OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

ST CHRISTOPHER’S FELLOWSHIP (A company limited by guarantee)

REPORT AND GROUP FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

ST CHRISTOPHER’S FELLOWSHIP REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS Page
Reference and Administrative Details 2 - 3
Report of the Chair 4 - 5
Strategic and Board Report
6 – 29
Report of the Independent Auditors 30 – 33
Consolidated Statement of Comprehensive Income 34
Consolidated and Parent Statement of Financial Position 35
Consolidated and Parent Statement of Changes in Reserves 36
Consolidated Statement of Cash Flows 37
Notes to the Financial Statements 38 – 61

1

ST CHRISTOPHER’S FELLOWSHIP REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021

LEGAL DETAILS

Registered Name : St Christopher’s Fellowship Other names used: St Christopher’s A company limited by guarantee, registered no. 321509 Registered Charity no. 207782 Registered Provider of Social Housing no. LH1832

REGISTERED OFFICE

1 Putney High Street London SW15 1SZ

TRUSTEES/ MEMBERS/ DIRECTORS

The Trustees who are also Directors and members who served from 1 April 2020 up to the date of approval of these financial statements were as follows:

Joe Anichebe (Honorary Treasurer) David Brown Angela Dakin (Vice Chair) Rupert Duff (appointed 3 September 2020) Kelly Dooley John Halliwell Daniel Hobbs Victoria Markiewicz (appointed 11 May 2021) Bert O’Donoghue (Chair) Sally O’Neill Akua Doreen Owusu-Akonor Dinesh Visavadia Thomas Wilson (retired 9 September 2020)

COMPANY SECRETARY

Sara Kortenray

2

ST CHRISTOPHER’S FELLOWSHIP REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021

PRINCIPAL STAFF

Doris Afreh FCIPD PG Dip HRM Geneva Ellis BA (Hons) M.Sc Faye Puttock ACMA CGMA Anne Seed Philip Townsend BA (Hons) PG Dip HS FCIH Jonathan Whalley

(Director of People) (Director of Income & Development) (Director of Finance) (Director of Operations–Isle of Man) (Director of Operations-UK) (Chief Executive)

SOLICITORS

Trowers & Hamlins 3 Bunhill Row London EC1Y 8YZ

Russell-Cooke 2 Putney Hill Putney London SW15 6AB

BANKERS

National Westminster Bank 16 Wimbledon Hill Road London SW19 7ZD

EXTERNAL AUDITORS

Beever and Struthers St. George’s House 215-219 Chester Road Manchester M15 4JE

3

ST CHRISTOPHER’S FELLOWSHIP REPORT OF THE CHAIR FOR THE YEAR ENDED 31 MARCH 2021

I am delighted to present our Annual Report and Accounts for the year ended March 2021. The care of children and young people has remained our priority despite a tumultuous year with the pandemic, further lockdowns and Brexit. Placement stability has remained above the national average; and no child or young people in our care had their placement ended due to COVID-19.

Credit goes to our staff teams and foster carers, especially through periods of sickness absence and self-isolation, for this impressive achievement. Having spoken with St Christopher’s managers and foster families throughout lockdown, I remain impressed by their flexibility, creativity and professionalism in adapting to the change and uncertainty bought on by the pandemic.

Some of the operational successes over the past year include:

In a very tough and competitive environment I am delighted to report that our revenues increased to £18.2m during the year. The needs of looked after children and young people are at the core of our mission and drive all of our activities. We will always put the children and young people first and so we have added our voice to the fairer fostering campaign, #forchildrennotprofit.

2020 marked our 150[th] year anniversary; we had been looking forward to celebrating this with our staff, foster carers, children and young people. Sadly, the prolonged nature of the pandemic has not allowed this to happen.

As an organisation, we are already starting to see the impact of the pandemic on our children and young people. Our education, therapeutic and support into employment work is needed now more than ever. The National Care Review marks a once in a lifetime opportunity to improve the sector. We are looking forward to sharing our perspectives, always centering on the lived experience of our children and young people.

We are indebted to all those who share our vision, and have supported us throughout the year: foster carers, commissioners, local authorities, government departments, Ofsted and volunteers. Thank you also to our donors who have provided funding for laptops, homeschooling and therapeutic support, and our employment services. You have enabled us to add value beyond what we are contracted to do – creating brighter futures for our children and young people.

4

ST CHRISTOPHER’S FELLOWSHIP REPORT OF THE CHAIR FOR THE YEAR ENDED 31 MARCH 2021

I would like to say a big thank you to my fellow trustees, who volunteer their time and expertise selflessly. Your guidance has been invaluable, both to me and the senior leadership team. And finally, to end where I started, my thanks go to our staff who have worked tirelessly throughout the pandemic support the children and young people in our care. Without you, we could not achieve our mission or impact young people’s lives as we do.

Bert O’Donoghue Chair of Trustees

15 September 2021

5

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

1. MANAGEMENT

AIMS AND ACTIVITIES

At St Christopher's we work in the British Isles as a charity and Registered Provider of Social Housing. We currently work in Southern, Eastern and Central England and the Isle of Man, providing services to young people in care, care leavers and those on the edge of care. Our services include foster homes, children’s homes (including a secure children’s home), homes for care leavers and homeless teenagers, outreach support, return home interviews for young people who run away from home, preventative outreach, education support and therapeutic provision. We also provide consultancy to local authorities and charities.

OBJECTS SET OUT IN GOVERNING DOCUMENT

Our objectives as set out in the Articles of Association are to assist people in need, particularly children and young people and people with learning disabilities, to relieve poverty and to undertake any other charitable purpose.

Our priorities during the year continued to be:

STRATEGIES FOR ACHIEVING OBJECTIVES

In November 2017, we started the process of setting our Vision and Strategy for 2018 to 2023. We felt it was important that the strategy properly reflected St Christopher's by being participative, aligned with our ways of working, and centred on young people. Children, young people and staff from across the organisation had their say on our strategy so that it is built upon ideas that will benefit those we work with, now and in the future.

Our three strategic aims are:

1. Create more excellent homes, fostering and support for children & young people

Children and young people have told us that it's the relationships with carers in our fostering and residential services that make their houses feel like homes. Over the five years of the strategic plan, we are developing more excellent homes to support even more children in care and care leavers. We are doing this by focusing on growing our residential, fostering and support to provide services to double the number of children and young people by 2023.

2. Improve emotional wellbeing

We will develop clinical therapeutic input across all of our services, so young people, carers and staff receive the expert advice and support they need, when they need it. Building on our existing strengths in attachment theory and social pedagogy, we will partner with mental health organisations to develop holistic, empowering, relationship-centred ways to improve emotional

6

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

wellbeing. After successful development of the Isle of Man therapeutic services, we have been using this learning to inform the ongoing development of our UK based therapeutic service.

3. Promote lifelong learning and thriving

Our staff succeed with young people who have experienced very difficult starts in life through relationship-centred, creative approaches to learning that equip them for life in the world. We are increasing capacity in the education and life skills teams to support more young people to achieve their potential

We will collaborate with young people to help make each step of their journey to independence easier, maintaining important relationships with people that matter most, whether friends, family, carers, or St Christopher's staff. We will continue to invest in training and supporting our staff to enhance learning and develop skills to promote growth and career progression.

We believe that practical experience in the direct provision of services for children and young people can usefully inform policy development for looked after children, care leavers and vulnerable young adults. Because of this we participate in appropriate consultations and other initiatives that inform the development of government policy. For example, we responded to several Department for Education consultations, including changes to the Adoption and Children (Coronavirus) (Amendment) (No.2) Regulations that were implemented when the pandemic started; unregulated provision for children in care and care leavers and the impact of COVID-19 on education and children’s services. In each case, the perspectives of staff working in our services and young people’s experiences were central to our submissions. We also submitted evidence on race and class related barriers experienced by our young people in education, employment and policing.

In January 2021, Education Secretary Gavin Williamson announced a full independent review of England’s Children’s Social Care System. It focuses on key areas of practice, including how better to meet the needs of children and young people, how to strengthen and support families to reduce the numbers of children coming into the care system, how to improve safeguarding, improve the care experience, promote stability in the workforce and importantly to improve the accountability for those who are responsible for children’s outcomes. This once in a lifetime opportunity has the potential to be the biggest shake up in children’s social care practice since the introduction of the 1989 Children’s Act more than 30 years ago. We are excited to participate in this review and feed in St Christopher’s experiences, knowledge and advice. At the heart of our involvement are the things that children and young people want to see changed in the care system and how we can build genuine, impactful relationships with them. We want the voices of our children and young people to be heard, recognised and responded to. We look forward to reporting back on this in our 2021/22 Annual Report.

As a charity, we aim to remain financially robust and ensure that the organisation and its activities are sustainable. This will enable the tradition, started in 1870, of providing services for children in care, on the edge of care and leaving care to continue. We also recognise that new initiatives and services can require an initial investment, prior to the services becoming financially sustainable in the longer-term. Consequently, we aim to ensure we have sufficient reserves to both manage risk and develop new services.

The Council’s target is, in the event that all income for St Christopher’s cease, we have 2 months of operating cost in reserves in order to meet our short-term obligations. This is a stepped reduction from prior year targets of four months, which was reviewed and considered overly cautious and restrictive to our development. The first step was to move to three months

7

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

of annual operating cost during the early stages of the COVID-19 pandemic to mitigate against the number of unknown impacts.

VALUE FOR MONEY

The financial environment remains difficult, even prior to the COVID-19 pandemic and there is a clear need to deliver value for money to our partner commissioners. Almost all of our services are delivered and commissioned within competitive markets, whether they are tendered contracts, framework contracts or spot purchase services. Accordingly, we have to take into account both the quality of services and their cost. We are committed to maintaining quality to ensure that all of the children and young people who rely on our services are loved and cared for and have the chance to thrive and grow. Where a service is provided to a single commissioner there is scope to tailor the service to its specific requirements, subject to the ability to sustain a quality service. Where services receive placements from multiple commissioners, we define the service’s specification and cost accordingly. We then keep the level of demand for the service under review.

Council seeks to ensure that our assets are used effectively to deliver services for children, young people and adults. We aim to ensure that all services we undertake are financially sustainable in the longer-term, and the performance of services is reviewed in this context.

We’re grateful for the support of our amazing donors and supporters. This year we have seen people raise money for all manner of activities from sponsored walks, bike rides and raffles – all the money raised helps to enrich young people’s time with St Christopher’s, help them reach their full potential and create brighter futures.

Our thanks extends to each and every trust and foundation, corporate partner, major donor, community group, and individual (whether major donor, leaving a gift in will or simply doing sponsored activities), and not forgetting the gifts and presents we have received at Christmas and Easter for our children and young people.

Each year they enable us to deliver life skills work with children to prepare them for independence, provide tailored education support to help children thrive in education, support into employment and to ensure young people’s voices are heard.

The Fundraising team are committed to portraying the children and young people at St Christopher’s in a respectful way. We see them as people in their own right, not adults in waiting, and their ideas and suggestions bring a fresh perspective. We seek their participation (participation is voluntary) and value their opinion on our fundraising appeals and articles.

We are registered with the Fundraising Regulator and adhere to its Code of Fundraising Practice which covers the requirements charities must follow as set out in the Charities Act 2016. We do not currently raise funds through telephone fundraising or work with an agency to do so. We are clear on our website and fundraising communications how to advise us if our donors no longer wish to receive our mailings or communications from us. We have a clear complaints policy which is accessible from our website and we plan to deal with them quickly and appropriately. We had no fundraising complaints from donors in the year ended March 2021. We are signed up to the Fundraising Preference Service to allow people to opt out of receiving fundraising communications from us and, this year, we actioned one request.

