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2022-03-31-accounts

Company number: 3136052 Charity number: 1051711

Age UK Hillingdon, Harrow and Brent

Report and financial statements For the year ended 31 March 2022

Age UK Hillingdon, Harrow and Brent

Contents

For the year ended 31 March 2022

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 25 Statement of financial activities (incorporating an income and expenditure account) ................... 29 Balance sheet ............................................................................................................................... 30 Statement of cash flows ................................................................................................................ 31 Notes to the financial statements ................................................................................................. 32

Age UK Hillingdon, Harrow and Brent

Reference and administrative information

For the year ended 31 March 2022

Company number 3136052 Country of incorporation England & Wales Charity number 1051711 Country of registration England & Wales Registered office and operational address 2 Chapel Court 126 Church Road HAYES UB3 2LW

Age UK Hillingdon, Harrow and Brent also trades under the names: Age UK Hillingdon, Age UK Harrow, Age UK Brent and Age UK North West London.

Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Neil Franklin Chair
Roger Calverley Treasurer
Christine Beatty
Tony Burch
Heather Du Pille
Tony Valentine
Hiran Weereratne (resigned 15 August 2022)
Peter Slavid
Carolina Castillo (appointed 26 May 2021)
Ami Kotecha (appointed 26 May 2021, resigned 30 August 2022)
Natasha Spence (appointed 26 May 2021)
Maryam Farooqi (appointed 27 July 2021, resigned 8 February 2022)
Gurpreet Mangat (appointed 27 July 2021, resigned 5 September 2022)
Honorary President The Mayor of Hillingdon
Key management Julian Lloyd Chief Executive & Company Secretary
personnel Hannah Cinamon Director of Resources (until 28 September 2022)
Samantha MacKenzie Director of Resources (from 1 September 2022)
Chris Speakman Director of Finance (until 30 June 2021)
Clare Miles Director of Finance (from 8 November 2021)
Tina Smith Director of Services (Commercial & Retail)
Elizabeth Tack Director of Services (Statutory and Trusts)
Fiona Hill Director of Business Development

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Age UK Hillingdon, Harrow and Brent

Reference and administrative information

For the year ended 31 March 2022

Bankers CAF Bank Ltd, 25 Kings Hill Avenue, West Malling, Kent, ME19 4JO Santander Bank Bridle Road Bootle Merseyside, L30 4GB Solicitors Hunters Law LLP 9 New Square, Lincoln's Inn London WC2A 3QN Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

The trustees present their report and the audited financial statements for the year ended 31 March 2022.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

Our Mission, Vision, Values and Aims

Our Mission

To make later life better in Hillingdon, Harrow and Brent.

Our Vision

To create a community where everyone can love later life.

We want to be seen and acknowledged as:

Our Values

Our Aims

Empowering, Enabling and Supporting

Our aims for the older people in Hillingdon, Harrow and Brent are to:

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Strategic Objectives

To enable us to grow, have a sustainable future and achieve our aims we have set a number of strategic objectives.

These are to:

  1. Provide Information and Advice services to all old people in our area.

  2. Target services and interventions to the greatest need.

  3. To pursue strategic alliances to develop service provision and improve efficiency

  4. Diversify our income.

  5. Promote the work of the charity.

  6. Measure our performance.

  7. Develop, support and value our staff and volunteers.

The five-year strategy set out above was developed and signed off by the board of Trustees and is set to cover the period 2020-2025.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

ACTIVITIES:

1) Information, advice and outreach services

The provision of impartial and free Information and Advice is a core requirement of the Age UK Brand Partnership Agreement and the cornerstone service of Age UK Hillingdon, Harrow and Brent. Funded primarily by the three local authorities, we provide general information, advice and casework surgeries from 7 locations, along with a digital and phone based service available 5 days a week, plus a national telephone helpline that is available 365 days a year.

Alongside our generalist Information and Advice service, our team provided a range of specialist casework services.

The Welfare Benefits and Financial Health Check services aim to make sure older people in Hillingdon, Harrow and Brent are claiming all the benefits to which they may be entitled. These services were provided predominantly over the phone and internet during 2021/22. Local and national processing centres adapted claim processes to enable us to support claimants remotely through accepting scans and photos of key documentation. We were able to return to face-toface delivery at points through the year, but this service was restricted to those in the greatest need.

Our Housing Advice service provides information, advice and practical support to older people, who are thinking about moving or who just wished to remain independent in their own home.

In Harrow we provide Care Act Advocacy as part of a broader contract to provide statutory advocacy services to Harrow residents. We deliver this service in partnership with Community Connex.

In partnership with a number of local solicitors, we are able to provide a free Will Writing Service to those over the age of 55 .

Gateway partnership

As lead provider, along with our partners Community Connex and Capable Communities we provide a wide range of services for informal carers in Brent. These services support carers of all ages (including children) who have caring responsibilities. Age UK HHB staff focus on supporting older carers and those carers who are supporting older residents. Through this contract we also provide statutory advocacy services to Brent residents and a project that tackles social isolation.

Social Prescribing

Social prescribing is when health professionals refer patients to support in the community, in order to improve their health and wellbeing. We deliver social prescribing in partnership with other local charities in both Hillingdon (through H4all CIO) and Harrow (through Harrow Together). In both boroughs our teams work very closely with GPs in primary care and support older people with a view to helping them deal with wider health determinants. This might mean finding

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

initiatives that help to reduce isolation or support with practical issues such as benefits or housing advice.

In Hillingdon, our core wellbeing team provides social prescribing services for residents over the age of 18. In addition the team provides:

In Harrow we deliver a Social Prescribing Link worker service on behalf of the 4 of the 5 Primary Care Networks (PCNs). We are also funded via London Borough Harrow to provide management for the service and to administrate a data management system that is compatible with primary care.

2) Social Contact

Community Services

One third of older people in Hillingdon, Harrow and Brent live alone, rising to over 50% of older people aged 80 and over. Our aim is to reduce loneliness and isolation by providing a range of services that offer friendship, access to services and support, as well as an opportunity to participate in new activities that can improve mental and physical well- being.

Our Social Wellbeing Team provides a range of befriending and ageing well services as well as activity sessions from our Townfield Community Centre.

Our range of groups and clubs provide a valuable opportunity for older people to socialise and take part in activities. We support group activities across all three boroughs, from small social or special interest groups (such as our Cognitive Stimulation Therapy groups for people living with dementia), through to more substantial groups such as our Failte Irish Club and our Interactive Older Peoples club which can have attendances of over 80 older people.

Through much of 2021/22 our face-to-face groups were suspended due to the pandemic, but phone support, WhatsApp social groups, online groups and mailouts were maintained to support group members. We have adopted a phased approach to reopening our group activity based upon government guidance and ensuring infection control measures were adhered to. Feedback from

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

those who have re-engaged has been overwhelmingly positive, though we there are significant numbers of older people who have lost confidence to engage in community activities.

Our Community Support Service volunteers help to reduce loneliness and promote independence by providing telephone befriending, a weekly home visiting service and our Good Neighbours project. This service provided vital support through the lockdowns ensuring older people had access to food and medicines. As we move back into delivering face to face services, we are utilising volunteers to support those who have lost confidence to re-engage with services provided by Age UK HHB and others.

