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2023-03-31-accounts

TRUSTEES’ REPORT & ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2023

Welcare is a charity based on Christian values, working with families and children up to age 13, in South London and East Surrey.

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

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Legal & Administrative Information

Trustees Christopher Elliott (Chair)
The Ven Moira Astin (until 30 January 2023)
Debbie Haith (until 25 July 2022)
David Nyirongo (until 25 April 2022)
Rachel Phillips
Paulette Tajah-Bell
Christopher Taylor (Honorary Treasurer)
Nicola Thomas
The Ven Greg Prior (from 28 November 2022)
Louise Villeneau (from 28 November 2022)
Chief Executive Officer Anna Khan
Management Team Fay Morris
Barbara Wilson
Catharine Adjei
Diane Taylor
Charity Number 1107859
Company Number 5275749
Registered Name Southwark Diocesan Welcare
Registered Office 24 Warwick Road
Redhill
Surrey, RH1 1BU
Correspondence 48 Union Street
Address London, SE1 1TD
Auditor TC Group
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex, BN44 3TN
Banker National Westminster Bank plc
London Bridge Branch
PO Box 35
10 Southwark Street
London, SE1 1TJ
Solicitors Russell-Cooke
2 Putney Hill
London, SW15 6AB

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott 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 2023

Our Centres

Registered Office

24 Warwick Road Redhill Surrey RH1 1BU

Central Office, South London Services and Correspondence Address

48 Union Street London SE1 1TD

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

Bromley Centre Community House South Street Bromley BR1 1RH

East Surrey

Welcare House 24 Warwick Road Redhill Surrey RH1 1BU

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

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 Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Contents Page
Chair’s Report 4
Trustees’ Report 5
Introduction 5
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 14
Governing Document 14
Trustees 14
Organisational Structure 15
Safeguarding Policy 15
Relationships 16
Key Management Personnel Remuneration Policy 16
Statement of Trustees’ Responsibilities 17
Independent Auditors’ report 18
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 Chair of Trustees: Christopher Elliott Company Number: 5275749 Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Welcome from the Chair

This has been my first full year as Chair of Trustees and it has been a pleasure and privilege to work with my fellow trustees and the team at Welcare. During the year we have had a number of changes on the Board: Debbie Haith, David Nyirongo and Ven Moira Astin have stood down. I would like to formally record my personal thanks to each of them for the contribution they have made to our work. We have welcomed Louise Villeneau and Ven Greg Prior to our number and I look forward to working with them in the future.

I am delighted to be able to report that we have now moved out of our previous head office in Lambeth and we are now located in Union Street, London SE1, where we are sharing premises with Southwark Diocesan Board of Education who we are working closely with on our Family and Schools Together (FAST) programme.

I would like to thank all those who have supported us financially including Surrey County Council who commission us to run the Family Centre in Redhill and provide Early Help services to children and families in the borough of Reigate & Banstead. The Early Help services are provided in partnership with East Surrey YMCA. The Diocese of Southwark has provided us with a grant for which we are extremely grateful. Others who have provided us with grants include City Bridge Trust, the Charity of Sir Richard Whittington, the PTL Foundation, the Netherby Trust, the Peter Harrison Foundation, Richmond Parish Lands Charity, St Faith’s Trust, Barnes Fund, Sherborne in the Community, Girdlers’ Company and a final contribution from the Leathersellers’ who funded our work in South East London for the last four years.

Throughout this year we have provided help and support to 518 families. None of this could have been possible without the dedicated work of Anna Khan, our Chief Executive Officer, and her wonderful team who I would like to take this opportunity to thank for their relentless efforts.

I feel that the Charity is well placed to continue with our work and to move forward after some challenging years not least of which has been the Pandemic. I believe we have an exciting time ahead and look forward to the year ahead.

Christopher Elliott Chair

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023. The trustees have adopted the provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities” issued in 2015 – Second 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 Chair of Trustees: Christopher Elliott 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 2023

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

As the country began to recover from the challenges of the coronavirus pandemic, we were faced with a cost-of-living crisis which has had a disproportionate impact on the families we serve. In response, we are focusing our charitably funded support services to alleviate the impact of:

To address the need, our dedicated professional staff work with individual children and their parents; we work to build and strengthen the positive elements of family lives and to prevent future problems by intervening early and breaking cycles before they become entrenched.