We have improved and updated our fundraising pages on the website which will improve the user experience, celebrate our wonderful supporters and donors and make it easier for people to support us.

8

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

St Christopher’s has a team of 3 (1.7 full time equivalent) comprising a Trusts and Grants Manager and a Head of Fundraising and Communications employed directly by the charity, and a longstanding fundraising consultant. All of our fundraising staff are members of the Institute of Fundraising.

As a Housing Association, our accounts are prepared under the Housing Statement of Recommend Practice (SORP). These differ slightly from the Charity SORP with one of the differences relating to the treatment of Restricted Grants. Under the Charities SORP income received and not yet spent would be credited to the Restricted Reserve. This is held as deferred income within Creditors Due with One Year under the Housing SORP.

At St Christopher's, we want to break down the barriers that our young people can face that can prevent them from following their dreams and aspirations and trying new things. We support them to access education, training, and work. We want young people to be as prepared as possible for the transition of leaving care.

The diamond model is at the heart of St Christopher's social pedagogic approach to supporting young people and is founded on the belief that we all have a 'diamond' within us that represents our value, skills, talents, potential and ability to shine. As many of our young people have lived through significant trauma and deprivation, they have missed out on ordinary childhood opportunities to try new experiences and, as a result, can struggle to see their unique value and potential. By involving them in a range of different shared activities, our staff create opportunities to discover and share their diamonds, learn new skills, build positive relationships and develop self-esteem and emotional resilience.

We raise funds to ensure we can continue to deliver the following initiatives in line with our strategic aims: Create more excellent homes, fostering and support for children & young people; Improve emotional wellbeing, Promote lifelong learning and thriving.

LIFE SKILLS

Our Life Skills teamwork alongside our young people to develop the knowledge, skills and attributes needed to thrive in society. They develop practical life skills such as cooking, shopping, budgeting, problem-solving skills, communication skills, and self-awareness.

Our Life Skills team are essential in helping our young people prepare for moving into semiindependent living and leaving care. They help with practical tasks (such as opening a bank account and budgeting) but also building their self-esteem and resilience.

Our young people tell us that loneliness is often the most significant challenge they face when they move on from their children's homes.

OUR PARTICIPATION AND CO-PRODUCTION WORK

At St Christopher’s our participation team look for opportunities for young people to be heard in ways that suit them. We don’t just listen to them during consultation activities, surveys or council meetings, but in everyday conversations such as on the way to school or when we cook dinner. We think about what they tell us through their behaviour and choices or when they say nothing. Young people set the participation agenda, which initiates changes that have the most significant impact. We use creative methods and group activities to start conversations and discover how we can change.

9

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

As a result, young people are involved in decisions at all levels of the organisation across all departments. Not only do they shape the way their own homes and services are run, but they also feed into our strategy, policies, recruitment and marketing work.

EDUCATION

We've developed a specialist education service (PULSE) in response to the need to support young people in children's homes to improve lifelong learning and thriving. Educational support to the carers of looked after children and care leavers ensure that our young people receive tailored support to engage in education. The team provides specialist 1:1 bespoke tuition and works with home staff to support and promote understanding of learning requirements and resources, alongside an awareness of trauma-informed learning practice.

SUPPORT INTO EMPLOYMENT

Our experienced Support into Employment team understand the challenges of offering work placements and experience, so we offer support every step of the way for both the employee and employer. As care leavers grow up, they need help to identify career opportunities, navigate their finances, access work experience, and learn workplace etiquette like all of us. The team provide support every step of the way. They don't just focus on getting everyone a job straight away but instead work with each young person to grow their confidence and raise their aspirations to secure the best role for them.

THE DIAMOND FUND

The Diamond Fund exists to help create brighter futures for young people by easing their access to education, training and work and enabling them to participate in enjoyable, creative activities with their peers and staff, building relationships and resilience through positive shared experiences.

Through this initiative, our young people have been able to buy laptops, art materials for a design course, cooking equipment for a catering business and a printer for schoolwork.

WELCOME VOUCHERS

Most young people who arrive at St Christopher's have found themselves in care for reasons beyond their control. For these young people, a safe and established home environment is crucial to help them progress. When these young people come to one of St Christopher's Fellowship's residential homes, we work hard to help them feel welcome and ensure they have a sense of control over an element of their life and future. One of the first ways we do this is through welcome vouchers.

Through feedback gathered from young people, we identified the most effective way to help them feel welcomed and at home when they join us is by allowing them to purchase a small item that they want for themselves. Welcome vouchers enable young people to choose an item to personalise their room. This small gift has a positive impact on the lives of the young people who arrive at our services and gives them a sense of control over their environment.

When they leave our care, we don't just want young people to have the skills to survive - we want them to thrive and enjoy happy, fulfilling lives.

10

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

VALUE FOR MONEY METRICS

The Regulator of Social Housing issued the new Value for Money (‘VfM’) Standard on 9 March 2018 together with a Code of Practice. Value for Money metrics was introduced for reporting periods up to 31 March 2018 and aims to provide an agreed set of metrics for housing associations which compare performance and provide a value for money check.

Social housing is one small facet of the work that St Christopher’s does, with social housing lettings making up just 1.7% of our Group turnover in the year over 71 owned bed spaces and 10 managed bed spaces. We are therefore impacted by the smaller margins for supported housing as opposed to general needs as well as not having the economies of scale accessible.

2021 2021 2020 2020
Group Parent Group Parent
Business Health
Operating Margin (social housing
lettings)1 1% 2% (32%) (32%)
Operating Margin (overall)2 0% 0% (3%) (2%)
EBITDA MRI Interest Cover3 (3,039%) (2,372%) (10,338%) (4,131%)

1 Social Housing letting operating margin as a percentage of turnover

2 Overall operating margin as a percentage of turnover

3 Operating surplus/(deficit) less interest, taxation, depreciation, amortisation plus major repairs divided by interest capitalised, interest payable and financing costs.

The social housing operating margin improved in 2021 and moved to a positive position. A cyclical maintenance plan was introduced in 2018 and outstanding works have caught up, thereby reducing the planned maintenance works compared to previous years. In addition, maintenance work reduced due to the COVID-19 pandemic as homes were required to limit the number of visitors to increase infection control, as well as difficulties in obtaining contractors. Voids had been an issue in previous years and have been improving year on year, remaining stable in 2021 £106k in 2018, £74k in 2019, £29k in 2020 and £29k in 2021.

The overall operating margin has improved from a negative 3% last year to 0% this year. The prior year included significant underperformance in spot purchase and fostering placement numbers, coupled with additional costs from a development programme and additional costs from safely staffing services on the Isle of Man during an extremely busy year. Whilst the issues with spot purchase and fostering placement numbers remained a problem, development programme costs were controlled to be drawn down only if affordable. Savings were also made across the organisation as a result of reduced travel and projects needing to be put on hold during the lockdown.

St Christopher’s has no long or short-term debt and therefore has no interest accruing other than the interest on the recycled capital grant fund.

11

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

2021 2021 2020 2020
Group Parent Group Parent
Development - Capacity & Supply
New Supply Delivered (Supported
Housing)4 0% 0% 0% 0%
New
Supply
Delivered
(Non-
Supported Housing)5 0% 0% 0% 0%
Gearing6 (82%) (37%) (60%) (29%)

4 Total social housing units developed or newly built divided by total social housing units owed at the end of the financial year

5 Total non-social housing units developed or newly built divided by total non-social housing units owed at the end of the financial year 6 Short and long-term loans, cash and cash equivalents, amounts owed to group undertakings and finance lease obligations divided by tangible fixed asset housing properties at cost.

No new units had been planned within the financial year.

The gearing percentage is negative as St Christopher's Group and Parent currently has no long or short-term debt and the Parent holds more in cash than is owed to its subsidiary undertakings.

2021 2021 2020 2020
Group Parent Group Parent
Effective Asset Management
Return on Capital Employed7 0% 0% (4%) (2%)
Operating Efficiencies
Headline Social Housing Cost Per
Unit8 £3,127 £3,127 £5,247 £5,247
Investment
Reinvestment efficiency percentage9 0% 0% 2% 2%

7 Overall operating surplus/(deficit) plus gai/(loss) on disposal of fixed asset housing properties divided by total assets divided by current liabilities.

8 Social housing costs (management charges, service charge, routine maintenance, planned maintenance, major repairs expenditure, lease costs, capitalised major repairs costs for the period) divided by social housing units owned and/or managed.

9 Development of new properties, new properties acquired, works to existing properties and capital interest divided by tangible fixed asset housing properties at cost.

The current year is an improvement on last year’s position as although there has been underperformance in spot purchase and fostering placement numbers, development programme costs were smaller in the current year. Occupancy in the Isle of Man was not as high as the prior year which had created additional costs from safely staffing services on the Isle of Man during an extremely busy period.

The headline social housing cost per unit has reduced for the second year running due to a programme of cyclical maintenance works that was introduced in 2018. In 2020 major repairs

12

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

to the exterior of one social housing home took place and no major repairs programmes to social housing homes in this financial year.

The Value for Money metrics were reviewed against budgeted targets, as well as an average of the 2019/20 results for peers. The group of peers were chosen for either their similarity to the breadth of work with children and young people or their number of units.

The peers chosen were Centrepoint Soho, Look Ahead Care and Support Limited, St Mungo’s Community Housing Association and YMCA – St Paul’s Group for similarity of breadth of work and Chisel Limited for comparative small size of a housing association.

2021 2021
2020
Budget Average
Group target of peers
Business Health
Operating Margin (social housing
lettings) 1% 11% 5%
Operating Margin (overall) 0% 0% 8%
EBITDA MRI Interest Cover (3,039% N/A 307%

The Operating Margin for social housing lettings is a smaller surplus than budgeted and versus peers as a result of higher voids costs in actual results. Although the result is an improvement on the previous year and the second year running that the result has improved.

The overall operating margin is zero, in line with budget. The budget was set with an expectation of additional costs because of the COVID-19 pandemic and therefore 0% operating margin. The overall operating margin for peers is an average of 8%, but the individual margins vary dramatically from 0% up to 20.7%. The average of the peers’ results is also for 2020, which would have had only a marginal impact from the COVID-19 pandemic.

St Christopher’s has no long or short-term debt, therefore has no interest accruing other than the interest on the recycled capital grant fund and is a negative due to the deficit position for the year.

2021 2021
2020
Budget Average
Group target of peers
Development - Capacity & Supply
New Supply Delivered (Supported
Housing) 0% 0% 1%
New
Supply		 Delivered
(Non-
Supported Housing) 0% 0% 0%
Gearing (82%) (70%) 22%

13

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

St Christopher’s had no plans to deliver any new supply in the year, with 3 of the peers also not increasing their supply.

The gearing percentage is negative as St Christopher's currently has no long or short-term debt. This is in line with budget and with both Centrepoint Soho and St Mungo’s Community Housing.

2021 2021
2020
Budget Average
Group target of peers
Effective Asset Management
Return on Capital Employed 0% 0% 4%
Operating Efficiencies
Headline Social Housing Cost Per
Unit £3,127 £2,741 £7,992
Investment
Reinvestment efficiency percentage 0% 0% 4%

St Christopher’s return on capital employed is in line with budget and as noted above, reflects caution built into the budget as a result of the COVID-19 pandemic, with comparison to peers results for a year largely unaffected by this.

