Registered number.. 02971171 Charity number.. 1046225 BETHPHAGE TRUSTEES, REPORT ANO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 WR Partners Protecting your future.
BETHPHAGE IA Company Limited by Guarantse) CONTENTS Page Rafgronc8 and Administrative Datails of thg Charity. its Trustees and Advisers Tru5tses' Report 3-19 Indepondont Auditors, Report on the Financial Statemants Statsment of Financial Activities 20-23 24 Balan¢• Sh••t 25-26 Stat8ment of Cash FlovpJ 27 Notes to thè Financlal Stat•m•nts 28-44
BETHPHAGE IA Company Limited by Guarantse) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 klARCH 2021 Tru$tg9$ DeTek Lum. Chair Irena Sobolewska. Vice Chair Anthony Charles Aston Ruth Houghlon Anna Krauss lappointed 10 May 20211 Laura Vemon (resigned 10 September 20201 Company rggist8red number 02971171 Charity rogl¥tsred numb•r 1046225 Rggl$tsrgd offi¢e 8 Longbow Close Harfescott Lane Shrewsbury Shropshire SY1 3GZ Company $9¢r8tary Stuart Wheeler Chlef èxecutSvo officor Slefanie Kay Ind•p•nd•nt auditorn WR Partners Chartered Accountsnls Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG Bank8rs The crpera'Ve Bank plc 1 Balloon Street Manchester M4 4BE CAF Bank Ltd 25 Kings Hill Avenue West Malling ME19 4JQ Sollcltors Trowers and Hamlin LLP 3 Bunhull Row London EC1Y 8YZ Senior rnanagement tsam Slefanie Kay, Chief Execub"ve Officer Ali¢e Blakeman. Service Development Manager Helen Burton. Head of Operations Marb'n Dean, Finance Manager Clare Shaw, Quality Manager Chris Stephens, Head of Finance Stuart Wheeler, Head of Human Resources Page 1
BETHPHAGE IA Company Limited by Guarantse) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Honorary President Donna Wemer Members Mosaic Council of Lutheran Churches Page 2
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT FOR THE YEAR ENDED 31 klARCH 2021 The Trustees present their annual report together ¥th the audited financial stslements of Belhphage for the year 1 April 2020 to 31 March 2021. The Annual Report serves the purposes of both a Trustees, report and a directors. report under company law. The Trustees confirm ihat the Annual Report and financial statements of the charitable company comply with the current statLrtOry requirements, the requirements of the charitable ¢ompany's goveming document and the provision5 of the Statement of Recommended Practice ISORPI applicable lo charities preparing their accounts in accordance wlh the second edition Financial Reporb'ng Standard applicable in the UK and Republic of Ireland IFRS1021 (October 20191. Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 20r Islralegic Report and Directors, Reporti Regulation$ 2013 has been omitted. Introduction A5 the board reported last year. Belhphage and much of the world have continued lo deal with the unprecedented changes and restrictions that Covid-19 necessitated for nations. businesses. charities and citizens alike. Belhphage implemented ils business continuity plan and has worked tirelessly throughout the year to prole¢t the people we support and $tsff alike. Although we Can now See restri¢lions beginning to ease, our priority remains the safety and welbeing of people we support and staff. During the year we believe that our core values, and particularly safety, remained al the heart of our decision-making processeg and day to day operations. and were the one 'conslant' in often rapidly changing ur¢umslances. The outlook for the coming year is a lol more posthve a$ we expecl the effect of vaccines to pemiil a return lo Some form of normality. We have tried to leam lessons and make improvements throughout the pandemic and 11 continue to do so. But %%E also take bme to refled on whether there are other wider lessons that we can learn. Sadly, Bethphage did not escape the ravages of Covid-19. During the year seNi¢e users sadly dled In hospital after contracting the virus in hospital settings. Although we had several staff who contracted Covid-19 during the year, widespread transmission throughout the organisation did not occur. We believe that the infection ontrol procedures and personal protective equipment, together wth the rigorous attents'on to safety by our staff, had a major impact on safety- The Board know how vital our staff are in delivenng our serwces. Bul this year has been exceptional. and so have our stsff. Their creative energy. optimism. abiltty to adapt lo rapTdly changing new and highly challenging Situations, and their semessness at a time of great personal risk has been inspirats'onal. As the Board said last year, our hope is that our country ultimately recognises the importance and value that society places on social care services and that this is reflected in the rewards that dedicated staff in the sector receive. The 8oard would also like lo thank the people we support. their families antl our local authority partners for their support, Co-operation and help Iluring the year. Their ¢&operalion and assistance has made the difficult adjustrnents that have had to be made far easier to implement. Alihough there were earfy temporary modifications by the Government of the Mental Heath Act and Mental Capacity Act legislation, and the Deprivation of Liberty Safeguards, none of these modthcations were required or used by Bethphage in ils provision of services. Page 3
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 The Board hope that as the country emerges from the Covid- 19 outbak that we can dOuble our efft)rts lo apply the things we have learned to provide even better SeiceS and outcomes in the future. The lockdown and wider Covid-19 restrictions have presented numerous challenges to Belhphage and prevented the people support from doing many of the thing5 that they would most wish lo do. Our day services have been severely curtailed during the year. th stsff fo¢vssing on contacting the people who use these services regulady and organising online events. garden visits. well-being activity packs, and regular Communication. Our staff who provide supported living and small care home services have adapted daily routines and created new and stimulating activities for people to participate in at their homes or in their gardens Ind, as the lockdown has eased, fijll advantage has been taken of any new opportunrties available. During the Covid-19 lock-downs our creative staff worked hard to create meaningful artivities." Virtual social gatherings Egg and Spoon races Making Easter bonnets Planting seeds and gardening Pre.paring frnzen vryetables Tai chi /iiml)a Outdoor games Treasure hunts Creating tinie capsules Workplace Postln93 - 2020121 Objectivey and activititig a. Pollcles and oblectlves Our Vision is of inclusive communities Whe all people have the opportunity lo live the life they choose. Our Mission is to be an excellent prowder of services for peoF4e wth disabilits'es and we seek to deliver services based on four core values.. Personal Growth." We ate a safe and heathy ewronment, VA)e we provide positive feedback, support each other to reflect on a¢b'ons and leam and grow from them Rasp8ct.' We respect and value the diversty, individualty and views of everyone we come into contsct wrth.. fully considering each perspecb've before arriving at an agreed outcome Honesty.. We work together in an open and honest way.. taking responsibility and remaining accountable for our actions Active Involvement." We togetheT, actwety engaging and invofving the people we support In everyday actions. Page 4
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Oblo¢¥•$ and actlvltl•$ l¢ontlnu•d) At Dur AGM in October 2020 the Board were delighted to appoint Donna Wemef as Honorary President of Bethphage for another Onyear term. Donna brings a wealih of experience lo Bethphage and is a valuable Sounding board for both the Board and Executive Management Team IEMTI. During the year Bethphage developed its new Strategic Plan for 2020 - 2024 which, because of Covid-19 and the likely changing financial landscape. we have separaled the plan inlo $ part$.. 2020 - 2022 2022 - 2024 The first part of the plan is enlilled 'Building Re$ilien¢e and delivering Best Value. and outlines our plans for swft action, to prepare Bethphage for the challenges ahead. The second part is entitled 'Creating Sustainable Growth and Quality, and focuses on the future grovth opportuniknes that will emerge, %thilst maintaining our focus on high quality provision. A family member thanked a member of staff Irviii ddy uvvurluiiilics Ivr dicir suvvvrl through lockdown saying -you are brilliant, can t thank you enouqh-. Relative - 2020 Belhphage recognises that enomous strain ha$ been placed on our Commissioners, finances by the pandemic, and that they s*ill be seeking lo ensure they make savings and improve efficiencies going ftsrward. During the first part of the Strategic Plan Belhphage is looking in detail al how we improve the efficiency. and therefore the cost. of $eNice delivery. Our aim is also to work wn$¢ruclively wlh Commissioners lo develop where appropriate, new models of service which can reduce overall costs, but without sacrificing quality or safety. The changes in working practices in the last year will be examined lo determine how they might be employed, in whole or In part, in the future lo improve efficiency and reduce costs. For exarnple, in lulure, once common face lo face meetings wll be examined lo ensure that al value is being obtained by the time and expense of travelling. Two projects aimed al examining the benefits of frjrther use of Assistive Technology have commenced during the year, and this is likely to be an area of continuing interest in the hjture. In setb'ng objectives and planning for activities. the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, induding the guidance 'Public benefit.. running a charity IPB21'. Page 5