3) Practical Home Services

Hospital services

Age UK HHB has been providing support to older people in Hillingdon Hospital for the last 18 years. We provide support, information and advice to older people in A&E and if they are not admitted to hospital our support workers escort the patient home and ensure they are safe. This support aims to ensure elderly patients fully recover their confidence and independence to help avoid re- admissions to hospital. We also have Take Home and Settle Service that supports older people who are discharged from hospital. Our staff will accompany a patient home and take on any tasks necessary to ensure they are settled safely and best placed to complete recouperation.

Our hospital services continued throughout the pandemic working very closely with our statutory colleagues through periods of heavy demand and pressure on NHS services.

During 2021/22 we took on a pilot discharge support service for Northwick Park Hospital, in partnership with Harrow Carers, supporting residents of Harrow and Brent who are discharged home. The pilot is based upon our Hillingdon service and early indications are demonstrating positive benefits for the patients as well as relieving pressure on stretched hospital resources. We also secured a contract in partnership with Age UK Buckinghamshire to provide a Discharge Support Service to residents of Buckinghamshire , from 1 April 2022. This service combines the discharge expertise of Age UK HHB with the local knowledge and integration of Age UK Bucks to better support the older residents of Buckinghamshire. The provision of discharge services across the wider geography ensures we can support older people across borough boundaries, a factor that traditionally challenges local service provision.

Our free Falls Prevention Service is a key element of the Hillingdon Falls Prevention service. Members of our team visit people at home to carry out a risk assessment to identify any potential risks and offer advice on how to prevent further falls. Aids and adaptations are recommended and a programme of exercise is introduced and supported, in order to help build confidence.

Our Falls team continued to operate during the pandemic, providing support and advice over the phone during lockdown and providing face to face support when safe to do so.

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Charged for services

Our Help at Home is a chargeable service that supports older people to live independently and safely in their home of choice by giving a hand with shopping (including internet shopping), housework, laundry and a variety of other small tasks.

This service has continued providing vital face to face support to older people throughout the pandemic.

Our Trusted Traders Service provide a wider range of professional services to older people across the region, at affordable prices, by local, reputable tradespeople. This service is an important mechanism to provide access to tradespeople who are vetted by Age UK HHB and helps us in the fight against Rogue Traders.

Our Homeshare service is designed to help reduce isolation and improve wellbeing. It enables two unrelated people to share a home for mutual benefit. An older person with a spare room (Householder) is carefully matched with a person who is in need of low-cost accommodation (Sharer). In return for accommodation the Sharer gives the Householder 10 hours of their time each week as a combination of practical support and companionship.

Towards the end of 2021/22, Age UK HHB launched a service providing support to establish a Lasting Power of Attorney. This service is based upon a model developed by Age UK. We are piloting the service in partnership with Age UK Ealing, Age UK Hammersmith and Fulham, Age UK Hounslow, Age UK Kensington and Chelsea and Age UK Westminster to support older residents of North West London to set up a Lasting Power of Attorney at an affordable price. The service is delivered at cost as we believe a Lasting Power of Attorney is in the best interests of older people. Any profits generated through this service will contribute towards the work of Age UK partners supporting older residents of North West London.

4) Income generation activities

We operate 2 charity shops in Hillingdon – one in Ruislip and one in Kings Hill. In 2021 we entered into partnership with Harlington Hospice and Michael Sobell Hospice to combine our retail operations with a view to consolidating our management costs and optimising income generation for the 3 charities through economies of scale. We now operate a group of 9 shops across the partnership and have seen improved performance for all 3 partners on post vs pre pandemic profitability.

We employ a community fundraiser who has helped us to develop and sustain partnerships with local businesses such as DHL, Coca Cola, Cadburys etc. as well as running a wide range of fundraising events to generate funds to support our work. In particular we would like to acknowledge the support of Insight who through their Uxbridge offices have committed to supporting Age UK HHB as their nominated charity through 2021 and 2022.

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Profits generated from these enterprises support our ability to deliver activities in line with our charitable objectives as detailed above.

ACHIEVEMENTS AND PERFORMANCE:

1)Information and advice services

Gateway Partnership

Advocacy Services

Adult Carer Services

Young Carer Services

Social Isolation & Loneliness Prevention Service

Social Prescribing Services

Main reasons for referrals were:

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

2) Social Contact

Community Services

3) Practical Home Services

Hospital Services

Hillingdon Hospital

Northwick Park (mobilised in Q3)

Charged for services

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

PERFORMANCE AGAINST STRATEGIC OBJECTIVES:

1.Provide Information and Advice services to all old people in our area.

As detailed above, information and advice is the cornerstone of our support for older people. Performance data demonstrates we have strong reach and impact in this area. We have greatest capacity through commissioned service provision in Hillingdon. We supplement contracted Information and Advice funding in Harrow and Brent with fundraised income, but aim to develop capacity in these boroughs.

2.Target services and interventions to the greatest need.

Eligibility criteria for all services ensure we are targeting those whose needs are greatest. Much of our community service provision is targeted at reducing isolation which impacts on a significant proportion of older people. Our hospital services are geared towards supporting those who are most frail and vulnerable and at risk of losing independence. Our social prescribing services are geared towards supporting older people living with long-term conditions, particularly targeting those who are not managing their conditions well. Our information and advice services are targeted towards those on low incomes or in poor housing with the objective of improving quality of life. Covid has shone a light on health inequalities and has exacerbated many of the underlying determinants of poor health and wellbeing. We have focussed our energies on supporting those older people in greatest need.

3.To pursue strategic alliances to develop service provision and improve efficiency

We have been successful at nurturing and building on strategic alliances in all three boroughs. Age UK HHB continue to play a leading role within H4all (a third sector consortium based in Hillingdon that has seen continued growth in 2021/22. We successfully led the development of a collaborative social prescribing service in Harrow through our membership of Harrow Together (third sector consortium based in Harrow). We are lead agent for the Gateway partnership along with 2 other third sector partners delivering a range of services in Brent. Age UK HHB is working collaboratively with Age UK partners across North West London and is represented on the leadership of 3ST, a third sector collaborative that operates across the North West London region in line with new NHS commissioning frameworks. We have played a key role in relief efforts through the course of the pandemic working with local charities, local authorities and NHS providers. In 2021 we initiated a new discharge service from Northwick Park Hospital in partnership with Harrow Carers. In 2021/22 we bid successfully in partnership with Age UK Buckinghamshire to deliver hospital discharge services in Buckinghamshire with the service starting from 1 April 2022.

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

4. Diversify our income.

2021/22 has been a successful year for Age UK HHB. We have retained most of our income streams and been successful in securing a number of short-term grants from local authorities and trust funds to support our Covid relief efforts supporting older residents.

We have been successful in securing pilot funding for 15 months to deliver discharge services to patients from Northwick Park Hospital, serving residents of Harrow and Brent. We also secured a 2-year contract to delivery discharge support services in Buckinghamshire in partnership with Age UK Bucks.

Our three main areas of income are NHS contracts, Local Authority contracts and grants and our paid for services. We have seen growth of income for Brent and Harrow improving the balance of services provided for older people across our geography.

The focus for our paid for services during 2021/22 was to build in efficiencies and improvements to our Help at Home model to ensure it adequately covers a proportion of our overhead costs. We identified a number of processes that could be streamlined and automated, so reducing on staff and administrative time. These have been implemented through the year and we hope to see the financial benefits now that our customer base has begun to return post pandemic.