The headline social housing cost per unit is higher than budgeted due to slightly higher than budgeted routine maintenance work. This is largely as a result of damage and increased wear and tear from the extended lockdown periods throughout the financial year. The actual cost is lower than the average of peers. However the average is greatly affected by the two peers who can achieve a more efficient cost per unit based on their greater scale.

2. OPERATING ENVIRONMENT

The current fiscal environment remains such that local authorities in England as well as the governments of the United Kingdom and the Isle of Man continue to face financial constraints and a need to reduce expenditure; this is expected to continue for the for foreseeable future. Whilst many of the services that we provide fulfill statutory obligations of local authorities and the Isle of Man Government, this does not exempt them from a requirement to demonstrate value for money. We are committed to working with our commissioning partners to ensure that services remain relevant to both their needs and those of children and young people.

We recognise that the constrained financial regime can lead local authorities to be cautious about committing to medium and longer-term commissioning arrangements, where they have uncertainty about their future level of demand for services. Consequently, we continue to review and expand our service offer to include services, which can be accessed and paid for as and when required.

Within fostering some commissioners aim to increase the amount of fostering services that they directly provide. This has had the effect of increasing the competition in a market where

14

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

local authorities are simultaneously, a commissioner of, and a competitor with, St Christopher’s. Other local authorities have sought to respond by increasing partnership working and we have been proactive developing such partnerships.

RISK MANAGEMENT

We have a risk management policy and an ongoing process for identifying, evaluating and managing the significant risks that we face. These are recorded in our strategic risk register. Risks are assessed for their likelihood and potential impact and Council focuses its work on those risks which are identified as most significant. Disaster recovery scenarios have been considered and contingency plans are in place.

For all significant risks the potential to mitigate risk is considered and proportionate action is taken. A wide variety of strategies are used to mitigate risk. These include: seeking to mitigate risk through appropriate policies, procedures and controls, spreading risk through ensuring sufficient diversity of activity and commissioning partners, seeking to lay off risk through contract negotiation or insurance. Council has considered the risk of fraud and has adopted an anti-fraud policy. In evaluating new projects, Council assesses risk and will not proceed with projects where the risks are disproportionate to the benefits offered to our children and young people or our organisation as a whole.

The strategic risk register is reviewed by the Senior Leadership Team on a quarterly basis, by the Audit & Risk Committee three times a year and by the Council twice a year. The major risks that we face are recorded in the strategic risk register are:

15

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

16

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

outcomes of our work is also a risk as we are therefore not able to demonstrate whether the plan has been achieved and what the impact of our work has been.

At the start of 2020 we created an additional risk register specific to the COVID-19 pandemic, which was reviewed and updated on a regular basis as the situation and guidelines changed. The Senior Leadership Team met with key senior members of staff, initially several times a week from February 2020 onwards to discuss the emerging situation and ensure that guidance and support available throughout the organisation for staff and children and young people.

The risk register is split over three key areas:

The COVID-19 risk register continues to be reviewed and updated regularly, whilst have navigated each wave of infection and the different stages of the roadmap out of lockdown.

EMPLOYEE ENGAGEMENT

We recognise the importance of good, appropriate relationships between staff and our children and young people. Stable relationships contribute significantly to positive outcomes. As such, a well-motivated, stable and skilled workforce is central in enabling brighter futures for our children and young people.

We communicate with employees through Chief Executive blogs, ChrisNet (our intranet) and cascading information following manager meetings. Throughout the pandemic, we have developed our ability to communicate remotely through Trustee calls to managers, moving all meetings to Microsoft Teams and trialing alternate communication methods.

Looking ahead to the future beyond the pandemic, we have facilitated workshops to explore hybrid working, and generate employee input into shaping this.

17

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

During the year, we outsourced our UK and Isle of Man payrolls and implemented a time and attendance system which has improved the accuracy and effectiveness of salary payments. Pay and benefits remain under constant review. Our Council of Trustees agreed an annual cost of living increase of 1% for all staff. All St Christopher’s salaries and Carebank hourly rates are at the living wage or above. Further the majority of our operational staff, below management level, will progress up a scale point on their operational pay scale each year based on performance as monitored through the annual appraisal process.

The pandemic has impacted all our staff, both those on the frontline and those juggling responsibilities working from home. In particular, staff absences due to COVID-19 isolation have made running our services challenging. Despite this, children and young people have remained safe and been looked after with minimum disruption. None have left placement due to the pandemic. In recognition of the stress and trauma experienced by staff, online therapy has been made available. This includes art therapy interventions, as well as individual counselling. In addition, a Wellbeing Focus Group was created to help identify improvements and share best practice.

The Race Matters Group was created following the brutal murder of George Floyd in 2020. It consists of members from across all levels of the organisation, including the Senior Leadership Team and the Board. The group advises and guides the Senior Leadership Team in introducing meaningful change so that we can eliminate racism at St Christopher’s. The group have identified the following workstreams, all of which have an SLT lead to help drive change:

  1. Training and Education

  2. Data and Experience

  3. Policies and Procedures

  4. Wellbeing and Therapeutic Support

  5. Leadership

At St Christopher’s we believe that being not-racist is not enough, we must be actively antiracist . Social change is enacted when a society mobilises and therefore we can bring about meaningful change at St Christopher’s if we stand united and are mobilised together. One of the ways we are working towards this goal is through a race audit, which will help us review internal processes and identify opportunities for improvements.

Our Brighter Futures Groups are a result of an Appreciative Inquiry method used to complete feedback on positive experiences working at St Christopher’s and the factors in place to make those experiences work. The Groups are made up of representatives from across the organisation. Representatives from each team take the views and ideas from their colleagues about what we could do better to quarterly regional Brighter Futures Group meetings. Groups are non-hierarchical and provide opportunities for collaborating on activities across services and regions. The Brighter Futures Groups continues to be instrumental in instigating positive change across the organisation, and ensuring the employee voice is heard, such as through reviewing our Code of Conduct and taking forward further research into findings from our employee survey.

Without dedicated, skilled and passionate staff and foster carers, there would be no St Christopher's. We are only able to make a difference to the lives of children and young people because of the love, the skills, the knowledge, the professionalism and the commitment that our staff provide. We continue to review how we provide staff with the best experience, so that they can be engaged and effective in supporting our vision.

18

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

3. ORGANISATIONAL PERFORMANCE

ACHIEVEMENTS AND PERFORMANCE

The overall financial results for the year are in line with budget and although income is again lower due occupancy being below projections, savings in expenditure have offset this. The areas of income affected are spot purchase children’s homes and fostering.

We have a number of spot purchase homes, which require an adequate level of placements throughout the year to cover the running costs of the home, inclusive of the staff team. The majority of these costs are fixed, in the short-term, and therefore it is difficult to make savings in expenditure when there is a drop in occupancy. Ensuring new young people moving in are “matched” to the current residents of the home is also vital to ensure safety and stability but adds another layer of complexity to the task of ensuring that target levels of occupancy are achieved. Our efforts are rewarded by placement stability above the national average, which in turn reduces instability for young people and helps them to enjoy happy childhoods, rather than constantly experiencing big life changes.

Whilst some of our established spot purchase children’s homes outperformed their projected occupancy, others had lower than projected occupancy during the year. For the majority of children’s homes, occupancy was greater than 75% during the year. Reflective sessions and the development of both a sales strategy and placement protocol are helping to increase our learning as to what support, training and knowledge is required to equip our managers, on an ongoing basis, to succeed both in terms of the quality of the service and the care and support given to young people, but also the financial performance.

A Placements and Referrals Working Group explored how to streamline the referrals supply chain and improved efficiency of the process through development of a new placement protocol. The Group’s adopted aim is:

‘Our aim is to achieve our occupancy targets in a safe way and one which removes the barriers to admission and ensures placement stability’.

We continue to explore our supply chain issues in terms of having the correct resources in the right place to expedite decision-making and our ability to compete with other organisations.

More excellent homes, fostering and support

We recruited 10 new foster carers this year; a marked increase from 3 in 2019/20. Recruiting and retaining foster carers is an issue throughout the sector. We are therefore delighted to buck this trend. We also successfully opened a new office in Stevenage, with the aim of capitalising upon an area with greater fostering potential. 75% of our children and young people are in stable foster homes with either long-term or permanent families.

Recruitment and retention of operational staff within the UK, whilst improving, continues to be a challenge. Staff turnover, particularly in London children’s homes, remained high in common with the sector generally. We obtain feedback from leavers and use it to improve the experience of working at St Christopher’s.

The St Christopher’s Academy enables staff to continually develop in their children’s social care career. It is made up of six pathways, which staff can tailor for their career development. For example, there is an entry pathway, practitioner pathway and leadership passport. Staff aren’t expected to follow a straight line and tick off all of the options. Instead, they can choose

19

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

which route they’d like to take through the Academy. In May 2021, we employed a Residential Pathway Coordinator, whose role will be to support new employees in their first 6 to 12 months. We expect this role to improve attrition rates, by providing a single contact for the induction, training and mentoring support to new staff.

We continue to grow our team of Carebank workers who provide a flexible staffing cohort to help cover staff vacancies, annual leave and sickness whilst understanding St Christopher’s values and ways of working. Recruiting the right staff and retaining them remains central to discussions at both Senior Leadership meetings and Wider Senior Leadership Team meetings, as well as with the Board of Trustees.

During the year, our children’s homes were inspected by Ofsted. They were all rated either Good or Outstanding, which is testament to the hard work of our service managers and frontline staff.

UK semi-independent homes are not regulated and therefore do not require an inspection visit. St Christopher’s believes strongly that measures should be introduced to ensure there is monitoring in this area of support and accommodation for young people so that high standards are expected and therefore providers are accountable for unsafe provisions. During the year, as in previous years, we used an external inspector to review our semi-independent homes in the UK. The findings are reported to Council and then used as a basis for recommendations for homes going forward and sharing learning of best practice.

The Isle of Man children`s homes are inspected by the IOM Registration and Inspections Unit within the Isle of Man Government and at their last inspection all achieved “substantially compliant” or “compliant”. The semi-independent homes are also inspected by the Registration and Inspections unit and are “compliant”. Cronk Sollysh, our secure unit, is inspected by the Government Registration and Inspections Unit and is also “compliant”.

The Senior Leadership Team allocate time to meet on a quarterly basis to reflect on all Ofsted, Inspection Unit and semi-independent homes reports, positive and negative to increase the learning that can be taken and applied across all our services.

We also opened a new children’s home, in the West Midlands, in June 2020. It forms part of our Hub and Spoke strategy to provide local authorities with access to one bed homes for children with the highest needs, with the ability to progress to a geographically close four bed home when the child is ready. We are currently developing a second one bed home in the region.

Improved emotional wellbeing

Our staff work directly with children and young people who have experienced significant trauma, abuse and chaos in their lives. Whilst this work can be extremely rewarding, staff need support dealing with this vicarious trauma. We have an established Wraparound team in the Isle of Man, who are led by a Therapeutic Manager. The Isle of Man Wraparound team provides invaluable therapeutic input for the children and young people, staff teams and employees on an individual basis if needed. We also have a Therapeutic Team in the UK who provide support to children, young people and staff. In addition, we have an Employee Assistance Programme which staff can access throughout personal and professional challenges.

