The trustees present their annual report and financial statements for the year ended 31 March 2025.
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 charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The main objectives of Family Care Adoption Services (FCAS) are:
To provide a comprehensive range of specialist services to anyone affected by adoption;
To provide these services directly to individuals and on behalf of Health & Social Care Trusts;
To contribute to the development of adoption service provision throughout Northern Ireland;
To develop innovative services for children and young people in care or adopted.
The principal activities of FCAS are:-
To recruit and prepare families in adoption for children offered to the charitable company for adoption placement;
To provide a comprehensive range of adoption support services in accordance with the provisions of the Adoption (Northern Ireland) Order 1987;
To provide a range of ancillary support services for adults and children involved in care or adoption proceedings.
The trustees have paid due regard to guidance issued by the Charity Commission for Northern Ireland in deciding what activities the charitable company should undertake.
The achievements of the charitable company during the year included:-
The charitable company continued to assess and approve prospective adoptive parents for placements. Most were also dually approved as foster carers so as to be available for those children whose legal proceedings were not compete at the time of placement. Five placements were made in the year with others at various stages of progress at the year end.
The charitable company continues to work with Family Routes and Adopt NI to deliver birth family counselling. This partnership has been in place since 2009, with Adopt NI joining in 2015. The programme was funded by the Health and Social Care board to September 2023 (now known as the Strategic Planning and Performance Group - SPPG) and continues to be funded on a rolling basis.
Achievements and performance (continued)
FCAS provides services to the five Health and Social Care Trusts in relation to providing family placements for children from care in need of adoption. This is a core service for the charity and is key in providing and maintaining financial stability as each placement generates an inter-agency fee. In a time of financial constraint however, the Trusts are increasingly likely to seek placements within their own resources as a first preference, which may present some uncertainty in future periods.
The charity continues to engage with the five Northern Catholic Diocese on an annual basis in relation to their contributions towards service provision to adopted and fostered adults, and to adults historically raised in children's homes which were regarded as operating under the auspices of the Catholic Church. This is an oversubscribed and increasing area of work for which the charity is active in seeking additional funding support, which to date have been unsuccessful. Ongoing service provision is therefore at risk due to the limited and uncertain nature of funding in this area.
The Next Step Project is a service that provides support to birth parents, and other relatives, whose children are going to be placed or have already been placed for adoption. This service continued in the year but is due to be retendered with future funding therefore uncertain.
The charity received core funding from the Department of Health towards salaried posts within the charity albeit at the 50% reduction rate applied in the 2023/24 financial year. Core funding has always been made available to the charity and is vital for financial stability; any further reduction in core funding would therefore put the charity at significant financial risk.
The charity's Life Story Project which was funded by the Lottery Community Fund for a five year period beginning in April 2019 ended in August 2024. The Project worked with Young People aged 11-22 who were in Care, had left Care or had been adopted from Care, and who had questions about their lives and experiences. The organisation made several applications for further funding to continue this important work but unfortunately were unsuccessful.
The charitable company's financial results are set out in detail on pages 11 to 29.
There is an overall deficit on funds this year of £48,573 (2024 - £7,401). The charitable company has maintained an overall strong financial position, especially in the current funding climate.
The accumulated funds (unrestricted and restricted) now stand at £451,404 (2024 - £499,977). This comprises restricted funds of £62,764 (2024 - £97,358) and unrestricted funds of £388,640 (2024 - £402,619). In the financial period an amount of £101,912 (2024 - £94,520) was transferred from unrestricted funds to restricted funds as a contribution from general reserves to make good a shortfall in restricted funds received in the year. In addition, an amount of £31,956 (2024 - £91,973) was transferred from restricted funds to unrestricted funds as these funds no longer carry a restriction on use. This resulted in a net transfer from unrestricted funds to restricted funds of £69,956 (2024 - £2,547).
The trustees acknowledge the ongoing support from the Department of Health, the Strategic Planning and Performance Group as well as other funders and supporters.
The charitable company is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 20 September 1989.
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:
As set out in the Articles of Association, the existing Directors may appoint any person willing to act as a Director. There is no maximum number of Directors, but there is a minimum of two.
The members of the Board of Directors are drawn from a variety of disciplines as it is considered that a varied membership provides the necessary skills, knowledge and experience to exercise good governance of the charitable company.
