**Charity registration number 210163** **Company registration number 361505 (England and Wales)** ## **PARKHAVEN TRUST** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2022** ## **PARKHAVEN TRUST** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|J Clark|| |---|---|---| ||Dr J Williams|| ||N W Adshead|| ||M P Copple|| ||K L Henderson|| ||P Deyes|(Appointed 2 July 2021)| ||R Walker|(Appointed 25 October 2021)| |**Secretary**|K Randall|| |**Charity number**|210163|| |**Company number**|361505|| |**Auditor**|Mitchell Charlesworth (Audit) Limited|| ||3rd Floor|| ||5 Temple Square|| ||Temple Street|| ||Liverpool|| ||Merseyside|| ||L2 5RH|| |**Bankers**|Lloyds Bank plc|| ||Station House|| ||Mercury Court|| ||Tithebarn Street|| ||Liverpool|| ||Merseyside|| ||L2 2QP|| |**Solicitors**|Weightmans LLP|| ||100 Old Hall Street|| ||Liverpool|| ||Merseyside|| ||L3 9QJ|| ## **PARKHAVEN TRUST** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 6| |Independent auditor's report|7 - 10| |Statement of financial activities|11 - 12| |Balance sheet|13| |Statement of cash flows|14| |Notes to the financial statements|15 - 33| ## **PARKHAVEN TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees (who are also the directors for the purposes of company law) present their report and financial statements for the year ended 31 March 2022. The trustees have adopted the provision of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS102) in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". ## **Objectives and activities** Parkhaven Trust's strategic objectives are given below with progress made during 2021-22 highlighted in the report. - Be a centre of excellence and leaders in dementia care services, from at home support to end of life care - Operate with a surplus and be financially strong - Have an excellent reputation for diversity and innovation - Attract and retain the best staff Parkhaven Trust was established over a hundred and thirty years ago when it was called the Maghull Homes for the Epileptics. In 1997, it changed its name to Parkhaven Trust. ## The charity’s objects are: _To relieve the needs of older people and people with epilepsy, learning, physical and other disabilities by the provision of community homes, residential care, nursing home care and a range of day and domiciliary care. Also, to provide training opportunities for staff service users and their carers._ Parkhaven Trust’s mission statement is “to be a centre of excellence and leaders in dementia care". The services provided : ## Residential care - James Page Nursing Home provides nursing care for up to 36 older people. During 2021/22 demand remained low due to the impact of COVID-19, but improved slowly over the year. In quarter 4 Parkhaven Trust was commissioned by the NHS to provide seven hospital discharge beds. This has continued into 2022/23 and is currently under review. - The Beeches provides residential care for up to 30 people with dementia and provides EMI nursing care for up to 15 people with dementia. Demand fell for this service during 2020/21 due to COVID-19 but improved this year. There is currently a waiting list of people who are in discussion with the service about a date to be admitted. - 1 - ## **PARKHAVEN TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## Support services - The Willow Centre provides a day service for up to 30 older people with dementia. The Willow Centre closed in March 2020 reopening in September 2020 with a maximum number of 15 service users each day due to COVID-19 restrictions. During 2021-22 average attendance increased slightly to 49 places per week out of 75 places available and continues to increase. - Parkhaven@home is a registered domiciliary service which enables the charity to provide care in people’s own homes including 9 people living at The White House and tenants living in Parkhaven Court, an extra care housing scheme. Sefton Council commission the White House on an individual basis and Parkhaven Court was awarded a two year contract in 2021 with the potential for a further year. The planned expansion of domiciliary care services during 2021-22 did not materialise due to the lack of staff to provide the service. ## **Public benefit statement** Parkhaven Trust is a provider of care for people in need. These services offer an excellent environment, standard and flexibility of care and are open to everyone either directly or through contracts with local authorities or the NHS . The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** It continues to be a challenging time for everyone associated with Parkhaven Trust, our service users and their families, our staff and their families, our commissioners and our suppliers. Every aspect of what we do has continued to be impacted in some way by the pandemic during 2021/22. Trustees are immensely proud of the way that staff adapted to a new “normal”, in how they care for service users and each other in very challenging times and for the support they have given to families. Parkhaven Trust continues to follow government guidance to ensure all of our service users and staff remain safe during this time. Our focus continues to be on the improvement and development of existing services and support systems. Our estate was upgraded, including internal and external decorations and improvements where it was safe to do so. Improvements in the grounds were also carried out including extensive tree felling following storm damage. During the year Parkhaven Trust achieved standards met in the Data Security and Protection Toolkit (DSPT) which is an annual self-assessment for health and care organisations. As