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2022-03-31-accounts

Annual Report and Financial Statements for the year ended 31 March 2022

Registered Charity 1116530 Company Registration Number 5967087

ItgU•Jdd•vptty Livability Letter from our Patron •UCKINQMAM PALA¢f In whatever circumsiances, Livability continu&q tsi pn)vid¢ dedic4lwL professional care and supwrt lo the children. youn8 people atKI adults with disabilities who use lis services. With almosi l.(KM) people in its car¢. Livability ha5 had to grow and adapt to change, taking swift corwjratr decisio￿ impl¢m¢nting those decisions across a complex or8anisation. A5 Patron of Livabilily. l am aware of the FK)siiive impxi thai the chariLy h&$ had during th¢ y¢ar. and th¢ difference it made, and continues ￿ make. for the wipk it sUP￿rts. ¢ven through the introduclion and applicaiion of necessary rtrici prolcclive rnea5ure5. The peopl¢ that Livabiliiy seryes were able io flourish by adapting activitics. ensuring connections with loved ones were Mainthi￿d. It) (￿. Livabilily's resldenlial 5ervic¢s w¢nt the extrd mile lo bwst ihe confidence of thse in their care. providing saf¢ en¢¢rtainm¢nt and exercise classes during ￿StrICted lif In some respi￿ from ihe ever-preseni pandemic. many of Livabilily's servi amc logether lo launch our firsi recipe b￿k. with reci￿$ from those w¢ supw)rt aNI some celebrily chef5. During this year Livabiliiy launched a new (Jkaiity Forum. in which a group of peop5¢ suptrf)r¢ed regularly come 108ether ￿ iis*n io Ott￿r5 in our Aduli S¢rvL¢C5 to ¢xamine and discuss the sUp￿rt ihey receive. This is another ¢x4mple of Livability's commilment to inclusion and io raising standarth. In line with many ¢hariues. the year ftom April 202110 March 2022 incre&se in COTwrate agility for Livabiliiy, 108eiher with consolidation of its purw and v31u¢ in the sector5 it inhabits. Board straie8y away days were held digitally. aThl a nurnlxr of n¢w and experienced twmees were recruiied to bolsier this strdtegic development. I I￿k lotward tt) visititlg services again wh¢n this becomes trt)&sible. I thank and congraiulaie all siaff. volunteer5 and 5UPtK>rt¢rs their achievements as we emerge from whai was a (0ts8h year.

A message from Livability’s Chair

Welcome to the 2021/2022 Annual Report.

This has been another difficult year for all in the Care sector. We were emerging from Covid lockdowns towards the end of the year, however in some ways the problems worsened, as we saw significant staff shortages emerging, resulting in limits on service users in Care, and developing increased expensive Agency use.

Through all this, I am immensely proud of all our staff at every level. The demands on them have been greater than ever. Members should be reassured! I am particularly pleased that our Christian foundation is being demonstrated more at all levels.

For the first time in recent times, we are showing a net surplus. Our management team have made good progress on this - but there remains much to do, particularly coping with the increased Agency costs. There is still an underlying Operating loss in 2021/22, covered by property sales.

Livability was founded to do work that otherwise would not have been done. Today both our Care and Education services deliver care for children, young people and adults with disabilities to a depth and breadth that simply could not be done by the State.

John Robinson, Chair of Trustees

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A message from Livability’s Chief Executive

If the last year was a year like no other, this year set out for a replay. We were duped several times by the false dawn of potentially “normal” living. This was coupled with the added complexity of different lockdown rules and different testing regimes for each area of business.

Perhaps the lowest point in the year came from the compulsory termination of employment for our unvaccinated care staff. These government actions feel no more justifiable with hindsight, nor with the passage of time.

Societal change has been significant and the staffing crisis is in its sharpest focus in the care sector.

None of this, however, has dampened our spirits or reduced the quality of our carers and our educationists. Our greatest “normality” is that we put each child, young person and adult at the heart of all we do.

Sally Chivers, Chief Executive

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Contents

A message from Livability’s Chair ........................................................................... 3 A message from Livability’s Chief Executive .......................................................... 4 Trustee Report ......................................................................................................... 6 Purpose of the Charity .................................................................................... 6 Public benefit summary ....................................................................................... 6 Structure, governance and management ............................................................... 6 Group structure .................................................................................................... 7 The Board of Trustees ............................................................................................. 7 Livability Education ............................................................................................ 10 Livability Gender Pay Gap ................................................................................. 13 Pay quartiles ...................................................................................................... 13 Employment of people with disabilities ............................................................. 14 Senior executive pay ......................................................................................... 14 Our approach to pay as an organisation is as follows: ..................................... 14 Modern Slavery Statement.................................................................................... 15 Fundraising ............................................................................................................ 15 Strategic Report ..................................................................................................... 16 Financial outlook ................................................................................................. 16 Covid-19 funding ................................................................................................. 16 Going Concern ..................................................................................................... 16 Financial review ................................................................................................... 17 Overview ........................................................................................................... 17 Free reserve calculation ................................................................................. 19 S172 Working with our stakeholders .................................................................... 19 Environment commitment ..................................................................................... 21 Principal risks and uncertainties ............................................................................ 23 Statement of Trustees’ responsibilities for the Financial Statements .................. 25 Disclosure of information to auditor ................................................................... 25 Financial accounts/notes ................................................................................. 30-78 Trusts and Supporters 2021-22 ............................................................................ 80 Organisational Details ........................................................................................... 82 Vice-Presidents: ................................................................................................. 82 Trustees: ............................................................................................................ 82

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Trustee Report

Purpose of the Charity

Livability is established for the public benefit and for charitable purposes, according to the laws of England and Wales. The objects of the charity are to:

Public benefit summary

Trustees have complied with their duties to have regard to the public benefit guidance (published by the Charity Commission), in exercising powers and duties to which the guidance is relevant. In preparing this report and the accounts, Trustees have demonstrated their compliance with the requirements set out in the guidance by:

Structure, governance and management

Livability is a charity registered in England, number 1116530, and a company limited by guarantee registered in England and Wales, number 5967087. It is governed by its Articles of Association dated 7 November 2013. In the event of winding up, each Member’s liability is limited to £1. Livability was established in 2007 as a merger of The Shaftesbury Society and John Grooms.

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Group structure

Livability is the parent charity of a group of charities and operating companies. Operating subsidiary charitable companies in the group are:

The active subsidiary trading companies in the group are:

Livability and its subsidiary charities also include the assets, liabilities, funds, income and expenditure of a number of charitable trusts that are linked to the charitable companies in the group, through linking directions from the Charity Commission. These charities are set out in Note 7 to the accounts.

The Board of Trustees

The Board of Trustees is responsible for the governance of Livability and for ensuring that its activities are within its charitable objects. It sets the strategic direction for the charity but responsibility for the implementation is delegated to the Executive Leadership Team, led by the Chief Executive Officer (CEO). The Board rigorously monitors and scrutinises the performance of the charity and the executive.

All Trustees are non-executive directors who usually serve a maximum of three terms of three years. Trustees are appointed initially by the Board of Trustees, and then reappointed at the charity’s Annual General Meeting (AGM).

Each Trustee gives their time voluntarily and as such receives no benefits from Livability other than reasonable expenses. However, a Trustee may provide professional or other services to the charity on normal commercial terms if this is deemed in its interest and subject to governance processes in line with guidance from the Charity Commission and the Charities Act.

The Board ensures its Trustees provide the experience and skills required to perform its critical role effectively.

There is a programme of training linked to Trustee appraisals and a formal Board review. There are two away-days in each annual governance cycle to ensure matters of strategic significance are considered in depth.

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The Board’s business meetings are held every two months. Monitoring of the performance of key areas of activity is delegated to Committees and to Local Advisory Boards.

Chief Executive Officer

The CEO is responsible to the Board for the direction of the activities and the performance of Livability in meeting the strategic goals set by the Trustees and in compliance with the policies set by the Board.

The Executive Leadership Team (ELT) is responsible for strategic oversight and leadership of the charity; it comprises the CEO, the Executive Directors for Care Operations, for Finance, and for Education.

Achievements and Performance

Livability Care Operations

Wellbeing-focussed

We continued to develop our safeguarding “app” – this allows staff to raise concerns in real-time.

We improve the ‘life sum’ of all the people we support. We do this by recognising and acknowledging the individual needs, aspirations and skills of each person.

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Meaningful collaboration

We hold a weekly online meeting for every supported person to share their world with our Livability Chaplaincy Service.

We held a 2021 online Christmas Carol Service that was accessible for all the people we support; the event was co-produced by the people we support.

We set up a Makaton choir; the choristers use this special form of signing.

We developed a forum for the people we support: it is called Changes for the Future.

The Changes for the Future forum took part in the Archbishop of Canterbury’s Reimagining Care Consultation; this has achieved national recognition.

Going deep

We have continued to define and hone the efficiency of our services; during the year we have closed several services that were uneconomical and did not fit within this strategy.

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Well Organised

We rolled out our Back to Basics training.

We launched our new Dementia Strategy.

We developed our Root Cause Analysis Tool Kit to help us establish and understand the lessons we have learnt.

We continued the rollout of Log My Care to help us manage people's care more effectively through an electronic platform.

We launched our new Clinical Governance Framework.

Livability Education

Our programmes of study are based on enabling learners to develop skills for adult life, extending friendships and providing opportunities for personal development, as well as the opportunity to contribute to the communities we share. We work closely within our wider organisation to benefit from the skills and experience of our Care Operations Directorate.

Learners choose to come to Livability Education settings to find and fulfil their potential and to lead a flourishing life. We are passionate in our desire to reduce social, employment and health inequalities and are aspirational for our learners, our staff and our services.

In the next phase we will develop our ability to support lifelong learning for all who live, learn and work with us as part of our Livability family.

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Wellbeing-focussed

Staff wellbeing remained a key topic in staff meetings. Initiatives included free breakfasts, an onsite parking raffle and a monthly “Final Friday’ event. The ‘You Said, We Did” approach maintained an authentic approach to this work.

We improve the ‘life sum’ of all students and staff who are part of our close family of schools and colleges. We do this by recognising and acknowledging the individual needs, aspirations and skills of each learner.

Meaningful collaboration

Occupancy at Livability Victoria grew following a request from a Local Authority to open a new Early Years ASC class in February 2022. We invested in a new classroom and resources for this work and successfully recruited a new team of experienced staff. Following the launch, students settled well with families offering positive feedback.

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Going deep

Understanding of the local offer in our current geographical areas of business led to the feasibility study of a new project for a college for students requiring specialist placements in the South West. During early 2022 a business case for a third setting was approved with a small first year intake proposed for the following academic year.

Leadership capacity was strengthened across our settings with leadership restructuring and the appointment to substantive posts at senior level. This included to the post of Headteacher at Livability Victoria School following a rigorous recruitment process.

One hundred percent occupancy was maintained at Livability Nash College. Conversion rate from consultations during the admissions period increased by 20% on the previous year.

Well Organised

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Education settings continued to manage the end of the pandemic. Students that needed additional support received tailored intervention and help from a variety of academic and therapy-based professionals.

As the year progressed, work-related learning and work experience resumed. Students became involved in a range of community events including the first open event in December since the start of the pandemic. All settings began to welcome back friends and families to a range of events and activities.

Settings continued to develop and refine virtual provisions with the provision of accessible learning activities becoming a standard part of the post-pandemic offer.

Livability Education increasingly developed with shared expertise supporting quality improvement work and growth.

Livability Gender Pay Gap

As per the Equality and Human Rights Commission regulations, on 5 April 2021, Livability’s payroll ‘snapshot date’ report showed the mean hourly rate was £12.95 for Male and £11.96 for Female; this figure has decreased to 7.62% compared to last year 11.06%.

The median hourly rate has increased to £10.25 for Male and £10.11 for Female in 2021 from £9.22 for Male and £9.07 for Female in 2020.

Our median pay gap is 1.34%.

The difference in mean and median bonus pay remains at 0%, as our charity does not pay bonuses to staff.

Pay quartiles

The number of paid male and female in the four pay quartiles (upper, upper middle, lower middle and lower quartile) for the 2021 snapshot date and the 2020 snapshot date (5 April 2020) are as follows:

Upper quartile in 2021 was 26% (male) and 74% (female) and 26% (male) and 74% (female) for 2020. This shows there is no change in the number of females and in the number of males in this category, compared to last report.

Upper middle quartile in 2021 was 20% (male) and 80% (female) and 20% (male) and 80% (female) for 2020. This shows there is no change in the number of females and in the number of males in this category, compared to last report.

Lower middle quartile in 2021 was 19% (male) and 81% (female) and 19% (male) and 81% (female) for 2020.

Lower quartile in 2021 was 21% (male) and 79% (female) and 17% (male) and 83% (female) for 2020. This shows a 4% increase in the number of males in this

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category, compared to 2020 figure and a 4% decrease of females in this category compared to 2020.

Livability will continue to monitor its employment and remuneration to ensure that pay is based on fairness.

Employment of people with disabilities

Currently, 2.39% of Livability employees have declared themselves to have a disability, a slight reduction from last year by 0.16%. We want to continue to increase the number of people with disabilities who work for us. As a Disability Confident Employer (level 2), we commit to making adjustments to meet the needs of job applicants with disabilities, employees and volunteers. We work with our staff with disabilities to ensure that they are fully supported during their employment.

However, we have more to do to promote employment of people with disabilities in the charity; we involve employees with disabilities, volunteers and the people who use our services, in making the charity an organisation that people want to work for. We support volunteering opportunities in a number of our services and offices across the organisation. We also provide services to support people with disabilities back into the workplace through specialist work skills development and work experience programmes.

Senior executive pay

Senior pay levels reflect the size and complexity of the organisation and the range of work carried out in health and social care with clinical and nursing services, special education provision and professional support services. Livability has noted the recommendations of the report of the National Council for Voluntary

Organisations (NCVO) into senior executive pay. The Nomination, Remuneration & Governance sub-committee of the Board has reiterated the policy of the charity to set pay levels in line with median pay rates for the sector. Note 6 to the accounts shows the numbers of employees earning more than £60,000 in bands of £10,000.

