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2022-03-31-accounts

THE PILGRIMS FRIEND GROUP

Group Financial Statements For the year ended 31 March 2022

COMPANY NUMBER 07169875 CHARITY NUMBER 1134979

Contents of the financial statements

Page 1 - 7 Trustees’ report 8 Consolidated statement of financial activities 9 Consolidated balance sheet 10 Company balance sheet 11 Consolidated statement of cash flows 12 - 30 Notes to the financial statements 31 Statutory information 32 - 34 Independent auditor’s report

Trustees’ report

The trustees present their report, together with the financial statements of the group for the year ended 31 March 2022. The trustees' report incorporates the directors’ report and the strategic report prepared for the purposes of company law. The statutory information is listed on page 31.

MISSION REVIEW

As a Christian charity we hold to the value of prayer in that God answers the prayers of people who ask in faith, and we know that we cannot deliver against our charitable objects to advance the Christian faith amongst older people through our homes and schemes apart from God’s help. During the year we have maintained daily times of prayer with most managers and trustees present.

These daily times, our occasional mini conferences over Zoom; and our in-person conference for managers and trustees in September have shown that we are blessed with a cohort of leaders whose faith and trust in God is strong, who support and encourage each other, and who are deeply committed to supporting spiritually the people who live with us.

During the year we developed, with our colleagues, four values, based on the Bible, that sum up how we want to live out our Christian faith: Compassion; Community; Transparency; and Excellence. These values are helping us engage with our staff colleagues whether or not they have a personal commitment to the Christian faith.

Our people have excelled

The big picture overview is a story of our staff colleagues’, and particularly our managers’, outstanding resilience, and performance in the face of the challenges of Covid 19, for which we give thanks to God.

The financial year started in April 2021 with the charity (and country) just coming out of the second wave lockdown, with outbreaks and significant numbers of people still dying even as the drive to vaccinate frail and vulnerable people was picking up pace. The chart below reminds us of the depth of the valley that we were in as we started the year,

----- Start of picture text -----
Number of deaths involving COVID‐19 occurring in care homes, by day of
notification 1 Jan to 31 Dec 2021, England. Source CQC
500
400
300
200
100
0
1/1/21 1/2/21 1/3/21 1/4/21 1/5/21 1/6/21 1/7/21 1/8/21 1/9/21 1/10/21 1/11/21 1/12/21
----- End of picture text -----

Our people in our homes, schemes and support teams were outstanding and this was recognised by relatives whom we surveyed during this period.

The remarkable effectiveness of the vaccines is evident from the chart, but the challenge of the pandemic persisted albeit in a different form as infections climbed and staff absences through isolation and illness exacerbated underlying challenges of recruiting and retaining enough people.

Page 1

----- Start of picture text -----
300,000
Number of UK Daily Covid Cases Reported by ONS for
Financial Years 20/21 and 21/22
250,000
200,000
150,000
100,000
50,000
0
1/4/20 1/5/20 1/6/20 1/7/20 1/8/20 1/9/20 1/10/20 1/11/20 1/12/20 1/1/21 1/2/21 1/3/21 1/4/21 1/5/21 1/6/21 1/7/21 1/8/21 1/9/21 1/10/21 1/11/21 1/12/21 1/1/22 1/2/22 1/3/22
----- End of picture text -----

Our managers and leaders in our homes and schemes and in our support teams were again outstanding as, in the teeth of these challenges, the quality of our care has remained high (based on our internal audits) and the occupancy in our homes recovered rapidly and faster than expected.

During the year we completed sufficient of our job evaluation project and additional survey work that identified gaps opening particularly at a home level between our pay and local market rates. To try and improve retention and recruitment (and prevent it deteriorating) this led us to bring forward the annual pay increases for hourly paid staff from April 2022 to January 2022.

There is no doubt that our people deserved financial recognition to go alongside the letters and messages of commendation that they received.

Our Projects have delivered

As the timeline for Covid attached shows this has been a demanding year operationally for our front-line teams and those who work in support as regulations, guidance and conditions have changed regularly and significantly.

In addition to these ongoing challenges, we have progressed and delivered several significant planned projects:

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Significant events have been responded to

Exceptional situations have arisen that required us to respond:

Scale of our impact

We ended the year with 224 of 250 (89%) residential care places filled whereas a year earlier we had 206 of 253 (81%) places. During the year we lost 19 places with the sale of Florence House, and gained 16 more places in the Chippenham area with the opening of Middlefields, replacing Leonora. At the end of the year three out of four households were in use at Middlefields (equating to 36 places) and by the autumn of 2022 we pray that the one remaining household will be open.

Housing occupancy (excluding Strathclyde House) was 86% down from 88% on 31 March 2021. This means that we had 165 people living with us in housing on 31 March 2022, down from 169 on 31/3/21.

FINANCIAL REVIEW

During the year ended 31 March 2022 the group made a net surplus of £74,000 compared to £550,000 in the previous year. The Group benefited from £1.8 million from donations, legacies, and overage on a site that had been sold some years ago.

The key measure of performance used in the charity’s management accounts is its earnings before interest, tax, depreciation amortisation and rent (EBITDAR).

EBITDAR for the year is reported as £987,000 against £1,435,000 the previous year. Our budget for the financial year was a deficit of £700,000 as we anticipated a difficult year emerging from Covid.

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STATUTORY INFORMATION

Our objects and how we seek to fulfil them

The Pilgrims Friend Group is a non-trading charitable company which is the sole corporate member of Pilgrims' Friend Society, Pilgrim Homes and Pilgrim Homes Trust. In turn, Pilgrims’ Friend Society is the sole corporate member of Strathclyde House Trust. The governing document is the articles of association.

The Pilgrims Friend Group exists to research and understand the context for the delivery of Christian Care and it sets policies and provides direction for the charities in its group. The Board of this charity makes significant decisions for the running of the group. All of the Members of the Board of Trustees of The Pilgrims Friend Group are also on the board of one or more of the Group’s subsidiary entities. The trustees of the Pilgrims Friend Group are distributed so that we have the capacity to manage conflicts of interest while transacting business between charities.

Pilgrims’ Friend Society and The Pilgrim Friends Group have identical objects with the primary object being “the advancement of the Christian faith and the relief of poverty, sickness, disablement, old age and infirmity for the public benefit to the glory of God”. Strathclyde House Trust has similar objectives to these two charities. The objects of Pilgrim Homes and its successor charity Pilgrim Homes Trust are: “The relief either individually or collectively of poverty, sickness, disablement, and infirmity of older people of the Protestant Christian faith including by the provision and maintenance of residential care and housing”.

Pilgrims' Friend Society advances the Christian faith by operating Christian care and housing for older people and by producing resources that inspire, encourage, and equip others in their work of caring for older people.

Pilgrims' Friend Society operates all our homes and schemes in the group in the same way to ensure the same quality of Christian Care and to give us economies of scale in our operations.

