**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** 

## **CONTENTS** 

||**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. 

1 



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. 

2 



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**<br>**Work**|**Services**|**How we meet our aims**|
|---|---|---|
|**Active**<br>**Ageing**|Eighteen 10 to 3 Clubs|We normally run a range of clubs/activities to help older people<br>feel connected with their community, stay active and reduce<br>social isolation by providing social activities, physical exercise and<br>nutritious meals.<br>10 to 3 clubs have been closed during the entire CV-19 pandemic<br>due to the sheltered housing schemes following safe working<br>protocols, and so support has been provided through online<br>groups, welfare calls and activity packs to keep people active and<br>engaged.<br>Chalmers Court and Clitheroe have both reopened at times<br>during the pandemic but with reduced capacity to ensure safety<br>of clients, staff and volunteers.|
||<br>including 3 Asian Elder||
||<br>Day Centres||
||Day Care Centre for the||
||physically and mentally||
||<br>frail (Chalmers Court)||
||Clitheroe Health &||
||Wellbeing Centre||
||||
|**Befriending**|Visiting Scheme|We normally provide regular face-to-face and telephone social<br>contact, to help combat loneliness and social isolation. During<br>2020-21 volunteers were unable to provide face to face visits, and<br>so support had to be provided via phone calls or online<br>befriending sessions.|
||||
||Telephone Clubs||
||||
|**Emotional**<br>**Support**|InTouch|A service offering a higher level of emotional support over the<br>phone.|
||||
|**Information**<br>**and Advice**|Information and Advice|A telephone and community support service offering Information<br>& Advice to older people. Including advice on benefit<br>entitlements, LPAs, energy costs and Blue Badges.<br>Later Life Goals focuses on the above, but visiting older people in<br>their homes focusing on reducing loneliness and isolation.|
||||
||||
||||
||||
||Later Life Goals||
||||
|**Dementia**<br>**Services**|Hertswise|Working in partnership with eight other voluntary sector<br>organisations to provide support for people with Dementia, Mild<br>Cognitive Impairment and memory loss, along with their carers<br>and families.|
|**Health**<br>**Related**<br>**Services**|Hospital & Community<br>Navigation<br>Service<br>(HCNS)<br>Link Workers (HCNS)<br>Nutrition & Dietetics<br>Service|Working in partnership with six other voluntary sector<br>organisations to provide support services for those discharged<br>from hospital, those identified by their GPs and others as being<br>vulnerable people in need of support to achieve independence<br>and well-being.<br>Link Workers work from GP surgeries as part of the Social<br>Prescribing agenda. They work closely with staff from HCNS to link<br>people to the ‘social prescriptions’<br>Working with the Hertfordshire Community Trust and working<br>with the Community Nutrition and Dietetics team supporting<br>people who have social causes for malnutrition ensuring that they<br>get the support they need to stay independent in the community.|
|**Income**<br>**Generation**|Help in The Home|<br>A cleaning and domestic tasks service which enables people to<br>remain independent in their homes by supporting them with daily<br>activities.|



3 



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. 

4 



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). 

5 



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**|
|<br>Number of older people supported|15,152|
|<br>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|
|<br>Number of Activity packs given to older people to stay active|5,740|
|<br>Number of newsletters sent to isolated older people|3,725|
|<br>Number of prescriptions delivered to older people in need|1,238|
|<br>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|
|<br>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. 

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** 

## **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. 

7 



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. 

8 



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

## **Financial Review** 

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

9 



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. 

10 



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. 

11 



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. 

12 



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<br>Commissioning Groups (CCGs)<br>/ 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)”. 

13 



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. 

14 



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. 

15 



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**<br>**2020**|**Honorary role from November 2020**|
|---|---|---|---|---|
||||||
||John Ellis||Acting Chair<br>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. 

