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ANNUAL REPORT 2020-21
Royal Mencap Society




















































































































**Financial statements** 

Consolidated statement of Financial Activities for the year ended 31 March 2021 (incorporating the income and expenditure account) 





































































































































































































































































https://www.nice.org.uk/news/article/nice-publishes-first-rapid-covid-19-guidelines https://www.mencap.org.uk/press-release/mencap-responds-deeply-troubling-new-nice-covid-19guidance 

https://www.mencap.org.uk/press-release/mencap-responds-concerning-gp-letters-about-covidmedical-treatment 

























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https://www.cqc.org.uk/news/stories/cqc-publishes-data-deaths-people-learning-disability 

https://www.england.nhs.uk/publication/covid-19-deaths-of-patients-with-a-learning-disabilitynotified-to-leder/ 

https://www.gov.uk/government/publications/covid-19-deaths-of-people-with-learning-disabilities 


















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https://www.nice.org.uk/news/article/nice-publishes-first-rapid-covid-19-guidelines 

https://www.mencap.org.uk/press-release/mencap-responds-deeply-troubling-new-nice-covid19-guidance https://www.mencap.org.uk/press-release/mencap-responds-concerning-gp-letters-about-covidmedical-treatment 

https://www.england.nhs.uk/covid/wp-content/uploads/sites/52/2020/04/C0166-LetterDNACPR.pdf 
















































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32
Strategic report
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9 August 2021 





## **Financial statements** 

## Consolidated statement of Financial Activities for the year ended 31 March 2021 (incorporating the income and expenditure account) 

||Notes|Unrestricted<br>funds|Restricted<br>funds|**Total 2021**<br>**Funds**|Unrestricted<br>funds|Restricted<br>funds|Total 2020<br>Funds|
|---|---|---|---|---|---|---|---|
|**Income from:**||£’000|£’000|**£’000**|£’000|£’000|£’000|
|Donations and<br>Legacies|2,29|10,971|7,367|**18,338**|9,055|3,902|12,957|
|Charitable<br>activities|3,29|185,783|6,329|**192,112**|174,562|5,190|179,752|
|Other trading<br>activities|4|1,722|-|**1,722**|3,254|-|3,254|
|Investments|5|103|91|**194**|193|142|335|
|Property income|6|22,802|2,164|**24,966**|20,969|2,132|23,101|
|Gain on disposal of<br>fixed assets||917|-|**917**|841|-|841|
|**Total**||**222,298**|**15,951**|**238,249**|208,874|11,366|220,240|
|||||||||
|**Expenditure on:**||||||||
|Raisingfunds|7|6,004|114|**6,118**|6,394|292|6,686|
|Charitable<br>activities|7|209,595|9,594|**219,189**|200,158|5,976|206,134|
|**Total**||**215,599**|**9,708**|**225,307**|206,552|6,268|212,820|
|||||||||
|Net gains/(losses)<br>on investments|14|665|958|**1,623**|(236)|(403)|(639)|
|**Net income/**<br>**(expenditure)**||**7,364**|**7,201**|**14,565**|2,086|4,695|6,781|
|Transfers between<br>funds|23|1,091|(1,091)|**-**|252|(252)|-|
|**Other recognised**<br>**gains/(losses)**||-|-|**-**|-|-|-|
|Actuarial gains/<br>(losses) on defined<br>benefit pension<br>schemes|24|(3,368)|-|**(3,368)**|7,581|-|7,581|
|**Net movement in**<br>**funds**||**5,087**|**6,110**|**11,197**|9,919|4,443|14,362|
|||||||||
|**Reconciliation of**<br>**funds**||||||||
|Total funds<br>brought forward||63,991|32,828|**96,819**|54,072|28,385|82,457|
|**Total funds**<br>**carried forward**||**69,078**|**38,938**|**108,016**|63,991|32,828|96,819|



Royal Mencap Society 




## Consolidated balance sheet as at 31 March 2021 

|nsolidated balance sheet as at 31 March 2021||||
|---|---|---|---|
||Notes|**2021**<br>**£’000**|2020<br>£’000|
|**Fixed assets**||||
|Intangible assets|12|**184**|301|
|Tangible assets|13|**124,994**|120,944|
|Investments|14|**25,322**|13,965|
|**Total fixed assets**||**150,500**|135,210|
|||||
|**Current assets**||||
|Debtors|17|**29,046**|26,742|
|Stock||**49**|47|
|Cash at bank and in hand||**21,250**|15,850|
|**Total current assets**||**50,345**|42,639|
|||||
|**Liabilities**||||
|Creditors: Amounts fallingwithin oneyear|18|**(42,183)**|(23,442)|
|**Net current assets or liabilities**||**8,162**|19,197|
|||||
|**Total assets less current liabilities**||**158,662**|154,407|
|||||
|Creditors: Amounts fallingdue after more than oneyear|19|**(42,815)**|(51,048)|
|Provisions for liabilities|21|**(5,259)**|(5,199)|
|**Net assets or liabilities excluding pension asset or liability**||**110,588**|98,160|
|||||
|Defined benefitpension scheme liability|24|**(2,572)**|(1,341)|
|**Total net assets or liabilities**||**108,016**|96,819|
|||||
|**The funds of thegroup:**||||
|Restricted income funds|23|**38,938**|32,828|
|||||
|Unrestricted funds||**56,079**|58,800|
|Designated funds||**15,571**|6,532|
|Pension reserve||**(2,572)**|(1,341)|
|Total unrestricted funds|23|**69,078**|63,991|
|||||
|**Totalgroup funds**||**108,016**|96,819|



These financial statements were approved and authorised for issue by the trustees on 28[th] July 2021 and signed on their behalf by: 



Derek Lewis: Chair Kathryn Cearns: trustee 

The notes on pages 68  to 108 form part of these financial statements. 

Royal Mencap Society 




## Charity balance sheet as at 31 March 2021 

|harity balance sheet as at 31 March 2021||||
|---|---|---|---|
||Notes|**2021**<br>**£’000**|2020<br>£’000|
|**Fixed assets**||||
|Intangible assets|12|**184**|298|
|Tangible assets|13|**17,398**|17,649|
|Investments|14|**25,322**|13,965|
|**Total fixed assets**||**42,904**|31,912|
|||||
|**Current assets**||||
|Debtors|17|**30,400**|27,890|
|Cash at bank and in hand||**8,289**|7,096|
|**Total current assets**||**38,689**|34,986|
|||||
|**Liabilities**||||
|Creditors: Amounts fallingwithin oneyear|18|**(25,852)**|(18,044)|
|Net current assets or liabilities||**12,837**|16,942|
|||||
|**Total assets less current liabilities**||**55,741**|48,854|
|||||
|Creditors: Amounts fallingdue after more than oneyear|19|**(674)**|(749)|
|Provisions for liabilities|21|**(4,847)**|(4,839)|
|**Net assets or liabilities excluding pension asset or liability**||**50,220**|43,266|
|||||
|Defined benefitpension scheme liability|24|**(2,572)**|(1,341)|
|**Total net assets or liabilities**||**47,648**|41,925|
|||||
|**The funds of the charity:**||||
|Restricted income funds|23|**14,137**|10,017|
|||||
|Unrestricted funds||**27,083**|33,249|
|Designated funds<br>**9,000**<br>-<br>Pension reserve<br>**(2,572)**<br>(1,341)||||
|Total unrestricted funds|23|**33,511**|31,908|
|||||
|**Total charity funds**||**47,648**|41,925|



The charity has taken exemption from presenting its unconsolidated profit and loss account under section 408 of the Companies Act 2006. The net income of the charity in 2021 was £9.1m (2020: Net income £2.5m). 

These financial statements were approved and authorised for issue by the trustees on by the trustees on 28[th] July 2021 and signed on their behalf by: 


Derek Lewis: Chair 

Kathryn Cearns: trustee 

The notes on pages 68  to 108 form part of these financial statements. 

