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2023-08-31-accounts

Company registration number: 02537501 Charity registration number: 1000392

The David Lewis Centre

(A company limited by guarantee)

Annual Report and Financial Statements for the Year Ended 31 August 2023

Beever and Struthers One Express 1 George Leigh Street Manchester M4 5DL

The David Lewis Centre

Contents

Reference and Administrative Details 1 to 2
Trustees' Report (including the Strategic report) 3 to 13
Statement of Trustees' Responsibilities 14
Independent Auditors' Report 15 to 18
Statement of Financial Activities 19
Balance Sheet 20
Statement of Cash Flows 21
Notes to the Financial Statements 22 to 40

The David Lewis Centre

Reference and Administrative Details
Trustees P Brearley
E Cartwright
L Ellis
Dr V Halliwell
A V Hollows
G Loughlin
Dr S Tebby-Lees
C Spencer
T Kalloo, (Chair from 16 December 2023)
P McKevitt
Principal Officers - Key Chief Executive John Heritage
Management Personnel Company Secretary Neil Edwards
Key Management Personnel Director of Adult Residential and Day Services
Director of Clinical Services, Quality & Compliance
Director of Education
Director of Finance and Estates
Director of People, Culture and Systems
Patrons HRH The Duchess of Edinburgh GCVO
Viscount Ashbrook
Registered Office Mill Lane
Warford
Alderley Edge
Cheshire
SK9 7UD
Auditor Beever and Struthers
One Express
1 George Leigh Street
Manchester
M4 5DL

Page 1

The David Lewis Centre

Reference and Administrative Details

Solicitors: Hill Dickinson LLP No 1 St. Paul's Square Liverpool L3 9SJ Axis Professional Suite 21 - Edwin Foden Business Centre Moss Lane Sandbach Cheshire CW11 3AE Bankers National Westminster Bank Plc Spring Gardens Manchester M60 2DB

Page 2

The David Lewis Centre

Trustees' Report (including the Strategic report)

The Trustees, who are directors for the purposes of company law, present the annual report, including the Strategic Report, together with the financial statements and auditors' report of the charitable company for the year ended 31 August 2023.

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 and Officers

The Trustees and Officers serving during the year and since the year end were as follows:

Trustees: P Brearley (appointed 1 December 2023) E Cartwright (appointed 19 February 2024) D K Cornwall (resigned 7 November 2023) G Devlin (resigned 18 September 2023) S Devlin, (Chair) (resigned 16 December 2023) L Ellis L Feerick (resigned 5 February 2024) Dr V Halliwell A V Hollows G Loughlin Dr S Tebby-Lees C Spencer T Kalloo, (Chair from 16 December 2023) P McKevitt (appointed 29 November 2023)

No Trustee has any financial interest in the charity.

Structure, governance and management

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.

Page 3

The David Lewis Centre

Trustees' Report (including the Strategic report)

Governance and 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 Commission’s Governance Code, the Board regularly reviews its own performance and that of individual Trustees. Coordinated by the Company Secretary, the assessment process gathers Trustees’ 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 five full-time operational Directors covering Adult Residential & Day Services, Education, Clinical Services, Quality & Compliance, Finance & Estates and People (Human Resources), Culture & Systems.

There is also a part-time Medical Director who takes clinical responsibility for our adult residents.

The David Lewis School and The David Lewis College each have a delegated Governing Board Committee that carry out all the statutory requirements of the School and the College. The Trustees appoint up to three of their number to sit on the School and College Governing Board Committees, one of whom Chairs the Committee. There are three separate Trustees on each Committee and, consequently, a separate Chair for each.

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 the same percentage uplifts applying as for other staff.

Page 4

The David Lewis Centre

Trustees' Report (including the Strategic report)

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 charity. 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

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.

Page 5

The David Lewis Centre

Trustees' Report (including the Strategic report)

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 business cash flow profile dictates that these surpluses are required to fund activities at certain times of the year. Any surpluses are invested in secure Treasury deposits.

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.

