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2021-03-31-accounts

Annual Report & Accounts 31[st] March 2021

Providing services that help disabled and older people with care and support needs to remain living in their own home, in the way they choose

Company Registration No: 04624968 Registered Charity No: 1099020

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 31 MARCH 2021

Trustees Angela Higham (Chair)
Tom Misselbrook
Margaret O’Neill
John Rogers
David Hughes
Shirley Mackay
Julie Thornby (Appointed 1 October 2020)
Company Secretary Euan McPherson
Chief Executive Euan McPherson
Charity number 1099020
Company number 04624968
Registered Office 1 Owen Way
Leominster Enterprise Park
Leominster
Herefordshire
HR6 0LA
Auditors Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
Bankers Unity Trust Bank PLC
Nine Brindleyplace
Birmingham
B1 2HB

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) CONTENTS

FOR THE YEAR ENDED 31 MARCH 2021

Page
Chair’s Welcome 1
Chief Executive’s Summary 2
A year in the life of SIL service users, staff and Trustees 3 -9
Trustees’ report 10 -14
Statement of Trustees ‘responsibilities 15
Independent auditors’ report 16 - 18
Statement of financial activities 19 - 20
Balance sheet 21 – 22
Statement of cashflows 23
Notes to the accounts 24 - 37

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) CHAIR’S WELCOME

FOR THE YEAR ENDED 31 MARCH 2021

Chair’s Welcome

I am delighted to provide this introduction to the Services for Independent Living 2020 / 2021 report.

This, my first full year as Chair of SIL Trustees, has been a period none of us will forget with restrictions brought about by Covid impacting us all. Things changed notably in all of our lives affecting how we worked, our home lives, how we thought about and valued people and professions. These changes influenced all aspects of SIL’s activities and I am incredibly proud of all our teams for how well they have risen to the huge challenge of Covid.

Whilst Covid brought with it many difficulties, there were positives arising from our experiences in managing and working within its constraints. I believe it is becoming clearer to the general public and to those who govern that care staff are critical to allowing older and disabled people to be independent, to continue living in their own home and critically, through their professional approach, keeping those who use their services, out of hospital. Those working in the care sector are as vital a part of our health service as the NHS and need to be recognised as a profession and more justly rewarded for their work. We look forward to the Government’s promised social care reforms which we hope will address some wider, longstanding issues affecting how well social care can be provided.

At SIL our ethos in recognizing our staff as much as we can afford with financial reward, sick pay, training, development and modern and effective professional tools has had great pay back during this difficult year. Our staff were phenomenal during this crisis. They have done the hours and much more, with compassion and cheerfulness in these exceptionally trying times as demonstrated by the success stories and pictures in this report.

Our Management Team has been just that - a team that manages - right across the organisation. I am proud that the team did not stand still during this crisis but continued to develop the existing business and to consider other development opportunities. All whilst ensuring continuous supplies of PPE, keeping up to date with developments and financing impacted by Covid, introducing new methods of operation including managing working from home and continuing to consolidate.

Last year SIL invested in facilities and equipment. This year we concentrated on digital transformation with the introduction of new software to manage our data to ensure we increase our efficiency and quality of service. We recognise that technology is vital to dealing with upcoming challenges such as recruitment and resource difficulties. It will allow our care staff to concentrate on improving care plans with our service users and their families rather than coping with administration. Introducing these new systems and processes would have been arduous enough without Covid but SIL staff and management team did, and continue to do, just that.

So whilst it has been a difficult year it has been a successful year financially and in terms of business consolidation but above all it has been a year where we have bonded further together as an organisation - staff with their service users, team leaders and managers; the Management Team and the Trustees. I would like to end my welcome with an acknowledgement to my fellow Trustees – each brings to SIL specialist skills and differing personalities and life experiences. Thank you for your support and contribution

Angela Higham – Chair

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) CHIEF EXECUTIVE’S SUMMARY (continued)

FOR THE YEAR ENDED 31 MARCH 2020

Chief Executive’s Summary

April 2020 – March 2021 was the year that truly tested SIL’s resilience to the full and did not find us wanting.

The pandemic which closed our offices in March 2020, has probably been the biggest ever challenge to face social care and many sound organisations have closed because of the impact that Covid has had on service delivery.

Despite Covid severely affecting our Homecare Service in the winter of 2020-21, the organisation continued to provide effective care ensuring the mental and physical wellbeing of those supported by us. Other challenges our staff faced were concerns over PPE shortages, increased infection prevention and control measures, lockdowns, being pinged by track & trace and of course homeworking for all our office staff.