a care provider, it shows you what you need to do to keep people's information safe, and to protect your business from the risk of a data breach or a cyber-attack. Achieving this status also meant that following the successful implementation of electronic care planning at James Page, The Beeches and Parkhaven Court the charity could access the GP gateway scheme ensuring the successful sharing of health and care records between health care providers. In addition the charity qualified in the cyber essentials scheme which is an effective government backed scheme to protect against a whole range of the most common cyber-attacks. Staff training continues in all areas of GDPR, cyber security and uses of technology. Due to the level of experience in implementing and using digital solutions in care, Parkhaven Trust was consulted by Cheshire and Merseyside Health and Care partnership on our experience of introducing digital care solutions. Parkhaven Trust was also an Echo Business Award Finalist in the Innovation and Technology category. - 2 - ## **PARKHAVEN TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ Parkhaven Trust continues to engage an outside company to carry out the role of advisors to the charity in our approach to Health and Safety. The company carries out a review of policy, risk assessments for fire, premises and grounds, kitchen audits, delivered fire safety training programmes and advised on incident reporting issues. The Quality Strategy continued to improve quality with infection control continuing to be emphasised in response to the pandemic and CQC fundamental standards used to ensure that services were compliant with good quality care. Parkhaven Trust remains a member of the National Care Forum, which has continued to be invaluable during 2021-22 with timely access to support and guidance on a number of issues. The internal audit framework of the charity has been rewritten during the year and audits are now beginning to take place using this framework, including Trustee visits. The development needs for Trustees were agreed in 2021/22 along with membership of committees and specific contributions to be made. Service user/family feedback was gathered during the year to assess how the charity was performing. A staff survey was undertaken and once more produced very positive results with the majority of staff agreeing that Parkhaven is a good place to work. All services are rated as “Good” by CQC after the Beeches received its first full inspection in December 2021. A thorough review of all policies was completed during the year with policies updated to reflect any changes in principles and/or legislation. Policies provide a formal set of “business rules” for staff, to inform their decision-making. They are important as they set the principles of how an organisation works and help to ensure that business objectives are met, and risks are controlled. As part of this process, a policy development and review toolkit was created and implemented. During the year, Parkhaven Trust carried out a Business Resilience Review with the assistance of an external consultancy firm, the results of which are included in the objectives for 2022-23. The workforce development plan continues to enable Parkhaven Trust to meet its strategic objectives and support the workforce to provide the highest standards of care to service users. Parkhaven Trust is represented on the Liverpool City Region Employment and Skills Board, Everton FC Legacy project and Sefton VCF sector partnership board and has used membership to access additional support for our workforce plan. Parkhaven Trust endeavours to be excellent in all that it does and was reassessed in 2021/22 to ensure that the action plan resulting from the initial Investors in People Gold standard assessment was delivered, ensuring the charity retained the Investors in People Gold standard. This is external recognition of the charity's commitment to the development, investment and involvement of its staff. The excellence of the services is only possible because of the excellence of our staff. Parkhaven Trust also maintains the Workplace Wellbeing Award which was awarded in March 2016 in recognition of the charity's commitment to staff wellbeing. ## **Financial review** Parkhaven Trust has been supported by generous gifts and legacies, for which the charity is most grateful with £10,15 7 received in donations and fundraising during the year. Additional funding from commissioners was also received to support COVID-19 related costs. Grants were received for dementia friendly flooring at James Page and 3 interactive tables for services users. 2021/22 has been a difficult year financially . A small uplift of fees was awarded by the Local Authorities for residential care placements and by the NHS for the funded nursing care rate. Parkhaven Trust has seen an increase in financial pressures from the increase in infection control measures, staffing pressures, increases in utility and insurance costs and continued investment in information technology. Investment in technology has enabled service users and their families to stay in touch when visiting in person was not possible and to maintain regular contact with multi-disciplinary teams. It is also necessary to ensure the security of data, whilst allowing data to be shared with the relevant parties, enabling better care. Parkhaven Trust remains clear that full cost recovery must be achieved for all services, and it is working very hard towards this. Where services do not balance income with expenditure, plans are put in place to address this. Parkhaven Trust aims to