Registered Charity No.. ompany Number.. 1122183 0646f263 LILIAN FAITHFULL CARE TRUSTEES, ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER2021
LILIAN FAITHFULL CARE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 CONTENTS Pa9e LEGAL AND ADMINISTRATIVE INFORMATION TRUSTEES, REPORT 2-10 STATEMENTOF TRUSTEES. RESPONSIBILITIES INDEPENDENT AUDITORS, REPORT 12-14 STATEMENT OF FINANCIAL ACTIVITIES 15 BALANCE SHEET 16 CASH FLOW STATEMENT 17 NOTES TO THE FINANCIAL STATEMENTS 18-31
LILIAN FAITHFULL CARE LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021 Charity number 1122183 Company registration number 06461263 Reglstered office Ground Floor West FestlV81 House Jessop Avenue Cheltenha Gloucestershiie GL50 3SH Principal office Ground Floor West Festival House Jessop Avenue Cheltenham Gloucestershi GL50 3SH Trustees J E Ballinger A J B Bishop F Court EFOX GHParry P Pratt G Pyatt M D Srnith Darne J Trotter J G Wood18y Secretary GHParry ChSef executlve M Hughes Audltors H3zlewoods LLP Windsor House B8yshill Road Cheltenh8m GLSO 3AT Bankers Barcl8y5 Bank P 128 High Str8et Cheltenharn GIOu$tr$hire GL50 1EL
LILIAN FAITHFULL GARE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trust885 of Lilian F811hfull Care present IheirAnnual Reportfof the year ended 31 DeMber2o2l in accordance with FRS 102. the Charities SORP IFRS 1021, the Cotnpanies Act 2006, the Charities Act 2011 and the Care Qjalily Commission. The Trustees are also approving the Strategic Report in their capacity as ¢ompany directors. The cornpany w8s incorporated in England and Wales and its Registration Number is 06461263 and ChaFily Number is 1122183. Our Airn and Public Benefit The Ttuslees of Lilian F8ilhfull C8re have the ullim81e responsibility for the wellbeing of the Charity. they also set th8 lone for the way Ihe Charity pSentS and ¢ondu¢ts ilsell. Our Charity's aim, as set out in the objects contained in the Charity's Memorandum and Articles ofAssocialion is'lo relieve elderly persons in nec6ssiIous circumstances upon terms appropriate to their means. and to prowde for aged persons in neèd IhÈreof. 8¢¢ommodation and any associated atnenitEs specifically designed or adapted lo meet the disabilities and feouiremenls ol such persons.. Under cornpany law th8 Dir8clors of th8 Company 8¢ting as Trustees should ensure that the Charity offers an appropriate range and Quality of care for older people in accordance with the Cotnpany's Mernorandum & Articles of Asso¢iation. The Trustees musl also ensure that resources are ulilised in accordance with any18gal obligations laid down by statute, HMRC, other Government ag8ncies, Cornpanies House and the Charity Comrnission. Ev8ryone who works lor the Charity has a responsibllity lo be mlndful of the great legacy Lilian Faithfull entrusted to us to steward for our SucsS0r$. Public Benefit Our public benefit Can be summarised as to provide a safe. friendly and supportive environment for older people at our affordable housing. a$$ted living, residential. nursing homes, and cornmunity facilitie5 acros5 the Counly of Glouceslershire. We provid8 significant support to thos8 funded by Social SeN1$ and a one ol the largest providets of social care in the County. We offer our families and Idents a 'Home for Life. and continuity of care irreswctive of their financial circumstances. Our public benefrt 15 to open the 5eNices of Lilian Faithfull Care to all, irr88pective of their means to pay, within the Ilmlts of our resources. We b8nchm8rk our fees lo private funder8 and ensure they are below the market rates", we calculated from research in December 2021, that our fees are approxirnately 10% below any other provider in Gloucestershire. Our staffing r8tlOS are higher. our Spend per head on food and nutrition far higher than industry averages our activity provision covers seven days a week. We also provide Ie onsite physiotherapy to all our residents. We provide more support to those funded by Social Services Ih8n any other prowder in Ch&lienham and a one ol the largest providers of soci31 care iri the County. We off8rourfamilKgS and residents a'Home lor Life. and continuity of care irrespective of their financial ¢ircumslances The Charity also provvJes free advice, support and guidance for farnilies through its community events. Day cent$, Meeting Centres and our Memory Awaren85s Support T88m IMASTI throughout Gloucestershire. Average occupancy lor the year across the five homes was 21512020..2181 for the full year, which demonslrales the demand for our seNices. 01 this number. Lilian Faithfull provided financial support to. on average, 81 residents 12020..73 r8sidenlsl and g day-car8 gu88ts12020..51 who had limited or no means to fund care themselves. Our servi5 were a150 in high demand from the NHS and Clinical Commissioning Groups during the pandemic and th8 Charity was instrumental in assisllng our local hospitals and families to reduce pressure on their Servi8. We adfflitted 47 resident5 during th8 y8ar al r8duced fee rat85 to ensure we helped people rehabilitate in our homes. Lilian Faithfull Care contlnued to work well with Ial agencies and other charitable organisations to broaden the breadth of care and support in the County.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER2021 Ensuring Our Work Delivers Our Aim We reviÈw our aims, objectives and acliviliÈs twice a ye8r. This review looks at what we 8chieved 8nd the outcomes of our work in the pVIOuS 12 months. The review looks at the success of each key a¢livity and the benefits they have brought to those groups of people we are set up lo help. The review also helps us ensure our aim. objectives and activities remained focused on our slated purposes. We have referred lo the guidance contained in the Charity Commission's general guidanco on public benefit when reviewing our aim and objectives and in p18tFning our future 8clivitie5. In parlicular, the Ttustees consider how planned activities will Contribute to the aims and objectives th8y have set. Strategic Objectives Our str8t8gic obje¢lives lantl outcom8sI for 2021 wer8.. Core Plans Ensure all our hom85 continue to be CQC compliant. Our homes We inspected under the Care Qu81ity Commissions infect ctrnlrol-monitoring program andp8ssed. All ourhomes remain rated Goodby the 9lator. O¢cupan¢y remains at least 90%. OGcupancy forlhe year m01ned above industry 8rge$ and Closed at 92.6%. We liais8rl exl8nsively th ourp8rtll8rs in Ihg NHS LocalAuthority to help wherever we could. Generating a reasonable surplus io enable re-investm8nt in the Charity and it5 staff. Surplus was 3¢A of inGome and we in¢&Sed$18ff wages lorthe ninth ¢trnseGUtiweyear. whilst conlinuing inv8slm8ntin ourfacililies and new equipment forlhe benefil c>four residenls. Increasing our profile across the County. We have becoffle one of the best-known ¢h8rities in the County through evenfs 8nd pmmolion of our ch8nlab18 work. During Ihe ye8r we were the first Care home group lo have all 2QO SIdentS re[8 boost8rv8cc1n8tn ag8inst Covid-19, which gener8ted e-rangIngpblicity0f tsurcharilable woss. Growth and D8V810 m8nt Explore further Day C8r8 provision in the County. The Charity currently undertBking Investigatrt and preparatory discussions to in¢re888 Its day Gar8 provision across the County during 2022. Explore the opportunity to grow the Charity through a¢quisition of suitabl8 facilili85. Prior to the end of the year, the Board of Tmstees age to merge another charity inlo Lilian Failhfull Car8 lo prowd8 accofflrnodation forolderpeople in the CO(ty. erties and services Continue with refurbishing our Estate. ensuring th8y 8r8 always fit for purpos6. We ensured our homes bvere safe during the pandemiG period, purchasing additional equipment 8nd dapling the propErtEs where needed to improve Ihe environment forourresidents anrl f8mili8S. We also commenced a major furbIShrn9nt projecl al Sl Fa$ Nursing Hom8 lo cr8818 sla18 of tht èrt nursing sui18s. Th8s8 will b8come op8rationalin Q2 2022. Develop our brand to dernon5trate our breadth of services and heritage. We hève been experienong a slgnifKant surge in our sen$ and also requests for h8lp 8nd advic8. During Ihe year the Charify was S88n as a b8acon ofexcellence in keeping olderand vulner&ble People Safe.