Naturally while managing these new difficulties, our staff still had to contend with other external pressures. We had floods early in the financial year which made accessing some service users’ homes problematic and were thankful that we had had the foresight to purchase a 4-wheel drive vehicle for use by those having to reach affected areas.

However, SIL’s staff rose to the challenge and thanks to methodical planning and forensic delivery of the services, our recent Service User Surveys and feedback across the organisation have shown that our service users felt they received the same level of care, compassion and attention to detail to which they have become accustomed.

At SIL we have always said our biggest asset is our staff and I can say without hesitation that right across the organisation this has proven yet again to be the case.

From our business support staff who went to the office daily to pick up telephone calls, email messages and post, arrange Zoom meetings and keep the office Covid-safe; and our support workers who daily put their own health and wellbeing on the line, yet still did their work without complaint, picking up additional shifts when required; from our office staff who created new ways of working, introduced new systems virtually overnight while still supporting their colleagues, front line workers and service users; and our senior managers who worked tirelessly in unchartered territory, ensuring business continuity and resilience; through to our dedicated board of trustees who have supported the organisation with insight and compassion, yet still maintained the drive for growth and development; each and every member of staff played their part in ensuring SIL adhered to its values and ethos and supported those who needed our help this year, more than ever.

And yet, in amongst the national turmoil, SIL continued to look for new opportunities for growth and development, some of which will be coming to fruition in the current financial year. We have maintained a strong financial position and continue to reward our employees with competitive staff benefits and pay, which lead to lower staff turnover, lower sickness rates and skilled staff. Recruitment was strong and we were able to increase our staffing by 20% during this financial year.

We are continuing to work flexibly, and homeworking will become a choice to existing and new staff joining SIL. Yet, remote working does not infer an indifference to our service users and colleagues. We will be there for everyone who uses our services and whether we are in the office or at our homes; in a meeting or a service users house, SIL will continue to be the provider of choice and the employer of choice in Herefordshire.

Euan McPherson – Chief Executive

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) A YEAR IN THE LIFE OF SIL SERVICE USERS, STAFF AND TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2021

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE)

A YEAR IN THE LIFE OF SIL SERVICE USERS, STAFF AND TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2021

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) A YEAR IN THE LIFE OF SIL SERVICE USERS, STAFF AND TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2021

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) A YEAR IN THE LIFE OF SIL SERVICE USERS, STAFF AND TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2021

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) A YEAR IN THE LIFE OF SIL SERVICE USERS, STAFF AND TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2021

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) A YEAR IN THE LIFE OF SIL SERVICE USERS, STAFF AND TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2021

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) A YEAR IN THE LIFE OF SIL SERVICE USERS, STAFF AND TRUSTEES (continued)

FOR THE YEAR ENDED 31 MARCH 2021

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

1. Introduction

The Trustees present their report and accounts for the year ended 31 March 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”.

2. Structure, Governance & Management

2.1 Constitution

The charity is also a Company Limited by Guarantee and is therefore governed by Articles of Association. It was incorporated on 24 December 2002. Registered charity status was obtained on 15 August 2003. SIL works with all disabled and older people who can benefit from our services.

2.2 Our Charitable Objects

To relieve disabled people and their family carers through the provision and promotion of services which foster independent living and improve their conditions of life, and which assist disabled people and their family carers to actively participate in and integrate into society.

Our Vision (the change we would like to see)

To enable people affected by disabilities to exercise choice and control, to live independent lives, and to actively participate in society.

SIL’s Mission

The provider of choice for individual care and support, empowering people to lead an independent life.

SIL’s Guiding Principles:

2.3 Public Benefit

Trustees have carefully considered the public benefit duty and are satisfied that the organisation meets this requirement. All our activity is directed towards the benefit of disabled people and family carers with the aim of fostering equality through the provision of services and information.

2.4 Services provided in pursuit of public benefit:

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (continued)

FOR THE YEAR ENDED 31 MARCH 2021

2.5 Achievement of objectives 2020/21

SIL supported approximately 300 people throughout Herefordshire in 2020/21 through the services outlined above. The people who use SIL’s services include people with physical disabilities, learning disabilities, mental health, Acquired Brain Injuries and carers.