minimise its management overheads as far as possible with overheads representing 11% of fee income at the year-end. Each department across the charity is set a budget for the year with results discussed with the department heads on a monthly basis. In line with our strategy the 2021-22 budget was drafted to include a 3% surplus. - 3 - ## **PARKHAVEN TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Reserves policy** The free reserves of Parkhaven Trust should be sufficient to cover any anticipated running costs for 3 months in order to ensure continuity of service should the charity experience difficulties with income streams. This is reviewed annually and considered in conjunction with the risk register. ## **Investment policy** The investment policy of Parkhaven Trust aims to minimise risk and maintain liquidity. Funds are diversified across banking institutions on short to medium term deposits, which can be easily accessed in line with the charity's r eserves policy. Interest rates are reviewed to ensure the most competitive rates are sourced. Trustees are briefed on the status of investment values and interest rates on a quarterly basis or more frequently if significant changes arise. ## **Risk policy** At all times the charity is aware of the need to minimise the risk that it faces. Risks and the risk register are reviewed quarterly by the Parkhaven Trust Board. This is then used to inform the work and priorities of the charity for the coming months. ## **Summary** The primary aim of Parkhaven Trust is to ensure that service users receive high quality services that they want and need, in a safe and excellent environment. We will build on the history and sustainability demonstrated for more than a century. Those that set up the charity showed foresight and generosity in establishing Parkhaven Trust. It now serves different but no less important functions in affording domiciliary, day and residential care for older people, people with dementia and people with learning disabilities. The Trustees are keen that this continues to demonstrate a real commitment to providing excellent and innovative services that meet the needs of those that require services now and in the future. ## **Structure, governance and management** The charity is a company limited by guarantee, incorporated on 29th May 1940 and is therefore governed by a Memorandum and Articles of Association which have been subject to revision and were formally adopted in September 2008. ## **Trustees** The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: J Clark C J Flynn (Resigned 28 July 2021) E R Kitt (Resigned 25 October 2021) Dr J Williams N W Adshead M P Copple K L Henderson P Deyes (Appointed 2 July 2021) R Walker (Appointed 25 October 2021) - 4 - ## **PARKHAVEN TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Trustee appointment, induction and training** Trustees are appointed for a three year fixed tenure with the possibility of renewal. Trustees are appointed following an open recruitment process which comprises advertising in the local press, online and interviews. Parkhaven Trust is keen to ensure it has an appropriate skill mix to reflect the needs and focus of the charity. All new Trustees receive a comprehensive induction pack and programme. The induction programme includes a meeting with the CEO and visits to all the charity's services. All Trustees have an enhanced DBS check and an annual review with the Chair of Parkhaven Trust. The Parkhaven Trust Audit Schedule requires a Trustee to visit every service within the charity twice per year. Reports on the visits are then completed and forwarded to the CEO and relevant managers. ## **Organisation** A Board of Trustees administers the charity. The Board of Trustees met four times during the twelve month period April 2021 to March 2022. The purpose of the Board is to ensure a clear strategic direction and to hold the organisation to account. The agendas of the meetings reflect these objectives. In addition three sub-committees meet on a regular basis, these include: - The Finance and Investment Committee which is responsible for reviewing the financial results and position of the charity including reviewing and monitoring investment strategy and performance. This Committee met twice during the year. - The Remuneration Committee sets the pay and conditions of the Chief Executive and Senior Management Team. This Committee met once during the year. - The Development Committee, which is responsible for agreeing the development strategy of the charity, did not meet during the year. ## **The Senior Management Team** Day to day management of the charity is delegated to the senior managers. The senior management team for 2021 /22 was: - Mrs K Crowe - Mrs M O’Reilly - Ms K Randall - Mr J McGee - Mrs S Lysaght - Mrs K Whitemoss - Ms R Incledon The remuneration for each post is considered on the basis of the responsibilities of the post, the market rate for similar positions and experience of the post holder. - 5 - ## **PARKHAVEN TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Statement of trustees' responsibilities** The trustees, who are also the directors of Parkhaven Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **Auditor** In accordance with the company's articles, a resolution proposing that Mitchell Charlesworth (Audit) Limited be reappointed as auditor of the company will be put at a General Meeting. ## **Disclosure of information to auditor** Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The trustees' r eport was approved by the Board of Trustees. ## **K Randall** Company Secretary Dated: 25 July 2022 - 6 - ## **PARKHAVEN TRUST** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE MEMBERS OF PARKHAVEN TRUST** ## **Opinion** We have audited the financial statements of Parkhaven Trust (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). - In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. - 7 - ## **PARKHAVEN TRUST** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE MEMBERS OF PARKHAVEN TRUST** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of our audit: - the information given in the trustees' r eport for the financial year for which the financial statements are prepared , which includes the d irectors ' r eport prepared for the purposes of company law, is consistent with the financial statements; and - the d irectors ' r eport included within the trustees' r eport has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport. In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies ' exemptions in preparing the trustees' r eport and from the requirement to prepare a s trategic r eport. ## **Responsibilities of trustees** As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below . - 8 - ## **PARKHAVEN TRUST** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE MEMBERS OF PARKHAVEN TRUST** ## **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. ## **Identifying and assessing potential risks related to irregularities** In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: the nature of the industry and sector, control environment and business performance; the charity's own assessment of the risks that irregularities may occur either as a result of fraud or error; the results of our enquiries of management and members of the Board of Trustees of their own identification and assessment of the risks of irregularities; any matters we identified having obtained and reviewed the charity’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: (i) The presentation of the charity's Statement of Financial Activities, (ii) the charity's accounting policy for revenue recognition (iii) the overstatement of salary and other costs (iv) the assumptions used in the calculation of the valuation of the surplus or deficit on the defined benefit pension scheme and the movements for the year. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Statement of Recommended Practice - 'Accounting and Reporting by Charities' issued by the joint SORP making body . In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty. These included the registration with the Care Quality Commission and Data Protection Regulations. - 9 - ## **PARKHAVEN TRUST** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE MEMBERS OF PARKHAVEN TRUST** ## **Audit response to risks identified** As a result of performing the above, we identified the presentation of the charity's Statement of Financial Activities , revenue recognition and overstatement of wages and other costs as the key audit matters related to the p otential risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes the specific procedures we performed in response to those key audit matters. In addition to the above, our procedures to respond to risks identified included the following: - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a d irect effect on the f inancial s tatements; - enquiring of management and members of the Board of Trustees concerning actual and potential litigation and claims; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - reading minutes of meetings of those charged with governance and reviewing correspondence with relevant authorities where matters identified were significant; - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non - compliance with laws and regulations throughout the audit. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. ## **Philip Griffiths (Senior Statutory Auditor)** **for and on behalf of Mitchell Charlesworth (Audit) Limited** 26 July 2022 **Accountants Statutory Auditor** 3rd Floor 5 Temple Square Temple Street Liverpool Merseyside L2 5RH - 10 - ## **PARKHAVEN TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Current financial year** |**Unrestricted**
**funds**
**2022**
**Notes**
**£**
**Income and endowments from:**
Donations and legacies
**3**
10,157
Charitable activities
**4**
4,823,990
Investments
**5**
32
Other income
**6**
496,268
**Total income**
5,330,447
**Expenditure on:**
Charitable activities
**7**
4,712,014
**Net incoming/(outgoing) resources before transfers**
618,433
Gross transfers between funds
420
**Net income/(expenditure) for the year/**
**Net incoming/(outgoing) resources**
618,853
**Other recognised gains and losses**
Actuarial loss on defined benefit pension schemes
(38,363)
**Net movement in funds**
580,490
Fund balances at 1 April 2021
11,239,357
**Fund balances at 31 March 2022**
11,819,847|**Restricted**
**funds**
**2022**
**£**
236,183
-
-
-
236,183
218,883
17,300
(420)
16,880
-
16,880
422,870
439,750|**Total**
**2022**
**£**
246,340
4,823,990
32
496,268
5,566,630
4,930,897
635,733
-
635,733
(38,363)
597,370
11,662,227
12,259,597|Total
2021
**£**
320,554
4,374,587
2
147,554
4,842,697
4,860,432
(17,735)
-
(17,735)
(37,901)
(55,636)
11,717,863
11,662,227| |---|---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 11 - ## **PARKHAVEN TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Comparative information at 31 March 2021** |**Unrestricted**
**funds**
**2021**
**Notes**
**£**
**Income and endowments from:**
Donations and legacies
**3**
261,956
Charitable activities
**4**
4,374,587
Investments
**5**
2
Other income
**6**
147,554
**Total income**
4,784,099
**Expenditure on:**
Charitable activities
**7**
4,801,834
