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2021-01-31-accounts

Registered number: 10921078 Charity number: 1174982

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021

CARING FOR LIFE

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 14
Independent auditor's report on the financial statements 15 - 18
Consolidated statement of financial activities 19 - 20
Consolidated balance sheet 21 - 22
Charity balance sheet 23 - 24
Consolidated statement of cash flows 25
Notes to the financial statements 26 - 51

CARING FOR LIFE

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JANUARY 2021

Trustees

Mr W E Bygroves, Chair Dr J W Birnie Mrs P M Clegg (resigned 2 March 2021) Mrs F Hendriksz Rev R P Pease Mr G J Sharkey Mrs P B Young

Company registered number

10921078

Charity registered number

1174982

Registered office

Crag Farm House Otley Old Road Cookridge Leeds LS16 7NH

Chief executive officer

Mr J Parkinson

Independent auditor

BHP LLP Chartered Accountants Statutory Auditor 1st Floor Mayesbrook House Leeds LS16 6QY

Page 1

CARING FOR LIFE

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

Bankers

Triodos Bank NV Brunel House 11 The Promenade Bristol BS8 3NN

Santander UK plc Bridle Road Bootle L30 4GB

Page 2

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 JANUARY 2021

The Trustees (who are also directors of the charity for the purpose of the Companies Act) present their annual report together with the audited financial statements of the Charitable group for the period 1 February 2020 to 31 January 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable group comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

a. What is CFL established to do?

The objectives of Caring For Life, as laid down in the Trust Deed and on the Charity Commission’s register of charities are:

“To promote the Evangelical Christian faith by bringing the love and compassion of Christ Jesus to mankind through the relief in need of those who are poor, have a disability, are infirm or otherwise in need, by: a) Provision of accommodation and ancillary facilities calculated to alleviate their needs;

b) Provision of training, including opportunities to engage in paid employment for limited periods;

c) Preservation and conservation of the Charity’s land, buildings, (including historic listed buildings) and environment, in furtherance of its purpose in caring for life in all its forms.”

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. What does CFL actually do?

Caring For Life fulfils its charitable objectives through three main areas of ministry:

Providing supported living homes for particularly at-risk men and women; homes which provide a genuine home for as long as the person wishes to stay, for life if necessary.

Providing housing support through the CFL ‘Being There’ (Housing Support) team, sourcing housing for homeless people and/or undertaking support work to enable people to sustain their tenancies, plus to achieve a more safe, settled and happy way of life.

Providing therapeutic daytime activity projects at the Trust’s base, Crag House Farm, to help beneficiaries to adopt a more structured and safer lifestyle, enabling them to find real fulfilment and a sense of purpose in life.

c. Main activities undertaken to further the Charity's purposes for the public benefit

The Trustees can confirm that the Charity’s undertaking is for public benefit. We fulfill this through making every project accessible to and available for at-risk members of our society, supported living homes for at-risk adults, crucial support for those living alone in the community, including sourcing homes for the homeless and tenancy sustainment work, food parcels given out to people in need, therapeutic daytime activities for socially excluded people and activities for people with a wide range of disabilities, free meals (breakfast and lunch) for up to 100 different people each week, adult education for those who have missed out in childhood, and Bible studies and spiritual nurture to help nurture moral welfare and social cohesion.

Page 3

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Objectives and activities (continued)

d. Volunteers

The continuing support of volunteers has provided a crucially needed resource in many areas of the Charity. We recruit volunteers as and when the need arises, and we have seen a number of new volunteers join our team in the last year, and also seen others retire.

Strategic report

Achievements and performance

a. Have we achieved our aims?

The last 12 month have been dominated by the Covid 19 Pandemic which has massively affected how we have done things as a Charity.

Following the first lockdown, we had to remodel our care considerably as we had to close temporarily our daytime therapeutic activities based at Crag House Farm. We also had to withdraw our day to day and face to face visits to those in the community, and were only able respond to emergencies in that face to face way.

Whilst these changes had a dramatic impact on many in our care, through careful restructuring and redeploying of some of the staff team, we managed to build a new way of engaging with our beneficiaries. This ensured our ability to continue meeting the Trusts goals and objectives with its direct care of vulnerable men and women.

In addition to this, our lateral care approach meant we were able to consider if there were things we could do to enhance, or adapt care not just for during the pandemic, but as we had to adapt and change things so considerably, we looked if there were things, we wanted to implement that could help with our care into the future.

We adapted our care from face to face, other than when there was a crisis such as a welfare checks, or provision of crucial food parcels. The charity also took full advantage of technology, using WhatsApp, Zoom, Microsoft Teams and other technology to develop remote support. This consisted of things like catering classes, bible studies, daily chats, welfare checks, benefit support meetings, farm walkarounds, conservation updates, fitness classes.

Through a whole array of online activities, we managed to support not just those who were currently being cared for by us pre Covid, but we have managed to engage and support many more during this time due to an increase in issues and needs thrown up by the pandemic.

Thankfully, as time has gone bye, we were gradually able to get back to some sort of pre-Covid normality in that our daytime services are now beginning to operate again and our home face to face visits are happening again. However, we are still seeking to utilise the technologies, and reconfigurations of our care to open our organisation to help more people through the provisions we have.

We monitored our care through regular meetings with the Trustees, Executive Board and Senior Manager team. We increased the number of staff meetings, via zoom, and the CEO and Pastoral Director had regular update meetings with project leaders, and care providers on our team to hear of all care matters that were happening, ensuring the charity could pick up on pastoral issues quickly and effectively.

Page 4

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Strategic report (continued)

Achievements and performance (continued)

b. Provision of care

Supported living accommodation

Tindall House and Wendy Margaret home continued to provide its supported living accommodation, albeit with its very different daytime activities.

Throughout the pandemic, daytime activities were facilitated by an increase of staff use at the homes, using re-deployed staff to provide round the clock support, which also enabled activities, games, and social interaction through the daytime to help the people create coping mechanisms with the restrictions placed on our nation.

In addition to in-person staff in the homes assisting with activities, the use of technology also enabled the home beneficiaries to tap into the daytime activities as outlined already, such as catering, equestrian, fitness, bible studies and other remote activities that were developed.

