REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
FOR |
MILLTOWN COMMUNITY LIMITED |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
FOR |
MILLTOWN COMMUNITY LIMITED |
MILLTOWN COMMUNITY LIMITED |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2022 |
Page |
Report of the Trustees | 1 | to | 5 |
Report of the Independent Auditors | 6 | to | 8 |
Statement of Financial Activities | 9 |
Balance Sheet | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 | to | 19 |
MILLTOWN COMMUNITY LIMITED (REGISTERED NUMBER: SC059485) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 March 2022 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
Milltown Community is a small, independent charity providing support at home and skills development services to enable neurodiverse adults and those with learning challenges to be the best they can be, to live their best possible lives, to achieve and to be enabled rather than disabled. Due to issues described later in this report, the charity had lost its sense of direction and staff became unclear of its values, vision and mission which led to it not being the enabling organisation it should have been. |
During this financial year the residential community of 7 tenants, living in two houses, was supplemented each day by up to 16 workers and learners who were developing land based and artisan craft skills at the charity's rural location in Arbuthnott in the south of Aberdeenshire. |
Milltown Community's operation is based on two social care contracts with the Health & Social Care Partnership of Aberdeenshire and Aberdeen City Councils, a Supported Living Service for the tenants within the houses and a Skills Development service for day learners. Both of these contracts were due to be replaced in 2022 and a tender was submitted through Public Contracts Scotland in September 2021 with a new Support at Home contract awarded to begin on 1st April 2022. The Skills Development service contract is due for renewal on 1st July 2022 but will have different outcomes. |
Staffing levels was an issue throughout this financial year; the Supported Living Service delivery required up to 14 full time support workers, Operational Manager and Administrator and the Skills Development Service required 9 co-ordinators working varied hours. The Manager of Supported Living Service resigned following a disciplinary investigation in December 2021 and the Manager of the Skills Development Service resigned in September 2021. The investigations carried out revealed evidence of coercive control, misogyny, bullying and suggestions of systemic abuse of residents over a number of years. |
Milltown Community has experienced a number of challenges since November of 2021 when an independent review, funded by the Adapt & Thrive Fund, revealed that immediate actions were needed to enable it to survive, as it grappled with the need for adaptation & change. In December, following the resignation of the whole Board of Trustees and the removal of the previous management, the charity was placed under interim management and a recovery action plan was put in place. |
STRATEGIC REPORT |
Achievement and performance |
Throughout this financial year Milltown Community, despite the efforts of its staff teams, was heading towards not being sustainable due to limited resilience and a lack of contingency planning. What was not discovered until the reviews conducted by independent advisors, was the severity of the problems which could lead to the demise of the organisation. It is the case that, although some on the Board of Trustees were urging actions to be taken earlier in the year with the award of the Adapt and Thrive fund, agreement of the whole Board to act decisively was not reached until August 2021 when a more detailed independent review of the charity was commissioned. |
The charity was without a Board of Trustees from December 2021 until February 2022 when the current Board of Trustees were appointed. They have worked tirelessly with Interim Senior Managers to ensure a full detailed investigation, forensic audit and disclosure of the failings within the organisation that led to urgent actions being required to enable its survival. |
MILLTOWN COMMUNITY LIMITED (REGISTERED NUMBER: SC059485) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 March 2022 |
STRATEGIC REPORT |
Financial review |
The increase in income was attributable to the award of the Adapt & Thrive Grant funding of £42,200 and annual contract uplifts/support hour reviews. The increase in expenditure was concerning and required a detailed forensic audit examination which was commissioned independently and not from the charity's previous accountants. Whilst there had been some annual increases in line with the cost of living, evidence was found of mismanagement and misappropriation of the charity's funds. |
The Adapt & Thrive Grant funding was fully spent on the independent review and Interim Senior Management services by 31st March 2022. |
