Terry's Day Care Limited
Annual Report and unaudited Financial Statements
For the Period ended 30 December 2022
Terry's Day Care Limited
Legal and administrative information
Trustees
Mrs R T De Lorenzo
(Appointed 9 August 2021)
Mr S McGee
(Appointed 9 August 2021)
Mrs T M Jeffery
(Appointed 9 August 2021)
Charity number
1199604
Company number
13554558
Registered office
Ground Floor
Madgwick Lane
Westhampnett
Chichester
England
PO18 0FB
Independent examiner
DJH Mitten Clarke Chester Limited
Chester House
Lloyd Drive
Cheshire Oaks Business Park
Ellesmere Port
Cheshire
England
CH65 9HQ
Terry's Day Care Limited
Contents
Page
Trustees report
1 - 2
Independent examiner's report
3
Statement of financial activities
4
Balance sheet
5
Notes to the financial statements
6 - 13
Terry's Day Care Limited
Trustees report (including directors' report)
For the Period ended 30 December 2022
- 1 -

The Trustees present their annual report and financial statements for the period ended 30 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The charity's objectives are to provide relief of elderly persons from experiencing social isolation or who may be affected by chronic disease and life limiting illnesses by providing a day care facility to offer support, information and respite care for such persons and their families and carers.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The charity was established with a legacy of £200,000 from Terence (Terry) John Senn, to provide a facility for elderly people to socialise and receive respite care on a non residential basis. The legacy enabled the charity to secure the lease of a property to operate from, invest in initial equipment and cover the required salary costs to ensure beneficiaries received the care they needed from the outset.

The charity has a number of private individuals who contributed a total of £1,673 towards their respite care on a subsidised basis which is an area of focus for future growth.

Gifts, grants and fundraising yielded a further £16,447.

Financial review

Total income recognised in the year was £218,120, revenue expenditure was £108,047 leaving a surplus for the year of £110,073 of which £4,501 was held as restricted funds and £105,572 unrestricted funds. Excluding fixed assets, the free reserves of the charity at the year end were £99,204.

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

Structure, governance and management

The Trust is a registered charity, number 1199604 and a company limited by guarantee number 13554558, governed under the Articles of Association/Governing document dated 27 January 2022 as amended on 5 July 2022.

The Trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:

 

Mrs R T De Lorenzo
(Appointed 9 August 2021)
Mr S McGee
(Appointed 9 August 2021)
Mrs T M Jeffery
(Appointed 9 August 2021)

The charity has 3 trustees who are also directors for company law purposes. New trustees are appointed by existing trustees following a recruitment process to ensure a varied skillset is maintained by the board at all times. None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Terry's Day Care Limited
Trustees report (including directors' report) (continued)
For the Period ended 30 December 2022
- 2 -

The Trustees report was approved by the Board of Trustees.

Mr S McGee
Trustee
7 November 2023
Terry's Day Care Limited
Independent examiner's report
To the Trustees of Terry's Day Care Limited
- 3 -

I report to the Trustees on my examination of the financial statements of Terry's Day Care Limited (the charity) for the period ended 30 December 2022.

Responsibilities and basis of report

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

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1

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

2

the financial statements do not accord with those records; or

3

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Mrs D D Lea FCA,FCCA
7 November 2023
DJH Mitten Clarke Chester Limited
Chester House
Lloyd Drive
Cheshire Oaks Business Park
Ellesmere Port
Cheshire
CH65 9HQ
England
Dated: 7 November 2023
Terry's Day Care Limited
Statement of financial activities
including income and expenditure account
For the Period ended 30 December 2022
- 4 -
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
Notes
£
£
£
Income from:
Donations and legacies
3
211,504
4,501
216,005
Charitable activities
4
1,673
-
1,673
Other trading activities
5
442
-
442
Total income
213,619
4,501
218,120
Expenditure on:
Raising funds
6
6,847
-
6,847
Charitable activities
7
101,200
-
101,200
Total expenditure
108,047
-
108,047
Net income for the period/
Net movement in funds
105,572
4,501
110,073
Fund balances at 9 August 2021
-
-
-
Fund balances at 30 December 2022
105,572
4,501
110,073

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Terry's Day Care Limited
Balance sheet
As at 30 December 2022
- 5 -
2022
Notes
£
£
Fixed assets
Tangible assets
12
6,368
Current assets
Debtors
13
2,687
Cash at bank and in hand
108,048
110,735
Creditors: amounts falling due within one year
14
(7,030)
Net current assets
103,705
Total assets less current liabilities
110,073
Income funds
Restricted funds
16
4,501
Unrestricted funds
105,572
110,073

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the period ended 30 December 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

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

The financial statements were approved by the Trustees on 7 November 2023
Mr S McGee
Trustee
Company registration number 13554558
Terry's Day Care Limited
Notes to the  financial statements
For the Period ended 30 December 2022
- 6 -
1
Accounting policies
Charity information

Terry's Day Care Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Ground Floor, Madgwick Lane, Westhampnett, Chichester, PO18 0FB, England.