During the year, the UK Therapeutic Team started a ProQOL research project aiming to assess compassion satisfaction, risk of burnout and risk of secondary traumatic stress at work.

20

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

Its findings will help St Christopher’s assess what support they can provide to improve staff retention. Both the Isle of Man Wraparound team and the UK Therapeutic team have adapted their offering from face to face to video conferencing and Wraparound staff worked shifts at residential homes, improving their understanding of children and young people’s experiences. Our UK Therapeutic Manager wrote a blog for sector publication ‘Children and Young People Now’ exploring how the team adapted their practice during lockdown.

Lifelong learning and thriving

We continue to develop our apprenticeships offer for young people leaving care at a controlled pace to ensure that we are able to implement our learning from the current and previous cohorts. We have trialled a three-month traineeship. One of our trainees subsequently successfully transferred to a full apprenticeship post.

The learning from providing apprenticeships, traineeships and work experience all fed into the Support into Employment scheme on the Isle of Man. Dedicated support workers are available to support care leavers on the Isle of Man to learn the right skills they need for the workplace and to find jobs doing something they enjoy and that they can sustain. The team provides employability skills sessions to care leavers and get to know their interests and career plans. Then, through partnerships they have built with local businesses and government departments, the team set up shadowing days and work experience so that young people can try out different areas of work that they are interested in. These opportunities can lead to more formal work placements, volunteering, apprenticeships, or even paid work.

What makes this scheme different is that the team also support the employers so that they are more understanding of the issues care leavers experience and show them how to help the young person learn, develop and thrive at work, without feeling overwhelmed by any setbacks or challenges that crop up. This means the work placement is less likely to break down because there is an advocate working with both sides to make it a success. We are currently supporting 48 young people into employment.

Our Staying Close initiative successfully bid for a further year of funding, up to March 2022. It began as a Department for Education (DfE) Innovation Programme pilot in 2017. The teamwork within five children's homes in the London Boroughs of Ealing and Hounslow, providing life skills support, Staying Close plans, move-on accommodation within the local community and advocating for what young people need as they transition from residential care to independence. 79% of young people offered a Staying Close plan have accepted it. Funding has now been received to extend the model across all St Christopher's homes in the UK so that more young people can benefit from support with maintaining relationships after they leave care.

During the year, Manchester Metropolitan University evaluated and reported on the initiative’s success. According to the evaluation, Staying Close has created genuine opportunities for young people and care workers to sustain authentic relationships. One young person talked about their relationships with staff from their home and the impact of the scheme:

"They've seen you grow and go through situations. It's probably like just a little bit more informal, but it's human, it's normal, because at the end of the day, if that was your family, and you progressed and you went on to have children, or study, or whatever it is, and you're in your own independence, that's the sort of relationship you would have. You would meet up, you would go to the gym, you would get invited for dinner. [Care worker] does all of that for everyone, not just one person and it's always been out of her own time and at her expense, and she doesn't mind, it's just who she is."

21

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

The results for the year have been prepared in accordance with the Statement of Recommended Practice for registered housing providers: Housing SORP 2018. On this basis and comparing to 2020 figures, turnover increased to £18.2 million (2020: £18.0 million). No separate Statement of Comprehensive Income for the parent company has been presented, as permitted by section 408 of the Companies Act 2006. The result for the year of the parent company was a deficit of £24,000 (2020: deficit £212,000).

An investment strategy was formulated in the 2017/18 financial year and after competitive tender, Tilney Investment Managers were appointed to assist St Christopher’s in gaining a better return on its surplus-to requirements cash balances. No money has been invested to date.

The Statement of Financial Position remains stable. Cash has increased from £4.3m to £5.5m. This has been counterbalanced by a decrease in tangible assets to £8.2m, largely due to disposal of two properties in Isle of Man that are no longer suitable to our services. Reserves have remained stable at £8.7m.

The principal sources of funding are received from statutory authorities for services delivered under contracts, either in respect of children’s services or for Supporting People. Other services such as fostering, some children’s residential placements, and some services for young people aged 16 plus are paid for by local authorities and national governments as they are commissioned. We also receive income from rents and service charges payable by individual tenants, often out of Housing Benefit.

We have expanded our residential services to include homes that can be accessed and paid for as and when required, in response to the financial constraints that local authorities are under in medium-term commissioning arrangements. These spot purchase residential services provide a greater number of local authorities access to place children and young people with us. However, we bear the risk if occupancy levels fall below a financially sustainable level. Occupancy levels are recorded and monitored on a weekly basis so that remedial action can be taken in a timely manner.

Reserves Policy

In the event that all income for St Christopher’s cease, our reserves policy requires us to have 2 months of operating cost in reserves in order to meet our short-term obligations. The reserves policy is reviewed on an annual basis to ensure that it remains relevant to us and the environment we operate in.

PLANS FOR FUTURE PERIODS

We have been continuing to work on detailed plans for bringing the three strategic aims of the Vision & Strategy to life. The plans include:

Operations

We are continuously exploring ways to improve our operations and positively impact the children and young people that are most in need. To that end, we plan to assess the value of re-purposing several homes to provide specialist care for young people at risk of child sexual exploitation, as well as emergency placements. Learning from the staff challenges bought

22

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

about through the pandemic, we are piloting a specialist Peripatetic Team. This responsive team will be able to assist with new services and quickly respond to crises.

Consolidation

The pandemic has forced us to reconsider how we work – across sites, at home and in the office. We are taking the learnings from the past year to develop a hybrid model, which will include a mix of remote and in-person working. To facilitate this, we are moving our systems to the Cloud and designing a new intranet.

Staff retention, stability, culture and values

Our staff are central to our mission of securing brighter futures for children and young people. We know that sustainable and stable teams, reduced staff turnover and developing managers all contribute to this. We will therefore continue to review how we might improve our ability to recruit and retain talent – through targeted advertising, benefits and development opportunities.

Income and Development & Finance

The social care sector has very low margins. We therefore need to optimise our revenue. We will do this by continuing to shift the culture towards a more business minded way of operating, seeking to retain 100% of existing, already proven, contracts; and making appropriate cost reductions – such as in travel – brought on by the pandemic, permanent.

Strategy and Vision

Social pedagogy is central to the philosophy and workings of St Christopher’s. In the run up to the 2023 Strategic Plan, we will be assessing the impact and suitability of this for the future.

Quality Assurance, Practice Development and sector influence

We are looking forward to launching the Voluntary Sector Children’s Home Network to bring together likeminded professional organisations, influence best practice and improve standards of care for looked after children.

4. STRUCTURE, GOVERNANCE AND MANAGEMENT

GOVERNING DOCUMENT

St Christopher’s Fellowship is a company limited by guarantee and is governed by its Articles of Association. It is a Registered Charity and also a Registered Provider, with the Regulator of Social Housing.

RECRUITMENT AND APPOINTMENT OF TRUSTEES

Our trustees, who are the legal directors of the company, are collectively termed the Council and are elected by the members of the company. They serve for a three-year term, after which they are eligible for re-election. Trustees can normally serve for a maximum of three such terms. Council elects the Chair, the Vice-Chair and the Honorary Treasurer from amongst its members; these posts are referred to collectively as the Honorary Officers. Bert O’Donoghue, our previous Vice Chair, took over the position of Chair in September 2018, whilst Angela Dakin was elected to the position of Vice Chair at the same time. Joe Anichebe took over the position of Honorary Treasurer in September 2020.

Two new trustees joined the Council during the financial year. One was a co-opted member of the Audit and Risk Committee and has now joined the Council. The other was recruited

23

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

using the services of a sector specialist recruitment consultancy based on the findings of the skills audit undertaken by the Council’s Nomination Committee which identified the need for greater experience of social work, housing, fundraising and communications on the Council. In making new trustee appointments, Council is committed to ensuring that it is representative of the communities and individuals it serves and for this reason the Nomination committee agreed to carry out a diversity audit of Trustees during the next financial year. New trustees are provided with an induction programme and training opportunities are available to trustees to help them meet their responsibilities, most notable safeguarding training. Succession planning for trustees is considered regularly by the Nomination Committee.

A new member of the IoM Council was also appointed during the year.

In July 2017, a new Charity Governance Code was issued to provide a clear set of governance standards which charities and their trustees can aspire to and work toward. A gap analysis of the Charity Code of Governance was carried out in January 2018 and considered by Council. This concluded that we are compliant with the code although it has highlighted areas that could be brought to a higher standard or are currently work in progress. Following the 2018 analysis, it was agreed by the Council of Trustees to adopt the new Charity Code of Governance endorsed by the Charity Commission. Confirmation of the adoption of the Charity Code of Governance and an updated gap analysis are completed on an annual basis. The Council of Trustees confirmed adoption and compliance to the Charity Code of Governance for the current financial year after consideration of an updated gap analysis during at the July 2021 Council.

The Council also used the services of an external expert to conduct a board effectiveness review in late 2020. The output of the review has been used to inform the development of the Council and to continue our journey of learning and development.

ORGANISATIONAL STRUCTURE AND DECISION MAKING

Council met seven times in the last year and held an additional strategic away day. Council is responsible for:

Matters not reserved for decision by Council are delegated either to one of the committees which report to Council or to the Chief Executive and Senior Leadership Team.

The principal committees which report to Council are as follows:

24

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

development, employee relations, staff recruitment, staff turnover and the organisation’s approach to Equality, Diversity and Inclusion. The Committee also recommends the annual compensation budget to Council

The collective attendance rate for Trustees during the financial year was 92%

PARTICIPATION

In March 2021 the government launched the independent review of children’s social care. The scope of the review covers any child or family with social service involvement and is a oncein-a-generation opportunity to shape the care system.

St Christopher’s has prioritised young people’s views, thoughts and ideas in our submissions to the review. We participated in the initial call for advice and proactively contacted the review team to offer expert help in participation, working with unaccompanied asylum-seeking children and commissioning. A group of staff received additional training in participation so that they could lead by example in their teams and consult with young people in line with our ethos. We have arranged opportunities for the care review team to meet with our children’s homes, semi-independent homes and fostering workforce and will be facilitating a visit for them to learn about Staying Close, in line with their interest in how the care system can create lifelong relationships for children and young people. We have also sought the views of staff and foster carers through focus groups and surveys. All the feedback gathered from young people will be turned into a report that can be submitted to the review and used in future calls for evidence once announced by the review towards the end of 2021.

We await the final recommendations from the review in early 2022 with anticipation.

Children and young people are central to everything we do. We provide them with opportunities to be involved in decision-making, from helping to shape new services and their own homes to interviewing new members of staff and trustees. Our participation approach gives young people the power to shape both the way they are involved and the outcomes of their involvement. These experiences boost self-esteem and equip young people with the essential transferable skills they need for the future. Using a social pedagogic framework in our practice means there are opportunities for young people to have their say every single day.

Our participation team hold the space for listening to what is important to children and young people and create opportunities for them to create change in these areas. The Covid 19 pandemic has changed our way of working - our roles rely on relational face to face and group work which cannot successfully be transferred to online/remote working and so we provided staffing cover to our services to increase capacity to deal with staff absences as a result of the pandemic.

25

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

Our key success this year have included:

Listening to children and young people’s experiences and sharing them to support learning and improvements in practice within the organisation and more widely:

Ensuring that children and young people are involved in decisions about who works in our homes and how they work in our homes:

Creative activities:

26

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

understanding about the common third and think more about how to do things with young people rather than just see that as something members of our team come and do

Supporting transitions and young people who have moved on:

We were pleased to be able to maintain our participation work over the last year, following funding from Esmée Fairbairn Foundation and from The City Bridge Trust, Gwyneth Forrester Trust and Sisters of the Holy Cross in the next financial year.