16 



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 

17 



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

- 23 - 



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



- 24 - 



## **AGE UK HERTFORDSHIRE** 

## **CONSOLIDATED BALANCE SHEET** 

## **AS AT 31 MARCH 2021** 

|**Notes**<br>**Fixed assets**<br>Tangible assets<br>**10**<br>**Current assets**<br>Debtors<br>**12**<br>Cash at bank and in hand<br>**Creditors: amounts falling due within**<br>**one year**<br>**13**<br>Net current assets<br>**Total assets less current liabilities**<br>**Income funds**<br>Restricted funds<br>**15**<br>Unrestricted funds<br>Designated funds<br>**16**<br>General unrestricted funds<br>**16**|**2021**<br>**£**<br>273,870<br>1,654,661<br>1,928,531<br>(397,506)<br>757,865<br>615,969|**£**<br>11,910<br>1,531,025<br>1,542,935<br>169,101<br>1,373,834<br>1,542,935|**2020**<br>**£**<br>245,505<br>1,757,795<br>2,003,300<br>(435,205)<br>990,819<br>433,196|**£**<br>17,480<br>1,568,095|
|---|---|---|---|---|
|||||1,585,575|
|||||161,560<br>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**<br>**Fixed assets**<br>Tangible assets<br>**10**<br>Investments<br>**11**<br>**Current assets**<br>Debtors<br>**12**<br>Cash at bank and in hand<br>**Creditors: amounts falling due within**<br>**one year**<br>**13**<br>Net current assets<br>**Total assets less current liabilities**<br>**Income funds**<br>Restricted funds<br>**15**<br>Unrestricted funds<br>Designated funds<br>**16**<br>General unrestricted funds<br>**16**|**2021**<br>**£**<br>273,870<br>1,644,207<br>1,918,077<br>(393,325)<br>757,865<br>609,697|**£**<br>11,910<br>1<br>11,911<br>1,524,752<br>1,536,663<br>169,101<br>1,367,562<br>1,536,663|**2020**<br>**£**<br>251,896<br>1,740,758<br>1,992,654<br>(432,499)<br>990,819<br>425,257|**£**<br>17,480<br>1|
|---|---|---|---|---|
|||||17,481<br>1,560,155|
|||||1,577,636|
|||||161,560<br>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**<br>**Cash flows from operating activities**<br>Cash (absorbed by)/generated from<br>operations<br>**22**<br>**Investing activities**<br>Purchase of tangible fixed assets<br>Interest received<br>**Net cash generated from/(used in)**<br>**investing activities**<br>**Net cash used in financing activities**<br>**Net (decrease)/increase in cash and cash**<br>**equivalents**<br>Cash and cash equivalents at beginning of year<br>**Cash and cash equivalents at end of year**<br>**Relating to:**<br>Cash at bank and in hand|**2021**<br>**£**<br>-<br>2,781|**£**<br>(105,915)<br>2,781<br>-<br>(103,134)<br>1,757,795<br>1,654,661<br>1,654,661|**2020**<br>**£**<br>(11,366)<br>8,513|**£**<br>10,100<br>(2,853)<br>-<br>7,247<br>1,750,548<br>1,757,795<br>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. 

- 27 - 



## **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. 

- 28 - 



## **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. 

- 29 - 



## **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. 

- 30 - 



## **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|



- 31 - 



## **AGE UK HERTFORDSHIRE** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2021** 

## **3 Charitable activities** 

|Fee and activity income<br>Service level agreements<br>Performance related grants<br>Analysis by fund<br>Unrestricted funds<br>Restricted funds<br>**For the year ended 31 March 2020**<br>Unrestricted funds<br>Restricted funds|**Fee and**<br>**activity**<br>**income**<br>**Service level**<br>**agreements**<br>**Performance**<br>**related grants**<br>**£**<br>**£**<br>**£**<br>905,180<br>-<br>-<br>-<br>826,685<br>-<br>-<br>-<br>1,581,629<br>905,180<br>826,685<br>1,581,629<br>905,180<br>-<br>1,010,033<br>-<br>826,685<br>571,596<br>905,180<br>826,685<br>1,581,629<br>1,703,528<br>-<br>962,886<br>-<br>660,772<br>217,202<br>1,703,528<br>660,772<br>1,180,088|**Total**<br>**2021**<br>**£**<br>905,180<br>826,685<br>1,581,629<br>3,313,494<br>1,915,213<br>1,398,281<br>3,313,494|**Total**<br>**2020** <br>**£** <br>1,703,528<br>660,772<br>1,180,088|
|---|---|---|---|
||||3,544,388|
||||2,666,414<br>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**<br>**Restricted**<br>**funds**<br>**funds**<br>**£**<br>**£**<br>Turnover from Trading Company's operations<br>2,641<br>-<br>Fundraising income<br>203<br>-<br>Other<br>8,318<br>-<br>Other trading activities<br>11,162<br>-<br>**For the year ended 31 March 2020**<br>19,399<br>-|**Total**<br>**2021**<br>**£**<br>2,641<br>203<br>8,318|**Total**<br>**2020**<br>**£**<br>11,715<br>1,102<br>6,582|
|---|---|---|
||11,162|19,399|
|||19,399|



