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2021-03-31-accounts

COMPANY REGISTRATION NUMBER: 07534989 CHARITY REGISTRATION NUMBER: 1147077

Leeds Centre for Integrated Living Company Limited by Guarantee Financial Statements

31 March 2021

Leeds Centre for Integrated Living

Company Limited by Guarantee

Financial Statements

Year Ended 31 March 2021

Pages
Trustees' Annual Report (Incorporating the Director's Report) 1 to 15
Independent Auditor's Report to the Members 16 to 21
Statement of Financial Activities (Including Income and
Expenditure Account) 22
Statement of Financial Position 23
Statement of Cash Flows 24
Notes to the Financial Statements 25 to 37

Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year Ended 31 March 2021

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2021.

Reference and Administrative Details

Registered charity name Leeds Centre for Integrated Living

Charity registration number 1147077 Company registration number 07534989 Principal office and registered Cartelli House office 2 Arthur Street Stanningley Leeds LS28 6JY

The Trustees

Ms J Fisher Ms C Womack Mr R D Moriarty Mr M S Raja Ms L W Cheng Auditor Sagars Accountants Ltd Chartered accountants & statutory auditor Gresham House 5-7 St Paul's Street Leeds LS1 2JG

Structure, Governance and Management

Governing Document

The company is governed under its Articles of Association, which include the company's charitable objects. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Legal Structure

Leeds CIL was formerly part of Leeds City Council's Adult Social Care section. Leeds CIL was incorporated as a Company Limited by Guarantee on 18 February 2011 and the company started trading as a Disabled People's User-led Social Enterprise on 4th April 2011. The company acted as a charity from incorporation and obtained charitable status on 1st May 2012.

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Structure, Governance and Management (continued)

Directors / Trustees

A minimum of 75% of Leeds CIL Board Directors, who are also charity Trustees, must be disabled people. All current Directors / Trustees are people living in Leeds. All the Directors / Trustees have experience of living in mainstream society and dealing with the disabling barriers that can cause social exclusion. The Board has a wide range of relevant personal experience, as well as having experience of working with Council senior officers, NHS senior officers and dealing with the constraints placed on local authorities and health services, including financial constraints. The Directors / Trustees also include people with business experience.

The Directors / Trustees agreed to set up a membership scheme during the company's first financial year from which future Directors / Trustees could be appointed as and when required to fulfil specific roles. The Articles of Association make provision for such appointments.

All the Directors / Trustees give their time voluntarily. Expenses regarding making meetings accessible for the Directors / Trustees are given in note 15 to the accounts. These expenses include accessible transport and personal assistance during meetings.

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Structure, Governance and Management (continued)

Risk Management

The principal risks to Leeds CIL as a going concern are financial. The company's main income is from a contract with Leeds City Council. The Council has had to accommodate a large reduction in its income since 2011 and this situation has been compounded by the Coronavirus pandemic. The company is therefore ensuring that we provide extremely good value for money and has again exceeded the targets in the contract during the 2020/21 financial year. We are also providing social value for the council and citizens of Leeds and meeting our charitable objects by enabling local disabled and older people and families with disabled children who need help with daily living to live active lives and participate in mainstream society. We have broadened our income by providing services for Personal Health Budget (PHB) recipients and 'self-funders' who need our services but are not eligible for local authority support or choose not to use local authority support. We operate sound financial management overseen by our Chief Executive Officer and Office Manager, seeking advice from our accountants as required.

Risk management within the company consists of a proactive approach to health and safety by identifying risks and putting procedures in place to minimise them. We have purchased a comprehensive company insurance package, covering all areas of operation, including the increasing risk of cyber crime. A system of internal management controls has been put in place, including levels of responsibility for monitoring and authorising financial transactions. Ongoing business continuity planning enabled us to quickly move most staff to home working during the Coronavirus pandemic and to ensure service provision was maintained.

Management and Service Delivery

The day-to-day management of the company and its service provision is delegated by the Directors / Trustees to the Chief Executive Officer, who works with a senior management team. The Chief Executive Officer reports to the Directors / Trustees at Board meetings. The senior management team are:

Susan Morrell Chief Executive Officer Dawn Lynch Office Manager Andrew McDermott Service Development Manager Alison Payne Finance Support Coordinator

Related Parties

In so far as it is complimentary to the company's charitable objects, the company is guided by national and local policy regarding the aims of the Disabled People's Movement and central and local government and health service provision, particularly regarding the direction of travel for service provision for disabled and older people and families with disabled children. This includes the provision of Direct Payments, Personal Budgets and Personal Health Budgets. Whilst Leeds CIL is fully independent of Leeds City Council, we remain a key partner in their delivery of personalised services, which furthers our charitable objectives.

Leeds CIL has a pension scheme that is part of the West Yorkshire Pension Fund, through obtaining admitted body status.

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Objectives and Activities

Leeds CIL Vision

'To ensure that all disabled and older people in Leeds can choose where they live and how they live'.

Leeds CIL Mission

'To be the gateway to Independent Living for disabled and older people and families with disabled children in Leeds, guiding people to the support and services that they can use to achieve their goals'.

The key motivation for the vision and mission statements is an acknowledgement of the fact that in the UK many disabled and older people are still not able to make the same choices as other citizens about where or how they live. The statements demonstrate a clear ambition to contribute social value to the city by promoting social inclusion for disabled and older people and families with disabled children in Leeds and by providing practical support and services to achieve that outcome. Disabled people created the CIL model on which our services are based and reducing dependency on segregated services is a crucial aspect of this model. We ensure that our customers can choose to use mainstream services and facilities and can be active citizens, carrying out the social roles that have often been denied to disabled people in the past, such as being a parent, student, volunteer and/or employee. When disabled people carry out these roles families and communities benefit from their involvement and they become role models for disabled children. The Vision & Mission statements have and will continue to play a central role in Leeds CIL's operations and in meeting our charitable objects.

The company's charitable objects as set out in the Articles of Association are:

To promote social inclusion for the public benefit among disabled and older people who are or may be socially excluded due to disability or age by:

(1) meeting and facilitating the support needs of disabled and older people;

(2) promoting and increasing the opportunities for independent living available to disabled and older people;

(3) assisting disabled and older people to make choices and access the services and support they may require to live independently in the community with appropriate support;

(4) supporting and empowering disabled and older people so that they may carry out social roles (for example, without limitation, parent, employee, student, friend and partner); and

(5) otherwise preventing the social exclusion of disabled and older people.

