2021-03-31-accounts

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Charity Registration No. 1116662

Company Registration No. 03539971 (England and Wales)

AGE UK HERTFORDSHIRE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

AGE UK HERTFORDSHIRE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	John Ellis
	Victoria Tassell
	Mousumi Basu
	Mary Compton
	Jenny Wiles
	Robin Kember	(Appointed 25 November 2020)
Company Secretary	Jenny Wiles	(From 30 September 2020)
	Lorna Boyd-Bell	(Until 31 August 2020)
Charity number	1116662
Company number	03539971
Registered Office and Principal Address	1 Silver Court
	Watchmead
	Welwyn Garden City
	Hertfordshire
	AL7 1LT
Auditor	Myers Clark
	Egale 1
	80 St Albans Road
	Watford
	Hertfordshire
	WD17 1DL
Bankers	Barclays Bank plc
	78 Turners Hill
	Cheshunt
	Hertfordshire
	EN8 9BW
	CCLA Investment Management Ltd
	Senator House
	85 Queen Victoria	Street
	London
	EC4V 4ET

AGE UK HERTFORDSHIRE

	Page
Trustees report	1 - 17
Statement of trustees responsibilities	18
Independent auditor's report	19 - 22
Consolidated Statement of financial activities	23 - 24
Consolidated Balance Sheet	25
Charity Balance Sheet	26
Consolidated Statement of cash flows	27
Notes to the financial statements	28 - 47

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Trustees Annual Report (including Directors Report)

The trustees present their Trustees Annual Report (including Directors’ Report) and consolidated group financial statements. For the year ended 31 March 2021.

The group financial statements have been prepared in accordance with the accounting policies set out in the financial statements and comply with the charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

Status, Principal Activity and Public Benefit

The Age UK Hertfordshire group includes Age UK Hertfordshire (the Charity) and a wholly owned subsidiary company Age UK Hertfordshire Trading Limited (the Trading Company).

Age UK Hertfordshire is a charitable company limited by guarantee (Charity number 1116662 and Company number 03539971, incorporated in England and Wales), governed by its Articles of Association dated April 2019, which supersede the Memorandum and Articles of Association dated 26 January 2009, its amendment by a certificate of incorporation on change of name dated 20 May 2010, and additional amendments made in December 2017 and April 2019.

The object and principal activity of Age UK Hertfordshire is ‘the promotion and well-being of older people in Hertfordshire’. Age UK Hertfordshire is a Brand Partner of Age UK. By reaching the quality standards required, Age UK Hertfordshire has entered into an agreement with Age UK and is therefore permitted to use the name, and brand logo, of Age UK to promote its services.

Age UK Hertfordshire Trading Limited is a limited company (Company number 02911828, incorporated in England and Wales), whose principal activity in the year was receiving commission based payments on clothes recycling services.

Age UK Hertfordshire is a public benefit entity and the Trustees have given due consideration to the Charity Commission published guidance on the operation of the Public Benefit requirement when reviewing the charity’s aims and objectives and planning current and future activities. The information in the Strategic Report (and Directors’ Report) below outlines the activities the charity undertakes to further its purposes.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Strategic Report (and Directors’ Report)

Objectives, Strategy and Future Plans

Age UK Hertfordshire is one of the largest charities providing services to older people in Hertfordshire and has a high level of recognition across the statutory authorities, voluntary sector and the public.

Age UK Hertfordshire is working to improve later life for older people in Hertfordshire today, and in future generations and has supported over 15,000 people this year.

Our strategic plan consolidates a wide variety of feedback with over 50 years of experience working locally in the Hertfordshire ageing arena and with our National Brand Partner Age UK.

The mission of Age UK Hertfordshire is quite simply:

"To improve the lives of older people in Hertfordshire."

We will deliver this by focussing on three client-facing strategic objectives:

Alleviating Loneliness and Isolation
Building Resilience within Communities
Tackling Poverty and Inequalities

And also through our five internal operational strategies:

Supporting our Staff and Volunteers
Providing High Quality Services
Developing our Income-Generation Capacity
Digital Transformation
Improving our Communication Strategy

In 2020-21 we have also highlighted three ways of working to be of key emphasis:

Continuous Improvement
Being Environmentally Aware
Working in Partnership

2020-21 Services to Meet Strategic Aims

Figure 1 below sets out the services that we provided in the 2020-21 financial year following the impact of the CV-19 pandemic, which changed our methods of service delivery from mid-March 2020.

Our face-to-face services ceased at this time, in line with government lockdown guidance and we moved services to a telephone based or electronic format to continue to support our clients. As the restrictions and government guidance changed during the year, so did our methods of service delivery to become more face to face where appropriate and possible.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Objectives, Strategy and Future Plans (continued)

Figure 1. Services to meet Strategic Aims

Area of Work	Services	How we meet our aims
Active Ageing	Eighteen 10 to 3 Clubs	We normally run a range of clubs/activities to help older people feel connected with their community, stay active and reduce social isolation by providing social activities, physical exercise and nutritious meals. 10 to 3 clubs have been closed during the entire CV-19 pandemic due to the sheltered housing schemes following safe working protocols, and so support has been provided through online groups, welfare calls and activity packs to keep people active and engaged. Chalmers Court and Clitheroe have both reopened at times during the pandemic but with reduced capacity to ensure safety of clients, staff and volunteers.
	including 3 Asian Elder
	Day Centres
	Day Care Centre for the
	physically and mentally
	frail (Chalmers Court)
	Clitheroe Health &
	Wellbeing Centre

Befriending	Visiting Scheme	We normally provide regular face-to-face and telephone social contact, to help combat loneliness and social isolation. During 2020-21 volunteers were unable to provide face to face visits, and so support had to be provided via phone calls or online befriending sessions.

	Telephone Clubs

Emotional Support	InTouch	A service offering a higher level of emotional support over the phone.

Information and Advice	Information and Advice	A telephone and community support service offering Information & Advice to older people. Including advice on benefit entitlements, LPAs, energy costs and Blue Badges. Later Life Goals focuses on the above, but visiting older people in their homes focusing on reducing loneliness and isolation.




	Later Life Goals

Dementia Services	Hertswise	Working in partnership with eight other voluntary sector organisations to provide support for people with Dementia, Mild Cognitive Impairment and memory loss, along with their carers and families.
Health Related Services	Hospital & Community Navigation Service (HCNS) Link Workers (HCNS) Nutrition & Dietetics Service	Working in partnership with six other voluntary sector organisations to provide support services for those discharged from hospital, those identified by their GPs and others as being vulnerable people in need of support to achieve independence and well-being. Link Workers work from GP surgeries as part of the Social Prescribing agenda. They work closely with staff from HCNS to link people to the ‘social prescriptions’ Working with the Hertfordshire Community Trust and working with the Community Nutrition and Dietetics team supporting people who have social causes for malnutrition ensuring that they get the support they need to stay independent in the community.
Income Generation	Help in The Home	A cleaning and domestic tasks service which enables people to remain independent in their homes by supporting them with daily activities.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Objectives, Strategy and Future Plans (continued)

Age UK Hertfordshire delivers services which also meet the priorities of:

The Hertfordshire Health and Well-Being Board’s Health and Well-Being Strategy 2016-20
The Care Act 2014, including the need to support carers
The Hertfordshire JSNA for Older People
Hertfordshire County Council’s (HCC) Adult Care Services Three-Year Plan 2018-21

Age UK Hertfordshire is committed to its responsibilities of being a Brand Partner of Age UK by adhering to the Charity Quality Standard (CQS), which we were awarded in June 2018. The organisation also holds the Advice Quality Standard (AQS) for its Information & Advice Service, awarded in January 2021. Both awards are valid for three years, and we are currently preparing for the CQS re-assessment, which has been delayed due to CV-19.

Age UK Hertfordshire continuously monitors and measures key performance indicators to ensure that objectives and plans are being delivered effectively. The majority of our KPIs are set within the contracts we hold, however, due to the impact of the CV-19 pandemic these KPI’s were not applicable for the period due to them mainly relying on face to face contact. Summary outputs of alternative measures are included in the relevant sections below to illustrate the extent of the organisation’s operational activity during the year.

Plans for Future Periods

The impact of the CV-19 pandemic was significant for Age UK Hertfordshire during 2020-21 and the organisation had to adapt very quickly to the changing environment. The pandemic disrupted timelines of our anticipated plans and strategies for 2020-21, thus impacting on future periods as well.

All our HCC contracts continued throughout 2020-21, offering a welcome element of stability. Looking ahead, the Community Day Services are expected to be re-commissioned during the 2021-22 year. We are reviewing our Day Services to prepare for this, as well as incorporating changes brought about by the pandemic, with potential long-term changes to the way these services will be delivered going forward.