Our approach to pay as an organisation is as follows:

Our key priority is to be a real living wage provider and as such, we give priority to having pay scales to reflect this for our lowest rate of pay.

We mirror the national terms and conditions for teachers where we are able (but not all terms). Again, this is based on affordability.

We implement recruitment and retention initiatives for hard-to-fill roles in our frontline services.

For growth-driven roles, such as Area Managers, we link pay to growth.

We apply the Hay Method of Job Evaluation for all other roles, to ensure pay is reflective of role requirements and pay is equitable and fair.

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Modern Slavery Statement

Our Modern Slavery Statement is published on our website.

Fundraising

Our approach

This year has been a challenge for our fundraising.

Our approach to fundraising puts the supporter at the heart of everything we do, seeking to build long-term relationships and ensuring supporters have control over how they hear from us.

We work with approved partners and our payroll-giving programme enables supporters to give as they earn through their salary if they choose to. To ensure a good supporter experience, we monitor fundraisers acting on our behalf. We provide guidelines, policies and dedicated support to fundraisers acting for us in communities.

We ensure volunteers acting on our behalf in our office and within the community represent our charity in the best way, by providing policies, guidelines and dedicated support.

Fundraising standards

Our commitment to high fundraising standards is demonstrated by our individual staff membership of the Institute of Fundraising (IOF) and organisational membership of the Fundraising Regulator, who set and maintain the standard for charitable giving. We have also signed up to the Fundraising Preference Service, where supporters can manage the communications and fundraising requests they receive from charities, and in 2021-22 received five such requests.

We vigilantly adhere to regulation standards and General Data Protection Regulation (GDPR), both generally and in our fundraising practices. Our governance also extends to how we protect vulnerable people in the context of fundraising. Our People in Vulnerable Circumstances (PIVC) Policy makes sure that there is no undue pressure to give in the course of, or in connection with, fundraising for Livability.

We aim for everyone to have a positive fundraising experience and are pleased to have a low level of fundraising complaints. As in previous years, in 2021-22 we received no formal complaints; we are very proud of our outstanding supporter experience and customer service in this field.

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Strategic Report

Financial outlook

The period under review continues to be challenging, negotiating the residual impacts of Brexit and Covid-19. This had a significant impact on the charity’s finances but, as evidenced in later commentary, major steps forward were made over the course of the year as a result of the efforts of our Executive Team and all the staff. While much remains to be done, we have taken major strides forward.

Covid-19 funding

These financial statements include the financial benefits of accessing government/local authority funds to support the care sector during the period of the pandemic.

The Infection Control Fund (ICF) has taken centre stage in this regard. A total of £838,494 was received during the 2021-22 financial year to support infection control, rapid testing and workforce capacity due to Covid-19.

We also received £161,506 from the Coronavirus Job Retention Scheme (furlough) and the care worker’s bonus scheme. These are accounted for within charitable income.

Going Concern

Going Concern

As has been documented in the national press, social care has been hit hard on the recruitment front. An almost perfect storm has been created through Brexit, the termination of contracts for nonvaccinated staff, poor levels of hourly pay from commissioners and a general malaise among the working public to undertake work involving personal care. This has led to a need to address shortfalls in labour with significantly more expensive agency staff with the consequent financial implications.

In recent years, Livability has made significant progress in delivering efficiency improvements which has helped to limit this impact and has additionally generated proceeds from property sales of £7.9m in the year ended 31 March 2022 to support the ongoing restructuring activity. In April 2022, Livability also reached an agreement with Metro Bank regarding long term funding arrangements replacing an expiring Revolving Credit Facility of £4m with an equivalent Term Loan which combined with existing term loan brings our total group borrowings to £10.2m.

In line with many in the sector, Livability is seeking to move to open book arrangements for its primary activities which will ensure the recovery of costs especially where, as with this year, those costs are driven by events outside the charity’s control. In addition, fee rises in both Care Service Operations and Education are being negotiated with commissioners to reflect rising costs more generally, a licence has been obtained to employ EU nationals as an Authorised Sponsor, rates of pay are being reviewed and there is capacity to increase student numbers in the Education business particularly at the recently opened Millie College. Continuing action is being taken on the overhead base.

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Outside of operational activity there are a small number of additional properties which will been placed on the market for sale (with estimated cash proceeds of £3.2m). There is also a large legacy (estimated value of £5.2m) due to the organisation and a commencement of the distribution of assets is anticipated during 2023. The Executive Team is discussing with Metro Bank the opportunity for a period of flexibility around the financial covenant whilst this remaining programme of property sales and the receipt of the major legacy are concluded.

Trustees agreed that the actions noted above must be addressed for Livability to be financially sustainable and, as such, the conditions noted above indicate the existence of a material uncertainty that may cast significant doubt upon the entity’s ability to continue as a going concern,

Having considered the charity's forecasted cash flow projections covering a period of at least 12 months from the date of signing of the financial statements, the trustees have concluded that it is appropriate to adopt the going concern basis in the preparation of these financial statements.

Financial review

Overview

Though we continue to navigate the residual impact of Covid-19 and Brexit especially in relation to staffing to deliver our services, 2021/22 sees us returning to Surplus from previous years’ deficits.

Our Operating Surplus is £3.3m before recognising additional benefits from Property, Investment and Pension revaluations amounting to £11m. Despite this positive turnaround, we continue to strive across all operational areas to improve efficiency and cost savings to mitigate the post Brexit and Covid-19 impact on our service delivery cost as grant support falls off.

Income for the year was £53.5m, an increase of £7.4m over 2021 (£46.1m) levels. This was driven by four factors: income from charitable activities increased by £3.1m, alongside increases in Other Trading activities £2.2m and Gains from Disposal of Fixed assets £2.5m while Donations decreased by £.6m

Total expenditure of £50.1m (2021: £48.4m) an increase of by £1.7m. This increase was driven by a growth in the cost of Raising funds £0.7m; £1.6m for Other expenditure cushioned by a reduction in Cost of Charitable activities of £0.7m.

Net Income was £3.3m compared with previous year’s deficit of £2.3m, a £5m improvement.

Operational performance was further improved by actuarial gain on revaluation of the defined benefit pension fund of £1.9m (2021: £4.6m loss). Gains on property and investment revaluation were £8m and £0.9m respectively.

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Key performance indicator for the group

2021/22 2020/21
Key performance indicators £’000 £’000
Total income 53,516 46,138
Operating costs 50,287 48,433
Operating surplus/(deficit) for the year (after investment gains/losses) 3,229 (2,295)

As was the case last year, the challenging macro and operating conditions faced by charities in the disability and care sector mean that financial constraints are now part of the operating environment, with no realistic prospect of this lessening.

We have made good progress over the course of the year with the implementation of our comprehensive transformation plan including:

  1. Increasing operating contribution

  2. Increasing net fundraising revenue

  3. Reducing central support costs

  4. Rationalising the property portfolio

During the year under review, the charity continued its programme of engaging with our local authority commissioners to ensure that fee levels are appropriate for the changing needs of the people we care for.

Reserves policy

The Board of Directors has considered the level of reserves which should be maintained within the Group and this is reviewed annually. Such reserves are needed to cover, for example, working capital, future property repairs and the risk of possible shortfall in charitable income.

At the year ended 31 March 2022, Livability held a total of £47.4m in reserves (2021: £33.1m).

Of these total reserves including the pension reserve, £34.1m (2021: £20.3m) are unrestricted.

In addition, the Trustees have considered and set a reserves policy which requires that unrestricted funds equivalent to a range of eight to 12 weeks of total organisational expenditure is held.

The charity’s unrestricted general reserve at the end of the year was £34.1m. This represents 34 weeks of total unrestricted organisational expenditure, which is better than the range determined by our reserves policy. (Based on an average weekly expenditure of £1m)

We have also considered our free reserves. We have calculated our free reserves using the broad guidelines set out by the Charity Commission. Effectively, we have taken our Group net assets and deducted restricted and endowed funds. As we are an organisation that actively uses properties, we have also deducted unrestricted fixed assets unless they are subject to sale in future years (and as such aren’t required for ongoing operations). This provides us with negative free reserves of £2.8m. As noted elsewhere in the report, there are various steps that have been and will be taken to improve the underlying financial performance of the organisation, during the financial year under review, and going forward.

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Free reserve calculation
31/03/2022
31/03/2021
£'000
£'000
Group net assets
Less: Restricted funds
Less: Endowed funds
Subtotal
Less: Fixed assets (asset reliant organisation)
Add back: Pension Liability ‘reserve’
Subtotal
Add back: Functional fixed assets to be sold in following years
Free reserves		 47,383
33,154
(6,717)
(6,161)
(6,601)
(6,663)
34,065
20,330
(40,547)
(33,090)
37
3,625
(6,445)
(9,135)
3,661
11,710
(2,784)
2,575

Investment policy

In line with Livability reserves policy, at any point in time we may hold cash and other assets that are surplus to immediate requirements. The policy of the Board of Trustees is to invest surplus funds to meet the following objectives:

The charity uses the services of Royal London Cash Management to invest its surplus funds. A decision is taken on a case-by-case basis as to whether to retain or dispose of any donated investments.

S172 Working with our stakeholders

This is a mandatory statement reporting how Directors have complied with their duty to have regard to the matters in section 172 (1) (a)-(f) of the Companies Act 2006 (‘the Act’).

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The children, young people and adults we support, their families and representatives

We issue a twice-yearly customer service survey to the people we support, to families and to carers. We operate a “You Said, We Did” response to findings from the surveys.

We hold regular residents’ and tenants’ meetings with the people we support.

We have developed a Changes for the Future forum; this comprises the people we support and is chaired by them. The Executive Team hears their voices and responds to their observations.

The Care Operations Directorate endorses the ‘nothing about me, without me’ initiative. This ensures that the people we support are central to any decision made about their care and to their preferences. The Quality Team ensures this methodology is central to our co-production work.

Our Safeguarding Board reviews, scrutinises and protects our relationship with the children, young people and adults we support.

We spend time getting to know our students and their families so that we can develop personalised programmes of study.

Our staff

Throughout this reporting period Board members reviewed decisions that helped keep the people we support and our staff safe. These decisions were examined against the requirement to work efficiently in the interest of the charity’s objects.

Our Staff Wellbeing & Engagement Forum Champions foster a culture of openness in line with our corporate values. The focus of the forums has evolved to include the employee experience.

Staff remained on the frontline in our Care Operations settings throughout further waves of Covid19 and lockdowns, supported by local and national managers. Quality issues continued to be monitored and assessed. Individual services received virtual visits from executive Directors and Trustees, followed by in-person visits once this became appropriate.

Staff in our education centres also worked throughout the lockdown periods.

Bournemouth, Christchurch and Poole Council (BCP) provided a commitment to placing learners in our proposed new College. Ongoing engagement with BCP resulted in a request for places for a new cohort of learners at Victoria School.

Staff within our support functions continued to work remotely; they came together for virtual briefings from the Executive Leadership Team and business areas. A safe return to the workplace was implemented at offices in London and Gateshead.

Our Trustees

Our usual annual Trustees’ visits to Care Operations and Education Services were limited due to the restrictions this year; a few visits were made, however.

Trustees received regular updates from each Executive Director. The Services Quality & Performance Committee considered employee matters, demographics, staff recruitment and retention rates, diversity, whistleblowing, learning & development and pay issues.

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Our supporters and volunteers

This year we joined together with almost 100 supporters and volunteers for a live, online Christmas Extravaganza.

A regular newsletter was sent out to our Vice Presidents.

Our CEO participated in HRH The Princess Royal’s Charities Forum.

Our regulators

Our regulatory bodies include the Care Quality Commission, the Regulation and Improvement Authority, Care Inspectorate Cymru, Ofsted, the Education & Skills Funding Agency and the Charity Commission. We continue to build on our strong relationships with our regulators.

Compliance with regulatory frameworks and performance against those are scrutinised at the Services Quality & Performance Committee and the Livability Safeguarding Board together with each of the Education Local Advisory Boards (LABs).

Our local communities

Our LABs include a community member who is chosen specifically to represent their community. The Boards include members from a range of commissioning Local Authorities in order to scrutinise the quality of our work and the impact and outcomes for those we support.

During the year we partnered locally with Barclays Digital Eagles to receive training in relation to cyber awareness, protection and prevention.

Environment commitment

Energy Usage – Livability National Office

The building meets the highest benchmarks for energy performance and the building's energy strategy delivers a reduction in the building's carbon emissions: BREEAM Excellent EPC B:47 High level of passive energy control. This results in reduced heating, cooling and lighting demands. Intelligent building controls allowing energy savings by providing high levels of energy conservation and recovery. Ground-source energy systems exist to further reduce building energy requirements. The building uses low carbon ground-source cooling, heating and domestic hot water.

Water conservation measures include rainwater harvesting for flushing toilets. A building management unit enables comprehensive reporting and management of energy and water use.

SECR Executive Summary

The Companies (Directorsʹ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (also known as SECR) requires us to disclose our annual energy use and greenhouse gas (GHG) emissions, and related information on energy efficiency measures undertaken and an energy efficiency ratio. We continue to take proactive and urgent action to reduce our emissions.

