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2021-03-31-accounts

DEVELOPING HEALTH AND INDEPENDENCE

(Company limited by guarantee no. 03830311 registered charity no. 01078154)

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Report and Accounts

DEVELOPING HEALTH AND INDEPENDENCE

(Company limited by guarantee no. 03830311, registered charity no. 01078154)

REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2021

CONTENTS

Page
Legal and administrative information 1
Trustees's report 2
Auditors' report 11
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18
Prior year statement of financial activities 37
Prior year analysis of funds 38

DEVELOPING HEALTH AND INDEPENDENCE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS For the year ended 31 March 2021

Trustees
Secretary
Key Management Personnel
Company reg. no.
Charity reg. no.
Registered office
Accountants
Bankers
Solicitors
Investment Manager		 Ms Sarah Davies (chair)
Mr David Guy (Vice Chair) (resigned 15 September 2020)
Mr Tim Marvell
Ms Katharine Hegarty
Mr David Ollendorff
Mr Christopher Oliver
Mrs Alison Millar
Ms Linda Candy (Vice Chair from 15 September 2020)
Mr Bob Goodman
Mrs Myriam Kniveton (appointed 9 March 2021)
Mr James Hooton (resigned 7 May 2021)
Mrs Susan Hughes (appointed 5 July 2021)
Ms Rosemary Phillips (Chief Executive Officer)
Mr James Hooton (Finance and Operations Director) (resigned 7 May 2021)
Mr Ben Harman (Corporate Services and Finance Director)
(appointed 23 August 2021)
Mr David Walton (Housing Director - Housing and Social Exclusion)
Ms Julie Hughes (Treatment Services Director)
Mr Jody Clark (Associate Director)
03830311
01078154
Up to 12 October 2020
From 12 October 2020
15-16 Milsom Street
14 St James` Parade
Bath
Bath
BA1 1DE
BA1 1UL
MHA Monahans
Chartered Accountants
Fortescue House
Court Street, Trowbridge
BA14 8FA
Barclays Bank
Leicester
LE87 2BB
Unity Trust Bank plc
Nine Brindley Place
Birmingham
B1 2HB
Thrings
2 Queen Square
Bath
BA1 2HQ
Aberdeen Standard Capital,
1 George Street
Edinburgh EH2 2LL

1

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

The Trustees, who are also Directors of the Company for the purposes of the Companies Act, and Trustees for charity law purposes, submit their annual report and the financial statements of Developing Health and Independence (DHI) for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the Charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.

Chair's Report

Ensuring that those most marginalised are supported to achieve their potential remained at the heart of everything we have done over the past year. While Covid has been a constant backdrop and challenge, the Charity approached meeting its objectives in a positive and solution focussed way.

2020/21 was a year in which we did many things differently, often digitally, and undoubtedly we have learnt from this and there have been some surprising gains along the way. I would like to thank all those involved with running or supporting the organisation, in particular the staff, volunteers, partners and peers, for their endeavours.

Covid has accelerated or magnified many existing trends, including growing inequality and diminished opportunities, especially for the young, poor and minority groups. Alcohol use is already on the increase, unsurprisingly, as a common human response to stress and pain. Meanwhile, we expect funding will be tight and competitive. We invested heavily in technology in the previous financial year, which proved invaluable in this one, and no doubt in the years ahead.

Overall we are in a solid position operationally, financially and with a strong board and leadership in place to steer us through challenging times ahead as no doubt Covid, its health and economic consequences will reverberate for many years to come. We will ensure we remain anchored to our core values as we look to ensure those most vulnerable and marginalised have opportunities to fully realise their potential.

Our Purpose

2

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

The Charity’s vision

DHI helps disadvantaged people to turn their lives around, stand on their own two feet and reduce dependency. DHI is flexible, creative and person-centred in its approach, valuing each individual and their circumstances as unique.

The Charity’s values

The Charity’s activities

Few, if any, of our clients come with a single issue so we work with the person to find and resolve the root cause of their issues. We help people through highly practical, solution focused and innovative projects and services. These include: supported housing as well as general needs housing for those on no or a low income, resettlement and floating support services, drug and alcohol treatment, employment reintegration, social prescribing, information, advice and signposting.

The Trustees have referred to the guidance in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning the Charity's future activities.

In particular, the Trustees have considered how planned activities will contribute to the aims and objectives they have set.

Achievements and performance

During the 2020/21 financial year DHI’s services grew and continued to thrive despite Covid with a net increase in the Charity’s incoming resources of 5% (2019/20: increase of 8%). The Charity’s net movement in funds during the year contributed an additional £401,287 (2019/20: £438,496) to reserves.

DHI uses a Balanced Score Card to drive strategy and measure the achievement of the Charity’s key strategic objectives. This was the first year of a new three-year strategy in the Business Plan. The criteria against which success was measured in 2020/21 were:

3

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

In terms of service delivery, DHI supported in excess of 7,000 clients, their families and carers to be more independent and lead happier, more fulfilling lives. This included:

Financial Review

Income

DHI’s total income increased by £320,229 (5.2%) this year from £6,046,387 in 2019/20 to £6,366,616. A detailed analysis of income is shown in the Statement of Financial Activities (SOFA) and Notes 2 – 3 of the Financial Statements. Driving this increase is contract income from the remodelled B&NES Adult Drug and Alcohol Treatment and Social Prescribing services as well as an increase in DHI’s social housing stock.

Expenditure

Total spending on charitable activities for the year of £6,056,808 represents an 9% increase in expenditure from 2019/20 (£5,556,717). In large part, the increase in expenditure matches the income increase due to the remodelled services. Extra resources were also expended on Technology infrastructure as DHI pivoted to homeworking in March 2020 as the COVID-19 pandemic forced the UK into lockdown. Additionally, with offices in Bristol and B&NES under reduced occupancy, the Charity took the opportunity to undertake some dilapidations work, improving and increasing service user experience and post-lockdown capacity as well as improving the working environment for staff.

Further analysis of charitable activity expenditure, showing the operational activities undertaken by DHI are given in the SOFA and in Note 5 of the Financial Statements.

