2021-03-31-accounts

Annual Report and Financial Statements

www.familyfund.org.uk

Company Registration No. 3166627 Registered Charity No. 1053866 Scottish Charity No. SCO40810

Annual Report and Financial Statements 2021

Annual Report and Financial Statements

For year ended 31 March 2021

Contents

Chair’s review of Family Fund	3
Trustees’ report	6
Strategic report	13
Independent auditors’ report	37
Consolidated statement of	41
fnancial activities
Charity statement of fnancial activities	42
Balance sheets	43
Consolidated cash fow statement	44
Notes to the fnancial statements	45
Ofcers and professional advisers	72

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Annual Report and Financial Statements 2021

Chair’s review of Family Fund

Report and Financial Statements 2021

When I think about the last year, and how to sum up what it has meant for our organisation, I struggle to know where to start. I struggle for the same reasons I imagine many of us do when attempting to wrestle with what our lives have been like since March 2020 – how do you begin to reflect on a historic event which has changed every aspect of our lives, and which is still going on? It is simply overwhelming.

It has been particularly overwhelming for the families we support. Prior to the coronavirus pandemic the challenges faced by many families raising a child or young person with a disability or serious illness were all too apparent. Throughout the pandemic, many of those raising disabled or seriously ill children have had to display tremendous resilience, as they have had to cope with reduced incomes, school closures and, at times, no access to vital services and support – all of which has taken its toll on them and their children’s mental and physical health.

In this context, it was vital that we continued to fulfil our purpose and provide grants and services that could help ease the extraordinary pressures families faced – even just a little. From the end of March 2020, we rapidly remodelled our working practices to allow us to continue to function with most of our staff based remotely. Our ICT team set up dozens of laptops to allow previously office-based staff to work at home, as well as upgrading our remote-working infrastructure and software. Our Facilities team made the necessary changes to ensure a small number of staff could return to a safe office environment to complete vital tasks and continue to ensure families who submitted paper application forms received support, and were not disadvantaged because they were not able to access the digital world that was set to accelerate in the face of the pandemic.

We were able

to support, as a charity, a total of

Our grant-making not only continued, but grew to meet the increased level of need. We worked closely with our government funders to make the case for emergency funding for families, and secured an extra £15.2 million from the four UK governments to provide additional grant support. This funding meant we were able to support, as a charity, a total of 110,537 grants to families across the UK in 2020/21, an increase of 32,675 families (or 42%) more than in 2019/20. When we consider the BBC Children in Need Emergency Essentials Programme that we deliver together with our trading subsidiary Family Fund Business Services (FFBS), that support extended to 124,148 grants made.

124,148

grants to families across the UK

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Annual Report and Financial Statements 2021 | Chair’s Review

This level of need was reflected in an increase in grants and support provided by organisations across the public and third sectors. FFBS has played a vital part in helping its’ customers deliver grants and financial support to thousands of households across the UK. This work has additional benefit as it allowed them to generate £1.9 million of profit to support our work at Family Fund. In a challenging environment, our fundraising team secured our first major corporate partnership with McCain Foods, which has made a commitment of £1 million over three years, and raised a further £323,000 in addition to this commitment – crucial income that supports the long-term sustainability of our charitable work.

“In a world where every day can be hard, Family Fund provide the small things which make a massive difference.”

In the face of a global crisis, I am proud of our colleagues for their efforts to keep our lifeline for families going despite all the disruptions we have faced. Every single person in the organisation has made a difference and helped ensure tens of thousands of families continued to receive support at an unprecedented time of need. I am particularly conscious that many of our staff faced their own difficult times, and am very proud of the support, compassion and flexibility we have prioritised to help our colleagues manage the personal and professional challenges of the last year. They have lived our values of being supportive, connected, passionate and determined throughout. Across the year, and underpinning the actions, tone and ethos of the organisation, has been the importance of good governance. Our Board of Trustees have been responsive to the needs of the organisation during the pandemic, adapting to new ways of working that have been put in place to allow them to deliver their responsibilities. I appreciate and value their commitment and contribution to helping protect and safeguard families, volunteers and staff.

Maria, mum to Sam and Beth.

“Coronavirus is still very much a part of all our lives, and by receiving the computer through the pandemic, it allows Bowie to have his own space to complete his home learning. He was so happy when he received it and even said it was like ‘the best present ever.’ Having this technology to help him progress throughout the summer and beyond is life changing.”

With all that said, the pandemic continues – even as the vaccine roll-out reduces the prevalence and risk of Covid-19 – it remains uncertain as to what the future looks like. Families raising disabled or seriously ill children already faced daily challenges. The pandemic has magnified those existing challenges and brought to the fore new ones relating to the health and wellbeing of disabled children and their families and how they will recover. We will continue to play our part in delivering important financial support and advocate for the needs of families, making their voices heard in the difficult times to come.

Fay, mum to Bowie.

Neil Scott Chair

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Annual Report and Financial Statements 2021

The pandemic has magnified those existing challenges and brought to the fore new ones relating to the health and wellbeing of disabled children and their families and how they will recover.

Annual Report and Financial Statements 2021

Trustees’ Report

The trustees, who are also directors of the charitable company, present their annual report (including the Chair’s review of Family Fund and the Strategic report) on the affairs of the charity and the group, together with the audited financial statements and auditors’ report for the year ended 31 March 2021.

Structure, governance and management

Group status

Family Fund Trust (“Family Fund”) is registered as a charity and is a company limited by guarantee, and does not have a share capital. Every member undertakes to contribute towards the assets of the company in the event of winding up. Their individual liability cannot exceed £10.

Family Fund Trading Ltd, trading as Family Fund Business Services, is a wholly owned subsidiary of Family Fund and commenced trading in April 2008. The principal activity of the company is to work commercially for its parent, undertaking new activities to provide financial support to Family Fund so that it can sustain its work, develop its services and continue to make a difference to families who care for a disabled child or young person. The company shall transfer all trading profit, subject to prudent retention, to its parent.

Governing document

Family Fund’s governing instrument is the Articles of Association adopted in February 1996 and as subsequently updated; most recently in August 2019 with a change to the charity’s name and Objects.

Governance and management

Details of the membership of the Board of Trustees during the year and up to the date of this report are shown on page 57.

Family Fund’s Board determines the direction of the charity, with responsibility for sound

stewardship of the grants provided by the governments of England, Scotland, Wales and Northern Ireland, alongside private funders, donors and donations.

The Board meets on at least a quarterly basis, with a Board Development day scheduled annually. During the Coronavirus pandemic, the board continued to meet quarterly by way of virtual meetings, a method which was adopted within the charity’s Articles in 2019 and as matter of good order. There are three permanent committees, Finance Audit and Risk Committee, Safeguarding Committee, and the Reward and Nominations Committee, which also sit on a quarterly basis prior to the meeting of the full Board, which they report into. During the year and reflecting the challenges posed, additional meetings were held to support the Executive execute their Emergency Management Plan in response to the pandemic.

The Reward and Nominations Committee has oversight of the Group People Strategy and all matters relating to staff employment and wellbeing. It also acts as the Nominations Committee to oversee the recruitment of new trustees, and membership of Committees. This Committee, at the request of the Board, this year evaluated current skills to determine and identify areas where wider skills are required to support the good governance of the Board. Trustee vacancies are always promoted widely, or via other organisations and professional bodies so as to attract a broad range of highly skilled individuals and to encourage diversity. Shortlisting and

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Annual Report and Financial Statements 2021 | Trustee’s Report

interviewing are completed by the Nominations Committee, which subsequently makes an appointment recommendation to the Board. This year the Committee was required to seek at least four new trustees over the course of the year to join the board in good time to replace four trustees who were coming to the end of their term of office in 2021. It was important to recruit individuals with specific skills, who were able to bring lived experience of disability, and contributed to a more diverse and representative Board, and we were successful in meeting these criteria.

All new trustees are provided with an induction, which includes relevant reading materials related to the governance of Family Fund, including its Articles of Association and policies. Trustees are also provided with an operational induction with the Executive team, which this year was conducted virtually for one trustee; reflecting Government advice whilst retaining the opportunity to familiarise with the activities of the charity. Each new Trustee completes a postinduction review with the Chair, alongside term reviews, that seek to encompass feedback from the wider Board and Executive team.

The Board retains individual and collective policies and procedures to evaluate and develop the performance of the Trustees. Board members complete a number of self-assessment reviews with the Chair during their term(s) of office. Similar procedures are followed in respect of the Chair, Vice-Chair and the Chairs of all of the Committees.

The day-to-day running of Family Fund and Family Fund Business Services is delegated to the key management personnel - the Group Chief Executive and their fellow principal officers - who have the power to act and take decisions under the guidance of the Board. The Group Chief Executive and principals provide written reports detailing progress and future planned activity to the Board at its quarterly meetings and to all of the Committees in the run up to the Board. Additional reporting was put in places at the commencement of the pandemic as the charity responded to unprecedented change.

The principal officers serving during the year and reporting directly to the Group Chief Executive are detailed on page 57.

Staff Pay policy

The Board of Trustees recognises the importance of transparency and accountability in all aspects of work across the Family Fund Group and we are committed to open and clear information. This includes transparency about our Executive team’s salaries in both the charity and trading subsidiary, and how they are set.

Family Fund is driven by its vision and is committed to maximising our impact across all elements of our work. To do this means we need to work hard to balance two different needs: the need to ensure value for money in everything we do, including how we pay our staff; and the need to attract and retain people with the right leadership, experience, knowledge and skills required to lead the charity through the changing landscape of disability policy and economic change so that we can evidence impact, outcomes and effectiveness.

We aim to ensure that our employees’ salaries reflect the level of responsibility and leadership expected of them, and that they are in line with the salaries paid by other voluntary organisations. We benchmark all of our salaries across the Group each year against voluntary sector organisations of similar sizes, complexity and profile, using established salary surveys. This determines the minima and maxima for each of the salary bands, including the Executive grades. We also keep an overview of local markets to ensure that pay differentials do not affect our ability to attract the right calibre of person.

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Annual Report and Financial Statements 2021 | Trustee’s Report

This practice is in line with the National Council for Voluntary Organisations’ executive pay guidance that ‘the overall goal of a charity’s pay policy should be to offer fair pay to attract and keep appropriately qualified staff to lead, manage, support and/or deliver the charity’s aims.’

By paying salaries that match similar roles at comparable organisations, we can attract and keep the highly skilled and committed staff the Family Fund Group needs. This means we can keep meeting our ambitious plans, remain effective and efficient, increase our funding and with it grant support and services to families.

Following recommendation from the Reward and Nominations Committee, the Board of Trustees will consider and, if in agreement, approve the annual pay award budget for the Group. An employee’s ability to progress through the salary band is based on individual performance, using predetermined ratings. Percentage increases are attributed to each of the ratings, provided to the Reward and Nominations Committee and applied consistently across the Group, including at Executive level.

The performance rating of the Group Chief Executive is presented by the Chair to the Reward and Nominations Committee for approval, with senior management team ratings being set by the Group Chief Executive and reported to the Reward and Nominations Committee alongside the summarised reporting of all staff ratings.

Secure and accurate processes meeting legal requirements

The Board is committed to the continued review and maintenance by Family Fund Group of good quality procedures and processes. These include:

• Risk Management Framework, Register and Risk Appetite Statements maintained and updated at quarterly intervals. A summary of changes is presented to the Board at each meeting, with a full review by the Board twice a year;

• Systems, policies and procedures in place, with monitoring and review mechanisms, to ensure compliance with data protection and other legislation;

• Audit mechanisms and processes for minimising errors or risk of fraud by staff and contractors in place;

• Audit mechanisms for minimising attempts to utilise grants for unintended purposes or to defraud by grant recipients;

• Disaster Recovery and Business Continuity Plans are in place and subject to annual review by the Board;

• All major contract areas are covered by servicelevel agreements with performance standards; and

• Internal quality review procedures for all business areas.

We are confident that these procedures will ensure that the governance and risk management of the organisation continues to be of a high standard.

Objectives

Family Fund helps meet the needs of families living on the lowest of incomes raising disabled and seriously ill children. We remove many of the barriers they face and help to promote quality of life. Everything we do contributes to that. Our vision is that families raising disabled or seriously ill children have the same choices, quality of life, opportunities and aspirations as other families.

Family Fund is established for the public benefit and for general charitable purposes according to

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Annual Report and Financial Statements 2021 | Trustee’s Report

the laws of England and Wales. The purpose of the charity, as set out in the governing document, is (1) primarily to assist families, parents and others with parental responsibility in the United Kingdom caring for a severely disabled child or person, and (2) the relief of those in need by reason of disability, ill health, financial hardship or other disadvantage by:

• i. providing support by way of financial grants, goods, services and information;

• ii. furthering knowledge about disability and its impact on the disabled child or person, their siblings, parents or carers; and

• iii. working with other charitable organisations to delivery financial grants, goods, services and information to those in need by reason of disability, ill health, financial hardship or other disadvantage.

The Trustees have complied with the duty (set out in section 4 of the Charities Act 2006) to have due regard to public benefit guidance published by the Charity Commission.

Families make no payment for our services and no relevant individuals are excluded from our application procedures. Further details of the specific achievements of the Group are included in the Chair’s review. In addition, a summary of the grants awarded to families are included in note 5 to the financial statements.

Family Fund continues to pursue its aspirations, which relate to its vision of help for families raising disabled or seriously ill children. These include:

• sourcing sufficient funds to support a wider number of families and increase the age limit for support;

• provision of timely and practical advice by way of improving information for families and signposting families to other organisations;

• contacting families in person or virtually who apply to us and providing additional and timely support at application stage;

• expanding our work in delivering additional support and services and realising funding for young people aged 18-24 years and small grants for the siblings of disabled children;

• maintaining our efficiency through improvements in our service, systems and contract arrangements with suppliers;

• increasing the level of funding from other grant programmes administered on behalf of government and private funders.

Grant-making policy

The Trustees have determined that the current priorities for grant-making will be:

• Families living on the lowest of incomes across the UK caring for a child or young person with a disability or serious illness up to the age of 25;

• Carers of disabled children and young people up to the age of 21, and their families, requiring a short break; and

• Carers of disabled children and young people up to the age of three, requiring a lease for a vehicle that will support their mobility needs

• Siblings within families living on the lowest of incomes caring for a child or young person with a disability or serious illness up to the age of 25 years.

• As many families as possible will receive grants within the funding that is available.

The priorities within this policy will be reviewed annually or more often if deemed appropriate by the Trustees, and may be changed in accordance with the Trustees’ view of the most effective application of available funds, whilst giving consideration to any grant agreements in place.

