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2020-08-31-accounts

Company Registration No. 02537501 Registered Charity No. 1000392

THE DAVID LEWIS CENTRE

Trustees’ Report and Financial Statements

For the year ended 31 August 2020

THE DAVID LEWIS CENTRE

CONTENTS Page
Officers and professional advisers 3
Trustees’ report (including the Strategic report) 4
Trustees’ responsibilities statement 11
Independent auditor's report 12
Statement of financial activities 14
Balance sheet 15
Cash flow statement 16
Notes to the financial statements 17

THE DAVID LEWIS CENTRE

OFFICERS AND PROFESSIONAL ADVISERS

TRUSTEES

D K Cornwall G Devlin S Devlin L Feerick A V Hollows A M Imrie (Chair) G Loughlin M E McLaughlin S Tebby-Lees D A Hole (appointed 01/01/2021)

PRINCIPAL OFFICERS – Key Management Personnel

Chief Executive Company Secretary

Anthony Waters Neil Edwards, ACMA, CGMA

KEY MANAGEMENT PERSONNEL

Chief Executive Director of Adult Residential and Day Services Director of Clinical Services Director of Education Financial Controller Human Resources Manager

PATRONS

HRH, The Countess of Wessex Viscount Ashbrook

BANKERS

National Westminster Bank Plc Spring Gardens Manchester M60 2DB

SOLICITORS

Hill Dickinson LLP No.1 St. Paul's Square Liverpool L3 9SJ

Chafes Solicitors LLP 22 Church Street Wilmslow Cheshire SK9 1AU

INDEPENDENT AUDITOR

Deloitte LLP Statutory Auditor 2 Hardman Street Manchester United Kingdom M3 3HF

REGISTERED OFFICE

Mill Lane Warford Alderley Edge Cheshire SK9 7UD

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THE DAVID LEWIS CENTRE

TRUSTEES’ REPORT (including the Strategic report)

The Trustees, who are also Directors of the charity for the purposes of the Companies Act, present their annual report, including the Strategic Report, on the affairs of the charity, together with financial statements and auditor’s report, for the year ended 31 August 2020.

NAME AND REGISTERED OFFICE OF THE CHARITY

The full name of the charity is The David Lewis Centre and its registered office and principal operating address is Mill Lane, Warford, Alderley Edge, Cheshire, SK9 7UD. In presenting the work of the charity and in respect of specific business areas, the charity also makes itself known as David Lewis, The David Lewis School, and The David Lewis College.

TRUSTEES

The Trustees who served during the year, and thereafter, were:

R M Beressi (resigned 10/05/2020) D K Cornwall G Devlin S Devlin L Feerick A V Hollows A M Imrie (Chair) G Loughlin M E McLaughlin S Tebby-Lees D A Hole (appointed 01/01/2021)

No Trustee has any financial interest in the charity.

CONSTITUTION

The charity was formed in 1904 and was originally constituted as a trust. On 6 September 1990 the charity converted to a private company limited by guarantee without share capital under Section 30 of the Companies Act. At an Extraordinary General Meeting held on 17 April 2009 the company adopted a new Memorandum of Association under which it is now governed. The Articles of Association were amended by special resolution on 11 December 2018.

The charity’s Companies House registration number is 02537501 and the Charity Commission registration number is 1000392.

GOVERNANCE & MANAGEMENT

The charity is managed by a Board of Trustees which is required to meet a minimum of four times per year, although under present practice it meets a minimum of five times per annum. The Board of Trustees has formally adopted the Charity Governance Code for larger charities 2017.

The Board of Trustees delegates some responsibilities to committees which also meet regularly throughout the year. Current committees are Governance, Finance, School and College Governors, each of which is chaired by a Trustee. The minutes of all Trustee Board committees are circulated to all Trustees and the Chairs of each committee report to the Trustee Board meetings.

As recommended by the Charity Governance Code the Board regularly reviews its own performance and that of individual Trustees. Coordinated by the Company Secretary, the assessment process gathers Trustee’s feedback on the Board’s balance of skills, experience and knowledge, its diversity in the widest sense, how the Board works together and other factors relevant to its effectiveness. The consolidated assessment of performance is reviewed by the Governance Committee, which if required, recommends improvement actions to the Board. From 2019 onwards, the Board adopted the process whereby the Board Chair discusses individual performance with each Trustee and the Board Chair’s own performance is discussed and reviewed by the Chair of the Governance Committee, having collated the views of Board members.

The Board of Trustees appoints a full-time Chief Executive who chairs an Executive Board with responsibility for the day to day management of the charity within the policies, strategy and financial controls approved by the Trustees. There are currently three full-time operational Directors covering Pathways & Community, Education & Life Skills, Assessment & Treatment and two full-time operational managers covering Finance and Human Resources. There is also a part-time Medical Director who takes clinical responsibility for student and adult residents.

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THE DAVID LEWIS CENTRE

TRUSTEES’ REPORT (including the Strategic report) (continued)

The School and College Governors committee is responsible for the conduct of The David Lewis School and The David Lewis College and carries out all the statutory requirements of School and College Governing Boards.

The Trustees appoint up to three of their number to sit on the School and College Governors committee, one of whom chairs the committee.

REMUNERATION POLICY FOR KEY MANAGEMENT PERSONNEL

The trustees have identified the Executive team as the key management personnel of the charity. Executive pay is determined by the Governance committee. Decisions are informed by market testing of salaries, subject to affordability.

The Governance Committee has applied the same criteria of an annual pay review for executives, as is used for all other staff in the organisation, with in general the same percentage uplifts applying as for other staff.

