Charity registration number NIC102444
Company registration number NI024793 (Northern Ireland)
MAINSTAY DRP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MAINSTAY DRP
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Dr P Moore
Ms J E M Caven
(Appointed 4 November 2022)
Mrs R Gorman
(Appointed 2 November 2022)
Mrs M McCargo
Mr P Todd
(Appointed 2 November 2022)
Mr J E Gorman
Mr N Farrell
(Appointed 11 May 2023)
Secretary
Mr D O'Donoghue
Charity number
NIC102444
Company number
NI024793
Principal address
2 Cumulus Heights
Ballyvange
Downpatrick
Co Down
BT30 6WT
Registered office
2 Cumulus Heights
Ballyvange
Downpatrick
Co Down
BT30 6WT
Auditor
GMcG BELFAST
Chartered Accountants & Statutory Auditor
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
Bankers
Danske Bank
45-48 High Street
Portadown
Craigavon
Co Armagh
BT62 1LB
Solicitors
Scullion & Green
50 St Patricks Avenue
Downpatrick
Co Down
BT30 6DW
Edwards & Co
28 Hill Street
Belfast
BT1 2LA
MAINSTAY DRP
CONTENTS
Page
Trustees' report
1 - 7
Independent auditor's report
8 - 13
Statement of financial activities
14
Balance sheet
15
Statement of cash flows
16
Notes to the financial statements
17 - 27
MAINSTAY DRP
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT)
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements for the year ended 31 March 2023.

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 Articles of Association, 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

 

Mission, Vision, and Values

 

Our Vision

For any individual with a profound and multiple learning disability to lead a happy, healthy fulfilled life of independence within their local community. All whilst being given choice and support, enabling them to live their best life possible.

 

Our Mission

To co-produce a standard of care lead by the individuals we support in an inclusive meaningful manner, no matter the complexity of their needs, within a community of opportunity.

 

Our Values

Inclusiveness in the Community

Mainstay have created strong connections with the local community over the 20+ years in service. The individuals we support have been able to gain new skills and widen their interests. Joining a club or attending and event can make such an impact on an individual’s independence, confidence, and sense of inclusion.

 

A Person Centred Approach

Here at Mainstay, we focus on ability not disability. We want to help them to open doors for themselves, find new ways to enhance the lives of the people we support, all whilst pushing the boundaries of societal assumptions.

 

Promotion of Choice

We push the boundaries that society has assumed for the individuals in our care. We support them to make informed choices within their life. Enabling them to live a fulfilled life that is true to their wishes. All whilst keeping them safe.

 

Focus on Happiness

The happiness of the individuals we support will always remain a key value of Mainstay. Creating choice, enabling control, and co-producing a happy life allows individuals to lead a fulfilled life.

 

Mainstay at a Glance

 

Our History

Mainstay started in 1990 when a group of parents and carers of adults with learning disabilities and autism joined forces to create a local service that offered excellent care and support. We began as Down Residential Project, a small home for 9 service users. Over the years we have grown and adapted to meet the changing needs of our clients.

 

Today, Mainstay is a dynamic organisation with over 300 clients across various services in multiple locations in Downpatrick. Our dedicated team of 120, worked closely with the service users, forming one big Mainstay family.

 

Our aim has always been to provide safe, effective and compassionate services for people of different abilities and their families. We aim to focus on outcomes and help clients see their possibilities rather that their disabilities. Together, we create a caring community of opportunity.

MAINSTAY DRP
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
MAINSTAY DRP
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
MAINSTAY DRP
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
MAINSTAY DRP
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -

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

Financial review

The results for year are set out in detail on pages 14-27. The charity had net incoming resources for the year of £432,607 (2022: £164,849). At the year end cash at bank and in hand was £1,119,501 (2022: £906,195).

 

At 31 March 2023, the total funds of the charity amounted to £1,340,713 (2022 - £908,106) comprising of restricted funds of £960 and unrestricted funds of £1,339,753.

Mainstay DRP receives contract funding from a range of statutory organisations including three of the Health & Social Care Trusts. Our Supported Living services also received funding from the Northern Ireland Housing Executive Supporting People Programme. We continue to operate in a challenging environment where costs are rising at unprecedented rates.

Reserves policy

The organisation has a reserves policy which ensures it has unrestricted funds (free reserves) not committed or invested in fixed assets to provide for 3 months operating expenditure to provide for uninterrupted services. Operational expenditure for a three-month period was expected to be £1 million. The Trustees have reviewed this policy and confirm that unrestricted reserves are sufficient to meet three-month expenditure. At the year end the charity had free reserves of £1,320,736 (2022: £890,584).

Plans for future periods

The charity is committed to the continued provision of current services subject to satisfactory funding arrangements.