Family Fund aims to ensure that our grant-making:

• Is informed by family voice;

• Meets a family’s individual needs;

• Provides a choice;

• Covers the cost of the item, where possible;

• Promotes positive outcomes

• Results in lasting change;

• Is flexible and practical; and

• Is efficient, effective and responsive.

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Annual Report and Financial Statements 2021 | Trustee’s Report

Environmental statement

During 2020/21, our total energy usage across our offices at Unit 3 and Unit 4 Alpha Court was 169,175 kwh. Below is a breakdown of the resulting greenhouse gas emissions, based on figures provided by our energy supplier.

----- Start of picture text -----
Energy usage CO2e emissions
(metric tonnes)
Gas consumption 13.68
Purchased electricity 22.09
Transport N/A
Total gross emissions 35.77
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The chosen intensity measurement ratio is total gross emissions in metric tonnes of carbon dioxide equivalent (CO2e) per full-time employee (FTE), which is 0.23 tonnes.

To prepare these figures, we have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard, and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

We have taken steps to reduce energy usage. We have not used the air cooling in the offices (as a precautionary measure due to the COVID pandemic) and continue to convert lights to LEDs, thereby reducing the energy required to light the offices.

We remain committed to the aims of our environmental policy, namely:

• Comply with and exceed all relevant regulatory requirements.

• Continually improve and monitor environmental performance.

• Continually improve and reduce environmental impacts.

• Incorporate environmental factors into business decisions.

• Increase employee awareness and training.

The Group focuses on a number of key areas of activity to deliver our goals of becoming a lowwaste, low-energy organisation. These include sustainable procurement, more recycled products, greater emphasis on repair, ‘buying local’ where possible, environmentally friendly cleaning materials.

• Sustainable transport: Promote more remote / video meetings than travel (even pre-pandemic), promote public transport through securing staff discounts on buses.

• Energy and water usage reduction: Efficient heating and air conditioning use, turning off equipment and lights not in use.

• Waste reduction and safe disposal: Reuse and recycle all paper (equal to 8.5 tonnes of carbon dioxide in 2019), remove single plastic cup use, encourage plastic and can recycling, send general waste to waste-to-energy power plant.

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Annual Report and Financial Statements 2021 | Trustee’s Report

Statement of Trustees’ responsibilities in respect of the financial statements

The trustees (who are also directors of Family Fund Trust 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 regulation.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that financial year. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (2019);

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business4.

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

The trustees are responsible for the maintenance and integrity of 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.

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Annual Report and Financial Statements 2021

It was clear that the level of need and number of families eligible for, our support, was going to significantly increase

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Annual Report and Financial Statements 2021

Strategic Report

A year like no other

Since March 2020, parents and carers raising disabled or seriously ill children across the UK have had to cope with falling incomes, reduced services, increased health risks, and the cumulative family stress that looking after their children during a pandemic creates.

During this time, we have striven to provide essential support to ease some of the immense pressures despite disruptions to our office, suppliers, and service. We have worked hard to generate further funding and ensure every penny goes as far as possible; and to understand what the pandemic has meant for families, and the part we can play in improving their lives. All the while, ensuring our staff are supported and safe, whether working at home or doing one of the essential tasks that requires people to be in the office.

As this financial year began, the lockdown was only a few days old, and we were initiating our Emergency Management Plan and adapting our working practice to allow most staff to work remotely. Applications from families had not yet risen, as the implications of lockdown, shielding, furlough and other factors had yet to become widely known, and no-one knew how long the pandemic would last – the first lockdown was initially announced as three weeks, before being extended.

As lockdown was extended further, and our understanding of the scale of the pandemic developed, it became clearer that we would be dealing with the pandemic for many months to come. We began to see a rise in application rates and, as a result of the particular challenges the pandemic posed, a rise in grant requests for items to help children and young people now required to stay at home, such as digital devices, recreation and outdoor play equipment. With reports of job losses, falling wages, and anecdotal evidence of the impact that a lack of access to school and services was having on the health and wellbeing of disabled children and young people, it was clear that the level of need and number of families eligible for, our support, was going to significantly increase. We prepared a case for funders, informed by our research with families into the impact of Covid-19 on their lives. We received emergency funding from all four UK governments and we are grateful for their speed and positive response.

We received

emergency funding from all four UK governments and we are grateful for their speed and positive response.

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Annual Report and Financial Statements 2021 | Strategic Report

Helping more families than ever before

In England, the Department for Education (DfE) quickly responded to the need for extra support and committed to providing an additional £10 million in emergency funding, both from DfE and the Department for Culture, Media and Sport (DCMS) for families, alongside the £27.3 million already committed by DfE for 2020/21. The additional funding was announced on 19 May and marked the beginning of a targeted multi-channel campaign to let families know support was available. The number of families applying for help rose and remained high for the remainder of the year, to the extent that the Department for Education provided a further £3.5 million in January. This emergency funding meant that 90,791 grants were provided to families in England – an increase of 28,537 (46%) compared to 2019/20, and reflective of the increasing number of families in need during this most difficult of years.

England

The Scottish Government also provided additional funding for both the Family Fund grant scheme and Take a Break, a scheme which supports parents and carers to ‘take a break’ from the everyday demands of caring for a child or young person with a disability or serious illness. Scottish Government’s provision of £880,000 in emergency funding, in addition to £2.97 million already committed for 2020/21, allowed us to provide support to 8,468 families in Scotland – an increase of 2,144 (34%). Take a Break received £178,750 in extra funding, in addition to the £700,000 already agreed. This essential funding allowed us to support a total of 2,660 parents/carers, 504 (23%) more than last year. A further agreement with Connecting Scotland, a Scottish Government programme to provide those who are digitally excluded with the “confidence, kit and connectivity” to access the benefits of being online, we were also able to provide 57 digital devices to families in Scotland.

Department for Education and Department of Culture, Media and Sport funding allowed us to provide

90,791 grants to families

Emergency support was also received from the Department of Health in Northern Ireland who responded swiftly and significantly to support families. With an agreement to provide £480,000 in addition to £1.57 million of annual funding, this allowed us to support 5,426 grants to families with essential items that made an immediate difference to families during the pandemic. This is 1,312 families (32%) more than last year.

And in Wales, the Welsh Government made further funding of £158,000 available in addition to original funding of £360,000, allowing us to provide 1,301 grants to families, an increase of 315 (32%) compared to the previous year.

We are extremely grateful to all our government funders for their support across this most difficult of years, and their commitment to support families with emergency funding during a time of great demand on public finances. We were able to make this funding go further thanks to careful financial management. Through making the most of our partnerships with key suppliers, we were able to secure £3.19 million in additional funding from discounts received from suppliers, which was distributed across the UK to support more families. This resulted in 95p in every £1 of funding we received being spent on direct charitable purposes.

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Annual Report and Financial Statements 2021 | Strategic Report

Northern Ireland

Department of Health in Northern Ireland funding allowed us to provide

5,426 grants to families

Scotland

Scottish Government funding helped us provide

8,468 grants to families

Wales

Welsh Government funding allowed us to provide

1,301 grants to families

Although not specifically linked to pandemic emergency support, our other grant programmes, funded by trusts, foundations and individual donations, were also able to make a significant difference to and help more families. The Marian Elizabeth Trust, which supports families raising children or young people with significant learning difficulties, helped 646 families during the year – an increase of 77 over the 569 helped in 2019/20. ‘Your Opportunity’ our grant programme funded by Edward Gostling Foundation and Family Fund provided support to young people aged 18-24, and helped 714 young people, almost doubling the 365 helped in 2019/20. As it enters its fourth year, we are very pleased to have secured further funding for this scheme from the Pears Foundation for 2021-22, which will allow us to help even more young people, who can struggle to find support elsewhere and who have seen their opportunities severely curtailed by the pandemic, which has had a negative effect on their education, health and wellbeing.

After the success of our previous pilot scheme, we received further funding for the next phase of Family Fund Mobility Support, a programme funded by Motability. This funding provided a car lease through Motability Operations to families raising a child with additional mobility needs under the age of three, who is ineligible for the mobility component of DLA. The pandemic and the resultant closure of car showrooms and manufacturers did disrupt the level of support that we were able to provide during the year as the UK went in and out of lockdown. However the new funding allowed us to provide 184 families with a car lease and greatly extended their ability to travel and more easily perform day-to-day activities supporting the health needs of their children and, providing a vital degree of independence during a year in which they could otherwise have been isolated.

Our own discretionary grant programme that recognises the contribution of siblings to the lives of disabled children and young people, Siblings Matter Too, provided grants to 290 brothers and sisters this year. This was a lower number than the 1,045 helped in 2019/20 owing to having to focus staff time on the significant extra applications received through our main schemes as a priority.

Although not exclusively for families raising disabled or seriously ill children, we also continued to administer the BBC Children in Need Emergency Essentials Programme together with our trading subsidiary Family Fund Business Services (FFBS), which provides essential items to families in crisis. Thanks to extra funding released by Children in Need and funders such as the Department for Culture, Media and Sport, the programme was able to provide support to 13,611 families across the year.

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Annual Report and Financial Statements 2021 | Strategic Report

We secured £3.19 million

in additional funding from discounts received from suppliers across the UK to support more families.

All this means that, despite the challenges of the last year, the Family Fund team have been able to provide 110,537 grants to families raising disabled or seriously ill children, an increase of 32,675 (42%) over 2019/20, and, when including BBC Children in Need Emergency Essentials Programme, 124,148 grants were provided by the Group in total. This is reflective of a year where families needed support more than ever.

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95p
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£1 in every

we received was spent on direct charitable purposes.

Working from home

Like every other organisation trying to keep services going during the pandemic, we found ourselves having to adapt our working practices to both accommodate remote working ourselves, and considering the society-wide changes, especially how they affected our families. Our purpose focused our minds on how to provide the immediate support families needed, and we invoked our Emergency Plans to move to a blended working model of home and office.

We rapidly reviewed and adapted what our organisational approach would be, and with the support of our Board of Trustees, our ICT team purchased and set up dozens of laptops to allow previously office-based staff to work at home, as well as upgrading our remote-working infrastructure and software. This included roll-out of the (now ubiquitous) Microsoft Teams and training in how to use it, which allowed all meetings (including Executive and Trustee board meetings) to be held remotely and staff to connect with each other far more easily. Working from home still meant key principles needed to be upheld and we focused significant time within ICT, HR, and Audit and Compliance to reflect our new working practice within our polices and processes. We established and promoted best practice to ensure staff knew how to work safely and securely at home, especially when discussing or handling sensitive family data.

“We got a wardrobe, chest of drawers, a bedside unit and dinosaur bedding. Without the help, Charlie would probably be still in his tiny cot, and this was especially welcome as we applied during the Coronavirus lockdown and Family Fund were very quick in making a decision on the grant.”

Sara, mum to Charlie

As an organisation supporting low-income families, we understand the digital inequality that exists and it was imperative that we retained office presence to support families who applied for support using a paper application form. Certain tasks needed to be done within the office, and, once it was established some of our work was classified as ‘essential’ under government regulations, we made plans to enable key staff to return safely to the office. Our HR and Facilities team began the process of reviewing and implementing government guidance, developing a Covid-secure site, and remodelling the office. This helped ensure a small number of staff could return to an environment that was compliant with the regulations and as safe as possible.

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Annual Report and Financial Statements 2021 | Strategic Report

As a number of studies have shown, working remotely during this pandemic has had an impact on many people’s wellbeing and mental health. With this in mind, we have surveyed our own team regularly to get a sense of how they were coping with changed conditions, and provided health and wellbeing resources and guidance to reflect the importance of staff wellbeing and a sense of connection with colleagues they could not see every day. For those with childcare responsibilities, we made use of flexible working practice to help them put their family first. Our management team worked hard to respond to people’s needs with empathy and help them cope during difficult times, particularly as the level of need for Family Fund’s support, and commensurate workload, grew.

Adapting our services

The nature of lockdown saw a spike in applications for particular grant items such as outdoor play equipment and digital devices. We worked closely with suppliers to ensure they were aware of the changing trends as early as possible to minimise supply disruption, and to be able to communicate with families regarding availability of items. As part of this, we introduced greater flexibility in what grants could be made, given that some of our schemes were specific to family breaks and days out which were not accessible over periods of the year. We adapted these schemes to allow families to have grant items that would realise a ‘break at home’, which resulted in a much needed tangible benefit.

We made changes to our application eligibility timescales to allow more families to receive support earlier than they might otherwise have done, in recognition of the impact the pandemic would have had on families’ financial and living situations in just a matter of weeks. We proactively shared the latest information on changes in policy and other support available via our digital channels, setting up specific sections on the website with all the key information clearly presented. We expanded our digital promotion of our support to help us reach more families, creating new adverts and campaigns and connecting regularly with our large network of sector contacts and frontline professionals to ensure they had accurate information about available

Through a combination of video calls and phone, we were able to speak with

11,710 families

support. With no face-to-face events, we began running webinars for families and sector professionals to answer questions and signpost to additional support, as well as expanding our email newsletter provision.

We recognised that many families could find posting a physical application form a barrier to applying, so our ICT team worked to improve our online application systems, including introducing a system that would give all families the option to apply for a grant online for the first time. This meant many of those who struggled to post a physical application would no longer have to. The new system supported a significant rise in application rates, particularly among first-time applicants, implying that it has made an important step towards fuller accessibility of our support for some families. Alongside this work, we made a number of changes to our website navigation and content to make user journeys simpler and our content more legible to all potential beneficiaries to assist in reducing the contact enquiries to our First Contact Team for information that could be sourced in other ways.

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The information and support services that we provide, and which have expanded considerably in the last few years also required a rethink, with many of them usually delivered face-to-face. Careful planning was required to adapt our assessment visits, and through a combination of video calls and phone, we were able to speak with 11,710 families to find out more about their circumstances and suggest other support that may be available alongside Family Fund’s grants.

We were unable to provide face-to-face Digital Skills training, so adapted our offer, with sessions being delivered via video call, so that those with limited digital skills could easily access the session via a link sent to their phones. Many families reported that they preferred this approach to learning and the flexibility it offered, and we were able to provide training to 373 in total, our most ever in one year. Included within this figure were a number of families who took courses via our Family Fund iPad Summer School, a new initiative which we provided in partnership with MCC, who are an Apple Authorised Education Specialist, to help families learn more about using iPad software for creative activities.

