## **ANNUAL REPORT** 2022
“Alone we can do so little; **together** we can do so much”
_Helen Keller_
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## **CONTENTS**
## **Trustees' Annual Report (incorporating the Strategic Report)**
Welcome from the Chair of Trustees and Chief Executive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01 SJOG at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .02 Our Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .04 Financial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .06 Plans for Future Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .08 ESG Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
## **WELCOME**
## **SJoG is a charity where people support people.**
We know that the services that we provide change people’s lives, but we invest in measuring the impact of what we do, supporting this with research and then sharing our learning of what has worked, and just as importantly what hasn’t, with others, and particularly decision makers so that we can inform the next generation of services and can get better at targeting the resources that we have for maximum benefit.
We are immensely grateful to all of our colleagues, donors and supporters. Their contributions meant that in 2022 we were able to extend our services, whilst ensuring that all remained rated as ‘good’ or ‘outstanding’.
This year we had more Covid lockdowns, but we still saw the opening of more safe houses for people who have been subject to modern day slavery and the development of specialist autism services. It wasn’t all plain sailing though and a planned mental health service in Brighton and Hove did not come to fruition.
We’re a charity where people support people, and this year we’ve supported our colleagues through becoming a real living wage provider and through further developing our LOVED programme. We’re immensely proud of our colleagues and the difference that they make as they extend hospitality in the manner of our founder by saying, “Come in, you are most welcome. How can we be of help?”
Supporting communities continues to be a focus. We are now present in 50 communities across the country, and this will extend further in 2023 with planned developments in the North East, West Midlands and the South East.
We’re immensely proud of our colleagues and the difference that they make.
We’re not just present in communities, but we take an active part through working in partnership with local partners.
We’re not just present in communities, but we take an active part through working in partnership with local partners including other charities, statutory partners and universities.
## **TRuSTEES ANNuAL REpoRT**
(INCORPORATING STRATEGIC REPORT) for Saint John of God Hospitaller Services (SJOG)
Charity Commission registration number 1108428
Company limited by guarantee (registered in England, company number 05324279)
A continuing relationship with the University of Northumbria presented opportunities to share our approaches to innovation with an international audience; a partnership with Nottingham Trent University on ESG (Environmental, Social and Governance) reporting and University Hospital London in continuing to evidence the benefit of our services.
**EMMA GIBBONS PAUL BOTT** CHAIR OF TRUSTEES CHIEF EXECUTIVE
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**SJOG AT A GLANCE OUR PURPOSE: 01**
## **OUR VALUES:**
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COMPASSION
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## **HOSPITALITY**
**RESPECT**
We offer a welcome to those in need. Every day we say “come on in, you are very welcome. How can we help?”
The support that we offer is active kindness, caring and being willing to help.
We honour each person’s right to choose how they live, and ensure that we do not reduce their inherent dignity.
**MORE HELP TO MORE PEOPLE:**
In times of crisis we provide a place of safety and specialist support to help people rebuild their lives, learn new skills and move on to lead fulfilling lives. Working with health colleagues, our service in London tackles tuberculosis and offers a hospital at home to those without one.
SJOG has a long history of specialist dementia and nursing care for older people. We currently work with a number religious orders and congregations to support them in the care of their elderly members and management of their care homes.
We have a 140-year history of supporting people to live the lives they choose. We provide expert care and support to meet the needs and aspirations of people with learning disabilities, physical impairments, autism and complex needs.
SJOG is the UK’s largest provider of safe houses for people subject to modern day slavery and trafficking. We work with people to help them recover from their experiences, and to rehabilitate and rebuild their lives.
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Every day our colleagues extend
hospitality in the manner of our
founder by saying, “Come in, you
are most welcome. How can
we be of help?”
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02
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- **1** We will build supportive communities that recognise the needs and the abilities of all of its members.
- **2** We will ensure that we hear the voices of all members of the community.
- **3** We will support our communities to be of more help in their communities.
> **4** We will support our community to ensure fair representation from under-represented groups.
- **5** We will support our colleagues better, ensuring they know that they are valued and that they belong.
**OUR STRATEGY** This year was the first year of delivery on a new strategy ‘Doing Good’.
Doing Good was created by capturing the voices of the people in our community. It builds on the successes of what has gone before and focuses on what people say they want and what they need from SJOG as a charity, and that is a Community, Quality and Impact.
- **6** We will improve quality, embracing people’s lived experiences.
- **9** We will share what we know to influence practice and inform policy.
- **7** We will ensure that the people we are here to serve gain control over their lives and the decisions in SJOG.
- **10** We will be entrepreneurial to meet the need of communities.
- **11** We will support those in greatest need.
- **8** We will use technology to help people support people.
- **12** We will transition to becoming a net zero organisation.
The strategy is used to inform delivery across the charity. Each of our services and departments identifies how they will deliver and measure delivery across each of the 12 areas. To make sure that these annual business plans are live documents we create business plan posters for every service that demonstrate how the things that they have decided to do help deliver on our charitable purpose.
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## **FINANCIAL REVIEW** SJOG supports people and we are **03**
SJOG supports people and we are primarily funded through local authorities and central government, however an important part of what we do relies on fundraised income.
The sector remains a challenging environment to operate in, but closer relationships working with commissioners has led to SJOG receiving a fair rate for the care and support provided. The new services we create benefit from robust financial modelling, ensuring their viability and sustainability. Cash flow remains a priority and significant improvements continue to be made in credit control.
Our total income for the group in 2022 was £23.9 m (2021: £20.9m) as shown in the Statement of Financial Activities. Charitable expenditure for the group was £22.6m (2021: £18.1m) and the group generated a surplus of £1.3m (2021: £2.8m). The reserves for the group grew from £5.7m at the end of
**THE CHARITY IS NOW IN A STRONG POSITION TO SUPPORT PEOPLE, BOTH TODAY AND INTO THE FUTURE.**
## **TOTAL INCOME:**
## **RESERVES:**
2018[£17.6m]
£0.1m 2018
2019[£17.6m]
£1.4m 2019 £2.3m 2020 2021 2022
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£18m
2020
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£20.9m
2021
£23.9m
2022
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2021 to £7.0m at the end of 2022. Of these reserves £2.0m are restricted and £5.0m are unrestricted. £3.5m of the group’s reserves are held as fixed assets. The charity’s reserves grew from £5.0m at the end of 2021 to £6.3m at the end of 2022. Of these reserves £1.9m are restricted and £4.5m are unrestricted. £2.9m of the charity reserves are held as fixed assets. The trustees have a responsibility to hold a prudent level of reserves to ensure the sustainability of the charity.
The trustees have set a free unrestricted reserves target of up to £1.7m based upon a risk approach and in line with the charity’s reserve policy. Reserves are on target but we continue to keep this under review. This sum is necessary for day to day working capital and to cover potential financial risks and is in keeping with the Charity Commission’s recommendations and guidance. Including reserves of Good Shepherd Services, total free reserves are £2.5m.
The result of the turnaround in the financial performance of the charity has significantly strengthened the balance sheet. Good Shepherd became part of SJOG in October 2021 and so we report on the balance sheet of SJOG and the group position incorporating Good Shepherd.
The charity is now in a strong position to support people, both today and into the future.
## **Faisal is a 23-year-old man with autism.**
After many service breakdowns, Faisal was the first person to move into SJOG’s new autism-specific service called The Old Vicarage which is in Stockton-on-Tees.
SJOG’s Autism Quality of Life (ASQoL) practice model has enabled Faisal to have a full and active life. The ASQoL approach assists his support team in understanding his autism profile and how autism can impact his life, whilst the focused skills teaching, helps Faisal to develop his functional skills for independence.
Person-centred active support approaches have complemented Faisal’s life, and he is now an active member of his local community. He’s fun-loving and enjoys socialising and spending time with this family and support team. He likes going out for walks, days out by the sea and loves the trampoline built into the garden of his new home. He is also being supported to reconnect with this faith.
## **FAISAL**
**Life for Faisal is good!**
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**PLANS FOR FUTURE 04 PERIODS** On the face of it SJOG is a complicated organisation supporting older people, disabled people, people who need support with mental health, homelessness, as well as people who have been trafficked and subject to modern day slavery. But at our heart the charity is very simple, we provide housing and we provide support. **IN THE COMING YEAR WE WILL FOCUS ON:**
On the face of it SJOG is a complicated organisation supporting older people, disabled people, people who need support with mental health, homelessness, as well as people who have been trafficked and subject to modern day slavery. But at our heart the charity is very simple, we provide housing and we provide support.
How we can better 1 2 provide housing that is fit for the future and has less of an impact on the environment both in its construction and in its use. **RIT**
## **HOUSING**
On housing we aim to build a new service for people with autism. Working with a housing provider, we will create a purpose-designed model that can be replicated as we grow. The construction methods used will
minimise the buildings’ environmental impact both in its construction and in its use.
We will start the journey to becoming a registered provider of housing, and to continue the work on decarbonising of our current properties.
## **COMMUNITY**
This is the second year of ‘Do Good Day’, which gives our colleagues and the people that we are here to serve, the opportunity to volunteer in their community. Fittingly this corresponds with Saint John of God day on 8th March.
The cost of living crisis has had an impact on our colleagues and the people that we support, and we will work with them to mitigate the impact of this.
## **QUALITY**
Our quality, as externally assessed by CQC, is 100% ‘Good’ or ‘Outstanding’ across the organisation. The established ‘Outstanding Managers Network’ will continue to focus on improving external ratings.
As well as external assessment of our quality, we will continue to publish research papers and speak at national and international conferences so that others can benefit from both the successes and those elements that didn’t work in supporting the people that we are here to serve.
This period will see us further strengthen and utilise the skills of the Advisory Council, consisting of the people we are here to serve, and we will develop our experts by experience in quality assessment. A Colleagues Council is also in development to ensure that our colleagues have a voice in how their charity is run.
This year will see reaccreditation of ISO27001 for information security (which will become ISO27002), and we will become a registered provider of housing.
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PLANS FOR FUTURE PERIODS
## **IMPACT**
Following an investment in technology and the development of our quality auditing processes, our services are better placed than ever to demonstrate the impact of what they do.
