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2021-08-31-accounts

Future Care Capital (a company limited by guarantee)

Annual Report and Financial Statements

31 August 2021

Company Registration Number 02887166 Charity Registration Number 1036232

Contents

Reports

Reference and administrative details 1
Chair’s report 2
Trustees’ report 4
Independent auditor’s report 14
Accounts
Statement of financial activities 19
Balance sheet 20
Statement of cash flows 21
Principal accounting policies 23
Notes to the accounts 27

Reference and administrative details 31 August 2021

Patron Her Majesty, The Queen
Trustees Andrew Whelan - Chair
Julian Chislett (resigned 21 July 2021)
Mike Dixon (resigned 18 November 2020)
Irene Gray
Neil Churchill
Sylvia Lowe (resigned 29 October 2021)
Lise Pape
Jonathan Steel
Michael Dumigan
Michael Blackmore (appointed 29 September 2021)
Chief Executive Officer
Greg Allen, Chief Executive Officer (resigned 5 April
2022)
Key Management Personnel David Milne, Director of Finance and Corporate
Services (until 12 July 2021)
Bealinda Lucas, Financial Controller (19 July 2021
onwards)
Annemarie Naylor Director of Policy and Strategy
(until 13 April 2021)
Sue Wixley, Director of Marketing and
Communications (until 13 January 2021)
Dave Dawes, Commercial Director (until 31 October
2020)
Principal address and registered office Thomas House, 84 Eccleston Square, Pimlico,
London, SW1V 1PX
Charity number 1036232
Company number 02887166
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Legal advisers Anthony Collins
134 Edmund Street
Birmingham
B3 2ES

Future Care Capital 1

Chair’s report 31 August 2021

Chair’s report

Facilitating and leading the beneficial transformation of health and care provisio n The pandemic has had a profound effect on the health and care sector, bringing to the fore the challenges facing our beneficiaries and highlighting the need for systemic transformation to ensure that the needs and expectations of those in receipt of care are met efficiently and effectively.

The value that Future Care Capital (‘FCC’) can bring in facilitating and leading this beneficial transformation has never been more important. As such, we have spent time this year clarifying our vision and refining our strategy, building on the work of previous years, to ensure that we are best placed to deliver on our objectives. In particular, we have focused on better elucidating our mission, and exploring how best to organise our operations to deliver it.

FCC is an ambitious and visionary organisation focused on facilitating and leading the beneficial transformation of health and care provision.

Specifically, we are addressing the fundamental question:

‘What should a fit-for-purpose health and care system look like and how do we get there?’

Implicit in the framing of our mission is the presumption that the existing systems are not fit for purpose. However, unlike many think-tanks, policymakers and other interested parties, our focus is explicitly on the experience of our beneficiaries – those in receipt of care, which will likely be all of us at various points throughout our lives.

In other words, we are focused on understanding the demand side of health and care and developing ways of translating this into a dynamic system capable of meeting current and future expectations effectively and efficiently.

At an esoteric level, we do this by asking the big, fundamental questions in order to paint a picture of how health and care could (and should) be experienced in the future, then mapping it against current experiences to plot a course for change.

On a more practical level we collaborate not only with policymakers, practitioners, think-tanks and other charities, but also with innovators, investors, providers and, of course, our beneficiaries themselves in order to design solutions that address real-world problems and create functioning exemplars, which demonstrate what is possible and accelerate the broader adoption of necessary health and care provision.

We strive to tackle problems from first principles, adopting evidence-based solutions to deliver desired outcomes instead of being rooted in dogma and received wisdom.

We are a commercially aware organisation, looking for opportunities to further the charity’s interests by monetising our impact work in order to remain independent and sustainable. This includes investing our profit and capital in activities which directly benefit our beneficiaries.

Future Care Capital 2

Chair’s report 31 August 2021

Addressing the question of ‘what a fit-for-purpose health and care system should look like and how we get there’, by leading and facilitating its design and implementation, is the challenge we set ourselves when we embarked on our new direction in 2015 following the sale of the charity’s awarding organisation business and assets.

This mission guides everything we do.

Since that time, our work has focused on policy and advocacy initiatives: developing relationships with, informing and influencing policymakers, practitioners and key opinion leaders through evidence-based research. This has led to a number of successes, including opportunities to inform and influence legislation, as well as developing deep insights into specific policy areas, e.g., healthcare data.

However, whilst this has undoubtedly been beneficial to informing our vision, as well as building our presence and key relationships, it has meant that we have strayed onto the path of a more traditional ‘think-tank’.

This year has seen us begin the process of re-aligning the organisation towards our mission, having invested time in better articulating our strategy, voice, and approach, and exploring ways to monetise the value of our impact work.

There are exciting times ahead for FCC, and, as ever, I am grateful to the team for their efforts and commitment.