Royal Mencap Society 




## Consolidated statement of cash flows for the year ended 31 March 2021 

||**2021**<br>**£’000**|2020<br>£’000|
|---|---|---|
|**Cash flows from operating activities**|||
|**Net cashprovided by operating activities(see below)**|**17,493**|9,524|
||||
|**Cash flows from investing activities**|||
|Dividends,interest and rents from investments|**194**|335|
|Proceeds from the sale ofproperty, plant and equipment|**2,175**|2,896|
|Purchase ofproperty,plant and equipment|**(7,678)**|(11,346)|
|Proceeds from the sale of investments|**12,879**|9,200|
|Purchase of investments|**(22,613)**|(8,146)|
|Shared investment contribution|**124**|(327)|
|**Net cashprovided by/ (used in) investment activities**|**(14,919)**|(7,388)|
||||
|**Cash flows from financing activities**|||
|Repayments of borrowing|**(1,174)**|(1,149)|
|Cash inflows from new borrowing|**4,000**|4,000|
|**Net cashprovided by/ (used in) financing activities**|**2,826**|2,851|
||||
|**Change in cash and cash equivalents in the reporting period**|**5,400**|4,987|
||||
|**Cash and cash equivalents at the beginning of the reporting period**|**15,850**|10,863|
|**Cash and cash equivalents at the end of the reporting period**|**21,250**|15,850|



## Reconciliation of net income / (expenditure) to net cash flow from operating activities 

||**2021**<br>**£’000**|2020<br>£’000|
|---|---|---|
|**Net income for the reporting period (as per the statement of**<br>**financial activities)**|**14,565**|6,781|
|Adjustments for:|||
|Depreciation and amortisation charges|**2,363**|2,105|
|Loss/(gain)on investments|**(1,623)**|639|
|Dividends,interest and rents from investments|**(194)**|(335)|
|Defined benefitpension expense|**10**|396|
|Loss/(profit)on the sale of fixed assets|**(917)**|(841)|
|Decrease/ (Increase)in stocks|**(2)**|15|
|Decease/(Increase)in debtors|**(2,304)**|3,027|
|Increase/(decrease)in creditors(excludingloans)|**7,682**|2,293|
|(Decrease)/Increase inprovisions|**60**|(2,412)|
|Defined benefitpension deficit(reduction)|**(2,147)**|(2,144)|
|**Net cashprovided by operating activities**|**17,493**|9,524|



Royal Mencap Society 




|Analysis of cash and cash equivalents|**2021**<br>**£’000**|2020<br>£’000|
|---|---|---|
|Cash at bank and in hand|**12,233**|9,859|
|Notice deposits(less than 3 months)|**9,017**|5,991|
|Overdraft facilities repayable on demand|**-**|-|
|**Total cash and cash equivalents**|**21,250**|15,850|



## **1. Accounting policies** 

## (a) Company information 

Royal Mencap Society is a public benefit entity registered as charity in England and Wales and a company limited by guarantee. It was incorporated on 9 June 1955 (company number: 550457) and registered as a charity on 23 July 1964 (charity number: 222377). It is also registered with the Office of the Scottish Charity Regulator on 11 December 2009 (charity number: SC041079). 

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association (last amended 15 October 2014). 

In the event of the company being wound up members are required to contribute an amount not exceeding £1 each. 

The registered office of Royal Mencap Society is: 123 Golden Lane, London EC1Y 0RT. 

## (b) Basis of preparation and going concern 

The consolidated financial statements have been prepared under the historical cost convention in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the 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 2015. 

The financial statements have been prepared consolidating the results of the charity and its subsidiary Golden Lane Housing Limited, a charitable company of which the charity is the sole member (company number: 03597323). Both charities within the Mencap group are separately registered and governed by their own Memoranda and Articles of Association. 

Additionally, the charity’s other trading subsidiaries as disclosed in the accounts are fully consolidated, as in all cases the charity is the sole member. 

Mencap is well placed to manage the business risks we face. This position is supported by a sufficient level of liquid reserves to cover business continuity and development plans, a good relationship with our key funders and proven ability to retain and secure new services. 

The Budget for financial year 21/22 was approved by the RMS Board in March 2021 and was prepared against a backdrop of continuing uncertainty caused by Covid, but with the benefit of the sleep-in case being resolved in favour of RMS. The latter was heard by the Supreme Court in February 2020, and we received a favourable verdict on March 19th, 2021. 

Royal Mencap Society 





With the sleep-in contingent liability now removed, RMS are in a position to invest behind the Big Plan, reducing reserves to target levels over the course of the next 2-3 years. As detailed in our reserves policy. We hold free reserves to provide cover for unexpected changes in income and expenditure, allowing us to continue activities whilst we adjust our cost base as required. We will continue to monitor the situation and manage our finances accordingly. 

At the year-end RMS was holding marketable investments of £25.3m, in addition to £8.3m of operational cash. 

Our planning processes, including financial projections, take into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure. We acknowledge our pension fund obligations and have a clear strategy to manage the deficit, which includes a deficit reduction plan that is designed to get the scheme to self-sufficiency by 2028, subject to continued discussion and agreement with the pension scheme trustee board. 

The trustees therefore have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future being at least twelve months from the date of approval of these financial statements. Accordingly, the financial statements continue to be prepared on the going concern basis. 

## (c) Critical accounting judgements and key sources of estimation uncertainty 

In the application of the group’s accounting policies, which are described in this note, trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods. 

Significant areas of estimate and judgement include provisions, assumptions used to value the defined benefit pension scheme, and the remaining useful life of assets. Related accounting policies for these items are noted below. 

The principle accounting policies adopted, judgements and key sources of estimation uncertainty in the presentation of the financial statements are as follows: 

## (d)Income 

All income is accounted for when Mencap has entitlement, there is probability of receipt and the amount is measurable. 

## **Charitable activities (see note 3)** 

Income in respect of contracts for the provision of services is recognised when Mencap is entitled based on services provided. Amounts received in advance of service provision are deferred until the relevant part of the contracted service is complete. 

Royal Mencap Society 




## **Legacies (see note 2)** 

Legacies are accounted for when notified, providing the amount can be reliably measured and that ultimate receipt is probable. Legacies which include a life interest held by another party are recognised on notification of probate. 

## **Gifts in kind (see note 2)** 

Donated goods and services are included as income within the statement of financial activities (with an equivalent amount in expenditure) at their fair value, where Mencap is entitled to the donation, it is probable that it will be received, and the fair value can be measured reliably. 

Assets given for use by Golden Lane Housing Limited have been recognised as incoming resources when they become receivable and included either in fixed assets when they are received or in other debtors if they have not yet been received. The basis for valuation is the market value at the time of purchase. 

## **Property Income (see note 6)** 

Rental and Service charge income is recognised on an accruals basis and recognised when the property is available for let, net of voids. Golden Lane Housing operates a fixed service charge scheme. Where periodic expenditure is required this will be treated as deferred income and held on the Statement of Financial Position until the costs are incurred. 

## **Investments (see note 14)** 

Listed investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year. 

## **Grants (see note 3 and 6)** 

Grant income is recognised in the statement of financial activities when received or when the charity becomes entitled to receipt. Grants that have been received will be treated as deferred income where there are specific requirements in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period. 

## (e)Expenditure 

## **i) Activity related expenditure (see note 7)** 

The charity’s cost of operating includes staff costs, rent and other related costs. Costs are allocated between raising funds, which includes key priority costs of raising funds, investment management costs and the trading costs of subsidiaries. Charitable activities includes key priority costs of reducing stigma and discrimination; social care; supporting friendships and relationships; improving health; early intervention; employment; governance. All costs are accounted for on an accruals basis. 

## **ii) Basis of allocation of support costs (see note 7)** 

Support costs include management, finance, information technology, human resources, and some elements of fundraising. They are apportioned across the key priorities within charitable activities and raising funds based on use. 

Governance costs other than those disclosed specifically in the notes to these accounts are included within support costs and allocated on the same basis. 

## Royal Mencap Society 




## **iii) Pension costs (see note 24)** 

## **Mencap pension scheme (defined benefit)** 

The Mencap defined benefit scheme was closed to new entrants on 1 October 2001 and closed to future service benefit accrual with effect from 31 March 2009. 

Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial assumptions are reviewed every three years. 

The valuation is updated at each balance sheet date and the resulting defined benefit asset or liability is shown separately after other net assets on the face of the balance sheet. This defined benefit asset or liability is also disclosed separately within unrestricted funds. 

The amounts charged to the statement of financial activities are the current service costs, which are included within staff costs, and gains and losses on settlements and curtailments. Past service costs are recognised immediately if the benefits have vested. Defined actuarial gains and losses are recognised under other recognised gains and losses. 

The defined benefit schemes are funded, with the assets of the scheme held separately from those of the group in separate trustee administered funds. 