SUBSIDIARIES

During the year St Christopher’s Fellowship (the parent) had one active subsidiary, St Christopher’s (Isle of Man) and two non-trading subsidiary, SCF Services Limited and Future Families (West Midlands) Ltd. The St Pancras Foundation, which had been a non-trading subsidiary, was dissolved on 26 March 2019. These three companies collectively form the St. Christopher’s Fellowship group. The governing body of both of these subsidiaries includes trustees of St Christopher’s Fellowship (plus others). The trustees of St Christopher’s (Isle of Man) include Manx residents.

5. PUBLIC BENEFIT

Since 1870 St Christopher’s has been working with socially excluded people to help them achieve their full potential. In undertaking both new and existing activities, Council is always mindful of the objectives of St Christopher’s to relieve poverty and assist people in need, particularly children and young people. Whilst the work of St Christopher’s encompasses many projects in the United Kingdom and the Isle of Man, the common characteristics of all this work are that it is for those at the margins of society, is centred on their needs and is of genuine public benefit.

Where individuals benefit from the work of St Christopher’s, there is a clear link between them and the aims of the organisation. Given the size of St Christopher’s, services are necessarily subject to some geographic restrictions, but otherwise access is based on need. Only accommodation-based Housing and Support services, which provide personal services, are subject to charges, all other services are free to young people. Where charges are set, to ensure that those in poverty will not be excluded from access to services, these are determined on the assumption that young people’s income could be limited to state benefits.

27

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

The work undertaken by St Christopher’s is solely for the benefit of our children and young people and as such it is not considered that there are any private benefits provided by the organisation. St Christopher’s has concluded that there is no significant detrimental impact from its work.

As a public benefit entity St Christopher’s has applied the public benefit entity “PBE” prefixed paragraphs of FRS 102.

6. VOLUNTARY DONATIONS

In addition to statutory funds and rental income, we receive voluntary donations from both grant making trusts and individual donors. These funds enable the organisation to provide an extra dimension to the services and support we offer young people. Council is very grateful for the voluntary funding received through grants or donations that supports this work.

7. COMMITMENT TO EQUALITY AND DIVERSITY

St Christopher’s recognises the breadth of contribution that can be achieved by employing a diverse work force and ensuring equality of opportunity. In addition, we understand the importance of equal access to services for all children and young people who are potentially in our care. We comply with both the spirit and the requirements of the Equalities Act 2010 (UK) and 2017 (IOM).

St Christopher’s leadership recognises the racism and lack of representation at St Christopher’s and is committed to ensuring a positive experience for all at St Christopher’s. Our Race Matters Group identifies ways our organisation can become anti-racist and more inclusive.

Regular monitoring of the profile of our children and young people, employees and trustees is undertaken. Where any group is identified as under-represented, strategies are put in place, both at an organisational and at a local level, with the objective of correcting any under representation. An annual review of performance against targets is undertaken and reported to Council. Regular reviews of our recruitment and other staff related procedures take place to ensure compliance with the Act.

The UK became one of the first countries to require mandatory reporting on the gender pay gap as the government want to eliminate any disparity. In April 2018 private, public and voluntary sector employers with 250 or more employees were required to publish their gender pay gap and bonus pay gap information. This year’s reporting has been suspended due to the COVID-19 pandemic. However, we continue to review this information, and are working towards similarly reporting on the ethnicity pay gap.

8. COUNCIL MEMBERS’ RESPONSIBILITIES

The Council is responsible for preparing the Strategic and Board Report as well as the financial statements in accordance with applicable law and regulations. The Companies Act 2006 and registered social housing legislation require Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and Company and of the income and expenditure of the Group for that period. In preparing these financial statements Council is required to:

28

ST CHRISTOPHER’S FELLOWSHIP STRATEGIC AND BOARD REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Council is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Group and Company and enable it to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. It has general responsibility for taking reasonable steps to safeguard the assets of the Group and Company and to prevent and detect fraud and other irregularities.

9. COMPLIANCE WITH GOVERNANCE AND FINANCIAL VIABILITY STANDARD

The Council confirms that the Group and Company have met the Regulator of Social Housing’s regulatory expectations in the governance and financial viability standard.

10. STATEMENT OF DISCLOSURE OF INFORMATION TO AUDITORS

We, the Council members, who are also the directors of the Company, who held office at the date of approval of these Financial Statements set out above, each confirm, so far as we are aware, that:

This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. In approving the Strategic and Board Report, we also approve the Strategic Report included therein, in our capacity as company directors.

Beever and Struthers have expressed their willingness to continue in office and a resolution to re-appoint them will be proposed.

This report was approved by the Council of Trustees on 15 September 2021.

B O’Donoghue (Chair) on behalf of the Council

29

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ST CHRISTOPHER’S FELLOWSHIP FOR THE YEAR ENDED 31 MARCH 2021

Opinion

We have audited the financial statements of St Christopher’s Fellowship (the ‘parent company’) and its subsidiaries (the ‘Group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Parent Company Statement of Financial Position, the Consolidated and Parent Company Statement of Changes in Reserves, the Consolidated Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies in note 1. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s or the parent 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 Council 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 Report of the Chair and the Strategic and Board Report, other than the financial statements and our auditor’s report thereon. The Council is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and,

30

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ST CHRISTOPHER’S FELLOWSHIP FOR THE YEAR ENDED 31 MARCH 2021

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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Chair and the Strategic and Board Report.

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

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

Responsibilities of the Council

As explained more fully in the Council Members’ Responsibilities Statement set out on pages 28 to 29, the Council is 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 Council

31

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ST CHRISTOPHER’S FELLOWSHIP FOR THE YEAR ENDED 31 MARCH 2021

determines 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 Council is responsible for assessing the Group’s and the parent 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 Council either intends to liquidate the Group or the parent Company or to cease operations, or has 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

32

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ST CHRISTOPHER’S FELLOWSHIP FOR THE YEAR ENDED 31 MARCH 2021

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Use of our report

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

Sue Hutchinson Senior Statutory Auditor

For and on behalf of Beever and Struthers Statutory Auditor St George’s House 215-219 Chester Road Manchester M15 4JE

Date: 30 September 2021

33

ST CHRISTOPHER’S FELLOWSHIP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021

Notes
Turnover
2 & 3
Operating expenditure
Gain/ (loss) on disposal of property,
plant and equipment (fixed assets)
2 & 3
2
Operating Surplus/(Deficit)
Interest receivable
4
Interest and financing costs
5
Total comprehensive income/(loss) for the year
Group
2021
£’000

18,181


(18,213)
56
24

2

(4)
22		 Group
2020
£’000
17,976
(18,439)
(5)
(468)
14
(4)
(458)

All of the comprehensive income for the year is attributable to the owners of the parent company.

The consolidated group and parent results relate wholly to continuing activities and the notes on pages 38 to 61 form an integral part of these financial statements.

The financial statements on pages 34 to 61 were authorised for issue by the Council on 15 September 2021 and were signed on its behalf by:

B O’Donoghue – Chair

J Anichebe – Honorary Treasurer

34

ST CHRISTOPHER’S FELLOWSHIP CONSOLIDATED AND PARENT STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021

Fixed Assets
Notes
Intangible fixed assets & goodwill
10
Tangible fixed assets
11
Investments in subsidiaries
12

Current Assets
Trade and other debtors
13
Cash and cash equivalents
Less: Creditors:
Amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after
more than one year
15
Other provisions
18
Total net assets
Reserves
Income and expenditure reserve
Permanent endowment
Total reserves		 Group
2021
£’000
-
8,213
-
8,213
1,357
5,527
6,884
(2,608)
4,276

12,489
(3,361)
(302)

8,826
8,738
88
8,826		 Parent
2021
£’000
-
8,149
347
8,496
1,242
5,490
6,732
(5,203)
1,529
10,025
(3,361)
(150)
6,514
6,426
88
6,514		 Group
2020
£’000
222
8,675
-
8,897
1,726
4,293
6,019
(1,703)
4,316

13,213
(4,126)
(283)

8,804
8,716
88
8,804		 Parent
2020
£’000
-
8,249
347
8,596
1,778
4,102
5,880
(3,687)
2,193
10,789
(4,126)
(133)
6,530
6,442
88
6,530

The notes on pages 38 to 61 form an integral part of these financial statements.

The financial statements on pages 34 to 61 were approved and authorised for issue by the Council on 15 September 2021 and were signed on its behalf by:

B O’Donoghue – Chair

J Anichebe – Honorary Treasurer

Company Registration no. 321509 (England and Wales)

35

ST CHRISTOPHER’S FELLOWSHIP CONSOLIDATED AND PARENT STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 MARCH 2021

GROUP:

Balance as at 1 April 2019
Deficit from Statement of Comprehensive Income
Balance as at 31 March 2020
Surplus from Statement of Comprehensive Income
Balance as at 31 March 2021
PARENT:
Balance as at 1 April 2019
Deficit from Statement of Comprehensive Income
Gift Aid from Subsidiary
Balance as at 31 March 2020
Deficit from Statement of Comprehensive Income
Gift Aid from Subsidiary
Balance as at 31 March 2021		 Income and
expenditure
reserve
£’000
9,174
(458)
8,716
22
8,738
Income and
expenditure
reserve
£’000
6,654
(213)
1
6,442
(24)
8
**6,426 **		 Permanent
endowment
£’000
88
-
88
-
88
Permanent
Endowment
£’000
88
-
-
88
-
-
88

The notes on pages 38 to 61 form an integral part of these financial statements.

36

ST CHRISTOPHER’S FELLOWSHIP CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Net cash flow from operating activities (see Note i)
Cash flow from investing activities
Acquisition and construction of properties
Acquisition of subsidiary
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed assets
Repayment of defined benefit pension cessation deficit
Interest received
Cash flow from financing activities
Interest paid
Net change in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Note i
Cash flow from operating activities
Surplus/(deficit) for the year
Depreciation of tangible fixed assets
Amortisation of intangible fixed assets & goodwill
Decrease/(Increase) in trade and other debtors
Increase/(Decrease) in trade and other creditors
Increase/(Decrease) in other provisions
Carrying amount of tangible fixed asset disposals
Adjustments for investing or financing activities
Proceeds from the sale of tangible fixed assets
Repayment of defined benefit pension cessation deficit
Government grants utilised in the year
Interest payable
Interest received
Net cash generated from operating activities		 Year ended
31 March
2021
£’000
969
(2)
-
(148)
417
-
2
(4)
1,234
4,293
5,527
22
254
222
368
186
19
359
(417)
-
(46)
4
(2)
969		 Year ended
31 March
2020
£’000
(914)
(117)
-
(91)
12
(854)
14
(4)
(1,954)
6,247
4,293
(458)
240
76
(246)
(1,286)
(42)
16
(12)
854
(46)
4
(14)
(914)

The notes on pages 38 to 61 form an integral part of these financial statements.

37

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. PRINCIPAL ACCOUNTING POLICIES

1.1 Legal Status

St Christopher's Fellowship is a company limited by guarantee incorporated in England under the Companies Act 2006. It is a registered charity under the Charities Act 2011 and is registered with the Regulator of Social Housing as a Private Registered Provider of Social Housing. St Christopher’s registered office is at 1 Putney High Street, London, SW15 1SZ.