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Objectives and Activities (continued)

Activities that contribute towards meeting the objects

Public Benefit

The Leeds CIL Directors / Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit to ensure that all our activities contribute to meeting our charitable objects and deliver public benefit. Our services have all been set up to deliver public benefit by enabling disabled and older people to achieve supported independent living and to contribute to their local communities. Our Theory of Change outcomes include both individual customer outcomes and contributions to the wider society.

Equality and Diversity in our service provision

Leeds CIL services are available citywide for disabled and older people and families with disabled children and/or adults who need support to live in mainstream society and be active citizens. We have no age limits for people using our services. We monitor categories of people using our services to check that we are reaching out to all the diverse communities in Leeds. We also ensure that our services are accessible to people who have access requirements or whose first language is not English, including Deaf people who use British Sign Language. Leeds CIL has a diverse staff team, which includes people who are representative of the local people we serve including: people from diverse communities, disabled people and people living with a long-term medical condition, parents/carers of disabled children, older people and carers of adult family members.

Services and Accessible Facilities

Leeds CIL provides a range of services that meet our Charitable Objects by enabling our customers to obtain and manage the support they need to live in mainstream society. Most of our customers are people referred from Leeds City Council's Adults & Health department and Children's and Young Peoples Services and Leeds Continuing Healthcare. The majority of these people either receive Personal Budgets or Direct Payments from the Council or Personal Health Budgets from Continuing Healthcare that they can use to set up support that will meet their assessed needs. Leeds CIL can also provide our services to people who use their own money to pay for any personal support they need. These 'self-funders' can be referred to Leeds CIL from the Council following a Council assessment of their needs or they can be people who approach Leeds CIL independently to ask for assistance. The main Leeds CIL services are:

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Objectives and Activities (continued)

Brokerage Service

Leeds CIL can provide advice and support, which is often known as 'brokerage', to people who want help to identify and arrange any independent living support they need or a family member needs, if the customer is a parent or carer acting on behalf of another person. The customer remains in control and at the centre of the assistance provided, including making informed choices.

This support can include assisting customers to produce a plan of what changes they want to make to improve their or their family member's life and how they will pay for this if required. The plan also includes information on how the person needing support will keep themselves safe in terms of general health and safety and freedom from abuse. If the customer is receiving funding from the Council or Continuing Healthcare to be used to meet their assessed needs, the support plan has to be approved by the Council or Continuing Healthcare. The service can then help customers to find and access support that is citywide and/or local, formal and/or informal. This can be paid and/or free resources, services and support that customers may want to use and activities they may enjoy. Wherever possible mainstream services and support are identified that involve people in their communities and reduce social isolation. Where paid for support is required the customer is supported to obtain best value for any services they buy.

The customer must set up a separate bank account for any funding received from the Council or Continuing Healthcare. Some people have difficulty doing this, for example some people with learning difficulties or dementia and people who have a poor credit history. Leeds CIL has set up a Supported Bank Account Service in which a bank account is opened and administered on the customer's behalf. This service therefore removes a specific barrier that can prevent disabled and older people and families with disabled children and adults choosing supported independent living.

Recruitment and management of support workers

Some people who need personal support from another person for themselves or for their disabled child or for a disabled adult they care for, in their home and / or when they go out in the community, choose to employ their own worker usually called a Personal Assistant (PA). Leeds CIL can help customers with all aspects of recruiting and managing one or more PAs, including:

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Objectives and Activities (continued)

Payroll Service

Leeds CIL has a payroll service for customers who employ their own PAs. The service enables the customer to carry out all tasks in line with employment legislation, financial regulations, tax and pension requirements, as follows:

Training and Development Service (TDS)

This service was set up during 2014, following consultation with PA employers, Skills for Care and Leeds Adult Social Care about what training and development activities would enable PA employers and PAs to successfully carry out their roles. Consultation identified that training opportunities for PA employers and PAs were very limited, difficult to book and only covered general issues and skills rather than those required to enable a positive, effective, safe and rewarding PA employer and employee relationship in which PA employers could be confident as employers and PAs could feel confident in their role and feel valued as a PA whilst gaining new skills. The service is therefore a key aspect of growing the market of PAs in Leeds so that more PAs are available for people who want to employ their own support workers.

This service is not part of the Leeds City Council contract but results in considerable added value to the contract and to the success of Personal Health Budgets (PHBs) where the recipient employs a PA. The service is funded by a Skills for Care grant for social care funded PA employers and their PAs and funding included in individual PHBs for this purpose. Leeds CIL has successfully applied for a Skills for Care grant each year since the service was set up. This demonstrates Leeds CIL's track record in the effective use of grant funding and ability to comply with recording and reporting requirements for restricted funding.

Consultancy and partnership

Leeds CIL has a wealth of experience in the field of independent living support and identifying and removing barriers that exclude disabled and older people. Leeds CIL staff can generate income for service development by working with other agencies that support disabled and older people and families with disabled children and being paid for their expertise and the time they spend doing this work. The outcomes of such work also directly benefit disabled and older people who need such services to live independently in their communities.

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Objectives and Activities (continued)

Accessible meeting facilities

Leeds CIL moved new premises in 2019. The premises are a self-contained suite of offices and meeting rooms with ICT connections throughout the building and accessible facilities for both customers and staff. It has good public transport access, helping to reduce car use. Plans to develop two meeting rooms to be used flexibly for meetings and training and as a resource for community groups had to be put on hold during the Covid-19 pandemic. The plans are being updated to enable 'hybrid' meetings in which present and remote participants can meet together. This will broaden the range of people who can use the facilities, including reducing social isolation of customers who are unable to attend meetings and events in person. It will also provide a source of income from desk and room hire.

Management pay and remuneration

Any annual increase to senior management pay is at the same percentage rate as for all employees. Any change to senior management pay rates is benchmarked against the pay rates in equivalent jobs in local authorities and the third sector. All changes to staff pay rates, including any annual increases, are subject to the approval of Leeds CIL's Board of Directors / Trustees. There is no bonus scheme at Leeds CIL, any annual surplus is reinvested in the charity in line with Leeds CIL's article of association.

Strategic Report

The following sections for achievements and performance and financial review form the strategic report of the charity.

