. henshaws ANNUAL REVIEW Trustee Report & Accounts 2021- 2022 /1/ Contents 04 about Henshaws our values 07 message from the chair and the chief executive specialist college 10 community services 12 knowledge village & digital 13 arts & craft centre 14 supporters 15 fundraising complaints 16 thankyou's 17 staff and volunteers 18 f inancials independent auditor's report JO statement of f inancial activities balance sheet 52 statement of cash flows 33 notes to the f inancial statements Be ond Expectations About Henshaws who we are Henshaws has over 180 years of helping people living with sight loss and a range of other disabilitie& our aims Helping to reduce social isolation and increase independence through empowering disabled people to go beyond expectations and achieve their ambitions. our vision To enable people with sight loss and a range of other disabilities to build the skills and independence they need to achieve the future they want. how we support Our dedicated staff and volunteers are the fuel of the organisation-, they provide support, advice and training, enabling people and their families to build skills, develop conf idence, help each other and look forward to a more positive future. Did you know? We work throughout the North of England and our places include a Specialist College, Community Centres and an Arts & Crafts Centre. We support disabled people to be part of their local community. We are continually developing technology to support more people. wherevÈr they are, online. 04 where we su Knaresborough Arts & Crafts Centre • Harrogate Specialist College & Housing •Greater Manchester & Merseyside Sight Loss 05 Our values Informed Sharlng Always aiming to increase knowledge through experience. expertise and history Desire to exchange experience and ideas with others Compassionate Inspiring Displaying empathy and understanding Through the life changing impact on the people we support Proactive Empowering Actively helping and supporting individuals Encouraging and supporting individuals to reach their full potential 06 Message f rom the chair and the chief executive 2021-22 was a challenging yearfor Henshaws as we emerged from the uncertainty ofthe COVID-19 pandemic into a turbulent economic environment. Our focus during the year was on the physical and mental well-being of our staff and service users and f inancial sustainability for the Charity. Henshaws College enjoyed welcoming back all its students. The assessment and start for a small number was delayed due to continuing COVID-19 restrictions for social care setting5. However, by January, all students were attending and they had a successful year. with 96% achieving their educational targets. Our Community Services team went from strength to strength supporting people across Greater Manchester and Merseyside. The number of people helped increased by 32% to 2,965. The delivery of our First Step CVI (Certif icate of Visual Impairment) Service began in September 2021 and in its f irst 12 months supported 640 patientsto access the support they need. The digital access to Henshaws Knowledge Village continued to be a valuable resource for our Visually Impaired community. Views of our library of videos on topics such as 'How to use accessible cash machines" numbered over 150,000. Following its temporary closure during the pèndemic, our Arts and Crafts Centre returned to a normal service, welcoming 128 artmakers who took part in ¢)ver 19.000 sessions. 2021-22 saw the return of a number of our popular fundraising events. Our annual golf day raised 5.000, 4,359 drinks were served at the Beer Festival and 76 people donned their walking boots to tackle the Yorkshire 3 Peaks Our many successes are due to the dedication, commitment, experience and sheer hard work of our staff, We believe our workforce should reflect the people we support and the values we uphold, 17.4% ofour staff members have a disabilityand asan empl¢)yer we endeavour togo beyond the scope of the Equality Act whenever possible. But it is the feedback we get f rom the people we support that speaks most clearly. "Lucy is living her best life. College is the place where Lucy is Lucy ènd doesn't have a disability and is just loving life, enjoying experiences, the company of others. learning and having her needs met just like everyone else., 2021- 22 has been diff icult, but Henshaws has continued to transform its service delivery to reach as many people as possible with high quality support, information. and guidance. We anticipate a more stable year in 2022-23 and, vwith the dedication of our amazing team, Henshaws will continue to go beyond expectations. Alistair How - Chair 26 June 2023 Sally Daniels- Interirn CEO 26June2023 07 Specialist College Our Specialist College in Harrogate is a transformational place. Through our personalised approach to education. learning and care we empoweryoung people aged 16-25 living with a disability to progress and go beyond expectations. We empower our students to live the life they Wdnt, helping them to make f riends. learn to live more independently. find their voice when they thoughr they could not communicate, prepare them for employment. improve their health and well-being and enable them to achieve their aspirations in life. Students are supported iri their educational jOUTney by oui in-house clinical and therapy teams. They also benefit from our exiensive facilities which include a swimming and hydro-therapy pool. We also offer our innovative Next Steps and Pathways programmes which support students beyond the age of 25 or who no longer have an Education, Health & Care Plan IEHCPI. Durlng 2021-2021. . 76 5tuden15 were enrolled in our 8 Educational and Social Carè programme Our students were funded by 8 different local authoritie& 35 students had residential places. . We achieved 91% student attendanc• and 98YA retention Students achieved 96% 01 their educational largels . Qualification Achievement Rate for the year was 95% 25 English, Maths and ICT Functional Skills qualifications were gained . SO ASOAN PSD Entry l units were gained We carried out a curriculum review with the new curriculum implemented from September 2022 . Careers Intervlews were carried out with all Employability. Svpported Internship and some Independence students by the Education Development Trust Careers Adwsor . We worked with NATSPEC to develop their national training programme for developing the PMLD (Profound and Multiple Learning Disabilities) curriculum. Integratlon of technology Into 5e5si9ns with screens in all classrooms and ipads for all students. Our people To enable our students, learning we have a highly trained care team who are skilled in providing the day to day SUPF)Ort required. They work closely with our in-house clinical and therapy teams, as well as the education team, to ensure our students are safe and confident In acce551ng their education. We have a dedicated student liaison officer who co-ordinates enrichment activities provides well-being support and ensures students have a voice through regular student surveys and the Student Parliament. what we achieved •3,346 a15 hour5 of respite care provided to students hydrotherapy sessions delivered .800 dssisLive technology solutions implemented for our students hours of speecm and language support provided 4585 Aoo physio(herapy 5e5sioris delivered 1.1 studen¢ wellbeing sessions fx Collè9e has changèd all our liv•s, I can say that Ihe relief we feel knowing she is loved. cared for and appreciated for all her qualities is immense. As a famity entrusting 24-hour care for your young person who has a high level of needs is scary and requires a lot of trust- we have that in abundance. Lucy's story "Lucy is livin9 her best life. College is the place where Lucy is Lucy and doesn't have di￿bilItY and 15 Just lomng life enjoying experiences. the company of others. learning and having her needs met just like everyone else. She ha5 blossomed In 50 rnany way5 and had the experrise and knowledge of so many professionals. College offer5 5tudent5 not only the edueation, learning and care but a whole wealth of expertise and opportunities in one setting. The hydro p(K)l is a firm lavourile of Lucy's but ihe evening socials with her peers are a massive part of her life that wasn't acce551ble and missing. It may te a quiz. karaoke, dance orjust chilling and having a pamper with her friends. Lucy love5 every aspect of college lrfe and has been on a journey of self-discovery and has grown as a person. Lucy struggles with Separation anxiety and a big challenge was staying over night, which she now does. and Ènjoys the social aspects of the evÈning with her peer5. That's what Lucy has now, f riend5, a social life, a meaningful and fulfilled life full of choice and promise" Wrltt•n ty Lutys Mum . Lteann 09 Community Services Now known as the Sight Loss SupportTeam Henshaws Community Services suprK>rts visually impaired people to make informed choices about their future and take the next step in life.. whether thats towdrds employment, accessing new technology, or meetin9 new people in our social group& Our *rvi¢es operate acr055 Grèater Manchester and Merseyside Ifor children's and young people's servicesl respondin9 to the sp&cif ic needs of the communities in which we work, and partnering with keyorganisations across the locations to achieve better outcomes for people with sight loss. Our Information, Advice and Guidance IIAGI service provide5 valuable, sometimes life changing, impact for our Service user5. Over the past year we have been working Wlth even more se￿Ice user5 and providir)g support more frequently. Durlng 202112022: After accesslng our servl¢es: .965 people supported, inereasing the number of people we supwrted by 32%. 866 new service users welcomed. an increase of 33%. reported an improvement in their emotional wellbein9 7(￿ felt more independent and confident 84% know how to access information and SUPt)ort. compared to only Il% before 82% have a g¢)od network of support 86% know how to lead a safe and healthy lifestyle 15,000 IAG iriterventions delivered, 48% more th8n the year before. 3.251 emotional support interventions delivered. 