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Investigate technology in care with the UnDiersily of Gloucestershire and other bodies. We fook part thp trial ofthe Genie compaiiioiisliip robot al Royal Court wliich was hugely suc¢9f1. We continuetl to look 81811 advanced in technology to pmmote well-being and thp abilily ofour te8mS to spend more times wilh our resitlents. In 2022, we will insligale the rollout of Electronic Medi¢alion Systems ancl Electronic Care Planning solutn$ across the Group. Supporting tnore slud8nt nurses at St Faiths. Resthaven and Failhfull House. Our work wilh thp University lo help train the nexl ge118ration of ntjrses has been 8 Iremgndous suc¢gss. We will conlinue wilh student nurse placements and have plans to adopt this at More of our horJ7e5 in 2022. Developing our T88ms. We continued lo offer a wide range of promotion and training opportunilies During 2027. we pmvided Nursing Associate qu81ilicalions at all our homes anLI a range of qualrfication opportunilies. ive recommenced our Aim High8r L88tl8rship d8V81opmonl program for 75 slaff to ful(Jre proof the Charity 8ft)d 8idsu¢¢ession planning. How Our Activilies AcFtieve Our Alm and Publlc Beneflt The Charity is one of the largest provider5 of 50ci81 c8re for the elderly in Glouceslershire.. c8ring for more residents who have limit8d resources than any other provider. The Local Authority and the regulator deetn u5 a 'drfFicult lo replace. care prowder- this tn8ans that our s8r¢ices are vital to the Community and the County. We also supported those with limited resources by £1.8million in 2021 up £1.6tnillion in 2020. The Charity stands by ils commitment of A HoTne for Life. as we ensure Ihal all our residents staywith us irSpeCtive of their financial status. Those with little or no finsncial resources can apply lo Social Servic8s to pay the bulk of their fees. However, the arnount that Social Service5 will pay is less than the actual cost of providing the required care. In lh8 absenc8 of help frorn family or other sources of support. such residents will have a shorttall in fees made up from the Charity's own resou5. We 11 not ask any resident to18av8 due to a financial circumstance. Our alm Ss lo provide exceptional care and support for our resid8nts 8nd families irrespective ol financial means. The Charity has navigated the Challenge that rnany Charitie5 have not managed, in that bal8ncing providing 8xcellenl care, increasing wages and increasing our supported residents whilst ensuring we rna1n a very stable place to live and work. Considering the guidance Irorn the Charity Commission, we dernonstrate our public benefit by providing care, cat&ring and stsffing levels above industry standards and a Home for Life alongside., Our number of supported residents h8s increased by 88Qh sinc8 2014.143 vs. 81 residents) Financial support we glve has increased by 135°/0 since 2014.1£766k v5. £1.8m support) Our day gu8St numbers have increased by 49Vo since 2014.143 guests vs. 64 guests) We provide emotional support and guidance through our MAST groups and Day Car8. We continue to work closely with our colleagues in the NHS and Gloucestershire County Council to ease demand in the h05Plta15 and help with short-term support. Going forward, research from the local 8Uthority t811 us to expect the number of older people aged 65 and over in Gloucestershire to Continue to rise at 8 faster pa than nalionalw, rising frorn 126,800 in 2015 10 206,300 by 2039. An estimated 25,400 old8r peopl8 have 8 long-tgrrn illness or disability that limits their day-tolay activities. The number is predi¢led io rise to 39,000 by 2030.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 An estirnated 12,700 people aged 65+ in Gloucestershi feel lonely always or often. The nurnber of peop18 living alone is estitnated to increase by about a fifth from 33.800 to 41,000. This means that more people are likely lo need support., research 5how5 th81 when people are isolated and lonely their wellbeing is affe¢led and they 8re more lik@ly lo need h8811h and social care servi8 ITr the future. Our active liaison with local cornmunity groups and with the Social Services has helped significantly in reducing those concerns and has created better local understanding of our work. We ar8 Very grateful for the cornmunity support the Charity recgiv8s from local busin85s8s, schools and organisalions which enhances Our SIdentS lives on a daily basis During th8 year, we weie seen as sotne of the safest places lor residents lo live and our staff to work in the County and an integral partner lo the local hospitals and wider community. Effect of Covid-19 during 2021 and a¢tlon$ the Charlty Ltndertook The Charity Continued to adopt ils v8ry cautious approach throughout the year and experlenced very small numbers of infections with staff and residents. This stood us in good stead to protect our r8sid&nls, families and teams and as a Charity we had a fifth of the level of infections Compared to the rest of the UK and received very positive fegdback from famili85'. "The re8son we 8re wriling is not jus1 lo thank you fordoing such a Lliligent job in keeping mum happy encl safe. it is 8 P8rtiou18rfh8nks for th8 comp85sffori 8nd c8re shown, not only to mum, bui also that we as a family 1ved." We ¢ontinue to ensure we apply for all relevant funding frotn the Governrnent to ensure that we purchase all the PPE, infectiOFI control equipment needed and undertake significant and regular testing throughout all our homes. Feedback on the care we provide Thi5 tells us how imwrtant our Charity is in the County and some of the most recent feedback from families is heart- warming for our tearns who work so hard to car8 for our r85ident8'. °Having had e¥perien¢e of five olherc8r8 homes with ourslep dad, the difference we founLI was aslounlling. l am sure you are rightly proud of the te6nT the and we tsally dony want them lo underestimate how much Iheir Gare and Ihoughlfulness meanl to us.- The Charity estimates that our work touches the lives of approximately 1,000 people 8very day in our County be that residents. families, staff, doctors as well as many others. Risk Mana9Èmertt Each Trustee Committee is assigned certain rkS trom the Charity's Risk Register whi¢h are reviewed, documented and tested during the year. Internal control risks are rninimised by the implefflentstion of proc8dur8s for aulhorisation of all transactions and project5. Procedure5 ar8 in place to ensure compliarKe with heaSth and safety of $18ff, volunteers, client5 and vi51tor5. The Charity continued with regular external health arKI safety inspections to ensure operate a safe workplace for our r8sidents. families and t8am5. Th8 continuing implementation of the ca Quality Commission and Local Authority Standards ensure a ¢onsislent quallty ol delivery for all operational aspe¢ls of the Charily. Thes8 procedur8s ar8 periodically reviewed to ensure that they continue to meet the needs of the Ch8rity. The four major risks to which th8 Charity is 8XP05ed are as follows: Charity lacks strategic direction.. To mitigate this risk the Charity ensures the StratY 1$ di$cuss8d at 8V8ry Board meeting alongside 1Ge-YeaY Strategy Away Days. We m<MriTr in 2021 and set our Strategic Direction for 2021- 2025. Inability to recover from a disaster.. Annually th8 CEO. with thè Senior Management Team and Home Managers, r8views and update the Business Continu5ty Plan lor completeness. The Business Continuity Pl8n was Evi8wed antj updated in December 2021.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Dependency on a narrow range ol income SOUf¢es'. The Charity ensures it has an op&n r81ationship with the Local Government arid has s8t-asid8 5p8cific designated reseNes should there be a change in Policy that affects incotne. The Charity is also looking al ways lo diversify its income stream5- we were partscularly Successful in generating olh&r income. which helped us in furthering our CharitalAe Objects. Significant IT problems.. The Charily reviews its Cybpr security during the year lo ensure il is robust 8nd ils disasl8r recovery plans are sound. All Pc's, laptops and softwa security was upgraded during the year. Financial Review Closing occupan¢y for the Group in 2021 was 92.6Wts12020.. 78QAI and on average for the year was 850k 12020.. 