE ADAM CENTRE

(A company limited by guarantee)

REGISTERED NUMBER: SC252797

BALANCE SHEET

AS AT 31 MARCH 2023

		As restated
	2023	2022
Note	£	£

Fixed assets
Tangible assets	11		808,383		826,665
			808,383		826,665
Current assets
Debtors	12	2,888		2,179
Cash at bank and in hand		471,253		246,380
		474,141		248,559
Creditors: amounts falling due within one year	13	(13,014)		(24,980)
Net current assets			461,127		223,579
Total assets less current liabilities			1,269,510		1,050,244
Total net assets			1,269,510		1,050,244

Charity funds
Restricted funds	14	740	740
Unrestricted funds	14	1,268,770	1,049,504
Total funds		1,269,510	1,050,244

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 and signed on their behalf by:

Mrs A Reoch Chair
Date: 4 October 2023
The notes on pages 13 to 26 form part of these financial statements.

Page 11

THE ADAM CENTRE

(A company limited by guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

				2023	2022
				£	£

Cash flows from operating activities
Net cash used in operating activities	220,622	37,169
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets	7,250	-
Purchase of tangible fixed assets	(2,999)	(60,943)
Net cash provided by/(used in) investing activities	4,251	(60,943)

Cash flows from financing activities
Net cash provided by financing activities	-	-

Change in cash and cash equivalents in the year	224,873	(23,774)
Cash and cash equivalents at the beginning of the year	246,380	270,154
Cash and cash equivalents at the end of the year	471,253	246,380

The notes on pages 13 to 26 form part of these financial statements

Page 12

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1.	General information

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

2.1

Basis of preparation of financial statements

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.

2.2

Income

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.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the company, can be reliably measured.

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.

Page 13

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


	2.3	Expenditure

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.

2.4

Government grants

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.

2.5

Tangible fixed assets and depreciation

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 bases:

Property	-	Not depreciated
Motor vehicles	-	25%
Fixtures and fittings	-	25%

Depreciation has not been charged on the property, as the residual value of the asset is not materially different from the carrying amount. The property is maintained to a high standard and is unlikely to decrease in value from the original cost.
The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

2.6

Debtors

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.

Page 14

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.7

Cash at bank and in hand

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.

2.8

Liabilities and provisions

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

2.9

Financial instruments

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.

2.10

Pensions

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.

2.11

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the 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.

Page 15

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

3.	Income from donations and legacies

		Unrestricted funds 2023	Total funds 2023	As restated Total funds 2022
		£	£	£


Donations	17,747	17,747	38,643
Legacies	245,000	245,000	-
Grants	237,294	237,294	232,157
Government grants	-	-	5,597
Other incoming resources	3,121	3,121	-
	503,162	503,162	276,397
Total 2022 as restated	276,397	276,397

4.	Income from charitable activities

		Unrestricted funds 2023	Total funds 2023	Total funds 2022
		£	£	£


Self directive fees	10,105	10,105	9,240
Total 2022	9,240	9,240

5.	Investment income

		Unrestricted funds 2023	Total funds 2023	Total funds 2022
		£	£	£


Bank interest	994	994	1,295
Total 2022	1,295	1,295

Page 16

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

6.	Analysis of expenditure on charitable activities
	Summary by fund type

		Unrestricted funds 2023	Total 2023	Total 2022
		£	£	£


Day care centre	294,995	294,995	259,929
Total 2022	259,929	259,929

7.	Analysis of expenditure by activities

		Activities undertaken directly 2023	Support costs 2023	Total funds 2023	Total funds 2022
		£	£	£	£


Day care centre	229,057	65,938	294,995	259,929
Total 2022	206,032	53,897	259,929

Page 17

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

7.Analysis of expenditure by activities (continued)