513 people helped with a personal plan io support them on their sight 1055 journey. CVI (Certif icate of Vlsual Impairment) We began delivering thè First Step CVI Icèrtilicaie of Visual Impairmentl Service in September 2021, supporting everybody who receives a CVI from Manchester Royal Eye Hospital. The team provides Information, adwce and guidance to patiènts and make5 surè they are rèferred on to organisètions which can help to supwrt them. Before the CVI serv1¢• 47% patients had not accessed any other support After 6 months support f rom the CVI service The CVI Servi￿ is a partnership between ihe NHS and Henshawg This projeci is being managed in partnership with the Greater Manchester Combined Authority. ManchÈster Royal Eye Hospital. RNIB and Thomas Pocklington Trust 44% patients reported knowing where to get 5UPPOrt had been referied to other places for support according to their need& In the f irst 12 months of the CVI service 440 4,075 patients supported referrals made to access SUPF)Ort f rom keysermces io Digital Enablement Service Our Digital Enablement Service Is growing from st￿rn9th to stTength. Being part of the GrÈatÈr Manchoster Digital Inclusion Network has introduced new funding opporrunities We supported 1256 peoplÈ with digital Ènablement and increased digital intowentions by Y7% compared to th& year before. Partnered with the NHS to gather insight about the NHS app. As part of this work, we found that 33% of people with visual impairment did not have access to a smartphone or tablet with internet access. Enablement Service un ers an an t mean forthe Isoa Our Enablement Service5 currently cover 6 areas of Greater Manchester. continuing to provide a quality Service enabling people with sight loss and their families and carers to live independently and make informed choice& Counselling Our Counselling service continues to be a signifieant service and the feedback is extremely wsitive. Patient support Henshaws ECLOS (Eye Clinic Liaison Officer) support patients in Manchester Roy81 Eye Hospital IMREHI, one of the largest Eye hospitals in the UK. Bririgirig together practical and emotional support when patients need it most. We plan to expand our prèsence In MREH to enablè more patients than ever to accéss the services they rieed as early as possible. Henshaws is a key delivery partner of MREH, working hard to keep the patient offer accessible and supportive. 'It is èxtrèmely helpful to be able to work in tandem with the Henshaws Digit31 Tech Team staff ro find solutions to specific situations. The advicè and one-to- one teaching provided ha5 helped to support the dèlivery of some of our rehabilitation programmes Andrea Wllliams & Mavls Clarkè -Prof•ssional r•hab t•am Friendship matters group With the tireless support of our committed volunteers the Community Service5 Friendship Matters groups go from strength to strength. Over the last year 15 groups supported by over 60 committed volunreers have SLJpported ihousands of personal interventions, for memtX!rs old and new. Friendship Matters is a key element of Hernsh.3ws pathway and wouldn't be P055ible without the commitment of our volunteer Children & Young People Our CYP Service5 have provided chiklren and young people with a new skill thai Ihey couldn't do previously which has promoted indepèndtrnee in their day to day life. Using our fantastic I Can Do It f ramework we continue to deliver a range of services to our Childrèn and Young People with outstanding results. We doubled tho number of children who used our service year on year and saw a significant uplift in the attendance at our childron and young people activities. Knowledge Village & Digital Henshaws Knowledge Village is a free online ￿sourCe on our website ww.henshaws.org.uk where we share our extensive knowledge and expertise with those experiencing or working with sight loss and other disabilities. People with sight loss, their friends families and the professionals working with them can explore our information library of blogs. eBooks videos and downloads ￿ learn about everything from assistive technology to useful Life Hacks, Daily Living Tip5 and specific information for children and their families. The Knowledge Village enables us to deliver valuable Information to a diverse and remote population In a cost effective manner whilst still having the wealth of one to one support and expertise available through our First Step contact centre and the activities delivered in our local hubs. To visit our Knowledge Village go to vAw4.henshaww.ukiknowledge-vSlla9e Top Content thls year Included: 'How to put in eye drop5- tips for those with Glaucoma., 'How to use accessible cash machines,. NHS COVID-19 app - What is it? How does it work? 15 It 3ccessible for visually impaired users?. 'Fun activities for kids with a visual impairment., 'Using your TV through voice controll. 'What do tactile pavements tell us?, 'How to communicate with a visually impaired child.. '7 gift ideas for people with sight Ios5', 'Using zoom virtual meetings if you are visually impaired and Flecognising money if you have a visual impairment. All of these combined together had almosr 9￿000 view5. what we achleved 417, 134 4,107 users of the website uy Vilage Vicle05 417,808 451,044 engagements on social media Vide05 viewed 15,6S6 hoursof million impressions on social media and YouTube 12 Arts & crafts centre Henshaws Arts & Crafts Centre is a multi-activtycentre based in Knaresborough. The Centre provides a rarige of *rvices and activities for disabled people adults across the North Yorkshire area and beyond. The 5ervice5 cover skills based activities including, mosaics. papeT. printmaking, horticulture. jebvellery. pottery. woodwork. performing zrts, music, mult15ensory, and voluntoering opportunities including in the public cafe and shop. A new horticulture area was kindly funded by HSBC which included raised garden5 to improve access to our artmakers especially those who use a wheelch3ir. what we achieved 49,238 428 sessions, an Increase of 248% year on year anmakers In attendence 168% increase year on year Artmaker.22 festival Our Artmakér.22 festival in July Includèd guest speakers on disability and inclusivity in the arts. exhibitions of artmaker work around the centre and various workshops ruri and taught by artmakèrs to the general public. artmakers exhibited work 60 arimakers were involved in the Organi￿tiOn. preparation and running of the festival local schools and organi5ation5 took part in the take a chair installation, upcycling chairs on the theme of inclusion and diversity. 412 457 hours of work from corporate volunteers visitors attended our re-opening ¥heekend Stef i's sto "Stef i is so happy at Henshaws, she loves the artmakers and staff, it 15 like one big family. Thi5 means 50 much io her and we as parents have noticed she has become so much more confident, joining in with the activities, meeting new f riends and even enjoying the superb cafe at Ihe Arts and Crafts Centre. Our lives have become so much rnore Stable and calmer and we can now see a great future for StÈfi thanks to Henshaws" written by Stefi's parents - Rob & Belinda 13 Supporters We have been $0 impressed by the variety of ways people havÈ chosen to support Henshaws this year. Whether It was an off Ice bake sale, spon50ring one of our events or cycling those extra miles we are so grateful you chose to do it for Henshaws. Thanks to people fundraising for HenSha￿ our college 5tudent5 and service users can develop the skills and conf idence to enjoy full. exciting. indeper)dent lives with choice and control over their futures. OUR OJR I S l O how funds were raised 4,394 46 swimming pool lengths SW3m by an 8 year old supporter golfers hit the course at udding Park, faising £15.000 HAL OTM IIO•FvM&PAI'. SiIPPORT PEI ITH SIG OTHe VISIT HÈNSH*WS.051tJ.U 457 4,359 people took part in Henshaws lottèry drinks served ai our annual Beer Fèstival 457 tickets sold for our 8eer Festival 41 henshawsnr9.uk • I'm 90ing the extra I'msupporting S•gbtlo¢ othpy Al<# Fundraising complaints Henshaws fundraising team are a dedicated team of professionals committed to providing a high quality serwce to our donoTS and supporters and to raising funds to help blind, Visual￿ impaired and disabled people to live healthier, happier and more independent live If our fundraising falls below the standard expect, or you wish to make a formal complaint about our fundraising,you can do so by contacting any member of staff by e-mailin9 fundraising@henshaws.org.uk or by writing to us. We will acknowledge and make an initial response to ny complaints we receive within five working days and a full response within 30 days if your complaint requires further investigation. If you are not satisfied with the response you receive, we ask that you contact our Director of Fundraising. Stephen Tongue, in writing at the addre55 on page 53. If your complaint is about fundraising activities and we are unable to resolve it to your Satisfaction, you can raise it with the Fundraising Regulator by visiting their website, by telephoning 0300 999 3407, or by writing to Funcjraisirng Regulator, Eagle House. 167 City Road. London. ECIV IAW or e-mailing complaints@fundraisingregulator.org.uk .henshows ￿ky￿1 Vulnerable supporters HenSh￿ fundraising ream are *nsitive to $1gns that may indicate an individual is in vulnerable circumstances, and may ne&d support to make an informed decision about donating. If we reasonably believe an individual lacks the capaciiy to make ihar decision alone. then that donation wll not be taken, or will be returned. Safeguarding training is a mandatory requirement for the team and Hen5haws is registered with the Fundraising Regulator and we abide by the code of fundraising practice. We didn't receive any complaint5 about our fiJndrEi5ing in 2021-22 3nd WÈ did not employ any third party organisations to act on our behalf. We strive to Continuous￿ improve our fundraising and welcome any feedback from our donors and supporters. 