Company registration number 04141990 (England and Wales)
TEAM FOSTERING
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TEAM FOSTERING
COMPANY INFORMATION
Directors
M Alden
J Bailey
K Hayes
C Cook
(Appointed 23 May 2024)
Secretary
M Johnson
Company number
04141990
Registered office
Unit 6 Hedley Court
Orion Business Park
North Shields
Tyne and Wear
United Kingdom
NE29 7ST
Auditor
Azets Audit Services
Wynyard Park House
Wynyard Avenue
Wynyard
United Kingdom
TS22 5TB
TEAM FOSTERING
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
TEAM FOSTERING
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The surplus for the year after taxation amounted to a surplus of £6,372 (2023:£68.708). The company incurred £166,025 of costs relating to temporary staff and £64,983 in severance related costs that are not expected to recur in future years and were necessary to stabilise the service and safeguard our children and young people.

The company’s key financial performance indicators were:

 

2024

2023

 

£

£

Turnover

9,175,822

8,933,580

Underlying surplus before taxation

One off costs

Surplus before taxation

247,233

(231,008)

16,225

195,888

(102,882)

93,006

 

The company undertakes a full planning and budgeting process each year and monitors performance through monthly management accounts and an operational dataset.

Principal risks and uncertainties

The recruitment and retention of foster carers continued to be challenging throughout the sector resulting in a decrease in the number of children placed with our carers. The agency managed to keep its revenue stream secure through price increases that reflected inflation. With a strong level of financial reserves, we were able to use our in year surplus to stabilise the service while we underwent some necessary staff restructuring.

The growth in the number of looked after children and young people in the regions in which we operate looks set to continue. The agency is committed to helping our local authority partners respond to this challenge through the recruitment of suitable foster carers and innovation in the types of fostering service we offer. We have conducted a thorough review of our foster carer recruitment processes and restructured our foster carer recruitment and retention offering ready to grow our foster carer base in 2024-25. We continually monitor the nature of the referrals we receive and adapt our foster carer recruitment strategy accordingly.

Both of our registrations fall within the Ofsted regulatory regime in England and both achieved a rating of Good in their most recent inspections.

The company relies on income from our local authority partners. The collection of amounts due is actively managed by the finance function to ensure that payments are received on a timely basis. The local authorities have responded fairly to the economic situation awarding inflationary price increases that have enabled the company to meet its rising costs. The company’s expenditure is monitored and controlled by the Agency Management Team whose members have responsibility for their own budgets. This is overseen by an experienced Financial Controller who sits on the Senior Leadership Team.

Foster carers undergo a thorough assessment process including statutory checks and references before being considered for approval by one of our independent panels. They are then supported by a dedicated social worker and have access to continuous training, development and receive annual reviews. Staff are only appointed after a thorough assessment process including statutory checks and references. Once appointed they benefit from an annual performance review and development process that informs our staff training requirements.

 

TEAM FOSTERING
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Senior management

Kathryn Hayes completed her first year as CEO and embarked on the challenges of her second year. Kathryn’s strategic priorities are summarised in the directors’ report below. A key development was the separation of the Assistant Director of Fostering role from the Registered Manager role enabling the former to focus on driving forward practice innovation and development and the latter to focus on the regulatory activity of their respective services

Chris Cook joined the Board as a Non-Executive Director in May 2024. Chris is a former Olympian whose extensive experience includes supporting children and young people in achieving success in sports, as well as working with hard-to-reach children in Young Offenders Institutions, Residential Care, Alternative Education settings, and communities affected by poverty and deprivation. As a business owner he has learned the importance of innovation, building a trusting team and strategic thinking all of which will help Team Fostering to navigate the challenges ahead and seize opportunities for growth and development.

On behalf of the board

M Alden
Director
23 July 2024
TEAM FOSTERING
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be the provision of independent fostering services for looked after children and young people in the North East, Yorkshire and East Midlands regions of England on a not for profit basis.

