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2021-03-31-accounts

TRUSTEES’ REPORT & ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Working alongside parents in South London and East Surrey to give children secure and confident childhoods

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Legal & Administrative Information

Trustees Christopher Elliott (from 15 February 2021)
Cherry Murdoch (Trustee and Chair until 31 March
2021)
Sarah Harty (Honorary Treasurer)
The Ven Moira Astin (Vice-Chair, Interim Chair from 1
April 2021)
Debbie Haith
Anne Coates (until 15 February 2021)
Rachel Phillips
Angela Blackwood (until 31 July 2020)
Elizabeth Rackow (until 10 May 2021)
Paulette Tajah-Bell
Revd Davy Nyirongo
Ruth Martin
Chief Executive Officer Anna Khan
Management Team Lynn James
Fay Morris
Barbara Wilson
Diane Taylor
Charity Number 1107859
Company Number 5275749
Registered Name Southwark Diocesan Welcare
Principal Address & 19 Frederick Crescent
Registered Office London SW9 6XN
Auditor Haysmacintyre LLP
10 Queen Street Place
London EC4R 1AG
Banker National Westminster Bank plc
London Bridge Branch
PO Box 35
10 Southwark Street
London SE1 1TJ
Solicitors Bates Wells & Braithwaite
10 Queen Street Place
London EC4R 1BE

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Our Centres

Registered Office Central Office 19 Frederick Crescent London SW9 6XN

Tel: 020 7820 7910 Email: info@welcare.org

South-East London:

Bromley Centre Community House South Street Bromley BR1 1RH

Tel: 020 8466 0399 Email: Bromley@welcare.org

South-West London Parkway House Sheen Lane East Sheen London SW14 8LS

Tel: 020 8893 9123 Email: swlondon@welcare.org

Greenwich Centre

248-250 Nightingale Vale Woolwich Common London SE18 4HN

Tel: 020 8854 3865 Email: Greenwich@welcare.org

Inner London 19 Frederick Crescent London SW9 6XN

Tel: 020 7820 7913 Email: innerlondon@welcare.org

East Surrey Welcare House 24 Warwick Road Redhill RH1 1BU

Tel: 01737 780884 Email: Redhill@welcare.org welcare.org @welcareuk facebook.com/welcareuk @welcare_uk

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Contents Page
Chair’s Report 4
Trustees’ Report 4
Introduction 4
Public Benefit 5
Objectives and Activities 5
Objects of the Charity 5
Aims of the Charity 5
Activities of the Charity 6
Achievements and Performance 7
Performance against objectives 7
Outcomes 8
Plans for the Future 9
Contributions from Volunteers 10
Financial Review 10
Reserves Policy 11
Investment Policy 11
Fundraising Policy 12
Principal Risks and Uncertainties 12
Structure, Governance and Management 15
Governing Document 15
Trustees 15
Organisational Structure 15
Safeguarding Policy 16
Relationships 17
Key Management Personnel Remuneration Policy 17
Statement of Trustees’ Responsibilities 17
Independent Auditor’s Report 19
Statement of Financial Activities 22
Balance Sheet 23
Statement of Cash Flows 24
Notes to the Accounts 25

Southwark Diocesan Welcare is a Charity registered in England & Wales President: The Bishop of Southwark Registered Charity Number: 1107859 Interim Chair of Trustees: Moira Astin Company Number: 5275749 Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Welcome from the Chair

On behalf of the Board of Trustees of Welcare, I am pleased to introduce our annual report and accounts.

Every week Welcare staff are working alongside families helping them change their lives for the better. This has been an extremely challenging year for us all but particularly so for the families facing financial hardship, deprivation, mental ill health, family breakdown and domestic abuse. School closures and, in many cases, inadequate accommodation have exacerbated these difficulties. Welcare’s services have been needed more than ever. Our staff quickly adapted service delivery so they could continue to provide emotional and practical support for children and families online and over the telephone. Our strong connections in the community enabled us to respond quickly to address families’ immediate needs; our appeals for crisis funds raised over £8,000 from our supporters. We distributed over £14,000 in client grants. Although working remotely and for much of the year unable to meet with families in our centres, their schools, or their homes, we have been able to offer support to 344 individual children and parents.

I would especially like to thank our staff team for their excellent work in rising to the challenges, embracing significant change, adopting new methods of working and continuing to support the children and families we serve despite their own personal challenges including home-schooling and concern for family members.

We are grateful to those individuals, churches, and trusts who fund and support our work including the Diocese of Southwark, Surrey County Council, National Lottery, BBC Children in Need, the Youth Endowment Fund, the Netherby Trust, Sisters of the Holy Cross, the Leathersellers’ Company Charitable Fund, Richmond Parish Lands Charity, and others listed on page 10.

I would like to take this opportunity to thank all our friends and supporters not least our local Friends’ Groups and Parish Representatives, and trustees who have come to the end of their term of office this year: Angela Blackwood, Anne Coates, Elizabeth Rackow and especially Cherry Murdoch who stood down after 4 years as Chair of the charity. Our thanks to Cherry for leading the charity through turbulent times.

Welcare has been supporting families since 1894. Our flexible approach to service, as demonstrated during this “Covid” year, ensures that we can continue to serve those in need.

Moira Astin Vice Chair and Interim Chair

Trustees’ Report

Introduction

The trustees, who are also directors of Southwark Diocesan Welcare for the purposes of the Companies Act 2006, are pleased to submit their annual report and audited financial statements for the year ended 31 March 2021. The trustees have adopted the provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities” issued in 2015 – Second

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Edition effective 1 January 2019, the Companies Act 2006 and applicable UK accounting standards in preparing the annual report and financial statements of the organisation.

Public Benefit

The trustees confirm that they have complied with their duty under Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit.

Objectives and Activities

Objects of the Charity

Welcare is governed by the articles of association and memorandum dated 2 November 2004 and amended 29 September 2010 and 23 September 2015. The objects of the charity are:

Aims of the Charity

Our vision is of a world where every child and family is respected, included and resilient, and able to overcome challenges in life.

Our mission is to work alongside parents and carers to give children secure and confident childhoods and to enable them to thrive in the future. To achieve this, we aim to:

  1. Support families and children to develop resilience, confidence and self-esteem.

  2. Enable children and families to thrive within their communities.

  3. Provide practical support to meet immediate needs.

  4. Work with families to prevent the need for statutory social work interventions.

  5. Develop our services to support children’s emotional health and well-being.

  6. Work collaboratively with the community, schools and churches.

Welcare staff and volunteers aim to intervene early to provide practical and emotional help and support to strengthen families who are experiencing difficulties. Our aim is to enable a parent to become the very best parent they can be to their children, to engage with their available networks and to improve the outcomes for vulnerable children and their families. We believe that by working together we can create a society where parents and children have the confidence to recognise and seize every opportunity to flourish.

