2021-10-31-accounts - The Greatham Foundation Ltd

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INTRODUCTION	INTRODUCTION					Page
o	Message from the chair					3
o	Message from the director					5
o	Organisational details					6
TRUSTEES' ANNUAL REPORT (INCLUDING THE STRATEGIC REPORT)
o	About the charity
	Our charitable objectives
	Our vision, mission, and	values
	What we do
o	Our impact
	What we delivered and	achieved			during the year
	Our plans for the future					18
o	Financial review ofthe year
	Summary					22
	Results from charitable	activities				22
	Results from investment	activities				23
	Financial position					24
o	Structure, governance and management
	Formation, legal structure		and objectives			25
	Governing body and governance					25
	Statement of public benefit					27
	Risk management and principal			risks		28
	Statement oftrustees' responsibilities					31
	Statement ofdisclosure	to	auditors			31
INDEPENDENT AUDITOR'S REPORT						32
FINANCIAL STATEMENTS
o	Statement offinancial activities					36
o	Statement offinancial position					37
o	Statement ofcash flows					38
o	Notes to the financial statements					39

~	impact ofCovid-19-pressure	impact ofCovid-19-pressure	impact ofCovid-19-pressure	impact ofCovid-19-pressure	impact ofCovid-19-pressure	impact ofCovid-19-pressure		on	introduction ofemployee retention	initiatives-	initiatives-	initiatives-	initiatives-
	staff								employee ofthe month, improved
~	recruitment		marketplace.						communications (newsletter) Dec 2021
									introduction of "time and a half' for
									Christmas and New Year bank Holidays				in the
									care homes.
									one off "thank you" payment
									development ofcore infrastructure,		including
									Head of Operations Role
Disaster recovery			and	planning			(inc		developed ITrecovery plan working		with
IT)									ITPS.
~	computer system			failure		or loss			data backup procedures and security
	of data								measures in place and updated 2019
~	computer attack-Cyber					Crime			annual review ofinsurance cover
~	destruction		ofproperty,						business continuity/disaster recovery		plan in
	equipment,	records			through		fire,		place (to be reviewed)
	flood or similar damage								updated risk assessments, policies and
~	pandemic-impact			of	Covid-19			or	procedures in place
	similar-Reputational				damage,				infection control measures in place
	financial impact ofdecrease						in		liaison with stakeholders
	demand for services, make services more				guidelines difficult to				regular review of measures in place in response to the changing environment			and
	deliver								Government laws and guidelines.
~	position of Insurance				companies				insurance Wellbeing assessment/visit
	re: Covid-19								completed-no major issues.
									updated operational plan in place
Health,	safety and		environment						legal requirements met (The Charity
									Commission, Companies House, CQC,			Local
~	staff injury								Authority, Pension's regulator etc.)
~	product or	service liability							programme ofstaff training and developed
~	ability to operate			(see					induction
	Compliance		risks)						external Health and Safety Support
~	injury to beneficiaries				and the				commissioned
	public								Governance, Audit & Improvement		process
									in place (Care Homes)
									health and Safety Management Group		in place
									reports to Board ofTrustees.
									Croner H and Sservice purchase, including
									specific support for Care Homes.
									Covid-19 safe-risk assessments in place
									employee assistance Programme in place
									Chaplain appointed Spring 2021 (Support				for
									Staff Welfbeing)-Start date fuly 2021
Compliance with			legislation			and			identified key legal and
regulations around			social		care and				regulatory requirements.
housing									allocated responsibility for key compliance
									procedures
~	fines, penalties or			censure from					put in place compliance monitoring	and
	licensing or	activity regulators							reporting including development of
~	loss of licence to			undertake					governance, audit and improvement		policy
	activity (see	operational				risks)			and procedure
									29