In addition, we will continue to review our premises and IT infrastructure, in order to streamline organisational costs for maximum efficiency, and seek to generate additional income by expanding our income generation activities, to bring in much needed unrestricted funds to help sustain our charitable work. Care will be taken to ensure that these services offer Best Value for our clients, both financially and operationally.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Income Generation and Performance

Income

In 2020-21, Age UK Hertfordshire generated income of £3,470,240 from a range of sources, as shown in Figure 2 below.

Figure 2: Income Sources

The majority of income generated (per Figure 2) is specifically aligned to the delivery of individual services.

Fundraising income is included within ‘Other income’ in Figure 2.

Further detail on income received in the year can be found in the Financial Review section and in the notes to the financial statements (notes 2 to 6).

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Income Generation and Performance (continued)

Performance of Charitable Services

Age UK Hertfordshire has continued to provide a wide range of services to older people in the county throughout 2020-21, although they have been very different from previous years due to the restrictions on providing face to face support. Many services had to adapt to focus on providing essential services to the most vulnerable older people in Hertfordshire as a result of the government lockdowns. Figure 3 summarises the scale of services provided during 2020-21.

Figure 3: Support Provided

Figure 3: Support Provided
Support Activity	2020-21
Number of older people supported	15,152
Number of support calls made	122,938
Number of attendances to our online Active Ageing groups	4,761
Number of food parcels delivered to older people in need	2,291
Number of Activity packs given to older people to stay active	5,740
Number of newsletters sent to isolated older people	3,725
Number of prescriptions delivered to older people in need	1,238
Amount raised for older people through welfare benefits	£4,770,655
Number of older people supported to get online	91
Number of Tablets distributed to help older people get online	68
Number of active volunteers	576
Number of hours provided through Help in the Home	43,348

Volunteers

The work of Age UK Hertfordshire would not be possible without the contribution of volunteers working across all projects and all geographical areas. In 2020-21, our dedicated and committed volunteers were unable to deliver as much support as they normally would, as a result of the lockdown restrictions. Nevertheless, we were still fortunate to have 576 active volunteers during the period who were able to assist with support as restrictions allowed.

All volunteers joining Age UK Hertfordshire go through a structured recruitment process, followed by a thorough induction and appropriate training for their role.

Active Ageing

There are eighteen 10 to 3 Clubs across Hertfordshire most of which meet in the communal lounges of sheltered housing schemes. Each club provides transport for those who need it, a nutritious meal, socialisation, physical exercise, mental stimulation and digital inclusion. These have been closed during the entire CV-19 pandemic due to the sheltered housing schemes following safe working protocols, and so support has been provided through online groups, welfare calls and activity packs to keep people active and engaged.

Chalmers Court Dementia Day Centre provides care and support for users who have some form of dementia through person centred daily activities designed to improve wellbeing. This service has been reopened during the pandemic to ensure people with dementia get the support they need.

Clitheroe Health and Wellbeing Centre is run in partnership with Sanctuary Housing and is open five days a week with a range of activities and sessions. We run our popular Men in Sheds project from this setting, which provides opportunities for older gentlemen to take part in activities they enjoy, which helps improve the gender balance at the day centres. This service has reopened during the pandemic but with reduced capacity to ensure safe practice is followed at all times.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Income Generation and Performance (continued)

Performance of Charitable Services

Befriending

Age UK Hertfordshire offers a countywide Visiting Scheme and Telephone Club which enables older people living on their own, to have links to the outside world. It relies upon our very dedicated volunteers, without whom we could not offer the service. During 2020-21 over 500 dedicated volunteers were unable to provide face to face visits, and so support had to be provided via phone calls or online befriending sessions. This was an essential lifeline for those older people who already feel isolated or alone, which was compounded by the additional isolation that CV-19 and the lockdown restrictions caused.

Emotional Support

InTouch provides a vital telephone support service which helps people aged over 50 with a range of health and wellbeing needs such as those who have had life changing experiences e.g. serious illness or bereavement. This support can act as a life line for many people who need someone to listen and talk in a confidential and impartial way. Due to CV-19, the service saw a surge in enquiries from older people with anxiety and low mood as a result of the isolation and uncertainty brought about by the lockdown restrictions, and so offered a vital role in supporting older people and helping them to improve their wellbeing at such a crucial time.

Information and Advice

A comprehensive, county-wide Information and Advice Service operates across Hertfordshire, primarily through a local rate telephone line, but offering follow-up home visits where appropriate. During 202021 no home visits were made and support with enquiries from older people were dealt with by phone or email. £4.7 million of unclaimed benefits was obtained for the older people of the county in 202021. This is money that not only supported vulnerable older people in our local communities, but also supported the wider Hertfordshire economy.

In 2020-21, the service still continued to deliver the ‘Later Life Goals’ project and the Hertswise Community Information Network (CIN) service.

Our Partnership Work

Health Related Services - Hospital and Community Navigation Service

We are one of seven partners delivering the Hospital and Community Navigation Service (HCNS), which offers a comprehensive package of support for vulnerable people identified by GPs, Social Worker or self-referrals, as well as those discharged from hospital, including from Accident and Emergency and Urgent Care departments or intermediate care. It includes support for people at risk of re-admission and delivers a smooth transition from short-term intervention into mainstream activities that maintain longer-term well-being and independence. This is a county-wide support service for people needing help through social prescribing and practical support to help avoid admission and readmission to hospital and reduce dependence on primary care.

In 2020-21, the HCNS service became the frontline response service for the voluntary sector and was instrumental in supporting vulnerable people with food parcels, prescription collections and welfare calls. The service worked very closely with the hospital teams to ensure timely patient discharge and helping with their capacity to treat the surge in demand for patient treatment. We also continued working with GP Surgeries as part of the Link Worker program. This work is part of the Social Prescribing agenda, supporting people’s unmet needs, with the aim of reducing the number of visits to GP surgeries for non-medical issues.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Income Generation and Performance (continued)

Performance of Charitable Services

Our Partnership Work

Health Related Services - Nutrition and Dietetics Support

In 2020-21, we continued to work in partnership with the Hertfordshire Community Trust, on the Nutrition and Dietetics Service, where we work with the team of dietitians to support patients who have a social cause for their malnutrition i.e. low income, loneliness, lack of social support etc. During 2020-21, this support was mainly provided via telephone calls.

Hertswise Dementia Services

Age UK Hertfordshire is the lead body of the Hertswise project, a partnership with eight other local voluntary sector organisations, supporting people living with dementia, low level memory loss or mild cognitive impairment; as well as their families and their Carers. The project aims to ensure that people of all ages, living with dementia in Hertfordshire, are able to access information, advice, activities and support. During 2020-21 the project had to adapt to online activity groups for both people with dementia and their carers. Outdoor groups and garden visits were also arranged where restrictions eased sufficiently to ensure that the maximum amount of support could be maintained.

Income Generation

Help in the Home is a paid-for service that provides cleaning, domestic tasks and support for activities such as shopping, and it is available across the county. During 2020-21, the service had to reduce its provision during the first couple of months of the financial year due to CV-19 in order to adapt and prepare amended working practices. As a result of the temporary closure, the service provided significantly less hours of support during the course of the year but still delivered over 43,000 hours of domestic support for older people across Hertfordshire, helping them to maintain their independence, by being able to live in their own homes.

Fundraising

Due to CV-19, the organisation’s community fundraising activities were limited. We were, however, able to secure one-off CV-19 funding from a number of funders to support changes to our service delivery. We also received funding for a number of pilot digital inclusion projects to purchase IT equipment (Android Tablets), which were then distributed to older people, and to provide training and guidance to help them access support online. Individual and corporate donations during the year increased to £48,848, which helped us to support older people as a result of the isolating effects of the pandemic.

Since 2018-19 we have been working with a commercial participator Clothes Aid (Services) Limited (Clothes Aid), through a tripartite agreement in conjunction with our Trading subsidiary, Age UK Hertfordshire Trading Ltd. We monitor this arrangement and the fundraising activity carried out by Clothes Aid through regular Trading subsidiary governance meetings and also meetings with Clothes Aid and their collections representatives.

In 2020-21 Clothes Aid collections were put on hold for the major part of the year as a result of the CV19 lockdown restrictions. However a small amount of income £2,641 was received in the year. Collections are planned to continue in 2021-22.

Since June 2018 the charity has been registered with the Fundraising Regulator and is committed to following the Code of Fundraising Practice and the Fundraising Promise. We publish clear information about our complaints procedure on our website, which members of the public can access.

To ensure that we do not carry out any fundraising which involves unreasonable intrusion on a person’s privacy, is unreasonably persistent or places undue pressure on a person to give money or other property we ensure all staff and volunteers involved in fundraising are trained and inducted to carry out the charity’s fundraising activities in line with the Fundraising Promise.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Financial Review

Financial Summary Income Expenditure Net Income / Expenditure Reserves Restricted Unrestricted - Designated Unrestricted - General Total Reserves	2019-20 £ 2020-21 £ 3,660,518 3,470,240 (3,622,966) (3,512,880)
	37,552 (42,640)
	2019-20 £ 2020-21 £ 161,561 169,101 990,819 757,865 433,195 615,969
	1,585,575 1,542,935

The Board of Trustees approved a budgeted operating deficit of £209,223 for the year ending 31 March 2021, including expenditure on restricted funds carried forward of £2,968. In addition the budget deficit included agreed funding from unrestricted designated reserves for strategic investment, service changes in Active Ageing, match funding for projects and investment in staffing resources of £253,051.