As we move to a newer IT estate, we will clean and recycle our own retired IT, and gift this to our colleagues and the people we support as a means of reusing equipment that might not meet our needs but still has a useful life. Through this we will both be of benefit and raise the level of digital literacy. In 2021 we established an IT library and this will be further developed in the year.
SJOG, as well as being a service deliverer, is a purchaser of goods and services. We will continue the work started in 2021 to revisit our supply chain, review our interested parties register and again renew our due diligence checks which will include environmental factors.
Impact is both about the positive impact on the lives of the people that we are here to serve, and also on reducing our impact on the environments in which we are based. The charity’s response to the ESG agenda will be a focus in the year.
Our first ‘carbon garden’ will be developed at the Old Vicarage. We will also be measuring the reduction in food waste through the amount we donate to food banks and receive from our partners at Olallo.
## **GROWTH**
We have opened seven new services in 2022, including specialist autism services in Stockton-on-Tees, intensive housing management services in Enfield and Bradford, three new safe houses for people affected by modern day slavery, and a project to support 600 people displaced by the war in Ukraine.
Growth will be slower in 2023, but we will focus on disability and mental health services, including services to support people with complex support needs in the North East, and working in partnership with the Good Shepherd to deliver a community shop and café in Wolverhampton.
## **I was struck from the moment that I was offered the job how friendly people at SJoG were.**
I’m a mum of three children and live in Milton Keynes. Family is everything to me and I originally chose a career in technology to give me a pathway to flexibility so that I could work but also look after my children.
Achieving ISO27001, which is recognised worldwide, demonstrates to all our stakeholders that we have robust processes in place so that people can have faith that we are working hard to protect data. We work with vulnerable individuals for whom data theft could have significant consequences. I love working for an organisation that makes a difference to people’s lives, and where
My last role was an information security consultant, but I was ready for a new challenge. The role at SJOG seemed perfect – a small enough organisation to have an impact but big enough to have resonance.
I feel like I can make difference.
I was struck from the moment that I was offered the job how friendly people were. Barely two weeks into the job, I needed to take emergency compassionate leave. I was made to feel that my problems were SJOG’s problems, and I was able to go off and put my role on hold. This was hugely appreciated. I felt more than ever that I belonged to a family and that people here genuinely care and want to support each other. I value so much being able to have a good work life balance and this is properly encouraged.
My role of information governance and compliance manager is a new role. Information security and data protection isn’t new but my role will help to strengthen our position. More than ever we need to protect data, rather like we would protect our money. It’s incredibly precious and with unscrupulous individuals working harder than ever to steal and compromise personal data, we need to be make sure our security arrangements are as tight as they can be.
## **UGONWA ONWUNEME**
_Ugonwa joined us in September 2022 into a new role that is helping us strengthen our information security._
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40+ ideas
and innovations
our first
developed
days of additional Film
support available
730
to victims of modern-day slavery focussing on raising
in our 2 new safe houses awareness of MDS
Trailblazers launched
113
450
celebrates the
950
minutes of podcasts
Order’s 450th
hours and videos
anniversary of giving back to local aired in our autism
communities by colleagues
on Do Good Day awareness series
We are a
Living 350
Wage
2
£
Employer
signatures
550
from colleagues signing
up to Advisory Council’s
People’s Charter
new properties
70% of colleagues benefit from SJOG
placements offered under SJOG Homes for Ukraine Project becoming a Living Wage Employer supported by housing management services
m
3
views
across social
media
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## ESG SUMMARY **• ENVIRONMENTAL**
## **ESG SUMMARY 05**
## **ENVIRONMENTAL**
## **ENVIRONMENT**
## **ENERGY**
We published the results of a research project into environmental audits in early 2022 and have utilised the findings to build a scheme of works that will decarbonise the properties that we use.
In our updated environmental policy, we have undertaken to decarbonise our housing stock. We aspire to be carbon neutral and to reduce our energy usage. This includes making structural changes including improving insulation; the replacement of windows in our properties; renewable systems in all refurbishments; and to install solar panels in suitable locations. It also includes behavioural changes from our colleagues and the people which we are to support through information campaigns and a range of training.
**SJOG IS COMMITTED TO REDUCING WASTE**
SJOG ‘s strategy ‘Doing Good’ has a commitment to becoming a net-zero organisation; to eliminating or reducing our negative environmental impact; and to maximising the benefit from positive environmental opportunities for the charity, our colleagues and for the people that we are here to support.
## **WASTE**
SJOG is committed to reducing waste and aspires to sending zero waste to landfill by 2024. We are developing our understanding of the types and quantities of waste and how to track our progress. The environmental audit and research project has provided a baseline of the charity’s current impact.
**WE ASPIRE TO BE CARBON NEUTRAL**
_Róisín is one of SJOG’s trustees; she joined the board in December 2020 and this was her first trustee role._
**It may sound a cliché but SJoG really does do good.**
SJOG’s main purpose is to do good and this is at the forefront of all the board’s decision-making. It’s certainly a privileged seat to sit in and being part of the decisionmaking that yields positive results is extremely rewarding. It’s certainly exceeded expectations of that feel good factor.
I work as a private client solicitor and had been interested in taking up my first trustee role for some time. Following discussions with Paul [SJOG’s CEO], an interview with the board, and considering the values and purpose of SJOG, I knew this was absolutely the right fit for me.
It may sound like a cliché but SJOG really does do good.
I really didn’t know what to expect, and have to admit that at first, I felt a little bit ‘rabbit in the headlights’, but I received great advice and guidance from Paul and the team. The skill sets needed for both my roles complement each other well, and after just a few months in the role I was much more confident in making decisions to help steer the charity.
I joined at a particularly exciting time for the charity. The charity had undergone a turnaround and was coming into a much better place due to the fantastic work of the new EMT and trustees. It’s great to be part of keeping it going in the right direction.
**RÓISÍN O’DONNELL**
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ESG SUMMARY • SOCIAL
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## **SOCIAL**
We are an organisation that is driven by our values of Hospitality, Compassion and Respect. We say that the values on the wall are the same that you’ll see on the floor of any of our services and offices.
This year saw the Advisory Council develop a people’s charter and colleagues across the organisation signed up to this charter.
## **LOOKING AFTER OUR COLLEAGUES**
SJOG has developed a comprehensive package of support for our colleagues’ mental health. We have an aspiration to have Mental Health First Aiders in every service and office across the country. We operate Brightline – a support service for colleagues, run by colleagues, and an escalation process that provides access to professional counselling.
In 2022 the organisation invested in Optime, a wellbeing service that supports our colleagues’ emotional, financial and physical wellbeing.
## **GENDER BALANCE**
We have achieved 50% female representation on our boards and in our senior management team, and we are committed to improving the ethnic diversity representation on our board.
## **SJOG HOMES FOR UKRAINE**
In 2022, we recruited a team of people who had been displaced by the war in Ukraine to run a programme for other people displaced by the war. During 2023 we are expecting 600 people to be housed and supported in the UK.
**Supporting people** to live the lives they choose
**THE PEOPLE’S CHARTER STATES:**
You must be happy to Take time to get **1** work with me and smile **5** to know me Understand me You must have a good sense **2 6** and my needs of humour & be patient Respect me and Don’t bring problems to **3 7** my belongings work – bring solutions! Support my privacy Listen and value everyone **4 8**
Less paperwork **9** and more time with me
Ask if I am OK – **10** I will let you know Understand my **11** health needs
Advocate with me **12** not for me
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ESG SUMMARY **• SOCIAL**
## **SOCIAL (CONTINUED)**
Embracing the creativity and
**2022 ALSO SAW THE CREATION OF THE REACH PLATFORM.**
services to meet the needs of the people we support and their communities, and lead the way on social innovation projects. The learning materials and approach was developed and established in 2022 and cohorts developed initiatives to the pilot stage including Belong – Building Women's Trust.
## **LIFE COACHING FOR HOMELESS PEOPLE**
This year saw the completion of the pilot project exploring life coaching as a support programme for people experiencing homelessness. This was supported by a £5K grant from the Austin and Hope Pilkington Trust in 2022.
The findings showed that life coaching requires a different thought approach than that of traditional support. Support workers reported that although the method has some real benefits, people supported need to be further on their support journey to make the most out of a coaching methodology.
## **BELONG**
Belong is an initiative to provide those who seek refuge in the UK with a tailored welcome pack containing toiletries, sanitary products, list of contacts and specialised support centres for women, as well as other products like a clothing voucher and water bottle. The idea beyond the boxes is to build a women’s peer support network they can trust.
## **RESEARCH**
Research was presented to the 3rd International Informed Care Online Conference, Centre for Developmental and Complex Trauma on ‘Establishing an evidence based trauma-informed pathway for survivors of modern Slavery’.
This initiative was adapted for the Homes for Ukraine project, to give welcome packs to people and families moving to the UK who have been displaced by the war in their country.
## **REACH PLATFORM**
## **EMBRACING OUR COLLEAGUES’ KNOWLEDGE AND CREATIVITY**
REACH is a web-based platform to signpost survivors of modern day slavery to VCSE and support services and provide them with relevant, curated information in their own language providing independent access to the information they need to settle in the UK.
Trailblazer is a programme set up to help SJOG become more entrepreneurial by using the creativity and knowledge of our colleagues to develop or improve
**My story started back in Vietnam. I was part of a large family and my parents were very poor.**
Then one day a fire broke out in the house. I tried to escape but due to the smoke as I was unable to run and passed out. A fire fighter rescued me and took me to hospital. From there I was provided with accommodation and support from SJOG.
They borrowed money from some unscrupulous people to keep going, but unable to pay these men back, despite selling their house, my parents left. I have never heard from them since.
I left my home town too and headed to the south of Vietnam. These men found me and took me away. They put me in a truck and I travelled to various different countries before I arrived in the UK. I initially lived with four people from the UK until they moved me to London.
## **Now I am starting to rebuild my life.**
## **ANON**
Here I met a man who promised to find me a hiding place. I trusted and followed this man, but he turned out to be bad too and forced me to work for him – unloading and cleaning packages. It was really heavy work and I received no money, just somewhere to live and food, and food was only given if I finished my work. He beat me when I worked too slow for him.