2.6 Governance

Consistent with our vision SIL is a service user led/ controlled organisation, having at least 50% disabled trustees, or family carers. A register of interest is maintained and declarations of potential conflicts of interests are a standing agenda item at monthly Board meetings. The Trustees also operate the following committees which report to the Board; Finance and Service Performance. Committee membership is determined by the skills and experience of individual Trustees.

2.7 Recruitment of Trustees

SIL uses various channels to attract and identify Trustees with the skills and knowledge to effectively direct the affairs of the charity, including external adverts.

Prospective Trustees complete an application form and a declaration of eligibility and have an interview with the Chair and Chief Executive. They are invited to attend three Board meetings, where they have speaking, but not voting, rights and are supplied with a role description / person specification / ‘The Essential Trustee’ guide. Post Board approval they sign a Contract / Code of conduct and Register of Interests. Access needs are determined in order to provide appropriate support and equipment. A comprehensive induction is provided.

In 2020/21 we were extremely grateful for the way our Trustees supported the Executive team during the pandemic adapting quickly to new ways of working and providing excellent attendance at all our meetings.

2.8 Evaluation of Board Performance

SIL has two standing committees (Service Performance and Finance) and a Board meeting on a monthly basis. In addition, a Remuneration Committee was set up and met three times to review staff pay and conditions and agree 2021/2022 pay increases.

All trustees have attended at least the minimum number of Board meetings

Quality & Impact

CQC Rating – Good Disability Confident Leader Employer ACAS Model Workplace

Also see section the preceding pages, a year in the life of SIL service users (SU), staff and Trustees.

2.9 Memberships

SIL is a member of the following organisations and Alliances

SIL is a signatory to the Social Care Commitment; a promise to provide high quality social care services.

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (continued)

FOR THE YEAR ENDED 31 MARCH 2021

2.10 Annual Risk Assessment

In a year where our risks have been exposed and tested to the maximum the organisation has responded in a focused and efficient manner continuing to deliver our services to all our users. An assessment of our performance against our major risks is shown in the table below.

Risk Category Specific Risk Increase/(Decrease) in
Year Scale 1-5
Human Resources Staff Retention 0
Staff Recruitment 4
Training and Development -2
Business Resilience Management response -3
Staff Response -4
Disaster Recovery -2
Competitiveness Reputation -2
Efficiency -3
Assistive Technology 2
Development Strategic Direction 1
Opportunities explored -1
Software enhancements -1
Growth of existing services -2

2.11 Organisational Structure

SIL promotes the employment of disabled people in line with our guiding principle, ‘Using the skills of disabled people’, and guarantees a job interview to disabled candidates meeting the essential criteria. Approximately 25% of staff are either disabled or have substantial caring responsibilities; our target is to achieve 30%. SIL holds the Disability Confident Leader’ award.

Staff are based at Head Office in Leominster. The Trustees delegate the day-to-day management ultimately to the Chief Executive, who heads a senior management team comprising Heads of Service, HR Manager and Finance Manager who report to the Board monthly. The remuneration of key management personnel is set by the Board of Trustees.

At 31 March 2021 SIL employed a headcount total of 104 staff 94 of whom were providing services and 10 support staff.

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (continued)

FOR THE YEAR ENDED 31 MARCH 2021

SIL Organogram

SERVICES FOR INDEPENDENT LIVING (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (continued)

FOR THE YEAR ENDED 31 MARCH 2021

3. Achievements and Successes in 2020/21

Listed below are some of our organisational successes. Examples of individual success stories can be found in the section - A year in the life of a SIL Service user, staff and trustees

4. Financial Review

The charity has achieved a surplus of £78,611 (2020 £79,548) this year. Total income has increased by £434,070 in comparison to last year, which was mainly as a result of the full year impact of our Homecare service acquisition

Reserves policy

The total funds held by the charity at the year-end amounted to £1,039,791 (2020 £961,180), this included restricted funds of £9,418 (2020 £9,418).

Free reserves which include the amount of unrestricted funds at the year excluding tangible fixed assets amounted to £614,355 (2020 £514,914).

The Trustees have decided that the unrestricted funds which have not been designated for a specific use together with the value of the head office building should be maintained at a level of the total cost of closure. The Trustees consider that this is a responsible way to maintain reserves and this level of reserves has been maintained throughout the year.

5. Plans and Priorities 2021-22

Our strategy for 2021/22 is to:

Each service has a set of targets related to the strategy which are reported in monthly management reports to the board.