Equality Act 2010

The Equality Act 2010 legally protects people from discrimination in the workplace and in wider society. There are 9 protected characteristics covered by the Equality Act: age, gender reassignment, being married or in a civil partnership, being pregnant or on maternity leave, disability, race, religion or belief, sex and sexual orientation. The charity ensures that it meets its legal obligation to all employees and service users with protected characteristics and is responsive to the needs of those who have multiple protected characteristics - often termed intersectionality. Whilst our responsibilities are to protect people from discrimination, in doing this we tend to focus on three main areas:

Reviewing data sources against such criteria can identify areas where access, experience or outcomes is detrimentally affected for some protected characteristics over others and enables organisations to take positive action to support a rebalance of indicators.

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, various 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.

Going concern

The charity has contracts with local authorities and suppliers varying from 1 to 24 months depending on the service provided. This provides sufficient financial resources for the charity to continue its operations over that period. Having reviewed the charity’s forecasts and other relevant evidence, 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.

Page 6

The David Lewis Centre

Trustees' Report (including the Strategic report)

Fundraising

In addition to employing a Fundraising Manager, the charity has continued to engage a fundraising consultant to help with its fundraising activities. It does not contract with any other individual, group or company of professional fundraisers in pursuance of its fundraising activities. 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.

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.

Page 7

The David Lewis Centre

Trustees' Report (including the Strategic report)

Energy and Carbon Reporting

The annual energy use figures are shown below:

2023 2022
Energy Consumption 6,630,808 kWh 6,355,536 kWh
Emissions from gas and fuel use 1,243 tonnes CO2 1,131 tonnes CO2
Emissions from electricity use 321 tonnes CO2 408 tonnes CO2
Aggregate emissions 1,564 tonnes CO2 1,539 tonnes CO2
Emissions per FTE 2.28 tonnes CO2 2.25 tonnes CO2

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

Page 8

The David Lewis Centre

Trustees' Report (including the 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 2023, David Lewis:

Page 9

The David Lewis Centre

Trustees' Report (including the Strategic report)

Strategic Report

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 absences are well managed, we continue to ensure as low a staff turnover and absence rate as possible. Combined with a highly skilled workforce, we 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		 2023
2022
No
No
151
156
29
15
6
7
45
32
231
210

Financial review

The charity receives the majority of its income from local authorities, integrated care boards and the Education & Skills Funding Authority (ESFA) for education and social care services. Fee and service related income increased to £30,420,000 in the year ended 31 August 2023 (2022: £27,748,000) due to the growth in our day and education services.

Before accounting for the impact of movements in the pension liability, the overall result produced a net deficit for the year of £816,000 (2022: surplus of £1,277,000). Cash at bank was £5,837,000 (2022: £8,785,000). Significant demands will be placed on this cash for continuation of our extensive refurbishment plan such that in the fiscal year ended 31 August 2024 it is expected to reduce by a further £2,500,000. This is despite prioritisation and rationalisation of the projects needed. The charity wishes to embark on more than it can, but without additional sources of financing or significant fundraising is limited in what it can achieve.

Net current assets at £5,546,000 (2022: £8,598,000) have decreased this year due to the decreased cash reserves after the significant project spend. With activities being reinstated after the prior year’s easing of Covid restrictions project expenditure increased from the prior year at £2,747,000 and were spent on embarking on fire safety maintenance projects, minor refurbishments and refreshing of residential properties, plus infrastructure repairs.

The amount of total funds held by the charity at 31 August 2023 is £21,310,000 (2022: £26,716,000), of which £118,000 (2022: £130,000) are restricted funds. The main reason for the significant decrease is due to the actual Cheshire Pension fund asset being £2,113k versus prior year FRS102 asset valuation of £6,505k. This £2,113k was realised upon receipt post balance sheet date.

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

Page 10

The David Lewis Centre

Trustees' Report (including the Strategic report)

Strategic Report

Plans for future periods

Aims and key objectives 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 timeline difficult. The charity will continue to respond and evolve and by establishing closer working relationships with commissioners we expect to reduce this uncertainty.