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Achievements and Performance

Brokerage Service

The largest area of support continues to be the Managed Bank Account (MBA) Service, which demonstrates how helpful this service is in enabling people who have difficulty managing the financial aspect of receiving and using Personal Budgets and Personal Health Budgets. The service continued removing a significant barrier to having choice and control over independent living support and playing a major role in meeting Leeds CIL's Aim and Charitable Objects. The service was operating 530 Managed Bank Accounts by the end of March 2020. During 2020-21 numbers remained stable rather than increasing as is usual year on year, because of less new activity during the Covid-19 pandemic. The MBA support services were maintained including transfers to cover payroll costs and payment of invoices for other agreed services throughout 2020-21.

PA Recruitment Service

During the 2020-21 financial year the service carried out work on 1135 referrals for support, exceeding the target in the Leeds City Council contract by over 500 referrals. This included customers who recruited PAs and customers who needed some help managing the employer/employee relationship with their PAs. Requests for assistance to recruit new or replacement PAs reduced during coronavirus restrictions. However, there was an increase in requests for support to address issues such as paying PAs when they were not able to work, for example during coronavirus lockdowns and if the employer or PA, or someone living in the same household was shielding.

Payroll Service

At the end of March 2021, the service was administering monthly payroll for 1187 individual PA employer customers, and administering the wages, HMRC and pension payments and other deductions for 1556 PAs as instructed by their employers. The monthly payroll administration tasks have become more complex since Leeds CIL became independent in 2011 because of pension auto-enrolment and other legislative and tax changes. The Payroll Service team have absorbed and met all these changes and challenges, which without the service would have made being a PA employer and meeting payroll responsibilities too complex, difficult, and time-consuming for some, if not many, of Leeds CIL's customers. It would also be a major barrier to encouraging more people to use Personal Budgets and Personal Health Budgets to employ their own support workers. During 2020-21 new referrals were lower than usual because of the coronavirus pandemic, however the administration of timesheets and the full payroll bureau service was maintained throughout the year, including during a major operation during March and April 2020 to move most payroll support staff to home working whilst also completing all required year-end financial tasks and reporting requirements. Therefore, the level of customer service was maintained that had resulted in Leeds CIL's Payroll Service receiving, in competition with private sector payroll businesses, the IRIS national Customer Service Awards "2020 Payroll Bureau of the Year Award".

Training and Development Service (TDS)

The service was further developed during 2020-21, following a sixth successful bid for Skills for Care funding. Free classroom based and online training sessions are offered for PA employers and PAs. In addition to the Skills for Care funded training two group sessions have been developed by Leeds CIL as introductions for both prospective PA employers and PAs about the respective roles:

Employer group briefings - co-run by Leeds CIL staff and PA employers, which provide an overview of the benefits and responsibilities of being a PA employer and the support available from Leeds CIL.

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

PA Essentials briefings - co-run by Leeds CIL staff and PA employers and their PAs, which focus on the concept of self-directed support & the skills a PA needs to enable a PA employer to exercise their right to live an independent life. Topics covered include: the history of the independent living movement and the impact on today's practice, different outcomes people want to achieve and how particular outcomes can be achieved.

During the Coronavirus pandemic, with agreement from Skills for Care, training courses and sessions offered changed to online training only, including sessions that promote safe behaviour such as hand hygiene.

Leeds CIL Response to the Coronavirus Pandemic

Maintaining service provision

Leeds CIL began proactively making plans to modify service provision and move most employees to homeworking during early March 2020 when it became clear that a national lockdown had become highly likely. Risk assessments were produced and updated as required during the year. At the end of March 2020, the Leeds CIL premises were closed to all visitors except essential deliveries. All but 7 of the 28 employees worked from home throughout 2020-21. They have been provided with mobile working equipment, and home-working guidance, including specific instructions in ensuring the continuity of robust information protection and security and customer and colleague confidentiality and privacy. The 7 team members who volunteered to work in the office to carry out their own work and business support activities for home-working colleagues were at lower risk of becoming seriously ill if they were infected and they did not have childcare responsibilities.

All services were maintained, with support being provided by phone and online meeting. Simple 'how to' guides with screenshots on downloading and using Skype were produced for customers who had access to ICT devices and the internet. This also helped customers keep in touch with family and friends and maintain other social roles. PA recruitment reduced but a high number of requests continued to be received from PA employers for employment advice, particularly regarding paying PAs that they were unable to work with, for example when the PA was having to self-isolate. The team produced information to help PA employers by liaising with the insurance company that most Leeds CIL PA employers use for Employer and Public Liability policies. This was put on a dedicated Coronavirus page on the Leeds CIL website along with other information customers needed, including PPE Guidance. Customers were reassured that Leeds CIL services were still available for them as needed and were informed about the information on the website in letters to ensure customers who did not use the internet and email had the information they needed.

New and additional support was developed in response to concerns expressed by PA employers, for example worries that their PAs would be stopped by the police during the first national lockdown when travelling to and from their homes and to provide vital support including food shopping and picking up medication. To assist them we provided a letter on Leeds CIL headed notepaper explaining that the carrier of the letter was a key care worker needing to travel and carry out tasks to provide essential support for a vulnerable person.

Customer feedback received during 2020-21 demonstrates the continuing positive impact that Leeds CIL has made in a time of national health crisis in which many of the people supported by Leeds CIL were at very high risk:

"Just like to say thanks for the PPE items as well as I am self isolating with PA for the next few weeks. It will help."

"Many thanks for continuing to provide all of our wages at this difficult time. Kind regards to you all."

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

"Many thanks for CIL team work!"

"Just to say, it was so lovely speaking earlier today. I really appreciated your warmth, understanding, knowledge and professionalism."

"You've been fantastic"

"Thank for your continued support during the last few months - you've done a great job of keeping everything smoothly for us."

"You are all great at Leeds CIL"

"I am constantly promoting Leeds CIL both personally and professionally due to the amazing service"

Leeds CIL support for employees

Ensuring employees feel supported and that risks to them are reduced to the lowest possible levels have been key to maintaining both employee health and wellbeing and high-quality, adapted customer services. So has maintaining and encouraging open and honest conversations between line managers and the staff they support. Several members of our diverse staff teams are in shielded and other high risk categories and/or are carers for shielded or high risk family members.