Pilgrim Homes Trust (and Pilgrim Homes before it) fulfils its objects through the ownership of care homes and housing schemes which are operated on its behalf by Pilgrims' Friend Society. Pilgrim Homes Trust is the group charity building the first of our Renewal Programme homes at Chippenham (Middlefields House).

The Annual Review section of this report sets out how our work provides accommodation and care to older people through the provision of Christian care in a residential setting to those who are over 65 and in need of such accommodation or care as a result of their age, poverty, sickness or disablement.

Our charities advance the Christian faith by ensuring that beneficiaries have every opportunity to pursue their Christian lives. Regular devotions, opportunities to pray and be supported in prayer, Christian services, Bible studies, opportunities to share fellowship and express Christian beliefs and values through crafts and activities are available in all our homes and schemes.

Domiciliary care for residents in our extra care housing scheme at Royd Court in Mirfield is provided by Pilgrim Care, part of Pilgrims' Friend Society.

The benefits of our work are people living safe and fulfilled lives in their later years when they need Christian care and support.

Pilgrims' Friend Society and Strathclyde House Trust (of which it is the sole member) provide a safe, secure environment and a Christian community with opportunities for fellowship with like-minded Christian people.

Public Benefit

The charity’s trustees have considered the guidance regarding public benefit when considering and planning their objectives and activities for the year.

Employment Policies

Pilgrims' Friend Society always selects staff colleagues based on their ability to do the job on offer based on a “Person Specification” for each post. We are fully compliant with Equalities legislation and recognise our obligations, under Disability Discrimination legislation, to consider reasonable modifications to allow people living with a disability to take up

Page 4

employment. We have a genuine occupational requirement for some posts to be filled by Protestant Christians, who agree with our doctrinal basis, to maintain our founding Christian ethos. These issues are dealt with fully under the charity’s Equal Opportunities policies.

All our homes hold regular meetings for all colleagues which are designed to impart information regarding developments within the charity and to give staff opportunity to raise issues. Where any specific proposal is likely to have a significant impact on individual members of staff, such staff are consulted in line with current legislation and good practice. We conduct a charity wide staff survey and feedback to colleagues on how we respond to the issues raised.

We are in regular communication with our staff colleagues on all matters relating to their terms and conditions of employment. The managers of our homes meet at least twice a year as the “senior team” and this includes discussion with the trustees as to the future direction of the Society. Significant changes to the work of the Society are typically preceded by a consultation with colleagues in our homes and our volunteers sometimes involving a visit by a member of the executive team and a trustee. We encourage colleagues’ involvement in the Society’s performance and their awareness of the factors affecting our work through a monthly prayer bulletin that is posted on the noticeboards in all our homes and schemes.

Volunteers

Our volunteers are a vital aspect of our work. As well as raising some of the finances we need they also make them go much further through their volunteering. We are particularly grateful to visitors who provide much needed comfort and company to residents and those who lead the regular acts of worship in our homes. The Charity Commission requires we state a number for these volunteers, and we estimate this to be around 200.

Future developments

These are discussed in the Annual Review section of this report.

Related parties

The trustees of the charity consider the following to be related parties:

  1. Key Management Personnel of Pilgrims' Friend Society

  2. The following charities:

  3. a. Pilgrim Homes (charity no. 242266)

  4. b. Pilgrims’ Friend Society (charity no. 1045920, company no. 3027071)

  5. c. Pilgrim Homes Trust (charity no. 1183226, company no. 11685624)

  6. d. Strathclyde House Trust – (charity no. SC025550, company no. SC169848)

  7. PFG Trading Limited - a limited company

  8. Aged Pilgrims' Friend Society Trust Limited - a limited company which holds title to the properties owned by Pilgrim Homes Trust.

Investment policy

These accounts include £1.6 million of investments which are properties owned by Pilgrim Homes which are not suitable to be let to beneficiaries of the Charity and are therefore let as investments to third parties. Some of these properties are close to, or indeed within the curtilage of our care homes and such properties are therefore difficult to dispose of and are, where possible, let to staff members.

The cost of the Renewal Programme at Chippenham (building Middlefields House) has been funded to date by the sale of investments, investing surplus cash reserves, and the sale of property. Further sales of property at Redbourn and Brighton will fund the remainder of the cash outlay, and because the timing of these cash inflows are difficult to predict, £2.5m was borrowed from Lloyds Bank in June 2021.

Given the need for cash, the trustees take the view that it is better to retain the majority of the charity’s funds in bank deposits, rather than investing in other types of assets.

Principal sources of funding

The group expects to continue to raise most of its income from fees charged to residents of its homes and by charges for its

Page 5

housing. The Renewal Programme will be funded by borrowing, social investment, the sale of some property assets and donations.

As mentioned above, the group agreed a bridging loan facility of £2.5million with Lloyds Bank to cover timing differences and other short-term impacts of Covid on the group. This comprises a £1.5million Coronavirus Business Interruption Loan under the government facility; and a further £1 million interest only loan with Lloyds Bank, which was fully repaid by the year end.

Accommodation charges policy

As with the other related charities, this charity sets the level of charges for accommodation in its care homes based on local market conditions. It does not discriminate against older Christians who may not have the resources to meet the costs of their own care and we accept residents whose fees are met on their behalf by local authorities, notwithstanding the shortfall that then arises. In these circumstances we seek a ‘top-up' from family or friends where possible.

Risks and regulations

The charity maintains a comprehensive register of risks which is reviewed by the Key Management Personnel at their monthly meetings and by trustees at every trustee meeting. Risks are rated as to both their likelihood and severity. The greatest risks faced by the Charity are:

Risk Actions to mitigate
Pandemic or other similar event seriously impairs
the charity’s ability to deliver care and head office
services to the homes		 Contingency and continuity plans; pandemic policy
The charity is unable to recruit staff with the
necessary skills		 Apprenticeships, career paths and action plans in place.
Remuneration policy. Lobbying through the National Care Forum
when changes to immigration rules threaten staff availability.
Reduced occupancy in the homes means they are
no longer viable		 Effective occupancy marketing. Performance data monitored and
acted on.
Financial drain on the charity from the pandemic Close monitoring of cash, liquidation of illiquid investments, use of
bank loans
Price inflation and supply chain delays mean that
the charity is unable to provide an adequate level
of care		 Fixed price contracts are negotiated where possible, fee income
increases take account of expected price inflation
The charity’s reputation or ability to operate is
impaired bydata beingleaked or corrupted		 Standard information technology controls are in place, such as
backups and access controls
Inflation and the cost of borrowing mean that the
renewalprogramme is not achievable.		 Trends are monitored and alternative sources of funding are
sought.

Reserves

The Charity holds funds of £39,325,000 at the year end. Restricted funds account for £32,121,000 of this and most of these reserves can be used to fund operational costs of a proportion of the operating entities (the Pilgrim Homes). Of the general and designated funds, £7,265,000 could only be realised by disposing of tangible fixed assets or programme related investments. This means that the reserves (that is, the part of the charity’s unrestricted funds that is freely available to spend on any of the charity’s purposes) is a negative £61,000; a shortfall of £1,061,000 against a target of £1,000,000. To bridge this gap, the charity has access to £2.5m of loan finance (drawn down in June 2021) which it will repay using proceeds from the sale of investment properties and a former home which is now closed. Proceeds sufficient to repay the loan are expected to be realised by the end of September 2022.