In July 2022 the Trustees approved the Long Term Plan 2022-2025. This plan anticipates that Pathways & Communities is expected to remain static, but College and School student numbers are expected to increase, building on the growth we have already achieved in the new fiscal year.

The plan also includes major investment into residential property refurbishments on the Warford site and in new facilities in Education & Day Opportunities. The charity had previously built a high level of reserves in order to meet these investment requirements.

The charity will continue to adapt and improve residential properties at Warford and in the community to respond to changing needs and demands. 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 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 restarted to ensure that our facilities continue to be recognised as high quality and are well matched to the needs of our service users.

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 17 October 2023.

The principal risks and uncertainties identified through this review are:

Page 11

The David Lewis Centre

Trustees' Report (including the Strategic report)

Strategic Report

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.

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 18 May 2023 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 2023 the unrestricted funds (excluding fixed assets and the pension fund asset) amounted to £3,362,000 (2022: £6,245,000) and unrestricted net liquid funds (cash at bank and in hand, less designated and restricted funds) amounted to £5,719,000 (2022: £8,655,000). The Trustees have excluded the bank loans from the calculation of unrestricted funds because the payment of the loans is clearly defined and the annual cost is fully provided for in the business plans.

The actual funds above are purposefully much higher than the minimal hold level in order to address the works needed to address building fire safety compliance and significant investment needed in reconfiguration of buildings to better serve the needs of our service users.

Page 12

The David Lewis Centre

Trustees' Report (including the Strategic report)

Disclosure of information to auditor

Each member has taken steps that they ought to have taken as a member in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

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 with the service users or behind the scenes, the Trustees would like to thank all involved for their continuing dedication both to the service users and to the organisation as a whole.

The Trustee annual report and Strategic report was approved by the Trustees of the charity on 16 April 2024 and signed on its behalf by:

Neil Edwards Company Secretary

Page 13

The David Lewis Centre

Statement of Trustees' Responsibilities

The Trustees (who are also the directors of The David Lewis Centre for the purposes of company law) are responsible for preparing the Trustees' Report (including the Strategic 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they 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 its 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 proper accounting records that can 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.

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

Page 14

The David Lewis Centre

Independent Auditor's Report to the Members of The David Lewis Centre

Opinion

We have audited the financial statements of The David Lewis Centre (the 'charity') for the year ended 31 August 2023, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, 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 United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 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 this regard.

Page 15

The David Lewis Centre

Independent Auditor's Report to the Members of The David Lewis Centre

Opinion on other matter prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees' Report (including the Strategic report).

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 14), 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Page 16

The David Lewis Centre

Independent Auditor's Report to the Members of The David Lewis Centre

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the charitable company’s industry and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team including relevant internal specialists such as pensions regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our specific procedures performed to address it are described below:

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

Page 17

The David Lewis Centre

Independent Auditor's Report to the Members of The David Lewis Centre

Use of our report

This report is made solely to the charitable company's Trustees, 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 charity's Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Sue Hutchinson FCCA (Senior Statutory Auditor) For and on behalf of Beever and Struthers, Statutory Auditor

One Express 1 George Leigh Street Manchester M4 5DL 29 April 2024 Date:.............................

Page 18

The David Lewis Centre

Statement of Financial Activities for the Year Ended 31 August 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investment income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net (expenditure)/income
Other recognised gains
and losses
Actuarial (losses)/gains
on defined benefit
pension schemes
22
Net movement in funds
Reconciliation of funds
Total funds brought
forward
Prior year adjustment
28
Total funds carried
forward
24		 Unrestricted
funds
£ 000
35
30,420
76
66
30,597
(48)
(31,275)
(31,323)
(726)
(4,590)
(5,316)
24,605
-
19,289		 Restricted
funds
£ 000
221
-
-
-
221
-
(233)
(233)
(12)
-
(12)
130
-
118		 Endowment
funds
£ 000
-
-
-
-
-
-
(78)
(78)
(78)
-
(78)
1,981
-
1,903		 Total
2023
£ 000
256
30,420
76
66
30,818
(48)
(31,586)
(31,634)
(816)
(4,590)
(5,406)
26,716
-
21,310		 Total
2022
£ 000
193
27,748
18
4
27,963
(15)
(26,671)
(26,686)
1,277
7,300
8,577
17,709
430
26,716

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 24.