- 32 - 



## **AGE UK HERTFORDSHIRE** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2021** 

## **5 Investments** 

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



- 33 - 



## **AGE UK HERTFORDSHIRE** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2021** 

- **7 Charitable activities** 

|Staff costs<br>Other direct costs<br>Share of support costs (see note 8)<br>**Analysis by fund**<br>Unrestricted funds<br>Restricted funds|**Active**<br>**Ageing**<br>**Information**<br>**and Advice**<br>**£**<br>**£**<br>297,218<br>79,044<br>34,485<br>5,467<br>331,703<br>84,511<br>140,147<br>35,758<br>471,850<br>120,269<br>341,982<br>20,559<br>129,868<br>99,710<br>471,850<br>120,269|**Paid-For**<br>**Services**<br>**Dementia**<br>**Services**<br>**£**<br>**£**<br>928,897<br>171,397<br>142,187<br>517,378<br>1,071,084<br>688,775<br>131,286<br>92,842<br>1,202,370<br>781,617<br>987,883<br>-<br>214,487<br>781,617<br>1,202,370<br>781,617|**Health**<br>**Related**<br>**Services**<br>**Visiting**<br>**Scheme &**<br>**InTouch**<br>**£**<br>**£**<br>468,416<br>142,388<br>31,029<br>6,899<br>499,445<br>149,287<br>160,987<br>64,167<br>660,432<br>213,454<br>444,633<br>213,454<br>215,799<br>-<br>660,432<br>213,454|**Total**<br>**2021**<br>**£**<br>2,087,360<br>737,445<br>2,824,805<br>625,187<br>3,449,992<br>2,008,511<br>1,441,481<br>3,449,992|**Total**<br>**2020**<br>**£**<br>2,203,985<br>710,949|
|---|---|---|---|---|---|
||||||2,914,934<br>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<br>Other direct costs<br>Share of support costs (see note 8)<br>**Analysis by fund**<br>Unrestricted funds<br>Restricted funds|**Active**<br>**Ageing**<br>**Information**<br>**and Advice**<br>**£**<br>**£**<br>300,645<br>92,241<br>155,033<br>10,611<br>455,678<br>102,852<br>161,226<br>34,086<br>616,904<br>136,938<br>481,487<br>81,138<br>135,417<br>55,800<br>616,904<br>136,938|**Paid-For**<br>**Services**<br>**Dementia**<br>**Services**<br>**£**<br>**£**<br>1,103,283<br>161,071<br>66,255<br>434,159<br>1,169,538<br>595,230<br>150,320<br>72,377<br>1,319,858<br>667,607<br>1,303,103<br>-<br>16,755<br>667,607<br>1,319,858<br>667,607|**Health**<br>**Related**<br>**Services**<br>**Visiting**<br>**Scheme &**<br>**InTouch**<br>**£**<br>**£**<br>413,470<br>133,275<br>28,388<br>16,503<br>441,858<br>149,778<br>175,658<br>71,583<br>617,516<br>221,361<br>458,066<br>221,361<br>159,450<br>-<br>617,516<br>221,361|**Total**<br>**2020**<br>**£**<br>2,203,985<br>710,949|
|---|---|---|---|---|
|||||2,914,934<br>665,250|
|||||3,580,184|
|||||2,545,155<br>1,035,029|
|||||3,580,184|



