## **Pioneering Care Partnership** Report to the Trustees following the audit of the financial statements for the year ended 31 March 2022 The Trustees Pioneering Care Partnership Carer’s Way Newton Aycliffe DL5 4SF 26 July 2022 Dear Trustees ## **Audit for the year ended 31 March 2022** Following the completion of our audit fieldwork on the financial statements of Pioneering Care Partnership for the year ended 31 March 2022 we have the pleasure of submitting our Report to Management, setting out the most significant matters which have come to our attention during our audit and of which we believe you need to be aware of when considering the financial statements. The matters included in this report have been discussed with management of Pioneering Care Partnership during the audit and at our closing meeting on 12 July 2022. We would like to express our appreciation for the assistance provided to us by the finance team and other staff at the charity during the audit. ## **Use of this report** The procedures that we carry out are designed to provide us with reasonable assurance that the financial statements, taken as a whole, are free of material misstatement. They are not designed to disclose all errors or weaknesses in controls that exist and we report only on those that we have discovered during the course of our work. This report has been prepared for the Trustees’ information only and is not intended to include every matter that may have come to our attention. We accept no responsibility for any reliance that might be placed on it for any purpose by third parties, to whom it should not be shown without our prior written consent. Yours sincerely ## **Haines Watts** 2 ## **Pioneering Care Partnership Contents** **Page** 4-5 Audit overview 6-7 Significant matters arising from the audit 8 System and control weaknesses Appendices 9-11 Developments in the Sector 12-14 Letter of Representation 3 ## **Pioneering Care Partnership Audit Overview** ## **Audit scope and approach** Our audit work has been undertaken for the purpose of forming our audit opinion on the financial statements of Pioneering Care Partnership prepared by management with the oversight of the trustees and has been carried out in accordance with International Standards on Auditing (UK) (ISAs). Our work combined substantive procedures, involving on a test basis direct verification of transactions and balances (including obtaining confirmations from third parties where we consider it necessary), with a review of your financial systems and controls where we considered relevant to our audit. No limitations were placed on our work. This report refers only to material matters we have identified during the course of the audit of the financial statements of Pioneering Care Partnership for the year ended 31 March 2022 and which, in our professional opinion, are of sufficient importance to merit your attention. These matters are included within subsequent sections to this report. You should note that our evaluation of the systems of control at Pioneering Care Partnership was carried out for the purpose of our audit and it is not intended to be a comprehensive review of systems and processes. ## **Communicating significant findings from out audit** We are required by the ISAs to communicate with the trustees as “those charged with governance” various matters from our audit including: - our views about significant qualitative aspects of the charity’s accounting practices, including accounting policies, accounting estimates and financial statement disclosures; - significant difficulties, if any, encountered during the audit; - any significant matters arising during the audit and written representations we are requesting; - circumstances that affect the form and content out our audit report, if any; and - any other significant matters brought to our attention during the audit. 4 ## **Pioneering Care Partnership Audit Overview** ## **Materiality and identified misstatement** For the purpose of the audit we calculated materiality for the year ended 31 March 2022 to be £40,500 with performance materiality being £32,700. To assist you in fulfilling your governance responsibilities, which include maintaining oversight of the financial reporting process and the effectiveness of the system of internal control, we include, as part of Appendix B, a list of misstatements that were detected during the course of the audit. The adjustments processed within the financial statements have been agreed with the Chief Executive, Carol Gaskarth. There are no items that remain unadjusted which exceed the clearly trivial limit, which was set at £1,000. ## **Financial statements** The trustees of Pioneering Care Partnership are responsible for the preparation of the financial statements on a going concern basis (unless this basis is not appropriate). The trustees are also responsible for ensuring that the financial statements give a true and fair view, that the process your management go through to arrive at the necessary judgements is appropriate and that any disclosure on going concern is appropriately made within the financial statements. ## **Audit opinion** We have provided an unqualified audit opinion on the financial statements of Pioneering Care Partnership for the year ended 31 March 2022. 5 ## **Pioneering Care Partnership Significant matters arising from the audit** We reported in our Planning Communication Letter (dated 21 April 2022) a number of areas we identified as having specific audit risk, we have commented below on the work undertaken in these areas as well as any other additional key risks, judgements or other matters in relation to the financial statements of Pioneering Care Partnership identified during the course of the audit. |audit.||| |---|---|---| |**MATTER IDENTIFIED**|**AUDIT IMPACT**|**RESPONSE**| |**Revenue recognition**
In accordance with the ISAs completeness and
existence of income and cut-off is always
considered a significant risk.|The financial statement may contain material
misstatement as a result of inconsistent
recognition with accounting policies.|A sample of grant and contract income was agreed back to documentation.
Walkthroughs were performed on each income stream, along with transactional testing.
Income is reviewed around the year end to ensure recorded in the appropriate period.| |**Management override**
The ISA’s state that this is always deemed to be
high risk for an audit.|The financial statements may contain material
misstatements as a result of fraud or error
due to management override of controls.|Walkthroughs were performed on all material areas of the financial statements to
ensure that key controls in place are followed.
A sample of journals were reviewed and agreed to supporting documentation| 6 ## **Pioneering Care Partnership Significant matters arising from the audit** |**MATTER IDENTIFIED**|**AUDIT IMPACT**|**RESPONSE**| |---|---|---| |**ISA 540 – Accounting estimates**
ISA 540 includes revised audit requirements
that are more specifically directed at the
components of an accounting estimate.|This increases the documentation and review
of higher risk areas, along with increased
disclosure in the financial statements.|We identified support cost allocation as a key accounting estimate highlighted in our
planning communication letter.
We reviewed the assumptions in place for support cost allocations.| |**ISA 570 – Going concern**
The revised ISA 570 requires more reporting to
ensure that the underlying budget assumptions
and forecasts are realistic and free from
management bias.|The auditor’s will perform a detailed review
of the directors’ assessment of the going
concern and the information provided for a
period of at least 12 months post audit report
date.|We undertook a review of managements assessment of going concern, including stress
testing budgets provided to us.
The entity remains a going concern for the year ended 31 March 2022.| |**ISA 240 – Auditors Responsibility relating to**
**Fraud**
An Auditor is responsible for obtaining
reasonable assurance that the financial
statements taken as a whole are free from
material misstatement, whether caused by
fraud or error.|The auditor's report shall explain to what
extent the audit was considered capable of
detecting irregularities, including fraud. This
explanation shall be specific to the
circumstances of the charity and work
undertaken during the audit.|We have enquired with management of any frauds during the year, through discussions
and review of records during the audit.
These procedures have been detailed within the audit report in line with the changes to
the ISA.| 7 ## **Pioneering Care Partnership Systems and controls issues** We have set out below certain potential improvements to the charity’s processes and controls which we noted during our audit work. In order to provide you with a clear picture of the significance of the issued raised, we have graded the issues by significance/priority. |High|These finding are significant and require urgent attention| |---|---| |Medium|These findings are less urgent but still require reasonably prompt action| |Low|These finding merit attention within an agreed timescale| |**AUDIT FINDINGS**|**RECOMMENDATIONS**|**PRIORITY**|**MANAGEMENT RESPONSE**| |---|---|---|---| |During a walkthrough on reception sales income, it was
noted that there was a lack of segregation of duties
between the member of staff cashing the monies in the
bank and the person entering the details on the
nominal.|A 3-way check between the till records, cash
banked and nominal should be undertaken.||Systems and processes have been checked and refined to
take account of suggestions at Audit.
Segregation is now achieved through the following;
1. Daily cashing up sheets to be scanned and emailed to the
Finance generic email address;
2. This daily record will then be stored on the finance
system;
3. A separate member of the finance team will complete the
banking and the ledger;
4. Quarterly a sample will be spot checked by the Finance
Manager.
This process will be implemented from1st September2022| 8 ## **Pioneering Care Partnership Appendix A – Developments in the sector** ## **Charity Commission publications** The Charity Commission have a number of publications offering guidance; the following have been updated over the last year: - Protect your charity from fraud and cyber crime (October 2021) ## **Charity governance, finance and resilience – 15 questions trustees should ask** CC3 – The essential trustees set out six key duties for a charity trustee. Focusing on three of these duties The Commission has designed 15 questions to get trustees to consider the charity’s solvency, resilience and quality of governance. - Prepare a charity annual return (July 2021) – update on filing extensions - Independent examination of charity accounts; guidance for trustees (July 2021) – updated to reflect the use of electronic signatures - Coronavirus (Covid-19) guidance for the charity sector (October 2021) – updates made to charity meetings and insolvency help for charities - Charity reporting and accounting: the essentials (July 2021) - Charities and terrorism (June 2021) – Chapter 1 of the compliance toolkit has been updated to reflect UK counter-terrorism legislative developments - Charity purpose and rules (November 2020) – details the rules you must follow to govern your charity https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_ data/file/569550/15_questions_trustees_should_ask.pdf ## **5-minute guides for charity trustees** In February the Charity Commission issued bite-sized guidance to refresh trustees knowledge in various topics, these included; purpose, finance, conflicts of interest, decisions and support. https://www.gov.uk/government/collections/5-minute-guides-for-charity-trustees - Charity Commission guidance (November 2020) – guidance to help you set up and run a charity - Managing conflicts of interest in a charity (November 2020) - Reporting serious incidents to the Charity Commission during the coronavirus pandemic (June 2020) 9 ## **Pioneering Care Partnership Appendix A – Developments in the sector** ## **Charities Commission guidance regarding Covid-19** The Charity Commission has published guidance for the charity sector in respect of difficulties they may be facing due to the Coronavirus (COVID-19) pandemic. For some charities, this may be an increase in demand for others a grim financial impact. https://www.gov.uk/government/news/coronavirus-covid-19-guidance-for-the-charitysector The Charity Commission guidance highlights the following key areas for charities to consider: - Financial support for those charities no longer able to operate due to COVID-19 to enable charities to pay wages is available in the same way that it is to businesses. - Reserves held by the charity can be spent to help cope with the charity’s financial position; however trustees will still need to consider the short, medium and longer term priorities. - Funds that have been designated for particular projects by the trustees can be undesignated and used for other purposes. - Restricted and permanently endowed funds (where the donor has specified that the funds must be used for a particular purpose) should only be considered after other options such as the use of reserves are not possible. There may be ways under the Charities Act 2006 or the terms of the original gift to amend or release the restrictions on these funds; but you should seek professional advice if you are considering this option and that the Charity Commission will be as helpful as possible where its consent is needed. - If necessary to postpone or cancel an AGM or other critical meetings. This is acceptable given the circumstances but you should record this. - Check your governing document if you are planning to hold meetings by video or teleconferencing. Some governing documents will include a provision allowing this, others will not. You should ensure that you demonstrate good governance if you decide to proceed with meetings in this way. - Charities are reminded to ensure that volunteers and staff are protected and it is recommended that charities refer to the Charity Commission safeguarding guidance. - The Charity SORP accounting standards has issued updated guidance. The guidance considers the implications for the trustees’ annual report, going concern and the alternative basis to going concern when preparing accounts under the SORP. The initial guidance has been updated throughout the pandemic with recent guidance adding some insolvency guidance to charities. 10 ## **Pioneering Care Partnership Appendix A – Developments in the sector** ## **SORP – Second Edition** A copy of the updated SORP can be found at the following address; https://www.charitysorp.org/media/647945/charities-sorp-frs102-2019a.pdf The next version of the Charity SORP was discussed at the July 2020 SORP Committee meeting. Future changes to the Charity SORP will be closely tied to more general developments in UK accounting practice and the next update of FRS102, the financial reporting standard upon which the SORP is based. As a result we can now expect that a draft of the next version of the Charity SORP will be published no earlier than July 2022, with a consultation and finalisation process taking up to a year to complete. It is hoped that the next version of the Charity SORP will then be finalised no later than October 2023 and will come into force for accounting periods beginning on or after 1 January 2024. This means the existing version of the Charity SORP will remain in force for a few years yet. ## **Streamlined energy and carbon reporting framework** The Streamlined Energy and Carbon Reporting (SECR) legislation was implemented on 1 April 2019. The new regulations apply to quoted and large unquoted companies, including charitable companies. The new regulations require companies to disclose their energy and carbon emissions in their annual report. Charities who fall below this threshold are not prevented from including these disclosures should they wish to improve transparency. The requirements, as a minimum include reporting on UK energy use from electricity, gas and transport fuel, and associated greenhouse gases, and narrative reporting on measures taken to improve the businesses’ energy efficiency in the year. Further details on climate related reporting can be found in guidance issued by the FRC in October 2019, Climate Change Reporting: Where to next. ## **Filing charity annualreturns during the coronavirus pandemic** The Charity Commission has identified during the pandemic that the charity sector have faced a number of challenges, to show their support they have offered extensions to the filing of the annual return. This has recently been reviewed and for charities with an imminent filing deadline from 1 July to 30 September you can continue to apply for a fixed three month extension from the date of application. This would need to be done by emailing filingextension@charitycommission.gov.uk 11 ## **Pioneering Care Partnership Appendix B – Letter of representation** Haines Watts 17 Queens Lane Newcastle upon Tyne NE1 1RN To whom it may concern, The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the charitable company’s financial statements for the year ended 31 March 2022. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief. ## **General** 1. We have fulfilled our responsibilities as directors as set out in the terms of your engagement letter dated 28 July 2021 under the Charities Act 2011 for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you. 2. All the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. 3. All the accounting records have been made available to you for the purpose of your audit. We have provided you with unrestricted access to all appropriate persons within the charitable company, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission. 4. The financial statements are free of material misstatements, including omissions. 5. The effects of uncorrected misstatements (as set out in the appendix to this letter) are immaterial both individually and in total. ## **Internal control and fraud** 6. We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud. 7. We have disclosed to you all instances of known or suspected fraud affecting the entity involving management, employees who have a significant role in internal control or others that could have a material effect on the financial statements. 8. We have also disclosed to you all information in relation to allegations of fraud or suspected fraud affecting the entity’s financial statements communicated by current or former employees, analysts, regulators or others. 12 ## **Pioneering Care Partnership Appendix B – Letter of representation** ## **Assets and liabilities** 9. The charity has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets, except for those that are disclosed in the notes to the financial statements 10. All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate. 11. We have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements. ## **Accounting estimates** 12. The methods, data and significant assumptions used by us in making the accounting estimates, and their related disclosures, are appropriate to achieve recognition, measurement and disclosure that is reasonable in the context of the applicable financial reporting framework. ## **Legal claims** 14. We have disclosed to you all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for, and disclosed in, the financial statements. ## **Laws and regulations** 15. We have disclosed to you all known instances of non-compliance or suspected noncompliance with laws and regulations whose effects should be considered when preparing the financial statements. ## **Related parties** 16. Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with legislative and accounting standards requirements. ## **Loans and arrangements** 13. The charity has not granted any advances or credits to, or made guarantees on behalf of, directors other than those disclosed in the financial statements. ## **Subsequent events** 17. All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed. 13 ## **Pioneering Care Partnership Appendix B – Letter of representation** ## **Going concern** 18. We have considered the impact of Covid-19 on the going concern of the charity and have made appropriate disclosures within the financial statements. 19. We believe that the charities financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charitable company’s needs. We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the charities ability to continue as a going concern need to be made in the financial statements. We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. Each director has taken all the steps that they ought to have taken as a director in order to make them aware of any relevant audit information and to establish that you are aware of that information. Yours faithfully ## **Grants and donations** 20. All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such income. 21. The restricted grants and donations are included within the financial statements. .............................................................................................................................. Signed on behalf of the board of directors Date 14 Registered number: 03491237 Charity numb&r: 1067888 Ploneering Care Partnership Report of the Twstaos and Financial Ststements For the year ended 31 March 2022 Ploneerlng Care Partnership Contents Page Report of the Trustees Report of the Independent Auditors 22-24 statement of Financial Activities 25 Balance Sheet 26 Cash Flow Statement 27 Notes to the Financial Statements 28-41 Ploneering Care Partnershlp Rgport of thg Trustees For the year onded 31 March 2022 The Trustee8 submit their report and the audited &counts for the year ended 315t March 2020. They confimi that the report and accounts conform with current slalulory requirements and the charity's memorandum and articles, and also the requirements of the Statement of Recommended Practice- Accounting and Reporting by Charities. Rgference and administrative details Company Number 3491237 Charity Number 1067888 Registered Office Pioneering Care Centre, Carers Way. Newton Aycliffe, County Durham DL5 4SF Board of Trusteos Barry Knevill Heather Brewster Carol Briggs David Cockburn Brenda Davidson Marilyn Mohan Irijaya Kotur Dame Dela Smith {Chairpersonl (Treasurer) (Vice Chairl Company Secretary C8rol Gaskarth Principal Staff Carol Gaskarth Nigel Brough Jane Buckton Toni McHale Lindsay Sheridan Lynsey Todd (Chief Exeeulivel (Executive Lead) (Project Development Manager) IProjecl Development Manager) (People & Impact Manager) (Executive Lead) Auditors Haines Walls. 17 Queens Lane. Newcastle Upon Tyne, NE1 1RN Bankers Unity Trust Bank Plc, Nine Brindley Place, 4 Oozells Square, Birmingham, B12HB Natwesl, 29 Newgate Street, Bishop Auckland, Co Durham, DL14 7ET Sollcitors Hewill's Solicitors, 207 Newgate Sireel, Bishop Auckland. County Durham, DL14 7EL Pioneering Care Partnership Report of the Trustees (Continued) For the year ended 31 March 2022 The Trustees submit their report and the audited accounts for the year ended 31 March 2022. They confimi that the report and accounts comply with current slatulory requirements and the charity's mernorandum and articles. and also the requirements of the Slalemenl of Recommended Pracb"ce- Accounting and Reporting by Charities. structure. Governance and Management Goveming Document The Pioneering Care Partnership IPCPI is a company limrted by guarantee established on 7th January 1998 and a registered charity Iregislered 2nd Feb 19981. The company was established under a Memorandum of Association, which establishes the objects and powers of the charitable company and is governed under ils Articles of Association. In the event of the company being wound up members are required to contribute an amount of £1 on the winding up of the organisalion. Governance Revlew Periodically PCP'S Board of Trustee review the organisalion's governing documents and prior to the pandemic il was decided to conduct a full refresh. The aclivilies, projects and servI￿S PCP provides have developed over lime and the communities we serve have broadened across the North East. 11 is important the governing document reflects the current status of the organisation. Using the Good Governance Code as a benchmark and through considering existing and emerging slru¢lures it was agreed that the most appropriate governing arrangements for the organisalion is lo remain a charitable company, limited by guarantee. Trustees spent time redefining the charitable purpose and consuiting with voting members., with the aim of finalising arrangements in 2020, however the COVID-19 pandemic disrupted the timescales. In Quarter 4 of 2020-21 PCP appointed Ward Hadaway lo provide legal expertise, this woik progressed throughout the year and the refined articles of association were approved by PCP Board of Trustees in December 2021. These, along with a commentary on regulated changes have been submitted to the Charity Commission and PCP is awaiting feedback. Recruitment and Appolntment of Trustee8 The charrfty Trustees are also Company Directors for the purposes of company law. As a charity, under the requirements of the Memorandum and Articles of Association, al the annual general meeting one third of the trustees who are subject to retirement by rotation, or the number nearest to one third, shall retire. If the vacancies are not filled, the retiring trustees, if willing, can be deemed to have been re-appointed. The Articles of Association stale that the Company shall use all reasonable endeavours to ensure that not less than 25% of the Trustees from lime lo time shall be Service users, 630h ol the Board of Trustees are considered to be service user representatives in 2021-22. PCP continues to refresh the Board lo ensure a suitable mix of business skills, legal, charity leadership and accountancy and there are also a number of trustees who are disabled people, older people, carers, previous-carers or service users, thereby ensuring that the organisalion is governed by representatives of those it seeks to serve. Pioneering Care Partnership Report of the Trustees (Continued) For the year ended 31 March 2022 Annually, PCP reviews Trustee skills and aspirations through a review with the Chair and Chief ExeGutive and an anonymous survey. Results included- 100% felt the Board were Good or Excellent at ensuring PCP meets its objective 1 Oouh felt the Board were Good or Excellent at supporting strategic decision making 1000kn felt the Board were Good or Excellent in ensuring financial stability 1000kn of trustees upheld the reputation of PCP 860/0 felt the Board were Good or Excellent al evaluating PCP'S effectiveness 1 OOOA felt progress against the Strategic Plan was being made as anticipated 870A felt the Board effectively holds the Chief Exe¢utNe to account 100% felt PCP was in a strong position post COVID-19. Comments included.. 'Current TrLtstees all have a passion for the work that is carried out at PCP and will continue to support the Chief Exec and the staff to continue and progress effectively and sustain the work done so far. The communities we support are looking forward to some normality in the future.. .1 believe that PCP makes a significant and positive differen￿ to the lives of the people the organisation supports and those who work within it. The Board has a number of opportunities lo meet the staff teams and the users and understand their experiences. especially in the Pioneering Care Centre. l am proud to have a small part in the team. 'A very big thankyou lo the Chair, Chief Executlve, board of Iruslees and 811 of the staff for their loyalty to PCP through these very hard limes and still slaying positive . .and looking into a brighter future, thank you.. Trusteo Induction and Training PCP currently has 8 active trustees, through the annual skills audit. trustee reviews and general feedback the charity feels presently the experience, knowledge and expertise covers the range of topics required to effectively govern the organisaty'on. Consequently. there were no new Trustees recruited during 2021-22. The emphasis for the organisalion has been on approving the new governing documents and once this is finalised Iruslee recruitment will commence. Comprehensive trustee recruitment and induction processes are in place and ready to be uti1Ssed when required. These were ￿freshed during 2021-22. Induction and 'onboarding' processes are also well-eslablished, covering govemanee, leadership, charity guidance. PCP policies and procedures and expectations from both the perspeelive of the organisation and individual. Mentoring and peer support from eXperien￿d Iruslees is offered to newcomers and often this is matched based on areas for development or where skills could be enhanced. Throughout the year training has been informal with opportunities to refleel and leam integrated into both Board meetings and sub committees. This has included reflects'on on progress toward the strategic plan, presentab'ons from projects and setvices. workshops lo support the development of the Financial Strategy and COVID-19 updates. During 2021~22 PCP malnlained the previous approach lo COVID-19 communication and support, namely.. Chief Executive leading on inlerpreling guidance and ensuring restrictions and measures were adhered to., Monthly Chief Executive email updates to all staff.. and Standard agenda item at Board meetings. Ploneerlng Care Partnershlp Rgport of the Trustee$ fcontinued) For the year ended 31 March 2022 With the duly of care for vulnerable people who access projects and services and the wellbeing of our staff and volunteer team at the forefront of minds, PCP has consistently taken a more cautious approach than outlined in central government guidance. This strategy has been welcomed with comments received including.. We really AppKJ2ch wa9 We have ad8pled clear and ahead 8pprecKgte the èvofvèd otsrw¥y oflhp g?me. we get Info èn h￿[ fter nglFonal $nnounigmen18 Overall extremely positNe feedback a￿￿t PCP'5 approath to SYPPQrt durfng the pandemic. COVIO-19 olwoiklng io f Véilh Ihe rcum&lanro¥ pdates. Glvlng 3 nthladvance updates has helped with wi¥k plgnning Th$ work Ihat has been put into upJale8, and as we move forward. is ieassuring COVID plafinlny Was really Mome worklng rnre affiC￿nI and efffrctlve. makes battér use ol time Would b8 helpful. If•¥eryone onsurfjd orro51 slgn41ures are up to dale absolute w￿ld￿t chunge ￿n￿h￿ Teams is great for4uick ca115 and chats. n8ed io make more of Ihls. No de1￿0ry ¢osis (rooms elcl so cosi effectlve. Can gel on if cli8n15 donl attènd Th8r 8r6 real benefit$ to not hawng an office., no travelling lime, no parklng iS$UBS flgxlble lor ¢arlng Health.wpllbelng Staff were asked to use one word to describe PCP.. well1￿￿ fun ) supportive intorost￿9 vJsom¢ eXC.￿lI￿r.1 caring family inclusive In-lcvi togethctn¢5S Trustee meetings returned lo being held quarterly with a mix of face-lo-face and virtual depending upon the reslriclions, with a hybrid of the two in some instances. Trustee attendance and commitment remains excellent. They are dedicated to supporting the charity to grow and develop and provide effective constructive challenge. scrLrtiny and 5UPPOrt. To do this they question, read and reflect. Chief Executive reports include links lo key documents and reference materials to help with oveT811 knowledge and skills development which in turn assist lo ensure PCP maintains good governance. External support is sourced where this is appropriate. In addition lo contracting independent HR and Health & Safely specialists, PCP'S Chair continues lo be a member of the Association of Chairs. the Chief Executive is a member of ACEVO (Association of Chief Executive of Voluntary Organisalionsl and the Chartered Institute of Management. Furthermore. PCP is a member of VONNE (Voluntary Organisalions Network North East) and utilises articles and resources from NCVO (National Council of Voluntary Organisationsl and The Charity Commission to assist to provide informative and timely updates around best practice and governance. Further professional development and networking opportunities will be provided in 2022-23. The Ch8ir and Chief Executive will be allending the Civil Society Trustee Exchange in May 2022 and all Trustees and the Executive Team will benefit from charity finance training in August 2022. Ploneering Care Partnership Report of the Trustees (Continuèd) Forthe year ended 31 March 2022 The Structure of thg Organisation The Board of Trustees are elected by the membership. The Boaid can have up to 12 members and have responsibility for strategic direction and policy ensuring PCP meets its legal requirements. The Board of Trustees rneels quarterly and their work is supported by a robust sub group sliucture. Throughout 2021-22 six board meetings were held, four ordinary board meetings, one specific budget board meeting and one informal meeting lo discuss the P10neering Care Centre and centre renovation plans. Written board reports provided details of trustee duties and obligations. ensuring full compliance. The board report structure continues to be based on the Charity Governanee Code, this assists PCP Iruslees not only lo embed the principles of sound governance bul also lo maintain a clear focus on the organisalion's mission and objects. To support good governan¢e PCP'S Board of Truslees reviewed and updated the organisation's Scheme of DelegalK)n and Register of Interests. Annually Trustees, the Chief Executive and both Executive Leads completed the