85%). Our absolute priority in 2021, alongside ensuring the safety of our SIdentS and staff. was finanoal security., the Charity athieved a very positive result. Total Income for the year was £12.1 millioTr12020.. £11.6 million). Although f88s did incr8ase rnarginally in the year. our aitn is to keep fees well beFow the average m8rket rale and this forms part of our strategy that we tnake sure our Ch£rity is affor*Jable lo as tnzny people as possib18 in th8 County We are bringing in additional income to ensure that we keep fee increases as small as possible and a detsiled breakdown of how the incr8as8 has been calculated is sent to residents and their families. The 8ddilion81 funding from the Local Authority was used to off5Et the additional cost ol working with Covld-19. Otsr ¢apitsl expenditure increased as we undertov)k works at all our homes. We acquir8d a residential propety, Treadwell Court in Evesham, as an investment to underpin our Core activities. Capital expenditure in the year wa5 £684k12020." £385kl. This increase is partly attribulab18 to catch up improvement works the fabric ol all of the buildings as conlra¢lors were allowed access lo the horne5 again. Direct charitable activit18S 8XP8ndilur8 was £10.5million12020'. £10.3mllllonl. However, we were able to ward our staff and for the eighth consecutive year we increased our te2m's w8g8s by above inflation. Rewardlng and caring for the people who care for our residents only improves the stability of the organisation and ultimately means our sidents benefit from that stability. We were also pleas8d to give 11 staff a much deserved Christmas bonus once again. Support Costs redu¢ed slightly to 9.5Y.1202tr. 9.75QAI of income as we cLtillue to ensure we operate the Charity in the most erficienl way p055ible. We fr8qU8ntly r8V18w our overheads and support costs to ensure we always get best value loi money foi the Charity. Financial assi51an¢e to residents increased as we helped more people overall in the year and we 8imed to keep fees w611 b81ow market av8fd98s. Across the year financial assistance was £1.8m12020." £1.6rn1 as planned and in lin8 with our strategy. This is the differerbce between the actual cost of caring for a person against the market rate or the fee if we were operating as a ¢ornmer¢ial organisation. We work dosely with ourcolle8gues in Social SeNices and the NHS to help as tnany people as pos5ib18. N8Xtyear we envisage this incre85ing slightly as we widen our badth ol ca. If we We to exclude furth8r investment in our investment propgrbes, our cash balances In¢ased by £147k in thè period. The Charity's surplus before depreCiatn and bank Inte$t was £1.2Thillion12020..£1.1 million). Th8 small varianc8 on the prioryezr, in whatcontinues to be a ch811enging time. is due lo the ¢lose managernentof the Charily'sfinancial position enabling us lo further our objectives, invest and protect the strength of th& organisation. The Charity operates from a very strong platfortn of financial scrutiny, prud8nc8 and stability. Net Surplus was £403k for the year12020.. £325kl. With the aid of Sound financial rnanag&m8nl and the support of our teams we generated a positive financial outcotne for the periocs in what has been recognised nationally as SQTne of the most challenging tirnes in the adult social ¢a sector.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Prtnclpal Fundlng Sources The Charity's principal source of funding is from residents. That includes those who are self-funding, Ih05e paying a proportion ol their care ¢o$ls as deemed by the local authority, those fully funded by the local authority and those funded by the Clinical Commissioning Group. The Charity a150 received donations from local businesses. families and chariiab18 8v8nts. The Charity received don8tions and other contiibution5 to costs from various organisations such as the RAF Benevolenl Fund, Civil Service Benevolent Fund. the Royal Agricultural Benevolent Fund, and th8 Sl Andrews Society. The 5UPPOrt from these organisalions is hugely appreciated by th8 Board of Trust8gs. Investment Policy During the year, th8 Charity maintained its financial inveslfflents under a portfolio mana9ed by Sanlam Weallh. In line with the Investment Policy. the primary obje¢live is to preserve capil81 and generate prudent capital growth over the long term During the year the Finance Committee conducted a review of the pertormance ol the Charity's investment portfolio taking ind8P8nd8nl finanaal advice wher8 n8eded. The incorne and capital growth frotn these investments will be used to facilitate future plans and strat8gi8s of th& Charity. At the year-end, these investments were valued 81 £656,92612020'. £643.2761. The Investment Policy was extended in the year to incorrorale the Charity's inve5ttnent properties, consisting of Royal Gardens 8nd Tr88dw811 Court. The purpose of these investments is to underpin the ce objectives by bringing in additional incorne. Reserve5 Policy Total reserves at 31 December 2021 w8r8 £10,266,350 12020.. £9,863,505). Designated funds were £1,250,000 12020.. £1,258,6D81 and G8n8ral Unr8slricted fund5 were £9,016,35012020." £8,604.8971. During the year, the Trustees continued wth the policy of designating unrestricted funds for spe¢ifi¢ use without restricting orcommitting the funds legally. These funds as sl8t&d in not8 18 lo th8 financi31 slaternents are for varying uses. all of which have a purwse and timeline for expense. The Trustees have examined the Charity'8 r8quirements for reserves in light of the main risks to the organisation. It has established a policy whereby the unrestricted funds not assigned to tangible fixed assets held by the Charity I'Free Reserves, anc5'Designaled Funds, and Loan Balan$) should cover only the 8ssentk91 operatirig costs of th8 Charity for a three-month period. Th8 Trustees hav8 58t asid8 those reserves in order lo protect the future operations of the Charity from the effects ol any unforeseen variations in its income streams as part of 8 policy of good finanal management practice. The Charity has continued to invest subslantl81 sums into th& buildings in recent year5 and have a Constant progr8mme of refurbishrnent, developrnellt and investment to maintain ex¢ellenl facilities for our Residents. The current level of Free Reserves and Designated Funds is£10.266.35012020.' £9,863,505). The level of Free Resetves includlng tsnglble fixed assets is £22,016,03712020.. £21,619,6681. The Charity reviews its in$uran¢e provisioll annualty to ensure that it has in place substantial business interruption, building repsir, floodifire and darnage policies, loss ol income and loss ol registration. This ensures we cornmit to being a very strong and stable organisation. Regular updates and monltorlng of these serveS is carried out io ensure that 8 Surplus is achieved and cash flow is adequate for the needs of th8 Charily. During 2021, we ensured that the Chaiity held sufficient reserves during the p8ndernic. Any amount over this is expected to be utilised principally to fund the further d8V8loprnent of propertE5 or provide additional services related to Ihe provision of care io our residents.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Sustainability and the Environment Lilian Faithfull Care actively tnonitols rnany a5cts of its impact on the environment and t8ke$ mili981ing action when possible. For example. a nt Energy Savings Opportunity Scheme report highlights that the Charity is d(xng all that it can lo make the buildings as energy efficient as possible. This include5 actively rnonitoring the effi¢iency of boiler$ which ¢an be remotely adjusted to eTh$u peak performance. The waste management programme mornitors all tyr£s of waste and the levels of recycling that are achieved (for ex3mp18 in 2021 960/D of skip w85te was recycled). W8ter consumption is dUced with the installation of efficient equipm8nt Such as th8 Charity's 250 showers are filled with high preSSu- low volume handsets. There are plans in place to replace the fleet of vehicles with hybrid or electric options. Alternative renewable energy SoUrS zre also being actively considered at all our hom8s, including, solar power. ground Sour healing and biomass boilers. The grounds a managed sympathetically wth the environment and this year thi5 has included training staff to becorne beeke&pers so that beehives can be inlrodu¢ed to in the grounds ol one of our homes. Dormant Sub5tdiary The Charity has a wholly-owned subsidiary. Lilian Faithfull Trading Limited. Thi5 Comp8ny wll be used as part of project in relation to recovera& VAT on certain eXpeit. Lilian Faithfull Homes Limited is a second wholly owned subsidiary which did not trade during th8 Current or preceding financkql year and is a dormant ¢ompany. Plans for Futu Period5 The Charity reviews its strategi¢ obje¢tive8 annually. The 2021 review resulted in a focus five-year strategic plan for the p8ri0d 2021-2025. In Summary.. Core Plans Ensure all our homes continue to be CQC compliant. Occupancy remains at least go%. Generating a reasonable surplus lo enable re-investment in the Charily and its stsff. Increasing our profil8 acros5 th8 County. strate Explore further Oay Care provi5i0n in the Cnty. Explo the opportunity to grow the Charity through £¢quisition ol suitable facilities. Oiversify into new areas such a5 affordable housing and investigate other income sources. Pro erties and serviTrs Continue with refurbishing our Estate, ensuring they are always fit for purpose. Protnote our messag8 and d8rn0nslrate our br88dth of servi¢es and heritage. Investigate technology in ¢8re and partner with University of G105 arld oth8r bodKg5. Supporting more 5tud8nt nurs88 at St Faiths. Resthav8n and Faithfull House. Ultimately, all our strategic plaris are detailed in our Slrat8gic Direction Plan, for2021-2025, which was approved by the Board of TrtJslees- the overarching theme being Its provide a very safe and secure place to live and work at our Charity with the aim to help more people in our County.