We had a

34% increase in calls made to our First Contact Team in the first six months of the pandemic

With families confined at home and struggling to access support, our First Contact Team saw contact volume at a level never experienced. With a 34% increase in calls made to our First Contact Team in the first six months of the pandemic, we invested further resource and time into our non-voice and social media customer service provision to provide a more responsive service via those channels. Our team answered 112,574 calls and received 108,593 ‘non-voice’ contacts via email and our website. Whilst it was a significant undertaking to respond to that level of contact we continued to provide additional information and signposting to other sources of support over the phone alongside answering queries. A total of 6,810 families received this additional support, including 1,757 who received information on how to apply for the disabled child element of tax credits.

We also began a new scheme ‘Power Up’, funded by Good Things Foundation, which provides advice and training to parents and carers in Edinburgh and Glasgow on how to use digital to manage their money better. Originally planned as a mix of online learning and face-to-face workshops, it was adapted to be delivered over video calls in response to the pandemic and needs of parents and carers. Given the move of the last year to making more of our digital channels, it was important to understand and record the level of online interactions and instances of an individual accessing information that would be of use to them. Looking at those users who either watched one of our iPad training videos to 90% of its duration, or visited pages on our website about where to find further support, we can see that 19,732 users received information that they could use.

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In total, we were able to provide 149,162 grants and services to families raising disabled or seriously ill children, and including our work with BBC Children in Need, this figure increases to 162,749, the most in our history.

Securing the future

The pandemic has created an immensely challenging environment for fundraising over the last year. With fundraising events unable to take place, and all charities seeking to secure individual donations, we had to work hard to highlight the issues families were facing and why our work needed people’s support. We trialled new forms of ‘virtual’ events during the year, which saw positive engagement from supporters and provided very useful learnings for us to further develop in the coming year and beyond. We had also secured a Radio 4 appeal slot prior to the pandemic, where we were able to highlight how the everyday challenges families faced were being exacerbated by Covid-19. Presented by Radio 2 DJ Jo Whiley, whose sister Frances has a learning disability, the appeal raised £65,802 – making it one of the most successful appeals Radio 4 have had, and providing a source of donation income for the charity

We also marked the beginning of what will be a very important partnership for us over the next three years with the official announcement of our new partnership with McCain Foods in February. McCain Foods and Family Fund both recognise the importance of family and allowing families to spend time together, such as at mealtimes. McCain Foods committed to donate £1 million over the next three years to support our work, which we will use to fund a grant programme that will help hundreds of families each year with items such as cookers, dining tables and chairs supporting families to come together at mealtimes. Alongside this donation commitment, we committed to working with McCain Foods’ employees to engage them in supporting, volunteering and fundraising for Family Fund. This partnership also offered an opportunity to raise awareness of Family Fund on a national stage in a way we have never had before. McCain Foods launched a new national TV advert and

Last year we generated £2.52 million in income through our fundraising and the donated profit from our trading subsidiary, Family Fund Business Services

£623,000 Fundraising

£1.9 million Family Fund Business Services

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Annual Report and Financial Statements 2021 | Strategic Report

accompanying communications campaigns just at the cusp of the new financial year to promote the partnership, and a full review of the first year will be in next year’s annual report.

This partnership meant that our total fundraising income moved to £623,000, which showed significant growth year-on-year despite the tough environment.

The pandemic also had a major impact on the customers of our trading subsidiary, Family Fund Business Services (FFBS), who had to respond to exponential growth in need for support from their beneficiaries. Overall, customer orders increased by 85% as local authority and charity clients worked with FFBS to deliver much-needed support to people impacted by furlough schemes, job losses and the absence of school meals. The effect of the pandemic on those facing new or increased hardship was further demonstrated in the unprecedented rise in orders for particular essential services FFBS provides. Year-on-year, FFBS experienced a 111% increase in orders of energy vouchers, a 143% increase in cash awards and a staggering 3,168% increase in food vouchers. This increase in activity means that FFBS generated a profit of £1.9 million, its largest yet and the second consecutive year it has made over £1 million. This means that, since launching in 2013, FFBS has generated a total of £6.6 million for Family Fund – valuable income that supports the long-term sustainability of the charity and our ability to continue our work with families in need.

The impact of Coronavirus on families

The impact of the coronavirus pandemic has magnified existing challenges, and brought to the fore new ones. Many families have been left devastated; facing the same challenges as all families have due to lockdown, including the economic impact, but starting from a position where raising a disabled child already costs around three times as much as other children. From the early days of the pandemic, we knew we needed to understand as fully as possible what this impact on families looked like on an everyday basis. This was both to provide us with the intelligence to shape our services accordingly, and to highlight the issues faced by families more widely and advocate for policies and programmes to support them; making sure the voice of families could be heard.

Since the beginning of the coronavirus pandemic, we have conducted five waves of online surveys, taking place in March 2020, May 2020, August 2020, December 2020, and finally February 2021. The sample across the five waves extended to 13,284 families on low-incomes raising 17,366 disabled children and young people from across the UK. The most recent report, published one year on from the first lockdown in March, highlighted the stark reality that:

• 96% of families reported that the health and wellbeing of their seriously ill and disabled children had been negatively affected by Coronavirus restrictions

• Disabled children’s behaviour and emotions (91%) and mental health (87%) were most negatively impacted, with figures increasing by 27% for both figures from March 2020

• Two thirds (67%) say support from healthcare services has declined, with more than two in five families (44%) reporting a significant decrease

• Three quarters of families (76%) report their overall financial situation is worse as a result of coronavirus, with 20% saying income had “significantly decreased” and 7 in 10 saying they had no savings to fall back on.

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“When the Coronavirus lockdown happened, it was difficult to take the boys out on walks as they don’t understand social distancing. “ Having a safe garden means they can be free to play, jump around, be excited and make noise with no judgements or dangers. Being outside makes them so happy and it means I can watch them from our kitchen whilst I get some work done and I know they are safe.” ” Vicky, mum to Harry and Freddie

“We can confidently conclude that the past 12 months has had a severe, disproportionate and lasting negative impact on the vast majority of the families we support who are raising disabled children on lower incomes.”

As our Chief Executive, Cheryl Ward, stated “We can confidently conclude that the past 12 months has had a severe, disproportionate and lasting negative impact on the vast majority of the families we support who are raising disabled children on lower incomes.”

Over the last year we have shared these findings widely, with government funders and elected representatives to influence policy, with sector partners and professionals to inform their work and practice, and on national and regional media to raise wider awareness of the issues facing families raising disabled or seriously ill children. As the national picture evolves, so our research work will evolve to continue to highlight the issues and share the experiences of families as widely as possible to ensure their needs are considered as we consider, as a society, how we will build our recovery from this last year.

Remote working, robust governance

Good governance has underpinned the achievements of the charity and its trading subsidiary throughout the year. Our Articles, having been reviewed and updated, reflected the ability of the Board of Trustees to move to online Board and Committee meetings, with our first virtual trustee meeting taking place just after the first lockdown was announced. The issue of board papers to inform meetings had already been moved to online delivery and as such, the transition was seamless. The formation of the Emergency Management response team involved monthly meetings with Trustees who provided guidance and support as we determined our priorities and set to work delivering our purpose.

All Board and Committee meetings were subsequently delivered virtually through the year. Within the backdrop of the pandemic governance activities continued as, the Nominations

Committee formed to identify new Trustees to join the charity, in 2020 and in 2021 to align with the retirement dates of four Trustees. An important consideration for the Nominations Committee was to ensure the Board reflected the diversity of the UK population and that more Trustees had lived experience of disability, whether that be personally or in caring for a child or young person with a disability or serious illness. Following a successful search and online interview process with a number of candidates that brought diversity of thoughts and views, the Board of Trustees successfully identified five candidates to join the Board in 2020 and 2021.

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The importance of diversity in the widest sense is important to the Executive and Trustees as it creates more balanced decision-making, legitimacy and impact.

In November 2020, the Trustees welcomed the update to the Charity Governance Code and the inclusion of principle six, ‘Equality, diversity and inclusion’ (EDI). Following a further benchmarking exercise of the code, the charity began to record its approach to supporting EDI throughout the charity and trading subsidiary through the development of its first strategy. This is a strategy that will make clear the commitment that we will stay relevant to the families and customers we serve in delivering our public benefit, and that we will recognise and counter any imbalances in power, perspectives and opportunities in the charity, and in the attitudes and behaviour of trustees, staff and volunteers, helping to make sure that we achieve our aims.

During the pandemic, the charity has faced extremely demanding and ever-changing challenges. We have been resolute that our primary focus must be looking after the families that we serve. Despite the difficult times, there we no matters that were considered as reportable incidents to the Charity Commission.

“Without your help and support over the years we couldn’t have given our son a safe outdoor environment to play which has been the best gift ever since lockdown.”

Fiona, mum to Daniel

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Achievement of objectives

Whilst operating with a backdrop of a global pandemic, we continued to deliver our aims and objectives. 2020/21 was the fourth year of our current five-year strategy, focused around our ambition to provide 150,000 grants and services a year to families across the UK by the end of 2021/22. The significance of the year and the additional financial support from our funders enabled us to achieve our 150,000 target, when including our work with our trading subsidiary delivering the BBC Children in Need Emergency Essential scheme, which gives a total of 162,749 grants and services – an incredible achievement.

Our objectives for the year are below and reflect the breadth of support provided over the last year, albeit many have been affected by the pandemic as we mobilised to deliver our priorities in the face of the last year’s challenges.

Transform our support

By 2022, we will not only provide practical financial help, but will also be meeting wider needs in terms of information and support. These needs will be articulated by our families and met directly by Family Fund or through appropriately sourced expertise.

In 2020/21, we said we would:

• Provide grants and services support, including information and signposting that recognises the extra challenges faced by families as a result of the Coronavirus outbreak.

• We delivered record levels of grant support, enabled by securing emergency funding from our government funders and maximising efficiencies to make funding go as far as possible, providing families with the grants they needed during this crisis. We provided key information on support available to families over the phone, via email, social media, and on our website that was up-to-date and relevant for those raising disabled or seriously ill children.

• Continue to deliver our government-funded, grant programmes, those grant programmes funded by trusts and foundations, along with our Siblings Matter Too grant programme, to the best of our ability during the pandemic, supporting as many families as possible.

• We have exceeded expectations of families helped across almost all our grant programmes, maintaining these different avenues of support for families across the year. The only exception is Siblings Matter Too, where we have had to reduce staff capacity to administer this programme in order to deliver higher priority grant support, although we were still able to make 290 grants to brothers and sisters of disabled or seriously ill children.

• Provide 20,960 instances of information and support to families at visits, over the phone, at events and via digital channels. We will continue to revise and update the information provided to ensure it is appropriate and fit for purpose.

• We provided a total of 38,625 instances of information and support (IaS) to families, greatly exceeding our target owing to a higher than expected number of users accessing information via our digital channels. The information provided has been reviewed regularly by colleagues, which has now been established as an Information and Support working group to further evolve our IaS offer.

• Train 460 families or young people in digital skills, including through our new Power Up programme, meeting all funder requirements.

• A total of 349 families or young people have received Digital Skills training which, although below our target, is our highest number ever in one year. In consideration of the impact of Covid-19, Good Things Foundation extended the delivery period for Power Up into Quarter 1 2021-22, recognising the impact on delivery due to the shift to virtual sessions because of the pandemic.

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Annual Report and Financial Statements 2021 | Strategic Report

• Provide support with accessing the disability element of child tax credits to 1,000 families across the UK.

• This target was greatly exceeded, with 1,757 receiving support. We are grateful to Good Things Foundation for their continued funding for this work.

• Provide an improved online application portal to allow families applying for a grant from our core grant programmes for the first time to do so online.

• This was launched during the year and has enabled an increase in the amount of applications received online, and an overall increase in the number of first-time applicants, even once families newly eligible for support due to the financial impact of the pandemic are taken into account.

• Enable and support the final development of the new grant management software to ensure that all programmes are ready to be administered in the new solution.

• The need to prioritise during the pandemic and identify immediate areas of ICT development that was required to be addressed as a matter of urgency, to ensure we were able to deliver our support to families and distribute emergency funding, resulted in a pause to our grant management software development. The project was later reassessed with an alternate direction identified following the successful implementation of ICT solutions during the pandemic for delivery in 2021-22.

• Continue to ensure the highest standards of information management and data security are embedded and adhered to in the organisation, with no major data breaches reported and the retention of our IASME Gold and Cyber Essentials Plus accreditations.

• We were pleased and proud to have retained our accreditations for these important certifications for a further year and can report no reportable breaches – which we consider a significant achievement given the rapid move to remote working, scale of applications and work undertaken by ourselves and suppliers supporting our work.

Make voices heard

By 2022 we want to be the ‘go to’ organisation for those who wish to understand the reality of life for families living on lower incomes, raising disabled or seriously ill children and young people.

In 2020/21, we said we would:

• Continue to develop our internal research capability to actively share the voice of families and aim to work to inform and influence the external policy environment.

• Our research into the impact of the pandemic on the families we support has produced regular reports across the year highlighting the issues families face, which we have shared widely with stakeholders and publicised across the UK on TV, radio and news outlets. This effort has been at the forefront of our work to better understand what the pandemic has meant for families raising disabled or seriously ill children.

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• Produce an annual report on the outcomes and impact of Family Fund grants and services

• A key area of focus within Family Fund’s overall research framework is our evaluation activity to better understand and evidence the difference that our grants and services make in the lives of disabled or seriously ill children and young people and their families. As well as being critical to our ability to secure and maintain funding, it enables the charity to review the effectiveness of the grants and services that we deliver and refine/develop our offer accordingly.

The headline findings from the evaluation are follows:

• Four in five families said that Family Fund helped them better manage their children’s care and support needs

• Seven in 10 families said that Family Fund helped them manage better financially

• Four in five families said that Family Fund helped them to do more of the things that matter to them

• Two in three families said that Family Fund helped them better access information and support

• 19 in 20 disabled children’s health and wellbeing benefitted from their grant

• 1 in 2 parent carers overall wellbeing scores improved after receiving their grant.

These outcomes and impacts have been achieved in the context of the Covid-19 pandemic, which our research has shown to have had a significant negative impact on the support available to them, their financial situation and their health and wellbeing. The value of the grants at this difficult time is demonstrated by four in five families saying that their grant helped reduce or ease the impacts of the pandemic.

• Produce research that helps understand the impact of the Covid-19 outbreak on families raising disabled children, including a second family survey to mark the changes in key outcomes compared to before the pandemic.