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Oblo¢¥•$ and actlvltl•$ l¢ontlnu•d) b. Strategies and activities for achieving objectives Our primary activities are to support people disabilities to athieve their potential through the direct provision of supported living services. registered care homes. community inclusion, and day opportunities. As at 31st March 2021, we were delivering c7,806 120.. 8.2461 hours per week ol support to 163 120.. 1671 people in Shropshire, Telford, Walsall, Wolverhampton and Birniingham, 90120.. 941 of whom live in our small care homes or their own home wlh us as the main support provider I'sUPPOrted living") whilst the other 73120.. 731 attend our day opportunity services. In March 2019 we SUe$SlIY tendered for. and later transferred, the Shrtspshire Shared Lives scheme into Bethphage. 70120.. 39+Spite] people leaming disabilities, autism and mental health, live with 68 120.. 621 pemanent or respite Shared Lives carers. The s¢heme provides valuable respite breaks for families and pemianent Shared Lives carers and enables people to live and be involved in their local communrties. Belhphage's 2020 - 2024 strategic plan sets out the Chanws Key Strategies and Activities, and our Aims and Objectives of.. Maintaining a strategic relationship with Commissioners Efficiency Improvement Improved Management Processes and Infomwtion Growth Improved Service Delivery c. Publlc 8ènèfit We are confident our objectives and acts'vitses are beneficial to the people we support and of benefit to the public in general. Our vision is of Inclusive Communities where all people have the opportunity lo live the life they Choose. We achieve this through our direct service delivery and through our support and contributions lo the development of learning disability seNi¢es in the UK. We also promote the integration of people with leaming disabiliti'es into universal community services such as having equal access lo heatth care, education, employment, Sport. and lSure activities. "We would like to thank all the support staff who have never missed taking M shopping right thrniigh the panrfle.mir. Wp. have heen .En very grateful for this wonderful support and cannot prai5C thcni enough for their knndnc55 and patience. Very well done-. Parent - 2020 Page 6
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Oblo¢¥•$ and actlvltl•$ Icontlnu•d) d. Service Quality A fundamental part ol Bethphage's approach is to continually strive to improve the quality of the services which we deliver and achieve better outcomes for the people we support (who are some of the most vulnerable in society). As well as statutory CQC inspects'ons of both of our Registered Homes and four registered locations, from where we operate community services, Belhphage has a long-eslablished internal quality audit system in place for all service5. Each service Is assessed against a range of quality and performance measure5 by the Quality Manager and aa$ of improvement idenlffied and reported on to the area manager. service manager and staff, the Executive Management Team IEMTI and the Board. During the year the qualty system has relied on online interviews with managers. desktop reviews of reporting and systems, Surveys gf service users. their families, and staff. Added to this, regular reporting from ihe Positive Behaviour Support Team and close monitoring of compliments and investigation of complaints. concems and suggestions. has provided the Charity additional layers of performante monitoring. SUR VEY QUOTES ABOUT THEIR SUPPOR T: -staff always be there for me. With my appointn)ents my health when I need the "nice people-, "they care about my wcllbe.ing help mc out- "good 5taff- -nice and kind . I like the staff-, -supportive and triendly- and "nice and reliable-. "They are fantasD"c with my confidence - am very happy with my support-. "I get on wcll with thcm. They hclp mc livc in y home. They are kind-. "Funny. understanding. want the best for ie- SurveLof People We Su port . 2020 In addition. Belhphage operates an independent annual review ol quality for each individual service, Iwilh the involvement and consent of the people who use our services). to ensure that the voice of the people we support is heard al the highest levels of the Charity. The annual audit is a thorough and comprehensive review of the service provided at ea¢h location, the findings of which a reported to the Charity's board and EMT. evidencing culture and progress. Feedback from those we support and their families plays an integral role in getb'ng beneath the surface of service delivery, ensuring intemal views are accurate reflects"on5. Ongoing relevant and focussed stsff training and development is a key part of ensuring that we have the resources available to deliver high quality seNices and to recognise when change or improvement is required. The majority of training has been moved online, with only essential training occurring face to face, and only when pemiitted. Page 7
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Oblo¢¥•$ and actlvltl•$ l¢ontlnu•d) In 2018 Bethphage signed up to the STOMP initiative and continues to implernent its principles. STOMP means stopping over medication of people wth a leaming disability. autism or both wlh psychotropic medicines. STOMP Is a national project Involving many different organisalions that are helping lo slop the over use of these medicines. STOMP is about helping people lo stay well and have a good quality of life and ensuring that regular reviews of medicab'on are undertaken for everyone we support. Our investment in Positive Behaviour Support IP8SI supports people with the ongoing management of behaviours of concefn, for which medication would have been historically prescribed, The Quality Manager reports quartedy to the EMT and the Board and provides progress updates on how this Initiative is affecting the wellbeing of the people we support. The Board are pleased lo report further progress in the year. despite the ch3llenges th81 reslriclions have presented lo users of services. An independent advocate said that she is "Very happy with the care and safety provided in the service at thcse Covid 19 tinpes" Independent Advocate - 2020 o. Voluntsorn 8elhphage's greatest asset 1$ ils people and the Trustees, who a all volunteets. would like to thank the Staff and volunteers for their continuous efforts lo ensure that we deliver consislenlly high-quality. person<entred services in these very Challenging limes. In recent years. 8elhphage has enjoyed the benefrt of a steadily increasing number of volunteers, especially in the day opportunty services. Belhphage uses the lime and enthusiasm contributed by volunteers to add value and opportunty to the beneficiaries of our services and not as * replacement for core funded staff. The Trustees wish to record their appreciation of Bethphage's volunteer supporters and the benefits they bring lo the expenences of people using Bethphage services and to the success of the Chanty. Belhphage Friends, a group estsblished lo inaSe engagement with our supporters and volunteers continues lo grow. Achlovoments and porformanco a. Achlgvgmonts and Pgrlorn)an¢e In 2020121. we retained our existing contracts, consolidating and maintaining our current provision. Tendering for the Transforming Care work was a slralegic decision in 2018119. Belhphage has shown itself well placed lo deliver this type of Complex provision. wth the knowledge. skills. and expertise across the organisation and in particular wthin our PBS team. Whilst our tender was the winning bid. delays in the start-up, outside our area of control, pushed the start dates into 2019120. The delay provided additional time to maximise efforts to ensure a smooth and effective Iran511ion. Our three day setvices, through which we provide opportunilies for meaningful, person-centred day opportunities for adults with leaming disabilities, prior to the lockdown conlinued to enable large numbers of people with a learning disability to access and benefit from Bethphage services and is consistent with our approach of enabling people lo live the life they choose. For much of the year, the people we support could not access the services and the staff made regular contsct wrth users of these services and their familie5, providing help lo collect shopping and pres¢riplions and give any support they could over the phone or via digital ¢tsmmunicalion. In addition, social media was used to maintain conta¢t. share infom)ation and help people stay positive and upbeat. Page 8