Actions Leeds CIL has taken to support employees during the coronavirus pandemic include:- Regular updates from the CEO, especially after specific Central Government announcements, to reassure employees that no sudden changes or instructions such as a return to office working would be issued. - Explaining that before any changes were made organisational requirements, the work teams needed to do and each individual employee's circumstances, including childcare for children unable to go to school, would be considered. - Providing information and links on maintaining good health and wellbeing during the pandemic and tips on good practice for home working - Setting up systems for secure team and one-to-one online work meetings and a separate section for informal news and views and messages and socialising. - Anonymised staff surveys provided by an external company to assess how individual team members were feeling and ask their views on how Leeds CIL could continue to support them during the pandemic. The survey also asked for views on anything positive they have learnt and how this might be maintained after the lockdowns. - Continuing circulating positive feedback from customers and stakeholders to the whole staff team

Some of the feedback Leeds CIL managers have received from individual members of staff during this period are given below:

"I personally really miss being part of the team. It's great to hear how supportive our customers are, it's brilliant we have been able to adapt and support them in these current times"

"I am so thankful that we work for such a supporting organisation which has enabled us all to stay safe and work to the best of our abilities given our individual circumstances with no added pressure on this whole situation."

"Thank you. It's such a relief to know I have an employer who isn't going to make the juggle between being able to work and manage childcare feel like an impossible problem. It was beginning to feel like desperate times when her school U-turned at the end of May and announced they were no longer planning to bring reception class back. Thank you again."

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Partnership Working

Leeds CIL also played a key role in in the Leeds citywide response to the pandemic. Staff worked with local authority and health officers to ensure that PAs unable to work because either they or their employers were in shielded groups or self-isolating were paid. The Leeds CIL CEO became a member of a citywide PPE group tasked with developing guidance on PPE use in specific situations and obtaining and distributing essential PPE for frontline health and care workers, including the 1500 PAs working for Leeds CIL customers. Phone calls were made to PA employers about how to obtain and correctly use PPE items. These calls often included peer support for isolated and worried people, particularly those with pre-existing and long-term health conditions.

Leeds CIL's commitment to sharing good practice and increasing our social impact continued throughout 2020-21. As the initial national lockdown restrictions started to be eased PA employer customers who had been mainly relying on support from family members during the lockdown wanted to start being supported by their PAs again. The Leeds CIL staff team co-produced with them a specific risk assessment template to use to assess and address the potential Coronavirus risks to the PA employer, the PA and their respective family members living in their households. The template was shared with the insurance company providing insurance for PA employers and this was adopted by them for use nationally, scaling up the social impact of this local Leeds CIL initiative. Also, one of the Leeds CIL Director / Trustees, who is an 'expert by experience' member of a national NHS group developing Personal Health Budget provision, shared with them his experiences of being assisted safely by his PAs during the pandemic, including the template and received this feedback:

"NHS England and NHS Improvement is very grateful to Leeds CIL for granting permission to adapt their COVID risk assessment template as part of the national PPE resources being developed to support direct payment holders. It's great to see proactive initiatives taking place in local areas to keep people safe - especially when they are co-produced by people with lived experience of services. We welcome the opportunity to be able to share this good practice more widely. Thanks again for your support."

When coronavirus vaccines became available for essential front-line health and care workers in the early months of 2021,Leeds CIL played a key role in providing information for PA employers, enabling them to encourage their PAs to book a vaccine appointment. This was a great sense of relief for customers working with PAs and comments were made such as "it means more than anyone could know, an emotional moment!!"

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Financial Review

The attached financial statements show the results for the year. The Trustees report a deficit before the movement on the LGPS pension scheme. The strategic approach of very careful monitoring and control of costs was maintained during 2020-21. Nevertheless, the actions required to keep employees and customers as safe as possible whilst maintaining service provision during the coronavirus pandemic, including moving most employees to homeworking required unplanned for expenditure. Mobile working devices and additions to phone systems had to be paid for using reserves. This adversely affected Leeds CIL's reserves policy of maintaining a minimum of £200,000 unrestricted funds and it is expected that there will be further financial pressures throughout 2021-22.

The company is mainly funded by a contract with Leeds City Council (LCC). LCC's and our customers' continuing satisfaction with the delivery of the contract was demonstrated by LCC issuing a further new contract to Leeds CIL up to the end to the end of May 2022, with the provision for a further 6-month extension if required to complete the local authority's plans for future Direct Payments support in Leeds. Following the successful initiative to have some of the Leeds CIL PA recruitment support team based in social work area teams, LCC has decided to make this a permanent arrangement. Therefore, LCC will transfer Leeds CIL employees providing this service into the Council after which they will be employed by LCC. This will result in a significant loss of income for Leeds CIL; however, it will be mitigated by a reduction in staff salaries and associated costs, which form the largest charitable expenditure by Leeds CIL. LCC has stated that it expects to put out to tender a Payroll and Managed Bank Account contract during 2023. Until then Leeds CIL will continue to receive funding from LCC and Leeds CCG for providing these services.

The Leeds CIL Directors / Trustees have therefore developed a strategy for responding to the challenges presented by the expected reduction in contract income and the release of a Payroll and Managed Bank Account contract during 2023. The upgrade and integration of Leeds CIL's digital systems and processes that began in 2019 following the move to new premises is continuing, including the procurement of new payroll software. Therefore, there will be a corresponding increase in efficiency savings going forward, which will place Leeds CIL in a good position to apply for a Payroll and Managed Bank Accounts contract, other contracts that could further Leeds CIL's Vision, Mission and Charitable Objectives and to apply for grant funding to assist with meeting core costs and resourcing project work. Other plans for generating unrestricted funding to cover core costs had to be put on hold during 2020-21 because of the coronavirus restrictions. These will be re-started, including preparing a meeting room and desk hire offer and fundraising activities. The Directors / Trustees believe that these actions, alongside further cost reduction actions if required should enable Leeds CIL to remain a going concern during 2021-22 and beyond.

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

Plans for Future Periods

We will maintain the high standard of service provision that has enabled us to successfully deliver and exceed targets in contracts with Leeds City Council since 2011 and support for people receiving Personal Health Budgets and self-funders. We will also update risk assessments as required and maintain coronavirus risk reduction measures for as long as is necessary and will continue to adapt our service provision as needed. We will continue to keep costs as low as possible and actively seek a range of funding sources for ongoing work and projects.