LILIAN FAITHFULL CARE TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Structure, Governance and Management The Board of Trustees appoints a Chief Executive to rn3nage the operational aspects of the Charity and they are supported by 3 Senlor Management Team with key responsibilities made up of8 Direclorof Care. Directorof Finance and Director of HR. These roles are further supported by the follovAng Commitlees, made up of Trustees.. Flnan¢e Commlttee The purpose of this Cotnmittee is lo take delegated ie5ponsibility on behalf of the Board for ov8r5eeing all financial aspects of the Charity in older to ensure short anLI long-lerm viability. Qualrty, Care and HR Committee The purpose of this Committ88 is to,. review all external Statutory reports, receive and consider all Nominated Individual Reports and report lo the Board. Monitor wmplaints and cotnmenls and receive regulsr reports on this. Regularfy review Safeguarding reports from the Senior Management Team and oport to the Board. E$tate$ Committèe The Estates Committee (created in 20211 take5 delegated we5ponsibility on behalf of the Board for overseeing all developtnent aspects of the current and future built environment and facilities comprising the operational estate as approved by the Board Governance Commlttee Th8 purpose of this Cotnrnittee Icr8ated in 20211 is lo r8vi8W the structur8, ze and cornposition of th8 Board regularly and to have responsibility for the re¢ruilment and appointment of DI¢10r$. 11 also benchmarks lo¢a11y and nationally and links with the QCIHR Committee over m8tters of mutual inter8s1 in setting 8 healthy workp18ce. It is responsible to the Board forthe annual review of the Govemance manual, for ensuring that Committees are properly constituted, and lor ensuring that the Governan¢e manual polioes and procedures are followed. Trustee Inductlon and Tralnlng New Trust885 undergo an orientation day where they tour the Hoffles, me8l key ernploye8s and are introduced to the otherTrustees. Trustees receive a copy olthe Trustee Information Pack. which includes the Governance Manual. copy of th& Memor8ndum and Articles of Association. Comrnittee Term5 of Refererice, the Strategic Plan. recent financial perforrnance report5 and a copy of CC3- The Essential Ttustee. There are plans for Charity Commission and legislation update training lo take place in 2022. Trustee Beneflls All Trust885 give of Iheirtime freely and no r8rnuneration paid in the year. No Trust68 or person connected with a Trustee received any benefits. Recruitment of Staff and Employee Infom)ation staff are recruited from different sources which include,. Advertisernents in local press. 'Staff Gel Staff financial incentive 5cheThe and Word of mouth. We actively promote the Lilian Faithfull Family. Wrth over 50Yo of our new starters coming from existing staff recommendatlons, this Is encouraglng as people see us as a good pla to work. On successful completion ol an interview new rewits a entered inio a wmprehensive indu¢lion prograrnme over a one-week wriod followed by Shadow support until they ère eompetent to carry out their role. Throughout theirfitst slx months they are supported in a monthly new staff support group meeting with regular vlsits from our compllance offir. In line wlh the Charity's policies, staff are selected to ensure suitability for the role iSpeCtive of colour, race. ethnicity, disability. religion, sex or Sexual orientation. The Charity undertook Gender Pay Gap reporting and successfully demonstrated that we are well below the UK average indices. 2021 continued to be a particularly challenging lim8 for our tearns and w8 concentrated on staff well-being and held a staff forurn every Mo weeks during the pandefflic to reassure our teams that we were here to help. P8rt of that programme Whe staff a gUlarlY kept informed ol the plans ol the Charity. takes the form ol Inlomiation on the intranet. Staff Forums. gUlar staff meetings. stsff Newsletter. social media and regular visits from the Director of Care and the Chief Executiv8.
LILIAN FAITHFULL CAR TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 We ended 2021 with our vacancy rale currently stands al 6% against an industry 8verage of 12Vo and our staff turnover rale is 11.5PA against an industry average of 40%. Continuity of our staff b35e 15 ¢ritical lo providing con5151enl cale of the highesl standards,. in 2022, we will focus on attracting new staff lo ourseclor and caring for our most imKK)rtant 8ssel- our teams. Feedback from the staff survey told us.. 'Always feel valued Mthin the team. Encouraged Io push myselffurther. OrgarJis81ion and support diiring lockdown period was very good." Governing Document The oiganis3lion wa5 incorporated as a private cornpany lirniled by guarantee under the Companies Act 1985 on 31 December 2007. The Company wa5 also registered as a chaiity on 31 Decembei 2007. The Company is govern8d by ils Memorandum and Articles of Association. In the event of the Cornpany being wound up members are required to contribute an amount not exceeding £1. Charity Governance Code The Trustees comprehensively reviewed the Charity &)vemaN CcKle during the year and used our exlemal auditors to conduct a review. The Govemance Manual wa5 reviewed and a number of key policies were updated, namely., Equality, diversity and inclusion. specific roles and committees. risk management and board appra15als. The report back to the Board commented that, "good progrgss had been made on the governan manual and dealt with the areas that we highlight8d. The Board of Trustees will continue to review and adopt best practice and take advice and guid8nc8 wh8re needed. Furtdrai5ing di5c105ures Th8 Charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011. 10
LILIAN FAITHFULL CARE STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees Iwho are 81$0 diro¢lors of Lilian Faithfull Cara for the purposes of cornpany lawl are iesponsible for preparing the Trustee's report 3nd the financial statements In accordan with applicable law and United Kingdom G8n8rally Accepted Accounting Practi Iuniled Kingdotn Accounting Standards). Company law requires the Trustees lo Ppare financi81 slat&menls for e8ch financial year. Under company law the Trustees must not approv& th& financial statetnents unles5 they are satisfied that they give a true and lair view of the slate of 8ff8irs of the Charitable Company and of the incoming resources and application of resour$. including the income and expenditure. of Ihe Charitable Comp8ny for that period. In preparing Ihese financial slatemenls, the Trustees are Equired to.. Select suitable ac(x)unting policie5 8nd then apply them con5151ently,' Observe the rnelhods ant5 principle5 in the Charities SORP.. Make judgmen15 and a¢¢ounting estimates that a reasonable and prudent., Slate whether applicable UK Accounting Standards have been followed. subject to any maledal departure5 disclosed and explained in the financlal slatemenls.. prepa the finan¢ial statements on the going conc8rn basis unless it Is inappropriate to presume that the Charitabl& Company will continu8 in operation. Th8 Trus18es ar8 r8spon5ibl8 for ke8pirig adequate accounting recoids that are surricient to show and explain the Charitable Companls transactions and disclose with reason8ble 8¢curacy at any time the financial position of the Charitable Company, enables them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the as5e15 of the Charitable Cornpany and hence lor taking 8$onable steps for the prevention and detection of fraud and olher irregularities. AUDITORS Hazlewoods LLP were appointed 8s auditors during the perioiJ, and a iesolution proposing that they be - appointed will be put lo th8 Annual G8n8ral Meeting. DISCLOSURE OF INFORMATION TO AUDtTORS Insofar as 88ch of the Trustees of the Charity at the date ol approval of this rewrt is aware there is no relevant audit infonration linfonration needed by the Charity's auditoi in c(neCtIon wth preparing the Audit report) of which the Charity's aLKJitor is unawar8. Each Tiustee has taken all of the steps that helshe should have taken as a Truste8 in order to mak8 himselflhers81f aware of any relevant audit information and to establish that the Charity's auditor is aware of th8t inforrn8ti0n. The Trustees, report cornprising the Strategic Report and other inforrnalion was approved by the Trustees on and signed on thelr behalf by.. By order of the Board G Pyatt Trustee Dat8..