• Our research work has been dominated by seeking to better understand the impact of the pandemic, but we have continued to produce smaller surveys and outcome reporting for key programmes, as well as working with families to produce a number of compelling stories throughout the year that provide an insight into the everyday lives of our families during Covid-19. Our annual family survey has been a key tool in helping us to understand the changing needs of families raising disabled children and the challenges they face. Over the past year, it has been supplemented by our research into the impact of Covid-19 on disabled children and their families. This forms part of our overall research framework.

• A selection of the key findings from the Family survey include:

• Three in five of the adults in the families (59%) were not in any form of employment (an increase from 49% in 2019).

• More than two in five families (44%) said their household income had decreased in the last 12 months.

• A third of families (35%) said that their savings and investments had decreased in the last 12 months.

• Four in five families (79%) had not been on a holiday or short-break in the last six months (an increase from 50% in 2019)

- Two in five families (45%) had needed but not been able to afford new clothes in the last 12 months (an increase from 33% in 2019).

• One in three families (32%) had needed but not been able to afford sensory toys and equipment in the last 12 months (an increase from 22% in 2019).

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Reach out across the UK

By 2022 we want to be better known by families, professionals and supporters, as an organisation that improves the wellbeing of disabled and seriously ill children and young people through delivering solutions and enabling positive change.

In 2020/21, we said we would:

• Work to provide partner organisations with regular opportunities to keep updated on Family Fund support during the Coronavirus outbreak, and how they can support families to apply.

• Our team has continued to connect with colleagues in partner organisations at both a national and local level, with regular calls, webinars and email updates highlighting both what Family Fund can provide during the crisis and how that support has changed through the year. We also take the opportunity to highlight support available from others, particularly in our local-focus emails to sector contacts.

• Deliver a full year of our volunteer programme, recruiting volunteers in different roles focused on helping extend awareness of Family Fund to parent groups and support take-up of our grants and services during the Coronavirus outbreak.

• We have been greatly encouraged by the continued enthusiasm our volunteers, particularly our parent ambassadors, have shown for supporting Family Fund during what has undoubtedly been challenging circumstances. With 70 registered volunteers, our highest number ever, we have been able to connect with smaller, locally-focused groups during this time with a total of 1,468 volunteer hours committed to support us in our work.

Secure our future

By 2022 we will have strengthened our financial position and diversified our income streams.

In 2020/21 we said we would:

• Deliver the requirements of our agreements with our funders, putting ourselves in a strong position to maintain similar or increased levels of funding for 2021/22 where these have not already been agreed, including advocating for multi-year funding agreements where possible.

• We were a proactive and supportive partner to our funders throughout the year, meeting all agreement requirements. Funding was secured for 2021/22 from all government funders at the (originally agreed) levels for 2020/21, and we believe we are in a strong position to advocate for multiyear arrangements for 2022/23 onwards. We have secured multi-year funding for Family Fund Mobility Support, for the Your Opportunity grant scheme for 18-24 yearolds, and the grant scheme funded by The Marian Elizabeth Trust.

• Make the case for additional funding from all funders to meet the extra needs of families as a result of the Coronavirus outbreak, both in the short-term to relieve immediate pressure, and longer-term to meet the new financial hardship many will face.

• We successfully secured emergency funding from all government funders, totalling £15.2 million overall, which allowed us to provide tens of thousands more grants. Through sharing the evidence gathered by our Research team, we have been advocating for longer-term policies and funding to support families.

• Raise £500k through a mix of restricted and unrestricted funding from individual donors, trusts and foundations and corporate partnerships.

• We were successful in delivering £623k of funding from restricted and unrestricted funding sources. This is in addition to the funding secured from the UK governments.

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• Continue Family Fund Business Services’ (FFBS) new strategic approach to generating new customers from grant making associations, charities and benevolent associations, with a target for donated income to the charity of £990,000 in 2021/22.

• Over the last year, FFBS has had to support its’ customers to meet an exponential need for support from their beneficiaries. This support and the social value it provides enabled FFBS to generate £1.9 million in profit, which greatly exceeded expectations.

“Isla can use her iPad to connect with her teachers for classes and talk to her school friends too through a Seesaw app. It meant that, even during lockdown, she could see schoolwork and upload it for her teachers.”

Carley, mum to Isla

Financial review

For 2020/21, government grant funding has been received from the following sources:

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Children and Families Directorate,
Department for Education,
Scotland Government
England
£3.9 million
£40.8 million
(2019/20: £3.0 million)
(2019/20: £27.3 million)
Department of Health and Social Services, Department of Health,
Wales Government Northern Ireland
£518,000 £2.1 million
(2019/20: £475,000) (2019/20: £1.6 million)
Primary and Community Care Directorate,
Scotland Government
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£879,000
(2019/20: £700,000)
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We remain extremely grateful to our funders for their continued support, both in 2020/21 and the forthcoming year.

From this government funding, over 120,000 grants and services worth £46.1 million were awarded to families; with 89% of these being goods or services, rather than cash. The percentage of

cash awards has increased slightly this year due to supplier stock issues experienced during the Coronavirus pandemic and the importance of being able to respond to the immediate needs of families.

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During 2020/21, we also received grant funding from a range of other sources:

£2.5 million

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Motability million
Marian
Elizabeth Trust £200,000
Edward
Gostling
Foundation £125,000
Good Things
Foundation (Power Up) £73,000
Good Things
Foundation
(HMRC) £6,000
Private
Trusts and Foundations £24,000
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(2020: £500,000)
(2020: £200,000)
(2020: £100,000)
(2020: £30,000)
(2020: £6,000)
(2020: £9,000)
----- End of picture text -----

• £2.5 million (2020: 500,000) from Motability to continue the pilot scheme previously funded by the Motability Tenth Anniversary Trust to provide leased vehicles to families with severely disabled children under the age of three with specific mobility needs;

• £200,000 (2020: £200,000) from The Marian Elizabeth Trust to continue support for families caring for children and young adults with multiple complex significant learning and physical support needs living in Liverpool, Wirral, and the Midlands;

• £125,000 (2020: £100,000) of funding from the Edward Gostling Foundation to extend our support to families with young people aged 18-24 from our Your Opportunity scheme (the Trustees have also matched funded this scheme until such time that additional funding sources are secured);

• £73,000 (2020: £30,000) of funding from Good Things Foundation (Power Up) to improve digital skills and digital confidence to maximise and stabilise income, empowering families to improve their long-term financial health within Edinburgh and Glasgow;

• £6,000 (2020: £7,500) from Good Things Foundation (HMRC) to support families who are in receipt of tax credits to ensure that they are receiving the disabled child element of tax credits, where appropriate; and

• £24,000 (2020: £9,000) of funding from a range of private trusts and foundations to support our Siblings Matter Too scheme.

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We would like to thank all of our funders for their support during this most difficult of years, which has ensured tens of thousands of families received vital help when they needed it most.

Annual Report and Financial Statements 2021 | Strategic Report

The Group received £380,000 during 2020/21 from the new partnership with McCain Foods, although only £191,000 of this has been recognised in the year (£30,000 of restricted income, a £50,000 donation and £111,000 of unrestricted income included in the gifted profits from FFBS). The unrestricted income has subsequently been designated by the board to provide grants which help families come together at meal times.

Family Fund Trading, trading as Family Fund Business Services, had its most successful year to date and a donation of £1.9 million from the 2020/21 profits will be paid to the charity during 2021/22. This brings the total gifted profits from the last eight financial years to over £6.6 million (2020: £4.7 million).

There was an overall surplus for the year of £2.4 million (2020: £1 million); with total funds standing at £7.8 million (2020: £5.4 million) at 31 March 2021.

“When you have a disabled child, you don’t anticipate the little things going wrong, and how much it can cost to replace them. I’m so glad that services like Family Fund exist to help with these kinds of things.”

Zoe, mum to Eleanor

Fundraising

During 2020/21, our fundraising team were responsible for generating a total of £157,000 from donations, gift aid and fundraising, £380,000 from corporate donations, £36,000 of donated goods and a further £50,000 of new restricted income from new and existing funders.

We are mindful of the need to ensure our fundraising activities are undertaken in line with best practice and are a positive experience for our supporters. For these reasons, Family Fund opted not to undertake forms of fundraising

that carry higher reputational risks such as unsolicited direct mail or telephone fundraising campaigns although we continue to review this activity and opportunities to widen our supporter base. Similarly, we do not contract with any external fundraising organisations or professional fundraisers. All fundraising plans are monitored to ensure individuals do not receive excessive amounts of communications requesting support and emails are only sent to those who have explicitly opted in to receiving fundraising communications.

In order to support our planned growth in fundraising, our Trustees agreed the following split for donated income:

• 79% of donated income is used for charitable aims;

• 20% is reinvested into fundraising costs;

• 1% is used for organisational sustainability.

In the interests of improved transparency, this income split is clearly stated within our Fundraising Promise and within the fundraising pages on our website.

We have strong internal fundraising governance arrangements in place. Oversight of strategic direction on fundraising and on performance and compliance is maintained by a Fundraising Committee. Chaired by the Chief Operating Officer or Head of Fundraising, this committee meets quarterly and has a membership comprising the Group CEO, Group Director of Finance, Director of Grant Services, Head of Fundraising, Head of Audit and Compliance, Head of Communications, Communications and Marketing Manager and Managing Director of Family Fund Business Services. In addition, reports on fundraising are considered by Trustees at both the full Board and the Finance, Audit and Risk Committee, and there is a nominated Trustee to maintain oversight of fundraising activity.

Fundraising Standards

Family Fund is registered with the Fundraising Regulator and are committed to abiding by their Fundraising Promise as well as their Code of Fundraising Practice.

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Fundraising Complaints

Our fundraising complaints process is published on our main website. We remain proud of the fact that Family Fund has, to date, never received a formal complaint in respect of our fundraising activities.

Protecting Vulnerable Individuals

Family Fund is responsible in its fundraising practice and will never exploit vulnerability; doing everything possible to ensure supporters make an informed decision about any donation they choose to make. We have a Vulnerable Supporter Policy to ensure best practice is embedded throughout our fundraising work.

Family Fund does not accept donations where it has reason to believe the donor may be experiencing vulnerable circumstances and accepting the donation would be harmful to the donor or morally wrong.

costs (£1.9 million) in a restricted reserve to cover unforeseen circumstances and potential wind down costs; with the remaining £400,000 being met from our free reserves.

The current level of reserves, excluding the pension liability, is within the policy set by the Trustees and so no action is needed at this time. This will, however, remain under regular review; with any corrective action taken as appropriate.

The level of unrestricted reserves at 31 March 2021 is £2.4 million (2020: unrestricted reserves of £989,000), incorporating the pension liability that arose as a result of implementing FRS 102. We do not intend to build reserves specifically to cover this provision, as this is a long term liability for which an affordable long term repayment plan is in place.

The total funds held by the charity at the end of the reporting year are £7.8 million

Investment policy

Reserves policy

The Trustees set Family Fund’s reserves policy, which is developed through consideration of the requirements of charity law, the Charities SORP, finances, strategy and future funding needs.

We will retain reserves of not less than six months operating costs, equating to £2.3 million at 31 March 2021. The Department for Education in England permits us to retain six months operating

Family Fund strives to produce the best financial return with a minimal level of risk and will not invest restricted funding in financial instruments that may result in a loss of capital. Our Scheme of Delegated authority permits surplus cash, over and above working capital requirements, to be held in interest bearing accounts with a number of different UK banks. Bank credit ratings are regularly reviewed using the leading credit agencies of Moody’s, S&P and Fitch.

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Plans for future financial years

2021/22 is the final year of our current five-year strategy, focused around our ambition to provide 150,000 grants and services a year to families across the UK by the end of 2021/22. Whilst we have achieved that goal in this financial year, due to the significant support received from funders in response to the pandemic, we are acutely aware of the ever-increasing challenges that families raising a child or young person with a disability or serious illness will face as they aim to build back in the year ahead. With that in mind, in what we expect to be a significant year of need and support from families, we have outlined our objectives for the coming year. The final year of our strategy and objectives will need to remain fluid as we progress through the year, as the long term impact of the pandemic on our families is understood.

Transform our support

By 2022 we will not only provide practical financial help, but will also be meeting wider needs in terms of information and support. These needs will be articulated by our families and met directly by Family Fund or through appropriately sourced expertise.

In 2021/22, we will:

• Provide grants and services support, including information and signposting that recognises the extra challenges faced by families as a result of the Coronavirus outbreak.

• Continue to deliver our government-funded, grant programmes, and those grant programmes funded by trusts, foundations, and donors along with our Siblings Matter Too grant programme, supporting as many families as possible during the year.

• Provide information and support to families in person when restrictions allow, virtually, over the phone, at events and via digital channels. We will continue to revise and update the information provided to ensure it is appropriate and fit for purpose.

• Building upon our learning and achievements using technology during the pandemic, we are going to further develop our grant making

software and embrace digital as a way of doing things whilst retaining our focus on those families who are not able to access digital technologies as a way to reach support.

• Having moved to a hybrid working model during the pandemic, we will develop a future working model that embraces a blended approach to home and office based working and reflects the use of office space as a ‘hub’ and collaboration space.

• Deliver the second year of our people strategy to encourage and inspire our staff to do their best and deliver to their potential for the benefit of the Group and the families we support.

• Continue to ensure the highest standards of information management and data security are embedded and adhered to in the organisation, with no major data breaches reported and the retention of our IASME Gold audit which is scheduled for the year and maintaining our Cyber Essentials Plus accreditations.

Make voices heard

By 2022 we want to be the ‘go to’ organisation for those who wish to understand the reality of life for families living on lower incomes, raising disabled or seriously ill children and young people.

In 2021/22, we will:

• Continue to build our internal research capability to actively share the voice of families and aim to work to inform and influence those who provide funding support and the wider policy environment.

• Produce an annual report on the outcomes and impact of Family Fund grants and services by April 2022.

• Produce research that helps understand the impact of the Coronavirus outbreak on families raising disabled children; a further family survey to mark the changes in key outcomes compared to before the pandemic.

• To develop our Family Fund Group Equality, Diversity and Inclusion Strategy, commitment, vision and ambition to do more to create an inclusive society and workplace.

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Annual Report and Financial Statements 2021 | Strategic Report

Secure our future

By 2022 we will have strengthened our financial position and diversified our income streams.

In 2021/22 we will:

• Deliver the requirements of our agreements with our funders, putting ourselves in a strong position to maintain similar or increased levels of funding for 2022 onwards where these have not already been agreed, including advocating for multi-year funding agreements where possible.

• Make the case for additional funding from all funders to meet the extra needs of families as a result of the Coronavirus outbreak, both in the short-term to relieve immediate pressure, and longer-term to meet the new financial hardship many will face.

