Company registration number 09039776 (England and Wales)
SUNDERLAND GP ALLIANCE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SUNDERLAND GP ALLIANCE LIMITED
COMPANY INFORMATION
Directors
M Weatherhead
R Mackinnon
J Bell
A Place
G R R Bethapudi
F Khalil
T Lucas
C Aitken
(Appointed 1 August 2023)
Company number
09039776
Registered office
Second Floor Business & Innovation Centre
Wearfield
Sunderland
SR5 2TA
Accountants
RMT Accountants and Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Auditor
Sumer Auditco Limited
Unit 2
Gosforth Park Avenue
Newcastle Upon Tyne
NE12 8EG
SUNDERLAND GP ALLIANCE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 23
SUNDERLAND GP ALLIANCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Fair Review of the Business
Sunderland GP Alliance (‘SGPA’) is a clinically owned not-for-profit organisation led by the GP practices of Sunderland, helping GPs work collaboratively for the benefit of patients and staff. Founded in 2014, SGPA provides a portfolio of NHS funded services in Sunderland. These services include:
Enhanced Access, where over 58,600 appointments were delivered on evenings and weekends to improve access into General Practice;
Clinical Pharmacy, focussing on prescribing issues associated with patients prescribed multiple medications (polypharmacy), those prescribed addictive medications, and the severely frail, including care home residents;
Social Prescribing, where over 7,000 patients were helped with non-medical issues such as social isolation, financial support, weight management, and physical inactivity.
Many of these services utilise staff recruited under NHS England’s Additional Roles Reimbursement Scheme (ARRS).
SGPA also run practices in Silksworth, South Hylton, Barmston and at The Galleries shopping centre, where we aim to provide the best possible services for patients. All services have been rated as ‘good’ by the Care Quality Commission. From April 2023, patients have benefitted from a new streaming tool, AllianceCare. This ensures rapid and consistent access to care whether contact is by phone, face-to-face, or online, and that access is commensurate with clinical need ensuring that patients requiring more immediate care are prioritised accordingly.
Meanwhile, a number of SGPA's other services support the wider system to function effectively and sustainably. These include the delivery of decision support tools for clinicians, the recruitment and retention of GPs in an area where recruitment has been historically difficult, and providing additional resilience to address winter pressures.
SUNDERLAND GP ALLIANCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal Risks and Uncertainties
The management of the business and the execution of the company’s strategy are subject to a number of risks. The board reviews these risks and puts in place policies to mitigate them.
Recruitment
Primary care continues to suffer from a shortage of clinicians and, in particular, General Practitioners. As such, there is a risk that the organisation becomes overly reliant on the locum workforce at a significant additional cost to the business. To mitigate this risk, the company has set itself the ambition of being an employer of choice, and operates attractive terms and conditions, including an enhanced benefits package, and an open and inclusive culture as evidenced by its achievement of The Sunday Times Best Places to Work award in 2024. Meanwhile, the organisation is actively diversifying its workforce through the use of allied health professionals, has established itself as a training practice for qualifying GPs, and is a Tier 2 sponsor for the employment of non-UK nationals.
System Reorganisation
The Government’s Health and Care Act received royal assent on 28th April 2022. Amongst other changes, the Act has transferred commissioning responsibilities from Clinical Commissioning Groups (CCGs) to a regional Integrated Care System (ICS). The structures supporting the ICS to deliver its responsibilities remain under development, but the organisation is actively engaged at both a local and national level to understand how best to respond to any changes to our operating environment. In particular, the company is leading on the development of collaborative working in primary care at a regional level.
Financial
The NHS is subject to significant budgetary pressures and it is possible that demanding efficiency targets will be set at system level for achievement in the 24/25 financial year. SGPA ensures that its structure is flexible and agile so that it can respond appropriately to any changes in funding. Meanwhile, any costs associated with adapting the business to a new operating environment are anticipated and fully provided for.
Patient Confidentiality and GDPR
The company is subject to strict guidelines on the collection, processing, and storage of patient data. It must also ensure compliance with the Common Law Duty of Confidentiality. All staff are required to protect patient information, and all manual and computerised records are stored in secure environments with access strictly controlled.
SUNDERLAND GP ALLIANCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Key performance indicators
The directors consider the following to be the key measures of the company’s performance.
Financial
Revenue has fallen by 6.9% to £15.2m. This reflects the reduction in the number of coronavirus related vaccines delivered by SGPA in 23/24 as the vaccination of the elderly and vulnerable became part of individual practices' core operations.
The Alliance operates on a break-even basis, and whilst an operating loss of £223,642 was sustained in the year (2023: a surplus of £33,830), this reflects a number of non-recurrent costs, and the board anticipates that the organisation will return to breakeven in 2024/25.
Non-Financial
Protecting our local population through maximising vaccine uptake, particularly in relation to COVID-19 and flu.
Reporting, reviewing and learning from significant events and complaints in a culture of continuous improvement.