Trustee recruitment and training

Trustees are appointed at a board meeting following a nomination process. Candidates must meet a strict set of specifications concerning personal competence, specialist skills, availability, and Christian belief. Once the Board and new trustee decide to proceed with a formal appointment there follows an induction period to familiarise the new trustee with the charity's operations. Newly appointed trustees meet with the Chief Executive and members of the Senior Management Team to provide an introduction to the affairs of the charity, key operational methods and the current strategic plan. Trustee performance is subject to an annual review by the Chairman.

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Section 172 statement

The directors consider the key stakeholders of the group to be the people living in our homes and schemes and its employees. In their decision-making the directors consider both the short and long term impacts. The directors promote the success of the group for the benefit of its stakeholders by:

In addition, the directors foster the group’s business relationships with suppliers and maintain a reputation for high standards of business conduct by specifying values and a code of conduct for staff. The impact of the group’s operations on the community and environment is considered when planning new sites.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of The Pilgrims Friend Group for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable group and of the income and expenditure of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT OF DISCLOSURE TO AUDITOR

So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information of which the charity’s auditor is unaware. Additionally, the trustees individually have taken all the necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the charity’s auditor is aware of that information.

AUDITORS

Jacob Cavenagh & Skeet were the charitable company’s auditors during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees and signed on their behalf by

Michael R Abbott

Mr Michael Abbott (Chairman)

Date: 21/7/22

Page 7

Consolidated statement of financial activities (incorporating the income and expenditure account) For the year ended 31 March 2022

Note
Income from:
Donations and legacies
2
Investments
3
Charitable activities
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net losses on investments
11
Net (expenditure)/income
9
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 2022 Total
£000
1,262
654
13,638
300
15,854
25
15,483
15,508
272)
74
-
74
39,251
39,325		 2021
Unrest-
ricted
Funds
£000
207
2
4,559
297
5,065
22
6,377
6,399
-

(1,334)
-
(1,334)
8,538
7,204		 Rest-
ricted
Funds
£000
1,055
652
9,079
3
10,789
3
9,106
9,109
( 272)
(
1,408
-
1,408
30,713
32,121		 Unrest-
ricted
Funds
£000
1,650
48
3,919
10
5,627
29
5,541
5,570
-

57
-
57
8,481
8,538		 Rest-
ricted
Funds
£000
732
313
8,355
21
9,421
33
8,891
8,924
(4)

493
-
493
30,220
30,713		 Total
£000
2,382
361
12,274
31
15,048
62
14,432
14,494
(4)
550
-
550
38,701
39,251

All of the activities are continuing. There were no recognised gains or losses other than those stated above.

The notes on pages 12 to 30 form part of these financial statements.

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Consolidated balance sheet As at 31 March 2022

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Stock
13
Debtors and prepayments
14
Cash at bank and in hand
Creditors: Amounts falling due
within one year
15

Net current assets
Total assets less current liabilities
Creditors: Amounts falling due
after more one year
16
Total assets less current liabilities
Funds:
17
Unrestricted funds
17&18
Restricted funds (including revaluation reserve
of £0.378m (2021: £0.551m))
19&20
Total Funds		 2022
£000
1,855
2,752
3,402
8,009
(1,764)
 £000
32,697
1,633
34,330

6,245
40,575
( 1,250)
39,325
7,204
32,121
39,325		 2021
£000
2,676
1,925
2,623
7,224
(1,937)		 £000
31,245
2,719

33,964
5,287

39,251

-
39,251

8,538
30,713

39,251

The financial statements were approved by the Trustees on 21 July 2022 and signed on their behalf by:

Michael R Abbott Max Robinson S J Hammersley
M Abbott M Robinson S Hammersley
Chairman Trustee Chief Executive

Company Registration No: 07169875

The notes on pages 12 to 30 form part of these financial statements.

Page 9

Company balance sheet As at 31 March 2022

2022 2021
Note £000
£000		 £000 £000
Fixed assets
Investments 11 43 43
43 43
Current assets
Cash at bank and in hand - -
- -
Creditors: Amounts falling due
within one year - -
Net current assets - -
Total assets less current liabilities 43 43
Funds:
Unrestricted funds 43 43
Restricted funds - -
Total Funds 43 43
The company’s net income for the year was £nil (2021: £nil).
The financial statements were approved by the Trustees on 21 July 2022 and signed on their behalf by:
Michael R Abbott John Edwards S J Hammersley
M Abbott J Edwards S Hammersley
Chairman Finance Committee Chairman
Chief Executive
Company Registration No: 07169875

The notes on pages 12 to 30 form part of these financial statements.

Page 10

Consolidated statement of cash flows For the year ended 31 March 2022

2022 2021
£000 £000
Cash flows from operating activities
Trading and donations
Net income 74 550
Depreciation 871 885
Investment income included in investing activities ( 654) ( 361)
(Gain)/loss on disposal of fixed assets ( 101) 2
Donation of property - (1,130)
Realised losses/(gains) on disposal of investments 16 ( 78)
Movement in fair value of investments 256 82
Net cash provided by/(used in) trading and donations 462 (50)
Working capital movements
Decrease/(Increase) in housing stocks 821 ( 863)
Transfers from stock to tangible fixed assets ( 864) -
(Increase)/decrease in debtors ( 827) 66
(Decrease)/increase in creditors ( 563) 735
Net cash (used in) working capital movements (1,433) (62)
Net cash (used in) operating activities ( 971) (112)
Cash flows from investing and financing activities
Tangible fixed assets
Payments on additions of tangible fixed assets (1,211) ( 825)
Payments for land and construction of Middlefields House (1,132) (4,246)
Proceeds on disposal of tangible fixed assets 985 7
Net cash (used in) tangible fixed assets (1,358) (5,064)
Fixed asset investments
Investment income received 654 361
Payments on additions of fixed asset investments - ( 37)
Proceeds on disposal of fixed asset investments 814 3,336
Net cash provided by fixed asset investments 1,468 3,660
Financing activities
Proceeds from new loans 2,675 -
Repayment of borrowings (1,035) -
Net cash provided by financing activities 1,640 -
Net cash provided by/(used in) investing and financing activities 1,750 (1,404)
Net cash inflow/(outflow) 779 (1,516)
Cash and cash equivalents at 1 April 2021 2,623 4,139
Cash and cash equivalents at 31 March 2022 3,402 2,623

The notes on pages 12 to 30 form part of these financial statements.

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Notes to the financial statements For the year ended 31 March 2022

1. ACCOUNTING POLICIES

The company is registered as a charitable company limited by guarantee incorporated in England and Wales and is governed by its Memorandum and Articles of Association. Its registered office is 175 Tower Bridge Road, London SE1 2AL.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1a. Basis of accounting

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for Charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The financial statements have been prepared on the historical cost convention, modified to include certain investments and financial instruments at fair value.