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 A¢hlovem•nts and perfomian¢• 1contlnu1 The current number of Care Quality Commission ICQC) registered locations is six. None of our service locations were inspected by CQC during the 2020 2021 financial year, but betsyeen November 2018 and May 2019 the five we had at that lime were inspected. All of our registered homes and locab.ons loffice51 have been inspected and judged"good' in all areas in these inspe¢b"ons. "My son has bccn supportcd by your5clvcs for a number of years. He has developed so so much because of all your hard work and perseverance. Thankslllv Annual Family Survey - 2020 b. Transforn)Ing Care Transforming Care is a national initiative developed in response lo the Winlerboume View crisis in 2011. 11 resulted in Govemmentsl pressure lo move people out of ineffective and expensive inslilulions whilst providing people wlh the dignity. kindness. compassion, anil opportunits'es lo develop and grow wth person centred Support, thu$ Teducing the focus on unnecessary and undignified physical inlervenlions. In 2018, Bethphage successfully tendered for an exciting opportunity lo support people 0 had been placèd in secure hospital a¢commodalion out of county. The successful bid resulted in contracts lo support people in individual properts'es, giving them the opportunty to retum to their previous home county. be closer lo their families, and have an individual. pers0n-centd support service. This has enabled them to develop and grow, th the support of a well-trained and effedive staff team. Belhphage's intemal PBS team have been heavily involved in this work and their skills and kno¥edge have enhanced the Support these people receive and provided valuable training, support and reassurance lo their support stsff. c. Fundraising Belhphage is registered the Fundraising Regulator and ¢omplies Imth the Code of Fundraising Pra¢lice. Community fvndraising generally takes place face to face wth the public at events and Bethphage open days elc, through donations via the Bethphage website, and from applications to trusts, foundations, and corporate partners. Third party organi5ats.ons are not used to fijndraise on behall of Bethphage. Fundraising and the approach lo be used qUI$ approval of the management of the Charity prior lo commencing. the fundraising approach is monrtored and funds are applied onty to the purpose for which they were raised. Fundraising activities involving vulnerable people are restricted to small sums for subscriptions and similar items lch represent fair value to them as irKlividuals for the activity. Page 9
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 A¢hlovem•nts and perfomianc• 1contlnu1 d. Future Plans and Investmerrt The primary objective for the coming year is to promote the principles and five strategic goals of the four-year strategic plan 'Building Resilien¢e. Delivering Best Value", whi¢h oudines the approaches we will follow over the first years of the plan to translate the mission, vision and core values of the charity into positive outcomes. The detailed delivery obiecb.ves for 202112022 are aimed at posth"oning Belhphage to deal most effectively with the challenges that the sector will face as * emerge from the Covid-19 pancjemic. Those objectives are focussed under five slralegi¢ heading$.' Maintain a strategic relationship with commissioners Efflcloncy Improvoment Improved managom•nt pro¢esso8 and ¢ommunl¢atlon GrovAh Improv•d 8ervl¢è d•llvory The availabilty of surtable high-qualty accommodation remains a challenge and Bethphage will seek to invest fvrther in suitable propety as the opportunity arises. A memhe.r nf the. piihlir rnmme.nted nn .srf)riHI media that- I think you do an amazingN sometlmes unrecognised mle-. MTibel ul Ilie publiL 2020 Page 10
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 A¢hlovem•nts and perfomianc• 1contlnu1 Financial review a. Ov8rvi•w The Low Pay Commission recommendation. in its port 'The National Liwng Wage beyond 2020,. sets a largel of a National Living Wage at 66.7% 01 the median hourty earnings. This. combined wth the ongoing limitations of available public funding continue to necessitate carefvl stewardship of our ¢haritable re$ource$. Co$t$ have also increased as a result ol an increase in employer contributsons towards employee pension schemes. In 2019120. none of our commissioners were able to match the 4.9°h increase in the national living wage and the same exces5 of c05t pressure over increased funding is expected lo continue. In 2021122 the National Minimum Wage increase is 2.20h. However. for the work our frontline stsff do in supporting vulnerable adults with significant health and social care needs. we believe il is insuffi¢ienl to pay people wth the responsibilits'es expeded ol them the NMW. Therefore, our intention 1$ to increase pay for all support workers by a minimum of 3.2% in 2021-22. We continue lo bllance the competing priorities of. Competition with sustainability Price with quality Provider of choice wth employer of ¢hoice. In February 2019, Unison was granted permission by the Supreme Court for an appeal against the Court of Appeal judgment in respect of payments for staff undertaking 'sleep in" duties. That appeal was dismissed by the Supreme Court in a decision that was hande<J down on 19 March 2021. Although the decision removes any possible liability for historic backpay of vrages. rt presents provi¢Jers and commissioners with the difficulty of how to pay for sleep in shifts going loard. Our largest commissioner has indicated that they do not wish to destabilise the care secior workforce and do not envisage making any changes in payment arrangement5 until April 2022. In the meantsme, they intend consuking with providers on the best route forward. Although the Trustees believed that any award of backpay created by the Supreme Court upholding the appeal was the responsibility of the Govemmenl. it delemined in 2018 that a substantial provision should be Created over multiple years in order to meet a liabilty which rt estimated at the time could approach £1million. This decision was based on the risk that the charity would in the first instance be liable for any payments to staff and would only be able lo make a claim to recover those amounts retrospectively. The dismissal of the appeal enable5 the release ol that sub5tsnli81 multpyear provision and resu115 in a Surplus for the year of £760,650 12020." £252,927. which was prior lo the off of £57.500 lats'n9 lo unrecoverable VAT on the purchase of the Head Office building}. The undertying trading for the year was very significandy affected by increased costs of working for example PPE, IT equipment etc. and by support hours provided - particularfy in our Day Services. In addition, significant staff shortage5 and Increased costs occurred as staff members were forced lo self-i501ale and the availabilty of temporary agency stsff was scarce. As well as thanking our staff throughout the organisab'on who rose lo these challenges. we would also like lo thank our Commissioners for their support during the year. Their approach in providing grants to support increased infection control measures and continuing existing payment schedules for services has ensured that the Charity has been able to focus on delivering support to extremely vulnerable people in what have been extremely challenging CircumstanS. The Trustees are particulady thankful for the efforts of the senior management of Bethphage prepared the Charity to deal with the Covid-19 pandemic during the year. In the coming year the Trustees expect that many of the increased costs of workn'ng will remain e.g. costs of tests'ng, PPE, staff sew-isolations etc. The focus of the first stage of the four-year strategic plan is designed to ensure thal the organisation is able to deal with these challenges. Page 11
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Flnanclal r•vlow Icontlnuedl b. Going Concern After making appropriate enquiries. the Trustees have a reasonable expectation that Bethphage has adequate resources to continue in operational existence for the foreseeable fvture. For this reason they continue to adopt the going concern basis in preparing the financial statements. c. Rg$orve$ Poll¢y The Trustees have considered the operational environment and the opportunities and threats lo the organisalion in lenns of development, ¢onlra¢tual variatsons. tendering processe$. and competitor activity. The Trustees, Reserves Policy balance$ levels of risk. the liabilities of the Charity, and our ability to invest in new service development. At the year-end we held tree reserves of £1,494,87312020.' £803,792) applied for the purposes of day to day working capital, which is sufficient working capital for our needs takin9 into consideration the payment terms of our conlrads and foreseeable nsks. Given the uncertainty. the Trustees cOnser that their prudenl approach to the holding of free reserves lo be appropriate for the scale ol the risks encountered. d. Prlnclpal fundlng $ouf¢•8 The vast majority of our funding during the year came from slatutory sources with the following local authorities commissioning services.. Birmingham City Council, Shropshire Council, Telford & Wrekin Council, Wa15all Council, and Wolverhampton City Council. Income comes in the form of block grants, individual service contracts, supported living lunds. and svpport purchase<l through Individual Budgets and Direct Payments. A small amount of income comes from privale fvnding. We renISe the pressures that these key stakeholders must operate under and strive to make the working relationships as cost effective and efficient as possible. With the increasing limitations of local aulhorrty funding. we are also now considering other voluntary grants, fund raising opportunities. and the role ol volvnleers. The increase in our day service Operations prior lo the pandemic has been severely curtailed during the year. We are grateful for the supp)rt of our Commissioners which will enable day services lo fully resume once widilions pemrt. Page 12
