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What a year!
Hollybank Trust Registered charity number 1043129
Annual report and accounts for the year ended 31 March 2021
Contents
2
| Welcome to Hollybank | 3 |
|---|---|
| Covid-19 facts and figures | 4 |
| What we do | 5 |
| Our people | 6 |
| Our finances at a glance | 7 |
| Keeping connections alive | 8 |
| About us | 9 |
| How we’re managed | 10 |
| A message from our Chair | 11 |
| A message from our CEO | 12 |
| How we’re structured | 13 |
| Our strategy | 15 |
| Financial review | 16 |
| Trustee responsibilities | 18 |
| Independent auditor’s report | 19 |
| Statement of financial activities | 22 |
| Balance sheet | 23 |
| Cash flow statement | 24 |
| Cash flow notes | 25 |
| Other notes | 26 |
Hollybank Trust Report and Accounts 2020 / 2021
3
Welcome to Hollybank
Keeping people safe and well
As a charity, we pride ourselves on placing the children, young people and adults we care for at the heart of everything we do – and we were determined not to let a global pandemic stop us!
We have navigated our way through the pandemic by keeping our focus on one thing: keeping the people who live with us safe and healthy. Everyone pulled together because we wanted the same thing.
One of the things that makes Hollybank so special is our community feel. Unfortunately, having spent years successfully breaking down silos across the Trust, we were quickly forced to reinstate them, restricting all movement on our sites and closing all shared facilities, such as our hydrotherapy centre, enrichment day services, short breaks, respite and Treetops cafe.
Improving quality of life during a pandemic
Of course, keeping people physically well is only half of our story. Hollybank’s ethos is about providing quality of life, for life and we know that providing exceptional care is about more than just meeting people’s daily needs. Over the past twelve months we have completely changed the way we work and found new ways of doing things, so that we could continue to give people the opportunity to explore their interests and enjoy life - despite the many restrictions placed upon us as a result of the pandemic.
Being unable to see loved ones for extended periods of time has been extremely challenging for everyone who lives with us. We have turned to technology to help us keep these lines of communication open – using video calling when face to face family visits haven’t been possible. It’s not the same, but it’s something. We will never fully appreciate the heartache that our families have been through – separated from their loved ones during an already uncertain time. We would like to extend our gratitude to them for their unwavering support. We cannot give people back the time that they have lost, but we will continue to do all that we can to keep everyone who lives and learns here safe.
“We’ll never be able to thank you enough, never be able to repay our debt of gratitude to you for managing at this exceptional time.” Taken from a parent’s letter, 2020
Hollybank Trust Report and Accounts 2020 / 2021
Covid-19 facts and figures
4
- and rising
Covid-19 tests completed* 22,680
*approximately
10k
hours of video calls*
Close to items of PPE used commissioned by 40 local authorities
Vaccination rates* * and rising
97/87% 300+
Residential adults / staff team
Meals donated for our staff team by our supporters
Hollybank Trust Report and Accounts 2020 / 2021
5
What we do
Living
We have ten residential homes providing 24/7 care for people with a range of profound and multiple disabilities and sensory impairments across Yorkshire. Seven of these homes are on our main site in Mirfield, one is in Holmfirth, one in Barnsley and one near Wakefield. We currently have 103 children, young people and adults living at Hollybank across these ten homes and work with 40 local authorities.
The majority of the people we care for were required to shield and we had to restrict movement across all our homes. We quickly adopted new ways of working, which included allocating dedicated enrichment and therapy specialists to each of our homes, so that our children, young people and adults could continue to take part in the activities and pastimes they enjoy throughout the pandemic.
The people who live with us have complex medical needs and very few can communicate verbally. We are extremely humbled by the way everyone has adapted to these unprecedented circumstances, the changes to their usual routines and for accommodating the necessary hygiene protocols - including the wearing of PPE - that we had to introduce to help keep people safe.
Learning
Like every other educational establishment across the country, our ‘special’ school closed its doors in March 2020 and our team put the measures in place to support home learning through Hollybank at Home.
We worked with families using the ‘Evidence for Learning’ app to share resources and updates with parents, and video technology to ‘see’ our pupils. We also assigned teachers to
Orchard Court, our children’s home, so that we could deliver learning in a residential setting. There was not a dry eye in the house when we were able to reopen our school doors again from September 2020.
Our family support officer has been on hand throughout the pandemic, providing virtual support and guidance to not only our school families, but also the parents involved in our Little Pips support group for families with babies and toddlers with profound disabilities. There are currently 32 pupils in our school and nursery, with a growing waiting list of families wanting to join us.
We can offer fully flexible educational placements, ranging from free nursery places through to full 52week placements. We were sadly unable to fully offer respite services between 1 April 2020 and March 2021. At 31 March 2021, 21 (2020 : 15) school children and 11 (2020: 12) nursery children attended Hollybank school; and a further 3 children and young people accessed the respite service during the year. Occupancy in the children’s home was 75.4% for the year (2020: 71.4%) .
Hollybank Trust Report and Accounts 2020 / 2021
6
Our people
Recruitment – and retention - during a pandemic
Providing care for more than 100 vulnerable children, young people and adults during a global pandemic presented many challenges to Hollybank, not least the need to maintain safe staffing levels.
Our staff team is close to 600 people strong. There are easier places to work than Hollybank, but few are as rewarding. The vast majority of the team are front-line social care workers, responsible for the day to day care of the children, young people and adults who live with us. It is a difficult and demanding job at the best of times – and we were navigating our way through the worst of times.
Staff turnover rates within the social care sector usually sit at around 30%* and over the past year we have had to not only manage our usual vacancies but also cover periods of staff isolation. We immediately put in place a virtual recruitment process that would help us to attract, interview, offer and induct new recruits into the Hollybank family.
It is easy to focus on the negative aspects of the pandemic, but we have been heartened to see the social care sector – and its workers – start to get the recognition it deserves. We believe that – along with our more flexible recruitment practices – this increased visibility of the social care sector and the career opportunities it offers has helped us to successfully recruit and onboard close to 200 new colleagues to the Hollybank team between April 2020 – March 2021.
Our entire staff team of 600 has worked tirelessly within the ever-changing government guidance, always putting the people who live here first, even above their own families. We are extremely grateful to everyone who works for us.
*data – Skills for Care, Oct. 2020: The state of the adult social care sector and workforce in England
“
I didn’t know what to expect when I joined Hollybank in April 2020, it was very daunting. I had to adjust to learning a new role and get used to completely new ways of working too. I had worked from home for almost a year before I was able to come onto the main site!
I’ve been impressed that we’ve all adapted and used technology to keep connected throughout the pandemic, and of course by the way our front-line team have kept the children, young people and adults who live and learn here safe, happy and healthy. I’m proud to work for such a caring, supportive, and innovative organisation . ”
Gender Pay Gap
Our gender pay report is available on our website. The results of our gender pay gap review for 2020 are shown below.
| Difference between men and women | Mean | Median | UK Average | UK Average |
|---|---|---|---|---|
| Mean | Median | |||
| Gender Pay Gap | 0.5% | 9.9% | 6.5% | 15.9% |
Hollybank Trust Report and Accounts 2020 / 2021
Our finances at a glance 7 ——— Ff Money in… Money out… £15,134,087 £14,616,787 -SStaff costs 76%
Non-staff costs 24% f aa
Hollybank Trust Report and Accounts 2020 / 2021
Keeping connections alive
8
Walking in a winter wonderland
Christmas is such a magical time at Hollybank – and we were determined not to let a small matter of a global pandemic get in the way of our celebrations.
Thanks to some of our loyal, local supporters we were able to source enough outdoor festive lighting to transform Hollybank’s outdoor spaces into a magical Winter Wonderland. We even managed to arrange a socially distanced visit from Santa!
And the fact that our children, young people and adults were able to visit home over the festive period, really was the icing on the (Christmas) cake! We are extremely grateful to everyone who has supported us over the past twelve months.
Digital connections
Having contact with the ones we love during the pandemic has been a lifeline for most of us and our children, young people and adults are no different. Having immediate access to Facetime and other video calling applications has been invaluable.
