Charity registration number NIC103530
Company registration number NI063756 (Northern Ireland)
MAINSTAY DRM LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MAINSTAY DRM LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr J E Gorman
Dr P Moore
Secretary
Mr D O'Donoghue
Charity number
NIC103530
Company number
NI063756
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
MAINSTAY DRM LTD
CONTENTS
Page
Trustees' report
1 - 3
Independent auditor's report
4 - 9
Statement of financial activities
10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
MAINSTAY DRM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The trustees 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 Memorandum 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

The main objectives of the charity are:

 

The provision of accommodation for clients with learning disabilities and/or autism.

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

Mainstay DRM Ltd was established to:

 

Mainstay DRM owns/rents properties across the local area including the purpose built facility at Cumulus Heights.

 

 

The Cumulus Heights facility features two residential homes, supported housing accommodation, a day opportunities service and a training and administrative centre. It provides a modern facility providing valuable services for people with a learning disability and their families.

Achievements and performance

As part of its charitable activities, Mainstay DRM provided the resources for 84 clients to take part in the Beama project (Belfast Academy of Music & Arts). This involved teaching clients about technology, art and design including how to design their own individual logo and learning how to DJ by mixing different music together.  A total of 84 clients were involved in the project from both community hub and external clients and resulted in 504 outcomes. Outcomes were achieved in areas such as social engagement, enjoying an activity and having fun, learning a new skill, recognising different types of equipment. All participants recorded that they would love to take part again.

Financial review

The results for the year are set out in detail on pages 10 to 23. The Charity had net incoming resources for the year of £55,869 (2022: £424,292). At the year end cash at bank and in hand was £368,421 (2022: £320,609).

At 31 March 2023, the total funds of the charity amounted to £3,325,778 (2022 - £3,269,909) comprising restricted funds of £10,000 and unrestricted funds of £3,315,778. Funds totalling £18,965 (2022: £18,965) have been designated by the trustees for specific purposes, which are explained in more detail in note 19.

Unrestricted funds are considered to be essential to support the work of the charity in providing accommodation and care and support to people who have a learning disability and their families. Unrestricted funds are also essential to provide sufficient funds to cover any unforeseen costs which may arise and fulfil the legal obligations of the charity in the event that current levels of income are not maintained.

Reserves Policy

The organisation has a reserves policy which ensures it has unrestricted funds (cash reserves) not committed or invested in fixed assets to provide for 3 months operating expenditure.

MAINSTAY DRM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

Principal funding sources

The principal funding came by way of rental income from NIHE and from Mainstay DRP and various public donations at identified in note 4 of the accounts.

Investment policy and objectives

Under the Memorandum and Articles of Association, the charity has the power to invest in any way the trustees wish, however in formulating an investment policy, the charity has recognised that whilst it may have surplus funds to invest, these may be called upon in the short term. The committee have therefore been prudent in its investment strategy ensuring cash is not tied up in long term or non-secure deposits. The policy is to maximise returns whilst ensuring ongoing liquidity.

Plans for future periods

The charity is committed to the continued provision of suitable facilities for people with a learning disability and their families subject to suitable funding arrangements.

 

These facilities are critical for many local families who urgently need support, care and assistance.

Structure, governance and management

The charity is a company limited by guarantee incorporated on 22 March 2007 and registered as a charity on 20 February 2008. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

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:

Mr J E Gorman
Dr P Moore
Mrs A Kerr
(Resigned 13 July 2023)
Mr P M Morrissey
(Resigned 27 February 2023)
Ms R M McNamee Walsh
(Resigned 13 March 2023)

Recruitment and appointment of trustees and management committee

At the first annual general meeting all the directors shall retire from office and at every subsequent annual general meeting one director who is subject to retirement by rotation shall retire.

 

The subscribers to the Memorandum and Articles of Association of the company and such other persons are admitted to membership in accordance with the articles shall be members of the Company. No person shall be admitted a member of the Company unless approved by the directors.

 

The day to day running of the charity is overseen by the charity committee, which includes the charity trustees.