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ESG SUMMARY **• GOVERNANCE**
## **GOVERNANCE**
**THE ARTICLES OF ASSOCIATION SET OUT THE CHARITABLE PURPOSES FOR PUBLIC BENEFIT IN THE FOLLOWING**
SJOG is the trading name of Saint John of God Hospitaller Services and is led and governed by a trustee board. The trustees are volunteers and give their time and experience freely.
SJOG operates throughout the UK and is a charity registered in England and Wales (Charity Commission registration number 1108428), a company limited by guarantee (registered in England, company number 05324279).
The charity is governed by its Articles of Association, which was last reviewed and revised in 2019.
- **ORGANISATIONAL PURPOSE**
- **LEADERSHIP**
- **INTEGRITY**
- **DECISION-MAKING, RISK AND CONTROL**
SJOG can have up to 12 trustees on the board, each of whom serve a threeyear term, after which they are eligible for re-appointment. The board met formally four times between January 2022 and December 2022. In addition, there were also eight committee meetings. All meetings were quorate and no member was absent for more than two meetings.
## **ORGANISATIONAL PURPOSE**
- **TRUSTEE BOARD EFFECTIVENESS**
The charity’s purpose is detailed in the charity’s governing documents. These Articles of Association state that the charity’s purpose is to meet need and to progress the aims of the Hospitaller Order of Saint John of God. The trustees are clear on this purpose and are mindful of these in decisionmaking.
- **INCLUSION AND DIVERSITY**
- **OPENNESS AND ACCOUNTABILITY**
There are two committees: **Finance, Audit and Risk** and **Quality and Risk.**
This year the level of assurance was aided by the work of the Advisory Council which comprises people who use the services that SJOG provides.
## **LEADERSHIP**
SJOG is both a registered charity and a company limited by guarantee. Trustees are both trustees of the charity and the legal directors of the company. The trustees have complied with their duty in accordance with the Charities Act 2011 to follow the Charity Commission’s guidance on the operation of public benefit.
The trustees are volunteers and bring a range of skills and experience to the charity. They delegate the day to day running of the charity and the delivery of the strategy to the chief executive, chief finance officer, chief operating officer and the chief development officer as the most senior managers in the charity, and hold them to account for the performance of the charity.
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We have brilliant people
in the charity supporting
other people who are at
points of crisis in their lives.
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## ESG SUMMARY **• GOVERNANCE**
## **INTEGRITY**
Integrity is about doing what is right and being open and transparent to demonstrate this.
Our trustees scrutinise the decisionmaking to ensure we meet the standards we set ourselves, as well as those set by regulators such as the Charity Commission, the Care Quality Commission and the Fundraising Regulator.
We record positive feedback as well as complaints, and declare fundraising complaints annually, though there were none in 2022.
The trustees and executive team review all declarations in line with the Charity Commission’s disqualification criteria guidelines, the accounting requirements for charities laid down in the Statement of Recommended Practice (SORP) and HMRC ‘fit and proper persons’.
To protect the public, the trustees decided to step away from face-to-face fundraising and consequently do not to use third party fundraisers. Donations are primarily from legacies, grantmaking trusts and corporate donors. There were no breaches of the Code of Fundraising Practice.
Saint John of God Hospitaller Services Group remains the sole member of the charity.
## **Transparency and Trust**
## **Conflicts of Interest**
As a charity, it is incumbent on SJOG to demonstrate that we use our supporters’ generous donations of time and money wisely. We have rigorous financial controls to ensure funds are monitored, tracked and go to the right places at the right time. These are regularly reviewed internally, and externally audited annually.
SJOG operates a conflict of interest policy for all trustees. Conflicts of interest are collated annually and new declarations of conflict of interest are made and recorded at the start of every formal meeting.
Integrity is about doing what is right and being open and transparent to demonstrate this.
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ESG SUMMARY **• GOVERNANCE**
## **INTEGRITY (CONTINUED)**
## **Modern Slavery and Human Trafficking**
SJOG employs colleagues to run and support complex services. They manage the difficult balance of making sure that they are delivering them as safely as possible whilst ensuring maximum benefit to the people that we are here to support.
As a charity directly supporting people who have been subject to modern slavery and human trafficking, SJOG is committed to ensuring modern slavery and human trafficking are not present in its supply chains. We are working with our partners and suppliers to ensure compliance with the UK Modern Slavery Act 2015.
SJOG undertakes a full and fair consideration of applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. We arrange training for employees who have become disabled persons while employed, and also consider the training and career development and promotion of disabled persons.
We have introduced, and will continue to develop, processes and procedures to ensure we understand our suppliers’ ethical, environmental and social practices.
## **Equality and Fairness**
## **Pay**
SJOG is supported by great volunteers with a range of professional and personal skills. The charity is also led by a volunteer trustee board.
SJOG’s pay policy was reviewed in 2020. In reaching decisions about levels of pay, the board receives reports on the prevailing market conditions, the pay practices in other similarly sized charities, the local market, relevant external benchmarks, our future plans and past performance.
**P**
We recognise that we have a financial responsibility to our colleagues and in 2022 became a Real Living Wage Organisation.
## **I had a short but meaningful experience at olallo Hostel.**
The reason I came here was as a result of an unfortunate event that happened to me unexpectedly, like other residents who have stayed here. I was hospitalised for a few weeks after suffering physical violence from my husband. When I recovered, I was aware that my bank account had been emptied by my husband. Since I was a foreigner and did not have any relatives or close friends in this country, when I was discharged from the hospital, I had no safe place to go and no money to stay.
During my stay, they met my many needs with the warmth of a family without expecting anything in return. The peaceful mood of the hostel residents I met here, who went through difficult times in their lives like me, proved to me once again that I was in the right place.
**I am so grateful to everyone who works and supports here.**
Being a well-educated and wealthy woman, I would never have guessed that one day I would be victimised by my husband in this way and be so helpless that I had nowhere to go.
## **MIRA***
_*Name has been changed_
I shared my situation with the hospital authorities. A few days later they placed me safely in Olallo House. Olallo’s manager, Pawel and Elena greeted me when I arrived. Their friendly and sincere approach really put me at ease during this difficult time.
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ESG SUMMARY **• GOVERNANCE**
## **INTEGRITY (CONTINUED)**
## **Gender pay Gap**
## **Ethnicity pay Gap**
SJOG has a commitment to fairness in recruitment, pay, promotion and development. We have a requirement to report in line with the UK Equality Act 2010 (gender pay gap information) Regulations.
We publish our ethnicity pay gap report each year and this is in line with government regulations for calculating gender pay gaps.
The ethnicity pay gap is the average difference in hourly rate of pay between white and black, Asian and minority ethnic colleagues.
In 2022, we were pleased to note that SJOG’s mean gender pay gap was significantly lower than that of other organisations and is smaller than the UK national average (7.1% compared to 15.4%: Office of National Statistics).
- In 2022 (as at 31 December) our mean ethnicity pay gap was 4.1%. It is lower than our gender pay gap and is above the UK average of 2.3% (2019 – Office of National Statistics).
We are not complacent and more work will be undertaken in the year. The details of the gender pay gap are published on the government’s designated website and SJOG’s website – sjog.uk
- 19.2% of our colleagues have told us they are from a black, Asian and minority ethnic background. This is above the national average of 13% (from the 2011 census).
- 8% of our colleagues - no data collected regarding their ethnicity.
We have an aspiration for our colleagues to reflect the communities that they work in and for this to be evident across the charity, particularly in senior roles. Achieving this will have a positive impact on the ethnicity pay gap.
## **pay principles**
Pay is reviewed consistently using the same approach for all colleagues, including the executive team and the chief executive. No individual performance bonuses are paid. Annual pay budgets take into account affordability, economic trends and external market pay movement and are agreed by the trustees during the setting and signing off of the annual budgets.
## **Senior pay Disclosure**
We recognise the recommendations made following the report of the inquiry into charity senior executive pay and guidance for trustees on setting remuneration by the National Council for Voluntary organisations. Consequently, we have provided additional information on the pay of the executive team.
In 2022, SJOG’s mean gender pay gap was 7.1% compared to a national average of 15.4%.
**97% TRAILBLAZER 305 of people** compliments received The first courses completed say they are treated with delivering **3 new pilot projects** in the last year respect and kindness
The first courses completed delivering **3 new pilot projects** and 3 more to come
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POLICY
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## **RESEARCH**
A total of **19 research studies** conducted and published **2 research papers** published in partnership with external organisations **3 national conference presentations** covering topics of homelessness and infection control **446 1 international conference** property works **presentation** on design completed and being an entrepreneurial charity **FUNDRAISED INCOME: 66 £1,350,513** and 19 projects supported **PROPERTIES 1295 This is an increase of 35%**
We received 49 complaints in the last year – all resolved as satisfactory
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SERVICES
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from Brighton to Teesside (In 2019 this was 25!)
In September 2021 we supported 961 people per month and we now support 1295 **This is an increase of 35%**
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ESG SUMMARY **• GOVERNANCE**
SJOG exists to facilitate changes in the lives of the people that we are here to serve.
## **Finance oversight**
## **DECISION-MAKING, RISK AND CONTROL**
**RISK AND CONTROL** The trustees are responsible for safeguarding the assets of the charity We want to be successful in what we do, and the group. This is enabled through and that success is reliant on making SJOG’s financial policies and good decisions and managing risk procedures. Compliance with these effectively. policies and procedures is mandatory We work with people: people with for all employees, honorary officials andvolunteers of SJOG. The board mental health issues, people who are delegates the implementation of that homeless and we provide services for strategy and the day-to-day people who have been subject to management of SJOG to the chief modern day slavery. The work that we executive, the executive team and do is not without risk. through to individual budget holders following a detailed scheme of SJOG exists to facilitate changes in the lives of the people that we are here to delegation that approves specified levels of expenditure.
SJOG exists to facilitate changes in the lives of the people that we are here to serve, and this can only be achieved by taking positive risks to get positive outcomes. We are fully committed to ensuring that these risks are managed so that the people supported, volunteers and colleagues are as safe as possible.