ORGANISATIONAL STRUCTURE AND METHOD OF ELECTION OF TRUSTEES

The Governance Committee oversee the recruitment of new Trustees. The Committee at the request of the Board carry out an annual Trustee skills audit to identify any skills gaps the recruitment should seek to fill. Trustee vacancies are promoted widely, normally in the media and via other organisations and professional bodies so as to encourage a broad and diverse range of applicants. Shortlisting and interviews are completed by the Governance Committee which subsequently makes an appointment recommendation to the Board. All new Trustees are provided with an induction which includes relevant reading materials related to the governance of David Lewis. The Trustees are also required to visit the various services to meet key staff and familiarise themselves with the activities of the charity.

Trustees can be appointed by the Members at any Trustee Board Meeting in accordance with the Articles of Association of the company. The number of Trustees shall not normally be less than seven and no more than twelve. Trustees are appointed for a three year term of office and may offer themselves for re-election at the end of their term of office subject to a total term of office not exceeding nine years.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

In setting objectives and planning activities the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

The objects of the charity, as set out in the Memorandum of Association of the company, are:

The relief of those who are in need by reason of mental or physical disabilities, including epilepsy and associated neurological conditions (“the Beneficiaries”) in particular but without limitation by providing:

The organisation aims to continue providing a high level, holistic service to benefit those individuals with combinations of complex physical, mental health, behavioural, epilepsy and neurological conditions. A business plan for the year is in place which includes the operation of a Special Needs School, a specialist College of Further Education, adult residential facilities including community housing and adult continuing education facilities. Primary and secondary medical services, together with a wide range of therapies and professions allied to medicine, are available to support the organisation in achieving its stated objectives.

GEOGRAPHICAL ORGANISATION

The charity operates from its head office in Warford, Cheshire. Residential and assessment services are provided at the main site at Warford and community houses are provided in other locations in Cheshire. All services are available for service users and contracting authorities from anywhere in the United Kingdom and occasionally overseas.

INVESTMENTS AND CASH MANAGEMENT

The Memorandum and Articles of Association of the Charity permit wide powers for investment subject to such conditions and such consents as may be required by law. The Trustees’ current policy for investment is related to the working capital requirements and banking arrangements of the business. The Trustees believe that at present the most efficient, flexible and risk averse investment is to retain surpluses as cash. The nature of the

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THE DAVID LEWIS CENTRE

TRUSTEES’ REPORT (including the Strategic report) (continued)

business cash flow profile dictates that these surpluses are required to fund activities at certain times of the year. Any surpluses are currently retained as cash.

There have been no acquisitions of investments during the year.

INSURANCE FOR TRUSTEES

The Trustees are included in the Directors and Officers insurance cover which is maintained by the Charity for all Officers, Directors and Trustees. The Memorandum of Association was revised by Special Resolution at the Annual General Meeting in 2004 to enable Trustees to benefit from insurance by providing exemption to the clause which prevents Directors from benefiting from the company.

DISABLED EMPLOYEES

Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Charity continues and that appropriate training is arranged. It is the policy of the Charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

EMPLOYEE CONSULTATION

The Charity places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the charitable company. This is achieved through formal and informal meetings, monthly team briefings, “The Word” internal publications and the annual review. Employee representatives are consulted regularly through the Staff Consultative Forum on a wide range of matters affecting their current and future interests.

FUNDRAISING

The Charity does not contract with any individual, group or company of professional fundraisers in pursuance of its fundraising activities and employs a fundraising manager who is a member of the Institute of Fundraising to oversee fundraising activity. David Lewis is regulated by the Fundraising Standards Board and actively seeks to comply with those standards. The charity has not received any complaints in the reporting period with regards to its fundraising activities.

The Charity operates a fundraising policy whereby detailed standards are laid out to protect vulnerable people and other members of the public. The policy has measures in place to protect those people from behaviours which are an unreasonable intrusion on their privacy, are unreasonably persistent or place undue pressure on a person to give money or other property. There were no complaints received in the year.

S.172 STATEMENT

Trustees have a duty to promote the success of the Charity and, in doing so, are required by section 172(1) of the Companies Act 2006 to have regard to the following specific factors:

With regards to the factors below, the Charity has in place a range of policies and processes that promote corporate responsibility and ethical behaviour to ensure all are satisfied. The Governance Committee review and approve such policies on behalf of the Board. The Board also seeks feedback and offers guidance on actual practices.

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THE DAVID LEWIS CENTRE

TRUSTEES’ REPORT (including the Strategic report) (continued)

related to service users and those with whom we do business, and the Charity engages with the businesses on these topics, for example on changing service users’ needs. The Trustees also consider the likely consequences of any decision in the long-term

ENERGY AND CARBON REPORTING

The annual energy use figures are shown below:

Energy consumption 7,007,575 kWh Emissions from gas and fuel use 1,012 tonnes CO2 Emissions from electricity use 466 tonnes CO2 Aggregate emissions 1,478 tonnes CO2 Emissions per FTE 1.90 tonnes CO2

The above figures are re-produced from the energy and fuel companies’ billing statements for the year.

AUDITOR

Deloitte LLP has expressed its willingness to continue in office as auditor and a resolution to reappoint it will be proposed at the forthcoming Annual General Meeting.

The Charity has chosen in accordance with s.414C(11) of the Companies Act 2006 to report the following information within its Strategic Report:-

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

In the 12 months since the last Report and Accounts, the Charity has continued to provide high quality services and make investments in infrastructure and facilities at the Warford site and in neighbouring Cheshire towns.

