2021-03-31-accounts - Progress To Change

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								Page
Trustees'	annual report (incorporating			the	director's	report and CE(rs report)
Independent auditor's		report to	the members					10
Statement	of finanmal	activities	(including		income and expenditure		account)	12
Statement	of hnancial	position						13
Statement	ofcash flows
Notes to the financial		statements						15

The trustees,	The trustees,	The trustees,	who are	who are		also the directors	also the directors	for the purposes ofcompany	for the purposes ofcompany	for the purposes ofcompany	for the purposes ofcompany	law,	present	present	present	their report and the financial statements	their report and the financial statements
charity for		the year		ended 31 March 2021.
Reference		and administrative					details
Registered			charity	name				Progress to Change
Charity	registration				number			1065423
Company		registration				number		3286672
Principal	office and				registered			63 Clarendon Road
office								Leeds
								LS2 9NZ
The trustees								Mrs J Dilks (Chairman)
								Mrs D Favre
								Mr N Wainman
								Rev M A Whalmough								(Resigned	15September 2020)
								Mrs L E Hague Prof0 Matthias								(Resigned (Appointed	30April 2020) 15September 2020)
								Mrs C Cochrane
								Prof A W M Hay
								Dr EWincup
								Mrs S Mondon
								Mr R Brook								(Appointed	30April 2020)
Key management				personnel				Chief Executive - Mrs		L	Cantley
								Finance Manager-	Mm		R	Kyle
								Ripon House Hostel	Manager-				Mrs		E	Falk
								Cardigan House Hostel			Manager			-	Mrs	C Maguire
Trustees	Secretary							Mrs TGradys
Auditor								Gibson Booth
								Chartered Accountants			&Statutory				Auditors
								New Court
								Abbey Road North
								Shepley
								Huddersfield
								HD8 8BJ
Bankers								National Westminster		Bank pic
								Leeds City Office Branch
								8 Park Row
								Leeds
								LS1 5HD
Solicitors								Wrigleys Solicitors LLP
								19Cookridge Street
								Leeds
								LS2 3AG
Investment		managers						COLA
								Senator House
								85 Queen Victoria Street
								Lodnon
								EC4V4ET

Why reserves are needed
As part of its Risk Assessment, the	Board has established	that	the Charity needs	to maintain		short-term		and long-term		reserves
to reduce the impact of risks from both internal and external		fedora.
~ As owner ofthe two properties	Cardigan House and Ripon		House, the Board needs to hold sufficient					reserves to cover major
building works which are not funded by the MoJ.
~ The two Approved Premises	need to hold short-term	reserves to meet costs of unplanned events and							planned	internal
maintenance ofthe buildings
~ The Board also has overall responsibility for the staff		employed and, should		income be		disrupted	the Charity need to				hold
sufficient reserves to meet ongoing costs and commitments			until further funding		is secured.
~ Reserves are also required to	meet the WYPF defined	benefit liabilities given			that only	80% funding		has	been secured		for
the current financial year 2020/2021 and for 2021/2022.
Level ofReserves
Given the stated background as to why reserves are needed, reserves off2337696(2020:f1811,021)are at an appropriate			the trustees are of level to enable the	the view that the level of unrestricted income charity to meet its objectives and continue as
a Going Concern.
Investment ofreserves
The reserves ofthe Charity are held	in the freehold property,	investments managed			by COLA,	and short-term bank accounts.
With regard to risk, as the balance	of the Central Reserves	Fund increases, investment advice will be					sought		by the Trustees
when necessary.

			2021		2020
			Unrestricted
		Note	funds f	Total funds f	Total funds f
Income and endowments
Donations and legacies		5	50	50	300
Charitable activities		6	2,078,864	2,078,864	1,904,509
Investment income		7	8,357	8,357	8,113
Total income			2,087,271	2,087,271	1,912,922
Expenditure
Expenditure on charitable	actwities	8,9	(1,746,437)	(1,746,437)	(1,942,042)
Total expenditure			(1,746,437)	(1,746,437)	(1,942,042)
Net gains on inves!ments			325,841	325,841	10,209
Net income/(expenditure)			666,675	666.675	(18,911)
Other recognised gains and losses
Gains from revaluation of fixed assets					700,000
Actuarial (losses)/gains on	defined benefit pension schemes		(154,000)	(154,000)	115,000
Net movement in funds			512,675	512,675	796,089
Reconciliation offunds
Total funds brought forward			2,311,134	2,311,134	1,515,045
Total funds carried forward			2,823,809	2,823,809	2,311,134