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Our Families and Schools Together pilot projects have enabled us to work in partnership with schools to address emotional needs of children particularly those who were at risk of exclusion because of their behaviour or those who have experienced domestic abuse in their home.

A particular highlight has been our annual Summer Activity Programme delivered in Lambeth during August. This programme is aimed at children who have been especially isolated and is made possible through the support of the Sherborne in the Community Trust.

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 the Family Centre and Early Help services commissioned by Surrey County Council. Our most significant charitably funded achievements of the last year include:

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

(ACEs) and how this relates to working in a trauma informed way. The training also examined how to build resilience, repair trauma responses and reviewed some fascinating research on child and teenage brain development.

Our loyal supporters organised a range of traditional fundraising events during the year including sponsored walks, the Rock Choir concert and community carol singing and raised over £16.9k from events, including matched funding from The Morrisons Foundation. (2022: £59,249)

We have been heartened that despite their own challenges over the year 56 individual churches supported our work in the last financial year and it has been a pleasure to be able to visit churches again and speak with supporters about our work.

Total income from Trusts and Foundations amounted to £192,951 (2022: £145,477).

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:

During the year we received referrals from a variety of sources including schools, children’s services and health service providers. Reasons for referral included child and parent emotional wellbeing, domestic abuse, and low self-esteem.

Our families received additional support in the form of supermarket vouchers, household items and children’s clothing worth over £38,000 in value.

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 engage with and capture service users’ change more

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

effectively. We use these insights to ensure we’re making a lasting difference to the children and families we support.

Plans for the Future

The review of Welcare’s charitably funded services continues as we seek to provide a more consistent service throughout our area of benefit and deliver key interventions and programmes that make most efficient use of our limited staff resources to make a lasting impact for children and families. The key elements include:

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Contributions from Volunteers

Our volunteers have always been a key, valued part of the charity. We are grateful for all the prayerful and financial support we receive throughout South London and East Surrey but especially from our Bromley Parish Reps and Greenwich Friends who have organised Lent lunches, concerts, walks and other fundraising events. We are particularly grateful to Christina Clark for organising the Rock Choir concert and generous matched funding from the Morrisons Foundation.

We also remember Alan Wiltcher who sadly died during the year – Alan had been a stalwart supporter of our work for over 40 years especially in the borough of Greenwich.

Our Trustees, Friends, and Parish Representatives donated 600 hours of their time to support Welcare during the year.

We are delighted to have been able to reintroduce volunteering with families at the East Surrey centre this year. We ran a Parenting Puzzle course for adults alongside a creche for their under 5s. Our playworker ran the crèche and was ably assisted by two volunteers.

Our regular outdoor maintenance and gardening volunteer left in July to work abroad. We put out a plea to our other volunteers and parish reps and someone nominated her husband who had recently retired. He started volunteering in August - it is lovely to have another husband and wife team on board.

On a regular basis we are very fortunate to have one amazingly versatile volunteer who comes in to sort harvest donations, assemble food bags, sort out printer cartridges and is willing to turn her hand to any other tasks our admin team finds. As a parish rep and volunteer she also organised the refreshments at the East Surrey Thanksgiving Service in June. We are incredibly grateful for her support.

Our week-long Lambeth summer project, funded by Sherbourne in the Community, received 12 hours of support from volunteers, including from a fitness instructor who led the children in outdoor physical activities and supported the group on a visit to Oval cricket ground.

Financial Review

Income for the year of £931k shows an increase of £72k compared with the previous year’s total of £859k.

Donations amounting to £31k were received from individual supporters (2022: £58k) and £81k from fundraising (2022: £68k). Investment income amounted to £15k (2022: £12k) and rental income of £126k was derived from properties (2022: £123k).