The board approved an investment in growing and diversifying our retail (Charity shop) operations across the three boroughs. Following a review of our retail operations, we took the decision to collaborate with Harlington Hospice and Michael Sobell Hospice, combining the management and back-office administration of our retail operations across the three charities. We consolidated our trading operations across the 3 charities. Our shops have returned to full trading during 2021/22 and we are now looking for opportunities to grow and diversify our retail operations.

Our fundraising provides an important and growing income stream for the charity. The pandemic forced us to refocus fundraising activities, and we secured a range of support, both in kind and in cash from corporate partners through the course of the year. We developed a marketing strategy in 2021/22 which will be implemented in 2022/23 with a view to further building our profile locally and supporting our fundraising activity.

5. Promote the work of the charity.

Over recent years the profile of Age UK HHB has grown to become recognised as the leading charity supporting older people across the region, particularly amongst decision makers within the local authorities, NHS and voluntary sector.

We have secured regular articles in the Local Authority newspapers which are distributed to every household. We have also stepped up our social media presence with regular twitter feeds, an updated Facebook page and we have invested time in revamping and updating our website to promote the work of our organisation.

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Age UK HHB is the lead third sector agent for older people with each of the 3 local authorities. We hold positions within each of the local care partnerships at borough level and also hold a seat on the leadership team of 3ST and have positions on key NHS boards representing the third sector across North West London.

Our work, particularly around collaboration, partnership and integration has been recognised by NHS England, Age UK and London partners, and we have presented at a range of national forums.

We have approved a marketing strategy and will invest in our marketing to further promote our work during 2022/23.

6.Measure our performance.

We report regularly to grant officers and commissioners against all of our statutory and Trust funded services. Furthermore, we provide organisation wide reporting to our board of Trustees on a quarterly basis. We report on all services, operational, retail and fundraising activities, measuring performance trends against historic data.

We record impact measures across the majority of our services in order to measure outcomes as well as outputs, using externally verified tools.

In 2021/22 we moved from Charitylog to Salesforce as our primary client record system as part of a national programme sponsored by Age UK. This enables us to capture data more systematically with significantly improved reporting functionality.

7. Develop, support and value our staff and volunteers.

All staff and volunteers receive a tailored induction programme when joining Age UK HHB. Every member of staff and volunteer has clear objectives and a development plan which are appraised annually and reviewed regularly through 1-1 supervision.

We provide regular team meetings for all staff and volunteers and on an annual basis provide larger events for staff and volunteers. We also produce a staff and volunteer bulletin 4 times per year which goes to all staff and volunteers.

Our staff and volunteers contributed to the development of our 5-year strategy which was developed during 2019/20 through a series of workshop and consultation exercises. Staff and volunteers contribute towards the annual review of our strategy and were engaged at our Staff and Volunteer away days during 2021/22. We survey our staff and volunteers on an annual basis and develop an action plan based upon the findings.

In February 2020 we successfully completed our Investors in People audit. Our assessor commended Age UK HHB and recommended us for an Investors in People award. Investors in

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

People have now moved to a model of continuous assessment. We have worked closely with them during 2021/22 with a view to continually improving the support we provide to our workforce.

At the end of March 2022, we had 112 staff and 223 volunteers. Our volunteers contributed an estimated 33,450 hours of their time during the year. Based on the London Living Wage, this equates to a value of £362,798 a vital contribution to delivering our services and achieving our goals.

Beneficiaries of our services

Age UK Hillingdon, Harrow and Brent supports older people living within the London boroughs of Hillingdon, Harrow, Brent and surrounding areas.

We also support informal carers and families of older people as this provides indirect benefit to their older relatives and friends.

We support older people generally from the age of 50 upwards. As a charity we are committed to supporting all older people, but we will prioritise those who are in greatest need.

It should be noted that some of our services are only available to older people above a certain age or whom meet particular eligibility criteria in line with contractual or grant specifications agreed with the funding body.

Financial review

Income

Total income was £2,967,787 (2021: £3,317,479) a decrease of £349,692. The decrease in income was primarily due to lower legacy income received in 2022 - £37,844 (2021: £454,271). Income breaks down as follows:

Income 2021-22 2020-21 Change Change
£ £ £ %
Information & Advice 909,866 821,521 88,345 11%
Social Contact 430,341 515,930 (85,589) (17%)
Practical Home Services 1,328,073 1,280,255 47,818 4%
Voluntary income 90,444 538,860 (448,416) (83%)
Trading income 209,064 160,913 48,151 30%
2,967,787 3,317,479 (349,692) (11%)

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Expenditure

Total expenditure was £3,129,257 (2021: £2,935,929), an increase of £193,982. Expenditure breaks down as follows:

reaks down as follows:
Expenditure 2021-22 2020-21 Change Change
£ £ £ %
Information & Advice 986,154 899,740 86,414 10%
Social Contact 444,006 487,887 (43,881) (9%)
Practical Home Services 1,396,488 1,264,087 132,401 10%
Raising funds 302,609 284,215 18,394 6%
3,129,257 2,935,929 193,328 7%

Reserves

Total reserves have fallen from £1,489,251 to £1,328,982. Reserves are analysed as follows:

Reserves 2021-22 2020-21 Change Change
£ £ £ %
Restricted reserves 25,588 84,404 (58,816) (70%)
Designated reserves 484,049 500,000 (15,951) (3%)
Free reserves 819,345 904,847 (85,502) (9%)
Total reserves 1,328,982 1,489,251 (160,269) (11%)

Net deficit for the year

The Charity reported a deficit of £160,269 for the year ended 31 March 2022 (2021: Surplus £387,683). The surplus generated in 2021 allowed the Charity to designate funds for investment in services and infrastructure projects. The deficit in the year ended 31 March 2022 was a planned deficit.

Results 2021-22 2020-21 Change Change
£ £ £ %
Reserves brought
forward 1,489,251 1,101,568 387,683 35%
Result for the year (140,268) 387,683
Reserves carried
forward 1,328,982 1,489,251 (160,269) (9%)

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Investment Policy

Funds may be invested at the Trustees’ discretion. The trustees take a cautious approach to investments and hold a higher interest account with CAF Bank, which is classified as cash on the balance sheet and has instant access. This investment is low risk, but does not provide adequate protection against inflation.

The Board of Trustees is considering its options with regard to investments given the higher inflation environment at the time of writing this report.

Principal risks and uncertainties

The Trustees maintain a register of key risks and supporting mitigation plans that are regularly reviewed at Board meetings. Policies, systems and procedures are established to mitigate those risks identified in the risk register and implement procedures to minimise and manage any potential impact on the charity should those risks materialise.

Risk management priorities for 2022/23 are focused on: dealing with the impact and legacy of the Covid pandemic. We are focussing on the medium to long term impact of prolonged isolation due to lockdown and Covid related restrictions on the health and wellbeing of older people. This has been compounded by cost-of-living pressures and significant numbers of older people impacted by fuel poverty. With the economic downturn, we are seeing pressures building on local authority and NHS budgets, fundraising income and our retail operations. A number of our larger statutory contracts are due for renewal which brings a risk of reduction or loss of funding. We are scenario planning for contraction of the charity.