 

The charity is also committed to continue to meet the requirements of a range of regulatory and legislative bodies including, Regulation and Quality Improvement Authority, Residential Care Homes Regulations, Health & Safety at Work Order (1978) and accompanying regulations 1999, Food Safety (Northern Ireland) Order 1991, and regulations 1995, and HTM 84 fire code regulations.

Structure, governance and management

 

Governing document

The charity is governed by its Memorandum and Articles of Association and is established as a company limited by guarantee, as defined by the Companies Act 2006. The charity was incorporated on 12 September 1990 and registered as a charity with the Charity Commission for Northern Ireland on 4 July 2016. The organisation changed its name from Down Residential Project to Mainstay DRP in November 2010 to reflect the diversity of services it offers.

The charity is managed by a Senior Leadership Team, headed by the Chief Executive Officer, which operates within the authorities as delegated by the Trustees. The Chief Executive Officer was Ms P Quigley during the year. Following the year end Ms P Quigley left her role and on 11 September 2023 Mr C McKinney took on the position of Chief Executive Officer on an interim basis.

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

Dr P Moore
Ms J E M Caven
(Appointed 4 November 2022)
Mrs R Gorman
(Appointed 2 November 2022)
Mrs M McCargo
Mr C McKinney
(Resigned 11 September 2023)
Mr P Todd
(Appointed 2 November 2022)
Ms A T Kerr
(Resigned 13 July 2023)
Ms R M McNamee Walsh
(Resigned 13 March 2023)
Mr J E Gorman
Mr N Farrell
(Appointed 11 May 2023)
MAINSTAY DRP
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -

Recruitment and appointment of new trustees

The governing body is the Board of Trustees whose members are also directors for the purposes of company law. Under the requirements of the Memorandum and Articles of Association the directors are elected by members of the Committee. The trustees have responsibility for ensuring that the charity is performing well, is solvent and complies with its obligations.

 

The Board comprises of a Chair and trustees with skills in Learning Disability services, Social Care, Health Care, Finance, Law, HR, and Planning and Business.

Organisational structure

The charity committee is made up of the trustees, who are directly responsible for the oversight of the day-to-day management of the charity. They meet on a monthly basis to review all aspects of the charity. The full committee delegates Finance & HR responsibilities to subgroups with expertise in these areas. Subgroups meet monthly and report to the full committee.

 

Charity Committee members:

Mrs R Gorman (Chair)

Dr P Moore

Mrs A Kerr (Vice Chair)                (Resigned 11 September 2023)

Mr J E Gorman

Ms J E M Caven

Mrs H Hurley                     (Resigned 21 November 2022)

Mrs M McCargo

Mrs R McNamee Walsh                 (Resigned 13 March 2023)

Mr J McMullan                     (Resigned 22 August 2022)

Mr C McKinney                    (Resigned 13 July 2023)

Mr M Morrisey                     (Resigned 27 February 2023)

Mr P Todd

Mr N Farrell                    (Appointed 18 May 2023)

Mr W Cordner Reid                (Appointed 18 May 2023 & Resigned 19 September 2023)

Mr D O'Donoghue (Secretary)

 

The committee is made up of both founder and more recent members with a shared vision, commitment, and passion for achieving the objectives of the organisation. Members come with a range of skills crucial to the management of the organisation.

MAINSTAY DRP
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
Statement of trustees' responsibilities

The trustees, who are also the directors of Mainstay DRP for the purpose 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 year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that GMcG BELFAST be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Mrs R Gorman
Trustee
22 November 2023
MAINSTAY DRP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAINSTAY DRP
- 8 -

Opinion

We have audited the financial statements of Mainstay DRP (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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

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 charity’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.

MAINSTAY DRP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRP
- 9 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

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 trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within 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 the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which 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; 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.

MAINSTAY DRP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRP
- 10 -
Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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.

Auditor's 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

MAINSTAY DRP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRP
- 11 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

MAINSTAY DRP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRP
- 12 -
Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

MAINSTAY DRP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRP
- 13 -

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 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 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.

Mr Nigel Moore FCA (Senior Statutory Auditor)
for and on behalf of GMcG BELFAST
22 November 2023
Chartered Accountants
Statutory Auditor
Chartered Accountants & Statutory Auditor
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
MAINSTAY DRP
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
3
74,055
-
74,055
149,639
-
149,639
Charitable activities
4
4,122,657
490,473
4,613,130
3,815,920
541,816
4,357,736
Investments
5
4,600
-
4,600
-
-
-
Other income
6
6,000
-
6,000
-
-
-
Total income
4,207,312
490,473
4,697,785
3,965,559
541,816
4,507,375
Expenditure on:
Charitable activities
7
3,775,665
489,513
4,265,178
3,800,710
541,816
4,342,526
Net income for the year/
Net movement in funds
431,647
960
432,607
164,849
-
164,849
Fund balances at 1 April 2022
908,106
-
908,106
743,257
-
743,257
Fund balances at 31 March 2023
1,339,753
960
1,340,713
908,106
-
908,106