Results and dividends

The results for the year are set out on page 8.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M Alden
J Bailey
K Hayes
C Cook
(Appointed 23 May 2024)
Future developments

The company is in its second year of a journey to excellence with a three year vision headed up by CEO Kathryn Hayes. Year one focused on what the company does well and identified areas for development. This included some staff restructuring. Year two will drive forward those developments and embed new learning. Year three will see a review of the new developments and the identification of future opportunities. This journey recognises the current challenges of our local authority partners in foster care and how we can help meet their needs as well as the needs of care leavers and our response to the change in provisions for 16 – 18 year olds.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information

On behalf of the board
M Alden
Director
23 July 2024
TEAM FOSTERING
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TEAM FOSTERING
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TEAM FOSTERING
- 5 -
Opinion

We have audited the financial statements of Team Fostering (the 'company') for the year ended 31 March 2024 which comprise the income and expenditure account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

TEAM FOSTERING
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TEAM FOSTERING
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

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.

TEAM FOSTERING
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TEAM FOSTERING
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Graham Fitzgerald BA FCA DChA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
30 July 2024
Chartered Accountants
Statutory Auditor
Wynyard Park House
Wynyard Avenue
Wynyard
United Kingdom
TS22 5TB
TEAM FOSTERING
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,175,822
8,933,580
Cost of sales
(5,543,015)
(5,573,826)
Gross surplus
3,632,807
3,359,754
Administrative expenses
(3,702,490)
(3,292,203)
Other operating income
8,486
5,432
Operating (deficit)/surplus
4
(61,197)
72,983
Interest receivable and similar income
7
64,801
20,023
Fair value gains and losses on investment properties
10
12,621
-
0
Surplus before taxation
16,225
93,006
Tax on surplus
8
(9,853)
(24,298)
Surplus for the financial year
6,372
68,708

The income and expenditure account has been prepared on the basis that all operations are continuing operations.

TEAM FOSTERING
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Surplus for the year
6,372
68,708
Other comprehensive income
-
-
Total comprehensive income for the year
6,372
68,708
TEAM FOSTERING
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,051,130
1,090,986
Investment property
10
150,000
137,379
1,201,130
1,228,365
Current assets
Debtors
11
1,232,522
1,054,180
Cash at bank and in hand
2,868,298
3,044,677
4,100,820
4,098,857
Creditors: amounts falling due within one year
12
(359,712)
(392,607)
Net current assets
3,741,108
3,706,250
Total assets less current liabilities
4,942,238
4,934,615
Provisions for liabilities
Deferred tax liability
13
2,504
1,253
(2,504)
(1,253)
Net assets
4,939,734
4,933,362
Reserves
Income and expenditure account
4,939,734
4,933,362
Members' funds
4,939,734
4,933,362
The financial statements were approved by the board of directors and authorised for issue on 23 July 2024 and are signed on its behalf by:
M Alden
Director
Company Registration No. 04141990
TEAM FOSTERING
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Income and expenditure
£
Balance at 1 April 2022
4,864,654
Year ended 31 March 2023:
Profit and total comprehensive income for the year
68,708
Balance at 31 March 2023
4,933,362
Year ended 31 March 2024:
Profit and total comprehensive income for the year
6,372
Balance at 31 March 2024
4,939,734
TEAM FOSTERING
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
18
(218,279)
326,234
Income taxes (paid)/refunded
(23,045)
38,620
Net cash (outflow)/inflow from operating activities
(241,324)
364,854
Investing activities
Purchase of tangible fixed assets
-
0
(9,997)
Proceeds from disposal of tangible fixed assets
144
-
0
Purchase of investment property
-
0
(2,000)
Interest received
64,801
20,023
Net cash generated from investing activities
64,945
8,026
Net (decrease)/increase in cash and cash equivalents
(176,379)
372,880
Cash and cash equivalents at beginning of year
3,044,677
2,671,797
Cash and cash equivalents at end of year
2,868,298
3,044,677
TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Team Fostering is a private company limited by guarantee incorporated in England and Wales. The registered office is Unit 6 Hedley Court, Orion Business Park, North Shields, Tyne and Wear, United Kingdom, NE29 7ST.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

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

 

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

1.4
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 property
Straight line over 50 years
Leasehold property
Straight line over the shorter of the lease term or 50 years
Fixtures and fittings
20% 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 credited or charged to surplus or deficit.