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1.1 SECR Energy Use and Carbon Emissions Disclosure

Current
Reporting Year
2022		 Current
Reporting Year
2021		 Change (%)
Energy Consumption Used to
Calculate Emissions Heating Fuels
(kWh)		 7,502,448 8,913,971 (-)16%
Energy Consumption Used to
Calculate Emissions Electricity (kWh)		 2,628,376 3,632,319 (-)28%
Energy Consumption Used to
Calculate Emissions Transport Fuels
(kWh)		 469,474 299,542 (+)57%
Scope 1 - Emissions Combustion from
Heating Fuels (tCO2e)		 1,375.9 1,639.0 (-)16%
Scope 1 - Emissions Combustion from
Transport Fuel (tCO2e)		 2.94 17.4 (-)83%
Scope 2 - Emissions from Purchased
Electricity (tCO2e)		 558.10 846.8 (-)34%
Scope 3 - Emissions Consumption
from Business Travel (tCO2e)		 79.4 52.0 (+)53%
Total Emissions (tCO2e) 2,043 2,555.0 (-)20%
Intensity Ratio (EBITDA Figure) 3.225 1.168 (+)176%
Total tCO2e / EBITDA Figure 633.42 2,187.64 (-)71%

1.2 Methodology

The Green House Gas (GHG) Reporting Protocol – Corporate Standard has been followed to allow easy comparison with equivalent organisational reporting. Carbon emissions are therefore reported as Scope 1, 2 and 3 emissions. The report has also used the 2021 UK Government's Conversion Factors for Company Reporting.

1.3 Benchmarking and Intensity Metrics

We selected the EBITDA figure as our intensity metric for SECR works. The carbon emissions have decreased by 20% however against the intensity metric the total TCO2e/EBITDA has increased by 176%. This figure has increased dramatically as the EBITDA between the Baseline report and this FY has reduced by 71%.

1.4 Carbon Offset & Green Tariffs

We have no qualifying carbon offsets during this financial period nor do we have any qualifying green tariffs or sourced renewable energy contracts in place.

22

1.5 Energy Efficiency Actions

We have demonstrated our commitment to reducing their carbon emissions within this financial year by contracting an external provider, ESOS-Energy, to undertake preliminary decarbonisation reports across the property portfolio. These audits took place during the 2021 – 2022 financial year along with the development of a carbon reduction plan using the audits. Coupled with this, systems to better capture data (particularly property data would provide more accurate reporting in future and reduce the amount of estimation used to compile the results).

Principal risks and uncertainties

Livability’s work with vulnerable people means that inherent risks are ever- present. We have safeguarding policies and procedures which are regularly reviewed and ensure that concerns are effectively identified, reported, and responded to. We work in partnership with regulators and statutory organisations as required.

Our risks fall into five major categories:

1. Reputational – the risk of damaging our reputation through regulatory and other failings associated with the delivery of our services

Our reputation is critical to our status as a trusted provider. This risk is managed through a robust set of performance indicators and allied to assurance controls in safeguarding, financial and operational settings, fraud prevention and detection controls, and the wider policies and procedures upheld through the Quality & Practice frameworks covering both Care Operations and Education settings.

2. Operating margins – pressure from limited income growth and increasing cost

In common with other providers of public sector-funded services, there is an ongoing risk of failure to uplift our costs. This affects our ability to invest in the improvement and expansion our services. We seek to mitigate this risk with an extensive Cost Reduction Plan.

3. Pensions – Livability’s three closed defined-benefit pension schemes are subject to risks around their funding, outside the control of Livability

The continued requirement to fund the deficits has a material impact on Livability’s ability to invest in the growth and development of its services and facilities. Livability works with industry experts to ensure needs are balanced with current beneficiaries of the charity with those of its current and future pensioner populations.

4. Cash availability – the low operating margins alongside significant funding requirements such as recovery payments for the closed pension schemes means that cash availability is an ongoing risk. The risk is tightly monitored and reported to the Board.

5. Recruitment and retention – the risk of workforce shortages

There are known workforce shortages affecting the wider health, education and social care sectors. Livability is committed to becoming recognised as an employer of choice to attract and retain the workforce needed to sustain high standards across the service portfolio. Livability has also set a strategic goal to lower the sickness absence rate and has initiatives to foster staff engagement, employee wellbeing and to support the development of all.

23

The Board and Executive Leadership Team monitor the financial performance of the charity and associated risks through a dashboard spreadsheet and staff meetings.

24

Statement of Trustees’ responsibilities for the Financial Statements

The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees’ Annual Report, incorporating the strategic report, and the financial statements, in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year, in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and charity and of the incoming resources and application of resources, including the income and expenditure, of the Group and charity for that period.

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

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

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Disclosure of information to auditor

Each of the members of the Board of Trustees has confirmed that:

The report of the Board was approved by the Board on 18 January 2023 and signed on its behalf on 18 January 2023 by John Robinson, Chair.

Chair of Trustees

25

Independent Auditors’ Report to members of Livability

Independent Auditor’s Report to the Members of Livability

Opinion

We have audited the financial statements of Livability (the “charitable company”) and its subsidiaries (the “group”) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Charitable Company Statement of Financial Activities, the Group and Charitable Company Balance Sheets, the Group and Charitable Company Statement of Cash Flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.

Material uncertainty related to going concern

We draw attention to Note 1 in the financial statements, which indicates that whilst Trustees consider the going concern basis to be appropriate, there are a number of uncertain factors in the forecasts used to consider going concern. The principal uncertainties are the timing of cash receipts of a significant legacy and further property disposals and the operational effectiveness of plans to increase fee rates and reduce operational expenditure. In addition, the forecasts predict a need for a loan covenant waiver which at this time has not been agreed with the lender. Therefore, at the date of signing these financial statements there are plausible but not remote scenarios whereby the plans are not delivered in line with the forecast resulting in a cash deficit. As stated in Note 1, these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the charity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

26

Other information

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

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 25, 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.

27

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

Auditor’s responsibilities for the audit of the financial statements

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

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including internal specialists. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were Care Quality Commission and OfSTED Standards, General Data Protection Regulation, employment legislation and health and safety legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing revenue items, including local authority agreements and contracts to ensure the fees charged are in line with the terms of the agreement, and agree to bank, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, CQC and Ofsted, and reading minutes of meetings of those charged with governance.

28

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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

Use of our report

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

Julia Poulter

Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP

Statutory Auditor London, United Kingdom

18 January 2023

29

Statement of Financial Activities incorporating an income and expenditure account for the year ended
31 March 2022		 Statement of Financial Activities incorporating an income and expenditure account for the year ended
31 March 2022
Group
2021/22
Note		 Unrestricted
Funds
Restricted
Funds
Endowment
funds
Total
Funds
Donations and Legacies
2
Charitable Activities
2
Other Trading Activities
2
Investments
2
Gain on Disposal of Fixed Assets
4
Total Income

Expenditure on:
Raising Funds
5
Charitable Activities
5
Other
5
Loss on Disposal of Fixed Assets
4
Total Expenditure

Net Income/(Expenditure)

Transfer between funds
14
Actuarial Gains/(losses)
13
Net gain/(loss) on revaluation of properties
3
Net gain/(loss) on revaluation of
Investment
3
Net Movement in funds

Reconciliation of funds
Total funds carried forward		 £'000
£'000
£'000
£'000
4,398
1,563
-
5,961
41,769
376
-
42,145
2,784
-
-
2,784
48
-
-
48
2,578
-
-
2,578
51,577
1,939
-
53,516
1,648
27
-
1,675
45,373
485
62
45,920
1,848
844
-
2,692
-
-
-
-
48,869
1,356
62
50,287
2,708
583
(62)
3,229
32
(32)
-
-
1,930
-
-
1,930
8,045
-
-
8,045
926
5
-
931
13,641
556
(62)
14,135
20,330
6,161
6,663
33,154
33,971
6,717
6,601
47,289

Results in the statement of financial activities derive from continuing operations.

30

Statement of Financial Activities incorporating an income and expenditure account for the year ended
31 March 2021		 Statement of Financial Activities incorporating an income and expenditure account for the year ended
31 March 2021
Group
Note		 Unrestricted
Funds
Restricted
Funds
Endowment
funds
Total Funds
Donations and Legacies
2
Charitable Activities
2
Other Trading Activities
2
Investments
2
Gain on Disposal of Fixed Assets
4
Total Income

Expenditure on:
Raising Funds
5
Charitable Activities
5
Other
5
Loss on Disposal of Fixed Assets
4
Total Expenditure

Net Income/(Expenditure)

Transfer between funds
14
Actuarial Gains/(losses)
13
Net gain/(loss) on revaluation of
properties
3
Net gain/(loss) on revaluation of
Investment
3
Net Movement in funds

Reconciliation of funds
Total funds carried forward		 £'000
£'000
£'000
£'000
3,715
2,842
-
6,557
38,962
32
-
38,994
532
-
-
532
4
44
7
55
-
-
-
-
43,213
2,918
7
46,138
942
55
-
997
45,693
656
62
46,411
366
588
-
954
71
-
-
71
47,072
1,299
62
48,433
(3,859)
1,619
(55)
(2,295)
453
(453)
-
-
(4,557)
-
-
(4,557)
-
-
-
-
148
9
57
214
(7,815)
1,175
2
(6,638)
28,145
4,986
6,661
39,792
20,330
6,161
6,663
**33,154 **

Results in the statement of financial activities derive from continuing operations.

31

Statement of Financial Activities incorporating an income and expenditure account for the year ended
31 March 2022		 Statement of Financial Activities incorporating an income and expenditure account for the year ended
31 March 2022
Charity
Note		 Unrestricted
Funds
Restricted
Funds
Endowment
funds
Total
Funds

Donations and Legacies
2
Charitable Activities
2
Other Trading Activities
2
Investments
3
Net gain on Disposal of Fixed Assets
4
Total Income

Expenditure on:
Raising Funds
5
Charitable Activities
5
Other
5
Net Loss on Disposal of Fixed Assets
4
Total Expenditure

Net Income/(Expenditure)

Transfer between funds
14
Actuarial Gains/(losses)
13
Net gain/(loss) on revaluation of properties
3
Net gain/(loss) on revaluation of
Investment
3
Net Movement in funds

Reconciliation of funds

Total funds carried forward		 £'000
£'000
£'000
£'000
4,180
1,270
-
5,450
41,765
-
-
41,765
78
-
-
78
9
-
-
9
2,578
-
-
2,578
48,610
1,270
-
49,880
1,645
27
-
1,672
44,871
137
-
45,008
-
844
-
844
-
-
-
-
46,516
1,008
-
47,524
2,094
262
-
2,356
32
(32)
-
-
1,930
-
-
1,930
8,045
-
-
8,045
924
5
-
929
13,025
235
-
13,260
20,303
2,395
5,985
28,683
33,328
2,630
5,985
41,943

Results in the statement of financial activities derive from continuing operations.

32

Statement of Financial Activities incorporating an income and expenditure account for the year
ended 31 March 2021		 Statement of Financial Activities incorporating an income and expenditure account for the year
ended 31 March 2021
Charity
Note		 Unrestricted
Funds
Restricted
Funds
Endowment
funds
Total
Funds

Donations and Legacies
2
Charitable Activities
2
Other Trading Activities
2
Investments
3
Net gain on Disposal of Fixed Assets
4
Total Income

Expenditure on:
Raising Funds
5
Charitable Activities
5
Other
5
Net Loss on Disposal of Fixed
Assets
4
Total Expenditure

Net Income/(Expenditure)

Transfer between funds
14
Actuarial Gains/losses
13
Net gain/(loss) on revaluation of
properties
3
Net gain/(loss) on revaluation of
Investment
3
Net Movement in funds

Reconciliation of funds

Total funds carried forward		 £'000
£'000
£'000
£'000
3,715
1,459
-
5,174
38,165
-
-
38,165
7
-
-
7
4
-
6
10
-
-
-
-
41,891
1,459
6
43,356
932
55
-
987
44,483
73
-
44,556
306
588
-
894
71
-
-
71
45,792
716
-
46,508
(3,901)
743
6
(3,152)
453
(453)
-
-
(4,557)
-
-
(4,557)
-
-
-
-
148
9
52
209
(7,857)
299
58
(7,500)
28,160
2,096
5,927
36,183
20,303
2,395
5,985
28,683

Results in the statement of financial activities derive from continuing operations.

33

Company Registration Number 5967087

Balance Sheet – Livability Group and Charity for year ended 31 March 2022 Balance Sheet – Livability Group and Charity for year ended 31 March 2022
Group Charity
Note 2022
2021		 2022
2021
£'000
£'000		 £'000
£'000
Fixed Asset:
Tangible Assets
8
Financial Investments
9
Social Investment
10
Total Fixed Assets

Current Assets:
Debtors and Stocks
11
Cash at Bank
Total Current Assets
Liabilities
Creditors: Amounts falling due in 1 year
12
Net Current Assets
Total Asset less Current Liabilities
Creditors: Amounts falling beyond one
year
12
Net Assets excluding Pension Liability
Defined Benefit Pension Liability
13
Total Net Assets

The Funds of the Charity
Permanent Endowment Funds
14
Restricted Funds
14
Unrestricted Funds
14
Pension Reserve
14
 43,172
38,575
3,195
2,017
4,067
6,536
50,434
47,128		 37,693
35,244
3,165
1,998
4,067
6,536
44,925
43,778
5,154
4,182
7,833
4,069
12,987
8,251		 6,618
3,126
6,160
2,963
12,778
6,089
(6,299)
(11,996)		 (6,637)
(11,803)
6,688
(3,745)
57,122
43,383
(9,796)
(6,604)
47,326
36,779
(37)
(3,625)		 6,141
(5,714)
51,066
38,064
(9,086)
(5,755)
41,980
32,308
(37)
(3,625)
47,289
33,154		 41,943
28,683
6,601
6,663
6,717
6,161
34,008
23,955
(37)
(3,625)		 5,985
5,985
2,630
2,395
33,365
23,928
(37)
(3,625)
47,289
33,154		 41,943
28,683

The report was approved by the Board and signed in its behalf on 18 January 2023.