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Activities of the Charity

Identifying the need

We work across South London and East Surrey with children and their families facing the following challenges:

For children aged between 8 and 13

Parents with children up to the age of 13

Activities addressing the need

Many families have experienced unprecedented challenges over the last twelve months of the Covid-19 crisis. Families who have never faced financial difficulties before have found themselves at breaking point and have been impacted by job losses and illness and have been left unable to feed their children or provide warm clothing. Welcare staff and supporters responded to these challenges by launching our Families in Crisis and Crowdfunding campaigns to supplement the local food banks and emergency grants and funds we are able to access from local grant making trusts. Welcare purchased supermarket vouchers, sourced laptops for children being home-schooled and worked closely with voluntary sector partners to ensure we were targeting support where it was most needed. The practical and financial support by Welcare has been much appreciated, and needed, by many families and provided a financial lifeline at a time of great need.

The most prevalent issues that families have turned to us for support with since April 2020 include:

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

To address the need, our dedicated, professional staff work with individual children and their parents; we work to build on the positive elements of family lives and to prevent problems happening by intervening early and breaking the cycles that may become entrenched. The Covid-19 pandemic began to impact the charity’s activities from the beginning of March 2020 and has continued to do so throughout the year. Fortunately, the charity had a robust business continuity plan in place and staff were able quickly to move to home-working and continue to serve children and families. We adapted our programmes to deliver support more flexibly whilst focussing on those for whom social distancing and the closure of schools exacerbated existing tensions and hardship. Our work with individual children and families which had previously taken place in families’ homes, our Welcare centres and other community settings including churches and schools also moved to online, delivered using video platforms or telephone support. As the various lockdowns over the previous 12 months eased, we have held meetings with families in open spaces, parks and gardens and re-opened our centres for face-to-face appointments always in line with the government’s advice on social distancing.

Achievements and Performance

Performance against objectives

We have continued to build our Child and Family Support Service to enable delivery of a consistent community-based service throughout South London boroughs and extending into East Surrey. This service has been provided alongside services delivered at our Family Centre in Redhill in partnership with Surrey County Council. Our most significant achievements of the last year included:

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Welcare made effective use of the financial measures announced by the government including successful applications for Covid-19 related funding.

Although Welcare lost income because of the cancellation of fundraising events and community activities our supporters continued to inspire us by finding new innovative ways to connect including our first zoom lent lunch, zoom fitness classes and a crowdfunding campaign to raise funds to support families in crisis.

We have been heartened that despite their own challenges over the year 60 individual churches supported our work in the last financial year.

Despite the constraints on fundraising activities during the year, our loyal supporters raised in excess of £100,400.

Total income from Trusts and Foundations amounted to £268,257.

Outcomes

Welcare staff and volunteers work alongside parents to give children secure and confident childhoods and to enable them to thrive in the future. We strive to empower families with children up to the age of 13 by offering practical and emotional support to overcome challenges and change lives for the better. To achieve this, we:

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Welcare Child and Family Support Services – Practical and Emotional Support for Individual Families

South-east London (Bromley and Greenwich) 79 cases of support
South-west London (Inner London, Richmond and
Wandsworth)		 148 cases of support
East Surrey 117cases ofsupport
Total 344 individualcases

From the 344 cases which received support, 117 received practical support and grants. In addition, the East Surrey centre distributed food bags to 108 families.

Welcare uses the Family Outcomes Star+ an evidence-based tool which places the beneficiary at the centre of their own journey of change. Each scale on the star is more than just a set of numbers from 1 to 10, they are underpinned by the Journey of Change for that Star. The Journey of Change is a theory of change that sets out the stages people go through when making sustainable changes in their lives, meaning the attitude and behaviour expected at each of the points on each scale are clearly defined. Each Journey of Change is specific to the individual Star that it describes in order to more effectively engage with and capture service users’ change.

We use these insights to ensure we’re making a lasting difference to the children and families we support. During the last twelve months, using Outcomes Star tools we demonstrated that through support from our staff we enabled progress to be made in the following areas:

We aim to achieve a positive change for over 80% of the children and parents we work with, although in common with other family support organisations we have found achieving change more challenging in this year dominated by the Covid-19 global pandemic.

Plans for the Future

Welcare identified five strategic objectives for 2018-2021 each of which is underpinned by a number of specific delivery targets:

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Welcare has continued to focus support on families exposed to domestic abuse and violence and staff have adapted services to meet the changing needs of service users during the coronavirus pandemic, especially digital exclusion and support with children’s behaviour at home. We received a number of Covid-19 related grants which enabled us to trial new ways of working remotely.

Throughout the year, the Board of Trustees has focussed on refining our service model and developing a closer working relationship with the Diocese of Southwark delivering its social mission with children and families, mindful of the global pandemic, its impact on vulnerable families, how service delivery has changed over recent months and Welcare’s 127 year history of adapting services to meet local need. The faith base of Welcare is seen as an integral part of the identity of the charity and its future.

A strategic review of the future business model of Welcare’s charitably funded services, including our office accommodation, began in 2020. Due to challenges created by the Covid19 crisis this review is ongoing. A pilot project working in partnership with the Southwark Diocesan Board of Education to become the family support provider of choice will be the first focussed activity of this strategy.

Contributions from Volunteers

Our volunteers have always been a key, valued part of the charity. However, during the last year face-to-face support from volunteers has been suspended. In October 2020 we worked with The Cranfield Trust who provided an experienced consultant who worked with us on a probono basis. The consultant worked with trustees to establish the principles and frameworks for future strategic discussions.

We also benefitted from the support of 6 local volunteers who continued to provide administrative support for staff; and husband and wife volunteers who provided practical help by packing food parcels and gardening while keeping to social distancing guidelines.

During the financial year, these local volunteers provided 79 hours of support for our East Surrey and Greenwich services.

Financial Review

Income for the year of £1,070k shows a decrease of £53k compared with the previous year’s total of £1,123k.

Donations amounting to £34k were received from individual supporters (2020: £26k) and £80k from fundraising (2020: £88k). Investment income amounted to £11k (2020: £12k) and rental income of £126k was derived from properties (2020: £120k).

The principal funding sources of the charity were the Diocese of Southwark, Surrey County Council, National Lottery Fund, BBC Children in Need, Youth Endowment Fund, Netherby Trust, Sisters of the Holy Cross, Leathersellers’ Company Charitable Fund, Richmond Parish Lands Charity, Lambeth CLIPs, Community Links Bromley, Girdlers’ Company Charitable Trust, London Response Fund, John Lewis Partnership Fund, Cicely Northcote Trust and Richmond Charities. The charity also receives funding from churches and individuals.