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Flnan¢lal r•vlow Icontlnuedl •. Investment Policy Having regard to the requirement to maintain sufficient reserves and cash balances to cover potenb'al variations in cash flow, surplus cash balances are placed on deposrt wth our bankers. As part of the Strategic Plan 2020 2024 the Trustees intend to invesl in the ovmership of residential property relevant to the charity's activities. During the year Bethphage Invested and completed works in a new Head Office facility to provide not only higher quality accessible office space, bul also to provide facilities for meeting5 and training for both staff and people we support after the pandemic. The Head Office investment will substsnlially reduce annual expendrture on rental costs. Bethphage's investment in property combines Ihe purpose of achieving a relum on our resetves rith investing in and providing support and resour¢e$ to reduce the wsts ol meeting our charitable objectives. A key principle of our investment in residential propety is that the lenants should be able to choose who provides their support services, irrespective of vtho ultimately ovms the property. The need to ensure adequate working capital for operab'ons and grovhh together with the desire to generate Tetums from positive cash balances, whilst minimising risk lo capital. Is kept under review. A social worker rcportcd that." "A parent said that without Bethphage help and support thmiighniit the. lor.kdown they woijld not he. able to have continued.- The parent had been shielding and had no lamily locally who could help. Social Jervice3 - 2020 Structur•. gov•rnan¢e and manag•m•nt *. COnstituon Belhphage is a charitable company limrted by guarantee. incorporated on 26 September 1994. and registered as a charity on 4 May 1995. In the evenl of the MpanY being wound up. members are iequired lo ¢onlribule an amount not exceeding £1. Page 13
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Structur•. gov•rnance and manag•m•nt l¢ontInu) b. Recruitment and appointment of TnteeS New Trustees are re¢nJited through open pr(eSSeS le.g. advertisements) or by invitation. Applicants are required to meet the people we support. staff and Trustees and demonstrate how their motivation. skills, and experience match the culture, needs and practice ol the charity. This process was modified during the pandemic with meetings wth stsff and Trustees occumng online and visrts lo meet service users postponed until it is safe lo do so. Under the requirements of the Memorandum and Articles of Assoaation one third of the members of the Board ITru$teesl retire an¢J may offer themselves for re-election at each AGM. In appointing Trustees Belhpha9e maintains a mix of skills on the Board, includin9 financial, legal, human resources, 51ralegic, markebng and health and Social care management. As we continue lo grow or diversify, the Board will review. al least annually. its skills mix and seek additional Trustees when il identifies gaps. We are cUrrenY seeking lo recruit an a¢Jdilional Trustee with a legal or accountancy background. Whilst appointment on merit is our primary concern, we a also keen to ensure we are repre$entalive of the cgmmunities in which we operate. Our gender balance is satisfactory. and whilst under representative of younger people and people from black, Asian and minority ethnic communities it is largely representatsve of the workforce and service users. c. Indu¢tSon and tralnSng of Twstges New Truglees are provided a tour of our services. vthen safe to do so. in order lo understand MO fully the operations of the organisalion. They are also invrted and encouraged lo attend a series of short inlroduclory sessions wth the Chair, other Truslees and senior managers lo familiarise themselves wth the Charity and the context wthin which we operate. In addition, various Charity Commission publications including the Commission's guide 'lhè Essential Truylee" are dislnbuled lo all new Trustees. Trustees also Ceive the bimonthly magazine 'Governance & Leadership and Trustees are expected to devote lime lo attend briefings by our auditois and other chanty specialists. The Board also receives regular presentations by Bethphage managers and other experts in the sector. d. Pay policy for senior staff The pay of the EMT is reviewed annualty and norrnally increased in accordance wth average eamings. In 2019120 an extensive pay VIeW exercise was conducted by extemal consuttanls to ensure that pay al all levels of the organisalion was in line th current market expectslions for the job ¢ontenl, spOnSIbl11t1e$. and geographic location of the place of work. A further review wll be undertaken in 2021122. Page 14
BETHPHAGE
IA Company Limited by Guarantse)
TRUSTEES. REPORT ICONTINUEDI
FOR THE YEAR ENDED 31 klARCH 2021
Structur•. gov•rnance and manag•m•nt lcontlnu
•. Decision making
The Trustee Board meets quarterfy and is responsible for the strategic direction, financial viability. compliance,
risk management, and governance of Bethphage. Seni¢y managers induding the Chiet Exe¢uUve Officer ICEOI
and EMT also attend for the majority of most meetings. but do not have voting rights.
A scheme of delegation is in place and day to day responsibilty for the provision of Services rests with the CEO
along with the EMT comprising Heads of Operations. Finance and Human Resources IHRI and the Finance,
Service Development and Quality Managers all of whom attend Board meetings.
The Trustees have adopted the Charity Commission Govemance Code and used rt to review their perforniance.
Irena Sobolewska and Derek Lum have served as Trustees since 2001 and 2002 respectively. VVhi151 the Board
are very aware of the need lo ensure that il does renew itself over lime, and takes steps lo do yo, il is also
cognisanl of the need to ensure that appropriately skilled people are both available and willing to serve as
Trustees. As each long serving Tfuslee retires by rolalion. Ihe Board considers whether rt is in the interests of
Belhphage lo invite them lo offer Ihemselves for reelection lo the Board. The Bgard would not hesitate lo
recommend to the members that a Trustee should not be reappointed if it believed that reappointrnent was not in
the interests of Bethphage. The current composltion of the Board provides a good blend of conb'nuity, freshness.
enthusiasm and energy.
f. Rlsk managoment
The Trustees have conducte
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Structur•. gov•rnance and manag•m•nt lcontlnu g. Remuneration equality The Equality Act 2010 (Gender Pay Gap Infomiationl Regulations 2017 came into force on 6th April 2017. These regulations require employers vAth 250 or more employees to publish statutory calculations every year showing how large the pay gap is betsveen their male and female employees. The requirement applies to Bethphage. The figures musl be calculated using a specrfic reference dale each ye8r, called the 'snapshol dale,. The snapshot date is 5 April for businesses and chanties and the dats musl be published wrthin a year of the snapshot dale. Belhphage published its first gender pay gap report on 4th April 2018 and its latest report on 23rd March 2021. The regulations require employers lo calculate specified informatson and publish the infomialion on the employer's web$rte and on a designated govemmenl websrte at V.gov.uk}gÈnderpay9ap. The Gender Pay Gap differs from equal pay.. Equal Pay- Belhphage pays the same rates to men and vK*men vlho cary out Ihe same jobs in accordance with the law. The gender pay gap shows the dffterers in average pay for men and women. A number of factors influence thls Including seniority and the number of hours worked. The Gender Pay Results for 5 April 2020.. Based upon the snapshot date. 8ethphage does not have a gender pay gap. Our frmale and male colleagues were paid the same on the snapshot date. Page 16