The charity has total funds of £258,300 for the year end 21/22, a reduction from £336,550 in 20/21. There were significant concerns at how this amount of surplus was allowed to accrue and remain in the various operational bank accounts. It was possible at the end of this financial year, that if this level of surplus was achieved through non-delivery of contract obligations, that the monies could be 'clawed back' by the commissioners. None of this surplus had been put into reserves as no reserves policy existed until after April 2022. The accrual of these funds was still the subject of investigation at the year-end 31 March 2022 and was being considered within the context of the LSI launched in February 2022. |
Review of Business |
During the early part of this financial year, the Trustees had become concerned about the viability of Milltown Community, primarily as a result of the apparent inability to recruit staff. They had applied for and been granted money from the Scottish Government 'Adapt & Thrive' fund following a report commissioned from Douglas Westwater of Community Enterprise. He concluded that the organisation was in danger of failure and recommended that funding was sought to carry out a more detailed review and to make specific recommendations for change. |
The Chairman subsequently and individually negotiated an arrangement with Bruce Tait of Bruce Tait Associates to provide a consultant/associate to undertake a 'Report and Recommendations for Immediate Action to enable effective and necessary change for a viable & sustainable future'. BTA was commissioned to undertake this work over a period of 6 months. However, after 4 weeks detailed investigation and evaluation, a final report was published to the Trustees on 8th October 2021 with the following Executive Summary: |
"Milltown Camphill Community is at a critical point, it is beset with challenges arising largely from significant staff turnover, ineffective recruitment, management issues, lack of visible collaborative leadership and governance, and engagement with stakeholders. It must also be highlighted that as a result of being left behind by the changes in health & social care commissioning, and a restricted vision of the way in which the sector is changing, the organisation is in danger of not being compliant and is likely to be considered as adequate or at worst weak in its service provision. |
It is clear that despite the best efforts of the remaining staff, the conflicts, concerns and significant stresses they are experiencing, and the overwhelming need to fight fires as opposed to being proactive, is creating so much distraction that that the organisation is at risk of collapse. In addition to this becoming a reality, it has to be made clear that the tenants are potentially at risk of not being provided with the care and support that they need and deserve. We are also recording our concerns about operational processes, systems and procedures across all aspects of the organisation, which are not adequate both in the context of charity governance and health & social care provision. |
Actions need to be taken immediately and a process of recovery initiated as soon as possible to avoid the worst case scenario of organisational failure on several fronts and the requirement to report this to the regulatory authorities and commissioners. It is essential that the process of recovery is carried out independently from the existing organisational structure and initiated within the next 7 - 10 days to begin to address the decline". |
Following publication of the Report and Recommendations for Immediate Action to enable effective and necessary change for a viable & sustainable future, negotiations ensued between the Chairman and Bruce Tait regarding next steps as recommended and on 3rd November 2021, Ian Rideout & Robert Walters were granted delegated authority and fiscal authority by the Trustees to plan and initiate an urgent Recovery Plan to save Milltown Community from imminent demise, both operationally and financially. |
During the review, full disclosure to management accounts, budgets or any financial information had not been enabled. This was concerning, so an immediate forensic audit was commissioned in addition to a full investigation into all aspects of management, practice standards and operational procedures across the charity. Ian Rideout & Robert Walters, both experienced and qualified Senior Managers within the Third Sector in Scotland, assumed immediate interim management responsibility and engaged with all internal and external stakeholders to ensure complete transparency, reporting and disclosure. |
Following an AGM convened by the Board in November 2021 at which a number of matters were inappropriately handled and without decisive actions being agreed, the newest member of the Board resigned. |
MILLTOWN COMMUNITY LIMITED (REGISTERED NUMBER: SC059485) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 March 2022 |
STRATEGIC REPORT |
It was very quickly determined that there was significant evidence of mismanagement across the charity, evidence of wilful misappropriation of charity funds and theft which led to the resignation of the Supported Living Service Manager and subsequently the Board who, with the Chair, were considered complicit in the financial mismanagement. |
A detailed Recovery Plan was implemented and weekly reports were voluntarily filed to the Health & Social Care Partnership, Care Inspectorate, OSCR and contract commissioners from November through to May 2022, when the first CEO was appointed and took up office. |