Developing and implementing appropriate audit cycles to monitor and improve clinical quality.
Delivering on the requirements of the Network Directed Enhanced Service (DES), including the number of Structured Medication Reviews and social prescribing referrals, on behalf of PCNs.
Meeting the contractual obligations of our General Medical Services (GMS), Alternative Provider of Medical Services (APMS), and Standard NHS contracts, including those related to appointment availability, training and development of staff, and the recruitment and retention of clinicians.
Achieving a minimum CQC rating of ‘good’ for all qualifying services.
Future developments
The organisation continues to develop new and innovative services to improve the offer for patients and member practices. In recent months, the range of services available to patients within our enhanced access service has continued to expand through, for example, access to ECGs and shingles vaccinations, whilst our social prescribers now offer health checks and smoking cessation support. Meanwhile, SGPA has developed the infrastructure to support at-scale research activities across its member practices and looks forward to further development of its services in 2024.
R Mackinnon
J Bell
Director
Director
01 August 2024
01 August 2024
SUNDERLAND GP ALLIANCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company is the provision of services to support general medical practice in Sunderland.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M Weatherhead
R Mackinnon
J Bell
A Place
J Sumner
(Resigned 31 October 2023)
G R R Bethapudi
F Khalil
T Lucas
C Aitken
(Appointed 1 August 2023)
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the company will be put at a General Meeting.
SUNDERLAND GP ALLIANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Statement of directors' responsibilities
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 profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
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
R Mackinnon
J Bell
Director
Director
Approved by the board on 01 August 2024
SUNDERLAND GP ALLIANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUNDERLAND GP ALLIANCE LIMITED
- 6 -
Opinion
We have audited the financial statements of Sunderland GP Alliance Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit 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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SUNDERLAND GP ALLIANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUNDERLAND GP ALLIANCE LIMITED
- 7 -
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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
SUNDERLAND GP ALLIANCE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUNDERLAND GP ALLIANCE LIMITED
- 8 -
Capability of the audit in detecting irregularities, including fraud
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence and legal costs incurred; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
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.
Maxine Pott
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
Statutory Auditor
Unit 2
Gosforth Park Avenue
Newcastle Upon Tyne
NE12 8EG
01 August 2024
SUNDERLAND GP ALLIANCE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
15,205,341
16,332,854
Cost of sales
(12,376,292)
(12,800,333)
Gross profit
2,829,049
3,532,521
Administrative expenses
(3,052,691)
(3,498,691)
Operating (loss)/profit
6
(223,642)
33,830
Interest receivable and similar income
318,049
105,514
Profit before taxation
94,407
139,344
Tax on profit
8
(22,005)
(21,500)
Profit for the financial year
72,402
117,844
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SUNDERLAND GP ALLIANCE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
Profit for the year
72,402
117,844
Other comprehensive income
-
-
Total comprehensive income for the year
72,402
117,844
SUNDERLAND GP ALLIANCE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
68,423
112,333
Investments
10
2
2
68,425
112,335
Current assets
Debtors
12
4,126,101
4,695,937
Cash at bank and in hand
9,954,922
11,604,603
14,081,023
16,300,540
Creditors: amounts falling due within one year
13
(13,633,182)
(15,958,034)
Net current assets
447,841
342,506
Total assets less current liabilities
516,266
454,841
Provisions for liabilities
(17,106)
(28,083)
Net assets
499,160
426,758
Capital and reserves
Called up share capital
16
2,560
2,560
Profit and loss reserves
496,600
424,198
Total equity
499,160
426,758
The financial statements were approved by the board of directors and authorised for issue on 01 August 2024 and are signed on its behalf by:
R Mackinnon
J Bell
Director
Director
Company Registration No. 09039776
SUNDERLAND GP ALLIANCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
2,560
306,354
308,914
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
117,844
117,844
Balance at 31 March 2023
2,560
424,198
426,758
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
72,402
72,402
Balance at 31 March 2024
2,560
496,600
499,160
SUNDERLAND GP ALLIANCE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
18
(1,919,169)
(1,952,401)
Income taxes paid
(28,738)
(739)
Net cash outflow from operating activities
(1,947,907)
(1,953,140)
Investing activities
Purchase of tangible fixed assets
(19,823)
(59,914)
Interest received
318,049
105,514
Net cash generated from investing activities
298,226
45,600
Net decrease in cash and cash equivalents
(1,649,681)
(1,907,540)
Cash and cash equivalents at beginning of year
11,604,603
13,512,143
Cash and cash equivalents at end of year
9,954,922
11,604,603
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information
Sunderland GP Alliance Limited is a private company limited by shares incorporated in England and Wales. The registered office is Second Floor Business & Innovation Centre, Wearfield, Sunderland, SR5 2TA.
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 represents amounts receivable for the provision of services to support general medical practice in Sunderland. Turnover is attributable to the continuing principal activity of the company and arose wholly within the United Kingdom.
