Charity number: 1179472 Company number: CE014817
## **Living Well UK**
**Report and consolidated financial statements**
For the year ended 31 March 2021
## **Living Well UK**
For the year ended 31 March 2021
## **Contents**
Contents Reference and administrative information ................................................................................................................... 3 Trustees’ annual report ................................................................................................................................................................... 4 Independent auditor’s report to the trustees of Living Well UK............................................................... 14 Consolidated Statement of Financial Activities....................................................................................................... 18 Balance sheets ..................................................................................................................................................................................... 19 Consolidated statement of cash flows ........................................................................................................................... 20 Notes to the financial statements ....................................................................................................................................... 21
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## **Living Well UK**
For the year ended 31 March 2021
## **Reference and administrative information**
**Charity number** 1179472 **Country of registration** England & Wales **Registered office** Avoca Court 23 Moseley Road Birmingham B12 0HJ **Trustees** R Hadley (appointed 14 June 2021) D Hay L K Masiane L D McKiernan (Chair) A Rahman **Key management personnel** Chief Executive Officer B Howells Chief Operating Officer P Kwesiga Finance Director S Munday **Bankers** Unity Trust Bank 4 Brindley Place Birmingham B1 2JB **Solicitors** Hempsons Solicitors 100 Wood Street London EC2V 7AN **Auditor** Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane London EC1Y 0TL
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
The trustees present their report and the audited financial statements for the year ended 31 March 2021.
Reference and administrative information set out on page 3 forms part of this report.
The financial statements comply with current statutory requirements, the Charity's constitution and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Objectives and activities**
## **Purposes and aims**
The objects of Living Well UK, the Charitable Incorporated Organisation (CIO) are the relief of sickness and preservation of health, with particular emphasis on mental health, in principally (but not exclusively) the Midlands, by:
- 1 Providing psychological therapy sessions, and providing counselling and self-help solutions;
- 2 Providing support services and wellbeing services, and social prescribing; 3 Contributing towards training and qualifications of practitioners and therapists (providing education for organisations and professionals in the mental health field);
- 4 Promoting research for the public benefit and to publish the useful results;
- 5 Providing grants to organisations in the mental health field.
The trustees review the aims, objectives and activities of the Charity each year.
This report looks at what the charitable group has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the organisation has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the Charity's aims, objectives and activities remained focused on its stated purposes.
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.
## **Achievements and performance**
The trustees are proud of the various services provided by Living Well Consortium (LWC), and its own activities undertaken during 2020/21.
## **Providing psychological therapy sessions, and providing counselling and self-help solutions IAPT (IMPROVING ACCESS TO PSYCHOLOGICAL THERAPIES)**
IAPT provision is a core service for LWC, and it is a leading provider of this service in the West Midlands delivering services in Birmingham, Solihull, Sandwell, Worcestershire, and Shropshire.
## **IAPT HIGHLIGHTS**
During 2020/21, over 10,000 clients were seen for 1 to 1 treatment through the IAPT provision. In addition to this, LWC successfully triaged/assessed over 12,000 clients, enabling them to access the treatment they needed.
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
Based on patient feedback surveys, over 90% of clients were extremely satisfied with the service that they received from LWC during 2020/21.
Waiting times national target is 75% of clients to be seen within six weeks; the LWC average is 94% of clients seen within six weeks.
Waiting times national target is 95% of clients to be seen within 18 weeks; the LWC average is 99% of clients seen within 18 weeks.
Moving to recovery target is 50% nationally; LWC have achieved an average of 52%.
## **Birmingham and Solihull and Sandwell and West Birmingham IAPT Service**
This is one of the LWC core contracts; this high-volume service triaged 9,970 people and provided IAPT treatment to 4,301 people during 2020/21
## **Forward Thinking Birmingham (FTB)**
Forward Thinking Birmingham (FTB) partnership comprised of statutory, VCS and independent sector organisations to collectively provide a dynamic approach to mental health services for children, young people and young adults (CYPYA) living within Birmingham. During 2020/21, LWC supported 4,906 CYPYA through this service.
## **Providing support services and wellbeing services, and social prescribing**
## **IAPT and Long-Term Conditions (LTC)**
LWC were commissioned to pilot delivering IAPT as an integrated pathway with LTC management based on the success of other pilots which have taken place in England. Based on the results of the pilots, the conditions that were chosen to pilot the service with were Diabetes, COPD and Medically Unexplained Symptoms (MUS). The pilot continues to be successful with 457 clients using the pathway during 2020/21.
## **Contributing towards training and qualifications of practitioners and therapists (providing education for organisations and professionals in the mental health field)**
## **IAPT Workforce Development**
Through LWC contracts, the Charity holds one of the highest IAPT placements in the West Midlands with 21 IAPT trainees placed across the Consortium, endorsed and funded by Health Education England. LWC has gone further to increase IAPT capacity by self-funding additional trainee posts under the same National IAPT curriculum.
In addition to trainees, and again through LWC, the Charity utilises around 65 IAPT qualified therapists that are directly employed by members of Consortium organisations enabling it to meet 100% of commissioned targets and service demand. LWC are one of the leading IAPT workforces in England. The Charity are proud that LWC finished the 2020/21 financial year with 8 IAPT Graduates in Cognitive Behavioural Therapy High Intensity and 8 Psychological Wellbeing Practitioners, all securing jobs within Consortium organisations following their university courses.
LWC has invested in clinical training programmes for its members to up-skill their staff and ensure service quality is of the highest standard throughout the course of the COVID-19 pandemic.
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
## **Providing grants to organisations in the mental health field**
## **LIVING WELL UK GRANT SCHEME**
In the previous financial year, under two investment strands, the Charity awarded grants for venue improvement and innovation with applications ranging from £500 up to £5,000. In 2020/21, the impact of the grants was realised, with 10% of consortium members receiving venue funding to improve their premises and 15% of consortium members receiving innovation funding to develop and try new ideas.
During the financial year 2020/21, the Charity awarded over £30,000 worth of grants to its members and organisations under a technology grant programme. These grants to consortium members aimed to improve their IT and supported over 40% of members with IT funding during COVID-19. This enabled providers to invest in their IT infrastructure, particularly important during COVID-19 as services were moved to online delivery models.
## **New Services in 2020/21**
## **SHROPSHIRE, TELFORD AND WREKIN IAPT SERVICE**
During 2020/21, LWC were commissioned by the Midlands Partnership NHS Foundation Trust to deliver remote assessment for people living in Shropshire and remote treatment services for people living in Telford and Wrekin. Since June 2020 the service was very successful providing assessments for 2,437 people in Shropshire and providing treatment services to 289 people in Telford and Wrekin. All treatments were provided within the 18week target.
