ELCAP	SUPPORTING PEOPLE TO BUILD BETTER LIVES
		Home Services ELCAP Trust Fun Day Video Premiere Recruitment Volunteers Financial Contacts	Income and Expenditure Account and Statement of Financial Activities For the year ended 31 March 2006 Income and Expenditure Account Restated Notes Operating Designated Restricted Total Total Fund Funds Funds 2006 2005 2006 2006 2006 £ £ £ £ £ Incoming resources From Charitable Activities   Supported Living 5,761,910 -  -  5,761,910 5,458,535   Housing Provision -  -  203,134 203,134 180,091   Respite service 226,998 -  -  226,998 232,075 Other incoming resources 25,683 65,332 -  91,015 119,937                     Total incoming resources 6,014,591 65,332 203,134 6,283,057 5,990,638           Resources expended Charitable Activities  Supported Living 2 & 3 5,910,189 -  -  5,910,189 5,365,398  Housing Provision 2 & 3 -  -  323,188 323,188 210,338  Respite service 2 & 3 223,788 -  -  223,788 216,335 Governance costs 2 & 3 31,177 -  -  31,177 33,386                     Total resources expended 6,165,154 -  323,188 6,488,342 5,825,457                     Net incoming/outgoing resources before transfers (150,563) 65,332 (120,054) (205,285) 165,181           Transfers between funds 11 150,563 (200,912) 50,349 -  -                      Net incoming resources before other recognised gains & losses -  (135,580) (69,705) (205,285) 165,181                     Actuarial (Losses)/gains on defined benefit pension scheme 13 -  (174,000) -  (174,000) -  Unrealised Gains/(Losses) on invest ments 16 -  9,008 -  9,008 -                      Net movement in funds 4 -  (300,572) (69,705) (370,277) 165,181                     Fund Balances as at 31 March 2005 81,134 3,050,952 239,069 3,351,155 3,732,974           Fund Balances as at 31 March 2006 81,134 3,351,524 169,364 2,980,878 3,898,155           There were no recognised gains or losses for 2006 or 2005 other than those included in the Income and Expenditure Account and the Statement of Financial Activities. All activities relate only to continuing operations. The notes below form part of these financial statements Balance Sheet Notes   Total     Total   2006     2005         Restated £ £ £ £ Fixed assets Tangible assets 7 2,133,044     2,180,194   Investments 355,705 214,517 Total Fixed Assets 2,488,749 2,394,711 Current assets Debtors 8 541,772 192,243 Cash at bank and in hand 1,100,871 1,746,699 Total Current Assets 1,642,643 1,938,942           Creditors: Amounts falling due within one year 9 (337,915)     (325,224)       Net current assets 1,304,728 1,613,718 Total assets less current liabilities 3,793,477 4,008,429 Creditors: Amounts falling due after more than one year 10 (102,599) (110,274) Net assets excluding pension liability 3,690,878 3,898,155 Defined benefit pension scheme liability 13 (710,000) (547,000) Net assets including pension liability 2,980,878 3,351,155     Funds Unrestricted 81,134 81,134 Designated 2,730,380 3,030,952 Total Unrestricted 2,811,514 Restricted 169,364 239,069               2,980,878 3,351,155     The financial statements were approved by the executive board on 7th September 2005 and signed on its behalf by Liz Foy (Director) and Linda Headland (Secretary) The notes below form part of these financial statements Cashflow Statement Notes 2006 2005 £ £ £ £ Net cash (outflow)/inflow from operating activities 1 (505,423) 213,793 Returns on investments and servicing of finance Interest paid (6,637) (6,995) Interest received 65,332 82,677                 Net cash inflow/(outflow) from returns on investments and servicing of finance 58,695 75,682 Capital expenditure Payments to acquire tangible fixed assets (57,912) (300,273)                 Net cash (outflow)/inflow from investing activities (57,912) (300,273)                 Decrease in cash 2 (504,640) (10,798)                 Notes to the cashflow statement 1. Net cash (outflow)/inflow from operating activities £ £     (Deficit)/Surplus for year (370,277) 165,181     Depreciation charge 84,848 111,754     Loss on disposal of tangible assets 20,214 -      Actuarial loss on pension 163,000 -      Interest received (net) (65,332) (82,677)     Interest paid (net) 6,637 6,995     (Increase)/Decrease in Debtors (349,529) 10,790     Increase in creditors 5,016 1,750             Net cash Inflow/(outflow) from operating activities (505,423) 213,793             2. Change in net liquid resources     Net funds at 1 April 2005 1,961,216 1,972,014             Decrease in cash (504,640) (10,798)                 Net funds at 31 March 2006 1,456,576 1,961,216     The notes below form part of these financial statements Notes to the Financial Statements   1. Accounting policies   The principal accounting policies adopted in the preparation of the financial statements are set out below   (a) Basis of preparation of financial statements   The financial statements have been prepared under the historical cost convention as modified by the revaluation of investments and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005) issued in March 2005, applicable UK Accounting Standards and the Companies Act 1985.   