Fund Analysis

The Board can confirm that the Charity’s assets are available and adequate to fulfil the obligations of the Charity on a fund-by-fund basis. Incoming resources for the year of £6,366,616 (2020 £6,046,387) included £103,779 of restricted funds (2020 £597,252). Of the £4,712,908 funds retained at year end (2020 £4,311,621), £3,485,749 were designated (2020 £2,902,528) and £145,445 were restricted (2020 £487,531).

Further analysis of designated and restricted funds is shown in the SOFA and Notes 15-16 of the Financial Statements.

Reserves Policy

The Board has examined the Charity’s requirements for reserves in the light of the main financial risks to the organisation.

Within DHI’s Reserves & Investments Policy, to ensure the financial viability of the charity and its ability to meet its on-going commitments, the Board have determined that Reserves should be maintained at three to six months organizational Operational Costs. For 2021/22, budgeted monthly operating costs are £638,000. The organisation holds £1,081,714 (2020: £921,562) in General Funds, equating to 1.7 months. In the year, the Charity has completed the renovation of a new treatment centre and head office in B&NES and has

4

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

reduced other capital spending on property. The Trustees expect the level of General reserves to increase to be closer to the policy in 2021/22

In addition, the Trustees require that Free Reserves remain in surplus. This was the case on 31st March 2021.

Furthermore, the Trustees require that working capital should be maintained between three- and six-months’ average expenditure to meet ongoing commitments throughout the year.

At 31st March 2021, the organisation held £1,047,417 (2020 £1,399,012) net current assets (current assets after deduction of creditors due within a year) equating to 1.6 months cash or cash equivalents to meet average expenditure. However, after factoring in the Fixed Asset investment portfolio of £706,062 that can be liquidated into cash in five days, there are 2.7 months cash or cash equivalents to meet average expenditure.

The Board do feel confident DHI is able to continue the core activities of the Charity in the event of a significant drop in funding, whilst considering how any such loss in funding could be replaced or activities changed.

The Board is committed to investing additional resources for the purposes of developing services to our client group. Several opportunities are being reviewed and weighed against the need to maintain our reserves in the volatile funding environment which we and other similar organisations face.

Investment Policy

DHI is committed to maintaining funds in instant access accounts to meet all the day to day needs for working capital. Any funds beyond this, and not required for development of the Charity’s activities in the short term, will be invested in low to medium risk investment or deposit accounts, reviewed and recommended by the Audit Committee and approved by the Board.

Toward the end of the prior year, when the Covid-19 outbreak was declared a pandemic, stock markets globally saw sharp declines that negatively affected the performance of the investment portfolio. Over the course of the year, the markets have recovered, and the CAF fund has increased by 17% to the end of 20/21 and the Trustees continue to review performance.

Principal Risks and Uncertainties

DHI has a Risk Register which is a standing item for review by the Board. The procedure takes into account all major risks that the Charity may be exposed to in terms of likelihood and impact on the business if they happen. This review includes the operational, reputational, and financial impact combined with a 'likelihood' score.

The organisational risk assessment procedure takes into account all major risks that the Charity may be exposed to in terms of likelihood and impact on the business if they happen. This review includes the operational, reputational, and financial impact combined with a ‘likelihood’ score and practical measures to mitigate any identified risks.

The key risks identified by the Executive:

5

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

Going Concern

On reviewing the organisation's budgets and business plan, taking account of the current economic climate and its reserves position, the Board has a reasonable expectation that the organisation has adequate resources to continue in operational existence for the foreseeable future and for this reason it continues to adopt the going concern basis in the financial statements.

Plans for the future

In light of Covid we completed a more thorough review of the Charity’s activities at this stage in our strategic planning cycle than would usually be the case one year in. Staff, board and key stakeholders all contributed to this.

Despite Covid, however, the strategic priorities in the Business Plan 2020-23, were felt to remain highly relevant, in particular: Keeping young people safe through education and early intervention, and Increasing access to affordable housing for all. Building relations with primary care is replaced by Building Capacity in treatment services through early/digital interventions.

The near horizon and changes to the current 3 year strategy are driven by Covid, which has accelerated or magnified many existing trends, including growing inequality and diminished opportunities, especially for the young, poor and minority groups. Other trends that we need to be mindful of and respond to include the ongoing erosion of local authority power and influence, and with it an uncertain place for social care; changing commissioning bodies and relationships. Positively, there are increased opportunities through digital technologies to reach people who may have found access to services difficult, alongside more appetite for risk taking and change from statutory commissioners.

It is clearly a period of great change and uncertainty. Early interventions need to be developed across the board at DHI, as we see more people become victim to the prolonged economic consequences of Covid, and struggle financially and emotionally. Drug and alcohol use are expected to increase set against an uncertain funding climate. Moving upstream and ‘getting it right’ with home/digital work, forming the right

6

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

alliances and relationships will be key, and having an excellent communications strategy critical.

Communicating to key stakeholders such as those in health/public health the value of person centred support that empowers, including our role in addressing poor mental health, are central to this.

The Trustees are assessing a major opportunity to expand our stock of managed social housing in the South West of England. Although there is no guarantee that any agreement will be reached, if the proposed transaction were to complete, the number of properties under management would almost treble from the current level.

Structure, Governance and Management

The organisation is a Charitable Company limited by guarantee, incorporated on 23 August 1999 and registered as a charity on 10 November 1999. The Company was established under a Memorandum of Association which established the objects and powers of the Charitable Company and is governed under its Articles of Association.

The Board is elected from its membership by its Members either at its AGM, or, where a vacancy exists, at any time between AGMs.

DHI’s Board consists of up to 10 Members who meet at least four times a year and who are responsible for the strategic direction and governance of the Charity, agreeing the business plan, monitoring progress toward achievement of organisational goals, reviewing operational performance and overseeing the management of organisational risk. Meetings must be quorate with the attendance of a minimum of three Trustees, and each meeting is formally minuted. A register of attendance at Board Meetings is maintained and the attendance rate for the year by Board Members was 100%.

The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

An Audit Committee consisting of three Trustees, the Corporate Services Director and Chief Executive Officer (CEO) meet at least twice a year to review financial and other audits.

A Housing Committee formed by the Board oversees investment and development of the organisation’s property for the furtherance of DHI’s charitable objectives. The Committee consists of three Trustees and the Housing Director and meets as required through the year.

In addition, a Tenant and Service User committee has been set up in order to ensure DHI engages residents and clients in service development, delivery and review, and toward the promotion of equality and diversity.

