2021-03-31-accounts

Report and Financial Statements

For the year ended 31 March 2021

Integrate (Preston and Chorley) Limited

(A Company Limited by Guarantee)

Company No: 02029641 Registered Charity No: 1002141

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

CONTENTS	PAGE
Legal and Administrative Information	1
Directors’ Report	2
Independent Auditor’s Report	13
Statement of Financial Activities	17
Balance Sheet	18
Statement of Cash Flows	19
Notes to the Financial Statements	20

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

LEGAL AND ADMINISTRATIVE INFORMATION

Key management personnel

Directors:	M J Robinson
	J T Dunn
	T McLean
	D Naden
	N Homan
	J Kay
	P McKeown
	L Arkwright
	M Bleasdale
	T Keely
Chief Executive:	S Pemberton
Project director, ISS:	P Green
Project director, Corporate
Services and Company Secretary:	A Guthrie
Project director, New Focus:	J Hutchinson (retired October 2020)
	A Watson (appointed October 2020)
Registered office:	112-116 Tulketh Brow
	Preston
	Lancashire
	PR2 2SJ
Charity Number:	1002141
Company Number:	02029641
Constitution:	The charity is registered as a company and is limited by
	guarantee. The charity is governed by Memorandum and
	Articles of Association.
Auditors:	MHA Moore and Smalley
	Richard House
	9 Winckley Square
	Preston
	PR1 3HP

1

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

The Trustees, who are also Directors of the charity for the purposes of the Companies Act, present their annual report and financial statements of the charity for the year ended 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 published in October 2019.

Structure, Governance and Management of the Organisation :

Constitution and Governing document:

Integrate is a charitable company whose Board of Directors are also charitable Trustees and are appointed to reflect the range of skills, interests and experience needed for effective governance, given the nature of the charitable activities. Trustees are appointed by the Board. The memorandum of association governs the activities of the charity and there are regular Board meetings to govern the business of the charity and monitor its operations, with operational senior managers reporting to project sub-boards to the agreed organisational plan. There have been no changes to the Board of Trustees this year. However Integrate saw the retirement of a long standing Project Director who was responsible for the oversight of New Focus. This prompted a review of the operational management structure to ensure sufficient support to the New Focus Project following the loss of this expertise. Integrate has managed to retain his input as an external consultant to offer clinical support to the people who use this service. The previous Development Manager has now been appointed to this role.

Recruitment/Selection of Trustee Directors:

Directors (Trustees) are sought whose skills build on the skills base of the current Board which includes sector specific skills, expertise and experience, as well as in finance, law, business, marketing, human resources, and management, and includes some stake-holder representation from a parent carer and an expert by experience.

Vacancies in the Board are advertised and recruited using local networks and the National Press. The current makeup of the Board was reviewed in March 2020, and it was agreed that there is a need to seek new members to allow for succession planning. The pandemic slowed down the recruitment of new trustees, but it is something that is intended to be pursued over the coming year.

The process of application for new members includes seeking references and attendance at three Board Meetings as an observer, to ensure both the present Board of Trustees and the applicant feel the appointment would be beneficial and appropriate. The applicant receives all relevant information regarding the organisation structure, Board structure, expectations of both the Sub Boards and the Board Committees. This is further supported with verbal information from either the Chief Executive or the Company Secretary. Once the suitability of the prospective candidate has been agreed by the current Board Members the new Trustee will then be confirmed formally in their role at the next AGM.

2

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

Induction and training:

The training of new Board Directors would include the provision of an initial induction pack containing key information about the organisation including the Plan, organisational structures, the last AGM report and Accounts, any other recent project reports which may be of assistance, material on the organisation’s constitution and memorandum of association, the role of the Board, and the up to date national guidance on Trustee standards and governance requirements. The Trustee job description is included in the pack and in any information to potential Trustees.

There would also be a 1:1 introductory session with the Chief Executive on the organisation including meeting key people and a similar 1:1 session with the Chair. Any new Chair has a period of induction which includes some induction from the retiring Chair or a designated experienced Board Director and on-going support/advice from them as required.

There continues to be the offer of ad-hoc training sessions to Trustees which have included invites and attendance to conferences on the Care Act 2015, Deprivation of Liberty, Safeguards, Safeguarding, training in financial areas and other events relevant to the sector, which, because of Covid, have been much reduced over this last year and taken place remotely. Operational Managers continue to offer regular briefings regarding current employment changes, Charity Commission information and other updates relevant to each project area. Training continues to be done jointly with senior operational management as appropriate.

Key management personnel remuneration

The remuneration of the Chief Executive and Project Directors is set and reviewed by the remuneration committee with approval from the full Board of Trustees. Benchmarking of local similar charities takes place to ensure parity with other local Social Care and Charity Sector key personnel remuneration.

Structure and wider network:

Trustees are responsible for the long term strategic direction of the charity, setting the aims and monitoring progress towards these, agreeing the annual plans and budgets within the overall strategy and key policies. The day to day management of the charity is delegated to the Chief Executive and the Project Directors, who are professional managers with experience and expertise in areas relevant to the projects. The Board continues to set financial parameters on level of spend authorised.

The Board meets regularly with the Chief Executive and Company Secretary as well as Project Directors who all attend quarterly Board meetings and under normal circumstances would have at least one yearly planning session. Due to the pandemic the quarterly Board meetings were held on-line.

