Sunderland Care and Support Ltd (SCAS) was formed on the 1 of December 2013, as a Local Authority Trading Company (LATC) which is 100% owned by Sunderland City Council.
As we enter our tenth full financial year, notwithstanding the major reduction in Adult Social Care funding, Ukraine war, cost of living crisis and the rise in demand for services, SCAS continues to develop corporately as an organisation, to remain financially viable and to continue to deliver high quality services to some of the most vulnerable people in society.
Despite the adverse financial situation within Social Care generally, it is pleasing that customers and their families continue to recognise the exceptional services delivered by the Company. There are seven Care Quality Commission (CQC) registered services. There is also one Ofsted registered service at Grace House which requires improvement, this service will cease at the end of November 2023 as Grace House charity who owned the building have agreed with another social care provider to rent the space used for overnight short breaks at a commercial rate. The current ratings are as follows:
Service | Regulated Body | Ratings |
Farmborough Court | CQC | Good |
Villette Lodge | CQC | Good |
Grindon Mews Short Break | CQC | Good |
Grindon Lane Short Break | CQC | Good |
Community Support Services | CQC | Good |
Shared Lives | CQC | Good |
Supported Living Service | CQC | Good |
Grace House Short Break | Ofsted | Requires Improvement |
The Company is proud that it directly employs the large majority of its workforce and has continued to invest in training throughout difficult economic times and the pandemic. Having a loyal, dedicated and skilled workforce continues to pay dividends in a sector where labour shortages and cost pressures are impacting operators of all sizes.
The Company is also proud of its apprenticeship scheme in which we offer 23 apprentice placements. This continuous investment in apprenticeships will ensure that we have a steady stream of qualified employees who are able to supplement our existing workforce, both now and in the future.
Directors would once again like to thank all of our employees for their hard work and contribution to the Company’s operation throughout this financial year and to reinforce that SCAS purely exists to support people to achieve their best quality of life and our aim going forward is to be providing care and support that transforms people’s lives.
The continuation of the reduction in Government funding of public sector services, particularly in Adult Social Care, and the increased demand for services during this financial period has been challenging. The Company is reliant on Sunderland City Council and North East and North Cumbria Integrated Care Board (ICB) for the majority of its income.
As a company we continue to provide good quality care to our customers and through our work with commissioners have demonstrated an ability to be an ethical and innovative partner who has been able to use its capabilities to create sustainable system savings and service improvement.
This continued pressure on funding will be managed through maintaining strong relationships with commissioners and seeking to diversify income streams through investment in growth areas.
The directors are pleased with the performance of the Company during this period and believe that the Company and the group is in a strong position to continue to expand and have the confidence in the Company’s ability to provide quality and good value services.
The quality of our services has been confirmed not just by regulators such as the Care Quality Commission (CQC) and Commissioners but also by consistently high feedback from the people and their families who have used our services.
Our aims for the forthcoming year are to continue to play a key role in the delivery of integrated health and social care across the City of Sunderland via the Company’s involvement with the Recovery at Home Service, review of Bed Based Services in Farmborough Court and Community Equipment Service within the Integrated Care at a Place level in Sunderland. The overarching aim is to provide better, more efficient, community-based, GP-led care using new ways of working, new technologies and improved planning to keep people as well as possible and out of hospital.
Everything the Company does is driven by the need to benefit the customers we serve, and we also strive to listen to the needs of people in those communities that we operate within. The quality of the services we provide are directly related to the skills, experience, passion and commitment of our workforce. To ensure the on-going success and sustainability of SCAS we will continue to restructure our operations, invest in our workforce to ensure our employees feel valued and implement clear strategies to ensure our services and workforce are excellent in service delivery and that our services are lean, well led, effective and efficient.
Our strength comes from the incredible team we have at SCAS and we look forward to the year ahead with enthusiasm, knowing that with the drive and determination we possess in the company we can continue to deliver the highest quality services for customers and meet the many challenging targets that face us.