Government and other bodies' economic forecasts suggest that Leeds CIL's beneficiaries, disabled and older people and families with disabled children, will face continuing reductions in their income caused by rises in inflation, tax, and fuel costs. This will have a corresponding negative effect on people's ability to gain and maintain independent living, especially people in marginalised groups whose needs could not be met by 'traditional' care services. Also, the coronavirus pandemic has highlighted the crisis in social care availability and provision and made visible the social isolation that people can experience when they are living in their own homes.

However, alongside the loss of life and other harm caused by the pandemic, a new spirit has emerged of reaching out to other people, volunteering, partnership working and equipping people who have long-term health conditions with the knowledge and support they need to self-manage both their health situation and general wellbeing. Leeds CIL is consulting our beneficiaries on which independent living concerns they have now and how Leeds CIL could assist them in various ways to exercise their right to lead an independent life. We will then invite beneficiaries to co-produce with us new and additional types of independent living support. We therefore look to the future with realistic understanding of the challenges ahead, but also with optimism about what we and our beneficiaries can achieve together.

Trustees' Responsibilities Statement

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 March 2021

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

Sagars Accountants Ltd is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

The trustees' annual report and the strategic report were approved on 3 March 2022 and signed on behalf of the board of trustees by:

Mr R D Moriarty Trustee

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Leeds Centre for Integrated Living

Company Limited by Guarantee

Independent Auditor's Report to the Members of Leeds Centre for Integrated Living

Year Ended 31 March 2021

Opinion

We have audited the financial statements of Leeds Centre for Integrated Living (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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 FRS 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 charity 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.

Material Uncertainty Related to Going Concern

We draw attention to note 22 in the financial statements, which indicates that uncertainty over the future position of the service contract with Leeds City Council and a forecast deficit may cast significant doubt on the entity’s ability to continue as a going concern. As stated in note 22, these events or conditions indicate that material uncertainties exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors ‘assessment of the entity’s ability to continue to adopt the going concern basis of accounting included obtaining evidence of ongoing contracts and reviewing the charity's financial forecasts.

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

- 16 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Independent Auditor's Report to the Members of Leeds Centre for Integrated

Living (continued)

Year Ended 31 March 2021

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 trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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 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:

- 17 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Independent Auditor's Report to the Members of Leeds Centre for Integrated Living (continued)

Year Ended 31 March 2021

Responsibilities of Trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 charity or to cease operations, or have no realistic alternative but to do so.

- 18 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Independent Auditor's Report to the Members of Leeds Centre for Integrated

Living (continued)

Year Ended 31 March 2021

Auditor's Responsibilities for the Audit of the Financial Statements

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:

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019.

We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context were Charities Commission Regulations and requirements from funders.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions,

- 19 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Independent Auditor's Report to the Members of Leeds Centre for Integrated

Living (continued)

Year Ended 31 March 2021

misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

- 20 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Independent Auditor's Report to the Members of Leeds Centre for Integrated

Living (continued)

Year Ended 31 March 2021

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.

Susan Seaman BA FCA CIOT (Senior Statutory Auditor)

Gresham House 5-7 St Paul's Street Leeds LS1 2JG

For and on behalf of Sagars Accountants Ltd Chartered accountants & statutory auditor

3 March 2022

- 21 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year Ended 31 March 2021

Year Ended 31 March 2021
2021 2020
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 – – – 44
Charitable activities 6 907,267 27,354 934,621 970,984
Investment income 7 131 – 131 294
───────── ──────── ───────── ─────────
Total income 907,398 27,354 934,752 971,322
═════════ ════════ ═════════ ═════════
Expenditure
Expenditure on charitable activities 8,9 1,071,214 28,394 1,099,608 1,151,664
──────────── ──────── ──────────── ────────────
Total expenditure 1,071,214 28,394 1,099,608 1,151,664
════════════ ════════ ════════════ ════════════
──────────── ──────── ──────────── ────────────
Net expenditure (163,816) (1,040) (164,856) (180,342)
════════════ ════════ ════════════ ════════════
Transfers between funds 2,351 (2,351) – –
Other recognised gains and losses
Actuarial losses on defined benefit pension
schemes (407,000) – (407,000) (15,000)
──────────── ──────── ──────────── ────────────
Net movement in funds (568,465) (3,391) (571,856) (195,342)
Reconciliation of funds
Total funds brought forward (842,227) 2,341 (839,886) (644,544)
──────────── ──────── ──────────── ────────────
Total funds carried forward (1,410,692) (1,050) (1,411,742) (839,886)
════════════ ════════ ════════════ ════════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 25 to 37 form part of these financial statements.

- 22 -

Company Limited by Guarantee

Statement of Financial Position

31 March 2021

31 March 2021
2021 2020 2020
Note £ £ £ £
Fixed Assets
Tangible fixed assets 16 43,847 44,867
Current Assets
Debtors 17 27,096 33,317
Cash at bank and in hand – Charity 240,892 354,312
Cash at bank and in hand – Client 5,331,091 4,279,909
──────────── ────────────
5,599,079 4,667,538
Creditors: amounts falling due
within one year 18 5,482,668 4,389,291
──────────── ────────────
Net Current Assets 116,411 278,247
───────── ─────────
Total Assets Less Current Liabilities Total Assets Less Current Liabilities 160,258 323,114
───────── ─────────
Net Assets Excluding Defined Benefit
Pension Plan Liability 160,258 323,114
Defined benefit pension plan liability 19 1,572,000 1,163,000
──────────── ────────────
Net Liabilities Including Defined Benefit
Pension Plan Liability (1,411,742) (839,886)
════════════ ════════════
Funds of the Charity
Restricted funds (1,050) 2,341
Unrestricted funds:
Defined benefit pension reserve (1,572,000) (1,163,000)
Other unrestricted income funds 161,308 320,773
──────────── ────────────
Total unrestricted funds (1,410,692) (842,227)
──────────── ─────────
Total charity funds 20 (1,411,742) (839,886)
════════════ ═════════

These financial statements were approved by the board of trustees and authorised for issue on 3 March 2022, and are signed on behalf of the board by:

Mr R D Moriarty Trustee

The notes on pages 25 to 37 form part of these financial statements.

