**Trustees’ Report and Consolidated Annual Accounts 2020/2021**
Year Ended 31 August 2021
www.infocus-charity.org.uk
## **Contents**
|**Contents**||
|---|---|
|**Introductions from our Chair of Trustees and Chief Executive Ofcer**|**4**|
|**Report of the Trustees for the year ending 31st August 2021**|**5**|
|**About our charity, including our vision and mission**|**6**|
|**Objectives, activities and values**|**7**|
|**Our services**|**9**|
|**Our impact**|**10**|
|**Achievement and performance 2020/2021**|**14**|
|**Finance and Risk**|**22**|
|**Structure, Governance and Management**|**28**|
|**Reference and administrative details**|**30**|
|**Statement of Trustees’ Responsibilities**|**31**|
|**Audit report**|**32**|
|**Accounts and fnancial statements**|**37**|
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Thank you...**
Everyone at InFocus Charity would like to thank: Our Ambassadors Michael Caines MBE DL and Judi Spiers.
Jacqui Taylor of Otter Garden Centres for her continued generosity and financial support to our West Hill outdoor learning centre.
Our volunteers across all five of our charity shops (Honiton, Sidmouth, Exeter Heavitree, Exeter Sidwell Street and Exeter Cowick Street) our horticulture projects at West Hill and Countess Wear, and everyone who volunteers at our main site.
All our partner work placement employers.
Our amazing and dedicated staff team.
The parents and carers of our young people.
Our Trustees and advisory members who give their time and expertise so generously.
Burrington Estates, and all the contractors who have helped create our latest residential space onsite.
Volunteer and fundraising groups from:
- Thomson Reuters
- WSP Exeter
- Tesco
- HM Naval Base Devonport
- • The Axewoods Collective • GWR (Exeter St Davids)
- All our donors and supporters.
Alex Le Tissier.
Generous donations from:
- The William Kenneth Hutchings Charitable Trust
- The Sterling Charity
- The Clare Milne Trust
- CHK Foundation
- Exeter Dispensary Charity
- The J & M Family Foundation
**3**
## **Introduction**
InFocus Charity has a proud history of providing education and care services to children and young people with a vision impairment for more than 180 years in the city of Exeter in Devon. Since the 1960’s this has been from a site on the Topsham Road near Countess Wear. In July 2021 we agreed to change our name to InFocus Charity stating boldly that we are **the** vision impairment and complex needs charity. Our new name reflects that we are no longer just a School and College and our refreshed strategic plan for 2019-2024 sets out our development plans particularly in our adult care provision.
Our expertise and focus on cortical vision impairment and vision impairment with complex needs makes us quite a unique educator. Where other providers have made their offer more generic, we remain committed to being a very specialist provider that is laser focussed on the specific needs of young people with VI and complex needs. To be **the** charity in this field requires us to continually up-skill ourselves as an organisation and demonstrate the positive impact our methods have for the young people and adults we support.
We remain an ambitious organisation and despite the challenges of increased regulation, incredibly tight funding and increased compliance we aim to reach more people, provide high quality services and offer good value for money. Our Trustees’ Report shows this happening.
**Christopher Knee** Chair of the Trustees
Of course, in 2020/2021, we faced the most unusual circumstances of trying to do all of this during the COVID-19 pandemic, without much time for preparation and with little applicable guidance. Our Trustees report and accounts for 2020/2021 show that InFocus Charity (or WESC Foundation as it was then) admirably rose to the challenge and the organisation has not suffered unduly financially. This was achieved in several ways.
Firstly, our staff were magnificent and rose to the challenge with creativity, commitment and determination to keep our young people safe and still deliver them the service they deserved. We thank them wholeheartedly for this. Secondly, we were quick to look at how we changed our delivery model across all aspects of the service, and how we could use the financial support on offer from the government (such as grants and limited amounts of furlough) to keep the organisation afloat. Thirdly, we continued throughout with our plans for improving and streamlining how we work, making ourselves more efficient, making our offer and our fees much clearer, managing our funds tightly and looking after our staff team.
Unexpectedly 2020/2021 leaves us in a good position at the mid-way point of our strategic plan to continue with improvements and, excitingly, to expand and create new services.
**Jane Bell** Chief Executive Officer
**4**
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Report of the Trustees for the year ending 31st August 2021**
The board of Trustees of InFocus Charity present their annual report and audited accounts for the year ended 31st August 2021 and confirm that they comply with the requirements of the Companies Act 2006, Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – (Charities SORP (FRS 102)).
The Trustees confirm that they have complied with the duty imposed on them by s17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit, including the guidance ‘Public benefit: running a charity (PB2)’.
On the 15th of July the Trustees agreed by special resolution to change the name of the charity from WESC Foundation to InFocus Charity. After a great deal of research and consideration it was agreed that the name WESC Foundation no longer represented the organisation in its entirety.
Over the years the organisation has become much more that just a School and College. The major change in the last ten years for the organisation is the development of our adult care services, which are community-based services for adults who are not in education. These services are rated outstanding and meet the needs of very complex young people with very specific support needs.
Adult services now make up over half of our income, half of our staffing and half of our direct beneficiary group.
InFocus has been chosen as the name for the charity. This is to reflect our overall Focus on Vision Impairment and complex needs, which is the tagline for the charity. It also acknowledges the importance of Focus from a vision impairment perspective. It is a common misunderstanding that the young people who attend our education and adult care services are blind. However, this is not the case – most have some degree of optical ability and many have a cortical vision impairment, which is to do with processing of sensory information in the brain. We deploy many techniques with our young people to maximise the effective use of the vision they do have, including for example eye gaze techniques which help a young person to learn to focus their eyes and use this as a communication system.
As a result of the name change the charity’s Articles have also been updated which, whilst agreed in principle on the 15th of July 2021 are currently undergoing Charity Commission approval prior to formal adoption by the Board.
InFocus Charity remains a registered charity (registered number 1058937) and company limited by guarantee.
**5**
## **About our charity**
## **“ The children and young adults we support face huge barriers to learning, living and taking an active, independent place in their communities.”**
## **This is why InFocus Charity (formerly WESC Foundation) exists.**
Some arrive at InFocus unable to use their voice, or unable to express simple choices like yes and no.
They may need specialist equipment like a wheelchair or powered hoist just to enable them to explore their world.
Others don’t have the mobility skills to be independent in their community and do simple things like take a bus to the shops or visit friends.
Our young people see the world differently, and sometimes hardly at all, but could use what vision they do have more effectively with the right specialist input.
**InFocus Charity has over 180 years of history supporting young people with vision impairment. Our specialism in Cortical Vision Impairment (CVI) makes us unique in the UK.**
**We are the only education provision solely focussed on the combined difficulties that arise from a vision impairment alongside other disabilities such as profound and multiple learning difficulties, autism, long term health conditions, physical disability or life limiting conditions.**
**6**
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Our vision**
**A world where young people with vision impairment and complex needs are able to take their place in society, where they are valued for their contribution and their rights and independence are supported.**
## **Our mission**
**Our mission is to empower children, young people and adults with vision impairment and complex needs to live fulfilling young and adult lives, through the delivery of a range of education, care and support services. To succeed in our mission we will:**
- **provide outstanding services centred around our young people**
- **make best use of our specialist knowledge of vision impairment and complex needs**
- **work in partnership with others**
- **be a resilient, innovative and ambitious organisation and a great employer.**
**7**
## **Objectives and Activities**
The objects of the Charity remain relatively unchanged under the proposed revised Articles. These are:
The relief of persons with a vision impairment and complex needs (whether this is a physical, other sensory or cognitive impairment) by:
- supporting the education and training of persons with a vision or other sensory impairment by such means as the Trustees think fit including (but not limited to) the provision of a day and residential education facility
- providing care for persons with a vision or other sensory impairment and support for them to live independently in the community
- supporting the employment of persons with a vision impairment or other sensory complex impairment.
InFocus Charity supports the education, care, health and independence of persons with a vision impairment or other sensory impairment. Income is generated from the following sources:
- Local authority fee income
- Education and Skills Funding Agency
- Private fee income
- Charitable activities which include income from our five charity shops, eBay shop and fundraising
- Investment income
## **Our values**
## **Our operational values – how we work as a staff team**
- Together everyone achieves more
- Learning happens everywhere
- “Even better if”
- Celebrate what you want to see more of
## **Our community values – the things most important to our young people**
- The right support to learn and develop
- A sense of belonging
- Enjoyment and fun
- Respect and kindness
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Our services**
InFocus offers a range of educational, care and support services to young people and adults with visual impairment and complex needs.
Our services include:
## **Education provision**
We currently operate an independent residential special School (5-16 years) and a residential College (1625 years) offering:
- full-time day and residential placements for a 38-week academic year
- additional residential support up to a 52-week placement
- supported internships that combine education, employability skills training and work experience as a stepping-stone to paid employment or volunteering
- part time or split placements in School or College working with another provider.
## **Adult care and support services**
We have a range of community services supporting young adults with vision impairment and complex needs:
- full time nursing and residential care in St David’s House, our specialist adult care home
- supported living services in the community
- Jigsaw, our adult day support service
- residential respite and short breaks.
## **Our services are supported by our expert staff teams:**
- our own therapeutic services covering speech and language, physiotherapy, occupational therapy, music therapy and psychological support
- mobility instruction and support from our specialist Rehabilitation Officer of the Visually Impaired (ROVI) team and expert CVI support from our own VI Advisory Team
- health care support from our own nursing team, working together with local specialist visiting clinics and GP services
- Teachers qualified and experienced in teaching vision impaired students, supported by a team of specifically trained and qualified team leaders and enablers, in the classroom and in the residential student houses.
## **Enterprise**
As a charity we undertake a number of activities that support our work and give our students additional opportunities.
- We have 5 charity shops which raise income and provide work experiences for students.
- We run a successful eBay outlet, run by vision impaired staff within our social enterprise team.
- We have a 10-acre adapted outdoor learning centre in East Devon, used by our students and other groups, as well as our Discovery and Sensory gardens on-site.
**----- Start of picture text -----**
9
**----- End of picture text -----**
## **Our impact**
**able to:**
**Be active citizens in their community**
George, volunteering for East Devon District Council
**Use technology effectively to support and enhance daily life**
**10**
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
**to be**
## **Maximise their functional vision**
Using symbols on a giant touch-screen to help make choices.