The notes on pages 22 to 40 form an integral part of these financial statements. Page 19

The David Lewis Centre

(Registration number: 02537501) Balance Sheet as at 31 August 2023

2023 2022
Note £ 000 £ 000
Fixed assets
Tangible assets 15 13,814 11,855
Current assets
Stocks 16 64 87
Debtors 17 2,208 1,774
Cash at bank and in hand 18 5,837 8,785
8,109 10,646
Creditors: Amounts falling due within one year 19 (2,563) (2,048)
Net current assets 5,546 8,598
Total assets less current liabilities 19,360 20,453
Creditors: Amounts falling due after more than one year 20 (163) (242)
Net assets excluding pension liability 19,197 20,211
Pension scheme asset 22 2,113 6,505
Net assets including pension asset 21,310 26,716
Funds of the charity:
Endowment funds 24 1,903 1,981
Restricted income funds
Restricted funds 24 118 130
Unrestricted income funds
Unrestricted funds 24 19,289 24,605
Total funds 24 21,310 26,716

The financial statements on pages 19 to 40 were approved by the Trustees, and authorised for issue on 16 April 2024 and signed on their behalf by:

T Kalloo Chair of Trustees

The notes on pages 22 to 40 form an integral part of these financial statements. Page 20

The David Lewis Centre

Statement of Cash Flows for the Year Ended 31 August 2023

Note
Cash flows from operating activities
Net cash (expenditure)/income
Adjustments to cash flows from non-cash items
Depreciation
15
Investment income
7
Working capital adjustments
Decrease in stocks
16
Increase in debtors
17
Increase/(decrease) in creditors
19
(Increase) in retirement benefit obligations net of actuarial changes
22
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
7
Purchase of tangible fixed assets
15
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
20
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August		 2023
£ 000
(816)
651
(66)
(231)
23
(434)
515
(198)
(325)
66
(2,610)
(2,544)
(79)
(2,948)
8,785
5,837		 2022
£ 000
1,277
464
(4)
1,737
43
(85)
(102)
(554)
1,039
4
(398)
(394)
(89)
556
8,229
8,785

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 22 to 40 form an integral part of these financial statements. Page 21

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. There are currently 10 Trustees who are also members of the company. Each of the Trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is:

Mill Lane Warford Alderley Edge Cheshire SK9 7UD

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

The David Lewis Centre meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

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.

Fund 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 Trustees discretion in furtherance of the objectives of the Charity.

Page 22

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

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

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 pre-conditions 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.

Grants receivable

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 services and facilities

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.

Page 23

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

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.

Tangible fixed assets

Tangible fixed assets are stated at cost, net depreciation and any provision for impairment.

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 if there are indicators of impairment.

Depreciation and amortisation

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:

Asset class Depreciation method and rate Freehold properties 50 years Equipment and furniture 2-5 years Motor vehicles 3-5 years

Stock

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

Page 24

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

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 a small number of eligible employees as well as a defined contribution pension scheme for all 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.

Page 25

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

Financial instruments

Classification

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.

3 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 value of the pension liability is estimated by professional actuaries based on complex and interdependent assumptions such as life expectancy, long term salary and pension inflation and the discount rate used. Any variation in these assumptions will lead to a change in the value of the net pension liability. The Trustees do not consider that there are any other critical judgements or sources of estimation uncertainty requiring disclosure.