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Expenditure in the year was £851k (2020: £1,045k) including £463k of expenditure from restricted funds (2020: £593k).

The decrease in income and expenditure has resulted in a surplus of £219k before gains on investments (2020: surplus of £79k).

It is the aim of the Charity to maintain a stable operating surplus over the coming years with the aid of strengthened financial processes, reallocation of resources, service reviews and new income streams to ensure that Welcare truly is Here now, Here always to serve the most vulnerable children and their families in South London and East Surrey for generations to come.

Reserves Policy

Reserves as at 31 March 2021 totalled £2,716k (2020: £2,202k) including £123k of restricted reserves and £2,440k of designated funds.

The designated operational fixed asset fund represents fixed assets used in the day to day running of Welcare and are therefore not funds freely available to the charity. The designated fixed asset investment fund represents the value of the investment property and listed securities held as these are held for long-term income generation and are not freely available as liquefiable assets. The designated pension liability fund represents the amounts owed to The Pension’s Trust in respect of the pension deficit and is not part of the operational expenditure of the charity.

The Board considers that free reserves (defined as total reserves less designated and restricted funds) should be maintained at an amount equivalent to three to four months of the current year’s expenditure. This gives a minimum level of £304k. The Board considers that the minimum level is adequate to support current and anticipated levels of activity, to enable it to respond to opportunities and to provide for emergencies. The target level of three to four months’ reserves reflects realistic commitments on salaries, rent and other expenditure.

Free reserves are currently £153k. This is below the target level. In order to build up free reserves to the target level the charity aims to expand sources of income and to continue to monitor and control costs.

Investment Policy

As at 31 March 2021 fixed asset investments were valued at £1,995k including £1,750k of investment properties. There were net gains on investments of £273k in the year compared with a £16k loss in the year ended 31 March 2020. A full revaluation of all investment properties took place on 28 April 2021. It is the policy of the Board of Trustees to undertake a formal revaluation of investment properties every five years. The next revaluation will be undertaken in 2026.

The Board of Trustees has adopted socially responsible and ethical investment policies. In practice this is achieved by keeping under review the policies of the charity’s common investment funds which are invested in such a way as to satisfy these policies.

A sub-committee of the Board, the Finance and Development Committee, keeps investment matters under review and reports to quarterly Board meetings.

The Board of Trustees holds investment properties. Welcare relies on income from property investments to finance service delivery and to provide a level of protection when grant funding comes to an end. Rental income from the properties is used for the furtherance of the aims and

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

objectives of the charity. These assets provide essential income streams for our service delivery.

Fundraising Policy

Welcare undertakes a variety of fundraising activities to support our strategy of delivering better outcomes for children and families. We are a registered member of the Fundraising Regulator. We abide by the Fundraising Promise and the Institute of Fundraising Codes of Practice.

We commit to fundraising ethically, responsibly and with our donors in mind. We care about our supporters, what they think about our fundraising and always promise to be transparent, fair and legally compliant. We will always respect the privacy and contact preferences of our donors. We will respond promptly to requests to cease contact or to complaints and act as best we can to address their concerns. Any enquiries regarding fundraising can be directed to fundraising@welcare.org, while complaints should be made in writing to: Welcare Fundraising, 19 Frederick Crescent, London, SW9 6XN. We have not received any complaints about our fundraising practices. We do not use the services of commercial fundraisers.

We recognise the need to monitor our activities consistently to ensure our fundraising is being conducted to the highest possible standards. We have taken steps to ensure compliance with the General Data Protection Regulation (GDPR) and all staff are required to complete a GDPR e-learning module at least every three years.

Our fundraising strategy is approved by our Finance and Development Committee, consisting of five trustees and the CEO. This committee has responsibility for overseeing all aspects of quality assurance and compliance relating to fundraising and makes recommendations to the Board of Trustees.

Principle Risks and Uncertainties

Welcare is committed to active management of risk. Risk management is incorporated into governance and management structures, planning processes and all aspects of service delivery. The Chief Executive is responsible for ensuring that this policy is implemented throughout Welcare.

Welcare produces a risk register which identifies risk and allocates responsibility for managing areas of risk to named individuals.

The risk register identifies risks under the following headings, following Charity Commission recommendations:

Each identified risk is assessed in terms of likelihood and impact and then weighted giving a gross risk rating. Actions to minimise each risk are identified and responsibility for monitoring these is given to named individuals. The strength of each risk management strategy is given a numeric rating enabling the net risk to be calculated.

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

The full Board reviews the risk register on at least an annual basis. The trustees’ appetite for risk informs the strategic plan of the organisation. The trustees generally adopt a low risk tolerance.

The Board Committees have oversight of the management of each risk falling within their particular terms of reference. Both committees review the risks during the year.

The Chief Executive is responsible to the Board for the management and implementation of the risk management strategy and reports to the appropriate committee of the Board on progress towards mitigating each risk.

The CEO is responsible for embedding risk management into the culture of Welcare through:

The management of risk is not an isolated process but is embedded in the management of the organisation and the delivery of Welcare’s services. Several other policies, therefore, deal with risk management and risk assessment e.g. Health and Safety Policy, Safeguarding, Data Protection, Investment Policy etc. All Welcare’s policies are reviewed regularly and updated in line with changes in legislation, regulation and best practice.

Welcare’s ability to respond to and withstand the risks presented by a global pandemic was assessed by trustees and a number of mitigations were identified. These included the ability for all staff to access remote working and to move quickly to offer family support by telephone and on-line. Welcare already had a business continuity plan which is reviewed annually. A Standing Committee of the Board was established to enable a rapid Board level response to the crisis. Welcare responded quickly to emergency needs of service users by launching an appeal to raise money for supermarket vouchers and continued to receive donations from individuals and local churches.

Welcare’s income from its regular donors, supporting churches and principal funders remained stable throughout the financial year with the exception of the grant from the Diocese of Southwark which was reduced in the final quarter reflecting a reduction in income to the diocese. Several trust funding applications submitted before the Covid-19 lockdown in March 2020 remain outstanding possibly as a result of ongoing uncertainty about levels of investment income available to trust funders. In mitigation, Welcare received additional Covid-19 related emergency grant funding from the National Lottery Fund, BBC Children in Need, the Youth Endowment Fund, Richmond Parish Lands Charity, Lambeth CLIPs, London Response Fund and Richmond Charities. Welcare also placed some staff on furlough under the government’s Coronavirus Job Retention Scheme.