We were to date, (end of the year), thankful that the measure in place, and cooperation with those in the homes helped us keep the homes a Covid-free place throughout the pandemic with no cases of covid being recorded.

The homes continued to support people with medical appointments, some with significant health care needs being supported, and this was facilitated with careful risk assessments and carefully planned journeys for various hospital and doctor appointments.

We continue to carefully look at how we can develop and progress a new accommodation for these two provisions that will be better suited for longer-term care, as the needs of those change in the homes as they age.

– Being There (Housing Support)

This team continued to remotely support many at-risk men and women and vulnerable families thought the year through a whole planned strategy of increased remote contact, but with a focus still on helping provide tenancy sustainment, and providing as much stability in the home, especially those whose lifestyles were chaotic. This brought its challenges with the limited amount of in-person support.

We increased the number of staff, some being re-deployed from other areas which were closed due to the pandemic, into this team, enabling more contact to be made available, and in some cases daily calls, were made to ensure those who were at high risk were regularly contacted and those we supported could be as integrated into as many online activities that we were able.

The team continued throughout the year to provide food parcels, do in-person socially distanced walks, when possible, continued to support people to arrange various appointments, deal with housing related problems and continued to work carefully with its housing sustainment.

During the year we had to stand down our volunteers but have been working on a plan to bring them back with refresher training, and bringing them up to date with updated policy training.

To further help provide safe, suitable accommodation for those who are seeking to escape modern day slavery, abuse, domestic violence, we continue to look for opportunities to purchase more housing of one to three bedroom homes that we can facilitate care.

Page 5

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Strategic report (continued)

Achievements and performance (continued)

Daytime Provision

Our daytime provision was put on hold during the pandemic. Some staff, where possible, were re-deployed to help in other care such as our housing support and supported living projects.

Other staff were maintained on the projects to help facilitate a number of activities using remote services, but also assisted in ensuring essential duties were kept maintained, such as animal care, building care and stepping into any areas as required to keep the charity continue through the challenges of the year.

Any staff who were either health compromised, or surplus to the essential needs were placed on furlough until we were able to start reopening the daytime visits.

Benefits Work

This team expanded during the pandemic, with the increased demand of people needing support in tapping into the correct benefits.

This team will remain with an increased staff team, and continue to help people with mandatory reconsiderations, appeals and tribunals. Case law and other inter-charity forums are kept up to date with ensuring training, and advice is accurate and relevant, giving the best chance for fair and proper benefits provision to our beneficiaries.

c. What differences have we made?

Page 6

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Strategic report (continued)

Achievements and performance (continued)

d. Fundraising activities and income generation

Alongside the Pastoral concerns for those in our care during the past year, we had a concern over vulnerability of our income and the potential consequences caused by having depleted resources due to the pandemic.

A slow start to the year closely followed by the closing of our Granary restaurant due to Covid restrictions, along with not having the opportunity to travel around the country promoting the work of Caring For Life to supporting Church’s, led to a reduced income.

Early into the year we looked to putting spending restrictions in place and sought to make savings wherever we could. The furlough scheme was utilised when it was offered, and these actions certainly made a difference to us. With our communication to supporters highlighting our concerns we saw an amazing response from them in terms of not just oneoff gifts being sent but an increase in our regular individual donations.

We also saw a number of unsolicited Trust donations come through which has helped our situation and in October we had a superb response to a Match fund campaign raising funds to redevelop a new refectory here at Crag House Farm, which we hope to complete some time in 2022. All these things have left us a strong financial position moving into the next financial year.

The charity adapted the way it did presentations and sought to engage with churches to use zoom and other methods of communicating to still engage with potential donors. This proved to be a success, but was still recognised not as being as affective as an in-person meeting.

The PR team started a regular zoom meeting with its support group leaders, which was a great way of keeping them close to what was happening, and then created a great opportunity for the support groups to go and think creatively about fundraising. This is something that will be continued into the future, allowing training, and as a source of encouragement to our key support.

Online fundraising took place, with a pause for a cause coffee morning taking place, where supporters were able to book into a zoom session with the exec, and have a ‘remote’ coffee and cake catch up. This was to help show how they could be run, but also as an encouragement to our supporters.

e. Trading subsidiary performance

Caring For Life Trading Limited, one of Caring For Life’s two subsidiary companies, started the year well with the prior year being the most successful year. Very quickly however it was to face a time of one of its greatest challenges in its history with the impact of the pandemic.

The restaurant had to be closed in March, and throughout the entire year only saw roughly 3 months trade happening due to covid restrictions. However, after discussions with the Executive and some reconfiguring of senior staff in the company, the shop and Garden Centre saw amazing results, ending with the company still reporting one of its most successful trading results in its history.

The challenges of the pandemic gave the opportunity for the trading company to reflect on its offerings and made some significant changes. The company developed throughout the year an online shop, click and collect service, it invested into a reconfigured restaurant drinks area, and changed the way its floor management works.

Page 7

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Strategic report (continued)

Achievements and performance (continued)

The Grab and Go Coffee shop was also carefully reviewed, and with investment of time and some resource saw this provide amazing results superseding any projected profits by up to three times its expected level.

With the encouragement of the year, we are aware that the challenge of re-opening the granary to make profit may be a hard one. Therefore, there is an expectation of some of those profits being used to subsidise short term losses to get the company back on track.

Financial review

a. Overview

Nobody expected the year to turn out to be a year of such challenge in all areas.

The Trustees priority was to ensure that the continuation of care continued, and that as many staff would be retained in the case of a hard financial impact. It was felt that financial resources would need to be able to sustain short – mid term disruption, and that careful consideration needed to be given to

The objective will always to be able to get back to church presentations in person to increase our support base with prayer but also direct debits. Whilst we have managed to adapt somewhat to the years logistics, we have found a small growth with direct debit giving, and we have managed to facilitate a number of presentations.

Our Support groups continue to be a real source of encouragement and opportunity to introduce new people to our organization, and we with the introduction of a new zoom support group leader meeting, it is the aim to help develop more opportunity, and provide greater assistance to help these groups fundraise and provide real impact to our growth of a support base.