4 Income from donations and legacies

Donations and legacies;
Donations from individuals		 Unrestricted
funds
General
£ 000
35
35		 Restricted
funds
£ 000
221
221		 Total
2023
£ 000
256
256		 Total
2022
£ 000
193
193

Page 26

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

5 Income from charitable activities

Care and residential
Education
6
Income from other trading activities
Trading income;
Sales of goods and services
7
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
8
Expenditure on raising funds
Costs of generating donations and legacies		 Unrestricted
funds
General
£ 000
26,530
3,890
30,420
Unrestricted
funds
General
£ 000
76
76
Unrestricted
funds
General
£ 000
66
Direct costs
£ 000
48		 Total
2023
£ 000
26,530
3,890
30,420
Total
funds
£ 000
76
76
Total
2023
£ 000
66
Total
2023
£ 000
48		 Total
2022
£ 000
25,030
2,718
27,748
Total
2022
£ 000
18
18
Total
2022
£ 000
4
Total
2022
£ 000
15

Page 27

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

9 Expenditure on charitable activities

9
Expenditure on charitable activities
Care and residential
Education
Care and residential
Education		 Activity
undertaken
directly
£ 000
23,878
2,202
26,080
Activity
undertaken
directly
£ 000
21,410
563
21,973		 Activity
support costs
£ 000
4,376
1,130
5,506
Activity
support costs
£ 000
3,776
922
4,698		 2023
£ 000
28,254
3,332
31,586
2022
£ 000
25,186
1,485
26,671

Page 28

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

10 Analysis of governance and support costs

Support costs allocated to charitable activities

Basis of allocation
Admin and personnel
Headcount
Governance
Headcount
Depreciation
Beds
Domestic services
Beds
Estates
Maintenance
Finance and IT
Headcount
Transport
Beds
Basis of allocation
Admin and personnel
Headcount
Governance
Headcount
Depreciation
Beds
Domestic services
Beds
Estates
Maintenance
Finance and IT
Headcount
Transport
Beds		 Care and
residential
£ 000
1,630
36
390
341
882
946
151
4,376
Care and
residential
£ 000
1,431
33
373
287
850
703
99
3,776		 Education
£ 000
166
4
106
93
624
96
41
1,130
Education
£ 000
89
2
91
70
602
44
24
922		 Total
2023
£ 000
1,796
40
496
434
1,506
1,042
192
5,506
Total
2022
£ 000
1,520
35
464
357
1,452
747
123
4,698

11 Net (outgoing)/incoming resources

Net (outgoing)/incoming resources for the year include:

Operating leases - other assets
Audit fees
Other non-audit services
Depreciation of fixed assets		 2023
£ 000
88
30
3
651		 2022
£ 000
88
34
1
464

12 Trustees remuneration and expenses

No Trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

Page 29

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

13 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2023
£ 000
21,731
1,965
915
24,611		 2022
£ 000
19,122
1,724
776
21,622

The monthly average number of persons (including key management personnel) employed by the charity during the year expressed as full time equivalents was as follows:

Care and residential
Education
Support		 2023
No
522
53
124
699		 2022
No
568
14
98
680

The average monthly number of employees was:

Care and residential
Education
Support		 2023
No.
707
36
123
866		 2022
No.
681
17
109
807

The number of employees whose emoluments fell within the following bands was:

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£120,001 - £130,000
£130,001 - £140,000		 2023
No
1
1
2
1
-
1		 2022
No
2
2
1
-
1
-

The total employee benefits of the key management personnel of the charity were £649,711 (2022: £686,000).

Page 30

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

14 Auditors' remuneration

Audit of the financial statements
Other fees to auditors
All other non-audit services		 2023
£ 000
30
3		 2022
£ 000
34
1

15 Tangible fixed assets

Cost
At 1 September
2022
Additions
Disposals
At 31 August 2023
Depreciation
At 1 September
2022
Charge for the year
Eliminated on
disposals
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Freehold land
and buildings
£ 000
18,939
316
-
19,255
7,725
571
-
8,296
10,959
11,214		 Assets under
construction
£ 000
537
2,177
-
2,714
-
-
-
-
2,714
537		 Equipment
and furniture
£ 000
3,665
63
-
3,728
3,590
50
-
3,640
88
75		 Motor vehicles
£ 000
689
54
(6)
737
660
30
(6)
684
53
29		 Total
£ 000
23,830
2,610
(6)
26,434
11,975
651
(6)
12,620
13,814
11,855

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.