					2021	2020
				Note	8
Fixed assets
Tangible fixed assets				15	1,997,397	2,003,782
Investments				16	1,740,112	1,371,556
					3,737,509	3,375,338
Current assets
Debtors				17	167,283	543,746
Cash at bank and in hand					333,364	295,073
					500,647	838,819
Creditors: amounts	faglng due wltMn one year			18	(84,347)	(587,023)
Net current Uabgltles					418,300	251,796
Total assets less current liabilities					4,153,809	3,627,134
Net assets excfudlng		defined benefit pension	plan liabglty		4,153,809	3,627,134
Defined benefit pension		plan liabfiity		20	(1,330,000)	(1,316,000)
Net assets including	defined benefit pension		plan Uabgity		2,823,809	2,311,134
Funds ofthe charity
Unrestricted funds:
Revaluation reserve					1,816,113	1,816,113
Defined benefg pension reserve Other unrestricted income funds					(1,330,000) 2,337,696	(1,318,000) 1,811,021
Total unrestricted funds					2,823,809	2,311,134
Total charity funds				21	2,823,809	2,311,134

			2021	2020
Cash fiows from operating activities
Net income/(expenditure)			666,675	(18,911)
Adjustments for.
Depreciation oftangible fixed assets Net gains on investments Dividends, interest and rents from Investments Interest payable and similar charges Delinsd benefit pension plan employer contributions Accrued (Income)/expenses Service cost ofdefined benefit pension scheme			40,851 (325,841) (8,357) 27,000 (35,000) (15,336) (132,000)	40,167 (10,209) (8,113) 31,000 253,000 29,701 (187,000)
Chengesln:
Trade and other debtom Trade end other creditors			376,463 (487,340)	(471,010) 415,954
Cash generated from operations			107,115	74,579
Nst cash from operating activities			107,115	74,579
Cash flows from Investing activities
Dividends, interest and rents from Investments Purchase oftangible assets Purchases ofother Investments Proceeds from sale ofother investments			8,357 (34,466) (42,715)	8,113 (97,244) (41,000) 29,000
Net cash used In investing activities			(68,824)	(101,131)
Nst Increase/(decrease) In cash and cash Cash and cash equivalents at beginning		equivalents ofyear	38291 295,073	(26,552) 321,625
Cash and cash equivalents at snd of	year		333,364	295,073

ife ofthat	asset as follows:
Fixtures	and fittings	25% straight	line
Computer	equipment	25% straight	line

6,	Donations	and legacies	and legacies
						Unrestricted	Total Funds	Unrestrided	Total Funds
						Funds f	2021 f	Funds f	2020 f
	Donations					50	50	300	300
6.	Charitable	activities
						Unrestncted	Total Funds	Unrestncted	Total Funds
						Funds	2021	Funds	2020
						5	6	6	6
	Ministry of	Justice grants				2,012,539	2,012,539	1,834,998	1,834,998
	Income from		residents			35,490	35,490	62,025	62,025
	Government		grant income			23,254	23,254
	Other income					7,581	7,581	7,486	7,486
						2,078,864	2,078,864	1,904,509	1,904,509
7.	Investment	Income
						Unrestricted	Total Funds	Unrestricted	Total Funds
						Funds 6	2021 f	Funds f	2020 f
	Investment	income				8,357	8,357	8,113	8,113
8.	Expenditure		on charitable	activities	by fund type
						Unrestricted	Total Funds	Unrestricted	Total Funds
						Funds 6	2021 f	Funds f	2020 f
	Staff costs					1,352,805	1,352,805	1,410,478	1,410,478
	Premises costs					163,052	I63,052	222,211	222,211
	Suppkes and		services costs			69,654	69,654	111,588	111,588
	Establishment		costs			123,312	123,312	156,108	156,108
	Finance costs					27,000	27,000	31,000	31,000
	Support costs					10,614	10,614	10,657	10,657
						1,746,437	1,746,437	1,942,042	1,942,042

Expenditure	on charitable activities by	activity type
		Activities
		undertaken
		directly 6	Support costs 6	Total funds 2021	Total fund 2020 f
Staff costs		1,352,805		1,352,805	1,410,478
Premises costs		163,052		163,052	222,211
Supplies and	services costs	69,654		69,654	111,588
Establishment	costs	123,312		123,312	156,108
Finance coals		27,000		27,000	31,000
Governance	costs		10,614	10,614	10,657
		1,735,823	10,614	1,746,437	1,942,042

