The trustees present their annual report and financial statements for the year ended 31 March 2026.
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, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
Nottingham Mencap aims to enhance the quality of life of all those with a learning disability and their carers' within the Greater Nottingham area. The Charity is committed to delivering comprehensive and person-centred support and to improving choice and inclusion into our communities.
We will achieve this by working collaboratively and in partnership with others to provide information and advice, services and support, campaigns, friendship and fun.
In order to meet the objectives we:
Work strategically, complementarily, and collaboratively or with others rather than independently and alone, in order to best achieve our mission.
Lever the strengths of Royal Mencap and our local history, utilising their expertise, networks, and opportunities.
Develop a focused range of high-quality sustainable services that capitalize on our strengths and make a significant impact on the quality of life for individuals with a learning disability and their families.
Build public awareness about Nottingham Mencap and the services, products, campaigns, and involvement opportunities that we provide and increase peoples' use of all that we offer. Ensure we expand our membership and strengthen our Council of Management.
Develop and pursue a balanced long-term income and fundraising strategy that supports the sustainable growth and independence of Nottingham Mencap.
Continue to develop organisational effectiveness, quality, efficiency, culture, capacity and competitiveness, and the skill and capability of its staff and volunteers.
Retain a flexible approach, with a continuous improvement and learning culture, so that Nottingham Mencap can adapt and respond successfully to a constantly changing external environment and to new opportunities.
Ensure we run our services from buildings that are fit for purpose and sufficiently adaptable to allow us to meet our future need.
The trustees confirm that they have complied with the requirements of section 7 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
This past year has been a story of solidifying the positive impact Nottingham Mencap has with the people we support, their carers, family members and the community. We remain proud and happy with our new flagship building, demonstrating a willingness to work in partnership, use community assets and explore new ideas.
As our staff team grows, so does the importance of ensuring that our values and expectations remain embedded. We have developed a document called ‘The Best of Us’ which talks through our history, about the families coming together to improve the lives of their children, about our journey and about how we engage with the people we support. This document is a blueprint of what we do provides insight into all the services we deliver and how we deliver them. This document forms part of all new staff inductions and we are now in the process of producing a front-facing document for the public, including easy read formats.
Through the year we looked at how to future proof against financial pressures by successfully applying for a grant from the YiF for a brand new, fully electric minibus to reach out to young people unable to access services, and a mixed loan and grant fund to finance the purchase and instillation of solar panels and roof lights. The minibus is expected to be delivered in the summer of 2026 and the solar panels were installed in March 2026, so we will be seeing the benefit of reduced bills in the coming months and years.
Services have remained strong and, in most cases, improved. Income raised from fees has grown from £1,291,301 in 2024-25 to £1,500,698 this financial year. Our expenditure of £1,693,462 left a net expenditure of £78,270. Tangible assets are standing at £639,300 after a revaluation of the buildings, and total charity funds are £1,169,422.
It is a privilege to introduce Nottingham Mencap’s annual report for 2025–26.
This has been a year of continued development, achievement and change for Nottingham Mencap. Following the significant investment in our Clarence Street home, we have continued to build on that foundation, developing our services and strengthening the organisation so that we are well placed to meet the needs of people with learning disabilities and autism and their families, both now and in the future.
This year has also seen changes within our governance arrangements, including the appointment of a new Chair and the recruitment of two new Trustees, bringing our Council of Management to nine Trustees. We welcome the additional skills, experience and capacity this brings as we continue to develop our approach to governance, oversight and strategic direction.
We are proud that Nottingham Mencap is now supporting nearly 400 people across our services. Demand continues to develop, including within our youth provision, where we have expanded into a second building because of the number of people wanting to participate. This growth is encouraging, whilst also highlighting the importance of ensuring that our services are appropriately funded and sustainable.
A particularly important area of development this year has been strengthening the voice of the people we support. Groups including SPLAT and Your Voice provide opportunities for people with learning disabilities to share their experiences, raise awareness and influence discussions about services. We have also worked closely with NHS colleagues across primary and secondary care, creating opportunities for people with learning disabilities to contribute to consultation and helping statutory services better understand their experiences and needs.
We have continued to develop our systems and processes to support quality, compliance and organisational consistency. The implementation of the QCS Quality and Compliance System and The Best of Us provides a framework for supporting good practice, consistency and continuity across the organisation. The introduction of the Nourish CRM within supported living is also an important development in supporting the recording, management and oversight of information relating to the people we support.
We have continued to invest in our future and in the sustainability of our services and premises. We successfully secured Youth Investment Fund support for a new fully electric minibus, due to be delivered in summer 2026. Investment through the Renewable Energy Fund has also enabled solar panels and insulated and electric roof lights to be installed at Clarence Street.