**Use their voice about things that matter to them as advocates for young people with Cerebral palsy and CVI**
**11**
## **Our impact** (continued)
**Work, volunteer or make valued contributions to the local community**
**Follow their passions and doing things that they really enjoy**
**12**
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
**Advocate for themselves independently or with support**
**Make choices about all aspects of their lives, to the fullest extent possible**
**Live as independently as they are able, with the right level of support**
**13**
## **Achievements and Performance 2020/21**
## **Our strategic plan**
2020/21 is the second year of our 5-year strategic plan. The 2019-2024 Strategic Plan set out ambitious plans for InFocus Charity (WESC Foundation at the time) and how we intend to grow our services and increase the positive impact for our beneficiary group – children, young people and adults with vision impairment and complex needs.
The plan sets out 5 key objectives, underpinned by a financial strategy and a marketing and communication strategy. It describes how over the five years we will make sure we get the basics right, whilst reaching towards improvement, innovation, and expansion.
## **Our 2019-2024 objectives at a glance**
We will offer a personalised preparation towards leading a fulfilling adult life through our School and College provision and education outreach.
We will support young people and adults to live an independent and fulfilling life in the community through excellent care and support services and community outreach programmes.
## **1 IMPROVE EDUCATION**
## **2. EXPAND ADULT CARE**
**3. USE OUR KNOWLEDGE**
**4. DEVELOP THE SITE** We will share our knowledge and resources We will modernise with our local community, and create improved with professionals and **5. STRENGTHEN THE** within our sector so that spaces on our site **ORGANISATION** more people can benefit which promote from our work and independence and enhance learning and expertise. We will be a well led, living at effective and sustainable InFocus. organisation and a great employer.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
**Strategic plan review- mid-way point**
## Context
The first two years of our strategic plan were not quite the years we were expecting! Having done a huge amount of work on safeguarding since July 2019, our residential special School was still felt to be inadequate in December 2019. This therefore continued to be the top priority during 2019/2020 and 2020/2021. In March 2020, the COVID-19 pandemic affected our plans across all of our objectives and much of our focus had to be turned to staying open and keeping everyone safe into 2020/2021.
## Our charity
Since 2018, after an exceptional period of internal change, the charity has had settled leadership with a committed Trustee board and consistent leadership team. The exception is in education, where there has been several changes of Principal.
Currently, we remain dependent on unpredictable fee income, income from our enterprise activities and our fundraising all of which are very vulnerable to external changes. Fees have been increased across all services to reflect the true costs and are due to be implemented in September 2021. A full review of our financial systems has also been completed.
COVID-19 has meant we have not been fully re-inspected since December 2019. We are confident that we have made significant progress towards Good in education as evidenced by a number of monitoring visits.
## Our young people
Overall as of September 2021 we support 80 young people across all our services.
Although student numbers remain reasonably stable overall, the number of School students has been in steady decline, leading to a decision to close the School in September 2022.
All the young people we support have a vision impairment and other complex needs, 57 % of whom would be described as having severe or profound and multiple learning disabilities. About 45% of our young people use wheelchairs.
This table shows the number of students in School and College over a three-year period.
**----- Start of picture text -----**
Year School College
2018/2019 (start of year) 12 35
2018/2019 (end of year) 13 34
2019/2020 (start of year) 9 36
2019/2020 (end of year) 9 34
2020/2021 (start of year) 8 34
2020/2021 (end of year) 8 31
2021/2022 (start of year) 5 35
**----- End of picture text -----**
This table shows the number of young adults receiving a service in our different residential care and community services over a three-year period.
**----- Start of picture text -----**
Residential care Adult day Supported
Year (St David’s) services living services
2018/2019 (start of year) 17 10 7
2018/2019 (end of year) 16 9 6
2019/2020 (start of year) 16 10 7
2019/2020 (end of year) 15 10 7
2020/2021 (start of year) 15 10 8
2020/2021 (end of year) 16 9 8
2021/2022 (start of year 19 10 11
**----- End of picture text -----**
The special education sector
The prevalence of pupils with Special Educational Needs or Disabilities (SEND) is still increasing. The number of statutory Education, Health and Care (EHC) plans at January 2021 was 430,697. This is up from 390,100 (+10%) in 2020 and 319,819 in 2018.
High needs funding for children with SEND remains under huge pressure. Despite additional funding of £780m in 20/21 and £730m in 21/22 and a total spend of £8billion plus, there remains a very tight squeeze at local level on fees and funding.
Non-maintained special schools and colleges such as at InFocus often specialise in specific low incident/ high complexity conditions. The average cost of a place is therefore significantly higher than the cost in a more generic maintained school and some local authorities perceive the specialist independent sector negatively on the grounds of cost and quality.
The impact of COVID-19
During 2020/2021 InFocus was, like everywhere else, impacted by the COVID-19 pandemic. All of our services remained open throughout the pandemic with some students being educated remotely. Selfisolating as a result of COVID-19 infection or being picked up via the NHS Test and Trace was a constant issue but our staff rose to the challenge fantastically. Safe services were maintained at all times, by staff working over and above to cover shifts.
Early access to vaccinations has helped us to manage staffing and keep everyone safe. We were recognised as leading the field in our approach to COVID-19 risk assessments and safeguarding practices. This was through an external audit completed by a re-deployed Ofsted inspector on behalf of Devon County Council. We were able to welcome most young people back on site in September 2020, but the challenges of adapting our services to operate in bubbles were still with us.
Unlike other sectors, our fee funding from local authorities was continued to enable us to continue to support all our young people. The charity shops closed for several months on two occasions and most commercial activities such as pool hire through our trading company (WESC Enterprises) ceased or was greatly reduced. In addition, we also experienced a significant impact to restricted fundraising activities and income.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Achievements in 2020/2021**
Despite the challenges of 2020/2021 , InFocus has made good progress on some of its key objectives.
## **Objective 1 – Improve Education**
- We successfully managed to keep all our young people in our School and College safe and supported them on site and through remote learning at home during a global pandemic.
- We devised and implemented a bespoke curriculum in our School and College and a programme of themes and lessons around this. We embarked on a programme of work to improve teaching and learning.
- We successfully co-located all our classrooms and students into one area of the campus so that students of all abilities can learn together and staff have the support they need, and created new break out spaces.
“ Leaders incorporate exciting learning opportunities as part of the curriculum, so that learners can explore and develop their independence, talents, and interests”
- Student numbers have increased slightly over two years, but with an increase in College referrals and a decrease in School referrals. We therefore made a strategic decision to close our School from September 2022.
- We successfully appointed a new Interim Principal and enabled an effective handover from our outgoing Director of Education.
- We had a number of monitoring visits from Ofsted which demonstrated that safeguarding was now effective, we were compliant with all the national minimum standards for residential special schools and we were making reasonable progress towards Good in our School and College.
Ofsted
- We developed new VI passports for all School and College students and used these to upskill staff working with young people.
- Destination planning was implemented for all students.
## **Objective 2 – Expand Adult Care**
- We successfully managed to keep all our young people in our residential care home and supported living services safe and supported them in their homes and the community during a global pandemic.
- St David’s House continued to be rated Outstanding by the Care Quality Commission.
- We successfully applied for funding to develop a new care home in 2021/2022.
- We created the extra space for our adult day service to expand and renamed it Jigsaw.
St David’s House, our CQC “Outstanding” residential care home
Jigsaw, our community service where “everyone fits in”
**17**
## **Objective 3 – Use our knowledge**
- We continued to have a leadership role within NATSPEC, the national body for independent special colleges.
- We established our own VI Advisory service in-house.
- We developed CVI training materials to share with other professionals.
- We undertook a number of external CVI assessments of young people who are not in our School and College to support them in their own education settings.
“
It’s been brilliant. Working with the guys in eBay was fun, but going out to the shops and enjoying some banter with the staff and customers was an even bigger confidence boost”.
Jeff, 2021 Leaver
## **Objective 4 – Develop the Site**
• We completed some upgrades of facilities in Nell Arran, one of our student residential houses, with a new kitchen, new bathroom, refreshed bedrooms and a refurbished lounge.
• We have started converting an old unused classroom in our student village which will be a fully accessible flat with the help of corporate supporters Burrington Estates and all their suppliers.
Progress with our “Home from Home” project to provide the very best accommodation for our College students.
• We continued to develop the Discovery Garden and renovated our Sensory Garden.
**18**
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Objective 5 – Strengthen the organisation**
- We changed our name to InFocus Charity and re-branded our organisation to increase awareness of our work.
- We overhauled our approach to safeguarding by retraining all our staff and making sure all our systems for reporting and managing cases were simple and timely.
- We implemented a quality assurance programme for safeguarding and increased leadership oversight.
- We recruited three new Trustees.
- We revised how we explain fees to local authorities, created a new fee model for all our provisions and negotiated increases in fees.
- We adapted our recruitment processes during the pandemic to enable us to successfully continue staff recruitment.
- We achieved Cyber Essentials certification for the fourth year.
- We created a new virtual server infrastructure and enabled people to work remotely at very short notice.
- We created a joint health and therapy team to increase multi-disciplinary team (MDT) working and share skills across staff teams.
- We launched a new website and saw significant digital growth in terms of audience and engagement.
Our expert staff helped the local community understand issues faced by people living with vision impairment and other disabilities.
Radio-mad former student Jacob completed his apprenticeship, won the “Outstanding Apprentice of the Year” award for Devon, and then joined our staff team as a paid-up member of the Estates team.
**19**
## **Challenges and threats**
- Our current Ofsted ratings remain low as during the pandemic there have been no full inspections. We need to be ready to demonstrate we are now good at the next full inspections.
- We will need to seek a new Principal for the College in due course to replace our interim appointment.
- Many of our buildings still need refurbishment and modernisation for which we do not have sufficient capital funds to hand, so we have a challenging fundraising target to reach. We have some accommodation that is not fully accessible and therefore not in use, and we need to find ways to resolve this so we can expand our student numbers.
- Some of our very specialist expertise across a number of disciplines is held by a small number of people so succession planning and staff training are important going forward.