Other specific risks which, if materialised, would have had a significant impact on the charity were identified as:

Category Risk **Mitigation **
Financial Inability to deliver services and fund projects
due to lack of funding for any reason
including termination of contracts and over-
reliance on particular supporters and
funders.		 Diversify funding streams and
develop new supporters.
Promote regular giving scheme.
Improve communications
between the charity and
supporters by producing regular
newsletters.

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Develop sustainable services
independent of local authority
contracts.
Appointment of Trusts and
Foundations Fundraising Officer.
Maintain a good local profile.

Review Central Office costs and
staffing structure

Make use of Government and
local authority Covid-19 related
support (e.g., furlough) when
appropriate
Operational Unanticipated long-term absence of key
member of staff resulting in additional costs
to cover the post or overload on existing
staff required to cover the post; or reduced
output (contact with families).
Failure to recruit and retain professional,
skilled and experienced staff to work in
south London and East Surrey, endangering
service delivery.
Employee Assistance
programme to mitigate stress
and resolve the risk of long-
term sickness absence.

Senior staff required to provide
3 months’ notice

Succession business continuity
planning.

Professional HR advice and
support from HRSP

Emphasise the advantages of
working for Welcare

Review salary levels and role
descriptions
Governance Failure to maintain a skilled and dynamic
trustee board with the skills and enthusiasm
required to assist and oversee the delivery
of the strategic aims.
Failure to recruit a trustee with a
professional social work background.		 Strengthen and use professional
networks to encourage Board
membership
Maintain a balance between
Diocesan representatives and
trustees with specific
professional skills.
Annual review of Board skills,
organisational focus on Christian
distinctiveness
Compliance Incident involving child protection or
safeguarding issue involving staff member
or volunteer resulting in harm to the child
and reputational damage.		 External Safeguarding
Supervisor.
Independent Safeguarding Audit
every three years.
Rigorous application and annual
review of Safeguarding policy.
Safer recruitment processes.
Mandatory safeguarding training
for all staff and volunteers.
DBS checks carried out for all
eligible staff, volunteers and
trustees.
Robust supervision, complaints
andreferralprocesses.
Environmental/External Inadequate response to and failure to
withstand the global pandemic and continue
“business as usual”.
(excluding potential impact on future
funding)		 All staff have access to
Windows 10 and SharePoint to
enable homeworking
Use of video conferencing using
avariety ofplatformsforboth

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

staff meetings and group-work with service users  Board Standing Committee created as a rapid response Board committee  Disaster Management Plan reviewed annually and regularly updated  Ability to offer on-line and telephone support for service users

Structure, Governance and Management

Governing Document

Southwark Diocesan Welcare is a charitable company limited by guarantee. It was established under a Memorandum of Association and is governed under its Articles of Association. Revised Articles of Association were adopted by a special resolution passed at the charity’s AGM on 23 September 2015. The members of the organisation are limited to the trustees for the time being who may serve two terms of three years which, in exceptional circumstances and with the agreement of the Board, can be extended for one additional three-year term. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Trustees

The directors of the company are also the charity trustees. Trustees serve fixed terms of office. The Anglican Bishop of Southwark has the right to nominate up to two trustees. The Bishop’s nominees were Anne Coates (until 15 February 2021) and Christopher Elliott (from 15 February 2021) and Ruth Martin.

The trustees do not receive any benefit but may be reimbursed for reasonable expenses properly incurred when acting on behalf of the charity. No such reimbursements were made to trustees in 2020-2021.

An induction process and pack provides new trustees with the detailed information about the charity required for their role. Following an independent review of Board effectiveness in May 2019, the Board has held a number of facilitated planning sessions to inform development of the 2021-2024 Strategic Plan: in November 2019, and July and November 2020. Trustees are encouraged to attend appropriate external training courses, conferences and forums. All trustees have received Charity Commission guidance on The Essential Trustee and the Charity Governance Code and receive briefings from Welcare’s professional advisers. Welcare is a member of the NCVO and trustees are able to access a wide range of online training and resources to support them in their role.

Organisational Structure

The Board currently has eight members who meet at least four times a year and are responsible for the strategic direction and policy of Welcare.

Two sub-committees report regularly to the Board: The Finance and Development Committee and the Services Committee.

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

In addition, a Standing Committee of the Board consisting of the Chair, Vice-Chair and Chairs of the Services and Finance and Development Committees was established as a rapid response committee of the Board during the pandemic. The Standing Committee has delegated authority to conduct business of the Board between the Board meetings and reports regularly to the Board.

Overall responsibility for the delivery of Welcare’s services lies with the CEO. Welcare is structured into three separate regional service delivery areas (South-East London, South-West London and East Surrey) each headed by a senior social worker or experienced centre manager. The Child and Family Support Service Managers and the Family Centre Manager have been brought into the senior management structure of the organisation. An independent freelance social work and safeguarding supervisor provides service managers with regular individual and group social work supervision, opportunities for reflective practice and facilitates group supervision and mandatory CPD for all front-line staff. The next all staff training day is scheduled for July 2021.

Welcare employs a part-time Fundraising Officer responsible for submitting funding applications to Trusts and Foundations.

The continued integration of eTapestry, our supporter database, into the organisation, has enabled improved communication with donors and supporters and better data collection, management and protection.

Financial services and the provision of professional HR advice are outsourced to external providers.

Safeguarding Policy

Our safeguarding policy is available on our website. The policy is reviewed annually by senior managers and an independent senior social worker who also provides professional supervision for Welcare’s social workers. The policy has been updated in line with recommendations for maintaining safeguarding standards while using digital platforms to deliver individual and groupwork. The safeguarding policy is approved by the Services Committee of the Board of Trustees. Welcare has a named Service Manager with responsibility for and oversight of all safeguarding matters within Welcare. The Chair of the Services Committee holds Board level responsibility for safeguarding. During the year, an independent safeguarding consultant carried out an audit of all Welcare’s services in line with recommendations in Section 11 of the Children Act 2004. The safeguarding audit takes place every three years to ensure that standards are maintained throughout Welcare and that any safeguarding risks are addressed.

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Relationships

Welcare has worked closely with statutory bodies involved in the delivery of services to children. Welcare has a contract with Surrey County Council to provide services at the Redhill Family Centre and delivers Early Help work in partnership with East Surrey YMCA. Welcare is building future services around local needs and local support. Welcare works within the legislative framework of the Children Acts of 1989 and 2004 and the Children and Families Act 2014. Welcare is in regular contact with other charities serving children and families through active membership of Children England.

Welcare has a strong relationship with the Church of England and receives a significant annual grant towards its work from the Anglican Diocese of Southwark. Welcare also enjoys close relationships with a number of churches in south London boroughs including the Bromley, Beckenham and Orpington deaneries in the Diocese of Rochester and with the Hampton deanery in the Diocese of London where individual church members support Welcare financially, through volunteering and in prayer.