The external environment has continued to follow the trend for devolved decision making to local government organisations. Pressure on public finances more generally continues, with all agencies having to make difficult decisions on how to prioritise and ration the money available while facing an upward trend in the number of people with complex needs requiring specialist services which are resource intensive and relatively expensive when compared to the needs of the general population.

Our continued insistence that commissioners fund assessed need in full means we are able to maintain and improve service standards and invest in new facilities and staff development to meet the changing needs of residential and day service users.

Against this backdrop in the year to 31 August 2020, David Lewis:

Our staff teams are our most important asset. By investing in training, ensuring our employment terms are well matched against the local and national employment market and providing support to ensure employee

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THE DAVID LEWIS CENTRE

absences are well managed, we continue to ensure that low staff turnover and absence rates, combined with a highly skilled workforce, consistently deliver a high standard of care to people placed in our care.

Through the year the number of service users accessing services in each part of the organisation was as follows:

Pathways & Community – residential
Pathways & Community – day placement
Education & Life Skills – residential
Education & Life Skills – day placement
Total
* at the end of the summer term		 2020
No
163
129
16
20
328		 2019
No
157
129
20
23
329

FINANCIAL REVIEW

The Charity receives the majority of its income from local authorities, clinical commissioning groups and the Education Funding Authority (EFA) for education and social care services. Fee and service related income increased to £28,787,000 in the year ended 31 August 2020 (2019: £27,821,000) due to higher numbers of residential Service Users and receipt of £426k of Covid-19 grant income, as detailed in Note 4

Before accounting for the impact of movements in the pension liability, the overall result produced net income for the year of £1,189,000 (2019: £1,093,000). Cash at bank was £3,803,000 (2019: £2,842,000).

Net current assets at £2,935,000 (2019: £2,324,000) have increased this year due to increased cash reserves and lower level of trade creditors at the year end. Capital additions in the year of £367,000 include investment in new vehicles, site road infrastructure, site wide defibrillators, Benn Levy home refurbishment and completion of the re-development of the Maple Corner/Laurel House property.

The amount of total funds held by the Charity at 31 August 2020 is £14,795,000 (2019: £14,596,000), of which £78,000 (2019: £76,000) are restricted funds.

The Charity is not dependent upon the support of any individual, corporation or class of donor.

PLANS FOR FUTURE PERIODS

The Charity continues to be flexible and responsive to an uncertain and difficult operating environment. The lack of clarity in a demand led market makes detailed planning over an extended time horizon extremely difficult. The added complexity of the Covid-19 pandemic has exacerbated future uncertainty. This lack of certainty is likely to continue year on year affecting all those working in this sector. The organisation will continue to respond and evolve.

In July 2019 the Trustees approved the Long Term Plan 2019-2023. This plan anticipates that Pathways & Communities is expected to grow organically. College and School student numbers are expected to decline slightly, but the College and School will seek, where possible, to maintain student numbers by responding flexibly to the changes in the commissioning environment for day, residential and weekly boarders on full time or part time placements. The plan also includes major investment into residential property refurbishment on the Warford site and in new facilities in the community. Due to Covid-19, many of the major investment decisions have been put on hold until such a time as more certainty is ascertained and the plan will need to be revisited at such time. Because of this uncertainty, the Charity has chosen to retain surpluses as reserves.

We will continue to review our adult day service provision with a view to offering a suitable Covid-safe service that local authorities wish to commission subject to ensuring all costs are sufficiently met by the revenues.

Where appropriate, plans will be developed to consider new services which meet the aims and objectives of the Charity.

The Charity will continue to adapt and improve residential properties at Warford and in the community to respond to changing needs and demands. The Charity will continue to monitor any required development of new community properties when and where necessary, however recent experience has shown no current demand for this, resulting in the sale of the Chester Road, Winsford property post balance sheet date. There will continue to be investments in IT systems to promote effective and efficient operations in key areas, particularly care management, facilities will be developed supported by fundraising and grants to promote

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THE DAVID LEWIS CENTRE

TRUSTEES’ REPORT (including the Strategic report) (continued)

development of learning and skills for service users and provide facilities which differentiate David Lewis from local authority run provision.

The programme of significant renewals investment at the Warford site in bathrooms, kitchens and infrastructure will be maintained to ensure that our facilities continue to be recognised as high quality and are well matched to the needs of our service users.

Following the withdrawal from actively participating in the Cheshire Pension Fund Local Government Pension Scheme in May 2011 we will continue to monitor the performance of this fund and take action as necessary to ensure that this significant drain on our financial resources is managed in an effective way.

GOING CONCERN

The Charity has sufficient financial resources, together with contracts with local authorities and suppliers varying from 1 to 24 months depending on the service provided. Having reviewed the Charity’s forecasts and other relevant evidence including various downside scenarios, the Trustees have a reasonable expectation that David Lewis has adequate resources to continue in operational existence for the foreseeable future. They therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

RISK MANAGEMENT

The Trustees regularly review the Charity's activities to identify the major strategic, business and operational risks which the Charity faces and to confirm that systems have been established to enable regular reports to be produced so that the necessary steps are taken to mitigate these risks. The systems established to mitigate risks are periodically reviewed to ensure that they still meet the needs of the Charity and to determine whether any remedial action needs to be taken. Risks are reviewed regularly by the Governance Committee and reviewed annually by the Board. The last such review by the Board took place on 20 October 2020.