Chair: John Robinson

Trustee: John Weaving

34

Statement of Cashflows for the year ended 31 March 2022 Statement of Cashflows for the year ended 31 March 2022 Statement of Cashflows for the year ended 31 March 2022 Statement of Cashflows for the year ended 31 March 2022 Statement of Cashflows for the year ended 31 March 2022 Statement of Cashflows for the year ended 31 March 2022
Note Group Charity

2022
2021		 2022
2021
Cashflows from Operating activities £'000
£'000		 £'000
£'000

Net cash provided by/(used in) by operating activities
C1

Cashflows from Investing activities
Dividends, Interest and rent from Investments
Proceeds from the sales of property, plant and equipment

Cash flows from investing activities
Purchase of Property, Plant and Investment
Proceeds from sales of investments
Purchase of Investments
Net cash provided by/(used in) investing activities

Cash flows from financing activities
Interest on financing activities
Repayments of borrowings
Cash inflow from borrowing
Net cash provided by /(used in) financing
activities

Change in cash and cash equivalents in the period
Cash and cash equivalents at the start of the period
Cash and cash equivalents at the end of the
period		 (381)
2,419
-
55
7,940
626
(322)
(750)
-
630
-
7,618
561
(393)
(351)
(254)
-
(2,826) (2,419)
(3,473) (2,770)

3,764
210
4,069
3,252
7,833
**3,462 **		 (1,015)
1,681
-
10
7,940
626
(322)
(120)
-
630
-
7,618
1,146
(393)
(326)
(254)
-
(2,759) (2,419)
(3,406) (2,745)
3,197
82
2,963
2,260
6,160
2,342

35

Notes to the statement of cashflows

C1: Reconciliation of net income /(expenditure) to net
cash flow from operations
Net income/(expenditure) for the year as stated in the
Statement of Financial Activities
Adjustments for:
Depreciation
Revaluation/(Impairment) of functional
assets
Revaluation/(Impairment) of social investment
(Gain)/Losses on investments
Dividends, interest and rent from investments
Interest on financing activities
Non-cash movements in defined benefit pension scheme
(Gain)/Losses on the disposal of fixed assets
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors

Net cash flow provided by/(used in)
Operations		 Group
2022
2021
£'000
£'000
4,160
(2,081)
523
1,406
5,110
-
(224)
(125)
(931)
-
-
(55)
421
351
1,930
(1,680)
(2,578)
71
(3,095)
1,329
(5,697)
3,203
(381)
2,419		 Charity
2022
2021
£'000
£'000
3,285(2,943)
712
1,306
5,110
(216)
(224)
(125)
(929)
-
-
(10)
393
326
1,930(1,680)
(2,578)
71
(3,492)
1,761
(5,222)
3,191
(1,015)
**1,681 **
C2: Analysis of cash and cash equivalents

Cash at bank and in hand
Notice of deposits
Overdraft facility repayable on demand
Total cash and cash equivalents		 Group
At 31
March
At 31
March
2022
2021
£'000
£'000
7,833
4,069
-
-
-
-
7,833
4,069		 Charity
At 31
March
At 31
March
2022
2021
£'000
£'000
6,160
2,963
-
-
-
-
6,160
2,963

C3: Analysis of changes in net debts

Group
Cash
Cash equivalents
Overdraft facility repayable on demand

Loans falling due with one year
Loans falling due after one year
Finance obligations
**Total **		 At start
of year
Cashflow
Other non cash
changes
At year
end
£'000
£'000
£'000
£'000
4,069
3,764
-
7,833
-
-
-
-
-
-
-
-
4,069
3,764
-
7,833
(827)
390
(437)
(6,604)
(2,826)
(390)
(9,820)
-
-
-
-
(3,362)
938
-
(2,424)

36

Charity
Cash
Cash equivalents
Overdraft facility repayable on demand

Loans falling due within one year
Loans falling due after one year
Finance obligations
**Total **		 At start
of year
Cashflow
Other non cash
changes
At year
end
£'000
£'000
£'000
£'000
2,963
3,197
-
6,160
-
-
-
-
-
-
-
-
2,963
3,197
-
6,160
(826)
412
(414)
(5,755)
(2,759)
(412)
(8,926)
-
-
-
-
(3,618)
438
-
(3,180)

37

Note 1 Accounting Policies

The policies below set out the bases of recognition and measurement used by Livability and its subsidiary charities and companies for material items in the financial statements.

Basis of preparation

The consolidated financial statements have been prepared on a going concern basis, in accordance with applicable accounting standards, under the historical cost convention, as modified by the inclusion of investments at market value. They have also been prepared in accordance with the Charities SORP (FRS 102)

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 as applied to charitable companies.

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

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis

The consolidated financial statements include the income, expenditure, assets, liabilities and funds of Livability and its subsidiary charities and companies. These amounts are included on each line in the financial statements with investments, transactions and balances between the members of the Livability charity group eliminated so that the consolidated financial statements report the interactions between the Livability group and external parties.

Going Concern

As has been documented in the national press, social care has been hit hard on the recruitment front. An almost perfect storm has been created through Brexit, the termination of contracts for non-vaccinated staff, poor levels of hourly pay from commissioners and a general malaise among the working public to undertake work involving personal care. This has led to a need to address shortfalls in labour with significantly more expensive agency staff with the consequent financial implications.

In recent years, Livability has made significant progress in delivering efficiency improvements which has helped to limit this impact and has additionally generated proceeds from property sales of £7.9m in the year ended 31 March 2022 to support the ongoing restructuring activity. In April 2022, Livability also reached an agreement with Metro Bank regarding long term funding arrangements replacing an expiring Revolving Credit Facility of £4m with an equivalent Term Loan which combined with existing term loan brings our total group borrowings to £10.2m.

In line with many in the sector, Livability is seeking to move to open book arrangements for its primary activities which will ensure the recovery of costs especially where, as with this year, those costs are driven by events outside the charity’s control. In addition, fee rises in both Care Service Operations and Education are being negotiated with commissioners to reflect rising costs more generally, a licence has been obtained to employ EU nationals as an Authorised Sponsor, rates of pay are being reviewed and there is capacity to increase student numbers in the Education business particularly at the recently opened Millie College. Continuing action is being taken on the overhead base.

Outside of operational activity there are a small number of additional properties which have been placed on the market for sale (with estimated cash proceeds of £3.2m). There is also a large legacy (estimated value of £5.2m) due to the organisation and a commencement of the distribution of assets is anticipated during 2023.

38

The Executive Team is discussing with Metro Bank the opportunity for a period of flexibility around the financial covenant whilst this remaining programme of property sales and the receipt of the major legacy are concluded.

Trustees agreed that the actions noted above must be addressed for Livability to be financially sustainable and, as such, the conditions noted above indicate the existence of a material uncertainty that may cast significant doubt upon the entity’s ability to continue as a going concern.

Having considered the charity's forecasted cash flow projections covering a period of at least 12 months from the date of signing of the financial statements, the trustees have concluded that it is appropriate to adopt the going concern basis in the preparation of these financial statements.

A. Funds

Unrestricted funds

Unrestricted funds arise from income donated to or earned by the charity in pursuit of its charitable objectives and may be applied in any way that meets those charitable objectives.

Designated funds

Designated funds are those unrestricted funds that the Trustees have identified and set aside to meet particular purposes or to segregate them from the General Fund. A more detailed description of these funds is available at note 14.

General Fund

The Charity’s General Fund are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds

Restricted funds are those funds that are available for specific, restricted purposes within the overarching charitable objectives of Livability. Restricted funds arise from conditions attached to them by the donor or the activity generating the funds, by deliberate requests for such funds by the Charity. Subsidiary charities whose objectives are consistent with, but more narrowly drawn than, those of Livability are also reported within restricted funds.

Permanent endowment funds

Restricted endowment funds represent assets that are specified by their donor to be retained and used by the Charity to pursue its objectives, unless the donor specifies otherwise.

Transfers between funds

During the year, £32k was transferred from restricted funds to unrestricted funds. The transfer relates to expenditure which came out of unrestricted funds instead of restricted as represented in Note 14.

Purchases of fixed assets generate a transfer from the fund providing the funding for the purchase to the relevant designated reserve. Disposals of fixed assets generate a transfer from the designated reserve to general funds unless there is a restriction on the use of the disposal proceeds.

Payments of deficit contributions to pension schemes cause a transfer from General Fund to the Pension deficit fund, and repayment of loans generates a transfer from the General Fund to the Property Fund.

39

Note 1 Accounting Policies (cont'd)

Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations, legacies and grants

Income from donations, legacies and grants is recorded in the financial statements when entitlement to the income is established, it is more likely than not that the income will be received and the amount to be received can be reliably estimated and any conditions required to receive the funds have been met or are within the control of the charity. In practice, most donations income is recognised when received.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy is recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured. Where a life interest in an estate exists, no income is recognised other than from distributions from that estate to Livability.

Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Charity's accounting policies.

Income from charitable activities

Where Livability provides services or goods in return for payment, the income from these items is recognised when Livability completes its part of the agreement by delivering the services or goods.

Grants related to performance of contractual obligations are recognised when Livability has entitlement to the income, it is probable that income will be received and the amount of income can be measured reliably.

Interest receivable

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

Income tax recoverable

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

40

Note 1 Accounting Policies (cont'd)

B. Expenditure and allocation of support costs

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been listed in such a way as to accumulate all the charity’s costs of employees, goods and services relating to a particular activity of the charity under that activity heading. Direct costs, including attributable salaries and associated costs, are allocated on an actual basis to the key areas of activities. Indirect costs (support costs), primarily comprising staff costs of employees based at the charity’s National Office in London, are allocated to each activity heading using a number of identified cost drivers, including expenditure as a proxy measure for usage of resources and staff numbers .

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

C. Fundraising Costs

Expenditure on raising funds comprise salary costs and other associated expenditure relating to the generation of voluntary income.

D. Tangible fixed assets

Tangible fixed assets are significant physical items of property, plant and equipment held for continuing use by the charity in delivering its charitable objectives.

Recognition

Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.

Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, the charity estimates fair value using an income or depreciated replacement cost approach.

Gains and losses on revaluation are recognised in the Consolidated statement of financial activities, with a separate revaluation reserve being shown in the Statement of funds note.

Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.

At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

41

Note 1 Accounting Policies (cont'd)

Separate components

The charity holds freehold buildings with significant components that have materially different useful lives from the rest of the building. These components are depreciated separately over their individual lives at the following rates:

rest of the building. These
wing rates:		 components are d
Main Fabric - 100 years
Pitched Roof - 70
Flat Roof - 40
Windows and Doors - 40
Boilers and Heaters - 15
Mechanical systems - 30
Bathrooms - 30
Kitchens - 20
Lifts - 25
Electrics - 40
Alarm and Security - 15

Freehold land and assets in the course of construction are not depreciated.

Other Fixed Assets

Assets are depreciated evenly to their estimated residual values over their estimated useful lives as follows:-

Leasehold buildings over the lease term Horticultural buildings over 25 years Equipment, fittings and furniture over 5 years Plant and machinery over 20 years Cars over 4 years Minibuses and coaches over 6 years Computers and software over 3 years Chalets and mobile homes over between 10 and 30 years

The residual value of all assets is assumed to be zero.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of financial activities.

42

Note 1 Accounting Policies (cont'd)

E. Financial Investments

Investments are items of property and other assets held to generate income and capital growth for the Charity.

Listed and other financial investments

Investments that have a ready market where the value can be determined by reference to published data are valued at the bid price. Where no market is available in the investments, they are valued at cost less impairment.

Investment properties

Investment properties are initially measured at cost and subsequently at fair value with any change therein recognised in the statement of financial activities. Livability's valuation methodology is to obtain external revaluation of its investment properties on a five-year rolling basis. The properties were externally revalued in 2022. In the intervening period between the 5 years, the charity has obtained premarket advice on projected sales. More recent property disposals support the trustees view that the book values are not materially misstated.

Investments in group entities

Investments in group entities are held at their cost less any identified impairment.

Gains and losses

All gains and losses are taken to the Statement of Financial Activities as arise. Realised gains and losses on investments is calculated as the difference between sales proceeds and their opening carrying value. Unrealised gains and losses are calculated as the difference between fair value at year end and their carrying value. Realised and unrealised gains and losses are combined in the Statement of Financial Activities.

F. Social investments

Programme-related investments

Programme-related properties are properties that are held by the charity and provided to individuals or organisations in delivering charitable objects which are line with Livability’s own charitable objects. This type of fixed asset is held without seeking to make a return, other than one which is incidental.

Properties held in trust by Livability are held at historical transfer costs.

G. Financial Instruments

Financial instruments are contracts that give rise to a financial asset for one party to the contract and a financial liability or equity instrument for the other party.

Basic Financial Instruments

Livability and its group entities have basic financial instruments that are recognised when the provisions of the contract are met and for which the accounting policies are as follows:

43

Note 1 Accounting Policies (cont'd)

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Trade debtors and other amounts receivable

Trade debtors and other amounts receivable are recognised at the value defined by the contract, agreement or legislation giving rise to the amount receivable. Impairment of receivable amounts is recognised as expenditure in the Statement of Financial Activities.

Trade creditors and other amounts payable

Trade creditors and other amounts payable are recognised at the value defined by the contract, agreement or legislation giving rise to the liability.

Bank loans

Bank loans are recognised at the present value of the cash flows under the loan agreement, discounted at the effective interest rate for each bank loan.

Other Financial Instruments

The accounting policies for other financial instruments are as follows:

Derivative financial assets and liabilities

Livability carries derivative financial assets and liabilities at their fair value and accounts for changes in fair value through the Statement of Financial Activities. Interest rate collars, which are a combination of a put and a call interest rate option, are valued at the option value using standard tools for the calculation of such items. Amounts payable or receivable under loan contracts for the purchase of property made to or by the charity that vary with the price of the related property are recognised separately from the loan itself and changes in the value are recognised in the Statement of Financial Activities. The loan is accounted for as a basic financial instrument as set out above.

H. Entity combinations

Entity combinations are the effect on the accounts of Livability and the Livability group of changes to the structure of the charity and the group that arise from the purchase of businesses and companies, the gift of charities and mergers between charities. In accounting for entity combinations, Livability applies the requirements of FRS 102 s19 and section PBE34.75 – PBE34.86.