Key Management Personnel Remuneration Policy

The salary of the Chief Executive is set by the Chair in consultation with the Vice-Chair following annual appraisals. The organisation uses the NJC pay scales for benchmarking salaries of other staff.

Statement of Trustees’ Responsibilities

The trustees, who are also directors of Southwark Diocesan Welcare for the purposes of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare accounts 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 period.

In preparing these accounts the trustees are required to:

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

As far as we are aware, there is no relevant audit information of which the auditor is unaware. We have taken appropriate steps to identify any relevant audit information and to establish that

Southwark Diocesan Welcare is a Charity registered in England & Wales President: The Bishop of Southwark Registered Charity Number: 1107859 Interim Chair of Trustees: Moira Astin Company Number: 5275749 Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

the auditor is aware of that information.

Auditor

Haysmacintyre LLP have signified their willingness to continue as our auditor and the Board of Trustees will consider the matter at the next scheduled Board meeting.

On behalf of the Board of Trustees

Moira Astin, Vice-Chair and Interim Chair

8 July 2021

Southwark Diocesan Welcare is a Charity registered in England & Wales Registered Charity Number: 1107859 Company Number: 5275749

President: The Bishop of Southwark Interim Chair of Trustees: Moira Astin Chief Executive: Anna Khan

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF SOUTHWARK DIOCESAN WELCARE

Opinion

We have audited the financial statements of Southwark Diocesan Welcare for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 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. 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 trustee’s 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the

P a g e | 19

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF SOUTHWARK DIOCESAN WELCARE

financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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 for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 17, the trustee 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Based on our understanding of the charity and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements of the Charity Commission, safeguarding regulations, data protection, health and safety regulations and employment law and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, the Charity SORP and payroll taxes.

We evaluated management’s opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in certain accounting estimates and judgements such as the income recognition policy applied to donation and legacies income. Audit procedures performed by the engagement team included:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF SOUTHWARK DIOCESAN WELCARE

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

Use of our report

This report is made solely to the 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.

Lee Stokes (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors 8 July 2021

10 Queen Street Place London EC4R 1AG

P a g e | 21

Statement of Financial Activities

For the year ended 31 March 2021

Note
Unrestricted
funds
Restricted
funds
2021
Total
INCOME
£
£
£
Donations and legacies
Individual Giving
31,302
2,986
34,288
Other Trading Activities
Fundraising Activities
80,018
-
80,018
Income From Investments
Investment income
11,475
-
11,475
Rents received
126,441
-
126,441
Income From Charitable Activities
Child & Family Support Services
248,981
197,674
446,655
Volunteer Programme
-
-
-
Community Social Work
-
-
-
Groups & Workshops
3,760
13,425
17,185
Redhill Children's Centre
-
-
-
Early Help
-
30,993
30,993
Family Centre
-
279,335
279,335
Family Centre transition
-
3,832
3,832
Other income
40,070
-
40,070
Total income
2
542,047
528,245
1,070,292

EXPENDITURE
Expenditure on Raising Funds
Fundraising & Marketing
43,859
-
43,859
Expenditure on Charitable Activities
Child & Family Support Services
278,479
179,941
458,420
Volunteer Programme
-
-
-
Community Social Work
-
-
-
Groups & Workshops
6,579
13,425
20,004
Redhill Children's Centre
-
-
-
Early Help
7,081
30,578
37,659
Family Centre
52,266
236,380
288,646
Family Centre transition
-
2,400
2,400
Total Expenditure
3
388,264
462,724
850,988

Net income (expenditure) before
investments gains/(losses)
153,783
65,521
219,304
Net (losses)/gains on investments
294,911
-
294,911
Net income (expenditure) after
investments gains
448,694
65,521
514,215
Net movement in funds
448,694
65,521
514,215
Fund balances brought forward at
1 April 2020
2,145,173
56,993
2,202,166
Funds balances carried forward at
31 March 2021
2,593,867
122,514
2,716,381		 2020
Total
£
25,846
87,568
12,195
119,799
434,768
-
48,871
46,208
116,400
7,152
139,588
80,157
4,877
1,123,429
66,516
468,225
9,103
61,805
75,997
150,247
8,258
86,395
118,073
1,044,613
78,816
(16,060)
62,756
62,756
2,139,410
2,202166

There were no recognised gains or losses other than those shown in the Statement of Financial Activities. All income and expenditure derive from continuing activities.

The accompanying notes form part of those financial statements.

Details of comparative figures by fund are given in note 12.

P a g e | 22

Balance Sheet As at 31 March 2021

Registered company number 05275749

Note
Operational Fixed Assets
6
Fixed Asset Investments
7
Current assets
Debtors
8
Short term investments
Cash at bank & in hand
Current assets
Creditors: amounts falling due within
one year
9
Net current assets
Creditors: amounts falling due after one
year
9
Net assets
10
Restricted funds
10
Designated funds
10
Operational fixed assets
Fixed assets investments
Covid Recovery
Pension liability
General funds
Total funds		 2021
£
55,062
127,762
360,488		 2021
£
450,549
1,995,432
389,237
(118,837)
2,716,381
122,514
450,549
1,995,432
153,783
(159,098)
153,201
2,716,381		 2020
£
62,134
105,811
177,372		 2020
£
467,251
1,722,472
161,864
543,312
(154,075)		 345,317
(183,453)
(149,421)
2,202,166
56,993
467,251
1,722,472
-
(188,509)
143,959
2,202,166

The financial statements were approved by the Board and authorised for issue on 08 July 2021 and signed on its behalf by:

Sarah Harty, Honorary Treasurer

Moira Astin, Vice Chair and Interim Chair

The accompanying notes form part of these financial statements.

P a g e | 23

Statement of Cash Flows

For the year ended 31 March 2021

Cash flows from operating activities:
Net income for the year
Adjustments for:
Depreciation charges
Gains on revaluation of investments
Dividends, interest & rents from
investments
Increase/(decrease) in debtors
Decrease in creditors
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Dividends, interest & rents from
investments
Net cash used in investing activities
Change in cash and cash equivalents in
the year
Cash and cash equivalents at
the beginning of the year
Cash and cash equivalents at
the end of the year		 2021
£
514,215
16,702
(294,911)
(137,916)
7,072
(59,962)		 2021
£
45,200
137,916
183,116
177,372
360,488		 2020
£
62,756
11,714
16,060
(131,994)
(41,189)
(56,297)		 2020
£
(138,950)
113,441
-
137,916		 (18,553)
131,994
(25,509)
202,881
177,372

The accompanying notes form part of these financial statements.