Automatic Disqualification Declaration, this process ensures PCP is confident those who are appointed lo govern or lead the organisation are not disqualified from acting as a charily trustee or holding a senior management position. The Charity Commission guidance suggests that this check should be conducted periodically, PCP has chosen lo do this annually. With regard to Senior Managers the Charity Commission refers to the Chief Executive, Finance Director and Chief Operating Officer, however PCP has deemed it appropriate that all executive leadership team members shoukj complete this form for ¢ompleleness. During 2021-22 the following were also reviewed". PCP'S Risk Register. Confidentiality Policy. Whistleblowing Policy, Compliments, Comments and Complaints Policy, Equality, Diversity & Inclusion Policy, Financial Controls, PCP Reserves Policy, Investment Policy and the Voting Member Policy. Trustees also reviewed the Health and Safely Policy Statement and the Environmental Policy Statement. both of which are signed by the Chair and Chief Executive demonstrating the organisational commitment to best practice. Following the pandemic PCP Sub Committees resumed with out of the three meeting quarterly during the year.. Business Development Sub Committee lo further PCP'S objects. ensuring that projects and services meet the organisalional mission and aims and considering new opportunities. Finance and Investment Sub Committeo to enhanGe the stewardship of the organisation's financial arrangements and ensure prudence, and ethi¢al inveslment principles. The terms of reference along with key policies were reviewed lo ensure they remain fit for purpose. Ploneering Care Partnership Report of the Trustees (Contlnued) Forthe ygar ended 31 March 2022 The third sub committee, the Compliance and Best Practlce Sub Commtttee did not resume and a review of PCP'S subcommittee structure look place in Quarter 3. This concluded lo change the sub committees and the proposal was approved by PCP'S Board as follows.. PCP Full Board Responsible lor over811 efiethe end elficSent govornan Business Dgyeloprnent & Btst Pr4ctice Sub Commlrtee Flnance & InVeS1ff￿nl Sub C4xnmittee t￿$1￿e￿￿ PCP'$ •pwraath (o invosCrFKnL rtrowlng invesun¢nls ntr• Dgvqlopm•nl Sub C¢)mmltto• Pionooii Care Centre {PCCi 41&￿lopr￿1t. IncI￿li￿J T￿an[s. trWfoIWapy Pcol. OW a¥)e(xs ol LwlldiTrJ rjth. Also (Iversefyng niflcanl M7811h & safoty k *wgsai ts pcc. c(mbnuorkJn of rxtlea 8 se(vte$. To th¢ and sour(iry of Trow OFwlunitios. F￿9 w quality and ufThisiro rnanagwwil 9ccwnis ana resp to Ikwnoal ils The main Board retains re5ponsibilily for decision making and a subcommittee reporting structure enables all trustees lo maintain overstghl. The Board of Trustees delegate the responsibly of the running of the organisation to the Chief Executive, whilst remaining fully accountable. PCP'S Chief Executive has been in post for over nine years and during this lime has ensured that systems and processes lo govern the charity are robust, regularly reviewed and in line with best practice. PCP'S Chief Executive is experienced and effectively oversees the organisalion, including leading successfully through the challenge of the pandemic in a veiy different environment. PCP'S Chief Executive has a strong track record of sustaining projects and services and fundraising, she has a good reputation and is well-respecled in her field. The Chief Executive works lo ensure we achieve the organisalion's mission and purpose and also represents the organisation on a number of ne￿orkS and forums, chairing County Durham's Resilient Cornmunily Group and co-chairing the Mental Health Transformation Steering Group.. she 1$ therefore well-placed lo ensure conlinuily and sustainability. The organisalion continues lo thrive. Since her tenure as Chief Executive 2013 income has increased by over 1720k. The Chief Executive is supported by PCP'S experienced and forward-thinking leadership team (known as the Executive Leadership TeamlELTI who assist with strategic development and day-lo-day managetnenl of the organisalion. The number and range of projects and services have evolved and the Executive Lead slructuie which was introduced in 2020 provides appropriate and effective cross-organisational support. Pioneerlng Care Partnership Report of the Trustees (Continued) For the year ended 31 March 2022 An Operations Manager was appointed in 2021 and this addition has proved successful in assisting with effective compliance, supporting Health and Safety, GDPR. lease arrangements for tenants and marketing. The poslholder also leads on the Centre Development work and has been instrumental in assisting the organisalion to make improvements in the ICT infrastructure and in 2022-23 a full digital strategy will be developed. Towards the end of 2021-22 a 'Management Development Meeting IMDMI, comprising of ELT, Senior Managers and all project and service leads was created. The aim of the 'MDM' is lo improve communications. aid organisalional development and share best practice. Throughout 2022-23 the MDM will assist with reviewing operational policies, help to progress numerous quality standards and continually improve monitoring and evaluation processes. PCP relies upon its dedicated. skilled and knowledgeable team of stsff and volunteers lo work with people, organisalions and communities and il is through their highly-effeclive work that PCP is able to sustain services for a signiticanl number of years. Our excellent track record of delivering projects effectively often results in projects and services being re-commissioned, a clear testament lo the wider-le8m's effectiveness. Chlef Executive Pay Transparency is the first principle of good pay and is crucial if the voluntary sector is to retain public trust. PCP lakes ils obligations seriously and lo this end PCP prides itself on the efficient use of resources and ensures that pay rates are proporlionale. PCP does not pay higher salaries than are necessary andlor reasonable whilst valuing the importance of talented and experienced staff to the fulfilmenl of the charity's public benefit objectives. The procedure foi selling PCP'S Chief Executive pay is robust., periodically the Board appoints a task group of Trustees to consider the external environment and organisalional performance lo assess appropriate remuneration levels. This process includes taking independent advice and reviewing trends and benchmarks in the sector in addition lo reviewing organisalion-wide impacts, OLJlpuls and financial performance. This process was last conducted in 2014-15 and the Chief Executive has been al the lop of their pay scale for a number of years, however the Chief Executive does not feel il is appropriate lo review this and given the current climate the Board is in agreement with this. Volunteers The organisalion has a successful volunteer recruitment and support strategy and as we move into COVID recovery and reset it is has been pleasing lo see volunteers returning to supporting projects and services across the whole organisalion. During 2021-22 PCP was supported by an average of 422 active volunteers who gave 5,536 hours supporting the projects and activities run by the organisation during the year. Using the real living wage as a benchmark, this is an in- kind equivalent of £54,807. Many of the volunteers have been service users themselves in the past and have progressed on to supporting the delivery of activities. Volunteering remains at the heart of what PCP is about and during 2022-23 PCP will be reassessed for the Volunteer Kitemark and also will work to identrfy more volunteering opportunities for local people. Ploneerlng Care Partnershlp Rgport of the Trustees (Continued) For the year ended 31 March 2022 Risk Management The Chief Executive leads a process with the Senior Management Team {SMTI and the Board of Trustees to condu¢l a bi-annual review of the risks which the organisation is exposed through assessing every area of the organisalion's aclivily, covering the environment, governance and management, operational issues, financial and compliance risks and each of the organisalion's activities to meet its objectives. To ensure lime lo discuss the potential impact and likelihood in 2021-22 the Business Development and Best Practice look responsibility for a thorough review prior lo discussion and approval al Board. PCP'S Health and Safely Pollcy is reviewed annually along wrf(h the fire risk assessment and other organisalional, building and a¢livily risk assessments. PCP is compliant with CHAS the Contractors Health and Safety Assessment Scheme, this was renewed in December 2021 and will be assessed again in December 2022. Airns, objectives and activitigs: The Pioneering Care Partnership's IPCPI is a mulli-award-wbnning organisalion whose mission is. Health, Wellbeing and Learning for All. and PCP operates across the North East of England predominately in County Durham. Sunderland, and Teesside. PCP'S purpose is." 'To improve health, wallbging and quality of Ilfe for people disadvantaged by disability. age. ill health andl or caring rosponsibilities, and reduce inequalitios In health. The long-lerm outcomes the PCP is seeking lo support are.. To promote independence, choice & control To improve lifestyle To increase knowledge & skills To improve physical health To improve confidence, self-esteem & well-being To improve economic well-being To build community capacity To improve access lo services for disadvantsged Communities & groups To promote social inclusion As a Charity and Company Limited by Guarantee PCP exists to serve local people and our customer-base is wide ranging. PCP supports groups and communities through projects and services which aim to build capacity and cohesion and individual people, particularly those who may be disadvantaged in localities, businesses with employee health and wellbeing and other charities through mentoring support. During 2021-22 PCP also began lo support smaller voluntary and community sector organisalions with grant funding, this has a particular emphasis on mental health and wellbeing, improving access lo services and offering a wider range of opportunities for local people. Whilst PCP'S predominant fwus is on health and wellbeing, il considers health in its widest sense. There are many factors, or delerminates, that impact upon health and wellbeing including educational allainment. employment slalus, physical health, family and social connections, the environment in which people live, income, mental and emotional resilience therefore the thematic areas PCP covers are cross-cutting. Partnership is in our name, because we aim to bring people together, working collectively to help but importantly we do this with local people and communities so they are a key stakeholder in all we do. Pioneering Care Partnership Report of the Trustees {Continued) Forthe yoar ended 31 March 2022 PCP has a focus on working with people who are disadvantaged across a population of almost 1.4m people. PCP operates in the following areas.. rea Population" 533,937 106,933 77,576 140,301 198,706 138,354 1,395,807 County Durham Darlington Sunderland Middlesbrough Sto¢klon-on-Tees Redcar & Cleveland OTAL Yigures from the Office for National Statistic IONS) Population figures over a 25-year period PCP employ's an average of 105 people and endetj the financial year with 114 employees. In 2021-22 staff stability was 850/0 which, despite some contracts ending and COVID-19, is a slight improvement on the last two years, where il stood at 820/0 and a rnarked increase from 75¥0 in 2018-19. Naturally the voluntary sector can have a high turnover due to the short-lerm nature of proje¢ls and services. Therefore to achieve this level of stability is extremely good and is leslament lo the organisation's solid HR polices, focus on employee wellbeing, talent management and support to sustain staff wherever possible. Prin¢ipal Activities The Pioneering Care Partnership is a mull￿award-WlnnIng organisalion whose impact spans across the North East. PCP'S first achievement was the development of a unique healthy living Centre, bringing together voluntary and statutory services under one roof., the Pioneering Care Centre in Newton Aycliffe opened in 1999 and is seen as beacon on best practice, replicated across the Country. The Pioneering Care Centre in Newton Aycliffe is home lo a range of ac￿$$1b1e activities designed to bring people together and support healthier lifestyles. A community hub that provides a range of health and wellbeing activities including community events, exercise classes, learning workshops. a community garden. cornmunily coffee shop, hydrotherapy pool, natural therapies, employability support se1vi￿s. and disabilrty projects. The Centre also houses a GP Practice, Pharmacy, Mental Health Services, Children's Nursery. Speech and Language Servlce and other health and social care services making it a real community hub and hive of a¢livily. The Pioneering Care Centre closed ils doors to the general public as a result of the pandemic in March 2020 and remained closed for the vast majority of 2020-21 however during 2021-22 the Centre opened incrementally. Throughout the pandemic PCP look a more cautious approach lo lifting the reslriclions. the overall aim was to keep people safe, inslill confidence and support the range of people who access the Pioneering Care Cenlre, many of whom are vulnerable, have a disability or are carers. This has been welcomed by clienlslservice users. staff and volunteers. To support the local COVID-19 effort part of the building was allocated to the GP PraclicelPrimary Care Network lo enable COVID-19 lesling and treatment. In August 2020 il was decided to extend the space leased to the Practi￿ and in November PCP supported the implemenlalion of the Vaccination Cenlre. Appointments for podiatry, speech and language and adult mental health services continued, Furthem)ore Tees, Esk and Wear Valley took additional space to offer mental health and wellbeing appointments for children and young people. House of Eden Day Nursery operated for part of the year following the 'bubble' system. Pioneerlng Carg Partnership Report of the Trustees (Continued) For the year anded 31 March 2022 Centre-based activities whlch recommenced included.. Health and wellbeing activities A ful￿ accessible Hydrotherapy Pool Community garden and allotments Conference. meeting, room hife facilities and hospitality services The Garden Kitchen, community coffee shop Community courses and adult learning opportunities Lifestyle and exerclse classes and activities Wellbeing Practitioner support services The Centre also houses services delivered by other partners as follows-. Jubilee Medical Practice The Village Pharmacy NHS clinics NHS Mental Health Servi￿5 House of Eden Children's Nursery Great Aycliffe & Middridge Area Action Partnership IGAMP) Improving Access to Psy¢hological Therapies {IAPTI Services Employability support and the Natural Therapy suite services will recommence in 2022-23. PCP provides a number of projects across the North East working in collaboration with a range of other voluntary or slalutory organisation's. In 2001 the organi5alion began lo work more on an outreach basis and over the years this has developed, PCP now provides over 35 projects and setvices across the North East. These include.. Options, supporting adults with learning and physical disabilitieg County Durham and Sunderland Workplace Health Wellbeing for Life Sloeklon Community Connect Social Prescribinglcommunily Connect Service stockton Independent Complaints Advocacy Service Joining the Dots Macmillan Cancer Support Heallhwalch in County Durham, Redcar & Cleveland, Middlesbrough, Stockton and Sunderland ESF Building Better Opportunities Slep Forward Tees Valley ESF Building Better Opportunities Reaching Out Across Durham SafeHaven 'Happiness Hubs, Grants Programme COVID-19 Resilience Team County Durham Cancer Champions Slocklon COVID-19 Community Champiion Programme Frail Elderly Link Worker Primrose Lodge Events Worker Peer Support and Befriending Research Learning Disability & Autism Research COVID-19 Resilience Research Physical Health Workers in County Durham In 2021-22 PCP was awarded funding from the Lottery Health Equalities Development Grant IHEDGI to consider the feasibility of alliance working in County Durham. This partnership proposal was jointly submitted by PCP, Durham Community Action. Investing in Children, Durham County Council Public Health and the NHSIClinical Commissioning Group. This work will be taken forward during 2022-23. 