The technology that we have all relied on throughout lockdown to keep in touch with our friends and family, isn’t as straightforward for the people who live here, due to their disabilities. Many have speech and motor limitations. They can still use technology to connect, but it needs to be = adapted first. That’s where our dedicated team of assistive technology experts come in. They make it easier for our people to use apps more independently, using eye tracking technology or large switches that enable people to make independent choices about when they want to contact their friends and family.
To us it’s just an iPad; to the people who live & learn at Hollybank, it means independence, dignity, and freedom of choice.
iPads are used for much more than video calls across Hollybank too. They’re used in our Speech and Language Therapy sessions as communication aids so that our children, young people and adults who don’t use words to communicate are able to talk via the touch of a button. iPads also speak to all our other systems and enable us to install firewalls and have a fully secure tech system, right across the trust. They also help our residents to gain or maintain independence by enabling them to turn their lights on or off at the touch of a button or via a voice command.
Hollybank Trust Report and Accounts 2020 / 2021
9
About us
Objectives and activities
Hollybank Trustees Limited, company number 5251731, is the corporate Trustee of Hollybank Trust. In line with the Charity’s Trust Deed, the Trustee makes sure that Hollybank uses its Trust Fund and its income upon trust “for the benefit of children and adults with disabilities and with special care and or educational needs” by the following:
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The relief of those in need by the provision of residential and/or daytime accommodation and related facilities; and
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The advancement of education by the provision of a special school and/or other education and personal development facilities at Hollybank, Mirfield, and/or other suitable premises.
Public benefit
The Trustee has complied with its duty in section 17 of the Charities Act 2011, to have due regard to the guidance published by the Charity Commission and has referred to the guidance on public benefit when reviewing the aims and objectives of the Trust, and in planning our future activities.
Hollybank charges fees for the services we deliver to Local Authorities and Clinical Commissioning Groups (CCGs), as well as private purchasers. We offer to source advice on how to find independent support for those families who need it, to help them obtain funding from Local Authorities and CCGs for their family member, both for the school and for residential placements.
The aims of the Trust are clearly intended to benefit babies, children, young people and adults who have profound disabilities and critical medical conditions only. We are very conscious of our duty to deliver services, not only to those users who are educated and who live at Hollybank, but also to children, young people and adults in the wider community who fit the criteria identified in the Trust’s charitable aims.
Charity number 1043129
Trustee Hollybank Trustees Limited
Registered office Far Common Road Mirfield West Yorkshire WF14 0DQ
Auditor Saffery Champness LLP Mitre House North Park Road Harrogate HG1 5RX
Banker Lloyds Bank plc 1 Westgate Huddersfield HD1 2DN
Solicitor Lupton Fawcett LLP Yorkshire House East Parade Leeds LS1 5BD
Insurance broker and advisor PIB Insurance Brokers Poppleton Grange Low Poppleton Lane York YO26 6GZ
Hollybank Trust Report and Accounts 2020 / 2021
10
How we’re managed
Our Trustee Directors (Directors of Hollybank Trustees Ltd)
Name Clare Morrow
John Sykes Jenny Allen Sara Buchan Ruth Cherry Michael Holt Jane Johnston Jonathan Jones
Hanif Loonat Christopher Sharp Venkatraman Thiyagesh Jan Thornton David Whitehead
Chair of Trustee Directors Vice Chair of Trustee Directors
(retired 10 September 2020)
Committee membership Chair of Quality / Nominations Resources / Nominations Chair of Employment Employment Resources Chair of Resources Chair of Employment Chair of Nominations / Quality / Employment Resources Employment Quality Chair of Governors / Quality Resources
Our Executive Team
Position Chief Executive Executive Director of Operations Executive Director of People, Communications & Children’s Services Executive Director of Finance, IT & Estates
Name
Anna O’Mahony Linda Christmas Annabel Lane Louise Shute
Our Senior Management Team
Position
Head of Finance Head of IT Head of Communications Head of Children’s Services Head of Care Quality, Contracts & Compliance Head of Therapy & Enrichment (appointed 1 April 2020) Head of Adult Residential Services (appointed 7 September 2020) Head of People & Culture Head of Estates
Name
Asif Chhibda Victoria Cotterill Jo Fearn Ailsa Moore Wendy Porter Kevan Rushby Sharon Tinsley Helen Toop Daniel Whiteley
Hollybank Trust Report and Accounts 2020 / 2021
A message from our Chair
11
It has been an unprecedented year, not just for Hollybank, but for the world. Like most of our peers in the health, social care and education sectors, in March 2020 Hollybank needed to change the way we operated overnight. Our primary objective shifted from providing ‘quality of life’ to protecting and preserving it.
Despite the pandemic, we quickly adopted a ‘progress not perfection’ mindset which has helped us to deliver a number of major organisational initiatives that will add real value to our organisation, despite the restrictions we have been forced to work within. We have also embarked on an ambitious three-year strategy which focuses on the growth of our services.
As a Board we are acutely aware that we are only able to look forward in this way because we have managed to keep those using our services safe and well and haven’t faced the difficult funding decisions that many other charities have. However, the impact of the pandemic will be felt far and wide across the country in the months and years ahead, not least by our commissioners. As a Board we will continue to look for ways to offer exceptional value for money and deliver excellent standards of care and education to the children, young people and adults who live and learn and Hollybank. We know that there are difficult times ahead for the charity sector and public services.
“We know that change is coming and that brighter days lie ahead. We also accept that we must all learn to live with coronavirus.” Clare Morrow, Chair of Trustee Directors
We consider ourselves extremely fortunate to have been able to get to this point with minimal impact on the health and wellbeing of our children, young people and adults. What the staff team have achieved is nothing less than miraculous and their adaptability knows no bounds.
Technology had previously been more of a longer-term aspiration, than an organisational priority. Covid19 changed that. We were all forced to embrace technology in ways that we never imagined, and we now have a more efficient and effective organisation. The equipment that people needed to work productively from home was configured and rolled out within weeks, not months, and – as an organisation who places utmost importance on quality – our training programme went virtual. With family visits not possible, we rolled out the tools needed to facilitate virtual video communications for the children, young people and adults in our care while weekly updates from the CEO direct to families helped to reassure them. Within school, we worked with families to facilitate home learning – Hollybank at Home, using the ‘Evidence for learning’ app to share resources and updates with parents, and video technology to ‘see’ our pupils.
The Trustee Directors and I are very grateful to all our colleagues who have worked so hard during the past year, often making personal sacrifices so that they could keep the people we care for safe and well. As the mother of a young woman who lives at Hollybank, I also want to extend my personal thanks and admiration to the staff team for everything they have done every day to ensure those living and learning with us have continued to have interesting and fulfilling lives despite the restrictions they have faced.
We know that change is coming and that brighter days lie ahead. We also accept that we must all learn to live with coronavirus and continue to operate in its wake. We are most certainly not out of the woods yet, but we are optimistic about the future.
Hollybank Trust Report and Accounts 2020 / 2021
A message from our CEO
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No one working in social care or education could have predicted or prepared for the year we have just endured. The past twelve months have been the toughest in Hollybank’s 65-year history. We have had to think innovatively, work in completely different ways and really dig deep and demonstrate our resilience and responsiveness, and I have never been prouder of what we have been able to achieve.
The vast majority of our team at Hollybank are key workers – the care, education, ELMS and therapy staff are responsible for the day to day care of the children, young people and adults who live with us and those who learn in our school. Our facilities and amenities teams keep our environments in the best possible condition with very high hygiene standards and we also have a team of people who carry out all the work that people don’t see; finance, HR, IT, quality assurance, to name a few. They are difficult and demanding jobs at the best of times – and yet here we were in the worst of times!
American diplomat Henry Kissinger was quoted as saying that diamonds are chunks of coal that did well under pressure. I think one of the unexpected benefits to come out of the past year is that our key workers are finally in the spotlight and getting the recognition that they so justly deserve.
Our underlying objective has always been to provide quality of life, for life for each and every one of the people we provide care for. Everything we do, every business decision we make is driven by the needs of the children, young people and adults who live and learn here. Our challenge over the past fifteen months has been how we do that in the face of a global pandemic.