Analysis of direct costs


		Total funds 2023	As restated Total funds 2022
		£	£


Provisions and lunches	7,276	6,428
Rent and rates	1,659	932
Insurance	1,654	1,443
Heat and light	4,577	1,018
Telephone	1,612	1,314
Cleaning	6,468	9,220
Printing,stationary and postage	1,158	517
Repairs and maintenance	3,855	5,766
Motor expenses	5,874	6,358
Registration fees	1,913	1,881
Computer expenses	3,573	762
Staff costs	163,708	146,107
Staff training	747	272
Sundry expenses	2,278	499
Social fund costs	5,203	-
Bank charges	314	230
Depreciation	17,188	23,285
	229,057	206,032

Analysis of support costs

Page 18

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

7.Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

		Total funds 2023	Total funds 2022
		£	£


Staff costs	46,735	44,962
Rent and rates	585	419
Heat and light	808	247
Cleaning	1,141	1,828
Printing,stationary and postage	924	611
Registration fees	131	120
Audit and accountancy fees	12,414	2,250
Legal and professional fees	6,357	3,460
Profit on sale of fixed assets	(3,157)	-
	65,938	53,897

8.	Auditors' remuneration
		2023	2022
		£	£

Fees payable to the company's auditor for the audit of the company's annual accounts	9,600	-
Fees payable to the company's auditor in respect of:
All non-audit services not included above	2,814	2,250

9.	Staff costs
		2023	2022
		£	£


Wages and salaries	191,680	174,341
Social security costs	8,103	7,718
Contribution to defined contribution pension schemes	10,660	9,010
	210,443	191,069

Page 19

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

9.Staff costs (continued)

The average number of persons employed by the company during the year was as follows:
	2023	2022
	No.	No.


		10	10

No employee received remuneration amounting to more than £60,000 in either year.

10.	Trustees' remuneration and expenses
	During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL).

11.	Tangible fixed assets

	Property	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 April 2022	756,819	128,840	72,378	958,037
Additions	-	-	2,999	2,999
Disposals	-	(41,000)	-	(41,000)
At 31 March 2023	756,819	87,840	75,377	920,036
Depreciation
At 1 April 2022	-	74,328	57,044	131,372
Charge for the year	-	12,605	4,583	17,188
On disposals	-	(36,907)	-	(36,907)
At 31 March 2023	-	50,026	61,627	111,653
Net book value
At 31 March 2023	756,819	37,814	13,750	808,383
At 31 March 2022	756,819	54,512	15,334	826,665

Page 20

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

12.	Debtors
			As restated
		2023	2022
		£	£


Due within one year
Other debtors	1,368	870
Prepayments and accrued income	1,520	1,309
	2,888	2,179

13.	Creditors: Amounts falling due within one year
			As restated
		2023	2022
		£	£


Other taxation and social security	-	3,281
Other creditors	3,414	3,528
Accruals and deferred income	9,600	18,171
	13,014	24,980

			As restated
		2023	2022
		£	£


Deferred income at 1 April 2022	18,171	33,803
Resources deferred during the year	-	18,171
Amounts released from previous periods	(18,171)	(33,803)
	-	18,171

Page 21

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

14.

Statement of funds

Statement of funds - current year
	Restated Balance at 1 April 2022 £	Income £	Expenditure £	Balance at 31 March 2023 £
Unrestricted funds

Designated funds
Minibus fund	75,000	-	-	75,000
Social fund	-	13,688	(5,203)	8,485
	75,000	13,688	(5,203)	83,485

General funds
General Funds	974,504	500,573	(289,792)	1,185,285
Total Unrestricted funds	1,049,504	514,261	(294,995)	1,268,770

	Restricted funds
	Restricted Funds - all funds	740	-	-	740

The restricted funds consist of a grant received to fund the purchase of Tablets for the services users.

Total of funds

1,050,244

514,261

(294,995)

1,269,510

Page 22

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

14.