The principal funding sources of the charity were the Diocese of Southwark (South London Church Fund) and Surrey County Council. Grants received during the year over £25,000 include, City Bridge Trust, the Charity of Sir Richard Whittington, the PTL Foundation and the Netherby Trust. We are also grateful to the following trusts and foundations who generously supported our work including the Peter Harrison Foundation, Richmond Parish Lands Charity, St Faith’s Trust, Barnes Fund, Sherborne in the Community, Girdlers’ Company and a final contribution from the Leathersellers’ who funded our work in South East London for the last four years. We were grateful to Richmond Charities for their grant to us to support families in crisis and the Morrison Foundation for their matched funding. 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 Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Expenditure in the year was £941k (2022: £795k) including £494k of expenditure from restricted funds (2022: £463k).

The increase in income and expenditure has resulted in a deficit of £10k before losses on investments (2022: surplus of £64k before gains on investments).

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 2023 totalled £2,785k (2022: £2,811k) including £75k (2022: £102k) of restricted reserves and £2,476k (2022: £2,509k) 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 £245k. 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 £234k (2022: £200k). 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 2023 fixed asset investments were valued at £2,005k (2022: £2,016k) including £1,750k (2022: £1,750k) of investment properties. There were net losses on investments of £11k in the year (2022: net gains of £20k). 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.

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

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Fundraising Policy

Welcare undertakes a variety of fundraising activities to support our strategy of delivering better outcomes for children and families. We are registered with 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, 48 Union Street, London, SE1 1TD. We have not received any complaints about our fundraising practices.

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 the Board of Trustees. The trustees are responsible for overseeing all aspects of quality assurance and compliance relating to fundraising.

Principle Risks and Uncertainties

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.

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 Chief Executive is responsible to the Board for the management and implementation of the risk management strategy and reports on the 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

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Protection, Investment Policy etc. All Welcare’s policies are reviewed regularly and updated in line with changes in legislation, regulation and best practice.

Welcare has a business continuity plan which is reviewed annually. All staff are able to work remotely. A sub-committee of the Board, initially established to provide a rapid Board level response to the pandemic, can be reconvened at short notice to address a specific crisis.

Welcare’s income from its regular donors, supporting churches and principal funders remained stable throughout the financial year. However, like other charities we received more income from events and community fundraising. The grant from the Diocese of Southwark to Welcare was maintained at the 2021-2022 level during 2022-2023. We remained in receipt of ongoing funding from St Faith’s Trust, the PTL Foundation, the Charity of Sir Richard Whittington and City Bridge Trust.

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.
Develop sustainable
services independent of
local authority contracts

Diversify funding streams
and develop new
supporters

Promote regular giving
scheme

Improve communications
between charity and
supporters by producing
regular newsletters

Maintain a good local profile

Recent Board agreement to
use services of freelance
professional fundraiser

Review finances of all
services before making
decisions
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 WorkNest

Emphasise the advantages
of working for Welcare

Review salary levels and
role descriptions

Review staffing structure
and operational model to
increase resilience to

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott 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 2023

impact of short- and
medium-term staff changes
Operational Incident involving child protection or
safeguarding issue involving staff member
or volunteer resulting in harm to the child
and reputational damage.
Rigorous application and
annual review of
Safeguarding policy

Safer recruitment
processes

Mandatory safeguarding
training for all staff,
volunteers and trustees

DBS checks carried out for
all eligible staff, volunteers
and trustees

Robust supervision,
complaints and referral
processes

Foster awareness
throughout Welcare of the
duty to report

Safeguarding policies
updated to take account of
increased use of
smartphones/IT and staff
working from home
Environmental/External Welcare is required to absorb increased
costs (utilities, HR, supplier contracts etc)
while income remains static resulting in
budget deficits.
Reduce external costs
wherever possible.

Move to serviced offices

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 Christopher Elliott and Nicola Thomas.

The trustees do not receive any benefit but may be reimbursed for reasonable expenses properly incurred when acting on behalf of the charity. In 2022-2023 a total of £218.60 (20212022: £75.70) was paid to trustees in reasonable expenses.