6. Disclosure of information to auditors

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

J Rogers Trustee Dated 23 September 2021

SERVICES FOR INDEPENDENT LIVING

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors of Services for Independent Living for the purpose 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

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

SERVICES FOR INDEPENDENT LIVING

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF SERVICES FOR INDEPENDENT LIVING

Opinion

We have audited the financial statements of Services for Independent Living (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.

SERVICES FOR INDEPENDENT LIVING

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SERVICES FOR INDEPENDENT LIVING

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose 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. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

Extent to which the audit was considered capable of detecting irregularities including fraud

SERVICES FOR INDEPENDENT LIVING

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SERVICES FOR INDEPENDENT LIVING

Audit response to risks identified

It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Morley ACA (Senior Statutory Auditor) for and on behalf of Kendall Wadley LLP

23 September 2021

Chartered Accountants Statutory Auditor

Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS

Kendall Wadley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

SERVICES FOR INDEPENDENT LIVING

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Current financial year
Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
36,681
17,606
Charitable activities
4
2,245,389
-
Investments
5
2,159
-
Total income
2,284,229
17,606
Expenditure on:
Charitable activities
Torfaen DPSS
6
-
-
ILH
6
1,590,751
-
Infection Control
6
-
17,606
Homecare
6
478,145
-
Hereford DPSS
6
136,722
-
Total charitable expenditure
2,205,618
17,606
Net incoming resources before transfers
78,611
-
Gross transfers between funds
10
-
-
Net income for the year/
Net movement in funds
78,611
-
Fund balances at 1 April 2020
951,762
9,418
Fund balances at 31 March 2021
1,030,373
9,418		 Total
2021
£
54,287
2,245,389
2,159
2,301,835
-
1,590,751
17,606
478,145
136,722
2,223,224
78,611
-
78,611
961,180
1,039,791		 Total
2020
£
328
1,864,475
2,962
1,867,765
2,541
1,414,236
-
223,340
148,100
1,788,217
79,548
-
79,548
881,632
961,180

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

SERVICES FOR INDEPENDENT LIVING

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year
Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
328
-
Charitable activities
4
1,864,475
-
Investments
5
2,962
-
Total income
1,867,765
-
Expenditure on:
Charitable activities
Torfaen DPSS
6
-
2,541
ILH
6
1,414,236
-
Homecare
6
223,340
-
Hereford DPSS
6
148,100
-
Total charitable expenditure
1,785,676
2,541
Net incoming resources before transfers
82,089
(2,541)
Gross transfers between funds
10
(2,541)
2,541
Net income for the year/
Net movement in funds
79,548
-
Fund balances at 1 April 2019
872,214
9,418
Fund balances at 31 March 2020
951,762
9,418		 Total
2020
£
328
1,864,475
2,962
1,867,765
2,541
1,414,236
223,340
148,100
1,788,217
79,548
-
79,548
881,632
961,180

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

SERVICES FOR INDEPENDENT LIVING

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Goodwill
11
Tangible assets
12
Current assets
Debtors
13
Investments
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
17
Unrestricted funds		 2021
£
£
15,104
400,914
416,018
183,873
342,069
256,487
782,429
(158,656)
623,773
1,039,791
9,418
1,030,373
1,039,791		 2020
£
£
21,354
415,494
436,848
217,634
85,824
397,492
700,950
(176,618)
524,332
961,180
9,418
951,762
961,180

SERVICES FOR INDEPENDENT LIVING

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021, although an audit has been carried out under section 144 of the Charities Act 2011. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements under the requirements of the Companies Act 2006.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved by the Trustees on 23 September 2021

J Rogers A Higham
Treasurer Chair

Company Registration No. 04624968

SERVICES FOR INDEPENDENT LIVING

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 20 130,752 132,916
Investing activities
Purchase of intangible assets - (25,000)
Purchase of tangible fixed assets (17,671) (169,928)
Short term investments (256,245) (824)
Interest received 2,159 2,962
Net cash used in investing activities (271,757) (192,790)
Net cash used in financing activities - -
Net decrease in cash and cash equivalents (141,005) (59,874)
Cash and cash equivalents at beginning of year 397,492 457,366
Cash and cash equivalents at end of year 256,487 397,492

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Company information

Services for Independent Living is a private company limited by guarantee and was registered in England and Wales. The registered office is 1 Owen Way, Leominster Enterprise Park, Leominster, Herefordshire, HR6 0LA.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Voluntary income is recognised as incoming resources when receivable, except insofar as they are incapable of financial measurement.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of VAT.