The Covid-19 pandemic altered Age UK Hertfordshire’s strategic and operational plans for 2020-21. As a result regular and detailed financial forecasting was required from the beginning of the financial year to carefully monitor the impact of service closure and changes to delivery on the charity’s financial position. The closure of the Help in the Home Service for several months had a significant impact on finances compared with budget expectations, although alternative and additional funding was secured during the year to support the organisation’s response to Covid-19.

In 2020-21 the organisation is reporting a deficit of £42,640 (2020 £37,552 surplus), which is £166,593 better than the approved budgeted operating deficit. Although this is better than budget position the Covid-19 pandemic delayed some of the budgeted development investment and service change costs that were planned for 2020-21 and were also as a result of a reduction in much needed face to face services during this period.

As a frontline health and social care charity Age UK Hertfordshire were able to apply for additional COVID-19 related grant funding to support the changes needed to service delivery and also to support clients with digital training and tablets to combat digital exclusion, loneliness and isolation during the pandemic. Unbudgeted legacy income of £93,955 (2020 £44,865) also contributed to this year’s financial position.

In the year to 31 March 2021 Age UK Hertfordshire’s total incoming resources amounted to £3,470,240, a decrease of £190,278 on the previous year’s income (2020 £3,660,518). Income from charitable activities decreased by £230,894 to £3,313,494 (2020 £3,544,388). Fees and activities income decreased by £798,348 (predominantly due to Help in the Home and Active Ageing services). This decrease was partially offset by a £567,454 increase in performance related grants and service level agreements (predominantly due to use of the HMRC’s Coronavirus Job Retention Scheme and other one-off COVID19 related grants.).

Donations and legacies income increased by £54,585 on the previous year to £142,803 (2020, £88,218). This includes donations of £48,848, either received directly from individuals and local companies to support our work during COVID-19 or via individual fundraisers raising money on our behalf.

The Trading subsidiary’s 2020-21 income decreased to £2,641 (2020 £11,715). The income represented commissions received via the commercial participation arrangement with Clothes Aid (Services) Limited, who were unable to collect clothing and other donations at various times during the year due to Covid19 restrictions.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Financial Review (continued)

Due to the economic situation and the uncertain impact of Covid-19 on the financial position of the organisation, bank balances were kept in low interest bearing accounts to ensure access to working capital. As a result Age UK Hertfordshire received £2,781 investment income in the year, which was a decrease of £5,732 from the previous year (2020 £8,513).

Total resources expended amounted to £3,512,880, which was an overall decrease in costs of £110,086 compared with the previous year (2020 £3,660,518). The cost of charitable activities (£3,449,992) decreased compared with the previous year (2020 £350,184) due to the impact of Covid-19.on service delivery costs including staffing levels, travel, transport, venue and activity costs. Raising funds costs increased from £42,782 (2020) to £62,888 in the current year due to increased staff and support costs for fundraising and Trading Company administration.

Further information on the staffing and other costs incurred in the year are set out in notes 6, 7, 8 and 9 of the financial statements.

Reserves

In 2018-19 the Board of Trustees reviewed and updated the organisation’s previous Reserves Policy and considered both the main risks to the organisation and the amount, and type, of reserves needed to support the variety of services it delivers, as well as their various working capital requirements.

Based on the findings of this review the Trustees deemed that a standard ‘one size fits all’ approach to calculating reserves (e.g. X months of total organisational annual expenditure) is not the most appropriate method for calculating the level of unrestricted reserves required by Age UK Hertfordshire. They considered that a multi-layered approach, with some specific designated funds, as well as some unrestricted reserves held as general funds, is more appropriate.

Therefore the Trustees established and approved a Reserves Policy that considers and quantifies the types and monetary values of funds required by the organisation. The aim of the policy is to ensure that sufficient and appropriate designated and general reserves are available to meet the organisation’s needs in terms of working capital, future development, committed expenditure and statutory obligations. The policy also ensures that any unspent restricted funding remaining at the year-end is ring-fenced in a separate restricted fund (as this must be returned to funders if not used for the activities outlined in the funding agreement).

The Reserves Policy was reviewed and updated during 2020-21 as part of the organisation’s risk management practices in order to ensure its continuation relevance during, and following, the impact of the COVID-19 pandemic.

The Board of Trustees continue to review the organisation’s need for reserves as a result of the changes that have occurred during the year and since the year end due to COVID-19 and consider that the updated Reserves Policy remains relevant and applicable at this time.

At 31 March 2021 Age UK Hertfordshire’s total reserves amounted to £1,542,935 (2020 £1,585,575) with total unrestricted funds of £1,373,834 (2020 £1,424,015). More details on the types of funds held are set out below.

Restricted Funds

Restricted funds include unspent grant and contract income that can only be used on specific activities (in line with the requirements set out in funding agreements) and therefore has been ring-fenced separately in the accounts. These funds will be utilised in future periods and include amounts ringfenced specifically for the Hertswise Dementia project, Health Related Services projects and Active Ageing projects. £169,101 of reserves are held as restricted funds as at 31 March 2021 (2020 £161,560) as shown in notes 15 and 17 of the financial statements.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Financial Review (continued)

Reserves

Unrestricted Designated Funds

In line with the Reserves Policy operational and strategic funds have been designated to support the organisation’s strategy, operational needs and working capital requirements.

The designated strategic and operational funds at the year-end include:

IT Development Fund (for the replacement of IT hardware, IT infrastructure and the development of organisational software and database systems under the organisation’s digital strategy),
Project Development Fund (for project continuation, matched funding and the development of new projects),
Staffing Commitments Fund (in relation to anticipated future staffing commitments),
Building Dilapidations and Premises Fund (for reinstatement of premises at the end of current leases or to enable office / service delivery location moves or buildings alterations resulting from organisational or operational change), and
Working Capital Fund (to meet the working capital requirements of the organisation and two key projects, Hertswise and Help in the Home).

Total unrestricted designated funds at 31 March 2021 are £757,865 (2020 £990,819), which is a decrease of £232,954. The main changes in these funds are discussed below. (The balance held in each designated strategic and operational fund is shown in note 16 of the financial statements).

The organisation’s IT Development Fund has been revised at the end of 2020-21, as the impact of COVID-19 has put on hold some of the original plans for these funds. Currently strategic review work is considering the impact of the changes in remote working practices and service delivery that occurred during 2020-21 and reviewing the organisation’s future premises and IT infrastructure requirements. Following the outcome of this review the level of designated funds required in the IT Development Fund will be reviewed and revised, as necessary.

Some of the funds designated within the Project Development Fund at 31 March 2020 have been utilised in the year to support existing services for older people in Hertfordshire including the shortfall in funding for the organisation’s county-wide Information and Advice service and the Clitheroe Health and Wellbeing Centre. Additional amounts have been designated as at 31 March 2021 to mitigate the risks of changes in future funding (given the current economic situation, anticipated re-commissioning of services and the impact of COVID-19). Funds have also been designated to specifically support 202122’s shortfall in funding for the Information and Advice service and Clitheroe centre.

Changes to the Working Capital Fund have been implemented due to COVID-19’s impact on the scale and size of the Help in the Home service and future forecasted working capital requirements.

There have also been minor changes to the Staffing Commitments and Building Dilapidations and Premises Fund to reflect Age UK Hertfordshire’s use of the Clitheroe Health & Wellbeing Centre building and the latest estimates in relation to the TPT Growth Plan withdrawal deficit.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Financial Review (continued)

Reserves

Unrestricted General Funds

The organisation’s revised Reserves Policy states that an amount of unrestricted reserves should also be held to cover the general working capital needs of the organisation and to cover ongoing regular expenditure. As cash-flow requirements vary, depending on the number of current projects and payment processing timetables, a target range of unrestricted general funds is considered appropriate to ensure sufficient finances for the future.

The organisation’s revised Reserves Policy is to hold between 1 to 3 months of ‘Organisational Expenditure’ as unrestricted general funds.

‘Organisational Expenditure’ is defined as follows:

Total organisational annual expenditure * less restricted and designated fund expenditure

This is based on the current (or following) financial year’s budgeted expenditure
A month of ‘Organisational Expenditure’ is calculated by dividing the result above by 12.