- Potential students and service users and the families may not know about the breadth of our services beyond education, or are not aware the unique specialism we have in the UK in terms of our College offer. Without our School referring students to our College we will need to make new connections with other VI schools. Raising awareness with families and marketing our offer to commissioners is critical to achieving our strategic goals for growth in education and adult care.
- There remains significant pressure on High Needs funding, and we need to demonstrate value for money and good outcomes to commissioners to ensure our offer is seen as needed and relevant.
## **Revised objectives going forward**
Based on the outputs and outcomes of the first two years, we have reviewed and updated our 5 objectives within the plan. All 5 objectives remain relevant and appropriate although wording has changed slightly. Our planned activities and goals remain broadly the same, but there have been some updates to reflect strategic decisions taken and new opportunities that have arisen in year 1 and 2.
– This is set out in our refreshed strategic plan available on our website Strategic plan InFocus Charity, Exeter
Our immediate priorities for 2021/2022 are:
## **Objective 1 – To offer education and learning opportunities to young people and adults with vision impairment and complex needs that enables and supports them to live their best life**
- Continue to improve the quality of teaching and learning.
- Ensure our education is Good at next inspections.
- Review and prepare for being a College only provision, with a clearer focus on preparation for adulthood and vocational and work skills.
- Improve confidence and knowledge of vision impairment, complex needs and use of technology for all staff teaching and supporting students.
- Revise the assessment and review processes with stakeholders.
## **Objective 2 – To support young people and adults to live a fulfilling life by providing a range of adult care and support services in the community**
- Find, purchase, adapt, staff and open our second care home.
- Fill all new spaces in Jigsaw.
- Review supported living ready for an expansion in 2022/2023.
- Integrate health and therapy to all parts of InFocus.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Objective 3 – To share our knowledge and resources with our local community, professionals and the sector so more people can benefit from our work and expertise**
- Undertake a feasibility study around creating a wider learning/skill offer within our proposed VI Skills Centre.
- Increase access to external CVI assessments.
- Develop a support/ training offer for professionals working with young people with vision impairment and complex needs.
- Promote our specific expertise of VI and complex needs in a variety of forums.
## **Objective 4 – To modernise and develop the InFocus living and learning spaces on our site to meet the needs of young people now and in the future**
- Improve the quality and accessibility of our student residential accommodation.
- Increase capacity in our student village.
- Create additional learning spaces for specific activities.
- Create a land management strategy for further development of our grounds.
## **Objective 5 – To be a well led, effective, safe and sustainable organisation and a great employer**
- Raise awareness of our College and our adult services through increased marketing, networking and digital presence.
- Utilise our new branding and name to raise awareness of the charity and grow our crowd of supporters
- • Recruit a new fundraising team .
- Review how catering supports young people in our different services.
- Ensure staff access and make good use of data to improve the outcomes for young people.
- Ensure full transition to InFocus across all ITC systems.
- Upgrade or replace the HR system.
- Develop the quality assurance process for adult safeguarding.
- Review the performance and operation of our charity shops.
- Develop a range of initiatives to enhance communication and joint working between different groups of staff, and prioritise increases to staff pay within the budget limitations.
## **Finance and**
## **Risk**
**22**
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Finance and Risk**
## **Income and Expenditure**
As COVID-19 restrictions continued into 2020/21 InFocus Charity continued to feel the effects financially.
The end of year financial statements show a consolidated income for the year of £7,753,596 with expenditure totalling £7,939,770.
The end of year consolidated accounts including unrealised gains from investments reported a deficit of £57,367. This is better than anticipated as a result of careful in year budgeting and a generous legacy.
The following areas experienced a direct impact as a result of the continued COVID-19 restrictions against the predicted forecast budget for 2020/21:
## Social Enterprise
All charity shops were open at the start of the year with a budget income of £410,099 (including Gift Aid) however, once again all shops were closed from 5[th] November to the 3[rd] December 2020 and from the 4[th] January to the 14[th] April 2021 as a result of the continued periods of national lockdown. The social enterprise budget was revised in April due to the in-year trading restriction. Once trading commenced the charity shops experienced higher than expected levels of trading, which meant that the end of year income was £332,412 against a revised budget of £264,600 (including gift-aid). Social Enterprise also received local business grants as a result of COVID-19. Staff who were unable to work as a result of the closures benefitted from the Government furlough payments however, InFocus paid all staff 100% of their salaries during the enforced lockdowns. The total benefit of COVID-19 support payments received by social enterprise at the end of the year was £115,557. In addition, two shops benefitted from periods of reduced rent.
## Fees
InFocus were due to increase fees across all areas of service delivery at the start of September 2020. Fees charged at InFocus have not been increased for over 6 years and no longer fully cover the cost of running the services. As a result of the continued disruption caused by COVID-19 the Board took the decision to delay the fee increase until September 2021. This had a negative impact to the budget and meant that the start of year 2020/21 budget was a predicted deficit of £246,857.
## Health and safety costs
Throughout 2020/21 we continued to maintain a COVID-safe environment including the continued use of PPE by all staff who are in direct contact with students and young people at InFocus, extra surface disinfection and hand sanitiser continually supplied to all areas. We have increased cleaning regimes and continue to ‘deep clean’ following a suspected or confirmed case.
## WESC Enterprises
Much of WESC Enterprises continued to be affected by the impact of COVID-19 throughout 2020/21. The swimming pool was closed for external use as a result of the national lockdowns with staggered returns by those who rent the use of the pool. Plymouth University students remained off site during the lock down periods with limited site presence for the remainder of the year, this resulted in a loss of sales in the InFocus café.
At the start of the year with the anticipated continued impact of COVID-19, WESC Enterprises predicted a surplus of £41,777. At the end of the year the recorded income was £191,227 with expenditure of £185,297 giving an end of year surplus of £5,930.
## Agency staff
As a result of continued vacancies and periods of isolation experienced by staff either contracting COVID-19 or being requested to isolate by NHS Test and Trace we saw an increased use of agency staff and overtime. This meant that both these areas exceeded the predicted budget. At the end of the year the expenditure for contract, agency and overtime was £899,179 (excluding on-costs) against a budget of £749,053, of which £599,532 were direct agency costs.
## Site improvement
Despite a challenging year we continued to improve areas of the site as identified as one of the key priorities this year, in addition to the improvements identified in this year’s achievements for 2020/21 we have also:
- improved security with additional swipe access on many buildings
- installed a new bathroom in Mulberry (part of St David’s House
- refurbished and redecorated the old training kitchen room in Jigsaw (Adult day services)
- relocated the therapy kitchen to another part of the old College building.
A number of additional remedial works were carried out to roofs, paths and boilers. Further ground improvements were undertaken, particularly to the discovery and sensory gardens.
The cost of repairing and maintaining the site has totalled £360,963 (excluding staff costs) with an additional £63,235 spent on specific projects from restricted fundraising.
The above projects were funded through a combination of grants, fundraising and site improvement budget.
## Lease properties
The Board deliberated the valuations of the leased properties and did not consider an in-year revaluation was required given the current market conditions and restrictions on the properties.
## COVID grants
During 2020/21 InFocus received COVID grants totalling of £191,063, £75,506 for the charity and £115,557 for social enterprises.
Although the effects of COVID-19 continued during 2020-21 as a result of careful in-year budgeting, received COVID-19 grants and a sizable legacy confirmation, InFocus reported an operational year end surplus of £316,616 against a predicted budget deficit (revised at the April re-forecast) of £252,927 excluding any unrealised gains.
Despite another less successful year and one that continued to be impacted by COVID-19 WESC Enterprises finished the year with a modest overall surplus of £5,930 which they plan to gift aid to InFocus Charity.
At the year end the Board is reporting a consolidated statutory accounts deficit of £57,367.
## Fundraising and grants
Fundraising continued to be impacted by COVID-19, with many of our events cancelled or postponed. In addition, we found that some trusts and foundations changed their funding priorities or continued in suspending their grants programme.
Unrestricted fundraising realised an income of £485,309 against a predicted target of £60,000, including the legacy of which £410,532 has been recognised in-year and a gift in-kind of £10,509.
Restricted fundraising realised an income of £44,814 against a predicted target of £140,000.
The cost of fundraising for the year is £57,295.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Reserves and financial health**
The Board of Trustees receive monthly management accounts and key performance indicators to ensure oversight of the finances, budgets and expenditure against budgets together with cash flow, an analysis of debtors and creditors and other key factors which influence our financial well-being.
During the year there are two budget reforecasts to ensure that the budget remains on track as much as possible. During this process the Director of Quality and Business Resources and Finance Manager meet with all budget holders. As identified above COVID-19 restrictions meant that in-year considerations were required. This process has been even more crucial this year to ensure potential savings are made wherever possible and relevant.
Restricted funds are managed through the restricted funds panel who meet regularly to review applications made to the panel for specific projects or equipment which directly benefit the young people at InFocus Charity using funds raised that are restricted to certain areas of activity.
The InFocus Charity reserves policy states that we should aim to hold unrestricted reserves of:
|4 months Operating Reserves (free reserves)|£2,500,000|
|---|---|
|Contingency for death or loss of contract for Service Users (designated Funds)|£ 200,000|
|Site Improvement (designated Funds)|£ 500,000|
|**Total target reserves (**including designated funds**)**|**£3,200,000**|
InFocus Charity calculate operating reserves (free reserves) as that of total charity reserves less fixed assets and restricted reserves. As of 31[st] August 2021 the total unrestricted free reserves were £2,775,612, the operating reserves on the above agreed calculation basis were just over 3.3 months (excluding designated funds). Trustees remain mindful that our current levels are still below the agreed 4 months operating reserves and increasing this remains a priority for the Trustees and Executive team.
The Trustees continue to monitor the ongoing impact of COVID-19. The Trustees have agreed a rolling three year forecast and will continue to monitor in-year performance through monthly management accounts. A priority for 2021/22 remains to increase numbers in College and expand Adult Services, which will have a positive impact to the financial position of InFocus. As a result of continued low numbers, the School will close at the end of 2021/22. New fees have been implemented from September 2021, when at capacity this should result in fees covering the cost of service provision with any additional income received from areas such as social enterprise, WESC Enterprises and fundraising used to improve the site including the residential provision.