Each year budget holders put together a costed plan to deliver on the strategic aims of the charity. The plans are aggregated into departmental and then an organisational business plan.
The trustees approve both the business plan and the detailed annual budget, which defines specific projects and detailed departmental plans for the next financial year.
Our risk management arrangements and processes therefore have to be robust, which is why we have them externally audited, accredited and certified by CHAS (Contractors Health and Safety Assessment Scheme).
The finance department is also involved in any major project or programme of work, providing the necessary support to ensure the right financial decisions are made and on providing the necessary management reports to inform in year decision making.
Our key risks are contained within the risk register that is reviewed at each board meeting. The board also receives reports on our quality assurance systems and with the implementation of the Access integrated software, better information has reduced the risk in services and has resulted in a demonstrable improvement in externally regulated quality ratings.
## **Financial reporting**
There are two elements to financial reporting: reporting on annual report and accounts, and monthly accounts. The monthly accounts and associated reports are of sufficient detail to allow the executive team to make ongoing financial decisions.
## **Finance, Audit and Risk**
The Finance, Audit and Risk Committee is a standing committee of the trustee board and has delegated authority to act on behalf of the board in relation to the matters set out in its terms of reference. The Committee is chaired by a trustee with significant senior leadership and management expertise.
The Committee’s main duties are to:
- review and challenge the work of the executive team and of the internal and external auditors;
- provide the trustee board with an independent and unbiased view of the effectiveness and appropriateness of the financial reporting, internal controls, risk management, and regulatory compliance procedures of SJOG.
## **External Audit**
External auditors review SJOG’s annual financial statements and give an opinion on them. The board approves the appointment, remuneration, re-appointment and removal of the external auditors in relation to statutory audit arrangements.
## **Risk Management**
Effective risk management is also key to successfully delivering our strategy and developing SJOG for a sustainable future. We are now making better use of our risk data to help shape and prioritise SJOG’s future delivery of programmes and projects, providing a sharper focus on those things that present the greatest threats – and opportunities.
## **Financial Risk**
The most significant financial risks for SJOG are income uncertainty and the ability to operate services within the staffing budgets.
SJOG reviews its financial plans on a regular basis and manages these significant risks accordingly through income pipelines, budgetary control, programme management and capital planning. Income uncertainty has reduced significantly within the year and there has been a real focus on negotiating a fair rate for the care provided. This has led to a significant improvement in like for like income.
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ESG SUMMARY **• GOVERNANCE**
## **DECISION-MAKING, RISK AND CONTROL (CONTINUED)**
## **Health and Safety Risks**
## **Information Risks**
We have continued to improve our IT security this year, improving the defensiveness of our IT systems from unauthorised access or misuse.
We are fully committed to looking after our people and anyone who could be affected by our actions. To do this:
We have continued to improve information security management in the year so that we can protect all information assets to a consistently high standard.
The process of review and improvement as we prepared ourselves for IS0 27001 has strengthened our information governance framework and continues to improve our management of associated risks. This year saw the recruitment of a dedicated information security lead.
- our safety management system ensures health and safety is an integral part of how we work.
This includes security which can be applied through technology but perhaps more crucially the behaviour of the people who manage information. We support this through accreditation of the international standard for information management IS27001.
- health and safety training is mandatory for all colleagues and is supported by an ongoing programme of internal awareness campaigns.
- operational policies and procedures have all been reviewed in the year to ensure compliance with high standards.
- we continue to provide sufficient resources to support the implementation and assurance of policies.
**THE AIM OF OUR APPROACH IS TO PRESERVE:**
shall operate correctly, **CONFIDENTIALITY** according to 1 2 3
## **people Risks**
We are a charity of people supporting people. The challenge of recruiting colleagues has led to the improvement in pay and non-pay rewards, which form part of the LOVED (Living Our Values Every Day) programme.
We recognise that people have a choice about where they work and we have improved the information about the work that we do, and that we are a great place to work through our #goodwork campaign. This has improved both retention and recruitment rates.
## **Quality and Compliance**
We provide care and support to people. We are heavily regulated and we are committed to delivering a service that is exceptional, to reflect the value of each and every person that we work with. Our new quality framework has delivered ‘good’ and ‘outstanding’ ratings across all of services by our external regulators.
## **pandemic Risks**
Whilst the impact of Covid has abated somewhat, it has not gone away. As a charity we are part of the solution in meeting the health and social care needs of the Covid-19 pandemic and as such we expect our services to continue to operate.
Our Business Continuity Plans (BCP) have worked effectively and as the government advice has changed, so our BCPs have repeatedly evolved as well. At no point has the delivery of service been stopped by the pandemic, though we have developed new ways of supporting people.
We benefit from fundraising, but our core services are funded through statutory authorities and we envisage that this funding will continue.
Though hospitalisations in the UK are down and Covid has moved towards being an endemic rather than a pandemic virus, we have responded accordingly.
Levels of sickness for our colleagues have been affected but not to a point where they cause undue concern. The trustees have reviewed detailed forecasts and cash flows for the next twelve months which provide assurance that going concern is not an issue for the charity.
Detailed financial reporting is reviewed monthly by the executive management team and quarterly by the board. Income and costs are continually monitored.
We have great people and have continued to grow services thanks to our colleagues' desire to be of more help to more people. Our colleagues have been fantastic and we are working hard to keep them safe, and to support them so that they can continue to support others. The work that has been undertaken in the past years, supporting our colleagues better, ensuring that the charity is financially sustainable, building partnerships and investing in IT, all improves our preparedness for future pandemics.
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**peter is 93. He’s lived at Rockliffe Court since it opened on 28 october 1989. peter remembers this date and remembers watching it being built.**
Rockliffe Court is made up of self-contained accommodation, with support on hand 24hours a day, and a range of communal areas where all residents can come together if they wish. Peter loves the lounge – a shared area where he enjoys chatting to his friends and ‘neighbours’.
Rockliffe, for a period, was managed by other providers but in 2022 came back under the auspices of the Saint John of God family and is now managed by SJOG.
Peter’s memories are long, but some of his favourite memories include the day he got his key to his front door – the first time he’d had his own front door, and getting the monkey puzzle tree for his 80th birthday, which has been planted so he can see it from his bedroom.
Peter’s life in care began at the age of 14, in accommodation run by nuns, but his move a year later to being cared for by Brothers of the Hospitaller Order of Saint John of God was where he felt happier. His first home with the Brothers was at St Joseph’s, Osterley Park in Lancashire, followed by a move to Barvin Park in Hertfordshire and then to St. Cuthbert’s in Hurworth, near Darlington – all institutional models of care owned and managed by the Hospitaller Order.
**I like it here, I like being able to come and go as I want; I like the staff – they are all nice; everyone is nice.**
From here he was able to watch his new home being built – a new model of care where people were able to live independently.
## **PETER**
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ESG SUMMARY **• GOVERNANCE**
## **TRUSTEE BOARD EFFECTIVENESS**
## **Board Meetings**
Any decision or action is aligned with the
The trustee board meets formally at least 4 times a year. We have standing agenda items covering strategy, performance, risk and compliance matters.
Trustee recruitment is underway using an external organisation to ensure an open process. We have worked with this external organisation before and previous rounds have delivered a better gender balance on the board and whilst the board better reflects the communities that we work in, there is more to do. Due to the retirement of current trustees, it is envisaged that three new trustees will join the board in 2023.
Whilst the chief executive and executive team are present at the trustee board meetings, they do not have any voting rights. Decisions lie with the trustees.
Once a year, trustees and the executive team meet to discuss the strategic opportunities and risks we may face in the future.
## **Independence of Thought**
SJOG ensures that it can demonstrate that any decision or action is aligned with the delivery of our charitable aims and there is no personal or individual bias. All trustee board decisions are recorded in a decision log at the end of each meeting’s minutes. These are reviewed at the following board meetings.
## **Trustee Board Skills and Knowledge**
For the trustees appointed in the year, the induction process created in 2020 was again used to provide formation on the history of the charity, the Order and the life of Saint John of God. The induction covers governance, trustees’ role requirements, core responsibilities, as well as the strategy, performance and structures within the charity.
## **Length of Service**
Trustee board members serve a threeyear term and may be reappointed for up to a further two terms. We aim to match the skills on the board to our strategic goals and business plan needs as well, and the use of the Institute of Directors’ framework focusing on skills, knowledge and mind-set.
Trustees are briefed throughout the year on changes to regulation and standards throughout the year as part of the board meeting papers. Examples of this include our review and implementation of information governance arrangements and the trustees’ new roles with regards to ISO27001 accreditation.
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We get better at
supporting people
by learning from the
successes, and from
our failures.
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Our values encourage
us to be compassionate,
strive for justice and operate
in an environment where
.
we respect each other
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## ESG SUMMARY **• GOVERNANCE**
## **INCLUSION AND DIVERSITY**
## **Gender Balance**
Historically the board has been made up of Brothers from the Hospitaller Order of Saint John of God. This has meant that the board has been exclusively male, though there has been an opening up to people who are not Brothers of the Order.
Due to reviews and progress made over the past three years, there are five women and five men on the board. Emma Gibbons became Chair of Trustees of SJOG in December 2020 taking over from Brother Donatus Forkan.
The Advisory Council produces films to inform colleagues and trustees, and spoke at the charity’s conference.
**ACROSS THE CHARITY 76% OF COLLEAGUES IDENTIFY AS FEMALE.**
## **Ethnicity**
Across the charity 76% of colleagues identify as female.
We have an aspiration for our colleagues to reflect the communities that they work in, and for this to be evident across the charity, particularly in senior roles. Achieving this will have a positive impact on the ethnicity pay gap. The starting point will be an audit and the creation of a working group focusing on the structure and cultures within the charity to eliminate inequality. Work began on this in 2021, and the creation of internal social media was seen as a means of delivering this. Leads were identified and initial plans put in place, but due to a change in personnel the work has not progressed as quickly as hoped and the body of work will now fall into 2023.