												Governance	Governance
													costs	Total 2021	Total 2020
													F	f	f
	Staff costs											10,614		10,614	10,409
11.	Net gains on investments
										Unrestricted		Total	Funds	Unrestricted	Total Funds
											Funds f		2021 F	Funds f	2020 f
	Net gains on	investments								325,841		325,841		10,209	10,209
12.	Net income/(expenditure)
	Net income/(expenditure)				is stated	affer	charging/(crediting).
														2021 f	2020 f
	Depreciation	oftangible		fixed assets										40,851	40,167
	Fees payable	for the audit			ofthe finanaal statements									4,030	3,910
13.	Staff costs
	The total staff	costs and	employee			benefits for		the	reporting		period are analysed		as follows.
														2021	2020
														f
	Wages and salaries													1,131,294	1,122,881
	Social security costs													83,448	89,675
	Employer contributions		to		defined	contribution		pension		plans				16,677	21,331
	Employer contributions		to		defined	benefit pension			plans					132,000	187,000
														1,363,419	1,420,887
	The average	head count		of employees			during	the	year was		89 (2020: 87). The average			number of full-time	equivalent
	employees during the year				is analysed as follows:
														2021	2020
														No.	No.
	Cardigan House approved				premises									18	18
	Ripen House	approved	premises											16	16
	Secretary													1	1
														35	35

Tangible fixed assets
	Land and	Fixtures and	Computer
	buildings f	fittings f	equipment f	Total f
Cost or valuation
At 1 April 2020	1,900,000	375,351	9,864	2,285,215
Additions		34,466		34,466
At 31 March 2021	1,900,000	409,817	9,864	2,319,681
Depreciation
At 1 April 2020		273,665	7,768	281,433
Charge for the year		39,836	1,015	40,851
At 31 March 2021		313,501	8,783	322,284
Carrying amount
At 31 March 2021	1,900,000	96,316	1,081	1,997,397
At 31 March 2020	1,900,000	101,686	2,096	2,003,782

	Listed
	mvestmentsf
Cost or valuation
At 1 Apnl 2020	1,371,556
Additions	42,715
Other movements	325,841
At 31 March 2021	1,740,112
Impairment
At 1 April 2020 and 31 March 2021
Carrying amount
At 31 March 2021	1,740,112
At 31 March 2020	1,371,556

						2021	2020
						f	f
	Trade debtors					137,778	481,867
	Prepayments	and accrued income				14,291	61,879
	Other debtors					15,214
						167,283	543,746
18.	Creditors: amounts			falling due within one year
						2021 6	2020 f
	Trade creditors					6,825	47,738
	Accruals and deferred			income		44,087	533,138
	Other creditors					33,435	6,147
						84,347	587,023
19.	Deferred income
						2021	2020
						f	f
	At 1 April 2020					473,715
	Amount released		to income			(473,715)
	Amount deferred		in year				473,715
	At 31 March 2021						473,715
20.	Pensions and	other post retirement			benefits

Principal	Actuarial	Actuarial	Assumptions	Assumptions	Assumptions
										2021			2020	2019
Discount	rate										2 1%		2 3%	24%
RPI inflation														3.3%
DPI inflation											2 7%		1 9%	2	2%
Rate of	increase to		pensions		in payment						2 7%		1 g%	2	2%
Rate of	increase to		deferred		pensions						2 7%		1 9%	2	2%
Rate ofgeneral		increase		in	salaries					3.95%			3.15%	3.45%
The mortality assumptions				are based on		the recent adual		mortalily	experience ofmembers				within the Fund	and allow	for
expected	future	mortality		improvements.		The assumed	life	expectations		on retirement		age 65 are:
										2021			2020	2019
Retiring	today:
Males											22		22		22
Females											25		25		25
Retiring	m twenty years.
Males											23		23		23
Females											26		26		27
The approximate		spfit of		assets for the Fund as a whole (based on					data	supplied	by the Fund Administering			Authority)	is
shown in	the table below.