The Board monitor financial resilience and currently maintain a reasonable level of reserves. Taking the information available into consideration the Trustees are satisfied that there are no material uncertainties around the ability of InFocus Charity and WESC Enterprise to continue as a going concern for at least the next 12 months.
## **Investments**
Despite a turbulent year within the financial markets the Board is generally pleased with the overall performance of the investments held with Sarasin and Partners:
|**Fund**|**Value as of**
**31st August 2020**|**Value as of**
**31st August 2021**|
|---|---|---|
|Total value of investments|£1,518,877|£1,670,457*|
* This includes a dividend payment of £11,347 which was paid out post year end.
The Board remain confident that the funds are being effectively actively managed by Sarasin and Partners and are in accordance with InFocus Charity’s investment policy.
## **Pension Liability**
Staff are ordinarily enrolled in one of three principal pension arrangements as employees of InFocus Charity. The InFocus Pension schemes are with AVIVA (previously Friends Life, now closed to new entrants), NEST and the Teachers’ Pension. As of 31[st] August 2021 there are 10 staff in the Teachers’ Pension, 30 are in AVIVA, 171 are in NEST pension scheme and 1 employee has individual pension arrangements.
## **Principal risks and uncertainties management**
The Board of Trustees are responsible for the overseeing of risks faced by InFocus. During 2020/2021 the risk register was updated to reflect the new strategic plan. The risk register is reviewed three times a year by the Business Affairs Advisory Committee with any recommendations for changes being agreed at the Board. Detailed analysis of the risks are delegated to the Executive team, these are identified, assessed and controls established to mitigate the risk. The principal risks that the Board of Trustees identified during 2020/2021 are:
## The impact of COVID-19
The pandemic in 2020/2021 created several new risks that had not previously been identified. The key risks were deemed to be loss of life or serious illness of a young person through failure to manage the service in line with all guidance; loss of life or serious illness of a staff member through failure to manage the service in line with all guidance; inability to support young people due to staff absences through NHS Test and Trace, and loss of income due to reductions in fees for services; and loss of income through closures of retail and other commercial activities.
InFocus was very quick to adapt its service delivery model including introducing home learning, implementing bubbles and ensuring all guidance was clear and understood by all staff through frequent briefings. Measures for social distancing, hand sanitising and mask wearing were put in place across the campus. Staff were very compliant with the track and trace system but also very diligent in returning to work as soon as practicably possible. All available grants were sought to support our commercial activities and the furlough scheme was used where appropriate. Fee income was maintained for all care and education services by local authorities. The risk assessment process for safeguarding young people during COVID-19 was deemed to be exemplary by Devon County Council and was shared with other providers.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## Ofsted grades
Following the 2018 inspection that graded College as requires improvement, and the 2019 inspections that rated School and our Residential School as inadequate (July 2019 and December 2019) significant progress has been made against areas identified where improvements were needed. During 2020/2021 full inspections were suspended due to the pandemic. Grades remain unchanged as a result.
However, we still had 5 different monitoring visits to check on safety during the pandemic and progress against the outcomes of the inspection. All were positive and the School and Residential School monitoring visit confirmed that safeguarding was now deemed effective and we were compliant with the National Minimum Standards for Residential Schools (NMSRS).
There are effective improvement plans in place for the School, College and Residential School provision. All are tested through internal audit, learning walks and external scrutiny from Trustees, external advisors and other education and care leaders.
Student numbers and revised fees (Constraints on Government and local authority spending)
The high-needs funding that local authorities use to purchase places at InFocus is significantly overspent causing commissioners to review their internal budgets and look to reduce costs.
InFocus introduced a revised fee model during 2019/2020 which provides greater clarity and financial viability. It was the aim to introduce the revised fees for 2020/2021. Due to the impact of COVID-19 and the restrictions it has applied to ‘normal’ workings in all organisations including local authorities, the Board took the decisions to delay implementing new fees until 2020/2021.
Delaying the fee increase will mean that fees will not cover core cost for another year. Increasing numbers to increase the income stream remains a priority.
The decision to close the School from September 2022 means that there will no longer be students leaving our School and entering our College, and we will therefore be reliant on external referrals. This is an increased risk to student numbers but does reduces the number of different inspection regimes we have to comply with. We will also have students in our education provision for a shorter period and will need to demonstrate progress over a shorter time period. There is still pressure on local authorities to place young people locally and not make long distance out of county placements. This risk is mitigated to some extent by our VI and complex needs specialism which cannot be locally matched, especially as some VI specific settings who might previously be specialist competitors have more recently become generic providers.
## Reduce staff vacancies
We have a high number of vacancies, particularly within St David’s House. The risk with carrying too many vacancies are with the consistency in care, increased pressure on current staff and high agency costs.
During the year InFocus reviewed the overtime rate offered to staff with the view to reduce the use of agency staff and to attract new staff. This has resulted in a small drop in vacancies. Work continues to improve this risk.
## **Structure, Governance and Management**
## **Board of Trustees**
At the end of August 2021 InFocus Charity have 9 serving Trustees chaired by Chris Knee who was appointed in January 2019.
During the year two Trustees resigned and we recruited three Trustees.
The board has three sub-committees which each met three times during the year. On each committee there are nominated Trustees and each committee is Chaired by a Trustee. The committees are:
- The Education Advisory Committee (chaired by Tracie Coultas-Pitman, Trustee)
- The Business Affairs Advisory Committee (chaired by Derek Fargher, Trustee)
- The Adult Care Advisory Committee (chaired by Angus McNicol, Trustee).
During 2020/21 the Trustees carried out the following meetings, many of which were conducted remotely due to the ongoing restrictions imposed by the COVID-19 pandemic:
- Six Board meetings
- Three sub-committee meetings for each advisory committee
- One Annual General Meeting
- One Extraordinary General Meeting.
Trustees actively engage in training which includes the mandatory safeguarding training.
Our Board of Trustees are:
- Chris Knee, Chair of Trustees
- Derek Fargher, Trustee, Chair of Business Affairs Advisory Committee
- Tracie Coultas-Pitman, Trustee, Chair of Education Advisory Committee
- Angus McNicol, Trustee, Chair of Adult Care Advisory Committee
- Tim Williams, Trustee
- Carol Edworthy, Trustee
- Briony Dillon, Trustee
- Andrew Daniel, Trustee
- Bradley Horn, Trustee.
All Trustees give of their time freely and no remuneration was paid in the year. Expenses can be reimbursed. The Board of Trustees conduct their business in line with the Charity Commission Governance Code.
## **Legal Structure**
InFocus Charity is a company limited by guarantee registered in England and Wales with company number 06928379 and charity number 1058937-1. InFocus Charity is linked by the Charity Commission for accounting and reporting purposes with InFocus Charity (West of England), an unincorporated charity registered in England and Wales with charity number 1058937 and which previously undertook the operations of InFocus. The trustees of InFocus Charity are also the only trustees of InFocus (West of England). InFocus Charity (West of England) is currently the main reporting charity for the purposes of the Charity Commission although this charity is now dormant with all InFocus assets being held by, and all operations being conducted through InFocus Charity.
## **Executive Team**
The Board of Trustees delegates the operational management of InFocus Charity to its Chief Executive who works with an Executive team, as follows:
- Jane Bell, CEO
- Maureen Biss, Director of HR and Enterprise
- Jane Nutt, Director of Quality and Business Resources, Company Secretary and Data Protection Officer
- Marc Phillips, Director of Care and Support Services
- Martyn Cox, Principal.
In July 2021 the Director of Education resigned to take up an exciting opportunity abroad. Martyn Cox was appointed as Principal and now leads the School and College. The CEO and Executive team are in attendance at the board meetings and at sub-committees. Each Committee has a link Executive who they work with to monitor, audit and improve their delegated areas of InFocus Charity business. The PA to the CEO acts as Clerk to the Board.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Staffing**
On 31 August 2021 InFocus Charity was employing 242 staff (including 29 bank staff) (174 FTE). As is the case elsewhere in the care sector recruiting support staff remained a challenge despite a number of recruitment drives undertaken.
InFocus is required by law to publish an annual gender pay gap report, based upon a snapshot date of 5th April annually.
**Mean Gender pay gap:** The difference between the mean hourly rate of pay of men and women is 5.82%.
**Median Gender Pay Gap:** There is 0 difference between the median hourly rate of pay for men and women.
No bonus payments are paid to InFocus employees. We operate a performance related pay system; the aim of this system is to ensure that pay reflects performance. Our principles are to pay our staff a fair salary that is competitive with the charity sector, proportionate to the complexity of each role and responsibility and in line with our charitable objectives.
## **WESC Enterprises**
InFocus Charity has a wholly owned subsidiary called WESC Enterprises. All trading that is not aligned with our core objectives is carried out by WESC Enterprises.
WESC Enterprises is chaired by Derek Fargher. As of the August 2021 the WESC Enterprises Board consists of:
- Derek Fargher - Trustee, Chair of WESC Enterprises
- Angus McNicol - Trustee
- Maureen Biss - Director of HR and Enterprise, InFocus Charity
- Jane Nutt - Director of Quality and Business Resources, Company secretary for InFocus Charity and for WESC Enterprises.
This Trustee report is therefore a consolidated Directors’ report relating to InFocus Charity and its subsidiary WESC Enterprises. However, the greatest emphasis for this report is the activities of InFocus Charity as a charitable organisation.
As a residential special School and College, and a residential care home InFocus Charity remained open through the COVID-19 lockdowns. The isolation periods meant that staffing was at times limited. However, as a result of dedicated staff and agency cover, we continued to provide the high level of care and support throughout the year. However, this additional cover resulted in higher than expected overtime and agency costs.
As a result of the ICT arrangement implemented during the first national lockdown, many of the administration staff were able to continue to work from home during the lockdown which commenced on the 5th of November 2021 with minimal impact to the organisation. A small number of staff were furloughed due to shop closures or extreme vulnerability to COVID-19.