Andrew Whelan

Chair of the Board of Trustees, Future Care Capital

Future Care Capital 3

Trustees’ report 31 August 2021

The Trustees of Future Care Capital present their statutory report together with the financial statements for year to 31 August 2021.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and equates to a directors’ report for the purpose of company legislation.

The financial statements have been prepared in accordance with the accounting policies on pages 23 to 26 of the attached financial statements and comply with the charitable memorandum and articles of association, applicable laws and the requirements of Statement of Recommended Practice “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 United Kingdom and Republic of Ireland (FRS 102).

Governance, Structure and Management

Governance

Future Care Capital is a charitable company limited by guarantee. It is governed by its Memorandum and Articles of Association adopted 11 March 1984 and last amended in January 2021.

Trustees

The Trustees of Future Care Capital (“the Charity”) are the charity’s Trustees under charity law and the directors of the charitable company. The Trustees who served in office as Trustees during the period and subsequently are:

Trustees

Andrew Whelan – Chair Julian Chislett (resigned 21 July 2021) Mike Dixon (resigned 18 November 2020) Irene Gray Neil Churchill Sylvia Lowe (resigned 29 October 2021) Lise Pape Jonathan Steel Michael Dumigan Michael Blackmore (appointed 29 September 2021)

Future Care Capital benefits from a committed Board of Trustees who bring a breadth of managerial experience and give their time generously to serve on the Board as well as to help promote the charity. The Board of Trustees sets the vision, strategic goals, plan, and budget, monitors their implementation, determines the policy for investment of Future Care Capital’s reserves, and ensures Future Care Capital complies with relevant legislation and regulations. Trustees take responsibility for one or more areas of responsibility, which may include being appointed to a committee.

Future Care Capital 4

Trustees’ report 31 August 2021

The Board met seven times, the General Purposes Committee met three times, the Risk and Audit Committee met twice, and the Remuneration Committee met once during the financial period. The Board elected to suspend the regular activities of its sub-committees and deal with all matters as a full Board. The Board’s principle activities in this financial period were to: better articulate the Charity’s strategy; re-align the Charity’s priorities towards its mission; and continue to oversee the Charity’s operations.

New Trustees are appointed for a four-year period by Future Care Capital’s Board. They can be re-appointed at the end of their term of office for a further four years. Trustees currently represent employment interests in the health and care sectors, charitable finance, digital communications and hold other roles in the voluntary sector. The Chair is appointed for a fouryear period and can serve a maximum of two terms of office. In January 2021 our articles of Association changed to allow our Chair, Andrew Whelan to stay as a trustee and chairman until February 2025.

New Trustees receive information supporting their induction, which includes relevant Charity Commission documents, a copy of the Articles of Association, strategy documents, the annual reports and accounts, governance arrangements, access to previous Board papers and minutes of meetings, and other relevant documents. Introductory training on the duties and obligations of Trustees is provided and additional training is provided on an ad-hoc basis depending on identified needs and any changes to legislation.

Future Care Capital’s Governance arrangements comprise the following:

The Trustee Board : sets the vision, strategic goals, plan, and budget, monitors their implementation, determines the policy for investment of Future Care Capital’s reserves, and ensures Future Care Capital meets relevant legislation and regulation.

The Governance structure includes the terms of reference of the Board and its Committees.

The Chair and the Trustees receive no remuneration for their work with the Charity. The Trustees are entitled to reimbursement of expenses solely connected with the discharge of their duties. In the financial year no expenses were claimed by Trustees (2020 – £413 by three Trustees).

Trustees make declarations regarding any conflict of interest, and this is confirmed at each Board meeting. Trustees had no activities with related parties or co-operation with other organisations connected with the Charity from which they received benefits. The Charity’s policy regarding conflicts of interest is set out in its Articles of Association and it acts in full compliance with Charity Commission Guidelines and best practice.

Trustee governance

To stay fit for purpose, the Board recognises that it must systematically refresh and develop. Following the departure of two Trustees in the period (and a further Trustee after the period end), the Board undertook a skills audit and recruited a new Trustee in order to replace key skills. A specialist recruitment agency was used for this process.

Third party professional indemnity insurance is provided for the Trustees to cover them against claims that may arise from their legitimate actions as Trustees.

Future Care Capital 5

Trustees’ report 31 August 2021

Operational management

Key decisions are managed through the Board of Trustees reviewing and approving the business plans and budgets. Authority is delegated to the Chief Executive who is responsible for developing and implementing plans, products and services within the overall guidelines and policies set by the Trustees. The Chief Executive is responsible for representing Future Care Capital externally and for ensuring that Future Care Capital’s values are communicated and observed. He is responsible for the recruitment, training and development of the executive and management team .

The Chief Executive is also responsible for producing regular planning and performance updates, financial and management reports which are included on the Board agenda.