If members of the defined benefit pension schemes have not yet retired, their costs are recognised over the period leading to retirement. Further details of the nature of these costs are given in note 24: Pension scheme. 

## **Other defined benefit schemes** 

Mencap also participates in a number of local government pension schemes in relation to a small number of staff who have transferred over to Mencap. Mencap participates in these schemes by way of admission agreements. Full provision has been made according to FRS 102 in the financial statements in relation to one of the schemes. However, as the liability is not material, disclosure has been limited so as not to distort or overstate the importance of this scheme. 

## **Defined contribution scheme** 

The charity also contributes to a defined contribution scheme, which was opened on 1 April 2002. This is currently operated by AEGON (Formerly Blackrock). A workplace pension scheme is operated by NEST. 

For the defined contribution scheme, the amount charged to the statement of financial activities in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. 

The cost of the charity's contributions to the defined contribution scheme is allocated between restricted and unrestricted funds in accordance with the functions of the individual employees to whom the contributions relate. 

## **iv) Redundancy and termination costs** 

Employee benefits paid on redundancy or termination include accrued amounts where Mencap is demonstrably committed to make these payments but they had not yet been made at 31 March 2020. All accrued amounts are fully funded and expected to be settled within 12 months of the balance sheet date. 

Royal Mencap Society 




## (f) Tangible and intangible fixed assets 

## **Tangible fixed assets (see note 13)** 

Tangible fixed assets costing more than £2,000 are capitalised; all tangible assets costing less than this amount are expensed immediately. 

Depreciation is provided so as to write off the cost of the assets (net of any shared investment contributions where applicable) in equal instalments over the estimated useful lives of the assets. 

The depreciation rates used to achieve this, are as follows 

Freehold and leasehold land and buildings: 1% - 10% per annum Fixtures, 

fittings and equipment: 10% - 33% per annum 

Motor vehicles: 25% per annum 

Assets under construction is a category holding assets pending completion and transfer into the relevant fixed asset category. These assets are capitalised at cost and not subject to depreciation or impairment unless extraordinary circumstances have occurred which would require provision to be made. 

## **Office properties are held at cost.** 

Residential property is held at cost, less contributions from individuals and their families where applicable. Shared investment contributions are accounted in this way where individuals or families have a right to an equity share of the property on disposal, including any resulting profit or loss. 

All other tangible fixed assets are subject to review for impairment/accelerated depreciation where there is an indication of a reduction in their carrying value. Any impairment/accelerated depreciation is recognised in the statement of financial activities in the year in which it occurs. 

## **Intangible fixed assets (see note 12)** 

Intangible fixed assets costing more than £2,000 are capitalised; all intangible assets costing less than this amount are expensed immediately. 

Amortisation is provided so as to write off the cost of the assets in equal instalments over the estimated useful lives of the assets. The amortisation rates used to achieve this are as follows: 

- Software: 33% per annum 

## **Component accounting - Golden Lane** 

## **Housing** 

In accordance with FRS 102, Golden Lane Housing Limited recognises and depreciates tangible and intangible fixed assets using component accounting. As a result, it uses a separate and more detailed set of depreciation rates as follows: 

- Freehold and long leasehold buildings (structure only) over 100 years: 1% per annum 

- Capitalised leasehold buildings (structure only) less than 100 years: Over the term of the lease 

- Bathrooms: 3.33% per annum 

- Kitchens: 5% per annum 

- Boilers: 6.67% per annum 

## Royal Mencap Society 




- Central heating: 3.33% per annum 

- Rooves: 1.67% per annum 

- Externals (fascias, soffits): 3.33% per annum 

- Doors: 3.33% per annum 

- Windows: 3.33% per annum 

- Electrics (rewire): 3.33% per annum 

- Capitalised data system software: 20% per annum 

- Capitalised fixtures and fittings: 10% per annum 

## **Finance leases** 

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the group. All other leases are classified as operating leases. 

Assets held under finance leases are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. 

The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. 

Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. 

## **Operating leases (see note 11)** 

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are spread on a straight-line basis over the lease term which runs to the date of the first relevant break clause. 

## (g)Current assets and liabilities 

## **Stock** 

Stock, which comprises stationery and goods for resale, is stated at the lower of cost and net realisable value. Donated stock is carried at nil value as it is considered impractical to obtain a reliable valuation. The value of goods is instead recognised at their retail price when sold. 

## **Provisions – general (see note 21)** 

Provision is made for present obligations where it is probable settlement will be required in the future and the amount can be estimated reliably, but the amount or timing is not certain. Amounts provided for, other than for Mencap Visiting Service, are expected to be settled within 12 months and are therefore recognised at the estimated settlement amount. 

## **Provisions –Mencap Visiting Service** 

Royal Mencap Society 




Provision is made to cover the estimated all future costs of providing the Mencap Visiting Service over its remaining life. In estimating the provision, account is taken of the estimated number of years that the service will be provided to individuals as well as estimated future inflation rates and rates of return on investments associated with the scheme. The discount rates used in calculating this liability are consistent with rates used in determining our defined benefit pension liability. Investments held by Mencap to cover the liability of providing the Mencap Visiting Service are held in trust for this purpose. 

## **Deferred income** 

Grants that have been received will be treated as deferred income where there is a specific requirement in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period(s). 

## (h)Basic financial instruments (see note 20) 

Financial assets (including cash and debtors) and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. Additionally, all financial assets and liabilities are classified according to the substance of the contractual arrangements entered into. 

Financial assets and liabilities are initially measured at transaction price (including transaction costs) and are subsequently remeasured where applicable at amortised cost, except for investments which are measured at fair value with gains and losses recognised in the statement of financial activities. 

Financial assets include cash, trade debtors, intercompany debtors, other debtors and accrued 

income. Financial assets held at fair value include investments. 

Financial liabilities include trade creditors, other creditors, finance leases, bonds, loans and accruals. 

## (i) Funds (see note23) 

The charitable companies within the group maintain various types of fund as follows: 

- Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charities for particular purposes. 

- Unrestricted funds are funds which are expendable at the discretion of the trustees in furtherance of the objects of the charities. 

- Designated funds are unrestricted funds which have been set aside by the trustees of the charities for specific purposes. The aim and use of each designated fund are set out in the notes to the financial statements along with estimated timescales as to when the funds will be spent. 

Royal Mencap Society 




## **2. Donations and legacies** 

|**Donations and legacies**|||||
|---|---|---|---|---|
||Unrestricted<br>funds|Restricted<br>funds|**Total 2021**|Total<br>2020|
||£’000|£’000|**£’000**|£’000|
|Donations|2,491|281|**2,772**|3,475|
|Legacies|7,288|639|**7,927**|6,828|
|Trust Fund|394|1,367|**1,761**|823|
|Community/ BigLotteryFund|145|207|**352**|246|
|Organisations raisingfunds|604|2,969|**3,573**|325|
|Gifts in Kind|49|1,904|**1,953**|1,260|
|**Total donations and legacies**|**10,971**|**7,367**|**18,338**|12,957|



## **3. Income from charitable activities** 

|**Income from charitable activities**|||
|---|---|---|
||**Group2021 **|Group2020|
||**£'000**|£'000|
|**Personal support**|**182,723**|172,046|
|**Other**|**9,389**|7,706|
|**Total income from charitable activities**|**192,112**|179,752|



Other income from charitable activities primarily consists of receipts for a range services: the provision of support, employment, youth services. Some of these are separately named in note 29(e).Included in income from charitable activities is £4.4m received from the Coronavirus Job Retention Scheme during the year (2020: Nil). 

## **4. Income from trading activities** 

||**Group**<br>**2021**|Group<br>2020|
|---|---|---|
||**£'000**|£'000|
|DBS checks|**267**|352|
|Retail trading element|**912**|2,425|
|Trust management services|**543**|477|
||**1,722**|3,254|



## **5. Investment income** 

|**Investment income**|||
|---|---|---|
||**Group**<br>**2021**|Group<br>2020|
||**£'000**|£'000|
|Income from listed investments|**184**|303|
|Bank interest|**10**|32|
||**194**|335|



Royal Mencap Society 




## **6. Property Income** 

|**Property Income**|||
|---|---|---|
||**Group**<br>**2021**|Group<br>2020|
||**£'000**|£'000|
|Rental income|**22,809**|20,575|
|Governmentgrant income|**2,157**|2,340|
|Consultancyincome|**-**|186|
||**24,966**|23,101|



Government grants included within property income are all made to Golden Lane Housing for works to adapt existing properties and to purchase new properties. There are no remaining unfulfilled conditions at 31 March 2021. All grants are repayable if Golden Lane Housing ceases business activity or the related scheme comes to an end. 