An induction process provides new trustees with the detailed information about the charity required for their role. Following an independent review of Board effectiveness in May 2019,

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

the Board has held a number of facilitated planning sessions to inform development of the 20212024 Strategic Plan most recently in November 2022 at which the Board confirmed its strategy to:

Strategic planning is a standard item on each Board agenda. Trustees are encouraged to attend appropriate external training courses, including online safeguarding training for trustees, 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.

Organisational Structure

Following a review of the governance structure in May 2021, the Board agreed to merge the business of the Finance and Development and Services Committees with that of the Board. Previously, there had been 4 full Board meetings with each committee meeting 3 times a year.

The Board currently has eight members who now meet at least six times a year. The Board is responsible for the strategic direction and policy of Welcare. The new structure has enabled enhanced oversight of the charity’s finances alongside management of its strategic delivery objectives.

A sub-committee was established as a rapid response committee of the Board during the pandemic. The sub-committee has delegated authority to conduct business of the Board between the Board meetings and to report to the Board. It can be reinstated when required.

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 are members of the senior management team. Two whole staff training days took place June 2022 and January 2023.

eTapestry, our supporter database has enabled improved communication with donors and supporters and better data collection, management and protection.

Lamplight, our client management system has enhanced our ability to record output and outcomes and to report to funders.

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

Safeguarding Policy

Our safeguarding policy is available on our website and includes recommendations for maintaining safeguarding standards while using digital platforms to deliver individual and group work. The safeguarding policy is reviewed and updated annually by senior managers and then approved by the Board of Trustees. Welcare has a named Service Manager with responsibility for and oversight of all safeguarding matters within Welcare. A designated Board member holds Board level responsibility for safeguarding.

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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.

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

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TRUSTEES’ REPORT & ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

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 the auditor is aware of that information.

Auditor

The Board of Trustees appointed TC Group to undertake the audit for the financial year ending in 2023 and will consider the appointment of the auditor for 2023-2024 at the next scheduled Board meeting.

On behalf of the Board of Trustees

Christopher Elliott, Chair 17 July 2023

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

President: The Bishop of Southwark Chair of Trustees: Christopher Elliott Chief Executive: Anna Khan

P a g e | 17

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

Opinion

We have audited the financial statements of Southwark Diocesan Welcare (the ‘charitable company’) for the year ended 31 March 2023. 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 conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. 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

P a g e | 18

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

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 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.

The financial statements for Southwark Diocesan Welcare for the prior period were audited by the predecessor auditors Haysmacintyre LLP who issued an unqualified opinion on 8 July 2021.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

P a g e | 19

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

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-andassurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditorsresponsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

P a g e | 20

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

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Mark Cummins

for and on behalf of TC Group Statutory Auditors Office: Sussex

17 July 2023

P a g e | 21

Statement of Financial Activities

(including income and expenditure account) For the year ended 31 March 2023

Note
Unrestricted
funds
Restricted
funds
2023
Total
INCOME
£
£
£
Donations and legacies
Individual Giving
30,827
300
31,127
Other Trading Activities
Fundraising Activities
80,733
-
80,733
Income From Investments
Investment income
14,583
-
14,583
Rents received
126,044
-
126,044
Income From Charitable Activities
Child & Family Support Services
194,212
156,511
350,723
Groups & Workshops
16,536
-
16,536
Early Help
-
30,993
30,993
Family Centre
-
278,636
278,636
Other income
1,173
-
1,173
Total income
2
464,108
466,440
930,548

EXPENDITURE
Expenditure on Raising Funds
Fundraising & Marketing
48,843
-
48,843
Expenditure on Charitable Activities
Child & Family Support Services
276,842
179,011
455,853
Groups & Workshops
30,802
-
30,802
Early Help
7,207
26,489
33,696
Family Centre
83,451
288,371
371,822
Total Expenditure
3
447,145
493,871
941,016