- 23 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Statement of Cash Flows

Year Ended 31 March 2021

Year Ended 31 March 2021
2021 2020
£ £
Cash Flows from Operating Activities
Net expenditure (164,856) (180,342)
Adjustments for:
Depreciation of tangible fixed assets 8,509 6,948
Other interest receivable and similar income (131) (294)
Interest payable and similar charges 953 550
Defined benefit pension plan employer contributions (23,000) 192,000
Accrued expenses 328 5,184
Pension fund costs 25,000 23,000
Changes in:
Trade and other debtors 6,221 (3,134)
Trade and other creditors 1,093,049 689,871
──────────── ─────────
Cash generated from operations 946,073 733,783
Interest paid (953) (550)
Interest received 131 294
───────── ─────────
Net cash from operating activities 945,251 733,527
═════════ ═════════
Cash Flows from Investing Activities
Purchase of tangible assets (7,489) (51,815)
───────── ─────────
Net cash used in investing activities (7,489) (51,815)
═════════ ═════════
Net Increase in Cash and Cash Equivalents 937,762 681,712
Cash and Cash Equivalents at Beginning of Year 4,634,221 3,952,509
──────────── ────────────
Cash and Cash Equivalents at End of Year 5,571,983 4,634,221
════════════ ════════════

The notes on pages 25 to 37 form part of these financial statements.

- 24 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements

Year Ended 31 March 2021

1. General Information

The principal activity of the charity during the year was to promote social inclusion for the public benefit among disabled and older people who are or may be socially excluded due to disability or age. More information is included in the Trustees report on pages 1 to 15.

The charity is a public benefit entity and a private company limited by guarantee which is incorporated and registered in England (no. 07534989) and Registered Charity no. 1147077. The address of the registered office is:

Cartelli House 2 Arthur Street Stanningley Leeds LS28 6JY

2. Statement of Compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting Policies

Basis of Preparation

The financial statements have been prepared under the historical cost convention.

Going Concern

The Trustees consider that given the current level of unrestricted reserves, it is appropriate to prepare the financial statements on the going concern basis. Further detail is given at note 22 to the accounts.

Judgements and Key Sources of Estimation Uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.

Fund Accounting

Funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the Directors.

Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

- 25 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

3. Accounting Policies (continued)

Incoming Resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources Expended

All resources expended are included in the Statement of Financial Activities on an accruals basis.

Costs of activities in furtherance of the charity's objectives comprise all costs in respect of and directly attributable to providing an independent living support service.

Governance costs represent the expenses in connection with the administration of the charity and compliance with constitutional and statutory requirements.

Certain expenditure is directly attributable to specific activities and has been included in these categories. Certain other costs, which are attributable to more than one activity, are apportioned across categories on the basis of an estimate of the proportion of time spent by staff on those activities.

Operating Leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible Assets

All fixed assets are initially recorded at cost.

- 26 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

3. Accounting Policies (continued)

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold improvements - Over the life of the lease Office equipment - 25% straight line Service user equipment - 25% straight line

Impairment of Fixed Assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Financial Instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

- 27 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

3. Accounting Policies (continued)

Defined Benefit Plans

The company recognises a defined net benefit pension asset or liability in the statement of financial position as the net total of the present value of its obligations and the fair value of plan assets out of which the obligations are to be settled. The defined benefit liability is measured on a discounted present value basis using a rate determined by reference to market yields at the reporting date on high quality corporate bonds. Defined benefit obligations and the related expenses are measured using the projected unit credit method. Plan surpluses are recognised as a defined benefit asset only to the extent that the surplus is recoverable either through reduced contributions in the future or through refunds from the plan.

Changes in the net defined benefit asset or liability arising from employee service are recognised in income or expenditure as a current service cost where it relates to services in the current period and as a past service cost where it relates to services in prior periods. Costs relating to plan introductions, benefit changes, curtailments and settlements are recognised in income or expenditure in the period in which they occur.

Net interest is determined by multiplying the net defined benefit liability by the discount rate, both as determined at the start of the reporting period, taking account of any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. Net interest is recognised in income or expenditure.

4. Limited by Guarantee

The company is limited by guarantee, having no share capital. Members liability in the event of winding up of the company is limited to £1 each.

5. Donations and Legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Donations
Donations – – 44 44
════ ════ ════ ════
Charitable Activities
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Payments from governments or public authorities in
the normal course of trading 810,922 – 810,922
Performance-related grants (2,193) 27,354 25,161
Service user fees 98,538 – 98,538
───────── ──────── ─────────
907,267 27,354 934,621
═════════ ════════ ═════════

6. Charitable Activities

- 28 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

6. Charitable Activities (continued)

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Payments from governments or public authorities in
the normal course of trading 810,922 – 810,922
Performance-related grants – 52,803 52,803
Service user fees 107,259 – 107,259
───────── ──────── ─────────
918,181 52,803 970,984
═════════ ════════ ═════════
7. Investment Income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Bank interest receivable 131 131 294 294
════ ════ ════ ════
8. Expenditure on Charitable Activities by Fund Type
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Independent Living Support service 687,222 6,735 693,957
Support costs 383,992 21,659 405,651
──────────── ──────── ────────────
1,071,214 28,394 1,099,608
════════════ ════════ ════════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Independent Living Support service 710,215 30,109 740,324
Support costs 392,214 19,126 411,340
──────────── ──────── ────────────
1,102,429 49,235 1,151,664
════════════ ════════ ════════════
9. Expenditure on Charitable Activities by Activity Type
Activities
undertaken Support Total funds Total fund
directly costs 2021 2020
£ £ £ £
Independent Living Support service 693,957 355,085 1,049,042 1,098,052
Governance costs – 50,566 50,566 53,612
───────── ───────── ──────────── ────────────
693,957 405,651 1,099,608 1,151,664
═════════ ═════════ ════════════ ════════════

- 29 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

10. Analysis of Support Costs

Independent
Living
Support
service Total 2021 Total 2020
£ £ £
Staff costs 197,697 197,697 207,034
Premises 65,551 65,551 51,905
Communications and IT 41,773 41,773 37,369
Governance costs 50,566 50,566 53,612
Training 2,669 2,669 10,011
Printing, stationery and marketing 14,294 14,294 22,552
Access to Work costs 17,979 17,979 16,165
Legal and professional fees 3,455 3,455 3,709
Depreciation 8,509 8,509 6,948
Other office costs 3,158 3,158 2,035
───────── ───────── ─────────
405,651
═════════		 405,651
═════════		 411,340
═════════

11. Taxation

The company is a registered charity and has obtained confirmation from HMRC that it is a charitable company and meets the exemption from corporation tax under Schedule 6 of the Finance Act 2010. All income and expenditure is applied for charitable purposes and hence the result for the year is treated as being exempt from corporation tax.