Reserves policy and going concern

For the purposes of determining the level of reserves calculations have been done to reflect:

The following elements have been evaluated to calculate the minimum reserves calculation for Age UK Hillingdon Harrow and Brent:

  1. Statutory redundancy costs for employees in services where grants or contracts will be up for renewal in 2022-2025, based on age and length of service of actual staff.

  2. Remaining terms of leases until first opportunity to break, less their estimated resale market value. A cautious approach has been taken this year given the current situation with the retail property market.

  3. Pension liability for defined benefit schemes becoming due in the event of closure of Age UK Hillingdon.

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

  1. A fund to cover potential loss of income from charity shop trading, fundraising events and donations.

  2. A fund to cover potential loss of income from Help at Home clients, to cover essential staff costs at risk if demand declines.

  3. Designated legacy and grant funds.

This calculation results in a total target reserves position of £1,272,986. Total reserves, excluding restricted reserves, at 31 March 2022 are £1,323,395. Total restricted funds at 31 March 2021 are £25,588

Trustees feel the required reserves calculation is reasonable, and that actual reserves are sufficient to ensure the organisation can meet planned service delivery obligations in 2022/23 and all liabilities in the event key funded services need to be wound down.

Trustees acknowledge that the sum required needs to be reviewed on an annual basis to recalculate the liabilities.

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

COVID-19

Since March 2020 there have been significant changes to the ways in which the Charity delivers its services, due to the COVID-19 pandemic. Safeguarding and infection control measures meant face-to-face services needed to be withdrawn, whilst the vulnerability of our client base meant different support and services became essential.

Through 2021/22 with vaccination levels high across our region, Covid rates stabilising and government guidelines relaxing we have been able to reopen all services and activities through the course of the year.

There are legacies of the pandemic that affect older people.

We have taken learning from the pandemic. Whilst all services have reopened, we have modified the way that we deliver services to ensure we target resources most effectively and to those most in need. For example, we are able to provide more Information and Advice over the phone and internet, but still provide face to face appointments for those who are only able to be supported in this way.

Our workforce is also working in a more flexible way. We have introduced hybrid working policies for staff and we are reviewing our use of premises in line with the new ways of working.

Fundraising

Age UK is committed to responsible fundraising and is a member of the fundraising regulator and adheres to its policies. Age UK employs a full-time fundraiser to engage with the local community and companies as well as seeking funds from, and partnerships with national organisations to promote and support the various activities of the charity.

Key activities included our Big Knit campaign, support for Age UK raffles and drives for stock for our retail shops. We continued to nurture and develop corporate partnerships in the boroughs. We received support from CISCO for our digital inclusion project through provision of skilled volunteers. We received financial support from the coop and were voted charity of the year by Insight who will be supporting us for the next 2 years.

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Plans for the future

Our focus for the year ahead will be ‘recovery’. As a result of the pandemic, a much higher proportion of older people are experiencing isolation and are in greater need of our support. This has been compounded by cost of living and fuel poverty which are impacting those older residents who are in greatest need. As such we are experiencing high demand and capacity pressures. We are focussing on securing sufficient resource to meet demand.

Our board undertook annual reviews and refocus of our 5-year strategy in July 2021 and July 2022. This has helped us to review our priorities for recovery, but we are not proposing any significant changes to our broad strategic direction.

Key priorities for us are going to be ensuring we can deliver on our strategy through the likely economic recession. We anticipate that the longer-term impacts of Covid on the physical and mental health as well as the broader wellbeing of older people will continue to place pressure on our finite resources.

Most of our income streams are unlikely to rise in line with the inflationary pressures on our costs. As such we are putting in place plans to further reduce overheads and back-office costs to ensure we minimise any impact on service delivery. Alongside these mitigating actions, we will continue to build out, looking for further opportunities to grow and diversify our income streams, in partnership wherever possible.

Structure, governance and management

Age UK Hillingdon, Harrow and Brent is a Charitable Company limited by guarantee, not having share capital. The company was incorporated on 8 December 1995 and registered as a charity on 4 January 1996.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association. The articles of association were updated in 2018 following the merger of Age UK Hillingdon with Age UK Brent and Age UK Harrow.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 to the accounts.

Trustees have agreed to contribute £1 in the event of the charity winding up.

The Board of Trustees

The Board of Trustees comprises

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Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Honorary Officers serve for a period of 3 years from the date of their election and are eligible for re-election.

The Board of Trustees normally meet 6 times a year and is responsible for managing the affairs of Age UK Hillingdon, Harrow and Brent. Whilst decisions on policy and strategy are made by the Board, day to day management and decision making are delegated to the Chief Executive who works closely with members of the Senior Management Team.

Appointment of trustees

Whilst trustees are elected at the Annual General Meeting, they are subject to the Organisation's policy and procedures of recruitment, induction and training.

Trustees are recruited from a wide variety of sources including open advertisement and personal recommendation. There is considerable endeavour to ensure that there is a balance of skills, gender and cultural background represented and that Trustees are representative of older people in Hillingdon, Harrow and Brent generally.

Potential trustees are invited to visit the administrative office for an informal discussion with the Chief Executive (and/or Chair) and are offered the opportunity to attend a Board Meeting as an observer. The Board is able to co-opt members between Annual Meetings.

Trustee induction and training

All trustees attend an Age UK HHB induction day alongside new staff and volunteers to support basic orientation within the charity.

All new trustees are encouraged to take charge of their own training programme tailored to their own needs and having particular regard to the responsibilities of charity trustees.

Related parties and relationships with other organisations

Age UK Hillingdon, Harrow and Brent is an independent charity, responsible for its own policy, direction and funding. We are a subscribing member of a network of charities sharing similar objectives called the Age England Association. To be accepted for membership of this Association the Charity has to sign up to a Brand Partnership Agreement that describes the obligations of Association members and it also has to comply with the Association's Charity Commission accredited standards of service delivery known as the Age UK Organisational Quality Standards. Age UK Hillingdon, Harrow and Brent contributes to the Association in a number of ways, including participating in regional meetings and networks, raising policy issues that may benefit from work at national level and sharing best practice. During 2021/22 CEO of Age UK HHB represented London partners on the Age England Association as a Director of the Company.

21

Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

During 2021/22, Age UK Hillingdon, Harrow and Brent continued to work with 4 other Hillingdon based charities to manage H4AII, a Charitable Incorporated Organisation (CIO). The aim of this CIO is to secure and deliver contracts for Wellbeing Services that will be delivered by H4AII member organisations. To support this activity, H4AII CIO has also developed shared back-office services that help reduce costs and improve H4AII members' efficiency. Age UK Hillingdon, Harrow and Brent is represented on the Board of Trustees of the H4AII CIO by a Trustee nominated by the Age UK Hillingdon, Harrow and Brent Board of Trustees and by the CEO who is also a Trustee.

Age UK Hillingdon, Harrow and Brent are an associate member of Harrow Together (HT) , a Charity based in Harrow whose aim is to secure and deliver contracts for the third sector in the borough. In October 2019, Age UK HHB CEO was appointed to the board of Trustees. Age UK HHB is lead delivery partner for the Harrow Social Prescribing partnership, Lead partner for delivery of Northwick Park Discharge Support Service and a delivery partner for SWISH (information and advice). Age UK HHB CEO is a representative for HT on the local Integrated Care Partnership Executive.