The risks that the Company faces in the next financial period are to ensure that we can remain sustainable within our existing contracts, and to ensure that any new ventures are to the benefit of both the Company and the customer.
The Social Care marketplace is extremely challenging with reviews of service users and the rates paid generally resulting in reduction of income. If this trend continues it could impact on our ability to attract and retain good employees.
Market risk
The major risk to the business is the reduction in Government funding of Social Care. The financial position of Sunderland City Council and North East and North Cumbria Integrated Care Board (ICB) will mean that as a company we will have to find new ways to become more efficient and effective. Another key risk is that the Company unit costs are too high to win contracts or new business when compared to other providers. SCAS mitigates these risks by continually monitoring market prices, driving down costs, exploring new ways to sell and expand services, introducing new unit costs for all services and providing a first-class service to customers.
Operational risk
SCAS continuously monitors the range, efficiency and availability of its services and any fluctuating customer or commissioner requirements to ensure that it can meet those demands and business opportunities as and when they arise.
There are performance, monitoring and governance arrangements in place to ensure high standards in supplies, buildings, equipment and fleet. SCAS continues to invest in Workforce Training and Development.
Interest rate risk
The Company does not have any external borrowings and as such interest risk is not considered to be significant.
Liquidity risk
Working capital is managed carefully, with cash forecasts produced to provide daily as well as medium to long term projections. This ensures sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Financial risk
Financial risks are managed through internal management controls, financial planning, timely and accurate management information and by careful monitoring of all budget costs and income. Stock and debtor controls are also vigorously monitored. Issues identified are acted upon and mitigating actions put in place as appropriate. An internal audit plan and checks are in place and regularly reviewed and any recommendations from audits are implemented across the company.
Infrastructure risk
Resilience of the Company’s infrastructure is also a key in a workplace which has an ever-increasing focus on technology as a fundamental part of its operations. Extensive training, investment and testing is undertaken to ensure the infrastructure is robust with disaster recovery in place, has appropriate levels of cyber security and data is protected.
SCAS measures a range of key performance indicators (KPI's) which cover activity levels, employee absenteeism, referrals, quality measures against core standards and outcomes of care provided to clients. A number of these KPI's are also monitored as part of the main service contract with Sunderland City Council.
Key Objectives - April 2023 to March 2024
Objective | How | When | Who |
Business Development & Growth | Pursue growth and new activity. Identify potential partners and nurture rich and productive relationships to deliver high quality services | Respond effectively and consistently to tender opportunities as they arise | Senior Management Team |
SCAS greater development within Integrated Care at a Place level in Sunderland
| SCAS to consider opportunities and risks of its services becoming part of a new out of hospital / place model | On going | COO |
Marketing Strategy | Develop a marketing strategy (with updated website) to promote Day Services and Short Breaks Services to increase income opportunities from potential customers
Develop capacity to deliver planned care at volume Assistive Technology, Telecare and Community Equipment with growth and capacity | January 2024 | Executive Management Team |
Business Plan | Annual review of annual business plan | September 2023 | Board and Executive Management Team |
Objective | How | When | Who |
Value for Money and Efficiency | Ensure sustainability of financial position
Introduce new unit costs for all services
Continue to evidence value for money of services provided
Adopt best practice in procurement throughout Sunderland Care and Support Ltd
Monitor delivery of all efficiency targets in line with the Business Plan | September 2023 | Board and Executive Management Team |
Skilled & Engaged Workforce | Ensure Company has low levels of staff vacancies
Ensure Sunderland Care and Support Ltd commitment to Mandatory and Statutory Training
Reduce number of days lost due to illness down to 12 days on average per employee | March 2024 | Executive Management Team |
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2023.
The loss for the year, after taxation, amounted to £1,743,854 (2022 - loss £2,228,822)
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Please refer to the S172 statement in the Strategic Report within the Sunderland Care and Support (Holding Company) Ltd financial statements for commentary on the group’s engagement with stakeholders.