Unless the requirements for merger accounting are met, an acquiring entity is identified in an entity combination, being the dominant party in a charity merger or the contractual acquirer of a business or company.

In all combinations the assets and liabilities of the entity joining the group that exist at the date of combination are included in the group accounts. These assets and liabilities may include Intangible assets such as brand value, customer lists and order books that are not recognised in the individual financial statements of an acquired entity. All assets and liabilities in the combination are initially recognised at their fair values. After that date, the accounting policies set out in this note are applied to recognition, de-recognition and valuation of the assets and liabilities.

When the transaction is in substance a gift from the Trustees or members of an existing charity, a gift with the value of the net asset value of the assets and liabilities of the gifted charity is recorded and an

44

Note 1 Accounting Policies (cont'd)

investment with the same value is recorded in the books of the charity. Transaction costs associated with the combination are recognised in the statement of financial activities (SOFA) as incurred.

When a business or company is purchased, the cost of the investment is recognised as the fair value of the consideration payable, including transaction costs.

I. Impairment of assets

At each accounts date, the recoverable amounts of assets are assessed to determine whether they have fallen below their carrying values. When the recoverable amount of an asset falls below its carrying amount, the value of the asset is said to be impaired. The carrying amount is reduced to the recoverable amount with the loss in value reported in income and expenditure.

The recoverable amount of an asset is the higher of the amount that can be generated by using the asset or by selling it. When assessing the recoverable amount of purchased goodwill, the cash flows arising from the group of assets that make up the cash-generating unit in an entity combination are used to assess the amount generated by using the assets. The amount attributable to goodwill is taken to be the excess of the recoverable amount of the cash-generating unit over the fair values of the individual assets in the cash- generating unit.

J. Leases

Operating leases

Where Livability acts as the lessee, the cost of operating leases is recognised by spreading the total payments under the lease, including lease premiums paid, evenly over the lease term. Lease incentives that reduce the rent payable under the lease are taken as part of the total payments.

Where Livability acts as the lessor, income is recognised by spreading the total receipts under the lease evenly over the lease term. Lease incentives paid and premiums received are treated as part of the total receipts. Costs of arranging the lease of an asset are added to the cost of the leased asset and recognised over the lease term in the same way as the lease income.

K. Short-term employee benefits

The liability to pay short-term employee benefits, which are mainly salary, the entitlement to paid leave and related employment taxes, is recognised as the employees earn entitlement to pay and paid leave under the terms of their employment contract, with a corresponding expense recognised in expenditure. Amounts paid are deducted from the liability when paid.

L. Redundancy and termination payments

Redundancy and termination payments are recognised in the Statement of Financial Activities when they become due for payment as a result of notice given to staff or agreement between the charity and the employee.

M. Pensions

Defined contribution pension schemes

Contributions to defined contribution pension schemes are recognised in the Statement of Financial Activities when entitlement to the contributions has been earned by the member of staff. The cost is allocated to the activity within which the staff member has worked and the fund that is resourcing the activity.

45

Note 1 Accounting Policies (cont'd)

Defined benefit pension schemes – single employer schemes

As the principal employer in such schemes, Livability has a duty to fund the schemes to enable them to pay the benefits due to the scheme members. A liability equal to the net present value of future liabilities payable under the schemes net of the fair value of the assets of the scheme is recognised at the date of the accounts.

The net present value of the future liabilities is calculated for each scheme by a qualified actuary using the project unit credit method, taking account of expected changes to future benefits arising from salary changes and changes in pension payments from inflation and other effects. The discount rate applied to the future liabilities is set by reference to the return rate from high-quality corporate bonds with the same currency and similar maturity as the pension payments.

An interest charge equal to the unwinding of the discount on the net liability is recognised each year. The costs of administration of the schemes are recognised as an expense each year.

Changes to the net liability from changes to actuarial assumptions underlying the valuation and the difference between the actual return on assets and that included in the annual interest charge are recorded as actuarial changes and presented in the SOFA within other recognised gains and losses.

Defined benefit pension schemes – multi-employer schemes

The multi-employer defined benefit pension scheme is accounted for as a defined contribution scheme, due to insufficient information available from the actuary, to split the assets and liabilities of the scheme by employer, to enable the scheme to be accounted for as a defined benefit scheme.

Contributions made towards the scheme are charged to the Statement of Financial Activities when they become payable.

Where Livability has a liability to pay deficit reduction payments to multi-employer schemes, the present value of the agreed payments are discounted using the corporate bond rate as an appropriate discount rate. The discount is unwound annually with the unwinding effect charged to the Statement of Financial Activities.

N. Cash flows

The consolidated cash flows of Livability and its subsidiary companies are shown and reported using the indirect method of calculating cash flows, eliminating flows between the entities in the Livability group.

O. Properties held for Sale

Properties held for sale are stated at the lower of carrying value and net realisable value (NRV). NRV is based on the actual or estimated selling price less all further costs to completion.

P. Taxation Status

The company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The subsidiary companies make qualifying donations of all taxable profit to Livability. No corporation tax liability on the subsidiaries arises in the accounts.

46

Note 1 Accounting Policies (cont'd)

Q. Judgements and Uncertainties

In preparing these financial statements, the directors have made judgements to determine whether there are indicators of impairment of the charity's tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability, expected future financial performance of the asset and valuation of investment and fixed assets.

The other key source of estimated uncertainty is in relation to the depreciation of tangible fixed assets (see note 8).

Tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Fixed assets and investments are annually valued to assess and recognise any change in values. (see accounting policy note 1.D for further details)

Estimates of the net pension liability depend on a number of complex judgements relating to the discount rate used, changes in retirement ages and mortality rates. The group engages a firm of actuaries to provide expert advice about the assumptions made and the effect on the pension liability of the changes in these assumptions (see accounting policy note 1.M for further details).

Note 2 Analysis of Income for the year ended 31 March 2022

Group Unrestricted
Funds
Restricted
Funds
Endowment
funds
Total
Funds
£'000
£'000
£'000
£'000

Donations and Legacies
Donations
Income from Charitable events
Legacies
Grants from government and other public
bodies
Total Donations and Legacies

Charitable Activities
Residential and Community
Education and Care
Community Engagement
Trusts
Total Charitable Activities

Other Trading
Investment Income
Total Income		 1,026
405
-
1,431
20
-
-
20
2,264
21
-
2,285
1,088
1,137
-
2,225
4,398
1,563
-
5,961
33,268
-
-
33,268
8,477
376
-
8,853
-
-
-
-
24
-
-
24
41,769
376
-
42,145
2,784
-
-
2,784
48
-
-
48
48,999
1,939
-
50,938

47

Note 2 Analysis of Income for the year ended 31 March 2021 Note 2 Analysis of Income for the year ended 31 March 2021

Group
Unrestricted
Funds
Restricted
Funds
Endowment
funds
Total
Funds
£'000
£'000
£'000
£'000

Donations and Legacies
Donations
Income from Charitable events
Legacies
Grants from government and other public
bodies
Total Donations and Legacies

Charitable Activities
Residential and Community
Education and Care
Community Engagement
Trusts
Total Charitable Activities

Other Trading
Investment Income
Total Income		 842
2,150
-
2,992
-
-
-
-
897
104
-
1,001
1,976
588
-
2,564
3,715
2,842
-
6,557
29,803
32
-
29,835
9,102
-
-
9,102
57
-
-
57
-
-
-
-
38,962
32
-
38,994
532
-
-
532
4
44
7
55
43,213
2,918
7
46,138

Note 2 Analysis of Income for year ended 31 March 2022

Charity Unrestricted
Funds
Restricted
Funds
Endowment
funds
Total
Funds
£'000
£'000
£'000
£'000
Donations and Legacies
Donations
Income from Charitable events
Legacies
Grant from Government & Other public
bodies
Total Donations and Legacies

Charitable Activities
Residential and Community
Education and Care
Community Engagement
Trusts
Total Charitable Activities

Other Trading
Investment Income
Total Income		 916
405
-
1,321
-
-
-
-
2,264
21
-
2,285
1,000
844
-
1,844
4,180
1,270
-
5,450

33,268
-
-
33,268
8,473
-
-
8,473
-
-
-
-
24
-
-
24
41,765
-
-
41,765

78
-
-
78
9
-
-
9
46,032
1,270
-
**47,302 **

48

Note 2 Analysis of Income for the year ended 31 March 2021

Charity Unrestricted
Funds
Restricted
Funds
Endowment
funds
Total
Funds
£'000
£'000
£'000
£'000
Donations and Legacies
Donations
Income from Charitable events
Legacies
Grant from Government & Other public
bodies
Total Donations and Legacies

Charitable Activities
Residential and Community
Education and Care
Community Engagement
Trusts
Total Charitable Activities

Other Trading
Investment Income
Total Income		 842
767
-
1,609
-
-
-
-
897
104
-
1,001
1,976
588
-
2,564
3,715
1,459
-
5,174
29,006
-
-
29,006
9,102
-
-
9,102
57
-
-
57
-
-
-
-
38,165
-
-
38,165
7
-
-
7
4
-
6
10
41,891
1,459
6
43,356

Note 2a Grants receivable from government and other public bodies for the year ended March 2022

Group Unrestricted
Funds
Restricted
Funds
Endowment
funds Total
Funds
Total
Funds
£'000
£'000
£'000
£'000
Grant Income
Greater London Authority
Rural Payment Agency
Coronavirus Job Retention Scheme
(CJRS)
Inner and Outer London Authorities
Non-London Local Authorities		 -
844
-
844
-
-
-
-
162
-
-
162
240
-
-
240
686
293
-
979
1,088
1,137
-
2,225

£838,494 of Grant income from London and Non London local Authorities were received for Covid 19 related control measures including PPE

49

Note 2a Grants receivable from government and other public bodies for the year ended March 2021

Group Unrestricted
Funds
Restricted
Funds
Endowment
funds Total
Funds
Total
Funds
£'000
£'000
£'000
£'000
Grant Income
Greater London Authority
Rural Payment Agency
Coronavirus Job Retention Scheme (CJRS)
Inner and Outer London Authorities
Non-London Local Authorities		 -
588
-
588
9
-
-
9
465
-
-
465
132
-
-
132
1,370
-
-
1,370
1,976
588
-
**2,564 **

Grant income from London and Non London local Authorities received for Covid 19 related control measures including PPE

Note 2a Grants receivable from government and other public bodies for the year ended 31 March 2022

Charity Unrestricted
Funds
Restricted
Funds
Endowment
funds Total
Funds
Total Funds
£'000
£'000
£'000
£'000
Grant Income
Greater London Authority
Rural Payment Agency
Coronavirus Job Retention Scheme (CJRS)
Inner and Outer London Authorities
Non-London Local Authorities		 -
844
-
844
-
-
-
-
162
-
-
162
240
-
-
240
598
-
-
598
1,000
844
-
1,844

Grant income from London and Non London local Authorities received for Covid 19 related control measures including PPE.

50

Note 2a Grants receivable from government and other public bodies for the year ended 31 March 2021

Charity Unrestricted
Funds
Restricted
Funds
Endowment
funds Total
Funds
Total Funds
£'000
£'000
£'000
£'000
Grant Income
Greater London Authority
Rural Payment Agency
Coronavirus Job Retention Scheme (CJRS)
Inner and Outer London Authorities
Non-London Local Authorities		 -
588
-
588
9
-
-
9
465
-
-
465
132
-
-
132
1,370
-
-
1,370
1,976
588
-
**2,564 **

Grant income from London and Non London local Authorities received for Covid 19 related control measures including PPE.

Note: 3 Income from Investments for the year ended 31 March 2022 Note: 3 Income from Investments for the year ended 31 March 2022
Group Unrestricted
Restricted
Endowment
Total
Fund
Fund
Fund
£'000
£'000
£'000
£'000

Analysis of Income from Investments
Property Rental
Interest Receivable
Dividends from Investments
Total Investment income

Analysis of gain/loss from Investment Revaluation
Listed Investment
Investment Property
Social Investment
Total (gains)/loss from Investment
Revaluations		 39
-
-
39
-
-
-
-
9
-
-
9
48
-
-
48
11
5
-
16
1,139
-
-
1,139
(224)
-
-
(224)
926
5
-
**931 **

51

Note: 3 Income from Investments for the year ended 31 March 2021 Note: 3 Income from Investments for the year ended 31 March 2021
Group Unrestricted
Restricted
Endowment
Total
Fund
Fund
Fund
£'000
£'000
£'000
£'000
2
44
-
46
- -
-
-
2
-
7
9
4
44
7
55
148
9
57
214
- - - -
----

52

Note: 3 Income from Investments for the year ended 31 March 2022 Note: 3 Income from Investments for the year ended 31 March 2022
Charity Unrestricted
Restricted
Endowment
Total
Fund
Fund
Fund
£'000
£'000
£'000
£'000
Analysis of Income from Investments
Property Rental
Interest Receivable
Dividends from Investments
Total Investment income
Analysis of gain/loss from Investment Revaluation
Listed Investment
Investment Property
Social Investment
Total (gains)/loss from Investment Revaluations
Analysis of loss/gain from Property Revaluation
Functional Property
Total (gain)/loss from Investment Revaluations		 -
- -
-
-
- -
-
9
- -
9
9
-
-
9
11
5 -
16
1,139
-
-
1,153
(224)
- -
(224)
924
5
-
929
8,045
-
-
8,045
8,045
-
-
8,045

53

Note: 3 Income from Investments for the year ended 31 March 2021 Note: 3 Income from Investments for the year ended 31 March 2021 Note: 3 Income from Investments for the year ended 31 March 2021 Note: 3 Income from Investments for the year ended 31 March 2021
Charity Unrestricted
Restricted
Endowment
Total
Fund
Fund
Fund
£'000
£'000
£'000
£'000
Analysis of Income from Investments
Property Rental
Interest Receivable
Dividends from Investments
Total Investment income