Statement of funds (continued)

Statement of funds - prior year
	Balance at 1 April 2021 £	As restated Income £	As restated Expenditure £	Restated Balance at 31 March 2022 £
Unrestricted funds

	Designated funds
	Minibus fund	75,000	-	-	75,000

General funds
General Funds	947,501	286,932	(259,929)	974,504
Total Unrestricted funds	1,022,501	286,932	(259,929)	1,049,504

	Restricted funds
	Restricted Funds - all funds	740	-	-	740

Total of funds

1,023,241

286,932

(259,929)

1,050,244

15.

Summary of funds

		Summary of funds - current year
			Restated Balance at 1 April 2022 £	Income £	Expenditure £	Balance at 31 March 2023 £

Designated funds	75,000	13,688	(5,203)	83,485
General funds	974,504	500,573	(289,792)	1,185,285
Restricted funds	740	-	-	740
	1,050,244	514,261	(294,995)	1,269,510

Page 23

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

15.

Summary of funds (continued)

		Summary of funds - prior year
			Balance at 1 April 2021 £	As restated Income £	As restated Expenditure £	Balance at 31 March 2022 £

Designated funds	75,000	-	-	75,000
General funds	947,501	286,932	(259,929)	974,504
Restricted funds	740	-	-	740
	1,023,241	286,932	(259,929)	1,050,244

16.

Analysis of net assets between funds

Analysis of net assets between funds - current year
	Unrestricted funds 2023	Restricted funds 2023	Total funds 2023
	£	£	£

Tangible fixed assets	808,383	-	808,383
Current assets	473,401	740	474,141
Creditors due within one year	(13,014)	-	(13,014)
Total	1,268,770	740	1,269,510

Analysis of net assets between funds - prior year
	Unrestricted funds Restated 2022	Restricted funds Restated 2022	Total funds Restated 2022
	£	£	£

Tangible fixed assets	826,665	-	826,665
Current assets	247,819	740	248,559
Creditors due within one year	(24,980)	-	(24,980)
Total	1,049,504	740	1,050,244

Page 24

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

17.	Reconciliation of net movement in funds to net cash flow from operating activities
		2023	Restated 2022
		£	£

Net income for the year (as per Statement of Financial Activities)	219,266	27,003
Adjustments for:
Depreciation charges	17,188	23,285
Loss/(profit) on the sale of fixed assets	(3,157)	-
Decrease/(increase) in debtors	(709)	2,540
Decrease in creditors	(11,966)	(15,659)
Net cash provided by operating activities	220,622	37,169

18.	Analysis of cash and cash equivalents
		2023	2022
		£	£

	Cash in hand	471,253	246,380
	Total cash and cash equivalents	471,253	246,380

19.	Analysis of changes in net debt

		At 1 April 2022	Cash flows	At 31 March 2023
		£	£	£

	Cash at bank and in hand	246,380	224,873	471,253
		246,380	224,873	471,253

Page 25

THE ADAM CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

20.	Contingent assets

The charity has been advised by the representatives of an estate to expect receipt of a legacy amounting to at least £250,000. By the year end, £200,000 had been received in interim payments, which has been recognised in the Statement of Financial Activities as legacy income. The remaining amount to be received cannot yet be quantified accurately and so the trustees believe this remains a contingent asset of the charity.
The charity has also been advised to expect a receipt of another legacy amounting to at least £50,000. By the year end £45,000 had been received in interim payments, which has been recognised in the Statement of Financial Activities as legacy income. A further amount of £10,000 was received in August 2023, and further amounts are due to be received but cannot yet be quantified accurately and so the trustees believe this remains a contingent asset of the charity.

21.	Pension commitments

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 £10,660 (2022 - £9,010). Contributions outstanding to the fund at the balance sheet date were £258 (2022 - £639) and are included in creditors.

22.	Prior year adjustments

A misstatement in the prior period has been identified affecting the income from donations and legacies and the accrued and deferred income balances. The comparative figures have been amended to correct this, resulting in a increase in the surplus and unrestricted reserves for the year of £17,464.

Page 26