15 Thankyou's We would like to thank the incredibly generous individuals compar)ies, community groups, and tfU5ts and foundations who supported our work in 2021-22. Because ofyou. we have been a￿e to support even more people living with disabilitiesto gain the skills and conficlenee they neecl to live as independently as t)ossible. Ou¥ support, advice and training enables people and their families to build Skills, develop confidence. help each other and look forward to a more rK)Sitive future. £201000I- Box Power 8ased in Bolion, Box Power is a philanthfOPiC not-lor-profit energy brokerage. Whèn Henshaws requested their help to fund our work in 8olton and Counselling service5, Corin Dalby one of the founders met with us to find out what life really was like for visually impaired people in the region. Little did we know that at a celebration event just few months later. founders Corin and Tricia Dalby had decided to double every donation they had made to chariiies. This meant Hernshaws. recèived an incredible £20,0001 What an amazing donation to help visually Impaired people in Bolton and we are very grateful for their support. JMW Solicitors LLP JMW Is a full-service law firm with headquarteTS in Manchesrer and off ices UK-wide. For more than 40years they have provided legal services to individuals, businesses and chariiie Over the course of our 12 month partnership JMW have volunteered at Hen5haws events, participated in our Yorkshire 3 Peaks Challenge, they are attending our Summer 8all and they have raised money through social events organised by the company itself, including their annual dinner. From the start JMW have taken a keen interest in ensuring theii services are accessible to visually impaired people and the medical negligence team received Msual Impairment Aw3rene55 Training IVIATI in 2021. A special thank you to Kelly Hindle and Kimberley Peet for leading the partnership. To date they have donated nearly 0.000 in total and we are really proud to bÈ working with such a dedicated and professional company. hi'n5hows 16 Staff and volunteers General HR H&nshaws many successes are due to the dedication. commitment and extensive experience of our staff. As a Mindful and Disability Confident Employer we are committed to supporting the wellbeing of all of our team members and supporting them to'go beyond expectations, on a daily basi Gender Pay Gap report We are proud to confirm that in the year 2021-2022 Henshaws had a 0% pay gap. This mearis that for every U a male employee earns a female employee also earns El. This is due ro our inclusive. fair and quantif iable job evaluation process and our commitment to supporting staff to maintain a good work life balance. Henshaws offers a range of flexible working patterns to all stsff. including term time onlyworking and compressed hours. Henshaws acknowledges that staff have resrx)nsibilities and commitments outside of work. We are committed to providing a flexible work environment to promote a work life balance where possible. to enable staff to livè a full and satisfying life. We also offer a rangè ol tsmily friendly Initiatives to support those with caring responsibilities including four paid days off per year for unforeseen emergency issue& Staff ing metrics In the year 2021-2022 our breakdown of staff was as follovKE'. Average Headcount- 332 Average FTE - 171 Avérage age of staff membèr- 42 Percentage of staff that are female- 71.% Average working hours per week- 3103 We are delighted to confirm that 12.7%of Henshaws staff have worked for the charity for 10 years or morè. We believe our workforce should represent the people we support and the v31ues we uphold. 17A% of our st8ff members have a disability and as an employer we endeavour to go beyond the scope of the equality act when possible. 17 FINANCIAL REVIEW 18 strategie review The Trustee Board undertakes a three year rolling strategy review each year. Eight kÈy devÈlopment objectives form the basis of the current strategy and they aro expressed through an annual update of the Business Plan. This details howthe strategywill be irnplemented and is presented to the Trustee Board each year along with the supwrting budgÈr. The Strategic Objectives for Hen$ha￿ are.. l. Provision of an exeellent *rvice. 2. Development of the appropriate services for the present and future agenda& 3. Development of financially stable service& 4.Proactive development of services. 5. Development of a responsive provision for clientele needs. 6. Development of a flexible planned response to changes in the external commercial environ- ment. 7. Development ofthe staff ing structure to ineludè improved recruitment, retention and train- ing of all staff. 8.Maximisation and developmént of resources for presènt and future opportunities. For the year 2021-2022 it continued to be diff icult to make progress on long term strategic goa15 due to the on-going pandemic. Ensuring the financial security of the charity was the priority during this time given the uncertainty around the financial situation and the ability to deliver services. The setting of objectives and monitoring of performance is conducted via a structure of busi- ness committee5 and the use ofdashboards scorecards and other key performance indicator> COVID-19 continued to have an impact on normal operations, staff absence throu9h sickness and isolation proved challenging. The financial eonsequences of the pandemic could have been catastrophic, had it not been for the excellent work of all our staff and the continued support of our lunders., both Iccal authority and generous donors allowed for all services to continue. At the time of WTlting this report COVID-19 is no longer having a si9nificant impact on the chari- ty. The Trustee Board is now keen to refocu5 from a survival mind-set which was required to get through the uncertainty of the pandemic to a more proactive one and looking forward to 2022- 23 with a Much more positive attitude. 19 legal & administrative information The Charity's name is Henshaws Society for Blind People and its registered charity number is 221888. It was founded in 1837 and registered as a charity on 14April 1980. The Charity is governed by the following trust documents.. Ill a Charity Commission Scheme dated 18 Septsmber 2000", lill re501utions of the members of the Charity dated 18 September 2012.. and liiil a Charity Commission Scheme dated 28 February 2013. The sole trustee 15 Henshaws Society for Blind People Trust￿ Lirnited, company nurnber 8313313. ThÈ company was incorporated on 29 NOVem￿r 2012 under the Companies Act 2006 as a private company limited by guarantee. It is governed by its Articles of A￿)Ciation, with its sole purpose being to aci as corporate trust* of the Charity. The Charity and Trustee's registered off ice together with details of the Trustee Board of Directors. Charity Senior Management Team and prinopal advisors are shown on page 53. Charitable objects and public benef it The Trustee has considered the question of public benefit and is satisfied that all of the Charity'5 charitable service delivery is for public benefit as defined by charity law (section 17 of the Charity Art 20111 and Charity Commission regulations. The objects of the Charity are.. lal the rèlief of people who are blind or visually impaired Iwhieh shall be the principal objectl., Ibl the relief of people with other di5abilities,' and Icl the relief of the families and carers of blind or visually impaired people and other people with dis8bilit1è5 principally, but not éxelusivèly, by providir)g servicés, care. facilitiés, support, advicè, education and training. Governance and management The Trustee acts for and in the name of rhe Charity. The Trustee retains ultimaie control over all aspects of the Charity's work and ensures that Its finaneial and legal responsibilities are properly fulfilled. The Trustees 8oard of Directors consisrs of up ro 20 Directors and comprises the Chair, Treasurer and other elected Directors. Trustee board members are recruited throvgh an open process of selection and are appointed for a period of threeyears, after which they may stand for re-election for a second term. The Charity has purchased indemnity insurance with regard io liability in respect of negligence, default and breach of duty or trust other than that caused by wilful or criminal actions. All board members give their time voluntarily and receive no benefils from the Charity lany expenses reclaimed are set out in note S 10 the accounts). New board members receive a Trustee handbook and undergo an induction process to brief them on their legal obligations and responsibilities. the work of the Chaiity and the sector in which ir oporates. The Trustee 8oard undertakes an Annual Skills Audit and members are asked to Identify any training needs which are addressed either by in-house training sessions or by encouraging them to attend appropriate exiernal training even There are five sub-committees with clear terms of referen￿ approved by the eoaid. These are the 8usines% Investment & Finance Committee. Flisk 8 Audit Committee. Governance Committee, People & Fieward Committee and the College Governing Board. There are also other sub-groups which aet in an advi50ry capacity to the Trustee Board. Day to day responsibility for the management of the Charity rests with the Chief Executive, who is directly accountable to the Trusi* Board. The Senior Management Team of the Charity is detailed in Note S and on page 53. Accountability and Authority levels are clearly defined In the Charity's Corporate Governance Documents. which are reviewed on an annual basis. 20 f inancial review {il Operational performance The Charity continues to provide high quality, essential serVI￿S to a range of people with visual impairment and other need& These *rvices are vital and the majority of the fees are paid by local authorities. Whilst there are advantages in terms of continuity of income, there are some diff iculties given rhe pressure on local authority finances. During the financizl year 2019-2020 the decision wa5 made that it was not financially sustainable to continue the Residential Housing service and Supported Living Services. The ￿le and transfer of these service took place towards the end of 2020. These changes have meant a tsll in revenues for Housing and Support Services from £l.103k in 2021 to Q83K in 2022, expenditure fell from £862k to £208k. The di5POS31 of the Residential Housing service also removed Ihe future financial commitment of adapting the houses io accommodate changing service user needs which ¥wuld not have been reflected in increased fee5. College income was static year on year at f7.628k, while costs of operating the college rose to £8.215k, an increase of £500k over the previous year resulting in a deficit of £587k for the financial year. fieflecting the investment in staff and other resources required to provide the quality of education and care our students need and deserve. Pressure on staff rates of pay remains high, as the cost of living crisis put pressure on employee wages and inflation has driven an increase in the national living wa9e. The main reasons for the deficit in this financial year were fewer student numbers as a result of the pandemic reducing income. Staff costs were also high due to over staff Ing for students who either started late or not at all. Better controls have now been put in place to avoid a repeat of this such as Kpls to monitor the income to Staff costs ratios. For the next financial year the college 15 expected to generate a surplu ncome at our Arts 8 Crafts Centre in theyear was £822k, while costs of£843k resulted in a deficit of £20k following another diff icult year for the cenire. The first half of the year continued to be impacted by the pandemic with significantty redvced art makers attending the workshops. During the second half of the year workshops started to return to pre-pandemic levels and income recovered well. For the next financial year the Aris & Crafts Centre is expected to generate a surplus.. Despite the challenges of operating in a pandemic our Community Services activity continued to deliver and develop its excellent and innovative service* Income decreased by £249k and expenditure increased by ￿0k over the previous year. The pandemic continued to limit fund raising events and activities, but our team identified new sources of funcling and increased donations and legacies income by £248k, whilst costs associated with fundraising increased by £97k. This improved performance could not have been achieved without the hard work of our team5 and the continued generosity of our donors. Thé team will continue to work hard to generate the funds our activities deserve. 