Analysis of gain/loss from Investment Revaluation
Listed Investment
Investment Property
Social Investment
Total (gains)/loss from Investment
Revaluations
Analysis of gain/loss from Property Revaluation
Functional Property
Total (gains)/loss/ from Investment
Revaluations		 2

-

2		 -
-
2
-
-
-
6
8
4 -
6
10
148
-

-
 9
52
209
-
-
-
-
-
-
148 9
52
209
-
 -
-
-
- -
-
-
Note: 4 Profit/(Loss) on Disposal of Fixed
Charity
2022
2021
£'000
£'000

Disposal Proceeds net of costs
Net book value of disposal assets
Gain/(Losses) on Disposal		 7,940
626
(5,362)
(697)
2,578
(71)

54

Note 5 Expenditure Analysis for the year ended 2022


Group
Analysis of Expenditure
Raising Funds
Internal Fundraising Costs
Support Costs
Total Raising Funds

Costs of Charitable activities
Residential and Community
Education
Community Engagement
Trusts
Total Charitable activities
Other
Impairment of Social Investments
(Gain)/Loss on Disposal of Fixed
Assets
Total Expenditure
Unrestricted
Funds
Restricted
Fund
Endowment
Funds
Total
Funds
£'000
£'000
£'000
£'000
1,648
27
-
1,675
-
-
-
-
-
-
-
-
1,648
27
-
1,675
-
-
62
62
36,924
116
-
37,040
8,417
369
-
8,786
32
-
-
32
-
-
-
-
45,373
485
62
45,920
1,848
844
-
2,692
-
-
-
-
-
-
-
-
1,848
844
-
2,692
48,869
1,356
62
**50,287 **

55

Note 5 Expenditure Analysis for the year ended 31 March 2021


Group
Analysis of Expenditure
Raising Funds
Internal Fundraising Costs
Support Costs
Total Raising Funds

Costs of Charitable activities
Residential and Community
Education
Community Engagement
Trusts
Total Charitable activities
Other
Impairment of Social Investments
(Gain)/Loss on Disposal of Fixed
Assets
Total Expenditure
Unrestricted
Funds
Restricted Fund
Endowment
Funds
Total
Funds
£'000
£'000
£'000
£'000
760
55
-
815
37
-
-
37
145
-
-
145
942
55
-
997
36,002
604
62
36,668
9,438
52
-
9,490
253
-
-
253
-
-
-
-
45,693
656
62
46,411
150
588
-
738
216
-
-
216
71
-
-
71
437
588
-
1,025
47,072
1,299
62
48,433

56

Note 5 Expenditure Analysis for the year ended 31 March 2022
Charity
Unrestricted
Funds
Restricted
Fund
Endowment
Funds
Total
Funds		 Note 5 Expenditure Analysis for the year ended 31 March 2022
Charity
Unrestricted
Funds
Restricted
Fund
Endowment
Funds
Total
Funds

Unrestricted
Funds
Restricted
Fund
Endowment
Funds
Total
Funds
£'000
£'000
£'000
£'000
Analysis of Expenditure
Raising Funds
Internal Fundraising Costs
Support Costs
Total Raising Funds

Costs of Charitable activities
Residential and Community
Education
Community Engagement
Trusts
Total Charitable activities
Other
Impairment of Social Investments
(Gain)/Loss on Disposal of Fixed Assets
Total Expenditure		 1,645
27
-
1,672
-
-
-
-
-
-
-
-
1,645
27
-
1,672
36,422
116
-
36,538
8,417
21
-
8,438
32
-
-
32
-
-
- -
44,871
137
-
45,008
-
844
-
844
-
-
-
-
-
-
844
-
844
46,516
1,008
-
47,524

57

Note 5 Expenditure Analysis for the year ended 31 March 2021
Charity
Unrestricted
Funds
Restricted
Fund
Endowment
Funds
Total
Funds		 Note 5 Expenditure Analysis for the year ended 31 March 2021
Charity
Unrestricted
Funds
Restricted
Fund
Endowment
Funds
Total
Funds

Unrestricted
Funds
Restricted
Fund
Endowment
Funds
Total
Funds
£'000
£'000
£'000
£'000
Analysis of Expenditure
Raising Funds
Internal Fundraising Costs
Support Costs
Total Raising Funds

Costs of Charitable activities
Residential and Community
Education
Community Engagement
Trusts
Total Charitable activities
Other
Impairment of Social
Investments
(Gain)/Loss on Disposal of
Fixed Assets
Total Expenditure		 760
55
-
815
37
-
-
37
135
-
-
135
932
55
-
987
34,895
21
-
34,916
9,343
52
-
9,395
245
-
-
245
-
-
-
-
44,483
73
-
44,556
90
588
-
678
216
-
-
216
71
-
-
71
377
588
-
965
45,792
716
-
46,508

58

Allocation of Support Costs for year ended 31 March 2022 Allocation of Support Costs for year ended 31 March 2022

Raising Funds
Residential &
Communication
Education
Community
Engagement
Total
2022
Senior Management
Human Resources
Finance
Information Technology
Corporate Services
Marketing and
Communications		 £'000
£'000
£'000
£'000
£'000
38
232
59
-
329
81
493
126
-
700
305
1,863
474
-
2,642
241
1,470
374
-
2,085
224
1,366
348
-
1,938
29
174
44
-
247
918
5,598
1,425
-
7,941
Group Only Group Only
Analysis of Direct and Support Costs
Direct Costs
Support Costs
Total
2021/22
£'000
£'000
£'000
Internal Fundraising cost
Bought in services
Support costs
Total Raising Funds

Costs of Charitable activities
Residential & Community
Education
Community Engagement
Trusts
Total

Other
Impairment
Loss on disposal		 1,422
253
1,675
-
-
-
1,422
253
1,675
30,820
6,282
37,102
7,391
1,395
8,786
21
11
32
-
-
-
38,232
7,688
45,920
2,692
-
2,692
-
-
-
-
-
-
42,346
7,941
50,287

59

Group Only Group Only
Analysis of Direct and Support Costs
Direct Costs
Support Costs
Total
2020/21
£'000
£'000
£'000
Internal Fundraising cost
Bought in services
Support costs
Total Raising Funds

Costs of Charitable activities
Residential & Community
Education
Community Engagement
Trusts
Total

Other
Impairment
Loss on disposal		 815
145
960
37
-
37
852
145
997
31,046
5,622
36,668
7,983
1,507
9,490
169
84
253
-
-
-
-
39,198
7,213
46,411
738
-
738
216
-
216
71
-
71
41,075
7,358
48,433
Net income/(Expenditure) is stated after charging Group
2022 2021
£'000 £'000
Depreciation 1,156 1,406
Audit current year 70 119
Other services - -
Other group auditors -
Interest payable 393 351
Operating lease charges:
Land and Buildings 642 622
Other equipment 37 41
Note: 6 Staff and Staffing costs
Group
Group
2022
2022
2021
2021
Number
FTE
Number
FTE
281
250
257
199
963
866
1,081
687
1
1
1
2
6
9
6
16
123
135
114
86
Education Services
Residential and Community Services
Community Engagement
Generating Funds
Support Function
Total
1,374
1,261
1,459
990

60

Analysis of staff costs Group
Charity
2022
2021
2022
2021
£'000
£'000
£'000
£'000
Wages and Salaries
Social Security costs
Employer contributions to defined
contribution pension schemes
Operating Costs of defined benefit pension
Redundancy and Termination Payments
Agency staff
Total staff cost		 26,657
27,980
26,221
27,517
2,155
2,306
2,125
2,281
885
986
875
976
256
115
256
115
117
321
117
321
5,877
4,035
5,877
4,035
35,947
35,743
35,471
35,245

For the Group, redundancy payments were £101k (2021 £321k) and the termination payments were £16k (2021 £Nil).

High paid staff - Group

The number of staff with remuneration excluding employer pension contribution of £60,000 or above, split into bands of £10,000 was:

2022 2021
£60,000 - £69,999 8 7
£70,000 - £79,999 1 2
£80,000 - £89,999 1 2
£90,000 - £99,999 2 -
£100,000 - £109,999 - -
£110000 - £119,999 - -
£120,000 - £129,999 - 1
£130,000 - £139,999 - -
£140,000 - £149,999 - -
£150,000 - £159,999 1 -

Remuneration of key management personnel (Executive Leadership team)

2022 2021
£'000 £'000
Wages and salaries
Contributions to defined contribution pension schemes
Termination payments
Employers national Insurance
Agency staff
Total		 356
7
-
45
162
570		 687
18
-
85
42
832

61

Note 7: Subsidiary
Undertaking
Name Function Company
Registration		 Charity Year
end
Brain injury
rehabilitation 31st
Livability Icanho Limited Services 2167304 N/A March
Kingsley Hall Church and Social and religious
Community Centre, a company services to the 31st
limited by guarantee. Becontree Estate 6129881 1120001 March
Construction and
Livability Contracting Services related services to 31st
Limited the Livability group 3594964 N/A March
East Holton Charity a company 31st
limited by guarantee Dormant 2717228 1011867 March
Holiday 31st
Holton Lee Limited accommodation 2871759 N/A March
The Shaftesbury Society, a Predecessor charity 31st
company limited by guarantee to Livability 38751 221948 March
Prospects for People with
learning disabilities, a company 31st
limited by guarantee Dormant 3305658 1060571 March
At Home in the Community
Limited, a company limited by 31st
guarantee Dormant 2470260 803280 March
John Grooms, a company limited 31st
by guarantee Dormant 113685 212463 March
31st
Prospects Trading Limited Dormant 3222851 N/A March
31st
A Cause for Concern Dormant N/A 271600 March
31st
Grooms Shaftesbury Limited Dormant 3232362 N/A March
31st
Shaftesbury Care Limited Dormant 3232329 N/A March

62

Turnover
Operating profit or
net
incoming/(outgoing)
resources
Transfer to
the charity
Aggregate
Assets
Aggregate
Liabilities
Net
Asset/(Liabilities)
John
Groom
-
-
-
-
-
-
Shaftesbury
Society
1
3
-
47
-
47
Livability
Icanho
806
94
94
94
94
-
Kingsley
Hall Church
and
Community
Centre
1,787
1,155
-
7,184
1,887
5,297
Livability
Contracting
Services ltd
1,886
-
-
23
23
-
East Holton
Charity
-
-
-
-
-
-
Holton Lee
ltd
-
-
-
-
-
-
Prospects
for People
with
Learning
disabilities
-
-
-
-
-
-
At Home in
the
Community
-
-
-
-
-
-
A Cause for
Concerns
-
-
-
-
-
-
Livability
Trading Ltd
-
-
-
-
-
-
Shaftesbury
Care Ltd
-
-
-
-
-
-
4,480
1,252
94
7,348
2,004
5,344		 Turnover
Operating profit or
net
incoming/(outgoing)
resources
Transfer to
the charity
Aggregate
Assets
Aggregate
Liabilities
Net
Asset/(Liabilities)
John
Groom
-
-
-
-
-
-
Shaftesbury
Society
1
3
-
47
-
47
Livability
Icanho
806
94
94
94
94
-
Kingsley
Hall Church
and
Community
Centre
1,787
1,155
-
7,184
1,887
5,297
Livability
Contracting
Services ltd
1,886
-
-
23
23
-
East Holton
Charity
-
-
-
-
-
-
Holton Lee
ltd
-
-
-
-
-
-
Prospects
for People
with
Learning
disabilities
-
-
-
-
-
-
At Home in
the
Community
-
-
-
-
-
-
A Cause for
Concerns
-
-
-
-
-
-
Livability
Trading Ltd
-
-
-
-
-
-
Shaftesbury
Care Ltd
-
-
-
-
-
-
4,480
1,252
94
7,348
2,004
5,344
John
Groom
Shaftesbury
Society
Livability
Icanho
Kingsley
Hall Church
and
Community
Centre
Livability
Contracting
Services ltd
East Holton
Charity
Holton Lee
ltd
Prospects
for People
with
Learning
disabilities
At Home in
the
Community
A Cause for
Concerns
Livability
Trading Ltd
Shaftesbury
Care Ltd
4,480
1,252
94
7,348
2,004
5,344

63

Note: 8 Tangible Fixed Assets
Functional
Freehold
Property
Asset under
construction
Functional
leasehold
Property
Other
Fixed
Assets
Total
Group £'000
£'000
£'000
£'000
£'000
Cost at 1 April 2021
Additions
Transfer
Disposals
Revaluation adjustments
Transfer to Parent
At 31 March 2022
Depreciation at 1 April 2021
Charged in the year
Revaluation Adjustments
Release on disposal
Transfer to Parent

At 31 March 2022

Net book value at 31 March 2022

Net book value at 31 March 2021		 38,851
865
1,685
10,512
51,913
207
1,962
-
112
2,281
-
-
-
-
-
(5,362)
-
-
-
(5,362)
5,110
-
-
-
5,110
-
-
-
-
-
38,806
2,827
1,685
10,624
53,942
(4,152)
-
(300)
(8,886)
(13,338)
169
-
-
(692)
(523)
2,934
-
-
-
2,934
157
-
-
-
157
-
-
-
-
-
(892)
-
(300)
(9,578)
(10,770)
37,914
2,827
1,385
1,046
43,172
34,699
865
1,385
1,626
38,575

Group Fixed assets include assets with carrying values of £28m (2021: £25m) which have been pledged as security for bank loans disclosed in note 12.

During 2021/22 Financial year, Functional fixed assets were revaluation upward to the tune of £8.045m.

A further asset is subject to charge of £750,526 (2021: £750,526). The assets under construction representing Phase 1B of the ongoing redevelopment of Kingsley Hall was completed 27 May 2022.