Age UK HHB lead a successful partnership delivering the Brent Gateway services. Partners who subcontract to Age UK HHB in this partnership are Community Connex and Capable Communities.

Age UK HHB led a successful bid in partnership with Age UK Buckinghamshire to provide hospital discharge services in Buckinghamshire. These services commenced on 1 April 2022.

During the course of 2021/22 a collaboration of third sector organisations formed to engage with the new NHS regional Integrated Care System which covers the 8 London boroughs of North West London. Age UK HHB CEO is one of the 10 members on the leadership team for 3ST .

Remuneration policy for key management personnel

When advertising for key management posts, pay and remuneration levels are benchmarked against existing staff and with relation to comparable roles advertised across the Age UK London network. Any changes to pay and remuneration for existing key management personnel are consistent with those offered to other staff in Age UK Hillingdon, Harrow and Brent. All pay decisions for key management are considered and signed off by the Board of Trustees.

Relationships with stakeholders

The Directors delegate responsibility for managing stakeholder relations to the CEO who provides regular update reports to the board.

Key stakeholders include:

Local Authorities of Hillingdon, Harrow and Brent

22

Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

Age UK HHB is represented on key strategic groups in all three boroughs. We are recognised as the leading local charity supporting older people in all three boroughs and have supporters both within the members and the executive teams of each local authority.

NHS

We are engaged in the integration and transformation of NHS services across the three boroughs and have positioned ourselves to effectively influence emerging new NHS commissioning structures. We have services that work alongside GP practises as well as our hospital-based services. We are a member of the Integrated Care Partnerships in Harrow and Hillingdon. We have played a key role in mobilising the third sector to secure representation on the new Integrated Care System covering North West London.

Supporters

We regularly engage with our wider stakeholders through our Community Fundraiser. During 2021/22 we developed a marketing strategy to improve supporter engagement across all communication channels. This strategy will be implemented through the course of 2022/23.

Service users

Receive regular feedback opportunities and consultation exercises. These included workshops and groups to contribute to developing our new 5-year strategy. We also run consultation exercises when considering new service developments for Age UK HHB or on behalf of our statutory partners.

Statement of responsibilities of the trustees

The trustees (who are also directors of Age UK Hillingdon, Harrow & Brent for the purposes of company law) are responsible for preparing the trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

23

Age UK Hillingdon, Harrow and Brent

Trustees’ annual report

For the year ended 31 March 2022

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

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2022 was 13 (2021: 11). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on 22 November 2022 and signed on their behalf by

Neil Franklin

Chair of the Board of Trustees

24

Independent auditor’s report

To the members of

Age UK Hillingdon, Harrow and Brent

Opinion

We have audited the financial statements of Age UK Hillingdon, Harrow & Brent (the ‘charitable company’) for the year ended 31 March 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Age UK Hillingdon, Harrow & Brent’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

25

Independent auditor’s report

To the members of

Age UK Hillingdon, Harrow and Brent

Other Information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being

26

Independent auditor’s report

To the members of

Age UK Hillingdon, Harrow and Brent

satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

27

Independent auditor’s report

To the members of

Age UK Hillingdon, Harrow and Brent

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

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 charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Pittman (Senior statutory auditor)

25 November 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

28

Age UK Hillingdon, Harrow and Brent

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2022

Note
Income from:
2
3
3
3
4
5a
5a
5a
5a
6
Reconciliation of funds:
Donations and legacies
Charitable activities
Transfers between funds
Net movement in funds
Total funds brought forward
Net gains / (losses) on investments
Net income / (expenditure) for the year
Net income / (expenditure) before net gains /
(losses) on investments
Total funds carried forward
Practical Home Support
Advice & Information
Social Contact
Raising funds
Total expenditure
Charitable activities
Practical Home support
Advice & Information
Social contact
Total income
Expenditure on:
Other trading activities		 Unrestricted
£
90,444
828,618
324,318
1,328,073
209,064		 Restricted
£
-
81,248
106,023
-
-		 2022
Total
£
90,444
909,866
430,341
1,328,073
209,064		 Unrestricted
£
533,860
758,907
303,957
1,280,255
160,913		 Restricted
£
5,000
62,614
211,973
-
-		 2021
Total
£
538,860
821,521
515,930
1,280,255
160,913
2,780,516 187,271 2,967,787 3,037,892 279,587 3,317,479
302,609
888,192
295,881
1,396,888		 -
97,962
148,125
-		 302,609
986,154
444,006
1,396,888		 284,215
838,226
279,007
1,264,087		 -
61,514
208,880
-		 284,215
899,740
487,887
1,264,087
2,883,570 246,087 3,129,657 2,665,535 270,394 2,935,929
1,601
(103,054)		 -
(58,816)		 1,601
(161,870)		 6,133
372,357		 -
9,193		 6,133
381,550
(101,453)
-		 (58,816)
-		 (160,269)
-		 378,490
-		 9,193
-		 387,683
-
(101,453)
1,404,847		 (58,816)
84,404		 (160,269)
1,489,251		 378,490
1,026,357		 9,193
75,211		 387,683
1,101,568
1,303,394 25,588 1,328,982 1,404,847 84,404 1,489,251

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18a to the financial statements.

29

Age UK Hillingdon, Harrow and Brent

Balance sheet

Balance sheet
As at 31 March 2022 Company no. 3136052
Note
Fixed assets:
11
12
Current assets:
13
14
Liabilities:
15
18a
Total unrestricted funds
Stock
Debtors
Total charity funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Investments
Cash at bank and in hand
Tangible assets
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
The funds of the charity:		 £
-
299,191
1,502,093		 2022
£
42,914
26,713		 £
1,905
473,443
1,292,898		 2021
£
50,610
25,114
69,628
1,259,354		 75,724
1,413,527
1,801,284
541,930		 1,768,246
354,719
484,049
819,345		 500,000
904,847
1,328,982 1,489,251
25,588
1,303,394		 84,404
1,404,847
1,328,982 1,489,251