- 35 - 



## **AGE UK HERTFORDSHIRE** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2021** 

|**8**<br>**Support & governance costs**<br>SUPPORT COSTS<br>Staff costs<br>Training, recruitment & travel<br>Computer equipment<br>Postage, printing & telephone<br>Premises<br>Depreciation<br>Legal & professional<br>Other support costs<br>Allocated to governance costs<br>GOVERNANCE COSTS<br>Analysed between<br>Fundraising<br>Charitable activities|**2021**<br>**£**<br>412,982<br>2,179<br>48,802<br>34,979<br>90,235<br>5,570<br>11,195<br>17,675<br>(2,771)<br>16,869<br>637,715<br>12,528<br>625,187<br>637,715|**2020**<br>**£**<br>418,869<br>9,604<br>42,477<br>43,842<br>117,649<br>7,241<br>10,658<br>5,200<br>(6,114)<br>26,391<br>675,817<br>10,567<br>665,250<br>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<br>Visiting Scheme & In Touch<br>Information & Advice<br>Hertswise<br>Health Related Services<br>Help in the Homes<br>Fundraising<br>Management and administration<br>Governance<br>**Employment costs**<br>Wages and salaries<br>Social security costs<br>Pension costs|**GROUP**<br>**Average headcount**<br>**2021**<br>**2020**<br>**Number**<br>**Number**<br>37<br>39<br>9<br>8<br>3<br>3<br>7<br>7<br>19<br>19<br>187<br>331<br>1<br>1<br>13<br>12<br>1<br>1<br>277<br>421<br>**2021**<br>**2021**<br>**Group**<br>**Charity**<br>**£**<br>**£**<br>2,344,331<br>2,344,331<br>121,521<br>121,521<br>78,315<br>78,315<br>2,544,167<br>2,544,167|**GROUP**<br>**Full time equivalent**<br>**employee numbers**<br>**2021**<br>**2020**<br>**Number**<br>**Number**<br>14<br>14<br>6<br>8<br>3<br>3<br>6<br>5<br>16<br>13<br>49<br>61<br>1<br>1<br>11<br>8<br>-<br>1<br>106<br>114<br>**2020**<br>**2020**<br>**Group**<br>**Charity**<br>**£**<br>**£**<br>2,460,895<br>2,460,895<br>116,685<br>116,685<br>72,429<br>72,429<br>2,650,009<br>2,650,009||
||||114|
||||**2020**<br>**Charity**<br>**£**<br>2,460,895<br>116,685<br>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<br>Total number of employees|**2021**<br>**Number**<br>1<br>1|**2020**<br>**Number**<br>-|
|---|---|---|
|||-|



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**<br>**improvements**<br>**Fixtures,**<br>**fittings and**<br>**equipment**<br>**£**<br>**£**<br>**Cost**<br>At 1 April 2020<br>13,465<br>38,172<br>At 31 March 2021<br>13,465<br>38,172<br>**Depreciation and impairment**<br>At 1 April 2020<br>4,678<br>29,479<br>Depreciation charged in the year<br>1,818<br>3,752<br>At 31 March 2021<br>6,496<br>33,231<br>**Carrying amount**<br>At 31 March 2021<br>6,969<br>4,941<br>At 31 March 2020<br>8,787<br>8,693|**Total**<br>**£**<br>51,637|
|---|---|
||51,637|
||34,157<br>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<br>Administrative expenses<br>**Operating profit**<br>Gift Aid paid to Age UK Hertfordshire<br>**Profit/(loss) for the year**<br>Retained profit brought forward<br>**Retained profit carried forward**<br>The assets and liabilities of the subsidiary were:<br>Current assets<br>Creditors: amounts falling due within one year<br>Aggregate share capital and reserves|**2021**<br>**£**<br>2,641<br>(4,306)<br>(1,665)<br>-<br>(1,665)<br>7,937<br>6,272<br>10,454<br>(4,181)<br>6,273<br>6,273|**2020**<br>**£**<br>11,715<br>(2,747)<br>8,968<br>(8,968)<br>-<br>7,937<br>7,937<br>19,612<br>(11,674)<br>7,938<br>7,938|
|---|---|---|