Following our Equality Impact Assessment, DHI has set up a focus group for BAME staff. This meets four times a year to hold open dialogue about the organisation`s culture and support for BAME staff; in particular how the organisation can promote people from BAME groups into positions of leadership. Membership of this focus group is for those staff from a minority race, with the CEO and Chair invited to attend every other meeting.

The CEO is responsible for strategic and operational management and is authorised to deploy resource, through the Executive, toward the achievement of DHI’s charitable objectives.

The Executive of the organisation comprises:

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

Regular meetings are held where performance is monitored, strategically, operationally and financially, and potential improvements discussed and actions agreed. A table of delegated responsibilities outlines the delegated authorities of senior staff, including delegated financial and health and safety responsibilities. Operations Managers and Team Leaders in turn discharge their responsibilities through the activities of teams of skilled and committed workers. This process is to undergo a thorough review in 2021/2.

In alignment with our values, staff, volunteers and clients are heavily involved in shaping and continuously improving services, through a wide variety of mechanisms.

Trustees are appointed following application and interview with the Chair, Chief Executive Officer and one other Trustee. Following a satisfactory interview, candidate Trustees are invited to join at least one meeting as an observer. At the end of these meetings, the Board will review the candidate Trustees’ contribution and then invite them, if appropriate, to be full members.

All new Trustees receive induction and mentoring to assist their personal development as DHI Trustees. As new members of the Board they are provided with an induction pack which includes DHI`s major policies, Business Plan, Annual Report, Memorandum and Articles and other relevant and corporate documentation. They are then invited to meet the Chair and the Chief Executive for an induction and they also attend the next available DHI staff induction meeting which are held regularly throughout each year.

It is the individual responsibility of Trustees to ensure they update their skills and participate in development opportunities offered, which could include attendance at conferences, training and less formal support and advice all of which can be facilitated through DHI as required.

All Trustees are expected to show a commitment to the core purpose and values of the organisation and the role which would include attending meetings, reading papers in advance and volunteering for working groups as required. Appraisals of Trustees take place after their first year, then at the end of every 3-year term. In addition, an ‘Away Day’ provides an opportunity for training and development.

Key Management Personnel, excluding Trustees, are remunerated by annual salary and the DHI standard pension contribution. There are no additional payments or benefits in kind. Remuneration levels for all grades under CEO are set against a standard point scale (the ‘National Joint Committee’ scale) and are subject to performance based review. The CEO’s salary is set by a Remuneration Committee, comprising three Board Members, including the Chair. Factors which the Remuneration Committee takes into account when setting pay includes: cost of living, performance and other key factors such as a significant increase in responsibility due to a new major contract.

Trustee roles, in line with all posts within DHI, are advertised widely to encourage broad participation and diversity. The Board and Executive work to ensure that diversity within the organisation is promoted.

The Charity does not actively solicit donations from the public and does not need to develop formal policies on its fundraising approach. However, DHI is a member of the Fundraising Standards Board and by participating in the scheme is committing to best fundraising practices, honesty, transparency, clarity and accountability.

Related parties and relationships with other organisations

DHI holds an impressive track record of achievement against targets and strives continuously to improve its performance and service quality while achieving value for money. However, in order to deliver excellent client centred services that have maximum impact for both individuals and communities, we rely on building and maintaining excellent partnerships with a wide range of statutory and non- statutory organisations. In

8

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

addition to many informal partnerships, DHI has a number of formal contractual relationships including with Avon & Wiltshire Mental Health Partnership, Clean Slate, Broadway Lodge, Curo, Southern Brooks and Hawkspring.

Guarantee of Members

Members of the Charitable Company guarantee to contribute an amount not exceeding £1 to the assets of the Charitable Company in the event of winding up. The total number of such guarantees at 31 March 2021 was eight (2020: nine).

The Trustees (who are also the Directors of DHI for the purposes of Company Law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

The Trustees are responsible for maintaining proper accounting records that disclose with reasonable accuracy at any time, the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure of information to the auditor

So far as the Trustees are aware, there is no relevant audit information of which the Company’s auditor is unaware. Additionally, the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.

Preparation of the report

This report has been prepared taking advantage of the small companies exemption of section 415A of the Companies Act 2006.

9

DEVELOPING HEALTH AND INDEPENDENCE

TRUSTEES' REPORT For the year ended 31 March 2021

Auditors

The auditors, MHA Monahans, have indicated their willingness to accept re-appointment under Section 485 of the Companies Act 2006.

This report was approved and authorised for issue by the Trustees on 14 September 2021 and signed on their behalf by:

Sarah Davies Chair

10

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEVELOPING HEALTH AND INDEPENDENCE

Opinion

We have audited the financial statements of Developing Health and Independence (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities (including Income and Expenditure Account), the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion the financial statements:

Basis for opinion

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

Conclusions related to going concern

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

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

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

11

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEVELOPING HEALTH AND INDEPENDENCE

Other information

The other information comprises the information included in the trustees annual report2, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report2. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

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:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

12

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEVELOPING HEALTH AND INDEPENDENCE

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

Our responsibilities for the audit of the financial statements

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

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

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

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

13

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEVELOPING HEALTH AND INDEPENDENCE

Use of our report

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

James Gare (Senior Statutory Auditor) For and on behalf of MHA Monahans Statutory Auditors Chartered Accountants Fortescue House Court Street Trowbridge BA14 8FA

04 October 2021

14

DEVELOPING HEALTH AND INDEPENDENCE (company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (including income & expenditure account) For the year ended 31 March 2021