16 Stock

Stocks

2023 2022
£ 000 £ 000
64 87

Page 31

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

17 Debtors

Trade debtors
Prepayments and accrued income
Other debtors
18 Cash and cash equivalents
Cash at bank
19 Creditors: amounts falling due within one year
Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals
Deferred income
Deferred income movement
Deferred income at 1 September
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2023
£ 000
1,759
340
109
2,208
2023
£ 000
5,837
2023
£ 000
75
248
510
139
1,474
117
2,563
2023
£ 000
479
117
(479)
117		 2022
£ 000
1,339
314
121
1,774
2022
£ 000
8,785
2022
£ 000
75
64
404
206
820
479
2,048
2022
£ 000
980
479
(980)
479

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

20 Creditors: amounts falling due after one year

2023 2022
£ 000 £ 000
Bank loans 163 242

Page 32

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

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 prinicpal sum was £250,000.

21 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Land and buildings
Within one year
Between one and five years
After five years		 2023
£ 000
88
350
449
887		 2022
£ 000
88
350
538
976

22 Employment 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. As at 31 January 2023, the company formally exited The Cheshire Pension Fund due to the movement from deficit to surplus and ceased contributions from that point.

The Cheshire Pension Fund

The most recent actuarial valuations of scheme assets and the present value of defined benefit obligation were carried out at 31 January 2023 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.

The David Lewis Centre exited the Cheshire Pension Fund on 31 January 2023. On 20 October 2023 the charity received the payment from the Cheshire Fund. The figures disclosed below are the figures at 31 January 2023.

Principal actuarial assumptions

The principal actuarial assumptions at the statement of financial position date are as follows:

Page 33

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

2023
%
Discount rate
3.70
Future salary increases
2.90
Inflation / Future pension increases
6.20
Post retirement mortality assumptions
2023
Years
Current UK pensioners at retirement age - male
21.00
Current UK pensioners at retirement age - female
24.00
Future UK pensioners at retirement age - male
23.00
Future UK pensioners at retirement age - female
25.00
Reconciliation of scheme assets and liabilities to assets and liabilities recognised		 2022
%
4.25
4.05
3.35
2022
Years
21.00
24.00
22.00
26.00

The amounts recognised in the statement of financial position are as follows:

Fair value of scheme assets
Present value of defined benefit obligation
Defined benefit pension scheme surplus
Defined benefit obligation
Changes in the defined benefit obligation are as follows:
Present value at start of year
Actuarial gains and losses
Contributions by scheme participants
Present value at end of 31 January 2023		 2023
£ 000
34,553
(32,440)
2,113		 2022
£ 000
35,715
(29,210)
6,505
2023
£ 000
29,210
3,428
(198)
32,440

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

Fair value at start of year
Actuarial gains and losses
Fair value at end of 31 January 2023		 2023
£ 000
35,715
(1,162)
34,553

Page 34

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

Analysis of assets

The major categories of scheme assets are as follows:

Analysis of assets
The major categories of scheme assets are as follows:
Cash and cash equivalents
Equity instruments
Debt instruments
Property		 2023
£ 000
1,728
13,821
13,821
5,183
34,553		 2022
£ 000
1,786
14,286
14,286
5,357
35,715

Teachers' Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers. All teachers have the option to opt-out of the TPS following enrolment. The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department of Education on 30 October 2023. The key elements of the valuation and subsequent consultation are:

The next valuation result is due to be implemented from 1 April 2027.

The employer’s pension costs paid to TPS in the period amounted to £90,145 (2022: £76,000).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website. (https://www.teacherspensions.co.uk/news/employers/2023/10/valuation-result.aspx)

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The charity has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charity has set out above the information available on the scheme.

Page 35

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. 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 pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £1,113,493 (2022: £717,000).

23 Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £564,000 (2022: £Nil).