Net income/(expenditure) before
investments gains/(losses)
16,963
(27,431)
(10,468)
Net (losses)/gains on investments
(15,697)
-
(15,697)
Net income/(expenditure) after
investments gains
1,266
(27,431)
(26,165)
Net movement in funds
1,266
(27,431)
(26,165)
Fund balances brought forward at
1 April 2022
2,708,902
102,353
2,811,255
Funds balances carried forward at
31 March 2023
2,710,168
74,922
2,785,090		 2022
Total
£
57,563
67,738
12,056
123,266
286,499
16,800
30,993
257,056
6,635
858,606
49,401
371,709
19,698
32,873
320,947
794,628
63,978
30,896
94,874
94,874
2,716,381
2,811,255

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 2023

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
Funds of the Charity
Restricted funds
10
Designated funds
10
Operational fixed assets
Fixed assets investments
Covid Recovery
Pension liability
General funds
Total funds		 2023
£
61,445
133,607
390,775		 2023
£
418,185
2,004,786
371,457
(9,338)
2,785,090
74,922
418,185
2,004,786
75,000
(21,791)
233,988
2,785,090		 2022
£
30,104
138,528
535,912		 2022
£
433,852
2,015,562
429,398
(67,557)
585,827
(214,370)		 704,544
(275,146)
2,811,255
102,353
433,852
2,015,562
93,783
(34,181)
199,886
2,811,255

The financial statements were approved by the Board and authorised for issue on 17 July 2023 and signed on its behalf by:

Christopher Taylor, Honorary Treasurer

Christopher Elliott, 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 2023

Cash flows from operating activities:
Net income for the year
Adjustments for:
Depreciation charges
(Gains)/Losses on revaluation of
investments
Dividends, interest & rents from
investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
Cash flows from investing activities:
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
Cash at bank and in hand		 2023
£
(26,165)
15,667
15,697
(140,627)
(31,341)
(118,995)		 2023
£
(285,764)
140,627
(145,137)
535,912
390,775
01 April
2022
£		 2022
£
94,874
16,697
(30,896)
(135,322)
24,958
69,791		 2022
£
40,102
135,322
140,627 135,322
Cash
flow
£
175,424
360,488
535,912
31 March
2023
£
535,912 (145,137) 390,775

P a g e | 24

Notes to the Accounts For the year ended 31 March 2023

1. ACCOUNTING POLICIES

(a) Statutory information

Southwark Diocesan Welcare is a charitable company, limited by guarantee, registered in England and Wales. The charitable company's registered number and registered office address can be found on the Legal and Administrative Information page.

(b) 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), the Charities Act 2011 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.

The financial statements are produced in sterling, which is the functional currency of the charity. Items are rounded to the nearest £.

(ii) The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment to a period of one year from the date of approval of these financial statements and have considered the impact of the coronavirus pandemic on the charity’s operations. In particular, the trustees have considered the charity’s forecasts and projections and have taken account of pressures on collections and other voluntary income. After making enquiries the trustees have concluded that there are no material uncertainties and there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

(c) 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.

(d) 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.

(e) 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.

P a g e | 25

Notes to the Accounts (continued) For the year ended 31 March 2023

1. ACCOUNTING POLICIES (continued)

(f) 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 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.

(g) 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.

(h) 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.

(i) 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.

(j) General funds – unrestricted

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

(k) Designated funds – unrestricted

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

(l) Restricted funds

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

P a g e | 26

Notes to the Accounts (continued) For the year ended 31 March 2023

1. ACCOUNTING POLICIES (continued)

(m) 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 is considered probable.

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

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

(o)

Charitable activities

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

(p) 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.

(q) Support costs

(r) 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.

(s) 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 under TUPE arrangements, Welcare has obtained admitted body status to the Local Government Pension Scheme (LGPS). Welcare has entered into a side agreement to restrict the charity’s exposure to the LGPS liabilities.