## **7a. Total expenditure** 

||Staff costs|Depreciation|Other direct<br>costs|Reallocated<br>support<br>costs|**Total**<br>**2021**|Total<br>2020|
|---|---|---|---|---|---|---|
||£’000|£’000|£’000|£’000|**£’000**|£’000|
|Costs of raising funds|1,208|-|1,234|243|**2,685**|3,134|
|Investment management<br>costs|-|-|63|-|**63**|67|
||||||||
|Trading costs of subsidiaries|1,695|305|1,370|-|**3,370**|3,485|
||**2,903**|**305**|**2,667**|**243**|**6,118**|6,686|
|Charitable activities:|||||||
|Reducing stigma and<br>discrimination|706|-|230|92|**1,028**|1,252|
||||||||
|Social Care|156,800|1,320|31,778|18,862|**208,760**|194,562|
|Supporting friendships and<br>relationships|974|-|875|184|**2,033**|1,509|
||||||||
|Improving health|346|49|44|44|**483**|404|
|Early intervention|551|81|211|84|**927**|903|
|Employment|4,283|3|826|507|**5,619**|7,037|
|Defined benefit pension<br>scheme finance costs|-|-|30|-|**30**|230|
||||||||
|Governance|164|-|117|28|**309**|237|
||**163,824**|**1,453**|**34,111**|**19,801**|**219,189**|206,134|
|Support costs|12,891|605|6,548|(20,044)|**-**|-|
||**179,618**|**2,363**|**43,326**|**-**|**225,307**|212,820|
||||||||



Royal Mencap Society 




## **7b. Support costs allocated** 

||Management|Finance<br>and IT|HR|Fundraising|Other|**Total**<br>**2021**<br> <br>|Total<br>2020|
|---|---|---|---|---|---|---|---|
||£'000|£'000|£'000|£'000|£'000|**£'000**|£'000|
|Costs of raising funds|55|132|32|10|14|**243**|295|
|Reducing stigma and<br>discrimination|21|51|12|4|4|**92**|116|
|||||||||
|Social care|4,285|10,276|2,517|767|1,017|**18,862**|18,227|
|Supporting friendships<br>and relationships|42|100|25|7|10|**184**|143|
|||||||||
|Improving health|10|24|6|2|2|**44**|38|
|Early intervention|19|46|11|3|5|**84**|85|
|Employment|115|277|68|21|26|**507**|660|
|Governance|6|15|4|1|2|**28**|22|
||**4,553**|**10,921**|**2,675**|**815**|**1,080**|**20,044 **|19,586|
|||||||||



## **8. Information regarding employees** 

The estimated average full-time equivalent number of employees by function was: 

||**2021**|2020|
|---|---|---|
||**Employees**<br>**(FTE)**|Employees<br>(FTE)|
|Reducingstigma and discrimination|**25**|27|
|Social care|**4,973**|4,958|
|Supportingfriendships and relationships|**30**|32|
|Improvinghealth|**95**|90|
|Earlyintervention|**20**|18|
|Trading|**63**|56|
|Raisingfunds|**26**|30|
|Support costs|**261**|261|
|Governance|**17**|14|
|Employment|**149**|201|
||**5,659**|5,687|



Royal Mencap Society 




The estimated average number of employees by function was: 

||**2021**|2020|
|---|---|---|
||**Employees**|Employees|
|Reducingstigma and discrimination|**25**|27|
|Social care|**7,722**|7,864|
|Supportingfriendships and relationships|**30**|32|
|Improvinghealth|**95**|90|
|Earlyintervention|**20**|18|
|Trading|**63**|56|
|Raisingfunds|**26**|30|
|Support costs|**261**|261|
|Governance|**17**|14|
|Employment|**149**|201|
||**8,408**|8,593|



Royal Mencap Society 




Employee costs in the year: 

||**2021**|2020|
|---|---|---|
||**£'000**|£'000|
|Wages and salaries|**163,159**|154,357|
|Social security costs|**12,873**|12,265|
|Pension costs|**3,586**|3,474|
|**Total staff costs as per note 7a**|**179,618**|170,096|
|Benefits in kind|**120**|120|
|**Total employee costs**|**179,738**|170,216|



Included in the above are amounts paid to temporary staff during the year totalling £4.9m (2020: £6.3m). 

At the end of the financial year the Trustees agreed to make a one-off gift of £300 to each support worker who worked in Mencap’s social care services for a considerable period during the pandemic. The sum of £2.3m for this was accrued at the year end 

## **Redundancy and termination payments:** 

Expenditure totalling £248,988 (2020: £417,205) was recognised in the year in respect of redundancy and termination payments for employees. 

Number of employees with salaries over £60,000 

||**Total**|Total|
|---|---|---|
||**2021**|2020|
|£60,000 - £69,999|**25**|20|
|£70,000 - £79,999|**7**|11|
|£80,000 - £89,999|**7**|3|
|£90,000 - £99,999|**3**|5|
|£100,000 - £109,999|**3**|3|
|£110,000 - £119,999|**2**|-|
|£140,000 - £149,999|**1**|2|
|£150,000 - £159,999|**1**|-|
|£170,000 - £179,999|**1**|1|



Of the 50 employees above, 46 are members of the defined contribution scheme. Payments made to the defined contribution scheme on behalf of these individuals amounted to £165,323 (2020: £151,623) for the year. 

## **Trustees and senior management** 

The senior management of Mencap consists of the executive team. The total compensation received by members of the executive team during the year amounted to £903,677 (2020: £1,095,321). More details of executive remuneration can be found in the Trustees' report. Members of the board of trustees are not remunerated. 

Royal Mencap Society 




## **9. Expenses of the trustees** 

During the year, 1 trustee (2020: 12) was reimbursed for out of pocket expenses in relation to accommodation, travel and subsistence, or such expenses paid on their behalf. The total amount of these expenses was £274 (2020: £12,122). Members of the board of trustees are not remunerated. 

## **10. Net income/(expenditure)** 

|**10. Net income/(expenditure)**|||
|---|---|---|
||**Group2021 **|Group2020|
||**£'000**|£'000|
|**Net incoming/(outgoing) resources for the year are stated after**<br>**charging:**|||
||||
|**Depreciation and amortisation**|||
|Own assets|**2,321**|2,016|
|Leased assets|**42**|91|
||||
|**Rentals under operating leases**|||
|Land and buildings|**7,751**|6,833|
||||
|**Interest payable**|||
|Interest element of finance leases|**3**|6|
|Bank interest|**2,180**|2,209|
||||
|Defined benefit pension expenditure movement for the year|**10**|396|
||||
|**Auditors remuneration**|||
|Audit of the group|**76**|72|
|Other non-audit work:|||
|•<br>- Tax|**21**|18|



Included in the audit fee charged for the group was £63k (2020: £60k) for the audit of the parent charity. 

Royal Mencap Society 




## **11. Operating lease commitments** 

At 31 March 2021 the group has the following annual commitments under noncancellable operating leases: 

||**Landand**<br>**buildings**|Landand<br>buildings|
|---|---|---|
||**2021**|2020|
||**£'000**|£'000|
|Within oneyear|**7,816**|7,751|
|Within two to five years|**12,202**|13,136|
|After five years|**15,793**|15,479|
||**35,811**|36,366|



Royal Mencap Society 




## **12. Intangible fixed assets** 

## **(a) Group** 

|**(a) Group**|||
|---|---|---|
||Software|**Total**|
||£'000|**£'000**|
|**Cost or valuation**|||
|Balance at 1 April 2020|2,985|**2,985**|
|Additions|-|**-**|
|Transfers between classes|-|**-**|
|**Balance at 31 March 2021**|**2,985**|**2,985**|
||||
|**Accumulated depreciation**|||
|Balance at 1 April 2020|2,684|**2,684**|
|Charge for the year|117|**117**|
|**Balance at 31 March 2021**|**2,801**|**2,801**|
||||
|**Net book value at 31 March 2021**|**184**|**184**|
|**Net book value at 31 March 2020**|**301**|**301**|



|**(b) Charity**|||
|---|---|---|
||Software|**Total**|
||£'000|**£'000**|
|**Cost or valuation**|||
|Balance at 1 April 2020|2,732|**2,732**|
|Additions|-|**-**|
|Transfers between classes|-|**-**|
|**Balance at 31 March 2021**|**2,732**|**2,732**|
||||
|**Accumulated depreciation**|||
|Balance at 1 April 2020|2,434|**2,434**|
|Charge for theyear|114|**114**|
|**Balance at 31 March 2021**|**2,548**|**2,548**|
||||
|**Net book value at 31 March 2021**|**184**|**184**|
|**Net book value at 31 March 2020**|**298**|**298**|



