The Trustees present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
The Charity is a company limited by guarantee and was originally formed as Crewe and District Spastics Society on 16 October 1953. The Charity was formed into a limited company, Crewe and District Spastics Society Limited on 15 November 1999 and its name was changed to The Emmie Dixon Home Limited on 18 July 2000. The company is a registered charity, number 1084627 (affiliated to Scope) and is registered under the company registered number 3877541.
The charity is governed by its Memorandum and Articles of Association dated 16 October 1953 and updated 4 November 1999.
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:
The trustees all of whom are directors, meet on a bi-monthly basis. The day to day management of the charity is delegated to the Home Manager and the finance function is performed by John Hancock (trustee). All income and expenditure is subject to approval at a trustees meeting.
The Charity's objective as set out in the Memorandum and Articles of Association is the running of a residential home and provision of care and support primarily for individuals with learning difficulties and other complex issues. The charity strives to maintain standards that enable the residents to enjoy life in a happy and caring atmosphere within the home. The policies adopted in furtherance of these objects are set out in the notes to the accounts and there has been no change in these during the year.
Similar to previous years the priority during the year was to ensure the charity continues to provide a high standard of care for its residents and that its facilities continue to be well maintained in order to meet this high standard. In planning the activities for the year the trustees kept in mind the Charity Commission's guidance on public benefit at the trustee meetings.
The residential home is of benefit to the general public in that its residents are well cared for and is available to those in need, subject to agreement between The Home and the sponsor. With only 12 rooms available to residents the places are determined by the manager and the sponsor (Cheshire East Council) and the charity prides itself in having a friendly home environment for its residents. The last Care Quality Commission (CQC) report has deemed the home as good. Details can be found on the CQC website. During August 2021, the CQC gathered information about the home, reviewed it and deemed that the home should retain its "good" status and did not require an external visit. To date this remains current.
The charity struggled to achieve some of its objectives for the year and therefore its main priority for next year is to strive towards achieving maximum occupation, continual improvement to the home, the continuation of the high standard of care provided by all our staff and the absolute priority of safeguarding our residents.
The results of the Charity's activities are shown in the statement of financial activities on page 5 and these results show net outgoing of resources for the year of £73,278, completely reversing the previous year's positive contribution of £20,374 as discussed below.
It is the policy aim of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The unrestricted funds that are not tied up in tangible fixed assets have dropped to £118,558 (2023: £192,423). This is concerning and somewhat unacceptable however, it must be remembered that around 80% of our costs are fixed and increases in employment costs (the minimum wage), energy costs etc.. are well documented. In addition, our sponsor Cheshire East Council would only pay a weekly fee of some £300 a week less than our required fees as set out in our strategy. This was hardly surprising considering again the well documented state of Local Government finance! In addition, we operated with two long term and ongoing vacancies.
The main priority for next year is to continue to provide a high standard of care and support for the residents within the home while ensuring the charity operates economically, efficiently and effectively and continues to achieve a "good" CQC report. This can only be achieved by our excellent staff and sound financial management.
Currently, our home is two occupants down, however, we are actively trying to address this situation.
We continue to develop our 3 year financial strategy / fee structure. The strategy considers estimates of all known expenditure increases and calculates the fee structure based upon those estimates up to 2027. We are disappointed that our level of reserves have declined and we endeavour to increase our levels of reserves in order to protect reserves cover from unforeseen risks (spikes in expenditure, the loss of residents, the uncertainly concerning the future level of the minimum wage and the threat of losing residents). Our strategy factors in the above to some extent but cannot be accurately predicted, neither can any uplift in fees from our sponsor! More recently the cost of living (fuel and food) is of major concern!
The trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of The Emmie Dixon Home Limited (the Charity) for the year ended 31 March 2024.
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Emmie Dixon Home Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is The Emmie Dixon Home, 149 Richmond Road, Crewe, Cheshire, CW1 4AX, United Kingdom.
The accounts have been prepared in accordance with the Charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
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.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors 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.
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.
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be reclaimed, and is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its objectives. It includes both costs that can be allocated directly to such activities and the costs of an indirect nature necessary to support them. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Support costs are those costs incurred directly in support of expenditure on the objects of the company.
Governance costs include those costs associated with administering the charity and meeting the constitutional and statutory requirements of the charity and include the independent examination fee for the charity.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment but not accrued as expenditure.
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:
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.
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).
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.
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.
Financial assets classified as other financial assets are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.
Financial assets with fixed or determinable payments and fixed maturity dates that the Charity has the positive intent and ability to hold to maturity are classified as held to maturity investments.
Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting 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 net income/(expenditure) for the year.
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 net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity 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.
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.
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 or in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through terms of an appeal
Designated funds are general funds which have been set aside by the Trustees at their discretion for a specific purpose.
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.
Home income
Home income
Fee income
Professional fees
Repairs and maintenance
Cost of meals and maintenance of residents
Motor expenses
Lighting and heating
Rates and insurance
Cleaning and laundry
Printing, postage, stationery and advertising
Telephone and mobile phone
Bank charges
Registration fees and sundry expenses
Leasing and hire of equipment
Governance costs includes payments for independent examination fees of £900.
During the year Mr J Hancock a Trustee was reimbursed £3,020 of expenses in respect of repairs and maintenance work for the charity. (2023 Mr J Hancock was reimbursed £1,425). Two trustees received remuneration during the year Mr J Hancock received £22,927 (2023: £21,976) and Mr J Brown received £11,142 (2023: £10,181).
During the year the charity made payments in respect of the trustees personal telephone bills which were, in total, £1,475 (2023 £1,736). These payments were agreed by all of the trustees at the general meetings.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The title deeds to the property at 149 Richmond Road, Crewe are in the name of Scope purchased under a conyeyance dated 14th September 1954. The cost of this property as shown above, includes substantial alterations and improvements made over the years which have been paid for by the charity. The trustees have negotiated with Scope a 35 year lease at a nominal rent of £1 per annum. There are currently 9 years remaining on the lease.
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions, other than those already disclosed in note 9 relating to trustees, during the year (2023 - none).