21 f inancial review {ii) Investment performance The investment portfoli05 are managed by two investment management companies to maximise financial performance. Performance of these managers is monitored by the Business. Investment & Finance Committee throughout the year. At 31 August 2022 our investment FX)rtfolio stood at £3.27Sk12021.. £3,462kl of which £321k wer restricted funds. Investment income for the year was £T7k and there was a net reduction of £20lk in portfolio value. Balance sheet Total funds as at 31 August 2022 were G,749k12021.. r7,346kl. An increase in the SHPS defined benefit5 pension reserve of £642k12021". flookl was the biggest contribution to thi5 decline. The total outstanding pension liability is now E2.209k12021.' El.567kl. Cash at 8ank ancl in hand was U.125k while loans totalled U.8 million. of which £0.8 rnillion was secured against fixed assets and J.0 million was secured against investment funds. The small net cash inflow In the year reflects the progress the charity has made in improving its f inaneial management and cost control practiceg {iiil Financial outlook The trustees recognise the significant work carried out by management in delivering a satisfactory f inaneial performance In a diff icult year. The exeellent work carried out will continue. as will the development of the methods ofdelivery for our services. We aim to continue working collaboratively with our stakeholders for the benefit of our service users and to secure our financial viability. Demand for our services remains strong and we aim to provide these cost effectivelywhi15t maintaining Quality and being paid appropriately. 22 f inancial review Risk management The Trustee has overall responsibility for establishing and maintaining the Charity's System of internal control and for reviewing its effectivenes& The system of internal control is designed to manage key risk5 and to provide reasonable assurance that planned business objective5 and outcomes are achieved. It also exists to 9ive reasonable assurance aix)ut the preparation and reliability of financial and operational information and the safeguarding of the Charity's assets and Interests. In meeting its responsibilities, the Trustee Board adopts a risk-based approach to internal controls and all major risks that rhe Charity is exposed ro have been identified. reviewed and procedures have been established to manage those risks. Processes in place regarding risk management and internal conirol include the following.. A comprehensive risk management framework, which consist5 of a top-down risk review by the Trustee Board via the Flisk & Audit Committee and a bottom up review by individual functions. The fiisk & Audit Committee receives an annual report on the effertiveness of controls from the external Auditor. The principal risks and uncertainties to which the Charity is exp¢)sed are.. Safeguarding vulnerable service users. Robust systems are in place to ensuie that vulnerable people using our services are in a safe environment. Health & safety. We urndertake to give our staff and service users a sale working environment. This includes the provision of quality training as well as the development of a culture of risk awarènèss and managemènt. Income generation. The Charity is faced with a challenging economic climate as much of its income is linked to local auihority provision. which is iiself under increasing financial pressures. Income levels are coniinually monitored and there is ever increasing focus on maintaining ènd erihancing sources of income. Cash flow r15k. The Trustee Board ha5 undertaken to invèst in front liné sérvicè dévèlopmènt across the Chèrity. This means rhat cash flow management has become increasingly important and measures are taken. including enhanced bud9etary and cost controls as well as the arrangernent of overdraft and loan facilities, to ensurè suff icient funds are available to meet demands. COVID-19 risk. The Charity has implèmented measures to mitigate the risk posed to service users. staff and the Charity's finances. These measures have been developed from advice regardir)g best practice from Government and other ageneies. Fundraising management Our furidrai51ng strategy and activities reflect OUI OTganisational values and is reviewed regularly to ensure it is meeting the needs of the organisation and using resources eff iciently and ethically for sustainable income growth. Our relationship with our supporters 15 very important to us and we monitoi fee(Iback and take complaints seriously. We occasionally work with professonal fundraisers and commercial organisation& All contract5 nd partnerships are subject to due diligence and close management. External partners receive regular training and shadowing VI￿[S from the fundraising team. Henshaws is a member of rhe Fundraising Flegulalor and follow5 Ihe Fundraising C(Kle of Practice. We also take our responsibilities to proiect vulnerable people seriously and follow the Insiiiure of Fundraising guidance on treating donors fairly. and make sure all our agency partners are ftjlly aware of our policies. 23 financial review Treasury management and investment powers and policy Under the Charity Scheme. the Trustee may make any kind of investment that it could make if it were absolutely entitled to the assets of the Charity. subject to the exercise of a dLJty of care and having regard to the approved standard investmeni eriieria. Within the powèrs of delegation. the Trustee Board may also authorise one or more persons to exercise all or any of their delegable functions 35 their agent. Delegable functions include any function relating to the investment of assets belonging to the Charity. Treasury management is defined as the management of the Charity's cash flow5. Its borrowing and its Investments, the management of the associated risks and the pursuit of the optimum performance or return cornsistent with those risks. There are four principles of treasury management that drwe the polity, Compliance- with statute. regulation and best practice Security- of financial assets Liquidity- adequate to meet financial obligations Effectiveness and eff Iciency- In the use of finaneial resources The Charity has recognised that its cash and rese￿eS should be all¢xated in a manner consistent with these principlès. In deciding where to invest Surplus funds the Charity's objective is to get a reasonable return at an acceptable level of risk. The balance be1V￿n ca￿tal growth and income will be determined in accordance with the needs of the Charity usin9 a range of investments that are permitted for charity holdings. The Charity has split its portfolio of investmènts betwèèn investmènt managers who manage the funds on a discretionary basis in accordance with investment guidelines that are reviewed annually by the Business Investment & Finance Committee. Should liquid funds be available, the Charity operates an approved list of deposit takers for cash not immediately required. Funds set aside in investments are viewed as long-term holdings and over time it Is expected that 8 rate of Teturn above inflation will be achieved on these asset Reserves policy The Charity Commission use the term reserves to describe that part of a charitys income funds that is freely available for its general lunrestrictedl purposes.'Reserves" are therefore the resources the charity has or can make available to spend, for any or all of the charity's purposes. once it has met its commitmentg More specifically they define"reserves" as income which become5 available to the charity and Is to be expended at the Trustees discretion in furtherance of any of the charity's objects (sometimes referred to as"general purpose" income),, but which is not yet spent. committed. desi9nated or invested in fixed assets. This definition of reserves might more commonly be referred to as free reserves. When the Trustee Board reviewed the Chariws reserves wliey and level of re*rve5. they concluded thai it was not appropriaie to set iheir free reserves level purely by reference to period of time of ongoing operation5, as some 90% of our income come5 from contracted fees and grants from a wide spread of siatutory funders which to some extent mitigate our exposure. The Trustee Board acknowledged. however. that there was a more significant degree of uncertainty about the remaining income. which comes mainlyf rom fundraising and time limited funoling, and that 50rne sources of income are especially vulnerable to change5 in government legislation. wlicies and prioritieg 24 f inancial review Reserves policy- continued In reviewing the reserves rolicy the Trustee Board aims to ensure that the Charity is able to continue to provide all services for a period of at least twelve month5. in Ihe event of a significant proportion of income not being realised. All sources of income were reviewed and individual risk factors assigned to take account of the followng factors.. The source of the Income The predictability of the income based on historical information and experience The certainty of anticipated increases in fee levels The size of the area of operation le.g. bed numbers in a residential schemel Demand for the service and the nature of that demand (ongoing. periodic, annual etc.) Any known or anticipated changes in funding legislation In addition. the Trustee 8oard has concluded that the Charityshould also keep