The balance of the organisation’s reserves (after allocations to restricted and unrestricted designated funds) are held as unrestricted general funds. As at 31 March 2021 this amounts to £615,969 (2020 £433,196) and is shown in note 16 of the financial statements. This equates to 3.1 months of ‘Organisational Expenditure’, which is at the top of the reserves range stated in the organisation’s Reserves Policy. The Trustees consider this appropriate to help mitigate against the current financial risks, Covid-19 uncertainty and possible service changes for 2021-22.

Also included in general unrestricted funds (due to their low value) are the organisation’s fixed assets, which amount to £11,910 (2020 £17,480). These amounts can only be accessed by disposal of the fixed assets and as such are not readily available for use by the trustees. If the value of fixed assets were to increase significantly a specific designated fund would be created to match the value of the assets to ring-fence these funds.

The subsidiary trading company’s reserves of £6,273 (2020 £7,938) are also included in general unrestricted funds.

Total Reserve Levels

By reviewing and updating the organisation’s Reserves Policy the Board of Trustees has examined the risks to, and the level of reserves required by, the Charity to continue to deliver services to benefit the older people of Hertfordshire.

In the Trustees' view the level of reserves held at 31 March 2021 provide the charity with adequate financial stability and the means for it to meet its charitable objectives for the foreseeable future.

Trading Subsidiary

The Trading subsidiary receives commissions from a commercial participation agreement with Clothes Aid (Services) Limited to raise funds for the charity. In 2019-20 the Trading Company made a profit of £8,968, which was distributed to the charity under the Deed of Covenant dated March 2020 and retained reserves of £7,938.

In 2020-21 due to the impact of Covid-19 and the reduction in ClothesAid commissions the Trading Company reported a loss of £1,665. Therefore there was no distribution to the charity at the end of the financial year and the Trading Company’s retained reserves as at 31 March 2021 are £6,273.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Financial Review (continued)

Principal Funding Sources

Age UK Hertfordshire is very grateful to the following as the principal sources of funding to enable the charity to carry out its objectives and support our clients during the Covid-19 pandemic:

Funders	Funders
Hertfordshire County Council (HCC)	Hertfordshire Community NHS Trust
East & North Herts and Herts Valleys Clinical Commissioning Groups (CCGs) / Hertfordshire Primary Care Networks (PCNs)	HM Revenue & Customs (HMRC)
Age UK (National)	North Herts District Council (NHDC)
British Red Cross	Sanctuary Housing
Co-operative Group	Sport England / Herts Sports Partnership
Garfield Weston Foundation	St Albans District Council
Hertfordshire Care Providers Association (HCPA)	St Albans Old People’s Trust
Hertfordshire Community Foundation	Welwyn Hatfield Borough Council

In addition, we are grateful to the clients that use our paid-for services; for the kind and generous donations from individuals and organisations; for the fundraisers giving up their time to raising money on our behalf and for those who remember us in their wills. Paid-for services, donations and legacy income are vital sources of unrestricted income to help us to continue to support the older people of Hertfordshire, both now and in the future.

Pension Liabilities

Age UK Hertfordshire operates a multi-employer defined contribution pension plan with The Pension Trust’s (TPT) Growth Plan Series 4, with all employees eligible to join the scheme under auto enrolment legislation. Contribution levels of between 3% and 6% were paid by the charity in 2020-21 and these rates will continue for future financial periods and increase in line with any legislative requirements.

Series 1, 2 and 3 of the Plan are classed as defined benefit pension plans and are closed to new entrants and future accruals for existing employees. The organisation is currently making deficit contributions to Series 1 and 2 of the Growth Plan (Defined Benefit Schemes) under an arrangement with TPT that will continue until January 2025. The deficit contributions for 2020-21 were £4,484 (2019-20 £4,353) and are expected to be £4,618 for 2021-22.

The latest triennial valuation of the scheme has revealed a shortfall of assets compared with the value of liabilities, the share attributed to Age UK Hertfordshire is £84,114 (2020 £89,414). This would only be payable if Age UK Hertfordshire had no contributing members in the scheme. The Trustees have no plans to withdraw from the scheme at the current time.

Investment Policy

Under the Articles of Association, the trustees have the power “to set aside funds for special purposes or as reserves against future expenditure ” and “to deposit or invest funds in any manner (but to invest only after obtaining advice from a Financial Expert, unless the Charity Trustees reasonably conclude that in all the circumstances it is unnecessary or inappropriate to do so, and having regard to the suitability of investments and the need for diversification)”.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Financial Review (continued)

Investment Policy

The charity holds financial assets to fund current projects or those most likely to be commenced in the near future.

The Trustees consider that it would, therefore, be inappropriate to commit funds to longer term equity based investments and the risk inherent in them.

To manage the risks of the Covid-19 pandemic, the economic situation and the uncertainty of future income streams the Trustees have also considered that short notice access to cash assets is required. The Trustees have therefore resolved to continue holding funds in deposit accounts and to restrict these to sterling denominated accounts to avoid exchange rate and capital reduction risks at the current time.

Funds are currently held in the Charity Office of Investment Funds Deposit Account and Barclays Bank Business Premium Account. The investment situation is reviewed regularly in line with the organisation’s operational and strategic working capital requirements, the organisational strategy and Reserves Policy. The use of another deposit holder would require the authorisation of the Trustees. The Trustees are satisfied with the performance of these funds in the current economic climate.

Risk Management

The Trustees meet monthly and the focus of each meeting is set out in an annual governance plan. The plan ensures that the Board regularly review the relevant aspects of the charity’s risks and the full risk register is reviewed quarterly.

The organisation has a range of policies and procedures, covering all aspects of the management of the organisation, to minimise risk. The Trustees have reviewed internal controls over financial, health and safety and operating systems and believe that they are sufficient to minimise significant risks. All the charity’s operating systems and policies are reviewed on a regular basis. The level and scope of the charity’s insurance cover is reviewed each year before renewal .

The Trustees are confident that the present obligations of the charity can be met from the resources held and that the financial position of the charity is sufficiently robust at the current time. A strategic review has shown that the loss of any individual income stream would not place the charity at immediate risk; reserves are sufficient to allow a timely withdrawal whilst minimising hardship to clients.

During the last financial year as a result of the impact of COVID-19 the Trustees have been, and continue to, carefully and regularly monitor the ongoing risks to the organisation, its services and its financial position via the risk register, operational reviews and financial forecasting. Future plans are being modified as necessary to mitigate against these risks.

Impact of COVID-19

The impact of COVID-19 from mid – March 2020 and throughout the lockdown period affected the charity in many ways and all face to face services ceased almost overnight. Unsurprisingly this had a major impact on our clients and their families and also on our staff and volunteers as the pandemic continued throughout 2020-21. Throughout this time we have been amazed at, and proud of, the response of everyone to adapting to these new and difficult circumstances to continue to support older people across Hertfordshire.

Impact on Strategic Plans – Many of our plans have been delayed as our focus has been on ensuring client safety and well-being. Strategic plans are currently being reviewed in light of the ‘new normal’ for Age UK Hertfordshire, our clients, our services and the wider economy.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Impact of COVID-19

Impact on Service Delivery – COVID-19 has changed the way we work with our clients, services had to move to a telephone or electronic format to continue to support our clients and ensure no-one felt isolated and alone. Food parcels, activity and comfort packs were delivered to those needing them, especially at the beginning of the pandemic when many clients were on lockdown and had no access to cash, or online services.

Office-based staff changed the way they worked too using systems and equipment to enable working from home. Staff adapted well to the transition, ensuring the business could continue to operate a full service, wherever possible.

Where face-to-face services have resumed, virus control measures and precautions have been taken, in line with government guidelines. Higher level of Personal Protective Equipment were implemented to protect staff as well as clients. We continue to adapt and update our operational procedures and training to incorporate the latest guidance and changes in social distancing, whilst protecting our clients, staff and volunteers.

Impact on Financial Position - Regular reviews of the current and forecasted future financial position were undertaken by the Senior Management Team throughout 2020-21 and reported and reviewed by the Board as part of the organisation’s governance structure. These include reviews of levels of Restricted and Unrestricted Reserves and the designations in place for plans for future periods.

Income from our paid-for service Help in the Home has been severely impacted as the service was suspended during the first lockdown. However, the service recommenced in June 2020 operating under revised procedures and with the required PPE in place.

Going Concern

The Covid-19 financial position was carefully monitored and reviewed during 2020-21. Despite the impact on the Help in the Home service income in the year the charity only reported a small deficit in the year, largely due to additional one-off Covid-19 grants supporting the charity’s services and enabling the retention of staff during periods of lockdown and service changes.

At the year end the Trustees consider that the charity has adequate reserves to continue to develop and provide services during this period of uncertainty, now and also for the foreseeable future. The financial statements have therefore been prepared on the basis that the charity is a going concern, as described in the statement of accounting policies.