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Plans for futur• perlods Partnership5. key alliances and regulatory bodies Bethphage is a registered provider wth the CQC. The CQC requirements place a higlFlevel duty of care upon providers to ensure that setvices are delivered against benchmarked standards. We work within the appropriate regulations and legislation and align our internal qualrty processes, policies and procedures wth them. We recognise the importance of strategic and operats.onal partnerships in the communitie5 in which we operate. We have played an active role in leVant local provider forums across Shropshire, Telford. and the Wesl Midlands and in contributing to n*ional iniliats'ves. The people who use our services are our most important stakeholder and this is reflected in a range of initiatives across the organisation including.. User led Quality Assurance through the Q Team Checkers (now independently managed by a local advocacy or9anisalionl Positive Behaviour Support Person Centred Approaches Surveys of the people who use our services, familie5. Staff and managers Annual quality audits lo check and ensure the services we provide continue lo deliver good outcomes for the people we support Management visits and rewews lo check and monitor seryice delivery on a monthly basis Investment in staff development lo $upport $taff through areas of difficulty and to develop them into the best support workers they can be Presentations at the AGM of Directors arKI members. and al our Annual Staff Conference. During the past year the 'in person, elements of these processes have been significanlty reduced or eliminated and, where possible. plaCed by telephone an¢J online meetings. As il becomes safe lo resume in person visits, they wll, where appropriate be re-in$tsted. Momr$hIP We are fortunate to have tsvo organisational members- Mosaic and the Council of Lutheran Churches. Mosaic, the founder member, has played a crucial role in our development. As a leading Service provider in the field of disabilities in the USA, Mosaic has extensive experience and Tesources that we have been able lo call uptsn. Members attend the AGM and somebmes contribule in been meetings as required. We value the engagement of our members and thank them for another year of valued contribution. The extent of the involvement and support of our corporate members has enabled the Charity to attract and relain Trustees of a high calibre. professional expertise and experience necessary to enable the organisation lo develop and grow successfvlly and consbslently. Page 17
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Engaggm•nt wlth •mploy••$ and omploym•nt of th• dlsabled Employees have been consutted on issues of concem to them by means of regular consutialive committee and stsff meetings and have been kept infomed on specrfic matters diredly by management. We carry out exil interviews for all staff leaving the organisation and have adopted a procedure of upward feedback for senior management and the Trustee$. We have implemented and regulady review a number of detailed policies in relats'on to all aspects of personnel matters including.. Equal opportunities policy Volunteers, policy Health & safety policy In accordance with the Charity's equal opportunrties policy, Ihe Charity has knngeslablished fair employment practices in the recruilmenl, selecb"on. tenti0ft an¢J training of disabled staff. Statsment of Trustees. respon$lbllbtle$ The Trustees (who are also the directors of the Charity for ihe purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance wlh applicable law and United Kingdom Accounting Standards Iunrted Kingdom Generally Attepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial . Under company law the Trustees musl not approve the financial ststements unless they are satisfied that they give a true and fair view of the slate of affairs of the Charity and of rts Incoming resources and application of resources, including Ils income and expenditure, for that period. In preparing these financial stslements, the Trustees are required to.. select suitable accounting policies and then apply them consistently.. observe the methods and principles of the Charities SORP IFRS 1021". make judgments and accountsng estimates that are reasonable and pnjdent., stsle whether applicable UK Accounting Stsndards IFRS 1021 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 il is inappropriate lo presume that the Charity wll continue in busine88. The Trustees are responsible for keeping adequate accounting records that are suffiaent to show and explain the Charity'5 transactions and disclose wth reasonable accuracy at any time the financial p0511ion of the Chanly and enable them lo ensu that the financial slalemenls Comply vrth the Companies Act 2006. They are also sponsible for safeguarding the assets of the Charrty an¢J hence lor taking asonable steps for the prevention and detection of ftaud and other irregularibes. Disclosure of inforniatlon to audito Each of the persons who are Trustees at the time when this Trustees. Report is approved has confirmed that.. so far as that Trustee is aware. there is no relevant audit irrformation of vknich the Charitys auditors are unaware, and that Trustee has taken all the steps Ihat ought to have been tsken as a Trustee in order to be aware of any relevant audrt information and to estsbli5h that the Charrtls auditors are aware of that infomalion. Page 18
BETHPHAGE IA Company Limited by Guarantse) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 klARCH 2021 Audltors The auditors, WR Partners, have indicated their willingness lo continue in office. The designated Tru51ees will propose a motion reappointing the auditors al a meebng of the Members. Approved by order of the members of the board of Trustees arKI signed on their behalf by.. Dargk Lum Chair of Trustees Dale.. 21 September 2021 Page 19
BETHPHAGE IA Company Limited by Guarantse) INDEPENDENT AUOITORS. REPORT TO THE MEMBERS OF BETHPHAGE Oplnlon We have audited the financial ststements of Bethphage (the 'charitable company'l for the year ended 31 March 2021 which comprise the Slalemenl of Financial Activities. the Balance Sheet, the Statement of Cash Flows and the related notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in their pparatIOn is applicable law and United lfjngdom Accounting Standards. including Finanaal Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounts'ng Practice). In our opinion the financial stslements.. give a true and fair view of the slate of the charitable eompany's affairs as al 31 March 2021 and of ils incoming re$our¢e$ and appli110 of resources. induding its InMe and expenditure for the year then ended., have been properfy prepared in accordance vAlh United Kingdom Generally Accepted Accounb'ng Practice.. and have been prepared in accordance with the requirements of the Charitses Act 2011. Bas18 for op5nlon We conducted our audit in accordance wth Inlemalional Standards on Audiling IUKI IISAS IUKII and applicable law. Our respon$ibilitie$ under those Standards are fvrther deritsed in the Auditors, re$pon$ibilitie$ for the audit of the financial statements section of our report. We are independent of the charrtable company in accordance with the ethical requirements that are relevant to our audrt ol the financial statements in the United Kingdom, including the Finanual Reporting Council's Ethical Stsndard. and we have fulfilled our other ethical responsibilities in accordance wlh these requirements. We believe that the audit evidence Yo have obtained 18 sufficient and appropriate to provide a basis for our opinion. Conclusions rolating to going c¢)ncorn We have nothing to report in respect of the following matters in relation to which the ISAS IUKI require us lo report to you where.. the Trustees, use of the going nCern ba$1$ of aUntyn9 in the preparation of the financial ststements 1$ not appropriate., or the Trustees have not disdosed in the financial slatemenls any identsfied material uncertainties that may cast Significant doubt aboLrt the charitable company's ability lo continue lo adopt the going concern basis of a¢¢ounling for a period of at least twefve months from the date vthen the financial statements are authorised for issue. Page 20
BETHPHAGE IA Company Limited by Guarantse) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BETHPHAGE ICONTINUEDI Other Infomiatlon The Trustees are responsible for the other infomiation. The other information comprises the information included in the Annual Report, other than the financial stslements and our Audrtots. Report theretsn. Our opinion on the financial statements does not cover the other infomiation and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial stslements. our Tesponsibility is lo read the other information and, In doing so, consider whether the other infom)ation is materially inconsistent wth the financial statements or our knowledge obtained in the audit or othermse appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, 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 malenal mi35talement of this other information, WÈ arè required to report that fact. We have nothing to report in this regard. Mattors on vthlch wo aro roqulred to report by exceptlon We have nothing to report in respect of the following matters vA)ere the Charities (Accounts and Reports) Regulations 2008 requires us lo report to you if. In ¢)ur opinion.. the information given in Ihe Trustees. Re1 is inconsistent in any material respect with the financial stslements.. or sufficient accounting records have not been kept.. or the financial slatemenls are not in agement wlh the accounting records and retums.. or we have not received all the information and explanations we require for our audit. R•$ponsibilities of trusts A5 explained more fully in the Trustees. Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purpose5 of company lawl are responsible for the preparabon of the financial slalemenls and for being satisfied that they give a true and fair wew. and for such internal control as the Trustees delemiine is necessary lo enable the preparation of financial stslements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees a sponsible for assessing the charitable company's ability to continue as a going Concern. disclosing. as applicable. matters lated lo going concem and using the going Concern basis of accounting unless the Trustees erther intend to liquidate the ¢haritable Company or to cease operations, or have no realistic altemative bLrt to do so. Page 21