Royal Mencap Society 




## **13. Tangible fixed assets** 

## **(a) Group** 

|**(a) Group**|||||||
|---|---|---|---|---|---|---|
||Freehold<br>land and<br>buildings|Assetsunder<br>construction|Leasehold<br>land<br>and<br>buildings|Fixtures,<br>fittings<br>and<br>equipment|Motor<br>vehicles|**Total**|
||£'000|£'000|£'000|£'000|£'000|**£'000**|
|**Cost or valuation**|||||||
|Balance at 1 April 2020|122,033|4,676|7,121|6,239|1,627|**141,696**|
|Additions|180|6,551|13|934|-|**7,678**|
|Disposals|(1,094)|-|(272)|(200)|(158)|**(1,724)**|
|Transfers between<br>classes|5,140|(7,768)|2,614|14|-|**-**|
|**Balance at 31 March**<br>**2021**|**126,259**|**3,459**|**9,476**|**6,987**|**1,469 **|**147,650**|
||||||||
|**Accumulated**<br>**depreciation**|||||||
|Balance at 1 April 2020|10,916|-|1,190|4,056|1,558|**17,720**|
|Charge for the year|1,084|-|357|763|42|**2,246**|
|Disposals|(120)|-|(52)|(136)|(158)|**(466)**|
|**Balance at 31 March**<br>**2021**|**11,880**|**-**|**1,495**|**4,683**|**1,442**|**19,500**|
||||||||
|**Net book value at 31**<br>**March 2021**|114,379|3,459|7,981|2,304|27|**128,150**|
|Less shared investment<br>contribution|(2,006)|-|(1,150)|-|-|**(3,156)**|
||**112,373**|**3,459**|**6,831**|**2,304**|**27 **|**124,994**|
||||||||
|**Net book value at 31**<br>**March 2020**|||||||
||111,117|<br>4,676|5,931|2,183|69|**123,976**|
|Less shared investment<br>contribution|||||||
||(2,156)|-|(876)|-|-|**(3,032)**|
||||||||
||**108,961**|**4,676**|**5,055**|**2,183**|**69**|**120,944**|







## **(b) Charity** 

|**(b) Charity**|||||||
|---|---|---|---|---|---|---|
||Freehold<br>land and<br>buildings|Assetsunder<br>construction|Leasehold<br>land<br>and<br>buildings|Fixtures,<br>fittings<br>and<br>equipment|Motor<br>vehicles|**Total**|
||£'000|£'000|£'000|£'000|£'000|**£'000**|
|**Cost or valuation**|||||||
|Balance at 1 April 2020|17,087|14|24|6,079|1,627|**24,831**|
|Additions|-|194|-|865|-|**1,059**|
|Disposals|(225)|-|-|(200)|(158)|**(583)**|
|**Transfer between classes**|**-**|(14)|-|14|**-**|**-**|
|**Balance at 31 March 2021**|**16,862**|**194**|**24**|**6,758**|**1,469**|**25,307**|
||||||||
|**Accumulated depreciation**|||||||
|Balance at 1 April 2020|1,597|-|24|4,003|1,558|**7,182**|
|Charge for the year|256|-|-|732|42|**1,030**|
|Disposals|(9)|-|-|(136)|(158)|**(303)**|
|**Balance at 31 March 2021**|**1,844**|**-**|**24**|**4,599**|**1,442**|**7,909**|
||||||||
|**Net book value at 31**<br>**March 2021**|**15,018**|**194**|**-**|**2,159**|**27**|**17,398**|
||||||||
|**Net book value at 31**<br>**March 2020**|**15,490**|**14**|**-**|**2,076**|**69**|**17,649**|







## **14. Fixed asset investments** 

|**14. Fixed asset investments**|||
|---|---|---|
||**Group and Charity **|Group and Charity|
||**2021**|2020|
||**£'000**|£'000|
|**Equities and multi-asset funds**|||
|Market value at 1 April 2020|**5,653**|6,296|
|Acquisitions|**2,930**|-|
|Disposals|**(3,585)**|(23)|
|Net investment (losses)/gains|**1,544**|(620)|
|**Market value at 31 March 2021**|**6,542**|5,653|
||||
|**Bonds, cash and alternatives**|||
|Market value at 1 April 2020|**8,312**|9,361|
|Acquisitions|**19,683**|8,146|
|Disposals|**(9,294)**|(9,176)|
|Net investment (losses)/gains|**79**|(19)|
|**Market value at 31 March 2021**|**18,780**|8,312|
||||
|**Total value at 31 March 2021**|**25,322**|13,965|
||||
|**Cost at 31 March 2021**|**24,501**|14,556|



Included in market value of investments is an amount for the Mencap Visitors scheme of £5.9m (2020: £5.3m). This amount is held in a separate investment fund for the purpose of funding the scheme in future years. The liability of the scheme is shown in note 21. 

||Equities and<br>multi-asset<br>funds|Bonds,cash<br>and<br>alternatives|**Total**|
|---|---|---|---|
||2021|2021|**2021**|
||£'000|£'000|**£'000**|
|**Group and Charity:**||||
|Equities|5,463|-|**5,463**|
|Multi-asset funds|1,079|-|**1,079**|
|Bonds|-|2,403|**2,403**|
|Alternatives|-|1,978|**1,978**|
|Cash|-|14,399|**14,399**|
|||||
|**Market value at 31 March 2021**|**6,542**|**18,780**|**25,322**|
|||||
|**Market value at 31 March 2020**|**5,653**|**8,312**|**13,965**|







## **15. Subsidiaries** 

The charity owns 100% of the issued capital of the following companies. Golden Lane Housing Limited is also a registered charity in its own right: 

|Subsidiary undertaking|Company<br>registration<br>number|Charity<br>registration<br>number|Principal activity|Net assets/<br>(liabilities)|
|---|---|---|---|---|
|||||£'000|
|Blue Sky Housing<br>Limited|4412276|-|Property development|-|
|Golden Lane Housing<br>Limited|3597323|1071097|Property management and<br>development|60,806|
|Mencap Limited|889191|-|Trading activities|-|
|Mencap Promotions<br>Limited|1016345|-|Promotional and other special<br>events|-|
|Mencap Trust Company<br>Limited|1233201|-|Discretionary trust<br>management|114|



All the above are registered in England and Wales. The governance of Golden Lane Housing, of which Royal Mencap Society is the sole member, is maintained by their board of trustees, who act to deliver the objectives of the charity. 

The above undertakings form part of the group consolidation. Mencap has no automatic right to the gross assets or reserves of Golden Lane Housing Limited. 

Blue Sky Housing Limited and Mencap Promotions Limited remained dormant throughout the year. 