• Raise £840,000 through a mix of fundraising activities that deliver restricted and unrestricted funding from individual donors, trusts and foundations and corporate partnerships.

• Continue Family Fund Business Services’ new strategic approach to generating new customers from grant making associations, charities and benevolent associations, with a target for donated income to the charity of £990,000 in 2021/22.

“I am just so grateful that charities like Family Fund are there for people to reach out to. Having a child with special needs hits the pocket really hard, whenever you’ve had to give up a job, attend appointments all the time, things like that. It’s not easy.”

Maura, mum to Jack

Principal Risks and Uncertainties

Risk management

The Risk Management Framework and Register adopted by Family Fund follows the principles laid out in the Charity Commission guidance. This Framework has recently been reviewed to incorporate a series of risk appetite statements for the Group’s key risks. It is the responsibility of every member of the senior management team to identify and assess potential risks. The Risk Register is fully reviewed by the Board’s Finance, Audit and Risk Committee twice a year, with quarterly risk status reports presented at each meeting. Actions, systems or procedures have been established to manage those major risks to which the organisation is exposed.

The principal financial risk facing the charity and the group is the uncertainty around funding levels in future years. The majority of agreements in place provide adequate security of funding until March 2022. There is some mitigation in place to protect against this risk, as explained in the Going Concern section below.

The other financial risk to which the charity is exposed is the crystallisation of the pension liability. As the repayments under the recovery plan are affordable and the scheme still has around 90 employers, there is no short term risk; however, the Board will continue to regularly monitor the situation.

The Coronavirus pandemic poses no immediate operational risk to delivering our grant programmes over the next 12 months. Some of our grant fulfilment suppliers have been impacted by stock issues but we have been able to vary our award methods, where needed, in order to mitigate this. Organisational efficiency was slightly impacted during the first lockdown, but improvements have been made to remote working systems and processes, and additional staff brought into key operational teams where needed.

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Annual Report and Financial Statements 2021 | Strategic Report

Going concern basis

Family Fund is largely dependent upon receiving funding from the four UK Governments to maintain its grant making and information provision to families. Family Fund has worked in partnership with the UK Governments for 48 years and continues to deliver excellent value for money, ensuring more than 90p in every £1 spent is used on direct charitable expenditure. With funding for these schemes largely remaining static between 2010/11 and 2019/20, we were able to increase the number of families helped with government funded grant support during that time from 56,278 to 73,678 – a 31% increase. We have also improved our outcome reporting to funders to better evidence the impact of our work and demonstrate the ‘added value’ provided to their beneficiaries by the diversification of our funding base and the expansion of our information and support service.

In response to the pandemic, Family Fund approached all governments for further funding, sharing research that was derived from families as to the impact of Coronavirus on their health and wellbeing. This research contributed to Family Fund receiving an additional £15.2 million of funding in 2020/21 specifically in response to the unique difficulties presented by the Coronavirus pandemic, helping parents educate, entertain and look after their children.

A grant assurance review was completed by the Department for Education in 2019 to provide assurance that Family Fund is able to efficiently and effectively distribute government funding. The review concluded that:

• we have robust governance in place, with strong financial procedures and controls;

• we have a good understanding of our key risks and how to mitigate them;

• we have common policies and procedures embedded into the organisation;

• we demonstrate value for money; and

• we have sufficient skills to ensure sound financial management.

During 2019/20, Family Fund was one of only five organisations, and the only charity, to be invited to participate in the Department for Education’s Strategic Supplier Relationship Management (SSRM) programme. This programme sees the Department working collaboratively with strategic suppliers to improve delivery of government objectives and increase mutual value beyond that originally contracted. The 12 month plan was put in place for execution from April 2020 for 12 months however, due to the coronavirus pandemic, completion of the SSRM initiatives will fall into the 2021/22 financial year.

The charity has continued to deliver its purpose throughout the Coronavirus pandemic and is now delivering more support on behalf of government than in any of our 48 years. With continued good relationships with all of our government funders, commitments to continue funding through 2021/22 and a successful story to tell this year, we have every confidence that government funding will be renewed in 2022/23.

Following the successful pilot of our Mobility Support programme for families with children under three who are not eligible to receive the mobility component of DLA, we have secured a commitment from Motability to extend this project for a further three years, with £5 million of funding in each year. It is likely that this agreement will commence in quarter three of 2021/22.

Following a successful bid to the Pears Foundation, Family Fund will receive £250,000 per year for two years (starting April 2021) to support 18 to 25 year olds through our Your Opportunity grant programme. This supplements the commitment from Edward Gostling Foundation to fund £500,000 over five years to September 2023.

Family Fund’s successful partnership with McCain Foods will generate £1 million of income for the charity over the three years to November 2023.

The charity’s unrestricted reserves are positive for the second year since incorporating the pension liability in the financial statements. We do not intend to build reserves to cover this provision as there is an affordable repayment plan in place.

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Annual Report and Financial Statements 2021 | Strategic Report

Sensitised cash flow forecasts, including a severe but plausible downside scenario, have been prepared for a period greater than 12 months from approval of these financial statements demonstrating the charity having sufficient cash reserves.

Trustees, therefore, consider that the going concern assumption is an appropriate basis on which to prepare these financial statements.

Internal financial control

• The Trustees recognise that a system of internal financial control can only provide reasonable and not absolute assurance, against material misstatement or loss. The principal elements of the system of internal financial control within Family Fund Group are:

• The Finance, Audit and Risk Committee, consisting of five Trustees, to consider all significant internal financial control matters for the Group;

• Delegated authority procedures, which are reviewed annually, set out the authorisation levels for the commitment, approval and payment of all expenditure;

• Monthly Financial Reports to the relevant Board, highlighting the reasons for any significant variances between the budget for the financial year and the actual out-turn;

• Appropriate staff employed to carry out the day-to-day work of Family Fund Group with an appropriate staff structure; and

• A quarterly report on internal controls to the Finance, Audit and Risk Committee and the Family Fund Business Services Board.

The Finance, Audit and Risk Committee have the following responsibilities, which are subsequently reported to the Board:

• To review and approve the Group financial and internal control systems;

• To review and approve the charity’s scheme of delegated authority, with the scheme of delegated authority for Family Fund Business Services being reviewed and approved by the Family Fund Business Services Board;

• To approve all Group financial and accounting policies;

• To review the financial content of the charity’s corporate plan and the annual budget;

• To review monthly financial performance of the charity and ensure adherence to the annual budget;

• To review Family Fund Business Services’ financial performance and progress against the business plan;

• To review compliance with Financial Conduct Authority (FCA) regulation;

• To review the Group risk management framework, risk register and risk appetite statements;

• To review the levels and types of insurance cover in place for the Group;

• To review the Group disaster recovery and business continuity plans;

• To review the crisis recovery plan;

• To review Group information security policies and procedures, along with the results of information governance assurance testing;

• To review draft annual financial statements for the Group to ensure compliance with appropriate accounting standards and to be responsible for all other audit matters;

• To review and approve the Group commercial contracts and agreements register to ensure that all contracts are in the best interest of the Group;

• To review and approve the relationship agreement between Family Fund and Family Fund Business Services; and

• To review and approve Reserved Matters of Family Fund Business Services.

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Annual Report and Financial Statements 2021 | Strategic Report

Provision of information to auditors

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

• so far as that trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware, and

• that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any information needed by the charitable company’s auditors in connection with preparing its report and to establish that the charitable company’s auditors are aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

We focus on communicating effectively and listening well, and we have used a range of channels and surveys this year in addition to our staff engagement framework to ensure staff are engaged and heard in our new blended working model through the pandemic.

It is our policy to support the employment of disabled people, both in recruitment and by retention of employees who are disabled or who become disabled whilst in the employment of Family Fund, as well as generally through training and career development. We are proud to be accredited as a Disability Confident Employer by the Department for Work and Pensions, to be an equal opportunities employer and accredited as a Living Wage Employer.

Independent Auditors

Employee information

Family Fund’s vision is to be a great place to work, for great people and to be a local employer of choice in the charity sector. This year we have made great strides towards this vision. With our staff, we have focused on working together effectively and demonstrating our values in all we do - these are Supportive, Connected, Passionate and Determined. Our Values Champions role model these values and share stories that showcase them for all staff.

PricewaterhouseCoopers LLP have been appointed for a five year term, commencing 2018/19.

The Trustees’ Report, including the Strategic Report, was approved by the Board and signed on its behalf by:

Neil Scott

Chair of Trustees

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Annual Report and Financial Statements 2021 | Auditor’s Report

Independent Auditor’s Report to the Members and Trustees of Family Fund Trust

Report on the audit of the financial statements

Opinion

In our opinion, Family Fund Trust’s group financial statements and charity financial statements (the financial statements”):

• give a true and fair view of the state of the group’s and of the charity’s affairs as at 31 March 2021 and of the group’s and charity’s incoming resources and application of resources, including its income and expenditure, and of the group’s cash flows, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of The Charities Accounts (Scotland) Regulations 2006 (as amended).

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the group and charity balance sheets as at 31 March 2021; the consolidated and charity statements of financial activities including the consolidated and charity income and expenditure accounts, the consolidated cash flow statement for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the group and charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and charity’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

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.

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Annual Report and Financial Statements 2021 | Auditor’s Report

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group’s and charity’s ability to continue as a going concern.

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

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material

inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Strategic Report and Trustees’ Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 and The Charities Accounts (Scotland) Regulations 2006 (as amended) require us also to report certain opinions and matters as described below.

Strategic Report and Trustees’ Report

In our opinion, based on the work undertaken in the course of the audit the information given in the Trustees’ Report, including the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Strategic Report and the Trustees’ Report have been prepared in accordance with applicable legal requirements.

In addition, in light of the knowledge and understanding of the group and charity and its environment obtained in the course of the audit, we are required to report if we have identified any material misstatements in the Strategic Report and the Trustees’ Report. We have nothing to report in this respect.

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Annual Report and Financial Statements 2021 | Auditor’s Report

Responsibilities for the financial statements and the audit Responsibilities of the trustees for the financial statements

As explained more fully in the statement of trustees’ responsibilities in respect of the financial statements, the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they 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 group’s and charity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group and charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under section 44(1) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

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

Based on our understanding of the group and charity, we identified that the principal risks of noncompliance with laws and regulations related to the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries. Audit procedures performed included:

• Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

• Evaluation of management’s controls designed to prevent and detect fraudulent financial reporting.

• Reviewing minutes of meetings of those charged with governance; and

• Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

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Annual Report and Financial Statements 2021 | Auditor’s Report

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the charitable company’s members and trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006 and regulations made under those Acts (regulation 10 of The Charities Accounts (Scotland) Regulations 2006 (as amended) and Chapter 3 of Part 16 of the Companies Act 2006) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Matters on which we are required to report by exception

Under the Companies Act 2006 and The Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion:

• we have not obtained all the information and explanations we require for our audit; or

• adequate and proper accounting records have not been kept by the charity or returns adequate for our audit have not been received from branches not visited by us; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• the charity financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Andrew McIntosh (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors Leeds

20 September 2021

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Annual Report and Financial Statements 2021

Consolidated Statement of Financial Activities

(including consolidated income and expenditure account)

Year ended 31 March 2021

Note INCOME FROM: Charitable activities Funding for grants and services 3 Other income Donations, Gift Aid and fundraising Other trading activities Trading income Investments Interest receivable TOTAL INCOME EXPENDITURE ON: Cost of delivering grants and services to families 4 Grants and services to families 5 Discretionary grants 5 Less discounts receivable 5 Support costs 6 Raising funds Trading costs Fundraisingcosts TOTAL EXPENDITURE Net (expense)/income before tax Taxation Net (expense)/income for the year Transfer between funds 15 Net movement in funds RECONCILIATION OF FUNDS: Total funds brought forward Net movement in funds for the year Total funds carried forward 15	Unrestricted funds £’000 - - 391 391 3,864 10 4,265 (2,475) (186) - - (2,156) (4,817) (1,843) - (6,660) (2,395) - (2,395) 3,772 1,377 990 1,377 2,367	Designated funds £’000 - - - - - - - (555) (133) (2) 7 (50) (733) - (184) (917) (917) - (917) 1,584 667 1,468 667 2,135	Restricted funds £’000 51,054 30 37 51,121 - 19 51,140 - (48,574) - 3,184 - (45,390) - - (45,390) 5,750 - 5,750 (5,356) 394 2,931 394 3,325	Total funds 2021 £’000 51,054 30 428 51,512 3,864 29 55,405 (3,030) (48,893) (2) 3,191 (2,206) (50,940) (1,843) (184) (52,967) 2,438 - 2,438 - 2,438 5,389 2,438 7,827	Total funds 2020 £’000*
					33,900 - 156
					34,056 2,816 102
					36,974
					(2,333) (32,557) (50) 2,825 (2,093)
					(34,208) (1,567) (158)
					(35,933)
					1,041 -
					1,041 -
					1,041
					4,348 1,041
					5,389

There were no recognised gains or losses other than the net income for the year. All income and expenditure derives from continuing activities. See note 20 for comparative Consolidated Statement of Financial Activities analysed by funds.

• Restated – see note 6

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Annual Report and Financial Statements 2021

Charity Statement of Financial Activities Year ended 31 March 2021

(including income and expenditure account)

Note INCOME FROM: Charitable activities Funding for grants and services 3 Other income Donations, Gift Aid and fundraising Investments Interest receivable TOTAL INCOME EXPENDITURE ON: Cost of delivering grants and services to families 4 Grants and services to families 5 Discretionary grants 5 Less discounts receivable 5 Support costs 6 Raising funds Fundraisingcosts TOTAL EXPENDITURE Net (expense)/income for the year Transfer between funds 15 Net movement in funds RECONCILIATION OF FUNDS: Total funds brought forward Net movement in funds for the year Total funds carried forward 15	Unrestricted funds £’000 - 111 2,320 2,320 8 2,328 (2,471) (186) - - (2,066) (4,723) - (4,723) (2,395) 3,772 1,377 989 1,377 2,366	Designated funds £’000 - - - - - - (555) (133) (2) 7 (50) (733) (184) (917) (917) 1,584 667 1,468 667 2,135	Restricted funds £’000 51,054 30 37 51,121 19 51,140 - (48,574) - 3,184 - (45,390) - (45,390) 5,750 (5,356) 394 2,931 394 3,325	Total funds 2021 £’000 51,054 141 2,357 53,441 27 53,468 (3,026) (48,893) (2) 3,191 (2,116) (50,846) (184) (51,030) 2,438 - 2,438 5,388 2,438 7,826	Total funds 2020 £’000*
					33,900 - 2,076
					35,976 91
					36,067
					(2,330) (32,557) (50) 2,825 (2,008)
					(34,120) (158)
					(34,278)
					1,789 -
					1,789
					3,599 1,789
					5,388

There were no recognised gains or losses other than the net income for the year. All income and expenditure derives from continuing activities. See note 21 for comparative Charity Statement of Financial Activities analysed by funds.