available as free re5erve5 amounts relating to a deficit for the year ahead. In applying the risk factors shown above to the Charity's anticipated income, the Trustee Board have Concluded that a level of free reserves of a.0 million12021". a.oml would provide them with the safeguards they need to be able to 9varantee continuity of services durin9 periods of instability. uncertainty or change. As at 31 Au9USt 2022 under the Charitycommissions guidan￿. the free reserves are calculated at 1£0.2millionl12021.. £0.8millionl. This Position is a significant improvement over previous year5 and reflects the hard work the charity has put in to managing its finances. Remuneration policy The People and Rewafd Committeè ¢)versee the remuneraiion and benefits structure for staff, including key management personnel. and ensvre that the pay framework operates within the required remit. Pay scales are monitored regularly with market comparators. The Committee considers feedback from the annual staff survey. supports HR processes and considers any major proposed chan9es to HR t)olicies. Staff liaison The Henshaws Employeè Forum IHEFI is usÈd to discuss employment matter> working practice5 and strategic issues of employment with staff and to share business information. Recommenclations from the HEF are considered by the Chariiy's Senior Management Team and are implemented when appropriate and beneficial. Going concern The Trustee Board has reviewed the Charitys financial position taking into account the levels of re5erve5, amounts receivable. the annual and financial plans. iogefher with il5 5y5tems of financial risk managemeni. In addilion ihe Board has considered the impact of COVIO-19. the net current liabilities of £0.2mil12021'. assets of £O.Imillionl in considering the appropriateness of the basis. The Board believes that the cash balances along with the borrowing facilities are adequate to meet its ongoing f Inancial need5 and that the Charity is able lo manage operalional and financial risk satisfactorily. Accordingly. they have reasonable expectation that suff icient resources are available to continue In operational existence and therefore continue to adopt the going con￿r￿ ba515 of accounting in preparing rhe annual financial statemenrg Summary The Charity'5 achievements thi5year have only been kX)55ik￿e through the gene1051ty of our dornoi% funders. volunteers supporters and ihÈ dedication and commitmeni of Henshaws, management and staff. Thank you very much to everyone who 5UPPOrted us this year Sally Btncè. Vtcè Chalr 26 June 2023 Nlkki Bi p- ChaSr of BIFC 26June 2023 25 statement of responsibilities of the trustee The Trustee is responsible for preparing the Trustee's Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Stand3rds (United Kingdom Generally Accepted Accounting Prarticel. Charity law requires the Trustee to prepare financial statements for each financial year, which give 8 true and fair wew of the state of affairs of the Charity and ofthe incoming resources and application of resources of the Charity for that period. In preparing Ihose f inaneial statements the Trustee's Board of Directors is required to.. lal Select suitable accounting policies and then apply them eon$15tently." Ibl Observe the methods and principles in the Charities SORP IFRS 1021., Icl Make judgements and estimates that are reasonable and prudent., Idl State whether applicable accounting Standards have been followed subject to any material departures disclosed and explained in the financial statements lel Prepare the financial statements on the 90in9 concern basis unless it is inappropriate to assume that the Charity will continue in busine The Trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable It to ensure that the financial statements comply with the Charities Act 2011. the Charity (Accounts and Reports) egulations 2008, the provisions of the Trust Deeds and with kcounting & Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial fieporting Standard applicable in the UK and Flepublic of Ireland IFFIS 1021 leffective l January 20191 and the Financial Reporting Standard applicablè in the UK and the Flepublic of Ireland IFRS 1021. The Trustee is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of f raud or other irregularities. The Board of Directors is responsible for the maintenance and integrity of the charity'5 website. Legislation in the United Kingdom governing ihe preparation and dissemination of financial starements may differ legislarion in orher jurisdictions. Approvèd by the Trustèè Board of Directors and signed on its behalf by Allstair H¢>w - Chalr 26June2023 Sally B•ne• - Vk• Ch•lr 26 June 2023 26 independent Auditorls Report to the trustee of Henshaws Society for Blind People Opinion We have audited the financial statements of Henshaws kniety for Blind people.the charity, for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet. the Statement of Cash Flows and the notes to the financial statement% includin9 a summary of significant accounting policies in note l. The financial reporting f ramework 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 Accounfing Pracficel. In our opinion, the financial staternents.. give a true and fair view of the state of the charitys affairs as at 31 August 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 Przctice., znd have been prepèred in accordance with the requirement5 of the Charities Act 2011. Basis for opinion We conducted our audit In accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the f inancial 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 accordaneè with these r￿UIreMents. We bèliève that the audit evidencè we have obtained is suff icient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial st8tements, we have concluded that the trustee'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 r&13ting 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 ihe responsibilities of the trustee with respect to going concern are deseribed in the relevant sections of this rèport. Other information The other information comprises the infoimation Included in the annual report, other than the financi81 statements and our auditor's report thereon. The trustee is responsible for the other information. Our opinion on the financial 5taremenis does not cover rhe other Information and, we do noi express any form of assurance conclusion thereon. In connection with our audit of the f inancial ￿aternents, our responsibility1S to read the other information and. in doing so. consider whether ihe oiher information is marerially inconsistent with the f Inancial statements or our knowledge obtained in the audit or otherwise appear5 to be materially misstated. If we identify such material inconsistencies or apparent material misstatemer)ts. we are required to determine whether there is a material misstatement in th financi315tatements OT a fTiaterial mi5Statement of the other information. If. based on the work we havo performed. we conclude that there is a material misststement of this other information. we are required to report that fact. We have nothing to reporr in this regard. 27 independent Auditorls Report to the trustee of Henshaws Society for Blind People Matters on which we are required to report by exception We have nothing ¢0 report in respect of the following Mai￿r$ in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the information given in the trustees report is inconsistent in any material respect with the f inancial statements., or suff icient accounting records have not been kept., or the financial statements are not in agreement with the accounting records or we have not received all the information and explanations we require for our audit. Responsibilities of the trustee As ÈxplainÈd more fully in the Statemerit of rÈsponsibilities of the trustee set out on pa9e 26. the trustee 15 respon51ble for the preparation of the financial statements and for being ￿tIsfied that they give a true and f3ir view, and for such internal control as the trustee determines 15 necessary to eriable the preparation of f inancial statements that are free from material misstatement. whether due to f raud or error. In preparing the financial statements, the trustee is responsible for assessing the charity's ability to continue as a going eoncerr), d15closing, as applicablè. mattèrs related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations or has no realistic alternative but to do s Auditor's responsibilities for the audit of the f inancial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements ès a whole are free from material misstatement. whether due to fraud or error, and to issue an auditor s report that includes our opinion. fieasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted In accordance with IYS IUKI wll 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 ol users taken on the ba515 of these f Inaneial statements. Irregularities, including fraud. are instance50f non-compliance with law5 and regulations. We design procedures in line with our responsibilities. outlined above. to detect material misstatements irn respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities ir)cluding f raud is detailed below.. The extent to which the audit was considered capable of detecting irregularities including f raud Our approach to identifying and assessing the risks of material mi5Statement in respect of irregularities, including fraud and non-compliance with la￿ and Tegulations. was as follows". the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identbfy or iecognise non-compliance with applicable laws and regulations. we identified the laws and regulations applicablè to the charity through discussions with the truste and other management, and f rom our krn￿edge and experieF)ce of the charity sector. we focused on specific laws and regulations which we considered may have a direct material effect on the financial Statements or the operations of the charity, including the Charities Act 2011, taxation legislation. data protection. anti-bribery. employmeni. environmenial and health and safety legislation. we assèssed the extent of compliance with the la￿ and regulations identified above through making enquiries of management and inspecting legal correspondence. idèntified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of r)on-compliance throughout the audit. 