P a g e | 24

Notes to the Accounts For the year ended 31 March 2021

1. ACCOUNTING POLICIES

(a) Basis of Accounting

(i) The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard – applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP 2015 (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Southwark Diocesan Welcare meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

(b) Operational Fixed Assets

Depreciation has been provided at the following annual rates in order to write off each asset over its estimated useful life:

Freehold buildings 2% of cost p.a. straight line Office furniture and equipment 20% of cost p.a. straight line Computer equipment 33⅓% of cost p.a. straight line

Tangible fixed assets are capitalised if their initial costs are in excess of £1,000.

(c) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Investment properties are included at market value. The Statement of Financial Activities includes the gains and losses arising on revaluation and disposals throughout the year.

(d) Cash Management

Cash not required for day to day operation, but for the medium term, is held in an instant access savings account. Where it is deemed that cash can be held for the longer term this is transferred into the investment portfolio.

(e) Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, trustees are required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if

P a g e | 25

Notes to the Accounts For the year ended 31 March 2021

the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

Judgements made by the trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreciation rates of tangible fixed assets and the assumptions used in determining the value of the pension scheme deficit.

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

(f)

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(g)

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(h)

Gifts in kind

Gifts in kind are included at the value to the charity where this can be quantified and a third party is bearing the cost. The charity has a policy of accounting for gifts in kind if the value can be quantified as being over £10,000. No amounts are included in the financial statements for services of volunteers.

(i) General funds – unrestricted

These comprise the funds which are available to be used for the general purposes of the charity.

(j) Designated funds – unrestricted

Designated funds are those earmarked by the trustees for specific purposes or projects as noted in the financial statements.

(k) Restricted funds

These funds are held subject to specific trusts declared by the donor or through legal processes as explained in the financial statements.

(l) Income

All income including donations, any associated income tax recoveries from donations received under Gift Aid, and legacies are credited to the Statement of Financial Activities in the year in which they arise.

Income is recognised when the charity is considered to be entitled to apply the resource, the amount may be estimated with reasonable accuracy and the likelihood of receipt established with reasonable certainty.

Unless the provisions of a given grant or contract specify otherwise, grants are accounted for as restricted income resources and contracts as unrestricted.

(m) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be

P a g e | 26

Notes to the Accounts For the year ended 31 March 2021

directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

(n) Charitable activities

Charitable activities are expenditure incurred in delivering the charity’s activities and services to its beneficiaries.

(o) Fundraising, publicity, communication and events expenditure

Fundraising, publicity, communication and events expenditure consists of expenditure incurred in raising funds together with the cost of communication and of holding events.

(p) Support costs

Support costs include the central office functions such as general management, payroll administration, budgeting and accounting, information technology, human resources, financing and governance costs, and are allocated across the categories of charitable expenditure, governance costs and the costs of raising funds.

(q) Governance

Governance costs are the costs associated with the governance arrangements of the charity which relate to meeting constitutional requirements. Included within this category are costs related to external audit together with an apportionment of overhead and support costs.

(r) Pension costs

Southwark Diocesan Welcare participates in the defined contribution scheme offered by The Pensions Trust. The Pensions Trust is an occupational pension scheme provider for organisations involved in social, educational, charitable, voluntary or similar work. The financial position and the income and expenditure of The Pensions Trust are disclosed in its annual financial statements. Although The Pensions Trust is a defined contribution scheme a shortfall has occurred and each contributor is required to make good their share of the shortfall. The liability is reduced when payments are made to The Pension Trust.

As a result of the transfer of 2 members of staff to the Family Centre, Welcare is in the process of obtaining admitted body status to the Local Government Pension Scheme (LGPS). Welcare will enter into a side agreement to restrict the charity’s exposure to the LGPS liabilities.

P a g e | 27

Notes to the Accounts For the year ended 31 March 2021

2. ANALYSIS OF INCOME

Donations
Donations and fundraising
Grants
South London Church Fund
Surrey County Council:
- Early Help
- Family Centre
- Transition to Family Centre
National Lottery Fund
BBC Children in Need
Netherby Trust
Mercers
Grants of under £20,000
Total Grants
Investment income & rent receivable
Other income
Total income
Donations
Donations and fundraising
Grants
South London Church Fund
Surrey County Council:
- Redhill Children’s Centre
- Children’s social care
- Early Help
- Family Centre
- Transition to Family Centre
Big Lottery
BBC Children in Need
Netherby Trust
Mercers
Grants of under £20,000
Total Grants
Investment income & rent receivable
Other income
Total income		 Unrestricted funds
Restricted funds
Total 2021
£
£
£
105,838
8,468
114,306
185,583
-
185,583
-
30,993
30,993
-
279,177
279,177
-
3,832
3,832
-
71,125
71,125
-
46,720
46,720
35,000
-
35,000
-
25,837
25,837
46,649
52,926
99,575
267,232
510,610
777,842
137,916
-
137,916
31,061
9,167
40,228
542,047
528,245
1,070,292
Unrestricted
funds
Restricted
funds
Total 2020
£
£
£
113,159
255
113,414
192,433
-
192,433
-
116,400
116,400
-
48,871
48,871
7,152
7,152
139,588
139,588
80,157
80,157
-
79,930
79,930
-
36,528
36,528
35,000
-
35,000
-
47,471
47,471
9,850
79,494
89,344
237,283
635,861
873,144
131,994
-
131,994
2,642
2,236
4,877
485,078
638,351
1,123,429

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Notes to the Accounts For the year ended 31 March 2021

3. ANALYSIS OF TOTAL EXPENDITURE

Expenditure on Raising Funds
Fundraising & Marketing
Expenditure on Charitable Activities
Child & Family Support Services
Volunteer Programme
Community Social Work
Groups & Workshops
Redhill Children's Centre
Early Help
Family Centre
Family Centre transition
Total Expenditure
Expenditure on Raising Funds
Fundraising & Marketing
Expenditure on Charitable Activities
Child & Family Support Services
Volunteer Programme
Community Social Work
Groups & Workshops
Redhill Children's Centre
Early Help
Family Centre
Family Centre transition
Total Expenditure		 Direct Staff
Costs
Direct Other
Costs
Support Costs
Allocated
2021
Total
£
£
£
£
24,535
10,278
9,046
43,859
274,948
110,222
73,250
458,420
-
-
-
-
-
-
-
-
15,795
-
4,209
20,004
-
-
-
-
26,577
4,001
7,081
37,659
197,323
38,753
52,570
288,646
-
2,400
-
2,400
539,178
165,654
146,156
850,988
Direct Staff
Costs
Direct Other
Costs
Support Costs
Allocated
2020
Total
£
£
£
£
22,287
32,273
11,956
66,516
288,372
100,786
79,066
468,225
5,642
1,914
1,547
9,103
44,130
5,575
12,100
61,805
56,989
3,382
15,626
75,997
90,448
34,994
24,799
150,241
6,115
466
1,677
8,258
58,401
11,981
16,013
86,395
59,593
42,140
16,340
118,073
631,977
233,511
179,125
1,044,613

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Notes to the Accounts For the year ended 31 March 2021

ANALYSIS OF SUPPORT COSTS

Support costs can be analysed as follows:

Support costs can be analysed as follows:
Governance
Audit fee
Trustee and other meeting costs
AGM and other
Staff costs allocated to Governance
Other Support costs
Staff costs allocated to Support
Total support costs		 2021
2020
£
£
7,620
7,710
663
13
-
5,685
6,795
6,846
15,078
20,254
61,929
61,797
69,149
97,073
146,156
179,124

Support costs are allocated on the basis of time spent on each activity.