12. Net Expenditure

Net expenditure is stated after charging/(crediting):

Net expenditure is stated after charging/(crediting):
2021 2020
£ £
Depreciation of tangible fixed assets 8,509 6,948
═══════ ═══════
13. Auditors Remuneration
2021 2020
£ £
Fees payable for the audit of the financial statements 9,725
═══════		 8,963
═══════

14. Staff Costs

The total staff costs and employee benefits for the reporting period are analysed as The total staff costs and employee benefits for the reporting period are analysed as follows:
2021 2020
£ £
Wages and salaries 580,923 610,418
Social security costs 43,601 43,428
Employer contributions to pension plans 191,851 213,099
Other employee benefits 18,550 32,554
───────── ─────────
834,925 899,499
═════════ ═════════

- 30 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

14. Staff Costs (continued)

The average head count of employees during the year was 28 (2020: 27). The average number of full-time equivalent employees during the year is analysed as follows:

2021 2020
No. No.
Number of direct payroll staff 14 15
Number of administrative staff 8 6
Number of management staff 6 6
──── ────
28 27
════ ════

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

Key Management Personnel

Key management personnel of the charity, comprise the trustees, the Chief Executive Office, the officer manager, the service development manager, the finance and support co-ordinator, the team leader PA & Brokerage section and the Team leader payroll services. The total remuneration for the key management personnel during the year was £252,776 (2020 - £215,728). The increase in 2021 is primarily due to higher pension costs in the year

15. Trustee Remuneration and Expenses

Travel expenses of £nil (2020 - £548) were paid on behalf of all the Trustees, when they attend meetings. No other remuneration is paid to Trustees.

16. Tangible Fixed Assets

Leasehold Fixtures and
mprovements fittings Equipment Total
£ £ £ £
Cost
At 1 April 2020 40,034 1,971 42,409 84,414
Additions 2,080 – 5,409 7,489
──────── ─────── ──────── ────────
At 31 March 2021 42,114 1,971 47,818 91,903
════════ ═══════ ════════ ════════
Depreciation
At 1 April 2020 4,003 1,971 33,573 39,547
Charge for the year 4,211 – 4,298 8,509
──────── ─────── ──────── ────────
At 31 March 2021 8,214 1,971 37,871 48,056
════════ ═══════ ════════ ════════
Carrying amount
At 31 March 2021 33,900 – 9,947 43,847
════════ ═══════ ════════ ════════
At 31 March 2020 36,031 – 8,836 44,867
════════ ═══════ ════════ ════════
17. Debtors
2021 2020
£ £
Trade debtors 7,339 4,665
Prepayments and accrued income 19,757 28,652
──────── ────────
27,096
════════		 33,317
════════

Included within trade debtors is a balance of £971 (2020 - £1,290) which relates to amounts due from customers to cover payroll services.

- 31 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

18. Creditors: amounts falling due within one year

2021 2020
£ £
Trade creditors 334,819 399,984
Accruals and deferred income 21,062 20,734
Social security and other taxes 48,499 42,922
Pension fund 12,884 3,984
Other creditors 5,065,404 3,921,667
──────────── ────────────
5,482,668
════════════		 4,389,291
════════════

Included within trade creditors is a balance of £313,710 (2020 - £393,112) which relates to funds paid in advance by customers to cover payroll services.

The figure for other creditors includes managed client bank accounts of £4,936,683 (2020 - £3,839,868). Bank accounts are in the joint name of Leeds CIL and the individual members and as such the balances are included in the bank balance in the charity balance sheet. However, as these funds belong to the members a corresponding creditor is included.

19. Pensions and Other Post Retirement Benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £191,851 (2020: £213,099).

Defined benefit plans

The company's pension scheme is part of the West Yorkshire Pension Fund administered by the City of Bradford Metropolitan Council. Benefits are based on final pensionable pay and contributions are charged to the income and expenditure account so as to spread the costs of the pension over the employees working lives with the company. The contributions are determined by a qualified actuary (on the basis of triennial valuations using the projected unit method). The expected employer contributions for next year are at a rate of 21.20%.

The most recent valuation was carried out for the defined benefit scheme at 31st March 2019 by AON Hewitt Limited using the Projected unit method and revised contribution rates have been effective from 1 April 2020.

The statement of financial position net defined benefit liability is determined as follows:

2021 2020
£ £
Present value of defined benefit obligations (3,801,000) (2,756,000)
Fair value of plan assets 2,229,000 1,593,000
──────────── ────────────
(1,572,000) (1,163,000)
════════════ ════════════

- 32 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

19. Pensions and Other Post Retirement Benefits (continued)

Changes in the present value of the defined benefit obligations are as follows:

2021
£
At 1 April 2020 2,756,000
Current service cost 192,000
Interest expense 64,000
Benefits paid (18,000)
Contributions by plan participants 34,000
Remeasurements:
Actuarial gains and losses 773,000
────────────
At 31 March 2021 3,801,000
════════════
Changes in the fair value of plan assets are as follows:
2021
£
At 1 April 2020 1,593,000
Interest income 39,000
Benefits paid (18,000)
Contributions by employer 215,000
Contributions by plan participants 34,000
Remeasurements:
Actuarial gains and losses 366,000
────────────
At 31 March 2021 2,229,000
════════════
The total costs for the year in relation to defined benefit plans are as follows:
2021 2020
£ £
Recognised in income or expenditure:
Current service cost 192,000 189,000
Past service credit – 24,000
Net interest expense 25,000 23,000
───────── ─────────
217,000 236,000
═════════ ═════════
The fair value of the major categories of plan assets are as follows:
2021 2020
% %
Equity instruments 80.00 78.00
Debt instruments 13.00 14.00
Property 4.00 5.00
Cash and cash equivalents 2.00 2.00
Other 1.00 1.00
The return on plan assets are as follows:
2021 2020
£ £
Return on assets of benefit plan 405,000 (148,000)
═════════ ═════════

- 33 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

19. Pensions and Other Post Retirement Benefits (continued)

The principal actuarial assumptions as at the statement of financial position date were:

2021 2020
% %
Discount rate 2.00 2.00
Expected rate of salary increase 4.00 3.00
Expected rate of increase in pensions 3.00 2.00
Inflation assumption 3.00 2.00
Other 3.00 2.00
═════ ═════

20. Analysis of Charitable Funds

Unrestricted funds

At Gains and At 31 Mar
1 Apr 2020 Income Expenditure Transfers losses 2021
£ £ £ £ £ £
General funds 320,773 907,398 (1,069,214) 2,351 – 161,308
Pension (1,163,000) –
(2,000)		 – (407,000) (1,572,000)
──────────── ─────────
────────────		 ─────── ───────── ────────────
(842,227) 907,398 (1,071,214) 2,351 (407,000) (1,410,692)
════════════ ═════════
════════════		 ═══════ ═════════ ════════════
At Gains and At 31 Mar
1 Apr 2019 Income Expenditure Transfers losses 2020
£ £ £ £ £ £
General funds 283,107 918,519
(887,429)		 6,576 – 320,773
Pension (933,000) –
(215,000)		 – (15,000) (1,163,000)
───────── ─────────
────────────		 ─────── ──────── ────────────
(649,893) 918,519 (1,102,429) 6,576 (15,000) (842,227)
═════════ ═════════
════════════		 ═══════ ════════ ════════════
Restricted funds
At Gains and At 31 Mar
1 Apr 2020 Income Expenditure Transfers losses 2021
£ £ £ £ £ £
Access to work (1,187) 16,429
(17,979)		 1,187 – (1,550)
TDS 3,528 10,925
(10,415)		 (3,538) – 500
─────── ────────
────────		 ─────── ──── ───────
2,341 27,354
(28,394)		 (2,351) – (1,050)
═══════ ════════
════════		 ═══════ ════ ═══════
At Gains and At 31 Mar
1 Apr 2019 Income Expenditure Transfers losses 2020
£ £ £ £ £ £
Access to work (1,227) 16,205
(16,165)		 – – (1,187)
TDS 6,576 36,598
(33,070)		 (6,576) – 3,528
─────── ────────
────────		 ─────── ──── ───────
5,349 52,803
(49,235)		 (6,576) – 2,341
═══════ ════════
════════		 ═══════ ════ ═══════

- 34 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

20. Analysis of Charitable Funds (continued)

Access to Work

Specific funds are received on an annual basis to cover the costs of a Personal Assistant for S Morrell, Chief Executive.

TDS

Specific funding given to provide a training and development service for employers.

21. Analysis of Net Assets Between Funds

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Tangible fixed assets 43,847 – 43,847
Current assets 5,598,579 500 5,599,079
Creditors less than 1 year (5,481,118) (1,550)
(5,482,668)
Defined benefit pension (1,572,000) – (1,572,000)
──────────── ─────── ────────────
Net assets (1,410,692) (1,050)
(1,411,742)
════════════ ═══════ ════════════
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Tangible fixed assets 44,867 – 44,867
Current assets 4,664,009 3,529 4,667,538
Creditors less than 1 year (4,388,103) (1,188)
(4,389,291)
Defined benefit pension (1,163,000) – (1,163,000)
──────────── ─────── ────────────
Net assets (842,227) 2,341 (839,886)
════════════ ═══════ ════════════

- 35 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

22. Going Concern

The directors consider the charitable company to be a going concern and the financial statements have been prepared on that basis.

In coming to this conclusion the directors have considered the continued impact of Covid-19 on the forecasts and post year end results. Although Covid has had some financial impact this has been mitigated by steps management have taken to control costs and therefore, the overall financial impact is not thought to be significant.

The directors have considered the uncertainty in relation to the ongoing service contract with Leeds City Council which provides the majority of the income for the charity. The contract initially ceased as at 31 March 2017 and has been subsequently extended up to November 2022. It is expected that Leeds City Council will carry out a procurement process in early 2023. Discussions have taken place with the Council and the board is confident it would be successful in an open market tender process, given the track record of successfully delivering the contract as reviewed by LCC in 2015. If the service contract is not renewed costs will need to be reduced accordingly to ensure the entity is still a going concern.

Draft budgets have been prepared for the period to 31 March 2023 which show a deficit creating a need for additional funding. The Board is continuing to look at alternative sources of funding that may be available in order to help improve the financial stability. Whilst it is recognised that the company faces significant financial challenges, the Board and management are working closely in order to develop a robust financial plan to secure the financial future of the company.

The company meets its day to day working capital requirements through available cash resources which include receipts in advance from customers in advance of payroll being run.

The company has reported net liabilities of £1,411,742 to 31 March 2021 as a result of its obligations as an employer within the Local Government Pension Scheme (LGPS). The Balance Sheet at 31 March 2021 includes a pension scheme liability of £1,572,000 to LGPS.

Actual contributions paid by the company during the year totalled £214,782. Based on a similar level of future contributions the Directors consider that the company is able to finance this pension liability in the short term and the Directors are not aware of any reason why the liability of £1,572,000 would crystallise in the next few years.

The financial statements have therefore been drawn up on a going concern basis, which assumes that service contracts will be renewed at an adequate level to secure the financial stability of the company.

23. Analysis of Changes in Net Debt

At
At 1 Apr 2020 Cash flows 31 Mar 2021
£ £ £
Cash at bank and in hand 4,634,221 937,762 5,571,983
════════════ ═════════
════════════

- 36 -

Leeds Centre for Integrated Living

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year Ended 31 March 2021

24. Operating Lease Commitments

The total future minimum lease payments under non-cancellable operating leases are as follows: The total future minimum lease payments under non-cancellable operating leases are as follows: The total future minimum lease payments under non-cancellable operating leases are as follows:
2021 2020
£ £
Later than 1 year and not later than 5 years 50,000 104,588
Later than 5 years 22,420 –
──────── ─────────
72,420 104,588
════════ ═════════

25. Related Parties

The Trustees and their families are able to access the services of Leeds CIL on the same basis as the rest of the community and do not receive any special treatment. The services that are provided are always based on the needs of the client and are bespoke to that individual.

- 37 -