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2022-03-31-accounts

Registered number: 02420393 Charity number: 1007781

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 6
Independent auditors' report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12
Notes to the financial statements 13 - 24

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees Mr P Cawthron
Mr R Gofton
Mr D Hawes (appointed 21 September 2021)
Mr M Lambert (appointed 14 December 2021)
Mr C Pallot (appointed 14 December 2021)
Mrs S Sutherland
Mr M Taylor
Mr R Williams
Mrs D Bassett (resigned 1 September 2021)
Mr I Beider (resigned 22 March 2022)
Mrs S Brennan (resigned 29 October 2021)
Mr E Probert (resigned 7 April 2021)
Company registered
number
02420393
Charity registered
number
1007781
Registered office
Beaufort House
51 New North Road
Exeter
Devon
EX4 4EP
Chief executive officer
Mrs E Rainsford (until 8 July 2022)
Independent auditors
Bishop Fleming LLP
Chartered Accountants
2nd Floor Stratus House
Emperor Way
Exeter Business Park
Exeter
EX1 3QS

Page 1

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the audited financial statements of the company for the year 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees’ report and a directors’ report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements; the requirements of the charitable company’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) as amended by Update Bulletin 1 (effective January 2015).

Since the company qualifies as small under section 382 of the companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors’ Report) regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The principal object of the organisation is to promote the physical and mental welfare of persons living in South West England.

The Board of Trustees has given regard to the legislative and regulatory requirements for disclosing how its charitable objectives have provided benefit to the public and confirms it has complied with the duties as set out. This report outlines how our achievements during the period have benefited the public.

Throughout this year we have completed a review of our strategy with a focused commitment to further drive our reputation for high quality provision and investment in our staffing resource. We continue to plan to grow our core services whilst developing projects and partnerships which will help us diversify our income sources and enable us to support more people.

CCT activities during 2021-22 remain within Health and Social Care, with a specialism in Mental Health support services. It continues to receive an annual block contract from Devon CCG and Devon Partnership Trust and a large number of spot purchasing contracts for social support services.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance ‘Public benefit: running a charity (PB2)’.

b. Strategies for achieving objectives

The following sections constitute the strategic report for the purposes of the Companies Act 2006. This strategic report forms part of the Report of the Board.

Achievements and performance

a. Introduction

Entering a new financial year invariably requires reflection on our previous year’s achievements and challenges. As the year started it was apparent that the COVID-19 pandemic would continue to have a significant effect not only upon individuals but also organisations including ourselves. As a charity affected by the pandemic, we continually adapted the way we delivered our services whilst at the same time adhering to all the Government’s requirements for social distancing and infection control. during the national lockdown. Throughout a very challenging year for CCT, we have been able to demonstrate considerable resilience and forward thinking whilst delivering our core services during the pandemic.

Page 2

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (CONTINUED)

b. Main Achievements of the Charity

Over the past year, CCT worked with over 800 people across our wide range of specialist provision in Devon which included providing 30,000 hours of community support care and 5,000 bed nights for its commissioned acute care at Cypress and Granvue.

(i) Cypress Hospital and Granvue Crisis House

During the year the priority for this service has been to continue to deliver high standards of support and ongoing provision of hospital beds and this has been achieved. As a result of COVID-19 and in order to safeguard adequate and consistent staffing for this service, it was agreed with commissioners that we operate below our normal capacity. From July, Cypress gradually opened the designated isolation beds as planned to again function as a 14-bed service. However due to continual staff shortages caused by COVID this meant having to close to admissions on occasion.

In April we linked with Plymouth University to develop a Nursing Apprenticeship opportunity for Step One support workers. The scheme is delivered over a four-year period requiring the student to work at Cypress and attend University three days a week. This is a government support scheme and as such has minimal cost to the charity. This resulted in the charity being able to offer an opportunity for one of its current members of staff.

Whilst there is no major issue with recruitment of staff at Cypress, recruitment of RMNs, when required, will be an ongoing challenge. The ‘grow our own’ approach started in 2017 is now developing a steady pipeline of newly qualified RMNs through internal sponsorship.

(ii) Support Living and Community Support

This service continued to deliver support during the year despite the lockdown through either face-to-face support or telephone, according to individual client preference. Community services has however struggled at times during the year to achieve activity targets due to due to staff shortages caused by COVID and staff vacancies where recruitment remains a challenge to this service. Our new HR Manager has been working closely with this team alongside our communications staff and recruitment sites to improve our advertising approach. In September a new salary banding was introduced to the support worker role where it was hoped this would also help address critical recruitment challenges.

During the year and in anticipation of the need to review salary, the team have been working through more than 100 individual contracts with Devon County Council to align each to our current ceiling hourly rate. To this end, our Manager for Community Services, has worked extremely hard to get commissioners to agree to uplift all 120 clients to the required hourly rate.

A business case to invest up to a maximum of £1 million for the purchase of an additional supported living house gained board approval in December. Following viewings, an offer has been accepted for a large 6 bedroomed property in Exeter. The property is ideal to service requirements with existing HMO status, detached on a large plot, parking and within a short distance to our other house on Monks Road. This offer was subject to the usual purchasing conditions and specifically a requirement for an unoccupied property at exchange. With all these conditions having been met we were able to exchange contracts in June 2022. With an existing waiting list for accommodation support, our Manager for Community Services and her team remain confident in achieving full occupancy of the property in 2023. The purchase of this new supported living accommodation will now appear as a transaction in the Step One annual accounts for 2022-23

Page 3

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (CONTINUED)

Financial review

a. Going concern

Due to the transfer of CCT to Step One as at 31 March 2022 these accounts are prepared on a basis other than going concern as per note 2.2 within the Accounting policies.

b. Reserves policy

Financial management procedures and policies are in place to ensure security of assets and financial risk management is considered by the Trustees with input from external advisors where appropriate.

The Trustees consider that a minimum level of unrestricted reserves should be held to support future requirements for maintaining services. At the year-end a balance of £633k was held with unrestricted reserves at £501k and restricted reserves at £132k. Requirements for the reserves level are regularly reviewed within the context of the group structure and the Trustees are satisfied that the current levels are adequate.

c. Financial Review

Income has decreased to £1.904m this year from £2.605m in 2021. This includes £1.554m for provision of acute services under contract to an NHS Clinical Commissioning Group. Alongside this, expenditure (excluding the transfer) has increased to £2.214m compared to £2.041m in 2021. This has resulted in a net deficit (excluding the transfer) of £309k compared to a surplus of £564k in 2021.

The net assets at year-end (prior to the transfer) were £633k compared to £942k in 2021.

d. Principal risks and uncertainties

The organisation has put systems in place to monitor and mitigate major risks to which it may become exposed. This includes risk monitoring systems for clinical presentation and safety of service users, working practices and the working environment, and other external factors or atypical activities.

Page 4

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management

a. Constitution

Community Care Trust (South West) Limited is registered as a charitable company limited by guarantee and was set up by a Trust deed. The memorandum and articles of association establish the objects and powers of the company and the governance arrangements.

The company became a subsidiary of St Loye’s Foundation in 2015, and in 2016 St Loye’s Foundation changed its name to Step One to provide a new trading name for the group. Step One is a company limited by guarantee and is registered as a charity with the Charity Commission (No. 235434). Step One controls 75% of the voting rights of CCT and is a corporate member of CCT with the right to nominate a trustee for the CCT Board. CCT also has the right to nominate a member to the company Board. The Boards have agreed to joint meetings whilst retaining separate processes as required for statutory administrative purposes.

At its most recent Annual General Meeting held on 21 September 2021, the trustees of CCT agreed to the transfer of all assets and liabilities from CCT to its parent company Step One Charity resulting in a merger of both charities to be under the single name of Step One. This transfer has now taken effect with the completion date being 31 March 2022.

The Trustees constitute the Board of Management of the charity and are also directors of the company with overall responsibility for governance. The Board meets to agree strategic and operational plans and monitor progress against them. The Board delegates the day to day running of the charity to an Executive Team, providing advice and guidance as appropriate. Board members may also serve on Committees or operational groups. The following Trustees served during the year:

Mr M Taylor (Chair) Ms S Sutherland Ms D Bassett (resigned 1 September 2021) Mr I Beider (resigned 22 March 2022) Ms S Brennan (resigned 29 October 2021) Mr P Cawthron Mr D Hawes (appointed 21 September 2021) Mr R Gofton Mr M Lambert (appointed 14 December 2021) Mr C Pallot (appointed 14 December 2021) Mr E Probert (resigned 7 April 2021) Mr R Williams

b. Trustee Induction and training

The Trustees undergo induction to brief them of their legal obligations under company and charity law, the content of the Articles of Association, the committee and decision-making processes, and are provided with information on the company’s facilities and services.

c. Methods of appointment or election of Trustees

The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the memorandum and articles of association.

Page 5

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

The trustees of CCT have agreed to the transfer of all assets and liabilities from CCT to its parent company Step One Charity resulting in a merger of both charities to be under the single name of Step One. This transfer has now taken effect with the completion date being 31 March 2022.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of the 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 Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................

Ms S Sutherland (Chair of Trustees)

Date: 20 September 2022

Page 6

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMUNITY CARE TRUST (SOUTH WEST) LIMITED

Opinion

We have audited the financial statements of Community Care Trust (South West) Limited (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of 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:

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

Emphasis of matter - Financial Statements prepared on a basis other than Going Concern

We draw attention to note 2.2 in the financial statements, which indicates that the Trust's activities transferred to Step One Charity, the parent, on 31 March 2022. Upon this transfer, the Trust ceased to operate. Accordingly the accounts have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors' use of an alternative basis to the going concern basis of accounting in the preparation of the financial statements as described in the basis of preparation of accounts note is appropriate.

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

Page 7

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

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

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 Trustees' Report.

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

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the 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.

Page 8

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (CONTINUED)

Auditors' 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 Auditors' 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue, management override of controls using manual journal entries, purchase ledger and payroll, and identified the greatest potential for fraud as incorrect recognition of revenue and management override using manual journal entries.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, The Charities Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity’s ability to operate or to avoid a material penalty. These included Care Quality Commission Regulation, Health and Social Care Act, data protection regulations, occupational health and safety regulations and employment legislation.

Our procedures to respond to risks identified included the following:

Page 9

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (CONTINUED)

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.

Tim Borton FCA (Senior statutory auditor)

for and on behalf of Bishop Fleming LLP

Chartered Accountants Statutory Auditors

2nd Floor Stratus House

Emperor Way

Exeter Business Park

Exeter

EX1 3QS

17 October 2022

Page 10

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Total income
Expenditure on:
Charitable activities
Transfer of net assets to Step One
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
74
1,903,283
1,903,357
2,190,538
500,870
2,691,408
(788,051)
788,051
(788,051)
-		 Restricted
funds
2022
£
965
-
965
23,163
131,749
154,912
(153,947)
153,947
(153,947)
-		 Total
funds
2022
£
1,039
1,903,283
1,904,322
2,213,701
632,619
2,846,320
(941,998)
941,998
(941,998)
-		 Total
funds
2021
£
97,279
2,507,957
2,605,236
2,041,187
-
2,041,187
564,049
377,949
564,049
941,998

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 13 to 24 form part of these financial statements.

Page 11

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:02420393

BALANCE SHEET AS AT 31 MARCH 2022

Note
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within one
year
10
Net current assets
Total assets less current liabilities
Net assets excluding pension asset /
liability
Defined benefit pension scheme asset /
liability
13
Total net assets
Charity funds
Restricted funds
11
Unrestricted funds
11
Total funds		 -
-
-
-		 2022
£
-
-
-
-
-
-
-
-		 1,077,718
21,206
1,098,924
(135,417)		 2021
£
963,507
963,507
963,507
(21,509)
941,998
153,947
788,051
941,998

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Ms S Sutherland

(Chair of Trustees)

Date: 20 September 2022

The notes on pages 13 to 24 form part of these financial statements.

Page 12

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. General information

Community Care Trust (South West) Limited is registered as a charitable company limited by guarantee and was set up by a Memoradum of Association on 6 Septebmer 1989. the charity's registered number is 1007781 and the regsitered office is Beaufort House, 51 New North Road, Exeter, Devon, EX4 4EP.

2. Accounting policies

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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

Community Care Trust (South West) Limited 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.

2.2 GOING CONCERN

On 31 March 2022 the Trust transferred all of its assets, liabilties and activites to Step One Charity, its parent. From that date, the charity ceased all activites. Accordingly, these accounts are prepared on a basis other than going concern. However, given that the charitable undertakings are being carried out by Step One Charity, no adjustments to, or reclassifications of the amounts included in these accounts have been required.

2.3 INCOME

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured.

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

Page 13

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.5 DEBTORS

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

2.6 CASH AT BANK AND IN HAND

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

2.7 LIABILITIES

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.8 PENSIONS

Defined benefit pension schemes

The Company participates in a Pensions Trust scheme, a multi-employer 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 with contributions being charged to the income and expenditure account when payable.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions pyable under the agreement that relates to the deficit.

The Company also participates in the NHS pension scheme. This is a multi-employer defined benefit scheme in the UK where 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 with contributions being charged to the income and expenditure account when payable. The company has no liability under the scheme other than for the payment of these contributions.

Defined contribution pension scheme

The Company operates a defined contribution pension scheme, which requires contributions from both the employees and the Company to be separately invested with an independent Pensions Provider. The required contributions to the scheme are based on advice provided by independent financial advisers. Contributions are charged to the income and expenditure account when payable

Page 14

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.9 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 Company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
74
Legacies
-
74
TOTAL 2021
79		 Restricted
funds
2022
£
-
965
965
97,200		 Total
funds
2022
£
74
965
1,039
97,279		 Total
funds
2021
£
79
97,200
97,279

4. Income from charitable activities

Unrestricted
funds
2022
£
Contracts and Grants
1,815,058
Local Authority - Housing Support
88,225
1,903,283
TOTAL 2021
2,507,957		 Total
funds
2022
£
1,815,058
88,225
1,903,283
2,507,957		 Total
funds
2021
£
2,350,646
157,311
2,507,957

Page 15

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5. Analysis of expenditure by activities

Community Care Trust
TOTAL 2021
Analysis of direct costs
Staff costs
Rehabilitation expenses
TOTAL 2021
Analysis of support costs
Support costs
Premises costs
Administration costs
Governance
TOTAL 2021		 Activities
undertaken
directly
2022
£
1,721,759
1,661,462		 Support
costs
2022
£
491,942
379,725
Activities
2022
£
1,585,364
136,395
1,721,759
1,661,462
Activities
2022
£
201,975
199,986
70,692
19,289
491,942
379,725		 Total
funds
2022
£
2,213,701
2,041,187
Total
funds
2022
£
1,585,364
136,395
1,721,759
1,661,462
Total
funds
2022
£
201,975
199,986
70,692
19,289
491,942
379,725		 Total
funds
2021
£
2,041,187
Total
funds
2021
£
1,537,178
124,284
1,661,462
Total
funds
2021
£
106,932
178,361
90,811
3,621
379,725

Page 16

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

6. Auditors' remuneration

2022 2021
£ £
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 5,200 4,800

7. Staff costs

Wages and salaries
Social security costs
Pension costs		 2022
£
1,449,050
111,234
25,079
1,585,363		 2021
£
1,394,350
106,873
35,955
1,537,178

In addition to the above an expense of £108,671 has been accrued in respect of the expected liability in settlement of the defined benefit pension scheme.

The average number of persons employed by the Company during the year was as follows:

Management
Community Services		 2022
No.
2
76
78		 2021
No.
2
75
77

No employee received remuneration amounting to more than £60,000 in either year.

The total amount of employee benefits received by key management personnel for their services was £18,378 (2021: £18,231).

8. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).

Page 17

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. Debtors

DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Prepayments and accrued income		 2022
£
-
-
-
-		 2021
£
71,296
989,995
16,427
1,077,718

10. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
-
-
-
-
-		 2021
£
53,052
26,020
5,105
51,240
135,417

Page 18

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. Statement of funds

Statement of funds - current year

UNRESTRICTED FUNDS
General Funds
RESTRICTED FUNDS
South Devon Community Housing
Cypress Legacy
TOTAL OF FUNDS
Restricted Funds		 Balance at 1
April 2021
£
788,051
56,747
97,200
153,947
941,998		 Income
£
1,903,357
-
965
965
1,904,322		 Expenditure
£
(2,691,408)
(56,747)
(98,165)
(154,912)
(2,846,320)		 Balance at
31 March
2022
£
-
-
-
-
-

South Devon Community Housing

This represents funds received from South Devon Community Housing Society to provide support to people aged over 16 in South Devon.

Cypress Legacy

For funding of nursing and patient care at Cypress Hospital.

Fund expenditure includes the transfer of funds to Step One Charity of £632,615.

Page 19

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. Statement of funds (continued)

Statement of funds - prior year

UNRESTRICTED FUNDS
General Funds
RESTRICTED FUNDS
South Devon Community Housing
Cypress Legacy
TOTAL OF FUNDS		 Balance at
1 April 2020
£
321,202
56,747
-
56,747
377,949		 As restated
Income
£
2,508,036
-
97,200
97,200
2,605,236		 Expenditure
£
(2,041,187)
-
-
-
(2,041,187)		 Balance at
31 March
2021
£
788,051
56,747
97,200
153,947
941,998

12. Analysis of net assets between funds

Analysis of net assets between funds - current year

The trust has transferred all assets and liabiltiies to Step One Charity and therefore there is no split of net assets by funds as at 31 March 2022.

TOTAL

Total funds 2022 £ -

Page 20

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Current assets
Creditors due within one year
Provisions for liabilities and charges
TOTAL		 Unrestricted
funds
2021
£
944,977
(135,417)
(21,509)
788,051		 Restricted
funds
2021
£
153,947
-
-
153,947		 Total
funds
2021
£
1,098,924
(135,417)
(21,509)
941,998

13. Pension commitments

Defined contribution schemes

The company provides a defined contribution group personal pension scheme operated by Scottish Widows. Cost of the contributions in the year was £40,877 (2021: £36,587). Some employees have membership of the NHS pension scheme, a multi-employer defined benefit scheme which is accounted for as a defined contribution scheme as there is insufficient information to account for it as a defined benefit scheme. Cost of the contributions in the year was £3,619 (2021: £3,886). There is a no liability to the scheme other than for these contributions.

Page 21

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Defined Benefit Scheme ʹ Pensions Trust

The company participates in the scheme, a multi�employer scheme which provides benefits to some 638 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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

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

EŽƚĞ�ƚŚĂƚ�ƚŚĞ�ƐĐŚĞŵĞ͛Ɛ�previous valuation was carried out with an effective date of 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 asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£11,243,000 per annum (payable monthly and increasing by 3% each From 1 April 2019 to 30 September 2025: 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.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised 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.

Page 22

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

PRESENT VALUES OF PROVISION
31 March 2022 31 March 2021 31 March 2020
(£s) (£s) (£s)
Present value of provision 5,941 22,567 26,739
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Period Ending Period Ending
31 March 2022 31 March 2021
(£s) (£s)
Provision at start of period 22,567 26,739
Unwinding of the discount factor (interest expense) 130 600
Deficit contribution paid (5,711) (5,544)
Remeasurements � impact of any change in assumptions (137) 772
Remeasurements � amendments to the contribution schedule (10,908) �
Provision at end of period 5,941 22,567

INCOME AND EXPENDITURE IMPACT

Period Ending Period Ending Period Ending Period Ending
31 March 2022 31 March 2021
(£s) (£s)
Interest expense 130 600
Remeasurements ʹ impact of any change in assumptions (137) 772
Remeasurements ʹ amendments to the contribution schedule (10,908) �
Contributions paid in respect of future service* * *
Costs recognised in income and expenditure account * *

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company. ASSUMPTIONS

31 March 2022 31 March 2021 31 March 2020
% per annum % per annum % per annum
Rate of discount 2.35 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.

Page 23

COMMUNITY CARE TRUST (SOUTH WEST) LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. Pension commitments (continued)

All activities, assets and liabilities were transferred to Step One Charity on 31 March 2022. Subsequently the Pension Scheme has closed and remaining liability has been estimated to be £108,000. This debt has been accrued for at the year and transferred to Step One Charity.

14. Operating lease commitments

At 31 March 2022 the Company had no commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
£
-
-
-		 2021
£
34,164
16,821
50,985

15. Related party transactions

During the year, the company paid a rental charge of £100,000 (2021: £90,000) to Step One Charity, the parent company. At the year end, a balance of £nil (2021: £989,995) was owed to CCT by Step One.

16. Transfer to Step One Charity

On 31 March 2022 all assets, liabilities and activities of the Trust were transferred to Step One Charity. The total balance of assets transferred was £632,619, consisting of £832,452 debtors due within one year, £160 cash at bank and in hand, and £199,993 Creditors due within one year.

17. Controlling party

Step One Charity controls 75% of the voting rights of Community Care Trust (South West) Limited, which was acquired in 1 April 2015. Step One Charity is a charitable company limited by guarantee, incorporated in the UK, registed company number 393477 and registered charity number 235434.

Consolidated Group accounts are prepared by Step One Charity and can be found on the Charity Commision website.

Page 24