There have been no significant events affecting the Company since the year end that are not adequately disclosed in the financial statements.
Future developments are set out in the Strategic Report.
In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.
Unit 2022/2023 2021/2022
Scope 2 emissions (indirect) tonnes CO2e 549.04 736.81
Scope 3 emissions (other indirect) tonnes CO2e 84.88 85.47
Total Greenhouse Gas emissions tonnes CO2e 633.92 888.28
Greenhouse gas emissions per employee tonnes CO2e 0.59 0.79
Data is provided as tonnes of carbon dioxide equivalent (CO2e) for all operations. Scope 2 and 3 include emissions from our sites, offices and vehicles. The Company's chosen intensity measures is emissions per employee. The report data has been collated internally and CO2e have been calculated using actual prices per kwh and cost for car mileage taken from suppliers' invoices and staff car mileage claims. CO2e has been calculated using the National Energy Foundation Carbon Calculator.
We have reported on the emissions sources required under The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 apart from the exclusions noted. The reported sources fall within our financial statements and are emissions over which we have financial control. We do not have responsibility for any emissions sources that are not included in our statements.
Sunderland Care and Support (Holding Company) Limited is concerned about energy consumption and carbon emissions and wishes to utilise the mandatory SECR legislation to identify ways of saving energy and reduce on carbon emissions.
The financial statements have been prepared on a going concern basis.
As a company ultimately wholly owned by Sunderland City Council, by its very nature it is a going concern and the directors have no reason to believe that any events would impact on this position. A five-year contract plus additional options to extend of up to 2 x 12 months was agreed in July 2020 with Sunderland City Council with the potential contract ceasing on the 30 November 2027.
The Company’s pension surplus of £9.550m is recognised in full in the financial statements. The directors have reviewed the Company’s forecasts for next financial year from the date of formally approving the financial statements. Therefore the Board consider preparation on a going concern basis to be appropriate.
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
As explained more fully in the directors' responsibilities statement, the directors 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 directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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 auditor's 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:
The risk of material misstatement due to error or fraud is deemed to be low within the entity as the company operate strong internal controls to mitigate any such risk. These controls are reviewed as part of the audit by performing controls sample testing as well as systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. Manual journal entries are scrutinised by data analytics software used as part of the audit.
The laws and regulations which are considered to be significant to the entity relate to health and safety. The entity also must comply with policies set out of Ofsted and the Care Quality Commissions. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.
The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the 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 company's members those matters we are required to state to them in an auditor'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 members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Sunderland Care and Support Limited is a private company, limited by shares, registered in England and Wales. The company's registered office address can be found on the Company Information page.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Group financial statements which include the company are prepared by Sunderland City Council. Please see the Council's website where these group financial statements are available at www.sunderlandgov.uk. Further information can be obtained from Director of Corporate Services, Sunderland City Council, City Hall, Plater Way, Sunderland, SR1 3AA. |
Agency income and expenditure |
A number of items of income and expenditure have been removed from the company's financial statements on the basis that company is acting as an agent in accordance with FRS 102, where in an agency relationship, an entity (the agent) shall include in revenue only the amount of its commission. The amounts collected on behalf of the principal are not revenue of the entity. |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Defined benefit pension plan
The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount' rate').
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.
Interest income
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Operating leases: the Company as lessee
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The item in the Company's Balance Sheet at 31 March 2023 for which there is a significant estimation uncertainty in the forthcoming financial year is as follows:
McCloud Judgement
Following a review of public service pension schemes in 2011, all schemes were reformed with the objective of reducing the overall cost to the taxpayer and putting schemes on a more sustainable footing.
The reforms included transitional protections for those members who were closest to retirement. Protections applied to active members who were within 10 years of their Normal Pension Age on 1 April 2012. All LGPS members transferred to the new 2014 Scheme on 1 April 2014 but members within 10 years of normal retirement were given an underpin promise that benefits earned after 1 April 2014 would be at least as valuable, in terms of amount and when they could be drawn, as if they had remained in the 2008 Scheme.