Risk management

The Risk Register developed by Trustees was maintained and updated during the year in line with the detailed risk management framework. This involves identifying the risks faced by the organisation, prioritising these in terms of potential impact and likelihood of occurrence and identifying means of mitigating the risks. Risk management is an integral part of decision making and routine management. It is incorporated with the strategic and operational planning processes across the organisation. All staff are regularly asked to share any risks they may identify and add them to the strategic register. Separate risk assessments are performed for individual projects and separate registers maintained as appropriate.

The risks are categorised under reputational/vision, operational, financial/commercial, governance, delivery and environmental. The day-to-day management of risk is delegated to the executive team with regular reviews by the Board of Trustees.

The most significant risks to the Charity in 2020/21 were the challenges of ramping up sustainable income streams and the impact of the COVID-19 pandemic, both financially and on operations. These were both very high especially given the Charity’s reliance on its investment portfolio for operational funding and the impact of market volatility on investment values and returns. To mitigate this risk the Charity maintained its defensive portfolio weighting strategy so as to retain value in the face of market downturns. The Board receives regular updates from its investment manager, Evelyn Partners (formerly Smith and Williamson), so as to keep Trustees apprised of performance and allow for timely changes in strategy.

The Charity has struggled to increase operational revenue significantly so as to it reduced reliance on the investment portfolio. Addressing this risk has been a top priority for the Board throughout the period and the principal objective of the Chief Executive and Charity this year. The Board has provided guidance, suggestions and support to revenue generation initiatives and continues to take an active interest in progress in this area.

A further financial risk exists in relation to the Charity’s direct investment into Healthera, which was made as a precursor to the establishment of the Charity’s Innovation Fund, with the intention of transferring the investment to the Innovation Fund following its first close. Delays to the raising of the fund mean that the Charity’s investment remains a direct investment, which monitored through regular reports from the company and a board observer position, who updates the Board of Trustees on the investment’s risks and performance.

Future Care Capital 6

Trustees’ report 31 August 2021

Public benefit

In formulating Future Care Capital’s strategic aims and planning future activities, the Trustees have given careful consideration to the Charity’s public benefit aims and have complied with the duty in Section 17 of the Charities Act 2011 to have regard to public benefit guidance published by the Charity Commission.

Continuous monitoring at regular meetings of the Board ensures the Charity’s operations and activities remain in line with the public benefit aims requirements set out in guidance published by the Charity Commission and in law. The Charity has built on its existing measures of impact and introduced a new framework to track how it achieves its wider goals and objectives

All charitable functions are linked and regularly reviewed to ensure they continue to meet public benefit regulations.

Future Care Capital’s vision and mission show that it is committed to facilitating and leading the beneficial transformation of health and care provision for its beneficiaries – all those in receipt of care.

Financial review

Results for the period

A summary of the period’s results is given on page 19 (SOFA) of the financial statements.

The principal funding source for Future Care Capital is the Investment Portfolio managed by Evelyn Partners (formerly Smith and Williamson). This included net investment gains of £1,013k (2020 - £129k) and other income from the investment portfolio and cash holdings of £215k (2020 - £229k). £99k (2020 – £76k) was received in revenue from grants and consultancy. Despite challenges in delivering operational revenue, Trustees remain confident that this will not materially impact the Charity’s operations going forward, given the size of the Charity’s Investment Portfolio.

In the year ended 31 August 2021 total expenditure was £1,279k (2020 - £1,518k), of which £208k (2020 - £170k) was related to expenditure on the Innovation Fund start-up activities. Expenditure in the period supported the key objectives as set out on page 9.

Pension fund

The only historical pension liability relates to The Camden Pension Fund liability for a former member of staff that was revalued by an actuary at 31 August 2019. This is explained further within the principal accounting policies on page 31.

Reserves policy

Future Care Capital held free reserves of £10,766k (2020 - £10,708k) at the year end, and the planned operating expenditure for the financial period was principally associated with policy and insight, the establishment of the Innovation Fund and advocacy work.

Future Care Capital 7

Trustees’ report 31 August 2021

The Charity’s reserves policy was re-confirmed in-year as appropriate having considered the impact of the pandemic and agreed by the Board to hold a minimum of the sum of the total outstanding planned capital exposure for the investment plan, totalling £2,750,000, plus a 12month forecast of operating expenditure at £1,500,000 (individual annual year budget dependent).

Reserves are currently significantly above the level required by the policy. Funds will be drawn down to fund operational and investment activity and this will be actively monitored. If reserves reach within 20% of the levels stated within the reserves policy, activity plans and budgets will be reviewed to ensure an adequate level of reserves are maintained. Burn-rate and returns are reviewed and discussed at each Board meeting. A sustainable revenue generation strategy and plan are in progress to reduce reliance on drawing down reserves to fund operations, with active revenue generation initiatives in the plan for this period.