## **16. Net income of group companies including consolidation entries** 

||Blue Sky<br>Housing<br>Limited|Mencap<br>Trust<br>Company<br>Limited|Mencap<br>Limited|Mencap<br>Promotions|**Total**<br>**2021**|Total 2020|
|---|---|---|---|---|---|---|
||£'000|£'000|£'000|£'000|**£'000**|£'000|
|**Trading subsidiaries**|||||||
|Turnover|-|543|299|-|**842**|982|
|Cost of sales|-|-|(212)|-|**(212)**|(345)|
|**Gross profit/(loss)**|**-**|**543**|**87**|**-**|**630**|637|
|Administration costs||(504)|(61)||**(565)**|(567)|
|**Net profit/(loss)**|**-**|**39**|**26**|**-**|**65**|70|
|Paid to Royal Mencap Society<br>undergift aid|-|-|(26)|-|**(26)**|(75)|
|Provision for tax|-|-|-|-|**-**|-|
|**Retained in subsidiaries**|**-**|**39**|**-**|**-**|**39**|(5)|



The costs of the above subsidiaries are included in the consolidated statement of financial activities under expenditure on raising funds, less any transactions between companies with the Mencap group. 

||Royal<br>Mencap<br>Society|Golden<br>Lane<br>Housing|**Total 2021**|Total 2020|
|---|---|---|---|---|
||£'000|£'000|**£'000**|£'000|
|**Charitable companies:**|||||
|Incoming resources|212,279|25,504|**237,783**|219,210|
|Resources expended|(189,569)|(15,469)|**(205,038)**|(194,496)|
|**Income/(expenditure) before**<br>**administration costs**|**22,710**|**10,035**|**32,745**|24,714|
|Administration costs|(15,215)|(4,631)|**(19,846)**|(17,337)|
||**7,495**|**5,404**|**12,899**|7,377|
|Net gains/(losses) on investments|1,623|-|**1,623**|(639)|
|**Net income/(expenditure)**|**9,118**|**5,404**|**14,522**|6,738|







## **17. Debtors** 

|**17. Debtors**|||||
|---|---|---|---|---|
||**Group**|Group|**Charity**|Charity|
||**2021**|2020|**2021**|2020|
||**£'000**|£'000|**£'000**|£'000|
|Trade debtors|**13,729**|15,047|**12,843**|14,285|
|Amount due from group undertakings|**-**|-|**3,472**|3,479|
|Other debtors|**792**|870|**752**|805|
|Prepayments|**1,672**|1,836|**1,041**|941|
|Accrued income|**12,853**|8,989|**12,292**|8,380|
||**29,046**|26,742|**30,400**|27,890|



Included in the net amounts due from group undertakings is a loan from the charity to Golden Lane Housing Limited for £2.42m (2020: £2.78m) of which £0.32m is due within one year. The loan is to be repaid in full over a period of 25 years from initial drawdown; capital paid quarterly, interest paid monthly and charged at an interest rate of 0.5% below Bank of England base rate. 

## **18. Creditors: amounts falling due within one year** 

|**18. Creditors: amounts falling due within one**|**year**||||
|---|---|---|---|---|
||**Group**|Group|**Charity**|Charity|
||**2021**|2020|**2021**|2020|
||**£'000**|£'000|**£'000**|£'000|
|Obligations under finance leases|**26**|38|**26**|38|
|Trade creditors|**5,190**|2,965|**4,725**|1,830|
|Taxation and social security costs|**2,915**|2,549|**2,915**|2,549|
|Other creditors|**3,439**|1,880|**3,436**|1,880|
|Accruals|**9,418**|6,081|**7,619**|4,721|
|Deferred income|**8,977**|8,755|**7,071**|6,966|
|Current portion of long term loans|**12,218**|1,174|**60**|60|
||**42,183**|23,442|**25,852**|18,044|



## **Deferred income movement** 

|**ferred income movement**|||
|---|---|---|
||**Group**|**Charity**|
||**£'000**|**£'000**|
|Balance at 1 April 2020|**8,755**|**6,966**|
|Amount released in the year|**(8,755)**|**(6,966)**|
|Amount deferred in the year|**8,977**|**7,071**|
|**Balance at 31 March 2021**|**8,977**|**7,071**|



Grants that have been received are treated as deferred income where there is a specific requirement in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period(s). 

At 31 March 2021, the charity holds £4,234,846 (2020: £2,147,132) on behalf of people we support. This balance has not been included within these financial statements. 





## **19. Creditors: amounts falling due after more than one year** 

||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2021**|2020|**2021**|2020|
||**£'000**|£'000|**£'000**|£'000|
|Obligations under finance leases, two to five years|**14**|29|**14**|29|
|Debenture loan|**23,000**|30,000|**-**|-|
|Bank loan|**19,801**|21,019|**660**|720|
||**42,815**|51,048|**674**|749|



## **Mencap** 

In 2007, Mencap obtained a loan for £1.5m, repayable in equal instalments over 25 years, at an interest rate of LIBOR plus 0.95%. As at 31 March 2021, the value of the loan stood at £0.72m. The loan agreement is secured by an unlimited guarantee between Royal Mencap Society, Mencap Limited, Mencap Promotions Limited and Mencap Trust Company Limited. It is further secured by a first legal charge over our property in Peterborough. 

## **Golden Lane Housing** 

During 2014 the company issued through the intermediary of Retail Charity Bond a new bond totalling £11m paying a yield of 4.375%. The bond issue was fully subscribed and the full £11m was duly received, the purpose being to purchase properties to rent to people with a learning disability. The funds have been fully utilised in this purpose. The bond is repayable on 30 September 2021. 

In the year ended 31 March 2018, the company signed an £18m Bond facility with RCB (paying a yield of 3.9% for 10 years) of which £10m were issued to refinance the £10M 2013 Bond and £8m were retained bonds. In 2019 £4M from the 2017 retained bonds were issued and the final £4m were issued in January 2021 

A £5m loan is held with RBS. This matures in 2027 and interest is payable at 2.5%. 

## **Loans** 

In August 2014 two loans held with Nationwide were refinanced, leaving Golden Lane Housing with a fixed term loan of £452k secured on freehold land and buildings. The interest rate is fixed until June 2025. 

The remaining loans are provided by Triodos and are secured on freehold land and buildings. £19.85m of the total is subject to fixed interest rates at 31 March 2021 with the remaining balance subject to variable interest rates. 

|**Loan**|**End Date**<br>**Balance in**<br>**£m**|**Interest**<br>**Rate(%)**|**Fixed/**<br>**Variable**|
|---|---|---|---|
|Triodos LOAN|4 Oct 2031<br>0.5|0.850%|Variable|
|Triodos LOAN|26 June 2025<br>0.2|0.850%|Variable|
|Triodos LOAN|17 May 2037<br>2.3|3.500%|Variable|
|Triodos LOAN|30 June 2036<br>5.7|3.500%|Variable|
|Triodos LOAN|4 Oct 2031<br>2.6|3.340%|Fixed|
|Triodos LOAN|26 July 2032<br>1.7|3.340%|Fixed|
|Triodos LOAN|17 May 2037<br>1.2|5.240%|Fixed|
|Triodos LOAN|17 May 2037<br>5.7|5.410%|Fixed|







The group loans are repayable as follows: 

||**2021**|2020|
|---|---|---|
||**£'000**|£'000|
|Under 1 year|**12,218**|1,174|
|Between 1-2 years|**1,266**|12,218|
|Between 2-5 years|**4,010**|3,948|
|Over 5 years|**37,525**|34,852|
||**55,019**|52,192|



## **20. Financial Instruments** 

||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2021**|2020|**2021**|2020|
||**£'000**|£'000|**£'000**|£'000|
|Financial assets measured at amortised cost (a)|**48,624**|40,756|**37,648**|34,045|
|Financial assets measured at fair value (b)|**25,322**|13,965|**25,322**|13,965|
|Financial liabilities measured at amortised cost (c)|**(73,106)**|(63,186)|**(16,540)**|(9,278)|



- (a) Financial assets include cash, trade debtors, intercompany debtors, other debtors and accrued income 

- (b) Financial assets held at fair value consist of investments. Fair value is the market value of these investments as determined and quoted in an active market. 

- (c) Financial liabilities include trade creditors, other creditors, finance leases, bonds, loans and accruals. 