## **COVID SUPPORT SERVICES**
Like many organisations across the globe, LWC normal service was completely disrupted overnight with the introduction of COVID-19 social restrictions. Accustomed to running face-to-face support services and in-person therapies, the ‘stay at home’ advice meant that LWC operations, both internal and external, transitioned to an online platform, with remote working and virtual service delivery. At the same time, the demand for mental health support services increased significantly, amidst anxiety around health, low-mood and anxiety, and intense isolation. Swift decisions around technical and operational adaptations were made to ensure clients’ treatment plans were maintained to the same quality, whilst ensuring they, and the staff, were safe. This resulted in the concept of the COVID-19 Situational Counselling Service. With additional training to specialise in COVID19 and Long-COVID support, therapists were able to support and place clients on the right path to recovery. Through this service 539 people were seen for counselling including 124 key workers. Mobilising the support of all Consortium members enabled referrals from the general public to be in treatment within two weeks, while key workers waited just 48 hours..
## **IT’S OKAY CAMPAIGN**
Responding to the unprecedented COVID-19 crisis and the resulting increased pressure on NHS services, the Third Sector rallied to find mental health solutions that could deliver outstanding support and timely interventions for those in need. Pooling the knowledge and capacity of Birmingham and Solihull (CCG), LWC, and Birmingham MIND, the partnership piloted a one-stop mental health helpline, the first of its kind nationally to bring together NHS and Third Sector resources. Consisting of a 24-hour phoneline, an instant messenger function, and an email service, this provision ensured the client journey was significantly simplified, despite the added pressure of running all support remotely. For the first time, clients could self-refer with a call, be instantly assessed and helped by trained therapists, and given a bespoke follow-on treatment plan. In creating a one-stop mental health helpline, the partners established a streamlined way for people to access rapid mental health support, regardless of case severity. Designed to be suitable for mild
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
worries and befriending services, through to triage-support and crisis intervention: the 24/7 one-stop mental health helpline offered a solution for those struggling, while reducing pressure on under-resourced GPs and A&E departments. As the aim of the collaborative campaign was to broaden awareness of the provision in Birmingham and Solihull, the key indicator of results was any increase in the volume of calls to the helpline, number of emails sent, and number of Live Chats started. In the first full week that the multi-channel campaign was live, unique calls passed 400 for the first time since its launch in March, with 418 calls; and by the third week, calls to the helpline were over 500, with 525 calls being made in total. The total call numbers increased from 1,466 in December 2020 to 2,074 in January 2021. A great spread of regional coverage was achieved, resulting in 10 pieces of coverage in the month, including online news sites and on-air radio interviews. The campaign saw a total media reach of 290,000 across titles with a combined monthly circulation of over 9 million. Overall, the campaign received very positive feedback (both internally and externally), raised awareness, and most importantly drove calls and action. Since January 2021, weekly call numbers have consistently stayed over 400.
## **NATIONAL LOTTERY COMMUNITY FUND REACHING COMMUNITIES PROJECT**
With COVID-19 bringing about national social restrictions, the Charity wanted to ensure clients had access to wellbeing support during uncertain times. Being in lockdown meant people could not operate the same activities as previously, such as socialising with others and going to the gym to improve physical health. The Charity looked at how it could reach clients whilst at home. This led to the introduction of LWC Online Therapy Room. Funded by the National Lottery Community Fund’s Reaching Communities Programme, the Charity was able to deliver weekly online wellbeing sessions, such as Yoga, Pilates, Fitness & Exercise and Mindfulness and since launching, the service has reached over 3,000 clients. A Live Chat feature was introduced on the website. Funded by Tesco Bags of Help COVID-19 Community Fund, the Charity has been able to interact with clients by enabling them to make enquiries with the administrative team via the website. During 2020/21, 25,617 such Live Chats took place with clients.
## **THE GOOD THINGS FOUNDATION FUNDING**
The growing transition to online platforms brought about by COVID-19 starkly highlighted the digital divide with many clients facing digital exclusion. After securing funding from Good Things Foundation, The Charity worked alongside Consortium members to provide 10 digital devices to clients who did not have access to internet ready devices and lacked digital skills. Clients were given tutorials on using the device and how to use the internet to access further wellbeing information and advice including the NHS.UK, Birmingham City Council services, Living Well UK, and Police websites. After realising the importance of digital inclusion, the Charity was also successful in receiving funding to support Census 2021 delivery also through Good Things Foundation. As the 2021 Census was online, the Charity’s support service offered those without internet access, digital devices, or knowledge, the opportunity to attend onsite sessions to complete the Census with guidance and assistance from trained staff. Over the 9-week delivery period, the Charity was able to support over 150 people.
## **CHILDREN AND YOUNG PEOPLE’S GRANT FUNDED ACTIVITY**
The Charity was also successful in securing funding from Birmingham City Council, Heart of England Community Foundation and BBC Children in Need to improve the wellbeing of children and young people. Working in partnership with Consortium members, the Charity was able to deliver nature therapy, sports and creative activities, and one-to-one support for low intensity mental health needs such as anxiety and depression. The number of children and young people supported through this partnership is 572.
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
## **NATIONAL LOTTERY COMMUNITY FUND’S REACHING COMMUNITIES PROJECT - AFRICAN HEALING CIRCLES**
The Charity introduced African Healing Circles, in collaboration with Consortium members. African Healing Circles are a way to bring those from African and Caribbean backgrounds to meet for group discussions and talk about the impact of race on their mental health. Funded by the National Lottery Community Fund Reaching Communities Programme, this alternative form of therapy has been delivered to over 612 individuals. The Charity is looking to continue to pilot new ways of providing mental health support to people who need it.
## **Beneficiaries of our services**
There are two principal beneficiaries of the charitable group’s services:
- Residents and people working in Birmingham and the West Midlands; and
- Member organisations of LWC
The primary beneficiaries of the services are those patients who have a GP in the area and who are referred or self-refer to LWC for primary care psychological therapies. In the year ended 31 March 2021, over 21,000 patients received services from LWC or its member organisations under contracts with NHS organisations in Birmingham, Sandwell and Worcestershire.
Member organisations receive business support, clinical governance and operational support from LWC and trading opportunities through contracts, which are managed by LWC.