							2021	2020
				Unrestricted	Restricted	Endowment
				funds	funds	funds	Total funds	Total funds
			Note	IE		6	6	E
Income and endowments
Donations and legacies			5	19,053			19,053	115,271
Charitable activities			6	4,120,354	36,356		4,156,710	4,068,872
Investment income			7	612,444		241,287	853,731	838,188
Total income				4,751,851	36,356	241,287	5,029,494	5,022,331
Expenditure
Expenditure on raising funds:
Investment management	costs		8	(231,099)		(157,133)	(388,232)	(446,170)
Expenditure on charitable	activities		9,10	(5,302,264)	(46,482)	(12,000)	(5,360,746)	(4,929,336)
Total expenditure				(5,533,363)	(46,482)	(169,133)	(5,748,978)	(5,375,506)
Total income less total
expenditure				(781,512)	(10,126)	72,154	(719,484)	(353,175)
Net unrealised gains/(losses)		on
investments			I I	207,845	14,652	2,719,802	2,942,299	1,057,598
Realised gains/(losses) on	disposal of
fixed assets				122		437,738	437,860	14,042
Net income/(expenditure)				(573,545)	4,526	3,229,694	2,660,675	718,465
Transfers between funds			23	498,778		(498,778)
Other recognised gains	and losses
(Increase)decrease in pension		fund deficit	21	51,000			51,000	(110,000)
Net movement in funds				(23,767)	4,526	2,730,916	2,711,675	608,465
Reconciliation of funds
Total funds brought forward				3,079,197	1,058,401	40,405,225	44,542,823	43,934,358
Total funds carried forward			23	3,055,430	1,062,927	43,136,141	47,254,498	44,542,823

				2021	2020
				E
Fixed assets
Tangible fixed assets			15	8,674,484	8,898,200
Investments			16	35,835,625	32,814,363
				44,510,109	41,712,563
Current assets
Debtors			18	324,909	407,558
Cash at bank and in hand				3,230,120	3,114,696
				3,555,029	3,522,254
Creditors: amounts	falling due within one year		19	(565,634)	(394,892)
Net current assets				2,989,395	3, 127,362
Total assets less current		liabilities		47,499,504	44,839,925
Creditors: amounts	falling due after more than one year		20	(92,006)	(93,102)
Provisions for liabilities			21,22	(153,000)	(204,000)
Net assets				47,254,498	44,542,823
Funds ofthe charity
Endowment funds				43,136,141	40,405,225
Restricted funds				1,062,927	1,058,401
Unrestricted funds				3,055,430	3,079,197
Total charity funds			23	47,254,498	44,542,823

				2021	2020
				6
Cash flows from operating	activities
Net income/(expenditure)				2,660,675	718,465
Adjustments for:
Depreciation oftangible fixed	assets			231,445	239,067
Net valuation (gains)/I osses on investments				(2,942,299)	(1,057,598)
Net (gains)/losses on disposal	oftangible	fixed assets		(437,860)	(14,042)
Dividends, interest and rents	from investments			(853,731)	(838,188)
Interest payable and similar changes				10,440	10,541
Increase/(decrease) in accrued	liabilities			110,464	(39,495)
Changes in:
Trade and other debtors —(increase)/decrease				82,649	80,725
Trade and other creditors —increase/(decrease)				60,165	(8 1,464)
Cash generated from/(used in) operating		activities		(1,078,052)	(981,989)
Interest paid				(10,440)	(10,541)
Net cash generated from/(used	in) operating		activities	(1,088,492)	(992,530)
Cash flows from investing	activities
Dividends, interest and rents from investments				853,731	838,188
Purchase oftangible assets				(22,536)
Proceeds from sale oftangible	assets			452,667	45,645
Purchases ofother investments				(236,096)	(116,320)
Proceeds from sale ofother investments				157,133
Net cash from investing activities				1,204,889	767,513
Cash flows from financing	activities
Loan repayments				(983)	(883)
Net cash used in financing activities				(983)	(883)
Net increase/(decrease) in cash and		cash equivalents		115,424	(225,900)
Cash and cash equivalents	at beginning		ofyear	3,114,696	3,340,596
Cash and cash equivalents	at end of	year		3,230,120	3,114,696