28 independent Auditorls Report to the trustee of Henshaws Society for Blind People The extent to which the audit was considered capable of detecting irregularities including f raud continued We asse55ed the susceptibility of the charitys financial statements to materi31 mi55tatement, including obtaining an understandirig of how fraud might occur. by". making eriquiries of management as to where they considered there wa5 5U5ceptibility to fraud, their knowledge of actual. suspected and alleged fraud. considering the Internal controls in place to mitigate risks of fraud and non-compliance w1th laws and regulations. To address the risk of fraud through managemeni bias and override ofcontrols we". performed £nalytieal pr(xedures on income and ￿larieS to identify any unusual or unexpected relationships. testèd journal entries to identify unusual transaction assessed whether judgements and assumptions made in determining the accounting estimates Set out in note I were indicative of rM)tential bias. investigated the rationale behind significant or unusual transactions. There are inherent limitations in ovr audit procedures described above. The more removed that law5 and regulations are from financial transactions. the less likely it is that we would become aware of non- compliance. Auditing Standards also limit the audit procedures required to identify non-compliance with law5 and regulation5 to enquiry of the trustee and other management and the inspection of regulatory and legal correspondence. if any. Material misstatements that arise duè to fraud can be harder to detect than those that arise f rom error as they may involve deliberate concealment or collusion A further description of our responsibilities for the audit of the financial statements is located on the Financi81 Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's rèport. Use of our report This report is made solelyto the charity's trustee. as a t￿y, in accordance with Part 4 of the Charities (Accounts and Reports) Flegulations 2008. Our audit work has been vndertaken so that we might state to the ch3rity'5 trustee those matters wè 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 accepr or assume responsibility to anyone other th8n the charity and the charitys trusiee as a body, for our audii work, for this report, or for the opinions we have formed. 60￿¢j (kd CIA￿4 29 June 2023 Beever and Struthers 8eever and Struthers Statutory Auditor One Expre5S l George Leigh Street Manchester M4 5DL 29 statement of f inancial activities for the year ended 31 August 2022 Note Unrestricted Restricted Total funds fund5 fund5 2022 rooo Total funds 2021 £'ooo Incom¢ from: Charitable actI￿tle&. Education & training services Housing & supporr services Community services 451 8,084 1.103 497 285 120 206 8,942 Oonatlon5 and le9acI Other tradln9 attl￿tIeS Investm•nts 352 893 io 79 Totsl In￿Th• 10,726 Éxp•ndltur• or c￿rItabl* actI￿tI•& Education & training serwce5 Housing & support 5ervice$ Community services 9.116 8,490 208 862 819 *709 10,155 10,1 361 Rèlilng fun other 48 Total •xpendftur• 10204 10,580 N•1 I•xpgndltur•l I ￿n￿rn9 bgfor• g•lns on In¥Ystm•nts 13751 P401 P401 410 Tr4n&f•rs between fun419 Galns on r•valuatlon olllx4<1 asws Aetuarlal Ilossesl 19alns In ress)Èet ￿ J*b￿[l￿ Khem•s Galnshoss•s on offlx•d ass•ts 26 .1061 0,1061 393 Not l•xp•ndStur•l I Incom• - mow•m•nt Infunds 1401 0,59 975 R•con¢lllatlon of funds Tot31 fur)dg t)roughl forward 40T 945 6,yn Total fvnds ¢arrl•d forward 905 4749 7,346 All gains and losses recognised In the year are included in the Statement of Financial Activities. The notes on page5 33 to $3 forrTI an integral part of the financial 5talemenl All income and expenditure relates to continuing operations. 30 balance sheet at 31 August 2022 Not• Unrnstrlctod I1•strIc￿d Total funds Total funcls funds 2022 2021 eooo £'ooo eooo xed as5et5 Tangible fixed assets Investments 1954 321 J275 3,462 Total fIX￿ ￿*èts 8.818 9MS Curr•nt ass•ts Debtors 939 Cash at b3nk and in hand 104 1.387 1.702 1,806 2526 Uabllltl•6 Creditors.. Amounts due within one ygar N•t ¢urrgnt Ill•bllItl￿Jl•￿1$ ooji ooji 12,1991 09 Tot*1 a##•t# l•M turrtrnt Il•bllltl•s 905 8m2 9,662 Cr• n•t c•¥h flov•3 Irom op•r•tlng •¢tMtI Nei mgvemenr in funds P,5971 240 975 (Galnsl on Invesrments ICains1 on property revaluation5 Actuarial losses I Igainsl irn respect of pension schemes Defined benefit pension C￿t5 lesscontiibuiions payable Depreciation Loss on disposal of tangible fixed assets Dividends. inieresr and Fents Feceivable frorn invesrments Interest payable Decrease I Ilncreasel In debtors IDecreasel In creditors 13831 13931 13731 546 148 22 1761 13321 12021 0771 Analysls of ￿$h equlvaleiits Cash ai bank and in hand Bank overdraft &facilities y,0001 n,0001 125 Th& notes on page5 33 to 53 form an integral part of the financial statements. 32 notes to the f inancial statements for the year ended 31 August 2022 l Accounting policies The principal policies of the Charity as a public benefit entity as defined by charity law and Charity Commission regulations are a5 foll a) Basis of accounting The financial statements are prepared on a going concern basis under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. The financial statements have been prepared In aeeordantr with Aceounting and Reporting by Charities.. StatÈment of ￿￿0Mmended Practice applicable to charities prèparing their accounts in accord3nce with the Financial Fleporting Standard applicable In the UK and Republic of Ireland IFFIS 1021 (effective I January 20191- (Charities SORP IFRS 10211 and the Financial Reporting Standard applicable in the UK and Flepublic of Ireland IFRS 1021. They also meet the requirements of the Charities Act 2011 and UK Generally Accepted Accounting Practice. b) Going Concern The financial statements have been prepared on the going concern basis which is considered to be appropriate in the context of the Charitys ability to meet its obligations as they fall due. in the period of twelve months following the date of approval ol Ihese financial 5taiement5. In this consideration, the Charity's asset position. the level and profile of its liabilities and the Charity's ability to determine the level of charitable services delivered, have been taken into account. The Trustee Board has considered the impact that Covid-19 conrinued to have on staff sickness and income during the year and the resulting net expenditure. However, there wa5 a decline in this imp8Ct during the second half of the year. and in 2022123. As a result of this improvement, and continued demand for our services, the Board believes that the 90ing concern basis of accountin9 is appropriate in preparing the annual financial statemènts c) Tangible Fixed a55ets and depreciation il All expenclifure above £l,OW for the acquisilion. enhèncemenr. production and installation of f ixed assets and all fixed assets received by way of donations are capitalised. ill Tangible fixed assets. other than residential properties are stated in the balance sheet at cost less depreciation and impairment, or at estimated value at the date of donation less depreciation in respect of donated assets. iiil Residential properties are recorded in the balance sheet at open market value5, Wlth their values being reviewed on an annual basig Any changes in ihe values of the properties are reflected in the Statement of Financial Activities in Ihe year they arise. iv) Depreciation is calculated to write off the cost or valuation of tangible assets over their estimated useful live5 on a straight line basis at the following rat Non Flesidential Properties 4% per annum Pesidential Properties 2% per annum Motor Vehicles 25% per annum Computer Equipment 33.33% per annum FurniturÈ, Fixtures & Firtings 10%- 20% pÈr annum vl Assets in the course of construction are srated at cost. They ale not depreciated until complete. 33 notes to the f inancial statements for the year ended 31 August 2022 d) Investments Long term investments in stocks, shares and related prcxlucts are stated at their market value at the Balance Sheet date as 3 re350nable measure of fair value. Unrealised gains and 1055es arising on the revaluation of investments are. rcoerher with the realised gains and losses arising on the sale of investments. shown in the notes to the Statement of Financial Activities as net gains/iios*sl on investments. Listed investments may fluetuaie in value and are subject to a risk profile set and reviewed by the Trustee Board. e) Taxation The Chafity benefits from vaTiOUS exemptions from taxation afforded by legislation and is, moreover, not liable to corporation tax on income or gains falling within those exemption Flecovery is made of tax deducted from income and from receipts under Gift Aid. The Charity is also able to partially recover some VAT expenditure. Expenditure subject to VAT that is not recoverable is recorded in the accounts inclusive of the VAT. f) Stock Stock is slated at the lower of cost and net realisable value on a first in first out basis. g} Debtors Debtors include amounts owed to the Charity for the provision of goods or serwces or amount5 the Charity has paid in advance for the g¢)ods or services It will receive. Debtors are stated in the balance sheet at the amount which is considered to be recoverable within 12 months from the b31ance Sheet date. h) Creditors A liability Is recogriised for the amount that the Charity anticipaies it will pay to settle the debt or the amount it has received as an advance payment for goods or services it must provide, For creditors due for settlement in more than one year. the amount is discounted for the time value of money where material. i) Financial instruments The Charity only has f Inaneial assets and f Inaneial liabilities of a kind that qualify as basic financial instruments. orher than investmeniswhich are stated ai fair value as noted above in Idl these are Initially recognised at transaction value and may be subsequently measured at their settlement value. j) Income Income represents.. il income from appeals and fun4Jraising. including donaiions and legacies ill fee5 and other Income from education and training 5erwces iiil fees and other income from housing and support services ivl grants and other income from community services All income is recognised in the SOFA when the Charity has entitlement to the funds, any performance conditions attached io the income have been met. it is probable thai the income will be received and amounts can be measured reliably. Where terms and conditions have not beern met or uneertairnty exists as to whether they can btr mer then the income is not recognised but deferred as a liability until it is probable Ihat the terms or conditions imposed can be met. 34 notes to the f inancial statements