The principal risks and uncertainties identified through this review are:

RESERVES POLICY

The Trustees review the reserves policy annually to reassess the risks and reflect changes in the environment in which David Lewis is operating, recognising that it is vulnerable to economic downturns given the pressures which affect its core local government marketplace. Moreover, despite the measures taken, the pension fund deficit continues to place a burden on the available resources.

The Trustees consider that David Lewis needs to hold reserves and net liquid funds to protect core activities (which means being able to fund obligations, including employer pension contributions, but not at the cost of charitable activities) in the event of an income shortfall and to promote balanced long-term strategic planning. Based on an evaluation of the services David Lewis provides, the Trustees’ review of the reserves policy on 14 February 2017 confirmed the Charity should hold a level of unrestricted funds and unrestricted net liquid funds of at least £500,000 and £1,750,000 respectively.

At 31 August 2020 the unrestricted funds (excluding fixed assets and the pension fund deficit) amounted to £2,466,000 (2019: £1,787,000) and unrestricted net liquid funds (cash at bank and in hand, less designated and restricted funds) amounted to £3,725,000 (2019: £2,766,000). The Trustees have excluded the pension fund deficit and bank loans from the calculation of unrestricted funds because the strategy for the recovery of the deficit and payment of the loans is clearly defined and the annual cost is fully provided for in the business plans.

9

THE DAVID LEWIS CENTRE TRUSTEES. REPORT (induding the Strategic report) (continued) ACKNOWLEDGEMENTS The achievements of the last year are the result of hard work and commitment by all staff and supporters of David Lewis. Whether working directly wth the service use[5 or behind the scenes, the Trustees would like to tharik all involved for their continuing dedication both to the service users and to the organisation as a whole. This Trustee Report and Strategic Report Yrfere approved and authorised for i$5ue by the Trustees on 18 February 2021. Neil Edwards Company Secretsry 10

THE DAVID LEWIS CENTRE

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees (who are also Directors of The David Lewis Centre for the purposes of Company Law) are responsible for preparing the Trustees' Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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THE DAVID LEWIS CENTRE

Independent auditor’s report to the members of The David Lewis Centre

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of The David Lewis Centre (the ‘charitable company’):

We have audited the financial statements which comprise:

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).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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.

Conclusions relating to going concern

We are required by ISAs (UK) to report in respect of the following matters where:

We have nothing to report in respect of these matters.

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 auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 respect of these matters.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

12

THE DAVID LEWIS CENTRE

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.

Auditor’s 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 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.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report included within the trustees’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Anderson FCCA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor Manchester, United Kingdom

19 February 2021

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THE DAVID LEWIS CENTRE

STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account) Year ended 31 August 2020

Note
Unrestricted
funds
£’000
INCOME FROM:
Donations and legacies
3
25
Charitable activities
4
28,361
Other trading activities
5
45
Investments
6
7
TOTAL INCOME
28,438
EXPENDITURE ON:
Raising funds
7
33
Charitable activities
8
27,184
TOTAL EXPENDITURE
27,217
Net income/(expenditure)
for the year
1,221
Other recognised
(losses)/gains:
Actuarial (losses)/gains on
defined benefit schemes
15
(946)
NET MOVEMENT IN FUNDS
275
RECONCILIATION OF
FUNDS:
Total funds brought forward
12,305
Net movement in funds for the
year
275
Total funds carried forward
16,17
12,580		 Restricted
funds
£'000
Endowment
funds
£’000
3
-
426
-
-
-
-
-

429
-
-
-
427
78
427
78
2
(78)
-
-
3
(78)
76
2,215
2
(78)
78
2,137		 Total
funds
2020
£’000
28
28,787
45
7
28,867
33
27,689
27,722
1,145
(946)
199
14,596
199

14,795		 Total
funds
2019
£’000
64
27,821
94
10

27,989
43
27,024
27,067

922
(1,121)
(199)
14,795
(199)
14,596

There were no other recognised gains or losses other than those listed above and the net income for the year. All income and expenditure derives from continuing activities.

See note 19 for Comparative Statement of Financial Activities analysed by funds.

14

THE DAVID LEWIS CEPrniE BALANCE SHEET As at 31 August 2020 2020 2019 £'ooo £'ooo £'ooo Tanglble assets 12 15,018 15,263 CURRINT ASSETS stocks Debtors Cash at bank and In hand 74 1.796 3,803 35 1,911 2,842 13 Cr•dltorn" wounts f8Hlng due wlthln one year 5.673 4,788 (2,464) 14 (2.742) NEf CURRENT ASSETS 2,931 2.324 Tot•1 l••• ¢urr•nt Il•blllll•• 17.950 17.587 Crndltor•: Jmounts fallln9 due Jfter one yeJr 14 (390) (461) Provl•l•Th for p•Mlon •ch•m• Il•blllty Is (2,764) 12.530) 14.795 14,596 PUNDS General reserve Deslgnated fvnd Revaluatlon reserve Penslon reserye 14.683 14,038 661 (2,764) 797 (2,530) Unrestrlrted funds Restrlcted fijnds Endowment funds 12.580 12,305 76 2.215 2,137 TOTAL VVNIYJ 16, 17 14.795 14,596 The financlal ststements ofThe Davld Lewls Cwtre. thjrlty number 10000392, company nLtmber 02537501, were approved by the Board of Trustees and authorlsed for issue on 18 February 2021 and they were slgned on Its behaLI by.. Alastsk Imde Chalr of Trustees 15