Legal and Administrative Information

Board of Trustees

The Board of Trustees consists of

a. The Chair of the charity
b. Four or more other persons elected by the charity’s members at the Annual General Meeting, , though the Board may function with two other persons for a period not exceeding six months if necessary.
c. Any persons joining the Board throughout the year may be co-opted by the board, with voting rights, and may be elected onto the Board at the next Annual General Meeting.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Legal and Administrative Information (Continued)

Board of Trustees

Charity Trustees, once appointed at an AGM, shall hold office for an initial term of two years and may be reappointed for up to two further terms of three years each. Trustees will confirm they wish to continue in the role on an annual basis, at the AGM.

New Trustees are recruited via external recruitment campaigns, which include advertising on the organisation’s website, using social media and using third party recruitment sites. A two stage interview process is carried out by the Board and includes candidates’ observation of at least one Trustee meeting.

The organisation has a Volunteers Policy and inducts all new volunteers into the organisation. In addition, new Trustees are given suitable training and a more detailed induction to the organisation and its services to enable them to fulfil their voluntary role.

None of our trustees receive any remuneration for their role but are entitled to claim reimbursement for out of pocket expenses incurred during their role.

Decision Making

The organisation’s Delegation of Authority policy sets out the key decisions and approvals that remain the responsibility of the Board. The Trustees vote on any such decisions and approvals (in line with the organisation’s governing document) and a majority of votes in favour are needed to ratify them.

The following members held honorary roles during the year:

Name	Honorary role from April 2020	Honorary role from November 2020

John Ellis	Acting Chair from November 2019

Victoria Tassell	Trustee
Mousumi Basu	Trustee
MaryCompton	Trustee
JennyWiles	Trustee
Robin Kember		Co-opted July 2020;
		appointed at November 2020 AGM

Policies and Procedures

As a Brand Partner of Age UK, Age UK Hertfordshire adheres to, and is assessed against, the Age UK Organisational Quality Standards. However, as an independent charitable company the organisation has the autonomy to develop and implement its own policies and procedures to meet both these standards and our statutory and legislative responsibilities.

External Relationships

The organisation operates under formal partnership agreements to deliver Community Dementia Services, Hospital and Community Navigation Services and the Nutrition and Dietetics service as outlined in the Objectives, Strategy and Future Plans section above.

Management Structure

The day to day management of Age UK Hertfordshire is delegated to the Chief Executive, who reports to the Board of Trustees through the Governance structure and the Board meetings. Line management is provided by the Chair. The Chief Executive leads the Director of Operations and an Extended Management Team, who are responsible for the day-to-day management of Age UK Hertfordshire.

Age UK Hertfordshire Trustees Annual Report (incorporating Directors Report) For the year ended 31 March 2021

Legal and Administrative Information (continued)

Senior Management Team

Chief Executive Mark Hanna (from 12 July 2021) ( also Interim Chief Executive / Director of Operations until 11 July 2021 ) Deborah Paniagua (until 28 February 2021)

Head of Finance Mark Brennan (from 21 June 2021) Chrissie Cornford (until 2 June 2021)

Company Secretary Jenny Wiles (from 30 September 2020) Lorna Boyd-Bell (until 31 August 2020)

Senior Management Team Remuneration

The remuneration of the Senior Management Team is the responsibility of the Board of Trustees and this is reviewed annually in line with the organisation’s Remuneration and Benefits Policy. Pay scales are in place that take into consideration the skills and experience required of the roles, the structure of the organisation and the organisation’s financial position. Pay scales are reviewed periodically as part of the strategic, financial and resource planning.

Registered Office, Principal Address and Advisers

Registered Office and Principal Address Auditors 1 Silver Court Myers Clark Watchmead Egale 1 Welwyn Garden City 80 St Albans Road Hertfordshire Watford AL7 1LT Hertfordshire WD17 1DL

Bankers

Barclays Bank plc CCLA Investment Management Ltd 78 Turners Hill Senator House Cheshunt 85 Queen Victoria Street Hertfordshire London EN8 9BW EC4V 4ET

Appreciation and Board of Trustees Approval

The Board of Trustees would like to record its appreciation and thanks for the work and support of the Senior Management Team, all members of staff and all volunteers.

The Trustees Report and Strategic Report (including Director’s Report) were approved by the Board of Trustees.

Signed on behalf of the Trustees and Directors on 26 October 2021 by:

…………………………… John Ellis Acting Chair

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AGE UK HERTFORDSHIRE

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF AGE UK HERTFORDSHIRE

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 and part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charity’s trustees as a body, and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Myers Clark

26 October 2021

Chartered Accountants Statutory Auditor

Egale 1 80 St Albans Road Watford Hertfordshire WD17 1DL

22 -

AGE UK HERTFORDSHIRE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted funds funds Notes £ £ Income from: Donations and legacies 2 142,803 - Charitable activities 3 1,915,213 1,398,281 Other trading activities 4 11,162 - Investments 5 2,781 - Total income 2,071,959 1,398,281 Expenditure on: Raising funds 6 62,888 - Charitable activities 7 2,008,511 1,441,481 Total resources expended 2,071,399 1,441,481 Net incoming/(outgoing) resources before transfers 560 (43,200) Gross transfers between funds (50,741) 50,741 Net (expenditure)/income for the year/ Net movement in funds (50,181) 7,541 Fund balances at 1 April 2020 1,424,015 161,560 Fund balances at 31 March 2021 1,373,834 169,101	Total 2021 £ 142,803 3,313,494 11,162 2,781 3,470,240 62,888 3,449,992 3,512,880 (42,640) - (42,640) 1,585,575 1,542,935	Total 2020 £ 88,218 3,544,388 19,399 8,513
		3,660,518
		42,782 3,580,184
		3,622,966
		37,552 -
		37,552 1,548,023
		1,585,575

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

All income and expenditure derive from continuing activities.

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

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AGE UK HERTFORDSHIRE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Consolidated Statement of Financial Activities (Prior year detail)

Unrestricted Restricted funds funds Notes £ £ Income and endowments from: Donations and legacies 88,218 - Charitable activities 2,666,414 877,974 Other trading activities 19,399 - Investments 8,513 - Total income 2,782,544 877,974 Expenditure on: Raising funds 42,782 - Charitable activities 2,545,155 1,035,029 Total resources expended 2,587,937 1,035,029 Net incoming/(outgoing) resources before transfers 194,607 (157,055) Gross transfers between funds (109,380) 109,380 Net income/(expenditure) for the year/ Net incoming/(outgoing) resources 85,227 (47,675) Fund balances at 01 April 2019 1,338,788 209,235 Fund balances at 31 March 2020 1,424,015 161,560	Total 2020 £ 88,218 3,544,388 19,399 8,513
	3,660,518
	42,782 3,580,184
	3,622,966
	37,552 -
	37,552 1,548,023
	1,585,575

24 -

AGE UK HERTFORDSHIRE

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2021

Notes Fixed assets Tangible assets 10 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Income funds Restricted funds 15 Unrestricted funds Designated funds 16 General unrestricted funds 16	2021 £ 273,870 1,654,661 1,928,531 (397,506) 757,865 615,969	£ 11,910 1,531,025 1,542,935 169,101 1,373,834 1,542,935	2020 £ 245,505 1,757,795 2,003,300 (435,205) 990,819 433,196	£ 17,480 1,568,095
				1,585,575
				161,560 1,424,015
				1,585,575

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

The financial statements were approved by the Trustees on 26 October 2021

John Ellis Trustee

Company Registration No. 03539971

25 -

AGE UK HERTFORDSHIRE

CHARITY BALANCE SHEET

AS AT 31 MARCH 2021

Notes Fixed assets Tangible assets 10 Investments 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Income funds Restricted funds 15 Unrestricted funds Designated funds 16 General unrestricted funds 16	2021 £ 273,870 1,644,207 1,918,077 (393,325) 757,865 609,697	£ 11,910 1 11,911 1,524,752 1,536,663 169,101 1,367,562 1,536,663	2020 £ 251,896 1,740,758 1,992,654 (432,499) 990,819 425,257	£ 17,480 1
				17,481 1,560,155
				1,577,636
				161,560 1,416,076
				1,577,636

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

The financial statements were approved by the Trustees on 26 October 2021

John Ellis Trustee

Company Registration No. 03539971

26 -

AGE UK HERTFORDSHIRE

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes Cash flows from operating activities Cash (absorbed by)/generated from operations 22 Investing activities Purchase of tangible fixed assets Interest received Net cash generated from/(used in) investing activities Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Relating to: Cash at bank and in hand	2021 £ - 2,781	£ (105,915) 2,781 - (103,134) 1,757,795 1,654,661 1,654,661	2020 £ (11,366) 8,513	£ 10,100 (2,853) - 7,247 1,750,548 1,757,795 1,757,795

The charity has taken advantage of the disclosure exemptions in paragraph 1.12 of FRS 102 in choosing to not prepare a separate charity statement of cash flows. The charity's statement of cash flows is consolidated in the consolidated statement of cash flows above.