Investment policy and performance

The Trustees have invested Future Care Capital’s assets in accordance with the Trustees’ powers and responsibilities under the Charities Act 2011 and in accordance with the Memorandum and Articles of Association. The Charity’s reserves continue to reside in a managed portfolio administered by Evelyn Partners (formerly Smith and Williamson). The Evelyn Partners investment mandate incorporates provisions around ethical investing, including restrictions on types of investments held such as alcohol, tobacco, gambling, and armaments through negative screening.

The principal aim of the investments is to preserve capital in real terms and to reinvest gains within the portfolio. During the continuing implementation and growth of the revenue generation strategy costs are largely being funded by investment returns and funds will be drawn down as appropriate to fund ongoing operations until other revenue streams are established. The investments are regularly monitored so that they are not inimical to the charity’s objects. Within the period the investments yielded net unrealised gains of £1,013k and investment income of £215k on an average invested sum of £10,548,000 providing a total return of 1.2%. The Charity also held funds within a current account for operating expenditure. Trustees confirmed the Investment Portfolio was appropriately positioned in the period, evidenced by the limited, but still significant, exposure to the market downturns due to the impact of the pandemic. The losses were regained within the period.

The Charity continues to hold a direct, mixed motive investment in Healthera valued at £250k.

Objects of the Charity

The charitable objects for which Future Care Capital is established in its governing document are to promote education, training, quality and standards in care, health and education and allied disciplines.

Beneficiaries

Future Care Capital’s beneficiaries are all of those in receipt of care.

Vision

A functioning, fit-for-purpose health, and care system.

Future Care Capital 8

Trustees’ report 31 August 2021

Mission

To lead and facilitate the design and implementation of a functioning, fit-for-purpose health, and care system.

Approach

Facilitating lasting beneficial change through collaboration, influence, thought leadership, and constructive debate. Bringing together all constituents (e.g., policymakers, practitioners, innovators, investors, carers, the cared-for, public, other interested parties) in pursuit of the Charity’s Mission and Vision. Communicating from the perspective of our Beneficiaries: storytelling: human; emotive; plain-language; lived-experience. The Charity’s ‘Voice’.

Strategy

Objectives for the period

Future Care Capital’s primary objectives for the period to fulfil the public benefit aims were to:

Review of significant activities undertaken to achieve charitable objectives

Community of Practice Collaboration with the Health Foundation

Working with the Health Foundation, this project connects practitioners, policy-makers, academics and innovators on the use of social care data. Better social care analytics will support better decision-making, service design and provision of adult social care. The Community also showcases ‘best practice’ exemplars to highlight the benefits and possibilities in social care analytics.

Future Care Capital 9

Trustees’ report 31 August 2021

Social care tech reviews

Starting in February 2021 a series of four reviews were instigated. The first published was our home care technology review, followed by Mental Health. The final two were published in 2021-22 along with a sector overview giving an overall outlook on the technology in social care. The aim of these reports is to shine a spotlight on the innovators within each space and to help them grow.

Fictions: Health and Care Re-Imagined

A project commissioned by the Arts Council. This is a series of 12 short stories over two years exploring health and medical related technologies and extrapolating them into near future scenarios for health and social care and examining the implications for recipients of care and stakeholders. The series is intended to engage a wider audience in the health and social care debate using an easily accessible medium. By raising the profile of the issues and also providing challenging discussion points, the fictions series aims to bring greater interaction and engagement with our beneficiaries.

National Data strategies

In partnership with the National Care Forum, the Charity’s response to the draft health and social care data strategy. The Charity focussed on adult social care and are seeking key reform in the Health and Social Care Bill. We have 15 key points that we are seeking from the consultation, including:

We look forward to the parliamentary debate regarding the Health and Social Care Bill

Law change in the Medicines and Medical Devices Bill

The Medicines and Medical Devices Bill (now Act), is a key piece of legislation for the future of digital health and care provision in the UK. It sets a framework for legal and regulatory development for the safe and efficacious deployment of a vast range of tools in clinical and adjacent environments of care delivery. How AI and data are approached in this have very real consequences for our beneficiaries and our policy work on this bill helped secure vital amendments to protect patient information in commercial deals involving medical devices and healthcare.

Innovation Fund set-up and direct investment

We continue to pursue our objective of raising and managing a commercial investment fund focused on investing in innovative companies aligned to our mission and vision. As a precursor to establishing our own fund, the Charity is exploring opportunities to partner and invest alongside established fund managers. Allied to this, the Charity instigated a project with a prospective investment partner to develop a framework for assessing, monitoring, and benchmarking the social impact of health and care investments.