## **Reference and administrative details**
**Registered charity name:** InFocus Charity
**Charity registration number:** 1058937
**Company registration number:** 06938379
**Registered office:** Topsham Road, Countess Wear, EXETER, EX2 6HA
**Trustees:** Mr C D Knee (Chair), Mr D J Fargher, Mr T D Williams, Mr A McNicol, Mrs T Coultas-Pitman, Mrs C Edworthy, Miss B Dillon (appointed 10/12/2020), Dr A Daniel (appointed 15/07/2021), Mr B Horn (appointed 15/07/2021), Mr A Leadbetter (resigned 15/06/2021), Mr P Stagg (resigned 22/06/2021)
**Sub-committee advisory members:** Lucy Woolcock (Adult Care Advisory Committee), Anne Bilham (Adult Care Advisory Committee), Catherine Rees Stephan (Education Advisory Committee)
**Ambassadors:** Michael Caines MBE DL, Judi Spiers
**Chief Executive Officer:** Jane Bell
**Executive Team:** Maureen Biss (Director of HR and Enterprise), Jane Nutt (Director of Quality and Business Resources), Marc Phillips (Director of Care and Support Services), Martyn Cox (Principal)
**Company Secretary:** Mrs J Nutt
**Auditors:** PKF Francis Clark, Centenary House, Peninsula Park, Rydon Lane, EXETER, EX2 7XE
**Solicitors:** Bates Wells, 10 Queen Street Place, London EC4R 1BE
Womble Bond Dickinson (UK) LLP, Ballard House, West Hoe Road, PLYMOUTH, PL1 3AE
Tozers LLP, Broadwalk House, Southernhay West, EXETER, EX1 1UA
**Investment Managers:** Sarasin and Partners, Juxon House, 100 St Paul’s Churchyard, LONDON, EC4M 8BU
**Bankers:** National Westminster, 59 High Street, EXETER, EX4 3DP and HSBC, 38 High Street, EXETER, EX4 3LP
**Insurance:** Venture, Bank House, Burlington Road, Redland, BRISTOL, BS6 6TJ
**30**
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Statement of Trustees’ Responsibilities**
The charity Trustees (who are also directors of InFocus Charity for the purposes of company law) are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity Trustees to prepare financial statements for each year which give a true and fair view of the state of 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 period. 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 Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards 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 operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware at the time of approving our Trustees’ annual report:
- there is no relevant audit information, being information needed by the auditor in connection with preparing their report, of which the charity’s auditor is unaware; and
- the Trustees, having made enquiries of fellow directors and the group’s auditor that they ought to have individually made, have each taken all steps that they are obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The Trustees approve the Trustees’ Annual Report, including approval in their capacity as company directors of the Strategic Report contained within it, on 9 December 2021.
Mr C D Knee, Trustee
## **Independent auditors report**
**32**
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Independent Auditors report to the Members of InFocus Charity for the year ended 31 August 2021**
## **Opinion**
We have audited the financial statements of InFocus Charity (the “Charity”) for the year ended 31 August 2021 which comprise the Group Statement of Financial Activities, Group and Parent Company Balance Sheets, Statement of Consolidated Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland.
In our opinion, the financial statements:
- give a true and fair view of the state of the group’s and charity’s affairs as at 31 August 2021 and of its income and expenditure for the year then ended
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- have been prepared in accordance with the requirements of the Companies Act 2006
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ report, (which includes the strategic report and directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and directors’ report included within the Trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- we have not obtained all the information and explanations necessary for the purposes of our audit.
## **Responsibilities of the Trustees**
As explained more fully in the Statement of Trustees’ Responsibilities set out on page 31, the Trustees (who are also the directors of the charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 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 Charity or to cease operations, or have no realistic alternative but to do so.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the Charity to identify the key laws and regulations. As part of this, we reviewed the Charity’s website for indication of any regulations and certification in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were The Charities Act, compliance with the Care Quality Commission (“CQC”), Ofsted School, Further Education and Skills Framework, and the Residential Special School (National Minimum Standards), safeguarding, Health and Safety at Work Act 1974, and the General Data Protection Regulation (“GDPR”). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We discussed with management and Trustees how the compliance with these laws and regulations in monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Charity’s ability to continue trading and the risk of material misstatement to the accounts.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
- Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.
- Reviewed filings with the Charity Commission and whether there were any serious incident reports made during the year, of which there were none.
- Reviewed audit documentation from the CQC to confirm compliance with standards, and ensuring continued registration with the CQC through the CQC website.
- Reviewed latest Ofsted monitoring reports.
- Discussed with the health and safety officer if any incidents have been reported during the year under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”).
- Review of the group’s GDPR policy and enquiries to the Data Protection Officer as to the occurrence and outcome of any reportable breaches.
- Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.
- Reviewed Board minutes.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, which there were none. We evaluated the risk of fraud through management override, including that arising from management bias in accounting judgements and estimates. In response to the identified risk, as part of our audit work we:
- Audited the risk of management override of controls, including through testing journal entries and other adjustments or appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business of which there were none.
- Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. 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, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our Report**
This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Stephanie Henshaw (Senior Statutory Auditor)
For and on behalf of
PKF FRANCIS CLARK, Chartered Accountants & Statutory Auditor Centenary House, Peninsula Park Rydon Lane, Exeter, EX2 7XE 9/12/2021
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
Accounts and
Financial Statements
131
## **Consolidated statement of financial activities (including income and expenditure account)**
|**31 August 2021**||Unrestricted|Restricted|**2021**|2020|
|---|---|---|---|---|---|
|||funds|funds|**Total funds**|Total funds|
||**Note**|£|£|£|£|
|**Income and endowments**||||||
|Donations and legacies|**4**|676,372|44,814|**721,186**|266,431|
|Charitable activities|**5**|6,593,074|51,329|**6,644,403**|6,782,667|
|Other trading activities|**6**|191,227|-|**191,227**|274,266|
|Investment income|**7**|45,682|-|**45,682**|1,369|
|Other income|**8**|138,963|12,135|**151,098**|103,291|
|||───────|───────|───────|───────|
|**Total income**||7,645,318|108,278|**7,753,596**|7,428,024|
|||═══════|═══════|═══════|═══════|
|**Expenditure**||||||
|Expenditure on raising funds|**9**|245,765|-|**245,765**|263,843|
|Expenditure on charitable activities|**10**|7,398,035|295,970|**7,694,005**|7,827,172|
|||───────|───────|───────|───────|
|**Total expenditure**||7,643,800|295,970|**7,939,770**|8,091,015|
|||═══════|═══════|═══════|═══════|
|Net unrealised gain / (loss) on revaluation||||||
|of fxed assets|**12**|-|-|**-**|326,364|
|Net unrealised gain / (loss) on||||||
|investments|**12**|128,807|-|**128,807**|102,470|
|Transfers between funds|**21**|88,139|(88,139)|**-**|-|
|||───────|───────|───────|───────|
|**Net income/(expenditure) and net**||||||
|**movement in funds**||218,464|(275,831)|**(57,367)**|(234,157)|
|||═══════|═══════|═══════|═══════|
|**Reconciliation of funds**||||||
|||───────|───────|───────|───────|
|Total funds brought forward||7,922,630|1,391,573|**9,314,203**|9,548,360|
|||───────|───────|**───────**|───────|
|**Total funds carried forward**||**8,141,094**|**1,115,742**|**9,256,836**|9,314,203|
|||═══════|═══════|═══════|═══════|
The statement of financial activities includes all gains and losses recognised in the year.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **Balance Sheet**
|**Balance Sheet**||||||
|---|---|---|---|---|---|
|**Year ended 31 August 2021**||||||
||**Note**|**2021**|**2021**|2020|2020|
|||**Group**|**Charity**|Group|Charity|
|||**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Tangible fxed assets|**16**|**6,246,538**|**6,246,538**|6,653,353|6,653,353|
|Investments|**17a**|**1,659,110**|**1,659,210**|1,518,777|1,518,877|
|Investment properties|**18**|**422,500**|**422,500**|422,500|422,500|
|||**──────**|**──────**|──────|──────|
|||**8,328,148 **|**8,328,248**|8,594,630|8,594,730|
|**Current assets**||||||
|Debtors|**19**|**798,663**|**865,962**|430,627|413,989|
|Investments|**17b**|**11,347**|**11,347**|95|95|
|Cash at bank and in hand|**25**|**585,169**|**498,167**|791,778|761,662|
|||**─────**|**──────**|──────|──────|
|||**1,395,179**|**1,375,476**|1,222,500|1,175,746|
|**Creditors: amounts falling**||||||
|**due within one year**|**20**|**466,491**|**452,717**|502,927|485,570|
|||**──────**|**──────**|──────|──────|
|**Net current assets**||**928,688**|**922,759**|719,573|690,176|
|||**──────**|**─────**|──────|──────|
|**Total assets less current liabilities**||**9,256,836**|**9,251,007**|9,314,203|9,284,906|
|||**──────**|**──────**|──────|──────|
|**Net assets**||**9,256,836**|**9,251,007**|9,314,203|9,284,906|
|||**══════**|**══════**|══════|══════|
|**Funds of the charity**||||||
|Restricted funds||**1,115,742**|**1,115,742**|1,391,573|1,391,573|
|Unrestricted funds||**8,140,914**|**8,135,265**|7,922,630|7,893,333|
|||**───────**|──────|──────|──────|
|**Total charity funds**|**21**|**9,256,836**|**9,251,007**|9,314,203|9,284,906|
|||**═══════**|══════|══════|══════|
These financial statements were approved by the board of Trustees and authorised for issue on 9th December 2021, and are signed on behalf of the board by:
## Mr C D Knee
Trustee
Company registered number: 06938379
## **Statement of cash flows**
## **Year ended 31 August 2021**
|**Year ended 31 August 2021**
**Statement of cash fows**||||
|---|---|---|---|
||**Notes**|**2021**|2020|
|**Cash fows from operating activities:**||**£**|£|
|_Net cash provided by operating activities_||**(47,274)**|(105,654)|
|||**──────**|**──────**|
|**Cash fows from investing activities:**||||
|Purchase of property, plant and equipment||**(193,492)**|(388,879)|
|Investment additions||**(11,525)**|-|
|Investment income||**45,682**|1,369|
|Proceeds on disposal of investments||**-**|125,000|
|||**──────**|**──────**|
|_Net cash used in investing activities_||**(159,335)**|(262,511)|
|Change in cash and cash equivalents in the reporting period||**(206,609)**|(368,165)|
|||**──────**|──────|
|Cash and cash equivalents at the beginning of the
reporting period||**791,778**
**────────**|1,159,943
──────|
|Cash and cash equivalents at the end of the reporting period|**25**|**585,169**|791,778|
|||══════|══════|
|Net income / (expenditure) for the period||**(57,367)**|(234,157)|
|Depreciation||**600,307**|551,925|
|(Gain)/loss on investments||**(128,807)**|(428,834)|
|Investment income and bank interest||**(45,682)**|(1,369)|
|(Increase) / decrease on debtors||**(368,036)**|(49,022)|
|(Increase) / decrease on current asset investments||**(11,252)**|-|
|(Decrease) / increase on creditors||**(36,437)**|55,803|
|||**──────**|**──────**|
|_Net cash provided by operating activities_||**(47,274)**|(105,654)|
|||══════|══════|
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
**Notes to the financial statements year ended 31 August 2021**
## **1. General information**
The charity is a private company limited by guarantee, registered in England and Wales.