Contractual funding received from the NHS in relation to Alternative Provider Medical Services and General Medical Services is recognised as revenue when costs are incurred in respect of such services. Any excess funding received is deferred and recognised in future periods.
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:
Medical equipment
33.33% straight line
Computer equipment
33.33% straight line
Fixtures and fittings
25% 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 profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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).
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
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.
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, 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 profit or loss.
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 profit or loss.
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.
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities
Basic financial liabilities, including creditors 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is 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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Past and present employees are covered by the provisions of the NHS Pension Scheme. The scheme is an unfunded, defined benefit scheme that covers NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS Body of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Deferred income
Contractual funding received from the NHS in relation to Alternative Provider Medical Services and General Medical Services is recognised as revenue when costs are incurred in respect of such services. Any excess funding received is deferred and recognised in future periods. The directors exercise their judgement when determining the level of income that is deferred to ensure income recognised in line with company accounting policy.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Determining residual values and useful economic lives of tangible fixed assets
The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices. The carrying amount of tangible fixed assets at the reporting end date was £68,423 (2023 - £112,333).
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
General medical services
15,205,341
16,332,854
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Other revenue
Interest income
318,049
105,514
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
15,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
250
235
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
8,218,280
8,319,120
Social security costs
768,345
762,431
Pension costs
985,561
918,326
9,972,186
9,999,877
6
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
15,000
Depreciation of owned tangible fixed assets
63,733
82,991
(Profit)/loss on disposal of tangible fixed assets
-
5,873
Operating lease charges
1,394,303
1,307,179
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
165,546
161,030
Company pension contributions to defined contribution schemes
15,196
12,565
180,742
173,595
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
32,982
28,738
Deferred tax
Origination and reversal of timing differences
(10,977)
(7,238)
Total tax charge
22,005
21,500
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
94,407
139,344
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
23,602
26,475
Tax effect of expenses that are not deductible in determining taxable profit
74
177
Tax effect of income not taxable in determining taxable profit
(3,415)
Unutilised tax losses carried forward
(1,671)
Effect of change in corporation tax rate
(1,737)
Taxation charge for the year
22,005
21,500
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
9
Tangible fixed assets
Medical equipment
Computer equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2023
92,352
355,245
116,296
563,893
Additions
18,319
1,504
19,823
At 31 March 2024
92,352
373,564
117,800
583,716
Depreciation and impairment
At 1 April 2023
79,122
279,346
93,092
451,560
Depreciation charged in the year
4,811
46,485
12,437
63,733
At 31 March 2024
83,933
325,831
105,529
515,293
Carrying amount
At 31 March 2024
8,419
47,733
12,271
68,423
At 31 March 2023
13,230
75,899
23,204
112,333
10
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
11
2
2
11
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
SGPA Clinical Services Limited
1
Ordinary shares
100.00
SGPA Federated Services Limited
2
Ordinary shares
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Second floor Business & Innovation Centre, Wearfield, Sunderland, UK SR5 2TA
2
Second floor Business & Innovation Centre, Wearfield, Sunderland, UK SR5 2TA
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,696,507
2,594,995
Other debtors
1,369
116,066
Prepayments and accrued income
2,428,225
1,984,876
4,126,101
4,695,937
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
808,899
906,198
Corporation tax
32,982
28,738
Other taxation and social security
11,063
Deferred income
11,460,300
13,260,393
Other creditors
115,446
855,375
Accruals
1,204,492
907,330
13,633,182
15,958,034
14
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
17,106
28,083
2024
Movements in the year:
£
Liability at 1 April 2023
28,083
Credit to profit or loss
(10,977)
Liability at 31 March 2024
17,106
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
918,326
916,292
Past and present employees are covered by the provisions of the NHS Pension Scheme. The scheme is an unfunded, defined benefit scheme that covers NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS Body of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period.
Contributions totalling £25,213 (2023 - £852,728) were payable to the fund at the balance sheet date and are included within other creditors.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
71
71
71
71
Ordinary B shares of 1p each
248,883
248,883
2,489
2,489
248,954
248,954
2,560
2,560
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases and associated charges, which fall due as follows:
2024
2023
£
£
Within one year
202,902
238,536
Between two and five years
622,067
687,914
In over five years
347,488
434,200
1,172,457
1,360,650
SUNDERLAND GP ALLIANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
18
Cash absorbed by operations
2024
2023
£
£
Profit for the year after tax
72,402
117,844
Adjustments for:
Taxation charged
22,005
21,500
Investment income
(318,049)
(105,514)
(Gain)/loss on disposal of tangible fixed assets
-
5,873
Depreciation and impairment of tangible fixed assets
63,733
82,991
Movements in working capital:
Decrease/(increase) in debtors
569,836
(1,504,074)
Decrease in creditors
(529,003)
(352,227)
Decrease in deferred income
(1,800,093)
(218,794)
Cash absorbed by operations
(1,919,169)
(1,952,401)
19
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
11,604,603
(1,649,681)
9,954,922
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