“One of the unexpected benefits of the pandemic is that our key workers are finally getting the recognition they deserve.”
Anna O’Mahony, Chief Executive Officer
But the most upsetting thing for us was that we had to close our doors. For a long period of time, families were left unable to visit their loved ones; people were unable to use our external services, such as the hydrotherapy centre and
enrichment day services; and we were unable to offer our respite and short breaks services to those families who desperately needed them.
We will never get the past twelve months back and there is no escaping the fact that it has been the most stressful, straining time for everyone associated with Hollybank Trust. That said, we have refused to let the past twelve months define us and have so much to be thankful for.
Determination, dedication, unfaltering drive and a willingness to embrace digital tools have all helped us navigate our way through the pandemic. Everyone has pulled together because we wanted the same thing: to keep the people we care for and all our staff team, families and visitors safe.
As we now start to look forward to the future, we know that the skills we have developed will help us rebuild and repair – and we will come back stronger as a result.
Hollybank Trust Report and Accounts 2020 / 2021
How we’re structured
13 14
The Trust is administered by Hollybank Trustees Limited. Our Trustee Directors have a broad cross section of business, financial, legal, medical, educational, employment, marketing and communication backgrounds. Two of our Trustee Directors are parents of young people who live within Hollybank Trust.
The Trust is governed by a Declaration of Trust, dated 29 December 1994 and amended on 18 November 2002; 24 November 2004 and 20 July 2017. Our governing document is our Memorandum and Articles of Association. The latter was reviewed in 2017 and the changes approved by the Charity Commission in June 2017.
We have a comprehensive induction process for all our Trustee Directors, which includes a code of conduct, job descriptions and duties for both Trustee Directors and office holders, laid down together with the essentials of board responsibilities in a Board Code of Conduct. New Trustee Directors spend time with the Chair, Chief Executive and relevant members of the Executive Board. They have access to all relevant documents pertaining to the effective running of the Trust.
We review the roles and responsibilities of the Trustee Directors and school governors annually, as well as considering the structure of our committees and their remit. As part of this review, the skills of both Trustee Directors and school governors are discussed to ensure that they are matched to appropriate committees. This also helps us to identify skills which need to be considered in future recruitment processes.
The Trustee Directors regularly review their own strengths, weaknesses and effectiveness in relation to the objects of the Trust and our current strategy. Our Board of Trustee Directors meets formally, at least four times a year. They have overall responsibility for determining the Trust’s mission and vision, overseeing our strategic direction and monitoring performance. Both safeguarding and health and safety are standing items at each meeting. All committee Terms of Reference are reviewed annually.
Trust committees
Resources
Delegated responsibility for accountability framework and all financial control systems, health and safety, risk analysis and risk management, IT, data protection and fundraising. It ensures we comply with all legal requirements relevant to finance and good practice and makes sure any Trust property is kept in a good state of repair and is adequately insured. It ensures that there is a planned maintenance schedule produced annually for the care and upkeep of all the Trust’s properties.
Employment
Delegated responsibility for ensuring that the Trust complies with current legislation and good practice regarding employment issues.
Quality
Delegated responsibility for ensuring the Trust complies with all aspects of the law, relevant standards and good practice in relation to residential and respite services, safeguarding, incident management, therapy, nursing, enrichment and social and emotional support across the Trust.
Nominations
Delegated responsibility for leading the recruitment process for the Chair, Trustee Directors and the Chief Executive. Also acts as a remuneration committee for the executive team members of the Trust.
Hollybank Trust Report and Accounts 2020 / 2021
School governance
Our Board of school governors has delegated responsibility for the running of the school. The Board consists of at least one Trustee Director, as well as seven school governors. They work within detailed articles and instruments of governance. For the period 1 April 2020 – 31 March 2021, all governor meetings and link visits were conducted remotely, via Teams.
Our school is formally registered and recognised as a non-maintained special school. The school was rated Outstanding by Ofsted in 2018 and previously in 2014. Our separate children’s home – Orchard Court – provides accommodation for some of the school children, the remaining children are day pupils, who may access respite provision in the children’s home. The children’s home was inspected in February 2020 by Ofsted and was rated as Good.
The skills represented on the Governing Body are education, health, business, social care, local authority representatives and the voluntary sector. We have two parent governors and a teacher governor to represent the school staff. Six link governors are appointed to monitor the quality of each area of the Ofsted framework: Leadership and Management, Quality of Teaching and Learning, Pupil Outcomes, Personal Development and Wellbeing, Behaviour & Safety and Early Years. The link governors report to the Governing Body quarterly and a summary of their findings is taken to the Trustee Directors by the Chair of Governors.
The Trustee Directors regularly review the risk management system to manage the key risks to which the Trust is exposed and consequently mitigate any major risks. The main elements of the Trust’s systems of internal financial control include the following:
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Comprehensive short- and medium-term planning process supported by detailed income, expenditure and cash flow projections.
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Clearly defined management responsibilities and levels of authority, with formal policies for the approval and control of expenditure.
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Detailed financial control policies and procedures approved by the resources committee.
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Regular review of performance and monthly financial reports, comparing actual results with forecasts and changes in expected outcomes including key performance indicators (KPIs).
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An external annual review of financial controls and processes is carried out, which includes a more indepth look at the financial procedures relating to a specific area of the Trust. A report from this annual review, including recommendations about improvements, is made to the resources committee, which considers the outcomes as part of the process of satisfying the adequacy of the systems of internal financial controls.
The Chief Executive leads the executive team, which comprises: the Chief Executive, Executive Director of Operations, Executive Director of Finance, IT and Estates; and the Executive Director of People, Communication and Children’s Services. The team considers the longer-term strategic direction and risks of the Trust.
Fundraising Activities
Our fundraising activities undergo financial audits carried out by external inspectors. The Trust is a member of the Fundraising Regulator and was previously a member of the Fundraising Standards Board. There have been no formal complaints received. The Trust does not use telephone fundraising, cold calling or door to door fundraising as methods of raising income. The Trust does not use external consultancy or commission-based fundraisers.
Hollybank Trust Report and Accounts 2020 / 2021
Our strategy
15
We have just embarked on our new business strategy which outlines our four priorities over the next three years : We include everyone. It’s important that we get better at involving the children, young people and adults, their families and other stakeholders and our colleagues in what we do. We want to hear what people think and make sure their views are represented Priority engagement (; 3 in everything we do. That’s key to us developing a positive culture that will help us provide better services. : Priority 2 governance and compliance A We want to be the best. To be the best we need to drive up standards and the quality of the care and education we deliver. We will do this by giving colleagues the tools they need to do their job well, and by having the right policies and procedures in place. We will check how we’re doing through regular, robust audits and feedback received.
: Priority 3 learning and development
Every day is a school day. We want to make it easier for our colleagues to embrace learning so they can do a great job every day for the children, young people and adults they work with. Not everyone learns the same way, so we’ll combine face-to-face training with e-learning. We’ll get better at helping people see what their future looks like too with clearly defined career pathways.
: 4 growth
Demand for our services is growing – that’s great news! We need to make sure that we can accommodate this increased need for our services. We will look for ways to develop our children’s services, the way we support people as they transition from school to residential care and the availability of our adult residential provision.