The incoming resources and resources expended for the year ended 31st March 2005 have been reclassified in order to comply with SORP 2005.   (b) Prior period adjustment   The company policy for calculating the cost of retirement benefits was changed during the year to take full account of 'FRS 17 - Retirement Benefits'. The trustees consider that the new policy provides a fairer presentation of the results and of the financial position of the company as it ensures the financial statements reflect at fair value the assets and liabilities arising from the retirement benefit obligations and any related funding.   The comparative figures in the primary statements and notes have been restated to reflect the new policy. The effects of the change in policy are summarised below:   Balance Sheet     £ Net assets at 31 March 2005 3,898,155 Creation of FRS 17 liability (547,000) Net assets at 31 March 2005 restated 3,351,155   (c) Incoming resources   All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income The majority of income relates to local authority contracts and is recognised as the work is undertaken Investment income is included when receivable Revenue grants are recognised in the accounting period to which they relate and are matched to expenditure   (d) Resources expended   Expenditure is recognised when a legal or constructive obligation arises. Charitable activities include expenditure on staff salaries and staffing related costs such as training, occupational health and office accommodation. It includes both the direct costs and the support costs relating to these activities Support costs include central functions which have been allocated to activities. Whenever possible, support costs are attributed to the activity to which they relate. The costs of functions which support more than one of the charity's activities have been allocated to those activities based on the income for each activity. Income is a reasonable guide to the level of support activity required from human resources, finance & IT services. Governance costs relate to the general running of the charity and include the operations of the Board and addressing constitutional, audit and other statutory matters.   (e) Depreciation of tangible fixed assets   Tangible fixed assets costing more than £250 are capitalised including any incidental expenses of acquisition. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset evenly over its expected useful life, as follows:   Heritable buildings 50 years Leasehold improvements As per remaining number of years in lease Furniture and furnishings 5 years Office equipment (purchased after 1 April 2004) 3 years Office equipment (purchased prior to 1 April 2004) 4 years   Where Furniture and Fittings in tenancies are purchased through housing benefit income, these assets will be expensed in year of purchase. All furniture & fittings in ELCAP tenancies were gifted to tenants on 31st March 2006. The only furniture & fittings now included in the balance sheet relate to the respite service or office accommodation. (f) Pensions   The company encourages employees to take up a pension scheme and pays contributions towards a number of schemes.   Defined Benefit Schemes   The company contributes to two defined benefit pension schemes: Lothian Government Superannuation Scheme (LGSS) and the NHS Superannuation Scheme for Scotland (NHSS). Both schemes provide benefits based on final pensionable pay. The assets of the schemes are held separately by their administrators ( LGSS - City of Edinburgh Council and NHSS - Scottish Public Pensions Agency) either with a mixture of insurance companies and managed funds ( LGSS) or directly in gilts ( NHSS).   The company operates a defined benefit scheme in respect of its employees. The assets of the scheme are held in external funds managed by professional investment managers.   In accordance with 'FRS 17 - Retirement benefits', the operating and financing costs of pension and post retirement schemes (determined by a qualified actuary) are recognised separately in Statement of Financial Activities. Service costs are systematically spread over the service lives of the employees and financing costs are recognised in the period in which they arise.   The difference between the actual and expected returns on assets during the year, including changes in the actuarial assumptions, are also recognised in the Statement of Financial Activities.   The LGSS is closed to new entrants.   The NHSS scheme is a multi-employer scheme where the assets and liabilities applicable to each employer cannot be separately identified. It is therefore accounted for as a defined contribution scheme.   