In addition to St Christopher’s Fellowship as at 31 March 2021 the Group comprises the following entities, none of which are registered with the Regulator of Social Housing:

SCF Services Limited was incorporated on 28 June 1999, commenced trading on 1 September 1999 and ceased to trade in January 2014. It is incorporated in England as a private company limited by share capital. Its registered address is 1 Putney High Street, London, SW15 1SZ. The Parent holds 1 ordinary share of £1 in its subsidiary, SCF Services Limited. This represents 100% of the issued share capital of that company and 1% of its authorised share capital.

St Christopher's (Isle of Man) was incorporated and commenced trading on 10 September 2004. It is incorporated in the Isle of Man as a company limited by guarantee and is a registered Manx charity. Its registered office is Fenella House, Fenella Avenue, Willaston, Douglas, IM2 6PD. Its principal business activities are the provision of care, support, and accommodation for children and young people.

Future Families (West Midlands) Ltd was acquired via a share purchase agreement on 20 July 2018. It is incorporated in England as a private company limited by share capital. Its registered address is 1 Putney High Street, London, SW15 1SZ. The Parent holds 100 ordinary shares of £1 in its subsidiary, Future Families (West Midlands) Ltd. This represents 100% of the issued share capital of that company and 100% of its authorised share capital.

1.2 Basis of Accounting

The Group’s financial statements have been prepared in accordance with applicable United Kingdom Accounting Generally Accepted Accounting Practice (UK GAAP) and the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers. The Group is required under the Companies Act 2006 to prepare consolidated Group financial statements.

The financial statements comply with the Housing and Regeneration Act 2008, the Companies Act 2006 and the Accounting Direction for Private Registered Providers of Social Housing 2019. The financial statements are prepared on the historical cost basis of accounting.

The consolidated financial statements incorporate the results of St Christopher’s Fellowship and all of its subsidiaries as at 31 March 2021 using the acquisition method of accounting as required. Where the acquisition method is used, the results of the subsidiary undertakings are included from the date of acquisition, being the date the Group obtains control.

38

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

The Group’s financial statements have been prepared in compliance with FRS 102. As a public benefit entity, St Christopher’s Fellowship has applied the public benefit entity ‘PBE’ prefixed paragraphs of FRS 102.

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:

In addition, the financial statements adopt the exemption permitted by S. 408 of the Companies Act 2006 for the non-disclosure of the Statement of Comprehensive Income for the parent entity, St Christopher's Fellowship.

1.3 Basis of Consolidation

The Group’s financial statements are the result of the consolidation of the financial statements of St Christopher's Fellowship and of its subsidiaries, SCF Services Limited, St. Christopher’s (Isle of Man) and Future Families (West Midlands) Ltd as at 31 March 2021. Future Families (West Midlands) Ltd was acquired via share purchase acquisition on 20 July 2018. All Future Families (West Midlands) Ltd foster carers and employees transferred to St Christopher’s Fellowship by 31[st] March 2019 and the subsidiary has not traded in the current year.

1.4

Going Concern

The Council have considered the impact of COVID-19 on its operations and have concluded that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. No other significant concerns have been noted in the business plan. Therefore, the Group’s financial statements have been prepared on a going concern basis which assumes an ability to continue operating for the foreseeable future.

1.5 Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the date of the Statement of Financial Position and the amounts reported for revenues and expenses during the year. However, the nature of estimate means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

39

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Group has considered whether the asset is held for social benefit or to earn commercial rentals. The Group has no investment properties.

Other key sources of estimation and assumptions are as follows:

Following a trigger for impairment, the Group performs impairment tests based on fair value less cost to sell or a value in use calculation. The fair value less cost to sell calculation is based on available data from sales transactions in an arm’s length transaction on similar cash generating units (or properties), or observable market prices less incremental costs for disposing of the properties. The value in use calculation is based on either a depreciated replacement cost or a discounted cashflow model. The depreciated replacement cost is based on available data of the cost of constructing or acquiring replacement properties to provide the same level of service potential to the Group as the existing property.

Following the assessment of impairment no impairment losses were identified in the reporting period.

40

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

e Provisions. Provisions are included in the financial statements where there is a present legal or constructive obligation to transfer economic benefits and is based on expected liabilities and costs associated with fulfilling the legal obligations of the service contracts.

1.6 Turnover

Turnover represents rental income receivable, amortised capital grant, revenue grants and fees from national governments and local authorities, voluntary income, and other income.

Rental income is recognised when the property is available to let net of voids. Supporting People and all other grants and fees are recognised under the contractual arrangements.

All voluntary income is received either for specific activities or for general use. In the particulars of turnover in Note 2, donations for specific activities are not aggregated with those for general use under the heading ‘voluntary income’, but are shown under the specific activity to which they relate.

1.7 Supporting People Contracts

Supporting people contract income received from Administering Authorities is accounted for as support services income in the Turnover as per Note 2. The related support costs are matched against this income in the same note.

1.8

Service charges

Service charge income and costs are recognised on an accruals basis. The group operates fixed service charges on a scheme by scheme basis.

1.9

Recognition of Voluntary Income

Voluntary income is recognised in the Statement of Comprehensive Income in the period in which it is received unless it has been specified for use in a future accounting period. In that case its recognition is deferred until that future period and it is treated as a creditor until then.

Voluntary income restricted as to use by the donor and unexpended (i.e. unspent or spent on capital items) at the period end is transferred to Restricted Funds and credited to the Statement of Comprehensive Income, as a transfer from reserves in the period during which the expenditure is incurred, or in which the capital item is depreciated.

Where voluntary income is received after the end of the current period, it is recognised as income of the current period, where material expenditure to which it relates has been incurred in the same period.

41

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1.10 Taxation

The charity is exempt from tax on income and gains falling within section 478 of the Corporation Tax Act 2010 to the extent that these are applied to its charitable objects.

1.11 VAT

The Group completed de-registeration for VAT in October 2019, as there are no longer income streams in sufficient volume that are deemed VATable services. All amounts disclosed in the financial statements are inclusive of VAT, to the extent that it is suffered by the Group and not recoverable.

1.12 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost, less accumulated depreciation. Freehold land is not depreciated.

Where a property comprises two or more major components with substantially different useful economic lives, each component is accounted for separately and depreciated over its individual useful economic life. Expenditure relating to subsequent replacement or renewal of components is capitalised as incurred.

The Group depreciates freehold properties by component on a straight-line basis over the estimated useful economic lives of the component categories. The useful economic lives for identified components are as follows:

Years Boilers 10 Kitchens 20 Bathrooms 30 Windows 40 Roofs 50 Structure 100

The Group depreciates properties held on long-term leases in the same manner as freehold properties, except where the unexpired term is shorter than the longest component life envisaged, in which case the unexpired term of the lease is adopted as the useful economic life of the relevant component category.

Depreciation is charged on other tangible fixed assets on a straight-line basis, over the expected economic useful lives which are as follows:

Years
Fixtures, fittings and equipment - homes 3
Fixtures, fittings and equipment – offices 4
Motor vehicles 4
Computer equipment - hardware 4
Computer equipment - software 5

42

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1.13 Property Managed or Leased by Agents

Where the Group carries the majority of the financial risk on property managed or leased by agents, income arising from the property is included in the Statement of Comprehensive Income Account.

Where the agent or lessee carries the majority of the financial risk, income includes only that which relates solely to the Group.

Where the Group carries the majority of the financial risk, the assets and associated liabilities are included in the Group’s Statement of Financial Position.

1.14 Leased Assets

Rentals paid under operating leases are charged to the Statement of Comprehensive Income as incurred.

1.15 Goodwill

Goodwill arising on an acquisition of a subsidiary undertaking is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired. Subsequently goodwill is carried at cost less accumulated amortisation and impairment losses.

The acquired goodwill has been fully amortised within the financial year as all aspects of the subsidiary have been transferred into the parent. The subsidiary has not traded since 2019 and is due to be made dormant within the 12 months of the date of the Directors Report.

1.16 Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year, are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

1.17 Grants other than Social Housing Grants

Grants other than Social Housing Grants are recognised under the performance model. If there are no specific performance requirements the grants are recognised when received or receivable. Where a grant is received with specific performance requirements, it is recognised as a liability until the conditions are met and then it is recognised as Turnover. Grants which have funded furniture and equipment are credited to the Statement of Comprehensive Income to match the related expenditure.

1.18 Social Housing Grant

Where properties have been financed wholly or partly by Social Housing Grants, the amount of the grant received has been included as deferred income and recognised in Turnover over the estimated useful life of the associated asset structure (not land), under the accruals model.

Social Housing Grants must be recycled by the Group under certain conditions, if a property is sold, or if another relevant event takes place. In these cases the Social

43

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Housing Grant may be used for projects approved by the Greater London Authority. In certain circumstances the Social Housing Grant may be repayable and in that event it is a subordinated unsecured repayable debt.

1.19 Recycling of Capital Grant

Where the Social Housing Grant is recycled as described in 1.17 it is credited to a fund which appears as a creditor until used to fund either the acquisition of new properties or another purpose approved by the Greater London Authority. Where recycled grant is known to be repayable it is shown as a creditor within one year.

1.20 Pension Costs

The cost of providing retirement pensions and related benefits is charged to expenses over the periods benefiting from the employees’ services.

The disclosures in the notes are either calculated according to Section 28 of FRS 102 on Retirement Benefits, or in the case of the Social Housing Pension Scheme Growth Plan defined benefit structure, in accordance with the requirements of Section 28 of FRS 102 in relation to multi-employer funded scheme, in which the Group has a participating interest.

1.21 Provisions

The Group only provides for legal or contractual liabilities in line with service or property obligations.

1.22 Intra group transactions

Where members of staff employed by one group member work exclusively on the contracts of another group member, all the employment costs of these staff are recharged at cost and this is disclosed in the financial statements. Some other costs, which include the costs of some staff members, are incurred on behalf of all group members and these costs are recharged on a proportionate basis. The parent manages the treasury function of all members of the group, full records of all intercompany balances are maintained and interest earned is allocated in proportion to the balances. Each group member separately receives all contractual revenue to which it is entitled, as well as retaining its own assets and liabilities.

1.23 Funds and Reserves

The Permanent Endowment is a capital fund which the Trustees of St Christopher's have no power to convert into income. This restriction was a condition of the gift of assets which make up the fund.

1.24 Financial Instruments

Financial assets and financial liabilities are measured at transaction price initially, plus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

44

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

At the end of each reporting period, financial instruments are measured as follows, without any deduction for transaction costs the entity may incur on sale or other disposal:

Debt instruments that meet the conditions in paragraph 11.8(b) of FRS 102 are measured at amortised cost using the effective interest method, except where the arrangement constitutes a financing transaction. In this case the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt.

Commitments to receive or make a loan to another entity which meet the conditions in paragraph 11.8(c) of FRS 102 are measured at cost less impairment.

Investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are measured at fair value with changes in fair value recognised in profit or loss if the shares are publicly traded or their value can otherwise be measured reliably and at cost less impairment for all other such investments.