Approved by the trustees on 22 November 2022 and signed on their behalf by

Neil Franklin Chair of the Board

30

Age UK Hillingdon, Harrow and Brent

Statement of cash flows

For the year ended 31 March 2022

Note
£
£
Cash flows from operating activities
Net (expenditure)/ income for the reporting period
(160,269)
(as per the statement of financial activities)
Depreciation charges
7,696
(Gains)/losses on investments
(1,601)
(Profit)/loss on the disposal of fixed assets
-
(Increase)/decrease in debtors
174,252
Increase/(decrease) in creditors
187,211
Net cash (used in)/ provided by operating activities
207,289
-
(Increase)/decrease in stocks
1,905
1,905
209,194
1,292,899
-
1,502,093
Cash flows from investing activities:
Purchase of fixed assets
2022
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
Cash and cash equivalents at the beginning of the year
Net cash (used in) /provided by investing activities		 Note
£
£
Cash flows from operating activities
Net (expenditure)/ income for the reporting period
(160,269)
(as per the statement of financial activities)
Depreciation charges
7,696
(Gains)/losses on investments
(1,601)
(Profit)/loss on the disposal of fixed assets
-
(Increase)/decrease in debtors
174,252
Increase/(decrease) in creditors
187,211
Net cash (used in)/ provided by operating activities
207,289
-
(Increase)/decrease in stocks
1,905
1,905
209,194
1,292,899
-
1,502,093
Cash flows from investing activities:
Purchase of fixed assets
2022
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
Cash and cash equivalents at the beginning of the year
Net cash (used in) /provided by investing activities		 Note
£
£
Cash flows from operating activities
Net (expenditure)/ income for the reporting period
(160,269)
(as per the statement of financial activities)
Depreciation charges
7,696
(Gains)/losses on investments
(1,601)
(Profit)/loss on the disposal of fixed assets
-
(Increase)/decrease in debtors
174,252
Increase/(decrease) in creditors
187,211
Net cash (used in)/ provided by operating activities
207,289
-
(Increase)/decrease in stocks
1,905
1,905
209,194
1,292,899
-
1,502,093
Cash flows from investing activities:
Purchase of fixed assets
2022
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
Cash and cash equivalents at the beginning of the year
Net cash (used in) /provided by investing activities		 £
£
387,683
27,501
(6,133)
-
31,210
54,324
494,585
-
(428)
(428)
494,157
798,742
-
1,292,899
2021		 £
£
387,683
27,501
(6,133)
-
31,210
54,324
494,585
-
(428)
(428)
494,157
798,742
-
1,292,899
2021
207,289
1,905		 494,585
(428)
209,194
1,292,899
-		 494,157
798,742
-
1,502,093 1,292,899

31

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies

a) Statutory information

Age UK Hillingdon, Harrow and Brent is a charitable company limited by guarantee and is incorporated in England and Wales. The charity's working name is Age UK HHB.

The registered office address is 2 Chapel Court, 126 Church Road, Hayes, UB3 2LW.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Throughout the COVID-19 pandemic the charity continued to provide services, albeit with changes to the ways in which a number of services were delivered. Looking forward, the principal identified financial risks relate to the potential increase in costs due to high inflation and changes to Local Authority funding arrangements. The trustees have reviewed financial projections to March 2024 and are confident that the charity can manage these risks and can continue to trade as a going concern.

The charity has taken account of the risks that may affect its service delivery and its financial outlook and has made provision through its reserves calculation to ensure that these risks can be managed.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

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

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

32

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

h) Expenditure and irrecoverable VAT

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

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.

Advice and Information 30%
Social Contact 19%
Practical Home Support 45%
Other Trading activity (Charity shops & Fundraising) 6%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500 and the asset is expected to be productive for more than 12 months. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Motor Vehicles 4 years
Fixtures and fittings 4 years
Computer equipment 4 years
Leasehold improvements 25 years or the life of the lease

l) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

33

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies (continued)

m) Stocks

n) Debtors

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

o) Cash at bank and in hand

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

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

q) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

r) Pensions: Defined benefit plan

Age UK Hillingdon, Harrow and Brent participates in The Pensions Trust – Growth Plan scheme, a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is no longer available for current employees. The scheme is a defined benefit scheme in the UK. Due to the way the scheme is set up, it is not possible for the company to obtain sufficient information to enable it to account for its liabilities under the scheme.

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

Further information about the scheme, with details of the actuarial valuation and the potential liability for Age UK Hillingdon Harrow and Brent is provided in note 21 to these accounts.

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Income from donations and legacies
Donations
Legacies
Age UK Partnership
Age UK Partnership (COVID)
Age UK London (Lottery)
Age UK London (Big Knit)
City Bridge Trust
Jean & Derek King Foundation
Gift Aid
Other		 Unrestricted
£
18,560
37,884
10,000
20,142
-
-
-
601
3,257		 £
-
-
-
-
-
-
-
-
-
Restricted		 2022
Total
£
18,560
37,884
10,000
20,142
-
-
-
601
3,257		 Unrestricted
£
18,757
454,271
15,000
20,000
9,209
614
-
10,000
2,982
3,027		 £
-
-
-
-
-
-
5,000
-
-
-
Restricted		 2021
Total
£
18,757
454,271
15,000
20,000
9,209
614
5,000
10,000
2,982
3,027
90,444 - 90,444 533,860 5,000 538,860

34

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

3 Income from charitable activities

Income from charitable activities
Information & Advice
Citizens Advice Bureau Brent
H4All CIO
Harrow Community Action
Harrow Mencap
London Borough of Brent
London Borough of Hillingdon
London Borough of Hillingdon (COVID-19)
Harrow MIND
Royal Brompton and Harefield Hospital
Mercers
Donations
Sub-total for Advice & Information
Social Contact
Age UK Partnership - Digital Programme
Good Things Foundation (Census)
City Bridge Trust
H4All C.I.O.
Embassy of Ireland
A P Taylor
London Borough of Brent
London Borough of Harrow
London Borough of Hillingdon
London Borough of Hillingdon (COVID-19)
London Community Response Fund
Room Hire
Clubs income
Donations
Sub-total for Social Contact
Practical Home Services
Charges
Harrow Community Action
HMRC - furlough
H4All C.I.O.
NHS Hillingdon CCG
London Borough of Hillingdon
Nationwide Building Society
The Hillingdon Hospital NHS Trust
Other
Sub-total for Practical Home Services
Total income from charitable activities		 Unrestricted
£
-
12,332
104,127
22,000
454,377
234,404
-
-
-
-
1,378		 £
28,000
-
22,915
-
-
-
-
-
18,633
11,700
-
Restricted		 2022
Total
£
28,000
12,332
127,042
22,000
454,377
234,404
-
-
18,633
11,700
1,378		 Unrestricted
£
10,416
-
83,888
22,000
391,606
234,477
10,000
-
-
-
6,520		 £
28,000
-
32,314
-
-
-
-
2,300
-
-
-
Restricted		 2021
Total
£
38,416
-
116,202
22,000
391,606
234,477
10,000
2,300
-
-
6,520
828,618 81,248 909,866 758,907 62,614 821,521
-
13,804
-
43,817
-
-
-
6,000
230,988
9,200
-
6,565
5,979
7,965		 14,774
-
31,641
-
6,908
2,000
12,000
-
38,700
-
-
-
-
-		 14,774
13,804
31,641
43,817
6,908
2,000
12,000
6,000
269,688
9,200
-
6,565
5,979
7,965		 -
10,183
-
20,111
-
-
-
30,000
269,673
10,000
-
170
35
2,485		 48,208
-
37,690
-
9,996
-
-
-
-
-
77,379
-
-
-		 48,208
10,183
37,690
20,111
9,996
-
-
30,000
269,673
10,000
77,379
170
35
2,485
324,318 106,023 430,341 342,657 173,273 515,930
419,163
52,500
-
396,616
306,222
146,000
6,249
-
1,323		 -
-
-
-
-
-
-
-
-		 419,163
52,500
-
396,616
306,222
146,000
6,249
-
1,323		 399,553
-
11,226
379,821
313,529
145,957
24,996
3,808
1,365		 -
-
-
-
-
-
-
-
-		 399,553
-
11,226
379,821
313,529
145,957
24,996
3,808
1,365
1,328,073 - 1,328,073 1,280,255 - 1,280,255
2,481,009 187,271 2,668,280 2,381,819 235,887 2,617,706

Total government funding from Grants and Contracts in 2022 was £1,456,524 (2021: £1,996,406).