Committee Members

Mrs R Gorman

Dr P Moore

Mrs A Kerr                     (Resigned 13 July 2023)

Mr J E Gorman

Mr D O’Donoghue

Ms J Caven

Mrs M McCargo

Mrs R M McNamee Walsh                 (Resigned 13 March 2023)

Mr C McKinney                    (Resigned 11 September 2023)

Mr P M Morrisey                    (Resigned 27 February 2023)

Mr R Todd

 

MAINSTAY DRM LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Statement of trustees' responsibilities

The trustees, who are also the directors of Mainstay DRM Ltd 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.

Dr P Moore
Trustee
22 November 2023
MAINSTAY DRM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAINSTAY DRM LTD
- 4 -

Opinion

We have audited the financial statements of Mainstay DRM Ltd (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 DRM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRM LTD
- 5 -

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 DRM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRM LTD
- 6 -
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 DRM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRM LTD
- 7 -
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 DRM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRM LTD
- 8 -
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 DRM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAINSTAY DRM LTD
- 9 -

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 DRM LTD
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
9,736
-
9,736
311,152
10,000
321,152
Charitable activities
4
242,578
-
242,578
272,077
-
272,077
Other trading activities
5
1,574
-
1,574
4,725
-
4,725
Investments
6
1,534
-
1,534
247
-
247
Total income
255,422
-
255,422
588,201
10,000
598,201
Expenditure on:
Raising funds
7
2,090
-
2,090
216
-
216
Charitable activities
8
197,463
-
197,463
164,814
8,879
173,693
Total expenditure
199,553
-
199,553
165,030
8,879
173,909
Net incoming resources before transfers
55,869
-
55,869
423,171
1,121
424,292
Gross transfers between funds
200,044
(200,044)
-
-
-
-
Net income/(expenditure) for the year/
Net movement in funds
255,913
(200,044)
55,869
423,171
1,121
424,292
Fund balances at 1 April 2022
3,059,865
210,044
3,269,909
2,636,694
208,923
2,845,617
Fund balances at 31 March 2023
3,315,778
10,000
3,325,778
3,059,865
210,044
3,269,909

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 DRM LTD
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,695,602
3,763,753
Current assets
Debtors
14
9,602
-
Cash at bank and in hand
368,421
320,609
378,023
320,609
Creditors: amounts falling due within one year
15
(80,632)
(77,773)
Net current assets
297,391
242,836
Total assets less current liabilities
3,992,993
4,006,589
Creditors: amounts falling due after more than one year
16
(667,215)
(736,680)
Net assets
3,325,778
3,269,909
Income funds
Restricted funds
18
10,000
210,044
Unrestricted funds
Designated funds
19
18,965
18,965
General unrestricted funds
3,296,813
3,040,900
3,315,778
3,059,865
3,325,778
3,269,909
The financial statements were approved by the Trustees on 22 November 2023
Mr J E Gorman
Trustee
Company registration number NI063756
MAINSTAY DRM LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
137,468
192,961
Investing activities
Purchase of tangible fixed assets
(24,353)
(40,206)
Proceeds from disposal of tangible fixed assets
-
705
Investment income received
1,534
247
Net cash used in investing activities
(22,819)
(39,254)
Financing activities
Repayment of bank loans
(66,837)
(362,942)
Net cash used in financing activities
(66,837)
(362,942)
Net increase/(decrease) in cash and cash equivalents
47,812
(209,235)
Cash and cash equivalents at beginning of year
320,609
529,844
Cash and cash equivalents at end of year
368,421
320,609
MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Charity information

Mainstay DRM Ltd 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.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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.

Rental income is recognised in the period to which it relates.

MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 14 -
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.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

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:

Freehold land and buildings
2% per annum straight line
Fixtures and fittings
20% per annum straight line
Motor vehicles
20% per annum straight line
Equipment
20% per annum straight line

Freehold land is not depreciated.

 

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
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.

1.9
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.

MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 15 -
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.

1.10
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.

MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
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.

 

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 trustees 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.