10 Pioneering Care Partnership Report of the Trustees (continued) For the year ended 31 March 2022 Partnership working is an essential part of PCP'S success. PCP is recognised for its expertise in health and wellbeing and the Chief Executive plays a key role in developing community adult mental health wellbeing serviees across County Durham. She chairs the external County Durham Resilient Communities Group a sub-commillee of the Mental Health Strategic Partnership Board and is a proactive member of several external networks and forums. During 2021- 22 she has also commenced joinlchairing the County Durham Mental Health Transformation Steering Group and this work seeks lo ensure that services are tailored lo Individual need, accessible in local communities and developed with those who have lived experience of mental health issues. In the laller part of the year, il was pleasing to see the COVID-19 impact on deltvery reducing with most projects and services returning to in-person support. Like many organisations PCP will learn from the COVID experience and aims to sustain some of the approaches, such as supporting people through video-conferencing, offering staff the opportunity lo blend working arrangement between the office and home and delivering some meetings virtually lo save travel lime and costs. PCP continued throughout 2021-22 with Clear, concise and regular COVID-19 communications further details of the organisalional approach are included in the 'Truslee Report on the 'lmplicalions of COVID-19 measures, section on page 1710 19. For further information please refer to PCP'S Annual Report which can be found on the website.. .uk.net 11 Pioneering Carg Partnershlp Rgport of the Trustees {Confynued) For the year ended 31 March 2022 Achievements and perfoimance pcp strateg5c Plan In June 2019 PCP'S Board of Trustee$ approved a new 5-year Strategic Plan. This informs the future direction of the charity, feeds into the Chief Executive's objectives, supports the operational delivery and management of PCP and is reviewed annually by the Board. This annual assessment helps to determine where the organisation's energy and resources should focus for the coming year. COVID-19 has not halted progress against PCP'S Strategic Plan bul trustees recognised COVID-19 recovery will lake lime and could lead lo difficulties in developing new projects and services. In 2020-21 the Board agreed lo extend the lifespan of the Strategic Plan, this now runs until 2026 to allow time lo work towards the ambitions outlined for each area. PCP'S Strategic Plan is designed as a cross-culling document lo direct organisalional focus. enable eonlinuous development and lo instil confidence in PCP'S governance arrangements as a Charity and Company Limited by Guarantee. The Strategic Plan covers 10 main areas.. PCP Mission and Purpose Health, Wellbeing and Learning for All- targeting support Goveman¢e Leadership Core Values Flnan Quality, Human Resources & Volunleering Marketing. Communications & Engagement Digital Strategy 10. Environmental Management Specific progress has been made in the following areas during 2021-22 Refreshing PCP'S organisalional purpose and embedding in delivery., Finalising the new governance arrangements so that they remain fit for purpose over the life of the strategic plan., Improving trustee training, sustaining Board commitment lo being a learning board., Reviewing effectiveness of the leadership structure of the organisalion Considering the implications of values-bas recruitment., Improving data, research and reporting capability across PCP.. Engaging wrth local people and applying asset-based Community development techniques." and Improving environmental monitoring. Monltorlng & Evaluation PCP continues lo maintain the approach to apply a model of evaluation called 'lmpaet Mapping, developed by the New Economics Foundation {NEFI. This is based on a 'lheory of change, methodology and assists PCP lo link our mission, objectives and activities with what happens because of them. This is the ninelh year of successfully using this model lo monitor performance, consequently the organisation is usually able to use previous data lo benchmark performance and undertake trend analysis. Both 2021-22 and 2020-21 was impacted by COVID -19 and cannot be compared against pervious results, therefore when setting largels for 2022-23 PCP will use 2019-20 as the benchmark. 12 Pioneerlng Care Partnership Report of the Trustees (Continuedj For the year endad 31 March 2022 The following section highlights some of the key achievements for the year 2021-22= Pioneering Carè Partnership Aniiual Report 2021-22 This year's headlines A rouncl up OF what's happened! Ploneerfng Cara Centre reopens followlng tho pandgmic Beffiènding Group launched In County Durham PCP contracted to support Prlmroso Lodgg In Chester.l84tr091 ne¢rln9 Ca Partnefshlp PCP awardgd n8W Hoalthwatch contract for Stocktonwon-Tg95 Communlty Gardon achigves Northumbria In Bloom RHS Awanf PCP lo dellvér ltrading COVID recovèry project in Stocktonwon-Tees CATALY .ÈVEMENT RDS Communlty COVID team crowngd champlons at Catalyst Awards Ploneoring Caro Centrè's Chrlstmas Fayro raises ovor £2,100 Nealthwat¢h South Teas celebrats hgalth and social care with STAR Awards Further informalion can be found al the organisation's website www. 13 Ploneering Care Partnershlp Report of the Trustees (Continued) For the year ended 31 March 2022 FINANCIAL REVIEW During 2021-22 PCP planned lo ulilise reserves for a number of projects in support of the organisalion's charitable objectives. Additional income was secured for projects and services in 2021-22, this equated to 8% more than the previous year. FLJrthermore, the efficient delivery of projects and services and the organisation's prudent approach saw expenditure less than budgeted. This fesulted in an end of year surplus position. The full results and company's financial position at the end of the year are shown in the attached financial statements. Activities generating funds Activities generating funds for the organisalion include the KilGhen Garden, Room Hire, Therapy Suite and the Hydrotherapy Pool within the Pioneering Care Cenlre, all of which re-opened during 2021-22. The organisalion also sublets the Pioneering Care Centre lo a number of Tenants within the building and charges rent and service charges for Ihe appropriate allocated floor space. Tenants included.. The Village Pharmacy.. Jubilee Medical Group,. Durham County Council., Tees, Esk & Wear Valley NHS Trust., House of Eden Children's Nursery, NHS Property Services and private counselling praclilioners. During 2021-22 an independent valuation assessed the rental costs for the Pioneering Care Centre to ensure market value and lo fulfil the trustees legal obligation to obtain and consider a written report from a suitably qualified surveyor before any disposal such as a lease is granted. out of charity's land. in addition to Iheii responsibility lo achieve the best rent possible. The independent Chartered Surveyor's report was considered in 2021-22 and lease arrangements are in the process of being finalised. Investment Policy PCP'S investment portfolio is managed by Ralhbone Investment Management Ltd. The portfolio is a combination of different sssel types and weightings to consider both long term investment behaviours and short-lerm prevailing market conditions. The investment objective aims to preserve the capital investment in real terms whilst providing the opportunity for s¢)me gfowlh in capital and income and therefore PCP opted for a medium risk tolerance lor the fund. Investment Update The 2021-22 financial year started on a positive fooling as the global economy continued lo rewopen following the COVID-19 Pandemic and hopes for a successful global vaccination piogramme built. Furthermore, additional financial and economic support packages were enacted by Governments and Central Banks in developed markets which saw equity markets continue to climb above pre-COVID levels. However, as 2021 drew to a close il became clear that such loose monetary and fiscal policies would be wound down and eventually need lo be paid for, mainly through higher taxes while inflalionaiy forces began to build and consumers who had managed to save during the Pandemic became increasingly nervous about the cost of living during the years ahead. 14 Pioneering Carg Partngrship Report of the Trustees (Continued) Forthe year ended 31 March 2022 As a result, market volatility spiked following a period of relative calm and equilie5 and bonds sold off during the closing weeks of the financial year as inflation jumped and Central bankers wrestled with the prospect of hiking interest rates. The nervous lone was exacerbated by the Russian invasion of Ukraine as both countries have played a major role in the supply of global commodities, both energy and agricultural. The PCP portfolio was not immune to this volatility bul still managed lo post a gain of +6.4% for the financial year which was a reasonable outcome. The economic and political outlook has worsened since the beginning of 2022 with financial assets remaining extremely volatile and against such an uncertain backdrop there will undoubtedly be some difficutt months ahead. However, the PCP portfolio remains well dlversified across asset classes which should enable il to be relatively resilient in the short-term and perfomi well over the long-lemi. In line with the organisalion's Investment Policy, monies are also invested in a 7-year Fixed Bond Account with Secure Trust Bank. In March 2021 PCP opted to withdraw these funds following the decision of Secure Trust Bank lo no longer offer this type of account. however this did not occur during the financial year and will be progressed in 2022- 23. During 2021-22 PCP undertook a review of ils bank accounts and Trustees agreed lo move from Unity Trust lo Nal Wesl Bank. The switch commenced in February 2022, however lo ensure all transactions are effectively transferred the Unity Trust Accounts will remain open for a period of 6 months. ReseNes' Policy PCP'S Reserves, Policy ensures that Trustees, the Chief Executive and senior staff. act in the interests of their charity and ils beneficiaries al all times. This Policy protects and safeguards organisalional assets, assists Trustees lo act with reasonable care and skill, and ensures that PCP is accountable. The Reserves, Pollcy aims to aid PCP'S strategic planning, budgeting and risk management processes. PCP reserves provide a cushion for planned or unplanned future needs safeguardin9 the organisation from unexpected events, losses of income and large unbudgeled expenses. The Reserves, Policy also aims lo assist with the management of Cash flow. provide working capital for day-lo-day operations and aid decision making when eonsidering investing in new ways of working. The Policy and associated procedures sets out that PCP will aim lo maintain reserves of a minimum of 6 months and maximum of 14 months core and centre operating costs. Where the reserves position exceeds this level the Board will then identify if resources are available lo ulilise to further PCP'S Charitable aims. The organisalional Reserves, Policy is reviewed on an annual basis by the Finance and Investment Sub Committee and full Board of Trustees. This was reviewed during 2021-22. The Board of Trustees have stated that 'reserves' in this instance apply to general reserves, which is part of the income funds that are freely available for general use. The charty has adopted a computational approach to justifying ils reserves. This Resetves. Policy helps lo ensure that the charity can meet ils financial obligations lo core and centre staff salary and operating costs. Other factors which are beginning lo affect the organisation is that some funding streams have payments in arrears, therefore the organisalion needs lo have monies available lo cushion this effect and ensure operational liquidity. Al 31 March 2022 the charity held free reserves of £799,756 which equates lo 7 months core and centTe running costs. 11 should be noted that as a result of COVID-19 and lower expenditure on some projects and services this includes funds which have been designated for 2022-23. Furthermore, £485,361 has been earmarked by Board lo carry forward into 2022123 and annual running costs are expected to be £1,200.913. 15 Pioneerlng Care Partnershlp Report of the Trustees (Continued) For the year ended 31 March 2022 PCP Board of Trustees acknowledge and undeistand that as the COVID-19 pandemic eonlinues and moves into the resevresilience phase, many of the organisalion's income generating acliviltes now require subsidy whilst they relum to pre-pandemic levels, and this could lake several months. Therefore, there may be the need to use a proportion of the reserves to provide additional support lo core and centre functions in 2021-22. The Board lakes regular reports from the Chief Exeoulive lo closely monitor and assess the situation and ensure that appropriate and timely action is taken where required. This ongoing 511ualion will be evaluated regularly by PCP. Qualty Quality is al heart of what PCP does and is vitally important lo ensure we fulfil our mission. continue lo meet the needs of local people and communities, strive for improvement and ultimately make a difference or positive impact. PCP achieved the Environmental Quality Standard ISO 14001 and ISO 9001 the international standard that specifies requirements for a quality management system. A significant piece ol work during 2021-22 look place lo bring these $18ndards together as one and enable a joined reaccredilation lo both standards. The assessment in February 2022 was successful with positive feedback from the assessorlaudilor about PCP'S approach. progress and continuous development. During 2021-22 PCP also maintained.. Investors in People Standard, Gold Award Better Health al Work Award, Maintaining Excellence and Ambassador Status CHAS the Contractors Health and Safely Assessment Volunteer Kitemark Time to Change Pledge Carer's Pledge Mindful Employerlcharter for Employers who are Positive About Mental Health Feedback from the Better Health at Work Award Assessor included.. This is a very good Maintaining Excellence submission from PCP, with a wealth of activity across the organisation and a concerted staff focus. They have demonstrated a consislenl approach. with annual strategy reviews and 3 yearly policy reviews, as well as regular consullalion. The early delivery of another Health Needs Assessment in May 2021 is good practice and shows that there is an increasing drive to be proactive and address issues al early intervention and prevention points. The high response rate also illuslrales that staff were very willing lo engage and share their thoughts and feedback. PCP deserve credit for their extremely thorough analysis and for asking questions that many employers would be reluclanl to. 11 is fantastic to see that the staff self-scores for physical and mental wellbeing have both held steady at an average of 7 out of 10. despite the very challenging circumstances and changes experienced over the last almost 2 years. This is indicative that PCP has worked hard to pul in mitigating measures and ensure staff feel supported at work and able to support themselves. The increase of the allotted 30 mins 'Wellbeing time, for staff was increased lo 2 hours per week during the pandemic 8nd has remained, which is very likely to be a contributory factor to this - the survey showed that 860A of staff take advantage of this benefill Mindful Employer Assessment feedback included.. 