- 40 - 



## **AGE UK HERTFORDSHIRE** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 MARCH 2021** 

|**12**<br>**Debtors**<br>**Amounts falling due within one year:**<br>Trade debtors<br>Amounts due from subsidiary undertakings<br>Prepayments and accrued income<br>**13**<br>**Creditors: amounts falling due within one year**<br>**Notes**<br>Other taxation and social<br>security<br>Deferred income<br>**14**<br>Trade creditors<br>Other creditors<br>Accruals<br>**14**<br>**Deferred income**<br>Other deferred income|**2021**<br>**Group**<br>**£**<br>145,362<br>-<br>128,508<br>273,870<br>**2021**<br>**Group**<br>**£**<br>33,521<br>98,304<br>95,708<br>156,689<br>13,284<br>397,506<br>**2021**<br>**Group**<br>**£**<br>98,304<br>98,304|**2021**<br>**Charity**<br>**£**<br>145,362<br>-<br>128,508<br>273,870<br>**2021**<br>**Charity**<br>**£**<br>33,521<br>98,304<br>92,517<br>156,689<br>12,294<br>393,325<br>**2021**<br>**Charity**<br>**£**<br>98,304<br>98,304|**2020**<br>**Group**<br>**£**<br>153,518<br>-<br>91,987<br>245,505<br>**2020**<br>**Group**<br>**£**<br>34,919<br>160,409<br>38,328<br>171,850<br>29,699<br>435,205<br>**2020**<br>**Group**<br>**£**<br>160,409<br>160,409|**2020**<br>**Charity**<br>**£**<br>150,942<br>8,968<br>91,986|
|---|---|---|---|---|
|||||251,896|
|||||**2020**<br>**Charity**<br>**£**<br>34,919<br>160,409<br>36,522<br>171,850<br>28,799|
|||||432,499|
|||||**2020**<br>**Charity**<br>**£**<br>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<br>Amount released to income from charitable<br>activities<br>Amount released to income from legacies and<br>other trading activities<br>Amount deferred in year from income from<br>charitable activities<br>Amount deferred in year from income from<br>other trading activities<br>Balance at 31 March|**2021**<br>**Group**<br>**£**<br>160,409<br>(158,293)<br>(2,116)<br>96,170<br>2,134<br>98,304|**2021**<br>**Charity**<br>**£**<br>160,409<br>(158,293)<br>(2,116)<br>96,170<br>2,134<br>98,304|**2020**<br>**Group**<br>**£**<br>175,674<br>(172,419)<br>(3,255)<br>158,293<br>2,116<br>160,409|**2020**<br>**Charity**<br>**£**<br>175,674<br>(172,419)<br>(3,255)<br>158,293<br>2,116<br>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**<br>**April 2020**<br>**£**<br>Charitable Services<br>161,560<br>161,560<br>**CHARITY - CURRENT YEAR**<br>**Balance at 1**<br>**April 2020**<br>**£**<br>Charitable Services<br>161,560<br>161,560|**Movement in funds**<br>**Incoming**<br>**resources**<br>**Resources**<br>**expended**<br>**£**<br>**£**<br>1,398,281<br>(1,441,481)<br>1,398,281<br>(1,441,481)<br>**Movement in funds**<br>**Incoming**<br>**resources**<br>**Resources**<br>**expended**<br>**£**<br>**£**<br>1,398,281<br>(1,441,481)<br>1,398,281<br>(1,441,481)|**Transfers**<br>**Balance at 31**<br>**March 2021**<br>**£**<br>**£**<br>50,741<br>169,101<br>50,741<br>169,101<br>**Transfers**<br>**Balance at 31**<br>**March 2021**<br>**£**<br>**£**<br>50,741<br>169,101<br>50,741<br>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**<br>**April 2019**<br>**£**<br>Charitable Services<br>209,235<br>209,235<br>**CHARITY - PRIOR YEAR**<br>**Balance at 1**<br>**April 2019**<br>**£**<br>Charitable Services<br>209,235<br>209,235|**Movement in funds**<br>**Incoming**<br>**resources**<br>**Resources**<br>**expended**<br>**£**<br>**£**<br>877,974<br>(1,035,029)<br>877,974<br>(1,035,029)<br>**Movement in funds**<br>**Incoming**<br>**resources**<br>**Resources**<br>**expended**<br>**£**<br>**£**<br>877,974<br>(1,035,029)<br>877,974<br>(1,035,029)|**Transfers**<br>**Balance at 31**<br>**March 2020**<br>**£**<br>**£**<br>109,380<br>161,560<br>109,380<br>161,560<br>**Transfers**<br>**Balance at 31**<br>**March 2020**<br>**£**<br>**£**<br>109,380<br>161,560<br>109,380<br>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**<br>**April 2020**<br> <br><br>**£**<br>**Designated Funds**<br>IT & Communications<br>100,000<br>Project Development<br>502,644<br>Staffing Commitments<br>225,038<br>Building Dilapidations<br>45,000<br>Working Capital<br>118,137<br>990,819<br>**General Unrestricted Funds**<br>433,196<br>**Total unrestricted funds**<br>1,424,015|**Movement in funds**<br>**Incoming**<br>**resources**<br>**Resources**<br>**expended**<br>**£**<br>**£**<br>-<br>-<br>-<br>(203,051)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(203,051)<br>2,071,959<br>(1,868,348)<br>2,071,959<br>(2,071,399)|**Transfers**<br>**Balance at 31**<br>**March 2021**<br>**£**<br>**£**<br>(50,000)<br>50,000<br>48,961<br>348,554<br>(8,674)<br>216,364<br>5,000<br>50,000<br>(25,190)<br>92,947<br>(29,903)<br>757,865<br>(20,838)<br>615,969<br>(50,741)<br>1,373,834|
|---|---|---|