## **Hearing the voices of the people we support**
The strategy included a drive to better hear the voices of the people we are here to serve. The Advisory Council of people that we are here to serve was created in 2020. The initial plan was that they would meet in the weeks before the board meeting to review the agenda and papers and offer their comments on matters going to the board, so that their voices can be heard when trustees come to make decisions.
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76%
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The Advisory Council have however decided to take a different path and instead have started a process of review of policies and practices within the charity, and have created a People’s Charter.
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THE COMMUNITIES
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In time, the Advisory Council will undertake an annual audit of each regulated service and form part of an expert by experience panel looking at the culture of our services.
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ESG SUMMARY **• GOVERNANCE**
Our values encourage us to be compassionate,
## **Safeguarding**
## **OPENNESS AND ACCOUNTABILITY**
SJOG’s safeguarding policy was rewritten and strengthened in 2019 and reviewed in 2021. This and the code of conduct apply across the whole organisation and are supported by a range of policies and procedures to reduce the risk of harm to beneficiaries, supporters, colleagues and volunteers.
We strive to be open in our charitable work and accountable for our activities and actions. We aim to keep our communities, supporters and stakeholders appropriately informed of our work, and hope that with their support and engagement we can deliver on our purpose providing real public benefit.
We work with some of the most vulnerable adults and families, and all of our colleagues are therefore trained in safeguarding. In 2021 we introduced e-learning modules around safeguarding to supplement the faceto-face training that is already in place. The e-learning provides an auditable record of knowledge and competence in safeguarding and is mandatory across the charity.
Each year we openly share our work and the progress we have made in our annual report, in an annual review and we publish our research papers and publications on our charity website and in other public communications.
## **Raising Concerns**
We have reviewed and strengthened There are lots of ways for SJOG people to flag a concern, from starting with a the reporting lines, and improvedreporting mechanisms, ensuring that simple conversation with a colleague we notify and work with statutory and, if necessary, chatting to a linepartners. We work closely with partner manager, through to using the services organisations to help ensure that of the grievance or whistle-blowing children, vulnerable adults and their process. families receive appropriate community support.
Our values encourage us to be compassionate, strive for justice and operate in an environment where we respect each other. Speaking up is an important way of doing this. All SJOG colleagues and volunteers agree to behave by the Colleagues Code of Conduct or Volunteer Code of Conduct.
## **Feedback**
We continue to record and report on complaints and compliments we receive, and we review this information in reports to the trustee board and the two committees. Our focus in 2023 will be on further developing the work undertaken in 2021 and 2022 on improving our trend analysis to target areas for improvement.
The coming year will see the creation of a colleagues council to fulfil a similar role to the work of the advisory council. The work of the advisory council provides a further level of assurance.
## **STATEMENT OF DISCLOSURE TO AUDITOR**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also directors of Saint John of God Hospitaller Services for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting
In so far as the trustees are aware at the time of approving our trustees’ annual report:
- There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the charity’s auditor is unaware, and
- The trustees, having made enquiries of fellow directors and the charity’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Standard 102: _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:
RSM UK Audit LLP has indicated their willingness to continue as auditor.
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The Trustee Report has been approved by order of the board of trustees.
Approved by the trustees on: 7 June 2023
Emma Gibbons Chair of Trustees
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## Independent Auditor's Report
TO THE MEMBERS OF SAINT JOHN OF GOD HOSPITALLER SERVICES
## **opinion**
In our opinion the financial statements:
We have audited the financial statements of Saint John of God Hospitaller Services (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Charity Balance sheet, the Consolidated Balance Sheet, the Consolidated Statement of Cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
• give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 group and parent 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 group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **other information**
The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine
whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report and the Strategic Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
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## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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.
## **The extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk 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, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:
- obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the group and parent charitable company operates in and how the group and parent charitable company are complying with the legal and regulatory frameworks;
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
## **use of our report**
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, and the parent charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.
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.
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the Care Act 2014 and the Data Protection Act 2018. We performed audit procedures to inquire of management whether the group is in compliance with these law and regulations and inspected correspondence with regulatory authorities where appropriate.
## **Claire Leece**
(Senior Statutory Auditor)
The group audit engagement team identified the risk of management override of controls and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed in relation to management override of controls included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates. Audit procedures performed in relation to income recognition included but was not limited to verification to third party supporting documentation, and analytical review of income based on supporting documentation, and reviewing income transactions around the year end to consider if it has been recorded in the correct period .
For and on behalf of RSM UK Audit LLP, Statutory Auditor
Chartered Accountants 1 St. James' Gate Newcastle upon Tyne United Kingdom NE1 4AD
Dated: 13 June 2023
A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at
**http://www.frc.org.uk/auditorsresponsibilities.**
This description forms part of our auditor’s report.
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## Consolidated Statement of Financial Activities Including Income and Expenditure Account
FOR THE YEAR ENDED 31 DECEMBER 2022
Unrestricted Restricted TOTAL TOTAL funds funds 2022 2021 Notes £’000 £’000 £’000 £’000 **Income and endowments from:** Donations and legacies 3 93 377 470 2,151 Charitable activities 4 19,383 3,892 23,275 18,506 Other trading activities 5 57 - 57 114 Investments 6 7 - 7 - Other income 7 102 - 102 119 **Total income 19,642 4,269 23,911 20,890**
## **Expenditure on:**
Raising funds 8 388 9 397 287 Other costs 8 25 1 26 38 Charitable activities 9 18,001 4,186 22,187 17,772 Other finance costs 5 - 5 - **Total resources expended 18,419 4,196 22,615 18,097 Net incoming/(outgoing) resources before** 1,223 73 1,296 2,793 Gross transfers between funds 109 (109) - - **Net movement in funds** 1,332 (36) 1,296 2,793 Total funds brought forward 3,720 2,028 5,748 2,259 Funds gifted from Good Shepherd - - - 696 **Total funds carried forward 5,052 1,992 7,044 5,748**
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
## Charity Balance Sheet
AS AT 31 DECEMBER 2022
||2022||2021|
|---|---|---|---|
||Notes £’000|£’000 £’000|£’000|
|**Fixed assets**||||
|Intangible assets|13|113|151|
|Tangible assets|14|2,868|2,633|
|||**2,981**|**2,784**|
|**Current assets**||||
|Debtors|15 2,610|1,761||
|Cash at bank and in hand|2,813|2,909||
||**5,423**|**4,670**||
|**Creditors:**||||
|**amounts falling due within oneyear**|16 (1,814)|(2,103)||
|Net current assets||3,609|2,567|
|Total assets less current liabilities||6,590|5,351|
|**Creditors: amounts falling due**||||
|**after more than oneyear**|17|(302)|(299)|
|Net assets||6,288|5,052|
|**Income funds**||||
|Restricted funds|20|1,841|1,728|
|Unrestricted funds||4,447|3,324|
|||**6,288**|**5,052**|
The financial statements were approved by the Trustees on 7 June 2023.
E Gibbons Chair of Trustees
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## Consolidated Balance Sheet
AS AT 31 DECEMBER 2022
||2022||2021|
|---|---|---|---|
||Notes £’000|£’000 £’000|£’000|
|**Fixed assets**||||
|Intangible assets|13|113|151|
|Tangible assets|14|3,476|3,237|
|||**3,589**|**3,388**|
|**Current assets**||||
|Debtors|15 2,676|1,836||
|Cash at bank and in hand|3,172|3,165||
||**5,848**|**5,001**||
|**Creditors:**||||
|**amounts falling due within oneyear**|16 (1,937)|(2,142)||
|Net current assets||3,911|2,859|
|Total assets less current liabilities||7,500|6,247|
|**Creditors: amounts falling due**||||
|**after more than oneyear**|17|(456)|(499)|
|Net assets||7,044|5,748|
|**Income funds**||||
|Restricted funds|20|1,992|2,028|
|Unrestricted funds||5,052|3,720|
|||**7,044**|**5,748**|
## Statement of Consolidated Cash Flows
AS AT 31 DECEMBER 2022
|2022|2021|
|---|---|
|Notes £’000 £’000 £’000|£’000|
|**Cash fows from operating activities**||
|Cashgenerated from operations 22 696|2,249|
|**Investing activities**||
|Purchase of intangible assets (14) -||
|Purchase of tangible fxed assets (653) (1,874)||
|**Net cash used in investing activities**(667)|(1,874)|
|**Financing activities**||
|New fnance - 327||
|Loan repayments (22) -||
|**Net cash generated (used in)**
**/from fnancing activities**(22)|327|
|**Net increase in cash and cash equivalents**7|702|
|Cash and cash equivalents at beginningofyear 3,165|2,207|
|Cash acquired ongift of Good Shepherd -|256|
|**Cash and cash equivalents at end of year 3,172**|**3,165**|
The financial statements were approved by the Trustees on 7 June 2023.
E Gibbons Chair of Trustees
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## Notes to the Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2022
## **1. ACCouNTING poLICIES**
## **Charity information**
Saint John of God Hospitaller Services is a charitable company limited by guarantee and has no share capital. The registered office is Suite 1-3 Yarn, Lingfield point, Darlington, County Durham, DL1 1RW
## **Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)”. The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £'000.
## **Basis of consolidation**
The consolidated financial statements incorporate those of the Company, Saint John of God Hospitaller Services, and Good Shepherd Services (the charity for which it is the “sole” member).
All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements the subsidiary to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances, and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
## **Going concern**
The trustees have examined the appropriateness of preparing the financial statements on the going concern basis. Cash generation has increased in the year and cash balances remain positive at the year end and with no utilisation of the overdraft facility at the year-end. They have considered the statement of financial activities, balance sheet and cash flow forecast for a period in excess of twelve months from the date of approval of these accounts and having regard to the projected cash requirements of the charity, the trustees believe it is wholly appropriate to continue to prepare the financial statements on a going concern basis.
## **Charitable funds**
The charity's unrestricted funds consist of funds that the charity may use for its charitable objectives at the trustee's discretion.
The trustees of the charity may put aside part of the accumulated funds to meet specific future expenditure. As a general principle, these funds were given or raised with projects in mind, but their use is not restricted. The trustees take the view that use of such funds should be designated.
Any income given to the company for a specific purpose has been separately identified so as to ensure that it is spent as the donor dictated.