Unrestricted
Funds
Note
2021
£
INCOMING RESOURCES
2
19,429
3
Treatment Services
4,678,153
Community Services
278,829
Housing Projects
594,218
Home Turf Lettings
444,541
Central Services
238,594
9,073
6,262,837
RESOURCES EXPENDED
Charitable activities
5
Treatment Services
4,432,766
Community Services
267,965
Housing Projects
649,505
Home Turf Lettings
473,892
Central Services
187,452
6,011,580
10
91,479
342,736
Transfers between funds
(182,584)
160,152
RECONCILIATION OF FUNDS:
15
921,562
1,081,714
£
TOTAL RESOURCES
EXPENDED
Net gains/(losses) on
investments
NET INCOME /
(EXPENDITURE)
NET MOVEMENT
IN FUNDS
TOTAL FUNDS
BROUGHT FORWARD
TOTAL FUNDS
CARRIED FORWARD
Donations
Charitable activities
Investment income
TOTAL INCOMING
RESOURCES		 Designated
Funds
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
583,221
583,221
2,902,528
3,485,749
**£ **		 Restricted
Funds
2021
£
-
51,118
-
-
12,500
40,161
-
103,779
3,622
-
-
12,500
29,106
45,228
-
58,551
(400,637)
(342,086)
487,531
145,445
**£ **		 Total
Funds
2021
£
19,429
4,729,271
278,829
594,218
457,041
278,755
9,073		 Total
Funds
2020
£
6,903
4,463,882
113,034
687,204
725,002
33,967
16,395
6,366,616 6,046,387
4,436,388
267,965
649,505
486,392
216,558		 3,973,762
105,761
667,629
418,097
391,468
6,056,808 5,556,717
91,479 (51,174)
401,287
-		 438,496
-
401,287 438,496
4,311,621 3,873,125
4,712,908
**£ **		 4,311,621
_£ _

The annexed notes form part of these financial statements

15

DEVELOPING HEALTH AND INDEPENDENCE

BALANCE SHEET As at 31 March 2021

Notes
2021
£
£
£
FIXED ASSETS
Tangible assets
9
3,781,310
Investments
10
706,062
4,487,372
CURRENT ASSETS
Debtors
11
234,337
403,939
Cash at bank and in hand
1,488,317
1,669,136
1,722,654
2,073,075
CREDITORS: amounts falling due
within one year
12
(675,541)
(674,063)
NET CURRENT ASSETS
1,047,113
TOTAL ASSETS LESS CURRENT LIABILITIES
5,534,485
CREDITORS: amounts falling due
after one year
13
(671,577)
PROVISIONS FOR LIABILITIES
AND CHARGES
14
(150,000)
NET ASSETS
4,712,908
£
FUNDS
Restricted funds
15
145,445
Unrestricted funds:
Designated funds
15
3,485,749
2,902,528
General fund
15
1,081,714
921,562
4,567,463
4,712,908
**£ **		 2020
£
3,328,418
602,680
3,931,098
1,399,012
5,330,110
(698,489)
(320,000)
4,311,621
_£ _
487,531
3,824,090
4,311,621
_£ _

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies. They were approved and authorised for issue by the Trustees on ………………………...14 September 2021

SARAH DAVIES, Chair

TIM MARVELL, Treasurer

The annexed notes form part of these financial statements

16

DEVELOPING HEALTH AND INDEPENDENCE

STATEMENT OF CASH FLOWS For the year ended 31 March 2021

Note
Cash flow from operating activities (see below)
Cash flow from investing activities
Purchase of fixed asset additions
Investment income received
Net cash used in investing activities
Cash flow from financing activities
Cash inflow from new borrowing
Repayments of borrowing
Interest paid
Net cash provided by / (used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents bought forward
Cash and cash equivalents carried forward
Surplus / (deficit) for the year
Depreciation charges
Net movement on investments
Interest payable
Interest receivable
Change in provision
Decrease / (increase) in debtors
Increase / (decrease) in creditors
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH		 2021
£
452,501
**£ **		 2020
£
943,936
_£ _
(593,074)
9,073		 (1,360,490)
16,395
(584,001)
£		 (1,344,095)
£
-
(26,538)
(22,781)		 495,942
(7,589)
(11,652)
(49,319)
£		 476,701
_£ _
(180,819)
1,669,136
1,488,317
**£ **		 76,542
1,592,594
1,669,136
_£ _
2021
£
401,287
140,182
(103,382)
22,781
(9,073)
(170,000)
169,228
1,478		 2020
£
438,496
80,890
40,207
11,652
(16,395)
167,320
(26,483)
248,249
452,501
**£ **		 943,936
_£ _

17

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

1. ACCOUNTING POLICIES

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year unless otherwise stated.

(a) General information and basis of preparation of financial statements

DHI is a charity limited by guarantee registered in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the reference and administrative information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are detailed within the Report of the Trustees.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their Financial Statements 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 United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

(b) Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Unrestricted designated funds have been set aside by the trustees out of unrestricted funds towards a specific purpose. Additional details can be found in note 15 to the Financial Statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in note 15 to the financial statements.

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

18

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Income from grants, contracts and service level agreements is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

Rental income is shown net of any associated expenditure in order to show more accurately rental income actually due to the charity in the year and is recognised when receivable.

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

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature.

Governance costs include those costs associated with meeting constitutional and statutory requirements of the charity and include the audit fees and costs linked with the strategic management of the charity.

Expenditure directly attributable to a specific activity category (e.g. charitable activities, governance costs) has been included in the relevant category. Where costs are attributable to more than one activity, they are apportioned across activities based on the time spent by staff on those activities and their use of shared resources.

19

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

(e) Support costs 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, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

(f) Tangible fixed assets

Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost of each asset on a straight line basis over its expected useful life, which is four years for all assets except for freehold property which is depreciated over 50 years. Assets costing over £1,000 are capitalised.

(g) Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in 'net gains / (losses) on investments' in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

(h) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(i) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs.

(j) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(k) Financial Instruments

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

(l) Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

20

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

(m) Pension schemes

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

The charity also participated in a multi-employer defined benefit pension scheme with the Pensions Trust, operated and administered by the Pensions Trust. It is not possible to separately identify the assets and liabilities relating to DHI on a consistent and reasonable basis therefore this is accounted for as a defined contribution scheme. The scheme was available to all permanent staff however contributions to the plan ceased as at 30 September 2013.

Deficit funding contributions are payable by the charity in respect of this multi-employer defined benefit scheme. No liability has been included within the Financial Statements in respect of the deficit reduction contributions payable, in line with the requirements of the SORP (FRS 102) on the basis that this liability is not deemed to be material to the Financial Statements. See note 18 to the Financial Statements for more details.

The charity makes contributions to the National Health Service Pension Scheme for participating employees. The NHS Scheme is a defined benefit scheme. As the scheme is a multi-employer scheme and the charity is unable to identify its share of the underlying assets and liabilities, this scheme is accounted for by the Charity as a defined contribution scheme. Any resulting liabilities on this scheme would be met by the State. Therefore contributions payable for the year in relation to the scheme are charged in the Statement of Financial Activities.