Donations		and	legacies
					Unrestricted	Total Funds	Unrestricted	Total Funds
					Funds	2021	Funds	2020
					E		E
Donations
Donations	and legacies				8,6(5	8,615	100,055	100,055
Sponsorship		and other
Sponsorship		and	other income		10,438	10,438	15,216	15,216
					19,053	19,053	115271
Income from charitable				activities
						Unrestricted	Restricted	Total Funds
						Funds	Funds	2021
						E	E	E
Residential		care				2,750,111		2,750,111
Community		services				830,832		830,832
Supported	almshouses					532,275	36,356	568,631
Other charitable			activities			7,136		7,136
						4,120,354	36,356	4,156,710
						Unrestricted	Restricted	Total Funds
						Funds	Funds	2020
						E		E
Residential		care				2,663,237		2,663,237
Community		services				845,808		845,808
Supported	almshouses					517,023	35,635	552,658
Other charitable			activities			7,169		7,169
						4,033,237	35,635	4,068,872

				Unrestricted	Endowment	Total Funds
				Funds	Funds	2021
				E	E
Income	from	investment	properties	596,550		596,550
Interest	and	dividends		15,894	241,287	257,181
				612,444	241,287	853,731
				Unrestricted	Endowment	Total funds
				Funds	Funds	2020
				E	E
Income	from	investment	properties	574,245		574,245
Interest	and	dividends		26,415	237,528	263,943
				600,660	237,528	838,188

					Unrestricted	Endowment	Total Funds
					Funds	Funds	2021
					E	E
Portfolio	management					157,133	157,133
Property	repairs	and	maintenance	charges	152,125		152,125
Supportcosts					78,974		78,974
					231,099	157,133	388,232
					Unrestricted	Endowment	Total Funds
					Funds	Funds	2020
					E
Portfolio	management					141,241	141,241
Property	repairs	and	maintenance	charges	232,771		232,771
Support	costs				72,158		72, 158
					304,929	141,241	446,170

			Unrestricted	Restricted	Endowment	Total Funds
			Funds	Funds	Funds	2021
					E	E
Residential	care		2,947,803			2,947,803
Community	services		748,871			748,871
Supported	almshouses		489,285	40,236		529,521
Grants			84,620		12,000	96,620
Fundraising	fund	costs	13,529			13,529
Support costs			i,o ie,42e	6,246		1,022,672
Other charitable		activities	1,730			1,730
			5,302,264	46,482	12,000	5,360,746
			Unrestricted	Restricted	Endowment	Total Funds
			Funds	Funds	Funds	2020
			E	E		E
Residential	care		2,547,650			2,547,650
Community	services		955,033			955,033
Supported	almshouses		354,743	34,839		389,582
Grants			50,000		3,000	53,000
Fundraising	fund	costs	12,008			12,008
Supportcosts			958,099	11,895		969,994
Other charitable		activities	2,069			2,069
			4,879,602	46,734	3,000	4,929,336

				Activities
				undertaken	Support	Total funds	Total fund
				directly	costs	2021	2020
				E	E	E	E
Residential		care		2,947,803	488,697	3,436,500	2,995,084
Community		services		748,871	329,003	1,077,874	1,276,043
Supported		almshouses		529,521	176,030	705,551	570,274
Grants				96,620	28,942	125,562	73,858
Fundraising		fund	costs	13,529		13,529	12,008
Other	charitable		costs	1,730		1,730	2,069
				4,338,074	1,022,672	5,360,746	4,929,336

						Unrestricted	Restricted	Endowment	Total Funds
						Funds	Funds	Funds	2021
						E	E		E
	Unrealised		gains/(losses)		on listed
	investments					207,845	14,652	2,719,802	2,942,299
						Unrestricted	Restricted	Endowment	Total Funds
						Funds	Funds	Funds	2020
									E
	Unrealised		gains/(losses)		on listed
	investments					(26,526)	(7,016)	1,091,140	1,057,598
12.	Net income
	Net income		is	stated after charging:
								2021	2020
									E
	Auditor's	remuneration						8,220	8,100
	Depreciation			oftangible	fixed assets			231,445	239,067