LILIAN FAITHFULL CARE (Company Number.. 064612631 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS Icontinuedl Opinion We have audited the financial $181em@nls of Lilian Faithlull Care lor the year ended 31 Decembei 2021 which comprise the Statement of Financial Activities. Balance Sheet. Cashflow Statement and the related note5. The financial reporting framework that has been applied in Ihpir pparatiOn is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Financial Reporting Standard appliCae in UK 2nd Republi¢ ol Irelatbd (Uniled Kingdom Generally Accepted Accounting Pra¢li¢el. Optnion on flnanclal statements In our opinion the financial 5t3lefflents'. give a true and fair view ol the slate ol the charity's affairs as at 31 Decefflber 2021 and of ils incoming resources and application of resource5 for the ye81 then 6nd8d., have been properly prepared in accordance with United Kingdom Generally A¢cepled Accounting Pra¢ti¢e'. and have been prepared in accordance with the requ1mentS of the Charities Act 2011. Basis for opinion We conducted our audlt In accordance with Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. OJr responsibilities under those standards are further described in the Auditor's re5pon5ibilities for the 8udil of the financial stalernent5 section of our 18port. We ar8 indep8ndent of the ¢harity in a¢cordance with the ethical reQuimentS that are relevant to our aLJdit of the financial s181ements in the UK. including the FRC'S Ethical Slanclard, and we have fulfill6d our other ethical responsibllilies in accordance with these requiiements. We believe that th8 audit 8vidence wg have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to golng con¢ern We have nothing to rewrt in respect of the followng rnatters in relation to which th8 ISA5 IUKI require us to report to you whe". the Iruslees, use of the going concern basis ol ac¢ounting in the preparation of the financial Statemen is not appropriate., or the trustees have not disdosed in the financial statements any identified Material un¢ertainties that may cast significant doubt 8bout th8 charity's abilily io continue lo adopt the golng concem basis of a¢untIng for a period of at least twelve months from the date when the Iinanual 5taternents are aulhorised for issue. Other Infomatlon The oth8r information comprises the information included in the annual pOrt. other than the financial 5tatetnent 8nd our auditorfs report thereon. The trustees a responsible lor the other information. The other inforrnation comprises the information included In the annual report, otherthan the financial 51alements and ourauditor's r8POrt Ihereon. Our opinion on the financial statements does not cover the other informatlon and, except to the extent otherwise explicitly stated in our ieport, we do not 8xpr8ss 8ny forrn of assuran¢e ¢on¢lusion theOn. In connection with our audit ol the financial slatetnent5, our responsibility is lo read th8 olher information and, in doing so. consider whether the other infoitnation is rnaterially inconsistent with the finan¢i81 statements or our knowledge obtained in the audit or otherwise appe8rs to be materially misstated. 11 we identify such fflalerial inconsistencies or appar8nt material misslaternents, we are qUIred lo dekmlne whether there is a tnaterial rMisslat8ment in the financial statements or a material misstatement of the other inlorTnatioll. If, based on the work we have performed, we conclude that there is a rnateiial misstatetnenl of thi5 olhei information, we ar8 r8quir8d lo report that fa¢l. We have nothing to report in this regard. 12
LILIAN FAITHFULL CARE Icompany Number '. 064612631 FINANGIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER2021 INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS Icontlnuedl Matters on which we are required to report by ex¢eption W8 have nothing to r8POrt in r8SP8Ct of the following tnallers where the Charities Act 2011 requires us to report to you il. in our opinion.. the information given in the financial 5tatement5 15 inconsistent in any material respect with the trustees, report., or suffi¢ienl accounting records have not been kopl., or the financial statetnen15 are not in agement with the accounting re¢ords". or W8 have not r8C8ived all the inforfflation arTrd explanations we requi for our audit. Responsrbilities of trustees As explain8d more fully in the trust8es' responsibilities staiemenl, the Iiuslees are iesponsible for the preratIOrn of the financial statements and for being satisfied th81 they give a true 8nd fair view, and for such internal control as the trustees determine is necessary to enable the preparation orrinan¢ial statements that are free from material mis5t818ffl8nt, whether due to fraud or error. Auditor's responsibilltles for the audlt of the Ilnanclal statements Our objectives are to obtain reasonable assurance about whether the Iln8nclal stalernents as a whole are free frorn material misstatement, whether due lo fraud or error, and to issue an zuditorf5 report that indudes our opinion. Reasonable assurance is a high level ol assuran¢e, bul is not 8 guarantee that an audit conduct8d in accordance with ISA5 IUKI will always detect a material tn15Statetnent when it exists. Misststemenls can arise from fraud or error and a COn5id8r8d fflaterial if, incsividually or in the aggregate, they could reasonably be expected to influence the e¢onomi¢ decisions ol users taken on the basis of these financi81 statements. As part of an audit in accordanee with ISAS IUKI, we exerdse professlonal ludgmenl and maintain profession81 sceptiCi5rn throughout the audit. We also.. Identify and assess the risks of mat8rial misstat8m8nt of th8 financi81 staternents, whether du8 to fraud or error. design and perform 8udil procedures responsive to those risks, and obtain 8udit eviden that is sufficient and appropriate to provlde a basis for our opinion. The risk of not d8t&cting a rnat8ri81 fflisstalement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion. forgery, intention81 omissions. mi5r8pr8s8ntslions, or the OV8rride of internal control. Obtain an understanding ol internal control relevant to the audit in order to design audit proc8dur8S that are appropriate in the ¢ircumslan¢es. but not for the purpose of expressing an opinion on the effectiveness ol the charity's internal contiol. Evaluate the appropriaten8ss of accounting poliries used and the rea50nablene5s of accounting estimates and related disclosures made by the trustees Conclude on the appropriateness ofthe trustees, use of the going concem basis of accnunting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may ¢8St signifi¢ant doubt on the charity's ability to continue as a going concem. If we conclude that a material UnrtaIntY exists. we are required to dr8w alt8nlion in our 8udilor's r8POrt to the related disclosures in the financial statements or. if such disclosures a inadequate. lo modify our opinion. Our conclusion5 are based on the audit evidence obtained up to the date of our auditor's pOrt. However, futu events or Conditions may ¢ause the charity lo ceas8 to continue as a going concem. Evaluate the overall presentation. structure and mntent of the financr81 sl818rn&nls, including the disclosures, and whether the financial statements repsent the underlwng transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding th8 financial inform8tion of th8 entiti85 or business activities within the charity lo express an opinion on the financial slatemenls. We are reswnsible for the direction, supervision and performan ol the charity's audit. We maIn solety responsible for our audit opinion. We communicate with those charged with governance regarding. among other matters, the planned scope and timing ol the audit and significant audit finding5, including any significant deficiencies in internal control that we identity during our audit. 13
LILIAN FAITHFULL CARE Icompany Number.. 064612631 FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 DECEMBER2021 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS Icontinuedl Extent to which the audit was consldered capable of dete¢ting irguIdritieS, inGluding fraud Owing lo the inherent limitations of an audil, there 15 an unavoidable llsk that material misslatemenls in the financial statements may not be d8lected, even though the audit is properly planned and performed in accordan with the ISA'S IUKI In identifying and assessing risks of material mis-stalefflentin respeclof fraud, including irregularities and non-compli8nce with laws and regulalions, our procedures included Ihe following_. We obtained an understanding of the legal znd iegulatory frarneworks applicable lo th8 cornpany fin8ncial statements or that had a funi5amental effect on the company s operations. We determined that the most Sl9nificant laws and regulations included UK GA4P. UK Comp8nies Act 2006 and taxation laws. We understood how the compèny is complying with those legal and regulatory framewoFks by makiry inquiries of management, those responsible lor legal and compliance procedures. We assessed the susceptibility of the company's fin8n¢i81 statements to material misstalemenl. including how fraud might occur. Audit procedures performed by the eng8gemenl team in¢luded'. Identifwng and assessing the design effectiveness of controls fflanageTnent has in place to prevent &nd detect fraud., Understanding how those charged with govern8nce oonsidered and addssed the potential for override ol Controls or other inappropriate influen¢e over the financial reporting pro$$. Detailed analysis ofjournals WSt6d through the accounting system during the year to 31 DeTrmber 2021 has been undertaken., UnderslandirvJ the controls in place to pr8venl and detect fraud. Reli8nce was not placed on controls for the entir81y of th8 audit, instead tsking 8 substantive testing approach. however Controls We in pla to pvernt fr8ud, and they appeared lo be working effectively.. Challenging assumptions and judgements fflade by managetnent in it5 signific8nt accounting estim8te8. Use of our report This report is made solely to the charity's Iruslees, as a body, in accordan with the Charities Act 2D11. Our audit work has been undertaken so that we might state lo the tfuslees those rnatters we are required to stale to them in an auditors, report and for no other purpose. To the fulle51 extent permitted by law, we do nol accept or assume resrK)nsibility lo anyone other than th8 charity and the charity's trustees 8$ a body. for our audit worf(. for thls pOrt, or for the opinions we h8ve formed. Martin Howard (Senior Statutory Audilorl For and on behalf of Hazlewoods LLP. Statutory Auditor Windsor House Bayshill Road Cheltenham GL50 3AT 191512022 Date_. 14