The address of the registered office is Topsham Road, Countess Wear, Exeter, Devon, EX2 6HA. The charitable entity is a public benefit entity.
## **2. Accounting policies**
## **(a) Statement of compliance**
These financial statements have been prepared in compliance with FRS 102, ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Companies Act 2006 and the Charities Act 2011. There were no material departures from FRS 102 or the Charities SORP (FRS 102).
## **(b) Basis of preparation**
The financial statements have been prepared on the historical cost basis except to the extent that certain assets are carried at fair value as explained below.
The accounts have been prepared on a consistent basis, except that £217,843 of COVID-related grants received in the prior year has been reclassified in the comparatives from other income to donations and legacy.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **(c) Basis of consolidation**
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertaking drawn up to 31 August 2021.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
No separate SOFA has been presented for the Charity alone as permitted by S.408 of the Companies Act 2006. The amount of loss dealt with in the parent charity’s accounts is £33,900 (2020: deficit of £153,609).
## **(d) Going concern**
In making their assessment of going concern the Trustees have considered cashflow forecasts for the next 12 months and beyond and the impact of COVID-19 on the charity and its subsidiary. They are satisfied that there are no material uncertainties about the group’s ability to continue. Further details on this assessment are in the Trustees Report.
## **(e) Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The following are the significant judgements that the Trustees’ have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
## Property classification
Buildings on the charity’s site have been leased to a third party. The Trustees’ have therefore considered whether the property should be reclassified as an investment property and carried at fair value.
In making their judgement, the Trustees’ considered the detailed criteria for the classification of property set out in FRS 102 section 16 Investment Property and, in particular the strategic direction of these rentals. In the prior year, on the basis that the lease was temporary and the longer-term use of the buildings was undecided the Trustees’ concluded that the property should not be reclassified. The classification of these properties has been formally reviewed this year and they have been presented as Investment Property.
In determining a fair value for the investment properties the Trustees have taken into account the existence of potentially significant contractual restrictions on the charity’s entitlement to benefit from the full value of any sale proceeds. They estimate the restriction would limit the charity’s entitlement to some 50% of any proceeds and so have restricted the full open market value of £845,000 to £422,500.
## **(f) Fund accounting**
General unrestricted funds comprise accumulated surpluses and deficits on general funds and the cumulative realised and unrealised gains on revaluations of investments. They are available for use at the discretion of the Trustees in furtherance of general charitable objectives.
Restricted funds are created where material donations are made specifically for a particular area or purpose. Expenditure is charged in the statement of financial activities subject to the conditions imposed by the donors.
Restricted fixed asset funds represent resources applied for specific capital purposes imposed by funders. Depreciation is charged against the fixed asset fund over the life of the asset.
## **(g) Income**
Income is included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
## Donations
Donations are included in full in the statement of financial activities when receivable.
## Grants
Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Where grants are potentially repayable at the period end, the amount received but unspent has been deferred.
## Legacies
Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.
## Donated services
Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## Charitable activities
Fee income, outreach income and landlords supported living are recognised in the period to which the income relates.
## Fees
Fee income comprises amounts receivable from local authoriies for the provision of education, including boarding, and is recognised on a straight line basis over the academic year. Fees received in advance of the academic year are classified as deferred income
## Trading income
Trading income comprises amounts receivable in respect of sales from the café, together with the hire of rooms and the swimming pool. Café sales are recognised when the sale is made which is also the point of cash receipt. Room hire and swimming pool income are recognised when used and income is deferred where cash is received in advance.
Property rental income is recognised straight line over the period of the lease.
Income from investments is included in the year in which it is receivable.
## **(h) Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expense category to which it relates.
Costs of raising funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs comprise all costs incurred in running the charity itself as an organisation, and its compliance with regulation and good practice.
## **(i) Operating leases**
Rentals under existing operating leases are charged as the payments are incurred. For new leases rentals will be charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straightline basis over the lease term.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
## **(j) Tangible assets and depreciation**
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
## **(k) Tangible assets**
Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset as follows:
Buildings - 3%-10% straight line Land - nil Motor Vehicles - 25% reducing balance - Other fixtures, fittings 3-4 years straight line and equipment
## **(l) Investments**
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
In the company balance sheet investments in subsidiaries are recorded at cost less impairment.
## **(m) Investment property**
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.
Investment property is revalued to fair value at each reporting date and any changes in fair value are recognised in statement of financial activities as a gain or loss on revaluation.
## **(n) Financial instruments**
A financial asset or a financial liability is recognised only when the group becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for evidence of impairment at the end of each reporting date. If there is evidence of impairment, an impairment loss is recognised in the statement of financial activities.
## **(o) Retirement benefits**
The Charity’s employees belong to three principal pension schemes: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; the InFocus Charity pension scheme with Friends Life which is closed to new entrants and a NEST Pension Scheme.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the Charity in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in the notes to the financial statements, the TPS is a multi-employer scheme and the Charity is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.
The Friends Life and NEST pension schemes are defined contribution schemes and the contributions are recognised as they are paid each year
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **3. Limited by guarantee**
The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.
## **4. Donations and Legacies**
||Unrestricted|Restricted|**Total Funds**|Total Funds|
|---|---|---|---|---|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|COVID-related grants|191,063|-|**191,063**|217,854|
|Fundraising and donations|64,268|44,814|**109,082**|48,577|
|Legacies|410,532|-|**410,532**||
|Donations-in-kind|10,509|-|**10,509**|-|
||──────|──────|──────|──────|
||676,372|44,814|**721,186**|266,431|
||═════|═════|═════|═════|
Included in the 2021 total of £721,186 is unrestricted income of £676,372 and restricted income of £44,814.
## **5. Charitable activities**
|**haritable activities**|||||
|---|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|Total Funds|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|Educational grants|501,234|51,329|**552,563**|655,928|
|Fee income|5,245,571|-|**5,245,571**|5,379,588|
|Outreach income|67,305|-|**67,305**|71,649|
|Shop income|332,412|-|**332,412**|260,106|
|Landlords Supported Living|446,552|-|**446,552**|415,396|
||──────|──────|──────|──────|
||6,593,074|51,329|**6,644,403**|6,782,667|
||═════|═════|═════|═════|
Included in the total for 2021 of £6,644,403 is unrestricted income of £6,593,074 and restricted income of £51,329. This year educational grants income includes emergency funding in response to COVID-19.
## **6. Other trading activities**
|**. Other trading activities**|||||
|---|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|Total Funds|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|Trading subsidiary income|191,227|-|**191,227**|274,266|
||───────|───────|───────|───────|
||191,227|-|**191,227**|274,266|
||═════|═════|═════|═════|
Included in the total for 2021 of £191,227 is unrestricted income of £191,227 and restricted income of £nil.
## **7. Investment income**
|**7. Investment income**|||||
|---|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|Total Funds|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|Income from listed investments|45,613|-|**45,613**|-|
|Bank interest receivable|69|-|**69**|1,369|
||─────|─────|─────|─────|
||45,682|-|**45,682**|1,369|
||═════|═════|═════|═════|
The total for 2021 of £45,682 is unrestricted.
## **8. Other income**
|**8. Other income**|||||
|---|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|Total Funds|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|Other income|60,279|12,135|**72,414**|24,580|
|Premises income|78,684|-|**78,684**|78,711|
||══════|══════|══════|══════|
||138,963|12,135|**151,098**|103,291|
||══════|══════|**══════**|══════|
Included in the total for 2021 of £151,098 is unrestricted income of £138,963 and restricted income of £12,135.
## **9. Raising Funds**
|**. Raising Funds**|||||
|---|---|---|---|---|
||Unrestricted|Restricted|**Total Funds**|Total Funds|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|Fundraising costs|57,295|-|**57,295**|52,534|
|Marketing costs|89,865|-|**89,865**|82,397|
|Commercial trading operations|98,605|-|**98,605**|128,912|
||────|────|────|─────|
||245,765|-|**245,765**|263,843|
||═════|═════|**═════**|══════|
Included in the total for 2021 of £245,765 is unrestricted expenditure of £245,765 and restricted expenditure of £nil.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **10. Expenditure on charitable activities by activity type**
||Activities|Support|**Total funds**|Total fund|
|---|---|---|---|---|
||undertaken directly|costs|**2021**|2020|
||£|£|**£**|£|
|Teaching and education|1,100,203|-|**1,100,203**|1,268,898|
|Learner support services|3,692,568|-|**3,692,568**|3,923,596|
|Charity support services|2,455,327|-|**2,455,327**|2,204,608|
|InFocus charity shops|430,271|-|**430,271**|402,062|
|Governance costs|-|15,636|**15,636**|28,008|
||──────|──────|──────────────||
||7,678,369|15,636|**7,694,005**|7,827,172|
||**══════**|**══════**|**══════**|**══════**|
Included in the total of £7,678,369 (2020: £7,827,172) is unrestricted expenditure of £7,398,035 (2020: £7,463,639) and restricted expenditure of £295,970 (2020: £363,533).
## **11. Taxation**
The charity’s activities fall within the exemptions afforded by the provisions of sections 466 to 493 of the Corporation Taxes Act 2010. Accordingly, there is no taxation charge in these accounts.
## **12. Net gains on investments**
||Unrestricted|Restricted|**Total Funds**|Total Funds|
|---|---|---|---|---|
||Funds|Funds|**2021**|2020|
||£|£|**£**|£|
|Unrealised gains/(losses) on
investment assets|128,807|-|**128,807**|428,834|
||══════|══════|══════|══════|
The total for 2021 of £128,807 is unrestricted.