1b. Consolidation

The consolidated financial statements combine the results of the charity and its subsidiary undertakings which are as follows:

Name Activities
The Pilgrims Friend Group Parent charity with no assets, income or expenditure of its own
Pilgrims' Friend Society Operation of care homes and sheltered accommodation
Pilgrim Homes (formerly
Aged Pilgrims' Friend Society) Operation of care homes and sheltered accommodation
Pilgrim Homes Trust Operation of care homes and sheltered accommodation
Strathclyde House Trust Operation of sheltered accommodation
PFG Trading Limited Trading activities connected with the group

The transactions and balances of the subsidiary undertakings are included in the consolidated accounts on a line by line basis with intragroup transactions eliminated on consolidation.

Where the charitable company has been installed as sole trustee of a charitable subsidiary during the period the fair value of the assets and liabilities brought into the group is recognised within voluntary income.

A separate Statement of Financial Activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.

1c. Going concern

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

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1. ACCOUNTING POLICIES (continued)

1d. Tangible fixed assets

Fixed assets are recorded at historic cost. Expenditure on existing properties is capitalised when works result in an enhancement of economic benefits of the asset. Other expenditure on the properties is charged to the income and expenditure account. Where appropriate, the historic cost less accumulated depreciation of any replaced components is released from the asset and recognised as a loss on disposal.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life. The following rates are used on a straight-line basis:

Land nil
Buildings 100 years
Roof 70 years
Electrics 40 years
Windows, doors, heating and plumbing 30 years
Bathrooms and lifts 20 years
Kitchens – sheltered 20 years
Boilers 15 years
Kitchens – residential 10 years
Furniture and equipment – sheltered 10 years
Hard landscaping 5 years
Motor vehicles 4 years
Computer equipment 4 years

1e. Investments

Investments are comprised of investment properties. Investment properties comprise properties, all owned by Pilgrim Homes (formerly Aged Pilgrims' Friend Society) which are not suitable for occupation by beneficiaries of the charities within the group and are therefore let on commercial terms to either staff members or third parties. All investments are revalued every year with the investment gains or losses shown in the Statement of Financial Activities.

1f. Income

Housing and care income is recognised on the basis of the period that the service was provided to the resident. Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Where material assets are donated to the company for its use, these are capitalised at the estimated market value at the date of the gift and included under income.

For Job Retention Scheme government grant income, the income is recognised in the period to which the underlying furloughed staff costs relate to. For performance related Covid-19 LA care grants, the income is recognised when the conditions of the grants have been met.

1g. Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Charitable expenditure includes all support costs in respect of the company’s activities.

1h. Governance costs

This comprises expenditure on compliance with statutory legal requirements and is included in charitable activities.

Page 13

1. ACCOUNTING POLICIES (continued)

1i. Fund accounting

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

Designated funds comprise unrestricted funds that have been set aside by the trustee for particular purposes. The aim and use of each designated fund are set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund are set out in note 18 to the financial statements.

1j. Leases

Rentals payable under operating leases are dealt with on a straight-line basis over the lease term. Total lease repayments have been disclosed over the remaining life of the lease.

1k. Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

1l. Stocks

Stocks are stated at the lower of cost and net realisable value.

1m. Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

1n. Cash and cash equivalents

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

1o. Creditors and provisions

Creditors and provisions are recognised where the group has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount. Concessionary loans are included at historic cost.

1p. Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 14

2. DONATIONS AND LEGACIES

Unrestricted
Restricted
Funds
Funds
£000
£000
Donations
179
97
Gift of net assets from other entities
-
-
Legacies
28
958
207
1,055
3.
INCOME FROM INVESTMENTS
Unrestricted
Restricted
Funds
Funds
£000
£000
Bank interest
2
-
Rental of investment properties
-
68
Overage receipt (note 28)
-
584
Dividends
-
-
2
652
4.
INCOME FROM CHARITABLE ACTIVITIES
Unrestricted
Restricted
Funds
Funds
£000
£000
Care fees
3,732
7,300
Housing income
334
698
Extra Care Housing lease sales
493
523
Covid-19 LA care grants
-
558
4,559
9,079
5.
INCOME FROM OTHER SOURCES
Unrestricted
Restricted
Funds
Funds
£000
£000
Gain on disposal of tangible fixed assets
250
-
Commercial trading operations
6
-
CBIL loan interest
35
-
Covid-19 grants: CJRS
6
3
297
3		 Total
2022
£000
276
-
986
1,262
Total
2022
£000
5
68
584
-
654
Total
2022
£000
11,032
1,032
1,016
558
13,638
Total
2022
£000
250
6
35
9
300		 Total
2021
£000
731
1,130
521
2,382
Total
2021
£000
11
140
195
15
361
Total
2021
£000
10,063
864
659
688		 Total
2021
£000
731
1,130
521
2,382
12,274

Total
2021
£000
-
2
-
29
31

Page 15

6. EXPENDITURE ON RAISING FUNDS

Unrestricted
Restricted
Funds
Funds
£000
£000
Publicity and deputation
22
3
7.
EXPENDITURE ON CHARITABLE ACTIVITIES
Unrestricted
Restricted
Activities split by fund:
Funds
Funds
£000
£000
Housing
408
687
Care
4,726
7,279
Cost of Extra Care leases sold
493
523
Education and training
143
-
Raising awareness
77
-
General support costs
235
41
6,082
8,530
Depreciation and loss on disposal
295
576
6,377
9,106		 Total
2022
£000
25
Total
2022
£000
1,095
12,005
1,016
143
77
276
14,612
871
15,483		 Total
2021
£000
62
Total
2021
£000
985
11,228
654
209
109
360
13,545
887
14,432

Page 16

7. EXPENDITURE ON CHARITABLE ACTIVITIES (continued)

Extra care
Education
Raising
General
Analysis by activity:
Housing
Care
leases
& training
awareness
support
£000
£000
£000
£000
£000
£000
Salaries and wages
418
7,780
-
82
27
1,493
Food
99
504
-
-
-
-
Administrative expenses
29
301
-
13
2
572
Repairs and maintenance
215
748
-
-
-
-
Heat and light
68
284
-
-
-
-
Other expenses
103
446
-
48
48
1
Cost of Extra Care leases sold
-
-
1,016
-
-
-
Professional fees
-
137
-
-
-
181
Governance costs: audit fees
-
-
-
-
-
36
Allocated administrative costs
163
1,805
-
-
-
(2,007)
(
1,095
12,005
1,016
143
77
276

Buildings depreciation
171
493
-
-
-
General depreciation
22
154
-
-
31
Loss on disposal
-
-
-
-
-
-