BETHPHAGE IA Company Limited by Guarantse) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BETHPHAGE ICONTINUEDI Audllors. re$pon$lbllltl•s for tho audlt of th• finan¢lal $latsm¢nts We have been appointed as auditor under secb.on 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or hawng effect theunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. vthether due to fraud or error, and to issue an Auditors. Report that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audrt conducted In accordance with ISAS IUKI 11 atways dele¢t a material misstslement when rt exists. Misslalemenls can arise from fraud or error and are considefed material rf, individualty or in the aggregate. they could reasonably be expected lo influen¢e Ihe enoMiC decisions of users taken on the basis of the$e financial $tslemenls. Irregularities, including fraud, are instances of non•compliance law5 and regulations. We design procedures in line wlh our responsibilities. outlined above. lo detect malenal misslalemenls In respect of irregularities, including fraud. The extent lo vthich our procedures are capable of delecling irregularities. including fraud is detailed below., We reviewed the susceptibility of the Charity's financial statements to material mi55tatement and identified the principal risks, implementing a Series of testing procedures lo provide u5 With sufficient comfort 10 155ue our opinion. • We reviewed the Charty's regulatory enwronment to ensure we could conclude thal it had acted in accordance th the framevK*rk relevant lo Ihe Charity and it$ environment and identsfy any in$tsnce$ of nonrfompliance. We also asse55ed the Charity's internal control procedures to ensure we could appropriately scrub'ni5e these controls and estsblish whether our understsnding of the control environment was sufficient to supplement our additional lesling proce<lures. . The engagement team consisted of a team that the engagement partner believes is equipped with the relevant level of technical and Charity awareness to carry out our work lo the required standard. A further descnplion of our responsibilities for the audit of the financial stslemenls is located on the Fin8neial Reports'ng Council's websrte al". vthv.frc.or .ukJaudrtorss sibililies. This deseriptson foms part of our Auditors, Report. Page 22
BETHPHAGE IA Company Limited by Guarantse) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BETHPHAGE ICONTINUEDI Uso of our r•port This report is made solely lo the charitable company's trustees, as a body, in accordance wth Part 4 of the Charities IAc¢ounls and Reports) Regulations 2008. Our audit work has been undertaken so that we might $18le to the Charitable company's trustees those matters we a required lo slate lo them in an Auditors, Report and for no other purpose. To the fullest extent pecmitted by law. ¥%e do not a¢¢ept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. WR Partners Chartered Accountsnls Slalulory Auditors Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG 20fv1 Dale.. WR Partners are eligible lo act 89 audrtors in terms of section 1212 of the Companies Act 2006. Page 23
BETHPHAGE IA Company Limited by Guarantse) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2021 Unrnstrictsd funds 2021 Rostrictsd funds 2021 Total funds 2021 Total funds 2020 Note Income from: Donations and legacies Charitable acliwbes Investments 310,09S 8.674.206 4.562 48,015 358,110 .674,206 4,S62 24,297 7, 727,507 6,934 Total Incomo Exp8nditure on: Raising funds Charitable acliwtses 8,988.863 48,015 9.036,878 7, 758, 738 11.763 11,763 8.264,465 6,309 7,499,502 8,264.465 Total oxpondlture 8,264,465 11,763 8.276,228 7,505,811 Not Incom• 724.398 36,252 760,650 252,92T Transfers befven funds 16 11,138) 1,138 Not movom8nt Sn funds boforn oth•r rgcognls8d galnslllossosl Other rècognised gainslllosses): Exceptional rtem fixed asset impaiment 723.260 37,390 760,650 252,92T (57,500? 723,260 37.390 Net movement In funds Re¢on¢lllatlon of lunds: Total funds brought forward Nel movement in funds 760,650 795,427 16 2,12S,967 723,260 14.524 37,390 2.140,491 760,650 1,945,064 195,427 2,849,227 51,914 2.901,141 2, 140.491 Total funds carried forward The Statement of Financial Activities indudes all gains and losses recognised in the year. The notes on pages 28 to 44 form part of these financial statements. Page 24
BETHPHAGE IA Company Limited by Guarants¢) REGISTERED NUMBER: 02971171 BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Mole Flx•d assèts Tangible assets 13 754,3S4 822, 175 754.354 822, 175 Current a$sots Debtors Cash al bank and in hand 14 710,815 3.545,886 1, 155, 713 2. 115,907 4,256,701 3,271.620 Creditors.. amounts fallin9 due within one year 15 12.109,9141 (1,953,304) Not current assets 2,146,787 1,318,316 Total not assots 2,901,141 2, 140,491 Page 25
BETHPHAGE IA Company Limited by Guarants¢) REGISTERED NUMBER: 02971171 BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021 2021 2020 Mole Charlty funds Reslricled ftjnds Unrestricted funds 16 16 51,914 2,849.227 14.524 2, 125,967 Total funds 2,901,141 2, 140,491 The entity was enlided lo exemption from audit under section 477 of the Companies Act 2006. The members have not required the enlty lo oblain an audr( for the year in question in accordance wlh secb'on 476 of the Companies Act 2006. However, an audit is required in accordance wth section 144 of the Charities Act 2011. The Trustees acknovAedge their responsibilities for ¢omplying ¥th the requiremenls of the Act with respect lo accounting records and preparation of financial Stslements. The financill slalemenls h*ve been prepared in accordance wlh Ihe provisions applicable lo enlilieg subject lo the small companies regime. The financial slalemenls were approved and authorised for issue by the Trustees and signed on their behalf by., Der&k Lum Chair of Trustees Date.. 21 September 2021 The notes on pages 28 10 44 fom part of these financial statements. Page 26
BETHPHAGE IA Company Limited by Guarantse) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Noto Cash flow from operating activities Nel cash used in operating activitie5 18 1,460.592 150,574 Cash flovpa from investing activiti8s Dividends, interests and rents from investrnenls Purchase ol tangible fixed assets Proceeds from sale of investments 4.562 6,934 {35.1751 (307.285) 317 Not cash usod In Invostlng actbvitl•8 130.6131 1300.0341 Chang8 in cash and cash equivalents in thé year Cash and cash equivalents al the beginning of the year 1,429,979 2,115,907 1149,4601 2,265,367 Cash and cash •qulvalgnts at thg •nd of th• year 19 3,S45,886 2, 115,907 The notes on pages 28 to 44 fomi part of these financial statements Page 27
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 General inforniation The Charity is a company limited by guaranlee. incorporated in England. The add$$ of f(s registered office is included wthin the reference and administrab've details. The members of the company are the Council of Lutheran Churches and Mosaic. In the event of the Charity being wound up. the liability in respect of the guarantee is limited lo £1 per member of the Charity. Accounting policie8 2.1 Basls of proparatlon of financlal stst•monts The financial statements have been prepared in accordance with the Charities SORP IFRS 1021- Accounting and Repo.n9 by Charities.. Siatement of Recommended Practice applicable to charities preparing their accounts in ac¢ordan¢e wlh the second edibon Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (October 20191. the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 and Uie Companies Act 2006. 8ethphage meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwse stated in the relevant accounting policy. 2.2 Golng ¢onc•m After making appropriate enquiries. the Trustees have a reasonable expectatson that the Charity has adequate resources to continue in operational existence for the forseeable fvture. For this reason they continue lo adopt the going concern basis in preparing the financial statements as explained in the Trustees. Report. The Trustees have also assessed the potential impact on the future operations of the Charity wlh regard lo the Covid-19 outbreak. The Charity is considered lo be well positioned given the ¢urrenl environment wlh no impact on Ihe going ¢on¢em ba$1$ of the financial statements. Page 28