(t) Operating leases

Payments made under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

P a g e | 27

Notes to the Accounts (continued) For the year ended 31 March 2023

2. ANALYSIS OF INCOME

Current year
Donations
Donations and fundraising
Grants
South London Church Fund
Surrey County Council:
- Early Help
- Family Centre
Netherby Trust
The Charity of Sir Richard Whittington
City Bridge
PTL Foundation
Grants of under £20,000
Total Grants
Investment income & rent receivable
Groups & Workshops
Other income
Total income
Prior year
Donations
Donations and fundraising
Grants
South London Church Fund
Surrey County Council:
- Early Help
- Family Centre
BBC Children in Need
Netherby Trust
Grants of under £20,000
Total Grants
Investment income & rent receivable
Other income
Total income		 Unrestricted funds
Restricted funds
Total 2023
£
£
£
111,559
300
111,859
157,772
-
157,772
-
30,993
30,993
-
278,636
278,636
35,000
-
35,000
-
30,538
30,538
-
30,833
30,833
-
50,000
50,000
1,440
45,140
46,580
194,212
466,140
660,352
140,627
-
140,627
16,536
-
16,536
1,174
-
1,174
464,108
466,440
930,548
Unrestricted funds
Restricted funds
Total 2022
£
£
£
97,962
27,339
125,301
157,772
-
157,772
-
30,993
30,993
-
257,056
257,056
-
41,635
41,635
17,476
-
17,476
2,035
84,381
86,416
177,283
414,065
591,348
135,322
-
135,322
4,969
1,666
6,635
415,536
443,070
858,606

P a g e | 28

Notes to the Accounts (continued) For the year ended 31 March 2023

3. ANALYSIS OF TOTAL EXPENDITURE

Current year
Direct Staff
Costs
Direct Other
Costs
£
£
Expenditure on Raising Funds
Fundraising & Marketing
28,121
10,313
Expenditure on Charitable Activities
Child & Family Support Services
276,882
107,705
Groups & Workshops
23,266
1,548
Early Help
21,214
7,022
Family Centre
245,835
62,713
Total Expenditure
595,318
189,301
Prior year
Direct Staff
Costs
Direct Other
Costs
£
£
Expenditure on Raising Funds
Fundraising & Marketing
24,920
19,621
Expenditure on Charitable Activities
Child & Family Support Services
272,409
67,836
Groups & Workshops
19,493
-
Early Help
26,103
3,938
Family Centre
259,521
33,270
Total Expenditure
602,446
124,665
ANALYSIS OF SUPPORT COSTS
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
Movement in accrued pension liability
Staff costs allocated to Support
Total support costs		 Direct Staff
Costs
Direct Other
Costs
£
£
28,121
10,313
276,882
107,705
23,266
1,548
21,214
7,022
245,835
62,713		 Support Costs
Allocated
2023
Total
£
£
10,409
48,843
71,266
455,853
5,988
30,802
5,460
33,696
63,274
371,822
595,318
189,301		 156,397
941,016
Direct Staff
Costs
Direct Other
Costs
£
£
24,920
19,621
272,409
67,836
19,493
-
26,103
3,938
259,521
33,270		 Support Costs
Allocated
2022
Total
£
£
4,860
49,401
29,554
369,799
2,115
21,608
2,832
32,873
28,156
320,947
602,446
124,665		 67,517
794,628
2023
2022
£
£
10,500
9,300
219
76
41
-
7,361
6,904
18,121
16,280
20,449
81,724
13,982
(84,656)
103,845
54,169
156,397
67,517

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

P a g e | 29

Notes to the Accounts (continued) For the year ended 31 March 2023

4. RESULTS FOR THE YEAR

Expenditure includes: 2023 2022
£ £
Auditors’ remuneration: 10,500 9,300
Depreciation 15,667 16,697

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 £82,601 (2022: £78,860).

Staff costs were as follows:
Salaries and wages
Social Security costs
Pension contributions
Redundancy		 2023
£
624,779
50,901
29,012
1,832
706,524		 2022
£
586,344
40,636
36,539
-
663,519

One employee earned between £70,000 and £80,000 during the year (2022: none). No employee earned between £60,000 and £70,000 during the year (2022: one).

Pension contributions in the year for this employee amounted to £4,178 (2022: £4,011).

A redundancy payment of £1,832 was made in the year (2022: £Nil).

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

Fundraising and publicity
Charitable activities		 2023
No.
0.84
17.36
18.20		 2022
No.
0.60
17.07
17.67

The total number of staff employed at year end was 22 (2022: 22).

No member of the Board of Trustees received remuneration for their services during the year (2022: £nil). One trustee was reimbursed for out of pocket expenses for £219 (2021: £76).