The work of the Board continues to be supported by 3 sub -boards who look at the detail of the 3 major project areas. The sub- boards are supported by the 3 operational Project Directors. The Board concentrates on the organisation’s governance responsibilities and safeguarding the charity, looking towards its longer-term development, its strategic plan and overall financial stability. There may also be occasions where it is beneficial to run short-term “task and finish” groups with relevant operational management in relation to development and review issues across the whole organisation.

3

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT For the year ended 31 March 2021

Continued

Sub -Boards work to the Project operational plans and report to the Board on progress and exceptions/matters which might affect the overall charity’s risk or viability. The Project Directors manage the overall project activity to their agreed annual plans and ensure effective management of the activities to agreed standards, providing the specialist professional management and expertise. There may also be times when the Sub Boards co-opt members to follow up or advise on specific projects, for example Psychology or Housing Leads when applicable.

Relationship with any related parties:

Integrate has continued with its membership of the Lancashire Learning Disabilities Consortium (LLDC), which is an Industrial and Provident Society with charitable exemption and has a membership of Learning Disability Charities and Associate Members from Lancashire who share a commitment to promoting the welfare of adults with Learning Disabilities. Integrate, along with the LLDC, continue to represent issues for the Learning Disability sector across the county and have worked together throughout the last year to source PPE and provide support to each other including reviewing changing legislation and difficulties due to the pandemic. Integrate’s C.E.O. currently holds the position of Chair for the LLDC. Integrate also hosts the employment of the LLDC Business Manager post, the cost of which is fully covered by the Consortium.

The relationship between Integrate and Linkability, a charity based in Chorley which works with adults and children with severe Learning Disabilities, continues to be positive and is used as an opportunity to share knowledge and support in sector related issues.

Due to the pandemic and the loss of the Chair of Preston Learning Disability Forum, the meetings have been less frequent over the year and again held remotely. This is not the best medium for many people with a Learning Disability, however they continue to represent the sector in regards to issues locally, and Integrate continue to support the group.

Integrate’s Social Enterprise Projects continue their associations with The Social Enterprise Lancashire Network, an organisation created to support social business across Lancashire; The Woodhouse is a member of the National Community Wood Recycling Project. The Charity Shops promote their links with the sector through their Membership of the Chamber of Commerce. However, opportunities were much reduced over this year.

The sponsorship of Community Living, a magazine about Learning Disabilities has continued in this financial year. The CEO is a member of the Editorial Board and a trustee on the Board of C.L. Initiatives Limited, the charitable entity which govern the production and financial administration of the magazine.

Integrate continues to work in partnership with a number of Housing Associations, such as Places for People, Manchester Housing, Care Housing Association and Preston Community Gateway who all support the work of the Charity. Integrate acts as Managing Agents for some of these Housing Associations for which a fee is received. We continue to work with an increased number of private landlords due to the current social housing market.

4

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

Reviewing major risks:

Integrate review any major risks annually, this is carried out by the Directors and Trustees and is managed by a combination of employing suitably qualified and experienced staff at each level and by providing regular and relevant training alongside the development and implementation of policies and procedures.

Risk assessments and strategies are in place and reviewed regularly in order to manage risks. Key areas are monitored which include financial planning and management of the main organisational risks. There are Safeguarding and Whistleblowing policies in place and these help to identify risk at an early stage to allow appropriate interventions to take place. One of the Trustees has designated responsibility for Whistleblowing and there is a quality monitoring group consisting of members of the Trustees Board and the Senior Management Team.

The continued engagement of a Health and Safety consultant has helped the organisation to assess its Health and Safety risks by acting as our Competent Advisor. The ongoing monitoring of Health and Safety is reviewed monthly by the Staff Health and Safety and Staff Reps groups.

The majority of Integrate’s business continues to be with Lancashire County Council and is funded at the benchmark rate. Having the major part of the business funded by one authority does place a certain amount of risk to the organisation. However, this year has seen an increased number of people with support being funded by the NHS through Clinical Commissioning Groups.

The organisation also takes out comprehensive insurance to cover property and on-going operational risks and to indemnify the organisation’s professional managers and Directors. This would also provide for the costs of defending any action related to HR issues which might be taken against them at any time and any potential concerns are managed in full consultation and supported by Peninsula, together with an HR professional manager who offers training and guidance.

Integrate’s business continuity plan also covers areas such as the current pandemic, swine flu, winter flu, adverse weather conditions and other situations which may prevent staff from attending work. As staffing the service is the key risk in delivering support to vulnerable people, the plans allow for cover in case of untoward contingencies.

Integrate’s Internal Agency continues to be steady and provides the organisation with adequate members of agency workers to cover for holidays, sickness and training of permanent staff. This reduces the number of external agency staff utilised. On occasions when external agencies are used as a backup both parties would work together to ensure staff used are regulars and known to the individuals they support.

Objectives and Activities

The charity’s key objectives and activities are:

To develop, maintain and deliver local services in Preston and the surrounding area for adults and young people of 14 years and over with Learning Disabilities, and other adults in need whose disabilities benefit from more intensive support.

5

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

This includes providing Supported Housing and Domiciliary Support to various individuals in their home, to individuals in the family home, support towards employment and training activities, volunteering, and support to attend local colleges or other vocational activities.