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered.

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

Creditors represent the amount the charity anticipates it will pay to settle a debt or a provision for goods and services it has received not yet invoiced, measured at settlement amount.

1.6 Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill shall be considered to have a finite useful life, and shall be amortised on a systematic basis over its life of 4 years,

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% on cost for buildings, no depreciation on land Fixtures, fittings & equipment 25% and 33% on cost Motor vehicles 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less .

Cash deposits where maturity exceeds three months are treated as short term investments and carried in current assets.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
-
-
Grants income
36,681
17,606
36,681
17,606
Grants receivable for core activities
Herefordshire Council - Infection control
-
17,606
Coronavirus government grants receivable
10,000
-
Coronavirus job retention scheme
26,681
-
36,681
17,606		 TotalUnrestricted
funds
2021
2020
£
£
-
328
54,287
-
54,287
328
17,606
-
10,000
-
26,681
-
54,287
-

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Charitable activities income
Analysis by fund
Unrestricted funds
For the year ended 31 March 2020
Unrestricted funds
Investments
Interest receivable		 IL H
£
1,667,925
1,667,925
1,667,925
1,491,249
1,491,249		 Homecare Hereford DPSS
Total
2021
Total
2020
£
£
£
£
412,995
164,469
2,245,389
1,864,475
412,995
164,469
2,245,389
412,995
164,469
2,245,389
208,179
165,047
1,864,475
208,179
165,047
1,864,475
UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
2,159
2,962

5 Investments

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

6 Charitable activities

Torfaen DPSS
£
Staff costs
-
Depreciation and impairment
-
Travel expenses
-
Training expenses
-
Telephone
-
Print, postage and stationery
-
Resources
-
Consumables and other
-
-
Share of support costs (see note 7)
-
Share of governance costs (see note 7)
-
-		 ILH
£
1,297,974
-
3,947
27
9,066
4,000
382
18,780
1,334,176
252,515
4,060
1,590,751		 Infection
Control
£
16,602
-
-
252
-
-
752
-
17,606
-
-
17,606		 Homecare Hereford DPSS
£
£
351,628
108,987
6,854
8
34,215
71
428
165
3,884
-
1,314
-
-
851
9,046
4,746
407,369
114,828
69,654
21,547
1,122
347
478,145
136,722		 Total
2021
£
1,775,191
6,862
38,233
872
12,950
5,314
1,985
32,572
1,873,979
343,717
5,529
2,223,224		 Total
2020
£
1,444,864
4,048
21,027
6,017
5,808
4,010
5,411
26,733
1,517,918
263,212
7,087
1,788,217

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

6 Charitable activities

Charitable activities
Torfaen DPSS
Analysis by fund
Unrestricted funds
-
Restricted funds
-
-
For the year ended 31 March 2020
Unrestricted funds
-
Restricted funds
2,541
2,541		 ILH
1,590,751
-
1,590,751
1,414,236
-
1,414,236		 Infection
Control
-
17,606
17,606
-
-
-		 Homecare Hereford DPSS
478,145
136,722
-
-
478,145
136,722
223,340
148,100
-
-
223,340
148,100		 (Continued)
Total
2021
Total
2020
2,205,618
17,606
2,223,224
1,785,676
2,541
1,788,217		 (Continued)
Total
2021
Total
2020
2,205,618
17,606
2,223,224
1,785,676
2,541
1,788,217
1,788,217

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

7 Support costs

Support costs
Governance costs
£
£
Staff costs
214,325
-
Depreciation
31,638
-
Heat and light
2,370
-
Rates
2,030
-
Building maintenance
13,053
-
Print, postage and
stationery
5,771
-
Insurance
6,438
-
Computer costs
28,570
-
Accreditation fees
13
-
Bank charges
3,492
-
Subscriptions
1,412
-
Consumables and other
costs
10,390
-
Cost of business
acquistion
-
-
Telephone
5,966
-
Training
11,230
-
Marketing
7,019
-
Legal and Professional
-
-
Accountancy
-
5,334
Committee meeting
room hire
-
195
343,717
5,529
Analysed between
Charitable activities
343,717
5,529		 2021
£
214,325
31,638
2,370
2,030
13,053
5,771
6,438
28,570
13
3,492
1,412
10,390
-
5,966
11,230
7,019
-
5,334
195
349,246
349,246		 2020 Basis of
allocation
£
157,440
16,564
3,935
2,309
6,548
5,949
5,755
19,379
13
3,234
1,076
10,143
18,789
5,250
-
6,327
500
5,004 Governance
2,083
Governance
270,299
270,299

The above costs are apportioned to charitable activities on a time spent basis.