In 2018 the Government lost a Court of Appeal case (the ‘McCloud/Sargeant judgement) which found that the transitional protection arrangements put in place when the firefighters’ and judges’ pension schemes were reformed were age discriminatory.
This is likely to have implications for all public sector schemes due to the similarities in the way members closest to retirement were protected and could lead to members of the LGPS, who were discriminated against, being compensated.
In light of this, the accounts include an allowance for estimated liabilities relating to potential remedies for age discrimination within the LGPS arrangements. This assumes that the Government will legislate to change the scheme in the future to compensate members who have been discriminated against.
In 2019 there was an increase in the pension liability of £3.250 million, with additional pension costs included within past service costs, as disclosed in the pensions note. Until the Government announce scheme changes there is some uncertainty over the final liability that may emerge.
Pension Liability
Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. A firm of consulting actuaries is engaged to provide the Company with expert advice about the assumptions to be applied.
The effects on the net pension liability for funded LGPS benefits of changes in individual assumptions can be measured. However, the assumptions interact in complex ways. Increase in life expectancy and salaries will result in increased liabilities, and changes in returns on assets could result in either a reduction or increase in the liability.
The yearly actuarial assessment of the liability takes into account changes in assumptions and the timeframe involved in the payment of the assessed contributions to reduce the liability.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
During the year retirement benefits were accruing to 1 director (2022: 1) in respect of defined benefit pension schemes. In the year ended 31 March 2023 these amounted to £28,415 (2022: £32,080).
Three of the directors are non-executive directors and have not received any emoluments (2022: 3 received no remuneration).
The remuneration of key management personnel was £106,382 (2022: £111,520).
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
In addition to the amount credited to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £493,647 (2022: £427,531).
Contributions totalling £98,079 (2022: £98,536) were payable to the fund at the reporting date.
All new employees are able to join the defined contributions pension scheme.
The company also operates a defined pension scheme. The disclosures below relate to the funded liabilities within the Tyne and Wear Pension Fund (the 'Fund') which is part of the Local Government Pension Scheme (the 'LGPS'). The funded nature of the LGPS requires Sunderland Care and Support Limited and its employees to pay contributions into the Fund, calculated at a level intended to balance the pensions liabilities with investment assets. The latest actuarial valuations of Sunderland Care and Support Limited liabilities took place as at 31 March 2023. Liabilities have been estimated by the independent qualified actuary on an actuary basis using the projected unit credit method.
Assumed life expectations on retirement at age 65:
Amounts recognised in the profit and loss account
Amounts taken to other comprehensive income
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
Movements in the present value of defined benefit obligations
The defined benefit obligations arise from plans which are wholly unfunded.
Movements in the fair value of plan assets
The actual return on plan assets was £1,230,000 (2022 - £5,050,000).
Fair value of plan assets at the reporting period end
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The operating lease costs during the year were £551,537 (2022: £555,160). All lease commitments relate to land and buildings.
The company is wholly owned by Sunderland Care and Support (Holding Company) Limited. Income of £49,730,241 (2022: £46,218,043) was received from the Holding Company during the reporting period. At the balance sheet date Sunderland Care and Support (Holding Company) Limited owed the company £1,981,776 (2022: £3,824,972).
Sunderland City Council is the ultimate owner of the Sunderland Care and Support Limited, as it is the sole-owner of Sunderland Care and Support (Holding Company) Limited. Service level agreements for the provision of various services are in place and amounts totalling £5,450,327 (2022: £4,953,419) were paid to the Council in the year. Income was received from Sunderland City Council of £5,694,460 (2022: £5,765,806).
During 2022/23 the company received income of £24,983 (2022: £3,000) from Together For Children Sunderland Limited, another wholly owned subsidiary of Sunderland City Council. Payments of £nil (2022: £750) were made to Together for Children in 2022/23.