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.3 Income All income is recognised once the Charity has enlrfement to the income. il is probable that the income wll be received and the amount of income receivable be measured lIablY. The Charity's activity is supporting people disabilitses. Grants are Included in the Statement of Finantyal Acb"vitses on a receivable basis. The balance of income received for specific purposes bul not expended during the period is shown in the relevant funds on the Balance Sheet. Where InMe is received in advance of enlillemenl of receipt. ils recognition 1$ deferred and included in Creditors as deferre(l inwme. Where entitlement o¢¢ur$ before income is received, the income is accrued. Donated services or fa¢ililies are recognised when the Charity has control over the item. any conditions associated th the donated item have been met. the receipt of economic benefit from the use of the Charty of the item is probable and Ihat economic benefit Can be measured reliably. On receipt, donated professional services and facilth'es are reco9nised on the basis of the value of the gift lo the Charity vthi¢h Is the amount il would have been willing lo pay lo obtain services or faeililies of equivalent economic benefit on the open market". a eorresponding amount is then rec¢gnised in expendrture in the period of receipt. The volunteers, time is not regnised in the accoun1$. Refer lo the Trustees Report for more information of their general contn'bubon. Page 29
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.4 Expenditure Expenditure is recognised once there is a legal or Constructive obligation lo transfer economic benefit lo a third paty. it is probable that a transfer of economic benefits VAII be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each ath'vity. Direct costs attributable to a single activity are allocated directly lo that activity. Shared costs which conlnbule lo more than one activity and support costs which are not attributable lo a single activity afe apportioned between those activities on a basis consistent with the use of resources. Central stsff ¢osl$ are allocated on Ihe basis of time spent. and depreciab'on charges allocated on the portion of the a$set'S LBe. Support Costs are those costs incurred dire¢Uy in support of expenditure on the objects ol the Charity and in¢lude project management carried out at Headquarters. Govemance costs are those incurred in connection vAth adminislralion of the Charity and compliance wrth constilulional and slalulory requirements. Costs of generating funds are costs incurred in attracting voluntary income, and in those incurred in trading activities that raise funds. Charitsble aclivibes and Govemance costs a costs incurred on the Charity's operations. including support Costs and ¢o$ts relats'ng to the goveman¢e of the Charity apportioned to charitable activities. 2.5 Gov•mm•nt grants Govemmenl grants relating lo tangible fixed assets are Iated as deferred income and released lo the Stslement of Financial Activities over the expected useftjl lives ol the assets concemed. Other grants are credited lo the Statement of Financial A¢tsvitie$ as Ihe related expenditure is incurred. 2.6 Interost rncelvabl8 Interest on funds held on deposrt is included when receivable and the amount can be measured reliably by the Chanty." this is normally upon notification of the interest paid or payable by the institution wrth whom the fund$ are depo$f(ed. 2.7 Tangiblg fix8d ass8ts and dgpr8ciation A review for impaimienl of a fixed asset is carried out rf events or changes in cireumslances indicate that the carryng value of any fixed asset may not be ¢0¥erable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impaiments. Impairment losses are recognised in the Statement of Finanaal Activities incorporats'ng Income and Expenditure Account. Page 30
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.7 Tangible fixed assets and depreciation {continued Tangible fixed assets are carried at cost. net of depre¢iion and any provision for impaimient. Depreciation is Charged so as to allo¢ate the cost of tsngible fixed assets less their residual value over their estimated usefvl lives, using the straight4ine method. Deprecaation is provided on the following bases.. Freehold propety Long-lerm leasehold propety Motor vehicles Fixtures and fitb'ngs 2% slraighl-line Slraight-line over the life of Ihe lease 3 years straight4ine 3 to 10 years straight-line Land is not depreciated. Components of the freehold properties including balhr¢)oms and kitchens have been depreciated from 1 April 2018 on a 10% straight line ba$i$. Assets relating lo contracts are depreciated over the length of the conlTa¢ls where the asset belongs lo the conlra¢t and cannot be sold or disposed of by Belhphage to realise any residual value. 2.8 Oebtor¥ Trade and other debtors a recognised at ihe settlement amount after any trade discount offered. Prepaymenlg are valued 41 the amount prepaid nel of any trade discounts due. 2.9 Ca•h at bank and In hand Cash at bank and in hand includes cash and short-term hwhty liquid investments with a short maturity of three months or less from the date of acquisits'on or opening of the deposit or similar account. 2.10 Liabilitl•s and provl$ions Liabilities are rewnised when there is an obligation at the Balance Sheet de as a re$ult ol a pa$1 event, it is probable that a transfer of economic benefil will be required in settlement, and the arnount of the settlemerbt can be estimated reliably. Liabilities a Tecognised at the amount that the Chartty anticipates il wll pay to settle the debt or the amount il has weived as advanced payments for the goods or services it musl provide. Provisions are measured at the best estimate of Ihe amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that rellects the risks specific to the liability. The ur)winding of the discount is re¢ognise(l in the Statement of Financial A¢tivilies as a finance cost. 2.11 Flnanclal instrumonts The ChaTity only has financial assets and financial liabilrtie5 of a kind that qualify as basic financial instruments. Basic financial instrumen15 are initially recognised at transaction value and Subsequently measureil at their settlement value wrth the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Page 31
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.12 Operating leases Rentals paid under operatsng leases are charged lo the Slalemenl of Finanaal Activib'es on a slraighl line basis over the lease lemi. 2.13 Pensions The Charity operates a defined ntribU"0n pension heme and the pension charge represents the amounts payable by the Charity to the fund in SpeCt of the year. The Charity also contributes to the Shropshire LGPS pension scheme for qualifying employees. This is treated as a defined contribution scheme as the assets and liabilities of the scheme remain with Shrop5hire Council and Belhphage are only liable for the conlribulions.The employer eontribulieny are sel by Shropshire LGPS. 2.14 Fund accounting General fvnds are unrestricted funds which are available lor use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purptsses. Designated fvnds comprise unrestricled fvnds Ihal have been set aside by the Trustees for particular purposes. The aim and use of eath designate(l fvn(l is sel out in the note$ lo the finan¢ial statements. Restricted funds are funds vh)ich are to be used in accordance wlh specific restrictions imposed by donors or vh)Ich have been raise<l by the Charrty for particular purposes. The costs of raising and administering such fvnd$ are charged against the $pe¢ific fvnd. The aim and use of each reslricled fund is set out in the notes to the financial statements. Crltlcal a¢¢ounting •$tlmats$ and areas of judgment Estimates and judgments are continually evalualed and are based on historical experience and other factors, including expectab'ons of future events that are believed to be reasonable under the circumstances. Critical accounting eslimales and assumpb"ons- The Charity makes estimates and assumptsons conceming the future. The re$ulb'ng accounting estimates and assumptions will, by definth'on, seldom equal the related actual results. Page 32
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Income from donations and legacies Unrnstricl R•strict8d funds nds 2021 2021 Totsl funds 2021 Total runds 2020 Donations Other grant InMe 13,015 35,000 18.821 339,289 24,297 304,289 Totsl 2021 310.095 48.015 358.110 24,297 Total 2020 18,381 5,916 24,297 Income from charftsble a¢tlvltles UnreBtrSctod funds 2021 Total funds 2021 Tot81 funds 2020 Support Services Sleep in provision 8,287,893 386,313 8,287,893 386.313 7, 727,50T Total 2021 8,674,206 8,674,206 7, 727,507 rol812020 7.727.507 7, 727.507 Page 33