One of the challenges in the last year was to develop better management systems for our Expenditure and much work went into developing a more accessible budget access and purchase systems.

The Trust also embarked on some solar installations which will help in 2 ways. Firstly, in its environmental impact, as it seeks to improve its energy use from non-bio sources, but also this will help by using some of the funds received via legacies to help with its monthly cashflow impact, as energy bills reduce with the use of its own generated energy from solar. This is expected to save up to £7,000 per month.

We also saw the financing completed, which saw a cashflow positive effect of £10,000. This was the at the end of a review where we refinanced some long term debt, to help our monthly cash position.

The trust was benefactor to a number of legacies during the year which, in line with our reserves policy, was put into our reserve account, but allocated to specific ‘pots’. One of these was toward the development of our new Resource Centre and debt consolidation.

Page 8

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

The charity continues to carefully watch the trading arm income, but does recognise the negative affect of the pandemic. The Trading arm had a net profit of £24k, but the aim is to at least equal that with the opening of the Granary in 2021, allowing some of success to be carried in the growth back of the customer base into the restaurant.

Opportunities to develop new income streams, and improve cashflow positions continues to take a key role in the Trusts monthly reviews with the Accounts and Executive Team.

b. Reserves policy

The charity relies heavily on the goodwill of its many supporters for donations and grants, to enable it to continue doing the charitable activities as set out in this report. The trustees and management recognise that there is uncertainty over the level of future grants and donations and following the outbreak of the current Covid-19 pandemic, never more so.

To secure the future activities of the charity the trustees agree a minimum level of reserves, which it strives to achieve, in order to cover the overhead costs, the charity is committed to at any time. This is in line with good practice that the Charity Commission expects.

As at 31 January 2021 the consolidated balance sheet for the charity shows total reserves of £4.98m. However, a significant proportion of these reserves are either invested in long term fixed assets, required to be able to carry out the various charitable activities, or are funds that have been designated and being held for specific projects the charity seeks to undertake.

At the 2021 year end the charity was recording investment in fixed assets of £4.2 million (2020: £4.2 million), some of which is financed through long-term bank borrowing, and held £337k in restricted funds (2020: £132k). Further details on the fixed assets can be found at note 17 and details on the restricted funds can be found at note 24.

In the year to 31 January 2021 the charity incurred total expenditure of £3.6million, which included £1.1million on management, administration, and governance costs. The trustees and management expect these costs to remain at a similar level in the FY2022 and have indicated that a reasonable level of free reserves to allow the charity time to reorganise, adjust its costs and its strategy, in the event of significant falls in grants and donations, would be six months management and administration costs plus three months’ charitable activity salary costs. This amounts to a range of between £800k and £900k of free reserves required at any time.

The trustees had designated unrestricted reserves of £416k for projects the charity seek to undertake. Therefore, on 31 January 2021 the charity held free reserves of £528k which is below the trustees’ range of required free reserves. The trustees and management are keeping the level of reserves under constant review and will continue to work towards a secure level of free reserves of circa £850k.

c. Principal funding

The charity's main source of funding continues to be donations received from the general public.

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CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

d. Going Concern

The Trustees have reviewed the cash position of the charity and cash forecasts at the date of signing the Financial Statements and also approved the financial plans of the subsidiary company to make a positive contribution to the parent charity. The Trustees are satisfied that the group will be able to meet all its financial commitments. They are also satisfied that the Executive Committee are seeking to diversify the Charity’s income streams further to mitigate risk, whilst focusing on building up its support base.

After making appropriate enquiries, the Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

e. Conclusion

The last year saw the charity facing one of the hardest years since starting.

What was encouraging was to see the structures, financial planning procedures and clear support the charity has from donors and trusts, is strong, and has proved to be resilient to the affects of a pandemic.

The opportunity to stop, reflect and adjust care and financial resources has set the charity up for a positive future, with an optimistic outlook, whilst still having the measures in place to change and adapt where needed.

Structure, governance and management

a. Constitution

Caring for Life is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 17 August 2017.

The management of the Group and the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.

b. Methods of appointment or election of Trustees

The management of the Group and the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.

The Board of Trustees at Caring For Life (“CFL”) continues to embody a range of expertise in the differing experiences and gifts brought by its members. The Trustees of Caring For Life continue to be committed to exploring new Trustees who are able to bring skills to the board which are not existent amongst the present members.

Page 10

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Structure, governance and management (continued)

c. Organisational structure and decision-making policies

The governance and structure of the charitable company continues to work efficiently and appropriately despite having to manage many issues caused by the current crisis. The day to day running of the charity is delegated to the Executive Committee who meet under the chair of the Chief Executive Officer of the charity.

Bill Bygroves continues to serve as Chair of the Trustees. He provides wise leadership and insightful pastoral influence to the Trustees and Executive Committee of the charity. Our Chair had a short time away from his position due to a heart bypass, but we are glad to say is now back to take up his role as chair.

Our Trustees provide a wealth of experience and knowledge in pastoral, financial and practical matters. The support from the board has helped the Charity maintain its objectives and has also challenged the practices and policies of the charity, in order to seek best practice and improve care.

Regular communication and challenge, from the board of Trustees, continues to have a positive influence on the charity and has been invaluable during the last few months.

The Charity regularly reviews its board of Trustees, and in accordance with best practice, the Trustees stand down every five years, and can stand for re-election, if willing.

d. Policies adopted for the induction and training of Trustees

Trustees are recruited with transparency on the basis of their experience for the role in line with the memorandum an articles of association. Job descriptions are provided and DBS checks and references taken before appointments are ratified.

All new Trustees are expected to go through a full induction and are offered any additional training as deemed necessary, including being invited to the charity’s in-house safeguarding training days and refresher days, as the safeguarding of atrisk adults and children is deemed to be a priority issue.

e. Pay policy for key management personnel

The salary for the CEO is reviewed on an annual basis by the Board of Trustees. The Executive board, the Senior Management team, and the remaining employees’ salaries are set by the Board of Trustees in discussion with the CEO.