(n) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(o) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2. INCOME FROM DONATIONS

General donations Unrestricted
Funds
2021
£
19,429		 Designated
Funds
2021
£
-		 Restricted
Funds
2021
£
-		 Total
Funds
2021
£
19,429		 Total
Funds
2020
£
6,903

21

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

3. INCOME FROM CHARITABLE ACTIVITIES

a) Income for Treatment Services

Unrestricted
Funds
2021
£
Contracts / SLAs
5,627,078
Transfers to partners
(1,166,086)
Grants
124,335
Other Fees and Charg
73,601
Other income
19,225
4,678,153
**£ **		 Designated
Funds
2021
£
-
-
-
-
-
Nil
£		 Restricted
Funds
2021
£
-
-
51,118
-
51,118
**£ **		 Total
Total
Funds
Funds
2021
2020
£
£
5,627,078
4,478,775
(1,166,086)
(503,932)
175,453
336,750
73,601
135,000
19,225
17,289
4,729,271
£
4,463,882
_£ _

Restricted funds relate to income from the performance of grant obligations during the year from BBC Children in Need, St John’s Foundation, John James Bristol Foundation, Public Health England and a number of Church and Community Groups. Any grant remaining at 31 March 2021 has been treated as deferred income pending release when grant conditions are met.

b) Income for Community Services

Contracts / SLAs
Grants		 Unrestricted
Funds
2021
£
273,741
5,088
278,829
**£ **		 Designated
Funds
2021
£
-
-
Nil
£		 Restricted
Funds
2021
£
-
-
Nil
£		 Total
Total
Funds
Funds
2021
2020
£
£
273,741
112,514
5,088
520
278,829
£
113,034
_£ _

22

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

c) Income for Housing Projects

Capital grants
Contracts / SLAs
Transfers to partner
providers
Rental Income
Rental Voids
Transfer to landlord
Grants
Other Fees and
Charges		 Unrestricted
Funds
2021
£
14,592
627,418
(108,630)
55,076
(7,718)
(8,539)
11,341
10,678
594,218
**£ **		 Designated
Funds
2021
£
-
-
-
-
-
-
-
Nil
£		 Restricted
Funds
2021
£
-
-
-
-
-
-
-
-
Nil
£		 Total
Total
Funds
Funds
2021
2020
£
£
14,592
-
627,418
590,091
(108,630)
(108,300)
55,076
182,337
(7,718)
(17,389)
(8,539)
(14,923)
11,341
30,103
10,678
25,285
594,218
£
687,204
_£ _

d) Income for Home Turf Lettings

Rental Income
Transfer to landlord
Rental Voids
Capital grants
Grants
Other Fees and
Charges		 Unrestricted
Funds
2021
£
795,979
(407,018)
(18,547)
17,516
200
56,411
444,541
**£ **		 Designated
Funds
2021
£
-
-
-
-
-
-
Nil
£		 Restricted
Funds
2021
£
-
-
-
-
12,500
-
12,500
**£ **		 Total
Total
Funds
Funds
2021
2020
£
£
795,979
673,194
(407,018)
(449,176)
(18,547)
(4,096)
17,516
326,088
12,700
98,760
56,411
80,232
457,041
£
725,002
_£ _

Restricted funds relate to income from the performance of grant obligations during the year from Touchstone, Nationwide, Bristol City Council, The Nisbet Trust and Crisis. Any grant remaining at 31 March 2021 has been treated as deferred income pending release when grant conditions are met.

23

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

e) Income for Central Services

Grants
Release of
dilapidation provision
Other income		 Unrestricted
Funds
2021
£
-
170,000
68,594
238,594
**£ **		 Designated
Funds
2021
£
-
-
Nil
£		 Restricted
Funds
2021
£
40,161
40,161
**£ **		 Total
Total
Funds
Funds
2021
2020
£
£
-
683
170,000
-
108,755
33,284
278,755
£
33,967
_£ _

Restricted funds relate to income from the performance of grant obligations during the year from St John's Foundation. Any grant remaining at 31 March 2021 has been treated as deferred income pending release when grant conditions are met.

4.
NET INCOME / EXPENDITURE FOR THE YEAR
Net income / expenditure for the period includes
Depreciation
Fees payable to auditor
Audit and accountancy fee		 2021
£
140,182
17,820		 2020
£
80,890
20,192

5. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Provision of services
Advertising & publicity
Building refurbishment
Depreciation
Legal and financial
Bad debt write off
Support costs
Governance costs
Total 2020		 Treatment Communities
Services
Services
2021
2021
£
£
4,054,204
252,140
15,729
-
1,200
-
13,537
-
-
-
-
500
351,718
15,325
-
-
4,436,388
267,965
3,973,762
105,761		 Housing
2021
£
581,829
-
18,891
17,271
-
1,745
29,769
-
649,505
667,629		 Home Turf
Lettings
2021
£
361,275
44
46,725
29,697
2,449
16,912
29,290
-
486,392
418,097

24

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Central
2021
£
Provision of Services
(242,135)
Advertising & publicity
3,046
Building refurbishment
1,200
Depreciation
79,677
Legal and Financial
899
Bad debt write off
7,133
Support costs
348,863
Governance Costs
17,875
216,558
£
Total 2020
391,468
6.
GOVERNANCE COSTS
Audit and accountancy
Other governance costs (Annual Event)
7.
STAFF NUMBERS AND COSTS
Wages and salaries
Social security costs
Pension costs
Redundancy costs
Chief Executive Officer
Directors
Associate Directors
Service Managers
Administration, HR, Finance & IT
Team Leaders
Support Workers
The average weekly number of employees (head count), during
the period was:		 Total
2021
£
5,007,313
18,819
68,016
140,182
3,348
26,290
774,965
17,875
6,056,808
£
5,556,717
2021
£
17,820
55
17,875
£
2021
£
3,761,964
321,487
240,008
-
4,323,459
£
Number
1
3
1
10
13
15
117
160		 Total
2020
£
4,881,966
7,639
193,367
88,048
7,821
3,291
354,349
20,236
5,556,717
_£ _
2020
£
20,192
44
20,236
_£ _
2020
£
3,433,029
286,286
209,422
5,869
3,934,606
_£ _
Number
1
3
1
10
12
16
114
157

25

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Employees earning over £60,000
£80,001 - £90,000
£70,001 - £80,000
£60,001 - £70,000		 Number
1
-
-		 Number
1
-
-

8. TRUSTEES AND KEY MANAGEMENT PERSONNEL

During the year, none of the Trustees, who comprise the charity's key management personnel, received any remuneration, or received reimbursed expenditure (2020: Nil).