Defined Contribution Schemes   There are two main schemes operating in the company: the Group Personal Pension Scheme, and other Personal Pensions set up by each employee independent of the company. Contributions to the schemes are charged to the income and expenditure account in the period in which contributions become payable.   (g) Operating lease commitments   Rentals payable under operating leases are charged to the statement of financial activities.   (h) Funds structure   Unrestricted funds are available for use at the discretion of the trustees in the furtherance of the general objectives of the charity. Designated funds are unrestricted funds earmarked by the Board for specific activities and needs in the future. The Property Equity fund, Contingency and Change funds are all designated funds.   Restricted funds are subjected to restrictions on their expenditure imposed by the donor or funder. The Property Management fund is a restricted fund since rental income, mostly funded by housing benefit, is used to fund property refurbishment & maintenance.   The Operating fund represents the accumulated surpluses and deficits in the Statement of Financial Activities, after transfers to/from the designated funds   (i) Taxation   The company has charitable status and is therefore exempt from taxation under Section 505 of the Corporation Taxes Act 1968. The company is not registered for value added tax (VAT) and accordingly expenditure includes VAT where applicable.   (j) Investments   The investment in corporate bonds is shown at market value. Gains and losses are recognised in the year in which they arise.   2. Expenditure     Direct Support Total Total     Costs Costs 2006 2005                 £ £ £ £             Supported Living     5,523,397 386,792 5,910,189 5,365,398 Housing Provision     316,892 6,296 323,188 210,338 Respite Services     205,579 18,209 223,788 216,335 Property Management Costs       31,177 31,177 33,386                 6,045,868 442,474 6,488,342 5,825,427               3. Support Costs allocation             Supported Respite Housing Governance Total Total Living Services Provision   2006 2005             £ £ £ £ £ £             Staff costs 281,714 13,479 6,296 21,120 322,609 339,227 General office costs 98,864 4,730     103,594 104,952 Internal & external Audit       10,007 10,007 12,865 Professional fees 6,214     50 6,264 304             386,792 18,209 6,296 31,177 442,474 456,482               4. Net incoming resources are stated after charging 2006 2005     £ £     Depreciation of tangible fixed assets 84,848 111,754 Fees paid to auditors for external audit 5,951 6,629 Operating lease rentals:   Land and buildings 30,867 30,867   Other 2,673 2,673       5. Employees 2006 2005     The average weekly number of employees (whole time equivalents) was:-   Supported living 230 206   Respite service 7 7   Governance -  -    Housing Provision -  -    Staff costs during the year amounted to: 2006 2005     £ £     Wages and salaries 4,793,308 4,196,003 Social security costs 381,601 332,676 Other pension costs 189,813 205,896         5,364,722 4,734,575         None of the employees emoluments were in excess of £60,000. None of the Executive Board members received any remuneration for their services as members of the Board, expenses for travel to attend board meetings totalled £0 (2005 - £0)   6. Related Parties     The Board made a policy decision to include service users on the Board of Trustees in order to influence the development of person centered services. Three people, Sylvia Archibald, Donald Todd and Allan Sinclair were co-opted onto the Board in April 2006. These 3 people are supported by ELCAP. There are also two trustees, Tony Sabine and Ann Steadman, who are parents of service users supported by ELCAP. The trustees are not remunerated as trustees     The support contract for each of the three service-user Trustees and the relatives of the two parents/ trustees is assessed independently of ELCAP by local authority care managers and is consistent with all other service users. The cash value of these services is not disclosed in accordance with section 229 of the code of practice issued by the Accounting Standards Board, which includes in 'Disclosures not required': (f) 'the provision of services to a related party (including a charity trustee or person connected with a charity trustee) where the related party receives the services as part of a wider beneficiary class, and on the same terms as other members of the class …'     Drew Morris is an executive board member and a partner in the Edinburgh office of the company's solicitors, Anderson Strathern, who were paid £19 in the year for legal services provided by the solicitors on a normal commercial basis. Drew Morris does not directly work on any ELCAP business.   7. Tangible fixed assets     Cost or valuation Heritable Leasehold Furniture & Office Total Land and Improvements Furnishings Equipment Buildings   £ £ £ £ £   At 1 April 2005 2,541,444 55,501 354,185 254,063 3,205,193   Additions 46,282