## **Incoming resources**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income includes:-
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Donations are recognised when receivable.
## **Charitable activities**
Grant income: Grant income is recognised when the charity is entitled to receipt.
Religious management services: Income is recognised when the service has been delivered.
Accommodation and support and specialist housing support: Are recognised when the services are delivered or the beds / housing vacancies are occupied or agreed funded voids have crystallised.
Modern day slavery: Income is recognised when the service has been delivered.
## **Raising funds**
Consultancy income: Is recognised when the services have been completed and invoiced.
Community Centre income: All such income is accounted for on completion of the relevant facility usage.
## **Investment income**
Investment income is accounted for on an accruals basis.
## **Donated services**
Income is recognised for donated rent at the market rate with a corresponding cost recorded within expenditure. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised. Refer to the Trustees' Annual Report for more information about their contribution.
## **other income**
Other income is recognised when the charity is entitled to receipt.
## **Resources expended**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. Expenditure is accounted for on an accruals basis. Irrecoverable VAT is included with the expenses items to which it relates. Resources expended comprise:-
## **Raising funds**
These include salaries and directly attributable overheads.
## **Charitable activities**
Includes all direct salaries and other costs incurred in delivering the charity's charitable activity of delivering care services, together with the costs directly associated with the governance of the charity, including legal and regulatory compliance and strategic planning and also an appropriate proportion of the central and regional support costs of the organisation.
## **other**
Consultancy costs included the related salary costs.
## **Support costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. These represent direct finance, human resources, IT and property service costs incurred by the organisation in carrying out its activities. Allocations of support costs are based on a pro rata of direct expenditure for different activities.
## **Intangible fixed assets other than goodwill**
Intangible assets are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised at their expected useful economic lives on a straight line basis as follows:
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software - 5 years
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## Notes to the Financial Statements (Continued) FOR THE YEAR ENDED 31 DECEMBER 2022
## **1. ACCouNTING poLICIES**
(Continued)
## **Tangible fixed assets**
Tangible fixed assets are initially measured at cost, or in cases where fixed assets have been donated to the Saint John of God Hospitaller Services, at valuation at the time of acquisition. The charity's policy is only to capitalise items with an individual or collective value (where it is a group of assets) exceeds £1,000.
Freehold land and assets in the course of construction are not depreciated.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings Term of the lease
Freehold property 4 – 25 years
Fixtures and fittings 3 to 10 years
Motor vehicles 4 – 8 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset,and is recognised in net income/(expenditure) for the year.
## **Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
## **Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## **Basic financial assets**
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## **Basic financial liabilities**
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
## **Reduced Disclosure options**
In accordance with FRS 102, the charity has taken advantage of the exemptions from the following disclosure requirements;
Section 7 ‘Statement of Cash Flows’ – Presentation of a Statement of Cash Flow and related notes and disclosures (in relation to the charity’s own statement of cash flows – a consolidated statement of cash flows is presented in these financial statements).
## **Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
## **Termination benefits**
As a charity we may be committed, by legislation, by
contractual or other agreements with employees or their representatives or by a constructive obligation based on business practice, custom or a desire to act equitably, to make payments (or provide other benefits) to employees when it terminates their employment. Such payments are termination benefits.
Termination benefits are employee benefits payable as a result of either:
- an entity's decision to terminate an employee's employment before the normal retirement date; or
- or an employee's decision to accept voluntary redundancy in exchange for those benefits.
## **Retirement benefits**
The company makes available a contributory money purchase scheme which all employees can join. This is administered by Scottish Equitable and each person has their own independent pension policy. The charge for the year represents contributions payable in the year.
## **2. CRITICAL ACCouNTING ESTIMATES AND JuDGEMENTS**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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## **3. DoNATIoNS AND LEGACIES**
Unrestricted Restricted TOTAL TOTAL funds funds 2022 2021 £’000 £’000 £’000 £’000 **Donations and gifts** Hospitaller Order of Saint John of God - - - 562 Other 93 377 470 1,589 **93 377 470 2,151 For the year ended 31 December 2021** Hospitaller Order of Saint John of God 562 - 562 Other 402 1,187 1,589 **964 1,187 2,151**
## **5. oTHER TRADING ACTIVITIES**
2022 2021 £’000 £’000 Trading income 57 114
## **6. INVESTMENTS**
2022 2021 £’000 £’000 Bank interest 7 -
## **7. oTHER INCoME**
## **4. CHARITABLE ACTIVITIES**
Accommodation Specialist Religious Good TOTAL TOTAL and support Housing Management Shepherd 2022 2021 Support Services £’000 £’000 £’000 £’000 £’000 £’000 Charitable activities 8,409 10,885 3,417 564 23,275 18,506 **Analysis by fund** Unrestricted funds 8,039 10,843 - 501 19,383 Restricted funds 370 42 3,417 63 3,892 **8,409 10,885 3,417 564 23,275 For the year ended 31 December 2021** Unrestricted funds 5,155 9,631 - - 14,786 Restricted funds 1 - 3,719 - 3,720 **5,156 9,631 3,719 - 18,506**
2022 2021 £’000 £’000 Other income 102 1 Insurance claim income - 2 Coronavirus Job Retention Scheme Grants - 116 **102 119**
## **8. RAISING FuNDS**
2022 2021 £’000 £’000 Direct costs 184 114 Staff costs 213 173 **397 287 other costs** Direct costs 8 33 Depreciation and impairment 18 5 **26 38 423 325**
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## **9. CHARITABLE ACTIVITIES**
Accommodation Specialist Religious Good TOTAL TOTAL and Support Housing Management Shepherd 2022 2021 Support Services Care Services £’000 £’000 £’000 £’000 £’000 £’000 Staff costs 4,985 3,742 2,374 - 11,101 9,998 Depreciation and impairment 178 186 3 - 367 258 Activities directly undertaken 1,841 4,039 423 754 7,057 4,678 **7,004 7,967 2,800 754 18,525 14,934** Share of support costs (see note 10) 1,354 1,768 512 - 3,634 2,814 Share of governance costs (see note 10) 10 14 4 - 28 24 **8,368 9,749 3,316 754 22,187 17,772 Analysis by fund** Unrestricted funds 8,103 9,599 7 292 18,001 Restricted funds 265 150 3,309 462 4,186 **8,368 9,749 3,316 754 22,187**
## **For the year ended**
**31 December 2021** Unrestricted funds 5,127 8,391 8 - 13,526 Restricted funds 20 313 3,913 - 4,246 **5,147 8,704 3,921 17,772**
## **10. SuppoRT CoSTS**
Support Governance 2022 2021 Basis of allocation costs costs £’000 £’000 £’000 £’000 Staff costs 2,630 - 2,630 1,931 Depreciation and amortisation 79 - 79 61 Legal and professional 33 - 33 34 Sp ecific allocation IT 254 - 254 383 Sp ecific allocation Finance 180 - 180 104 Sp ecific allocation Property 115 - 115 57 Sp ecific allocation p Exec office 187 - 187 143 S ecific allocation HR 74 - 74 33 Sp ecific allocation Admin 82 - 82 68 Sp ecific allocation Audit fees - 28 28 24 Governance **3,634 28 3,662 2,838 Analysed between** Charitable activities **3,634 28 3,662 2,838**
Support costs have been allocated to the different charitable activities on the basis of the income received for each activity. This is on the basis that it provides the fairest reflection of where the support is given. Governance costs includes payments to the auditors of £28,000 (2021 - £24,000) for audit fees.
## **11. NET MoVEMENT IN FuNDS**
2022 2021 £’000 £’000 Net movement in funds is stated after charging/(crediting) Fees payable to the company's auditor for the audit of the company 's financial statements 28 24 Depreciation of owned tang ible fixed assets 414 274 Amortisation of intangible assets 52 50 Operating lease charges - land and buildings 949 1,202 Operating lease charges - other - 6
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## **12. EMpLoyEES**
## **Number of employees**
The average monthly number of employees during the year was:
2022 2021 Number Number Medical, Nursing and Allied Professions 8 8 Managers, Support Workers and Ancillary Staff 489 501 Executive 4 4 Manag ers and Other Staff 32 32 **533 545** 2022 2021 £’000 £’000 **Employment costs** Wages and salaries 11,595 10,505 Social security costs 1,011 853 Other pension costs 289 284 Other staff costs 1,030 460 Restructuring costs 19 - **13,944 12,102**
Included in staff restructuring costs are 1 (2021: nil) redundancy payments totalling £19,027 (2021: £nil). The key management personnel of the charity comprise the Trustees and the key management team. Total employee benefits for the key management personnel were £456,338 (2021: £424,071).
The number of employees whose annual remuneration was £60,000 or more were:
2022 2021 Number Number £60,000 - £69,999 1 1 £70,000 - £79,999 1 - £80,000 - £89,999 - 2 £90,000 - £99,999 2 - £120,000 - £129,999 - 1 £130,000 - £139,999 1 -
In the year, there were 5 employees (2021: 4) earning in excess of £60,000 per annum who participated in the defined contribution pension scheme (see note 25). Contributions of £13,394 were made in relation to these individuals during the year (2021: £15,863).
No trustee received any remuneration (2021: nil). Expenses were paid to 1 (2021: 2) trustees totalling £168 for travel and subsistence (2021: £582).
Excluding the volunteer trustees, the charity had 4 (2021: 16) volunteers helping with our activities. Most of these volunteers contributed on a part-time basis ranging from a few hours per month to 30 hours per week.