The key management personnel of the charity comprise the Trustees, Chief Executive Officer, Finance and Operations Director, Housing Director - Housing and Social Exclusion, Treatment Services Director and Associate Director. The total employee benefits of the key management personnel of the Charity were £343,052 (2020 : £272,573).

9. TANGIBLE FIXED ASSETS

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2020
At 31 March 2021		 Buildings
£
3,265,692
446,657
3,712,349
119,115
56,213
175,328
3,146,577
£
3,537,021
**£ **		 Furniture
£
50,848
15,769
66,617
43,202
3,665
46,867
7,646
£
19,750
**£ **		 IT, Comms
& Technology
£
272,488
130,648
403,136
98,293
80,304
178,597
174,195
£
224,539
**£ **		 Total
3,589,028
593,074
4,182,102
260,610
140,182
400,792
3,328,418
_£ _
3,781,310
**£ **

Included within buildings are two properties with a combined net book value of £95,472 (2020 : £95,399) which are held under a 999-year lease. These buildings are depreciated over 50 years on the basis that this is considered to be a more realistic estimate of the useful life of the assets.

26

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

10. FIXED ASSETS INVESTMENTS
Market value
At 1 April 2020
Additions
Disposals
Gains / (losses) on investments
At 31 March 2021		 2021
2020
£
£
602,680
642,887
54,933
65,491
(43,030)
(54,524)
91,479
(51,174)
706,062
£
602,680
_£ _

Additions and disposals contain movements between funds within the portfolio.

11.
**12. **		 DEBTORS
Due within one year
Trade debtors
Rental debtors
Sundry debtors
Prepayments and accrued income
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Credit cards
Bank loans due within 1 year
Social security and other taxes
Other creditors
Accruals
Deferred income
Deferred income (contracts and service level agreements)
Balance at 1 April 2020
Amount released to incoming resources
Amount deferred in the year
Balance at 31 March 2021		 2021
£
74,462
26,762
5,446
127,667
234,337
£
2021
£
110,724
16,016
27,094
79,728
70,431
179,643
191,905
675,541
£
265,023
(265,023)
191,905
191,905
**£ **		 2020
£
149,958
91,849
27,678
134,454
403,939
_£ _
2020
£
92,962
8,942
26,538
66,967
98,624
115,007
265,023
674,063
_£ _
207,416
(207,416)
265,023
265,023
_£ _

Deferred income included the following grants with performance obligations in future periods.

27

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

St John's Hospital - RSVP Programme
BBC Children In Need Grant
Building Better Opportunities Grant
National Lottery Community Fund
Bath Abbey
Nationwide		 2021
£
3,230
2,655
34,095
-
-
20,000
59,980
**£ **		 2020
£
25,481
2,638
56,956
10,000
5,000
25,000
125,075
_£ _

The remaining deferred income balance relates to contract income received for services not yet delivered.

**13. ** CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR 2021 2020
£ £
Bank loans **£ ** 671,577 _£ _ 698,489

The bank loan taken out prior to the year ended 31 March 2021 is repayable over 25 years and interest is charged at base rate plus 2.5% (with a minimum rate of 3%). The loan is secured on the freehold property at Poyntz Road in Bristol, Abbotswood in Yate and Sedgemoor Road in Bath. The bank loan taken out in the year ended March 2020 is repayable over 25 years and interest is fixed at 3% for 10 years. The loan is secured on the freehold property at St James's Parade in Bath.

The loan is repayable as follows:
Within one year or on demand
Between one and two years
Between two and five years
After five years
14. PROVISIONS FOR LIABILITIES AND CHARGES
Property dilapidations
At 1 April 2020
(Released) / added during the year
At 31 March 2021		 2021
£
27,094
27,969
89,448
554,160
698,671
£
2021
£
320,000
(170,000)
150,000
**£ **		 2020
£
26,538
26,020
81,954
590,515
725,027
_£ _
2020
£
152,680
167,320
320,000
_£ _

28

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

15. STATEMENT OF FUNDS
Brought
Forward
£
DESIGNATED FUNDS
Housing Sinking
Fund
46,113
HTL Sinking Fund
28,560
2 Bridges Trust Fund
11,475
Strategic
Development
35,630
Hybrid Project
Manager
-
Burlington Street
contingency
88,000
Infrastructure
Sustainability
360,000
Designated Funds -
Properties
- Burlington Street
854,498
- Oak House
423,483
- Peter's House
156,524
- 19 Abbotswood
26,499
- Poyntz Road
55,737
- Sedgemoor
212,097
- St James's Parade
235,186
- Hawthorn
267,234
- Newton Street
72,926
- Under construction
28,566
2,902,528
**£ **		 Incoming
Resources
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Nil
£		 Resources
Expended
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Nil
£		 Transfers and
investment
Carried
gains/(losses)
Forward
£
£
6,498
52,611
-
28,560
(737)
10,738
(35,630)
-
30,000
30,000
88,000
77,490
437,490
(9,972)
844,526
(7,958)
415,525
(4,181)
152,343
315
26,814
(396)
55,341
26,513
238,610
425,122
660,308
13,854
281,088
(229)
72,697
62,532
91,098
583,221
£
3,485,749
**£ **

The Housing Sinking Fund represents funds retained for repairs and renewals at DHI's Supported Housing Hostels.

The HTL Sinking Fund represents retained funds for repairs and renewals at HTL properties.

The 2 Bridges Trust Fund is to provide access to employment, education and training for DHI clients.

The Strategic Development Fund is to support the organisation in strategy implementation as set out in the Balanced Score Card.

The Hybrid Project Manager fund is to cover the development and implementation of hybrid working following the impact of the COVID-19 pandemic.

The Burlington Street Contingency Fund was created to support the operation of DHI's work at the project recognising the possibilities of future funding restrictions.