LWC maintains a focus on supporting the Black, Asian and Minority Ethnic (BAME) community and the Charity is pleased that it was able to assist over 2,500 individuals from this community with treatment, as well as recommending the service to a friend or family.
LWC operated a Customer Satisfaction survey, with a response rate of 97% during the year, which was consistent with prior year. 95% of respondents recommended our service, had trust in our staff and felt involved during the process.
## **Financial review**
The financial performance of the group shows income generated of £4,262,138, and costs incurred of £4,370,952. The unrestricted reserves of the group were £893,006 at the start of the year, and restricted reserves were £nil at the start of the year. LWUK had net outgoing resources of £26,340, and LWC reported a net loss of £99,133, thus resulting in net outgoing resources for the group of £108,813, and total funds for the group of £784,193 at 31 March 2021. The unrestricted reserves of the group were £767,535 at the end of the year, and restricted reserves were £16,658 at the end of the year This was broadly in line with expectations, against one scenario which budgeted net outgoing resources of £121,424. There was no significant financial impact arising from the COVID-19 Coronavirus pandemic during the financial year.
The group had cash of £528,700 at 31 March 2021.
## **Principal sources of funds (including any fundraising)**
In previous years, the principal source of funds for the Charity has arisen from the activities of LWC, and this remained the case for 2020/21. As noted in this report it remains the intention to continue to identify other sources of funds for the Charity which are expected to play an important role in delivering the objectives of the Charity. During 2020/21, the
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
Charity applied and was successful in qualifying for grant funding from several providers, with contributions as stated above.
## **Reserves policy and going concern**
The Charity has a reserves policy to maintain reserves equivalent to at least three months of operating costs in cash reserves as activities continue to expand. The minimum reserves needed have been calculated at approximately £150,000, based on committed operational and overhead expenditure. Owing to the Charity having relatively low levels of operating costs, but LWC with staffing and overhead commitments, the trustees believe that the group is in a good financial position, with charitable unrestricted funds totalling £454,904 at 31 March 2021 (£481,243 at 31 March 2020).
These reserves will continue to be utilised in future financial periods and the trustees will review the reserves policy for the Charity on an annual basis, in particular the need for the Charity to hold cash reserves as activity continues to grow.
LWC also has an aim to hold its own cash reserves to cover three months of operating costs and to ensure that it has sufficient cash to manage any delays in receiving payments from customers.
The group had unrestricted reserves totalling £767,534 at 31 March 2021 (£893,006 at 31 March 2020), and restricted reserves totalling £16,658 at 31 March 2021 (£nil at 31 March 2020).
## **Principal risks and uncertainties**
|**Principal risk identified**|**Steps taken to mitigate**|
|---|---|
|The contracting arrangements with the
NHS commissioners are typically annual
renewable contracts,which could
therefore not be renewed and result in the
income reducing significantly. Changes to
the structure within Commissioners could
lead to changes to income received.|Regular discussions continue with NHS
commissioners regarding the quality of
services provided and to identify potential
changes to the services.
Discussions remain ongoing with the two
key contractors,to move to multi-year
contracting to enable effective workforce
planning.
The contracting business model of LWC
enables the business to reduce direct costs
to offset the loss of income.|
|LWC delivers services to a complex, multi-
agency mental health system, and the
quality of services provided by consortium
members needs to reflect this.|Detailed analysis continues with
commissioners,to review the level of
clinical risk and the effectiveness of risk
management with providers (either a desk
review or a real case),leading to a clinical
audit of provider organisations (to be
repeated in 2021).
A substantial and multi-faceted training
programme and clinical guidance is
provided to member organisations.|
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
|**Principal risk identified**|**Steps taken to mitigate**|
|---|---|
||LWC employs individuals to provide clinical
oversight and support.
A business support programme is offered
to all providers and potential providers, to
ensure that each business models on the
basis of sustainability.
A Risk Register is in place to track high
level incidents.
The Trustee Board has identified the need
for a Trustee with senior clinical experience
and is attempting to recruit that role.|
|Provider members of LWC are unable to
attract and retain qualified staff.|A programme of CPD continues to be
implemented by the Charity to enable
current employees of providers to retain
their qualified practitioner status.
Direct recruitment programmes continue
to be undertaken by LWC to attract new
practitioners for provider members.
LWC has provided funding to help
providers develop the clinical governance
needed to support the recruitment and
retention of staff.
Workforce planning discussions continue
with commissioners to ensure that the
future workforce meets their planning
assumptions.
Business modelling continues to be
undertaken on each contract to ensure
that the contract is financially sustainable
at an individual practitioner level.
A new traineeship model is still being
developed with Forward Thinking
Birmingham (FTB), to create a sustainable
training and employment pathway for
people with lived experience.|
|New contract opportunities can provide
clinical and financial risk.|New contract opportunities continue to be
fully assessed to ensure that the providers
have the clinical capacity and skills to
deliver the contract.|
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
|**Principal risk identified**|**Steps taken to mitigate**|
|---|---|
||The Charity provides support to enable
providers to develop and grow
New contract opportunities are modelled
to ensure they are financially viable for the
Charityand the delivery partners.|
|Delays in receipts from customers
negatively impact cash flow.|LWC holding sufficient cash reserves to
enable the business to manage its cash
position should amounts be received after
the due date; credit control procedures
continue to be tightened in relation to
chasing persistent debt.|
|The COVID-19 Coronavirus pandemic
continues to impact the operation of the
group, including its ability to deliver
services to key beneficiaries; similarly it
may impact the financial sustainability of
member organisations and providers.
Financial sustainability of individual
consortium members may impact on
LWC’s delivery of contracted services.|LWUK and LWC remain set up to be fully
operational for remote workers. Home
working arrangements for all staff are
reviewed and co-ordinated by the
management team. Website based
support continues, including LiveChat to
enable services to continue to reach
beneficiaries.
Through annual audits of consortium
members, financial sustainability is
covered, including the requirement for
their own reserves to be at acceptable
levels.|
## **Fundraising**
The Charity does not currently carry out any fundraising activities.
## **Plans for the future**
The Charity intends to continue delivering innovative and effective services through winning funding from organisations that provide grants and trusts funding. The Charity intends to continue to invite applications from potential members to become part of the Consortium.
The Charity intends to continue to provide funding to support innovation in the sector.
LWC intends to continue to deliver Mental Health services across Birmingham and Solihull; alongside this there is a clear view to grow our delivery in other areas. LWC continues to receive funding for IAPT trainees, with 16 trainees confirmed for 2021/22 so enabling it to stay a key player in developing new staff for the Mental Health sector. LWC intends to grow its IAPT delivery through providing more services closer to where people in communities need it.