									2021	2020	2019
Equities									79.7%	77.5%	74.0%
Property									38%	4.5'/o	4.7'/r
Government bonds									83%	96%	112%
Corporate bonds									4 6%		4 0%
Cash									2 0%	1.9%	2 3%
Other									1 6%	1 4'/	3 8o/,
Total										100	100
The actual return on the			scheme assets was		f814,000 (2020:(F367,000))
Sensitivity analysis	on	defined		benefit obligations		are:
									2021 f	2020 f	2019 f
Discount rate+ 01% Discount rate -0.1%									5,492,000 5,704,000	4,538,000 4,712,000	4,943,000 5,115,000
Mortality assumption Mortality assumption	+ 1 year -1 year			increase decrease					5,610,000 5,584,000	4,474,000 4,775,000	4,870,000 5,187,000
Salary rate +0.1%									5,802,000	4,634,000	5,043,000
Salary rate - 0.1%									5,394,000	4,615,000	5,013,000
The statement offinandal			position net defmed		benefit		liability	is determined	as follows:
										2021	2020
Present value ofdefined Fair value of plan assets			benefit obligations							(5,595,000) 4,265,000	(4,624,000) 3,308,000
										(1,330,000)	(1,316,000)

Pensions and other post retirement benefits	Pensions and other post retirement benefits	Pensions and other post retirement benefits	Pensions and other post retirement benefits	(continued)
Changes in the present value	ofthe	defined	benefit obligations		are as follows:
							2021
							f
At 1 April 2020 Current service cost Interest expense Benefits paid Contributions by plan participants Remeasurements:							4,624,000 132,000 105,000 (180,000) 24,000
Actuarial gains and losses							890,000
At 31 March 2021							5,595,000
Changes in the fair value of plan assets are			as follows.
							2021
At 1 April 2020 Interest Income Benefits paid Contributions by employer Contributions by plan participants Remeasurements:							3,308,000 78,000 (180,000) 299,000 24,000
Actuarial gains and losses							736,000
At 31 March 2021							4,265,000
The total costs for the year in relation		to defined		benefit plans are as follows
						2021 f	2020 f
Recognised in income or expenditure:
Current service cost Past service credit Net interest expense						132,000 27,000	139,000 48,000 31,000
						159,000	218,000
Recognised in other recognised	gains	and losses
Remeasurement ofthe liability:
Actuanal gains and losses						154,000	(115,000)

Unrestricted	funds
								Gains and
		At	1 Apr 2020 f		income f	Expenditure f	Transfers f	losses At 31 Mar 2021 f f
Unrestricted	Funds			956,921	2,087,271	(1,886,437)	229,600	325,841	1,713,196
Revaluation	reserve			1,816,113					1,816,113
Pension			(1,316,000)			140,000		(154,000)	(1,330,000)
Designated	funds
Cessation fund				80,000					80,000
Redundancy	fund			118,000					118,000
Building fund				200,000					200,000
Pension fund				456,100			(229,600)		226,500
			2,311,134		2,087,271	(1,746,437)		171,841	2,823,809
								Gains and
		At	1	Apr 2019 f	Income f	Expendilure f	Transfers f	losses At 31 Mar 2020 f f
Unrestncted	Funds		1,732,932		1,912,922	(1,845,042)	(854,100)	10,209	956,921
Revaluation	reserve		1,116,113					700,000	1,816,113
Pension			(1,334,000)			(97,000)		115,000	(1,316,000)
Designated	funds
Cessation fund							80,000		80,000
Redundancy	fund						118,000		118,000
Building fund							200,000		200,000
Pension fund							456,100		456,100
			1,515,045		1,912,922	(1,942,042)		825,209	2,311,134

22.	Analysis of ne	t ass	e	ts	between funds
									Unrestricted	Total Funds
									Funds	2021
										f
	Tangible fixed	assets							1,997,397	1,997,397
	Investments								1,740,112	1,740,112
	Current assets								500,647	382,967
	Creditors less	than	1	year					(84,347)	(84,347)
	Defined benefit pension								(1,330,000)	(1,330,000)
	Net assets								2,823,809	2,706,129
									Unrestricted	Total Funds
									Funds	2020
									f	f
	Tangible fixed	assets							2,003,782	2,003,782
	Investments								1,371,556	1,371,556
	Current assets								838,819	838,819
	Creditors less than		1	year					(587,023)	(587,023)
	Defined benefit	pension							(1,316,000)	(1,316,000)
	Net assets								2,311,134	2,311,134
23.	Analysis ofchanges			in	net debt
							At 1	Apr 2020 f	Cash flows f	At 31 Mar 2021 f
	Cash at bank and in		hand					295,073	38,291	333,364
24.	Operating lease commitments
	The total future	minimum			lease payments	under non-cancellable	operating	leases are as follows.
									2021	2020
									f	f
	Not later than 1 year								5,573	5,573
	Later than 1 year and			not	later than 5 years				13,932	19,505
									19,505	25,078