The group's income, expense, gains and losses in respect of financial instruments are summarised below: 

||**Income **|**Expense **|**Gains/**<br>**(losses)**|Income|Expense  <br>(|Gains/<br>losses)|
|---|---|---|---|---|---|---|
||**2021**|**2021**|**2021**|2020|2020|2020|
||**£'000**|**£'000**|**£'000**|£'000|£'000|£'000|
|Financial assets measured at<br>amortised cost|**10**|**-**|**-**|32|-|-|
|Financial assets measured at fair<br>value|**184**|**-**|**(1,623)**|303|-|(639)|
|Financial liabilities measured at<br>amortised cost|**-**|**(2,183)**|**-**|-|(2,214)|-|







## **21. Provision for liabilities and charges** 

## **(a) Group** 

|**(a) Group**||||||
|---|---|---|---|---|---|
||Mencap<br>Visiting<br>Service|Dilapidations|Employee<br>benefits|Other|**Total**|
||£'000|£'000|£'000|£'000|**£'000**|
|**Balance at 31 March 2020**|2,627|1,562|726|284|**5,199**|
|Amount utilised in the year|(287)|-|(726)|(25)|**(1,038)**|
|Amount released in the year|(206)|(120)|-|(213)|**(539)**|
|Amount provided in the year|-|112|1,403|122|**1,637**|
|**Balance at 31 March 2021**|**2,134**|**1,554**|**1,403**|**168**|**5,259**|



## **(b) Charity** 

|**(b) Charity**||||||
|---|---|---|---|---|---|
||Mencap<br>Visiting<br>Service|Dilapidations|Employee<br>benefits|Other|**Total**|
||£'000|£'000|£'000|£'000|**£'000**|
|**Balance at 31 March 2020**|2,627|1,253|726|233|**4,839**|
|Amount utilised in the year|(287)|-|(726)|(25)|**(1,038)**|
|Amount released in the year|(206)|(78)|-|(212)|**(496)**|
|Amount provided in the year|-|17|1,403|122|**1,542**|
|**Balance at 31 March 2021**|**2,134**|**1,192**|**1,403**|**118**|**4,847**|



The provision for the Mencap Visiting Service is the accumulated costs of providing the visiting service for all of its beneficiaries for the remaining expected need of the service. The costs charged against this provision represent the annual costs of running the service which will run for the length of the life of the beneficiaries. This scheme is closed to new members'. 

## **22. Analysis of assets and liabilities between funds** 

||**Unrestricted**<br>**funds**|**Restricted**<br>**funds**|**Total 2021**|Unrestricted<br>funds|Restricted<br>funds|Total 2020|
|---|---|---|---|---|---|---|
|Group|**£'000**|**£'000**|**£'000**|£'000|£'000|£'000|
|Fixed assets|**116,495**|**34,005**|**150,500**|103,697|31,513|135,210|
|Current assets|**42,189**|**8,156**|**50,345**|38,336|4,303|42,639|
|Liabilities|**(89,606)**|**(3,223)**|**(92,829)**|(78,042)|(2,988)|(81,030)|
|**Total**|**69,078**|**38,938**|**108,016**|63,991|32,828|96,819|







## **23. Group funds** 

||Balance 1<br>April<br>2019|Incoming<br>resources|Outgoing<br>resources|Transfers|Gains<br>and<br>losses|**Balance at**<br>**31 March**<br>**2020**|
|---|---|---|---|---|---|---|
||£'000|£'000|£'000|£'000|£'000|**£'000**|
|**Restricted**|||||||
|Homes|262|118|(56)|7|-|**331**|
|Learning and Development<br>restricted training|1|-|(6)|5|-|**-**|
|Mencap Visiting Service|451|189|1,944|-|(403)|**2,181**|
|NewBe project|3,518|-|(85)|-|-|**3,433**|
|Northern Ireland Housing<br>Executive - SupportingPeople|-|690|(672)|10|-|**28**|
|Research Fund|19|-|-|(19)|-|**-**|
|Rothenberg Fellowship|110|-|-|(69)|-|**41**|
|Rothenberg Memorial Trust|28|-|-|(28)|-|**-**|
|Service provision -<br>Communities & Programmes|904|807|(942)|55|-|**824**|
|Service provision - Lifestyles &<br>Work|272|3,291|(2,456)|5|-|**1,112**|
|Service provision - Personal<br>Support|393|1,747|(1,737)|(205)|-|**198**|
|Service provision - Strategy &<br>Influence|350|913|(926)|32|-|**369**|
|Service provision - other|1,290|1,550|(1,311)|(56)|-|**1,473**|
|Service provision - Golden<br>Lane Housing|20,719|2,061|-|31|-|**22,811**|
|Young Ambassadors|48|-|(21)|-|-|**27**|
|Special contingency|20|-|-|(20)|-|**-**|
||**28,385**|**11,366**|**(6,268)**|**(252)**|**(403)**|**32,828**|
|**Unrestricted**|||||||
|General|58,989|208,548|(206,108)|(2,393)|(236)|**58,800**|
|Designated reserves:|||||||
|- Seed capital|75|-|-|-|-|**75**|
|- Non repayable grants|5,344|-|-|(83)|-|**5,261**|
|- Tenants support fund|296|-|-|584|-|**880**|
|- House to Home funds|38|278|-|-|-|**316**|
|Pension deficit|(10,670)|-|(444)|2,144|7,629|**(1,341)**|
||**54,072**|**208,826**|**(206,552)**|**252**|**7,393**|**63,991**|
||||||||
|**Total funds**|**82,457**|**220,192**|**(212,820)**|**-**|**6,990**|**96,819**|







||Balance 1<br>April<br>2020|Incoming<br>resources|Outgoing<br>resources|Transfers|Gains<br>and<br>losses|**Balance at**<br>**31 March**<br>**2021**|
|---|---|---|---|---|---|---|
||£'000|£'000|£'000|£'000|£'000|**£'000**|
|**Restricted**|||||||
|Homes|331|14|(15)|33|-|**363**|
|Mencap Visiting Service|2,181|119|181|-|958|**3,439**|
|NewBe project|3,433|-|(81)|(5)|-|**3,347**|
|Northern Ireland Housing<br>Executive - SupportingPeople|28|663|(671)|19|-|**39**|
|Rothenberg Fellowship|41|-|-|(8)|-|**33**|
|Service provision -<br>Communities & Programmes|824|3,116|(814)|29|-|**3,155**|
|Service provision - Lifestyles &<br>Work|1,112|3,092|(2,211)|(628)|-|**1,365**|
|Service provision - Personal<br>Support|198|3,803|(3,868)|41|-|**174**|
|Service provision - Strategy &<br>Influence|369|716|(773)|36|-|**348**|
|Service provision - other|1,473|2,363|(1,456)|(506)|-|**1,874**|
|Service provision - Golden<br>Lane Housing|22,811|2,065|-|(75)|-|**24,801**|
|Young Ambassadors|27|-|-|(27)|-|**-**|
||**32,828**|**15,951**|**(9,708)**|**(1,091)**|**958**|**38,938**|
|**Unrestricted**|||||||
|General|58,800|222,206|(215,589)|(10,003)|665|**56,079**|
|Designated reserves:|||||||
|- Strategic Investment|-|-|-|9,000|-|**9,000**|
|- Seed capital|75|-|-|-|-|**75**|
|- Non repayable grants|5,261|74|-|(53)|-|**5,282**|
|- Tenants support fund|880|-|-|-|-|**880**|
|- House to Home funds|316|18|-|-|-|**334**|
|Pension deficit|(1,341)|-|(10)|2,147|(3,368)|**(2,572)**|
||63,991|**222,298**|**(215,599)**|**1,091 **|**(2,703)**|**69,078**|
||||||||
|**Total funds**|96,819|**238,249**|**(225,307)**|**- **|**(1,745)**|**108,016**|







## **Restricted funds** 

Restricted funds include the following unexpended balances of donations and grants held in trust to be applied for specific purposes. Mencap holds sufficient resources in an appropriate form to enable each fund to be applied in accordance with its restrictions: 

- Homes - specific bequests to residential care homes. 

- Learning and Development Restricted Training - extra funding provided by the Big Lottery Fund to concentrate on improving one or two particular aspects of Mencap’s skills and knowledge in a way that is likely to have lasting impact on the organisation’s work. 

- Mencap Visiting Service - special trust used to provide regular visitors to people with a learning disability. 

- NewBe Project - capital project in Northern Ireland funding the construction of a new building for an early intervention centre for children with a learning disability and their families, and a new headquarters for Mencap in Northern Ireland. 

- Research Fund - used to sponsor medical research into the causes of learning disabilities. 

- Service provision - restricted by funders and donors to specific areas of Mencap and Golden Lane Housing's core services. In each of the areas listed, restricted funds are utilised for the purposes specified in their restriction to further Mencap's activities. More information about Mencap's work in these areas, funded by a combination of restricted and unrestricted funds, can be found in the Trustee's report. 

- Young Ambassadors - supports young people aged 16 to 25 with a learning disability who volunteer with Mencap as part of a 6-month programme, to support the work Mencap does, and to develop their employability skills. 

## **Designated funds accounts adjustment to include new designated funds** 

£9m unrestricted funds have been specifically designated by Mencap, with £4m due to be spent in the next year. The remaining £5m to be spent over the next 5 years. 

Unrestricted funds have been specifically designated by Golden Lane Housing for the following purposes: 

- Maintenance funds - for prudence, Golden Lane Housing held an amount in designated funds to cover the potential dilapidation liability for all leased properties. During the year, it decided to make a specific provision for dilapidations and therefore released this designated fund. 