Future Care Capital 10

Trustees’ report 31 August 2021

Current activity

The Charity’s current priority is to develop and prove a sustainable revenue-generating operational model aligned to its mission and vision. Focusing on real-world challenges identified through our proprietary research, we are facilitating the development and implementation of a framework for commissioning innovative mental health services by leading and facilitating the collaboration of relevant commissioners, innovators, regulators, key opinion leaders and, of course, beneficiaries. Through creating this exemplar, we aim to prove a replicable, operational model that: has an immediate beneficial impact on those in receipt of care; promotes innovation and accelerates the adoption of effective solutions; can be easily adapted to address other challenges; has multiple revenue-generating opportunities; and informs Future Care Capital’s Vision and Mission.

Allied to this project is the development of a methodology for articulating the Charity’s Vision and view of the current State of the Nation, as well as publicising the key insights from our, and others, work, with a particular emphasis on how these relate to our Mission and Vision.

Going concern

The Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due over the next 12 months and have considered the impact of the pandemic on charity operations, revenue generation and the Investment Portfolio in forming this opinion. Whilst the reserves of the Charity are linked to the Investment Portfolio and there is considerable ongoing uncertainty around investment values, taking into account the positioning of the portfolio and the level of reserves, Trustees have concluded that the Charity will have sufficient resources to satisfy it as an ongoing concern. For further detail please refer to the Going Concern note on page 23 of the accounts.

Diversity

Future Care Capital recognises the importance of an inclusive society that brings opportunities and access, not barriers, to individuals.

The Charity appreciates the benefits of a diverse workforce and is committed to building a team that captures a range of experiences that bring benefit to individuals and our beneficiaries.

Future Care Capital encourages all people it works with and for, to contribute to an environment in which people feel comfortable expressing how they feel and what they need, knowing they will be treated with fairness and respect and that their contribution will be valued.

The work culture within Future Care Capital reflects the Vision, Mission and Values of the Charity and places inclusion of all abilities and backgrounds at the heart of everything it does. The Charity’s diversity policy complements its organisational values.

Future Care Capital will make reasonable adjustments to support staff, and where appropriate, will offer additional support to individuals to ensure they are able to fully participate in the Charity’s work.

Future Care Capital 11

Trustees’ report 31 August 2021

Fundraising

Future Care Capital does not actively solicit donations directly from the public and therefore is not registered with the Fundraising Regulator and does not subscribe to any fundraising codes of practice. Were donations from individuals or trusts and foundations to be received, the Charity would ensure personal data is appropriately protected.

Statement of Trustees’ responsibilities

The Trustees (who are also directors of Future Care Capital for the purposes of company law) are responsible for preparing the Trustees’ report and 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 which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.

In preparing these financial statements, the Trustees are required to:

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

Each of the Trustees confirms that:

Future Care Capital 12

Trustees’ report 31 August 2021

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Andrew Whelan 27 May 2022

Chair of the Board of Trustees

Future Care Capital 13

Independent Auditors report 31 August 2021

Independent auditor’s report to the members of Future Care Capital

Opinion

We have audited the financial statements of Future Care Capital (the ‘charitable company’) for the year ended 31 August 2021, which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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 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 authorized for issue.

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

Future Care Capital 14

Independent Auditors report 31 August 2021

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions 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 the 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 the Companies Act 2006 requires us to report to you if, in our opinion:

Future Care Capital 15

Independent Auditors report 31 August 2021

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.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Future Care Capital 16

Independent Auditors report 31 August 2021

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

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Future Care Capital 17

Independent Auditors report 31 August 2021

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 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.

30 May 2022

Hugh Swainson (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Future Care Capital 18

Statement of financial activities (including income and expenditure account) 31 August 2021

Notes
2021
Total
funds
£000		 2020
Total
funds
£000
Income from:
Charitable activities
1
. Consultancy and grants
Investments
2
Total income
Expenditure on:
Raising funds
3
Charitable activities
4
. Innovation Fund
. Policy and insight
. Advocacy
Total expenditure
Deficit for the year before investment gains
Net gains on the revaluation and disposal of investments
9
Net income (expenditure)
Other recognised losses:
Actuarial loss on revaluation pension liability
13
Net movement in funds
5
Reconciliation of funds
Balances brought forward at 1 September 2020
Balances carried forward at 31 August 2021
99

215		 76
229
314 305

69

208
681
321		 70
170
779
499
1,279 1,518
(965)

1,013		 (1,213)
129
48

—		 (1,084)
—

48
10,890		 (1,084)
11,974
10,938 10,890

All other activities of the charity during the above two financial periods were derived from continuing operations.

All recognised gains and losses are included in the above statement of financial activities.