## **Structure, governance and management**
The organisation is a Charitable Incorporated Organisation (CIO) registered as a charity on ‘ 8 August 2018 in England and Wales. It is referred to within this report as the Charity’.
The Charity is constituted under a constitution document, agreed by members at a general meeting dated 3 December 2018.
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
All trustees give their time voluntarily and any expenses or remuneration reclaimed from the Charity are set out in note 6 to the accounts. The total amount reimbursed to Trustees during the year was £nil (2019/20: £nil).
## **Appointment of trustees**
Trustees are appointed by election at the Annual General Meeting (AGM) of the Charity. Member organisations are asked to nominate suitable trustees and to complete a simple CV and nomination form. An election will occur at any AGM where the number of nominations exceeds the number of trustees retiring (and not seeking re-election).
Trustees retire on a 3-year cycle to ensure that there are continuing trustees on the Board and the aim is to attract two new trustees annually.
There were no new appointments to the Board of Trustees during the year. However, since the year-end, Richard Hadley (a former director of LWC) has been appointed as a trustee to the Charity Board.
## **Trustee induction and training**
The Charity recognises that the trustee role is critical to the successful functioning of the Charity and its trading subsidiary. To achieve this, it has an induction programme for new trustees; the Chair and Executive Assistant ensure that all new trustees are inducted to their role and understand the requirements of a charity trustee (as outlined by the Charity Commission). Additionally, the Executive Assistant manages the induction programme for the trustee and ensures that new trustees meet with appropriate staff and existing trustees and cover the items on the new trustee induction list.
## **Related parties and relationships with other organisations**
As noted above, the Charity has a trading subsidiary, LWC which trades as Living Well Consortium (a company limited by guarantee, registered company number 07412677).
LWC is a membership body and works with and through its members to achieve its objects.
LWC delivers on contracts through services provided by various member bodies, including the provision of their staff to fulfil contracts across IAPT, FTB, LTC, and, during 2020/21, Worcester Triage referrals and a Shropshire. Telford & Wrekin treatment and triage service.
A full list of the members and their activities can be found on the website at www.livingwellconsortium.com.
## **Remuneration policy for key management personnel**
The Charity does not employ any staff, but LWC does. The pay and remuneration of all LWC key management personnel has been reviewed in consultation with third party legal advisors (Ellis Whittam), and appropriate salary bandings were reset in accordance with national benchmarks.
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## **Living Well UK**
For the year ended 31 March 2021
## **Trustees’ annual report**
## **Statement of responsibilities of the trustees**
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the Charity's financial activities during the period and of its financial position at the end of the period.
In preparing financial statements giving a true and fair view, the trustees should follow best practice and:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation
The trustees are responsible for keeping proper accounting records that 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 Charities Act 2011. They are also responsible for safeguarding the assets of the charity and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Auditor**
Sayer Vincent LLP was re-appointed as the Charity's auditor during the year and has expressed its willingness to continue in that capacity.
The trustees’ annual report has been approved by the trustees on 31 January 2022 and signed on their behalf by
L McKiernan
Trustee
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## **Living Well UK**
For the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Living Well UK**
## **Opinion**
We have audited the financial statements of Living Well UK (the ‘the parent charity’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and parent charity balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including 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:
- Give a true and fair view of the state of the group and parent charity’s affairs as at 31 March 2021 and of the group’s incoming resources and application of resources, for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Charities Act 2011
## **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 UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the 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 Living Well UK’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.
## **Other Information**
The other information comprises the information included in the trustees’ 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
14
## **Living Well UK**
For the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Living Well UK**
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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- The information given in the trustees’ annual report is inconsistent in any material respect with the financial statements
- Sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- We have not received all the information and explanations we require for our audit
## **Responsibilities of trustees**
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees 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 group and the parent 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 group or the parent charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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
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## **Living Well UK**
For the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Living Well UK**
misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## **Capability of the audit in detecting irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
16
## **Living Well UK**
For the year ended 31 March 2021
## **Independent auditor’s report to the trustees of Living Well UK**
## **Use of our report**
This report is made solely to the parent charity’s trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the parent charity’s trustees 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 parent charity and the parent charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
31 January 2021 Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
17
## **Living Well UK**
For the year ended 31 March 2021
**Consolidated Statement of Financial Activities (incorporating an income and expenditure account)**
**----- Start of picture text -----**
Note Unrestricted Restricted 2020/21 Unrestricted Restricted 2019/20
Total Total Total Total
£ £ £ £ £ £
Income from:
Donations and legacies 30 - 30 - - -
Charitable activities 2
Therapy Sessions 1,346,204 24,600 1,370,804 1,812,000 - 1,812,000
Counselling and Self-help 1,447,395 41,267 1,488,662 867,620 - 867,620
Support Services 649,925 109,910 759,835 477,577 - 477,577
Wellbeing Services 190,431 3,650 194,081 73,473 - 73,473
Social Prescribing 40,000 - 40,000 - - -
Other Income
Contribution towards training 397,126 - 397,126 149,775 - 149,775
Miscellaneous income 11,600 - 11,600 24,662 - 24,662
Net assets acquired from subsidiary - - - - - -
Total income 4,082,711 179,427 4,262,138 3,405,107 - 3,405,107
Expenditure on:
Raising funds 3 135,526 - 135,526 110,215 - 110,215
Charitable activities 3 - -
Therapy Sessions 1,386,263 43,928 1,430,191 1,710,552 - 1,710,552
Counselling and Self-help 1,054,966 51,291 1,106,257 934,543 - 934,543
Support Services 954,350 8,677 963,027 508,163 - 508,163
Wellbeing Services 177,010 20,051 197,061 92,252 - 92,252
Social Prescribing 10,972 36,939 47,911 - - -
Contribution towards training 454,223 - 454,223 75,144 - 75,144
Local Outreach programmes 9,531 1,883 11,414 14,184 - 14,184
Grants payable 4 25,341 - 25,341 29,085 - 29,085
Tax payable by subsidiaries 9 - - - - - -
Total expenditure 4,208,182 162,769 4,370,951 3,474,138 - 3,474,139
Net movement in funds (125,471) 16,658 (108,813) (69,031) - (69,031)
Reconciliation of funds:
Total funds brought forward 17 893,006 - 893,006 962,037 - 962,037
Total funds carried forward 767,535 16,658 784,193 893,006 - 893,006
**----- End of picture text -----**
18
## **Living Well UK**
For the year ended 31 March 2021
## **Balance Sheets**
**----- Start of picture text -----**
Note The Group The charity The Group The charity
2020/21 2020/21 2019/20 2019/20
Fixed assets:
Tangible assets 10 15,385 - 17,787 -
Total non current assets 15,385 - 17,787 -
Current assets:
Debtors 13 1,057,862 147,835 914,709 -
Cash at bank and in hand 528,700 340,554 573,542 507,533
1,586,562 488,389 1,488,251 507,533
Liabilities:
Creditors: amounts falling due within one year 14 817,754 16,827 613,032 26,290
Net current assets 768,808 471,562 875,219 481,243
Total net assets 16 784,193 471,562 893,006 481,243
Funds:
Restricted income funds:
Grant funded programmes 17 16,658 16,658 - -
Unrestricted income funds:
General funds 767,535 454,904 893,006 481,243
Total funds 784,193 471,562 893,006 481,243
**----- End of picture text -----**
Approved by the trustees on 31 January 2022 and signed on their behalf by
L D McKiernan Chair
19
## **Living Well UK**
For the year ended 31 March 2021
## **Consolidated statement of cash flows**
**----- Start of picture text -----**
2020/21 2020/21 2019/20 2019/20
£ £ £ £
Cash flows from operating activities
Net expenditure for the reporting period (125,472) (69,031)
Depreciation charges 8,898 5,697
(Increase)/decrease in debtors (143,153) (400,422)
Increase/(decrease) in creditors 221,383 194,623
Net cash used in operating activities (38,344) (269,133)
Cash flows from investing activities:
Proceeds from disposal of fixed assets 475 -
Purchase of fixed assets (6,972) (12,986)
Net cash used in investing activities (6,497) (12,986)
Change in cash and cash equivalents in the year (44,841) (282,119)
Cash and cash equivalents at the beginning of the year 573,542 855,661
Cash and cash equivalents at the end of the year 528,700 573,542
**----- End of picture text -----**
20
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **1 Accounting policies**
## a) Statutory information
Living Well UK is a Charitable Incorporated Organisation (CIO) registered with the Charity Commission for England and Wales.
The registered office address is Avoca Court, 23 Moseley Road, Birmingham, B12 0HJ.
## b) Basis of preparation
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The CIO was incorporated on 8 August 2018 and established control over its subsidiary Living Well Consortium) on 3 December 2018.
These financial statements consolidate the results of the Charity and its wholly owned subsidiary on a line-by-line basis. Transactions and balances between the Charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the Charity's balance sheet.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.
- c) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
## d) Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
None of the group’s key sources of income have been negatively impacted during the COVID-19 Coronavirus outbreak, and the trustees believe there are reasonably secure income sources within the next reporting year.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting year.
21
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met
## f) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank
- g) Fund accounting
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
## h) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose
- Expenditure on charitable activities includes the costs of supporting beneficiaries and undertaken to further the purposes of the group and their associated support costs
- • Other expenditure represents those items not falling into any other heading
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
- i) Allocation of support costs
Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.
- Categories for allocation of cost Proportion of total cost • Raising funds 3.1% • Therapy Sessions 32.7% • Counselling & Self-help 25.3% • Support Services 22.0% • Wellbeing Services 4.5% • Social Prescribing 1.1% • Training 10.4% • Local Outreach programmes 0.3% • Grants payable 0.6%
22
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the Charity’s activities.
## j) Operating leases
Rental charges are charged on a straight-line basis over the term of the lease.
## k) Tangible fixed assets
Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
- Computer equipment 33.33% per annum, straight line (over three years)
- Furniture and fixtures 33.33% per annum, straight line (over three years)
- l) Investment in subsidiaries
Investment in subsidiaries is at stated at cost.
- m) Debtors
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
- n) Cash at bank and in hand
Cash at bank and cash 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.
## o) Creditors and provisions
Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
## p) Financial instruments
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 transaction value and subsequently measured at their settlement.
23
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **2 Income from charitable activities**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted
2020/21 2020/21 2020/21 2019/20
Income from all activities: Total
£ £ £ £
Therapy Sessions 1,346,204 24,600 1,370,804 1,812,000
Counselling and Self-help 1,447,395 41,267 1,488,662 867,620
Support Services 649,925 109,910 759,835 477,577
Wellbeing Services 190,431 3,650 194,081 73,473
Social Prescribing 40,000 - 40,000 -
Contribution towards training 397,127 - 397,127 149,774
Miscellaneous income 11,600 - 11,600 -
Donations and legacies 30 - 30 -
4,082,712 179,427 4,262,139 3,380,445
Note 2
Income from Charitable activities:
Unrestricted Restricted Total Unrestricted
2020/21 2019/20
Total
Government contracts: £ £ £ £
Birmingham and Solihull CCG IAPT KPI4, LTC and Covid-19 1,637,825 - 1,637,825 941,093
situational counselling
Birmingham Womens and Childrens NHS trust FTB 1,346,204 - 1,346,204 1,812,000
Hereford & Worcester Triage 452,332 - 452,332 477,577
Midlands NHS ST&W Triage and referrals 197,593 - 197,593 -
Non-government contracts:
Grant income - 179,427 179,427 -
MIND FTB Funding 40,000 - 40,000 -
Donations and legacy 30 - 30 -
3,673,984 179,427 3,853,411 3,230,670
Unrestricted Restricted Total Unrestricted
2020/21 2019/20
Other income: Total
Government contracts: £ £ £ £
Birmingham and Solihull Funded trainees 140,565 - 140,565 0
Health Education England Funded trainees 256,562 - 256,562 149,775
Non-government contracts: - -
Miscellaneous income 11,356 - 11,356 24,000
Profit from disposal of fixed assets 244 - 244 -
Investment income - - - 662
408,727 - 408,727 174,437
**----- End of picture text -----**
24
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **3 Analysis of expenditure**
**----- Start of picture text -----**
2020/21 Charitable activities
Analysis of expenditure Raising funds Therapy Counselling Support Wellbeing Social Training Local Outreach Grants payable Governance Support costs Total
Sessions and Self-help Services Services Prescribing programmes costs
£ £ £ £ £ £ £ £ £ £ £ £
Staff costs (Note 5) - 55,523 15,033 51,443 - - - - - - 421,072 543,071
Payments to partners - 1,172,524 934,865 775,469 168,841 41,139 390,023 9,800 25,341 - - 3,518,002
Advertising and marketing 51,795 - - - 368 - - - - - - 52,163
Staff expenses 64,576 - - - - - - - - - - 64,576
Office expenses - - - - - - - - - - 177,058 177,058
Audit, accountancy and consultancy support - - - - - - - - - 12,700 3,383 16,083
116,371 1,228,047 949,898 826,912 169,209 41,139 390,023 9,800 25,341 12,700 601,514 4,370,951
Support costs 18,759 197,965 153,127 133,301 27,277 6,632 62,873 1,580 - - (601,514) -
Governance costs 396 4,179 3,233 2,815 576 140 1,327 34 - (12,700) - -
Total expenditure 2020/21 135,526 1,430,191 1,106,258 963,028 197,062 47,911 454,223 11,414 25,341 - - 4,370,951
2019/20 Charitable activities
Analysis of expenditure Raising funds Therapy Counselling Support Wellbeing Social Training Local Outreach Grants payable Governance Support Total
Sessions and Self-help Services Services Prescribing programmes costs costs
£ £ £ £ £ £ £ £ £ £ £ £
Staff costs (Note 5) - - - - - - - - - - 363,926 363,926
Payments to partners - 1,398,461 768,863 418,073 73,934 - 61,822 11,670 29,085 - - 2,761,908
Advertising and marketing 20,887 - - - 1,964 - - - - - - 22,851
Staff expenses 69,789 - - - - - - - - - - 69,789
Office expenses - - - - - - - - - - 161,307 161,307
Audit, accountancy and consultancy support - - - - - - - - - 94,358 - 94,358
90,676 1,398,461 768,863 418,073 75,898 - 61,822 11,670 29,085 94,358 525,233 3,474,138
Support costs 16,564 264,562 140,448 76,370 13,864 - 11,293 2,132 - - (525,233) -
Governance costs 2,976 47,529 25,232 13,720 2,491 - 2,029 383 - (94,358) - -
Total expenditure 2019/20 110,215 1,710,552 934,543 508,163 92,252 - 75,144 14,184 29,085 - - 3,474,138
**----- End of picture text -----**
25
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **4 Grant making activities**
During the year, the charity made grant award offers to consortium members.
|**Cost**
Innovations grants
Venues grants
Pilot scheme grants
Technology grants
Reclaim of grants made in prior year
At the end of the year|**Grants to**
**institutions**
**£**
-
-
-
30,840
(5,499)
25,341|**Total**
**2020/21**
**£**
-
-
-
30,840
(5,499)
25,341|**Total**
**2019/20**
**£**
22,700
1,500
4,885
-
-|
|---|---|---|---|
||||29,085|
Technology grants (each in the sum of £2,500 paid as bank transfer) were awarded to Better Pathways, Birmingham MIND, Change Birmingham Brief Therapy, Disability Resource Centre, icap, Legacy WM CIC, Murray Hall Community Trust, Spring to Life, St Martin Centre for Health and Healing, and Women’s Consortium.
Technology grants (in the sum of £2,500 in the form of IT equipment purchased) were awarded to Bethel Health and Healing Network, and Our Roots. A technology grant (in the sum of £840 paid as bank transfer) was awarded to WAITS (Women Acting in Today’s Society).
In the prior year, Innovations grants were awarded to Karis Neighbour Scheme £391; Legacy WM CIC £4,400; Newman University £4,910; Pattigift £4,999; Sifa Fire Side £5,000, and Spring to Life £3,000. Venues grants were awarded to Citizen Coaching £500; Pattigift £500, and Sport 4 Life UK £500. A pilot grant was awarded to Change Brief Therapy of £4,885. The grants awarded to Pattigift in 2019/20 were subsequently reclaimed during 2020/21.
26
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **5 Net expenditure for the reporting period**
|**Net expenditure for the reporting period**|||
|---|---|---|
||**2020/21**|**2019/20**|
||**£**|**£**|
|This is stated after charging:|||
|Depreciation|8,898
|5,697|
|Operating lease rentals:|||
|Property|17,550
|17,550|
|Other|624|-|
|Auditor's remuneration (excluding VAT):|||
|Audit|11,700
|11,500|
|Other services|875
|875|
## **6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
|Salaries and wages
Social security costs
Employer’s pension contribution|**2020/21**
**£**
493,381
39,012
10,678
543,071|**2019/20**
**£**
332,917
25,383
5,626|
|---|---|---|
|||363,926|
No employee earned more than £60,000 during the year (2019/20: none).
No trustees earned any remuneration during the year (2019/20: none). Trustees were reimbursed a total of £nil during the year (2019/20: £nil).
The total value of employee benefits (including pension contributions and employer's national insurance) of the key management personnel was £136,663 (2019/20: £63,882).
The total amount paid to key management personnel under a consultancy agreement was £nil (2019/20: £18,600).
## **7 Staff numbers**
The average number of employees (head count based on number of staff employed) during the year was 21 (2019/20: 15).
27
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **8 Related party transactions**
Related party transactions are all carried out at arms’ length.
Graham Beaumont was a Director of Living Well Consortium Limited during the previous financial year and is also a Director of Initiative for Social Entrepreneurs (ISE) CIC. Living Well Consortium Limited’s office lease is with ISE CIC; the rent charged for 2020/21 was £17,550 (2019/20 financial year: £17,550). The amount owed by Living Well Consortium Limited to ISE CIC at 31 March 2021 was £5,265 (at 31 March 2020: £10,722). Graham Beaumont is also a director and secretary of Knowledge Plus Consultancy Limited which provided executive support to Living Well Consortium Limited during the current financial year; the amount charged by that Company for the 2020/21 financial year was £600 (2019/20: £25,800). The amount owed by Living Well Consortium Limited to Knowledge Plus Consultancy Limited at 31 March 2021 was £nil (at 31 March 2020: £1,264). The amounts owed by Living Well UK to ISE CIC and Knowledge Plus Consultancy at 31 March 2021 were £nil (at 31 March 2020: £nil).
Amra Dautovic, a Director of Living Well Consortium Limited, is also Managing Director of MyTime, linked to Richmond Fellowship, a Company which provided services to fulfil various contracts during the financial year; the amount charged by that Company for these services during 2020/21 was £321,483 (2019/20: £198,239). The amount owed by Living Well Consortium Limited to Richmond Fellowship at 31 March 2021 was £129,487 (at 31 March 2020: £64,680). The amount owed by Living Well UK to Richmond Fellowship at 31 March 2021 was £nil (at 31 March 2020: £nil).
Richard Hadley, a former Director of Living Well Consortium Limited during the year and now a Trustee of Living Well UK, is an independent consultant. No consultancy support was provided during 2020/21, so the amount charged for this during 2020/21 was £nil (2019/20: £2,200). The amount owed by Living Well Consortium Limited to Richard Hadley at 31 March 2021 was £nil (at 31 March 2020: £nil). The amount owed by Living Well UK to Richard Hadley at 31 March 2021 was £nil (at 31 March 2020: £nil).
Davy Hay, a Trustee of Living Well UK, is Managing Director of Pattigift Therapy CIC, a Company which provided services to fulfil various contracts during the financial year; the amount charged by that Company for these services during 2020/21 was £144,630 (2019/20: £271,325). Pattigift Therapy CIC were also in receipt of grant awarded by the Charity during 2019/20, the amount offered was £5,499. The amount owed by Living Well UK to Pattigift Therapy CIC at 31 March 2021 was £nil (at 31 March 2020: £nil).
Martin Hogg, a Director (and Chair) of Living Well Consortium Limited, is CEO of Citizen Coaching, a Company which provided services to fulfil various contracts during the financial year; the amount charged by that Company for these services during 2020/21 was £724,745 (2019/20: £337,674). The amount owed by Living Well Consortium Limited to Citizen Coaching at 31 March 2021 was £81,555 (at 31 March 2020: £47,916). The amount owed by Living Well UK to Citizen Coaching at 31 March 2021 was £nil (at 31 March 2020: £nil).
Lovemore Masiane, a Director of Living Well Consortium Limited and a Trustee of Living Well UK, is employed by Our Roots CIC, a Company which provided services to fulfil various contracts during the financial year; the amount charged by that Company for these services during 2020/21 was £1,703,562 (2019/20: £1,276,764). The amount owed by Living Well Consortium Limited to Our Roots CIC at 31 March 2021 was £197,781 (at 31 March 2020:
28
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
£186,726). Our Roots CIC were also in receipt of grant awarded by the Charity during 2020/21, the amount offered was £2,500. The amount owed by Living Well UK to Our Roots at 31 March 2021 was £nil (at 31 March 2020: £nil).
Louise McKiernan, a Director of Living Well Consortium Limited and a Trustee of Living Well UK, is CEO of Disability Resource Centre (DRC), a Company which provided services to fulfil various contracts during the financial year; the amount charged by that Company for these services during 2020/21 was £12,530 (2019/20: £7,050). The amount owed by Living Well Consortium Limited to DRC at 31 March 2021 was £nil (at 31 March 2020: £nil) . DRC were also in receipt of grant awarded by the Charity during 2020/21, the amount offered was £2,500. The amount owed by Living Well UK to DRC at 31 March 2021 was £nil (at 31 March 2020: £nil).
Ronald Patrick Owttrim, a Director of Living Well Consortium Limited is also a Director of Health Exchange Limited (HEX). HEX provided services to fulfil various contracts during the financial year; the amount charged by that Company for these services during 2020/21 was £402,767 (2019/20: £544,869). The amount owed by Living Well Consortium Limited to Health Exchange Limited at 31 March 2021 was £72,985 (at 31 March 2020: £64,647). The amount owed by Living Well UK to Health Exchange Limited at 31 March 2021 was £nil (at 31 March 2020: £nil).
Aftab Rahman, a Trustee of Living Well UK, is also a founder of Legacy WM. Legacy WM were in receipt of grants awarded by the Charity during 2020/21, the amount offered was £2,500 (2019/20: £4,400). The amount owed by Living Well UK to Legacy WM at 31 March 2021 was £nil (at 31 March 2020: £nil).
There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.
## **9 Corporation Tax**
The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. LWC may distribute available profits to the parent charity under Gift Aid.
29
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **10 Tangible Fixed Assets**
|**Cost**
At the start of the year
Additions in the year
Disposals in the year
At the end of the year
**Depreciation**
At the start of the year
Charge for the year
Disposals in the year
At the end of the year
**Net book value**
At the start of the year
At the end of the year|**Computer**
**equipment**
**£**
29,950
6,972
-
36,922
15,807
7,147
-
22,954
14,143
13,968|**Furniture**
**and**
**Fixtures**
**£**
5,387
-
(1,214)
4,173
1,743
1,751
(738)
2,756
3,644
1,417|**Total**
**£**
35,337
6,972
(1,214)|
|---|---|---|---|
||||41,095|
||||17,550
8,898
(738)|
||||25,710|
||||17,787|
||||15,385|
All fixed assets are held by the charity's trading subsidiary, LWC. All of the above assets are used for charitable purposes.
30
**Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **11 Subsidiary Undertaking**
The Charity has control over the activities of Living Well Consortium Limited, a company registered in England. The company number is 07412677. The registered office address is 23 Moseley Road, Birmingham, B12 0HJ.
All activities have been consolidated on a line-by-line basis in the statement of financial activities.
Available profits may be distributed under Gift Aid to the parent charity.
The trustees Louise McKiernan, and Lovemore Masiane are also directors of the subsidiary, and the trustee Richard Hadley was also a director of the subsidiary before resigning in June 2021.
A summary of the results of the subsidiary for their full financial year is shown below:
|Turnover
Cost of sales
Gross surplus
Administrative expenses
Surplus/(Deficit) on ordinary activities before interest and taxation
Profit on disposal of fixed assets
Interest receivable and similar income
Surplus/(Deficit) on ordinary activities before taxation
Taxation on profit on ordinary activities
(Loss)/ Profit for the reporting period
Retained earnings
Total retained earnings brought forward
(Loss)/ Profit for the reporting period
Distribution under Gift Aid to parent charity
Total retained earnings carried forward
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
Reserves|**2020/21**
**£**
4,102,676
(3,374,654)
728,022
(827,400)
(99,377)
244
-
(99,133)
-
(99,133)
411,761
(99,133)
-
312,628
1,232,351
(919,724)
312,628|**2019/20**
**£**
3,404,445
(2,722,927)|
|---|---|---|
|||681,518
(707,539)|
|||(26,022)
-
662
(25,359)|
|||-|
|||(25,359)|
|||614,997
(25,359)
(177,877)|
|||411,761|
|||998,504
(586,743)|
|||411,761|
In the current year, the Board of LWC have agreed to donate the value of recharges from LWC to the parent charity based on an agreed proportion of salaries, legal expenses, rent, marketing, IT and HR support costs; the value of this donation was £97,167 (in 2019/20 there was an equivalent donation of recharges from LWC to the parent charity totalling £49,846).