for the year ended 31 August 2022 j) Income continued Investment income is recognised when the Charitys entitlement is irreversible. Legacies are deemed receivable when Sufficient Information has been received to enable the Charity to reliably measure the amount receivable and when receipt is probable_ Gifts-in-kind of material goods or professional services are. however. recognised as income and expenditure (via depreciation il Capital goc*ls or services) and any associated conditions noted. k) Expenditure Expenditure has been charged on the accruals basis and such charges include value added tax where appropriate. Any redundancy and termination costs are recognised when they are contractually due. l) Cost of charitable activities Costs of charitable activities comprise all cosls identified as wholtyor mainty attributable to achieving the charitable objeets of the Charity. These costs Include staff costs. wholly or mainly attributable support costs. an apportionment ofgeneral overheads and governance costs. The 3pportionment Is based on several factors Including numbers of staff. levels of income and direct cost and complexity of the actiwty. m) Costs of raising funds Fundraising costs include the salaries and overheads of the staff who directly undertake fundraising activities, plus othèr direct costs and allocatèd support and governaneè costs. n) Governance and sUPPOrt costs Governance and support costs Include the direct costs of administering the Charity. Support costs represent the central services provided, including the cosi of mainiaining facilities shared by all or most of the Charity. Support Service costs consists olthe following.. Management, Finance. Human Resources. Property Services, IT, Mainternanee, Disability Support and Marketing. These costs are allocated our to service areas. on an agreed basis of apporrionment relating to iotal income and expenditure, payroll costs, use of IT and floor space occupied, depending on relevance to the activity. They are included In the eharitable activities costs Tewrted in the Statement of Financial Acrivities. o} Pensions Tho Charity coniributes to various pension schemes. The assets of each scheme are held separately from those of the Charity In independently administered funds. D•tin•d b•n•fit xh•m•&' The contributes to the Teachers Pension Scheme at the advised rates. As it is not possible to separately Identify the assets and liabilitie5 of the Teacher5 Pension Scheme. It 15 accounted for as if it were a defined contribution scheme. The contributions to the scheme are charged to the SOFA as they occur. The Charity participates in the Social Housing Pension Scheme ISHPSI, a defined benefit multi- employer pension scheme administered byTPT Retirement Solutions ITPD to which the future accrual was closed at March 2013. Scheme assers are measured ai a tsir value. Scheme liabilities are measured on an actUaTial basis Using the projected unit credit method and are discounted at 8ppropriate high qualitycorporate bond rate& The net surplus or def icit, adjusted for deferred tax, 15 presented Separately from other net assets on the balance sheet. A net surplus is recognised onlyto the extent that ir is recoverable by the Charity_ Interest on the scheme liabilities and the expected return on scheme assets are included net in expenditure. Re-measuremÈnts are reported in other comprehensive income_ 35 notes to the f inancial statements for the year ended 31 August 2022 o) Pensions continued Further disclosures in this area are Included in note 17. Defined contribution schemes Contributions to these scheme5 are charged to the Statement of Financial ActiMtie5 as they are paid and allocated in line with individual staff msts of employment. p) Leases Tangible fixed assets held under finance leases and the related lease obligation5 are recorded in the Balance Sheet at the fair value ol the leased asset at the inception of the lease. The exces*s of the lease p8yments over the recorded lease obligations are treated as finance charges which re amortised over each lease term to give a constant rate of charge in the remaining balance of the obligations Rentals payable under operating leases are included in total expenditure in annual instalments over the period of the leases. q) Fund accounting Fund accounting distinguishes between twrj primaryclasses of fvnd.. those that are unrestricted in their use, whieh Can be spènt for any purposes of a charity, and those that are restricted in use, which can only be used for a specific charitable purpose. Restricted funds are either lil endowmeni funds or lill other restricted fund& Endowments are either permanent or expendable. Endowments and other restricted funds are disclosed separately in the financial statements and are subject to specific restrictions imposed bythe donor or by the nature of the appeal or grant. The restricted funds comprise of assets ihat have been given to the Charity subject to certain conditions. They include cash donations and legacies and investments given for a specific purpose, and buildings that have been funded from specific bequests until such buildings are complete then they are transferred to unrestricted funds. The Trustee Board may exercise its discretion to set aside part of an unrestricted fund for designatecl purposes. Designated funds may also be used where donors have expressed a preference without imposin9 a rrust. The funds so desi9naied remain unrestricted since ihe Trustee can remove the designation at any timè. r) Accounting judgements and assumptions Certain judgements ènd assumptions are made in the preparation of the financial statements The matiers considered atove. particularly depreciaiion raies and asset values as well as the recognition of income and liabilities, are considered to be the rnost important in understanding thejudgements rhat are involved in PTeparin9 Ihe financial statements and the uncertainties that could impact the amounts reported. 36 notes to the financial statements for the year ended 31 August 2022 2 Income Tot41 Total Ixher year ended year ended 2022 31 Aug 2022 31 Aug 2021 É'ooo £'ooo Fees Grants 2022 Legacies 2022 Unrestricted funds Charitable activitie& Education & training seTvices Housing & supporr services Community servires 8.167 215 8.084 285 1.103 142 47 120 8.449 262 143 8054 9329 Donation5 8 legacies Other trading activities Investments 255 774 113 113 Other 8.449 517 10,282 A•#trletsd funds Charltablè actlvltl•&' Community services Doriaiion5 and legacies Investments 315 13 319 10 io 10 430 Endowm•nt fundi Total Incom• 8,449 276 1i273 10,726 37 notes to the f inancial statements for the year ended 31 August 2022 3 Expenditure Analysis of expenditure other Total Tot31 support year ended year ended cost5 31 Aug 2022 31 Aug 2021 eooo E'ooo É'ooo Staff Other direct t*redatlon Gwernance charge5 Unrtstrlct•d funds Charltablè aetlvltl•&' Education & training service5 Housing & supporr service5 Community services &66i 449 19 1255 51 %058 206 8,325 860 59 339 465 499 6.0(K) sis 20 1.3S9 709 9.684 361 Oonatlom *nd l•y•cS•s other tradlng actlvltl•s Investrn•nts 17 16 Others Is Tot•1 unr•rtrlct•¢l •xp•ndltur• &287 1,948 21 1,424 1031)4 10,093 A•#trlct•¢l fund4 Charltabl• actlvltl•&' Education & training serwce5 Housing & support services Community services 14 166 320 488 Oonatlom and l•yc other Ttxal r•rtrl¢t•d *xp•nd￿Ufe 488 Endowmènt funds Investm•nts Ttxal endowment •xp•ndSwr• Total expendlture 6.619 2,014 1.470 1￿648 iO.S81 R•allocatlon pgr not• 3a 4ZI 11.4691 Expendlture after r•allocatlon of support 7.661 2.441 i0.58i 38 notes to the f inancial statements for the year ended 31 August 2022 3(a) Analysis of support costs Edueatian & trah)In9 Hou%in9 & Supptsrt Commun*y F￿ndrakIrt9 £'ooD Total É'ooo (￿00 £￿00 (￿00 192 io 225 urnan resources 215 19 245 Informaiitsn iechnology Marketing Manigement Propertyservices M3intenance 232 37 284 14 200 232 19 12 266 67 41 108 142 142 Unr•5trl¢t•d ￿nE￿¢￿11¢￿¥sty 1255 51 99 65 1,47Q 3(b) Analysis of governance costs Totsl y••r•nd•d ywrended 31 Au9 2022 31 Aug 2021 I'ooo E'OOO L*941 & prof#$ion•l 20 28 Tot419o¥•rnan¢• ¢￿ts 29 39 notes to the f inancial statements for the year ended 31 August 2022 4(a) Net expenditure This is stated after charging. Total Total year ended year ended 31 Aug 2022 31 Aug 2021 eooo E'ooo External Auditors, remuneration {excludin9 VAn: Audil fees Other financial services 18 17 20 24 Depreciation Operating leases Gainliiossl on disposal of fixed assets 546 138 D51 4(b) Operating Leases The Charity holds properties and office equipment under non cancellable operatin9 leases. At 31 August 2022 the Charity had total future minimum lease paymenis uThJer these leases as follows,. 2022 £'ooo 2021 £'ooo Land and bulldlngs Leases expiring not later than one year Leases expiring later than one year and not later than fiveyears Leases expirin9 later than fiveyears 98 385 88 955 923 1,416 1,118 40 notes to the f inancial statements for the year ended 31 August 2022 S Staff costs and employee benef its Ttstal Total year ended Year ended 31 Aug 2022 31 Aug 2021 £'ooo £'ooo Wages and Salaries Social security costs Defined contribution pension scheme costs Defined benef It pension scheme costs Other benefits 6.823 6,839 534 158 160 20 Redundancy and severance pay 7.661 7,618 2022 2021 The average number of employees and supply workers during the year." In addition to the above employment C05t5 the Charity utilised the 5ervieès of employrnent agency staff to support the delivery of essential services to beneficiaries within Edueation & Training and Housing & Support. The increase in agency costs was nece5Sitated by diff iculties in recruiting staff during the year to support increased service delivery. 381 2022 £￿00 2021 £'ooo Agency staff costs.. Neither the Board of Directors nor pèrsons connected with thè rècèived any rémunèration or othér benefits. One Board member was reimbursed expenses for volunteering In another role. See Note 18 Related Parties. 