INDEPENDENT LIVING ALTERNATIVES - Charities report - 18.1

REGISTERED COMPANY NUMBER: 02390067 (England and Wales)

REGISTERED CHARITY NUMBER: 802198

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018

FOR

INDEPENDENT LIVING ALTERNATIVES

INDEPENDENT LIVING ALTERNATIVES

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

Page

Report of the Trustees

1 to 3

Report of the Independent Auditors

4 to 5

Statement of Financial Activities

6

Balance Sheet

7

Cash Flow Statement

8

Notes to the Cash Flow Statement

9

Notes to the Financial Statements

10 to 14

INDEPENDENT LIVING ALTERNATIVES

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2018

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with

the financial statements of the charity for the year ended 31 March 2018. The trustees have adopted the provisions of

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their

accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)

(effective 1 January 2015).

STRATEGIC REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 30th May 1989 and registered as a

charity on 7th November 1989. The company was established under a Memorandum of Association which established

the objects and powers of the charitable company and is governed under its Article of Association. In event of the

company being wound up members are required to contribute an amount not exceeding £1.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02390067 (England and Wales)

Registered Charity number

802198

Registered office

Rowlandson House

289/293 Ballards House

London

N12 8NP

Trustees

A S Oates

S B Walls

Ms K L Araniello

G Pepper

Miss D D Cowley

- resigned 1.9.17

Ms M Daley

Miss S Elsegood

Ms E Linsey

Senior Statutory Auditor

David Segall

Auditors

Macalvins Limited

Chartered Accountants

and Statutory Auditors

7 St John's Road

Harrow

Middlesex

HA1 2EY

Bankers

Unity Trust Bank Plc

Nine Brindley Place

4 Oozells Square

Birmingham

B1 2HB

OBJECTIVES AND ACTIVITIES

PRINCIPAL ACTIVITIES

Independent Living Alternatives (ILA) is a self-financed social enterprise using grant funding to develop and support

new initiatives and is financed by the fees charged for service provision. These fees are met primarily by social services

as a Direct Payment under the Community Care Act and through Continuing Care NHS Personal Health Budgets.

The principal activities of the Company, throughout the year were as follows

DAY-TO-DAY OPERATIONS

Disabled people who have personal experience of independent living manage ILA. Trustees are appointed by members

of the organisation every year at the annual general meeting in accordance with ILA's constitution. The Trustees of ILA

are appointed on their knowledge and experience in the field of independent living. All Trustees undertake appropriate

training relevant to their position on the board.

The governance of the organisation is undertaken by ILA's Management Committee, which meets every eight weeks.

Day-to-Day management of the organisation is undertaken by a full-time Director. ILA also employs a full-time PA

Co-ordinator and a part-time Administrator.

Volunteers work to the aims of the organisation by providing personal assistance to disabled people. Volunteers do not

fund-raise for ILA.

RISK ASSESSMENTS

Independent Living Alternatives has considered the risks associated with its operations and the management committee

has resolved to work towards developing reserves.

ILA has regular monthly commitments for property rental payments, employee salaries and volunteer expenses that

cannot be missed. This leaves ILA as a small organisation vulnerable to bad debtors and late payments. ILA's main

income is from local authority social services deportment's, Primary Care Trusts and from individuals in receipt of direct

payments. ILA also receives income from organisations spot purchasing personal assistance.

Furthermore, as a small organisation with three main employees, ILA is vulnerable to long term sick commitments and

the cost of agency fill-in for that period.

FINANCIAL REVIEW

The organisation ensures full cost recovery from each placement and has a fee structure reflective of the costs of service

and fundamental for the organisation is to survive.

RESERVES POLICY

ILA aims for the equivalent of six months' administration salaries to be held in reserve.

OVERALL FINANCIAL POSITION

The Management Committee consider that the current financial position is satisfactory and that sufficient funds are

available to meet the legal and financial obligations of the organisation.

FUTURE POSITION OF THE ORGANISATION

The Management Committee has no plans for the foreseeable future to make any substantial changes to the charities

objectives and it is the intention of the Committee to continue operating as in previous years.