**Net incoming/(outgoing) resources before transfers**
(17,735)
**Net income/(expenditure) for the year/**
**Net incoming/(outgoing) resources**
(17,735)
**Other recognised gains and losses**
Actuarial loss on defined benefit pension schemes
(37,901)
**Net movement in funds**
(55,636)
Fund balances at 1 April 2020
11,294,993
**Fund balances at 31 March 2021**
11,239,357|**Restricted**
**funds**
**2021**
**£**
58,598
-
-
-
58,598
58,598
-
-
-
-
422,870
422,870|**Total**
**2021**
**£**
320,554
4,374,587
2
147,554
4,842,697
4,860,432
(17,735)
(17,735)
(37,901)
(55,636)
11,717,863
11,662,227| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 12 - ## **PARKHAVEN TRUST** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2022**_ |**Notes**
**Fixed assets**
Tangible assets
**12**
Investments
**13**
**Current assets**
Debtors
**14**
Cash at bank and in hand
**Creditors: amounts falling due within one**
**year**
**16**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after more**
**than one year**
**17**
**Net assets**
**Income funds**
Restricted funds
**19**
Unrestricted funds
Designated funds
**20**
General unrestricted funds|**2022**
**£**
**£**
11,494,097
2
11,494,099
968,299
1,087,043
2,055,342
(1,289,844)
765,498
12,259,597
-
12,259,597
439,750
572,424
11,247,423
11,819,847
12,259,597|**2021**
**£**
**£**
11,850,837
2
11,850,839
651,799
561,976
1,213,775
(894,887)
318,888
12,169,727
(507,500)
11,662,227
422,870
189,013
11,050,344
11,239,357
11,662,227| |---|---|---| The financial statements were approved by the Trustees on 25 July 2022 Dr J Williams **Trustee** **Company registration number 361505** - 13 - ## **PARKHAVEN TRUST** ## **STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from operations
**25**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed assets
Investment income received
**Net cash generated from/(used in) investing**
**activities**
**Financing activities**
Proceeds of new bank loans
**Net cash (used in)/generated from financing**
**activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(76,048)
657,771
32
-|**£**
(56,688)
581,755
-
525,067
561,976
1,087,043|**2021**
**£**
(420,756)
60,892
2
507,500|**£**
168,788
(359,862)
507,500
316,426
245,550
561,976| |---|---|---|---|---| - 14 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **Charity information** Parkhaven Trust is a private company limited by guarantee incorporated in England and Wales. The address of the registered office is given in the legal and administrative information in these financial statements. The nature of the charity’s operations and principal activities are described in the Trustees’ Report on pages 2 and 3. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ## **1.2 Going concern** The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties, including those arising from Covid-19, exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity where they have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. ## **1.4 Income** All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. - 15 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity but it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed. Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, can be measured reliably and the charity has control over the items. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees’ Annual Report. The charity receives grants in respect of staff training. Income from government and other grants is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If the charity does not have entitlement the amounts are deferred. Voluntary income is only deferred when: the donor specifies that the grant or donation must only be used in future accounting years; or the donor has imposed conditions which must be met before the charity has unconditional entitlement. Income from charitable activity incorporating care fees is deferred until entitlement to the income has passed when received in advance. Investment income is earned through holding assets for investment purposes such as shares and property. It includes interest and rent. Interest income is recognised using the effective interest method and rent income is recognised as the charity’s right to receive payment is established. Other income includes gains on disposals of tangible fixed assets. ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. - 16 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: - Expenditure on charitable activities includes costs associated with the operation and management of residential accommodation and welfare support services. - Other expenditure represents those items not falling into the categories above. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a pro-rata basis consistent with use of the resources. The analysis of these costs is included in note 7. ## **1.6 Tangible fixed assets** Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Individual assets are capitalised on the balance sheet where their cost exceeds £500. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: Freehold land and buildings Not depreciated Fixtures and fittings 10% / 20% per annum Motor vehicles 10% / 20% per annum Depreciation is not provided on freehold land and buildings as they are maintained to a high standard and have such a long expected useful life that any depreciation charge is not considered material. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities . ## **1.7 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred. Investments in subsidiaries are measured at cost less impairment. ## **1.8 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . - 17 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.10 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Impairment of financial assets**_ Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year. ## _**Derecognition of financial assets**_ Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. - 18 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled. ## **1.11 Taxation** The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore meets the definition of a charitable company for UK corporation tax purposes. ## **1.12 Employee benefits** When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. Redundancy pay is payable when the employment of an individual who has been with the charity for more than two years is terminated. ## **1.13 Retirement benefits** The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. - 19 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **3 Donations and legacies** |**Unrestricted**
**funds**
**2022**
**£**
Donations and gifts
10,157
Grants receivable
-
10,157|**Restricted**
**funds**
**2022**
**£**
-
236,183
236,183|**Total**Unrestricted
funds
**2022**
2021
**£**
£
10,157
5,166
236,183
256,790
246,340
261,956|Restricted
funds
2021
£
-
58,598
58,598|Total
2021
£
5,166
315,388| |---|---|---|---|---| |||||320,554| ## **4 Charitable activities** |||**Care and**|**Care and**| |---|---|---|---| |||**support**|**support**| |||**services**|**services**| |||**2022**|**2021**| |||**£**|**£**| ||Care fees|4,823,990|4,374,587| |**5**|**Investments**||| |||**Unrestricted**|Unrestricted| |||**funds**|funds| |||**2022**|2021| |||**£**|£| ||Interest receivable|32|2| |**6**|**Other income**||| |||**Unrestricted**|Unrestricted| |||**funds**|funds| |||**2022**|2021| |||**£**|£| ||Net gain on disposal of tangible fixed assets|496,268|30,446| ||Other income|-|117,108| |||496,268|147,554| - 20 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **7 Charitable activities** |Staff costs
Depreciation and impairment
Agency costs
Other staff costs
Rent, rates and water
Heat, light and power
Cleaning, maintenance and medical supplies
Catering
Activity costs
Travel
Equipment costs
Insurance
Telephone and communications
Fees and licences
Loss on disposal of tangible fixed assets
Share of support costs (see note 8)
Share of governance costs (see note 8)
**Analysis by fund**
Unrestricted funds
Restricted funds|**Care and**
**support**
**services**
**2022**
**£**
3,272,549
53,967
359,113
111,451
192,703
192,177
146,036
88,923
14,917
6,076
11,866
66,640
14,893
43,684
(1,443)
4,573,552
318,237
39,108
4,930,897
4,712,014
218,883
4,930,897|**Care and**
**support**
**services**
**2021**
**£**
3,120,372
51,536
464,891
93,110
187,655
192,653
154,170
90,631
7,883
5,572
15,836
60,011
15,127
24,150
7,332| |---|---|---| |||4,490,929
325,727
43,776| |||4,860,432| |||4,801,834
58,598| |||4,860,432| - 21 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**8**
**Support costs**
**Support costs**
**Governance**
**costs**
**£**
**£**
Staff costs
234,310
-
Depreciation
8,430
-
Operating lease charges
8,955
-
Office costs
4,382
-
Legal and professional
12,583
-
Information technology
18,494
-
Advertising and marketing
24,071
-
Loan interest
7,012
-
Audit fees
-
8,000
Trustees' indemnity
insurance
-
1,734
Pension scheme advisory
-
29,374
318,237
39,108
Analysed between
Charitable activities
318,237
39,108|**2022**Support costs
Governance
costs
**£**
£
£
234,310
232,332
-
8,430
6,014
-
8,955
17,007
-
4,382
15,373
-
12,583
25,373
-
18,494
9,063
-
24,071
17,842
-
7,012
2,723
-
8,000
-
7,214
1,734
-
1,400
29,374
-
35,162
357,345
325,727
43,776
357,345
325,727
43,776|2021
£
232,332
6,014
17,007
15,373
25,373
9,063
17,842
2,723
7,214
1,400
35,162| |---|---|---| |||369,503| |||369,503| ## **9 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. The trustees did not have any expenses reimbursed during the current or preceding year. ## **10 Employees** The average monthly number of employees during the year was: |Care and ancillary services
Support
Total|**2022**
**Number**
167
10
177|**2021**
**Number**
172
10| |---|---|---| |||182| - 22 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**10**
**Employees**
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
The average number of full time equivalents was 1 38 (20 21 1 49 ).
No redundancy payments were made in the current year (2021 £9,209) .|**(Continued)**
**2022**
**2021**
**£**
**£**
3,226,258
3,093,080
224,738
200,867
55,863
58,757
3,506,859
3,352,704|**(Continued)**
**2022**
**2021**
**£**
**£**
3,226,258
3,093,080
224,738
200,867
55,863
58,757
3,506,859
3,352,704| |---|---|---| |||3,352,704| |||| |The number of employees whose annual remuneration was £60,000 or more||| |---|---|---| |were:||| ||**2022**|**2021**| ||**Number**|**Number**| |£70,001 - £80,000|1|1| ## **11 Interest payable and similar expenses** Interest on bank loans totalling £7,012 (2021 £2,723) was paid during the year. - 23 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **12 Tangible fixed assets** |**Cost**
At 1 April 2021
Additions
Disposals
At 31 March 2022
**Depreciation and impairment**
At 1 April 2021
Depreciation charged in the year
At 31 March 2022
**Carrying amount**
At 31 March 2022
At 31 March 2021|**Freehold land**
**and buildings**
**£**
11,477,100
9,884
(370,390)
11,116,594
-
-
-
11,116,594
11,477,100|**Fixtures and**
**fittings**
**Motor vehicles**
**£**
**£**
621,173
45,801
66,164
-
-
-
687,337
45,801
247,437
45,801
62,397
-
309,834
45,801
377,503
-
373,737
-|**Total**
**£**
12,144,074
76,048
(370,390)
11,849,732
293,238
62,397
355,635
11,494,097