Our partnership with the NHS to support health checks, including weight management and blood pressure checks, reflects our commitment to improving health and wellbeing and supporting people to make healthy lifestyle choices.
The year has also presented challenges. Increases in the Real Living Wage and employer National Insurance contributions have increased our employment costs, while the ending of the Digital Inclusion contract has removed an established source of income. We have responded by continuing to explore alternative sources of funding, including successfully securing an Essential Skills Community Support Grant, and by appointing a Fundraising and Marketing Manager to strengthen our fundraising and communications activity.
As Chair, I am proud of what Nottingham Mencap has achieved during 2025–26 and look forward to working with Trustees, staff, volunteers and our wider community as we continue to develop the organisation in the years ahead.
We remain conscious of the wider financial pressures facing local authorities and the impact these can have on organisations that rely on public funding. Maintaining financial resilience therefore remains an important priority for Nottingham Mencap. We need to remain adaptable, flexible and responsive to changes in our operating environment, whilst continuing to explore opportunities to diversify income and develop sustainable services.
Throughout the year, Trustees have continued to provide oversight and appropriate challenge across areas including strategy, finance, risk, safeguarding, quality and organisational performance. We recognise that good governance is an ongoing process of learning, review and development, and we remain committed to ensuring that our arrangements continue to support Nottingham Mencap's charitable purposes and public benefit.
I am particularly proud of the commitment of our staff and volunteers. Their professionalism, compassion and dedication remain central to the experience of the people we support and to everything Nottingham Mencap seeks to achieve.
As Trustees, our ambition is clear. We want Nottingham Mencap to remain an organisation that people with learning disabilities and autism choose, trust and value; an organisation that families and carers can rely upon; and an organisation where talented people want to work and volunteer.
There is much still to do. We will continue to develop our services, strengthen quality and outcomes, diversify our income, invest in our people, listen to the people we support and ensure that Nottingham Mencap remains sustainable, responsive and well governed.
I would like to thank Danny Hewis (CEO), our senior leadership team, all our staff, volunteers, Trustees, members, families, partners and supporters for their contribution during the year.
Most importantly, I would like to thank the people who use our services. Their experiences, views and aspirations must remain at the centre of everything we do.
Our total income has increased to £1,615,192 from £1,533,279 in 2025-26, which is a great achievement, with fees from direct service delivery increasing by £209,397. This represents an increase of people we are supporting and a small increase in the fees, which are dictated by the local authority.
As predicted, the increase in National Insurance contributions and the Real Living Wage has seen a larger increase in wages compared to income received from fees. It was decided at Board level that due to the success of the organisation financially, we would invest in those who are working directly with the people we support. As recognition of the value of good staff we increased the wages of our lowest paid employees to a level above the Real Living Wage. This has contributed to a small loss this financial year, but we are confident that with a continuation of robust management, this next financial year will return to a small surplus.
Our financial reserves dropped as they were used to invest in the new premises, but through robust financial management they remain at £517,587. In the accounting period we have formally revalued the Clarence Street building which has been revalued as if purchased on the open market for general use, this has resulted in a revised valuation of £595,000 a reduction of £875,265. The significant reduction is a non cash item and recognises the difference between a standard use building and the building developed for it's optimal use by Nottingham Mencap. Given this significant reduction in valuation the total funds of the charity decreased from £2,122,957 in 2024-25 to £1,169,422 in 2025-26 despite successful service delivery in the year.
The trustees have forecast the level of free liquid reserves (excluding designated funds, restricted funds and fixed assets) the charitable company will require to sustain its operations in the event of curtailment or reduction of income streams. The reserves policy was updated during the year to reflect the growth of the organisation and to reflect a reasonable level of reserves for a charity to maintain. The trustees consider the most appropriate level of free liquid reserves on 31 March 2026 to be either 6 months operating costs, or £500,000, whichever is the lesser amount. The actual free reserves (excluding designated, restricted funds and assets) on 31 March 2026 were £502,679 (£614,707 in 2025, as restated) which the trustees regard as satisfactory. However, whilst the current level of liquid reserves may prove sufficient, it is the trustees view that it is prudent to ensure there are sufficient liquid reserves to provide financial flexibility.
To ensure that all reserves accumulated will be used to meet the following objectives:
To resource the central core functions of the organisation. This includes management, administration and building running costs;
To assist in piloting new and innovative areas of work that will not attract mainstream funding and support current services that suffer loss or reduced income streams;
Provision of public benefit.
The Reserves Policy is to be reviewed during the next period to ensure it meets our needs going forward.
As members of the Council of Management we have an overall responsibility for ensuring that the charity has appropriate system of controls, financial and otherwise. We are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Companies Act 2006. We are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:
the charity is operating efficiently and effectively.
its assets are safeguarded against unauthorised use or disposition.
proper records are maintained and financial information-used' within the charity or for publication is reliable.
the charity complies with relevant laws and regulations.