THE ROLE OF INDEPENDENT LIVING ALTERNATIVES

- Independent Living Alternatives (ILA) is a user controlled organisation promoting the right of disabled people to live

independently primarily in the London area.

- ILA provides a comprehensive range of personal assistance services; personal assistance is the term used to define the

care necessary for disabled people to live independently.

- ILA aims to enable people who need personal assistance, to be able to live independently in the community and take

full control of their lives and thereby have individuality and spontaneity

- ILA provides personal assistance either by providing personal assistance or by enabling individuals to employ their

own personal assistants

- ILA also provides Personal Assistants in the work place, to people visiting London on holiday and for conferences and

events across London.

ILA provides an online training resource aimed at both disabled people and workers: Personal Assistance Training From

Carer to Personal Assistant. The training explores the skills required for personal assistance and the key differences

between traditional models of care and personal assistance.

Personal Assistance Café is an online resource for Personal Assistance Users and Personal Assistants to explore issues

of common interest to independent living. It is a space to ask questions and to share common experience with other PA

Users or to seek different approaches to the issues that are faced by all PA Users.

ILA works with 39 PA Users on a regular basis and has over 200 disabled people registered with the organisation. There

are 8 residential volunteers working for the organisation and over 82 people registered to work as personal Assistants.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of INDEPENDENT LIVING ALTERNATIVES for the purposes of company

law) are responsible for preparing the Report of the Trustees 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 charitable company and of the incoming resources and application of resources, including

the income and expenditure, of the charitable company for that period. In preparing those financial statements, the

trustees are required to

-

select suitable accounting policies and then apply them consistently;

-

observe the methods and principles in the Charity SORP;

-

make judgements and estimates that are reasonable and prudent;

-

state whether applicable accounting standards 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 charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time

the financial position of the charitable company and to enable them to ensure that the financial statements comply with

the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for

taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-

there is no relevant audit information of which the charitable company's auditors are unaware; and

-

the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Macalvins Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 16 November 2018 and signed on the board's behalf by:

Ms K L Araniello - Trustee

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

INDEPENDENT LIVING ALTERNATIVES

Opinion

We have audited the financial statements of INDEPENDENT LIVING ALTERNATIVES (the 'charitable company') for the year ended 31 March 2018 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (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 2018 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.

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 UK, including the FRC'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the

annual report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. 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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the 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 Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-

adequate 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.

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, 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.

Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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.

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 Report of the

Independent Auditors.

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. Our audit work has been undertaken so that we might state to the charitable company's

members 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 and the

charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Segall (Senior Statutory Auditor)

for and on behalf of Macalvins Limited

Chartered Accountants

and Statutory Auditors

7 St John's Road

Harrow

Middlesex

HA1 2EY

16 November 2018

INDEPENDENT LIVING ALTERNATIVES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2018

31.3.18

31.3.17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

1,128,148

-

1,128,148

1,268,009

Investment income

3

95

-

95

63

Total

1,128,243

-

1,128,243

1,268,072

EXPENDITURE ON

Raising funds

4

1,128,917

-

1,128,917

1,248,657

NET INCOME/(EXPENDITURE)

(674

)

-

(674

)

19,415

RECONCILIATION OF FUNDS

Total funds brought forward

184,067

-

184,067

164,652

TOTAL FUNDS CARRIED FORWARD

183,393

-

183,393

184,067

INDEPENDENT LIVING ALTERNATIVES

BALANCE SHEET

AT 31 MARCH 2018

31.3.18

31.3.17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

10

433

-

433

542

CURRENT ASSETS

Debtors

11

99,873

-

99,873

100,447

Cash at bank and in hand

105,844

-

105,844

117,049

205,717

-

205,717

217,496

CREDITORS

Amounts falling due within one year

12

(22,757

)

-

(22,757

)

(33,971

)

NET CURRENT ASSETS

182,960

-

182,960

183,525

TOTAL ASSETS LESS CURRENT LIABILITIES

183,393

-

183,393

184,067

NET ASSETS

183,393

-

183,393

184,067

FUNDS

13

Unrestricted funds

183,393

184,067

TOTAL FUNDS

183,393

184,067

The financial statements were approved by the Board of Trustees on 16 November 2018 and were signed on its behalf by:

Ms K L Araniello -Trustee

INDEPENDENT LIVING ALTERNATIVES

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2018

31.3.18

31.3.17

Notes

£

£

Cash flows from operating activities:

Cash generated from operations

1

(11,300

)

37,851

Net cash provided by (used in) operating activities

(11,300

)

37,851

Cash flows from investing activities:

Interest received

95

63

Net cash provided by (used in) investing activities

95

63

Change in cash and cash equivalents in the reporting period

(11,205

)

37,914

Cash and cash equivalents at the beginning of the reporting period

117,049

79,135

Cash and cash equivalents at the end of the reporting period

105,844

117,049

INDEPENDENT LIVING ALTERNATIVES

NOTES TO THE CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2018

1.	RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.3.18

31.3.17

£

£

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

(674

)

19,415

Adjustments for:

Depreciation charges

109

135

Interest received

(95

)

(63

)

Decrease in debtors

574

50,751

Decrease in creditors

(11,214

)

(32,387

)

Net cash provided by (used in) operating activities

(11,300

)

37,851

INDEPENDENT LIVING ALTERNATIVES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

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

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

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

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

Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost

convention.

The presentation currency of the financial statements is the Pound Sterling (£) rounded to the nearest £.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it

is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the

charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and

the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Tangible fixed assets

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

life.

Plant and machinery

- 20% reducing balance

Computer equipment

- 20% reducing balance

Taxation

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

Fund accounting

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

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

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

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

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable

company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	DONATIONS AND LEGACIES

31.3.18

31.3.17

£

£

Fees

1,128,148

1,268,009

3.	INVESTMENT INCOME

31.3.18

31.3.17

£

£

Deposit account interest

95

63

4.	RAISING FUNDS

Raising donations and legacies

31.3.18

31.3.17

£

£

Staff costs

924,697

1,043,157

Rates and water

14,947

18,076

Insurance

4,925

4,797

Telephone

3,578

1,553

Postage and stationery

1,593

2,880

Sundries

-

27

Staff training

13,978

14,131

Advertising

8,274

5,484

Staff travelling

1,205

1,121

Literature and promotions

285

300

Professional fees

6,794

5,404

Volunteer exp

131,209

135,118

Bank charges

416

365

Depreciation

109

135

Support costs

16,907

16,109

1,128,917

1,248,657

5.	SUPPORT COSTS

Governance costs

£

Raising donations and legacies

16,907

6.	NET INCOME/(EXPENDITURE)

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

31.3.18

31.3.17

£

£

Auditors' remuneration

8,400

6,600

Depreciation - owned assets

109

135

7.	TRUSTEES' REMUNERATION AND BENEFITS

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

31 March 2017.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2018 nor for the year ended 31 March 2017.

8.	STAFF COSTS

31.3.18

31.3.17

£

£

Wages and salaries

859,584

965,147

Social security costs

59,444

73,258

Other pension costs

5,669

4,752

924,697

1,043,157

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

31.3.18

31.3.17

Administration

3

3

Personal assistants

141

143

144

146

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

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted fund

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,268,009

-

1,268,009

Investment income

63

-

63

Total

1,268,072

-

1,268,072

EXPENDITURE ON

Raising funds

1,248,657

-

1,248,657

Total

1,248,657

-

1,248,657

NET INCOME/(EXPENDITURE)

19,415

-

19,415

RECONCILIATION OF FUNDS

Total funds brought forward

164,652

-

164,652

TOTAL FUNDS CARRIED FORWARD

184,067

-

184,067

10.	TANGIBLE FIXED ASSETS

Plant and machinery

Computer equipment

Totals

£

£

£

COST

At 1 April 2017 and 31 March 2018

9,336

8,495

17,831

DEPRECIATION

At 1 April 2017

9,188

8,101

17,289

Charge for year

30

79

109

At 31 March 2018

9,218

8,180

17,398

NET BOOK VALUE

At 31 March 2018

118

315

433

At 31 March 2017

148

394

542

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Trade debtors

94,671

96,532

Prepayments

5,202

3,915

99,873

100,447

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Social security and other taxes

14,656

17,683

Other creditors

-

9,688

Pension payable

601

-

Accrued expenses

7,500

6,600

22,757

33,971