4. RESULTS FOR THE YEAR

Expenditure includes: Year ended Year ended
31 March 31 March
2021 2020
£ £
Auditors’ remuneration: 7,620 7,470
Depreciation 16,702 11,714

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Notes to the Accounts For the year ended 31 March 2021

5. STAFF COSTS AND NUMBERS

The key management personnel of the charity comprise the trustees and the Chief Executive Officer.

The total amounts paid in respect of the key management personnel of the charity were £78,977 (2020: £79,597).

2020:£79,597).
Staff costs were as follows:
Salaries and wages
Social Security costs
Pension contributions
Redundancy		 Year ended
31 March
2021
£
549,600
43,628
21,894
-
615,122		 Year ended
31 March
2020
£
659,816
52,981
23,071
35,930
771,798

One employee earned between £60,000 and £70,000 during the year (2020: one). No redundancy payments were made during the year (2020: £35,787).

The average number of full-time equivalent employees, analysed by function, was:

Fundraising and publicity
Charitable activities		 2021
No.
0.75
16.35
17.1		 2020
No.
1.6
17.8
19.4

The average number of staff employed during the year was 22 (2020: 22).

No member of the Board of Trustees received remuneration for their services during the year (2020: £nil). No trustees were reimbursed for out-of-pocket expenses (2020: £nil).

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Notes to the Accounts For the year ended 31 March 2021

6. OPERATIONAL FIXED ASSETS

Cost or Valuation
As at 1 April 2020
Disposals
At 31 March 2021
Accumulated depreciation
As at 1 April 2020
Charge for the year
Disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Operational
freehold land
and buildings
in use
Office
furniture &
equipment
Computer
equipment
Total
2021
£
£
£
£
582,221
6,021
27,206
615,448
-
-
(7,341)
(7,341)
582,221
6,021
19,865
608,107
132,499
6,021
9,677
148,197
10,513
-
6,189
16,702
-
-
(7,341)
(7,341)
143,012
6,021
8,525
157,558
439,209
-
11,340
450,549
449,722
-
17,529
467,251

All operational fixed assets are used in the charitable activities of the charity.

7. FIXED ASSET INVESTMENTS

Balance at 1 April 2020
Gains on revaluation
Balance as at 31 March 2021		 Investment
properties
Other
investments
Total
2021
Total
2020
£
£
£
£
1,520,000
202,472
1,722,472
1,722,764
230,000
42,960
272,960
13,917
1,750,000
245,432
1,995,432
**1,736,681 **

The investment properties were revalued at 31 March 2021 in accordance with the RICS Valuation – Professional Standards 2014 (The Red Book) by William Bradley BSc (Hons) MRICS of Bradley Harris Ltd, Chartered Surveyors, 368 Croydon Road, Beckenham, Kent BR3 4EX. In line with their policy to undertake a formal revaluation of investment properties every five years, the next formal revaluation will take place in March 2026.

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Notes to the Accounts For the year ended 31 March 2021

8. DEBTORS

Prepayments
Accrued income
9. CREDITORS
Accounts falling due within one year:
Trade creditors
Deferred income and accruals
Other taxes & social security
Other creditors
Pension provision
Total Creditors
Deferred grant income
Balance brought forward
Amount released to grant income
Amount deferred in the year
Accounts falling due after more than one year:
Pension provision		 Total
2021
£
4,675
50,387
55,062
Total
2021
£
12,638
69,451
30,740
985
40,261
154,075
83,663
(83,663)
45,981
45,981
Total
2021
£
**118,837 **		 Total
2020
£
2,936
59,198
62,134
Total
2020
£
5,919
114,679
23,290
477
39,088
183,453
120,015
(120,015)
83,663
83,663
Total
2020
£
149,421

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Notes to the Accounts For the year ended 31 March 2021

10. MOVEMENT IN FUNDS

Restricted funds:
East Surrey
South West London
South East London
Total restricted funds
Designated funds:
Operational fixed assets fund
Fixed asset investment fund
Covid Recovery
Pension liability fund
Total unrestricted
designated funds:
Total unrestricted general
funds:
Total funds		 Balance at
1 April 2020
Income
Expenditure
Transfers and
gains/(losses)
on
investments
£
£
£
£
54,871
330,947
(281,043)
-
1426
128,087
(127,985)
-
696
69,211
(53,696)
-
56,993
528,245
(462,724)
-
467,251
-
-
(16,702)
1,722,472
-
-
272,960
-
-
-
153,783
(188,509)
-
-
29,411
2,001,214
-
-
439,452
143,959
542,047
(388,264)
(144,541)
2,202,166
1,070,292
(850,988)
294,911		 As at
31 March
2021
£
104,775
1,528
16,211
122,514
450,549
1,995,432
153,783
(159,098)
2,440,666
153,201
**2,716,381 **

Restricted Funds

East Surrey – these funds represent income from Surrey County Council to provide Early Help, family support and a Family Centre. They also receive some small grants and donations restricted to specific uses.

South West London – these funds represent specific grants from National Lottery, Youth Endowment Fund, Mercers and other specific grant funding to deliver child and family support services and income received to provide grants to clients.

South East London – these funds represent BBC Children in Need, Leathersellers, Girdlers and other specific grant funding to deliver child and family support services and income received to provide grants to clients.

Designated Funds

The operational fixed asset fund represents the net book value of tangible fixed assets used in the day to day running of Welcare and are therefore not funds freely available to the charity.

The fixed asset investment fund represents the value of the investment property and listed securities held as these are held for long term income generation and are not freely available as liquefiable assets.

Welcare met the needs of its beneficiaries by continuing to offer practical and emotional family support throughout the pandemic. Trustees focused on securing the future well-being of the charity and the surplus from this year has been designated to our recovery fund to forge a stronger charity able to withstand a more challenging funding environment in the future. Trustees are considering accommodation needs and a more flexible model of service delivery.