The 6 months from November 2021 until May 2022 were tough for the charity with daily revelations of wrong doing, fiscal mismanagement, coercive control and systemic abuse from about 2006 until November 2021 involving staff and residents. The details of these investigations were shared with external stakeholders, relatable parents and guardians and evidence presented to the Adult Protection Network, SSSC, Care Inspectorate and Police Scotland and, as a result the organisation became the subject to a Large Scale Investigation (LSI) in February 2022. This was subsequently removed in May 2022. |
The details and outcomes of the various investigations, reports filed, evidence submitted and continuing historical discovery are recorded with the incoming Trustees and regulatory authorities, the context of which may be subject to reporting financial year 2022/23. |
At the end of March 2022, significant progress had been made on the Recovery Plan but much was still to do with the implementation of new policy, procedures and practice standards; personal outcomes planning, financial recording & management. Xero had just been adopted as a cloud based accounting package for 2022/23 and an organisation wide IT system was in design. |
Reserves policy |
There was no reserves policy in place due to the ongoing forensic audit work having to establish the validity of the accrued balances. |
Going concern |
At the time of approving the financial statements, which given the circumstances described have taken an extended time to produce, the Trustees have a reasonable expectation that the charity has adequate financial resources to continue in operational existence for the foreseeable future. However, this has only been possible as a result of the very robust Recovery Action Plan initiated in November 2021 and which was deemed to have been successful by May 2022. So, only as a result of these and other improvement actions, the Trustees are able to adopt the going concern basis of accounting at the time of approving these financial statements in June 2023. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, as a Company Limited by Guarantee but as this document was adopted in 1976 and until February 2023 had received no revision, it may not have met the definitions under the Companies Act 2006 during the period of this report. |
Recruitment and appointment of new trustees |
The appointment of trustees is governed by the Articles of Association, however, following the resignation of all the Board in December 2021, OSCR were informed. The Interim Senior Managers assumed the Company Secretarial and Registered Manager roles and sought to find potential Trustees who were appointed in February 2022. The current Board of Directors at Milltown Community are authorised to appoint new Trustees to fill vacancies which arise and to seek to achieve a balance of skills and experience in their governance. |
A Directors/Trustee pack has been developed and training provision is available. |
Organisational structure |
In the period up to November 2021, a notional 'Council of Management' had delegated the operational management of Milltown Community to the Management Team responsible for the provision of contracted support services. This was deemed to be an invalid structure which effectively gave all accountability and responsibility to a dysfunctional management with little scrutiny from the Board. The Chair was often acting in an executive role when it suited and evidence suggests he was compromised on a number of occasions, and at times acted in a coercive and inappropriate manner towards staff. |
From November 2022 the previous operational structures were no longer functional, and the Board of Trustees delegated management authority and fiscal authority to the Interim Senior Managers in the interests of the charity's survival. |
MILLTOWN COMMUNITY LIMITED (REGISTERED NUMBER: SC059485) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 March 2022 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Risk management |
The Trustees have a duty to identify and review the risks to which the charity might be exposed and to ensure that appropriate controls are in place to provide reasonable assurance against fraud and error. It is clear from evidence gained during the forensic audit investigation that, with the exception of one of the previous Board Members who resigned in November 2021, this was not the case. Indeed, the Chair of the Board of Trustees, in post until December 2021, could be considered to be complicit by not ensuring appropriate fiscal controls and failing to scrutinise any management accounts. |
In the years up to the end of this financial year 21/22, there was no management accounting system in place, no adequate policies or procedures, no effective or appropriate leadership and management of the charity and a disregard for fiscal compliance. There was significant evidence of mismanagement, misappropriation of charity funds, fraud and theft and levels of error that did amount to a considerable loss to the charity over several previous years. |