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Investment income Unrestrict8d nds 2021 Totsl funds 2021 Total runds 2020 Investment income 4,562 4.562 6,934 Total 2021 4.562 4.562 6,934 Total 2020 6,934 6,934 Expendlture ¢n ralslng funds Costs of rnlslng voluntary Incom8 Restrlctgd fvnds 2021 Total fund$ 2021 Total funds 2020 Expenditure on raising voluntary income 11,763 11.763 6,309 Total 2021 11,763 11.763 6,309 Total 2020 6.309 6,309 Page 34
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Analysis of expenditure on charitable activities Summary by fund typ• Unrestricted fund¥ 2021 Total funds 2021 Total funds 2020 Support Services 8,264,465 8,264.465 7,499,502 Total 2021 8.264,465 8,264,465 7,499.502 Total 2020 7.499.502 7,499.502 Analysls of gxpondlturg by actbvltlfj$ A¢tivitlts undertaken dlr*¢tty 2021 Support ¢o$ts 2021 Total fund$ 2021 Total funds 2020 Support Services 7.477,826 786,639 8,264.465 7,499,502 Total 2021 7.477,826 786,639 8,264,465 7,499,502 Total 2020 6.688.885 810.617 7,499,502 Page 35
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Analysis of expenditure by activities Icontinuedl Analy$l$ of dlr•ct costs Support Services 2021 Total funds 2021 Total funds 2020 Staff costs Service user and A¢¢ommodalion costs Administrabon and Olher Staff costs 7.039,087 330.283 108,456 7,039,087 330,283 108,456 6,323,521 232.657 132, 707 Total 2021 7.477.826 7,477,826 6,688,885 Tol812020 6,688,885 6,688,885 Analy$l$ of Support ¢o#ts Support S•r¥ic88 2021 Totsl funds 2021 Total funds 2020 Staff costs Other Support costs Govemance costs 348.310 419,699 18,630 348.310 419,699 18.630 365.620 418,309 26,688 Total 2021 786,639 786.639 810,617 Total 2020 810,617 810,617 10. Audltors. romun•rdtlon 2021 2020 Fees payable lo the Charivs au(Jitor for the audit of the Charitys annual accounts 7,315 7, 160 Fees payable lo the Charivs auditor in respect of.. pparatIon of the Charrty's annual accounts 1.260 1,275 Page 36
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 11. Staff costs 2021 2020 Wages and salaries Social security cosls Contribution to defined contribLrtion pension schemes 6,745.024 470,197 172.176 6, 108,564 409.526 171,051 7,387.397 6,689, 147 During the year, £22.000 has been paid out in redundancies12020". £Nill. The average number of persons employed by the Charity during the year was a$ follows.. 2021 No. 2020 No. 320 308 No employee received remuneration amounling lo more than £60,000 in either year. During the year key management personnel received total remuneration and benefits of £333,35212020'. £288,579). 12. Trte*s, remunèration and •xpen$es During the year, no Trustees receive<l any MUneration or other benefits (2020- £NIL). During the year ended 31 March 2021. no Trustee expenses have been incurred (2020- £1,462, made payable to 3 Twstees). Page 37
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 13. Tangible fixed assets Long4erni leasehold property Freehold property Motor Fixtures and vehicles fittings Total Cost or valuation Al 1 Apnl 2020 Additions Disposals 757.895 13.065 64.043 201,739 35,175 16611 1,036.742 35.175 16611 Al 31 Marth 2021 757,895 13.065 64.043 236,253 1,071.256 D•preclatlon Al 1 Apnl 2020 Charge for the year On disposal$ Impairment char9e 26.454 15.$13 12.920 145 34.662 8.OSO 140,531 29,288 16611 214.567 52.996 16611 50.000 50,000 Al 31 March 2021 91.967 13.065 42.712 169,158 316.902 Net book valuè At 31 March 2021 665,928 21,331 67,095 754,3S4 At 31 March 2020 731,441 145 29,381 61,208 822, 175 14. Dobtors 2021 2020 Due within one year Trade debtors Other debtors 449.259 167,881 93,675 975, 104 83.559 97,050 Prepayments and accrued income 710.815 1, 155, 713 Page 38
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 1S. Creditors: Amounts falling due within one year 2021 2020 Trade credrtors Other tsxaty'on and social security Other creditors Accruals 109.834 220,293 1,408,917 195.350 175.520 149,326 203.220 1,076,017 60,877 463,864 Deferred income 2,109,914 1,953,304 Included wthin accnjals and deferred income are the followng deferred income balances which relate to contracts where. due lo changes in the service needs. we have sel aside funds for future use. 2021 2020 Deferred income at 1 April 2020 Resources deferred during the year Amounts released from previous periods 463.864 175,520 {463,8641 465,379 463,864 (465,379) 175.520 463,864 Page 39
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 16. Statement of funds ststem•nt of fund$ - current year Balance at 31 March 2021 Balance at 1 Aprfl 2020 Transfers Inlout Income Expendlture Unrg$tri¢l8d funds D•signatod funds Innovation and Development Fund Infe¢iion Control antj Rapid Testing protection measures 500,000 500.000 100.000 100.000 500,000 100,000 600.000 Ggngral fund¥ General Funds- all fiJnds 1.625,967 8.988,863 18.264.465) {101.1381 2,249.227 Totsl Unre$trf¢ted fund$ 2.125.967 8.988,863 18,264,46S1 11.1381 2,849.227 Rostrfctod funds Restricted Funds- all funds 14,524 48.015 {11,7631 1.138 51.914 Total of fund8 2.140,491 9.036,878 18,276,228) 2,901.141 The Innovation and Development lund is held lo fvnd the purchase of 8 thir¢J home for the people of the Charity." business development and sustainability projects. and in¢ased costs of working due lo Covid- 19 impact. There has been no movement on the designated fund during the year as the designated fund is intended to be carried forward vthilst a search for a suitable propety continues. The Restricted lunds inclLHle funding reteived Inel of expenditure) for specific projects and ongoing project5 such as Club Generation funds. Page 40
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 16. Statement of funds Icontinuedl ststem•nt of fund$ - prlor yoar 8alance at 31 Mah 2020 Balance at l Apni 2079 As stated Income Expendrtu Gains/ (Losses) Unrg$tri¢l8d funds D•signatod funds Innovation and Development Fund 500,000 G•n•ral funds General Funds- all funds 7.430, 147 T,752,822 (7,499.502) f57,500) 1,625,967 Totsl Unrg¥lrf¢tsd fund¥ 1.930.147 7.752.822 17.499.502> (57.500? 2, 125,967 Rostrlctod funds Reslricled Funds- all funds 14J.977 5.976 (6.309? 14,524 Totsl of funds 7.945,064 T.758, T38 (7.505,871) (57,500) 2, 140,497 17. Analys1$ of net asgets bet%s*en lunds Analysls of net assets tIon funds- current year Unrestricted Restricted nds funds 2021 2021 Total funds 2021 Tangible fixed assets Current assets Creditors due within one year 754,354 4,204,787 12.109.914> 754.354 4,256.701 12,109,914 51,914 Totsl 2,849,227 51,914 2,901.141 Page 41
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 17. Analysis of net assets between funds (continued) Analys1$ of n•t assets bètwn funds- prlor year Unrestricted funds 2020 Restricted funds 2020 Total funds 2020 Tangible fixed a$sel$ Current assets Creditors due wrthin one year 822,175 3,257,096 11.953.305) 822. 175 3,271,620 (7,953.305? 14,524 Total 2,125,966 14,524 2, 140,490 18. R•conclllatlon of nèt mov•fflènt In funds to not cash flow from opèrntlng actlvltlas 2021 2020 Nel income for the year {as per Ststemenl of Financial Activth"esl 760.650 252,92T AdJustm8nts for: Write off of irrecoverable VAT on propety purchase Depcia'0n Charges Dividends. interests and rents from investments Decreasellincreasel in debtors Increase in cred((ors Fixed asset impaimient (57,500) 52,879 (6.934) (133, 762) 42,964 52,996 14,5621 444,898 156.610 50.000 Not cash provided by operating activities 1,460,592 750,574 19. Analysis of ¢a$h and ¢ash equivalents 2021 2020 Cash in hand 3,545.886 2, 115,90T Total cash and cash equivalents 3,545,886 2, 115,907 Page 42
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 20. Analysis of changes in net debt At 1 April 2020 Cash flov At 31 March 2021 Cash al bank and in hand 2,115,907 1,429.979 3,545.886 2,115.907 1,429.979 3,545.886 21. PensSon ¢ommltm•nts The Charity operates a defined conlribution pension Scheme. The assets of the scheme are held separately from those of the Chanty and in an independently administered fvnd. The pension cost charge represents contributions payable by the Charity to the fund and amounted lo £172,06312020.. £171,051). Contributions tolalling £63.98712020.. £60,407) were payable lo the fvnd al the balance sheet dale. 22. Op8ratlng lea8• c<xnmltm•nts Al 31 March 2021 the Charity had commitments lo make future minimum lease payments under non- cancellable operating leases as follows.. 2021 2020 Not later than l year Later than 1 year and not later than S years 15.518 30.411 15,516 45,92T 45,927 61,443 The followng lease payments have been recognised as an expense in the Slatement of Finanaal Activitie5'. 2021 2020 Operating lease renta15 15.516 9,346 Page 43
BETHPHAGE IA Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 23. Relatsd party transactions During the financial year Belhphaye acqui seThices tolalling £5.951 12020." £15,138) from Shropshi Partners In Care. At the year end there was a balan¢e of £40012020.. £4081 owng lo Shropshire Partners In Care. Laura Vemon (resigned as Trustee in September 20201 is an employee of Trowers & Hamlins. During the financial year Belhphage acquired services tolalling £6.355 12020" £8,150) from Trowers & Hamlins. Al year end there was £70012020." £6.4451 ov•n9 to Trowecs & Hamlins. All of these transaction$ have been conducted on an ami'$ length basis inder nomial commercial terms. Page 44