								2021	2020
								E	E
Wages and salaries								2,792,106	2,841,260
Social security costs								183,553	182,660
Employer	contributions	to defined	contribution		pension		schemes	52,070	51,239
Employer	contributions	to defined	benefit	pension		schemes		72,057	78,738
Operating	costs ofdefined benefit		pension	scheme				33,573	43,315
								3,133,359	3,197,212

The average h	ead count ofemployees during the year wa	s 164(2020: 182),analysed as follows:
		2021	2020
		No	No.
Management	and administration	12
Care services		149	168
Estare		3	3
		164	182

Tangible fixed assets
		Freehold
		property	Equipment	Total
		E		6
Cost
At I November 2020		13,032,575	210,109	13,242,684
Additions at cost			22,536	22,536
Transfer from other charity
Revaluation of almshouse	properties
Disposals		(38,038)	(28,200)	(66,238)
At 31October 2021		12,994,537	204,445	13,198,982
Depreciation
At I November 2020		4,164,646	179,838	4,344,484
Charge for the year		221,391	10,054	231,445
Disposals		(25,776)	(25,655)	(51,431)
At 31 October 2021		4,360,261	164,237	4,524,498
Carrying amount
At 31 October 2021		8,634,276	40,208	8,674,484
At 31October 2020		8,867,929	30,271	8,898,200

		Listed	Investment
		investments	properties	Total
		6	6
Cost or valuation
At I November	2020	21,396,113	11,418,250	32,814,363
Additions		236,096		236,096
Disposals		(157,133)		(157,133)
Fair value movements		2,942,299		2,942,299
At 31 October	2021	24,417,375	11,418,250	35,835,625
Impairment
At I November	2020 and 31 October 2021
Carrying amount
At 31October	2021	24,417,375	11,418,250	35,835,625
At 31 October 2020		21,396,113	11,418,250	32,814,363

exchange r	ate prevailing at the r	ate prevailing at the r	ate prevailing at the r	eporting date.
An analysis	of listed investments			by fund is as follows:	2021	2020
					6	6
Permanent	endowment	fund			23,096,752	20,322,857
Non-perinanent endowment			funds		145,145	120,256
Total endowment funds					23,241,897	20,443,113
Restricted	funds				68,489	53,858
Unrestricted	funds				1,106,989	899,142
					24,417,375	21,396,113

Endowment investments subject tototal return	Endowment investments subject tototal return	Endowment investments subject tototal return	Trust for investment	Unapplied total return	Total
			6	6
At 31 October 2020
Gift component ofthe permanent	endowment		18,035,230		18,035,230
Unapplied total return				2,269,505	2,269,505
Total at 31 October 2020			18,035,230	2,269,505	20,304,735
Movements in the reporting	period
Investment returns - dividends and interest				236,096	236,096
Investment returns —realised and and (losses)	unrealised	gains		2,693,199	2,693,199
Additions to trust for investment
Income repaid to unapplied total	return in year
Less: Investment management costs				(157,133)	(157,133)
Total movements in the reporting transfers	period before			2,772,162	2,772,162
Transfer from unapplied total return to maintain real value oftrust for investment			1,030,329	(1,030,329)
Net movements in the reporting period			1,030,329	1,741,833	2,772,162
At 31 October 2021
Gift component ofthe permanent	endowment		19,065,559		19,065,559
Unapplied total return				4,011,338	4,011,338
Total at 31 October 2021			19,065,559	4,011,338	23,076,897