## **13. INTANGIBLE FIxED ASSETS**
Software £'000 **Group and charity Cost** At 1 January 2022 and 31 December 2022 251 Additions 14 At 31 December 2022 265 **Amortisation and impairment** At 1 January 2022 100 Amortisation charged for the year 52 At 31 December 2022 152 **Carrying amount** At 31 December 2022 113 At 31 December 2021 151
## **14. TANGIBLE FIxED ASSETS CHARITy**
Leasehold Fixtures Motor TOTAL land and and vehicles buildings fittings £’000 £’000 £’000 £’000 **Cost** At 1 January 2022 2,956 1,131 184 4,271 Additions 409 240 - 649 Disposals - (4) (24) (28) Transfers 94 (80) (14) - **At 31 December 2022 3,459 1,287 146 4,892 Depreciation and impairment** At 1 January 2022 801 746 91 1,638 Depreciation charged in the year 224 176 14 414 Eliminated in respect of disposals - (4) (24) (28) Transfers 94 (80) (14) - **At 31 December 2022 1,119 838 67 2,024 Carrying amount At 31 December 2022 2,340 449 79 2,868 At 31 December 2021 2,155 385 93 2,633**
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## **14. TANGIBLE FIxED ASSETS GRoup**
Leasehold Freehold Fixtures Motor TOTAL land and property and vehicles buildings fittings £’000 £’000 £’000 £’000 £’000 **Cost** At 1 January 2022 2,956 600 1,163 184 4,903 Additions 409 - 244 - 653 Disposals - - (4) (24) (28) Transfers 94 - (80) (14) - **At 31 December 2022 3,459 600 1,323 146 5,528 Depreciation and impairment** At 1 January 2022 801 5 769 91 1,666 Depreciation charged in the year 224 - 176 14 414 Eliminated on disposal - - (4) (24) (28) Transfers 94 - (80) (14) - **At 31 December 2022 1,119 5 861 67 2,052 Carrying amount At 31 December 2022 2,340 595 462 79 3,476 At 31 December 2021 2,155 595 394 93 3,237**
## **16. CREDIToRS**
## **Creditors: amounts falling due within one year**
Group Charity Group Charity 2022 2022 2021 2021 £’000 £’000 £’000 £’000 Borrowings 49 14 29 29 Trade creditors 158 158 160 160 Other taxation and social security 258 258 247 236 Deferred income 462 387 638 612 Other creditors 378 365 383 383 Accruals 632 632 685 683 **1,937 1,814 2,142 2,103**
## **17. CREDIToRS**
## **Creditors: amounts falling due after one year**
Group Charity Group Charity 2022 2022 2021 2021 £’000 £’000 £’000 £’000 Borrowings 456 302 499 299 456 302 499 299
## **15. DEBToRS**
## **18. DEFERRED INCoME**
Group Charity Group Charity 2022 2022 2021 2021 £’000 £’000 £’000 £’000 **Amounts falling due within one year:** Trade debtors 1,971 1,905 460 441 Other debtors 33 33 16 16 Prepayments and accrued income 672 672 1,360 1,304
**2,676 2,610 1,836 1,761**
Group Charity Group Charity 2022 2022 2021 2021 £’000 £’000 £’000 £’000 Balances at 1 January 2022 638 612 552 552 Released from previous years (502) (476) (418) (418) Resources deferred during the year 326 251 504 478 **462 387 638 612**
Deferred income relates to income charged for services in advance of the accounting period.
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## **19. BoRRoWINGS**
Group Charity Group Charity 2022 2022 2021 2021 £’000 £’000 £’000 £’000 Other loans 506 316 528 328 Payable within one year 49 14 29 29 Payable after one year 457 302 499 299
The charity has a mortgage with a nominal interest rate of 3.27% above base rate, with the final instalment due on 24th September 2026. The carrying amount at year end is £316k (2021: £328k). The loan is secured by way of a legal mortgage dated 27th September 2021 over the property known as The Old Vicarage.
The group has a consolidated loan of £190,000 (2021:£200,000) from the Hospitaller Order of Saint John of God. This loan is interest free and has no fixed repayment date.
## **20. FuNDS GRoup**
The income funds of the charity include restricted funds comprising of the following unexpended balances of donations and grants held on trust for specific purposes:
## **Movement in funds**
Balance at Incoming Resources Transfers Balance at 1 Jan 2022 resources expended 31 Dec 2022 £'000 £'000 £'000 £'000 £'000 **unrestricted funds** Accumulated fund 3,595 19,642 (18,419) 109 4,927 Designated fund 125 - - - 125 **3,720 19,642 (18,419) 109 5,052 Restricted funds** Religious Management Services - 3,417 (3,308) (109) - Austin 5 - (5) - - Pret - 10 (2) - 8 perty Purchase 632 - (26) - 606 Rockliffe Pro O'Gara Donation 5 - - - 5 Hospitality - - - - - Gabriel Howard - - - - - Terry Yorath House refurbishment 232 - (41) - 191 Finns Scott 2 - - - 2 LFCT Service donation 300 - - - 300 Olallo refurbishment 328 - (46) - 282 Lottery - Magic Bus 87 - (1) - 86 TSA - Covid Support 7 - (7) - - Bupa Foundation 12 109 (121) - - London Response Fund 12 - (12) - - TYH COOP 6 - - - 6 Dalby View from AM Family 2 - - - 2 Connect Charity Donation 6 - (2) - 4 Order Convertible Donation 76 - (19) - 57 ICF Funding 4 - - - 4 HSBC Funding 12 - - - 12 Covid relief fund – Woodhall - 11 - - 11 Hertfordshire community foundation – Woodhall - 19 (7) - 12 Homes for Ukraine - 195 - - 195 Better Life – SJOG Foundation – Green Team - 12 - - 12 Garfield Weston - 20 - - 20
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## **20. FuNDS GRoup** (Continued)
**Movement in funds** Balance at Incoming Resources Transfers Balance at 1 Jan 2022 resources expended 31 Dec 2022 £'000 £'000 £'000 £'000 £'000 Better Life – SJOG foundation Learning & Skills - 13 - - 13 Better life – Olallo bed - 13 (15) - (2) Better Life – Roots & Shoots - 13 (2) - 11 Leeds CC – rent contribution - 53 (53) - - West Riding Masonic Charities Ltd - 5 (5) - - Poor Service Mother of God - 55 (55) - - Congregation of the Sisters of Nazareth – donation - 4 (1) - 3 The Little Co of Mary - 1 - - 1 SJOG Research funding - 7 (7) - - Capital grants - 58 (4) - 54 Donations – charitable trusts - 57 (51) - 6 Individual donations - 70 (47) - 23 Organisations and companies - 25 (18) - 7 Grants and contracts statutory grants - 102 (49) - 53 Client welfare 20 - (12) - 8 Capital fund 270 - (270) - - Salary funds 10 - (10) - - **2,028 4,269 (4,196) (109) 1,992 5,748 23,911 (22,615) - 7,044**
## **20. FuNDS CHARITy**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
**Movement in funds** Balance at Incoming Resources Transfers Balance at 1 Jan 2022 resources expended 31 Dec 2022 £'000 £'000 £'000 £'000 £'000 **unrestricted funds** Accumulated fund 3,324 19,141 (18,127) 109 4,447 **3,324 19,141 (18,127) 109 4,447 Restricted funds** Religious Management Services - 3,417 (3,308) (109) - Austin 5 - (5) - -
## **20. FuNDS CHARITy** (Continued)
**Movement in funds** Balance at Incoming Resources Transfers Balance at 1 Jan 2022 resources expended 31 Dec 2022 £'000 £'000 £'000 £'000 £'000 Pret - 10 (2) - 8 perty Purchase 632 - (26) - 606 Rockliffe Pro O'Gara Donation 5 - - - 5 Hospitality - - - - - Gabriel Howard - - - - - Terry Yorath House refurbishment 232 - (41) - 191 Finns Scott 2 - - - 2 LFCT Service donation 300 - - - 300 Olallo refurbishment 328 - (46) - 282 Lottery - Magic Bus 87 - (1) - 86 TSA - Covid Support 7 - (7) - - Bupa Foundation 12 109 (121) - - London Response Fund 12 - (12) - - TYH COOP 6 - - - 6 Dalby View from AM Family 2 - - - 2 Connect Charity Donation 6 - (2) - 4 Order Convertible Donation 76 - (19) - 57 ICF Funding 4 - - - 4 HSBC Funding 12 - - - 12 Covid relief fund – Woodhall - 11 - - 11 Hertfordshire community foundation – Woodhall - 19 (7) - 12 Homes for Ukraine - 195 - - 195 Better Life – SJOG Foundation – Green Team - 12 - - 12 Garfield Weston - 20 - - 20 Better Life – SJOG foundation Learning & Skills - 13 - - 13 Better life – Olallo bed - 13 (15) - (2) Better Life – Roots & Shoots - 13 (2) - 11 Leeds CC – rent contribution - 53 (53) - - West Riding Masonic Charities Ltd - 5 (5) - - Poor Service Mother of God - 55 (55) - - Congregation of the Sisters of Nazareth – donation - 4 (1) - 3 The Little Co of Mary - 1 - - 1 SJOG Research funding - 7 (7) - - **1,728 3,957 (3,735) (109) 1,841 5,052 23,098 (21,862) - 6,288**
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## **20. FuNDS** (Continued)
Rockcliffe Property Purchase - The Rockcliffe fund relates to property donated by the Order of St John of God for the purpose of providing services.
The restricted funds represent segregation of monies held for where the fund provider has specified particular purposes for which the funds are to go, so as to ensure that they are spent as the donor specified. The funds entitled 'Religious management services' are funds given by specific religious orders in relation to homes managed by Saint John of God Hospitaller Services, to pay for the upkeep of their respective care homes which remained unspent at the period end and will be used in care provision in the coming years.
LFCT donations - SJOG have received a number of donations from families over prior years which are restricted to the services provided at Lindisfarne Court.
Homes for Ukraine - SJOG received funding from the Albert Gubay Foundation to deliver a project supporting people displaced by the war in Ukraine to settle in the UK on the Government’s Homes for Ukraine scheme. A related but separate project was funded by the Department for Levelling Up Housing and Communities to support people to access the Homes for Ukraine scheme and facilitate rematching between guests and hosts.
The Terry Yorath House Refurbishment Fund relates to funding received from Leeds City Council to update and improve the building.
The Olallo Refurbishment Fund relates to funds raised to restore and improve the building in Euston following a significant flood.
All other funds represent specific bequests or donations to the services named to be spent specifically on improvements to these services as deemed necessary.
The Lottery - Magic Bus Fund represents funds provided to build a mobile sensory bus.
The TSA - COVID support fund represents support for IT equipment and additional cleaning costs due to Covid 19.