11 was reassuring lo read that you provide training specifically for managers. Line managers are usually the initial point of contact for staff so have a crucial role lo play in staff s experience of being supported by the organisalion. Our social and working lives have changed enormously since March 2020. Your review showed a variety of support already available to staff, we recommend staff are regularly reminded of the range of support avallable to them. 16 Ploneerlng Care Partnershlp Report of the Trustees (Continued) For the year ended 31 March 2022 PCP has had a focus on the environment during 2021-22 and PCP has pledged publicly our commitment through the North East Climate Coalition INEECCol. PCP pledged.. "To understand the impact the organisation has on thg environment. We will monitor gnergy consumption and actively strlve to reduce it. We will work with our teams to increase awareness and encouragg ideas to take posltlve action at work, homg and In the community." The environmental categories PCP conlribules lo are". Consumptionlshopping habits Encouraging nature and biodiversity Reducing energy usage Reducing travev greener travel Reducing Wastelrecy¢le During 2022-23 PCP will be reassessed for the Volunteer Kilemark and during the year we will also look lo develop fLbrther volunteering roles and opportunities across the organisation The achievement of these standards puts PCP in a strong position in the competitive tendering market in addition to demonstrating our commitment to quality for our customers, clients. staff and volunteers. Key flnancial perforn)ance indicators (2021-22) tio Liquidity ratio verage Reserves ". Expenditure {Other haritable funds Debtors Days abour urnove Labour Stability Index bsence(°/o} taff participation in training and evelo 2021-22 23.05.'1 1.277.1 2020-21 19.72.'1 2019-2 7.1:1 0.54'.1 2018-1 7.1..1 0.58'.1 2017-1 6.8..1 0.63'.1 2017-1 6.08'.1 1.071.'1 0.66'.1 162 days 15.2% 77 day 23.80 35 day 26 day 54 day 25.90 58 day 30.1 85 820 75Vo 76 2.6% 2.6% 2.9Yo 2.7Yo 95 960 87% 950 The organisation prides itself on being supportive to staff and we have a number of initiatives in place through our Work Life Balance policy and procedures and our return lo work processes. The lalesl information published by the Office of National Slalislics IONS) estimate that the UK sickness absence rate has fallen lo 1.80/• in 2020. According to the ONS the coronavirus ICOVID-191 pandemic has affected the sickness absence data in a number of ways,. while the virus may have led to additional sickness absence, measures such as furloughing, social distancing. shielding and increased homeworking appear lo have helped reduce other causes of absence. PCP'S absence figures are ordinarily consistently lower than the UK average however during 2021-22 we have had a few instances of long-lerm absence which has affected PCP'S rate. Organisalionally PCP continues lo strive lo ensure we support our teams effectively and feedback has been overwhelmingly positive in relation to the measures in place. PCP'S Labour Market stability has always fluclualed due lo the nature of the Charitable business.. short lem contracts and externally funded projects and services, however il has been consislenlly high for the past 3 years, with a slight increase in 2021-22. PCP works to sustain this through a number of support interventions and our strong track record of sustaining proje¢ls and interventions across the North East. 17 Pioneerlng Care Partnershlp Report of the Trustees (Continued) Forthe year ended 31 March 2022 An emphasis on staff training and development has seen dramatic improvements in the uptake of training and developrnenl across all learns, resulting a 28Yo increase in the lake-up of training opportunities meaning 96% of our workforce undertook personal or professional development duiing the year. The organisalion's liquidf(y ratio is high again, as a result of project and service expenditure being dramat￿allY reduced due lo COVID-19. Notably there has been a significant ehange in Debtors Days, this is due lo the prO￿sS of raising high value involces at the beginning of Ihe financial year which are paid incrementally over the year and therefore is not an organisalional risk or concern. As outlined in last year's Trustee report. PCP is not immune to the long-lerm financial impact of reduced services and therefore reduced income, particularly in relation to the Pioneering Care Cenlre. During 2020-21 a significant amount of work was undertaken to review the position and source new income streams and this worked continued in 2021-22. Work to develop PCP'S Financial Strategy has progressed and this will enable improved forwafd-planning and financial modelling considering long term risks and how lo miligale or prevent these. Future Prioritigs and Developments: PCP priorities for 2021-22 will inevitably ¢ontinue lo focus on COVID-19 recovery bul will also closely aligned to PCPS Strategic Plan and include.. Robust Financial Management Clear financial projections for 2021-22 and 2022-23 and beyond, recognizing 8 number of PCP projects and services are scheduled lo cease in March 2023. b. Ongoing financial review of the Pioneering Care Cenlre, tenancies were Considered during 2021- 22, in the coming year each area will be assessed and reviewed. Development of a full Financial Strategy, this will be complete by September 2022. 2. Continue with the Hydrotherapy Pool Renovation and other building works to Sustain and improve the Pionggring Care Centre. Progress during 2021-22 has been strong with momentum now building in readiness lo submit a planning application in 2022. It is anticipated that work will commence in Oclober/November 2022 with an aim of reopening in quarter 1 of 2023-24. 3. Stratggic Plan priorities trustees received a report on the 2021-22 progress which also outiined areas lo priorilise in 2022-23. These included.. a. Considering how lo more effectively largel support., b. Trialing distributed management approaches; Further developing internal reporting mechanisms.. d. Publishing a Marketing Strategy to inGlude stakeholder engagement and asset based community development., Increasing talent management capacity-, and Embedding PCP'S approach lo environmental management and corporate social responsibility. 18 Ploneering Care Partnershlp Report of the Trusteps (Continuedj For the year ended 31 March 2022 TRUSTEE REPORT ON THE IMPLICATIONS OF COVID-19 MEASURES Throughout the global COVID-19 pandemic PCP Trustees have provided oversight and support to enable the Chief Executive to lead and guide the organisaliori, navigating changeable reslriclions and balancing with local measures whilst ensuring the safety of staff, volunteers and clients. During this period of rapid change PCP has ensured the organisalional approach was robust, considered, b'mely, well-planned and effectively communicated. PCP'S approach included.. Governance - trustee meetings retumed lo be quarterly on the understanding that if required the frequency would be increased. in addition support was provided through 1-2-1 discussions between the Chair and Chief Executive remained in place with a focus on COVID. As well as full Board the Business Development Sub Committee and Finance and Investment Sub Committee continued and the Centre Development Task Group was established as a full sub Committee. This provided robust and supportive governance during the onlinuing pandemic. Preparation 'mini-lockdowns' which occurred during the year were well lead through the Chief Executive and further development of the ICT infrastructure was ongoing. Training and support was provided to all statt and during 2021-22 the bitesize learning offer has continued. Communication regular updates and briefings are provided to staff. volunteers, tenants and beneficiaries across all areas of PCP. Central government measures varied throughout the year and as well as standard notifications, posters and displays to ensure consistency of approach PCP updated staff on our local response. This was consislenlly more cautious than the government advice for two reasons-, firstly the North East experienced infection 'waves' later than the South and secondly many of those who access PCP support are vulneiable or have long term health conditions and we fell it was more appropriate lo delay lifting some of the restrictions. Feedback from staff remains overwhelmingly positive with staff reporting that they felt engaged, supported and updated. Working from home - in 2021-22 PCP was quick lo respond to the changing needs of our elienls and workforce. During 2020-21 the majority of PCP'S staff worked from home, bul longer-lerm we needed a different solution. PCP have moved staff lo a blended approach. This is not flexible working, il is sel days al home and sel days in the office enabling teams to come back together in a consistent and measured way, again to aid communication and support. We also recognised that those who had started their employment during COVID had missed out on informal leaming and the opportunity to connect with colleague. again feedback has been positive. Support for Communltles the Pioneering Care Centre has been open for the vast majority of 2021-22 and PCP'S projects have continued to operate across the North East. offering virtual and in-person support. PCP has found people are keen lo re-connect and come together. Some service users, for example the Options members had found the lockdowns particularly hard and this has had an impact on their confidence and also some knowledge and skills had declined as a result of the break in service. Teams have work hard to encourage inleraclions, support positive contributionlnelworking, develop learning and resel how we work. Impact on Fundraising - in the short-lerm COVID has had a positive impact on funding, through grants and local authority support bul also as a result of commissioning and effect relationships. Longer-term PCP anticipates funding will be a challenge. Vvork will continue during 2022-23 to secure resource and mitigate any risks. 19 Pioneering Carg Partnershlp Report of the Trustees (Continuedj Forthe year ended 31 March 2022 COVID-19 FINANCIAL SUSTAINABILTY IMPACT The Chief Executive maintains strong communication with the Board lo ensure trustees are fully appraised of the financial situation, any liabilities or risks and any opportunities. PCP is in a strong position bul is not complacent. Following the COVID-19 pandemic. PCP is not immune to the long-lerm impact and there is a need lo maintain an agile business model. PCP Trustees are confident that the organisation is a going concern a$ a result of the following.. New projects and services Strong strategic relationship and networks Healthy level of reserve5 2021-22 end of year position 2022-23 budget projections PCP projects are sustained. effective and efficient. Impioved Management Account reporting Liquidity ratio Ongoing assessment of liabilities - some areas of operation are consldered lo be low-level liabilities, these small departments and individual action plans are developed lo miligale any risk. Investment perfomance - Trustees are aware that this may flucluale and PCP does not foresee the need to draw on this in the medium lem. Development opportunities - PCP continues lo work on new inilialives and the potential lo extend existing contracts. Operational considerations - the Pioneering Care Centre was open al different periods over the past 2 years so now has the experience and processes in place lo react quickly should this be required again in the lulure. The Centre is fully operational with classes, courses and events recommencing early 2022-23. Staff satisfaction is high - staff turnover is low. our skilled, effective and experienced workforce are flexible and happy with how PCP has responded to the pandemic. PCP'S mission is Health, Wellbeing and LearnirTrg for All, and the organizalion is central in supporting the COVID-19 response and recovery in communities. Given the significant impact the pandemic could have had upon the charity PCP is in a strong financial and straleglc position. 11 has sustained delivery over the past 2 years, during the most challenging lime for everyone. PCP lakes a creative approach lo developing new projects and supported innovation in parlneiship with slalulory and voluntary sector providers. The Board of Trustees are satisfied that there are no significant risks, financial or otherwise, or any material uncertainties related lo events or Gondilions that cast significant doubl on the charity's ability to continue as a going concern. 20 Pioneerlng Care Partnershlp Report of the Trustees (Con¢inuedJ For the year ended 31 March 2022 STATEMENT OF TRUSTEES RESPONSIBIUTIES The Trustees (who are also the Directors of The ￿.oneerfn9 Care Partnership for the purposes of company lawl are responsible for preparing the Report of the Trustees and the finanryal slalemenls in accordance ￿th appllcable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the Trustees lo prepare financial slalemenls for each financial year, whlch glve a true and falr view of the state of affairs of the Charitsble company and of the incoming resources and application of resources. including th& income and expenditure. of the charitsble company for that period. In preparing those financial slalemenls. the Trustees are required to select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charity SORP., make judgements and estimates that are ￿asOnable and prudent., prepare the finanryal statements on the going con￿rn basis unless il is inappTopriale lo presulne that the challlable company wll continue in business. The Trustees are restx)nsible for keeping propEr accc¥Jnling records vthich disclose with reasonable accuracy al any lime the financial position of the chaiilable mmpany an¢J to enable them lo ensure that the financial statements comply ilh the Companies Act 2006. They are aTso responstble for safeguarding the assets of the charltsble company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware= there is no rdevanl audit infomiation of which the charitable company's auditors are unaware,. and the Truslees have taken all steps that they ought lo have taken lo make Ihemsefves aware of ary relevant audit infomalion and lo establish that the auditors are aware of that inf¢xmalion. AUDITORS The auditors, HaSnes Watts. wll be proposed fcK re-appointment al the forthcoming Annual General Meeting. ON BEHALF OF THE BOARD OF TRUSTEES: Barry Knevitt- Chairperson 21 Ploneering Care Partnership Report of the Independent Auditors to the Members of Pioneering Care Partnership For thg year ended 31 March 2022 Opinion We have audited the financial statements of Pionwing Care Partnership Ilhe 'charitable company'l for the year ended 31 March 2022 which comprise the Statement of Financial Aclivilies. the Balance Shoel, the Cash Flow Statement and notes lo the financial slatemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Aceounling Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial stalemenls.. give a true and fair view of the state of the charitsble company's affairs as at 31 March 2022. and of ils inwming resources and application of Tesources. including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordan¢e with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI (ISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financrdl 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 lo provide a basis fo¥ our opinion. Concluslons relatlng to going concern In auditing the financial slalements. 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 eondilions that, individually or collectively. may cast significant doubl on the group's or parent charitable company's ability lo continue as 8 going concern for a period of at least twelve months from when the financial slalemenls are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report. other Snfomiatlon The Iruslees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our Report of the Independent Auditors Ihereon. Our opinion on the financial statements does not cover the other infomation and we do not express any forrn of assurance conclusion thereon 22 Ploneering Care Partnership Report of the Independent Auditors to the Membgrs of Pioneering Care Partnership (Contlnuèd) Forthe year ended 31 March 2022 In eonnection with our audit of the financial stalemenls, our responsibility is lo read the other information and, in doing so, consider whether the other infomialion is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material misslalemenl in the financial slalemenls or a material misslalemenl of the other information. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other information. we are required to report that fact. We have nothing lo report in this regard. Opinions on other matters prgscribed by the Companies Act 2006 In our opinion. based on Ihe work undertaken in the course of the audit.. the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consislenl with the financial slatemenls,. and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we are roqulred to report by exception In the light of our knowledge and understanding of the charitable company and its envlronment obtained in the course of the audit, we have not identified material misstalemenls in the Report of the Trustees. We have nothing to report in respect of the following matters where 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 slalements are not in agreement with the accounting records and returns,. or certain disclosures of ITUStees' remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit.. or the trustees were not entitled to prepare the financial statements in accordance with the small companies, regime and take advantage of the small companies, exemptions in preparing the directors, report and from the requirement lo prepare a strategic report. Responsibilities of trustees As explained mole fully in the Statement of Trustees Responsibilities set out on page 21. the Iruslees (who are also the directors of the charitable company for the purposes of company lawl 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 the Iruslees determine is necessary to enable the preparation of financial slalements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern. disclosing. as applicable, mallers related to going concern and using the going concern basis of aceounling unless the trustees either intend lo liquidate the charitable company or to cease operations. or have no realistic alternative but lo do so. Audltor's responsibilitles 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 misslatemenl, whether due lo fraud or error, and lo issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstalemenls 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 23 Ploneèrlng Care Partnership Report of the Independent AudEtors to tho Members of Pioneering Care Partnarshlp (Contlnued) For the year ended 31 March 2022 Irregularities. including fraud, are instances of non-compliance with laws and regulations. Wg design pra￿dureS in line th our responsibilities. outlined above, lo delecl material misslalemenls in respect of iThegularilies, including fraud. The exlenl lo which our procedures are capable of delecling irregularities, including flaud. is detailed below. We obtained an understanding of the legal and regulatory framework applicable to both the charitable company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected lo have a material effect on the financial statements frcm our se¢lor experience and through discussion with the directors and other management. The most significant were Identified as the Charities Act 201 f. the Companies Act 2006, UK GAAP (FRS1021 and relevant tax legistalion. We Considered the extent of compliance with those laws and regulations as part of our procedures on the related flnanrAal statements. Our audit procedures included.. making enquires of trustees and management as to where they consider there to be a susceplibilily lo fraud and whether they have any kno¥Medge or suspicion of fraud.. obtsining an understanding of the internal conlrc4s established to mitigate risks related lo fraud or non-compliance th laws and regulations., reviewing the minutes of meetings of those charged with governance., assessing the risk of management oveiride including identifying and testing journal entries., nfimiation received diretxly from the banks lo verify the balan￿ at 31 March 2022., and challenging the assumptions and judgements made by management in ils significant accounlSng eslimales. Our audit did not idet)tify any key audit matters relatsng lo the detection of irregularities including fraud. However, despite the audit being tAanned and conducted in accordan￿ with ISAS {UKI there remains an unavoidable risk that material misslalemenls Sn the financial slalements may not be detected ￿n9 lo inherent limitations of the audit. and that by their very nature, any such instances of fraud or irregularity likely invdve ¢ollusion, forgery, intentional misrepresenlalions, or the override of internal controls. A further description of our responsibili1Ses for the audit of the financial statements is located on the Financial Reporting Coundl's websile al.. ww.frc.org.uklaudilorsre8FX)nsibilities. This description fomis part of ¢Jur audllor's report. Use ofour report This report is made solely lo the charitable c(xnpany'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 stsle lo the charitable company's members those matters we are required lo slate lo them in an auditor's report and for no other purpose. To the fullest extent pem)illed by law, we do not accept or assume responsibility lo anyone other than the charitsble cc¢npany and the charitable company's members as a body. for our audit work, for this ￿pOrt, or for the opinions we have fomed. Donna Bulmei BA (Hons) ACA {Senlor Statutory Auditor) For and on behalf of Haines Watts Statutory Auditors 17 Queens Lane Newcastle upon Tyne NE1 1RN 24 Pioneering Care Partnership Statement of Financial Activities (Incorporating the Income and Expenditure Account) For the year ended 31 March 2022 Unrostrlcted Restrlcted fund$ funds Total 2022 Total 2021 Notes Income frorn: Donations Charitable activities Grant income Contract Income Trading activities Investment income 15,262 6,641 21,903 294,179 41.717 1.815,456 402,844 3.759 1.135,153 1,176.870 2,030,651 634,523 2,449,979 1.331,469 13,848 416,692 288,126 3.759 28.104 Total income 2,279,038 1,790,165 4,069,203 3.972,529 Expenditure on: Raising funds Investment manager costs Trading activities Charitable activities 3,000 13,324 1.760,481 3,000 3.000 13,324 37,956 1,317,126 3,077,607 2.452,258 Total expendtture 1,776,805 1.317.126 3.093,931 2,493,214 Net gains on investments 13,827 13,827 44,130 Net Incomelexpenditure before transfers 516,060 473,039 989,099 1,523.445 Transfers 19 125,9051 25.905 Ngt incomelexpenditure 490, 155 498,944 989,099 1,523.445 Reconciliation of funds Total funds brought forward 1.860,689 1.599,401 3.460,090 1,936.645 Total funds carrled forward 2,350.844 2,098.345 4,449.189 3,460,090 25 Ploneering Care Partnership Balance Sheet As at 31 March 2022 Notes 2022 2021 Fixed assets Tangible assets Investments 15 16 127,184 302,904 115,207 288,360 430,088 403.567 Curront assets Debtors Investments Cash al bank and in hand 17 1,196,751 258.779 2.745,447 1,391,791 250,923 1,576.704 4.200.977 3,219,418 Liabllltles Creditors.. amounts falling due within one year 18 1181.8761 1162,895 1 Net current assets 4,019,101 3,056,523 Total net assets 4,449.189 3,460,090 The funds ofthe charity Unreslricled funds Designated funds Restricted funds 1,715,205 635.639 2.098,345 1,599,401 430.681 1.430.008 19 4.449,189 3,460.090 The financial slalements have been prepared in accordance wth the provi&ons applicable lo companies subject to the small companies reglme. The financial statements were approved by the Board of Trustees on . behalf by= 2022 and were signed on ils Bary Knevitt- Chairperson Heather Brewster - Treasurer Company Number.. 03491237 The notes fomi part of these finanoal stslemenls 26 Ploneering Care Partnershlp Cash Flow Staternent For the year gnded 31 March 2022 2022 2021 Notes Cash flows from operating activities: Cash generated from operations 24 1,203.438 306,784 Net cash provided by (used inl operating activitigs 1,203,438 306.784 Cash flows from investing actlvlties: Purchase of tangible fixed assets Purchase of fixed asset investments Sale of fixed asset investments Interest received { 38,374) 126.9221 26,842 3,759 110,8501 184,281 1 83.981 28.104 Net ca8h provided by (used Sn) investing activlties { 34,6951 16,954 Change In cash and cash oquivalents in the reporting period 1.168,743 323,738 Cash and cash equivalents at the beglnning of the reporting period 1,576.704 1,252.966 Cash and cash equlvalents at the end of the reportlng period 2.745,447 1.576,704 27 Ploneering Care Partnershlp Notes to the financial statements forthe year ended 31 March 2022 Accounting Policie5 1.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with Accounting and Reporting by Charities". Statement of Recommended Practice applic8ble lo charities preparrng their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}, thè Charitses Act 2011, the Companies Act 2006 and UK Generally Accepted Practice. Pioneering Care Partnership meets the definition of a public benefit entity under FRS 102. The financial statements are prepared on a going concern basis under the historical convention, modified lo include ￿rtain items al fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been Consistently applied lo all years presented unless otherwise staled. 1.2 Golng concern The financial statements have been prepared on a going concern basis. The Trustees {Company Direelors foi the purpose of Company lawl have reviewed and considered relevant information, including the annual budget in making their assessment. In particular, in response lo the COVID-19 pandemic. the Trustees have lesled their projections to consider the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can lake to mitigate the impact. Based on these assessments, given the measures that could and will be undertaken to mitigate the current adverse conditions. the current resources available and new projects already confirmed for 2021-22 the Trustees have concluded that they can continue lo adopt the going concern basis in preparing the annual report and accounts. 1.3 Fund accounting Unrestricted funds can be used in accordance with the charitable objectives al the discretlon of the trustees. Designated funds comprise unreslricled funds that have been set aside by the ITustees for parbcular purposes. The aim and use of each designated fund is set out in the notes to the financial stalemenls. Restricted funds can only be used ft)r particular reslricled purposes specified by the donor or when funds are raised for particular reslricled purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial stalemenls. 1A Income All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled lo the income after any perfomance conditions have been mel, the amount can be measured reliably and il is probable that the income will be received. Income Irom charitable activities includes income received under contract or where entillemenl lo grant funding is subject to specific performance conditions and is recognised as earned. Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be meaSu￿d with reasonable certainly. Income received lo deliver services over a specific period covering more than one financial year is accounted for over the specific period.. related expenditure is ae¢ounled when incurred. 28 Pioneering Care Partnership Notes to the financial statements (Continuèd) forthe year ended 31 March 2022 For donations to be recognised the charity will have been notif￿ ol the amounts and the settlement dale in writing. Interest receivable on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. this is normally upon notification of the interest paid or payable by the bank. 1.5 Expendlture and irrecoverable VAT Liabilities are recognised as expenditure as soon as there is a legal or conslruGlive obligation commilling the charity to that expenditure, il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where eosls cannot be directly allribuled lo pailicular headings they have been allocated to activities on a basis consistent with the use of resources. The charity is partially exempt for VAT and input VAT not recoverable is Charged to management and adminislralion costs. 1.6 Support cost allocation Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs. governance costs. and administrative payroll costs. They are incurred dIr￿llY in support of expenditure on the objects of the charity. 1.7 Tangible fixed assets Tangible fixed assets are slated at cost lor deemed costl or valuation less accumulated depreciation and accumulated impairment losses. C05t includes ¢osts directly allributsble lo making the asset capable of operating as intended. Depreclatlon is provided at the following annual rates in order lo write off each asset over ils estimated useful Improvements lo property Hydrotherapy pool Equipment 6% on cost 200h on cost 33¥0 on cost Assets costing less than £1,500 are not capilalised. 1.8 Investments Investments are recognised initially as fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through Statement of Financial Activities. 1.9 Debtors and credltors Debtors and creditors with no staled interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses. 29 Ploneering Care Partnership Notes to thg financial statements (Continued) for the year endgd 31 March 2022 1.10 Financial instruments The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised at Irans8elion value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective Interest method. 1.11 Taxation The charity is an exempl charity within the meaning of schedule 3 of the Charities Act 2011 and is considered lo pass the lesls set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore il meets the definition of a charitable company for UK corporation lax purposes. 1.12 Pension costs and other p08t-retirement benefrts The eharilable company operates a defined contribution pension scheme. Contributions payable lo the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. 1.13 Leasing Rentals payable under operating lease contracts are charged lo management and support costs on a straight line basis over the term of the ¢ontract. The Charity extended its lease with Durham County Council on the Pioneering Care cent￿ during the year ended 31 March 2011. The Council will now lerminale the lease in 125 years from April 2010. Leasehold property improvements C8pilalised after the extension of the lease will be appraised on an individual project basis and will be depreciated according lo the Charity's assessment of their useful economic life. 1.14 Significant judgements and estimatlons In the application of the charity's accounting policies the trustees are required lo make judgements, estimates and assumptions about the carrying amounts of certain assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors that are considered lo be relevant. The items in the financial statements where these judgements and estimates have been made include.. Depreciation - Depreciation is calculated so as lo write off the Gosl of an asset. less ils residual value. over the economic life of that asset. An estimate of the useful life of assets is detailed in the depreciation accounting policy. Legal fomi Pioneering Care Partnership is a Company Limited by Guafanlee registered in England and Wales. Every member of the company undertakes to contribute lo the assets if the company is wound up while helshe is a member or within one year of ceasing to be a member, such amount as may be required not exceeding £1. The address of the registered office is given in the charity information in the reference and adminislralion pages of these financial slatemenls. Pioneerlng Care Partnership Notes to the financial statements (Continued) forthe year gnded 31 March 2022 Statement of financial activitigs for tho prlor year Unrestricted Restrictgd funds funds Totsl 2021 Total 2020 Notes Income from: Donations Charitable activities Other trading aclivilie5 Investment income 288,642 1,768,887 288,126 28,104 5.537 294,179 18,999 1,593.233 3,362,120 2.459,729 288,126 499,401 28,104 14,753 Total Income 2,373,759 1.598,770 3,972,529 2.992,882 Expenditure on: Raising Funds Charitable activities 40,956 1.909,772 40,956 109,622 542,486 2,452,258 2.495,690 Total expenditure 1,950,728 542,486 2.493,214 2,605,312 Net gainsl{losses) on Investments 44,130 44,130 114.361 } Net Incomglexpenditurg before transfers 467,161 1,056,284 1,523,445 373.209 Transfers 20 150.0471 50,047 Net in¢omelexpendlture 417,114 1,106.331 1,523,445 373,209 Reconciliation of funds Total funds brought forward 1.443,575 493,070 1,936,645 1,563,436 Total funds carrled forward 1,860.689 1.599,401 3,460,090 1,936.645 Donations and legacigs 2022 2021 Donations and gifts Job Retention Scheme 7,289 14,614 66,461 227,718 21.903 294.179 31 Pioneering Care Partnership Notes to the financlal statements (Continueil) for the year ended 31 March 2022 Income from charitable activities 2022 2021 Grants Contracts 1.176,870 2,030,651 2,449,979 1,331,469 3.626.849 3.352,120 Analysis by fund: Unreslricled funds Restricted funds 1.857,173 1,768,887 1,769.676 1.593,233 3,626,849 3,362,120 Other trading activities 2022 2021 Hydropool takings Rents and service charges Fees and room hire Therapy income Classes and courses Coffee shop Options Fundraising Other 26,890 294,723 43,208 2.346 224 8.077 2,938 11,526 26.760 720 245,587 16.787 370 24.453 209 416,692 288,126 Investment income 2022 2021 Bank interest receivable Investment income 42 3,717 3,300 24,804 3.759 28,104 Raising funds 2022 2021 Direct delivery Hydropoob maintenance Investment manager 7,228 6,096 3.000 37,230 726 3,000 16.324 40,956 32 Ploneering Carg Partnershlp Notes to the financial statements fcontinuod) for the year ended 31 March 2022 Charitable actlvltle8 costs Direct costs Support costs 2022 2021 Salaries & related costs Depreciation and impairment Room hire Travel and subsistence Activity expenditure Payments lo Partners Miscellaneous Office Costs Training Rent and rates Marketing Legal and professional Bank charges Irrecoverable VAT 2.144,769 26,399 7,643 34,607 178,153 142,538 606 225,853 34,372 98.478 36,335 50,699 11,724 42,086 32,959 2,177,728 1,891, 194 26,399 26,673 7,643 14101 38,214 14.099 178,153 104,266 142,538 15,158 606 2,994 226,982 185,719 34,372 11,626 98,478 90,180 36.335 33,918 56,349 44,634 11.724 3,198 42.088 29,009 3,607 1.129 5,650 3,034,262 43,345 3,077,607 2,452.258 Analysis by fund: Unreslricled funds Restricted funds 1,760,481 1.909,772 1,317,128 542,486 3.077,607 2,452.258 10. Support costs 2022 2021 Stsff costs Premises costs Travel costs Office cost$ Governance costs 32,959 36,436 63 2,236 1.129 7,021 1,421 5,450 43,345 43,370 11. Governance costs 2022 2021 Trustee expenses Audit fee 1,371 5,650 5,450 7,021 5,450 33 Pioneering Care Partnership Notes to the financial statements (Continued) forthe year ended 31 March 2022 12. Ngt incomellexponditure) Nel incomellexpenditurel is staled after chargingllcrediting).. 