• Restated – see note 6

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Annual Report and Financial Statements 2021

Balance Sheets

At 31 March 2021

Balance Sheets At 31 March 2021
Note FIXED ASSETS Tangible assets 9 CURRENT ASSETS Debtors 11 Cash at bank and in hand 12 LIABILITIES Creditors: amounts falling due within one year 13 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES Creditors: amounts falling due after one year Provision for other liabilities Post-employment benefts 14 TOTAL NET ASSETS FUNDS Unrestricted funds Designated funds Restricted funds TOTAL FUNDS 15,16	Group 2021 £’000 2020 £’000 123 247 123 247 5,596 2,766 22,900 12,996 28,496 15,762 (19,793) (9,534) 8,703 6,228 8,826 6,475 (64) (57) (935) (1,029) 7,827 5,389 2,367 990 2,135 1,468 3,325 2,931 7,827 5,389	Charity
	2021 £’000	2021 £’000	2020 £’000
	123 123 5,596 22,900 28,496 (19,793) 8,703 8,826 (64) (935) 7,827 2,367 2,135 3,325 7,827	121 121 2,669 19,957 22,626 (13,922) 8,704 8,825 (64) (935) 7,826 2,366 2,135 3,325 7,826	244
			244 1,887 11,314 13,201 (6,971)
			6,230
			6,474 (57) (1,029)
			5,388
			989 1,468 2,931
			5,388

These financial statements of The Family Fund Trust registered number 3166627 were approved by the Board of Trustees and authorised for issue on, and were signed on its behalf by:

Neil Scott Chair of Trustees

Cheryl Ward Chief Executive

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Annual Report and Financial Statements 2021 | Consolidated Cash Flow Statement

Consolidated Cash Flow Statement Year ended 31 March 2021

Note Net cash fows from operatingactivities 19 Cash fows from investing activities: Interest receivable Purchase of property, plant and equipment Net cash fows from investingactivities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at the end of theyear 12 Note Net cash fows from operatingactivities 19 Cash fows from investing activities: Interest receivable Purchase of property, plant and equipment Net cash fows from investingactivities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at the end of theyear 12	2021 Unrestricted funds £’000 2,100 10 (1) 9 2,109 2,485 4,594 2020 Unrestricted funds £’000 (351) 27 (171) (144) (495) 2,980 2,485	2021 Designated funds £’000 667 - - - 667 1,521 2,188 2020 Designated funds £’000 211 - - - 211 1,310 1,521	2021 Restricted funds £’000 7,109 19 - 19 7,128 8,990 16,118 2020 Restricted funds £’000 (721) 75 - 75 (646) 9,636 8,990	2021 Total funds £’000
				9,876
				29 (1)
				28
				9,904 12,996
				22,900
				2020 Total funds £’000
				(861)
				102 (171)
				(69)
				(930) 13,926
				12,996

44 |

Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Notes to the Financial Statements

Year ended 31 March 2021

1. Accounting Policies

Company and charitable status

Family Fund Trust (“Family Fund”), a public benefit entity, is incorporated in England and Wales as a company limited by guarantee not having a share capital. In August 2019, the charity changed its corporate name (previously The Family Fund Trust for Families with Severely Disabled Children) and also amended its Objects to enable support to be given to a wider range of beneficiaries. There are currently twelve Trustees who are also the members of the company. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £10. Family Fund is a registered charity. The registered office is shown on page 58.

Basis of accounting

The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102), effective 1 January 2015; the Companies Act 2006; the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

Family Fund has availed itself of chapter 4 section 396 of the Companies Act 2006 and adapted the Companies Act formats to reflect the special nature of our activities.

The Company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements in relation to presentation of a cash flow statement.

The principal accounting policies are set out below.

Preparation of financial statements - going concern basis

Family Fund is largely dependent upon receiving funding from the four UK Governments to maintain its grant making and information provision to families. Family Fund has worked in partnership with the UK Governments for 48 years and continues to deliver excellent value for money, ensuring more than 90p in every £1 spent is used on direct charitable expenditure. With funding for these schemes largely remaining static between 2010/11 and 2019/20, we were able to increase the number of families helped with government funded grant support during that time from 56,278 to 73,678 – a 30% increase. We have also improved our outcome reporting to funders to better evidence the impact of our work and demonstrate the ‘added value’ provided to their beneficiaries by the diversification of our funding base and the expansion of our information and support service.

In response to the pandemic, Family Fund approached all governments for further funding, sharing research that was derived from families as to the impact of Coronavirus on their health and wellbeing. This research

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

contributed to Family Fund receiving an additional £15.2 million of funding in 2020/21 specifically in response to the unique difficulties presented by the Coronavirus pandemic, helping parents educate, entertain and look after their children.

A grant assurance review was completed by the Department for Education in 2019 to provide assurance that Family Fund is able to efficiently and effectively distribute government funding. The review concluded that:

• we have robust governance in place, with strong financial procedures and controls;

• we have a good understanding of our key risks and how to mitigate them;

• we have common policies and procedures embedded into the organisation;

• we demonstrate value for money; and

• we have sufficient skills to ensure sound financial management.

During 2019/20, Family Fund was one of only five organisations, and the only charity, to be invited to participate in the Department for Education’s Strategic Supplier Relationship Management (SSRM) programme. This programme sees the Department working collaboratively with strategic suppliers to improve delivery of government objectives and increase mutual value beyond that originally contracted. The 12 month plan was put in place for execution from April 2020 for 12 months however, due to the coronavirus pandemic, completion of the SSRM initiatives will fall into the 2021/22 financial year.

The charity has continued to deliver its purpose throughout the Coronavirus pandemic and is now delivering more support on behalf of government than in any of our 48 years. With continued good relationships with all of our government funders, commitments to continue funding through 2021/22 and a successful story to tell this year, we have every confidence that government funding will be renewed in 2022/23.

Following the successful pilot of our Mobility Support programme for families with children under three who are not eligible to receive the mobility component of DLA, we have secured a commitment from Motability to extend this project for a further three years, with £5 million of funding in each year. It is likely that this agreement will commence in quarter three of 2021/22.

Following a successful bid to the Pears Foundation, Family Fund will receive £250,000 per year for two years (starting April 2021) to support 18 to 25 year olds through our Your Opportunity grant programme. This supplements the commitment from Edward Gostling Foundation to fund £500,000 over five years to September 2023.

Family Fund’s successful partnership with McCain Foods will generate £1 million of income for the charity over the three years to November 2023.

The charity’s unrestricted reserves are positive for the second year since incorporating the pension liability in the financial statements. We do not intend to build reserves to cover this provision as there is an affordable repayment plan in place.

Sensitised cash flow forecasts, including a severe but plausible downside scenario, have been prepared for a period greater than 12 months from approval of these financial statements demonstrating the charity having sufficient cash reserves.

Trustees, therefore, consider that the going concern assumption is an appropriate basis on which to prepare these financial statements.

46 |

Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Basis of consolidation

Group financial statements have been prepared in respect of Family Fund and its wholly owned subsidiary undertaking Family Fund Trading Limited. These financial statements have been consolidated on a line by line basis and the results of the subsidiary undertaking are disclosed in note 10.

Income

Income is recognised when the charity and subsidiary have entitlement to the funds; any performance conditions attached to the item(s) of income have been met; it is probable that the income will be received and the amount can be measured reliably.

Income is received as grant funding in accordance with the funding agreements between Family Fund and its funding bodies.

Donations include all income received by the charity that is made on a voluntary basis, along with related gift aid income and income from a small number of fundraising events organised by the charity.

Interest is accrued to the balance sheet date.

Donated goods and services

Donated goods, professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated goods, professional services and donated facilities are recognised on the basis of the value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain goods, services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the financial year of receipt.

Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT, where this cannot be recovered.

Expenditure on raising funds includes the costs incurred in generating fundraising income and trading costs.

Family Fund’s primary charitable activity is to deliver grants and services to families with severely disabled children. Expenditure on charitable activities includes:

• costs of delivering grants and services to families, being the direct costs associated with the processing of applications or providing services;

• grants given to families, which are recognised as expenditure based on the date of the grant award. Any discounts on goods and services provided to families, receivable up to the balance sheet date, are credited against grants provided to families in the Statement of Financial Activities;

• services to families, being the costs of information provision and support to the whole family;

• support costs, which include central functions and governance costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include legal and audit fees, together with Trustees’ expenses. Support costs are not allocated to fundraising activities, as a significant proportion of these relate to fulfilling our obligations under our restricted funding agreements.

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Fund accounting

Restricted funds are funds subject to specific restrictions imposed by the funding authorities. These funds are not available for the Trustees to apply at their discretion. The purpose and use of the restricted funds is set out in the notes to the financial statements.

Designated funds are funds approved by Trustees to develop and deliver enhanced support for beneficiaries, and to secure the ongoing sustainability of the organisation.

Taxation

The parent company is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

Current tax for the subsidiary company, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in financial years different from those in which they are recognised in the financial statements.

A net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured at the average tax rates that are expected to apply in the financial year in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost, net of depreciation.

Tangible fixed assets over £1,000 are initially included at their cost of acquisition, including costs that are directly attributable to bringing the assets into working condition for their intended use.

Donated, functional fixed assets are included at a valuation made by the Trustees. Where the use of these assets is unrestricted they are included in a designated fund reflecting their book value.

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets over their expected useful lives from the date of installation. The rates generally applicable are:

----- Start of picture text -----
Leasehold improvements Straight line over the lease term
Furniture and equipment 5 years straight line
Computer equipment and software 4 years straight line
----- End of picture text -----

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Employee benefits - Pensions

Family Fund participates in the Scottish Voluntary Sector Pension Scheme. This scheme was closed to future accrual on 31 March 2010. The assets of the scheme are held separately in a fund administered for the benefit of the individual participating employees. The scheme is a multi-employer defined benefit final salary scheme where the share of the assets and liabilities applicable to each employer is not identified. Accordingly, these financial statements recognise a liability for the present value of contributions payable under the recovery plan. The present value is calculated using a discount rate 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. This discount rate has been adopted due to restrictions on borrowing within some grant funding agreements preventing this being used to calculate an alternative rate. The unwinding of the discount rate is recognised as a finance cost within support costs.

We also participate in TPT Retirement Solutions’ Growth Plan; another scheme where the assets and liabilities applicable to each employer cannot be separately identified. As such, these financial statements also recognise a liability for the present value of contributions payable under the recovery plan. The present value is calculated using a discount rate 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. The unwinding of the discount rate is recognised as a finance cost within support costs.

In place of the previous defined benefit schemes, we introduced a Group Personal Pension Plan administered by Scottish Widows in April 2010 which is a defined contribution scheme. This scheme is funded by contributions from employees and the charity/subsidiary as employer. The amount charged to the Statement of Financial Activities in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown either as accruals or prepayments in the balance sheet.

Financial instruments

The charity and group only have 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.

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.

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

deposit accounts with a duration of over 3 months are treated as cash equivalents as the deposits have no significant risk of a change in value as a result of an early withdrawal.

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.

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure.

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

3. Funding for Grants and Services

During the year, funding was received from the following sources for the group and charity’s single charitable activity:

2021 Government grants England Northern Ireland Scotland Take a Break Scotland Wales Other sources of funding Motability Marian Elizabeth Trust Edward Gostling Foundation Good Things Foundation - Power Up Good Things Foundation/HMRC Other trust/foundation funding	Unrestricted £’000 - - - - - - - - - - - - -	Designated £’000 - - - - - - - - - - - - -	Restricted £’000 40,823 2,052 3,854 879 518 48,126 2,500 200 125 73 6 24 51,054	2021 Total £’000
				40,823 2,052 3,854 879 518
				48,126 2,500 200 125 73 6 24
				51,054

2020 Government grants England Northern Ireland Scotland Take a Break Scotland Wales Other sources of funding Motability Marian Elizabeth Trust Edward Gostling Foundation Digital Skills – Power Up Good Things Foundation/HMRC Other trust/foundation funding	Unrestricted £’000 - - - - - - - - - - - - -	Designated £’000 - - - - - - - - - - - - -	Restricted £’000 27,323 1,572 2,983 700 475 33,053 500 200 100 30 8 9 33,900	2020 Total £’000
				27,323 1,572 2,983 700 475
				33,053
				500 200 100 30 8 9
				33,900

The government funding departments are detailed within the Financial Review section of the Strategic Report. There are no unfulfilled conditions or other contingencies attached to the grants that have been recognised in income for the year.

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

4. Cost of Delivering Grants and Services to Families

The direct cost of delivering grants and services to families comprises of staff costs relating to the assessment and processing of grant applications. All costs are paid out of unrestricted funds; with a funds transfer from each funder to settle their share of the costs.