## Unrestricted funds
General funds are ‘free reserves’ available to spend at the trustees’ discretion.
The Order Convertible Donation represents relates to funding received from the Hospitaller Order of Saint John of God to assist with building development and improvement costs at Woodhall Community Centre and Enfield.
## **20. FuNDS** (Continued)
## For the year ended 31 December 2021:
## **Movement in funds**
Balance at Incoming Resources Transfers Gift of Balance at 1 Jan 2021 resources expended Subsidiary 31 Dec 2021 £'000 £'000 £'000 £'000 £'000 £'000 **unrestricted funds** Accumulated fund 1,379 15,983 (13,851) (187) 271 3,595 Designated fund - - - - 125 125 **1,379 15,983 (13,851) (187) 396 3,720 Restricted funds** Religious Management Services - 3,718 (3,905) 187 - - Austin - 5 - - - 5 Pret - 10 (10) - - - perty Purchase - 647 (15) - - 632 Rockliffe Pro O'Gara Donation - 5 - - - 5 Hospitality 6 - (6) - - - Gabriel Howard 41 - (41) - - - Terry Yorath House refurbishment 252 - (20) - - 232 Finns Scott - 3 (1) - - 2 LFCT Service donation - 301 (1) - - 300 Olallo refurbishment 369 - (41) - - 328 Lottery - Magic Bus 61 39 (13) - - 87 TSA - Covid Support 12 - (5) - - 7 Bupa Kickstart - 157 (145) - - 12 London Response Fund 35 - (23) - - 12 TYH COOP - 6 - - - 6 Brother Malachy Olallo Donation - 1 (1) - - - Dalby View from AM Family - 3 (1) - - 2 Connect Charity Donation 6 - - - - 6 Order Convertible Donation 93 - (17) - - 76 ICF Funding 5 - (1) - - 4 HSBC Funding - 12 - - - 12 Client welfare - - - - 20 20 Capital fund - - - - 270 270 Salary funds - - - - 10 10 **880 4,907 (4,246) 187 300 2,028 2,259 20,890 (18,097) - 696 5,748**
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## **20. FuNDS CHARITy**
For the year ended 31 December 2021:
**Movement in funds** Balance at Incoming Resources Transfers Balance at 1 Jan 2021 resources expended 31 Dec 2021 £'000 £'000 £'000 £'000 £'000 **unrestricted funds** Accumulated fund 1,379 15,983 (13,851) (187) 3,324 **1,379 15,983 (13,851) (187) 3,324 Restricted funds** Religious Management Services - 3,718 (3,905) 187 - Austin - 5 - - 5 Pret - 10 (10) - - perty Purchase - 647 (15) - 632 Rockliffe Pro O'Gara Donation - 5 - - 5 Hospitality 6 - (6) - - Gabriel Howard 41 - (41) - - Terry Yorath House refurbishment 252 - (20) - 232 Finns Scott - 3 (1) - 2 LFCT Service donation - 301 (1) - 300 Olallo refurbishment 369 - (41) - 328 Lottery - Magic Bus 61 39 (13) - 87 TSA - Covid Support 12 - (5) 7 Bupa Kickstart - 157 (145) - 12 London Response Fund 35 - (23) - 12 TYH COOP - 6 - - 6 Brother Malachy Olallo Donation - 1 (1) - - Dalby View from AM Family - 3 (1) - 2 Connect Charity Donation 6 - - - 6 Order Convertible Donation 93 - (17) - 76 ICF Funding 5 - (1) - 4 HSBC Funding - 12 - - 12 **880 4,907 (4,246) 187 1,728 2,259 20,890 (18,097) - 5,052**
## **21. ANALySIS oF NET ASSETS BETWEEN FuNDS**
Unrestricted Restricted TOTAL funds funds £’000 £’000 £’000 **Group Fund balances at 31 December 2022 are represented by:** Intang ible fixed assets 113 - 113 Tangible assets 2,394 1,082 3,476 Current assets/(liabilities) 2,545 1,402 3,947 Long term liabilities - (492) (492) **5,052 1,992 7,044 Group Fund balances at 31 December 2021 are represented by:** Intang ible fixed assets 151 - 151 Tangible assets 2,041 1,196 3,237 Current assets/(liabilities) 1,528 1,331 2,859 Long term liabilities - (499) (499) **3,720 2,028 5,748 Charity Fund balances at 31 December 2022 are represented by:** Intang ible fixed assets 113 - 113 Tangible assets 1,786 1,082 2,868 Current assets/(liabilities) 2,548 1,061 3,609 Long term liabilities - (302) (302) **4,447 1,841 6,288 Charity Fund balances at 31 December 2021 are represented by:** Intang ible fixed assets 151 - 151 Tangible assets 1,437 1,196 2,633 Current assets/(liabilities) 1,736 831 2,567 Long term liabilities - (299) (299) **3,324 1,728 5,052**
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## **22. CASH GENERATED FRoM opERATIoNS**
Group Group 2022 2021 £’000 £’000 Surplus for the year 1,296 2,793
## **Adjustments for:**
Impairment of investments - 3 Amortisation and impairment of intangible assets 52 50 Depreciation and impairment of tang ible fixed assets 414 274
## **Movements in working capital:**
(Increase) in debtors (840) (267) (Decrease) in creditors (226) (604) **Cash generated from operations 696 2,249**
## **23. opERATING LEASE CoMMITMENTS – GRoup AND CHARITy**
## **24. RELATED pARTy TRANSACTIoNS**
## **Charity and group**
The Hospitaller Order of Saint John of God (and its subsidiary St. John of God (Community Developments) Ltd) and the Hospitaller Order of Saint John of God Charitable Trust are separate registered charities. Some of the trustees of these charities were also trustees of Saint John of God Hospitaller Services during the period under review. Certain trustees are also members of the Board of Sponsors of Saint John of God Hospitaller Ministries, a canonical body established in Ireland.
Included within debtors is an amount of £1,023 (2021: £nil) owed from Hospitaller Order of Saint John of God for recharges of overhead costs.
During the year rental payments of £345,881 (2021: £345,881) were made to Hospitaller Order of Saint John of God for the use of fixed assets owned by the Order.
During the year donations amounting to £nil (2021: £561,631) were receivable from Hospitaller Order of Saint John of God.
Included within other creditors is an amount of £186,320 (2021: £304,321) owed to Hospitaller Order of Saint John of God.
## **Group only**
There is a loan of £190,000 (2021: £200,000) included within other loans which is owed to Hospitaller Order of Saint John of God. Included within other creditors is an amount of £949 (2021: £nil) is owed from Hospitaller Order of Saint John of God.
## **25. pENSIoN CoSTS**
The company makes available a contributory money purchase scheme which all employees can join. This is administered by Scottish Equitable and each person has their own independent pension policy. The charge for the year represents contributions payable in the year.
The total pension costs in the year were £292,749 (2021: £279,121). Amounts deducted but not yet paid over amounted to £63,333 (2021: £58,434).
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
## **26. ANALySIS oF CHANGES IN NET DEBT**
2022 2021 £’000 £’000
**Land and buildings** Within one year 1,287 527 years 2,269 1,768 Between one and five years 782 1,198 In over five **4,338 3,493 other** Within one year - 6 years - 6 Between one and five **- 12**
1 January Cash flows Non-cash 31 Dec 2022 movements 2022 £’000 £’000 £’000 £’000 **Cash and cash equivalents** Cash 3,165 7 - 3,172 **Total cash 3,165 7 - 3,172 Borrowings** Short-term borrowings (29) (20) - (49) Long-term borrowings (499) 43 - (456) Total borrowings (528) 23 - (505) **Net debt 2,637 30 - 2,667**
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## **27. MEMBER uNDERTAKINGS**
The charity controls Good Shepherd Services, a charity registered in England and Wales by right of being the only member.
The results of the member undertaking are summarised below:
Total 2022 Total 2021 £’000 £’000 **Income:** Donations and legacies 250 255 Charitable activities 564 531 Miscellaneous income - 25 **814 811 Expenditure:** Charitable activities (754) (572) (754) (572) **Net incoming resources 60 239**
The net assets of the member undertaking at 31 December 2022 amounted to £756k (2021: £696k).
**Charity Number:** 1108428
## **Trustees**
W Forkan R Moore 05324279 M Francis _(resigned 26 January 2022)_ N Brannigan Suite 1-3 Yarn L K Selfe Lingfield point Darlington E Gibbons County Durham _(chair of trustees)_ DL1 1RW R O'Donnell
**Company Number:** 05324279
## **Registered office**
## **Auditor**
S Robinson _(resigned 8 June 2022)_ RSM UK Audit LLP Chartered Accountants D Reid 1 St. James' Gate C A Rennolds Newcastle upon Tyne United Kingdom A A Aromolaran NE1 4AD E J Peacock _(appointed 30 August 2022)_
## **Bankers**
Barclays Bank plc 31 High Row Darlington Co Durham DL3 7QS
## **Solicitors**
Womble Bond Dickinson LLP Helix The Spark Draymans Way Newcastle upon Tyne NE4 5DE
## **Key management team:**
Paul Bott CHIEF ExECUTIVE
Leanne Welford CHIEF FINANCE OFFICER
Dr Lisa Alcorn CHIEF OPERATING OFFICER
Dr Jamie Mackrill DIRECTOR OF OPPORTUNITIES
## **28. uLTIMATE CoNTRoLLING pARTy**
The sole member of the charity is the Saint John of God Hospitaller Services Group, a company limited by guarantee and registered in the Republic of Ireland (company number 568740).
Thank you for the kind support of:
The Albert Gubay Foundation
Austin and Hope Pilkington Trust
Department for Levelling Up Housing and Communities Garfield Weston Foundation Gilead Sciences Ltd
Hertfordshire Community Foundation
The Pret Foundation
Queen Mother's Clothing Guild Saint John of God Foundation
www. **sjog** .uk
**Saint John of God Hospitaller Services** Suite 1-3, Yarn, Lingfield House, Lingfield Point Darlington, Co Durham DL1 1RW **Tel:** 01325 373700 • **Email:** enquiries@sjog.org.uk
Registered Charity No. 1108428 Company No. 05324279