11,850,837| |---|---|---|---| ## **13 Fixed asset investments** ||||**Other**| |---|---|---|---| ||||**investments**| |**Cost or valuation**|||| |At 1 April 2021 & 31 March 2022|||2| |**Carrying amount**|||| |At 31 March 2022|||2| |At 31 March 2021|||2| |||**2022**|**2021**| |Other investments comprise:|**Notes**|**£**|**£**| |Investments in subsidiaries||2|2| The company owns the whole of the issued ordinary share capital of The Maghull Homes Limited, a company incorporated in England and Wales. The company has not traded during the year and its share capital and reserves at 31 March 202 1 amounted to £2. - 24 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**14**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**15**
**Loans and overdrafts**
Bank loans
Payable within one year
Payable after one year|**2022**
**£**
229,594
216,972
521,733
968,299
**2022**
**£**
507,500
507,500
-|**2021**
**£**
386,644
21,474
243,681| |---|---|---| |||651,799| |||**2021**
**£**
507,500| |||-
507,500| On 7 October 2020 the charity received a loan of £507,500 from Lloyds Bank plc . The loan is interest only and is repayable by a single instalment in October 2022. Interest is charged annually at a rate of 1.17% above LIBOR. The loan is secured by way of legal charges dated 19 October 2020 over the properties at James Page House and Kyffin Taylor House. ## **16 Creditors: amounts falling due within one year** |**16**
**Creditors: amounts falling due within one year**||| |---|---|---| |**Notes**
Bank loans
**15**
Other taxation and social security
Payments received on account
Trade creditors
Other creditors
Accruals and deferred income
**17**
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**15**|**2022**
**£**
507,500
230,061
165,306
190,801
54,285
141,891
1,289,844
**2022**
**£**
-|**2021**
**£**
-
369,595
124,610
207,889
47,677
145,116| |||894,887| |||**2021**
**£**
507,500| - 25 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **18 Retirement benefit schemes** ## **Defined contribution schemes** The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £54,226 (2021 - £56,657). ## **Defined benefit schemes** The charity operates a defined benefit pension plan for qualifying employees providing benefits based upon final pensionable pay. The pension plan is funded by the payment of contributions in accordance with the advice of the scheme actuary and assets of the plan are held in a separately administered fund. The most recent comprehensive actuarial valuation of pension plan assets and the present value of the defined benefit obligation was carried out at 31st March 20 20 . ## _Key assumptions_ |_Key assumptions_||| |---|---|---| ||**2022**|**2021**| ||**%**|**%**| |Discount rate|2.69|1.86| |Expected rate of inflation|3.93|3.44| |Pension increases (RPI max 5.0%)|3.63|3.34| |Pension increases (RPI max 5.0%, min 3.0%)|3.97|3.72| ## _Mortality assumptions_ T he assumed life expectations on retirement at age 65 are: |Retiring today
- Males
- Females
Retiring in 20 years
- Males
- Females
Amounts recognised in the profit and loss account:
Other costs and income|**2022**
**Years**
21.8
24.1
22.8
25.3
**2022**
**£**
1,637|**2021**
**Years**
21.7
24| |---|---|---| |||22.7
25.2| |||**2021**
**£**
2,100| - 26 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**18**|**Retirement benefit schemes**||**(Continued)**| |---|---|---|---| ||Amounts taken to other comprehensive income:||| |||**2022**|**2021**| |||**£**|**£**| ||Actual return on scheme assets|(90,242)|(464,127)| ||Less: calculated interest element|60,206|65,326| ||Return on scheme assets excluding interest income|(30,036)|(398,801)| ||Actuarial changes related to obligations|(222,479)|456,203| ||Effects of changes in the amount of surplus that is not recoverable|290,878|(19,501)| ||Total costs|38,363|37,901| ||The amounts included in the balance sheet arising from the charity's obligations in||| ||respect of defined benefit plans are as follows:||| |||**2022**|**2021**| |||**£**|**£**| ||Present value of defined benefit obligations|3,020,268|3,291,226| ||Fair value of plan assets|(3,508,881)|(3,488,961)| ||Surplus in scheme|(488,613)|(197,735)| ||Restriction on scheme assets|488,613|197,735| ||Total liability recognised|-|-| ||Movements in the present value of defined benefit obligations:||| ||||**2022**| ||||**£**| ||Liabilities at 1 April 2021||3,291,226| ||Benefits paid||(108,685)| ||Actuarial gains and losses||(222,479)| ||Interest cost||60,206| ||At 31 March 2022||3,020,268| - 27 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**18**
**Retirement benefit schemes**
The defined benefit obligations arise from plans funded as follows:
Wholly unfunded obligations
Wholly or partly funded obligations
Movements in the fair value of plan assets:
Fair value of assets at 1 April 2021
Interest income
Return on plan assets (excluding amounts included in net interest)
Benefits paid
Contributions by the employer
Other
At 31 March 2022
The fair value of plan assets at the reporting period end was as follows:
Equities and property
Fixed interest bonds
Cash and other
Annuities|**(Continued)**
**2022**
**£**
-
3,020,268
3,020,268
**2022**
**£**
3,488,961
60,206
30,036
(108,685)
40,000
(1,637)
3,508,881
**2022**
**2021**
**£**
**£**
1,587,782
1,491,765
1,124,630
1,210,287
386,083
296,955
410,386
489,954
3,508,881
3,488,961| |---|---| - 28 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **19 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: |**Movement in funds**
**Balance at**
**1 April 2020**
**Income**
**Expenditure**
**Balance at**
**1 April 2021**
**£**
**£**
**£**
**£**
Big Lottery Grant Fund
7,870
-
-
7,870
Sefton Social Services
140,000
-
-
140,000
Garfield Weston
50,000
-
-
50,000
Dunhill Medical Centre