Achievements and Performance

• There has been little change in the numbers of individuals receiving support from Integrate over the current year and the organisation have continued to provide support services in the local community to around 160 adults with learning disabilities, poor mental health, physical disabilities or hearing loss through continued contracts mainly with Lancashire County Council, but with around 25 individuals funded by Manchester City Council, other local authorities and Clinical Commissioning Groups. These services are responsible for the generation of the majority of Integrate’s income. Whilst the numbers of individuals who receive support has remained fairly static, sadly there have been some older people we supported who passed away over this period. The specialist service still has referrals in the pipeline but moving forward with them has been difficult due to restricted movement throughout the pandemic, so the numbers are slightly below the predicted target for the year. Integrate’s original services continued to consolidate and were unable to take up any referrals in this period.

• The application for the organisation to be on the Approved Provider List for Lancashire County Council was approved this year which means we can take work from Lancashire’s new framework.

• Staffing the service and keeping both the people we support and the staff safe over this period has been our main concern and focus. We moved to having smaller staff teams supporting a smaller group of people to prevent the spread of the virus. This has meant that we have had no face-to-face meetings with the Quality Checkers or tenants’ groups over this period so this work has been on hold.

• After undertaking Covid risk assessments and following government rules we reduced the numbers of people in our office bases and had a skeleton admin presence in all our offices over the year.

• Although people were unable to meet physically we saw a lot of innovative practices to keep the people we support well and healthy during this year, we saw people turning their dining rooms into café’s and pubs in order to give the same experience to the people we support, that they would ordinarily have received outside of the pandemic. Some of the people who receive support took up new hobbies including making Lego models, baking and delivering cakes, taking up cycling and we saw people learning new skills like cooking and decorating, which under normal circumstances they would not have tried.

• Some Social Enterprise projects had to close at the beginning of the year in line with government guidance, which saw a reduction in trading income for these projects; however, the gardening project commenced a delivery service early in the year, which saw sales continue and prevented all the stock being wasted.

6

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

• Later in the year Pak-it began packaging Covid test kits for the University of Central Lancashire which helped with activities for this project. Due to closure, we were unable to support people to attend these services for around seven months of the year which reduced the ability to give people new opportunities for the development of their skills. This also meant that the numbers of volunteers reduced for a major part of the year. Once we were able to reopen, we saw a return to business as usual with the relationships with the large construction companies continuing and, by the end of the year, many trainees had returned to take up their placements.

• Due to Covid restrictions and to limit the spread of the virus Integrate did not have any student placements or extra involvement from local schools and colleges in the year.

• Work towards meeting CQC standards continued over the year although most was undertaken remotely via emails and Zoom/Team meetings.

• Integrate continue to work in partnership with several Social Housing providers and private landlords to source appropriate properties and help the people we support to manage their tenancies. This last year saw a similar number of rental voids, which have been unavoidable due to the reduced number of new services over the year and the passing away of some of the people we support.

• Integrate have continued to support Community Living magazine, which highlighted issues for both the Learning Disability Sector and individuals with a Learning Disability throughout the pandemic. Most communication from both national and local forums has been via Zoom or Teams and whilst we have supported people to keep in touch with these groups contact has been sporadic and there has been less direct involvement.

• The CEO is a member of the local ‘Regional Strategy Network for Disability’ which feeds into the government work on disability issues; this has continued throughout the pandemic and is currently feeding back on the Disability Strategy.

• The average number of staff employed by Integrate in this year is 293 including internal agency staff. Integrate continue to support staff through basic and mandatory training and, whilst there is a well-developed training pathway to ensure training of staff meets the needs of the people we support, this has mainly been carried out by E-Learning this year, with a plan to move back to face-to-face training later in 2021.

• Integrate continues to support the training of lead trainers in physical intervention training and Positive Behavioural Support. This has contributed to a reduction in the number of people we support with physical intervention protocols in their support plan.

• Integrate continues to offer Management training and other suitable courses to Senior staff to equip them for the Senior Role. This includes some who are supported to become Trainers, helping to deliver and support the progression of staff teams through the Care Certificate. This ensures consistency and quality in relation to training qualifications and enhances the training offered and the skills of the organisation and has led to an increased number of qualified staff within the organisation.

7

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

• Two Senior support workers continued with their Social Work degree courses which are being funded by the Apprenticeship Levy, this will deliver qualified Social Workers in first line management positions.

• In order to offer support to staff in the wider geographical areas, there continues to be appropriate office provision and administrative support in these locations. This enables more tailored and accessible support for both staff and people we support , alongside increased and improved IT provision, in line with the development plan.

• We continue to offer Specialist Deaf Services which offer opportunities to people from the Deaf community to live a varied lifestyle in the local community.

• In March 2021 the sleep in ruling was finally judged by the Court of Appeal and this removed the uncertainty for Providers/funders with regards to paying sleep hours at NMW; this closed off a major financial uncertainty, ongoing since 2015.

• The above activities are in line with Integrate’s Strategic Plan and demonstrate how it meets its aims and objectives. Integrate continues to meet public benefit requirements, as set down by the Charity Commission, in relation to its charitable work and objects, by its involvement and influence in the local community, promoting inclusion and awareness about disadvantaged groups, alongside its main activities of direct support to these individuals.