THE DAVID LEWIS CENTRE

CASH FLOW STATEMENT Year ended 31 August 2020

Note
Net cash flows from operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Net cash outflows from investing activities
Cash flows from financing activities:
Financing
Net cash outflows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at the end of the year
Cash and cash equivalents are represented by cash at bank and in hand.
Reconciliation of net income to cash generated by
operations:
Net income for the year
Adjustments for:
Interest receivable
Depreciation charges
Donation of fixed assets
Operating cash flow before movement in working capital
(Increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Adjustment for pension funding		 2020
£’000
1,399
(353)
(353)
(85)
(85)
961
2,842
3,803
2020
£’000
1,145
-
613
-
1,758
(40)
115
278
(712)
1,399		 2019
£’000
645
(59)
(59)
(114)
(114)
472
2,370
2,842
2019
£’000
922
-
637
-
1,559
(2)
(70)
(257)
(585)
645

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THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

1. ACCOUNTING POLICIES

Company and charitable status

The David Lewis Centre is a public benefit entity and is incorporated in England and Wales as a company limited by guarantee not having a share capital. There are currently 10 Trustees who are also the members of the company. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £1. The Charity is a registered charity. The registered office is given on page 3.

Basis of accounting

The Financial Statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” 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 2016; and the Companies Act 2006.

The particular accounting policies adopted by the Trustees are described below.

Going concern

The Trustees have, at the time of approving the Financial Statements, 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 preparation of the Financial Statements. Further detail is contained on page 8 of the Trustees’ report.

Funds’ structure

The Charity maintains various types of funds as follows:

Restricted funds

These represent grants and donations received which are allocated by the donor for specific purposes.

Endowment funds

Endowment funds represent grants, donations and legacies where the donor has stipulated that the capital must be retained.

Unrestricted funds

These represent funds which are expendable at the discretion of the Trustees in the furtherance of the objects of the Charity.

Income

All income is recognised in the Statement of Financial Activities when the conditions for receipt have been met and there is reasonable assurance of receipt. The following accounting policies are applied to income:

Fees and services related income

Fee income is accounted for in the period in which the service is provided.

Donations, gifts and activities for generating funds

Donations, gifts and all other receipts from fundraising are included in incoming resources when these are receivable unless the donor specifies that the receipt is for use in a future period, in which case the income is deferred until that period.

Where donors specify that donations are for particular restricted purposes, which do not amount to preconditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Legacies

Entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Where legacies have been notified to the Charity, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed where material.

Investment income

Investment income is accounted for when receivable.

17

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

1. ACCOUNTING POLICIES (continued)

Grants

Grants are recognised in the Statement of Financial Activities when the conditions for receipt have been complied with. Where a grant is received relating to a future accounting period, the income is deferred and not included in incoming resources until pre-conditions for use have been met.

Donated assets and services

Donated professional services and donated facilities are recognised as income when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

In accordance with the Charities SORP (FRS 102), there were no services donated by volunteers, therefore, no amounts are included in the Financial Statements.

Expenditure

Resources expended are included in the Statement of Financial Activities on an accruals basis. The following accounting policies are applied to expenditure.

Expenditure on raising funds

Fundraising and publicity costs represent expenditure in relation to staff members engaged in fundraising, and the related costs of the fundraising department. It also includes expenditure incurred during fundraising events.

Costs of Charitable activities in furtherance of the Charity’s objects

This includes all expenditure directly related to the objects of the Charity and comprises of the provision of services, medical research and property refurbishments. These are recognised as incurred.

Allocation of costs

The Charity’s operating costs include staff and other related costs. These are allocated between costs of generating funds and charitable expenditure, which include costs of activities in furtherance of the Charity’s objects, support costs and management and administration costs. Staff costs are allocated according to the costs of staff working directly in the relevant departments.

Support costs

These costs represent expenditure directly incurred in support of expenditure on the objects of the Charity and include such operational and management costs which cannot be directly attributable to the provision of the above objects. They also include Governance costs incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory requirements.

18

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

1. ACCOUNTING POLICIES (continued)

Tangible fixed assets

Tangible fixed assets are stated at cost, net depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than freehold land, and assets under construction at rates calculated to write off the cost or valuation, less estimated residual value, of each asset by equal annual instalments over its estimated useful life as follows:

Freehold properties 50 years Equipment and furniture 2-5 years Motor vehicles 3-5 years

The Charity operates a capitalisation policy of including in fixed asset additions only items of expenditure over £5,000. Items under this amount are written off directly through the Statement of Financial Activities.

Impairment reviews are carried out annually or where there is evidence of impairment.

Stocks

Stocks are stated at the lower of cost and net realisable value. Provision is made for obsolete, slow moving or defective items where appropriate.

Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Employee benefits

The Charity provides defined benefit pension schemes for all eligible employees as well as a defined contribution pension scheme for other employees.

For defined benefit schemes the amounts charged to resources expended are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the income and expenditure account if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in the statement of total recognised gains and losses.

Defined benefit schemes are funded, with the assets of the scheme being held in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability, net of the related deferred tax, is presented separately after other net assets on the face of the balance sheet.

For the defined contribution scheme the amount charged to the income and expenditure account in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Taxation

The Charity is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

19

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

1. ACCOUNTING POLICIES (continued)

Financial instruments

The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and cash in hand includes cash and short term highly liquid investments with short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

ln the application of the Charity's accounting policies, 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 Trustees do not consider there are any critical judgements or sources of estimation uncertainty

requiring disclosure.