QUALITY
SUSTAINABILITY
CULTURE & REPUTATION
We want to deliver a first-class We want to be around for years We care about what people think APPROVED Our inspection bodies are the CQC and Ofsted. Inspection visits were suspended during the year, so our service, every time, that’s why to come, so everything we do is of us – not just our colleagues, but we have high expectations of in the long-term interests of also families, supporters and the EE, performance in relation to regulated activities is unchanged.ourselves, and others Hollybank wider community too
We take pride in the quality of the care we provide. Our main inspection bodies are the CQC and Ofsted. With all inspection visits suspended over the past year, due to the pandemic, our performance in relation to regulated activities remains unchanged.
| Inspection date Inspection body Rating |
Inspection date Inspection body Rating |
Inspection date Inspection body Rating |
Inspection date Inspection body Rating |
|---|---|---|---|
| Poplars Feb 2020 CQC Good ~~a~~ ~~Ge~~ |
|||
| Orchard Court(Children) Feb 2020 Ofsted Good ~~a~~ |
|||
| Rowan Court Jan 2020 CQC Requires Improvement ~~a~~ ~~Ge~~ |
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| Willow Court Jun 2019 CQC Good ~~a~~ |
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| Orchard Court(Adults) May2019 CQC Outstanding ~~ee~~ |
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| Oak House May2019 CQC Good ~~a~~ |
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| Beeches May2019 CQC Good ~~a~~ |
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| Conkers Dec 2018 CQC Good ~~a~~ ~~Ge~~ |
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| Hollybank School Oct 2018 Ofsted Outstanding ~~a~~ |
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| HollyCourt Apr 2018 CQC Good ~~a~~ |
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| Sycamores ~~a~~ |
Apr 2018 | CQC | Good |
Hollybank Trust Report and Accounts 2020 / 2021
Financial review
16
The principal source of income comes from fees and charges, mainly from Public Bodies, for the educational, medical/therapeutic and residential services provided by the Trust. The Trust also receives certain direct grant funding from the Education Funding Agency, the Department of Education and Skills, legacies, donations from events and fundraising activities as well as major fundraising appeals for specific projects.
The total incoming resources of the Trust for the year were £15,134k (2020: £14,519k), demonstrating a 4.2% increase of £615k. Included within this are incoming resources from charitable activities which have increased by 2.5% to £14,502k (2020: £14,150k) , the main reasons being:
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Residential services income has increased by £450k to £13,459k (2020: £13,009k) . This is due to higher occupancy levels and an increase in fees achieved. However, we unfortunately had to close our respite provision due to Covid-19 restrictions, which resulted in a decrease in respite income of £224k.
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School income has increased by £135k to £1,023k (2020: £888k) due to an increase in pupil numbers. Enrichment services income has decreased by £233k to £20k (2020: £253k) as we unfortunately had to close our services to external users due to Covid-19 restrictions.
Income from legacies and donations has decreased by £46k to £71k (2020: £117k) as a result of not being able to run fundraising events due to Covid-19 restrictions. Investment income has decreased by £3k to £24k (2020: £27k) . Other income has increased by £313k to £537k (2020: £224k) due to Covid-19 related grants received to cover the cost of PPE and increased IPC measures that have been implemented.
The cost of raising donations and legacy income was £9k (2020: £170k) , which excludes central allocations of £nil (2020: £36k) . In early 2020, we conducted a comprehensive review and restructure of our fundraising activities, resulting in two redundancies. Also, due to Covid-19, there has been no fundraising events in the year.
The cost of charitable activities for the year was £14,583k (2020: £14,018k), an increase of £565k. The movement in costs is mostly made up of an increase in other direct services costs, reflecting a significant increase in PPE and IPC related costs as a result of Covid-19 (circa. £135k) and an increase in estate related costs (circa. £140k); and an increase in support costs which include circa. £100k spent on staff vouchers given as a thank you to staff for their efforts during the pandemic, circa. £100k spent on new payroll, HR and time and attendance systems which were implemented during the year and circa. £200k on IT equipment and network security to enable agile working as a result of the pandemic. This was offset by a reduction in other costs of charitable activities of £106k.
Governance costs of £25k (2020: £21k) have not been allocated against charitable activities as management do not consider these costs to represent a day to day operating cost of the Trust. As such, they have been recognised as a separately identifiable expense in the Statement of Financial Activities.
Net income for the financial year is £517k (2020: £310k), demonstrating an increase of £207k.
The balance sheet shows that at 31 March 2021, the total funds of the Trust were £23,319k (2020: £22,794k) .
Investments
The Trustee Directors have responsibility for Trust investments, to act in accordance with the Trustees Act 2000, and the Trust’s own investment policy. They regularly consider the appropriateness of Trust investments and it is the current policy of the Trustee Directors to hold endowed funds in a suitable investment fund to produce an appropriate mix of income and capital growth.
The endowed funds are invested in COIF Charities Investment Fund – Income Units, managed by CCLA Investment Managers Ltd. The value of investments at 31 March 2021 was £42k (2020: £35k) and the Trust received dividends of £1k (2020: £1k) in the year. The Trustee Directors consider that the investments met the set performance objectives. School fees are charged and payable each school term meaning the Trust has periods in the year when it has surplus funds. These periods are relatively short term (two to three months), and these surplus funds are offset against bank loans before the application of any interest charges.
Hollybank Trust Report and Accounts 2020 / 2021
Reserves policy
At 31 March 2021, the Trust had free reserves of £1,888k (2020: £1,362k) . Free reserves are the unrestricted funds of the Trust, less the value of tangible fixed assets bought out of unrestricted funds, adjusted for any attributable long term financing.
The Trust utilises reserves to finance significant investment in land, buildings, fixtures, fittings, vehicles and equipment in order to maintain and further develop the service level it provides. This development has continued during the year with investment in the year of £334k (2020: £644k) in tangible fixed assets which was met from free reserves, voluntary income and loans.
Levels of income and expenditure are not usually subject to material fluctuations in the short term and can be forecast with a reasonable degree of certainty. Business interruption insurance (24 months’ loss of income) is also in place. The Trustee Directors regularly review the reserve levels. The current policy to ensure adequate reserves is based on a riskbased approach. Trading risk, other operational risks and significant likely investments are estimated considering existing commitments and planned future activities. Free reserves at 31 March 2021 substantially exceed the estimated net risk.
Risk Management
The Trustee operates comprehensive risk management processes through its various committees. It is a standing agenda item on the fortnightly meetings of both the executive team and the senior management team; monthly meetings of the joint executive and senior management team; quarterly meetings of the Resources Committee; and quarterly meetings of the Trustee Board.
Key risks facing the Trust are: Covid-19, the management of serious incidents, safeguarding, regulatory compliance, health and safety, public sector funding and its impact on service user numbers, reduction in occupancy, impact of the national living wage and pension increases, the replacement of legacy IT systems, people management and capacity.
We have plans in place to address these risks, including stability in future income and completion of investment in IT systems. The Trust’s policies for regulatory compliance and safeguarding mitigate against the risks faced in this area.
Plans for future periods
The immediate focus is on continuing to manage well the risks associated with Covid-19 which we continue to recognise will be with us for the long term. These include staffing and recruitment, changes in government guidance and regulation and the risks associated with restrictions being lifted in the community.
More broadly, we are continuing to experience growing demand for the services we offer and have begun modelling what demand is likely to look like over the next decade. We have started to scope plans for a new school to accommodate a significant rise in demand for places over the next few years. We are also prioritising the need for additional space in which to provide respite for children and adults, which is another area of growing demand which we currently have limited capacity to fulfil.
These developments will require significant funding to be raised and this will be a key focus of the year ahead.
Signed on behalf of the Trustee:
6 September 2021
C Morrow Chair of Hollybank Trustees Limited
Hollybank Trust Report and Accounts 2020 / 2021
Trustee responsibilities
18
The Trustee Directors are responsible for preparing the Trustee’s report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the Trustee Directors are required to:
select suitable accounting policies and then apply them consistently
observe the methods and principles in the Charities SORP (FRS102)
-
make judgements and estimates that are reasonable and prudent
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business
The Trustee Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, and applicable accounting regulations. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustee Directors are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Hollybank Trust Report and Accounts 2020 / 2021
19
Independent auditor’s report
Opinion
We have audited the financial statements of Hollybank Trust for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet and cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the charity’s affairs as at 31 March 2021 and of its incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.
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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustee with respect to going concern are described in the relevant sections of this report.
Other information
The Trustee is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditors’ 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.
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.
Hollybank Trust Report and Accounts 2020 / 2021
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
the information given in the Trustee’s annual report is inconsistent in any material respect with the financial statements; or
the charity has not kept sufficient accounting records; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of Trustee
As explained more fully in the Trustee’s Responsibilities Statement set out on page 18, the Trustee is 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 Trustee determines 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 Trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the Trustee Directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with Trustee Directors and updating our understanding of the sector in which the charity operates.
Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, the Care Quality Commission, Ofsted and guidance issued by the Charity Commission for England and Wales.
Hollybank Trust Report and Accounts 2020 / 2021
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available 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 charity’s Trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Trustee those matters we are required to state to it 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 charity and the Trustee as a body, for our audit work, for this report, or for the opinions we have formed.
………………………………………………………………………………………. fatten, Cho pron Cue
……………………………………………………………………………………….
Saffery Champness LLP, Mitre House, North Park Road, Harrogate, HG1 5RX
Chartered Accountants and Statutory Auditors
Date: 25 November 2021
Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Hollybank Trust Report and Accounts 2020 / 2021
Statement of financial activities
22
for the year ended 31 March 2021
| Note Income and endowments from: Donations and legacies Charitable activities Investments Other 2 2 2 2 Total income 2 Expenditure on: Raising funds Charitable activities Other 3 4 6 Total expenditure Net income Other recognised gains/(losses): Transfers between funds Gain/(loss) on revaluation of investment 15 10 Net movement in funds Reconciliation of funds Fund balances brought forward at 1 April 2020 15 Fund balances carried forward at 31 March 2021 15 |
Unrestricted Funds 2021 £ 29,141 14,502,176 22,835 536,537 _ 15,090,689 _ 7,562 14,550,667 25,253 _ 14,583,482 _ 507,207 61,529 - ____ 568,736 22,062,400 ____ 22,631,136 |
Restricted Funds Endowment Fund 2021 2021 £ £ 42,160 - - - - - 1,238 - _ _ 42,160 1,238 _ _ - 32,067 - 1,238 - - _ _ 32,067 1,238 _ _ 10,093 - (61,529) - _ - 7,259 _ (51,436) 7,259 696,704 35,131 ____ ____ 645,268 42,390 |
Total Funds 2021 £ 71,301 14,502,176 24,073 536,537 _ 15,134,087 _ 8,800 14,582,734 25,253 _ 14,616,787 _ 517,300 - 7,259 ____ 524,559 22,794,235 ____ 23,318,794 |
Total Funds 2020 £ 116,924 14,150,596 26,884 224,266 _ 14,518,670 _ 170,491 14,018,054 20,594 _ 14,209,139 _ 309,531 - (1,061) ____ 308,470 22,485,765 ____ 22,794,235 |
|---|---|---|---|---|
The above results derive from continuing activities.
The notes on pages 27 to 40 form part of these financial statements.
Hollybank Trust Report and Accounts 2020 / 2021
Balance sheet
23
at 31 March 2021
| Note | 2021 | 2020 | |||
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Fixed assets | |||||
| Tangible fixed assets | 9 | 22,070,714 | 22,355,001 | ||
| Investments | 10 | 42,390 | 35,131 | ||
| ____ | ____ | ||||
| 22,113,104 | 22,390,132 | ||||
| Current assets | |||||
| Debtors | 11 | 1,427,149 | 1,732,331 | ||
| Cash at bank and in hand | 3,160,310 | 1,864,787 | |||
| ____ | ____ | ||||
| 4,587,459 | 3,597,118 | ||||
| Liabilities:amounts falling due | |||||
| within one year | 12 | (2,900,392) | (2,477,691) | ||
| ____ | ____ | ||||
| Net curent assets | 1,687,067 | 1,119,427 | |||
| ____ | ____ | ||||
| Total assets less current liabilities | 23,800,171 | 23,509,559 | |||
| Liabilities:amounts falling due after | |||||
| more than one year | 13 | (481,377) | (715,324) | ||
| ___ | ___ | ||||
| Net assets | 23,318,794 | 23,318,794 | 22,794,235 | ||
| Funds | |||||
| Unrestricted funds | 15 | 22,631,136 | 22,062,400 | ||
| Restricted funds | 15 | 645,268 | 696,704 | ||
| Endowment fund | 15 | 42,390 | 35,131 | ||
| ___ | ___ | ||||
| Total charity funds | 23,318,794 | 22,794,235 |
Approved by the Trustee Board on 6 September 2021 and signed on its behalf by:
C Morrow
Chair of Hollybank Trustees Limited
The notes on pages 27 to 40 form part of these financial statements.
Hollybank Trust Report and Accounts 2020 / 2021
Cash flow statement
24
| for the year ended 31 March 2021 Note Net cash used in operating activities 1 Cash flows from investing activities Purchase of tangible fixed assets Disposal of tangible fixed assets Net cash used by investing activities Cash flows from financing activities Repayment of borrowing Net cash used in financing activities Change in cash and cash equivalents in the period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period |
2021 £ 1,890,403 _ (334,226) 15,592 _ (318,634) _ (276,246) _ (276,246) ____ 1,295,523 1,864,787 ____ 3,160,310 |
2020 £ (1,094,727) _ (644,073) - _ (644,073) _ (410,656) _ (410,656) ____ (2,149,456) 4,014,243 ____ 1,864,787 |
|---|---|---|
The notes on pages 27 to 40 form part of these financial statements.
Hollybank Trust Report and Accounts 2020 / 2021
Cash flow notes
27 25
1 Reconciliation of net cash used in operating activities
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Net incoming resources | 517,300 | 309,531 |
| Depreciation | 602,921 | 631,897 |
| Decrease/(increase) in debtors | 305,182 | (397,140) |
| Increase/(decrease) in creditors | 465,000 | (1,639,015) |
| ____ | ____ | |
| Cash flow from operating activities | 1,890,403 | (1,094,727) |
2 Analysis of changes in net debt
| At 1 April 2020 | Cash flows | Other non- | At 31 March 2021 | |
|---|---|---|---|---|
| cash changes | ||||
| £ | £ | £ | £ | |
| Cash | 1,864,787 | 1,295,523 | - | 3,160,310 |
| Loans falling due within one year | (297,440) | 59,547 | 5,587 | (232,306) |
| Loans falling due after more than one year | (715,324) | 216,699 | 17,248 | (481,377) |
| Finance lease obligations | (343,341) | 33,314 | - | (310,027) |
| ___ | ___ | ___ | ___ | |
| 508,682 | 1,605,083 | 22,835 | 2,136,600 |
Hollybank Trust Report and Accounts 2020 / 2021
27
(forming part of the financial statements)
Notes
1 Accounting policies
Hollybank Trust (the “Trust”) is an unincorporated charity.
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at historic cost modified by the adoption of measuring investment assets and freehold property on a revaluation basis. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (the “Charity SORP”) preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
Going concern
The financial statements have been prepared on a going concern basis as the Trustee Directors believe that no material uncertainties exist. The Trust’s business activities together with the factors likely to affect its future performance and development are detailed in the annual report. It is the view of the Trustee Directors that the Trust is well placed to manage its business risks successfully. This is evidenced in the financial statements, cash flow and liquidity position as stated in this annual report. In addition, the Trust has robust policies and procedures for managing its reserves and its financial risk management objectives. The Trustee Directors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future and they therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.
The most significant areas of uncertainty that affect the Trust are Covid-19 as discussed in the annual report; the levels of investment return; key judgements around property valuation and provisions; the impact of the national living wage and pension increases; public sector funding and its impact on service user numbers.
Incoming resources
Income from grants and fees are matched to the periods for which the services are provided and any such income, not expended by the end of the financial year, is carried forward as deferred income.
All donations and grants towards asset purchases, income from fundraising events, and investment income are treated as income in the year receivable. Legacy income is included either when received or, if before receipt, there is reasonable certainty that the legacy will be received and that the value receivable can be measured with sufficient reliability.
Hollybank Trust Report and Accounts 2020 / 2021
28
Notes (continued)
1 Accounting policies (continued)
Fixed assets and depreciation
Depreciation is provided by the Trust to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:
Freehold land - nil - Freehold buildings 2% per annum - Equipment, fixtures and fittings 20% - 33% per annum Motor vehicles - 12.5% - 25% per annum
A policy of revaluation exists for freehold land and buildings. Valuations are performed by external valuation specialists.