The Board of Trustees is aware that the viability of the charity is dependent on continuing to secure contract service provision with the Health & Social Care Partnership of Aberdeenshire & Aberdeen City Councils as host authorities, and reciprocal arrangements with Glasgow City and NHS Highland as responsible authorities for adult social care of tenants. The Supported Living contract came to an end on 31st March 2022, and following a tender submission made by an external consultant through Public Contract Scotland in September 2021, the new Support at Home contract was awarded to begin on 1st April 2022. Due to the lack of personal outcomes planning at the time, this contract was awarded on a support hours rather than an outcomes based commissioning and anticipatory budget basis. The existing Skills Development contract remained in place but was due for renewal on 1st July 2022. |
A significant risk for Milltown Community was its lack of any asset value or control over its own property & land which had been bought from the Arbuthnott Estate in 2006 by a parent benefactor. These assets had been 'owned' by a sister charity, Camphill Mearns Ltd, operating from the same location with a confusing inter-relationship with regard to financial management and with staff as directors. It was agreed at the beginning of 2022 that Camphill Mearns Ltd would be moved into members voluntary liquidation and the assets and cash balances transferred to Milltown Community Ltd from whom they had been acquired. This process was underway at the close of this financial year. |
It was determined in early 2022 that the charity was significantly underinsured, and whilst there had been a concerning emphasis on historical abuse cases by the previous insurers who were linked to the Camphill Movement, other aspects of the charity's operations were not insured. Bruce Stevenson was appointed as new Insurance Broker by the Board of Trustees in March 2022. |
It was considered that the charity having any continuing link to the Camphill Movement was a considerable risk to its recovery and it was removed from any membership or association with Camphill Scotland and all other Camphill Associations at the beginning of 2022. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
MILLTOWN COMMUNITY LIMITED (REGISTERED NUMBER: SC059485) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 March 2022 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Auditors |
Bankhead Drive |
City South Office Park |
Portlethen |
Aberdeenshire |
AB12 4XX |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
TRUSTEES' RESPONSIBILITY STATEMENT |
The trustees (who are also the directors of Milltown Community Limited for the purposes of company law) are responsible for preparing the Report of the Trustees 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 period. In preparing those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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. |
In so far as the trustees are aware: |
- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
- | the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on |
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF |
MILLTOWN COMMUNITY LIMITED |
Opinion |
We were engaged to audit the financial statements of Milltown Community Limited (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
We do not express an opinion on the financial statements of the charitable company. Due to the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. |
Basis for disclaimer of opinion |
Due to the lack of financial records being maintained in the year to 31 March 2022, we have been unable to obtain all of the required audit evidence which was required in order to complete our audit work. |
We are aware that fraudulent activity has taken place within the year but we are unable to quantify the extent of this due to the lack of records maintained. On this basis we cannot conclude that the financial statements are free from material misstatement. |
As a result of the above, we have been unable to obtain sufficient audit evidence on which to base an opinion on the financial statements and the possible effects of undetected misstatements. |
Conclusions relating to going concern |
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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. |
Other information |
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
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 Report of the Trustees. |
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: |
- 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. |
In respect of adequate and proper accounting records, as noted in our basis for disclaimer of opinion, there has been a lack of financial records maintained in the year ended 31 March 2022 and therefore we have been unable to obtain sufficient appropriate evidence. |
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF |
MILLTOWN COMMUNITY LIMITED |
Responsibilities of trustees |
As explained more fully in the Trustees' Responsibilities Statement, the trustees 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 responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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: |
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. |
We gained an understanding of how the charitable company is complying with these laws and regulations by: |
- enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims; |
- enquiry of those charged with governance to identify any instances of non-compliance with laws and regulations; |