LILIAN FAITHFULL CARE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 Unrestricted fund5 Restricted funds Total funds 2021 Total funds 2020 Note INCOME Income from.. Donations and legacies Charitable aclivities Other trading activities- fundiai51llg Investments Other incotne 131.819 11,145,858 646.743 778,562 11.145,858 632,836 10,907,841 3,578 51.308 25,553 116,160 16.051 116,160 16,051 Total in¢ome 11,409.888 646,743 12.056,631 11.620.916 Expenditure on: Raising funds". Investment tnanager's fees Charitsble a¢livities 4,627 11.010.005 4.627 11,656.748 5,448 11.240,549 646,743 Total expenditure 11,014,632 646.743 11.661,375 11,245,997 Net gain51110ssesl on investments 7,589 7.589 150.1091 Net movement In funds 402,845 402,845 324,810 Reconclliatlon in funds Total fund5 brought forward Nel mov8rn8nt in funds 9,863,505 402.845 9.863.505 402,845 9,538,695 324.810 Totsl funds carried forward 10.266.350 10,266,350 9.863.505 The nol8s on pages 18 to 31 form part of these financial staternents. 15
LILIAN FAITHFULL CARE BALANCE SHEET (Cornpany NumbeT= 064612631 AS AT 31 DECEMBER 2021 Note 2021 2020 FIXED ASSETS Tangible assets Investments Inveslfflenl property 11.749.687 857.026 1,599,235 11.756.163 643,376 560,000 13 12 Yotal tlxeil assets 14.005,948 12,959,539 CURRENT ASSETS Debtors Cash at bank and in hand 826,028 1,074,219 722,993 1,354.594 1.700,247 2,077,587 CREDITORS Amount8 falling due within one year 15 11.561,8281 11,610.8031 NET CURRENT ASSETS I ILIABILITIESI 138.419 466.784 TOTAL ASSETS LESS LIABILITIES 14,144,367 13.426,323 CREDITORS Amounts falling due after rnoE than one ye&r 16 13,878,017) 13,562,818) TOTAL NET ASSETS 10,266,350 9,863.505 CHARITY FUNDS Restricted funds Unrestricted funds 19 18 10,266,350 9,863,505 Total funds 10,266,350 9,863,505 Approved by the Board for issue on // s. 2t)21 tt- Trustee The note5 on pag8s 18 to 31 forrn part of these financial statements. 16
LILIAN FAITHFULL CARE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 Note Cash used in operating activittes Nel cash provided by operaling a¢tivi1185 21 981,133 1,171,091 Cash flows from investing activities Divldends. interests and rents fmm investments Purchase ol tangible fixed assets Proceeds from sale of inv8stm8nts Purchase of investments Investment property additions 116.160 1684.4821 248,721 1246,6491 11.039.235) 51,308 1386.7051 670.453 1699,0521 116.2761 Cash used in investing arlivities 11,605.4851 1380,2721 Cash flows from financing actlvltles Advance of bank loan Repayrn8nts of borrowings 603.600 1251,4901 1133,8941 Net Cash provided by I lused inl In financlng actlvltles 352.110 1133.8941 Change in cash and cash equivalents in the year 1272,2421 656,925 Cash and cash 8quival8nts brought forward 1.364,365 707,440 Total cash and eash equovalents carried forward 22 1,092,123 1,364,365 The notes on pages 18 to 31 form part of these financkql statements. 17
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 OECEMBER2021 ACCOUNTING POLICIES The financial slalements have been ppad under the historical cost convention. as modified by the valuation ol cprtain fixed assets. adopting the following prinapal accounting policies 311 of which are in aCran with Accounting and Reporting by Charities." Statement of Recommended Practice Accounting and Reporting by Charitie5 ISORP FRS1021 issued in July 2014 and The Companie5 Act 2006. The financial statements are presented in Pounds Sterling. Company status The Charity is limited by guarantee and has no share capitsl. The liability of each member in the event ofwinding up is limited to £1. The ¢omp£ny is subject lo the requirements of the Companies Act 2006 with regards lo the form and conlenl of the financial statements. The Charity is a private company. liffliled by guarantee (company no. 06461263 England and Wales) without Sha capital. and registered with the Charity Commission Iiegistered nurllber 1122183 I England and Wales). The address ol its registered office is.. Ground Floor West Festival House Jessop Avenue Cheltenham Glou¢estershire GL50 3SH This is also th8 r8gis18r8d address of its dormant sub5idiari8s Lilian Faithfull Trading Limit8d and Lilian Faithfull Hornes Limited. Consolldated flnan¢lal statements The financial Statements do not include the consolidated fin8ncial r8suIts of th8 Charity and ils 5ubsidi8ry eomp8nie5, Lilian Faithfull Trading Litnited and Lilian Falthfull Homes Lirnit8d, on the grounds that th8 subsidiary company's results are irnmaterial lo the group. Going concern The Trustees have a ieastsnable expectation that the Charity has ad8quat8 r88oU88 to continu8 in operational existence for the foreseeable future. For long terrn finance the charity relies on bank loans, as disclosed in notes to the finantsal statements. In assessing going concem the Truslees h3ve as5Utn8d that these bank loans will not be iepaid for the foreseeable future lin line with the signed b8nk loan agreernentl 8nd are not aware of any circutnstances that tnay adversely affed the renewal of these facilities. In preparing the financial 5talem&nts, the Trustees have considered the potential impact of the ongoing Covid-19 pandetnic on th8 going concem status of the Ghaiify and have determined the irnpacl on current and future performance of the Charity is minimal. The laclots Considered by the Trustees are documented in more detail within the Trustees report. The Trustees Ctsn5ider that there are no material uncertainties over the Charity's financial viability and, accordingly, (x>ntinue to adopt the going concern basis ol accounting in preparing the annual financial 51atementS. Fund accountlng Funds held by the charity are either.. Unre5trictetJ general funds, whKh are available for use al the di5cr8tion of the Truste8s in ftjrtherants of the general objectives of the Ch8rily and which h8v8 not been deSnat8d for other purp05es,' or Unrestricted designated fund5, thal have been set aside by the Trustees for particular purpos8s. Th8 aim and use of 8ach d8signated fund ar8 sal out in the notes io the finanual slaternent5', or Restricted funds. which are donations or legacies ceiVed Whe the donor has specified use 801ely for particular areas of the Charity's work or for speriC projects undertaken. The specific restriction on each lund is set out in the financial statements. 18
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER2021 ACCOUNTING POLICIES Icontinuedl Incoming Tesource5 Investment income is recognised when Ceived, or il decla te1vable. For legacies. entitlement is taken as the earlier of the dale on which either-. the Charity 15 aware that probate has been granted. the estate has been finalised and notification has been tnade by the executorlsl to the Trust that a distribution will be made. or when a dislfibution is received from the estsle. Receipt of 3 legacy, in whole or In part. Is only consided probable when the amount can be measured reliably. and the Chaiity has been notified of the Èxe¢ulor's intention to rnake a dislribulion. Where leg?cies have been Dolified to the Charity. or the Charity is aware ol the granting of probate. and the Criteiia for incoffle recognition have not been met, then the legacy is tated as a contingent asset and disclosed il rnaterial. Income from charitable actlvlties indudes home Income recognised as earned las the related goods or services are provided) under contrad. Rental income is included in the year in which it is receivable. Rent receivable frotn the investment property is ¢18s5ified as investment income. Resour¢es expended Expenditure is ac¢ounted for as charitable activities being the provision ol care. Within provision of care. wsts are alloc81ed belween direct provision of care costs and support costs. The irrecoverable element of Value Added Tax is included wilh the itern of expense to which il relates. Depreuation is allocated to expendilu headings on the basis of the use of the 8ssets concerned. Governan costs indude cost ol oonstitutional and ststutory requirements. cost ol Trustee meetings and the cost of any legal advice to the Trustees on governan orconstitutional matters and are in¢luded within support costs. Support costs include centr81 functions and have been allocated to activity coslcategorieson a basis consistent with the use of resources, for gxample. allocating property costs by floor areas or per capila. staff Costs by the time spent and other costs by their usag8. Costs of raising funds are costs payab to third party investment m8n8gers that manag8 the Ch8rity' investment portfolio. Government grants Gran18 from gov8rnm811t bodi8S 8r8 r8vi8wed for8pecific projectslcosts and are recognised in a(Lordan¢e wth their individual terrns 8nd conditions. Incorne is recognised when the Charity has entitlement to the funds which is when any perfornian¢e conditions alta¢hed are mel. it is probable that the income will be received. and the amount can be reliably me8sured. Grant iF)come will be deferred if reiVed in advan of meeting performan conditions or if th8 funder sp8cificAlly slates that the income musl be spent in a future a¢¢ounting period. Taxation The Cornp2ny is an Exernpt Charity within the meaning of sChUle 2 ofthe Charitles Act 1993 and as such Ss charity wthin the meaning of Section 519 of the Income Tax A¢1 2007 Iforrnerly Section 506111 of the Taxes Act 19881. Accordingly. the company is potentially exempl from t8xation in respe¢l of income or capital gains re¢eived within categories covered by Section 524 of the Income Tax Act 2007 IfomieHy Section 505 of the Taxes Act 19881 or Se¢lion 256 of the Taxation of CharyeaNe Gains Tax 1992 to the extent that such irKome or gains a applied to exclusively charitsble purpDses. 19