1,288
12,652
1,016
143
77
307

During the year the auditors were paid £23,000, including irrecoverable VAT, for non-audit services (2021: £14,000).
Support costs (less allocated administrative costs):
Staff costs
Depreciation
Loss on disposal
Professional fees
Other administrative expenses		 Total
2022
£000
9,800
603
917
963
352
646
1,016
318
36
39)

14,612

664
207
-

15,483

1,493
31
-
217
573
2,314		 Total
2021
£000
8,924
565
919
834
300
1,039
654
278
32
-
13,545
664
221
(2)
14,432
1,215
32
2
204
488
1,941

Page 17

8. STAFF COSTS

Wages and salaries
Redundancy costs
Social security costs
Pension costs
Agency staff costs
The average number of staff employed in the period on headcount was:
Homes
Head Office
The average number of staff employed in the period on a full-time equivalent basis was:
Homes
Head Office		 2022

£000

8,005
-
550
282
963
9,800
No
469
32
501
No
300
32
332		 2021
£000
7,226
25
484
273
916
8,924

No
449
29
478
No
284
27
311

The emoluments of three employees exceeded £60,000 in the year ended 31 March 2022 (2021: two). One of those employees earned between £60,000 and £70,000 and two earned between £80,000 and £90,000 (2021: one between £60,000 and £70,000 and one between £80,000 and £90,000).

No remuneration was paid to any trustee during the year (2021: £nil). Travel expenses of £nil (2021: £nil) were reimbursed to 0 trustees (2021: 0 trustees) for items incurred wholly, exclusively and necessarily in the course of the charity’s activities.

The total aggregate remuneration of Key Management Personnel for the year was £464,078 (2021: £472,484).

The total remuneration (including gross salary, employer’s National Insurance, benefits in kind and employer’s pensions contributions) paid to family members of the trustees was £60,550 (2021: £59,815).

9. NET INCOME/(EXPENDITURE)

NET INCOME/(EXPENDITURE)
2022 2021
£000 £000
This is stated after charging:
Depreciation 871 885
(Gain)/loss on disposal of tangible fixed assets (250) 2
Loan interest 42 -
Auditors’ remuneration for audit services 36 32
Auditors’ remuneration for other services 23 14

Page 18

10. TANGIBLE FIXED ASSETS

Freehold and Assets in Furniture,
leasehold the course of fittings and Motor
properties construction equipment vehicles Total
£000 £000 £000 £000 £000
Cost
As at 1 April 2021 32,152 4,919 1,860 105 39,036
Additions 646 1,132 542 23 2,343
Disposals ( 996) - ( 118) ( 20) ( 1,134)
Transfer from stock 864 - - - 864
Transfer 6,051 **(6,051) ** - - -
As at 31 March 2022 38,717 - 2,284 108 41,109
Depreciation
As at 1 April 2021 6,597 - 1,132 62 7,791
Charge for the year 664 - 181 26 871
Released on disposals **( 121) ** - ( 109) ( 20) ( 250)
As at 31 March 2022 7,140 - 1,204 68 8,412
Net book value
As at 31 March 2022 31,577 - 1,080 40 32,697
As at 31 March 2021 25,555 4,919 728 43 31,245

The properties detailed above are owned by Pilgrims’ Friend Society, Pilgrim Homes Trust and Strathclyde House Trust, which are subsidiaries of The Pilgrims Friend Group. Details of cost or deemed cost of the properties is detailed below and on the following page:

Pilgrims’ Friend Society
Freehold property:
Bethany Christian Home, Plymouth
Ernest Luff Care Home, Walton-on-the-Naze
Ernest Luff House, Walton-on-the-Naze
Emmaus Care Home, Harrogate
Permanent landscape, Ernest Luff Care Home
Florence House, Peterborough
Carey Gardens, Kirby Muxloe
Strathclyde House Trust
Freehold property:
Strathclyde House, Skelmorlie
Carried forward		 2022
2021
£000
£000
589
584
2,223
2,078
1,576
1,552
877
877
34
34
-
652
1,130
1,130
6,429
6,907
1,711
903
8,140
7,810		 2022
2021
£000
£000
589
584
2,223
2,078
1,576
1,552
877
877
34
34
-
652
1,130
1,130
6,429
6,907
1,711
903
8,140
7,810
6,907
903
7,810

Page 19

10. TANGIBLE FIXED ASSETS (continued)

Pilgrim Homes Trust
Freehold property:
Dorothea Court, Bedford
Leonora Home, Chippenham
Middlefields House Chippenham
Great Finborough Home
Great Finborough Housing
Evington Home, Leicester
Shottermill Home, Haslemere
Milward Home, Tunbridge Wells
Wantage Home
Royd Court, Mirfield
Pilgrim Gardens, Evington, Leicester
Land at Churston Ferrers
Redbourn retirement flats
Brighton Home (at deemed cost)
Assets in the course of construction (including land already purchased):
Middlefields House Chippenham
Long leasehold property:
Crosfield Court, Watford
Brought forward from previous page
Total properties and assets in the course of construction		 2022
£000
4,398
327
7,366
1,803
2,542
2,263
1,498
1,384
1,703
3,448
2,081
-
1,300
464
30,577
-
30,577
-
30,577
8,140
38,717		 2021
£000
4,379
327
-
1,674
2,437
2,208
1,459
1,290
1,588
3,484
2,081
60
1,300
464
22,751
6,367

29,118
143
29,261
7,810

37,071
The net gain on disposal of tangible fixed assets for the year is made up of:
£000
Pilgrim Homes Trust
Gain on disposal of Land at Churston Ferrers 180
Loss on disposal of Crosfield Court, Watford (25)
Loss on disposal of equipment, fixtures and furniture ( 6)
149
Pilgrim’s Friend Society
Gain on disposal of Florence House 63
Strathclyde House Trust
Gain on disposal of Flats 8 and 17 38
250

Page 20

11. INVESTMENTS - GROUP

Valuation
As at 1 April 2021
Additions
Disposals
Revaluation
As at 31 March 2022
Held by
Restricted funds
Historic cost
As at 31 March 2022
Investment properties comprise the following:
At market value:
No’s 12 and 16 Harding Close, Redbourn (sold during the year)
House on Pilgrims’ Way, Great Finborough
60 Royd Court, Mirfield
90a Wood Lane, Chippenham
90 Wood Lane, Chippenham
92 Wood Lane, Chippenham
House on Liphook Road, Haslemere		 Investment
properties
£000
2,719
-
( 830)
( 256)
1,633
1,633
1,254
2022
2021
£000
£000
-
830
280
238
210
199
224
324
212
308
327
475
380
345
1,633
2,719

The investment properties were revalued at the open market value as at 31 March 2022 by the Director of Property Services, Andy Walsh ARIBA.