549 375 2022 £'ooo 2021 £'ooo Key management personnel: Emoluments for thar group of employees Employers National Insurance contributions Employers pension contributions 305 38 421 50 15 31 502 Key management personnel are def ined as the members of the Senior Management Team.. Chief Executive. Director of Community Services College Principal. Director of Fundraisin9. Director of Finance & lesources. The number ofemployees whose emoluments exceeded £60.OJO wa 2022 2021 £60,001- £70,000 00,ooi - oio.000 £1l0,001- £120,WO 41 notes to the f inancial statements for the year ended 31 August 2022 6 Tangible f ixed assets Land and buildings Non Residential residential htyjsing housing Valuation fixture4 fittin95 plant & Assets urbder ¥ehicle5 construction Total eooo eooo At I September 2021 Additions 10.418 3372 i&65S 196 Disposals Ftevaluation 13251 69 1381 15631 At 51 Au9USt 2022 1&557 Depre¢latlon Ai l Seplember 2021 Char9e foryear Di5posa15 Revaluation 7,434 3.148 10,582 525 1521 At 31 Au9UIt 2022 &207 11,014 N•t Book Valu• •t 31 Augu•t 2￿12 S543 Net Book Value at 31 August 2022 224 6.073 Hlstor5cal ¢ost gf resSd¢ntl41 propert1￿ l>rfor¢ v4luatlon N•t book valu• Cost D•pMclatlon 000 £'ooo At 15eptember 2021 Addiiions 877 14471 Disp05è1s Charge for year (761 1141 61 061 At 31 August 2022 The Charity has a bank overdraft and loans secured on several of its fixed assets. The valuations in these accounts of those assets that are pled9ed as security are.. 2022 ¢000 20J £'ooo Non-residential properties Flesidential properties •29 2.691 I￿55 1,495 4.186 Value of bank overdraft and loans to which security belongs Bank overdraft see Note 9 Bank loans See Notes 9 &10 835 42 notes to the f inancial statements for the year ended 31 August 2022 7 Investments Investments are stated at market value at 31 August 2022 and are held by nominee companie5 on behalf of the Charity Unr•rtrict•d R•stri¢t•d e¢)00 eooo Tot41 Market Value I September2021 Addition5 3.192 399 270 467 Disposals at market value Flevaluation 931n- unrealised 14141 12231 14141 12401 Mark•t Value 31 August X122 1954 T15 Total 2021 £'ooo 2022 eooo eooo Investments compr55•: Li51ed investment5 2069 3,347 Cash in bank 85 2.954 3275 3,461 Historic tost 294 les9 2.818 The following investment constitutes 5% or more of the market value of the c)verall investment portfolio. ISHARES PLC S&P 500 Shares IUSDI £230,627 The Charity had at 31 August 2022 a loan secured an unrestricted investment portfolio. The value of the loan shown in note 9 was £lmillion12021.' £lmillionl and the value of the investments was £2.122million 12021'.£2.293millionl. 43 notes to the f inancial statements for the year ended 31 August 2022 8 Debtors 2022 eooo 2021 £'ooo Trade debtors Other debtors 315 429 Prepayment5 and accrued income 361 506 939 9 Creditors: amounts falling due within one year 2022 £Doo 2021 £'ooo Trade creditors Bankloan Other loan Special purpose funds held Other creditors Other taxation Accruals arid deferréd incomè 280 330 87 1,000 16 113 125 528 88 1,000 12 120 412 1003 2,199 10 Creditors: amounts falling due after more than one year 2022 £￿00 2021 £'ooo Bankloan 749 749 Bank Loan The bank loan is secured by charges on the Charity's properties and is repayable in instalments at varying rates of interest due a5 follow5.. 2022 £'ooo 2021 £'ooo Due in less than one year Due beiween one and two years Due between two and five year5 Due in f ive years or more 87 87 661 88 576 751 835 notes to the f inancial statements for the year ended 31 August 2022 11 Deferred income D&ferred income relates to fee income where terms and conditions have not been met at the balance sheet date, or where some uncertainty exists as to whether they can be met. In these instances income is not recognised, but deferred as a liability until it is probable that the terms or conditions imposed can be met. Balan¢• as •t Prkn y•ar 31 Aug 2021 r•l•ased 8alan¢• as at Addltlons 31 Aug 2022 £'ooo College fees Housing and Support fees 316 12951 268 289 Tot•1 T16 12 Analysis of changes in net debt B•l•nc• Prlor yg•r oth•r B•l•n¢• as •t Prlor ￿•r W*)n•ca¥h asat I S•pt 2021 Cash Flow ¢hang• 31 Aug 2022 tooo É'ooo Cash Overdraft facility repayable on demand -Loèn repayabl& oft flemand 1.387 1,125 11.0001 11.0001 Cash and Cash •qulval•nti Loans falling due Wilhin one year Loan5 fallin9 due after morethan oneyear 12621 87 125 1881 88 491 Total 14491 0751 16241 13 Reserves a) Funds reported under FRS 102 Unroali5ed Balance gain l(loss) on asat revaluation Unrealised I Sepi I￿ornIng of tsngible gain 1110551 on 2021 fund5 fixed a55ets investment É'ooo SHPS defined benefit Gain111055) scheme on Sale of Amount5 Balance a5 at Transfers movement fixed assets expended 31 Aug 2022 £'ooo £'ooo I'ooo £'ooo É'ooo £'ooo E'OOO £'ooo lil Unre5trieted Funds 6,401 9,843 12401 (461 11.1061 110,2041 4,844 Funds (Note 14bl 945 430 20 (461 14441 905 Tot•1 7.346 10.273 (240) .1061 3 (10,6481 5,749 45 notes to the f inancial statements for the year ended 31 August 2022 13 Reserves - continued bl Restrlcted lund$: Movement In they•ar Unr•aliwd 9•ihlllossl R•valuation In¢omin9 of Tangiblg Funt been prtrwded for in rhÈ financial stattrmenL 2022 2021 £￿00 19 17 Pension obligations 17.1 Def ined benef it schemes The Charity offers one defined benefit scheme. the Teachers. Perision Scheme. The defined benefit scheme for Soci81 Housing Pension Scheme ISHPSI was closed to new entrants as at J M8rch 2013. The assets of these schemes are held in separate trustee administered funds and the respective pension providers have provided the following disclosure ￿0￿ments.. 47 notes to the f inancial statements for the year ended 31 August 2022 17.la) Teachers, Pension Scheme The Teachers, Pension Scheme ffps or scheme) is a statutory. unfunded, defined benefit occupational scheme, governed by the Teachers. Pensions Regulations 201013s amendedl, and the Teachers, Pension Scheme Regulations 2014 las amend￿1. Thèse regulations apply to teachers in schools and other educational establishmer)ts. including academies in England and Wales that are maintained by local authoritie5. In addition, teacher5 in many independent and voluntary-aided schools 3nd teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and. from l January 2007. automatic too for teachers 8nd lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS. (i) The Teachers, Pension budgeting and valuation account Although membeis may be employed by vaiious boLlies. Iheii ietirement and other pension benefits are set out in regulations made under the Superannuation Act119721 and Public Service Pensions Act120131 and are paid by publie funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a'pay as you go, basis- contributions from members. along with those made by employers, are credited to the Exchequer under arrangements governed by the above Act5. The Teachers, Pensions Regulations 2010 require an annual account, the Teachers. Pension Bud9etin9 and V3luafion Account, to be kèpt ol receipt5 and expendilure (including the cost of pension increases). From l April 2001, the Account has been crediied with a real rate of return. which is equivalent to ssuming that the balance in the Account is invested in notional investments that produce that real rate of return. (li) Valuation of the Teachers, Pension Scheme As a result of the latest scheme valuation employer contributions were Increased in September 2019 from a rate of 16.496 to 23.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary cost5 to cover administration expense The next valuation is expected to take èffeet in 2023. A copy of the latest valuation reporr can be fovnd ty following this link.. https.'/Avww.teacherspension&co.uWnewskmployersf2019ts41teachers-pensions-valuation-rerK)rt.aspx (iii) Scheme changes In December 2018. rhe Court of Appeal held thai iransitional proieciion provisions coniained in the reformed judicial and firefighter pension schemes. introduced a5 part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, have rejecied the Government's applicaiion for permission to appeal the Court of Appeal's ruling. The cèse wll now be referred to an Employment Tribunal for a deci510n regarding the remedy which will need to be offered io ihose members of ihe two ￿heMeS who were subject of the age discrimination. Since ther). claims have also been lodged against the main public service schemes including the TP5. The Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-week public consultation which will provide ewdence io suppori the delivery of an appropriate remedy for the affected schemes including TPS. A f inal remedy will be determined once the results of the consultation are established. In December 2019. a further legal challenge was made against Ihe TPS relating to an identified equalities issue whereby male survivors of opposte-sex marriage5 and civil partnerships are treated less favourably than 5urvivor5 in same-5ex marriage5 and civil partne15hip& The Secretary of State for Education agreÈd not to defend thÈ case. In June 2020. the Employment Tribunal recorded its findings in respect of the claimant. DfE Is currently working to establish what changes are necessary to addres5 thi5 discrimination. Any impact of these events will be taken into account when the next scheme valuation is irnplemented. This is scheduled to be implemertted in April 2023. based on April 2020 data. 48 notes to the f inancial statements for the year ended 31 August 2022 b) Social Housing Pension Scheme Pres•nt values of defIn￿ ￿nefIt obllgatlon, falrvalue ¢)f ass•ts and d•flned ben￿￿ Il•blllty 31 Aug 31 Aug 2021 Fair value of plan assets Present value of defined benefit oblwation 15.616 153*1 P.2091 115671 Defined benefit liability 122091 115671 FIKonelllatlon ol openlng and ¢loslng balan￿$01 th• d•fln*d b•n•flt obllgatlon P•tSod End•d 31 Aug 2022 Peri¢xl Ernded 31 Aug 2021 DefSned benellt obli9atSon at start of peilod Expense5 Interest expense Actuarial Igainsvlossesdue to schemeexper*n Actuarial Ios8e51 Igainsl due to change5 in dernographic ossurnprion5 Aetuarial lossesllgainsl due to changes in linèncial assumptic¥)s Benefits paid 8nd expenses DefSned beneflt obli9atSon at end of period 17.183 17 16,007 15 270 12981 P161 IQ0261 ISJI 1,699 15761 17.185 Fl•con¢lll•tlon of op•nlng •nd clo¥ln9 b•1•n¢￿Vf th• f•lr v•lu• gf pl•n •5s•ts P•rlod Ehd•d 31 Aug 2022 Peritsd Ended 31 Aug 2021 Fair value of plan assetsat start of periL¥J Interest Income 13,710 234 Experience on plan as5ers lexcluding amounts in¢luded in interest income). gain Contributions by the empltrftr Benefits paid and expenses Fair value of plan assetsat end of period 155241 1,860 388 IY161 15,616 The actual retLJrn on the plan assets (including anychanges in share of assets) over theyear ended 31 August ?(122 was1£5.2fthOrters left us a gift in their will. We are hugely grateful for their support to HenSha￿ every donation truly does have an impact on someone's life. We have plenty ofchallenge eventstaking place through0￿ theyear. For more information on events, appeals and volunteering opportunities, please visit our website. email fundraising@henshawsorg.uk henshaw&org.uk 0300 222 $555