3. ANALYSIS OF INCOME FROM DONATIONS AND LEGACIES



Donations and legacies		 2020
£’000
28
28		 2019
£’000
64
64

20

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

4. ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES



Care & residential
Education		 2020
£’000
23,711
5,076
28,787		 2019
£’000
21,746
6,075
27,821

In the year £426k of income within care & residential was grant income to cover increased Covid19 costs and comprised:

There were covenants as to how these monies could be spent and all monies were spent in the year in compliance with these covenants.

5. ANALYSIS OF INCOME FROM OTHER TRADING ACTIVITIES

5.
ANALYSIS OF INCOME FROM OTHER TRADING ACTIVITIES


Minor trading activities
6.
ANALYSIS OF INCOME FROM INVESTMENTS


Bank interest receivable
7.
ANALYSIS OF EXPENDITURE ON RAISING FUNDS


Raising donations and legacies		 2020
£’000
45
45
2020
£’000
7
7
2020
£’000
33
33		 2019
£’000
94
94
2019
£’000
10
10
2019
£’000
43
43
8.
ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
Activity
Activities
undertaken
directly
£’000
Support
costs
£’000
Care & residential
19,829
3,906
Education
3,190
764
23,019
4,670		 Total
2020
£’000
23,735
3,954
27,689		 Total
2019
£’000
22,175
4,849
27,024

21

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

Activity
Care & residential
Education
9.
ANALYSIS OF SUPPORT COSTS
2020
Raising
funds
£’000
Admin & personnel
2
Governance
-
Depreciation
-
Domestic services
-
Estates
-
Finance & IT
1
Interest payable
-
Transport
-
Total
3
2019
Raising
funds
£’000
Admin & personnel
2
Governance
-
Depreciation
-
Domestic services
-
Estates
-
Finance & IT
1
Interest payable
-
Transport
-
Total
3		 Activities
undertaken
directly
£’000
18,137
4,022
22,159
Care &
residential
£’000
Education
£’000
1,229
242
29
5
545
67
286
35
764
541
554
108
-
-
233
29
3,640
1,027
Care &
residential
£’000
Education
£’000
1,189
250
23
6
557
80
268
55
749
530
744
152
-
-
215
44
3,745
1,117		 Activities
undertaken
directly
£’000
18,137
4,022
22,159
Care &
residential
£’000
Education
£’000
1,229
242
29
5
545
67
286
35
764
541
554
108
-
-
233
29
3,640
1,027
Care &
residential
£’000
Education
£’000
1,189
250
23
6
557
80
268
55
749
530
744
152
-
-
215
44
3,745
1,117		 Support
costs
£’000
4,038
827
4,865
Total
2020
£’000
1,473
34
612
321
1,305
663
-
262		 Total
2019
£’000
Total
2018
£’000
22,175
19,228
4,849
7,330
27,024
26,558



Basis of allocation

Headcount

Headcount

Beds

Beds

Maintenance

Headcount

Headcount

Beds




Basis of allocation

Headcount

Headcount

Beds
Beds
Maintenance
Headcount
Headcount
Beds



















4,670
Total
2019
£’000
1,441
29
637
323
1,279
897
-
259
1,117 4,865
10. NET INCOME/(EXPENDITURE) FOR THE YEAR
2020 2019
£’000 £’000
Net income/(expenditure) is stated after charging:
Depreciation of owned assets 612 637
Rentals under operating leases 139 193
Auditor’s remuneration:
- Fees payable to the Charity’s auditor for the audit of the 33 28
Charity’s annual financial statements
- Fees payable to the Charity’s auditor for other services
to the Charity:
-
taxation services		 - -
-
Other services		 1 1

22

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

11. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL

The aggregate costs of employment were:

Wages and salaries
Social Security costs
Pension costs		 2020
£’000
19,736
1,674
785
22,195		 2019
£’000
19,433
1,608
712
21,753

The number of full time equivalent (FTE) persons employed during the year was:

Care & residential
Education
Support		 2020
No.
656
17
106
779		 2019
No.
660
21
103
784

The average monthly number of employees was:

Care & residential
Education
Support		 2020
No.
789
19
119
927		 2019
No.
793
24
119
936

The number of employees whose emoluments, excluding pension contributions and employers’ national insurance but including benefits in kind, were in excess of £60,000 was:

£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000
£90,000 - £100,000
£130,000 - £140,000
£140,000 - £150,000		 2020
No.
1
1
1
1
-
1
5		 2019
No.
2
3
-
-
1
-
6

The key management personnel of the Charity are listed on page 3. The total remuneration of the key management personnel of the Charity for the year totalled £625,000 (2019: £589,000). This includes employers’ pension and national insurance contributions.

No Trustees received remuneration during the current or prior year. No expenses were incurred by the Trustees (2019: £Nil).

23

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

11. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL (continued)

The total of donations received from the Trustees during the year was £Nil (2019: £Nil).

12. TANGIBLE FIXED ASSETS

Cost
At 1 September 2019
Additions
Disposals
At 31 August 2020
At 1 September 2019
Charge for the year
Disposals
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Freehold
property
£’000
Assets under
construction
£'000
23,498
123
-
279
-
-
23,498
402
8,552
-
483
-
-
-
9,035
-
14,463
402
14,946
123		 Equipment
and
furniture
£’000
3,643
38
(82)
3,599
3,516
79
(83)
3,512
87
127		 Motor
vehicles
£’000
810
50
(191)
669
743
51
(191)
603
66
67		 Total
£’000
28,074
367
(273)
28,168
12,811
613
(273)
13,150
15,018
15,263

The Charity's freehold properties were valued on existing use basis as at 1 September 1997 by professionally qualified valuers Chesterton PLC.