A surplus on book value is transferred to unrestricted funds. A deficit is recognised when the book value exceeds its valued amount. Such losses are recognised in the Statement of Financial Activities unless it arises on a previously revalued asset. A deficit on a revalued asset is recognised from any aggregate surplus relating to that asset. Where there is no such surplus or if the carrying value may not be recoverable, and the deficit or impairment is deemed permanent, it is charged to the Statement of Financial Activities.
Land and buildings in the course of construction or conversion are not depreciated until brought into use.
Plant, equipment, furnishings, fixtures, fittings and other tangible fixed assets, with a value of less than £5,000, are written off as consumables in the year of purchase.
Tangible fixed assets are subject to review on a regular basis to ensure that there has been no impairment and that the value included in assets is fair and reasonable.
Leases
Assets acquired under finance leases or hire purchase agreements are capitalised and the outstanding future obligations are shown in creditors. Operating lease rentals are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a staff time basis. No amounts have been included in the financial statements for services donated by volunteers.
Hollybank Trust Report and Accounts 2020 / 2021
29
Notes (continued)
1 Accounting policies (continued)
VAT
The Trust’s activities are classified as exempt or non-business activities for the purposes of VAT and therefore any VAT charged on purchases is a cost to the Trust and is included in the relevant costs heading in the Statement of Financial Activities.
Investments
Investments are stated at market value at the balance sheet date. Changes made to the balance sheet market values are reflected in the Statement of Financial Activities together with realised profits and losses on sales of investments during the year.
Fund structure
The Trust’s funds are held in the following separate funds:
-
a) Unrestricted fund
-
This fund represents the unrestricted funds that the Trustee is free to use in accordance with the charitable objects of the Trust.
b) Restricted funds
These funds represent donations, grants and fundraising income from events and appeals for a specific purpose. The income is spent on providing land and buildings, equipment, facilities and social activities for the benefit of our children, young people and adults. Further details can be found in note 15(b).
c) Permanent endowment fund
- This is a permanent endowment fund, the income of which is restricted to the provision of additional benefits for our school students.
Tax
The Trust is considered to pass the tests set out in paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the Trust is potentially exempt from taxation in respect of income or capital gains within categories covered by Part 10 of the Income Tax Act 2007 or section 256 of The Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to charitable purposes.
Hollybank Trust Report and Accounts 2020 / 2021
30
Notes (continued)
1 Accounting policies (continued)
Basic financial instruments:
Trade and other debtors / creditors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.
Interest-bearing borrowings classified as basic financial instruments
Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Trust’s cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.
Other financial instruments:
Financial instruments not considered to be basic financial instruments
Other financial instruments not meeting the definition of Basic Financial Instruments are recognised initially at fair value. Subsequent to initial recognition, other financial instruments are measured at fair value with changes recognised in the Statement of Financial Activities.
Hollybank Trust Report and Accounts 2020 / 2021
31
Notes (continued)
2 Income and endowments
| Unrestricted | Restricted | Endowment | 2021 | 2020 | ||
|---|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | ||
| Donations and legacy | Donations | 29,141 | 37,160 | - | 66,301 | 73,625 |
| income: | Fundraising events | - | - | - | - | 33,136 |
| Legacies | - | 5,000 | - | 5,000 | 10,163 | |
| ___ | ___ | ___ | ___ | ___ | ||
| Total income from legacies and donations | Total income from legacies and donations | 29,141 | 42,160 | - | 71,301 | 116,924 |
| ___ | ___ | ___ | ___ | ___ | ||
| Investment income | Dividends | - | - | 1,238 | 1,238 | 902 |
| Interest received | 22,835 | - | - | 22,835 | 25,982 | |
| ___ | ___ | ___ | ___ | ___ | ||
| Total investment income | 22,835 | - | 1,238 | 24,073 | 26,884 | |
| ___ | ___ | ___ | ___ | ___ | ||
| Charitable activities | Residential services | 13,458,988 | - | - | 13,458,988 | 13,009,119 |
| School | 1,023,271 | - | - | 1,023,271 | 888,121 | |
| Enrichment services | 19,917 | - | - | 19,917 | 253,356 | |
| ___ | ___ | ___ | ___ | ___ | ||
| Income from charitable | ||||||
| activities | 14,502,176 | - | - | 14,502,176 | 14,150,596 | |
| ___ | ___ | ___ | ___ | ___ | ||
| Other income | 536,537 | - | - | 536,537 | 224,266 | |
| ___ | ___ | ___ | ___ | ___ | ||
| Total other incoming | ||||||
| resources | 536,537 | - | - | 536,537 | 224,266 | |
| ____ | ____ | ____ | ____ | ____ | ||
| Total incoming resources | 15,090,689 | 42,160 | 1,238 | 15,134,087 | 14,518,670 |
The 2020 figures included £65,854 restricted donations and legacies.
Hollybank Trust Report and Accounts 2020 / 2021
32
Notes (continued)
3 Cost of donations and legacy income
| Unrestricted | Endowment | 2021 | 2020 | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Staff costs | 4,807 | - | 4,807 | 108,916 |
| Office and premises costs | 3,993 | - | 3,993 | 13,597 |
| Insurance | - | - | - | 1,020 |
| Motor and travel expenses | - | - | - | 1,295 |
| Depreciation | - | - | - | 159 |
| Brochures and publicity | - | - | - | 2,276 |
| Training and recruitment | - | - | - | 393 |
| Fundraising events | (1,238) | 1,238 | - | 6,774 |
| Support costs (note 5) | - | - | - | 36,061 |
| ___ | ___ | ___ | ___ | |
| 7,562 | 1,238 | 8,800 | 170,491 |
The 2020 figures include £902 of fundraising costs allocated to the endowment fund.
4 Cost of charitable activities
| 4 Cost of charitable activities | ||||
|---|---|---|---|---|
| Unrestricted | Restricted | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Residential services: | ||||
| Staff costs | 8,617,118 | - | 8,617,118 | 8,613,944 |
| Depreciation | 265,109 | 504 | 265,613 | 296,063 |
| Other direct costs | 1,416,956 | - | 1,416,956 | 1,164,800 |
| Support costs (note 5) | 2,320,938 | - | 2,320,938 | 1,939,437 |
| School: | ||||
| Staff costs | 692,968 | - | 692,968 | 595,535 |
| Depreciation | 6,810 | - | 6,810 | 10,714 |
| Other direct costs | 108,129 | - | 108,129 | 114,879 |
| Support costs (note 5) | 468,796 | - | 468,796 | 329,450 |
| Enrichment services: | ||||
| Staff costs | 283,455 | - | 283,455 | 431,364 |
| Depreciation | 52,949 | 31,563 | 84,512 | 97,950 |
| Other direct services | 49,192 | - | 49,192 | 110,659 |
| Support costs (note 5) | 261,668 | - | 261,668 | 201,725 |
| Other costs of charitable activities | 6,579 | - | 6,579 | 111,534 |
| ___ | ___ | ___ | ___ | |
| 14,550,667 | 32,067 | 14,582,734 | 14,018,054 |
The 2020 figures include £32,564 of depreciation allocated to the restricted fund.