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
We assessed the susceptibility of the charitable company's financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. |
Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES AND MEMBERS OF |
MILLTOWN COMMUNITY LIMITED |
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, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and the trustees those matters we are required to state to them in an auditors' 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. |
for and on behalf of |
Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 |
City South Office Park |
Portlethen |
Aberdeenshire |
AB12 4XX |
MILLTOWN COMMUNITY LIMITED |
STATEMENT OF FINANCIAL ACTIVITIES |
for the Year Ended 31 March 2022 |
2022 | 2021 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
Charitable activities | 5 |
Other trading activities | 3 |
Investment income | 4 |
Other income |
Total |
EXPENDITURE ON |
Charitable activities | 6 |
Governance |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 336,550 |
MILLTOWN COMMUNITY LIMITED (REGISTERED NUMBER: SC059485) |
BALANCE SHEET |
31 March 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 17 |
Unrestricted funds: |
General fund | 204,669 | 290,409 |
Restricted funds: |
Restricted | 53,631 | 46,141 |
TOTAL FUNDS | 336,550 |
The financial statements were approved by the Board of Trustees and authorised for issue on |
MILLTOWN COMMUNITY LIMITED |
CASH FLOW STATEMENT |
for the Year Ended 31 March 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (38,108 | ) | 36,933 |
Net cash (used in)/provided by operating activities | (38,108 | ) | 36,933 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (4,887 | ) | (24,598 | ) |
Sale of tangible fixed assets | - | 2,000 |
Interest income | - | 6 |
Net cash used in investing activities | (4,887 | ) | (22,592 | ) |
Change in cash and cash equivalents in the reporting period |
(42,995 |
) |
14,341 |
Cash and cash equivalents at the beginning of the reporting period |
308,218 |
293,877 |
Cash and cash equivalents at the end of the reporting period |
265,223 |
308,218 |
MILLTOWN COMMUNITY LIMITED |
NOTES TO THE CASH FLOW STATEMENT |
for the Year Ended 31 March 2022 |
1. | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES |
2022 | 2021 |
£ | £ |
Net expenditure for the reporting period (as per the Statement of Financial Activities) |
(78,250 |
) |
(5,804 |
) |
Adjustments for: |
Depreciation charges | 11,124 | 14,804 |
Profit on disposal of fixed assets | - | (2,000 | ) |
Investment income | - | (6 | ) |
(Increase)/decrease in debtors | (840 | ) | 23,338 |
Increase in creditors | 29,858 | 6,601 |
Net cash (used in)/provided by operations | (38,108 | ) | 36,933 |
2. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.21 | Cash flow | At 31.3.22 |
£ | £ | £ |
Net cash |
Cash at bank | 308,218 | (42,995 | ) | 265,223 |
308,218 | (42,995 | ) | 265,223 |
Total | 308,218 | (42,995 | ) | 265,223 |
MILLTOWN COMMUNITY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2022 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
Income |
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. |
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. |
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
Pension costs and other post-retirement benefits |
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
Going concern |
The financial statements have been prepared on a going concern basis which assumes that the charitable company will continue to operate. |
Narrative has been provided with the Trustees Report detailing the basis for which the board of trustees consider it appropriate to prepare the financial statements on a going concern basis. |
MILLTOWN COMMUNITY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2022 |
2. | DONATIONS AND LEGACIES |
2022 | 2021 |
£ | £ |
Gifts & Donations |
3. | OTHER TRADING ACTIVITIES |
2022 | 2021 |
£ | £ |
Housing support and home sevices |
Day workshop |
Workshop sales | 13,953 | 4,640 |
Exceptional items | 11,135 | - |
4. | INVESTMENT INCOME |
2022 | 2021 |
£ | £ |
Interest received |
5. | INCOME FROM CHARITABLE ACTIVITIES |
2022 | 2021 |
Activity | £ | £ |
Government grants | Housing support and home services | 42,200 | - |
Grants received, included in the above, are as follows: |
2022 | 2021 |
£ | £ |
Government grant |
42,200 | - |
6. | CHARITABLE ACTIVITIES COSTS |
Support |
Direct | costs (see |
Costs | note 7) | Totals |
£ | £ | £ |
Housing support and home services | 708,883 | 209 | 709,092 |
Day workshop services | 74,370 | - | 74,370 |
Governance |
- | 27,473 | 27,473 |
783,253 | 27,682 | 810,935 |
MILLTOWN COMMUNITY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2022 |
7. | SUPPORT COSTS |
Governance |
Finance | costs | Totals |
£ | £ | £ |
Housing support and home services | 209 | - | 209 |
Governance |
- | 27,473 | 27,473 |
209 | 27,473 | 27,682 |
8. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
Surplus on disposal of fixed assets | ( |
) |
9. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021. |
10. | STAFF COSTS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
525,623 | 494,924 |
The average monthly number of employees during the year was as follows: |
2022 | 2021 |
Housing | 15 | 13 |
Workshop | 11 | 11 |