The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:
the development of a strategic plan and an annual budget approved by Trustees.
regular consideration by the Trustees of the financial results, variance from budgets, non-financial performance indicators and benchmarking reviews.
delegation of authority and segregation of duties.
identification and management of risks and external scrutiny.
Overall, we plan to continue to deliver growth in services across Nottinghamshire that help improve the health, wellbeing, independence, and quality of life for individuals and their families with learning disability/autism. We will pursue the key strategies contained on page 3 of this report to enable us to do this.
With our new Chief Executive embedded in his new role and the integration of new Trustees there will be a focus on strategic development, diversifying income and modernizing systems. Through updating the way we produce and manage policies and procedures we will ensure that we continue to be responsive to change and remain compliant.
The numbers of people who need support continues to grow, with fees to fund that support, falling in real terms. There will be a continued effort to ensure that people who need our support will have the opportunity to access our activities, but the realisation that there may be those who we are not able to support.
By purchasing a new electric minibus and the installation of solar panels we will be able to reduce our energy bills and reach young people who cannot currently access services.
During periods of financial uncertainty, the importance of collaboration is more important. During this next year we will work on developing a strategic plan to focus on what our priorities are, which will certainly include the development of strategic partnerships.
We will also be developing the work we have started on user involvement. We will seek more input and feedback from the people we support and beyond to ensure that the voices of those who use our services, and are often some of the most unheard in society, will be heard.
We will continue to develop service quality and operate at an ‘outstanding’ CQC level. The implementation of a new CRM and quality and compliance system will support the evidence of this. We know our staff are outstanding, now we need to evidence all other aspects.
This past year has been difficult financially, and we see similar stories across the sector, throughout the country. In addition to a fall in income was the increase in National Insurance contributions, a decrease in the threshold of those having where National Insurance is relevant and a significant increase in the Real Living Wage. These things are out of our control, as was the additional financial strain of our supported living property having a void for the final 4 months of the year. A void within a property not only reduces the income, but creates a deficit. This is due to the terms in the contract where the shared support is divided between the number of residents. When there is a void, the costs are covered by the organisation running the care.
With this in mind, the board were aware that the year would end in a deficit. This coming year is looking positive with regards to the supported living property, where there will be someone placed within the early part of 2026-27. The board, the CEO and the senior management team are working closely together to ensure changes are made to avoid a 2nd year of deficit. The team have continued to ensure robust financial measures are in place and through service development, focus and partnership we are confident we can continue to thrive.
We aim to invest further in our staff s training, supervision and support and ensure we have a professional, reliable workforce. We will attempt to remain a 'living wage' employer and provide a safe and supportive work environment, with Nottingham Mencap being a place where skilled and experienced individuals choose to work.
During the next five years we will continue to monitor our financial position and the outlook. We will be proactive and responsive to ensure we remain solvent and able to address emerging threats and opportunities. We aim to secure more diverse sources of income to enable us to support more individuals who are not in receipt of funding.
We will continue to seek funding to commence new services and trial new ways of working to ensure we continually improve the standard and choice. By continuing to listen to service users, their families, and our staff we try to improve what we do well, change what we do not do so well, and be open and honest about all we do. Everyone connected to the organisation is valued and appreciated. We are proud of what we do, and the people we support. We will continue to work hard to be an organisation that Nottingham, Nottinghamshire and its surrounding areas can be proud of.
Thank you
Nottingham Mencap is extremely grateful for the vital and welcome support it receives. We would particularly like to thank the following for their major contribution to our work during the year ended 31 March 2026:
Nottingham Mencap members
Nottingham Mencap volunteers
Leigh Gunnell and colleagues at Trent Electrical
Dulux Decoration Centre
Community Accounting Plus
Rogers Spencer
J Greenwood
Rothera Family
This list is in no way exhaustive, and the Society is also extremely grateful for the support of numerous individuals and many other donations and contributions of support received during this period.
The charity is a company limited by guarantee and registered charity. It is operated under the rules of its memorandum and articles of association dated 27/02/1990 and most recently amended 27/06/2013 . It has no share capital and the liability of each member in the event of winding-up is limited to £1.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The Council of Management is appointed by the charity members and serve for no set period and retire in rotation. The Articles provide for a maximum of sixteen members, including Honorary Members. At the end of each Annual General Meeting all the members of the Council of Management whose period of service is due to end during the calendar year in which that Annual General Meeting is to be held, shall retire from office but they may be re-elected or re-appointed.
The chair of the Council of Management is nominated by the Council of Management and elected by the membership.
The Council of Management may delegate any of its powers or the implementation of its resolutions to committees to facilitate effective operations.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction.