P a g e | 30

Notes to the Accounts (continued) For the year ended 31 March 2023

6. OPERATIONAL FIXED ASSETS

Cost or Valuation
As at 1 April 2022
Disposals
At 31 March 2023
Accumulated depreciation
As at 1 April 2022
Charge for the year
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Operational
freehold land
and buildings
in use
Office
furniture &
equipment
Computer
equipment
Total
2023
£
£
£
£
582,221
6,021
19,865
608,107
-
(6,021)
(1,753)
(7,774)
582,221
-
18,112
600,333
153,525
6,021
14,709
174,255
10,511
-
5,156
15,667
-
(6,021)
(1,753)
(7,774)
164,036
-
18,112
182,148
418,185
-
-
418,185
428,696
-
5,156
433,852

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

7. FIXED ASSET INVESTMENTS

Balance at 1 April 2022
Gains on revaluation
Balance as at 31 March 2023		 Investment
properties
Other
investments
Total
2023
Total
2022
£
£
£
£
1,750,000
265,562
2,015,562
1,995,432
-
(10,776)
(10,776)
20,130
1,750,000
254,786
2,004,786
2,015,562

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. The trustees believe that the commercial property market has remained relatively static over the last 12 months and, therefore, do not consider the investment properties to have materially altered in value over that period. 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.

P a g e | 31

Notes to the Accounts (continued)

For the year ended 31 March 2023

8. DEBTORS

Prepayments
Accrued income
Other taxes & social security
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:
Deferred income
Pension provision		 Total
2023
£
605
52,970
7,870
61,445
Total
2023
£
7,583
183,925
7,429
2,980
12,453
214,370
219,184
(219,184)
157,129
157,129
Total
2023
£
-
9,338
9,338		 Total
2022
£
9,967
20,137
-
30,104
Total
2022
£
14,903
221,084
20,341
6,365
12,453
275,146
45,981
(45,981)
219,184
219,184
Total
2022
£
45,829
21,728
67,557

P a g e | 32

Notes to the Accounts (continued)

For the year ended 31 March 2023

10. MOVEMENT IN FUNDS

Current year
Restricted funds:
East Surrey
South London
Central
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 2022
Income
Expenditure
Transfers and
gains/(losses)
on
investments
£
£
£
£
91,458
328,725
(346,011)
-
10,895
134,465
(145,360)
-
-
3,250
(2,500)
-
102,353
466,440
(493,871)
-
433,852
-
-
(15,667)
2,015,562
-
-
(10,776)
93,783
-
-
(18,783)
(34,181)
-
-
12,390
2,509,016
-
-
(32,836)
199,886
464,108
(447,145)
17,139
2,811,255
930,548
(941,016)
(15,697)		 As at
31 March
2023
£
74,172
-
750
74,922
418,185
2,004,786
75,000
(21,791)
2,476,180
233,988
2,785,090
Prior year
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 2021
Income
Expenditure
Transfers and
gains/(losses)
on
investments
£
£
£
£
104,775
329,243
(342,560)
-
1,528
55,092
(53,271)
-
16,211
58,735
(67,400)
-
122,514
443,070
(463,231)
-
450,549
-
-
(16,697)
1,995,432
-
-
20,130
153,783
-
-
(60,000)
(159,098)
-
-
124,917
2,440,666
-
-
68,350
153,201
415,536
(331,397)
(37,454)
2,716,381
858,606
(794,628)
30,896		 As at
31 March
2022
£
91,458
3,349
7,546
102,353
433,852
2,015,562
93,783
(34,181)
2,509,016
199,886
2,811,255

P a g e | 33

Notes to the Accounts (continued) For the year ended 31 March 2023

10. MOVEMENT IN FUNDS (continued)

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 London – this fund is represented by a specific grant from the Charity of Sir Richard Whittington to deliver work in schools in Lambeth.