Directors induction and training
The charitable company has an induction programme for new Directors. This comprises of an information pack containing details of operation aspects of the charitable company, annual reports and audited accounts, an orientation session with Board of Director members and senior staff and observation of Board of Director meeting.
Organisation
The trustees administer the charitable company and appoint a Chief Officer to manage the day to day running of the charity. The Board meets approximately 5 to 6 times per year.
Risk management
The charitable company has produced a risk management schedule as part of a formal process to identify risks to which the charitable company is exposed. This is monitored and steps taken as appropriate in order to mitigate those risks. The main risk the charitable company faces is in relation to the availability of future funding, as disclosed at 1.2 in the notes to the financial statements. The directors continuously seek sources of funding for the charitable company.
Reserves policy
Reserves are necessary to bridge the funding gap between remunerating staff and the receipt of the funds generated by the professional services provided by those staff members. Whilst core and Diocesan support some of these costs, the charitable company has to rely on the use of its services by the Health and Social Care trusts and others, if it is to remain viable.
In view of the uncertainty over the extent and timing of the flow of such work, the trustees consider that an ideal level of unrestricted reserves to be between 3 to 4 months of running costs. The current level of reserves is £451,404 of which £388,640 is unrestricted.
Plans for the future
The charitable company will continue to develop specialist adoption and childcare services in partnership with statutory and voluntary bodes.
In accordance with the company's articles, a resolution proposing that GMcG Group Limited be reappointed as auditor of the company will be put at a General Meeting.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Family Care Adoption Services for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Family Care Adoption Services (the ‘charitable company’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet 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 charitable 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.
Material uncertainty related to going concern
We draw attention to note 1.2 in the financial statements, relating to uncertainty in relation to future funding levels and the reduction in core funding received from the Department of Health under its Core Grant Funding Scheme. As stated in note 1.2, these events or conditions, along with other matters as set out in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:
The nature of the industry and sector, control environment and business performance, including the company’s remuneration policies for directors, bonus levels and performance targets, if any;
Results of our enquiries of management about their own identification and assessment of the risks of irregularities;
Any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
Identifying, evaluating and complying with laws and regulations and whether they were aware of any instance of non-compliance;
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
Our procedures to respond to the risks identified included the following:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Enquiring of management concerning actual and potential litigation and claims;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Reading minutes of meetings of those charged with governance and reviewing correspondence with tax authorities; and
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Family Care Adoption Services is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 50 Knockbreda Road, Belfast, BT6 0JB.
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charitable 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.
These financial statements are prepared on the going concern basis. The trustees have a reasonable expectation that the charitable company will continue in operational existence for the foreseeable future, however, the trustees are aware of certain material uncertainties which may cause doubt on the charity's ability to continue as a going concern.
For the past three years, as with most organisations operating in the third sector in Northern Ireland, FCAS has operated with significant uncertainty in relation to funding levels, particularly in respect of the charity's funding from the public sector. In previous periods FCAS has received funding from the Department of Health under it’s Core Grant Funding Scheme. A reduced amount of funding was received under this scheme in both the current and prior year leading to a deficit being incurred in both years. For the 2026 financial year this funding has been fully withdrawn, creating a material uncertainty as to how FCAS can continue to carry out its activities in the future and its ability to continue as a going concern.
FCAS has built up a level of reserves in prior years that will enable the charity to continue with its current service provision in the immediate future. However, the trustees are undertaking a review of the charity’s financial viability beyond the next 6 to 12 months. Notwithstanding this uncertainty, the trustees have adopted the going concern basis of accounting in preparing these financial statements. Should FCAS cease as a charitable company at any point, a pension liability, as disclosed at notes 12 to 14 would arise, as the charity as a participating employer has a legal obligation to meet their share of the scheme’s deficit, on an annuity purchase basis, on withdrawal from the scheme. The amount of any potential obligation cannot be reliably estimated but is expected to be significant.
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 charitable company 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 once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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 charitable 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).
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 charitable 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 charitable company's balance sheet when the charitable 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, 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.
Financial liabilities are derecognised when the charitable company’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 charitable company 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.
The charity employs one employee for whom contributions are made to a multi-employer defined benefit scheme. The operators of the scheme have identified a potential deficit and have notified an annual additional contribution to be made under the terms of a 10 year recovery plan.
In the application of the charitable company’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.
The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.
Short term debtors are measured at transaction price, less any impairment. Impairment of short term debtors involves some estimation uncertainty.