29

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

The HTL property fund were funds set aside by the Board for the purchase of properties for Home Turf Lettings. This has been used to purchase a property at Sedgemoor Road in Bath.

The Infrastructure Sustainability fund is to safeguard the charity against zero-inflation contract income spent against cost of living rises in overheads.

Designated Funds - Properties are the asset value of properties owned by DHI, separately shown from General Funds. The amounts include the net book value of properties purchased by the charity, less any long term finance used to purchase them as well as unspent cash reserves allocated towards expected renovations or purchase costs.

30

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

RESTRICTED FUNDS
Brought
Forward
£
Treatment Services
John James grant
25,886
St James's Parade
Appeal
2,622
South
Gloucestershire MAF
grant
1,000
Public Health
England grant - St
James's Parade
248,500
Housing Projects
Housing First
-
Capital grants
58,101
Home Turf Lettings
Capital Grant -
Hawthorn
70,400
The Nisbet Trust
12,500
HTL Empty Homes
Fund (Cash)
47,262
HTL Empty Homes
Fund (Loans)
7,104
Central Services
Fibroscanner appeal
-
YP Serious Violence
-
St John's Foundation
grant
14,156
487,531
**£ **		 Incoming
Resources
£
-
16,488
-
-
34,630
-
-
12,500
-
-
11,800
28,361
-
103,779
**£ **		 Resources
Expended
£
-
(2,622)
(1,000)
-
-
-
-
(12,500)
-
-
-
(14,950)
(14,156)
(45,228)
£		 Transfers and
investment
Carried
gains/(losses)
Forward
£
£
(25,886)
-
-
16,488
-
-
(248,500)
-
-
34,630
(58,101)
-
(70,400)
-
-
12,500
2,250
49,512
-
7,104
-
11,800
-
13,411
-
-
(400,637)
£
145,445
**£ **

Treatment Services

The John James grant represents funds for the Charity to upgrade 1-1 and Group rooms in our Central Bristol location.

The Public Health England grant represents a grant for the refurbishment of the new treatment centre in BANES.

The St James's Parade Appeal represents fundraising for the renovation of the new treatment centre in BANES.

31

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Grant awarded by South Gloucestershire Council Member Awarded Funding for DHI to carry out Connecting Kingswood Health and Wellbeing project.

Housing Projects

The Housing First project relates to donations used to enable clients to move into accommodation with necessary items such as furniture. Capital Grants from Public Health England (PHE) were received for the purchase of Burlington Street and Oak House and are now fully spent.

Home Turf Lettings

The Nisbet Trust funds represent a grant for the funding of a Home Turf Lettings Procurement officer.

Hawthorn is an operational property that was acquired during the year and is now fully operational and occupied. The restricted funding was towards its capital development.

The HTL Empty Homes Fund (Cash) is a cash reserve available to make loans to landlords to enable properties in disrepair to be refurbished and rented out through DHI's Social Enterprise: Home Turf Lettings.

Central Services

The Fibroscanner appeal was set up to raise funds for a client scanner and all donations are being held until it's purchase.

YP Serious Violence is a fund that can only be used for specific purposes such as preventive crime with Young People and towards dedicated youth work.

The St John's Foundation grant represents a grant for the upgrade of critical IT infrastructure and hardware.

Brought
Forward
£
SUMMARY OF FUNDS
Designated Funds
2,902,528
General Funds
921,562
3,824,090
Restricted Funds
487,531
4,311,621
**£ **		 Incoming
Resources
£
-
6,262,837
6,262,837
103,779
6,366,616
**£ **		 Resources
Expended
£
-
(6,011,580)
(6,011,580)
(45,228)
(6,056,808)
£		 Transfers and
investment
Carried
gains/(losses)
Forward
£
£
583,221
3,485,749
(91,105)
1,081,714
492,116
4,567,463
(400,637)
145,445
91,479
£
4,712,908
**£ **

32

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Fixed asset investments
Net current assets
Creditors due in more than one year
Provision for liabilities and charges		 Unrestricted Funds
Designated
General
Funds
Funds
£
£
3,537,021
244,289
-
706,062
620,305
281,363
(671,577)
-
-
(150,000)
3,485,749
£
1,081,714
**£ **		 Restricted
Total
Funds
Funds
£
£
-
3,781,310
-
706,062
145,445
1,047,113
-
(671,577)
-
(150,000)
145,445
£
4,712,908
**£ **

17. LEASE COMMITMENTS

The charity has financial commitments in respect of operating leases of land and buildings. The total future minimum lease payments under non-cancellable operating leases are as follows:

Land and Buildings
Not later than one year
Later than one and not later than 5 years
Later than five years		 2021
£
567,925
1,509,257
-
2,077,182
**£ **		 2020
£
555,523
1,201,820
-
1,757,343
_£ _

Included in the total lease commitments above is £1,717,098 (2020: £1,267,421) relating to the maximum rents that the charity may have to pay on behalf of the tenants. Our experience is that voids are only 5% of total rental income and that the actual liability over the period may be closer to £40,000.

18. PENSION COMMITMENTS

SCHEME: The Pensions Trust – The Growth Plan Series 1 – 3

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

33

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

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

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

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit Contributions

From 1 April 2019 to 31 January 2025: £11.2m per annum (payable monthly and increasing by 3% each on 1st April)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit Contributions

From 1 April 2016 to 30 September 2025: £12.9m per annum (payable monthly and increasing by 3% each on 1st April) From 1 April 2016 to 30 September 2028: £54,560 per annum (payable monthly and increasing by 3% each on 1st April)

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

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

34

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Present value of provision 2021
£
1,448
**£ **		 2020
£
1,715
_£ _		 2019
£
2,081
_£ _

On the basis that this provision is not material to the Financial Statements, the charity has taken the decision not to include such a provision.

If the provision had been included the accounting entries would have been as follows:

Provision at start of the period
Unwinding of the discount factor
Deficit contribution paid
Remeasurements - impact on any changes in assumptions
Remeasurements - amendments to the contribution schedule
Provision at the end of period
Interest expense
Remeasurements - impact on any changes in assumptions
Remeasurements - amendments to the contribution schedule
Costs recognised in income and expenditure account
2021
% per annum
Rate of discount
0.66
Assumptions
Income and expenditure impact		 2021
£
1,715
39
(356)
50
-
1,448
£
39
50
-
89
£
2020
% per annum
2.53		 2020
£
2,081
26
(345)
(47)
-
1,715
_£ _
26
(47)
-
(21)
£
2019
% per annum
1.39

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

SCHEME: The Pensions Trust's Growth Plan Series 4.