The net losses on investments for the year is made up of:

The net losses on investments for the year is made up of:
£000
Realised loss on sale of Redbourn flats ( 15)
Revaluation of investment properties (257)
**(272) **
12. INVESTMENTS – COMPANY ONLY
2022 2021
£000 £000
Investment in PFG Trading Ltd 43 43
43 43

Page 21

13. STOCK

2022
£000
Stock of flats held for resale (see below)
1,780
Preliminary costs of new building
60
Stock of books
15
1,855
Strathclyde House
Royd Court
Pilgrim Gardens
Number
Cost
Number
Cost
Number
Cost
No
£000
No
£000
No
£000
As at 1 April 2021
16
1,281
5
613
5
709
Sold
( 5)
( 493)
( 4)
(523)
-
-
(
Transferred to fixed assets
(11)
( 864)
-
-
-
-
(
Bought back
4
414
5
643
-
-

As at 31 March 2022
4
338
6
733
5
709		 2021
£000
2,603
58
15
2,676
Total
£000
2,603
1,016)
864)
1,057
1,780

Contingent liabilities on housing stock

Under the terms of the sale of properties at Strathclyde House, the Strathclyde House Trust has the right of first refusal when freehold flats are offered for sale and it is the practice of the charity to exercise that right to maintain the ethos and atmosphere on the site. The total potential value of the flats not held by the charity at 31 March 2022 is £3.8 million.

Under the terms of the sale of leases at Royd Court, Pilgrim Homes Trust is committed to repurchase leases should leaseholders cease to be residents. The total potential value of the flats not held in stock at 31 March 2022 is £3.45 million.

Under the terms of the sale of leases at Pilgrim Gardens, Pilgrim Homes Trust is committed to repurchase leases should leaseholders cease to be residents. The total potential value of the flats not held in stock at 31 March 2021 is £1.31 million.

14. DEBTORS AND PREPAYMENTS

DEBTORS AND PREPAYMENTS
Arrears of local authority and residents’ contribution
Amounts owed from Pilgrim Gardens service charge
Amounts owed from Royd Court service charge
Amounts owed from Strathclyde service charge
Other debtors and prepayments		 2022
2021
£000
£000
315
161
116
80
111
72
60
151
2,150
1,461
2,752
1,925

1,925

15. CREDITORS AND ACCRUALS: amounts falling due within one year

CREDITORS AND ACCRUALS: amounts falling due within one year
Short terms loans
Trade creditors
Taxation and social security
Other creditors and accruals		 2022
2021
£000
£000
425
-
152
322
127
119
1,060
1,496
1,764
1,937

1,937

Page 22

16. CREDITORS AND ACCRUALS: amounts falling due after more than one year

Bank loans

2022 2021
£000 £000
1,250 -

The bank loan is secured on Dorothea Court and Brighton properties. Interest on the bank loan is payable at 2.6% above base rate over the period until May 2027.

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

General
Designated
Restricted
Total
Funds
Funds
Funds
Funds
£000
£000
£000
£000
2022
Fixed assets
Tangible
5,784
1,481
25,432
32,697
Investments
-
-
1,633
1,633
Current assets
2,512
441
5,056
8,009
Current liabilities
(1,744)
( 20)
-
( 1,764)
Non-current liabilities
(1,250)
-
-
( 1,250)
Total Net Assets
5,302
1,902
32,121
39,325
2021		 General
Designated
Restricted
Total
Funds
Funds
Funds
Funds
£000
£000
£000
£000
2022
Fixed assets
Tangible
5,784
1,481
25,432
32,697
Investments
-
-
1,633
1,633
Current assets
2,512
441
5,056
8,009
Current liabilities
(1,744)
( 20)
-
( 1,764)
Non-current liabilities
(1,250)
-
-
( 1,250)
Total Net Assets
5,302
1,902
32,121
39,325
2021		 General
Designated
Restricted
Total
Funds
Funds
Funds
Funds
£000
£000
£000
£000
2022
Fixed assets
Tangible
5,784
1,481
25,432
32,697
Investments
-
-
1,633
1,633
Current assets
2,512
441
5,056
8,009
Current liabilities
(1,744)
( 20)
-
( 1,764)
Non-current liabilities
(1,250)
-
-
( 1,250)
Total Net Assets
5,302
1,902
32,121
39,325
2021		 General
Designated
Restricted
Total
Funds
Funds
Funds
Funds
£000
£000
£000
£000
2022
Fixed assets
Tangible
5,784
1,481
25,432
32,697
Investments
-
-
1,633
1,633
Current assets
2,512
441
5,056
8,009
Current liabilities
(1,744)
( 20)
-
( 1,764)
Non-current liabilities
(1,250)
-
-
( 1,250)
Total Net Assets
5,302
1,902
32,121
39,325
2021		 General
Designated
Restricted
Total
Funds
Funds
Funds
Funds
£000
£000
£000
£000
2022
Fixed assets
Tangible
5,784
1,481
25,432
32,697
Investments
-
-
1,633
1,633
Current assets
2,512
441
5,056
8,009
Current liabilities
(1,744)
( 20)
-
( 1,764)
Non-current liabilities
(1,250)
-
-
( 1,250)
Total Net Assets
5,302
1,902
32,121
39,325
2021
Fixed assets
Tangible 5,960 664 24,621 31,245
Investments - - 2,719 2,719
Current assets 2,249 1,602 3,373 7,224
Current liabilities
 (1,724)
 (213) -
(		 1,937)
Total Net Assets 6,485 2,053 30,713 39,251

18. DESIGNATED FUNDS

Brought
Net assets
Carried
forward at 1
gifted/
forward at 31
April 2021
Income
Expenditure
transfers
March 2022
£000
£000
£000
£000
£000
2022
Strathclyde House Trust
2,053
676
(827)
-
1,902
2,053
676
(827)
-
1,902
2021		 Brought
Net assets
Carried
forward at 1
gifted/
forward at 31
April 2021
Income
Expenditure
transfers
March 2022
£000
£000
£000
£000
£000
2022
Strathclyde House Trust
2,053
676
(827)
-
1,902
2,053
676
(827)
-
1,902
2021		 Brought
Net assets
Carried
forward at 1
gifted/
forward at 31
April 2021
Income
Expenditure
transfers
March 2022
£000
£000
£000
£000
£000
2022
Strathclyde House Trust
2,053
676
(827)
-
1,902
2,053
676
(827)
-
1,902
2021
Futures Fund 199
218
(263)
(154)		 -
Strathclyde House Trust 2,113
613
(673)
-		 2,053