1.1
Reporting period

The accounts reflect the first period of operations since incorporation on 9 August 2021 to 31 December 2022. Future accounting periods will be for twelve months and therefore will not be directly comparable with this first period.

1.2
Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2019). The charity is a Public Benefit Entity as defined by FRS 102.

 

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.5
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Terry's Day Care Limited
Notes to the  financial statements (continued)
For the Period ended 30 December 2022
1
Accounting policies
(Continued)
- 7 -
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.6
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 are allocated on the portion of the asset’s use.

1.7
Tangible fixed assets

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

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

Fixtures and fittings
20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8
Impairment of fixed assets

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

1.9
Cash and cash equivalents

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

1.10
Financial instruments

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

 

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

 

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

Terry's Day Care Limited
Notes to the  financial statements (continued)
For the Period ended 30 December 2022
1
Accounting policies
(Continued)
- 8 -
Basic financial assets

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.11
Employee benefits

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

 

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

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Critical accounting estimates and judgements

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

 

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

Terry's Day Care Limited
Notes to the  financial statements (continued)
For the Period ended 30 December 2022
- 9 -
3
Donations and legacies
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
£
£
£
Donations and gifts
1,504
4,501
6,005
Legacies receivable
200,000
-
200,000

Other grants

10,000
-
10,000
211,504
4,501
216,005
4
Charitable activities

Private respite

2022
£
Other income
1,673
5
Other trading activities
Unrestricted
funds
2022
£
Fundraising events
442
6
Raising funds
Unrestricted
funds
2022
£
Fundraising and publicity
Seeking donations, grants and legacies
6,847
6,847
Terry's Day Care Limited
Notes to the  financial statements (continued)
For the Period ended 30 December 2022
- 10 -
7
Charitable activities

Day care

2022
£
Staff costs
19,611
Depreciation and impairment
948

Advertising and marketing

15,445

Rent and rates

19,397

Arts, crafts and general day care costs

11,817

Repairs and renewals

13,284

Cleaning and hygiene

1,146

Music costs

449

Food and catering

3,094
85,191
Share of support costs (see note 8)
14,433
Share of governance costs (see note 8)
1,576
101,200
8
Support costs
Support costs
Governance costs
2022
£
£
£
Staff costs
8,000
-
8,000

Legal and professional

2,258
-
2,258

Bank charges

700
-
700

IT costs

1,326
-
1,326

Insurance

2,149
-
2,149

Accountancy

-
1,576
1,576
14,433
1,576
16,009
Analysed between
Charitable activities
14,433
1,576
16,009
9
Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period.
Terry's Day Care Limited
Notes to the  financial statements (continued)
For the Period ended 30 December 2022
- 11 -
10
Employees

The average monthly number of employees during the period was:

2022
Number
2
Employment costs
2022
£
Wages and salaries
25,975
Social security costs
1,355
Other pension costs
281
27,611
There were no employees whose annual remuneration was more than £60,000.
11
Taxation

The charity is exempt from taxation on its activities on the basis that all income is applied for charitable purposes.

12
Tangible fixed assets
Fixtures and fittings
£
Cost
Additions
7,316
At 30 December 2022
7,316
Depreciation and impairment
Depreciation charged in the period
948
At 30 December 2022
948
Carrying amount
At 30 December 2022
6,368

 

Terry's Day Care Limited
Notes to the  financial statements (continued)
For the Period ended 30 December 2022
- 12 -
13
Debtors
2022
Amounts falling due within one year:
£
Trade debtors
2,315
Prepayments and accrued income
372
2,687
14
Creditors: amounts falling due within one year
2022
£
Other taxation and social security
1,226
Trade creditors
1,895
Other creditors
2,909
Accruals and deferred income
1,000
7,030
15
Retirement benefit schemes
Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £281.

16
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Incoming resources
Balance at
30 December 2022
£
£
Hall and Woodhouse Community Chest
2,682
2,682
Chichester Council
1,819
1,819
4,501
4,501

The donation from Hall and Woodhouse Community Chest is for Wellbeing activities. The donation from Chichester Council is for the purchase of kitchen and sensory equipment.

Terry's Day Care Limited
Notes to the  financial statements (continued)
For the Period ended 30 December 2022
- 13 -
17
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
2022
2022
2022
£
£
£
Fund balances at 30 December 2022 are represented by:
Tangible assets
6,368
-
6,368
Current assets/(liabilities)
99,204
4,501
103,705
105,572
4,501
110,073
18
Related party transactions
Transactions with related parties

During the period the charity entered into the following transactions with related parties:

The charity incurred costs of £40,745 for wages, rent and rates, legal and professional fees and other direct charitable costs from West Sussex Care Limited a company with a common director. At the period end there was a balance outstanding of £1,027 included within creditors.

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