4 Income from other trading activities

Income from other trading activities
Charity Shops
HMRC - furlough
London Borough of Hillingdon (COVID-19)
London Borough of Brent (COVID-19)
Donations
Gift Aid		 Unrestricted
£
195,662
-
8,930
-
1,544
2,927		 £
-
-
-
-
-
-
Restricted		 2022
Total
£
195,662
-
8,930
-
1,544
2,927		 Unrestricted
£
70,726
64,043
14,334
10,000
1,210
600		 £
-
-
-
-
-
-
Restricted		 2021
Total
£
70,726
64,043
14,334
10,000
1,210
600
209,064 - 209,064 160,913 - 160,913

35

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

5a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 7)
Other staff costs
Premises
Direct costs of service delivery
Shared costs of service delivery
Operating costs
Marketing
Shops purchases
Equipment hire
Strategic development
Other costs
Audit & Accountancy
AGM & Trustee meetings
Irrecoverable VAT
Bank charges & penalties
Legal Costs
Sundry expenses
Other governance costs
Depreciation
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Raising
funds
£
103,591
282
80,400
796
73,269
7,772
-
3,869
70
-
-
-
-
-
2,428
360
1,975
-
-		 Advice &
Information
£
489,097
791
29,819
296,163
37
30,806
-
-
-
-
-
-
-
-
-
-
463
-
-		 Social
Contact
£
299,442
2,626
20,194
4,408
625
27,321
-
-
210
-
-
-
-
-
-
-
1,159
-
-		 Practical Home
Services
£
1,074,454
20,731
16,860
17,117
10,980
43,612
199
28
-
-
-
-
-
-
446
2,920
1,073
-
-		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
13,552
1500
-
-
1,583
-
19,230
-		 Support
costs
£
299,856
4,054
20,953
418
46,254
9,111
3,750
-
420
1,100
-
-
-
27,934
2,848
-
3,005
-
7,696		 2022
Total
£
2,266,440
28,484
168,225
318,901
131,165
118,623
3,949
3,897
700
1,100
-
13,552
1,500
27,934
5,722
4,863
7,677
19,230
7,696		 2021
Total
£
2,226,159
13,879
114,877
294,550
121,004
74,043
60
1,529
350
-
2,311
14,790
392
10,152
2,579
294
12,769
18,690
27,501
2,935,929
-
2,935,929
36
274,814
25,644
2,152		 847,175
128,219
10,759		 355,986
81,206
6,814		 1,188,420
192,329
16,139		 35,864
-
(35,864)		 427,398
(427,398)		 3,129,657
-
-
302,609 986,154 444,006 1,396,888 - 3,129,657
284,215 899,740 487,887 1,264,087 - -

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

5b Analysis of expenditure (prior year)

Staff costs (Note 7)
Other staff costs
Premises
Direct costs of service delivery
Shared costs of service delivery
Premises costs
Marketing
Shops purchases
Equipment hire
Strategic development
Other costs
Audit & Accountancy
AGM & Trustee meetings
Irrecoverable VAT
Bank charges & penalties
Legal Costs
Sundry expenses
Other governance costs
Depreciation
Support costs
Governance costs
Total expenditure 2021		 Raising
funds
£
138,101
216
65,730
30,932
623
18,097
-
1,440
140
-
148
-
142
-
-
294
3,312
590
-		 Charitable activities Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
-
-
-
-
-
14,790
-
2,131
-
7,416
10,453
-		 Support
costs
£
316,872
3,752
927
1,784
38,526
8,450
-
-
-
-
819
-
66
10,152
-
-
-
-
27,501		 2021
Total
£
2,226,159
13,879
114,877
294,550
121,004
74,043
60
1,529
350
-
2,311
14,790
392
10,152
2,579
294
12,769
18,690
27,501
Advice &
Information
£
440,110
2,074
36,404
239,087
27,578
21,134
-
-
-
-
135
-
29
-
-
-
165
-
-		 Social
Contact
£
329,309
2,384
11,816
1,502
31,084
19,823
-
81
210
-
26
-
155
-
-
-
148
7,120
-		 Practical Home
Services
£
1,001,767
5,453
-
21,245
23,193
6,539
60
8
-
-
1,183
-
-
-
448
-
1,728
527
-
259,765
22,533
1,917		 766,716
122,592
10,432		 403,658
77,624
6,605		 1,062,151
186,100
15,836		 34,790
-
(34,790)		 408,849
(408,849)
-		 2,935,929
-
-
284,215 899,740 487,887 1,264,087 - - 2,935,929
37

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

6 Net income / (expenditure) for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2022 2021
£ £
Depreciation 7,696 27,501
Operating lease rentals payable:
Property 96,400 96,833
Auditor's remuneration for audit work (excluding VAT): 10,500 10,000
Auditor's remuneration for audit work under accrual for previous year 2,000 1,789
Auditor's remuneration for tax return 1,050 -

Staff costs were as follows:

Staff costs were as follows:
Defined contribution pension schemes
Social security costs
Redundancy and termination costs
Other forms of employee benefits
Salaries and wages		 2022
£
2,007,931
14,000
156,248
81,247
7,014		 2021
£
1,983,485
1,176
152,542
81,958
6,998
2,266,440 2,226,159

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2022 2021
No. No.
£60,000 - £69,999 1 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £205,250 (2021: £217,601).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 112 (2020: 107).

Advice and information
Practical Home support
Administration and support
Social Contact
Charity shops and other services
Chief Officer		 2022
No.
1
10
19
9
67
8		 2021
No.
1
12
22
8
62
7
113 112

38

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

9 Related party transactions

There are no related party transactions to disclose for 2022 (2021: none).

Mr Roger Calverley, trustee, and Mr Julian Lloyd, CEO, are also trustees for H4All C.I.O. Any work for H4All is on an arm's length basis.

Income received from H4All C.I.O. covered the cost of staff seconded to the charity to support the broader Health & Wellbeing aims of Age UK Hillingdon, Harrow & Brent, along with the costs of services provided to H4All. Services provided include the costs of finance and procurement support. The total income received from H4All in 2022 was £699,095 (2021: 665,685).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

11 Tangible fixed assets

Cost
At the end of the year
Net book value
At the end of the year
At the start of the year
Charge for the year
At the end of the year
Depreciation
At the start of the year
Additions in year
At the start of the year		 Leasehold
Improvements
& Townfield
£
114,284
-		 Fixtures and
fittings
£
4,668
-		 Computer
equipment
£
67,392
-		 Motor
vehicles
£
29,870
-		 Total
£
216,214
-
114,284 4,668 67,392 29,870 216,214
67,899
3,471		 4,314
354		 63,521
3,871		 29,870
-		 165,604
7,696
71,370 4,668 67,392 29,870 173,300
42,914 - - - 42,914
46,385 354 3,871 - 50,610

All of the above assets are used for charitable purposes.

12 Listed investments

Listed investments
Investments comprise:
Fair value at the end of the year
Fair value at the start of the year
Additions at cost
Net gain / (loss) on change in fair value
Shares held in subsidiary
Shares listed on the London Stock Exchange		 2022
£
25,113
-
1,600		 2021
£
18,980
-
6,133
26,713 25,113
2022
£
26,713
-		 2021
£
25,113
1
26,713 25,114

Age UK Hillingdon, Harrow and Brent has a dormant trading subsidiary, Age UK Hillingdon Services Ltd, company number 07472681.