2022 2021 Depreciation Operating lease rentals- property Operating lease rentals- equipment 26,398 23,272 3,719 26,673 4,051 2.451 13. Auditors, rgmuneration 2022 2021 Fees payable lo the charity's auditors for the audit of the charity's annual accounts 5.650 5,450 14. Analysis of staff costs, trustee remungratlon and expenses, and the cost of key management personnel 2022 2021 Wages and salaries Social security costs Other pension costs 1,945.991 1,720,D32 144.814 123,280 80.605 75.164 2,171,410 1,918,476 The average monthly number of employees during the year was as follows.. 2022 2021 No. Chief Executive Senior Managers Quality, HR & Finance staff Administration & support Other project staff, etc 14 10 75 104 98 34 Pioneering Care Partnership Notes to the financial statements (Continued) for the year ended 31 March 2022 14. Analysls ol staff costs. trustee remuneration and expen$e$. and the cost of key management P9rsonnel (Continued) The number of employees whose annual remuneration was £60,000 or more were.. 2022 No. 2021 No. £60,000 to £70,000 £70,000 10 £80.000 The charity Iruslees were not paid or received any other benefits from employment in the year {2020 £nill. Three Iruslees were reimbursed expenses during the year of £1,371 12021 £0). No charity trustee received payment for professional or other servKes supplied lo the charily10 - £nill. The key management personnel include the Chief Executive, Executive Leads and Project and People Managers. The total employee benefits of the key management personnel of the charity were £273,68212021 £263,916) Pioneerlng Care Partngrship Notes to the financial statements (Continued) for the year ended 31 March 2022 15. Tangible fixgd assets Improvement Hydrotherapy to property P¢>oI Equlpmenl Totals Cost At 1 April 2021 Additions Disposals 209,511 41.829 204,171 455,511 38,374 38.374 14,2041 14,204 } At 31 March 2022 209,511 41,829 238,341 489,681 Depreclation Al 1 April 2021 Charge for year Eliminated on disposal 120,761 12,571 41,829 177,714 340,304 13,827 26.398 { 4.2051 { 4,2051 At 31 March 2022 133,332 41,829 187,336 362,497 Net book value At 31 March 2022 76,179 51,005 127.184 Al 31 March 2021 88.750 26.457 115,207 All fixed assets are for direct charitable use. During the year ended 31 March 2011 an extension to the Pioneering Care Centre was completed. The extension was developed by County Durham Council under a partnership agreement with PCP and was funded by the Community Assets Programme via The Big Lollery. As part of this partnership agreement, on completion of the building, Durham County Council adjusted the terms of the lease of the Pioneering Care Centre lo PCP to a long-term leasehold of 125 years, starting in April 2010, at a peppercorn rent. Leasehold property improvements capilalised after the extension of the lease will be appraised on an individual project basis and will be depreciated according lo the charity's assessment of their useful economic life. 36 Pioneerlng Care Partnership Notes to the financial statements (Contlnued) for the year ended 31 March 2022 16. Flxed asset investments Listed investments Cash in portfolio Total Cost or valuatlon At 1 April 2021 Additions Unrealised gains Net Cash movements in portfolio Disposals 272,651 15.074 14.464 15.709 288,360 15.074 14,464 11,848 { 26,842) 11.848 (26,8421 Al 31 March 2022 275,347 27.557 302,904 Listed equity investments that are traded on a quoted market are held at fair value determined by reference lo the quoted Pri￿ for identical assets in an active market at the balance sheet date. Wf(hin current assets, the charity holds a secured bond which has been invested for 7 years al an interest rale fixed al 3.130/4 per annum. 17. Debtors: Amounts falllng due withln one year 2022 2021 Trade debtois Prepayrnenls and accrued income Other Debtors 1.070,001 1,268,150 124.968 123.251 1.782 390 1,196,751 1,391.791 18. Credltors: Amounts falling due within one year 2022 2021 Trade creditors Social security and other taxes Other creditors Accrued expenses Deferred income 72.883 70.072 47,623 64,347 100 33,412 17.413 35,411 3.410 181,876 162,895 37 Pioneerlng Care Partnership Notes to the flnancial statements (Continuedj forthe year ended 31 March 2022 19. Statement of funds or the ear ende(131 March 2022 Balance at 1 April 2021 Balance at 31 March 2022 Investment Incom8 Expendlture gainsllo$s9s Transfers Unrestricted funds General funds 1.430,008 2,279.038 11,768,860) 13,827 { 238,808 } 1,715,205 Deslgnated funds Hydrotherapy pool renew81 Projects Centre Renovation 161,065 44.297 225,319 161,065 36,3S2 438.222 { 7.9451 212,903 Totsl Unrestricted funds 1,860,689 2.279,038 {1,776,8051 13,827 125,9051 2,350,844 Restricted fund Hydrotherapy pool BBO SFTV BBO Road Growing Our Community Together 21 RCG Mapping Grant Befriending Safe Haven Heallhwatch CIC Healthwalch England Covid 19 Resilience Hub Befriending Research Proiect Options Grant Young Adults Support Café This Girl Can LD & Autism Research Welfare Roadshow Lottery development Alliance work Catalyst Stockton Slocklon Covid Community Champions 80,098 1,339 545 38.496 147,174 80,643 142,481 1 { 151,5231 2,646 4,349 6.533 20,000 196,039 21.644 38,748 18.233 7,107 985,111 206.000 3,590 7,256 7.703 6.533 36,245 { 59,692 } 134,0581 {24,915} { 180.2501 {4,8171 16,160} {480,1681 { 95,0501 (95,5371 16,0191 { 6,3661 { 14,8791 3,447 (9,1591 152,822 9,159 5,888 104,003 13,416 947 1,081.665 322.950 9,005 9,097 1.337 222,642 5,000 50.000 16,693 15,704 245.505 576.722 212,000 85,489 7.860 15.463 237,521 5.000 50,000 33,050 114.558 { 16,357 } 198.8541 Total restricted funds 1,599,401 1,790,165 11,317,126) 25.905 2,098,345 3,460,090 4.069,203 13,093,931> 13.827 Total Reserves 4,449.189 Pione8ring Care Partnershlp Notes to the financial statements (Contlnued) for the year ended 31 March 2022 19. Statement of funds Icontlnued) For the ear ended 31 rGh 2921 Balance at 1 April 2020 Balance at 31 March 2021 Investment Income Expendlture gainsllosses Transfers Unrestrlcted funds General funds 1,232,653 2.365,092 11.950,728) 44.130 { 261,1391 1.430,008 Designated funds Hydrotherapy pool renewal Project Fund 157,241 53,681 8.667 220,476 19.3841 386,384 44.297 Total unrestrlcted funds 1,443.575 8,667 { 50,047) 1,860,689 Restricted funds Hydrotherapy pool BBO Road BBO STV Growing our Community Together 21 Healthwalch England Secondmenl Covid- 19 Resilience Hub Befriending research Project RCC Mapping Grant Safe Haven Options Heallhwalch CIC Sport England Young Adult5 SUPPOrt Café RGC Befriending Research Project 80,098 80.098 138,711 38,246 1,320 45.201 30,000 1.001,000 206,000 1146,8891 (39,9861 15631 { 62,2631 { 22,8931 11S,8891 8,178 3.079 5.213 1,339 6,533 20,000 7,107 985,111 206.000 { 30,841 1 196.039 38,748 3,590 18,233 7,703 7,256 21,644 583 37,062 346,041 39,909 { 119.1611 1104.716) 103,555 3,590 18.730 {4971 19501 {35361 125,143) 8,653 7,860 14.634 2,932 32,153 Total Restricted Funds 493,070 1,598.770 1542.4861 50.047 1.599,401 39 Pioneering Care Partnership Notes to the financial statements (Continued) for the year ended 31 March 2022 19. Statement of funds {ContinuedJ Building Beller Opportunities - Step Forward Tees Valley ISFTVI support local people to overcome the complex reasons preventing them from finding work. These barriers could include physical or mental ill health, a lack of self-confidence. a gap in skills. a conviction or an addiction. Step Forward Tees Valley is joint funded by the Big Lottery Fund and the European Social Fund, as parl of their investment in local projects that tackle the root causes of poverty and promote social inclusion. PCP delivers health and wellbeing support in Darlinglon, Redcar & Cleveland and Middlesbrough. Dementia friendly gardening grant was received from Durham County Council in the year lo support the Dementia Friendly Café. Together 21 support children young people with Down Syndrome and their families in the Durham and Teesside area. RCG Mapping Grant - PCP secured resource to support the development of information platforms for Children and Young People and Adults lo support the work of County Durham's Mental Health Partnership and the Resilient Communities Group. This grant was awarded lo enable scoping, testing and development prior to launching a platform Iwebsitel for use by k)cal people. This work was due to fully commence al the end of 201¥20 bul was delayed due lo COVID-19. Safe Haven - as part of a national NHS Transfomalion pilot PCP has been commissioned to develop 'Safe Havens, across the communities of County Durham and Darlinglon. This work was due to Commen￿ al the end of 2019-20 but was delayed due lo COVID-19. Heallhw8tch CIC relates lo funds transferred lo PCP during 2016 following the closure of the organisation. 20. Analysis of net assets For the ar ended 31 March 2022 Unrgstrlcted Designated Restricted funds funds funds 127,184 302,904 1.285,117 Total Tangible assets Investments Nel Current assets I liabilities 127.184 302.904 4,019.101 635,639 2.098,345 1,715,205 635,639 2.098,345 4,449,189 ear ended 31 March 2021 Unrestrlcted Designated Restricted funds funds funds 115,207 288,360 1,026.441 Total Tangible assets Investments Nel current assets I liabilities 115,207 288,360 3,056.523 430,681 1.599,401 1,430,008 430,681 1,599,401 3,460,090 40 Pioneering Care Partnership Notes to the financlal statements (Continued) forthe year ended 31 March 2022 21. Pensions The charity operates a defined contribution pension plan for rts employees. The amount recognised as an expense in the peri¢yJ was £O12021- £401. 22. Leasing agrggments Land & buildings 2022 2021 Other 2021 2022 Expiring.. Within one year Between one and five years In more than five years 23,272 15,704 108 4,051 23.554 109 3,719 4.191 2.451 143 39,084 27.714 7,910 2,594 23. Related party disclosures There were no related paty transactions for the year ended 31 March 202212021 - none). 24. Reconciliation of net income to net cash from operating activlties 2022 2021 Nel incomellexpenditurel for the reporting period las per the statement of financial aclivitiesl Adjuslmenls for.. Investment income Interest payable Depreciation charges Unrealised gains on investments Interest paid Deereasel{increasel in debtors Increaselldecreasel in credilois 989.099 1,523.445 13,7591 11.724 26,398 { 14,464 } (19.5801 195,040 18,980 128.104 } 26,673 {44,130} 11,118,612) {52,4881 Nel cash provided by operating activlties 1,203,438 306,784 41 ## **Pioneering Care Partnership** Report to the Trustees following the audit of the financial statements for the year ended 31 March 2022 The Trustees Pioneering Care Partnership Carer’s Way Newton Aycliffe DL5 4SF 26 July 2022 Dear Trustees ## **Audit for the year ended 31 March 2022** Following the completion of our audit fieldwork on the financial statements of Pioneering Care Partnership for the year ended 31 March 2022 we have the pleasure of submitting our Report to Management, setting out the most significant matters which have come to our attention during our audit and of which we believe you need to be aware of when considering the financial statements. The matters included in this report have been discussed with management of Pioneering Care Partnership during the audit and at our closing meeting on 12 July 2022. We would like to express our appreciation for the assistance provided to us by the finance team and other staff at the charity during the audit. ## **Use of this report** The procedures that we carry out are designed to provide us with reasonable assurance that the financial statements, taken as a whole, are free of material misstatement. They are not designed to disclose all errors or weaknesses in controls that exist and we report only on those that we have discovered during the course of our work. This report has been prepared for the Trustees’ information only and is not intended to include every matter that may have come to our attention. We accept no responsibility for any reliance that might be placed on it for any purpose by third parties, to whom it should not be shown without our prior written consent. Yours sincerely ## **Haines Watts** 2 ## **Pioneering Care Partnership Contents** **Page** 4-5 Audit overview 6-7 Significant matters arising from the audit 8 System and control weaknesses Appendices 9-11 Developments in the Sector 12-14 Letter of Representation 3 ## **Pioneering Care Partnership Audit Overview** ## **Audit scope and approach** Our audit work has been undertaken for the purpose of forming our audit opinion on the financial statements of Pioneering Care Partnership prepared by management with the oversight of the trustees and has been carried out in accordance with International Standards on Auditing (UK) (ISAs). Our work combined substantive procedures, involving on a test basis direct verification of transactions and balances (including obtaining confirmations from third parties where we consider it necessary), with a review of your financial systems and controls where we considered relevant to our audit. No limitations were placed on our work. This report refers only to material matters we have identified during the course of the audit of the financial statements of Pioneering Care Partnership for the year ended 31 March 2022 and which, in our professional opinion, are of sufficient importance to merit your attention. These matters are included within subsequent sections to this report. You should note that our evaluation of the systems of control at Pioneering Care Partnership was carried out for the purpose of our audit and it is not intended to be a comprehensive review of systems and processes. ## **Communicating significant findings from out audit** We are required by the ISAs to communicate with the trustees as “those charged with governance” various matters from our audit including: - our views about significant qualitative aspects of the charity’s accounting practices, including accounting policies, accounting estimates and financial statement disclosures; - significant difficulties, if any, encountered during the audit; - any significant matters arising during the audit and written representations we are requesting; - circumstances that affect the form and content out our audit report, if any; and - any other significant matters brought to our attention during the audit. 4 ## **Pioneering Care Partnership Audit Overview** ## **Materiality and identified misstatement** For the purpose of the audit we calculated materiality for the year ended 31 March 2022 to be £40,500 with performance materiality being £32,700. To assist you in fulfilling your governance responsibilities, which include maintaining oversight of the financial reporting process and the effectiveness of the system of internal control, we include, as part of Appendix B, a list of misstatements that were detected during the course of the audit. The adjustments processed within the financial statements have been agreed with the Chief Executive, Carol Gaskarth. There are no items that remain unadjusted which exceed the clearly trivial limit, which was set at £1,000. ## **Financial statements** The trustees of Pioneering Care Partnership are responsible for the preparation of the financial statements on a going concern basis (unless this basis is not appropriate). The trustees are also responsible for ensuring that the financial statements give a true and fair view, that the process your management go through to arrive at the necessary judgements is appropriate and that any disclosure on going concern is appropriately made within the financial statements. ## **Audit opinion** We have provided an unqualified audit opinion on the financial statements of Pioneering Care Partnership for the year ended 31 March 2022. 5 ## **Pioneering Care Partnership Significant matters arising from the audit** We reported in our Planning Communication Letter (dated 21 April 2022) a number of areas we identified as having specific audit risk, we have commented below on the work undertaken in these areas as well as any other additional key risks, judgements or other matters in relation to the financial statements of Pioneering Care Partnership identified during the course of the audit. |audit.||| |---|---|---| |**MATTER IDENTIFIED**|**AUDIT IMPACT**|**RESPONSE**| |**Revenue recognition**
In accordance with the ISAs completeness and
existence of income and cut-off is always
considered a significant risk.|The financial statement may contain material
misstatement as a result of inconsistent
recognition with accounting policies.|A sample of grant and contract income was agreed back to documentation.
Walkthroughs were performed on each income stream, along with transactional testing.
Income is reviewed around the year end to ensure recorded in the appropriate period.| |**Management override**
The ISA’s state that this is always deemed to be
high risk for an audit.|The financial statements may contain material
misstatements as a result of fraud or error
due to management override of controls.|Walkthroughs were performed on all material areas of the financial statements to
ensure that key controls in place are followed.
A sample of journals were reviewed and agreed to supporting documentation| 6 ## **Pioneering Care Partnership Significant matters arising from the audit** |**MATTER IDENTIFIED**|**AUDIT IMPACT**|**RESPONSE**| |---|---|---| |**ISA 540 – Accounting estimates**
ISA 540 includes revised audit requirements
that are more specifically directed at the
components of an accounting estimate.|This increases the documentation and review
of higher risk areas, along with increased
disclosure in the financial statements.|We identified support cost allocation as a key accounting estimate highlighted in our
planning communication letter.
We reviewed the assumptions in place for support cost allocations.| |**ISA 570 – Going concern**
The revised ISA 570 requires more reporting to
ensure that the underlying budget assumptions
and forecasts are realistic and free from
management bias.|The auditor’s will perform a detailed review
of the directors’ assessment of the going
concern and the information provided for a
period of at least 12 months post audit report
date.|We undertook a review of managements assessment of going concern, including stress
testing budgets provided to us.
The entity remains a going concern for the year ended 31 March 2022.| |**ISA 240 – Auditors Responsibility relating to**
**Fraud**
An Auditor is responsible for obtaining
reasonable assurance that the financial
statements taken as a whole are free from
material misstatement, whether caused by
fraud or error.|The auditor's report shall explain to what
extent the audit was considered capable of
detecting irregularities, including fraud. This
explanation shall be specific to the
circumstances of the charity and work
undertaken during the audit.|We have enquired with management of any frauds during the year, through discussions
and review of records during the audit.
These procedures have been detailed within the audit report in line with the changes to
the ISA.| 7 ## **Pioneering Care Partnership Systems and controls issues** We have set out below certain potential improvements to the charity’s processes and controls which we noted during our audit work. In order to provide you with a clear picture of the significance of the issued raised, we have graded the issues by significance/priority. |High|These finding are significant and require urgent attention| |---|---| |Medium|These findings are less urgent but still require reasonably prompt action| |Low|These finding merit attention within an agreed timescale| |**AUDIT FINDINGS**|**RECOMMENDATIONS**|**PRIORITY**|**MANAGEMENT RESPONSE**| |---|---|---|---| |During a walkthrough on reception sales income, it was
noted that there was a lack of segregation of duties
between the member of staff cashing the monies in the
bank and the person entering the details on the
nominal.|A 3-way check between the till records, cash
banked and nominal should be undertaken.||Systems and processes have been checked and refined to
take account of suggestions at Audit.
Segregation is now achieved through the following;
1. Daily cashing up sheets to be scanned and emailed to the
Finance generic email address;
2. This daily record will then be stored on the finance
system;
3. A separate member of the finance team will complete the
banking and the ledger;
4. Quarterly a sample will be spot checked by the Finance
Manager.
This process will be implemented from1st September2022| 8 ## **Pioneering Care Partnership Appendix A – Developments in the sector** ## **Charity Commission publications** The Charity Commission have a number of publications offering guidance; the following have been updated over the last year: - Protect your charity from fraud and cyber crime (October 2021) ## **Charity governance, finance and resilience – 15 questions trustees should ask** CC3 – The essential trustees set out six key duties for a charity trustee. Focusing on three of these duties The Commission has designed 15 questions to get trustees to consider the charity’s solvency, resilience and quality of governance. - Prepare a charity annual return (July 2021) – update on filing extensions - Independent examination of charity accounts; guidance for trustees (July 2021) – updated to reflect the use of electronic signatures - Coronavirus (Covid-19) guidance for the charity sector (October 2021) – updates made to charity meetings and insolvency help for charities - Charity reporting and accounting: the essentials (July 2021) - Charities and terrorism (June 2021) – Chapter 1 of the compliance toolkit has been updated to reflect UK counter-terrorism legislative developments - Charity purpose and rules (November 2020) – details the rules you must follow to govern your charity https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_ data/file/569550/15_questions_trustees_should_ask.pdf ## **5-minute guides for charity trustees** In February the Charity Commission issued bite-sized guidance to refresh trustees knowledge in various topics, these included; purpose, finance, conflicts of interest, decisions and support. https://www.gov.uk/government/collections/5-minute-guides-for-charity-trustees - Charity Commission guidance (November 2020) – guidance to help you set up and run a charity - Managing conflicts of interest in a charity (November 2020) - Reporting serious incidents to the Charity Commission during the coronavirus pandemic (June 2020) 9 ## **Pioneering Care Partnership Appendix A – Developments in the sector** ## **Charities Commission guidance regarding Covid-19** The Charity Commission has published guidance for the charity sector in respect of difficulties they may be facing due to the Coronavirus (COVID-19) pandemic. For some charities, this may be an increase in demand for others a grim financial impact. https://www.gov.uk/government/news/coronavirus-covid-19-guidance-for-the-charitysector The Charity Commission guidance highlights the following key areas for charities to consider: - Financial support for those charities no longer able to operate due to COVID-19 to enable charities to pay wages is available in the same way that it is to businesses. - Reserves held by the charity can be spent to help cope with the charity’s financial position; however trustees will still need to consider the short, medium and longer term priorities. - Funds that have been designated for particular projects by the trustees can be undesignated and used for other purposes. - Restricted and permanently endowed funds (where the donor has specified that the funds must be used for a particular purpose) should only be considered after other options such as the use of reserves are not possible. There may be ways under the Charities Act 2006 or the terms of the original gift to amend or release the restrictions on these funds; but you should seek professional advice if you are considering this option and that the Charity Commission will be as helpful as possible where its consent is needed. - If necessary to postpone or cancel an AGM or other critical meetings. This is acceptable given the circumstances but you should record this. - Check your governing document if you are planning to hold meetings by video or teleconferencing. Some governing documents will include a provision allowing this, others will not. You should ensure that you demonstrate good governance if you decide to proceed with meetings in this way. - Charities are reminded to ensure that volunteers and staff are protected and it is recommended that charities refer to the Charity Commission safeguarding guidance. - The Charity SORP accounting standards has issued updated guidance. The guidance considers the implications for the trustees’ annual report, going concern and the alternative basis to going concern when preparing accounts under the SORP. The initial guidance has been updated throughout the pandemic with recent guidance adding some insolvency guidance to charities. 10 ## **Pioneering Care Partnership Appendix A – Developments in the sector** ## **SORP – Second Edition** A copy of the updated SORP can be found at the following address; https://www.charitysorp.org/media/647945/charities-sorp-frs102-2019a.pdf The next version of the Charity SORP was discussed at the July 2020 SORP Committee meeting. Future changes to the Charity SORP will be closely tied to more general developments in UK accounting practice and the next update of FRS102, the financial reporting standard upon which the SORP is based. As a result we can now expect that a draft of the next version of the Charity SORP will be published no earlier than July 2022, with a consultation and finalisation process taking up to a year to complete. It is hoped that the next version of the Charity SORP will then be finalised no later than October 2023 and will come into force for accounting periods beginning on or after 1 January 2024. This means the existing version of the Charity SORP will remain in force for a few years yet. ## **Streamlined energy and carbon reporting framework** The Streamlined Energy and Carbon Reporting (SECR) legislation was implemented on 1 April 2019. The new regulations apply to quoted and large unquoted companies, including charitable companies. The new regulations require companies to disclose their energy and carbon emissions in their annual report. Charities who fall below this threshold are not prevented from including these disclosures should they wish to improve transparency. The requirements, as a minimum include reporting on UK energy use from electricity, gas and transport fuel, and associated greenhouse gases, and narrative reporting on measures taken to improve the businesses’ energy efficiency in the year. Further details on climate related reporting can be found in guidance issued by the FRC in October 2019, Climate Change Reporting: Where to next. ## **Filing charity annualreturns during the coronavirus pandemic** The Charity Commission has identified during the pandemic that the charity sector have faced a number of challenges, to show their support they have offered extensions to the filing of the annual return. This has recently been reviewed and for charities with an imminent filing deadline from 1 July to 30 September you can continue to apply for a fixed three month extension from the date of application. This would need to be done by emailing filingextension@charitycommission.gov.uk 11 ## **Pioneering Care Partnership Appendix B – Letter of representation** Haines Watts 17 Queens Lane Newcastle upon Tyne NE1 1RN To whom it may concern, The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the charitable company’s financial statements for the year ended 31 March 2022. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief. ## **General** 1. We have fulfilled our responsibilities as directors as set out in the terms of your engagement letter dated 28 July 2021 under the Charities Act 2011 for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you. 2. All the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. 3. All the accounting records have been made available to you for the purpose of your audit. We have provided you with unrestricted access to all appropriate persons within the charitable company, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission. 4. The financial statements are free of material misstatements, including omissions. 5. The effects of uncorrected misstatements (as set out in the appendix to this letter) are immaterial both individually and in total. ## **Internal control and fraud** 6. We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud. 7. We have disclosed to you all instances of known or suspected fraud affecting the entity involving management, employees who have a significant role in internal control or others that could have a material effect on the financial statements. 8. We have also disclosed to you all information in relation to allegations of fraud or suspected fraud affecting the entity’s financial statements communicated by current or former employees, analysts, regulators or others. 12 ## **Pioneering Care Partnership Appendix B – Letter of representation** ## **Assets and liabilities** 9. The charity has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets, except for those that are disclosed in the notes to the financial statements 10. All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate. 11. We have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements. ## **Accounting estimates** 12. The methods, data and significant assumptions used by us in making the accounting estimates, and their related disclosures, are appropriate to achieve recognition, measurement and disclosure that is reasonable in the context of the applicable financial reporting framework. ## **Legal claims** 14. We have disclosed to you all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for, and disclosed in, the financial statements. ## **Laws and regulations** 15. We have disclosed to you all known instances of non-compliance or suspected noncompliance with laws and regulations whose effects should be considered when preparing the financial statements. ## **Related parties** 16. Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with legislative and accounting standards requirements. ## **Loans and arrangements** 13. The charity has not granted any advances or credits to, or made guarantees on behalf of, directors other than those disclosed in the financial statements. ## **Subsequent events** 17. All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed. 13 ## **Pioneering Care Partnership Appendix B – Letter of representation** ## **Going concern** 18. We have considered the impact of Covid-19 on the going concern of the charity and have made appropriate disclosures within the financial statements. 19. We believe that the charities financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charitable company’s needs. We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the charities ability to continue as a going concern need to be made in the financial statements. We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. Each director has taken all the steps that they ought to have taken as a director in order to make them aware of any relevant audit information and to establish that you are aware of that information. Yours faithfully ## **Grants and donations** 20. All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such income. 21. The restricted grants and donations are included within the financial statements. .............................................................................................................................. Signed on behalf of the board of directors Date 14