Financial instruments held by the Group are classified as follows:

45

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. TURNOVER, OPERATING EXPENDITURE AND OPERATING SURPLUS – GROUP

FOR THE YEAR ENDED 31 MARCH 2021
Social Housing Lettings (Note 3)
Supported Housing Lettings
Other Social Housing Activities
Support services
Activities other than social housing
Sixteen plus services
Children’s Services
Fundraising
Coronavirus Job Retention scheme
Gain/ (loss) on disposal of property,
plant and equipment (fixed assets)
TOTAL
FOR THE YEAR ENDED 31 MARCH 2020
Social Housing Lettings (Note 3)
Supported Housing Lettings
Other Social Housing Activities:
Support services
Activities other than social housing
Sixteen plus services
Children’s Services
Fundraising
Gain/ (loss) on disposal of property,
plant and equipment (fixed assets)
TOTAL		 Turnover
£’000
311
2,510
634
14,360
299
67
-
18,181
Turnover
£’000
310
2,485
646
14,366
169
-
17,976		 Operating
Expenditure
£’000
309
2,271
779
14,441
346
67
-
18,213
Operating
Expenditure
£’000
410
2,056
674
15,003
296
-
18,439		 Operating
Surplus/
(Deficit)
£’000
2
239
(145)
(81)
(47)
-
56
24
Operating
Surplus/
(Deficit)
£’000
(100)
429
(28)
(637)
(127)
(5)
(468)

46

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. TURNOVER, OPERATING EXPENDITURE AND OPERATING SURPLUS - PARENT

FOR THE YEAR ENDED 31 MARCH 2021
Social Housing Lettings (note 3)
Supported Housing Lettings
Other Social Housing Activities
Support services
Activities other than social housing
Sixteen plus services
Children’s Services
Fundraising
Coronavirus Job Retention Scheme
Gain/ (loss) on disposal of property,
plant and equipment (fixed assets)
TOTAL
FOR THE YEAR ENDED 31 MARCH 2020
Social Housing Lettings (note 3)
Supported Housing Lettings
Other Social Housing Activities:
Support services
Activities other than social housing
Sixteen plus services
Children’s Services
Fundraising
Gain/ (loss) on disposal of property,
plant and equipment (fixed assets)
TOTAL		 Turnover
£’000
311
2,510
634
8,953
212
67
-

12,687
Turnover
£’000
310
2,485
646
9,034
169
-

12,644		 Operating
Expenditure
£’000
Operating
Surplus/
(Deficit)
£’000
304
7
2,230
280
764
(130)
9,104
(151)
234
67
(22)
-
-
(8)
12,703
(24)
Operating
Expenditure
£’000
Operating
Surplus/
(Deficit)
£’000
409
(99)
2,037
448
669
(23)
9,440
(406)
295
(126)
-
(7)
12,850
(213)

47

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. TURNOVER AND OPERATING EXPENDITURE – GROUP AND PARENT

Supported Supported
Housing Housing
2021 2020
£’000 £’000
INCOME
Rent receivable net of identifiable service charges 82 77
Service charge income 184 187
Amortised government grants 45 46
Turnover from Social Housing Lettings 311 310
OPERATING EXPENDITURE
Service charge costs 120 117
Management 24 24
Routine maintenance 47 35
Planned maintenance 60 132
Rent losses from bad debts 4 48
Depreciation of housing properties 54 53
TOTAL EXPENDITURE 309 409
OPERATING SURPLUS/LOSS ON SOCIAL HOUSING
LETTINGS 2 (99)
Void losses 29 29
3(a).
TURNOVER FROM ACTIVITIES OTHER THAN SOCIAL HOUSING – GROUP
Group Group
2021 2020
£’000 £’000
Sixteen plus services 634 646
Children’s Services 14,360 14,366
Fundraising 299 169
Coronavirus Job Retention scheme 67 -
15,360 15,181

48

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3(b). TURNOVER FROM ACTIVITIES OTHER THAN SOCIAL HOUSING – PARENT

Sixteen plus services
Children’s Services
Fundraising
Coronavirus Job Retention scheme
4.
INTEREST RECEIVABLE
Interest receivable
5.
INTEREST AND FINANCING COSTS
Defined benefit pension charge
Other charges		 Parent
2021
£’000
634
8,953
212
67
9,866
Group
2021
£’000
2
2
Group
2021
£’000
-
4
4		 Parent
2020
£’000
646
9,034
169
-
9,849
Group
2020
£’000
14
14
Group
2020
£’000
-
4
4

6. DIRECTORS’ AND SENIOR STAFF EMOLUMENTS

The aggregate emoluments paid to or receivable by
Directors including pension contributions
The emoluments paid to the highest paid Director of
St Christopher's excluding pension contributions		 Group
2021
£’000
Group
2020
£’000
545
533
103
101

In total Council members received expenses of £Nil (2020: £2,124) and no remuneration in the year (2020: £Nil).

The Regulator of Social Housing in the Accounting Direction for Private Registered Providers of Social Housing 2019 extends the definition of “directors” for the purposes of this note to key management personnel. Members of the Council, the Chief Executive, and any other person who is a member of the Senior Leadership Team, are considered to be Key Management Personnel. Their aggregate emoluments including pension were £545,000 (2020: £533,000).

49

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

The Chief Executive is an ordinary member of the defined contribution Aviva Pension Scheme and a contribution by the Group and Parent of £8,794 (2020: £6,902) was made in addition to his personal contributions. No enhanced or special terms apply.

The number of staff with emoluments, including pension contributions, in excess of £60,000 are:

Total Remuneration including pension
contributions
£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000
£90,000 - £100,000
£100,000 - £110,000
£110,000 - £120,000
7.
EMPLOYEE INFORMATION
The average number of full time equivalent staff
(including the Chief Executive) employed during the
year:
The average number of staff (including the Chief
Executive) employed during the year.
Staff costs (for the above persons):
Wages and salaries
Social Security costs
Pensions costs		 2021
4
2
3
-
1
1
Group
2021
301
407
£’000
10,193
961
429
11,583		 2020
4
4
1
-
2
-
Group
2020
292
397
£’000
9,927
961
420
11,308

The pension cost charge represents contributions payable by the Group for the appropriate year. An amount of £59,395 (2020: £73,123) was owing to pension providers at the end of the year in respect of employer and employee contributions.

50

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. OPERATING SURPLUS

Group Group
2021 2020
Operating Surplus is stated after £’000 £’000
charging/(crediting):
Auditor’s remuneration (excluding VAT)
- in their capacity as auditors 26 26
- other services 2 8
(Gain)/loss on the sale of fixed assets (56) 5
Depreciation of owned assets 476 240
Amortisation of goodwill 222 76
Operating leases – property 270 262
- other 17 13
Pension costs defined benefit - -
Pension costs defined contribution 429 420

9. PARENT COMPANY RESULT FOR THE YEAR

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The deficit after tax of the parent company for the year was £24k (2020 – (£212k)).

10. INTANGIBLE FIXED ASSETS

COST
At start of year
Additions
At end of year
AMORTISATION
At start of year
Amortisation charge for the year
At end of year
Net book value at 31 March 2021
Net book value at 31 March 2020		 Goodwill
£’000
374
-
374
£’000
152
222
374
£’000
-
222

The intangible fixed asset is goodwill resulting from the share purchase acquisition of Future Families (West Midlands) Ltd on 20 July 2018. The goodwill has now been fully amortised as all trading and employees have been transferred into the Parent.

51

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11.(a) TANGIBLE FIXED ASSETS – GROUP

Housing
Properties
£’000
Cost
At 1 April 2020
5,021
Additions
2
Disposals
-
At 31 March 2021
5,023
Depreciation
At 1 April 2020
1,017
Charge for the year
54
Disposals
-
At 31 March 2021
1,071
Net Book Value at 31
March 2021
3,952
Net Book Value at 31
March 2020
4,004
Property Costs comprise:
Housing Properties
Freeholds
Short Leasehold
Care Properties
Freeholds
Short Leasehold
Offices
Long Leasehold (Over 50 Years)
Short Leasehold (Under 50 Years)		 Care
Properties
£’000
3,533
-
(376)
3,157
380
39
(25)
394
2,763
3,153		 Offices
£’000
1,753
-
-
1,753
466
17
-
483
1,270
1,287		 Fixtures
Fittings &
Computers
£’000
878
148
(23)












TOTAL
£’000
11,185
150
(399)
1,003 10,936
647
144
(16)		 2,510
254
(41)
775 2,723
228 8,213
231 8,675
2021
£’000
3,952
-
3,952
2,763
-
2,763
1,270
-
1,270		 2020
£’000
4,004
-
4,004
3,153
-
3,153
1,287
-
1,287

52

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11.(b) TANGIBLE FIXED ASSETS – PARENT

Housing
Properties
£’000
Cost
At 1 April 2020
5,021
Additions
2
Disposals
-
At 31 March 2021
5,023
Depreciation
At 1 April 2020
1,017
Charge for the year
54
Disposals
-
At 31 March 2021
1,071
Net Book Value at 31
March 2021
3,952
Net Book Value at 31
March 2020
4,004
Property Costs comprise:
Housing Properties
Freeholds
Short Leasehold
Care Properties
Freeholds
Short Leasehold
Offices
Long Leasehold (Over 50 Years)
Short Leasehold (Under 50 Years)		 Care
Properties
£’000
3,157
-
-
3,157
358
35
-
393
2,764
2,799		 Offices
£’000
1,753
-
-
1,753
466
17
-
483
1,270
1,287		 Fixtures
Fittings &
Computers
£’000
734
118
(15)
837
575
108
(9)
674
163
159
2021
£’000
3,952
-
3,952
2,764
-
2,764
1,270
-
1,270		 TOTAL
£’000
10,665
120
(15)
10,770
2,416
214
(9)
2,621
8,149
8,249
2020
£’000
4,004
-
4,004
2,799
-
2,799
1,287
-
1,287

53

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. FIXED ASSET INVESTMENTS

The group comprises the following entities:

Name Country of Incorporation Regulated/ Nature of
incorporation and ownership non- Business
regulated
St Christopher’s (Isle of Isle of Man Company – 100% Non-regulated Children’s social
Man) care
SCF Services Limited England Company – 100% Non-regulated Children’s social
care
Future Families (West England Company – 100% Non-regulated Independent
Midlands) Ltd Fostering Agency

The parent holds an investment of £347k for Future Families (West Midlands) Ltd. The goodwill arising is fully amortised in the Group and will be subject to impairment when the company is made dormant in the next 12 months.

13. TRADE AND OTHER DEBTORS

Amounts falling due within one year
Rent arrears
Less: provision for bad debts
Net rental debtors
Other Debtors
Amounts owed from Group undertakings
Prepayments and Accrued Income		 Group
2021
£’000
128
(105)
23
546
-
788
1,357		 Parent
2021
£’000
128
(105)
23
532
-
687
1,242		 Group
2020
£’000
90
(86)
4
896
-
826
1726		 Parent
2020
£’000
90
(86)
4
878
159
737
1,778

Debtors are all due within one year.

14. CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade Creditors
Amounts owed to Group undertakings
Taxation and Social Security payable
Accruals and deferred income
SHPS pension agreement plan (Note 24.2)
Deferred Capital Grant (Note 16)
Recycled Capital Grant (Note 17)		 Group
2021
£’000
438
-
284
1,118
1
45
722
2,608		 Parent
2021
£’000
408
2,967
201
859
1
45
722
5,203		 Group
2020
£’000
325
-
313
1,019
1
45
-
1,703		 Parent
2020
£’000
303
2,291
211
836
1
45
-
3,687

54

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Treasury management is provided by the parent company with the objectives of ensuring that operational cashflow needs can be met, assets are safeguarded and interest is earned.

Included in deferred income is £79,543 (2020: £130,750) received from The St Pancras Foundation. It has been specified for funding the setup and initial running costs of the UK based therapeutic team. £51,207 has been recognised in the current year.