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Notes to the Accounts For the year ended 31 March 2021

10. MOVEMENT IN FUNDS (continued)

The pension liability fund represents the amounts owed to The Pension’s Trust in respect of the pension deficit and is not part of the operational expenditure of the charity.

Restricted funds:
East Surrey
South West London
South East London
Total restricted funds
Designated funds:
Operational fixed assets fund
Fixed asset investment fund
Pension liability fund
Total unrestricted
designated funds:
Total unrestricted general
funds:
Total funds		 Balance at
1 April 2019
Income
Expenditure
Transfers and
gains/(losses)
on
investments
£
£
£
£
11,322
401,588
(358,039)
-
-
136,096
(134,670)
-
493
100,667
(100,464)
-
11,815
638,351
(593,173)
-
460,412
-
-
6,839
1,736,681
-
-
(14,209)
(229,000)
-
-
40,491
1,968,093
-
-
33,121
159,502
485,077
(451,439)
(49,181)
2,139,410
1,123,428
(1,044,612)
(16,060)		 As at
31 March
2020
£
54,871
1,426
696
56,993
467,251
1,722,472
(188,509)
2,001,214
143,959
2,202,166

Transfers in funds represent programmes funded from unrestricted income.

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Notes to the Accounts

For the year ended 31 March 2021

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted funds
Unrestricted general
funds
Unrestricted designated
funds
Net assets at 31 March
2021		 Operational
Fixed
Assets
Investments
Short term
investment
and cash at
bank
Other Net
Assets /
(Liabilities)
Total 2021
£
£
£
£
£
-
-
122,514
-
122,514
-
-
365,736
(212,535)
153,201
450,549
1,995,432
-
(5,315)
2,440,666
450,549
1,995,432
488,250
(217,850)
**2,716,381 **

PRIOR YEAR ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted funds
Unrestricted general
funds
Unrestricted designated
funds
Net assets at 31 March
2020		 Operational
Fixed
Assets
Investments
Short term
investment
and cash at
bank
Other Net
Assets /
(Liabilities)
Total 2020
£
£
£
£
£
-
-
56,993
-
56,993
-
-
226,190
(82,231)
143,959
467,251
1,722,472
-
(188,509)
2,001,214
467,251
1,722,472
283,183
(270,740)
2,202,166

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Notes to the Accounts For the year ended 31 March 2021

12. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

INCOME
Donations and legacies
Individual Giving
Other Trading Activities
Fundraising Activities
Income From Investments
Investment income
Rents received
Income From Charitable Activities
Child & Family Support Services
Volunteer Programme
Community Social Work
Groups & Workshops
Redhill Children's Centre
Early Help
Family Centre
Family Centre transition
Other income
Total income
EXPENDITURE
Expenditure on Raising Funds
Fundraising & Marketing
Expenditure on Charitable Activities
Child & Family Support Services
Volunteer Programme
Community Social Work
Groups & Workshops
Redhill Children's Centre
Early Help
Family Centre
Family Centre transition
Total Expenditure
Net income (expenditure) before
investments gains
Net gains on investments
Net income (expenditure) after
investments gains
Net movement in funds
Fund balances brought forward
at 1 April 2019
Funds balances carried forward
at 31 March 2020		 Unrestricted
funds
Restricted
funds
2020
Total
£
£
£
25,591
255
25,846
87,568
-
87,568
12,195
-
12,195
119,799
-
119,799
237,033
197,735
434,768
-
-
-
-
48,871
48,871
250
45,958
46,208
-
116,400
116,400
-
7,152
7,152
-
139,588
139,588
-
80,157
80,157
2,641
2,236
4,877
485,077
638,352
1,123,429
66,516
-
66,516
287,002
181,223
468,225
9,056
47
9,103
12,100
49,705
61,805
15,967
60,030
75,997
26,484
123,757
150,241
1,677
6,581
8,258
16,297
70,098
86,395
16,340
101,733
118,073
451,439
593,174
1,044,613
33,638
45,178
78,816
(16,060)
-
(16,060)
17,578
45,178
62,756
17,578
45,178
62,756
2,127,595
11,815
2,139,410
2,145,173
56,993
2,202,166

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Notes to the Accounts For the year ended 31 March 2021

13. RELATED PARTIES

During the year Southwark Diocesan Welcare received a grant of £185,583 (2020: £192,433) from Southwark Diocesan Board of Finance. Under the Articles of Association of the charity, the Anglican Bishop of Southwark has the right to nominate up to two Trustees and to approve the appointment of the Chair from among the Trustees. The Bishop’s nominees are Ruth Martin, the Diocesan Secretary, and Christopher Elliott.

Aggregated donations to the charity from trustees during the year amounted to £550 (2020: £440). There have been no other related party transactions and all trustees and key management personnel have signed related party declarations.

14. PENSION ARRANGEMENTS

Pensions Trust Growth Plan

The company 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 company 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.

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 company 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 2016 to £12,945,440 per annum (payable monthly and increasing 30 September 2025: by 3% each on 1st April) From 1 April 2016 to £54,560 per annum (payable monthly and increasing 30 September 2028: by 3% each on 1st April)

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

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Notes to the Accounts For the year ended 31 March 2021

14. PENSION ARRANGEMENTS (continued)

Pensions Trust Growth Plan (continued)

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 company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is 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 is recognised as a finance cost.

A pension provision has been included in the accounts of £159,098 in respect of the above liability to the scheme as at 31 March 2021 (2020: £188,509).

15. CAPITAL COMMITMENTS

There were no capital commitments at year end (2020: £nil).

16. OPERATING LEASE COMMITMENT

The charity had total commitments at the period end under operating leases expiring as follows:

Less than 1 year
1 – 2 years
Total		 2021
2020
£
£
5,950
2,316
18,521
1,544
24,471
3,860

17. POST BALANCE SHEET EVENTS

Since March 2020, the worldwide outbreak of the coronavirus pandemic (Covid-19) has caused extensive disruptions to organisations globally with major implications for operations as well as finances. The trustees acknowledge and recognise, as set out in the trustees’ report, the impact of the Covid-19 pandemic on the operations of the charity, its beneficiaries, partners, stakeholders and on the wider society, and have ensured that both resources and processes are in place to mitigate any disruption to the operations.

Our communications with current supporters and trusts have been very positive and our supporters remain motivated to continue to support our work with children and families although we are aware that many individual parish churches will have significantly fewer funds to distribute to other charitable organisations including our own. Welcare has successfully applied for short-term Covid-19 related funding during 2020-2021 although the medium to long-term impact on grant-making trusts including their available funds and future priorities are uncertain.

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