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER2021 ACCOUNTING POLICIES Icontinuedl Tanglble fixed assets and depCiatIOn All assets costing more than £1,000 are capitalised. Ongoing proj8cls m&y have additional costs below this value however they are cèpit3lised a5 the overall c051 of the project is over £1,000. T8ngible fixed 855ets are slated al c05t les5 depreciation. Oepreciation is provided at r81es calculated to write off the cost of the Iixed asset5, less their estimated residual v8lue, over their exp8Cted useful lives in the following bases.. Freehold land Freehold buildings Leasehold improvements Fixtures and equipment Motor vehicles 2- 5°h of cost per annum In line wllh the underlying lease 20Qh of cost per annum 20% of cost per annum Investments Fixed as58t inv8stm8nts ar8 included al rnarkel value al th8 Balance Sheet Dale. Gains and losses represent the rnovement in market values during the yearand are credited of charged to the statement of Finan&1 Aclivili85. Unlist8d inv85tm8nls ar8 shown at cost unless ther8 is a perrnanenl diminution in value. Investment Property Investrnent properties are 5t8ted al freehold market value in the Ba18nce Sheet at the reporting date. An independent professional third-party valuation 15 carri8d out at least every five years and ppared on an infomal basis in the intetvening period. Gains or1055e5 are taken to the Stst8rn8nt of Financial A¢tivilies. No depreciation is charged on investment propertie5. Operating leases Renta15 applicaue to operating leases where 5ub5t8ntially all of the benefits and risk of ownership main with the lessor are charged to the Staletn8nt of Fin8ncial Activitigs on a straight-line basis over the lease term. Cash and cash equlvalent$ Cash and cash equiv8lenls cotnpri88 cash in hand and deposits with financial institutions. Debtors Trade, other debtors and accrued incom8 are r8cognis8d at the 89tt1ernent amount due. and prepayrnents are valued at the atnount piepaid. Creditors CdItorS are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and lh8 arnount du8 to settle the obligation can be rneasured or estimated lIablY. Trade creditors, taxation and sooal Security, wages and salaries, other Creditors and accrua15 are recognispd at their 5ettlernent atnount. Bank loans ar8 recogni58d at amort158d cost using the effective interest method. Financial Instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic financi81 instrurn8nt5, these being cash at bank, debtors. creditor5 and loans. All inveslffients held by the Chgrily also qualify 85 basic rinancial instruments. Pension costs The Charity OP8rales a defined contribution pension scheme. and the pension charge repras8nts thè amount payable by the Charity to the fund in respect ol the year. 20
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEM8ER2021 ACCOUNTING POLICIES Icontinuedl Redundancy cost5 Redundancy costs arising Irorn periodi¢ rewews of staff level$ a charged to the Statement of Financial Activities in the year in which the Charity is demonstrably ¢ommilled to the employ8es188vino the Chzrity. Critical a¢¢ounting estlmates and areas of judgement Prep8ralion of the financi31 statements QuI$ management lo ¢onsider making significantjudgetnents and estimates where nece55ary. The area5 in which signifi¢ant judgements and estimations have been made ¢omprise of d8preciation and the recoverability ol debtors, and investment property valuation. Useful economic lives of langible fixed assels The annua1 depreciation charge for tangible fixed assets is sensitive to charyes in the eslimaled useful economic lives and SIdUal values of the assets. The useful economic lives and residual values are amended when necessary lo ieflecl current estimates and the physical condition of the a5sels. See Note 11 for the carrying amount of the tangible fixed assets and above for the useful lives of each class of asset. Impairmenl of debtors The Charity rnakes an estimate of trade debtors and other debtors. When assessing the impairment of trade debtor5 and other debtors, managernent considers factors including the curr8nt ciedit raling of the debtor, the agging profile of debtors and historical experience. Investm@ntprop8rty valualion The Charity will periodically engage third party experts to provide. and independent V81u8tion ofthe illve5tfflent properties held. INCOME FROM DONATIONS AND LEGACIES Unrestricted funds Restricted funds Total fvnds 2021 Total fund$ 2020 Donatlons General donations Ljplands rn8rgei- fair trade of donated trade and assets Government grants 131,819 10,500 142,319 94.368 14,698 523,570 636,243 636,243 Total 2021 131,819 646.743 778,562 632,636 The govemment grant includes £63,62312020- £209.6451 related io th8 Cor()navirus Job Retention Scheme and £572,62012020- £313,925) to an Infection Control Grant. 21
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS l¢ontinuedl FOR THE YEAR ENDED 31 DECEMBER2021 PROVISION OF CARE 2021 202 Residents, fees Contributions to runnlng costs 11,133,905 11,953 10,889,728 18.113 11.145,858 10,907,841 Provision of care wa5 unrestiicted during this and the prior year. INVESTMENT INCOME Unrestricted funds 2021 Total funds 2021 Total funds 2020 Rental income In¢ome from listed investments Interest receivable 103,417 12,101 642 103.417 12,101 642 39,171 8.945 3,192 116,160 116,160 51,308 OTHER INCOME The analysis of the Charity's other income for the year is as ft>llows'. Unrestricted funds 2021 Total funds 2021 Total funds 2020 Volunlary income. other income. gift aid 16,051 16.051 25,553 18,051 16,051 25.553 ANALYSIS OF EXPENDITURE BY ACTIVITY Activitie5 undertaken dlre¢tly 2021 Support costs Total 2021 Total 2020 2021 Care costs Welfara PmiseS Support C05t5 5.181.648 3,388,277 1,943,698 5.182,546 3,388,277 1,943,698 1,147.752 5.100,871 3.191,742 1,871.723 1,076,213 1,147,752 Total 10.513,623 1,147,752 11,661,375 11,240.549 22
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS l¢ontinuedl FOR THE YEAR ENDED 31 DECEMBER202q Analysis of diiect cosls Care Costs Welfare 2021 Prernises Total 2021 Total 2020 2021 2021 Staff costs Depreoation Contract ¢alering E5t8blishmenl costs Repairs and m81nlenance Advertising Office expense5 Subscriptions and publication5 Equipment hire Resident5. welfare and Acliviti8s Cleaning. medical costs. Uniforffls Motor expenses Other employment costs Agency costs 4,466,159 2,350,804 121,479 607,586 6,938,442 6D7,586 428.880 556,341 658,292 52,207 95.733 7,098.707 670,477 407,753 477.658 592,700 46.553 84,979 428.880 556,341 658,292 52.207 95.733 30,646 17.933 30,646 17,933 27,758 9,806 30,653 30,653 39,463 157.772 27.478 161.483 34.688 157.772 27.478 161,483 750.177 228,327 26.237 126,586 327,332 715,489 Total 5,181,648 3.388,277 1,943.698 70,513,623 10,164,336 Analysis of support Costs Care ¢osts 2021 Total 2021 Total 2020 Staff Costs Printing, postag8 and stationery Legal and professional costs Bank charges & interest Govemance costs Depr8ciation 823,578 33,036 111,183 78,750 17.833 83,372 823,578 33.036 111,183 78.750 17.833 63,372 843,320 49,933 79.840 83,980 19,140 1,147.752 1,147,752 1,076,213 Governance costs comprise auditorfs remuneration of £17,50312020- £19.1401 and Trustee5' expenses £330 12020 £Nill TAXATION The company is a wisl8red charity and is thèrèfore entitkd to tax exemptions on all ils income and galns, property applied for its chari18ble purposes. 23
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER2021 AUDITOR'S REMUNERATION 2021 2020 Fees payable to the Cornpany's auditor for the audit of the Company's Annu81 accounts 17.103 16,225 Fees payable lo the Compzny 5 auditor in re5PeCt of.. All non-audit services not included above 400 266 17,503 16,491 Within the £17,103 related to the audit fee 1$ £1.500 for ac¢ounts pparatIon. EMPLOYMENT Gosrs 2021 2020 Wages and salaries So¢ial security costs Contribution to defined contribution pension 5chernes 7,101,939 519,897 140,184 7,271,516 530,275 140.235 7,762,020 7,942,026 During the year. no12020- twol Redundancy and Termination payrnents (including salary. notice and accrued holiday payl were made, tolalling £nil12020- £29.2921. The averag8 numb8r of persons 8mployed by the Company during the year was as follows.. 2021 No. 2020 No. Head count 410 434 The number ol employees whose etnployee benefits exceeded £60.000 was= 2021 No. 2020 No. £60.001- £70,000 £70,001- £80,000 £80,001- £90,000 £90,001 £100,000 £100,001- £110,000 The key management personnel lolher than the Trustees who are not remunerated) of the Charity are the Chief Executive Office, the Dir8Ctor of C8re, Director of Human Resources and the Director of Finance. The reffluneration for this team totals £308.52312020 - £307.3211. This includes gr055 salary, benefits, employer'5 national insurance and employei's pension contributions. 24