The amount owing to/(from) related parties at the year end was as follows:
2023 2022
£ £
Sunderland Care and Support (Holding Company) Ltd (1,981,776)* (3,824,972)
Sunderland City Council (1,467,908) (1,194,281)
Together for Children Sunderland Limited 35,406 (3,000)
* Note: VAT debtor / (creditor) included in figures between Holding Company and Operational Company of £887.168.
After the end of the year the company has been informed that its occupation of Grace House will be terminated in November 2023. Grace House is the facility used by the company to deliver respite care services for children and is commissioned on behalf of Together for Children (TfC). The company will therefore lose approximately £639,000 (FYE) of income for the delivery of this service and save a higher amount of cost. The directors and TfC commissioners are considering the options for the continuation of this service, including alternative provision and redeployment of staff in other areas. It is unknown at this stage whether or not there will any costs including redundancy and strain on fund costs incurred as a result of the termination of our occupation of Grace House.
The ultimate parent undertaking is Sunderland City Council by virtue of its 100% shareholding in the company's immediate parent undertaking, Sunderland Care and Support (Holding Company) Limited. There is no individual controlling party.
Home Improvement Agency and Disabled Facilities Grants
The Company acts as an agent for Sunderland City Council ("Council") in relation to Home Improvement Agency and Disabled Facilities Grants, which are spent on improving facilities for disabled people in their homes and also funds the minor alterations and handyperson scheme. The Company administers the scheme on behalf of the Council, managing the expenditure that is funded mainly by external grants. The Company incurs expenditure and is reimbursed by the Council, but this is not included in turnover as the Company is an agent of the Council. The Company does include in income its fees paid for by the Council for managing this expenditure.
Income and expenditure that has been eliminated within these financial statements during the year was £3,732,319 (2022: £3,092,621).
Telehealth and Assistive Technology
The Company acts as an agent for Sunderland City Council ("Council") in relation to Telehealth and Assistive Technology, which are spent on devices or systems that help maintain or improve a person's ability to do things in everyday life. These can assist with a range of difficulties, including problems with memory and mobility. The Company administers the scheme on behalf of the Council, managing the expenditure that is funded mainly by external / Council funding. The Company incurs expenditure and is reimbursed by the Council, but this is not included in turnover as the Company is an agent of the Council.
Income and expenditure that has been eliminated within these financial statements during the year was £372,122 (2022: £165,531).
Community Equipment Refurbishment
The Company acts as an agent for Sunderland City Council ("Council") in relation to the Community Equipment Refurbishment, which are spent on building works related to the improvement of the Community Equipment Service. The Company administers the scheme on behalf of the Council, managing the expenditure that is funded by Council. The Company incurs expenditure and is reimbursed by the Council, but this is not included in turnover as the Company is an agent of the Council.
Income and expenditure that has been eliminated within these financial statements during the year was £152,201 (2022: £nil).
Client monies for supported living
The Company administers a fund for its clients that are living in supported accommodation provided by the company. Income is received from housing benefit for the upkeep of living areas, and expenditure is incurred as and when needed on those areas. The income, expenditure and cash balances held have been removed from these financial statements.
Income in the year was £142,296 (2022: £142,296) and expenditure in the year was £114,859 (2022: £7,832).
Cash balances held on behalf of clients is £702,329 (2022: £674,892).
Corporate and social responsibility - good causes fund
As part of its commitment to corporate and social responsibility, the Company raises money for good causes in Sunderland and makes donations to those causes. The income, expenditure and cash balances held have been removed from these financial statements.
Income in the year was £6,478 (2022: £4,206) and expenditure in the year was £1 (2022: £10,001).
Cash balances held on behalf of these good causes activities was £7,689 (2022: £1,212).
The company delivers cash to customers on behalf of the Financial Safeguarding Team. The income, expenditure and cash balances held have been removed from these financial statements.
Funds brought-forward and income received in the year totalled £203,966 (2022: £213,288) and expenditure in the year was £199,868 (2022: £210,106).
Cash balances held at year-end on behalf of customers were £4,098 (2022: £3,182).