64

Note: 8 Tangible Fixed Assets
Functional
Freehold
Property
Asset under
construction
Functional
leasehold
Property
Other
Fixed
Assets
Total
Charity £'000
£'000
£'000
£'000
£'000
Cost at 1 April 2021
Additions
Transfer
Disposals
Revaluation adjustments
Transfer to Parent
At 31 March 2022
Depreciation at 1 April 2021
Charged in the year
Revaluation adjustments
Release on disposal
Transfer to Parent
At 31 March 2022

Net book value at 31 March 2022
Net book value at 31 March 2021		 35,557
-
1,685
11,093
48,335
207
-
15
100
322
-
-
-
-
-
(5,362)
-
-
-
(5,362)
5,110
-
-
-
5,110
-
-
-
-
-
35,512
-
1,700
11,193
48,405
(3,091)
-
(300)
(9,700)
(13,091)
-
-
(24)
(688)
(712)
2,934
-
-
-
2,934
157
-
-
-
157
-
-
-
-
-
-
-
(324)
(10,388)
(10,712)
35,512
-
1,376
805
37,693
32,466
-
1,385
1,393
35,244

Charity Fixed assets include assets with carrying values of £28m (2021: £22m) which have been pledged as security for bank loans disclosed in note 12.

During 2021/22 Financial year, Functional fixed assets were revaluation upward to the tune of £8.045m. A further asset is subject to charge of £750,526 (2021: £750,526).

65

Group
Charity
2022
2021
2022
2021
£'000
£'000
£'000
£'000
2,017
2,399
1,998
2,384
-
-
-
-
-
(635)
-
(635)
1,178
253
1,167
249
-
-
-
-
3,195
2,017
3,165
1,998
2,307
1,071
2,307
1,071
175
167
175
167
713
779
675
752
-
-
8
8
3,195
2,017
3,165
1,998
Group
Charity
2022
2021
2022
2021
£'000
£'000
£'000
£'000
6,536
7,226
6,536
7,226
-
-
-
-
(2,245)
(565)
(2,245)
(565)
(224)
(125)
(224)
(125)
4,067
6,536
4,067
6,536
4,067
6,536
4,067
6,536
4,067
6,536
4,067
6,536
Note: 9 Financial Investments
Analysis of changes in investment values
Investments at start of year
Additions
Disposals
Gains on revaluation/Listed Investment
Impairment of Subsidiary investment
Investments at the year end
Analysis of Investments
Investment Properties
Cash and Equivalents
Listed investments
Investments in subsidiary entities
Total Investments
Note: 10 Social Investments
Analysis of changes in investment values
Investments at start of year
Additions
Disposals
Gains/(Losses) on revaluation
Social Investments at the year end
Analysis of Investments
Social Investment
Total Investments
Note: 11 Debtors
Group
Charity
2022
2021
2022
2021
£'000
£'000
£'000
£'000
Trade Receivables
Prepayments and Accrued Income
Other Debtors
Amounts due from Subsidiary undertaking
Investments at the year end		 1,637
1,164
1,630
1,058
2,649
1,777
2,618
1,216
868
1,241
707
945
-
-
1,663
(93)
5,154
4,182
6,618
3,126

66

Note: 12 Creditors
Group
Charity
2022
2021
2022
2021
£'000
£'000
£'000
£'000
Amounts falling due within 1 year
Derivative Financial Instrument Liabilities
Trade Payables
Accrued charges and Deferred income
Taxation and Social Security
Bank Loans within 1yr
Other Creditors
Amounts due to Group Entities		 -
131
-
131
2,079
1,838
1,929
1,660
1,790
2,386
1,753
2,342
587
2,659
587
2,739
437
4,000
414
4,000
1,406
982
1,326
931
-
-
628
-
6,299
11,996
6,637
11,803
Amount falling due after more than 1 year:
Accrued charge and Deferred income
Other loans
Bank loans		 Group
Charity
2022
2021
2022
2021
£'000
£'000
£'000
£'000
-
-
-
-
-
-
-
-
9,796
6,604
9,086
5,755
9,796
6,604
9,086
5,755

The Bank Loans are repayable by instalments falling due in the following periods:

Group
Charity
2022
2021
2022
2021
£'000
£'000
£'000
£'000
Within 1 year
Within 1 - 2 years
Within 2 - 5 years
After 5 years		 437
827
414
826
450
835
426
835
1,472
2,628
1,395
2,560
7,874
6,314
7,265
5,531
10,233
10,604
9,500
**9,752 **

The lenders, principle terms of borrowing and the security given for the borrowings are set out in the table below:

Facility Provider: Interest Basis Margin 31 March 22 Repayable by
% £'000
Metro Bank base
Metro Bank Term Loan rate 3.25% 5,754 15/03/2029
Metro Bank base
Metro Bank Term Loan rate 3.75% 3,746 15/03/2029
Charity Bank Term Loan (Group - KHCC)
Bank of England		 3.25% 733 20/06/2043

67

Note 13 Pensions

The Charity contributes to seven staff pension schemes, which are:

A Group Personal Pension Plan defined contribution scheme operated by Aegon which all permanent nonbank employees of Livability, who have successfully completed their probationary period of employment, were eligible to join until October 2013.

A Group Personal Pension Plan defined contribution scheme operated by the People's Pension into which all employees are enrolled when they meet the criteria for automatic enrolment and are not already enrolled in a pension scheme that meets the criteria of the Pensions Regulator.

A Group Personal Pension Plan defined contribution scheme operated by Legal and General into which all employees are enrolled when they meet the criteria for automatic enrolment and are not already enrolled in a pension scheme that meets the criteria of the Pensions Regulator

The Livability Final Salary Pension Scheme (“Livability DB scheme”), a defined benefit scheme which was closed to new members and further service accrual in June 2007. This scheme is administered by The Pensions Trust.

The John Grooms Pension and Assurance Scheme (“JGPAS”), a defined benefit scheme, which had been closed to new members some years ago, was closed to further service accrual in June 2007. This scheme is administered by XPS.

The Teachers’ Pension Scheme (a multi-employer defined benefit scheme) in which teaching staff are eligible to be members, and to which the Charity contributes at a rate fixed by the Fund actuaries.

The Pensions Trust Growth Plan (a multi-employer defined benefit scheme). There are two active members of this scheme which is closed to further benefit accrual; contributions are made at the minimum level required to maintain membership of the scheme and for reduction of the deficit in the scheme. Withdrawal from the scheme would trigger a liability estimated at 31 March 2022 at £37,000 (2021: £204,000). There is no intention to withdraw from the scheme and therefore this liability is not recognised in the Accounts at 31 March 2022.

Kingsley Hall Church and Community Centre contributes to a defined contribution scheme operated by the Pensions Trust for one member of staff.

The Livability DB scheme and JGPAS were closed to new members and benefit accrual in June 2007; members employed at the closure date retain a link between their salary and benefits payable until their retirement or their earlier date of leaving employment.

The cost of employer contributions to the defined contribution plans was £1,774,000 in the year (2021: £1,745,000). There are no prepaid contributions in respect of any of the schemes at the balance sheet date.

The defined benefit schemes are both contracted-out of the State Second Pension Scheme (S2P) and their assets are held separately from those of the Charity. Contributions to the schemes were agreed with the schemes’ Trustees, in accordance with the agreed technical provisions and recovery periods agreed for each scheme.

The last triennial valuation of the Livability DB scheme was carried out as at 30 September 2020 and has been updated to 31 March 2021 by an independent qualified actuary, in accordance with FRS 102.

This most recent actuarial valuation as at 30 September 2018 showed a deficit of £6,140,000. The employer has agreed with the Trustee that it will aim to eliminate the deficit over a period of 3 years and 10 months from 1 April 2020 by the payment of annual contributions of £1,100,000, increasing at 2.6% per annum with first

68

increase on 1 April 2021, in respect of the deficit. In addition, the employer will pay annual contributions of £115,000 in respect of scheme expenses.

The recovery contribution made to the Livability DB scheme by the Charity in the year was £1,244,000, as set out in the previous agreed deficit recovery plan, plus a contribution for administration expenses of £113,000.

An actuarial valuation of JGPAS was carried out as at 31 March 2015 and updated to 31 March 2021 by an independent qualified actuary. The recovery contribution made to the Scheme by the employer in the year was £530,000. The contributions for the year to 31[st] March 2023 are expected to be £Nil.

The assets in the schemes were:

The assets in the schemes were:
Livability
DB		 JGPAS Growth
Plan		 Total
2022
2022
2022
2022
£000
£000
£000
£000
Equity 5,942
6,505
–
12,447
Bonds 18,260
11,092
–
29,352
Property 2,809
–
–
2,809
Other 12,087
–
–
12,087
Cashand currentliabilities 493
2,723
–		 3,216
Fair value of scheme assets 39,591
20,320
–
59,911
Present value of scheme liabilities (39,388) (19,188) (37) (58,613)
Effect of asset ceiling (203) (1,132) - (1,335)
Pension liability disclosed in the financial
statements		 - - (37) (37)
The actual return on scheme assets over the
periodwas: 1,626 372
–
1,998

The assets in the schemes were:

Livability
DB		 JGPAS Growth
Plan		 Total
2021
2021
2021
2021
£000
£000
£000
£000
Equity 4,594
6,241
–
10,835
Bonds 18,756
11,358
–
30,114
Property 2,206
–
–
2,206
Other 11,480
–
–
11,480
Cash and current liabilities 1,050
2,556
–		 3,606
Fair value of scheme assets 38,086
20,155
–
58,241
Present value of scheme liabilities (40,988) (20,674) (204) (61,866)
Pension liability disclosed in the financial
statements		 (2,902) (519) (204) (3,625)
The actual return on scheme assets over the
periodwas: 2,950 1,284
–
4,234

69

The assets in the schemes were:
Livability
DB		 JGPAS Growth
Plan		 Total
2020
2020
2020
2020
£000
£000
£000
£000
Equity 4,377
5,021
–
9,398
Bonds 17,265
11,156
–
28,421
Property 1,762
–
–
1,762
Other 11,275
–
–
11,275
Cash and current liabilities
397
2,744
–		 3,141
Fair value of scheme assets 35,076
18,921
–
53,997
Presentvalue ofschemeliabilities –
–
–
–
Pension liability disclosed in the financial
statements		 35,076
18,921
–
53,997
The actual return on scheme assets over the
periodwas: –
–
–
–
The assets in the schemes were:
Livability DB JGPAS
Growth
Plan		 Total
2019 2019 2019 2019
£000 £000 £000 £000
Equity 16,427 5,612 – 22,039
Bonds 15,260 11,908 – 27,168
Property 1,531 – – 1,531
Other – – – –
Cash and current liabilities
239 1,092 – 1,331
Fair value of scheme assets 33,457 18,612 – 52,069
Present value of scheme liabilities (36,456) (20,068) (293) (56,817)
Pension liability disclosed in the financial
statements		 (2,999) (1,456) (293) (4,748)
The actual return on scheme assets over the
periodwas: – – – –

70

Movements in the present value of the scheme liabilities have been: Movements in the present value of the scheme liabilities have been:
Livability DB
JGPAS
Total
£000
£000
£000
Present value of liabilities at 31 March 2018 36,032
19,025
55,057
Current service cost 199
100
299
Interest cost 923
489
1,412
Remeasurement (gains) / losses 400
1,026
1,426
Benefits paid (1,098) (572) (1,670)
Present value of liabilities at 31 March 2019 36,456
20,068
56,524

Interest cost		 861
475
1,336
Remeasurement (gains) / losses (901) (649) (1,550)
Benefits paid (1,195) (611) (1,806)
Present value of liabilities at 31 March 2020 35,221
19,283
54,504

Current service cost		 –
–
–
Interest cost 798
446
1,244
Remeasurement (gains) / losses 6,008
1,525
7,533
Benefits paid (1,039) (580) (1,619)
Present value of liabilities at 31 March 2021 40,988
20,674
61,662

Current service cost		 –
–
–
Interest cost 848
426
1,274
Remeasurement (gains) / losses (1,196) (1,175) (2,371)
Benefits paid (1,252) (737) (1,989)
Present value of liabilities at 31 March 2022 39,388
19,188
58,576
Movements in the fair value of scheme assets have been:
Livability DB JGPAS
Total
£000 £000
£000
Fair value of scheme assets at 31 March 2018 31,575 17,450
49,025
Interest income 821 454
1,275
Expenses (119) –
(119)
Remeasurement gains / (losses) 1,118 675
1,793
Contributions by employer 1,160 605
1,765
Benefits paid (1,098) (572)
(1,670)
Fair value of scheme assets at 31 March 2019 33,457 18,612
52,069

Interest income		 801 446
1,247
Expenses (120) –
(120)
Remeasurement gains / (losses) 945 (79)
866
Contributions by employer 1,188 553
1,741
Benefits paid (1,195) (611)
(1,806)
Fair value of scheme assets at 31 March 2020 35,076 18,921
53,997

71

Livability Livability
DB
JGPAS
Total
Interest income 807
444
1,251
Expenses (116)
–
(116)
Remeasurement gains / (losses) 2,143
840
2,983
Contributions by employer 1,215
530
1,745
Benefits paid (1,039) (580) (1,619)
Fair value of scheme assets at 31 March 2021 38,086
20,155
58,241

Interest income		 799
421
1,220
Expenses (113)
–
(113)
Remeasurement gains / (losses) 827
(49)
778
Contributions by employer 1,244
530
1,774
Benefits paid (1,252)
(737)
(1,989)
Fair value of scheme assets at 31 March 2022 39,591
20,320
59,911
1,505
165
1,670
The Growth Plan 3,010
1,234
4,244
Movements in the recognised liability for payments due to the Growth Plan were:
£000
Present value of payments at 31 March 2018 468
Interest cost 7
Contributions (60)
Remeasurements (122)
Present value ofpayments at 31 March 2019 293
Interest cost 4
Contributions (49)
Remeasurements (7)
Present value ofpayments at 31 March 2020 241
Interest cost 6
Contributions (50)
Remeasurements 7
Present value ofpayments at 31 March 2021 204
Interest cost 1
Contributions (52)
Remeasurements (116)
Present value of payments at 31 March 2022 37