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER2O21 10 TRUSTEE'S REMUNERATION AND EXPENSES During the year, no Trustees received any MUneratIon or other benefits1£2020- £Nill. During the year ended 31 December 2021. expenses tot811ing £330 w8re reimbu15ed or paid directty12020- 11 TANGIBLE FIXED ASSETS Freehold Property Leasehold Improvem8nts Motor Vehicles Fixtures and Equipment Total Cost or valuation At 1 January 2021 Additions Disposals 11,391,707 51,638 4,595 186.447 16,750 19,513 4,068,138 616.094 252 433 15,650,887 684,482 271.946 At 31 December 2021 11.443,345 4,595 183.684 4,431,799 16,063,423 Depreciation At 1 January 2021 Charye for the year Ellmlnated on disposal 859.004 175,622 914 1.097 153,132 12,454 2,881,674 501,785 252.433 3,894,724 690,958 271,946 At 31 December 2021 1.034.626 2.011 146,073 3,131,026 4,313,736 Net book value At 31 December 2021 At 31 De¢ernber 2020 10,408,719 10,532,703 2,584 3,861 37.611 33,315 1300.773 1,186.464 11,749,687 11,756,163 12 INVESTMENT PROPERTY Freehold Investment Property Valuation At 1 January 2021 Additions 560,000 1.039,235 At 31 De¢ernb8r 2021 1.599,235 The Tru5t8es have reviewed the value of the inveslrnent prOrtIeS and consider that Costs represent the lair value at 31 D8cemb8r 2021. The investment propertles are Valu by an indep8nd8nt, third party valuer on a quinquennial basis. The property held at the start of the year was last valued bz5ed on an adjusted net rental income ¢apilalisalion approach on 11 January 2021 by Philip J Pratt Bsc MRICS of Al(5er King LLP. As he Is a related paty. the Trustees of the Finance Committee have approved the v&luation on behalf of the Board. The property acquired during the year, Tredwell Court which is made up of nine flats for private rent31, was valued using comparable and investment rnelhods of valuation on 23 November 2020 by BruTr P Fenley Bsc (Honsl MRICS of Ash Chartered Surveyors. 25
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER2021 13 FIXED ASSET INVESTMENTS Investments Subsidiary Llsted ¢ompany Investrnents Total Cost or valuation At 1 January 2021 Additions Disposals Revaluations Movemenl on cash held for inveStMent 100 643.276 246,649 1248,7211 7,589 8,133 643,376 246,649 1248.7211 7,589 8.133 At 31 December 2021 100 656.926 657,026 At year end cash held by the investment manag8r5 totslled £17,85812020- £9,771). Lilian Faithlull Trading Limited is a wholly owned subsidiary of th8 Charty. Lilian Faithfull Trading Limited did not trade during the current or preceding financial year and therefore made neither profit nor loss. As at 31 Derember 2021, the entity had totzl Shareholders, Funds of £1,02912020- £1,029). Lllian Faithlull Horne5 Limite(t a second wholly owned subsidiary. Lilian Faithfull Homes Lirniled did not trade during the Current or pCeding financial year and 15 a dorfflant company. 14 DEBTORS 2021 2020 Trade debtors Other debtors Prepayrnents and acwed income 475.914 10,052 140,062 412.520 34,459 276,014 626.028 722.993 15 CREDITORS- amounts falling due within one year 2021 2020 Bank loans Trade creditors Other taxalion and social sewrily Other creditors Aral$ and deferred incoffe 268,359 251.806 285,741 537,380 218,542 231,448 391.861 275,063 633,162 79,269 1,561,828 1,610.803 26
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER2021 16 CREDITORS- amounts falling due after mor8 than one y8ar 2021 2020 Bank loans 3,878.017 3,562,818 In¢luded within the atx)ve are arnounts falling du8 a5 follows.. 2021 2020 Between one and two years Bank loans 782,051 232,409 Between two and five years Bank loans 2,609.884 703,412 Over five years Bank loans 486,082 2,626,997 At 31 December 2021. there were thr8e12020- two) bank loan balances of £2,745,898, £819,970 and £580.508 12020- £2,929,180, £865.086 and nil SpectIVe1Yl. The first loan 15 seLyJred by legal charge over Royal Court, Fiddle¢s Green. Cheltenham. Glouceslershir8 and a legal charge over St Faith's Nursing Home, Malvern Road, Cheltenham, Gloucestershire. and bears interest of 1.58Y.. The second loan is sewred by means of a legal charg8 OV8r Re5th8ven Nursing Home, Pitchcombe. Stroud. Gl0uwtershi. and bears interest of 1.950/0. The third loan h85 no addition81 securitie5 to those already listed and bears a floats.ng rate interest charge. 17 FINANCEAL INSTRUMENTS 2021 2020 Financial assets Financial assets measured at fair value through income and expenditur8 656,926 643,276 Financi81 assets rneasured at fair valu8 through incorn8 and 8xp8nditur8 compii5e listed investments. All other finan¢iaS assets and liabilities are measured at amortised c05t. 27
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2021 18 FUNDS At1 January 2021 Incoming resources Outgoing resources Transfers G8ins I Ilossesl At31 Decernber 2021 Deslgrtated fuNds Emergency Mainlen8nce Fund Assisted Places Fund Stsff Fund Residents, Fund 750,0 750,000 500,000 500.000 4.940 620 14.9401 19,2281 8,608 1.258,608 5,560 114,1681 1,250.000 General funds Free Reserves T8ngible fLxed assets Inveslmerit property Merger reserwe 13.725,9641 11.756.163 11,404,328 110.581.4521 1419,0121 11,437,073) 412,536 7,589 14,332,572) 11,749,687 560,000 1,039,235 1,599,235 14,698 114,6981 8,604,897 11,404,328 111,000,464) 7,589 9.016.350 Total unrestricted fund$ 9,863,505 11,409,888 111,014,632) 7,589 10.266.350 Designated funds Emergency Maintenance Fund This fund has been set up to fund QuIred maintenance of the Lilian Faithfull Care Estate. Assisted Plac85 Fund This fund has b&en set up to 8llow the Charity lo help existing residen15 On they no longer afford to privately fund th8ir place at the home. It is envisaged that this fund will primarily be used to fund residen15 where th8r8 is a legislation change around funding and we will need to support them financially. Staff Fund This fund is m8de up ofdonation$ from relatives of residents who have oiven money as a thank you to th8 staff ol Lilian Faithfull Ca. R85idents' Fund This fund is made up of donations from latIveS of residents who have given rnoney to a5S15t residents during their lime at Lilian Faithfull Ca. 28
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2021 19 RESTRICTED FUNDS At 1 January 2021 At Transfer 31 DÈcÈmber in the year 2Q21 Incorning resources Outgoing resources Legacies Infection control grant 10,500 636,243 110,5001 1636,2431 643,743 1643,7431 Restricted Funds Infection Control Grant Government funding received via the Local Authority to SUPPDrt adult social Ca providers lo reduce the rate of COVID-19 Ir8nsmission in and between cale hotnes and support wider workforce S111ence. The Trustees consider that these funds were fully utilised in 2021. 20 ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Funds 2021 Total Funds 2020 Tangible fix8d assets Fixed asset investsrents Investment property Current assets Creditors due within one year Creditors due in mor8 than (8 year 11,749.687 657,026 1,599,235 1,700,247 11.561.828) 13,878.0171 11.756,163 643.376 560,000 2,077,587 11,610,803) 13,562,818) Total 10,266,350 9,863,505 21 RECONCILIATION OF NFf MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2021 2020 Net income for the period 402,845 324.810 Adjustment5 for- Depreciation charg85 IG8inslllosse$ on investments Dividends, interests and rents from Investments Decreasellincreasel in debtors ID8cr88s81lincreas8 in creditor5 690,958 17.5891 1116,1601 96,965 185.6861 670,477 50.109 151,3081 156.7391 233,742 Nel cash provided by operating activities 981,133 1,171.091 29
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER2021 22 ANALYSIS OF CASH AND CASH EQUIVALENTS 2021 2020 Cash in h8nd Cash held for inveStMent 1,074,219 17.904 1,354,594 9.771 Total cash and cash equlvalents 1,092.123 1.364,365 23 ANALYSIS OF CHANGES IN NET DEBT At 1 January 2021 Cash flows At 31 December 2021 Cash at bank and in hand Debt du8 within 1 year Debt due after l year 1.364.365 1231.4481 13.562.818) 1272,2421 136,9111 1315.1991 1.092,123 1268,3591 13.878,0171 12,429,901) 1624.3521 13,054,253) 24 PENSION COMMITMENTS The Charityoperates a defined contributvjn p8nsion sch8rne. The pension ¢ost charge for the year PsentS contrlbutlons payable by the Charity to the scheme and 8mounled lo £140.18412020- £140,235). At the end ol the year outstanding contributions amounted to £nil12020- £35.6471 as included within other creditor5. All pension charoes are charged to unr8stricted funds. in lin8 Wlth the fund oul of which the wages and salaries are paid. 25 OPERATING LEASE COMMITMENTS At 31 Decembei 2021 the Charity had cornmitm8nt5 to rnake future minimum lease payments under non- CnlIable operating lea5@s as follows.. 2021 2020 Land and buSldlngs Within 1 year Between 1 and 5 years After fflore than 5 years 57.068 144,624 29.814 104.349 Totsl 201.692 134,163 Plant and machinery Within 1 year Between 1 and 5 years After more than 5 year5 115.456 306,059 24,124 116.650 337,631 46,089 Total 445,639 500,370 30
LILIAN FAITHFULL CARE NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER2021 26 RELATED PARTYTRANSACTIONS At 31 Dècember 2021 the Charity owed £86412020- £8641 lo Lilian Faithfull Trading Limited. 115 subsidiary undertaking. The loan is interest free and has no fixed rep8yment term5. 27 POST BALANCE SHEET EVENTS There are no post b81ance Sheet Èvents to disclose. 31