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AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.1 Accounting convention

The consolidated financial statements have been prepared in accordance with the group's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019) and the Charities Act 2011. The group is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

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

The trustees consider that there are no material uncertainties about the group's ability to continue as a going concern.

1.3 Charitable funds

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

The charity has designated funds at the year-end which comprise funds for the IT & Communications Development Fund (for replacement of hardware and IT & communications infrastructure), Project Development Fund (for project continuation, matched funding and the development of new projects), Staffing Commitments Fund (in relation to anticipated future staffing commitments), Building Dilapidations Fund (for reinstatement of premises at the end of current leases) and Working Capital Fund (in relation to the working capital requirements of key projects). For all operational designated funds, expenditure is incurred on an ongoing regular basis.

Restricted funds are subject to specific conditions by donors as to how they may be used that are narrower than the general charitable purposes of the charity.

1.4 Income recognition

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

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

Legacies are recognised on receipt or otherwise if the group has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. In the event that income is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

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AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Donated goods, facilities and services provided to the charity are included as income (with an equivalent amount recognised as a cost) where the value to the charity can be quantified. This is determined as the value of the donated goods, facilities and services to the charity and is equivalent to the open market price the charity would have paid for them. No financial amounts have been included within the financial statements for the services provided by volunteers.

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 payable from the bank.

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

1.5 Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on the accruals basis. Irrecoverable VAT is charged against the expenditure heading for which it was incurred. All expenses including support and governance costs are allocated or apportioned to the applicable expenditure headings.

Expenditure on raising funds comprises costs incurred in the trading subsidiary, fund raising and an apportionment of governance and support costs.

Expenditure on charitable activities includes an apportionment of governance and support costs.

Support costs are initially identified between governance and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include statutory audit and legal fees together with an apportionment of overhead costs. Other support costs comprise the general running costs of the charity.

Support costs have been apportioned based on the full time equivalent numbers of staff engaged in each activity.

1.6 Tangible fixed assets

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

Office assets for administration use costing more than £2,000 with an estimated useful life of at least 3 years are capitalised. Office assets purchased for project use are written off in the year of purchase.

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

Leasehold improvements Length of the lease Fixtures, fittings and equipment 3 to 4 years

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

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AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.7 Impairment of fixed assets

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

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

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

Derecognition of financial liabilities

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

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AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.10 Employee benefits

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

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

1.11 Retirement benefits

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

1.12 Leases

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

1.13 Pension scheme

The charity offers membership of The Pensions Trust Growth Plan to all staff under the pensions audit enrolment legislation. The charity and staff members each contribute either the minimum percentage contributions under auto enrolment or 6% of their salary to the scheme. The plan is a multi-employer defined benefit pension plan. It is not possible to identify the charity's share of the underlying assets and liabilities. Pension costs in respect of the scheme are charged as they are incurred.

2 Donations and legacies

	Unrestricted	Unrestricted
	funds	funds
	2021	2020
	£	£
Donations and gifts	48,848	43,353
Legacies receivable	93,955	44,865
	142,803	88,218

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AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

3 Charitable activities

Fee and activity income Service level agreements Performance related grants Analysis by fund Unrestricted funds Restricted funds For the year ended 31 March 2020 Unrestricted funds Restricted funds	Fee and activity income Service level agreements Performance related grants £ £ £ 905,180 - - - 826,685 - - - 1,581,629 905,180 826,685 1,581,629 905,180 - 1,010,033 - 826,685 571,596 905,180 826,685 1,581,629 1,703,528 - 962,886 - 660,772 217,202 1,703,528 660,772 1,180,088	Total 2021 £ 905,180 826,685 1,581,629 3,313,494 1,915,213 1,398,281 3,313,494	Total 2020 £ 1,703,528 660,772 1,180,088
			3,544,388
			2,666,414 877,974
			3,544,388

Government grants and other support

Included in performance related grants is £1,337,222 (2020: £1,069,501) received from local authorities, the majority of which funds Active Ageing (£332,117) (2020: £291,893), Health Related Services (£498,407) (2020: £469,730) and Visiting Scheme & InTouch (£232,554) (2020: £232,554). At 31 March 2021, all amounts in relation to these amounts were expended and the performance criteria had been met (2020: All amounts expended at the year end).

4 Other trading activities

Unrestricted Restricted funds funds £ £ Turnover from Trading Company's operations 2,641 - Fundraising income 203 - Other 8,318 - Other trading activities 11,162 - For the year ended 31 March 2020 19,399 -	Total 2021 £ 2,641 203 8,318	Total 2020 £ 11,715 1,102 6,582
	11,162	19,399
		19,399

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AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

5 Investments

6	Unrestricted Unrestricted funds funds 2021 2020 £ £ Interest receivable 2,781 8,513 Raising funds 2021 2020 £ £ Fundraising and publicity Other fundraising costs 2,229 2,313 Staff costs 43,825 27,155 Support costs 12,528 10,567 Fundraising and publicity 58,582 40,035 Trading costs Trading company - administrative expenses 4,306 2,747 62,888 42,782	Unrestricted Unrestricted funds funds 2021 2020 £ £ Interest receivable 2,781 8,513 Raising funds 2021 2020 £ £ Fundraising and publicity Other fundraising costs 2,229 2,313 Staff costs 43,825 27,155 Support costs 12,528 10,567 Fundraising and publicity 58,582 40,035 Trading costs Trading company - administrative expenses 4,306 2,747 62,888 42,782
		2020 £ 2,313 27,155 10,567
		40,035
		2,747
		42,782

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AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

7 Charitable activities

Staff costs Other direct costs Share of support costs (see note 8) Analysis by fund Unrestricted funds Restricted funds	Active Ageing Information and Advice £ £ 297,218 79,044 34,485 5,467 331,703 84,511 140,147 35,758 471,850 120,269 341,982 20,559 129,868 99,710 471,850 120,269	Paid-For Services Dementia Services £ £ 928,897 171,397 142,187 517,378 1,071,084 688,775 131,286 92,842 1,202,370 781,617 987,883 - 214,487 781,617 1,202,370 781,617	Health Related Services Visiting Scheme & InTouch £ £ 468,416 142,388 31,029 6,899 499,445 149,287 160,987 64,167 660,432 213,454 444,633 213,454 215,799 - 660,432 213,454	Total 2021 £ 2,087,360 737,445 2,824,805 625,187 3,449,992 2,008,511 1,441,481 3,449,992	Total 2020 £ 2,203,985 710,949
					2,914,934 665,250
					3,580,184

34 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

7 Charitable activities

Charitable activities (prior year detail)

Staff costs Other direct costs Share of support costs (see note 8) Analysis by fund Unrestricted funds Restricted funds	Active Ageing Information and Advice £ £ 300,645 92,241 155,033 10,611 455,678 102,852 161,226 34,086 616,904 136,938 481,487 81,138 135,417 55,800 616,904 136,938	Paid-For Services Dementia Services £ £ 1,103,283 161,071 66,255 434,159 1,169,538 595,230 150,320 72,377 1,319,858 667,607 1,303,103 - 16,755 667,607 1,319,858 667,607	Health Related Services Visiting Scheme & InTouch £ £ 413,470 133,275 28,388 16,503 441,858 149,778 175,658 71,583 617,516 221,361 458,066 221,361 159,450 - 617,516 221,361	Total 2020 £ 2,203,985 710,949
				2,914,934 665,250
				3,580,184
				2,545,155 1,035,029
				3,580,184

35 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

8 Support & governance costs SUPPORT COSTS Staff costs Training, recruitment & travel Computer equipment Postage, printing & telephone Premises Depreciation Legal & professional Other support costs Allocated to governance costs GOVERNANCE COSTS Analysed between Fundraising Charitable activities	2021 £ 412,982 2,179 48,802 34,979 90,235 5,570 11,195 17,675 (2,771) 16,869 637,715 12,528 625,187 637,715	2020 £ 418,869 9,604 42,477 43,842 117,649 7,241 10,658 5,200 (6,114) 26,391 675,817 10,567 665,250 675,817

Governance costs includes payments to the auditors of £10,680 (2020 - £11,076) for audit fees and £2,640 (2020 - £2,970) for accountancy fees.

36 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

9 Staff and Volunteers

Number of employees

Number of employees
Active Ageing Visiting Scheme & In Touch Information & Advice Hertswise Health Related Services Help in the Homes Fundraising Management and administration Governance Employment costs Wages and salaries Social security costs Pension costs	GROUP Average headcount 2021 2020 Number Number 37 39 9 8 3 3 7 7 19 19 187 331 1 1 13 12 1 1 277 421 2021 2021 Group Charity £ £ 2,344,331 2,344,331 121,521 121,521 78,315 78,315 2,544,167 2,544,167	GROUP Full time equivalent employee numbers 2021 2020 Number Number 14 14 6 8 3 3 6 5 16 13 49 61 1 1 11 8 - 1 106 114 2020 2020 Group Charity £ £ 2,460,895 2,460,895 116,685 116,685 72,429 72,429 2,650,009 2,650,009
			114
			2020 Charity £ 2,460,895 116,685 72,429
			2,650,009

Employee Benefits Disclosure

The number of employees receiving total employee benefits exceeding £60,000 (excluding pension costs) were:

£80,000 - £90,000 Total number of employees	2021 Number 1 1	2020 Number -
		-

In 2020 there were no employees who received total employee benefits of over £60,000 (excluding pension costs).