## **13. Net income/(expenditure)**
Net income/(expenditure) is stated after charging/(crediting):
||**2021**|2020|
|---|---|---|
||**Group**|Group|
||**£**|£|
|Depreciation|**600,307**|555,152|
|Operating lease rentals|**98,699**|98,699|
|Auditors’ remuneration|**15,000**|15,000|
## **14. Staff Costs**
The total staff costs and employee benefits for the reporting period are analysed as follows:
||**2021**|2020|
|---|---|---|
||**Group**|Group|
||**£**|£|
|Wages and salaries|**4,752,646**|4,747,370|
|Social security costs|**369,017**|365,314|
|Employer contributions to pension plans|**238,408**|258,728|
|Agency staf|**599,532**|625,668|
||──────|──────|
||**5,959,603**|5,997,080|
||**══════**|**══════**|
Included in staff costs are redundancy payments totalling £12,546 (2020: £5,006).
The average head count of employees during the year was 251 (2020: 246). The number of employees whose remuneration for the year fell within the following bands were:
|||**2021**|2020|
|---|---|---|---|
|||**Group**|Group|
|||**No.**|No.|
|£60,000|to £69,999|**2**|2|
|£80,000|to £89,999|**1**|1|
|||───|───|
|||**3**|3|
|||**═══**|**═══**|
Key management personnel are made up of all Executive members (5) and remuneration totalled £323,553 (2020: £316,938).
## **15. Related party transactions**
The charity Trustees were not paid and did not receive any other benefits from employment with the charity (2020: £nil). There were reimbursements of expenses to Trustees of £195 (2020: reimbursements of expenses to Trustees of £1,069). No charity Trustee received payment for professional or other services supplied to the charity (2020: £nil).
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **16. Tangible fixed assets (charity and group)**
||**Land and**|**Motor**||**Assets under**||
|---|---|---|---|---|---|
||**buildings**|**vehicles**|**Equipment**|**construction**|**Total**|
||£|£|£||**£**|
|Cost||||||
|At 1 September 2020|10,194,484|215,985|1,457,547|-|**11,868,016**|
|Additions
Reclassifcation|-
to
-|-
-|182,983
-|10,509|**193,492**
-|
|investment property||||-||
||──────|──────|──────|──────|──────|
|**At 31 August 2021**|**10,194,484**|**215,985**|**1,640,530**|**10,509**|**12,061,508**|
||**══════**|**══════**|**══════**|**══════**|**══════**|
|**Depreciation**||||||
|At 1 September 2020|4,387,154|132,401|695,108|-|**5,214,663**|
|Charge for the year|253,390|22,291|324,626|-|**600,307**|
|Reclassifcation|to
-|-|-||**-**|
|investment property||||-||
||──────|──────|──────|──────|──────|
|**At 31 August 2021**|**4,640,544**|**154,692**|**1,019,734**|**-**|**5,814,970**|
||**══════**|**══════**|**══════**|**══════**|**══════**|
|**Carrying amount**
**At 31 August 2021**|**5,553,940**|**61,293**|**620,796**|**10,509**|**6,246,538**|
||**══════**|**══════**|**══════**|**══════**|**══════**|
|At 31 August 2020|5,807,330|83,584|762,439|-|6,653,353|
||**══════**|**══════**|**══════**|**══════**|**══════**|
|**17. (a) Fixed asset investments**||||||
|||**2021**|**2021**|2020|2020|
|||**Group**|**Charity**|Group|Charity|
|||**£**|**£**|£|£|
|Investments in subsidiaries||**-**|**100**|-|100|
|Other investments||**1,659,110**|**1,659,110**|1,518,777|1,518,777|
|||**══════**|**══════**|══════|══════|
|||**1,659,110**|**1,659,210**|1,518,777|1,518,877|
|||**══════**|**══════**|**══════**|**══════**|
## **Investments in subsidiaries (charity)**
The company owns the entire issued share capital of WESC Enterprises Limited. WESC Enterprises Limited, which is incorporated in England and Wales, gift aids its taxable profit to the charity. The registration number of WESC Enterprises Limited is 10535508. The registered office is the same as that of InFocus Charity, as disclosed in the administrative section of the Trustee’s annual report. The principal activity of the company is running catering services and provision of premises hire.
||**2021**|2020|
|---|---|---|
|**Summary proft and loss account**|**£**|£|
|Turnover|**191,227**|274,266|
|Cost of sales|**(97,716)**|(127,233)|
||──────|──────|
||**93,511**|147,033|
|Administration expenses|**(87,581)**|(117,736)|
||──────|──────|
|Operating proft|**5,930**|29,297|
|Taxation|**-**|-|
||──────|──────|
|Proft for the year|**5,930**|29,297|
||**══════**|**══════**|
|**The assets and liabilities of the subsidiary were:**|||
|Current assets|**144,531**|76,419|
|Creditors: amounts falling due within one year|**(138,601)**|(47,022)|
||──────|──────|
|Total assets less current liabilities|**5,930**|29,397|
||──────|──────|
|Aggregate share capital and reserves|**5,930**|29,397|
||**══════**|**══════**|
InFocus Charity will gift aid all taxable profits to its parent charity within 9 months of the year end, therefore there is no requirement to make a provision for taxation in the financial statements.
## **Other Investments (Charity and Group)**
||**2021**|2020|
|---|---|---|
||**Listed**|Listed|
||**investments**|investments|
||**£**|£|
|**Cost or valuation**|||
|At 1 September 2020|**1,518,777**|1,541,307|
|Additions|**11,525**|-|
|Disposals|**-**|(125,000)|
|Fair value movements|**128,807**|102,470|
|Movement in cash balances|**-**|-|
||──────|──────|
|**At 31 August 2021**|**1,659,110**|1,518,777|
||**══════**|**═════**|
## **Financial assets held at fair value**
All investments are valued at their open market rate at the balance sheet date using readily available market data.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **17. (b) Investments: Current**
||**2021**||**2021**|2020|2020|
|---|---|---|---|---|---|
||**Group**||**Charity**|Group|Charity|
||**£**||**£**|£|£|
|Cash held on deposit|**11,347**||**11,347**|95|95|
||══════|══════||══════|══════|
|**18. Investment Properties**||||||
|||**2021**|**2021**|2020|2020|
||**Group**||**Charity**|Group|Charity|
|||**£**|**£**|£|£|
|**Cost or valuation**||||||
|At 1 September|**422,500**||**422,500**|-|-|
|Reclassifcation||**-**|**-**|96,136|96,136|
|Disposals||**-**|**-**|-|-|
|Fair value movement|**-**||**-**|326,364|326,364|
||────||────|────|────|
|Carrying value at 31 August|**422,500**||**422,500**|422,500|422,500|
||════||**═════**|════|═════|
The properties were revalued as at 31 August 2021 on an open market value basis by the Trustees after taking appropriate professional advice. The properties are accessed via a private road over which permissive rights exist for educational purposes only. The limitations due to the ownership of the access roads and services to both properties mean that the charity could only expect to realise an estimated 50% of any disposal proceeds. The fair value therefore reflects this restriction.
## **19. Debtors**
|**19. Debtors**|||||
|---|---|---|---|---|
||**2021**|**2021**|2020|2020|
||**Group**|**Charity**|Group|Charity|
||**£**|**£**|£|£|
|Trade debtors|**231,208**|**173,679**|258,113|211,810|
|VAT recoverable|**1,100**|**1,100**|1,104|1,104|
|Prepayments and accrued income|**563,530**|**563,530**|164,988|164,988|
|Other debtors|**2,825**|**2,825**|6,422|6,422|
|Amounts owed by group undertakings|**-**|**124,828**|-|29,665|
||────|────|────|────|
||**798,663**|**865,962**|430,627|413,989|
||════|**═════**|════|═════|
## **20. Creditors: amounts falling due within one year**
||**2021**|**2021**|2020|2020|
|---|---|---|---|---|
||**Group**|**Charity**|Group|Charity|
||**£**|**£**|£|£|
|Trade creditors|**143,309**|**139,183**|194,525|183,101|
|Amounts due to group undertakings|**-**|**-**|-|-|
|Social security and other taxes|**123,452**|**113,805**|18,875|12,959|
|Other creditors|**30,462**|**30,462**|66,692|66,692|
|Accruals and deferred income|**169,267**|**169,267**|222,835|222,818|
||────|────|────|────|
||**466,490**|**452,717**|502,927|485,570|
||════|**═════**|════|═════|
Deferred income comprises grant and fee income that relates to future periods which has been received in advance.
Deferred income comprises the following:
|Deferred income comprises the following:||||
|---|---|---|---|
||Capital|Charitable||
||grants|activities|**Total**|
||£|£|**£**|
|At 1 September 2020|-|34,938|**34,938**|
|Deferred in current period|-|30,221|**30,221**|
|Released to Statement of Financial Activities|-|(29,854)|**(29,854)**|
||────|────|────|
|At 31 August 2021|-|35,305|**35,305**|
||════|**════**|**════**|
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
|**Restricted fxed asset funds**
St David's House Appeal
Water Therapy Pool
Topsham Road
Other
Total
**Restricted general funds**
Day services
Site development
Activities for young people
Supporting independence
Vehicle & transport
Family fund
Research
Miscellaneous
**Grants**
Pupil premium
Bursaries and grants
ESFA/DFC
Access to work
Student purchases
Talking tills
Family fund
Education
Total
**Total restricted funds**
Designated
funds
–
contingency
Designated
funds
–
site
improvement
General unrestricted funds
**Total unrestricted funds**
**Total funds**|At 1
September
2020
£
459,412
341,784
13,133
248,289
1,062,618
4,460
36,196
81,783
74,393
28
-
8,787
7,853
7,987
14,598
65,600
14,327
6,828
75
520
5,520
328,955
1,391,573
200,000
500,000
7,222,630
7,922,630
9,314,203|Income
£
-
-
-
-
**-**
10
40,627
2,030
1,997
-
-
-
150
2,220
3,627
45,482
8,947
3,188
-
-
-
**108,278**
**108,278**
-
-
7,774,125
**7,774,125**
**7,882,403**|Expenditure
£
(49,037)
(24,801)
(3,223)
(186,757)
**(263,818)**
(910)
8,914
(6,643)
(22,087)
-
-
-
(48)
(1,847)
(3,258)
-
(2,323)
(3,950)
-
-
-
**(32,152)**
**(295,970)**
-
-
(7,643,800)
**(7,643,800)**
**(7,939,770)**|Transfers
£
-
-
-
82,256
**82,256**
-
(56,630)
(2,501)
(17,605)
-
520
-
-
555
(6,009)
(65,600)
(14,327)
(2,759)
1
(520)
(5,520)
**(88,139)**
**(88,139)**
-
-
88,139
**88,139**
**-**|**At 31**
**August**
**2021**
**£**
**410,375**
**316,983**
**9,910**
**143,788**|
|---|---|---|---|---|---|
||||||**881,056**
**3,560**
**29,107**
**74,669**
**36,698**
**28**
**520**
**8,787**
**7,955**
**8,915**
**8,958**
**45,482**
**6,624**
**3,307**
**76**
**-**
**-**|
||||||**234,686**|
|||||||
||||||**1,115,742**|
||||||**200,000**
**500,000**
**7,441,094**|
||||||**8,141,094**|
|||||||
||||||**9,256,836**|
## **Notes**
- Income for general and restricted funds includes the net unrealised gain on investments.