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 has met the needs of its beneficiaries by continuing to offer practical and emotional family support throughout the year. Trustees have focused on securing the future well-being of the charity and the surplus from 2021 was designated to a recovery fund to deliver pilot projects aimed at forging a stronger charity able to withstand a more challenging funding environment in the future. Welcare has rationalised its office accommodation requirements and moved to a flexible way of working whilst co-locating service delivery in schools. During 2022-2023 we completed the rationalisation of our office service delivery accommodation including the location of our Central Office to enable us to work more closely with the Diocese of Southwark and with schools.

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.

Transfers in funds represent programmes funded from unrestricted income.

P a g e | 34

Notes to the Accounts (continued)

For the year ended 31 March 2023

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Short term
Operational investment Other Net
Fixed and cash at Assets /
Assets Investments bank (Liabilities) Total 2023
£ £ £ £ £
Restricted funds - - 74,922 - 74,922
Unrestricted general
funds - - 449,460 (215,472) 233,988
Unrestricted designated
funds 418,185 2,004,786 - 53,209 2,476,180
Net assets at 31 March
2023 418,185 2,004,786 **524,382 ** (162,263) 2,785,090
PRIOR YEAR ANALYSIS OF NET ASSETS BETWEEN FUNDS
Short term
Operational investment Other Net
Fixed and cash at Assets /
Assets Investments bank (Liabilities) Total 2022
£ £ £ £ £
Restricted funds - - 102,353 - 102,353
Unrestricted general
funds - - 572,087 (372,201) 199,886
Unrestricted designated
funds 433,852 2,015,562 - 59,602 2,509,016
Net assets at 31 March
2022 **433,852 ** **2,015,562 ** 674,440 (312,599) 2,811,255

P a g e | 35

Notes to the Accounts (continued)

For the year ended 31 March 2023

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
Groups & Workshops
Early Help
Family Centre
Other income
Total income
EXPENDITURE
Expenditure on Raising Funds
Fundraising & Marketing
Expenditure on Charitable Activities
Child & Family Support Services
Groups & Workshops
Early Help
Family Centre
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 2021
Funds balances carried forward
at 31 March 2022		 Unrestricted
funds
Restricted
funds
2022
Total
£
£
£
30,224
27,339
57,563
67,738
-
67,738
12,056
-
12,056
123,266
-
123,266
177,283
109,216
286,499
-
16,800
16,800
-
30,993
30,993
-
257,056
257,056
4,969
1,666
6,635
415,536
443,070
858,606
49,401
-
49,401
248,110
123,599
371,709
2,898
16,800
19,698
2,832
30,041
32,873
28,156
292,791
320,947
331,397
463,231
794,628
84,139
(20,161)
63,978
30,896
-
30,896
115,035
(20,161)
94,874
115,035
(20,161)
94,874
2,593,867
122,514
2,716,381
2,708,902
102,353
2,811,255

P a g e | 36

Notes to the Accounts (continued) For the year ended 31 March 2023

13. RELATED PARTIES

During the year Southwark Diocesan Welcare received a grant of £157,772 (2022: £157,772) 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 Christopher Elliott and Nicola Thomas.

Aggregated donations to the charity from trustees during the year amounted to £20 (2022: £nil). 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 638 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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. 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 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

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

P a g e | 37

Notes to the Accounts (continued) For the year ended 31 March 2023

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 £21,791 in respect of the above liability to the scheme as at 31 March 2023 (2022: £34,181).

15. CAPITAL COMMITMENTS

There were no capital commitments at year end (2022: £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
3 – 5 years
Total		 2023
2022
£
£
16,040
5,840
15,336
11,680
588
2,434
31,964
19,954

17. POST BALANCE SHEET EVENTS

There are no post balance sheet events to report.

The trustees recognise that the future impact of the ongoing war in Ukraine is unknown, and that it has already contributed to an increase in the cost of living and energy.

The impact of increased utility costs for the charity will continue to be mitigated by staff working more flexibly from serviced office accommodation.

18. TAXATION

The charitable company is registered as a charity and all of its income falls within the exemption under Part 11 of the Corporation Tax Act 2010.

19. CONTROL

Throughout the year the charity was controlled by its trustees.

20. SHARE CAPITAL

The charity is a company limited by guarantee and has no share capital.

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