From 1 October 2013 all contributions made into the Plan were into Series 4, which is a defined contribution pension plan.

35

DEVELOPING HEALTH AND INDEPENDENCE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

SCHEME: NHS Pension Schemes

Two employees are covered by the provisions of NHS Pension Schemes. Details of the benefits payable and rules of the NHS Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in these schemes is taken as equal to the contributions payable to that scheme for the accounting period.

19. RELATED PARTIES

£34,564 before deferral (2020 - £58,474) was received in grants from St John's Foundation in this financial year, a charity in which the trustee (Chair) Ms Sarah Davies is a Trustee.

The transactions with the above organisations were all on an arms-length basis and no amounts were due to these organisations at the year-end date (2020 - £Nil).

20. CONTROLLING PARTY

The Trustees consider that the charity is jointly controlled by the Trustees and that there is no ultimate controlling party.

21. FINANCIAL COMMITMENTS

Contractual commitments for the acquisition of tangible fixed assets contracted for but not provided in the financial statements amounted to £nil (2020: £70,000).

22. FINANCIAL INSTRUMENTS

The carrying amounts of the charity's financial instruments are as follows:

2021 2020
£ £
Financial assets
Measured at fair value through net income:
- Fixed asset investments (note 10) 706,062 602,680
Debt instruments measured at amortised cost:
- Trade debtors (note 11) 74,462 149,958
Financial liabilities
Measured at amortised cost:
- Bank loans (notes 12 and 13) 698,671 725,027
- Trade creditors (note 12) 110,724 92,962

36

DEVELOPING HEALTH AND INDEPENDENCE (company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (including income & expenditure account) For the year ended 31 March 2020

Unrestricted
Funds
Note
2020
£
INCOMING RESOURCES
2
6,903
3
Treatment Services
4,206,874
Community Services
113,034
Housing Projects
687,204
Home Turf Lettings
398,914
Central Services
19,811
16,395
5,449,135
RESOURCES EXPENDED
Charitable activities
5
Treatment Services
3,973,762
Community Services
105,761
Housing Projects
667,629
Home Turf Lettings
418,097
Central Services
391,468
5,556,717
10
(51,174)
(158,756)
Transfers between funds
(516,715)
(675,471)
RECONCILIATION OF FUNDS:
15
1,597,033
921,562
£
Donations
Charitable activities
Investment income
TOTAL INCOMING
RESOURCES
TOTAL RESOURCES
EXPENDED
Net gains/(losses) on
investments
NET INCOME /
(EXPENDITURE)
NET MOVEMENT
IN FUNDS
TOTAL FUNDS
BROUGHT FORWARD
TOTAL FUNDS
CARRIED FORWARD		 Designated
Funds
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
772,403
772,403
2,130,125
2,902,528
**£ **		 Restricted
Funds
2020
£
-
257,008
-
-
326,088
14,156
-
597,252
-
-
-
-
-
-
-
597,252
(255,688)
341,564
145,967
487,531
**£ **		 Total
Funds
2020
£
6,903
4,463,882
113,034
687,204
725,002
33,967
16,395
6,046,387
3,973,762
105,761
667,629
418,097
391,468
5,556,717
(51,174)
438,496
-
438,496
3,873,125
4,311,621
**£ **

The annexed notes form part of these financial statements

37

DEVELOPING HEALTH AND INDEPENDENCE

FUNDS ANALYSIS For the year ended 31 March 2020

STATEMENT OF FUNDS
Brought
Forward
£
DESIGNATED FUNDS
Housing Sinking Fund
39,635
HTL Sinking Fund
18,833
2 Bridges Trust Fund
11,475
Strategic Development
55,000
Burlington Street
contingency
88,000
Infrastructure
Sustainability
260,000
Designated Funds -
Properties
- Burlington Street
870,174
- Oak House
391,699
- Peter's House
154,063
- 19 Abbotswood
26,913
- Poyntz Road
54,565
- Sedgemoor
159,768
- St James's Parade
-
- Hawthorn
- Newton Street
- Under construction
2,130,125
**£ **		 Incoming
Resources
£
-
-
-
-
-
-
-
-
-
-
-
-
Nil
£		 Transfers and
Resources
investment
Carried
Expended gains/(losses)
Forward
£
£
£
-
6,478
46,113
-
9,727
28,560
-
-
11,475
-
(19,370)
35,630
-
-
88,000
-
100,000
360,000
-
(15,676)
854,498
-
31,784
423,483
-
2,461
156,524
-
(414)
26,499
-
1,172
55,737
-
52,329
212,097
235,186
235,186
267,234
267,234
72,926
72,926
28,566
28,566
Nil
£
772,403
£
2,902,528
**£ **

38

DEVELOPING HEALTH AND INDEPENDENCE

FUNDS ANALYSIS

For the year ended 31 March 2020

RESTRICTED FUNDS
Treatment Services
John James grant
St James's Parade
Appeal
South Gloucestershire
MAF grant
Public Health England
grant - St James's
Parade
Capital grants
Capital Grant -
Hawthorn
Capital Grant - Newton
Capital Grant - 59
Sedgemoor Roah
The Nisbet Trust
HTL Empty Homes
Fund (Cash)
HTL Empty Homes
Fund (Loans)
Central Services
St John's Foundation
grant		 Brought
Forward
£
20,000
1,000
58,101
12,500
53,361
1,005
-
145,967
**£ **		 Incoming
Resources
£
5,886
2,622
-
248,500
-
250,000
42,000
34,088
-
-
-
14,156
597,252
**£ **		 Transfers and
Resources
investment
Carried
Expended gains/(losses)
Forward
£
£
£
-
-
25,886
-
-
2,622
-
-
1,000
-
-
248,500
-
-
58,101
-
(179,600)
70,400
-
(42,000)
-
(34,088)
-
-
-
12,500
-
(6,099)
47,262
-
6,099
7,104
-
-
14,156
Nil
£
(255,688)
£
487,531
**£ **

39