Hollybank Trust Report and Accounts 2020 / 2021
33
Notes (continued)
Allocation of central support costs
| Residential | School | Enrichment | 2021 | 2020 | |
|---|---|---|---|---|---|
| services | services | ||||
| £ | £ | £ | £ | £ | |
| Governance: | |||||
| Staff costs | 397,985 | 31,525 | 28,371 | 457,881 | 527,012 |
| Other costs | 52,906 | 3,304 | 3,775 | 59,985 | 129,939 |
| Finance and payroll: | |||||
| Staff costs | 206,442 | 10,954 | 14,747 | 232,143 | 199,290 |
| Other costs | 31,629 | 1,679 | 2,260 | 35,568 | 45,467 |
| People and culture: | |||||
| Staff costs | 198,113 | 37,214 | 43,783 | 279,110 | 170,443 |
| Other costs | 164,282 | 30,861 | 36,305 | 231,448 | 83,355 |
| Information technology: | |||||
| Staff costs | 108,813 | 52,062 | 8,677 | 169,552 | 155,877 |
| Other costs | 316,269 | 151,316 | 25,220 | 492,805 | 190,406 |
| Premises and amenities: | |||||
| Staff costs | 303,279 | 53,823 | 35,383 | 392,485 | 368,933 |
| Other costs | 351,145 | 62,324 | 40,970 | 454,439 | 408,942 |
| Depreciation | 190,075 | 33,734 | 22,177 | 245,986 | 227,009 |
| ___ | ___ | ___ | ___ | ___ | |
| 2,320,938 | 468,796 | 261,668 | 3,051,402 | 2,506,673 |
Other costs
Audit and professional costs (see below)
| 2021 | 2020 |
|---|---|
| £ | £ |
| 25,253 | 20,594 |
| ___ | ___ |
| 25,253 | 20,594 |
Fees payable to the auditors for services to the Trust (included in the above costs):
Audit Tax advisory services
| 2021 | 2020 |
|---|---|
| £ | £ |
| 18,623 | 16,752 |
| 5,880 | 2,688 |
Hollybank Trust Report and Accounts 2020 / 2021
34
Notes (continued)
Other costs (continued)
Governance costs of £25,253 (2020: £ 20,594 ) have not been allocated against charitable activities as management do not consider these costs to represent a day to day operating cost of the Trust. As such, they have been recognised as a separately identifiable expense in the Statement of Financial Activities.
Staff costs
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 9,841,404 | 9,813,953 |
| Non contractual redundancy | - | 10,924 |
| Social security costs | 741,784 | 749,579 |
| Pension costs (see below) | 325,670 | 315,029 |
| Agency and supply labour cost | 220,661 | 281,829 |
| ___ | ___ | |
| 11,129,519 | 11,171,314 | |
| Pension costs | ||
| 2021 | 2020 | |
| £ | £ | |
| Defined contribution schemes | 273,959 | 274,017 |
| Defined benefit scheme (Teachers) | 51,711 | 41,012 |
| ___ | ___ | |
| 325,670 | 315,029 |
Pension costs
The average number of employees (excluding agency and supply labour) during the year was as follows (full time equivalents):
| 2021 | 2020 | ||
|---|---|---|---|
| No. | No. | ||
| Direct services | Residential services | 363.6 | 365.1 |
| School | 27.7 | 24.1 | |
| Enrichment services | 19.0 | 23.4 | |
| Fundraising | - | 2.8 | |
| Support | Governance | 4.7 | 3.3 |
| Finance and payroll | 7.6 | 7.4 | |
| People and culture | 9.9 | 6.4 | |
| Information and technology | 5.2 | 4.9 | |
| Premises and amenities | 14.9 | 15.3 | |
| ______ | ______ | ||
| 452.6 | 452.7 |
Hollybank Trust Report and Accounts 2020 / 2021
35
Notes (continued)
7 Staff costs (continued)
The number of employees who received emoluments, including redundancy and taxable benefits, in excess of £60,000 is as follows:
| follows: | ||||
|---|---|---|---|---|
| 2021 2020 |
2020 | |||
| No. No. |
No. | |||
| £70,001 - £80,000 | £70,001 - £80,000 | £70,001 - £80,000 | 3 3 |
3 |
| £90,001 - £100,000 | £90,001 - £100,000 | £90,001 - £100,000 | - 1 |
1 |
| £100,001 - £110,000 | £100,001 - £110,000 | £100,001 - £110,000 | 1 - |
- |
In respect of these employees, pension contributions of £23,402 (2020: £ 21,298 ) were payable by the Trust into defined contribution schemes. The key management personnel comprised of the Chief Executive, Executive Director of Finance, IT & Estates, Executive Director of People, Communications & Children’s Services and the Executive Director of Operations (the executive team). In respect of these employees, the total salaries and benefits amounted to £334,320 (2020: £ 323,799 ) plus pension contributions of £23,402 (2020: £ 19,863 ) .
Remuneration of Trustee Directors and related party transactions
None of the Trustee Directors of Hollybank Trustees Limited received any remuneration or expenses during the year in the course of their duties as Trustee Directors (2020: £nil) .
Dr V Thiyagesh, a Trustee Director, provided a paediatric service free of charge to the Trust (2020 : £nil).
Mr C Sharp, a Trustee Director, is a minor shareholder of Sharps Consultancy Limited, a company which provides recruitment services. During the year, the Trust paid for recruitment services, on an arm’s length basis, amounting to £nil (2020: £12,000) .
Tangible fixed assets
| Assets under the | Land and | Equipment, | Motor | Total | |
|---|---|---|---|---|---|
| course of | buildings | fixtures and | vehicles | ||
| construction | fittings | ||||
| £ | £ | £ | £ | £ | |
| Cost or valuation | |||||
| At beginning of year | 59,612 | 21,603,884 | 5,013,953 | 1,088,784 | 27,766,233 |
| Additions | 37,363 | - | 263,904 | 32,959 | 334,226 |
| Disposals | - | - | - | (139,825) | (139,825) |
| Transfers & write off | (37,385) | - | 21,793 | - | (15,592) |
| ___ | ___ | ___ | ___ | ___ | |
| At end of year | 59,590 | 21,603,884 | 5,299,650 | 981,918 | 27,945,042 |
| ___ | ___ | ___ | ___ | ___ | |
| Depreciation | |||||
| At beginning of year | - | 348,426 | 4,460,841 | 601,965 | 5,411,232 |
| Charge for year | - | 321,005 | 209,120 | 72,796 | 602,921 |
| Disposals | - | - | - | (139,825) | (139,825) |
| ___ | ___ | ___ | ___ | ___ | |
| At end of year | - | 669,431 | 4,669,961 | 534,936 | 5,874,328 |
| ___ | ___ | ___ | ___ | ___ | |
| Net book value | |||||
| At 31 March 2021 | 59,590 | 20,934,453 | 629,689 | 446,982 | 22,070,714 |
| ___ | ___ | ___ | ___ | ___ | |
| At 31 March 2020 | 59,612 | 21,255,458 | 553,112 | 486,819 | 22,355,001 |
Hollybank Trust Report and Accounts 2020 / 2021
36
Notes (continued)
9 Tangible fixed assets (continued)
The freehold land and buildings were revalued on 18 June 2019 by Ian Naylor MRICS Partner of Sanderson Weatherall, independent chartered surveyors. The valuation was prepared in accordance with the RICS Valuation – Professional Standards, January 2014 Global and UK edition, published by the Royal Institution of Chartered Surveyors (“RICS”) (“the Red Book”). The valuation has been prepared on the basis of Depreciated Replacement Cost (DRC), which is defined by UKVS 1.16 of The Red Book. DRC is defined as; ‘the current cost of replacing an asset with its modern equivalent asset less deductions for physical deterioration and all relevant forms of obsolescence and optimisation’. In accordance with paragraph 10.35 of the Charity SORP, the freehold land and buildings are to be valued on a rolling 5-year basis.
The historic cost of the freehold land and buildings at 31 March 2021 is £14,166,195 (2020: £ 14,166,195 ) . Included in the net book value of freehold land and buildings is £5,815,000 (2020: £5,815,000) being the valuation of the land and this has not been depreciated.
Investments
Investments are held in COIF Charities Investment Fund – Income Units, a UK Fund, and are a permanent endowment.