Restricted and Unrestricted Funds

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

 

3
Donations and legacies
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
2023
2022
2022
2022
£
£
£
£
Donations and gifts
9,736
311,152
10,000
321,152
Donations and gifts
Mainstay DRP
-
297,863
-
297,863
Sensory garden
-
-
10,000
10,000
Other donations
9,736
13,289
-
13,289
9,736
311,152
10,000
321,152
MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
4
Charitable activities
2023
2022
£
£
Charitable rental income
227,015
240,493
Other income
15,563
31,584
242,578
272,077
5
Other trading activities
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Fundraising events
1,574
4,725
6
Investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Interest receivable
1,534
247
7
Raising funds
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Fundraising and publicity
Other fundraising costs
2,090
216
2,090
216
MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
8
Charitable activities

Total

Total

2023
2022
£
£

BEAMA Activities

2,433
-
Share of support costs (see note 9)
186,108
169,886
Share of governance costs (see note 9)
8,922
3,807
197,463
173,693
Analysis by fund
Unrestricted funds
197,463
164,814
Restricted funds
-
8,879
9
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£
Depreciation
92,504
-
92,504
91,219
-
91,219

Rates

5,830
-
5,830
5,186
-
5,186

Bank Fees

189
-
189
92
-
92

Repairs and Maintenance

56,515
-
56,515
27,431
-
27,431

Provision for doubtful debts

-
-
-
8,605
-
8,605

Interest payable and similar charges

30,657
-
30,657
37,353
-
37,353

Insurance

413
-
413
-
-
-
Audit fees
-
3,630
3,630
-
3,592
3,592
Legal and professional
-
5,292
5,292
-
215
215
186,108
8,922
195,030
169,886
3,807
173,693
Analysed between
Charitable activities
186,108
8,922
195,030
169,886
3,807
173,693

Governance costs includes payments to the auditors of £3,630 (2022- £3,592) for audit fees.

10
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
11
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
12
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 Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

13
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 April 2022
4,414,951
92,452
33,700
5,245
4,546,348
Additions
-
9,714
14,639
-
24,353
Disposals
-
(38,022)
-
(3,344)
(41,366)
At 31 March 2023
4,414,951
64,144
48,339
1,901
4,529,335
Depreciation and impairment
At 1 April 2022
671,891
80,088
26,484
4,132
782,595
Depreciation charged in the year
84,804
3,508
3,784
408
92,504
Eliminated in respect of disposals
-
(38,022)
-
(3,344)
(41,366)
At 31 March 2023
756,695
45,574
30,268
1,196
833,733
Carrying amount
At 31 March 2023
3,658,256
18,570
18,071
705
3,695,602
At 31 March 2022
3,743,060
12,364
7,216
1,113
3,763,753

Freehold land and buildings with a carrying amount of £3,499,122 (2022 - £3,583,926) have been pledged to secure borrowings of the charity.

Land with a carrying amount of £159,134 (2022 - £159,134) is not being depreciated.

MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
1,382
-
Prepayments and accrued income
8,220
-
9,602
-
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
69,466
66,838
Accruals and deferred income
11,166
10,935
80,632
77,773
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
17
667,215
736,680
17
Loans and overdrafts
2023
2022
£
£
Bank loans
736,681
803,518
Payable within one year
69,466
66,838
Payable after one year
667,215
736,680
Amounts included above which fall due after five years:
Payable by instalments
360,142
441,584

Bank loans are secured by a floating charge over assets and undertakings of the charitable company and by way of a legal mortgage over the properties owned by the charitable company.

 

Bank loans are being repaid by way of monthly instalments until Jan 2032 with an interest rate of LIBOR plus 2.6%.

MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
18
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
Balance at
1 April 2021
Incoming resources
Resources expended
Balance at
1 April 2022
Transfers
Balance at
31 March 2023
£
£
£
£
£
£
Garfield Weston
45,693
-
(1,328)
44,365
(44,365)
-
Bailey Thomas
26,630
-
(600)
26,030
(26,030)
-
Beatrice Lang
44,383
-
(1,000)
43,383
(43,383)
-
Ulster Bank Staff Charity Fund
2,405
-
(54)
2,351
(2,351)
-
The Wolfson Foundation
28,405
-
(640)
27,765
(27,765)
-
The Clothworkers Foundation
44,383
-
(1,000)
43,383
(43,383)
-
Awards for All Northern Ireland
2,607
-
(652)
1,955
(1,955)
-
Ulster Garden
13,107
-
(3,277)
9,830
(9,830)
-
The Forbes Charitable Foundation
1,310
-
(328)
982
(982)
-
Sensory Garden
-
10,000
-
10,000
-
10,000
208,923
10,000
(8,879)
210,044
(200,044)
10,000

Restricted Funds

The restricted funds as at 31 March 2022 relate to income received from providers towards the construction of Cumulus Heights and the provision of equipment and fixtures for the new facility. Although these funds were spent they continued to be identified as restricted as conditions relating to the capital grants are still applicable. Now the conditions have been satisfied the funds have been transferred in the year to unrestricted.

Sensory Garden Restricted Fund

This relates to funds that have been received by Mainstay DRM or fundraised specifically for the construction of a sensory garden.

MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
19
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Movement in funds
Movement in funds
Incoming resources
Balance at
1 April 2022
Incoming resources
Balance at
31 March 2023
£
£
£
£
Property fund
16,876
16,876
-
16,876
Sensory Garden fund
2,089
2,089
-
2,089
18,965
18,965
-
18,965

The company has designated £18,965 of its unrestricted funds for the following purposes. £16,876 is for any future capital works which may need to be carried out on its properties. £2,089 has been designated for a sensory garden.

20
Contingent Liabilities

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

21
Capital commitments
2023
2022
£
£

At 31 March 2023 the charity had capital commitments as follows:

Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment
17,823
50,000
22
Related party transactions

The company works closely with Mainstay DRP 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 the charity from Mainstay DRP.

 

During the year, the company rented a number of properties to Mainstay DRP for £219,966 (2022: £223,617) and received training facilities and consultancy service income of £2,411 (2022: £28,936). During the year, the charity received service charge income of £8,391 from Mainstay DRP (2022: £nil).

 

In addition, Mainstay DRP provides management, finance and administrative support to the charity for no charge.

MAINSTAY DRM LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
23
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
3,695,602
-
3,695,602
3,563,709
200,044
3,763,753
Current assets/(liabilities)
287,391
10,000
297,391
232,836
10,000
242,836
Long term liabilities
(667,215)
-
(667,215)
(736,680)
-
(736,680)
3,315,778
10,000
3,325,778
3,059,865
210,044
3,269,909
24
Cash generated from operations
2023
2022
£
£
Surplus for the year
55,869
424,292
Adjustments for:
Investment income recognised in statement of financial activities
(1,534)
(247)
Depreciation and impairment of tangible fixed assets
92,504
91,219
Movements in working capital:
(Increase)/decrease in debtors
(9,602)
11,025
Increase/(decrease) in creditors
231
(333,328)
Cash generated from operations
137,468
192,961
25
Analysis of changes in net (debt)/funds
At 1 April 2022
Cash flows
At 31 March 2023
£
£
£
Cash at bank and in hand
320,609
47,812
368,421
Loans falling due within one year
(66,838)
(2,628)
(69,466)
Loans falling due after more than one year
(736,680)
69,465
(667,215)
(482,909)
114,649
(368,260)
2023-03-312022-04-01falseCCH SoftwareiXBRL Review & Tag 2022.2NI0637562022-04-012023-03-31NI063756bus:Director12022-04-012023-03-31NI063756bus:Director22022-04-012023-03-31NI063756bus:CompanySecretary12022-04-012023-03-31NI063756bus:Director32022-04-012023-03-31NI063756bus:Director42022-04-012023-03-31NI063756bus:Director52022-04-012023-03-31NI0637562023-03-31NI0637562022-03-31NI0637562021-04-012022-03-31NI063756bus:FRS1022022-04-012023-03-31NI063756bus:Audited2022-04-012023-03-31NI063756bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP