St Elizabeths Centre Annual Report End Dec 2022 FINAL - Flipbook - Page 45
Preparation of the financial statements requires the trustees and senior management to
make significant judgements and estimates.
The items in the financial statements where these judgements and estimates have been
made include:
¨ the estimation
theDecember
useful economic
Statement of accounting
policiesof31
2022 life of tangible fixed assets; and
¨
DRAFT
the basis of impairment of the Adult Home in light of its closure in November 2022 and
associated presentation of Home activities as “discontinued” in these financial
statements.
Income
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Income is recognised in the period in which the charity is entitled to receipt, the amount
can be measured reliably and it is probable that the funds will be received.
Legacies are included in the statement of financial activities when there has been a grant
of probate, the executors have established that there are sufficient surplus assets in the
estate to pay the legacy, and any conditions attached to the legacy are within the control
of the Charity.
Investment income, representing dividends, interest, and income from property, includes
any associated tax recoverable.
Restricted grants and awards are included once the amount is known and receipt is
probable.
Donated goods (with the exception of donated stock in the Charity’s shops) are valued by
the Trustees on the basis of their worth to the Charity, are included in the statement of
financial activities in the year in which they are received.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a
payment 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. All expenditure is
accounted for on an accruals basis. All expenditure is inclusive of irrecoverable VAT.
Expenditure comprises the following:
a. The costs of raising funds include expenses incurred in generating income for the
organisation, including the costs of fundraising events and the charity shops.
b. The costs of charitable activities comprise all the costs of carrying out the charitable
objectives of St Elizabeth’s Centre. Costs incurred by central services departments are
allocated based on the established use of each of the Home, School and College.
Governance costs have been allocated to the costs of charitable activities.
Governance costs are the costs associated with the governance arrangements of the
Centre that relate to the general running of the Centre as opposed to those costs
associated with fundraising or charitable activities. Included within this category are
costs associated with the strategic as opposed to day to day management of the
Centre’s activities.
Allocation of support and governance costs
Support costs represent indirect charitable expenditure. In order to carry out the primary
purposes of the charity, it is necessary to provide support in the form of personal
development, financial procedures, provision of office services and equipment and a
suitable working environment. Governance costs comprise the costs involving the public
accountability of the charity (including audit costs) and costs in respect to its compliance
with regulation and good practice.
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