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Investments at market value at 31 March 2020 | 35,131 | 36,192 |
| Increase/(decrease) in value | 7,259 | (1,061) |
| ___ | ___ | |
| Market value at 31 March 2021 | 42,390 | 35,131 |
| Debtors 11 |
||
| 2021 | 2020 | |
| £ | £ | |
| Trade debtors | 856,350 1,143,286 |
1,143,286 |
| Sundry debtors and prepayments | 286,749 | 175,665 |
| Income accruals | 284,050 | 413,380 |
| ___ | ___ | |
| 1,427,149 | 1,732,331 |
Hollybank Trust Report and Accounts 2020 / 2021
37
Notes (continued)
Liabilities: amounts falling due within one year
| Liabilities: amounts falling due within one year 12 |
||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Bank loans (note 13) | 216,628 | 276,175 |
| Trade creditors | 322,607 | 126,044 |
| Financial liabilities designated at fair value through income and expenditure | 15,678 | 21,265 |
| Other creditors | 1,453,667 | 1,389,908 |
| Other taxes and social security | 199,115 | 160,527 |
| Accruals and deferred income | 692,697 | 503,772 |
| ___ | ___ | |
| 2,900,392 | 2,477,691 | |
| Liabilities: amounts falling due after more than one year 13 |
||
| 2021 | 2020 | |
| £ | £ | |
| Bank loans (see below) | 465,218 | 681,917 |
| Financial liabilities designated at fair value through income and expenditure | 16,159 | 33,407 |
| ___ | ___ | |
| 481,377 715,324 |
715,324 |
The bank loans are secured by a first charge on the freehold land and buildings, which have a net book value at 31 March 2021 of £20,934,453. The bank loans are payable by instalments as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Within one year (note 12) | 216,628 276,175 |
276,175 |
| In the second to fifth year | 465,218 681,917 |
681,917 |
| ___ | ___ | |
| 681,846 |
958,092 |
Fair value of financial instruments
The bank loan agreements allow for the set off of any credit balances on the Trust bank current accounts against two of the loans before the calculation of interest. The rate of interest chargeable on these bank loans is 1.76% over base rate.
Financial liabilities designated at fair value through income and expenditure relate to an interest rate swap financial derivative used to hedge the interest risk on two long term loans. The contract is due to mature in February 2024.
The fair value of the interest rate swap is estimated by discounting the difference between the cumulative contractual interest paid and the fair value of the cumulative interest paid at the maturity of the contract. The financial instrument has been identified as a level 2 instrument.
The instrument has a carrying liability of £31,837 as at 31 March 2021 (2020: £ 54,672 ). The reduction in the liability of £22,835 (2020: £ 15,168 ) has been recognised through the Statement of Financial Activities.
Hollybank Trust Report and Accounts 2020 / 2021
38
Notes (continued)
Commitments
At 31 March 2021, the Trust had capital commitments of £40,634 (2020: £1 3,501 ).
At 31 March 2021, the Trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases as follows:
| Other | 2021 | 2020 |
|---|---|---|
| £ | £ | |
| Within one year | 69,451 73,176 |
73,176 |
| In the second to fifth year | 196,945 205,593 |
205,593 |
| Over five years | 43,631 | 64,572 |
| ___ | ___ | |
| 310,027 343,341 |
343,341 |
Funds
a) Analysis of net assets between funds
| Tangible | Net | Liabilities due | |||
|---|---|---|---|---|---|
| fixed | current | after more | |||
| assets | Investments | assets | than one year | Total | |
| Restricted and endowment funds | £ | £ | £ | £ | £ |
| Fundraising account | 645,268 | - | - | - | 645,268 |
| Huddersfield Charity for Children (previous | |||||
| registration number 221357) endowment fund | - | 42,390 | - | - | 42,390 |
| 645,268 | 42,390 | - | - | 687,658 | |
| Unrestricted funds | 21,425,446 | - | 1,687,067 | (481,377) | 22,631,136 |
| ___ | ___ | ___ | ___ | ___ | |
| 22,070,714 | 42,390 | 1,687,067 | (481,377) | 23,318,794 | |
| For the year ended 31 March 2020: | |||||
| Tangible | Net | Liabilities due | |||
| fixed | current | after more | |||
| assets | Investments | assets | than one year | Total | |
| Restricted and endowment funds | £ | £ | £ | £ | £ |
| Fundraising account | 696,704 | - | - | - | 696,704 |
| Huddersfield Charity for Children (previous | |||||
| registration number 221357) endowment fund | - | 35,131 | - | - | 35,131 |
| 696,704 | 35,131 | - | - | 731,835 | |
| Unrestricted funds | 21,658,297 | - | 1,119,427 | (715,324) | 22,062,400 |
| ___ | ___ | ___ | ___ | ___ | |
| 22,355,001 | 35,131 | 1,119,427 | (715,324) | 22,794,235 |
Hollybank Trust Report and Accounts 2020 / 2021
39
Notes (continued)
- 15 Funds (continued)
b) Summary of fund movements
| Fund balances | Fund balances | Incoming | Incoming | Outgoing | Revaluation of | Transfers | Transfers | Fund balances | ||
|---|---|---|---|---|---|---|---|---|---|---|
| brought forward | resources | resources | investment | carried forward | ||||||
| £ | £ | £ | £ | £ | £ | |||||
| Restricted funds | ||||||||||
| Bradbury therapy centre | 415,639 | - | (11,604) | - | - | 404,035 | ||||
| Transition projects appeal | 19,680 | - | (504) | - | - | 19,176 | ||||
| ELMS project | 17,571 | - | (17,571) | - | - | - | ||||
| Courtyard project | 119,377 | - | (2,388) | - | - | 116,989 | ||||
| Legacy for Rowan Court | 105,068 | - | - | - | - | 105,068 | ||||
| Other income received | 19,369 | 42,160 | - | - | (61,529) | - | ||||
| Restricted funds | 696,704 | 42,160 | (32,067) | - | (61,529) | 645,268 | ||||
| Endowment fund | 35,131 | 1,238 | (1,238) | 7,259 | - | 42,390 | ||||
| Unrestricted funds | 22,062,400 | 15,090,689 | (14,583,482) | - | 61,529 | 22,631,136 | ||||
| 22,794,235 | 15,134,087 | (14,616,787) | 7,259 | - | 23,318,794 | |||||
| For the year ended 31 March 2020: | For the year ended 31 March 2020: | |||||||||
| Fund balances | Incoming | Outgoing | Revaluation of | Fund balances | ||||||
| brought forward | brought forward | resources | resources | investment | carried forward | |||||
| £ | £ | £ | £ | £ | ||||||
| Restricted funds | ||||||||||
| Bradbury therapy centre | 427,243 | - | (11,604) | - | 415,639 | |||||
| Transition projects appeal | 20,184 | - | (504) | - | 19,680 | |||||
| ELMS project | 37,047 | - | (19,476) | - | 17,571 | |||||
| Courtyard project | 84,035 | 36,322 | (980) | - | 119,377 | |||||
| Legacy for Rowan Court | 94,905 | 10,163 | - | - | 105,068 | |||||
| Other income received | - | 19,369 | - | - | 19,369 | |||||
| Restricted funds | 663,414 | 65,854 | (32,564) | - | 696,704 | |||||
| Endowment fund | 36,192 | 902 | (902) | (1,061) | 35,131 | |||||
| Unrestricted funds | 21,786,159 | 14,451,914 | (14,175,673) | - | 22,062,400 | |||||
| 22,485,765 | 14,518,670 | (14,209,139) | (1,061) | 22,794,235 |
Hollybank Trust Report and Accounts 2020 / 2021
40
Notes (continued)
15 Funds (continued)
Bradbury therapy centre
A grant of £580,000 was received in 2006 from Sport England for construction of the Bradbury therapy centre which opened in 2006 and is being written off over the expected useful life of 50 years.
Transition projects appeal
A contribution of £25,000 was received in August 2008 towards the construction of Rowan Court and, in compliance with the terms of the award, is being written off over the property’s expected useful life of 50 years.
ELMS project
A contribution of £96,819 was received in 2015/16 towards the project for the redevelopment of rooms within the Roe Head building to install multi-sensory equipment for use by both adults and children.
Courtyard project
Contributions totalling £36,322 in 2019/20, £25,160 in 2018/19, £26,500 in 2017/18 and £32,375 in 2016/17 were received towards the project for the development of the courtyard for use mainly by adults and children.
Legacy
Cheques to the value of £10,163 were received in 2019/20 and a cheque to the value of £94,905 was accounted for in 2018/19 from a legacy of a former member of staff. These monies are restricted for use at Rowan Court.
Details concerning the Endowment Fund can be found in the Trustee Directors’ annual report on page 16.
Unrestricted funds are funds that are free to be used in accordance with the charitable objects of the Trust. There are no designated funds as at 31 March 2021 (2020: £nil).
There are no other recognised gains or losses that have not been dealt with in the Statement of Financial Activities as set out on page 22.
Hollybank Trust Report and Accounts 2020 / 2021