18.	Debtors
				2021	2020
				E
	Trade debtors			195,107	282,030
	Prepaid	expenses		83,283	80,932
	Accrued	income and	sundry debtors	46,519	44,596
				324,909	407,558
19.	Creditors: amounts		falling due within one year
				2021	2020
	Trade creditors			295,724	234,051
	Accruals	and deferred	income	225,785	115,321
	Social security and other taxes			43,030	44,538
	Mortgage	loan		1,095	982
				565,634	394,892

2021	2020
E	E
92,006	93,102

					Pensions and
					similar
					obligations
					Note 22
					E
At	I November		2020		204,000
Decrease		in provision		during the year	(51,000)
At	31October		2021		153,000

Amounts recognised in the Statement ofFinancial Position	Amounts recognised in the Statement ofFinancial Position	As at 31October 2021	As at 31October 2020
			E
Fair value ofassets		3,686,000	3,361,000
Present value offunded	obligations	(3,839,000)	(3,565,000)
Net defined benefit	asset/(liability)	(153,000)	(204,000)

Asset class	Asset class		31 October 2021
			E
Diversified	growth	fund	2,121,000
Corporate	bonds		1,080,000
Index-Linked	Gilts		483,000
Cash			2,000
Total			3,686,000

			As at	As at
Change in	fair value ofscheme assets		31 October 2021	31 October 2020
			E
Fair value beginning	ofscheme assets atthe ofthe year		3,361,000	3,290,000
Interest on	assets		57,000	65,000
Employer contributions paid to scheme		in year	72,000	79,000
Contributions	by scheme participants
Benefits paid by scheme in year			(116,000)	(110,000)
Administration costs
Change due	to settlements
Return on scheme assets less interest			312,000	37,000
Fair value the year	ofscheme assets at the	end of	3,686,000	3,361,000

Change benefit	in present value ofdefined obligations	As at 31October 2021 6	As at 31October 2020 6
Defined scheme	benefit obligations ofthe atthe beginning ofthe year	3,565,000	3,384,000
Current	service cost	27,000	31,000
Contributions by scheme participants
Past service cost
Interest	cost	60,000	67,000
Benefits	paid by scheme in year	(I 16,000)	(I I 0,000)
Change due to settlemenrs
Experience (gain)/loss on defined benefit
obligation
Changes	to assumptions	303,000	193,000
Defined scheme	benefit obligations ofthe at the end ofthe year	3,839,000	3,565,000

Net amount recognised in the Statement ofFinancial Activities		Year ended 31October 2021 6	Year ended 31 October 2020 6
Total income/(costs) recognised in the year, as detailed below		(30,000)	(33,000)
Total re-measurement gains/(losses) year, as detailed below	in the	9,000	(156,000)
Employer contributions		72,000	79,000
Net amount recognised in the Statement ofFinancial Activities		51,000	(110,000)

				Year ended	Year ended
Costs/(income) recognised		in the	year	31October 2021	31October 2020
				6
Current service cost				27,000	31,000
Administration costs
Interest on liabilities				60,000	67,000
Interest on assets				(57,000)	(65,000)
Past service cost
Settlement cost
Total costs/(income) ear	recognised		in the	30,000	33,000

Re-measurement losses/(gains) recognised in the year	Year ended 31October 2021 6	Year ended 31October 2020 6
Loss/(gain) on scheme assets in excess of interest	(312,000)	(37,000)
Experience losses/(gains) on liabilities
Losses/(gains) from changes to demographic
assumptions
Losses/(gains) from changes to financial assum tions	303,000	193,000
Total re-measurement losses/(gains) recognised in the year	(9,000)	156,000