MILLTOWN COMMUNITY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2022 |
11. | EXCEPTIONAL ITEMS |
There is a balance totalling £11,135 (2021: £nil) which has been recognised as an exceptional item due to opening bank balances being omitted in the 31 March 2021 financial statements in error. |
12. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | fund | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Other trading activities |
Investment income |
Other income |
Total |
EXPENDITURE ON |
Charitable activities |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 288,406 | 53,948 |
TOTAL FUNDS CARRIED FORWARD | 290,409 | 46,141 | 336,550 |
13. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2021 |
Additions |
At 31 March 2022 |
DEPRECIATION |
At 1 April 2021 |
Charge for year |
At 31 March 2022 |
NET BOOK VALUE |
At 31 March 2022 |
At 31 March 2021 |
MILLTOWN COMMUNITY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2022 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Other debtors |
Prepayments and accrued income |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Social security and other taxes |
Other creditors |
Accrued expense and deferred i ncome |
16. | ANALYSIS OF NET ASSETS BETWEEN FUNDS |
2022 | 2021 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
£ | £ | £ | £ |
Fixed assets | 10,530 | 16,957 | 27,487 | 33,724 |
Current assets |
Current liabilities | ( |
) | ( |
) | ( |
) |
204,669 | 53,631 | 258,300 | 336,550 |
17. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.4.21 | in funds | 31.3.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 290,409 | (85,740 | ) | 204,669 |
Restricted funds |
Restricted | 46,141 | 7,490 | 53,631 |
TOTAL FUNDS | (78,250 | ) | 258,300 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 718,732 | (804,472 | ) | (85,740 | ) |
Restricted funds |
Restricted | 13,953 | (6,463 | ) | 7,490 |
TOTAL FUNDS | ( |
) | (78,250 | ) |
MILLTOWN COMMUNITY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2022 |
17. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net |
movement | At |
At 1.4.20 | in funds | 31.3.21 |
£ | £ | £ |
Unrestricted funds |
General fund | 288,406 | 2,003 | 290,409 |
Restricted funds |
Restricted | 53,948 | (7,807 | ) | 46,141 |
TOTAL FUNDS | 342,354 | (5,804 | ) | 336,550 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 641,771 | (639,768 | ) | 2,003 |
Restricted funds |
Restricted | 12,584 | (20,391 | ) | (7,807 | ) |
TOTAL FUNDS | 654,355 | (660,159 | ) | (5,804 | ) |
A current year 12 months and prior year 12 months combined position is as follows: |
Net |
movement | At |
At 1.4.20 | in funds | 31.3.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 288,406 | (83,737 | ) | 204,669 |
Restricted funds |
Restricted | 53,948 | (317 | ) | 53,631 |
TOTAL FUNDS | 342,354 | (84,054 | ) | 258,300 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 1,360,503 | (1,444,240 | ) | (83,737 | ) |
Restricted funds |
Restricted | 26,537 | (26,854 | ) | (317 | ) |
TOTAL FUNDS | 1,387,040 | (1,471,094 | ) | (84,054 | ) |
The restricted funds comprise the following unexpended balances of donations and grants held on trust for specific purposes: |
MILLTOWN COMMUNITY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2022 |
17. | MOVEMENT IN FUNDS - continued |
Balance at 1 April 2021 |
Incoming resources |
Resources expended |
Balance at 31 March 2022 |
Vehicle replacement | 7,781 | 7,781 |
Residential work for the community | 17,255 | 13,954 | 6,463 | 24,745 |
Improvement of workshop | 21,105 | 21,105 |
46,141 | 13,954 | 6,463 | 53,631 |
The specific purposes for which the funds are to be applied are as follows: |
Vehicle replacement fund - to generate and hold funds for the replacement of motor vehicles for the charity. |
Residential work for the community - to hold donated funds for the benefit of the residential work carried out by the community. |
Improvement of workshop - capital improvements of the workshop. |
18. | EMPLOYEE BENEFIT OBLIGATIONS |
The charity's pension cost for the year was £9,804 (2021: £19,340). Outstanding contributions as at year end totalled £2,288 (2021: £1,597). |
19. | RELATED PARTY DISCLOSURES |
During the year, invoices amounting to £9,581 were paid to the Animari Partnership Ltd, a not-for-profit company in which Ian Rideout is also a company secretary and a director of. |
During the year, invoices amounting to £4,010 were paid to Brian Morrison T/a Ruadh Consultancy, a business in which Brian Morrison, trustee, is the proprietor. |
20. | POST BALANCE SHEET EVENTS |
Following the year end, it was agreed that Camphill Mearns Limited was to be wound up through a Members Voluntary Liquidation and that its assets are to be transferred to Milltown Community Limited to further assist in fulfilling the charitable objectives of Milltown. |
This process has been approved by the Office of the Scottish Charity Regulator. |
In the post year end period, the Board of trustees have entered discussions to merge with a larger national charity in the foreseeable future. These discussions are at an advanced stage and they expect the process take up to 3 months to conclude. Milltown Community delivers contracts on behalf of the Health & Social Care Partnership in Aberdeenshire and Aberdeen City and these contracts are unaffected by any of the on-going discussions. |