37 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

9 Staff and Volunteers

Disclosure on redundancy and termination payments

Total redundancy and termination payments in the year amounted to £37,470 (2020: £Nil) and related to redundancy and settlement payments.

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

At the balance sheet date (31 March 2021) all amounts due had been paid.

Pension costs

Staff are entitled to contribute to TPT's Growth Plan (the Plan). The Plan is funded and is not contracted out of the state scheme. Series 1, 2 and 3 of the Plan is a multi-employer defined benefit pension plan. Series 4 of the Growth Plan is a defined contribution pension plan. Series 3 of the Plan closed on 30 September 2013 and from this date all contributions are paid in to the Plan Series 4.

Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from Normal Retirement Date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity.

It is not possible in the normal course of events to identify on a reasonable and consistent basis the share of underlying assets and liabilities belonging to individual participating employers. The Plan is a multi-employer scheme where the scheme assets are co-mingled for investment purposes, and benefits are paid from the total scheme assets. Accordingly, due to the nature of the Plan, the accounting charge for the period under FRS 102 represents the employer contribution payable.

A triennial valuation was completed on the Growth Plan as at 30 September 2020 by a professionally qualified actuary. Using the Buy-Out Basis the valuation revealed a shortfall of assets compared with the value of liabilities of £140.7m equivalent to a funding level of 85%. This is an improved funding position compared with the previous triennial valuation carried out as at 30 September 2017 (£187.2m funding deficit, funding level of 81%). As at 30 September 2020 the share of this attributed to Age UK Hertfordshire has been calculated by TPT to be £84,114 (30 September 2019 value - £89,414). This would only be payable if Age UK Hertfordshire had no contributing members in the pension scheme. The charity has no plans to withdraw from the scheme.

As part of the triennial valuation the Technical Provisions (or scheme funding) basis is used for calculating the Plan’s ongoing funding position and establishes whether the Plan is in surplus or deficit, and if a recovery plan is needed.

At the 2014 triennial valuation a £176.5m deficit was identified (82% funding level) and employers began making deficit payment contributions under a recovery plan due to end on 30 September 2025.

At the 2017 valuation, the deficit reduced to £131.5m (86% funding level). As a result a new recovery plan was implemented by the TPT trustee, following consultation with the TPT Employer Committee and advice from the TPT Plan Actuary. Revised deficit contributions increasing at 3% per annum, were payable from 1 April 2019, although the length of the recovery plan was reduced by eight months to 31 January 2025.

As the 30 September 2020 valuation the deficit has decreased to £33.3m (96% funding level). The deficit figure no longer includes the capitalised value of expenses payments due to the Plan, as these will be accounted for separately in future. This has the result of reducing the deficit from £57.6m to £33.3m.

38 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

9 Staff and Volunteers

As a result of the reduction in the deficit the TPT Trustees, following advice from the actuary, aim to implement a new recovery plan. Under the new plan, the total deficit contributions due from employers will reduce from 1 April 2022, no annual increase will be applied to these contributions and the recovery plan will remain unchanged, with an end date of 31 January 2025.

Age UK Hertfordshire's deficit contributions started from 1 April 2013 at £2,699 per annum with a 3% per annum increase. Under the 2017 valuation recovery plan, Age UK Hertfordshire paid annual deficit contributions of £4,353 from 1 April 2019 and these contributions were increased by 3% per annum on each 1 April thereafter. In 2020-21 Age UK Hertfordshire paid deficit contributions of £4,484 and the deficit contributions in 2021-22 are expected to be £4,618. From 1 April 2022, following the September 2020 triennial valuation, overall annual deficit contributions are set to decrease.

The next triennial valuation is scheduled for 30 September 2023.

Contributions of £31,334 (2020 - £35,472) were outstanding at the balance sheet date. No amounts were prepaid at the balance sheet date (2020 - £nil).

Volunteers

Additionally the work of Age UK Hertfordshire would not be possible without the significant contribution of volunteers, who provide support across all projects and all geographical areas.

10 Tangible fixed assets

Leasehold improvements Fixtures, fittings and equipment £ £ Cost At 1 April 2020 13,465 38,172 At 31 March 2021 13,465 38,172 Depreciation and impairment At 1 April 2020 4,678 29,479 Depreciation charged in the year 1,818 3,752 At 31 March 2021 6,496 33,231 Carrying amount At 31 March 2021 6,969 4,941 At 31 March 2020 8,787 8,693	Total £ 51,637
	51,637
	34,157 5,570
	39,727
	11,910
	17,480

39 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

11 Investment in UK subsidiary

CHARITY Age UK Hertfordshire Trading Limited £ Cost and net book value At 1 April 2020 and at 31 March 2021 1

The results and capital and reserves of Age UK Hertfordshire Trading Limited are consolidated in these accounts.

The charity owns the single issued ordinary share in Age UK Hertfordshire Trading Limited (company registration number 02911828), which is incorporated in England and Wales (registered office address: 1 Silver Court, Watchmead, Welwyn Garden City, Hertfordshire, AL7 1LT). The subsidiary is a trading company which transfers its taxable profit to the charity under a Deed of Covenant dated 25 March 2020. A summary of the trading results is shown below. The principal activity of the company during the year was receiving commission based payments on clothes recycling services.

Turnover Administrative expenses Operating profit Gift Aid paid to Age UK Hertfordshire Profit/(loss) for the year Retained profit brought forward Retained profit carried forward The assets and liabilities of the subsidiary were: Current assets Creditors: amounts falling due within one year Aggregate share capital and reserves	2021 £ 2,641 (4,306) (1,665) - (1,665) 7,937 6,272 10,454 (4,181) 6,273 6,273	2020 £ 11,715 (2,747) 8,968 (8,968) - 7,937 7,937 19,612 (11,674) 7,938 7,938

40 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

12 Debtors Amounts falling due within one year: Trade debtors Amounts due from subsidiary undertakings Prepayments and accrued income 13 Creditors: amounts falling due within one year Notes Other taxation and social security Deferred income 14 Trade creditors Other creditors Accruals 14 Deferred income Other deferred income	2021 Group £ 145,362 - 128,508 273,870 2021 Group £ 33,521 98,304 95,708 156,689 13,284 397,506 2021 Group £ 98,304 98,304	2021 Charity £ 145,362 - 128,508 273,870 2021 Charity £ 33,521 98,304 92,517 156,689 12,294 393,325 2021 Charity £ 98,304 98,304	2020 Group £ 153,518 - 91,987 245,505 2020 Group £ 34,919 160,409 38,328 171,850 29,699 435,205 2020 Group £ 160,409 160,409	2020 Charity £ 150,942 8,968 91,986
				251,896
				2020 Charity £ 34,919 160,409 36,522 171,850 28,799
				432,499
				2020 Charity £ 160,409
				160,409

41 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

14 Deferred income

The movement in deferred income in the year was as follows:

Balance at 1 April Amount released to income from charitable activities Amount released to income from legacies and other trading activities Amount deferred in year from income from charitable activities Amount deferred in year from income from other trading activities Balance at 31 March	2021 Group £ 160,409 (158,293) (2,116) 96,170 2,134 98,304	2021 Charity £ 160,409 (158,293) (2,116) 96,170 2,134 98,304	2020 Group £ 175,674 (172,419) (3,255) 158,293 2,116 160,409	2020 Charity £ 175,674 (172,419) (3,255) 158,293 2,116 160,409

Deferred income relates to amounts received prior to the year end and in accordance with accounting standards and Charities SORP are deferred for recognition in a future period.

15 Restricted funds

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

GROUP - CURRENT YEAR

Balance at 1 April 2020 £ Charitable Services 161,560 161,560 CHARITY - CURRENT YEAR Balance at 1 April 2020 £ Charitable Services 161,560 161,560	Movement in funds Incoming resources Resources expended £ £ 1,398,281 (1,441,481) 1,398,281 (1,441,481) Movement in funds Incoming resources Resources expended £ £ 1,398,281 (1,441,481) 1,398,281 (1,441,481)	Transfers Balance at 31 March 2021 £ £ 50,741 169,101 50,741 169,101 Transfers Balance at 31 March 2021 £ £ 50,741 169,101 50,741 169,101

Transfers from unrestricted funds to restricted funds have been made during the year in relation to support and other costs not covered from restricted funds brought forward or income received in the year.