		31October 2021	31October 2020
Discount rate		1.75%pa	1.70%pa
Inflation (RPI)		3.40/ pa	3.00%pa
Inflation (CPI)		2.90%pa	2.10%pa
Salary increases		3.40% pa	3.00%pa
Pension increases - discretionary		1.40% pa	1.05%pa
Pension increases - CPI max 5%		2.80%pa	2.10%pa
Pension increases - RPI max 2.5%		2.30%pa	2.10%pa
Post retirement	mortality	53NA tables with CMI 2018projections using a	S3NA tables with CMI 2018projections using a
		long term improvement	long term improvement
		rate of 1.50% a	rate of 1.50% a
Commutation		Members are assumed to as cash at	take 20%oftheir pension retirement
Life expectancy	at age 65ofmale aged 45	24. 1	24.0
Life expectancy	at age 65 ofmale aged 65	22.4	22.3
Life expectancy 45	at age 65offemale aged	26.5	26.4
Life expectancy 65	at age 65offemale aged	24.8	24.7

			At.	At.				Gains	and		At
			Nov	2020	Income	Expenditure	Transfers	losses		31	Oct 2021
				6							6
General fund				263,789	4,734,277	(5,201,970)	(346,838)		258,967		(291,775)
Fundraising	fund			46,126	10,438	(13,528)					43,036
Building Fund				472,256			450,000				922,256
Development		fund		613,124		(22,825)					590,299
Extraordinary
repair fund			1,683,902		7,136	(295,040)	395,616				1,791,614
			3,079,197		4,751,851	(5,533,363)	498,778		258,967		3,055,430
Restricted	funds
			At					Gains	and		At'
			I Nov	2020	Income	Expenditure	Transfers	losses		31	Oct 2021
				E	6	6			6		6
The Charity	of
Emma Simpson		for
Almshouses			1,058,401		36,356	(46,482)			14,652		1,062,927
Endowment		funds
			At.					Gains	and		At
			I Nov	2020	Income	Expenditure	Transfers	losses		31	Oct 2021
			E		6			E			E
Permanent
Endowment	Fund		40,254,824		236,679	(157,133)	(498,778)	3,	132,651		42,968,243
Stockton Relief in
Need Fund				150,401	4,608	(I2,000)			24,889		167,898
			40,405,225		241,287	(169,133)	(498,778)	3,	157,540		43,136,141

24. Analysis ofne	t ass	ets between fu	nds
						2021
			Unrestricted	Restricted	Endowment
			funds	funds	funds	Total funds
			E		E	E
Fixed assets
Tangible fixed assets			40,214	853,986	7,780,284	8,674,484
Investments —investment		properties			11,418,250	11,418,250
Investments —listed	investments		1,106,989	68,489	23,241,897	24,417,375
			1,147,203	922,475	42,440,431	44,510,109
Net current assets
Debtors			324,909			324,909
Cash at bank and in	hand		3,230,120			3,230, 120
Creditors due within	one year		(565,634)			(565,634)
Inter-fund balances			(836,162)	140,452	695,710
			2,153,233	140,452	695,710	2,989,395
Total assets less current
liabilities			3,300,436	1,062,927	43,136,141	47,499,504
Creditors: amounts	falling	due after
more than one year			(92,006)			(92,006)
Provisions for liabilities			(153,000)			(153,000)
Net assets (total funds)			3,055,430	1,062,927	43,136,141	47,254,498
						2020
			Unrestricted	Restricted	Endowment
			funds	funds	funds	Total funds
			E		E
Fixed assets
Tangible fixed assets			30,277	875,883	7,992,040	8,898,200
Investments —investment		properties			11,418,250	11,418,250
Investments —listed	investments		899,144	53,837	20,443,132	21,396,113
			929,421	929,720	39,853,422	41,712,563
Net current assets
Debtors			407,558			407,558
Cash at bank and in	hand		3,114,696			3,114,696
Creditors due within	one year		(394,892)			(394,892)
Inter-fund balances			(680,484)	128,681	551,803
			2,446,878	128,681	551,803	3,127,362
Total assets less current
liabilities			3,376,299	1,058,401	40,405,225	44,839,925
Creditors: amounts	falling	due after
more than one year			(93,102)			(93,102)
Provisions for liabilities			(204,000)			(204,000)
Net assets (total funds)			3,079,197	1,058,401	40,405,225	44,542,823