The impact of Covid-19

Staff continued to work in very small tight teams in order to reduce the number of people they came into contact with, therefore reducing any spread of the virus should it be present. Similarly, back-office staff worked from home where possible with a small number covering the essential tasks in the office bases.

The day services and the Enterprise Projects were shut for extensive periods in line with Government restrictions and therefore we have experienced loss of income from these trading arms being closed. Some eligible staff from these areas were furloughed, along with other members of staff.

Sourcing appropriate PPE was no longer problematic this year and we have been able to recover these costs from Lancashire County Council and the Covid fund from the Government.

Going forward, there will still be a requirement to provide support services to various groups of vulnerable and disabled people, therefore it would be expected that Integrate will continue to provide these services as commissioned. Extra costs may continue to be incurred where we see high levels of symptomatic staff and positive Covid-19 tests. This could impact on service provision which could lead to higher costs with increased Statutory Sick pay and Discretionary Company Sick pay along with increased use of external agency staff.

Disabled employees

The charity gives full consideration to applications for employment from disabled persons where a disabled person can adequately fulfil the requirements. Where existing employees become disabled, it is the charity’s policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development.

8

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

Financial review

Designated Reserves:

The charity has designated reserves held in relation to the commitment it has to the people it supports, its housing management responsibilities and its staff. It also must maintain a level of cash flow to cover its monthly requirements and to take account of changes in the contracting environment. Further, Integrate also maintains reserves in order to support project development and to support applications to external funding sources.

Currently designated reserves are as follows and have been maintained at last year’s levels:

• Voids: Voids tend to be long term and filling them generates additional costs due to the length of time a property needs to be taken before a tenant can move in. Shared properties with voids can be difficult to fill due to compatibility issues with co-tenants.

• Office funds: is used to support major works/repairs/relocations on main offices.

• Housing provisions: ensures reserves to cover unexpected housing services responsibilities to support housing service needs.

• Development provision: The charity is looking to continue to consolidate its position in the next 12 months as development opportunities arise. Further funding from external sources would be required for large development projects.

• Continuity: the continuity fund has been maintained and viewed together with the general reserve the longer term target is to cover 2 months expenditure. Currently less than 1 month expenditure is covered but the gap has continued to narrow this year.

• Clients’ Continuity: this fund is used to support specific needs of clients relating to Integrate’s duty of care e.g. funeral costs, contribution to equipment required and welfare where no other sources are available.

• Training fund: funds continue to be used to support the further development of specialist training.

• Employment contingency: supports the impact of any additional costs due to restructuring or service changes in order to assist continuity and transition and any other unforeseen employment costs.

• Training Equipment Reserve: to support client and staff training equipment including that to support the needs of disabled people.

General Reserve:

As a business there is a need for a general reserve to support cash flow and payroll, where contracts are mainly paid 4 weeks in arrears. The general reserve and continuity reserve must be considered together to cover the charity’s monthly ongoing operating costs. The general reserve has increased by the net movement in unrestricted funds this year.

9

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

Restricted reserves:

A number of Covid-19 related grants were received in the year, all of which have been treated as restricted. These grants were fully spent in this Financial Year.

Reserves and Tangible Fixed Assets

Total reserves as at 31 March 2021 were £636,616 all of which are unrestricted funds. After the deduction from total funds of designated funds (excluding the continuity contingency fund) and fixed assets the total reserves are £50,702.

Principal funding sources:

The concern remains over the financial reliance on a major single funder Lancashire County Council due to the commitment to providing local services. Some inroads have been made with other Councils, the NHS and some Clinical Commissioning Groups with the specialist service provided by New Focus. Housing services also contribute significantly to the Charity and its commitment to support services in the community.

Service user leisure and holiday support:

Following a request from Lancashire County Council the Leisure Activity Fund was closed and all monies held on behalf of the People we Support were returned. Individuals will now need to be charged each time they take a holiday for the staff cost and for any extra hours required above their support hours.

Training related income :

Integrate receives training income for social work and nursing placements and has also received income from Skills for Care towards mandatory training requirements.

Future plans:

During the Next Year:

• To fully implement the new operational management structure to enhance support across the Projects.

• Continued delivery of high quality support, utilising Person-Centred approaches to enable services to meet individual need. To meet the development target of the specialist services in line with the strategic plan.

• Continued opportunities in the Social Enterprise Projects bringing together new ideas on the Horticulture Project, Charity Shops, the Woodhouse and Packing Project by seeking out new initiatives for work streams.

• To continue to develop, review and implement systems with continued involvement and representation from staff at all levels.

10

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

• To offer opportunities to increase the involvement of the people we support across the organisation with further training for Quality Checkers; the exploration of opportunities for paid work within the organisation and increased involvement in the recruitment process of all levels of staff. These opportunities should also include participation and membership within the organisation including representation to Sub Boards and Board in a variety of ways.

• To recruit to our current Board of Trustees to help with succession planning.

Fundraising:

We have considered the requirements of the Charities (Protection and Social Investment) Act 2016 regarding disclosures concerning fundraising and fundraising standards and confirm that these do not apply to the charity.

Statement of Trustees’ Responsibilities:

The Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. 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 the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and apply them consistently;

• observe the methods and principles of the Charities SORP 2019 (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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 detection of fraud and other irregularities.

In so far as the Trustees are aware:

• there is no relevant audit information of which the charitable company's auditor is unaware; and

• • the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

11

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

DIRECTORS’ REPORT

For the year ended 31 March 2021

Continued

Auditors:

A resolution proposing that MHA Moore and Smalley be reappointed as auditor of the company will be put to the Annual General Meeting.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

By order of the Board

……………………………………..

D Naden

Director

……………….

12

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTEGRATE (PRESTON AND CHORLEY) LIMITED

Opinion

We have audited the financial statements of Integrate (Preston and Chorley) Limited (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities (incorporating an income and expenditure account), the balance sheet, the statement of cash flows, and notes to the financial statements, including significant accounting policies. 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).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

13

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTEGRATE (PRESTON AND CHORLEY) LIMITED (continued)

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption in preparing the directors’ report and from the requirement to prepare a strategic report.

14

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTEGRATE (PRESTON AND CHORLEY) LIMITED (continued)

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement on page 11, the trustees (who are also the directors of the charitable company for the purposes 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 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.

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:

• Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Challenging assumptions and judgements made by management, in particular in relation to future performance in light of the impact of Covid-19;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;

• Reviewing correspondence with the Care Quality Commission and the Charities Commission; and

• Reviewing board minutes.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

15

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTEGRATE (PRESTON AND CHORLEY) LIMITED (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standardsand-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilitiesfor-audit.aspx. This description forms part of our auditor’s report.

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.

Christine Wilson (Senior Statutory Auditor) For and on behalf of MHA Moore and Smalley Chartered Accountants and Statutory Auditor Preston

…………………

16

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an income and expenditure account) For the year ended 31 March 2021

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Unrestricted Restricted|Total| |Funds|Funds|Funds|Total| |2021|2021|2021|2020| |Notes|£|£|£|£| |Income from:| |Charitable activities|2|8,002,987|231,192|8,234,179 8,332,993| |Investments|3|1,034|-|1,034|2,604| |────── ────── ────── ──────| |Total income|8,004,021|231,192|8,235,213 8,335,597| |══════ ══════ ══════ ══════| |Expenditure on:| |Charitable activities|5|8,011,522|213,077|8,224,599 8,335,081| |────── ────── ────── ──────| |Total expenditure|8,011,522|213,077|8,224,599 8,335,081| |══════ ══════ ══════ ══════| |Net income|7|(7,501)|18,115|10,614|516| |Transfers|18,115|(18,115)|-|-| |Other recognised gains:| |Remeasurements to pension liability|16|(4,461)|-|(4,461)|4,191| |────── ────── ────── ──────| |Net movement in funds|6,153|-|6,153|4,707| |Total funds brought forward|630,463|-|630,463|625,756| |────── ────── ────── ──────| |Total funds carried forward|636,616|-|636,616|630,463| |══════ ══════ ══════ ══════|

----- End of picture text -----

All of the above results are derived from activities which are continuing.

All gains and losses in the periods are included above.

17

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

BALANCE SHEET

As at 31 March 2021

			2021		2020
Notes		£	£	£	£
FIXED ASSETS
Intangible assets	10		61,496		77,028
Tangible assets	11		421,417		444,067
CURRENT ASSETS
Debtors	12	750,894		1,478,453
Cash at bank and in hand		864,231		437,125
		──────		──────
		1,615,125		1,915,578
CREDITORS
Amounts falling due within one year	13	(1,277,907)		(1,592,854)
		──────		──────
NET CURRENT ASSETS			337,218		322,724
			──────		──────
TOTAL ASSETS LESS CURRENT LIABILITIES			820,131		843,819
CREDITORS
Amounts falling due after more than one year	14		(183,515)		(213,356)
			──────		──────
NET ASSETS			636,616		630,463
			══════		══════
REPRESENTED BY:
Restricted funds	15		-		-
Unrestricted funds	15		636,616		630,463
			──────		──────
Total funds			636,616		630,463
			══════		══════

These financial statements have been prepared in accordance with the provisions applicable to companies entitled to the small companies’ regime.

The financial statements were approved by the Board on ……………….

Signed on behalf of the Board of Directors

……………………………………………..

D Naden Director Company No: 02029641

18

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

STATEMENT OF CASH FLOWS For the year ended 31 March 2021

Cash generated by / (used in) operating activities (a) Cash flows from investing activities Investment income Interest paid Purchase of intangible fixed assets Purchase of tangible fixed assets Cash used in investing activities Cash flows from financing activities Repayment of borrowings Cash used in by financing activities Increase / (Decrease) in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year (a) Reconciliation of net movement in funds to net cash flow from operating activities Net income for the year Investment income received Interest paid Amortisation Depreciation Decrease / (Increase) in debtors Decrease in creditors Employers pension deficit contributions (note 16) Cash generated by / (used in) operating activities	2021 Total £ 437,887 1,034 (2,948) - (4,800) (6,714) (4,067) (4,067) 427,106 437,125 864,231 10,614 (1,034) 6,420 15,532 27,450 727,559 (316,608) (32,046) 437,887	2020 Total £ (587,888)
		2,604 (3,612) (6,672) (38,666)
		(46,346)
		(3,307)
		(3,307)
		(637,541) 1,074,666
		437,125
		516 (2,604) 5,984 13,223 24,880 (450,728) (148,524) (30,635)
		(587,888)

19

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

1. ACCOUNTING POLICIES

a) General information and basis of preparation

Integrate (Preston and Chorley) Limited is a company limited by guarantee, incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity (the members of the company are the Directors named on page 1). The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are included within the Directors’ Report.

The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £000.

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

b) Going concern

The global Covid-19 pandemic will have a significant impact on a number of organisations. The trustees are responding to the challenges currently being faced as a result of this pandemic and together with management have put in place new risk management processes to minimise the impact of the virus on employees and service users. The management team are reviewing operational and staffing impacts caused by the outbreak on a regular basis and the charity has taken advantage of the government’s employment support schemes and keeps the situation under regular review.

In light of the measures implemented and following a review of the financial forecasts, together with funds held, the trustees have concluded that it remains appropriate to prepare these financial statements on the going concern basis as the budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

20

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

c) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is described by its title within the directors’ report. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors. The aim and use of each restricted fund is described by its title within the directors’ report.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income:

• Voluntary income is received by way of donations and is included in full in the SOFA when receivable.

• Investment income is included when receivable.

• Incoming resources from charitable trading activities are accounted for when earned.

The charity receives government grants in respect of Coronavirus Job Retention Scheme and Infection Control Fund. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Income received in advance of an event or provision of specified service is deferred until the criteria for income recognition are met.

21

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

e) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Detailed analyses of the expenditure, including irrecoverable VAT where applicable, are provided in the notes to the accounts.

• Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both the direct costs and support costs relating to these activities and services.

• Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and costs linked with the strategic management of the charity.

• Support costs relate to costs incurred in carrying out the central functions. These costs have been allocated to the charitable activity – enabling young people and adults with a learning disability.

f) Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

• Freehold buildings 1%-20% straight line

• • Fixtures, fittings and equipment 12.5%-33.3% straight line • Employment Unit equipment 12.5%-25% straight line

g) Intangible fixed assets

Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

• Software 14.2% - 20% straight line (over 5-7 years)

h) Debtors

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.

22

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

i) Creditors

Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due.

j) Financial instruments

The charity only 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.

k) Pensions

The company contributes to a multi-employer scheme. As the proportion of the fund attributable to Integrate (Preston and Chorley) Limited cannot be calculated this scheme has been treated as if it was a defined contribution scheme. As the scheme is in deficit and the company has agreed to a deficit funding arrangement, the company recognises a liability for this obligation which is equal to the discounted present value of the future deficit payments.

l) Operating leases

Rentals applicable to operating leases are charged to the SOFA on a straight line basis over the term of the lease.

m) Taxation

The company is a registered charity and is not liable to taxation on its charitable activities.

n) Judgements and key sources of estimation uncertainty

The Directors do not believe that there are any estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

23

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

2. INCOME FROM CHARITABLE ACTIVITIES

----- Start of picture text -----
|||||| |---|---|---|---|---| |Unrestricted|Restricted|Total|Total| |2021|2021|2021|2020| |£|£|£|£| |Statutory Funds|6,860,671|-|6,860,671 7,082,132| |Housing Funds|791,978|-|791,978|870,369| |Social Enterprises|271,512|-|271,512|334,461| |Training (including secondment)|9,559|-|9,559|2,000| |Grants|-|231,192|231,192|-| |Project Funded Income|10,530|-|10,530|-| |Self-Funding|-|-|-|105| |Other|58,737|-|58,737|43,926| |──────|──────|────── ──────| |8,002,987|231,192|8,234,179 8,332,993| |══════|══════ ══════ ══════|

----- End of picture text -----

All income from charitable activities was unrestricted in the previous year.

3. INCOME FROM INVESTMENTS

This comprises building society interest. All investment income was unrestricted in the current and previous year.

4. SUPPORT COSTS

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Wages, salaries and other staff related costs|316,260|296,354| |Premises related costs|56,870|37,356| |Communications costs|26,935|23,797| |Legal and professional services|96,975|80,120| |Sundry expenses|1,174|2,038| |Amortisation|15,532|13,223| |Depreciation|22,398|19,827| |Bank charges and interest|7,253|4,106| |────── ──────| |543,397|476,821| |══════ ══════|

----- End of picture text -----

24

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

5. EXPENDITURE ON CHARITABLE ACTIVITIES

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Wages, salaries and other staff related costs|6,620,425 6,793,386| |Premises related costs|790,904|761,833| |Communications costs|87,241|87,697| |Legal and professional services|96,368|110,361| |Other Social Enterprise costs|20,828|56,051| |Sundry expenses|44,643|26,738| |Depreciation|5,052|5,053| |Bank charges and interest|5,290|7,582| |Support costs (see note 4)|543,397|476,821| |Governance costs (see note 6)|10,451|9,559| |────── ──────| |8,224,599 8,335,081| |══════ ══════|

----- End of picture text -----

Included within the above total is £213,077 (2020: £nil) of restricted expenditure related to one charitable activity: Enabling Young People and Adults with a Learning Disability and Others In Need.

6. GOVERNANCE COSTS

----- Start of picture text -----
|||| |---|---|---| |These costs are as follows:|2021|2020| |£|£| |External audit|8,525|7,875| |External audit - irrecoverable VAT|1,705|1,575| |Trustees’ expenses|221|109| |────── ──────| |10,451|9,559| |══════ ══════|

----- End of picture text -----

25

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

7. NET INCOME/ (EXPENDITURE) FOR THE YEAR

----- Start of picture text -----
|||| |---|---|---| |This is stated after charging:|2021|2020| |£|£| |Amortisation|15,532|13,223| |Depreciation|27,450|24,880| |Auditors’ remuneration|8,525|7,875| |Rentals under operating leases|635,977|597,275| |══════ ══════| |2021|2020| |£|£| |Wages and salaries|5,775,390 5,945,267| |Social security costs|421,585|452,802| |Pension costs|125,283|128,514| |────── ──────| |6,322,258 6,526,583| |══════ ══════|

----- End of picture text -----

8. STAFF COSTS

The average monthly number of salaried employees during the year was:

----- Start of picture text -----
|||| |---|---|---| |Full and part time|293|309| |══|══| |Full time equivalents|261|259|

----- End of picture text -----

One (2020: nil) employee received total employee benefits (excluding employer pension costs of more than £60,000 during the current year, earning between £60,001 and £70,000.

The directors (trustees) did not receive any remuneration during the year. Travel expenses amounting to £221 (2020: £109) were reimbursed to one (2020: one) director (trustee) during the year.

The key management personnel of the charity comprise the Directors, the Chief Executive, and the three Project Directors as listed on page 1. The total employee benefits of the key management personnel of the charity, including National Insurance and pension contributions, were £248,944 (2020: £224,748).

26

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

9. RELATED PARTY TRANSACTIONS

D Naden and S Pemberton are trustees of C.L. Initiatives Limited. During the year subscription and seminar fees of £4,000 (2020: £4,840) were paid to this entity.

D Naden is a trustee of Link-Ability. During the year expenditure of £nil (2020: £216) was recharged to this entity. At the year end, the amount outstanding was £nil (2020: £810).

10. INTANGIBLE FIXED ASSETS

	Software	Total
	£	£
Cost
At 1 April 2020	90,251	90,251
	─────	─────
At 31 March 2021	90,251	90,251
	─────	─────
Amortisation
At 1 April 2020	13,223	13,223
Charge for year	15,532	15,532
	─────	─────
At 31 March 2021	28,755	28,755
	─────	─────
Net book value
At 31 March 2021	61,496	61,496
	═════	═════
At 31 March 2020	77,028	77,028
	═════	═════

27

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

11. TANGIBLE FIXED ASSETS

		Freehold	Fixtures	Social
		land and	and	Enterprise
		buildings	fittings	equipment	Total
		£	£	£	£
	Cost
	At 1 April 2020	528,554	107,679	30,305	666,538
	Additions	-	4,800	-	4,800
		─────	─────	─────	─────
	At 31 March 2021	528,554	112,479	30,305	671,338
		─────	─────	─────	─────
	Depreciation
	At 1 April 2020	131,745	68,966	21,760	222,471
	Charge for year	7,079	15,319	5,052	27,450
		─────	─────	─────	─────
	At 31 March 2021	138,824	84,285	26,812	249,921
		─────	─────	─────	─────
	Net book value
	At 31 March 2021	389,730	28,194	3,493	421,417
		═════	═════	═════	═════
	At 31 March 2020	396,809	38,713	8,545	444,067
		═════	═════	═════	═════
12.	DEBTORS
				2021	2020
				£	£
	Trade debtors			595,319	1,183,659
	Prepayments and accrued income			155,575	294,794
				──────	──────
				750,894	1,478,453
				══════	══════

28

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

13. CREDITORS: amounts falling due within one year

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Bank loans (note 14)|4,014|3,314| |Trade creditors|82,503|92,389| |Other tax and social security|102,759|100,739| |Accruals and deferred income|1,055,624 1,364,366| |Pension deficit payments (note 16)|33,007|32,046| |────── ──────| |1,277,907 1,592,854| |══════ ══════|

----- End of picture text -----

Included within the accruals and deferred income total above are LAF accounts of £nil (2020: £48,035). These accounts represent monies held on behalf of service users. Receipts and payments within these accounts are not shown as income and expenditure in the financial statements of the charity.

14. CREDITORS: amounts falling due after more than one year

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Bank loans|86,088|90,855| |Pension deficit payments (note 16)|97,427|122,501| |────── ──────| |183,515|213,356| |══════ ══════| |Bank loans fall due for payment as follows:| |2021|2020| |Amounts wholly repayable by instalments| |£|£| |Bank loans| |Within one year|4,014|3,314| |Between two and five years|86,088|90,855| |After more than five years|-|-| |────── ──────| |90,102|94,169| |══════ ══════|

----- End of picture text -----

Interest is payable at base rate plus 3.1%. The bank loan is secured by a fixed charge on the freehold land and buildings it relates to.

29

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

15. FUNDS General Designated funds Voids reserve Office fund Housing provisions Development provision Continuity contingency Clients’ contingency Training fund Employment contingency Training equipment reserve General and designated Restricted funds Covid-19 infection control funds Covid-19 workforce capacity Coronavirus job retention scheme (CJRS) Covid-19 income guarantee scheme Covid-19 income support grant Total funds		At 1 April 2020 £ 227,463 25,000 12,500 10,000 25,000 300,000 10,000 5,000 12,500 3,000 630,463 - - - - - - 630,463	Income £ 7,963,562 40,459 - - - - - - - - 8,004,021 99,160 30,474 92,567 3,530 5,461 231,192 8,235,213	Expenditure £ (7,931,567) (40,615) (4,261) (2,736) (6,216) - (1,689) (4,104) (20,334) - (8,011,522) (90,036) (30,474) (92,567) - - (213,077) (8,224,599)		Other gains, losses and transfers £ (25,842) 156 4,261 2,736 6,216 - 1,689 4,104 20,334 - 13,654 (9,124) - - (3,530) (5,461) (18,115) (4,461)	At 31 March 2021 £ 233,616 25,000 12,500 10,000 25,000 300,000 10,000 5,000 12,500 3,000 636,616 - - - - -	At 31 March 2021 £ 233,616 25,000 12,500 10,000 25,000 300,000 10,000 5,000 12,500 3,000 636,616 - - - - -
								- - - - -
								-
							636,616

The restricted funds received during the year were all in relation to the Covid-19 pandemic. The purpose of these funds was to facilitate measures to reduce and control infections. The CJRS grant was received from HMRC to retain jobs during the pandemic. All other grants were received from local authorities.

30

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

15. FUNDS – PREVIOUS YEAR At 1 April 2019 £ General 222,756 Designated funds Voids reserve 25,000 Office fund 12,500 Housing provisions 10,000 Development provision 25,000 Continuity contingency 300,000 Clients’ contingency 10,000 Training fund 5,000 Employment contingency 12,500 Training equipment reserve 3,000 General and designated 625,756 Total funds 625,756	Income Expenditure Other gains, losses and transfers £ £ £ 8,300,121 (8,238,799) (56,615) 35,476 (35,439) (37) - (6,064) 6,064 - (7,665) 7,665 - (12,143) 12,143 - - - - (1,627) 1,627 - (17,394) 17,394 - (12,646) 12,646 - (3,304) 3,304 8,335,597 (8,335,081) 4,191 8,335,597 (8,335,081) 4,191	At 31 March 2020 £ 227,463 25,000 12,500 10,000 25,000 300,000 10,000 5,000 12,500 3,000 630,463 630,463

The use and purpose of company reserves is detailed in the Director’s Report, under Financial review – Policy on reserves.

31

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

16. PENSION COSTS

Integrate (Preston and Chorley) Limited participates in The Pensions Trust’s Growth Plan (the scheme). This is a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

• From 1 April 2019 to 31 January 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1st April)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

• From 1 April 2016 to 30 September 2025: £12,945,440 per annum (payable monthly and increasing by 3% each on 1st April)

• From 1 April 2016 to 30 September 2028: £54,560 per annum (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

32

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

16. PENSION COSTS (continued)

As the scheme is in deficit and the company has agreed to a deficit funding arrangement, the company recognises a liability for this obligation. The amount recognised of £130,434 (2020: £154,547) is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

A reconciliation of the total liability included within creditors is shown below. A total of £33,007 (2020: £32,046) is shown as due in less than 1 year, with the balance shown as due in greater than 1 year.

At 1 April Unwinding of the discount factor (interest expense) Deficit contribution paid Remeasurements - impact of any change in assumptions At 31 March	2021 £ (154,547) (3,472) 32,046 (4,461) (130,434)	2020 £ (187,000) (2,372) 30,634 4,191 (154,547)

The charges/(credits) recognised in the statement of financial activities are shown below:

Interest expense Remeasurements to pension liability The assumptions used are shown below: Rate of discount	2021 2020 £ £ 3,472 2,372 4,461 (4,191) 2021 2020 % % 0.66 2.53

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

At the year-end £25,761 (2020: £25,988) was owed to the scheme in respect of contributions.

33

INTEGRATE (PRESTON AND CHORLEY) LIMITED (A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

			2021
	Restricted	Unrestricted	Total
	£	£	£
Intangible fixed assets	-	61,496	61,496
Tangible fixed assets	-	421,417	421,417
Net current assets	-	337,218	337,218
Creditors due after more than 1 year	-	(183,515)	(183,515)
	──────	──────	──────
	-	636,616	636,616
	══════	══════	══════
			2020
	Restricted	Unrestricted	Total
	£	£	£
Intangible fixed assets	-	77,028	77,028
Tangible fixed assets	-	444,067	444,067
Net current assets	-	322,724	322,724
Creditors due after more than 1 year	-	(213,356)	(213,356)
	──────	──────	──────
	-	630,463	630,463
	══════	══════	══════

18. FINANCIAL COMMITMENTS

Operating lease commitments

At the year end, the total of the company’s future minimum lease payments under non-cancellable operating leases was:

	Land &	Buildings	Other
	2021	2020	2021	2020
	£	£	£	£
Amounts due within one year	339,866	328,943	7,358	8,597
Amounts due between one and five years	22,610	-	3,515	8,723
	──────	──────	────── ──────
	362,476	328,943	10,873	17,320
	══════	══════	══════ ══════

34

INTEGRATE (PRESTON AND CHORLEY) LIMITED

(A Company Limited By Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Continued

19. ANALYSIS OF CHANGES IN NET DEBT

	2020	Cash flows	2021
	£	£	£
Bank loans due in more than one year	(90,855)	4,767	(86,088)
Bank loans due in less than one year	(3,314)	(700)	(4,014)
	──────	──────	──────
Total liabilities	(94,169)	4,067	(90,102)
Cash and cash equivalents	437,125	427,106	864,231
	──────	──────	──────
Total net funds	342,956	431,173	774,129
	══════	══════	══════

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