The Trustees previously took advantage of the transitional rules of FRS 15 'tangible fixed assets' to retain the previous valuation of the freehold property as the equivalent cost of those assets, consequently the valuation has not been updated.

The comparable amounts for freehold property included above at a valuation determined according to the historical cost accounting rules are:

Land and
buildings
£’000
Cost 17,090
Accumulated
depreciation (8,022)
Net book value
At 31 August 2020 9,068
Net book value
At 31 August 2019 9,632

24

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

13. DEBTORS

Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
Other debtors		 2020
£’000
1,512
267
17
1,796		 2019
£’000
1,599
301
11
1,911

14. CREDITORS

Amounts falling due within one year:
Bank loans (see below)
Trade creditors
Accruals
Deferred income
Taxation and social security
Other creditors
Amounts falling due after one year
Bank loans (see below)		 2020
£’000
75
140
951
976
380
220
2,742
390		 2019
£’000
75
196
764
883
370
176
2,464
461

All deferred income relates to amounts received in respect of care and education taking place after the year end .

The Charity holds two loans with National Westminster Bank Plc. The loans are secured by a fixed charge over certain of the Charity's property assets.

Loan one is repayable over 10 years from 25 June 2016. Interest on this loan is charged at 3.95%. The principal sum was £500,000.

Loan two is repayable over 10 years from 26 September 2016. Interest on this loan is charged at 2.97%. The principal sum was £250,000 .

25

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

14. CREDITORS (continued)

Deferred income
Brought forward
Released in the year
Deferred in the year
Carried forward
Bank loans
The maturity of the above amounts is as follows:
Within one year
Between one and two years
Between two and five years
After five years		 2020
£’000
883
(848)
941
976
466
75
75
225
91
466		 2019
£’000
882
(739)
740
883
536
75
75
225
161
536

26

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

15. EMPLOYEE RETIREMENT BENEFITS

The Charity contributes to two defined benefit schemes, The Cheshire Pension Fund (part of the Local Government Pension Scheme) and the Teachers’ Pension Scheme, as well as a defined contribution group personal pension plan.

Cheshire Pension Fund

The most recent actuarial valuations of scheme assets and the present value of defined benefit obligation were carried out at 31 March 2019 by Hymans Robertson LLP, a qualified independent actuary.

The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method. The projected unit credit method is an accrued benefits valuation method in which the scheme liabilities make allowance for projected earnings.

Key assumptions used at the balance sheet date (expressed as weighted averages):

Key assumptions used:
Discount rate
Expected rate of salary increases
Inflation / Future pension increases		 Valuation at
2020
2019
%
%
1.60
1.80
3.10
2.60
2.40
2.30

The assumed life expectations on retirement at age 65 are:

Valuation at
2020 2019
years years
Retiring today:
Males 21.2 21.2
Females 23.6 23.5
Retiring in 20 years:
Males 21.9 22.1
Females 25.0 25.0

Amounts recognised in the Statement of Financial Activities in respect of the defined benefit scheme are as follows:

Current service cost
Net interest cost
Past service cost
Net (expenditure) recognised within net
income/(expenditure) for the year
Other recognised losses – actuarial losses
Total cost relating to defined benefit scheme
recognised in the Statement of Financial
Activities		 2020
£’000
(5)
(39)
-
(44)
(946)
(990)		 2019
£’000
(4)
(46)
(121)
(171)
(1,121)
(1,292)

27

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

15. EMPLOYEE RETIREMENT BENEFITS (continued)

The amount included in the balance sheet arising from the Charity’s obligations in respect of its defined benefit scheme is as follows:

Present value of defined benefit obligations
Fair value of scheme assets
Net liability recognised in the balance sheet		 2020
£’000
(39,271)
36,507
(2,764)		 2019
£’000
(40,429)
37,899
(2,530)

Movements in the present value of defined benefit obligations were as follows:

At 1 September
Opening defined benefit obligation
Current service cost
Past service costs
Net interest costs
Contributions from scheme participants
Actuarial (losses)/gains
Benefits paid
At 31 August		 2020
£’000
(40,429)
(5)
-
(716)
(1)
392
1,488
(39,271)		 2019
£’000
(36,983)
(4)
(121)
(1,015)
(1)
(3,757)
1,452
(40,429)

Movements in the fair value of scheme assets were as follows:

At 1 September
Opening fair value of scheme assets
Actuarial gains
Actual
return
on
plan
assets
(excluding
amounts included in net interest cost)
Contributions from the employer
Contributions from scheme participants
Benefits paid
At 31 August		 2020
£’000
37,899
677
(1,338)
756
1
(1,488)
36,507		 2019
£’000
34,989
969
2,636
756
1
(1,452)
37,899

The analysis of the scheme assets at the balance sheet date was as follows:

Fair value of assets

Equity instruments
Debt instruments
Property
Cash		 2020
£’000
14,238
16,428
4,016
1,825
36,507		 2019
£’000
15,160
18,571
3,032
1,136
37,899

28

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

15. EMPLOYEE RETIREMENT BENEFITS (continued)

Teachers’ Pension Scheme

The Teachers’ Pension Scheme (TPS) is an unfunded defined benefit scheme. Contributions on a pay as you go basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972.

Under the definitions set out in the Financial Reporting Standards 17 (Retirement Benefits), the TPS is a multi-employer scheme. The Charity is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the Charity has taken advantage of the exemption in FRS 17 and has accounted for its contribution to the scheme as if it were a defined contribution scheme. The contribution made for the 12 month period was £62,000 (2019: £65,000).