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



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## **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**<br>**April 2019**<br>**£**<br>**Designated Funds**<br>IT & Communications<br>75,000<br>Project Development<br>525,468<br>Staffing Commitments<br>234,042<br>Building Dilapidations<br>51,000<br>Working Capital<br>113,343<br>998,853<br>**General Unrestricted Funds**<br>331,998<br>**Total unrestricted funds**<br>1,330,851<br>**17**<br>**Analysis of net assets between funds**<br>**GROUP - CURRENT YEAR**<br>Fund balances at 31 March 2021 are represented by:<br>Tangible assets<br>Current assets/(liabilities)<br>**CHARITY - CURRENT YEAR**<br>Fund balances at 31 March 2021 are represented by:<br>Tangible assets<br>Investments<br>Current assets/(liabilities)|**Movement in funds**<br>**Incoming**<br>**resources**<br>**Resources**<br>**expended**<br>**Transfers**<br>**Balance at 31**<br>**March 2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>25,000<br>100,000<br>-<br>(156,724)<br>133,900<br>502,644<br>-<br>-<br>(9,004)<br>225,038<br>-<br>-<br>(6,000)<br>45,000<br>-<br>-<br>4,794<br>118,137<br>-<br>(156,724)<br>148,690<br>990,819<br>2,770,829<br>(2,419,500)<br>(258,070)<br>425,257<br>2,770,829<br>(2,576,224)<br>(109,380)<br>1,416,076<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**£**<br>**£**<br>**£**<br>11,910<br>-<br>11,910<br>1,361,924<br>169,101<br>1,531,025<br>1,373,834<br>169,101<br>1,542,935<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total**<br>**£**<br>**£**<br>**£**<br>11,910<br>-<br>11,910<br>1<br>-<br>1<br>1,355,651<br>169,101<br>1,524,752<br>1,367,562<br>169,101<br>1,536,663|
|---|---|



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## **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**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**£**<br>**£**<br>Fund balances at 31 March 2020 are represented by:<br>Tangible assets<br>17,480<br>-<br>Current assets/(liabilities)<br>1,406,535<br>161,560<br>1,424,015<br>161,560<br>**CHARITY - PRIOR YEAR**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**£**<br>**£**<br>Fund balances at 31 March 2020 are represented by:<br>Tangible assets<br>17,480<br>-<br>Investments<br>1<br>-<br>Current assets/(liabilities)<br>1,398,595<br>161,560<br>1,416,076<br>161,560|**Total**<br>**£**<br>17,480<br>1,568,095|
|---|---|
||1,585,575|
||**Total**<br>**£**<br>17,480<br>1<br>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<br>Between two and five years|**2021**<br>**£**<br>66,906<br>200,030<br>266,936|**2020**<br>**£**<br>66,257<br>266,936|
|---|---|---|
|||333,193|



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## **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**<br>**Registered**|**Nature of business**|**Class of**||**% Held**|**% Held**|
|---|---|---|---|---|---|---|
||**office**||**shares held**||**Direct**|**Indirect**|
||Age UK Hertfordshire<br>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|



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