39

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

13
14
15
16
Balance at the beginning of the year
Amount released to income in the year
Net value of income deferred in the year
Balance at the end of the year
Deferred income
Deferred income comprises income received in advance of delivery.
Stock
Finished goods
Other creditors
Trade creditors
Accruals
Deferred income (note 16)
Taxation and social security
All stock was written off during the year.
Prepayments
Accrued income
VAT recoverable
Debtors
Other debtors
Creditors: amounts falling due within one year
Trade debtors
Pension Fund		 2022
£
-		 2021
£
1,905
- 1,905
2022
£
140,804
8,100
38,794
111,493
-		 2021
£
397,082
9,245
41,274
25,416
426
299,191 473,443
2022
£
88,768
45,565
4,466
95,765
293,641
13,725		 2021
£
65,823
41,703
4,660
71,611
165,547
5,375
541,930 354,719
2022
£
165,547
(164,077)
292,171		 2021
£
44,969
(44,969)
165,547
293,641 165,547

17a Analysis of net assets between funds (current year)

Net assets at 31 March 2022
Tangible fixed assets
Investments
Net current assets		 General
unrestricted
£
42,914
26,713
749,717		 Designated
£
-
-
484,049		 Restricted
£
-
-
25,588		 Total funds
£
42,914
26,713
1,259,354
819,345 484,049 25,588 1,328,982

40

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

17b Analysis of net assets between funds (prior year)

Net assets at 31 March 2021
Investments
Net current assets
Tangible fixed assets		 General
unrestricted
£
50,610
25,114
829,123		 Designated
£
-
-
500,000		 Restricted
£
-
-
84,404		 Total funds
£
50,610
25,114
1,413,527
904,847 500,000 84,404 1,489,251

18a Movements in funds (current year)

Total restricted funds
Total designated funds
General funds
Social contact
Restricted funds:
Advice & Information
Social contact
Advice & Information
Unrestricted funds:
Designated funds:
Total funds
Total unrestricted funds
Development Fund		 At 1 April
2021
£
17,810
66,594		 Income &
gains
£
81,248
106,023		 Expenditure
& losses
£
(97,962)
(148,125)		 Transfers
£
-
-		 At 31 March
2022
£
1,096
24,492
84,404 187,271 (246,087) - 25,588
-
250,000
250,000		 -
8,559
37,884		 -
(5,198)
(57,196)		 -
-
-		 -
253,361
230,688
500,000 46,443 (62,394) - 484,049
904,847 2,735,674 (2,821,176) - 819,345
1,404,847 2,782,117 (2,883,570) - 1,303,394
1,489,251 2,969,388 (3,129,657) - 1,328,982

The narrative to explain the purpose of each fund is given at the foot of the note below.

41

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

18b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
Social contact
Development Fund
Total unrestricted funds
Total funds
Restricted funds:
Designated funds:
Advice & Information
Social contact
Advice & Information
Unrestricted funds:		 At 1 April
2020
£
16,710
58,501		 Income &
gains
£
62,614
216,973		 Expenditure
& losses
£
(61,514)
(208,880)		 Transfers
£
-
-		 At 31 March
2021
£
17,810
66,594
75,211 279,587 (270,394) - 84,404
4,677
8,096
-		 -
250,000
250,000		 (4,677)
(8,096)
-		 -
-
-		 -
250,000
250,000
12,773 500,000 (12,773) - 500,000
1,013,584 2,582,725 (2,691,462) - 904,847
1,026,357 3,082,725 (2,704,235) - 1,404,847
1,101,568 3,362,312 (2,974,629) - 1,489,251

Purposes of restricted funds

Advice and Information

Citizens Advice Bureau Brent : To provide Information & Advice services to elderly residents in the London Borough of Brent.

Harrow Community Action : Two contracts: 1) For the recruitment and coordination of volunteers in the London Borough of Harrow. 2) To provide Social Prescribing resources for residents in the London Borough of Harrow.

Royal Bromption and Harefield Hospital: To support the lung health project among Hillingdon residents .

The Mercers' Company: To provide housing advice to vulnerable older renters in Brent and Harrow.

Social Contact:

The Embassy of Ireland, Department of Foreign Affairs and Trade : Failte project (Irish Elders) To provide social facilities for Irish Nationals in Hillingdon.

A P Taylor Trust : To support the Failte (Irish Elders) project.

London Borough of Hillingdon : Funding to provide social facilities for Hillingdon residents.

London Borough of Brent : Digital Inclusion project – Digital Cafes and Digital Champion recruitment.

Age UK : To support the use of digital resources among older residents in Hillingdon Harrow and Brent.

City Bridge Foundation: to support work with Londoners living with dementia .

Purposes of designated funds

Social Contact:

A significant legacy was received from a Harrow resident, and has been designated for the five year development of a befriending programme in Harrow.

Development Fund:

The balance of the above legacy to be used to support the capacity and capability of the Charity to support its expansion over the next five years.

42

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

19 Operating lease commitments payable as a lessee

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

Less than one year
One to five years		 2022
2021
£
£
67,500
96,833
174,375
241,875
241,875
338,708
Property		 2022
2021
£
£
67,500
96,833
174,375
241,875
241,875
338,708
Property
241,875 338,708

20 Clients' money

The charity acts as agents for clients to hold money on their behalf to spend on shopping and the use of the services the charity offers to the public. All expenditure carried out is requested by the client or authorised persons.

The balance held as at the 31 March 22 in respect of clients totals £2,128 owed to clients (2021: £745 owed by clients).

During the year £11,399 (2021: £29,563) was received into the account and expenditure paid out was £31,678 (2021: £30,345).

21 Pensions

SCHEME: TPT Retirement Solutions – The Growth Plan

The company participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

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

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

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 30 September 2025: £11,343,000 per annum (payable monthly and increasing by 3% each on 1st April)

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

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

2022 2021 2020
(£s) (£s) (£s)
Present value of provision 103 380 450

43

Age UK Hillingdon, Harrow and Brent

Notes to the financial statements

For the year ended 31 March 2022

21 Pensions (continued)

RECONCILIATION OF OPENING AND CLOSING PROVISIONS

RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Period Period
Ending Ending
2022 2021
£ £
Provision at start of period 380 450
Unwinding of the discount factor (interest expense) 2 10
Deficit contribution paid (96) (93)
Remeasurements - impact of any change in assumptions (2) 13
Remeasurements - amendments to the contribution schedule (181) -
Provision at end of period 103 380

INCOME AND EXPENDITURE IMPACT

INCOME AND EXPENDITURE IMPACT
Period Period
Ending Ending
2022 2021
£ £
Interest expense 2 10
Remeasurements – impact of any change in assumptions (2) 13
Remeasurements – amendments to the contribution schedule -181 -
ASSUMPTIONS
2022 2021 2020
% per annum % per annum % per annum
Rate of discount 2.35 0.66 2.53

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

DEFICIT CONTRIBUTIONS SCHEDULE

Year ending 2022 2021 2020
£ £ £
Year 1 37 96 93
Year 2 37 99 96
Year 3 31 102 99
Year 4 - 87 102
Year 5 - - 87
Year 6 - - -

The company recognises a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

44