72

Amounts recognised in the Consolidated Statement of Financial Activities have been: Amounts recognised in the Consolidated Statement of Financial Activities have been: Amounts recognised in the Consolidated Statement of Financial Activities have been: Amounts recognised in the Consolidated Statement of Financial Activities have been:
2022 2021
2020
2019
£000 £000
£000
£000
Expenses 113 116
120
119
Past service cost – –
–
299
Net interest cost 55 (1)
93
144
Included in net (income) / expenditure 168 115
213
562
Actuarial (gains) / losses (1,930)
 4,557
2,423
(488)
Total recognised (gains) and losses reported in the SOFA (1,762) 4,672
2,636
74
Contributions and administration fees payable in the year ending 31 March 2021 are expected
to be:
£000
The Livability Final Salary Pension Scheme 1,215
The Pensions Trust Growth Plan 50
John Grooms Pension and Assurance Scheme 530
1,795
Contributions and administration fees payable in the year ending 31 March 2022 are expected to
be:
£000
The Livability Final Salary Pension Scheme 1,244
The Pensions Trust Growth Plan 52
JohnGroomsPensionandAssurance Scheme 530
1,826
Contributions and administration fees payable in the year ending 31 March 2023 are expected to
be:
£000
The Livability Final Salary Pension Scheme 1,289
The Pensions Trust Growth Plan 13
John Grooms Pension and Assurance Scheme 530
1,832

73

Note: 14 (Group) Funds
Restated
Balance at
31 March
21
Income		 Expenditure Unrealised
gains/(losses)
Transfers
Balance
at 31
March
2022
£'000
£'000		 £'000 £'000
£'000
£'000
Designated Funds
Maintenance reserves -
Designated
Revaluation fund
Total Designated funds

Unrestricted Funds
General fund
Unrestricted Funds before
Pension Liability
Pension Reserve
Total Unrestricted Funds

Restricted Funds
Education
Residential & Community
Services
Community Engagement
Giving by Lending
F Clements Will Trust
Kingsley Hall Church &
Community Hall
Kingsley Hall, Dagenham
Prospects
Holton Lee
Total Restricted Funds
Permanent Endowment Funds
Chiswick
Highway
Marsh St
Coney Hill Will
Welcome
Kingsley Hall, Dagenham
SHBEF
Shaftesbury Development
Beddington
Platt
Total Permanent Endowment
Funds
Total Funds		 9,653
-
8,230
-		 -
-		 -
-
9,653
8,045
(1,658)
14,617
17,883
-		 - 8,045
(1,658)
24,270
6,072
51,577		 (48,869) 926
32
9,738
23,955
51,577
(3,625)
-		 (48,869)
-		 8,971
(1,626)
34,008
1,930
1,658
(37)
20,330
51,577		 (48,869) 10,901
32
33,971
343
47
1,694
368
56
-
57
-
30
-
2,863
1,513
765
-
61
2
292
9		 (36)
(379)
(27)
-
-
(913)
-
(1)
-		 5
(12)
347
-
(15)
1,668
-
(4)
25
-
-
57
-
-
30
-
-
3,463
-
-
765
-
(1)
61
-
-
301
6,161
1,939		 (1,356) 5
(32)
6,717
475
-
2,503
-
922
-
26
-
986
-
632
-
34
-
521
-
68
-
496
-		 -
-
-
-
-
(62)
-
-
-
-		 -
-
475
-
-
2,503
-
-
922
-
-
26
-
-
986
-
-
570
-
-
34
-
-
521
-
-
68
-
-
496
6,663
-		 (62) -
-
**6,601 **
33,154
53,516		 (50,287) 10,906
-
47,289

74

During the year, £32k was transferred from restricted funds to unrestricted funds. Restricted funds are those funds available for specific, restricted purposes within the overarching charitable objects of Livability. All expenses were individually identified and satisfies the reason for the transfer from restricted to unrestricted fund.

75

Note: 14 (Group) Funds
Restated
Balance at
31 March
2020
Income		 Expenditure Unrealised
gains/(losses)
Transfers
Balance
at 31
March
2021
£'000
£'000		 £'000 £'000
£'000
£'000
Designated Funds:
Maintenance reserves -
Designated
Revaluation fund
Total Designated funds
Unrestricted Funds
General fund
Unrestricted Funds before
Pension Liability
Pension Reserve
Total Unrestricted Funds

Restricted Funds
Education
Residential & Community
Services
Community Engagement
Giving by Lending
F Clements Will Trust
Kingsley Hall Church &
Community Hall
Kingsley Hall, Dagenham
Prospects
Holton Lee
Total Restricted Funds
Permanent Endowment
Funds
Chiswick
Highway
Marsh St
Cloney Hill Will
Welcome
Kingsleys Hall, Dagenham
SHBEF
Shaftsebury Development
Beddington
Platt
Total Permanent Endowment
Funds
Total Funds		 9,729
-
8,719
-		 -
(27)		 -
(76)
9,653
83
(545)
8,230
18,448
-		 (27) 83
(621)
17,883
10,445
43,213		 (46,930) 65
(721)
6,072
28,893
43,213
(748)
-		 (46,957)
(115)		 148
(1,342)
23,955
(4,557)
1,795
(3,625)
28,145
43,213		 (47,072) (4,409)
453
20,330
353
46
1,360
828
75
589
57
-
30
-
1,987
1,460
765
-
61
2
298
4		 (39)
(77)
(588)
-
-
(584)
-
(2)
(10)		 -
(17)
343
-
(416)
1,694
-
(20)
56
-
-
57
-
-
30
-
-
2,863
-
-
765
-
-
61
-
-
292
4,986
2,929		 (1,300) -
(453)
**6,161 **
475
-
2,475
4
922
-
26
-
986
-
694
-
28
1
506
2
53
-
496
-		 -
-
-
-
-
(62)
-
-
-
-		 -
-
475
24
-
2,503
-
-
922
-
-
26
-
-
986
-
-
632
5
-
34
13
-
521
15
-
68
-
-
496
6,661
7		 (62) 57
-
6,663
39,792
46,149		 (48,434) (4,352)
-
33,154

76

Note: 15 Analysis of Net Assets by Funds for year ended 31 March 2022 Note: 15 Analysis of Net Assets by Funds for year ended 31 March 2022

General
Designated
Pension
Restricted
Permanent
Endowment
Total
£'000
£'000
£'000
£'000
£'000
£'000
Tangible Fixed Assets
Financial Investments
Social Investments
Cash
Other current assets
Current liabilities
Long-term liabilities
Funds at 31 March
2022		 15,981
24,566
-
-
2,625
43,172
-
2,266
-
-
929
3,195
-
670
-
-
3,397
4,067
5,950
-
-
1,883
-
7,833
4,589
-
-
565
-
5,154
(6,113)
-
-
(186)
-
(6,299)
(3,192)
(5,754)
(37)
(850)
-
(9,833)
17,215
21,748
(37)
1,412
6,951
47,289
Note: 15 Analysis of Net Assets by Funds for the year ended 31 March 2021

General
Designated
Pension
Restricted
Permanent
Endowment
Total
£'000
£'000
£'000
£'000
£'000
£'000
Tangible Fixed Assets
Financial Investments
Social Investments
Cash
Other current assets
Current liabilities
Long-term liabilities
Funds at 31 March
2021		 11,090
22,000
-
3,086
2,399
38,575
-
1,088
-
-
929
2,017
-
3,139
-
-
3,397
6,536
3,006
-
-
1,063
-
4,069
3,617
-
-
565
-
4,182
(11,811)
-
-
(185)
-
(11,996)
-
(5,754)
(3,625)
(850)
-
(10,229)
5,902
20,473
(3,625)
3,679
6,725
**33,154 **
Note: 16 Commitments and Contingent Assets
Group
Charity
2022
2021
2022
2021
£'000
£'000
£'000
£'000
Contracted
Approved not Contracted
The amount 2022 £Nil; (2021 £Nil)		 -
-
-
-

77

Note: 17 Obligations under Operating Leases Note: 17 Obligations under Operating Leases
Group and
Charity
Within 1
year
In 2 - 5
years
Over 5
years		 2022
2021
£'000
£'000
£'000
£'000
£'000
£'000
Land &
Building
Other
Equipment
Total
Land &
Building
Other
Equipment
Total
1,391
28
1,419
1,101
34
1,135
3,840
13
3,853
3,834
33
3,867
10,075
-
10,075
9,900
4
9,904
15,306
41
15,347
14,835
71
14,906
Note: 18 Financial Instruments
Group Charity
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Financial Assets at Fair Value through
income & Expenditure
Financial Investments 3,195
1,998
3,165		 2,017
Social Investments 4,067
6,536
4,067		 6,536
Financial Liabilities at Fair Value through
income & Expenditure
Interest rate options -
-
-		 -
Secured loans -
-
-		 -
Financial Liabilities measured at
amortised cost
Bank loans (10,377)
(6,604)		 (9,500) (5,755)
Trade creditors (2,079) (1,838) (1,929) (1,660)
Amounts due to subsidiaries -
-
(628)		 -

Note 19 Related Parties

Trustees received no remuneration in respect of their services as Trustees of Livability. Travel and other out of pocket expenses were reimbursed to 4 Trustees in the year to the value of £5,251 (2021:£90) and cost of providing training to Trustees in relation to their duties was £Nil (2021:Nil).

Livability paid £5,554 (2021:£5,544) in the year to provide indemnity Insurance for the Trustee.

Livability received donations of £360 (£2021:1,292) from the Trustees

78

2022 Shaftbury
Society		 Livability
Icanho
Ltd		 Kingsley
Church and
Community
Centre		 Livability
Contract
Services
Ltd		 East
Holton
Charity

Holton
Lee
Ltd
Prospects
for People
Learning
Disabilities
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance sheet
amounts
Amounts due to
Parent undertaking
-		 - - - -
-
8
Amounts due from
Parent undertaking
18		 - - - -
-
-
Income
Donation from
Parent Charity - - - - -
-
-
Expenditure
Charitable
Donation paid
2021
Balance sheet
amounts
Amounts due from
Parent undertaking
17		 68 1 71 -
-
8

Income
Donation from
Parent Charity - - - - -
-
-

Expenditure
Charitable
Donation paid - - - - -
-
-

Post Balance sheet Events

After 1[st ] April 2022, functional freehold properties were disposed of, generating £535k from Marion House.

79

Trusts and Supporters 2021-22

As well as the organisations listed below for their contributions towards our work, we also extend our thanks to those organisations who wished to remain anonymous, the families of those who remembered Livability in their Wills, and the thousands of generous individuals whose support makes such a huge difference to our work and the people we support.

Trusts and Foundations

Aldingbourne Gospel Trust

Barclays

Emmaus Christian Fund

Dudley and Geoffrey Cox Charitable Trust

Eric Stanton Northampton Trust Essex Community Foundation Fowler Smith and Jones Trust Homelands Charitable Trust Joan Ainslie Charitable Trust Louis Ross Foundation Norfolk Community Foundation Talbot Village Trust

The Alice Ellen Cooper-Dean Charitable Foundation

The Barbara Price Charitable Trust

The Bradbury Foundation

The Bruce Wake Charitable Trust

The Colchester Catalyst Charity The E F Bulmer Benevolent Fund The Edith Murphy Foundation The J & D Hambro CT

The Liz and Terry Bramall Foundation

The Nora and Olive Brewer Memorial Trust

The Rowlands Trust

The Scott Bader Commonwealth Ltd

The Thomson-Bree Charitable Trust

80

The Valentine Charitable Trust

Supporters

David & Julia Smith Friends of Brackley Friends of Dolphin Court Friends of John Grooms Court Friends of Keefield Close Friends of Nash College Friends of Livability North East Friends of Talbot Manor Friends of VEC Friends of Victoria School Friends of York House, Ossett Helpcards Masks for NHS Heroes Wareham Golf Club

81

Organisational Details

Patron: Her Royal Highness, The Princess Royal

Vice-Patrons: The Rt Hon The Earl of Shaftesbury, Nicholas Ashley-Cooper President: The Most Revd and Rt Hon Justin Welby, Archbishop of Canterbury

Senior Vice-President : Baroness Valerie Howarth of Breckland OBE

Vice-Presidents:

Lord Donald Curry of Kirkharle CBE

David Harmer

Roy McCloughry

The Rt Hon Lord McColl of Dulwich CBE

Sarah Omond

Pamela Rhodes

The Revd Canon Roger Royle

Revd Michael Shaw

Trustees:

Kate Clare, Chair of Trustees (appointed as Chair on 29 July 2019); Chair of Safeguarding Board (resigned 29 March 2022)

John Robinson CBE, Chair of Trustees and Chair of Strategic Business Committee (appointed as Chair on 29 March 2022)

Anne Anketell (appointed 22 June 2022)

Angus Brown (resigned 29 March 2022)

The Rt Revd Richard Frith (appointed 15 April 2022)

Duncan Ingram (appointed 15 April 2022)

Canon Sue Johns, Chair of Services Quality Committee (appointed 16 January 2020)

Heather Laffin (appointed 16 January 2020)

Tom O'Connor (appointed 15 April 2022)

Lisa Quinlan-Rahman (appointed 22 June 2022)

John Weaving, Chair of Audit Committee (appointed 16 January 2020)

Andrew Wilson (appointed 21 March 2018)

Peter Woodall (appointed 16 January 2020)

82

Senior officers:

Chief Executive Officer – Sally Chivers (appointed 29 July 2019)

Executive Director for Education - Adele Audin (appointed 19 January 2021) Finance Director – Ayodele Laleye (appointed 3 February 2022) Executive Director of Care Operations – Jane Percy (appointed 11 May 2019) Principal Solicitors: Anthony Collins LLP, 134 Edmund Street, Birmingham, B3 2ES Principal Bankers: Metro Bank plc, One Southampton Row, WC1B 5HA Auditors: Crowe UK LLP, 55 Ludgate Hill, London EC4M 7J Registered and Central Office : Livability, 6 Mitre Passage, London SE10 0ER

www.livability.org.uk

83