Defined contribution group personal pension plan

This scheme is open to all employees. For employees with more than twelve months service the contribution rates are 6% for the employer and 6% for employees. For employees auto-enrolled under the statutory arrangements the contribution rates are 3% for the employer and 5% for employees.

The contributions made to this scheme by the Charity for the 12 month period totalled £716,000 (2019: £666,000).

16. MOVEMENTS ON FUNDS

At 1
September
2019
£’000
Unrestricted funds:
General fund
14,038
Revaluation reserve
Pension reserve
797
(2,530)
Unrestricted funds total
12,305
Endowment funds:
Revaluation reserve
1,813
Other reserve
402
Endowment funds total
2,215
Restricted fund:
Appeal Funds – other
76
Covid-19 support
-
Restricted funds total
76
Total charity funds
14,596		 Income
£’000
Expenditure
£’000
28,438
(27,037)
-
-
(136)
(44)
28,438
(27,217)
-
(66)
-
(12)
-
(78)
3
(1)
426
(426)
429
(427)
28,867
(27,722)		 Losses
£’000
-
-
(946)
(946)
-
-
-
-
-
-
(946)		 Transfers
£’000
(756)
-
756
-
-
-
-
-
-
-
-		 At
31 August
2020
£’000
14,683
661
(2,764)
12,580
1,747
390
2,137
78
-
78
14,795

29

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

16. MOVEMENTS ON FUNDS (continued)

At 1
September
2018
£’000
Unrestricted funds:
General fund
13,487
Revaluation reserve
Pension reserve
933
(1,994)
Unrestricted funds total
12,426
Endowment funds:
Revaluation reserve
1,879
Other reserve
414
Endowment funds total
2,293
Restricted fund:
Appeal Funds – other
76
Restricted funds total
76
Total charity funds
14,795		 Income
£’000
Expenditure
£’000
27,989
(26,682)
-
-
(136)
(171)
27,989
(26,989)
-
(66)
-
(12)
-
(78)
-
-
-
-
27,989
(27,067)		 Losses
£’000
-
-
(1,121)
(1,121)
-
-
-
-
-
(1,121)		 Transfers
£’000
(756)
-
756
-
-
-
-
-
-
-		 At
31 August
2019
£’000
14,038
797
(2,530)
12,305
1,813
402
2,215
76
76
14,596

The revaluation reserve represents the increase in value of unrestricted assets when the land and buildings were revalued on 1 September 1997, reduced by the depreciation charged in the year.

Restricted donated fixed assets for the Charity’s use are recognised immediately as a revaluation reserve within restricted funds. The above fund has been reduced by the depreciation charged in the year on the fixed assets and represents the value of those assets at the year end.

The appeal fund balances include various funds originating from the receipt of restricted donations and grants in the current year.

Covid-19 support income and expenditure is explained in the commentary to Note 4.

Transfers between funds reflect the completion of projects or satisfaction of any restrictions originally placed on the restricted donations.

The endowment funds represent the valuation of land and buildings endowed by The David Lewis Trust in 1904. These were revalued on 1 September 1997, having previously been revalued at 27 September 1990. These properties are held by The David Lewis Centre for Epilepsy Endowment, a charity registered under the same number as The David Lewis Centre.

30

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

17. ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Charity
Unrestricted
funds
£’000
Tangible fixed assets
12,881
Current assets
5,595
Current liabilities
(2,742)
Long-term liabilities
(390)
Pension liability
(2,764)
At 31 August 2020
12,580
Charity
Unrestricted
funds
£’000
Tangible fixed assets
13,047
Current assets
4,713
Current liabilities
(2,464)
Long-term liabilities
(461)
Pension liability
(2,530)
At 31 August 2019
12,305		 Restricted
funds
£’000
Endowment
funds
£’000
-
2,137
78
-
-
-
-
-
-
-
78
2,137
Restricted
funds
£’000
Endowment
funds
£’000
-
2,215
76
-
-
-
-
-
-
-
76
2,215		 Total funds
2020
£'000
15,018
5,673
(2,742)
(390)
(2,764)
14,795
Total funds
2019
£'000
15,262
4,789
(2,464)
(461)
(2,530)
14,596

18. FINANCIAL COMMITMENTS

Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases:

Payments due:
- within one year
- between one and five years
- after five years		 Leasehold properties
2020
£’000
2019
£’000
116
112
415
431
842
946
1,373
1,489

31

THE DAVID LEWIS CENTRE

NOTES TO THE FINANCIAL STATEMENTS Year ended 31[st] August 2020

19. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Note
Unrestricted
funds
£’000
INCOME FROM:
Donations and legacies
3
64
Charitable activities
4
27,821
Other trading activities
5
94
Investments
6
10

TOTAL INCOME

27,989

EXPENDITURE ON:

Raising funds
7
43
Charitable activities
8
26,946

TOTAL EXPENDITURE

26,989

Net income/(expenditure) for
the year

1,000


Other recognised
gains/(losses):


Actuarial gains/(losses) on defined
benefit schemes
15
(1,121)

NET MOVEMENT IN FUNDS

(121)

TOTAL FUNDS BROUGHT
FORWARD

12,426

TOTAL FUNDS CARRIED
FORWARD
16,17
12,305
 Restricted
funds
£’000
Endowment
funds
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
78
-
78
-
(78)
-
-
-
(78)
76
2,293
76
2,215		 Total
funds
2019
£’000
64
27,821
94
10
27,989
43
27,024
27,067
922
(1,121)
(199)
14,795
14,596

20. RELATED PARTY TRANSACTIONS

There have been no related party transactions in the reporting period that require disclosure.

32