Page 36

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

24 Funds
Unrestricted funds
General
General fund
Revaluation reserve
Pension scheme asset
Restricted funds
Appeal Funds - other
Endowment funds
Expendable
Revaluation reserve
Other reserve
Total funds		 Balance at 1
September
2022
£ 000
17,711
389
6,505
24,605
130
1,615
366
1,981
26,716		 Incoming
resources
£ 000
30,597
-
-
30,597
221
-
-
-
30,818		 Resources
expended
£ 000
(31,385)
(136)
198
(31,323)
(233)
(66)
(12)
(78)
(31,634)		 Other
recognised
gains/(losses)
£ 000
-
-
(4,590)
(4,590)
-
-
-
-
(4,590)		 Balance at
31 August
2023
£ 000
16,923
253
2,113
19,289
118
1,549
354
1,903
21,310

Page 37

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

Unrestricted funds
General
General fund
Revaluation reserve
Pension scheme asset
Restricted
Appeal Funds - other
Covid-19 support
Total restricted funds
Endowment funds
Expendable
Revaluation reserve
Other reserve
Total funds		 Balance at
1
September
2021
£ 000
16,838
525
(1,364)
15,999
81
-
81
1,681
378
2,059
18,139		 Incoming
resources
£ 000
27,784
-
-
27,784
68
111
179
-
-
-
27,963		 Resources
expended
£ 000
Other
recognised
gains/(losses)
£ 000
(26,321)
-
(136)
-
(21)
7,300
(26,478)
7,300
(19)
-
(111)
-
(130)
-
(66)
-
(12)
-
(78)
-
(26,686)
7,300		 Transfers
£ 000
(590)
-
590
-
-
-
-
-
-
-
-		 Balance at
31 August
2022
£ 000
17,711
389
6,505
24,605
130
-
130
1,615
366
1,981
26,716

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 and cummulative depreciation charged to date.

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

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.

Page 38

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

25 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Pension scheme liability
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Pension scheme liability
Total net assets		 Unrestricted
funds
General
£ 000
11,911
7,905
(2,477)
(163)
2,113
19,289
Unrestricted
funds
General
£ 000
9,874
10,516
(2,048)
(242)
6,505
24,605		 Restricted
funds
£ 000
-
118
-
-
-
118
Restricted
funds
£ 000
-
130
-
-
-
130		 Endowment
funds
Expendable
£ 000
1,903
-
-
-
-
1,903
Endowment
funds
Expendable
£ 000
1,981
-
-
-
-
1,981		 Total funds at
31 August
2023
£ 000
13,814
8,023
(2,477)
(163)
2,113
21,310
Total funds at
31 August
2022
£ 000
11,855
10,646
(2,048)
(242)
6,505
26,716

26 Analysis of net funds

Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt		 At 1
September
2022
£ 000
8,785
8,785
At 1
September
2021
£ 000
8,229
8,229		 Financing cash
flows
£ 000
(2,948)
(2,948)
Financing cash
flows
£ 000
556
556		 At 31 August
2023
£ 000
5,837
5,837
At 31 August
2022
£ 000
8,785
8,785

27 Related party transactions

There were no related party transactions in the year.

Page 39

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2023

28 Prior period adjustment

The prior year adjustment of £430k was release of deferred income due to re-examination of the criteria for providing sums against this.

29 Comparative Statement of Financial Activities

Note
Income and Endowments from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investment income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net income/(expenditure)
Other recognised gains and
losses
Actuarial gains on defined
benefit pension schemes
Net movement in funds
Reconciliation of funds
Total funds brought forward
Prior year adjustment
Total funds carried forward
24		 Unrestricted
funds
£ 000
125
27,637
18
4
27,784
(15)
(26,463)
(26,478)
1,306
7,300
8,606
15,569
430
24,605		 Restricted
funds
£ 000
68
111
-
-
179
-
(130)
(130)
49
-
49
81
-
130		 Endowment
funds
£ 000
-
-
-
-
-
-
(78)
(78)
(78)
-
(78)
2,059
-
1,981		 Total
2022
£ 000
193
27,748
18
4
27,963
(15)
(26,671)
(26,686)
1,277
7,300
8,577
17,709
430
26,716

Page 40