- Transfers include Capital Items and Adjustments.
## **21. Analysis of charitable funds (group)**
The St David’s House appeal was towards the building of a special unit to house children who are not only blind but also have other severe handicaps.
The Water Therapy Pool fund was established to create a new pool for therapeutic, sporting and recreation purposes.
Topsham Road fund was used to help purchase a property which will be used as a transition house for students of the College.
Other fixed asset funds are donations which have been received to purchase specific equipment which has been capitalised.
## **Pupil Premium**
Additional funding received from local authorities target those students from low income families who need the most in order to raise attainment.
## **Bursary & Grants**
Funds received from the ESFA to support young people (post year 11) in need of financial support meet additional costs to help them remain in full time education.
## **Day Services**
Funds used for the benefit of young adults attending Adult Day Services at InFocus Charity.
## **Activities for Young People**
To fund interactive activities for students and young adults at InFocus Charity.
## **Supporting Independence**
Funds used to provide equipment and opportunities in all areas of InFocus Charity to help enable the engagement and independence of students and young adults in daily activities.
## **Site Development**
Funds used for the improvement and renovations of the InFocus Charity site for the benefit of the students and young adults.
## **Vehicle & Transport**
To fund the requirement for vehicles at InFocus Charity used for the mobility of students and young adults so they can access activities off-site.
## **Research**
Restricted funds used for specific research projects at InFocus Charity specifically around visual impairment and multi-sensory disability. Examples have been the Comic Relief funding of the development of the Eyelander Game.
## **Enterprise**
Funds used to promote social enterprise at InFocus Charity, to ensure space and equipment facilitate student’s engagement in social enterprise.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
## **EPOS/Till System**
Funds used to create a specialised talking till system for VI
## **ESFA/DFC**
Annual grants and/or bursaries received from the Department for Education and/or ESFA to help maintain and improve the condition of School buildings and grounds.
## **Access to Work**
Monies received to support individuals in the workplace and those requiring reasonable adjustments.
## **Student Equipment**
Money received from LA’s as part of a services user’s package designated for specific specialist equipment.
## **Family Fund**
Assist families with one-off travel costs for events at InFocus Charity.
## **Education Pods**
To fund standalone education pods to provide additional breakout areas for students.
## **22. Analysis of net assets between funds (group)**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2021**|
||£|£|**£**|
|Tangible fxed assets|5,365,482|881,056|**6,246,538**|
|Investments|1,659,110|-|**1,659,110**|
|Investment properties|422,500|-|**422,500**|
|Current assets|1,155,409|239,770|**1,395,179**|
|Creditors less than 1 year|(461,407)|(5,084)|**(466,491)**|
||────|────|────|
|**Net assets**|8,141,094|1,115,742|**9,256,836**|
||═════|**═**═**════**|═════|
## **23. Prior year restricted funds note and analysis of net assets between funds**
||||At 1|Income|Expenditure|Transfers|**At 31**|
|---|---|---|---|---|---|---|---|
||||September||||**August**|
||||2019||||**2020**|
|**Restricted fxed asset funds**|||£|£|£|£|**£**|
|St David's House Appeal|||508,449|-|(49,037)|-|**459,412**|
|Water Therapy Pool|||366,585|-|(24,801)|-|**341,784**|
|Topsham Road|||16,356|-|(3,223)|-|**13,133**|
|Other|||312,098|-|(137,971)|74,162|**248,289**|
||||────|────|────|────|────|
|Total|||1,203,488|**-**|**(215,032)**|**74,162**|**1,062,618**|
|**Restricted general funds**||||||||
|Day services|||4,460|-|-|-|**4,460**|
|Site development|||88,860|44,979|(71,321)|(26,321)|**36,196**|
|Activities for young people|||107,565|1,292|(3,680)|(23,393)|**81,783**|
|Supporting independence|||74,476|31,233|(6,866)|(24,452)|**74,393**|
|Vehicle & transport|||28|-|-|-|**28**|
|Research|||10,593|1,192|(2,998)|-|**8,787**|
|Miscellaneous|||6,131|2,438|(720)|4|**7,853**|
|Social enterprise|||-|-||||
|**Grants**||||||||
|Pupil premium|||11,737|555|(4,305)|-|**7,987**|
|Bursaries and grants|||12,061|2,537|-|-|**14,598**|
|ESFA/DFC|||51,682|65,600|(51,682)|-|**65,600**|
|Access to work|||19,282|8,472|(13,427)|-|**14,327**|
|Student purchases|||6,777|4,882|(4,831)|-|**6,828**|
|Talking tills|||75|-|-|-|**75**|
|Family fund|||-|1,000|(480)|-|**520**|
|Education|||-|-|5,520|-|**5,520**|
||||────|────|────|────|────|
|Total|||393,727|**164,180**|**(154,790)**|**(74,162)**|**328,955**|
||||────|────|────|────|────|
|Total restricted funds|||1,597,215|164,180|(369,822)|-|**1,391,573**|
|Designated funds - contingency|||200,000|-|-|-|**200,000**|
|Designated
funds
improvement|–|site|500,000|-|-|-|**500,000**|
|General unrestricted funds|||7,251,145|7,263,844|(7,721,193)|428,834|**7,222,630**|
||||────|────|────|────|────|
|Total unrestricted funds|||7,951,145|7,263,844
|(7,721,193)|428,834|**7,922,630**|
||||────|────|────|────|────|
|Total funds|||9,548,360|**7,428,024**|**(8,091,015)**|**428,834**|**9,314,203**|
||||═══════|═══════|════════|═══════|═══════|
## **Notes**
- Income for general and restricted funds includes the net unrealised gain on investments.
- Transfers include Capital Items and Adjustments.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2020**|
||£|£|**£**|
|Tangible fxed assets|5,665,301|988,052|**6,653,353**|
|Investments|1,518,777|-|**1,518,777**|
|Current assets|813,895|408,605|**1,222,500**|
|Creditors less than 1 year|(497,843)|(5,084)|**(502,927)**|
|Net assets|7,922,630|1,391,573|**9,322,203**|
||══════|══════|══════|
## **24. Operating lease commitments (Group)**
The total future minimum lease payments under non-cancellable operating leases are as follows:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Not later than 1 year|**48,170**|85,427|
|Later than 1 year and not later than 5 years|**35,200**|25,393|
||────|────|
||**83,370**|110,820|
||**═════**|═════|
## **Operating leases - lessor (Group)**
The total future minimum lease payments under non-cancellable operating leases are as follows:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Not later than 1 year|**16,550**|19,300|
|Later than 1 year and not later than 5 years|**-**|16,550|
||────|────|
||**16,550**|35,850|
||**═════**|**═════**|
|**25. Analysis of cash and cash equivalents (Group)**|||
||**2021**|2020|
|Cash in hand|**£**
**585,169**|£
791,778|
||────|────|
||**585,169**|791,778|
||**═════**|**═════**|
**26. Financial instruments**
## **Categorisation of financial instruments**
||**2021**|2020|
|---|---|---|
||**£**|£|
|**Financial assets:**|||
|Measured at fair value|**2,081,610**|1,941,277|
|Measured at amortised cost|**231,208**|258,113|
||═════|═════|
|**Financial liabilities:**|||
|Measured at amortised cost|**169,645**|261,217|
||══════|══════|
## **27. Pensions and other post-retirement benefits**
The Charity’s employees belong to three principal pension schemes: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; the InFocus Charity pension scheme with Friends Life which is closed to new entrants and a NEST Pension Scheme.
The latest actuarial valuation of the TPS related to the period ended 31 March 2016.
Contributions amounting to £29,572 (2020 - £12,959) were payable to the schemes at 31 August and are included within creditors. The amounts recognised in income or expenditure as an expense in relation to defined contribution plans was £238,408 (2020: £258,728).
## **Teachers’ Pension Scheme**
The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.
The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis - these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
## **Valuation of the Teachers’ Pension Scheme**
Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors.
The latest actuarial valuation of the TPS was carried out as at 31 March 2016 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education on 5 March 2019.
InFocus Charity Trustees’ Report and Annual Accounts for the year ended 31 August 2021
The key elements of the valuation and subsequent consultation are:
- Employer contribution rates set at 23.68% of pensionable pay (this includes an additional 0.8% following agreement between the Department for Education and HM Treasury to delay the increase in employer contribution rates until 1 September 2019, and also an additional 0.08% employer administration charge)
- Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million giving a notional past service deficit of £22,000 million
- The assumed real rate of return is 2.8% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return is 4.86%.
The TPS valuation for 2012 determined an employer rate of 16.4%, which was payable from September 2015. The latest valuation of the TPS is as at March 2016, whereupon the employer contribution rate has increased as per above and was payable from 1 April 2019.
Under the definitions set out in Financial Reporting Standard 102 (FRS 102), the TPS is a multi-employer pension scheme. The School has accounted for its contributions to the scheme as if it were a defined contribution scheme. The School has set out above the information available on the scheme.