Page 11

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Structure, governance and management (continued)

f. Financial risk management

The Trustees have assessed the major risks to which the Group and the Charity are exposed, in particular those related to the operations and finances of the Group and the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

The Trustees review each year all policies and are an active part of the charity and its crucial work.

The Executive Director, in consultation with the two trustees who are designated to review financial matters on a monthly basis, along with the Management Accountant, reviewed and overhauled the management account information, providing real-time information to assist the Executive in making crucial decisions.

The Executive Committee continue to meet regularly to review the pastoral, financial and practical affairs of the charity. On alternate weeks the Senior Management Team meet with the Executive and are provided with updates, along with being given opportunity to discuss any matters of the charity. The whole staff team are invited to a meeting on the first Wednesday afternoon of every month where developments and issues are presented for discussion. Due to the current situation this has been put on hold, but regular meetings are still held to discuss matters arising within the charity and its work.

Managers are expected to meet regularly with staff and provide support and guidance in pastoral and practical matters, along with ensuring policies are adhered to and rolled out. The staff team continue to show great commitment to the work and all show keen interest in helping the organisation meet its objectives.

Page 12

CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Plans for future periods

Income generation

As part of the drive to increase the Trust’s support base and reliable, regular giving, the charity will maintain its emphasis on

The key focus of Caring For Life’s fundraising is to not rely on large gifts, or the reserve funds, but to ensure that our monthly outgoings are met by the known and expected incomes that we can reasonably forecast and anticipate.

After review it is recognised that areas of the charity income and trading income will be impacted by the Pandemic, and that, during the next year, more emphasis may need to be focused on using funds that are known and generated, rather than expecting the same profits from its trade last year. Changes within the social enterprise are expected, and its current outlets streamlined to ensure maximisation of its income streams, but also to take advantage of any new opportunities that could be developed by using the land and buildings to generate income, without any compromise of or impact on care.

Expansion of care provision

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CARING FOR LIFE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic 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 Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditor

The auditor, BHP LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Florence Hendriksz (Aug 27, 2021 17:23 GMT+2)

................................................

Mrs F Hendriksz

(Trustee) Date: Aug 27, 2021

Page 14

CARING FOR LIFE

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARING FOR LIFE

Opinion

We have audited the financial statements of Caring for Life (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 January 2021 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated 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 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 trustees' 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 group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 15

(A Company Limited by Guarantee)

CARING FOR LIFE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARING FOR LIFE (CONTINUED)

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 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.

Opinion 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 our knowledge and understanding of the charitable group and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report including the strategic report.

We have nothing to report in respect of the following matters in relation to which 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, the trustees (who are also the directors of the parent 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.

Page 16

(A Company Limited by Guarantee)

CARING FOR LIFE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARING FOR LIFE (CONTINUED)

In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charitable company'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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Page 17

(A Company Limited by Guarantee)

CARING FOR LIFE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARING FOR LIFE (CONTINUED)

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 charitable 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 charitable 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Mike Jackson (Aug 31, 2021 20:00 GMT+1)

Michael Jackson (senior statutory auditor)

for and on behalf of BHP LLP Chartered Accountants Statutory Auditor 1st Floor Mayesbrook House Leeds LS16 6QY

Date: Aug 31, 2021

Page 18

CARING FOR LIFE

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 JANUARY 2021

Note
Income from:
Donations, legacies and grants receivable
3
Charitable activities:
4
Service income
Other trading activities
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities:
Supported Living
Housing Support (Being There)
Therapeutic Projects
Management and administration
Governance
Total expenditure
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Equity transfer of non-controlling interest
Net movement in funds		 Restricted
funds
2021
£
383,557
-
-
-
-
383,557
-
11,265
28,385
118,066
21,082
-
178,798
204,759
-
204,759		 Unrestricted
funds
2021
£
3,126,841
360,721
961,999
121
69,272
4,518,954
749,171
243,735
250,639
1,105,574
1,058,935
22,535
3,430,589
1,088,365
-
1,088,365		 Total
funds
2021
£
3,510,398
360,721
961,999
121
69,272
4,902,511
749,171
255,000
279,024
1,223,640
1,080,017
22,535
3,609,387
1,293,124
-
1,293,124		 As restated
Total
funds
2020
£
2,230,909
340,496
1,262,471
134
83,603
3,917,613
825,948
318,831
273,727
1,587,520
878,082
21,067
3,905,175
12,438
(46,300)
(33,862)

Page 19

CARING FOR LIFE

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Note
Reconciliation of funds:
Total funds brought forward
Net income attributable to the parent
Charity
Net (expenditure)/ income attributable to
non-controlling interests
Equity transfer of non-controlling interest
Total funds carried forward		 Restricted
funds
2021
£
132,582
204,759
337,341
-
-
337,341		 Unrestricted
funds
2021
£
3,560,569
1,087,745
4,648,314
620
-
4,648,934		 Total
funds
2021
£
3,693,151
1,292,504
4,985,655
620
-
4,986,275		 As restated
Total
funds
2020
£
3,727,013
15,797
3,742,810
(3,359)
(46,300)
3,693,151

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 26 to 51 form part of these financial statements.

Page 20

CARING FOR LIFE

(A Company Limited by Guarantee)

REGISTERED NUMBER: 10921078

CONSOLIDATED BALANCE SHEET

AS AT 31 JANUARY 2021

Note
Fixed assets
Tangible assets
17
Investments
18
Current assets
Stocks
19
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one year
21
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
22
Total net assets
Charity funds
Restricted funds
24
Unrestricted funds
Designated funds
24
General funds
24
Revaluation reserve
Total unrestricted funds
24
Total funds
Non-controlling interests		 137,281
582,583
1,346,538
2,066,402
(517,238)
415,987
3,862,655
323,524		 2021
£
4,218,937
918
4,219,855
1,549,164
5,769,019
(782,744)
4,986,275
337,341
4,602,166
4,939,507
46,768
4,986,275		 129,456
176,792
487,416
793,664
(780,305)
-
3,190,897
323,524		 As restated
2020
£
4,259,321
918
4,260,239
13,359
4,273,598
(580,447)
3,693,151
132,582
3,514,421
3,647,003
46,148
3,693,151

Page 21

CARING FOR LIFE

(A Company Limited by Guarantee)

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 JANUARY 2021

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Florence Hendriksz (Aug 27, 2021 17:23 GMT+2)

Mrs F Hendriksz

(Trustee) Date: Aug 27, 2021

The notes on pages 26 to 51 form part of these financial statements.

Page 22

CARING FOR LIFE

(A Company Limited by Guarantee)

REGISTERED NUMBER: 10921078

CHARITY BALANCE SHEET

AS AT 31 JANUARY 2021

Note
Fixed assets
Tangible assets
17
Investments
18
Current assets
Stocks
19
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one year
21
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
22
Total net assets
Charity funds
Restricted funds
24
Unrestricted funds
General funds
24
Revaluation reserve
Total unrestricted funds
24
Total funds		 75,872
761,887
1,293,488
2,131,247
(418,630)
4,387,374
323,524		 2021
£
3,953,973
154,071
4,108,044
1,712,617
5,820,661
(772,422)
5,048,239
337,341
4,710,898
5,048,239		 75,413
327,473
469,525
872,411
(654,012)
3,317,422
323,524		 As restated
2020
£
3,981,505
154,071
4,135,576
218,399
4,353,975
(580,447)
3,773,528
132,582
3,640,946
3,773,528

Page 23

CARING FOR LIFE

(A Company Limited by Guarantee)

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 JANUARY 2021

The Charity's net movement in funds for the year was £1,274,711 (2020 - £(46,321)).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Florence Hendriksz (Aug 27, 2021 17:23 GMT+2)

Mrs F Hendriksz

(Trustee) Date: Aug 27, 2021

The notes on pages 26 to 51 form part of these financial statements.

Page 24

CARING FOR LIFE

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2021

Note
Cash flows from operating activities
Net cash generated from operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Purchase of non- controlling interest in sub
Net cash used in investing activities
Cash flows from financing activities
Movements in borrowing
New finance leases
Repayments of finance leases
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
1,128,764
121
(253,065)
-
(252,944)
60,570
22,470
(38,983)
44,057
919,877
426,661
1,346,538		 As restated
2020
£
262,897
134
(100,582)
(46,300)
(146,748)
(161,109)
20,840
(25,546)
(165,815)
(49,666)
476,327
426,661

Page 25

(A Company Limited by Guarantee)

CARING FOR LIFE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

1. General information

The Charity is a company limited by guarantee incorporated in England & Wales. The registered office is Crag House Farm, Otley Old Road, Cookridge, Leeds, LS16 7NH. The members of the company are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Caring for Life meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Group and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.

2.2 Going concern

Despite the restrictions caused by the pandemic, the group's financial performance in the year was very good. A surplus of £1.29million was achieved, of which £1million was in unrestricted funds. This resulted in unrestricted reserves carried forward of £4.6million. However, much of these reserves are invested in longterm assets and free reserves at the year-end amounted to £785k.

The Trustees have reviewed the group's financial position, taking into account the level of free reserves, available cash, the forecasts produced for the charity and subsidiary company’s, as well as the Charity’s systems of financial and risk management. As a result of their review, the Trustees believe that the charitable group is well placed to manage operational and financial risks successfully despite the ongoing uncertain economic outlook. Accordingly, the Trustees have a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future. The Trustees, therefore, continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 26

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the group has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the group, can be reliably measured.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the group's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the group which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 27

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with the administration of the Charity and compliance with constitutional and statutory requirements.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 28

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land.

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Freehold buildings - 2% Straight line
Land - Not depreciated
Motor vehicles - 20-50% Straight line
Fixtures, fittings and equipment - 10-25% Straight line
Livestock - 25% Straight line

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Financial Activities.

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.11 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 29

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2. Accounting policies (continued)

2.12 Cash at bank and in hand

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 acquisition or opening of the deposit or similar account.

2.13 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the group anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.14 Financial instruments

The Group only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.15 Finance leases and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.16 Pensions

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

Page 30

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2. Accounting policies (continued)

2.17 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 Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is 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 or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. Income from donations, legacies and grants receivable

Donations
Legacies
Grants receivable
Government grants
Total 2021
Total 2020		 Restricted
funds
2021
£
326,557
-
57,000
-
383,557
223,279		 Unrestricted
funds
2021
£
2,368,822
526,172
2,000
229,847
3,126,841
2,007,630		 Total
funds
2021
£
2,695,379
526,172
59,000
229,847
3,510,398
2,230,909		 Total
funds
2020
£
1,751,008
245,909
233,992
-
2,230,909

Page 31

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

4. Income from charitable activities

Housing and state benefits
Total 2020
Trading activities		 Unrestricted
funds
2021
£
360,721
340,496
Unrestricted
funds		 Total
funds
2021
£
360,721
340,496
Total
funds		 Total
funds
2020
£
340,496
Total
funds
2021 2021 2020
Charity trading income £ £ £
Granarycafe income in tradingsubsidiary 952,239 952,239 1,250,403
Tradingincome in charity 9,760 9,760 12,068
961,999 961,999 1,262,471
Trading expenses
Granarycafe expenditure in tradingsubsidiary 529,537 529,537 573,699
Rental expenses in tradingsubsidiary 9,414 9,414 17,842
Tradingexpenses in charity 15,059 15,059 38,372
Tax liabilityin tradingsubsidiary 1,373 1,373 1,167
Fundraising trading expenses 193,788 193,788 194,868
749,171 749,171 825,948
Net income from trading activities 212,828 212,828 436,523
Total 2020 436,523 436,523

5. Trading activities

Page 32

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

6. Investment income

Investment income
Total 2020
Other income
RHI income
Livestock quota subsidies
Profit on disposal of fixed assets
Other income
Total 2020		 Unrestricted
funds
2021
£
121
134
Unrestricted
funds
2021
£
43,340
8,282
755
16,895
69,272
83,603		 Total
funds
2021
£
121
134
Total
funds
2021
£
43,340
8,282
755
16,895
69,272
83,603		 Total
funds
2020
£
134
Total
funds
2020
£
54,099
8,168
1,854
19,482
83,603

7. Other income

Page 33

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

8. Charitable expenditure

Therapeutic
Projects		 Supported
Living		 Housing
Support (Being
There)		 2021 2020
£ £ £ £ £
Overhead expenditure 92,852 2,588 23,691 119,131 451,924
Interest and financial charges 34,155 9,121 4,828 48,104 30,119
Staff costs 917,869 207,702 230,838 1,356,409 1,475,508
Depreciation 178,764 35,589 19,667 234,020 222,527
Total 2021 1,223,640 255,000 279,024 1,757,664 2,180,078
Total 2020 1,587,520 318,831 273,727 2,180,078

9. Other support costs

Governance Fundraising
andpublicity		 Management
and
administration		 2021 2020
£ £ £ £ £
Overhead expenditure 22,535 45,536 628,632 696,703 480,155
Interest and financial charges - 5,371 3,014 8,385 5,480
Staff costs - 139,489 421,041 560,530 597,971
Depreciation - 19,667 27,330 46,997 48,783
Total 2021 22,535 210,063 1,080,017 1,312,615 1,132,389
Total 2020 21,067 233,240 878,082 1,132,389

Page 34

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

10. Donations, legacies and grants receivable

An analysis of donations, legacies and grants receivable by geographical area is as follows:

2021 2020
£ £
United Kingdom 3,504,660 2,203,091
Rest of the World 5,738 27,818
3,510,398 2,230,909

11. Governance Costs

Audit and accountancy fees
Trustee expenses reimbursed		 Unrestricted
funds
2021
£
22,535
-
22,535		 Total
funds
2021
£
22,535
-
22,535		 Total
funds
2020
£
21,005
62
21,067

12. Auditor's remuneration

2021 2020
£ £
Fees payable to the group's auditor for the audit of the Charity's annual accounts 16,950 15,550
Fees payable to the group's auditor in respect of:
All non-audit services not included above 5,585 5,455

Page 35

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

13. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
1,707,648
134,422
77,754
1,919,824		 Group
2020
£
1,840,639
145,598
87,242
2,073,479		 Company
2021
£
1,279,174
134,422
77,754
1,491,350		 Company
2020
£
1,328,047
145,598
87,242
1,560,887

The average number of persons employed by the Charity during the year was as follows:

Residential
Resettlement
Agricultural
Horticultural
Workshop
Computer media
Estate and transport
Catering academy
Equestrian
Fundraising
Finance and administration
Restaurant, shop and nursery
Expressive arts
Mechanics		 Group
2021
No.
7
7
2
2
1
3
1
1
3
7
18
30
1
1
84		 Group
2020
No.
8
8
2
3
1
4
1
2
3
5
19
37
2
1
96

Page 36

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

13. Staff costs (continued)

No employee received remuneration amounting to more than £60,000 in either year.

The remuneration and benefits received by key management personnel amounted to £141,750 (2020: £151,429).

Pension commitments

The charity contributes to a defined contribution pension scheme, which is available to all eligible employees.

The charge to the statement of financial activities of £77,754 (2020: £87,242) represents contributions to the fund during the year. Contributions payable to the scheme at the year end date totaling £12,766 (2020: £13,805) are included in creditors.

Volunteer workers

Caring for Life receive significant assistance from volunteers. Our volunteers come from all over, some are ongoing supporters of the trust, others are from corporate volunteers days.

The practical help provided varies depending on the amount of time volunteer individuals or groups give, but their assistance reaches across the whole trust, and helps in pastoral care, and in hands on support. The time provided by volunteers ranges from a few times each week, to annually.

Caring for Life values this means of support crucial to the day to day functioning of the work.

14. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 January 2021, no expenses were reimbursed or paid directly to Trustees (2020: £62 paid to 1 Trustee relating to reimbursement of travel costs).

15. Interest payable

2021 2020
£ £
Bank and loan interest 26,767 28,380
Hirepurchase interest 5,942 7,219
32,709 35,599

Page 37

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

16. Taxation

Caring for Life is a registered Charity and has no liability to corporation tax on its charitable activities. Taxation relating to the activities of the trading subsidiaries included with expenditure is an adjustment in relation to prior years of £1,373 (2020: £1,176). There are no amounts due to HMRC in relation to corporation tax at the year end (2020: £nil).

17. Tangible fixed assets

Group

Brought forward balances have been restated in both Group and Company for Livestock now included in stocks.

Cost or valuation
At 1 February 2020
Additions
Disposals
At 31 January 2021
Depreciation
At 1 February 2020
Charge for the year
On disposals
At 31 January 2021
Net book value
At 31 January 2021
At 31 January 2020		 Freehold
property
£
4,958,340
195,745
-
5,154,085
1,211,816
155,873
-
1,367,689
3,786,396
3,746,524		 Motor vehicles
£
320,679
17,420
(6,000)
332,099
223,952
45,051
(6,000)
263,003
69,096
96,727		 Fixtures and
fittings
£
1,599,107
39,900
-
1,639,007
1,183,037
92,525
-
1,275,562
363,445
416,070		 Total
£
6,878,126
253,065
(6,000)
7,125,191
2,618,805
293,449
(6,000)
2,906,254
4,218,937
4,259,321

Page 38

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

17. Tangible fixed assets (continued)

Company

Cost or valuation
At 1 February 2020
Additions
Disposals
At 31 January 2021
Depreciation
At 1 February 2020
Charge for the year
On disposals
At 31 January 2021
Net book value
At 31 January 2021
At 31 January 2020		 Freehold
property
£
4,670,840
195,745
-
4,866,585
1,141,160
152,486
-
1,293,646
3,572,939
3,529,680		 Motor vehicles
£
320,679
17,420
(6,000)
332,099
223,952
45,051
(6,000)
263,003
69,096
96,727		 Fixtures and
fittings
£
1,513,880
37,605
-
1,551,485
1,158,782
80,765
-
1,239,547
311,938
355,098		 Total
£
6,505,399
250,770
(6,000)
6,750,169
2,523,894
278,302
(6,000)
2,796,196
3,953,973
3,981,505

The Group has adopted a policy of revaluation for tangible fixed assets. Had these assets been measured at historic cost, the carrying values would have been as follows:

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Freehold property 5,922,610 5,882,738 5,340,640 5,297,381

Page 39

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

17. Tangible fixed assets (continued)

Included in freehold property is freehold land at valuation of £925,899 (2020: £925,899), (cost £914,578 (2020: £914,578)), which is not depreciated.

Certain land, freehold and leasehold buildings were professionally valued based on their market value on 31 January 2019 by Bruce T Collinson (FRICS) of Adair Paxton Limited. The Executive and Trustees of Caring for Life do not deem there to have been any significant changes to the valuation of the properties since this date.

18. Fixed asset investments

Group
Cost or valuation
At 1 February 2020
At 31 January 2021
Net book value
At 31 January 2021
At 31 January 2020
Charity
Cost or valuation
At 1 February 2020
At 31 January 2021
Net book value
At 31 January 2021
At 31 January 2020		 Investments in
subsidiary
companies
£
153,153
153,153
153,153
153,153		 Listed
investments
£
918
918
918
918		 Listed
investments
£
918
918
918
918
Total
£
154,071
154,071
154,071
154,071

Page 40

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

18. Fixed asset investments (continued)

The stock exchange value of listed investments was £521 at the 2021 year-end.

Principal subsidiaries

The following were subsidiary undertakings of the Charity:

Names Company Principal activity Principal activity Class of Holding
number shares
Caring for Life Trading Limited 02774359 Sale of food and related Ordinary 100%
produce and cafe
operations
Caring for Life Properties Limited 02300590 Holding and letting of A Shares 100%
property
B Shares 78%
The financial results of the subsidiaries for the year were:
Names Income Expenditure Profit/(Loss) Net assets/
£ £ for the year (liabilities)
£ £
Caring for Life Trading Limited 1,045,213 (1,028,485) 16,728 (120,854)
Caring for Life Properties Limited 12,400 (10,787) 1,613 211,971
19. Stocks
Group Company
Group As restated Company As restated
2021 2020 2021 2020
£ £ £ £
Finished goods and goods for resale 137,281 129,456 75,872 75,413

Page 41

(A Company Limited by Guarantee)

CARING FOR LIFE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

20. Debtors

Due after more than one year
Amounts owed by group undertakings
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Tax recoverable		 Group
2021
£
-
-
14,255
-
14,591
536,737
17,000
582,583		 Group
2020
£
-
-
9,333
-
18,729
134,821
13,909
176,792		 Company
2021
£
119,131
119,131
863
92,237
14,258
518,398
17,000
761,887		 Company
2020
£
119,131
119,131
796
51,581
18,729
123,327
13,909
327,473

Amounts due after more than one year represents a loan due from Caring for Life Trading Limited, subsidiary of Caring for Life. Under the terms of the loan agreement Caring for Life is able to extend the repayment period. It was agreed to extend the repayment period to 30 September 2027, no other terms have been amended. Interest is charged at a rate of 3% per annum on outstanding balances.

Page 42

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

21. Creditors: Amounts falling due within one year

Bank overdrafts
Bank loans
Other loans
Trade creditors
Corporation tax
Other taxation and social security
Obligations under finance lease and hire purchase
contracts
Other creditors
Accruals and deferred income		 Group
2021
£
-
25,186
60,000
166,227
1,211
32,900
27,193
152,136
52,385
517,238		 Group
2020
£
60,755
167,507
60,000
165,094
-
64,297
43,112
160,052
59,488
780,305		 Company
2021
£
-
25,186
60,000
123,412
-
38,511
23,064
129,457
19,000
418,630		 Company
2020
£
60,755
167,507
60,000
131,789
-
51,087
24,532
139,118
19,224
654,012

Other loans include supporters' loans falling due within one year of £60,000 (2020: £60,000). These are made up of a loan of £50,000 advanced specifically to enable the Charity to secure freehold property purchased as part of the establishment of the Charity's second residential home for young women and an additional loan advanced in the year ended 31 January 2009 for the general purposes of the charity. Both loans are interest free, unsecured and have been specifically advanced for the term of the supporter's lifetime.

Deferred income relates to amounts paid to refit the Granary by one of Caring for Life's suppliers. Deferred income represents the release of this to the SOFA in place of rebates which would have normally been received from the supplier over the five years following the refit.

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Deferred income at 1 February2020 23,100 39,900 - -
Amounts released frompreviousperiods (8,400) (16,800) - -
14,700 23,100 - -

Page 43

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

22. Creditors: Amounts falling due after more than one year

Bank loans
Net obligations under finance lease and hire
purchase contracts
Included within the above are amounts falling due a
Between one and two years
Bank loans
Between two and five years
Bank loans		 Group
2021
£
700,835
81,909
782,744
s follows:
Group
2021
£
26,218
674,617		 Group
2020
£
497,944
82,503
580,447
Group
2020
£
184,304
313,640		 Company
2021
£
700,835
71,587
772,422
Company
2021
£
26,218
674,617		 Company
2020
£
497,944
82,503
580,447
Company
2020
£
184,304
313,640

Over five years

Term

During the year the Charity consolidated its existing 4 loans into 2 long term loans, both loans are repayable by January 2040.

Security

The bank loans and overdraft facility are secured by a fixed charge over the land and freehold buildings of the Charity. In addition, Caring for Life Properties Limited has given an unlimited guarantee to Triodos Bank NV in respect of the debts of Caring for Life. The net obligations under hire purchase contracts are secured on the assets held on finance.

Interest

The Charity debt for the year ended 31 January 2021 is made up of two loans with Triodos Bank plc, each carry interest at a fixed rate of 4.038%, the rate for both loans is fixed until February 2030.

The Charity debt for the year ended 31/01/202 is made up of £266,061 carrying interest at a fixed rate of 7.18%, £72,205 carrying interest at 1.75% over the base rate set by the Royal Bank of Scotland plc, £327,185 carrying interest at 4% over the base rate set by the Royal Bank of Scotland plc and a bank overdraft of £60,755.

Page 44

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

23. Non-controlling interest

£
Equity
At 1 February2020 40,531
At 31 January 2021 40,531
Non equity
At 1 February2020 5,617
Proportion ofprofit after taxation for theyear 620
At 31 January 2021 6,237
Total 46,768

Page 45

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

24. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Property Project funds
General funds
General Funds - all funds
Non-controlling interest
Revaluation reserve
Total Unrestricted funds
Restricted funds
Therapeutic Projects
Housing Related Support
Organisational and Admin
Total of funds		 Balance at 1
February 2020
£
-
3,190,897
46,148
323,524
3,560,569
3,560,569
68,968
12,817
50,797
132,582
3,693,151		 Income
£
-
4,518,334
620
-
4,518,954
4,518,954
98,315
22,735
262,507
383,557
4,902,511		 Expenditure
£
-
(3,430,589)
-
-
(3,430,589)
(3,430,589)
(80,735)
(9,350)
(88,713)
(178,798)
(3,609,387)		 Transfers
in/out
£
415,987
(415,987)
-
-
(415,987)
-
-
-
-
-
-		 Balance at 31
January 2021
£
415,987
3,862,655
46,768
323,524
4,232,947
4,648,934
86,548
26,202
224,591
337,341
4,986,275

Page 46

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

24. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
General Funds - all
funds
Non-controlling
interest
Revaluation
reserve
Restricted funds
Therapeutic
Projects
Housing Related
Support
Organisational
and Admin
Total of funds		 Balance at
1 February
2019
£
3,050,973
108,416
323,524
3,482,913
Balance at
1 February
2019
£
83,453
15,336
145,311
244,100
3,727,013		 As restated
Income
£
3,694,334
-
-
3,694,334
As restated
Income
£
105,687
11,322
106,270
223,279
223,279		 As restated
Expenditure
£
(3,567,019)
(3,359)
-
(3,570,378)
As restated
Expenditure
£
(120,172)
(13,841)
(200,784)
(334,797)
(3,905,175)		 Transfers
in/out
£
12,609
(12,609)
-
-
Transfers
in/out
£
-
-
-
-
-		 Gains/
(Losses)
£
-
(46,300)
-
(46,300)
Gains/
(Losses)
£
-
-
-
-
(46,300)		 Balance at
31 January
2020
£
3,190,897
46,148
323,524
3,560,569
Balance at
31 January
2020
£
68,968
12,817
50,797
132,582
3,693,151

Page 47

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

24. Statement of funds (continued)

Details of restricted funds are as follows:

Therapeutic Projects:

Activities based at Crag House Farm for therapeutic purposes. Consisting of small project needs, large capital costs and revenue funding for projects such as Agriculture, Catering Academy.

Housing Related Support:

These funds are for the purposes of helping people in our residential, and community housing sustainment teams. It will include things for small project costs, large capital needs and revenue costs.

Organisational and Admin:

These funds provide revenue and small project costs that do not fall into the umbrella of daytime support or housing related support. It will also include funding for large building projects.

Caring for Life takes very seriously the commitment to make sure any gift provided to a specified project is used for in accordance with the donors request. Systems are in place to ensure transparency and clarity on all restricted giving.

The transfer from non-controlling interest to general funds represents the excess net assets now attributable to the parent charity over the consideration paid.

Designated funds:

An amount of £415,987 has been designated for future property projects.

Page 48

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

25. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 - prior year
Balance at
1 February
2019
£
3,482,913
244,100
3,727,013		 Balance at 1
February 2020
£
-
3,560,569
132,582
3,693,151
As restated
Income
£
3,694,334
223,279
3,917,613		 Income
£
-
4,518,954
383,557
4,902,511
As restated
Expenditure
£
(3,570,378)
(334,797)
(3,905,175)		 Expenditure
£
-
(3,430,589)
(178,798)
(3,609,387)
Transfers
in/out
£
-
-
-		 Transfers
in/out
£
415,987
(415,987)
-
-
Gains/
(Losses)
£
(46,300)
-
(46,300)		 Balance at 31
January 2021
£
415,987
4,232,947
337,341
4,986,275
Balance at
31 January
2020
£
3,560,569
132,582
3,693,151
Summary of funds
General funds
Restricted funds

26. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2021
£
-
-
337,341
-
-
337,341		 Unrestricted
funds
2021
£
4,218,937
918
1,729,061
(517,238)
(782,744)
4,648,934		 Total
funds
2021
£
4,218,937
918
2,066,402
(517,238)
(782,744)
4,986,275

Page 49

CARING FOR LIFE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

26. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2020
£
-
-
132,582
-
-
132,582		 Unrestricted
funds
2020
£
4,259,321
918
661,082
(780,305)
(580,447)
3,560,569		 Total
funds
2020
£
4,259,321
918
793,664
(780,305)
(580,447)
3,693,151

27. Prior period adjustment

The prior period has been restated to include livestock in stock rather than in tangible fixed assets as shown previously. As a result of this adjustment, opening general reserves have increased by £34,736 in the year ended 31 January 2020.

28. Contingent assets

At the year end the charity had been notified of 1 residual legacy (2020: 2) which could not be measured reliably, as such these have not been included in the financial statements.

29. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £77,754 (2020 - £104,241). Contributions totaling £12,766 (2020: £30,804) were payable to the fund at the balance sheet date and are included in creditors.

Page 50

(A Company Limited by Guarantee)

CARING FOR LIFE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

30. Operating lease commitments

At 31 January 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
6,373
12,197
18,570		 Group
2020
£
8,161
18,570
26,731		 Company
2021
£
6,373
12,197
18,570		 Company
2020
£
8,161
18,570
26,731

The following lease payments have been recognised as an expense in the statement of financial activities:

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Operating lease rentals 39,635 33,716 39,635 33,716

31. Related party transactions

The charity leases properties from Caring for Life Properties Limited on a formal lease at a rent of £12,400 (2020: £12,400) per annum. The current rental agreement expired 31 January 2021.

Caring for Life Trading Limited has given an unlimited guarantee to Triodos Bank NV to cover bank borrowings of the Charity.

32. Controlling party

There is no ultimate controlling party.

Page 51