Governance costs includes payments to the auditors of £4,300 (2020- £4,300) for audit fees.

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8 Employees

Number of employees

The average monthly number of employees during the year was:

Direct charitable activity
Support
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
94
10
104
2021
£
1,810,602
134,591
44,323
1,989,516		 2020
Number
83
9
92
2020
£
1,465,012
101,075
36,217
1,602,304

There were no employees whose annual remuneration was £60,000 or more.

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, n one of the trustees were reimbursed for travel expenses (2020 - one, reimbursed £ 141).

10 Transfers

A transfer of £nil (20 20 £ 2,541 ) has been made from unrestricted to restricted funds to cover the deficit incurred on the DPSS service.

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

11 Intangible fixed assets

Cost
At 1 April 2020 and 31 March 2021
Amortisation and impairment
At 1 April 2020
Amortisation charged for the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Goodwill
£
25,000
3,646
6,250
9,896
15,104
21,354

12 Tangible fixed assets

Freehold land
and buildings
Fixtures,
fittings &
equipment
Motor vehicles
£
£
£
Cost
At 1 April 2020
453,898
112,141
15,250
Additions
5,863
11,808
-
At 31 March 2021
459,761
123,949
15,250
Depreciation and impairment
At 1 April 2020
95,337
68,566
1,892
Depreciation charged in the year
5,490
22,837
3,924
At 31 March 2021
100,827
91,403
5,816
Carrying amount
At 31 March 2021
358,934
32,546
9,434
At 31 March 2020
358,561
43,575
13,358		 Total
£
581,289
17,671
598,960
165,795
32,251
198,046
400,914
415,494

13 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
146,579
25,266
12,028
183,873		 2020
£
197,254
14,702
5,678
217,634

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

14 Current asset investments

Unlisted investments
15
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
342,069
2021
£
35,815
22,683
21,473
78,685
158,656		 2020
£
85,824
2020
£
34,918
59,705
9,124
72,871
176,618

16 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the statement of financial activities in respect of defined contribution schemes was £44,323 (2020 £36,217).

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Resources Transfers Balance at Incoming Resources Balance at
1 April 2019 expended 1 April 2020 resources expended
31		 March 2021
£ £ £ £ £ £ £
Direct payment support service (Torfaen) - (2,540) 2,540 - - - -
Wish Fund 9,418 - - 9,418 - - 9,418
Infection Control - - - - 17,606 (17,606) -
9,418 (2,540) 2,540 9,418 17,606 (17,606) 9,418

Direct payment support service (Torfaen) - This fund represents funding received under a service level agreement from Torfaen Council amounting to £91,390 which ceased in 2019.

Wish Fund - Monies received to provide the Information advice and Signposting Hub Service to coordinate information relating to well-being healthcare and support available in Herefordshire.

Infection Grant - Monies received from Covid 19 grant funds

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

18
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
March 2021 are
represented by:
Intangible fixed assets
15,104
-
Tangible assets
400,914
-
Current assets/
(liabilities)
614,355
9,418
1,030,373
9,418		 TotalUnrestricted
funds
2021
2020
£
£
15,104
21,354
400,914
415,494
623,773
514,914
1,039,791
951,762		 Restricted
funds
2020
£
-
-
9,418
9,418		 Total
2020
£
21,354
415,494
524,332
961,180

19 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel, is as follows.

2021 2020
£ £
Aggregate compensation 78,888 79,744

Transactions with related parties

At the year end £207,127 (2020 - £1,138,898) cash was being held separately in a client bank account by the charity on behalf of its service users in connection with the Payroll and Managed Accounts Service, to which the charity operates in an agent capacity.

During the year 2 (2020 : 3) trustees received services from the charity amounting to £38,159 (2020£92,264), at the balance sheet date £2,185 (2020 - £520) was outstanding.

SERVICES FOR INDEPENDENT LIVING

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

20 Cash generated from operations

Surplus for the year
Adjustments for:
Investment income recognised in profit or loss
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Cash generated from operations		 2021
£
78,611
(2,159)
38,501
33,761
(17,962)
130,752		 2020
£
79,548
(2,962)
20,612
(34,583)
70,301
132,916

21 Analysis of changes in net funds

The charity had no debt during the year.