2,312
831
(936)
(154)		 2,053

Page 23

19. a) RESTRICTED FUNDS – PILGRIM HOMES

19.
a) RESTRICTED FUNDS – PILGRIM HOMES
Brought
forward at 1
2022
April 2021

Funds restricted by Pilgrim Homes articles:
£000
General unrestricted funds
Pilgrim Homes Fund
3,254
Designated Funds
Operational Assets Equity Fund
23,906
Operational Risk Reserve
1,030
Property Emergency Repair Fund
50
Total designated funds restricted by Pilgrim Homes articles
24,986
Pilgrim Homes Restricted Funds
St Albans Home
441
Lucy McNeil Home
1,849
Homes Voluntary Support Funds (see note 19c)
88
Total restricted funds restricted by Pilgrim Homes articles
2,378
Total restricted funds – Pilgrim Homes
30,618
19.
b) RESTRICTED FUNDS – GENERAL
NYCC Grant
1
Faith in Later Life
-
Homes Voluntary Support Funds (see note 19c)
8
Local Homes Project Funds
15
Carey Gardens
65
Covid-19 LA Grants Fund
-
Dementia Fund
6
Total restricted funds - general
95
Total restricted funds
30,713		 Carried
Revaluations
forward at 31
Income
Expenditure
and transfers
March 2022
£000
£000
£000
£000
10,100
(8,548)
(1,392)
3,414
-
-
1,119
25,025
-
-
-
1,030
-
-
-
50
-
-
1,119
26,105
85
-
-
526
-
-
-
1,849
27
( 1)
2
116
112
( 1)
2
2,491
10,212
(8,549)
( 271)
32,010
-
( 1)
-
-
10
-
-
10
8
( 1)
( 1)
14
-
-
-
15
-
-
-
65
558
(558)
-
-
1
-
-
7
577
( 560)
( 1)
111
10,789
(9,109)
( 272)
32,121
25,025
1,030
50
26,105
526
1,849
116
2,491

32,010
-
10
14
15
65
-
7
111
32,121

Page 24

19. c) RESTRICTED FUNDS – HOMES VOLUNTARY SUPPORT FUNDS

Brought Carried
forward at 1 Revaluations forward at 31
April 2021 Income Expenditure and transfers March 2022
2022 £000 £000 £000 £000 £000
Funds restricted by Pilgrim Homes articles:
Chippenham 3 - - - 3
Great Finborough 34 13 ( 1) 13 59
Evington 15 5 - ( 2) 18
Tunbridge Wells 5 - - ( 1) 4
Wantage 10 7 - ( 3) 14
Shottermill 20 2 - ( 5) 17
Bedford 1 - - - 1
Total funds restricted by Pilgrim Homes articles 88 27 ( 1) 2 116
Other restricted funds
Ernest Luff Care 1 - - - 1
Bethany Christian Home 3 - - ( 1) 2
Emmaus House 2 - - - 2
Florence House 2 - - - 2
Kirby Muxloe - 5 - - 5
Middefields - 3 ( 1) - 2
Total Homes Voluntary Support Funds 96 35 ( 2) 1 130

Page 25

20. a) RESTRICTED FUNDS – PILGRIM HOMES

Brought
Carried
forward at 1
Revaluations
forward at 31
April 2020
Income
Expenditure
and transfers
March 2021
2021
£000
£000
£000
£000
£000		 Brought
Carried
forward at 1
Revaluations
forward at 31
April 2020
Income
Expenditure
and transfers
March 2021
2021
£000
£000
£000
£000
£000		 Brought
Carried
forward at 1
Revaluations
forward at 31
April 2020
Income
Expenditure
and transfers
March 2021
2021
£000
£000
£000
£000
£000		 Brought
Carried
forward at 1
Revaluations
forward at 31
April 2020
Income
Expenditure
and transfers
March 2021
2021
£000
£000
£000
£000
£000		 Brought
Carried
forward at 1
Revaluations
forward at 31
April 2020
Income
Expenditure
and transfers
March 2021
2021
£000
£000
£000
£000
£000		 Brought
Carried
forward at 1
Revaluations
forward at 31
April 2020
Income
Expenditure
and transfers
March 2021
2021
£000
£000
£000
£000
£000
Funds restricted by Pilgrim Homes articles:
General unrestricted funds
Pilgrim Homes Fund 8,386 8,542 (8,094)
 (5,580) 3,254
Designated Funds
Operational Assets Equity Fund 15,992 - - 7,914 23,906
Operational Risk Reserve 1,030 - - - 1,030
Property Emergency Repair Fund 50 - - - 50
Futures Fund 2,338 - -
 (2,338) -
Total designated funds restricted by Pilgrim Homes articles 19,410 - - 5,576 24,986
Pilgrim Homes Restricted Funds
St Albans Home 441 - - - 441
Lucy McNeil Home 1,849 - - - 1,849
Homes Voluntary Support Funds (see note 19c) 66 36
 (14) - 88
Total restricted funds restricted by Pilgrim Homes articles 2,356 36
 (14) - 2,378
Total restricted funds – Pilgrim Homes 30,152 8,578 (8,108)
 (4) 30,618

20.
b) RESTRICTED FUNDS – GENERAL
NYCC Grant 1 - - - 1
Faith in Later Life 41 84
(		 125) - -
Homes Voluntary Support Funds (see note 19c) 7 4
(		 3) - 8
Local Homes Project Funds 15 - - - 15
Carey Gardens - 65 - - 65
Covid-19 LA Grants Fund - 688
(		 688) - -
Dementia Fund
 4 2 - -
 6
Total restricted funds - general
 68 843
(		 816) -
 95
Total restricted funds 30,220 9,421 (8,924)
 (4) 30,713

Page 26

20. c) RESTRICTED FUNDS – HOMES VOLUNTARY SUPPORT FUNDS

Brought Carried
forward at 1 Revaluations forward at 31
April 2020 Income Expenditure and transfers March 2021
2021 £000 £000 £000 £000 £000
Funds restricted by Pilgrim Homes articles:
Chippenham 1 4 ( 2) - 3
Great Finborough 24 10 - - 34
Evington 17 9 (11) - 15
Tunbridge Wells 3 2 - - 5
Wantage 3 7 - - 10
Shottermill 18 3 ( 1) - 20
Bedford - 1 - - 1
Total funds restricted by Pilgrim Homes articles 66 36 (14) - 88
Other restricted funds
Ernest Luff Care - 1 - - 1
Bethany Christian Home 2 1 - - 3
Emmaus House 5 - ( 3) - 2
Florence House - 2 - - 2
Total Homes Voluntary Support Funds 73 40 (17) - 96

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21. FURTHER DETAILS ABOUT RESTRICTED AND DESIGNATED FUNDS

Pilgrim Homes Fund

This heading includes the reserves of Pilgrim Homes and the Pilgrim Homes Restricted Fund which were transferred from those charities to Pilgrim Homes Trust on 31 March 2020.

Operational Assets Equity Fund

Established to reflect the value of fixed asset properties owned by Pilgrim Homes Trust which would not be capable of disposal without affecting the ongoing work of the charity.

Operational Risk Reserve

This fund consists of funds required to ensure the continuity of care in the event of a major disruption to the operation of the charity.

Property Emergency Repair Fund

This fund has been established within Pilgrim Homes to meet the costs of emergency repairs to that charity's properties.

Futures Funds

The trustees have agreed to designate all legacies received over £100,000 to these funds, which would then be available to meet the costs of redeveloping the properties owned by the group. The balance was transferred out last year to meet the costs of the Middlefields development.

Strathclyde House Trust Fund

This represents the value of the assets held within Strathclyde House Trust.

St Albans and Lucy McNeil Home Funds

These funds relate to the receipt of donations and the proceeds of various fundraising activities for the purpose of establishing new homes.