Future Care Capital 19

Balance Sheet 31 August 2021

Notes
2021
£’000		 2021
£’000		 2020
£’000		 2020
£’000
Fixed assets
Tangible assets
8
Fixed asset investments
9
Mixed motive investment
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due
within one year
12
Net current assets
Total assets less current
liabilities
Provision for liabilities and charges
13
Total net assets
The funds of the charity
Unrestricted funds
. General funds
15
. Designated funds
15
Total funds



71
101		 8
10,830
250		 92
172		 18
10,764
250
11,088
23		 11,032
41
172

(149)		 264
(223)


11,111
(173)		 11,073
(183)
10,938 10,890
10,765
173		 10,707
183
10,938 10,890

The financial statements were approved and authorised for issue by the Board of Trustees on 27 May 2022

Andrew Whelan

Chair of the Board of Trustees

Company Limited by Guarantee Registration Number 02887166 (England and Wales)

Future Care Capital 20

Statement of Cashflows 31 August 2021

Notes
2021
£’000		 2020
£’000
Cash flows from operating activities:
Net cash used in provided by operating activities
A
Cash flows from investing activities:
Purchase of tangible fixed assets
Investment income
Proceeds from the disposal of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 September 2020
B
Cash and cash equivalents at 31 August 2021
B

**(1,232) **		 (1,427)


(1)
215
4,102
**(3,486) **		 (5)
229
3,758
(2,549)
830 1,433

(402)


587
 6
581

185		 587

The Charity had a net cash outflow from operating activities of £1,232k (2020 – outflow of £1,427k). Cash outflows in 2021 relating to Policy and Insight and associated Advocacy activities as well as set-up activity for the Innovation Fund were not offset by inflows in-year. The charity achieved a net cash inflow from investing activities of £830k (2020 – £1,433k) primarily as a result of the receipt of investment income of £215k (2020 – £229k) and proceeds from investment disposals of £4,102k (2020 - £3,758k) outweighing purchases of £3,485k (2020 - £2,549k). Together, this resulted in a net decrease in cash and cash equivalents in the year of £402k (2020 – net increase of £6k).

Notes to the statement of cash flows for the year to 31 August 2021:

A Reconciliation of net movement in funds to net cash used in operating activities

2021
£’000		 2020
£’000
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Actuarial loss
Net gains on investments
Investment income
Depreciation charge
Decrease/(Increase) in debtors
(Decrease)/increase in creditors
Decrease in provision for liabilities, excluding actuarial loss
Net cash used in operating activities		 48

—
(1,013)
(215)
11
21
(74)
**(10) **		 (1,084)
—
(129)
(229)
16
(40)
49
(10)
**(1,232) ** (1,427)

Future Care Capital 21

Statement of Cashflows 31 August 2021

B Analysis of cash, cash equivalents and net debt 2021
£’000		 2020
£’000
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 101
84		 172
415
185 587

Future Care Capital 22

Principal accounting policies 31 August 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 31 August 2021.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts 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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest £’000.

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due over the next 12 months and have considered the impact of the pandemic on charity operations, revenue generation and the Investment Portfolio in forming this opinion. Whilst the reserves of the Charity are linked to the Investment Portfolio and there is considerable ongoing uncertainty around investment values, taking into account the positioning of the portfolio and the level of reserves Trustees have concluded that the Charity will have sufficient resources to satisfy it as an ongoing concern.

The most significant areas of judgement that affect items in the accounts are detailed in the risk management and significant activities sections of the Trustees’ report. With regard to the next accounting period, the year ending 31 August 2022, the most significant areas that affect the carrying value of the assets held by the Charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the Trustees’ report for more information).

Future Care Capital 23

Principal accounting policies 31 August 2021

Income recognition

All income is included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Interest receivable

Interest income is included when receivable and the amount can be measured reliably by the charity.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Consultancy income

Income in relation to contracts with third parties for consultancy or project work, is recognised in line with the proportion of the work which is complete.

Grant income

Income in relation to grants is recognised when the charity becomes entitled to the monies and there are no unfulfilled conditions attached to their receipt.

Expenditure recognition

Expenditure is accounted for on an accruals basis and is recognised in the period to which it relates.

Support costs are those costs which enable fund generating and charitable activities to be undertaken. Where activities incurred relate to more than one cost category, it is appointed on the most appropriate basis and on a reasonable and consistent basis.

Facilities, IT and Recruitment costs are allocated between Direct and Support costs based on headcount, and apportioned to spend categories within support based on time spent on each charitable activity.

Cost allocation

Irrecoverable VAT is charged against the category of expenditure for which it was incurred.

Tangible fixed assets

Tangible fixed assets with a cost over £250 are capitalised. Fixed assets are initially recognised at cost and are depreciated by equal annual instalments over their estimated useful lives.

The current estimated rates of depreciation are:

Computer equipment 33.3%
Office equipment, fixtures and fittings 20%

Future Care Capital 24

Principal accounting policies 31 August 2021

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Mixed motive investments

The charity recognises as mixed motive investments those assets which provide funding to an organisation in order to generate a financial return for the charity as well as furthering the charity’s objects and charitable purposes.