2021: Group and charity Siblings Matter Too Transform Our Support Making voices heard Head Ofce 2020: Group and charity Siblings Matter Too Transform Our Support Making voices heard Head Ofce*	Unrestricted £’000 - - - 2,475 2,475 Unrestricted £’000 - - - 1,888 1,888	Designated £’000 10 320 115 110 555 Designated £’000 10 299 97 39 445	Restricted £’000 - - - - - Restricted £’000 - - - - -	2021 Total £’000
				10 320 115 2,585
				3,030
				2020 Total £’000
				10 299 97 1,927
				2,333

• Restated – see note 6

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

5. Grants and Services to Families

2021: Group and charity Grants Computers Recreation/Home Entertainment Holidays and Outings White Goods Furniture Other Jet bath Clothing and Bedding Hospital VisitingCosts Total grants Services Digital training sessions Tax credit advice TransformingSupport Discretionary grants Less discount receivable 2020: Group and charity Grants Holidays and Outings Recreation/Home Entertainment Computers Clothing and Bedding Furniture White Goods Hospital Visiting Costs Jet Bath Other Total grants Services Digital training sessions Tax credit advice TransformingSupport Discretionary grants Less discount receivable	Unrestricted funds £’000 - - - - - - - - - - 186 - - 186 - - 186 Unrestricted funds £’000 - - - - - - - - - - 59 - - 59 - - 59	Designated funds £’000 62 24 3 12 13 8 4 7 - 133 - - - 133 2 (7) 128 Designated funds £’000 3 9 12 6 7 10 - 1 3 51 3 - - 54 50 (3) 101	Restricted funds £’000 13,070 9,455 8,986 5,082 3,055 2,877 2,827 2,074 605 48,031 16 6 521 48,574 - (3,184) 45,390 Restricted funds £’000 13,453 4,070 6,231 1,200 1,813 2,896 713 727 681 31,784 - 8 652 32,444 - (2,822) 29,622	2021 Total funds £’000
				13,132 9,479 8,989 5,094 3,068 2,885 2,831 2,081 605
				48,164 202 6 521
				48,893 2 (3,191)
				45,704
				2020 Total funds £’000
				13,456 4,079 6,243 1,206 1,820 2,906 713 728 684
				31,835 62 8 652
				32,557 50 (2,825)
				29,782

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

5. Grants and Services to Families (continued)

2021: Grants and services analysed by funding stream England Northern Ireland Scotland Wales Take a Break Scotland Marian Elizabeth Trust Wales Essentials Motability Tenth Anniversary Trust Good Things Foundation/ HMRC Edward Gostling Foundation Siblings Matter Too Designated Funds Digital Skills Donated Goods Donated Services 2020: Grants and services analysed by funding stream England Northern Ireland Scotland Wales Take a Break Scotland Marian Elizabeth Trust Wales Essentials Motability Tenth Anniversary Trust Good Things Foundation/ HMRC Edward Gostling Foundation Siblings Matter Too Designated Funds Donated Services	Unrestricted £’000 - - - - - - - - - - - - - - 186 186 Unrestricted £’000 - - - - - - - - - - - - 59 59	Designated £’000 - - - - - - - - - - 2 133 - - - 135 Designated £’000 - - - - - - - - - - 50 54 - 104	Restricted £’000 39,360 1,856 3,606 477 765 256 - 2,027 6 157 12 - 16 36 - 48,574 Restricted £’000 26,766 1,420 2,806 436 588 246 8 69 8 94 3 - - 32,444	2021 Total £’000
				39,360 1,856 3,606 477 765 256 - 2,027 6 157 14 133 16 36 186
				48,895
				2020 Total £’000
				26,766 1,420 2,806 436 588 246 8 69 8 94 53 54 59
				32,607

54 |

Annual Report and Financial Statements 2021 | Notes to the Financial Statements

5. Grants and Services to Families (continued)

2021: Number of Grants/Services Grant support: England Northern Ireland Scotland Wales Take a Break Scotland Siblings Matter Too Marian Elizabeth Trust Motability Your Opportunity Connect Scotland – Donated Goods Services: Digital training sessions Tax credit advice Information, advice and support 2020: Number of Grants/Services Grant support: England Northern Ireland Scotland Wales Take a Break Scotland Siblings Matter Too Marian Elizabeth Trust Wales Essentials Motability Tenth Anniversary Trust Your Opportunity Services: Digital training sessions Tax credit advice Information, advice and support	Unrestricted No. - - - - - - - - - - - 333 - - 333 Unrestricted No. - - - - - - - - - - - 317 - - 317	Designated No. - - - - - 43 - - 331 - 374 2 1,579 24,785 26,740 Designated No. - - - - - 985 - - - 140 1,125 6 1,050 4,599 6,780	Restricted No. 90,791 5,426 8,468 1,301 2,660 247 646 184 383 57 110,163 38 178 11,710 122,089 Restricted No. 62,254 4,114 6,324 986 2,156 60 569 31 18 225 76,737 - 311 8,440 85,488	2021 No.
				90,791 5,426 8,468 1,301 2,660 290 646 184 714 57
				110,537 373 1,757 36,495
				149,162
				2020 No.
				62,254 4,114 6,324 986 2,156 1,045 569 31 18 365
				77,862 323 1,361 13,039
				92,585

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

6. Support Costs

The breakdown of support costs attributable to the charitable activities of Family Fund are as follows:

2021: Group and charity Development and Engagement Governance costs HR costs Finance and ofce costs Finance cost – unwinding of pension discount Pension costs – changes to assumptions Pension costs – amendments to contributions schedule Depreciation/loss on disposal Total – charity (net of management income) Management charge Total –group	Unrestricted funds £’000 460 105 294 1,119 24 42 - 22 2,066 90 2,156	Designated funds £’000 18 12 8 5 - - - 7 50 - 50	Restricted funds £’000 - - - - - - - - - - -	Total funds 2021 £’000
				478 117 302 1,124 24 42 - 29
				2,116 90
				2,206

Management income and charge is the recharge of certain costs from Family Fund to Family Fund Trading Limited, which are eliminated on consolidation. £483,000 of ICT costs have been reclassified as head office costs within costs of delivering grants and services to families to better reflect the nature of these costs.

2020: Group and charity Development and Engagement Governance costs HR costs Finance and ofce costs Finance cost – unwinding of pension discount Pension costs – changes to assumptions Pension costs – amendments to contributions schedule Depreciation/loss on disposal Total – charity (net of management income) Management charge Total –group	Unrestricted funds £’000 487 88 227 1,151 16 (37) - 35 1,967 85 2,052	Designated funds £’000 20 7 6 - - - - 8 41 - 41	Restricted funds £’000 - - - - - - - - - - -	Total funds 2020 £’000
				507 95 233 1,151 16 (37) - 43
				2,008 85
				2,093

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

7. Net (Expense)/Income for the Year

7. Net (Expense)/Income for the Year
Net (expense)/income is stated after charging: Depreciation of owned assets Loss on disposal of assets Finance cost – unwinding of discount Rentals under operating leases - land and buildings Auditors’ remuneration: - Fees payable to the charity’s auditors for the audit of the charity’s annual fnancial statements - Fees payable to the charity’s auditors for the audit of the charity’s subsidiary Other services: - taxation compliance services - taxation advisory services in 2020 - other non-audit assurance	2021 £’000 31 94 24 208 20 11 3 14 4	2020 £’000
		38 9 16 243 19 10 3 - 2

8. Analysis of Staff Costs, Trustee Remuneration and Expenses, and the Cost of Key Management Personnel

The average number of full time equivalent staff employed by the Group during the year was 179 (2020: 147).

Their aggregate remuneration comprised: Wages and salaries Social security costs Pension costs	Group 2021 £’000 2020 £’000 4,568 3,725 390 331 314 273 5,272 4,329	Charity	Charity
	2021 £’000	2021 £’000 3,493 330 277 4,100	2020 £’000
	4,568 390 314 5,272		2,823 269 235
			3,327

The number of Group employees whose emoluments, excluding pension contributions and employers’ national insurance, but including benefits in kind, were in excess of £60,000 was:

insurance, but including benefts in kind, were in excess of £60,000 was:
£60,000 - £70,000 £70,000 - £80,000 £100,000 - £110,000 £110,000 - £120,000 £120,000 -£130,000	2021 No. 2 2 - - 1	2020 No.
		3 1 - 1 -

The key management personnel of the Group are Cheryl Ward (Group Chief Executive), Claire Locker (Group Director of Finance), James Turton (Chief Operating Officer – resigned 31 March 2021), Ben Calverley (Director of Grant Services), Andrew Harper (Director of Partnerships, Public Affairs and Family Outcomes), John Mawson (Group Director of Technology and Digital), Tracy Evans (Group Director of HR and Facilities) and Jill Wheeler (Managing Director of Family Fund Business Services). The total remuneration (including pension contributions and employers’ national insurance) of the key management personnel for the year totalled £676k (2020: £653k).

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Trustees’ Remuneration

No trustees received remuneration during the current or prior year. Total travel and subsistence expenses of £nil (2020: £16,317) were paid to 12 trustees (2020: 11 trustees). No trustee received payment for professional or other services supplied to the charity (2020: £nil).

9. Tangible Assets

9. Tangible Assets
Group Cost At 1 April 2020 Additions Disposals At 31 March 2021 Accumulated depreciation At 1 April 2020 Charge for the year Disposals At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 Charity Cost At 1 April 2020 Additions Disposals At 31 March 2021 Accumulated depreciation At 1 April 2020 Charge for the year Disposals At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Leasehold improvements £’000 195 1 (24) 172 90 11 (24) 77 95 105 Leasehold improvements £’000 195 1 (24) 172 90 11 (24) 77 95 105	Furniture and equipment £’000 19 - - 19 5 3 - 8 11 14 Furniture and equipment £’000 19 - - 19 5 3 - 8 11 14	Computer equipment and software £’000 390 - (94) 296 262 17 - 279 17 128 Computer equipment and software £’000 283 - (94) 189 158 16 - 174 15 125	Total £’000
				604 1 (118)
				487
				357 31 (24)
				364
				123
				247
				Total £’000
				497 1 (118)
				380
				253 30 (24)
				259
				121
				244

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

10. Fixed Asset Investments

Charity Cost At 1 April and 31 March	2021 £ 1	2020 £
		1

The company owns the entire issued ordinary share capital of Family Fund Trading Limited, a company incorporated and registered in England and Wales, whose registered office address is Unit 4, Alpha Court, Monks Cross Drive, Huntington, York, YO32 9WN. Family Fund Trading’s principal activity is to work with its parent undertaking to find new ways to support and make a difference to all families that care for a disabled child or young person.

The result of Family Fund’s trading activities through its subsidiary undertaking is detailed below. Family Fund Trading Limited’s taxable profits are generally donated to the charity annually.

Turnover Cost of sales Gross proft Administrative expenses Operating proft Finance income (net) - interest receivable Proft before taxation Gift aid distribution Tax on proft Retained loss for the year The aggregate of the assets and liabilities was: Fixed assets Current assets Current liabilities Net assets	2021 £’000 3,864 (553) 3,311 (1,384) 1,927 2 1,927 (1,929) - - 2021 £’000 2 7,533 (7,534) 1	2020 £’000
		2,816 (384)
		2,432 (1,271)
		1,161 11
		1,172 (1,920) -
		(748)
		2020 £’000
		3 3,750 (3,752)
		1

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

11. Debtors

Trade debtors Amounts owed by subsidiary undertaking Prepayments and accrued income	Group 2021 £’000 2020 £’000 3,854 1,478 - - 1,742 1,288 5,596 2,766	Charity	Charity
	2021 £’000	2021 £’000	2020 £’000
	3,854 - 1,742 5,596	- 1,695 974 2,669	- 1,189 698
			1,887

12. Analysis of Cash and Cash Equivalents

Cash in hand Notice deposits (more than 3 months) Total cash and cash equivalents	Group 2021 £’000 2020 £’000 22,900 11,746 - 1,250 22,900 12,996	Group 2021 £’000 2020 £’000 22,900 11,746 - 1,250 22,900 12,996
		2020 £’000
		11,746 1,250 12,996

13. Creditors: Amounts falling due within one year

Accruals for grants payable Trade creditors Deferred income Other taxation and social security Other creditors Deferred income Brought forward Released in the year Deferred in the year Carried forward	Group 2021 £’000 2020 £’000 11,390 6,629 4,656 2,334 2,337 136 611 260 799 175 19,793 9,534 Group 2021 £’000 2020 £’000 136 133 (136) (133) 2,337 136 2,337 136	Charity	Charity
		2021 £’000	2020 £’000
		11,390 180 2,186 100 66 13,922	6,629 203 - 72 67
			6,971
		Charity
	2021 £’000	2021 £’000	2020 £’000
	136 (136) 2,337 2,337	- - 2,186 2,186	- - -
			-

Deferred income for the trading subsidiary comprises of fees for using the company’s online fulfilment portal as well as treasury management fee income, which are invoiced to customers in March 2021, but relate to the financial year April 2021 to March 2022. Deferred income in the charity relates to the early receipt of funding from the Department for Education that relates to the financial year starting 1 April 2021.

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

14. Post-employment Benefits

Defined benefit schemes

TPT Retirement Solutions – Scottish Voluntary Sector Pension Scheme (SVSPS)

The charity participates in the scheme, a multi-employer scheme which provides benefits to around 90 nonassociated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity 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.

TPT Retirement Solutions – The Growth Plan

The charity participates in the scheme, a multi-employer scheme which provides benefits to some 930 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity 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 schemes are both classified as a ‘last-man standing arrangement’. Therefore the charity 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.

Summary of defined benefit pension schemes

The total movement in the year on the defined benefit pension schemes is shown in the table below:

Pension liability at 1 April 2020 Defcit contributionspaid in theyear Finance cost - unwindingof pension discount Pension cost - changes to assumptions Pension cost - changes to contribution schedule Pension liability at 31 March 2021	SVSPS £’000 998 (153) 23 41 - 909	Growth Plan £’000 31 (7) 1 1 - 26	Total 2021 £’000
			1,029 (160)
			24
			42 -
			935

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Pension liability at 1 April 2019 Defcit contributionspaid in theyear Finance cost - unwindingof pension discount Pension cost - changes to assumptions Pension cost - changes to contribution schedule Pension liability at 31 March 2020	SVSPS £’000 1,167 (149) 16 (36) - 998	Growth Plan £’000 38 (6) - (1) - 31	Total 2020 £’000
			1,205 (155)
			16
			(37) -
			1,029

Deficit contributions – The Scottish Voluntary Pension Scheme

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed total scheme assets of £120.0 million, liabilities of £145.9 million and a deficit of £25.9 million. To eliminate this funding shortfall, the Scheme Trustee asked the participating employers to pay additional contributions to the scheme. Family Fund’s contributions to the scheme from 1 April 2017 to 30 September 2026 are £148,828 plus scheme expenses of £21,923 per annum; increasing by 3% each year on 1 April.

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

Deficit contributions – The Growth Plan

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed total scheme assets of £795 million, liabilities of £926 million and a deficit of £131 million. To eliminate this funding shortfall, the Scheme Trustee has asked the participating employers to pay additional contributions to the scheme. Family Fund’s contributions to the scheme from 1 April 2019 to 31 January 2025 are £6,288 per annum; increasing by 3% each year on 1 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 either or both of the schemes are in deficit and where the charity has agreed to a deficit funding arrangement, the charity recognises a liability for this obligation. The amount recognised is the net present value of the deficit 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.

Present values of provisions

Present values of provisions
Scottish Voluntary Pension Scheme Growth Plan	31 March 2021 £’000 909 26	31 March 2020 £’000
		998 31

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Statement of Financial Activities impact

As at 31 March 2021 Finance cost Remeasurements – impact of any change in assumptions Remeasurements – amendments to the contribution schedule As at 31 March 2020 Finance cost Remeasurements – impact of any change in assumptions Remeasurements – amendments to the contribution schedule	SVSPS £’000 23 41 - SVSPS £’000 16 (36) -	Growth Plan £’000
		1 1 - Growth Plan £’000
		- (1) -

Assumptions Rate of discount – SVSPS Rate of discount – Growth Plan	31 March 2021 % per annum 0.86 0.66	31 March 2020 % per annum
		2.57 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.