31
**Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **12 Parent charity**
The parent charity's gross income and the results for the year are disclosed as follows:
|Gross income
Result for the year|**2020/21**
**£**
179,427
(26,340)|**2019/20**
**£**
227,723|
|---|---|---|
|||84,360|
## **13 Debtors**
|Trade debtors
Other debtors
Prepayments
Amounts owed from subsidiary|**The**
**group**
**2020/21**
**£**
860,530
59,652
137,680
-
1,057,862|**The**
**charity**
**2020/21**
**£**
-
29,010
32
118,793
147,835|**The**
**group**
**2019/20**
**£**
899,035
1,374
14,300
-
914,709|**The**
**charity**
**2019/20**
**£**
-
-
-
-|
|---|---|---|---|---|
|||||-|
## **14 Creditors: amounts falling due within one year**
|Trade creditors
Taxation and social security
Accruals
Other creditors
Deferred income|**The**
**group**
**2020/21**
**£**
589,152
54,220
156,937
989
16,456
817,754|**The**
**charity**
**2020/21**
**£**
12,169
-
3,669
989
-
16,827|**The**
**group**
**2019/20**
**£**
464,700
53,344
63,157
23,185
8,646
613,032|**The**
**charity**
**2019/20**
**£**
851
-
2,254
23,185
-|
|---|---|---|---|---|
|||||26,290|
32
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **15 Deferred income**
|Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year|**The group**
**2020/21**
**£**
8,646
(8,646)
16,456
16,456|**The charity**
**2020/21**
**£**
-
-
-
-|**The group**
**2019/20**
**£**
15,738
(15,738)
8,646
8,646|**The charity**
**2019/20**
**£**
-
-
-
-|
|---|---|---|---|---|
Deferred income includes income for trainee funded positions running to June 2021, and funded activities in 2021/22.
## **16 Analysis of group net assets between funds**
|Tangible fixed assets
Net current assets
Net assets at 31 March 2021
_Tangible fixed assets_
_Net current assets_
_Net assets at 31 March 2020_|**General**
**unrestricted**
**£**
15,385
752,150
767,535
**_General_**
**_unrestricted_**
**_£_**
_17,787_
_875,219_
_893,006_|**Restricted**
**funds**
**£**
-
16,658
16,658
**_Restricted_**
**_funds_**
**_£_**
_-_
_-_
_-_|**Total funds**
**£**
15,385
768,808|
|---|---|---|---|
||||784,193|
||||**_Total funds_**
**_£_**
_17,787_
_875,219_|
||||_893,006_|
33
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **17 Movements in funds**
|Restricted funds:
Grant funds
Unrestricted funds:
General funds
Total funds
_Unrestricted funds:_
_General funds_
_Total funds_||**At 1 April**
**2020**
**£**
-
893,006
893,006
**_At 1 April_**
**_2019_**
**_£_**
_962,037_
_962,037_|**Income &**
**gains**
**£**
179,427
4,082,711
4,262,138
**_Income &_**
**_gains_**
**_£_**
_3,405,107_
_3,405,107_|**Expenditure &**
**losses**
**£**
(162,769)
(4,208,182)
(4,370,951)
**_Expenditure &_**
**_losses_**
**_£_**
_(3,474,138)_
_(3,474,138)_|**At 31**
**March**
**2021**
**£**
16,658
767,535
784,193|
|---|---|---|---|---|---|
|||||||
||||||**_At 31_**
**_March_**
**_2020_**
**_£_**
_893,006_|
||||||_893,006_|
Restricted funds include grant funding received for projects to be delivered during the year and continuing into 2021/22.
||**At 1**|**Income &**|**Expenditure**|**At 31**|
|---|---|---|---|---|
||**April**|**gains**|**& losses**|**March**|
||**2020**|||**2021**|
||**£**|**£**|**£**|**£**|
|Restricted funds:|||||
|National Lottery - Reaching Communities|-|36,000|(36,000)|-|
|Tesco Bags of Help|-|500|(500)|-|
|Birmingham City Council|-|10,000|(10,000)|-|
|BBC Children in Need|-|26,667|(26,667)|-|
|Childhood Trauma|-|16,617|(16,617)|-|
|National Lottery - African Healing Circles|-|69,068|(55,137)|13,931|
|Good Things Foundation|-|19,666|(16,939)|2,727|
|Barclays Grants|-|300|(300)|-|
|CAST Census|-|609|(609)|-|
|Total funds|-|179,427|(162,769)|16,658|
## **National Lottery - Reaching Communities**
This grant was used to help ensure clients were able to access wellbeing support during Covid restrictions, by introducing an online therapy room and providing regular online wellbeing sessions; during 2020/21, over 3,000 clients benefitted from this.
34
## **Living Well UK**
For the year ended 31 March 2021
## **Notes to the financial statements**
## **Tesco Bags of Help**
This grant was used to help introduce a LiveChat feature on the website, enabling clients to make enquiries and get in touch with the charity online; during 2020/21, over 25,000 LiveChat interactions took place.
## **Birmingham City Council, BBC Children in Need, Childhood Trauma**
These grants were used to help engage with Heart of England on a Young Person’s provision for 11–24-year-olds. The grants were used to in delivering nature therapy, sports and creative activities with 1:1 support for low intensity mental health needs.
## **National Lottery - African Healing Circles**
This grant was designed to bring those from African and Caribbean backgrounds to meet for group discussions and talk about the impact of race on their mental health.
## **Good Things Foundation**
This grant was used towards tackling inequalities in digital access, by providing equipment, and giving tutorials to help clients access websites for further wellbeing services.
## **Barclays Grants**
This grant was also used to help the charity reach those without internet access, digital devices, or the knowledge on how to access wellbeing services online.
## **CAST Census**
This grant was used to help those without internet access or their own digital devices to complete the 2021 Online Census.
## **18 Operating lease commitments payable as a lessee**
The groups total future minimum lease payments under non-cancellable operating leases are as follows:
**----- Start of picture text -----**
Other Property Property
2020/21 2020/21 2019/20
£ £ £
The groups total future minimum lease payments under non-
cancellable operating leases is as follows:
Less than one year 624 17,550 23,948
Two to five years 2,652 - -
3,276 17,550 23,948
**----- End of picture text -----**
All operating leases are held by the charity's trading subsidiary Living Well Consortium.
35