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

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.
MAINSTAY DRP
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 15 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
19,017
17,522
Current assets
Stocks
13
2,703
-
Debtors
14
418,355
240,171
Cash at bank and in hand
1,119,501
906,195
1,540,559
1,146,366
Creditors: amounts falling due within one year
15
(218,863)
(255,782)
Net current assets
1,321,696
890,584
Total assets less current liabilities
1,340,713
908,106
Income funds
Restricted funds
16
960
-
Unrestricted funds
1,339,753
908,106
1,340,713
908,106
The financial statements were approved by the Trustees on 22 November 2023
Dr P Moore
Trustee
Company registration number NI024793
MAINSTAY DRP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
214,259
644,287
Investing activities
Purchase of tangible fixed assets
(11,553)
(3,636)
Proceeds from disposal of tangible fixed assets
6,000
-
Investment income received
4,600
-
Net cash used in investing activities
(953)
(3,636)
Net cash used in financing activities
-
-
Net increase in cash and cash equivalents
213,306
640,651
Cash and cash equivalents at beginning of year
906,195
265,544
Cash and cash equivalents at end of year
1,119,501
906,195
MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
1
Accounting policies
Charity information

Mainstay DRP is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 2 Cumulus Heights, Ballyvange, Downpatrick, Co Down, BT30 6WT.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum of Association, 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 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.

1.2
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.

1.3
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.

1.4
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.

1.5
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.

MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 18 -
1.6
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% per annum straight line
Computers
20% per annum straight line
Motor vehicles
20% per annum straight line

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.

1.7
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).

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

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.

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.

MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 19 -
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.

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.13

Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities incorporating Income and Expenditure Account on a straight line basis over the lease term.

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.

MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Critical accounting estimates and judgements (Continued)
- 20 -
Key sources of estimation uncertainty
Fixed assets

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Debtors

Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.

Restricted and unrestricted funds

Judgements are made in relation to allocation of income and expenditure to restricted and unrestricted funds. The directors consider it appropriate to allocate these funds based on interpretation of donations received.

3
Donations and legacies
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£

Grants

74,055
149,639
4
Charitable activities
2023
2022
£
£
Services provided under contract
4,434,984
4,313,308
Other income
178,146
44,428
4,613,130
4,357,736
Analysis by fund
Unrestricted funds
4,122,657
3,815,920
Restricted funds
490,473
541,816
4,613,130
4,357,736
MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
5
Investments
Unrestricted
Total
funds
2023
2022
£
£
Interest receivable
4,600
-
6
Other income
Unrestricted
Total
funds
2023
2022
£
£
Net gain on disposal of tangible fixed assets
6,000
-
MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
7
Charitable activities

Total

Total

2023
2022
£
£
Staff costs
2,823,213
2,876,934
Depreciation and impairment
9,528
15,366

Light & heat

42,355
35,806

Rent & rates

290,548
281,430

Insurance

60,465
60,248

Telephone & IT

25,803
18,852

Consumables

121,370
105,984

Advertising

23,415
1,186

Repairs

99,829
58,172

Printing, postage & stationery

11,478
7,205

Vehicle expenses

14,619
15,614

Sundry expenses

11,440
9,664

Staff training

90,997
30,129

Bad debts

23,735
13,960

Agency costs

75,517
-
3,724,312
3,530,550
Share of support costs (see note 8)
415,409
691,302
Share of governance costs (see note 8)
125,457
120,674
4,265,178
4,342,526
Analysis by fund
Unrestricted funds
3,775,665
3,800,710
Restricted funds
489,513
541,816
4,265,178
4,342,526
MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
8
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£
Staff costs
288,908
-
288,908
305,279
-
305,279
Depreciation
531
-
531
855
-
855

Light & heat

5,354
-
5,354
2,589
-
2,589

Rent & rates

15,576
-
15,576
15,601
-
15,601

Insurance

7,556
-
7,556
3,172
-
3,172

Telephone

8,247
-
8,247
11,733
-
11,733

Computer expenses

15,863
-
15,863
17,549
-
17,549

Advertising

28,548
-
28,548
9,260
-
9,260

Repairs

10,071
-
10,071
10,985
-
10,985

Printing, postage & stationery

10,662
-
10,662
9,638
-
9,638

Donations

-
-
-
297,863
-
297,863

Sundry expenses

24,093
-
24,093
6,778
-
6,778
Audit fees
-
8,100
8,100
-
9,000
9,000

Legal & professional

-
117,357
117,357
-
111,674
111,674
415,409
125,457
540,866
691,302
120,674
811,976
Analysed between
Charitable activities
415,409
125,457
540,866
691,302
120,674
811,976

Governance costs includes payments to the auditors of £8,100 (2022- £9,000) for audit fees.