The charitable company is a member of a multi-employer defined benefit pension scheme. Pension obligations have been provided in accordance with agreed upon contributions to the scheme and disclosures have been made in accordance with the requirements of FRS 102. Estimates and assumptions have been used in calculating the present value of future contributions recognised in the financial statements and in the scheme information disclosed at notes 12 to 14. The charitable company used external pension advisors to support the estimates and assumptions made.
Assessments, Child Placements and Post Adoption Support
Other Adoption Support Services
Life Story Project
Next Steps Project
Redundancy payment
Recruitment, training and seminars
Rent, rates and services
Insurance
Computer costs
Light and heat
General expenses
Repairs and maintenance
Stationery, printing and advertising
Telephone and postage
Travelling expenses
Adoption panel expenses
The average monthly number of employees during the year was:
The company participates in the scheme, a multi-employer scheme which provides benefits to some 521 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2023. This valuation showed assets of £514.9m, liabilities of £531.0m and a deficit of £16.1m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
From 1 April 2025 to 31 March 2028: | £2,100,000 per annum (payable monthly) |
Unless a concession has been agreed with the Trustee the term to 31 March 2028 applies.
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
From 1 April 2022 to 31 January 2025: | £3,312,000 per annum (payable monthly) |
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
| 31 March 2025 (£s) | 31 March 2024 (£s) | 31 March 2023 (£s) |
Present value of provision | 8,483 | 3,024 | 6,473 |
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
| Period Ending 31 March 2025 (£s) | Period Ending 31 March 2024 (£s) |
Provision at start of period | 3,024 | 6,473 |
Unwinding of the discount factor (interest expense) | 80 | 248 |
Deficit contribution paid | (3,083) | (3,699) |
Remeasurements - impact of any change in assumptions | 54 | 2 |
Remeasurements - amendments to the contribution schedule | 8,408 | - |
Provision at end of period | 8,483 | 3,024 |
INCOME AND EXPENDITURE IMPACT
| Period Ending 31 March 2025 (£s) | Period Ending 31 March 2024 (£s) |
Interest expense | 80 | 248 |
Remeasurements – impact of any change in assumptions | 54 | 2 |
Remeasurements – amendments to the contribution schedule | 8,408 | - |
ASSUMPTIONS
| 31 March 2025 % per annum | 31 March 2024 % per annum | 31 March 2023 % per annum |
Rate of discount | 4.84 | 5.31 | 5.52 |
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:
DEFICIT CONTRIBUTIONS SCHEDULE
Year ending | 31 March 2025 (£s) | 31 March 2024 (£s) | 31 March 2023 (£s) |
Year 1 | 3,027 | 3,083 | 3,699 |
Year 2 | 3,027 | - | 3,083 |
Year 3 | 3,027 | - | - |
Year 4 | - | - | - |
Year 5 | - | - | - |
Year 6 | - | - | - |
Year 7 | - | - | - |
Year 8 | - | - | - |
Year 9 | - | - | - |
Year 10 | - | - | - |
The company recognises a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.
It is these contributions that have been used to derive the company's balance sheet liability.
Deferred income is included in the financial statements as follows:
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Diocesan Capital Fund - the various diocese have waived a loan which was made to FCAS some years ago on condition that the amount be retained by the charity to be used for its charitable purposes.
Life Story Project - this project finished during the year. It provided assistance for young people, aged 11 to 22, who are in care, leaving care or have been in care. The project was funded by the Lottery Community Fund.
Next Steps Project - this project provides support to birth families and their relatives whose child has been or is being placed for adoption. The project is funded by the Health & Social Care Board.
DoH Core Funding - the Department of Health provided funding towards the salaries of three employees.
Donations - The Rank Foundation provided a grant in the current year for salary costs of one employee.
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.
In the financial period an amount of £101,912 (2024 - £94,520) was transferred from unrestricted funds to restricted funds as a contribution from general reserves to make good a shortfall in restricted funds received in the year. In addition, an amount of £31,956 (2024 - £91,973) was transferred from restricted funds to unrestricted funds as these funds no longer carry a restriction on use.
A portion of grants received may become repayable if the charity fails to comply with the terms of the relevant letters of offer.
The charity may, in the future, be required to make additional pension contributions in respect of the multi-employer scheme deficit as disclosed in notes 12 to 14.
There were no disclosable related party transactions during the year (2024 - none).