42 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

15 Restricted funds

GROUP - PRIOR YEAR

Balance at 1 April 2019 £ Charitable Services 209,235 209,235 CHARITY - PRIOR YEAR Balance at 1 April 2019 £ Charitable Services 209,235 209,235	Movement in funds Incoming resources Resources expended £ £ 877,974 (1,035,029) 877,974 (1,035,029) Movement in funds Incoming resources Resources expended £ £ 877,974 (1,035,029) 877,974 (1,035,029)	Transfers Balance at 31 March 2020 £ £ 109,380 161,560 109,380 161,560 Transfers Balance at 31 March 2020 £ £ 109,380 161,560 109,380 161,560

16 Unrestricted funds

The income funds of the charity include the following designated funds which are included within unrestricted funds but have been set aside by the trustees for specific purposes (as detailed in the Trustee Annual Report):

GROUP - CURRENT YEAR

Balance at 1 April 2020 £ Designated Funds IT & Communications 100,000 Project Development 502,644 Staffing Commitments 225,038 Building Dilapidations 45,000 Working Capital 118,137 990,819 General Unrestricted Funds 433,196 Total unrestricted funds 1,424,015	Movement in funds Incoming resources Resources expended £ £ - - - (203,051) - - - - - - - (203,051) 2,071,959 (1,868,348) 2,071,959 (2,071,399)	Transfers Balance at 31 March 2021 £ £ (50,000) 50,000 48,961 348,554 (8,674) 216,364 5,000 50,000 (25,190) 92,947 (29,903) 757,865 (20,838) 615,969 (50,741) 1,373,834

43 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16 Unrestricted funds

GROUP - PRIOR YEAR

Balance at 1 April 2019 £ Designated Funds IT & Communications 75,000 Project Development 525,468 Staffing Commitments 234,042 Building Dilapidations 51,000 Working Capital 113,343 998,853 General Unrestricted Funds 339,935 Total unrestricted funds 1,338,788 CHARITY - CURRENT YEAR Balance at 1 April 2020 £ Designated Funds IT & Communications 100,000 Project Development 502,644 Staffing Commitments 225,038 Building Dilapidations 45,000 Working Capital 118,137 990,819 General Unrestricted Funds 425,257 Total unrestricted funds 1,416,076	Movement in funds Incoming resources Resources expended £ £ - - - (156,724) - - - - - - - (156,724) 2,782,544 (2,431,213) 2,782,544 (2,587,937) Movement in funds Incoming resources Resources expended £ £ - - - (203,051) - - - - - - - (203,051) 2,069,318 (1,864,040) 2,069,318 (2,067,091)	Transfers Balance at 31 March 2020 £ £ 25,000 100,000 133,900 502,644 (9,004) 225,038 (6,000) 45,000 4,794 118,137 148,690 990,819 (258,070) 433,196 (109,380) 1,424,015 Transfers Balance at 31 March 2021 £ £ (50,000) 50,000 48,961 348,554 (8,674) 216,364 5,000 50,000 (25,190) 92,947 (29,903) 757,865 (20,838) 609,697 (50,741) 1,367,562	Transfers Balance at 31 March 2020 £ £ 25,000 100,000 133,900 502,644 (9,004) 225,038 (6,000) 45,000 4,794 118,137 148,690 990,819 (258,070) 433,196 (109,380) 1,424,015 Transfers Balance at 31 March 2021 £ £ (50,000) 50,000 48,961 348,554 (8,674) 216,364 5,000 50,000 (25,190) 92,947 (29,903) 757,865 (20,838) 609,697 (50,741) 1,367,562
			757,865 609,697
			1,367,562

44 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16 Unrestricted funds

CHARITY - PRIOR YEAR

Balance at 1
April 2019
£
Designated Funds
IT & Communications
75,000
Project Development
525,468
Staffing Commitments
234,042
Building Dilapidations
51,000
Working Capital
113,343
998,853
General Unrestricted Funds
331,998
Total unrestricted funds
1,330,851
17
Analysis of net assets between funds
GROUP - CURRENT YEAR
Fund balances at 31 March 2021 are represented by:
Tangible assets
Current assets/(liabilities)
CHARITY - CURRENT YEAR
Fund balances at 31 March 2021 are represented by:
Tangible assets
Investments
Current assets/(liabilities)

Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at 31
March 2020
£
£
£
£
-
-
25,000
100,000
-
(156,724)
133,900
502,644
-
-
(9,004)
225,038
-
-
(6,000)
45,000
-
-
4,794
118,137
-
(156,724)
148,690
990,819
2,770,829
(2,419,500)
(258,070)
425,257
2,770,829
(2,576,224)
(109,380)
1,416,076
Unrestricted
funds
Restricted
funds
Total
£
£
£
11,910
-
11,910
1,361,924
169,101
1,531,025
1,373,834
169,101
1,542,935
Unrestricted
funds
Restricted
funds
Total
£
£
£
11,910
-
11,910
1
-
1
1,355,651
169,101
1,524,752
1,367,562
169,101
1,536,663

45 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

17 Analysis of net assets between funds

GROUP - PRIOR YEAR Unrestricted funds Restricted funds £ £ Fund balances at 31 March 2020 are represented by: Tangible assets 17,480 - Current assets/(liabilities) 1,406,535 161,560 1,424,015 161,560 CHARITY - PRIOR YEAR Unrestricted funds Restricted funds £ £ Fund balances at 31 March 2020 are represented by: Tangible assets 17,480 - Investments 1 - Current assets/(liabilities) 1,398,595 161,560 1,416,076 161,560	Total £ 17,480 1,568,095
	1,585,575
	Total £ 17,480 1 1,560,155
	1,577,636

18 Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year Between two and five years	2021 £ 66,906 200,030 266,936	2020 £ 66,257 266,936
		333,193

46 -

AGE UK HERTFORDSHIRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

19 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

	2021	2020
	£	£
Aggregate compensation	205,870	166,008

No trustee received any remuneration or benefits from the charity or its subsidiary (2020 - none). Two trustees received reimbursement for expenses of £129 (2020 - Three trustees received reimbursement for travel expenses of £782).

20 Subsidiaries

Details of the group's subsidiaries at 31 March 2021 are as follows:

	Name of undertaking Registered	Class of		% Held	% Held
	office	shares held		Direct	Indirect
	Age UK Hertfordshire England & Wales Trading Company	Ordinary		100.00
	Trading Limited
21	Analysis of changes in net funds
	The group had no debt during the year.
22	Cash generated from operations		2021		2020
			£		£
	(Deficit)/surplus for the year		(42,640)		37,552
	Adjustments for:
	Investment income recognised in statement of financial activities		(2,781)		(8,513)
	Depreciation and impairment of tangible fixed assets		5,570		7,195
	Movements in working capital:
	(Increase)/decrease in debtors		(28,365)		49,652
	(Decrease) in creditors		(37,699)		(75,786)
	Cash (absorbed by)/generated from operations	(105,915)			10,100

47 -

AGE UK HERTFORDSHIRE

AGE UK HERTFORDSHIRE

LEGAL AND ADMINISTRATIVE INFORMATION

AGE UK HERTFORDSHIRE

CONTENTS

Trustees Annual Report (including Directors Report)

Status, Principal Activity and Public Benefit

Strategic Report (and Directors’ Report)

Objectives, Strategy and Future Plans

The mission of Age UK Hertfordshire is quite simply:

We will deliver this by focussing on three client-facing strategic objectives:

And also through our five internal operational strategies:

2020-21 Services to Meet Strategic Aims

Objectives, Strategy and Future Plans (continued)

Objectives, Strategy and Future Plans (continued)

Plans for Future Periods

Income Generation and Performance

Income

Figure 2: Income Sources

Income Generation and Performance (continued)

Performance of Charitable Services

Figure 3: Support Provided

Volunteers

Active Ageing

Income Generation and Performance (continued)

Performance of Charitable Services

Befriending

Emotional Support

Information and Advice

Our Partnership Work

Health Related Services - Hospital and Community Navigation Service

Income Generation and Performance (continued)

Performance of Charitable Services

Our Partnership Work

Health Related Services - Nutrition and Dietetics Support

Hertswise Dementia Services

Income Generation

Fundraising

Financial Review

Financial Review (continued)

Reserves

Restricted Funds

Financial Review (continued)

Reserves

Unrestricted Designated Funds

Financial Review (continued)

Reserves

Unrestricted General Funds

Total Reserve Levels

Trading Subsidiary

Financial Review (continued)

Principal Funding Sources

Pension Liabilities

Investment Policy

Financial Review (continued)

Investment Policy

Risk Management

Impact of COVID-19

Impact of COVID-19

Going Concern

Legal and Administrative Information

Board of Trustees

Legal and Administrative Information (Continued)

Board of Trustees

Decision Making

Policies and Procedures

External Relationships

Management Structure

Legal and Administrative Information (continued)

Senior Management Team

Senior Management Team Remuneration

Registered Office, Principal Address and Advisers

Bankers

Appreciation and Board of Trustees Approval

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