9
Trustees

During the year, the charity paid £35,240 (2022 - £Nil) for accountancy services provided by a firm owned by a Trustee. There were no other transactions with trustees that are required to be disclosed.

10
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Residential and daycare staff
112
134
Administration and support
9
7
Total
121
141
MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Employees (Continued)
- 24 -
Employment costs
2023
2022
£
£
Wages and salaries
2,790,389
2,877,656
Social security costs
257,329
240,581
Other pension costs
64,403
63,976
3,112,121
3,182,213
The number of employees whose annual remuneration was more than £60,000 is as follows:
2023
2022
Number
Number
£60,001 to £70,000
-
1
£70,001 to £80,000
1
-
11
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

12
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
96,442
11,069
51,686
159,197
Additions
11,553
-
-
11,553
Disposals
(31,509)
-
(11,250)
(42,759)
At 31 March 2023
76,486
11,069
40,436
127,991
Depreciation and impairment
At 1 April 2022
85,247
5,898
50,530
141,675
Depreciation charged in the year
6,963
1,939
1,156
10,058
Eliminated in respect of disposals
(31,509)
-
(11,250)
(42,759)
At 31 March 2023
60,701
7,837
40,436
108,974
Carrying amount
At 31 March 2023
15,785
3,232
-
19,017
At 31 March 2022
11,195
5,171
1,156
17,522
MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,703
-
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
320,077
95,932
Other debtors
5,215
-
Prepayments and accrued income
93,063
144,239
418,355
240,171
15
Creditors: amounts falling due within one year
2023
2022
£
£
Other taxation and social security
51,385
-
Trade creditors
59,747
113,829
Other creditors
14,840
11,956
Accruals and deferred income
92,891
129,997
218,863
255,782
MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
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:
Movement in funds
Movement in funds
Incoming resources
Resources expended
Balance at
1 April 2022
Incoming resources
Resources expended
Balance at
31 March 2023
£
£
£
£
£
£
Supporting People
541,816
(541,816)
-
453,946
(453,946)
-
The Community Foundation
-
-
-
29,887
(28,927)
960
Northern Ireland Social Care Council
-
-
-
6,640
(6,640)
-
541,816
(541,816)
-
490,473
(489,513)
960

Explanatory notes to the funds

 

Supporting people

The restricted funds for Supporting People relate to income provided to support clients to live independently in supported housing facilities.

 

The Community Foundation

The restricted funds for the Community Foundation relate to funds received to provide the ‘Give My Head Space Project,’ This project provided a bespoke 8 month programme to 15 carers. The programme provided carers with the tools to improve their physical, mental health and wellbeing, together with a learning space to improve their technology skills allowing them to link into or access further advice and support.   

 

Northern Ireland Social Care Council

The restricted funds from NISCC relates to training grants for care staff to achieve Level 2 & 5 Diplomas in Health & Social Care.

 

 

17
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 31 March 2023 are represented by:
Tangible assets
19,017
-
19,017
17,522
-
17,522
Current assets/(liabilities)
1,320,736
960
1,321,696
890,584
-
890,584
1,339,753
960
1,340,713
908,106
-
908,106
MAINSTAY DRP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
18
Financial commitments, guarantees and contingent liabilities

The charity has granted a floating charge over all its undertakings and its assets as security in relation to the bank borrowings of a related party, Mainstay DRM Ltd. The total bank borrowings of Mainstay DRM Ltd at the balance sheet date were £736,681.

A portion of capital grants received may become repayable if the company fails to comply with the terms of the letters of offer.

19
Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
23,089
28,541
Between two and five years
14,262
34,489
37,351
63,030
20
Related party transactions

The company works closely with Mainstay DRM Ltd which shares the charity's passion for providing accommodation and care and support to people who have a learning disability and their families.

 

As at 31 March 2023 a balance of £1,382 (2022: £nil) is owed to Mainstay DRM Ltd. During the year, the company rented a number of properties from Mainstay DRM Ltd for £219,966 (2022: £223,617). The charity also paid a service charge of £8,391 (2022: £nil) and consultancy fees and a training charge of £2,411 (£2022: £28,936) to Mainstay DRM Ltd, during the year.

 

 

21
Cash generated from operations
2023
2022
£
£
Surplus for the year
432,607
164,849
Adjustments for:
Investment income recognised in statement of financial activities
(4,600)
-
Gain on disposal of tangible fixed assets
(6,000)
-
Depreciation and impairment of tangible fixed assets
10,059
16,221
Movements in working capital:
(Increase) in stocks
(2,703)
-
(Increase)/decrease in debtors
(178,184)
318,532
(Decrease)/increase in creditors
(36,920)
144,685
Cash generated from operations
214,259
644,287
22
Analysis of changes in net funds

The charity had no debt during the year.

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