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
The Council of Management holds at least four quarterly ordinary meetings each year at which its members agree strategy and areas of activity for the charity including consideration of service delivery, investment, reserves, and risk management policies.
The charity trustees work in partnership with and oversee the work of the Chief Executive Officer (CEO) who is responsible for ensuring that the charity performs as directed by the Trustees. During the previous year (2024-25) we employed 7 full-time and 26 part-time staff equating to 28 fte staff in total. 67 zero-hours contract workers were employed throughout the year working 23,121 hours in the community or in people's homes equating to an additional 13.5 fte workers. This current year (2025-26) we employed 7 full-time staff and 43 part-time staff, equivalent to 23 FTE. 26,409 hours were completed by our zero-hour workforce (an increase of 3,288 hours. This work was completed by 75 workers equating to 14 FTE. We are an accredited training provider for 18 health and social care students undertaking placements throughout their training. These students contribute greatly to the support we provide whilst gaining experience, knowledge, and supervision throughout their time with us. The charity is grateful for the unstinting efforts of the 23 active volunteers who are involved in all aspects of Nottingham Mencap, adding greatly to the work that the charity does.
New members of the Council of Management should undergo an induction to brief them on their legal responsibilities under charity and company law, the content of be Memorandum and Articles of Association, the committee and decision-making processes, and recent financial' performance of the charity. During the induction they meet key employees and other members of the Council of Management. Members are encouraged to undertake appropriate training where these will facilitate the undertaking of their role and improve the governance of the Charity.
The Charity is committed to paying its senior staff fairly and transparently, in a way that reflects the responsibilities of their roles, attracts and retains talented people, and represents good value for the people using our services, funders and beneficiaries. Remuneration for the senior leadership team is set by the Board of Trustees, acting on the recommendation of the Remuneration Committee, and is reviewed annually. In setting pay, the Board will take account of the size and complexity of the Charity, the skills and experience required for each role, independent benchmarking against comparable organisations in the charity sector, the Charity’s financial position and affordability, and the pay and conditions of the wider workforce. No individual will be involved in decisions about their own pay, and any conflicts of interest will be declared and managed in line with the Charity’s conflicts of interest policy. Total remuneration, including salary, pension contributions and any other benefits, will be disclosed in the Charity’s annual report and accounts in accordance with applicable reporting requirements.
In accordance with the company's articles, a resolution proposing that Rogers Spencer be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Nottingham Mencap for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- 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 charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
Opinion
We have audited the financial statements of Nottingham Mencap (the ‘charity’) for the year ended 31 March 2026 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our commercial knowledge and experience of the sector.
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the charities act, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
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Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
Understanding the design of the charity’s remuneration policies
To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify any unusual or unexpected relationships;
Tested journal entries to identify unusual transactions;
Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
Agreeing financial statement disclosures to underlying supporting documentation;
Reading the minutes of meetings of those charged with governance;
Enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees 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.
Nottingham Mencap is a private company limited by guarantee incorporated in England and Wales. The registered office is 1a-3 Clarence Street, Nottingham, NG3 2ET.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [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 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 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.
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 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.
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.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Included in tangible fixed assets is the freehold land and buildings owned by the charity, 1a and 3 Clarence Street, Nottingham, NG3 2ET. During the financial year this property has been valued by Fisher Hargreaves Proctor Limited t/a FHP Property Consultants at a fair value of £595,000. This valuation has been reflected in the financial statements.
At 31 March 2026, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £1,452,154 (2025 - £1,476,194).
The loan relates to the Energy Resilience Fund and has been used in conjunction with a grant to purchase solar panels as part of the improvement for the building at Clarence House.
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.
Digital Inclusion
Digital Inclusion promotes the use of IT by our members.
Smile Stop Hate Crime
The Smile Stop Hate Crime project is funded by Nottingham City Council and the Police and Crime Commissioner to tackle and raise awareness of Learning Disability Hate Crime. The project works in partnership with Nottinghamshire police and the community to raise awareness of hate crime. The project promotes anti-bullying awareness in schools and day centres. It delivers training, and facilitates groups to take a more proactive role against Hate Crime. (Incorporates Safe Places).
Lifestyle Choices
Lifestyle Choices is a service that runs between Monday and Friday during the day to support adults with learning disabilities to learn new skills, socialise, be active and be part of the community.
Nottinghamshire Healthcare Trust
This fund is to promote the voice of people with learning disabilities. Your voice gives a platform for health professionals to engage with those we support, and to seek opinions on things that matter most.
Energy Resilience Fund
This fund supported Nottingham Mencap to achieve its aims of becoming more environmentally friendly and self-sufficient installing solar panels and insulated roof lights.
Jessie Spencer
This fund contributed to the hiring of a space to deliver sessions for young people at the weekend.
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 during the year (2025 - none).