15. CREDITORS DUE AFTER MORE THAN ONE YEAR

Deferred Capital Grant (Note 16)
Recycled Capital Grant (Note 17)
Growth Plan pension agreement plan (Note
24.2)		 Group
2021
£’000
3,357
-
4
3,361		 Parent
2021
£’000
3,357
-
4
3,361		 Group
2020
£’000
3,403
718
5
4,126		 Parent
2020
£’000
3,403
718
5
4,126

16. DEFERRED CAPITAL GRANT

At the start of the year
Released to income in the year
Addition
Transfer to Recycled Capital Grant
Amortisation on transfer to Recycled Capital
Grant
At the end of the year
Amount due to be released in less
than one year (Note 14 )
Amount due to be released in more
than one year (Note 15 )
Total accumulated government grant
and financial assistance received at 31 March		 Group
2021
£’000
3,449
(46)
-
-
-
3,403
45
3,357
3,402		 Parent
2021
£’000
3,449
(46)
-
-
-
3,403
45
3,357
3,402		 Group
2020
£’000
3,451
(46)
44
-
-
3,449
45
3,403
3,448		 Parent
2020
£’000
3,451
(46)
44
-
-
3,449
45
3,403
3,448

55

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. RECYCLED CAPITAL GRANT FUND

7.
RECYCLED CAPITAL GRANT FUND
Balance at the start of the year
Interest accrued
Transferred to Deferred Capital Grant
Addition
Balance at the end of the year		 Group
£’000
718
4
-
-
722		 Parent
£’000
718
4
-
-
722

All of this is due to the Greater London Authority

18. PROVISIONS FOR LIABILITIES AND CHARGES

8.
PROVISIONS FOR LIABILITIES AND CHARGES
Balance at the start of the year
Additions in the year
Released in the year against expenditure
Unused amounts reversed in the year
Balance at the end of the year		 Group
£’000
283
19
-

302		 Parent
£’000
133
17
-
-
150

The provision relates to the costs of meeting changed contractual requirements for the provision of services and contractual commitments under property leases, which have already been incurred, but which will not be paid until future accounting periods.

19. CAPITAL COMMITMENTS – GROUP AND PARENT

Capital expenditure that has been contracted for but has not been
provided for in the financial statements
Capital expenditure that has been authorised by the Council but has not
yet been contracted for		 2021
£’000
-
944
944		 2020
£’000
-
348
348

St Christopher’s expects these commitments to be financed by cash within the next year.

20. OPERATING LEASES

The Group and Parent hold certain properties, vehicles and office equipment under noncancellable operating leases. At the end of the year the future minimum lease payments were as follows:

56

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

20. OPERATING LEASES (continued)

Group
Leases expiring:
Within next year
In second to fifth year
In more than five years
Parent
Leases expiring:
Within next year
In second to fifth year
In more than five years		 2021
Property
£’000
Other
£’000
196
16
196
24
-
-
58
9
49
14
-
-		 2020
Property
£’000
Other
£’000
198
8
259
-
-
-
46
5
55
-
1
-

21. RELATED PARTIES

Intra-group management fees are receivable by the parent from its subsidiaries to cover the running costs the association incurs on behalf of managing its subsidiaries and providing services. The management fee covers the services provided for the following functions; Human Resources, Information Technology, Finance, Business Development, Communications and Marketing and Executive. The management fees are primarily based on turnover but are adjusted to reflect additional time or resources that some subsidiaries may require. The total payable by subsidiaries to the parent in the year ended 31 March 2021 was £578,000 (2020: £505,000). As at the 31 March, £2,967,000 (2020: £2,291,000) is owed to group subsidiaries.

In total Council members received expenses of £Nil (2020: £2,124) and no remuneration in the year (2020: £Nil). There are no other related party transactions in the year (2020: none).

22. UNITS/BED SPACES

SOCIAL HOUSING:
Supported housing - owned and managed
- owned and managed
by others
- managed for others		 Group
2021
62
9
10
81		 Parent
2021
62
9
10
81		 Group
2020
62
9
10
81		 Parent
2020
62
9
10
81

23. TAXATION

The Parent, St Christopher’s Fellowship, has charitable status as has St Christopher’s (Isle of Man). SCF Services Limited has no taxable profits for the year and so no provision or charge for taxation has been included in the financial statements.

57

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

24. PENSIONS OBLIGATIONS – GROUP AND PARENT

One group money purchase schemes with Aviva is available for UK staff and one group money purchase scheme with Aviva is available for staff of St Christopher's (Isle of Man). TPT Retirement Solutions has notified St Christopher’s that it is also a participating employer in the ‘Growth Plan’ which is described in Note 24.1.

St Christopher's withdrew from defined benefit salary schemes, operated by the London Pensions Fund Authority, TPT Retirement Solutions (Social Housing Pension Scheme) and Local Government Pension Fund within the prior year.

The total pension cost for St Christopher’s for the year was £429,000 (2020: £420,000) covering 329 employees (2020: 325).

24.1 TPT Retirement Solutions’ Growth Plan

St Christopher’s participates in TPT Retirement Solutions’ Growth Plan. The scheme is a multiemployer scheme which provides benefits to some 1,300 non-associated employers. The scheme is a defined benefit scheme in the UK. TPT Retirement Solutions, which administers the scheme, has advised St Christopher’s that is not possible to provide sufficient information to enable St Christopher’s to account for the scheme as a defined benefit scheme. Therefore, St Christopher’s financial statements accounts for the scheme as a defined contribution scheme.

The scheme is subject to funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and

Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a “last-man standing arrangement”. Therefore St Christopher’s is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit Contribution

From 1 April 2019 to 31 March 2025

£11.2m per annum (payable monthly and increasing by 3% each year on 1 April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where St Christopher’s has agreed to a deficit funding arrangement, St Christopher’s recognises the liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that

58

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

24. PENSIONS OBLIGATIONS – GROUP AND PARENT (continued)

Present Value of Creditor
2021
2020
2019
£’000
£’000
£’000
Present value of creditor
5
6
7
Reconciliation of Opening and Closing Creditor
2021
£’000
2020
£’000
Creditor at start of the period
6
7
Unwinding the discount factor (interest expense)
-
-
Deficit contribution paid
(1)
(1)
Re-measurements – impact of change in assumptions
-
-
Re-measurement – amendments to the contributions schedule
-
-
Creditor at end of period
5
6
Statement of Comprehensive Income Impact
2021
£’000
2020
£’000
Interest expense
-
-
Re-measurements – impact of change in assumptions
-
-
Re-measurement – amendments to the contributions schedule
-
-
Cost recognised in the Statement of Comprehensive Income
-
-		 Present Value of Creditor
2021
2020
2019
£’000
£’000
£’000
Present value of creditor
5
6
7
Reconciliation of Opening and Closing Creditor
2021
£’000
2020
£’000
Creditor at start of the period
6
7
Unwinding the discount factor (interest expense)
-
-
Deficit contribution paid
(1)
(1)
Re-measurements – impact of change in assumptions
-
-
Re-measurement – amendments to the contributions schedule
-
-
Creditor at end of period
5
6
Statement of Comprehensive Income Impact
2021
£’000
2020
£’000
Interest expense
-
-
Re-measurements – impact of change in assumptions
-
-
Re-measurement – amendments to the contributions schedule
-
-
Cost recognised in the Statement of Comprehensive Income
-
-		 Present Value of Creditor
2021
2020
2019
£’000
£’000
£’000
Present value of creditor
5
6
7
Reconciliation of Opening and Closing Creditor
2021
£’000
2020
£’000
Creditor at start of the period
6
7
Unwinding the discount factor (interest expense)
-
-
Deficit contribution paid
(1)
(1)
Re-measurements – impact of change in assumptions
-
-
Re-measurement – amendments to the contributions schedule
-
-
Creditor at end of period
5
6
Statement of Comprehensive Income Impact
2021
£’000
2020
£’000
Interest expense
-
-
Re-measurements – impact of change in assumptions
-
-
Re-measurement – amendments to the contributions schedule
-
-
Cost recognised in the Statement of Comprehensive Income
-
-
6
2020
£’000
-
-
-
- -
Assumptions
2021 2020 2019
% pa % pa % pa
Rate of discount 0.66 2.53 1.39

The discount rates shown above are the equivalent single discount rates, which when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

St Christopher’s has been notified by TPT Retirement Solutions of the estimated employer debt if the Association were to withdraw from the Growth Plan based on the financial position of the scheme as at 30 September 2020. As at this date the Actuary has estimated that the employer debt for the Growth Plan was £13,625.

59

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

24. PENSIONS OBLIGATIONS – GROUP AND PARENT (continued)

24.2 Pension creditors – Group and Parent

Summary of creditor explained in notes 21.2 to 21.3
TPT Retirement Solutions’ Growth Plan in less than one year
(Note 14)
TPT Retirement Solutions’ Growth Plan due in more than one
year (Note 16)		 2021
£’000
1
4
5		 2020
£’000
1
5
6

25. INCOME FROM VOLUNTARY AND DISCRETIONARY SOURCES

St Christopher’s is greatly appreciative of the funding it receives from a number of sources, including:

Castletown Ale Drinkers Elizabeth Clucas Charitable Trust GD Herbert Charitable Trust Grove Centre Church Hadrian's Charity Howdens Joinery & Co Manx Telecom It’s our community Marsh & McLennan Pacific Fund Systems Limited Ramsey Golf Club Zurich Financial Services

In addition, St Christopher’s has benefited from the generosity of individual donors, whose support is critical in enabling the continuation of St Christopher’s work. St Christopher’s is most grateful to all of these individual donors.

26. GRANTS

Barclays
BBC Children in Need
Esmee Fairbairn Foundation
Gwyneth Forrester Trust
LandAid Charitable Trust
Manx Lottery Charitable Trust
Peacock Trust
Schroder
Sisters of the Holy Cross
Social Investment Board Youth Endowment Fund
Trusts of the Alchemy Foundation
Winston Churchill Memorial Trust		 2021
£’000
25
9
76
40
81
13
10
-
20
-
-
10
284		 2020
£’000
-
33
51
-
43
-
-
2
-
55
1
-
185

60

ST CHRISTOPHER’S FELLOWSHIP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

26. GRANTS (continued)

Department for Education
-
Income
-
Expenditure		 2021
£’000
298
298
-		 2020
£’000
177
177
-

27. MEMBERS’ LIABILITY

St Christopher’s Fellowship is a company limited by guarantee and has no share capital. Every Council member, who are also members of the company undertake to contribute up to £1 in the event of the company being wound up.

28. FINANCIAL INSTRUMENTS

The Group’s financial instruments may be
analysed as follows:
Financial assets at cost:
Cash and cash equivalents
Financial assets measured at amortised cost:
Trade and other debtors
Financial liabilities measured at amortised cost:
Trade and other creditors		 2021
£’000
5,527
569
6,096
2,607
2,607		 2020
£’000
4,293
896
5,189
1,703
1,703

29. NET DEBT

Cash and cash equivalents
Cash
Borrowings
Debt due within one year
Debt due after one year
Total		 As at 1
April 2020
£’000
4,293
4,293
-
-
-
4,293		 Cash
Flows
£’000
1,234
1,234
-
-
-
1,234		 Other
non-
cash
changes
£’000
-
-
-
-
-
-		 As at 31
March
2021
£’000
5,527
5,527
-
-
-
5,527

61