85,000
-
-
85,000
Clothworkers Foundation
40,000
-
-
40,000
The Wolfson Foundation
100,000
-
-
100,000
The National Lottery Community Fund
-
58,598
(58,598)
-
PH Holt Foundation
-
-
-
-
Home Improvement Fund
-
-
-
-
Infection Control Fund
-
-
-
-
Workforce Recruitment and Retention Fund
-
-
-
-
422,870
58,598
(58,598)
422,870|**Movement in funds**
**Income**
**Expenditure**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,000
-
10,300
-
160,933
(160,933)
57,950
(57,950)
236,183
(218,883)|**Transfers**
**Balance at**
**31 March 2022**
**£**
**£**
-
7,870
-
140,000
-
50,000
-
85,000
-
40,000
-
100,000
-
-
(420)
6,580
-
10,300
-
-
-
-
(420)
439,750|**Transfers**
**Balance at**
**31 March 2022**
**£**
**£**
-
7,870
-
140,000
-
50,000
-
85,000
-
40,000
-
100,000
-
-
(420)
6,580
-
10,300
-
-
-
-
(420)
439,750| |---|---|---|---| ||||439,750| - 29 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **19 Restricted funds** **(Continued)** Big Lottery Fund provided a grant as a contribution towards a new Cricket Pavilion. The Wolfson Foundation has provided a grant of £100,000 to support the cost of The Beeches. All of the remainder have provided grants to support the cost of building the Willow Centre. The above funds are represented by tangible fixed assets and as the charity has a policy of not depreciating its freehold property, these funds will remain until such time as the properties are disposed. The National Lottery Community Fund provided a grant of £58,598 as part of the Coronavirus Community Support Fund programme. This funding was provided to assist the charity in paying operational costs during the Covid 19 pandemic. The PH Holt Foundation provided a grant of £7,000 for the purchase of a sensory table at the Willow Centre. A grant of £10,300 was received through Sefton Council's Capital Improvement Programme to replace the flooring at James Page with dementia friendly flooring and to provide a sensory table at The Beeches. Sefton Council provided Infection Control Funding of £160,933 to enable the charity to meet its payroll obligations in periods of enforced staff absence and other disruption during the Covid 19 pandemic. This funding was administered by the Department of Health and Social Care. Sefton Council provided Workforce Recruitment and Retention Funding of £57,950 to enable the charity to recruit and maintain the necessary quota of staff during the Covid 19 pandemic. This funding was administered by the Department of Health and Social Care. - 30 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **20 Designated funds** The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: |Buildings development fund|**Balance at**
**1 April 2020**
**Utilised/released**
**£**
**£**
577,265
(388,252)
577,265
(388,252)|**Balance at**
**1 April 2021**
**£**
189,013
189,013|**Movement in funds**
**New**
**designations**
**Utilised/released**
**Balance at**
**31 March 2022**
**£**
**£**
**£**
657,771
(274,360)
572,424
657,771
(274,360)
572,424| |---|---|---|---| The trustees have set aside the proceeds from the sales of land and properties as a buildings development fund. ## **21 Analysis of net assets between funds** |**Unrestricted**
**funds**
**2022**
**£**
Fund balances at 31
March 2022 are
represented by:
Tangible assets
11,054,347
Investments
2
Current assets/(liabilities)
765,498
Long term liabilities
-
11,819,847|**Restricted**
**funds**
**2022**
**£**
439,750
-
-
-
439,750|**Total**Unrestricted
funds
**2022**
2021
**£**
£
11,494,097
11,427,967
2
2
765,498
318,888
-
(507,500)
12,259,597
11,239,357|Restricted
funds
2021
£
422,870
-
-
-
422,870|Total
2021
£
11,850,837
2
318,888
(507,500)
11,662,227| |---|---|---|---|---| ## **22 Operating lease commitments** ## **Lessee** The total future minimum lease payments under non-cancellable operating losses are as follows: |Within one year
Between two and five years|**2022**
**£**
5,337
8,004
13,341|**2021**
**£**
5,337
13,341
18,678| |---|---|---| - 31 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **23 Capital commitments** There were no capital commitments at 31st March 202 2 (20 21 £ Nil ). ## **24 Related party transactions** ## **Remuneration of key management personnel** The remuneration of key management personnel is as follows. ||**2022**|**2021**| |---|---|---| ||**£**|**£**| |Aggregate compensation|295,070|267,390| The key management personnel of the Trust comprise the Chief Executive, Operations Manager, Finance Manager, Human Resources Business Partner, Estates Manage r, Marketing Manager and Community Services Manager. . ## **25 Cash generated from operations** |**Cash generated from operations**
**2022**
**£**
Surplus/(deficit) for the year
635,733
Adjustments for:
Investment income recognised in statement of financial activities
(32)
Gain on disposal of tangible fixed assets
(496,268)
Depreciation and impairment of tangible fixed assets
62,397
Other recognised gain(loss) on pension scheme
(38,363)
Movements in working capital:
(Increase) in debtors
(107,612)
(Decrease)/increase in creditors
(112,543)
(Decrease) in deferred income
-
**Cash (absorbed by)/generated from operations**
(56,688)|**2021**
**£**
(17,735)
(2)
(53,562)
57,550
(37,901)
(64,011)
286,083
(1,634)
168,788| |---|---| - 32 - ## **PARKHAVEN TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |26
**Analysis of changes in net funds**
**At**
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year|**1 April 2021**
**£**
561,976
-
(507,500)
54,476|**Cash flows**
**Other non-cash**
**changes**
**At 31 March 2022**
**£**
**£**
**£**
525,067
-
1,087,043
-
(507,500)
(507,500)
-
507,500
-
525,067
-
579,543| |---|---|---| - 33 -