Where the investment takes the form of ordinary or preference shares it is measured on the balance sheet at the reporting date either:

Where the investment is measured at cost less impairment, the trustees assess the investment for objective evidence of impairment at the end of each reporting period.

Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand.

Creditors

Creditors 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 measured reliably.

Future Care Capital 25

Principal accounting policies 31 August 2021

Provision for pension of ex-employee

As disclosed in note 13 the charity has a commitment to make payments to the Camden Pension Scheme in relation to an historic pension liability. At the Charity’s request, the liability at 31 August 2019 was valued by a qualified actuary, which it discloses in the financial statements as a provision. This will be next be reassessed and revalued on 31 August 2022, and every three years thereafter. Payments in relation to the liability are recognised as an operating expense. Changes in the actuarial valuation of the provision are represented as an actuarial gain or loss on the statement of financial activities.

Fund accounting

Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose or project.

Restricted funds comprise those funds given by donors to use for a specific purpose.

Transfers between funds are made as determined by the Board of Trustees.

Future Care Capital 26

Notes to the accounts 31 August 2021

1 Income from charitable activities

Income from charitable activities
Unrestricted
funds
£’000
Restricted
funds
£’000
2021
£’000		 2020
£’000
Consultancy and grants 99
—
99		 76
99
—
99		 76

2 Income from investments

Income from investments
Unrestricted
funds
£’000
Restricted
funds
£’000
2021
£’000		 2020
£’000
215
—
215		 229

215		 229

3 Expenditure on raising funds

Expenditure on raising funds
Unrestricted
funds
£’000
Restricted
funds
£’000
2021
£’000		 2020
£’000
Investment manager’s fees 69
—
69		 70
69
—
69		 70

4 Expenditure on charitable activities

Charitable activities Innovation
fund
£’000		 Policy
and
Insight
£’000



Advocacy
£’000


142

69

110

321		 2021
£’000
Direct costs
. Staff
. Other
Support costs
2021 Total funds		 54
113
41		 355
52
274		 551
234
425
208 681 1,210
Charitable activities Innovation
fund
£’000		 Policy
and
Insight
£’000



Advocacy
£’000
205
151
143
499		 2020
£’000
Direct costs
. Staff
. Other
Support costs
2020 Total funds		 75
43
52		 400
98
281		 680
292
476
170 779 1,448

Future Care Capital 27

Notes to the accounts 31 August 2021

4 Expenditure on charitable activities (continued)

Support costs have been allocated on the basis of time spent on each charitable activity, with Facilities, IT and Recruitment costs reallocated to direct costs based on headcount.

Support costs are broken down as follows:

2021
£’000		 2020
£’000
IT
Facilities
Staff
Governance
Other support costs
Total support costs		 24
199
23
79
100		 70
168
18
35
185
425 476

This has been arrived at after charging:


2021
£’000		 2020
£’000
Depreciation of tangible fixed assets
Operating lease rentals
Auditor’s remuneration (including VAT)
. Audit
. Non-audit		 11
89
7
3		 16
99
7
3

6 Trustees

During the year no trustees were reimbursed expenses (2020 - £413 to three Trustees) relating to travel and subsistence. These claims in the prior year were made in line with the charity’s standard policies.

No Trustees received remuneration in respect of their services as trustees.

During the year, Trustee indemnity insurance was purchased. The premium is not separately identifiable within total insurance costs. The policy provides cover of £5,000,000.

7 Staff costs


2021
£’000		 2020
£’000
Wages and salaries
Social security costs
Pension costs
Total staff costs		 613
69
34		 711
84
43
716 838

Future Care Capital 28

Notes to the accounts 31 August 2021

7 Staff costs (continued)

Staff costs have been allocated to direct and support costs as follows:


2021
£’000		 2020
£’000
Direct costs
Support costs		 551
165		 681
156
716 837

2021
No.		 2020
No.
Average number of employees duringtheyear 9 11

The number of employees earning over £60,000 in the period excluding pension contributions was:

contributions was:

2021
No.		 2020
No.
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£130,001 - £140,000
£140,001 - £150,000		 2
—
—
1
—		 1
1
2
—
1

Three employees (2020 - five) earning over £60,000 participated in the company’s defined contribution scheme and contributions of £13,123 (2020 - £27,585) were made on their behalf.

Total remuneration for key management personnel, including employer’s pension contributions and employer’s national insurance, was £423,012 (2020 - £575,808).