The charity must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the Statement of Financial Activities i.e. the unwinding of the discount rate as a finance cost in the financial year in which it arises.

It is these contributions that have been used to derive the charity’s balance sheet liability.

Defined contribution scheme

Family Fund offers a defined contribution Group Personal Pension Plan administered by Scottish Widows. This scheme is funded by contributions from employees and the charity/trading subsidiary as employer. Family Fund’s contribution to the Group Personal Pension Plan in the year was £242,383 (2020: £200,298). Fund contributions due to the scheme as at 31 March 2021 were £ nil (2020: £ nil).

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

15. Movements on Funds

Unrestricted funds: Discretionary fund General fund Unrestricted funds total Designated funds: Grants processing system Siblings Matter Too Depreciation Transform our support Secure our future Make voices heard Matched funding (Your Opportunity) “We are family” grant scheme Designated funds total Restricted fund: England Northern Ireland Scotland Wales Take a Break Scotland Good Things Foundation/HMRC Marian Elizabeth Trust Edward Gostling Foundation Motability Tenth Anniversary Trust Motability Good Things Foundation/Power Up Connect Scotland Other trust/foundation funding McCain Foods Restricted donations Restricted funds total Total charity funds Unrestricted funds: Family Fund Trading Limited Totalgroupfunds	At 1 April 2020 £’000 226 763 989 140 121 - 551 241 242 173 - 1,468 2,041 23 23 26 - - 139 74 103 446 21 - 15 - 20 2,931 5,388 1 5,389	Income £’000 67 2,261 2,328 - - - - - - - - - 40,839 2,053 3,855 518 878 6 200 125 - 2,500 73 36 26 30 1 51,140 53,468 1,929 55,294	Expenditure (including taxation) £’000 - (4,723) (4,723) (24) (12) (100) (320) (192) (133) (136) - (917) (36,583) (1,755) (3,353) (456) (765) (6) (233) (149) 83 (2,110) (16) (36) (11) - - (45,390) (51,030) (1,929) (52,856)	Transfers £’000 95 3,677 3,772 400 - 100 298 311 75 100 300 1,584 (4,213) (293) (468) (59) (113) - (30) (11) (186) 101 (52) - 5 (30) (7) (5,356) - - -	At 31 March 2021 £’000
					388 1,978
					2,366
					516 109 - 529 360 184 137 300
					2,135
					2,084 28 57 29 - - 76 39 - 937 26 - 35 - 14
					3,325
					7,826 1
					7,827

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Restricted funding is to be used in providing support in the form of grants, goods and services to assist families, parents and others with parental responsibilities in the United Kingdom caring for severely disabled children living at home.

The Discretionary Fund is maintained for voluntary donations received and is used to help us further break down the barriers and ease the additional pressures that families face; making life easier and improving the well-being of parents and carers.

Transfers from restricted funds represent:

• each programme’s share of support costs and the cost of delivering grants and services to families.

Designated funds are to be used:

• to improve the ICT infrastructure in order to enhance service delivery to families;

• to provide direct grant support, services and information provision to families; and

• to deliver Family Fund’s five year strategy (2017-2022), including investment in targeted fundraising activities.

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Prior year movement on funds

Unrestricted funds: Discretionary fund General fund Unrestricted funds total Designated funds: Grants processing system Siblings Matter Too Depreciation Transform our support Secure our future Make voices heard Matched funding (Your Opportunity) Designated funds total Restricted fund: England Northern Ireland Scotland Wales Take a Break Scotland Good Things Foundation/HMRC Marian Elizabeth Trust Garfeld Weston Foundation Moondance Foundation David Family Foundation Flora’s Fund Edward Gostling Foundation Motability Tenth Anniversary Trust Motability Good Things Foundation/Power Up John James Bristol Foundation W M Mann Foundation UKH Foundation Restricted donations Restricted funds total Total charity funds Unrestricted funds: Family Fund Trading Limited Totalgroupfunds	At 1 April 2019 £’000 150 (369) (219) 173 60 - 488 233 197 137 1,288 1,961 21 18 22 - - 194 2 2 10 3 77 201 - - - - - 19 2,530 3,599 749 4,348	Income £’000 48 2,043 2,091 - - - - - - - - 27,387 1,576 2,990 476 700 8 200 - - - - 100 - 500 30 3 1 4 1 33,976 36,067 907 36,974	Expenditure (including taxation) £’000 31 (3,942) (3,911) (73) (59) 35 (302) (171) (111) (64) (745) (24,360) (1,319) (2,558) (400) (588) (8) (225) - - (6) - (88) (68) - - - (1) (1) - (29,622) (34,278) (1,655) (35,933)	Transfers £’000 (3) 3,031 3,028 40 120 (35) 365 179 156 100 925 (2,947) (255) (427) (72) (112) - (30) - - (2) - (15) (30) (54) (9) - - - - (3,953) - - -	At 31 March 2020 £’000
					226 763
					989
					140 121 - 551 241 242 173
					1,468
					2,041 23 23 26 - - 139 2 2 2 3 74 103 446 21 3 - 3 20
					2,931
					5,388 1
					5,389

66 |

Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Restricted funding is to be used in providing support in the form of grants, goods and services to assist families, parents and others with parental responsibilities in the United Kingdom caring for severely disabled children living at home.

The Discretionary Fund is maintained for voluntary donations received and is used to help us further break down the barriers and ease the additional pressures that families face; making life easier and improving the well-being of parents and carers.

Transfers from restricted funds represent:

• each programme’s share of support costs and the cost of delivering grants and services to families.

Designated funds are to be used:

• to improve the ICT infrastructure in order to enhance service delivery to families;

• to provide direct grant support, services and information provision to families; and

• to deliver Family Fund’s five year strategy (2017-2022), including investment in targeted fundraising activities.

16. Analysis of Assets and Liabilities between Funds

Group Tangible fxed assets Current assets Current liabilities Lease provision Defned beneft pension scheme liability At 31 March 2021 Charity Tangible fxed assets Current assets Current liabilities Lease provision Defned beneft pension scheme liability At 31 March 2021	Unrestricted funds £’000 123 9,370 (6,127) (64) (935) 2,367 Unrestricted funds £’000 121 3,500 (256) (64) (935) 2,366	Designated funds £’000 - 2,189 (54) - - 2,135 Designated funds £’000 - 2,189 (54) - - 2,135	Restricted funds £’000 - 16,937 (13,612) - - 3,325 Restricted funds £’000 - 16,937 (13,612) - - 3,325	Total £’000
				123 28,464 (19,761) (64) (935)
				7,827
				Total £’000
				121 22,626 (13,922) (64) (935)
				7,826

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

Prior year analysis of assets and liabilities between funds

Group Tangible fxed assets Current assets Current liabilities Lease provision Defned beneft pension scheme liability At 31 March 2020 Charity Tangible fxed assets Current assets Current liabilities Lease provision Defned beneft pension scheme liability At 31 March 2020	Unrestricted funds £’000 247 4,648 (2,819) (57) (1,029) 990 Unrestricted funds £’000 244 2,087 (256) (57) (1,029) 989	Designated funds £’000 - 1,527 (59) - - 1,468 Designated funds £’000 - 1,527 (59) - - 1,468	Restricted funds £’000 - 9,587 (6,656) - - 2,931 Restricted funds £’000 - 9,587 (6,656) - - 2,931	Total £’000
				247 15,762 (9,534) (57) (1,029)
				5,389
				Total £’000
				244 13,201 (6,971) (57) (1,029)
				5,388

17. Operating Leasing Commitments

The total future minimum lease payments under non-cancellable operating leases are:

Group and Charity - within one year - between one and fve years - more than 5 years	2021 Land and buildings £’000 206 825 820 1,851	2020 Land and buildings £’000
		206 825 1,027
		2,058

18. Related Party Transactions

The group has taken advantage of the exemption available under the Charities SORP that permits non-disclosure of individual unconditional donations from trustees and wholly-owned group undertakings.

All transactions between Family Fund and Family Fund Trading Ltd are eliminated on consolidation.

There are no other related party transactions.

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

19. Reconciliation of Net Income to Net Cash Flow from Operating Activities

from Operating Activities
Net income for the reporting period Adjustments for: Interest receivable Depreciation charges on disposal (Increase)/decrease in debtors Increase/(decrease) in creditors Decrease in pension provision Increase in lease provision Net cash provided by/(used in) operatingactivities	Unrestricted 2021 £’000 1,377 (10) 125 (2,613) 3,308 (94) 7 2,100	Designated 2021 £’000 667 - - 5 (5) - - 667	Restricted 2021 £’000 394 (19) - (222) 6,956 - - 7,109	Total 2021 £’000
				2,438 (29) 125 (2,798) 10,227 (94) 7
				9,876

Prior Year Reconciliation of Net Income to Net Cash Flow from Operating Activities

Net income for the reporting period Adjustments for: Interest receivable Depreciation loss/charges on disposal Decrease/(increase) in debtors (Decrease)/increase in creditors Decrease in pension provision Increase in lease provision Net cash (used in)/provided by operatingactivities	Unrestricted 2020 £’000 460 (27) 44 69 (778) (176) 57 (351)	Designated 2020 £’000 180 - - 10 21 - - 211	Restricted 2020 £’000 401 (75) - (45) (1,002) - - (721)	Total 2020 £’000
				1,041 (102) 44 34 (1,759) (176) 57
				(861)

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

20. Prior Year Consolidated Statement of Financial Activities

Note INCOME FROM: Charitable activities Funding for grants and services 3 Donations, Gift Aid and fundraising Other trading activities Trading income Investments Interest receivable TOTAL INCOME EXPENDITURE ON: Cost of delivering grants and services to families 4 Grants and services to families 5 Discretionary grants 5 Less discounts receivable 5 Support costs 6 Raising funds Trading costs Fundraising costs TOTAL EXPENDITURE Net (expense)/income before tax Taxation Net (expense)/income for the year Transfer between funds 15 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds for the year Total funds carried forward 15	Unrestricted funds £’000 - 155 155 2,816 27 2,998 (1,888) (59) - - (2,052) (3,999) (1,567) - (5,566) (2,568) - (2,568) 3,028 460 530 460 990	Designated funds £’000 - - - - - - (445) (54) (50) 3 (41) (587) - (158) (745) (745) - (745) 925 180 1,288 180 1,468	Restricted funds £’000 33,900 1 33,901 - 75 33,976 - (32,444) - 2,822 - (29,622) - - (29,622) 4,354 - 4,354 (3,953) 401 2,530 401 2,931	Total funds 2020 £’000 33,900 156 34,056 2,816 102 36,974 (2,333) (32,557) (50) 2,825 (2,093) (34,208) (1,567) (158) (35,933) 1,041 - 1,041 - 1,041 4,348 1,041 5,389	Total funds 2019 £’000
					34,380 160
					34,540 2,215 88
					36,843
					(1,602) (34,130) (22) 3,174 (1,848)
					(34,428) (1,400) (148)
					(35,976)
					867 -
					867 -
					867
					3,481 867
					4,348

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Annual Report and Financial Statements 2021 | Notes to the Financial Statements

21. Prior Year Charity Statement of Financial Activities

Note INCOME FROM: Charitable activities Funding for grants and services 3 Donations, Gift Aid and fundraising Investments Interest receivable TOTAL INCOME EXPENDITURE ON: Cost of delivering grants and services to families 4 Grants and services to families 5 Discretionary grants 5 Less discounts receivable 5 Support costs 6 Raising funds Fundraising costs TOTAL EXPENDITURE Net (expense)/income for theyear	Unrestricted funds £’000 - 2,075 2,075 16 2,091 (1,885) (59) - - (1,967) (3,911) - (3,911) (1,820) 3,028 1,208 (219) 1,208 989	Designated funds £’000 - - - - - (445) (54) (50) 3 (41) (587) (158) (745) (745) 925 180 1,288 180 1,468	Restricted funds £’000 33,900 1 33,901 75 33,976 - (32,444) - 2,822 - (29,622) - (29,622) 4,354 (3,953) 401 2,530 401 2,931	Total funds 2020 £’000 33,900 2,076 35,976 91 36,067 (2,330) (32,557) (50) 2,825 (2,008) (34,120) (158) (34,278) 1,789 - 1,789 3,599 1,789 5,388	Total funds 2019 £’000
					34,380 160
					34,540 80
					34,620
					(1,602) (34,130) (22) 3,174 (1,769)
					(34,349) (148)
					(34,497)
					123
Transfer between funds 15 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds for the year Total funds carried forward 15					-
					123
					3,476 123
					3,599

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Annual Report and Financial Statements 2021

Officers and Professional Advisers

Trustees and Officers

Family Fund Trading Directors

Neil Scott - Chair David Braybrook – Vice Chair

David Lewis Grant Macrae Geoff Linnell Tara Palmer Mary Bishop Kate Fleck

Jonathan Evans Gareth Lambert

Andrew Piper Neil Ashton (appointed 1 July 2020)

Finance, Audit and Risk Committee

Gareth Lambert - Chair

David Lewis

Mary Bishop

David Braybrook

Neil Ashton

Heath Thomas – Chair

Mark Dundon – Vice Chair

Cheryl Ward Jill Wheeler Claire Locker Geoff Linnell Joanna Lund

David Lewis

Principal Officers

Cheryl Ward – Group Chief Executive and Company Secretary (resigned as Company Secretary 31 March 2021)

Claire Locker – Group Director of Finance and Company Secretary (appointed as Company Secretary 1 April 2021)

James Turton – Chief Operating Officer (resigned 31 March 2021)

Ben Calverley – Director of Grant Services

John Mawson – Group Director of Technology and Digital

Andrew Harper – Director of Partnerships, Public Affairs and Family Outcomes

Tracy Evans – Group Director of HR & Facilities

Reward and Nominations Committee

Jill Wheeler – Managing Director, Family Fund Trading

David Braybrook – Chair

Neil Scott

Mary Bishop

Jonathan Evans

Safeguarding Committee

David Braybrook – Chair

Kate Fleck

72 |

Annual Report and Financial Statements 2021

Bankers

National Westminster Bank Plc

1 Market Street York YO1 8SR

Solicitors

Rollits LLP

Forsyth House Alpha Court Monks Cross York YO32 9WN

Independent Auditors

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Central Square 29 Wellington Street Leeds LS1 4DL

Registered Office

Unit 4 Alpha Court Monks Cross Drive Huntington York YO32 9WN

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