Watford funds

During 2004, Pilgrim Homes became responsible for the management of the various funds which constitute the Watford Tabernacle Almshouse Trust. The site was then sold, and suitable accommodation was found for the two remaining residents. The funds were utilised in the year for the purchase of the Redbourn flats and a transfer to the general fund was made.

Faith in Later Life

This represents donations from the Outlook Trust and a number of partner charities for use towards the costs of the ‘Faith in Later Life’ initiative mentioned in the Trustees' report. This initiative is in the course of being incorporated as a separate charity and following incorporation the balance of funds held will be transferred to this new charity.

Local Homes Project Funds

These represent the amounts raised and spent by local homes towards specific locally agreed initiatives within specific homes.

Dementia Fund

This fund is utilised to assist in meeting the costs of new initiatives to better look after our residents with dementia.

Homes Voluntary Support Funds

Homes Voluntary support funds represent donations made by supporters for the purpose of improving care at specific homes. These funds are also available, in the event of a home making a trading loss in a financial year, to reduce the loss sustained.

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21. FURTHER DETAILS ABOUT RESTRICTED AND DESIGNATED FUNDS (continued)

Covid grants

This relates to grants receive by local authorities to deal with increased costs of dealing with the pandemic (e.g. staff and personal protective equipment).

Carey Gardens

This represents a donation to fund substantial capital improvements at Carey Gardens, as a supplement to the sinking fund contributions paid by residents.

22. LEASING COMMITMENTS

Operating leases

The charitable company’s total future minimum lease payments under operating leases at 31 March 2022 were payable as set out below:

as set out below:
2022 2021
£000 £000
Within one year 38 95
Within two to five years 84 -
122 95
The operating lease charges for the year were:
2022 2021
£000 £000
Land and buildings 88 85
Hire of plant and machinery 85 101
173 186

The lease over 175 Tower Bridge Road, London expired on 31 December 2014. Since that date the charity has continued to pay rent at the existing annual rate of £67,000. The charity is required to give 3 months’ notice under Section 27 of the Landlord & Tenant Act 1954 of its intention to vacate the premises.

23. PENSION COMMITMENTS

The pension cost charge represents contributions payable by the group to the pension funds. There were contributions of £49,000 due to the fund at the period end (2021: £20,000).

The Society also makes a small number of ex gratia pension payments to former employees. The annual commitment to make these payments has been reducing over the past few years and currently stands at around £3,000 per annum. A few years ago the trustees considered whether to accrue for this liability but, given the amounts payable, the age of those receiving a pension and the complexity of determining an appropriate reserve, no provision was made.

24. CAPITAL COMMITMENTS

The subsidiary company, PFG Trading Ltd, has engaged Midas Construction Limited as sub-contractor for the development at Middlefields, a site in Chippenham, and entered into a building contract sum of £5,403,109 in 2019-20. At the year end there was £141,893 outstanding, which has yet to be invoiced.

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25. CONTINGENT LIABILITITY

A gift of £500,000 was made to Strathclyde House Trust by the Souter Charitable Trust in June 2019. This gift was made subject to a repayment clause which stated that in the event that Strathclyde House was to be disposed of by the charity within a period of the ten years commencing 3 June 2019, Strathclyde House Trust would be obliged to repay a proportion of the gift to the Souter Charitable Trust. The amount due to be repaid reduces by £50,000 for each complete year that Strathclyde House is owned by the Pilgrim Friends Group. At the date of these accounts, the maximum repayment due would be £400,000. The Pilgrim Friends Group has no plans to dispose of Strathclyde House.

26. RELATED PARTY TRANSACTIONS

Details of trustees' and key management personnel and remuneration are disclosed in note 8 to the financial statements.

27. LIFE TENANCY

In 2012 the charity was notified of a legacy which included a share of a freehold property, which is subject to a life tenancy. The conditions for recognition of this income have not been met and therefore this legacy is not included as income in the accounts. The estimated value of the legacy is unknown at present.

28. WELLSBOROUGH OVERAGE RECEIPT

An overage agreement entered into on the sale of the site of the former Wellsborough Care Home has resulted in a cash receipt of £584,000 (2021: £195,000) which has been recognised as income in the statement of financial activities. This is the final amount to be received under the terms of the agreement.

29. CHURSTON FERRERS OVERAGE

The sale of the land at Churston Ferrers included an overage agreement stating that Pilgrim Homes Trust will receive payment if planning permission is granted on the land disposed of within the next 30 years.

30. COMPANY LIMITED BY GUARANTEE

The organisation is a charitable company limited by guarantee and has no share capital. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

31. POST BALANCE SHEET EVENTS

The group acquired the trade and net assets of Koinonia care home and Melbourne Hall Home Trust from 1 April 2022. Melbourne Hall has closed as a care home and the property is now on the market. Koinonia is a care home in Worthing, which will be run by Pilgrims’ Friend Society.

The Leonora care home plus the three neighbouring investment properties in Chippenham have been put up for sale for £1,280,000.

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Statutory information

DIRECTORS AND TRUSTEES

Alan Copeman (Chairman until 31 March 2022) Bryan Jarvis (Vice-Chairman) John Edwards Andrew Symonds (Vice-Chairman) Michael Abbott (Chairman from 1 April 2022) Sheila Warnes Max Robinson Robin Turnbull Genefer Espejo Philip Oliver Dr Judy McLaren

COMPANY SECRETARY

Debbie Buggs

REGISTERED OFFICE

175 Tower Bridge Road London SE1 2AL

COMPANY NUMBER 07169875 CHARITY NUMBER 1134979

BANKERS

Lloyds Bank plc 25 Gresham Street London EC2V 7HN

AUDITORS

Jacob Cavenagh & Skeet Chartered Accountants 5 Robin Hood Lane Sutton Surrey SM1 2SW

KEY MANAGEMENT PERSONNEL

The Key Management Personnel of the charity were the Trustees and the members of Senior Management Team whose names and responsibilities are listed below:

Stephen Hammersley Chief Executive Officer Maureen Sim Director of Operations Debbie Buggs Director of Finance and Company Secretary Andy Walsh Director of Property Services Joshua Field Director of Human Resources Alexandra Davis Director of Marketing

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Independent auditor’s report to the trustees of The Pilgrims Friend Group

OPINION

We have audited the financial statements of The Pilgrims Friend Group (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated Statement of Financial Activities, the consolidated and company’s Balance Sheets, the consolidated Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report or the strategic report included with the trustees' report.

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

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees' responsibilities statement set out in the trustees’ report, the trustees' (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 145 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to charity financial reporting, employment, health & safety and care and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

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We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.

We determined that the principal risks were related to:

In response to the risks identified we designed procedures which included, but were not limited to:

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

USE OF OUR REPORT

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

P Newton

Paul Newton FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet

Chartered Accountants Statutory Auditor

Date: 25 July 2022

5 Robin Hood Lane Sutton Surrey SM1 2SW

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