1.5
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

At each reporting period end date, the company 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

1.8
Financial instruments

The company 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 company's balance sheet when the company 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in surplus or deficit, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets, other than those held at fair value through surplus and deficit, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in surplus or deficit.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in surplus or deficit.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 business 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in surplus or deficit in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

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

1.9
Taxation

The tax expense represents the sum of the tax currently payable.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

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

1.12
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Analysis per statutory database
-
-
Statutory database analysis does not agree to the trial balance by:
9,175,822
8,933,580
TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Turnover analysed by geographical market
Analysis per statutory database
-
-
Statutory database analysis does not agree to the trial balance by:
9,175,822
8,933,580
2024
2023
£
£
Other revenue
Interest income
64,801
20,023
4
Operating (deficit)/surplus
2024
2023
Operating (deficit)/surplus for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
21,300
19,800
Depreciation of owned tangible fixed assets
39,712
39,713
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Directors
3
4
Administration
67
66
Total
70
70

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,437,062
2,141,156
Social security costs
230,100
219,560
Pension costs
86,728
66,003
2,753,890
2,426,719
Redundancy payments made or committed
61,683
-
TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
163,256
178,699
Company pension contributions to defined contribution schemes
8,972
2,985
172,228
181,684
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
64,801
20,023
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
8,602
23,045
Deferred tax
Origination and reversal of timing differences
1,251
1,253
Total tax charge
9,853
24,298

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
16,225
93,006
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
4,056
17,671
Tax effect of expenses that are not deductible in determining taxable profit
(2,344)
71
Depreciation on assets not qualifying for tax allowances
8,141
6,187
Deferred tax adjustments in respect of prior years
-
0
941
Enhanced capital allowances
-
0
(572)
Taxation charge for the year
9,853
24,298
TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
9
Tangible fixed assets
Freehold property
Leasehold property
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2023
1,028,406
599,763
266,285
1,894,454
Disposals
-
0
-
0
(238)
(238)
At 31 March 2024
1,028,406
599,763
266,047
1,894,216
Depreciation and impairment
At 1 April 2023
407,028
145,881
250,559
803,468
Depreciation charged in the year
20,568
11,995
7,149
39,712
Eliminated in respect of disposals
-
0
-
0
(94)
(94)
At 31 March 2024
427,596
157,876
257,614
843,086
Carrying amount
At 31 March 2024
600,810
441,887
8,433
1,051,130
At 31 March 2023
621,378
453,882
15,726
1,090,986
10
Investment property
2024
£
Fair value
At 1 April 2023
137,379
Net gains or losses through fair value adjustments
12,621
At 31 March 2024
150,000

The investment properties were valued during the year at fair market value by the directors after taking advice from appropriately qualified estate agents.

11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Service charges due
925,130
612,101
Other debtors
194
-
0
Prepayments and accrued income
307,198
442,079
1,232,522
1,054,180
TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
55,725
84,761
Corporation tax
8,592
23,035
Other taxation and social security
54,708
52,784
Other creditors
53,128
33,611
Accruals and deferred income
187,559
198,416
359,712
392,607
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,303
2,301
Revaluations
3,155
-
Other short term timing differences
(1,954)
(1,048)
2,504
1,253
2024
Movements in the year:
£
Liability at 1 April 2023
1,253
Charge to profit or loss
1,251
Liability at 31 March 2024
2,504
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,728
66,003

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

TEAM FOSTERING
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
15
Members' liability

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

16
Operating lease commitments

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

2024
2023
£
£
Within one year
19,215
23,970
Between two and five years
28,823
48,038
48,038
72,008
17
Related party transactions

During the year, there had been payments to key management personnel amounting to £532,247 (2023 - £413,646).

Mark Alden, a director of Team Fostering Limited, is a trustee of the charity The Helen Middleton After Care. During the year, the charity reimbursed Team Fostering £72,169 for work performed by its Education Support Service that met with the stated aims of the charity.

18
Cash (absorbed by)/generated from operations
2024
2023
£
£
Surplus for the year after tax
6,372
68,708
Adjustments for:
Taxation charged
9,853
24,298
Investment income
(64,801)
(20,023)
Fair value gain on investment properties
(12,621)
-
0
Depreciation and impairment of tangible fixed assets
39,712
39,713
Movements in working capital:
(Increase)/decrease in debtors
(178,342)
150,625
(Decrease)/increase in creditors
(18,452)
62,913
Cash (absorbed by)/generated from operations
(218,279)
326,234
19
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
3,044,677
(176,379)
2,868,298
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