8 Tangible fixed assets

Tangible fixed assets
Computer
equipment
£’000		 Office
equipment,
fixtures and
fittings
£’000		 Total
£’000
Cost
At 1 September 2020
Additions
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book values
At 31 August 2021
At 31 August 2020		 29
1		 36
—		 65
1
30 36 66
23
3		 24
8		 47
11
26 32 58
4 4 8
6 12 18

Future Care Capital 29

Notes to the accounts 31 August 2021

9 Fixed asset investments

Fixed asset investments


2021
£’000		 2020
£’000
Market value at 1 September 2020
Additions at cost
Disposals at carrying value (2021 proceeds £4,102,064; realised gains
£410; 2020 proceeds £3,757,621; realised gains £69,654)
Net unrealised gains
Market value at 31 August 2021
Cash held in short term deposits and by investment managers
Value of listed investments at 31 August 2021
Cost of listed investments at 31 August 2021		 10,349
3,486

(4,102)
1,013		 11,429
2,549
(3,688)
59
10,746
84		 10,349
415
10,830 10,764
8,761 8,713

All listed investments were dealt with on a recognised stock exchange. Listed investments held at 31 August 2021 comprised the following:


2021
£’000		 2020
£’000
UK bonds
UK fixed interest
Overseas index linked
UK equities
Overseas equities
Alternative investments		 946
909
285
2,117
3,964
2,525		 1,149
913
483
1,860
3,830
2,114
10,746 10,349

10 Mixed motive investment

This consists of one holding of ordinary shares in a UK registered company, Healthera Limited (company no. 09609198).

The charity measures the investment at cost less impairment given that reliable data cannot be obtained regarding its fair value. This value at the reporting dates is shown below:

11
2021
£’000		 2020
£’000
At 1 September and at 31 August 250 250
Debtors
2021
£’000		 2020
£’000
Prepayments and accrued income 71 92
71 92

Future Care Capital 30

Notes to the accounts 31 August 2021

12 Creditors

Creditors

2021
£’000		 2020
£’000
Amounts falling due within one year
Trade creditors
Other creditors
Accruals		 78
9
62		 178
8
37
149 223

13 Provision for liabilities and charges


2021
£’000		 2020
£’000
At 1 September
Released in the period
At 31 August		 183
**(10) **		 193
(10)
173 183

The Company has a commitment to make a payment to Camden Pension Scheme in relation to enhanced pension benefits granted to an ex-employee as compensation for the years of prospective service that he was not able to earn. At the Charity’s request, the liability at 31 August 2019 was valued by a qualified actuary who calculated that the value of the relevant liability value as at that date was £193,000. This resulted in an increase in the provision by £28,000. During the year ended 31 August 2021 £9,892 was accrued to reduce the provision (2020 – £9,892 was paid to reduce the provision). The provision will be reassessed and revalued at 31 August 2022 in line with the established policy.

14 Pension schemes

Defined contribution scheme

The Future Care Capital Pension Plan started in April 2017 and is managed by Smart Pension. The total contribution by the charity during the period was £84,614 (2020 - £42,908). £nil sum was owing to the pension fund at 31 August 2021 (2020 - £nil).

15 Statement of funds

Statement of funds
Restricted
fund
£’000		 Unrestricted
general
fund
£’000		 RCP
Pension
Fund
£’000		 2021
Total
funds
£’000
At 1 September 2020
Income
Expenditure
Gains and losses
Balance at 31 August 2021		 —
—
—
—		 10,707
314
(1,269)
1,013
183

—

(10)

—		 10,890
314

(1,279)
1,013
— 10,765
173		 10,939

Future Care Capital 31

Notes to the accounts 31 August 2021

15 Statement of funds (continued)

Statement of funds(continued)
Restricted
fund
£’000		 Unrestricted
general
fund
£’000		 RCP
Pension
Fund
£’000		 2020
Total
funds
£’000
At 1 September 2019
Income
Expenditure
Gains and losses
Balance at 31 August 2020		 —
—
—
—		 11,781
305
(1,508)
129
193

—

(10)

—		 11,974
305

(1,518)
129
— 10,707
183		 10,890

The RCP Pension Fund represents the commitment to make a payment to the Camden Pension Scheme in relation to enhanced pension benefits granted to an ex-employee, and is equal to the provision included on the balance sheet.

16 Analysis of net assets between funds

Restricted
fund
£’000
Unrestricted
general
fund
£’000		 RCP
Pension
Fund
£’000		 2021
Total
funds
£’000
Fixed assets
Net current assets
Provisions		 —
—
—
11,088

24

—
—

—

(173)		 11,088
24
(173)
—
11,112
(173)		 10,938
Restricted
fund
£’000
Unrestricted
general
fund
£’000		 RCP
Pension
Fund
£’000		 2020
Total
funds
£’000
Fixed assets
Net current assets
Provisions		 —
—
—
10,666

41

—
366

—

(183)		 11,032
41
(183)
—
10,707
183		 10,890

17 Related parties

Other than the transactions relating to trustees outlined in note 6, there were no related party transactions in the period.

18 Operating lease commitments

At 31 August 2021 the total of the Charity’s future minimum payments under noncancellable operating leases was:

Office space
2021
£’000		 2020
£’000
Amounts due within one year
Amounts due within one and five years		 61
—		 99
61
61 160

Future Care Capital 32