- Seed capital - an amount is designated to be used in adapting properties for existing tenants. It has increased due to further donations during the year. This will be used where required to make future schemes viable, and the timing is therefore uncertain. 

- House to Home – raised by the Royal Mencap Society and granted to Golden Lane Housing to support property adaptations 

- Non repayable grants - this amount has been used to finance the purchase and development of properties held in fixed assets. The properties are depreciated over 100 years. Funds will be reinvested in capital should the properties be disposed of, but there are currently no plans to do so. 

- Tenants support fund - this fund was set up in 2012/13 to cover possible future changes to government policy regarding the payment of exempt rents. It will be maintained at the same level until the impact of universal credit on Golden Lane Housing is clearly determined. The timing of this is uncertain. 





## **Transfers** 

In addition to the transfers related to restricted and designated funds detailed above, £2,100,000 was transferred from general unrestricted reserves to the pension deficit during the year. This corresponds with the actual cash payments made by the group to reduce the pension deficit. 

## **24. Pension Scheme** 

Mencap operates a number of pension schemes for the benefit of its employees. At 31 March 2009, Mencap's defined benefit scheme was closed to future accruals. This means that Mencap will fund the benefits that staff have earned to that date but does not offer the same benefit moving forward due to the inherent risk involved in running this type of scheme. 

Staff are, however, able to save for their retirement through a defined contribution scheme to which Mencap contributes. All contributions are expensed in the year that they are made. 

In addition to the above, Mencap participates in the Nottinghamshire County Council Pension Fund in respect of a small number of staff who have transferred over to Mencap. Mencap participates in this scheme by way of an admission agreement. In relation to this scheme Mencap currently has 19 active employees. Full provision has been made in the financial statements for this scheme. However, as the liability is not material, detailed disclosure has been limited so as not to distort or overstate the importance of this scheme within Mencap's overall finances. 

At 31 March 2016, Mencap was also participating in the Staffordshire County pension fund in respect of a single active member of staff. This employee has now left Mencap, but a management estimate of the scheme liability is included pending the final liability being settled. 

## **Mencap pension scheme** 

This scheme is valued annually for the purposes of the annual report and accounts. This valuation, which is carried out under specific accounting rules and detailed in full below, is made so that Mencap can account for the pension liability on its balance sheet. 

The Trustees of the pension scheme undertake their own formal valuation once every three years. This valuation provides the basis for agreeing the amounts that Mencap will pay each year to fund the scheme. The last valuation for this purpose was undertaken in March 2020 and Mencap agreed to continue with a schedule of contributions to settle the pension deficit over a period of 14 years. 

From the year ended March 2016 and going forward Mencap agreed to make the following cash payments to the scheme: 

**For the period 1 April 2015 to 31 March 2016 £ 4 million** 

**For the periods 1 April 2016 to 31 March 2028 £ 2.1m per annum** 

**In 2021 the following amendment was made:** 

**For the periods 1 April 2021 to 31 March 2028 £1.8m per annum** 

At the end of March 2021, in the annual Scheme valuation, the total scheme liabilities were valued at £149.7 million and the assets at £152.1 million. The net surplus is therefore £2.4 million. However, the triennial valuation still shows a sizeable deficit. The annual accounts will typically show a stronger 





position than the triennial valuation. This is because the accounting standards require that a fair view of the position (broadly, neither overstating, nor understating the funding level). Whereas triennial valuations, which are used to determine contributions to the Plan, are overseen by the Pensions Regulator which requires a prudent view of the position (i.e. understating the funding level) to ensure schemes are not underfunded This surplus in the annual valuation cannot be withdrawn from the Scheme until the end of the pension, therefore the valuation in the Balance Sheet is recorded at a no-surplus, no-deficit position. The valuation at 31/3/20 was a net surplus of £5.0m. Again, it was recorded as a no surplus no deficit position 

The main reasons for the change are as follows: 

- A higher inflation assumption. (2021 RPI 3.3%. 2020:2.7%) Many benefits in the Plan are guaranteed to increase in line with inflation, so a higher inflation means more funds will be needed for future benefit. 

- Mencap contributed £2.1m per year (£1.8m per year after 1 April 2021) into the Scheme reducing the deficit. 

- Investment returns realised by the Scheme were better than expected resulting in more funds being added to the Scheme 

The following assumptions have been used to place a value on the retirement benefit obligations of the charity: 

## **Financial Assumptions** 

|**ancial Assumptions**|||
|---|---|---|
||**31 March 2021**|31 March 2020|
||**% per annum**|% per annum|
|Retail price inflation (% p.a.)|**3.30%**|2.70%|
|Consumer price inflation (% p.a.)|**2.55%**|1.80%|
|Discount rate|**2.00%**|2.30%|



The Demographic assumptions used are: 

## **Longevity assumptions as at 31 March 2021** 

||**Male and Female**|
|---|---|
|Base table|2019 VITA tables|
|Future improvements|CMI 2019 core model with a long-term rate of improvement of 1.5%, A<br>parameter of 0.25% and a smoothing parameter of Sκ =7.0|



## **Life expectancies as at:** 

|**e expectancies as at:**|||||
|---|---|---|---|---|
||**31 March 2021**||31 March|2020|
|Males (M) or Females (F)|**M**|**F**|M|F|
|Average future life expectancy (in years) for a pensioner aged<br>65 at 31 March 2020|**21.8**|**24.4**|22.0|25.1|
|Average future life expectancy (in years) at age 65 for a non-<br>pensioner aged 45 at 31 March 2020|**23.0**|**25.7**|24.0|26.8|







## Based on these assumptions the balance sheet position is as follows: 

## **Assets** 

|**sets**|||
|---|---|---|
||**Fund value**|Fund value|
||**31 March 2021**|31 March 2020|
||**£'000**|£'000|
|Liability driven investment|**39,259**|23,238|
|Investment grade credit (corporate bonds)|**83,692**|86,522|
|Diversified growth fund|**-**|9,927|
|Infrastructure|**13,676**|15,040|
|Property|**9,665**|-|
|Insurance contracts|**2,836**|2,670|
|Cash and cash equivalents|**2,980**|4,144|
|**Total value of assets**|**152,108**|141,541|
|Actuarial (value) of liabilities|**(149,690)**|(136,493)|
|**Surplus/(deficit) of funded Plan liabilities**|**2,418**|5,048|
|Irrecoverable (surplus)|**(2,418)**|(5,048)|
|**Surplus/(deficit) recognised in balance sheet**|**-**|-|
|**Net pension asset/(liability)**|**-**|-|



## **Reconciliation of Plan benefit obligation** 

|**conciliation of Plan benefit obligation**|||
|---|---|---|
||**31 March 2021 **|31 March 2020|
||**£'000**|£'000|
|Opening defined benefit obligation|**136,493**|147,735|
|Interest cost|**3,088**|3,494|
|Actuarial (gains)/losses|**14,386**|(10,399)|
|Past service cost|**11**|-|
|Benefits (paid)|**(4,288)**|(4,337)|
|**Closing defined benefit obligation**|**149,690**|136,493|







## **Reconciliation of fair value of Plan assets** 

|**conciliation of fair value of Plan assets**|||
|---|---|---|
||**31 March 2021 **|31 March 2020|
||**£'000**|£'000|
|Opening fair value of Plan assets|**141,541**|**138,828**|
|Interest income|**3,228**|**3,305**|
|Contributions by Royal Mencap Society|**2,100**|**2,100**|
|Actual return on assets excluding amounts included in net interest|**9,527**|**1,645**|
|Benefits (paid)|**(4,288)**|**(4,337)**|
|**Closing fair value of Plan assets**|**152,108**|**141,541**|



## **Analysis of amount charged to operating profit** 

|**alysis of amount charged to operating profit**|||
|---|---|---|
||**31 March 2021 **|31 March 2020|
||**£'000**|£'000|
|Past service (cost)|**(11)**|-|
|**Total operating charge**|**(11)**|-|



## **Analysis of amount credited to other finance income** 

|**alysis of amount credited to other finance income**|||
|---|---|---|
||**31 March 2021 **|31 March 2020|
||**£'000**|£'000|
|Interest income on Plan assets|**3,228**|3,305|
|(Interest) on Plan liabilities|**(3,088)**|(3,494)|
|**Net interest on defined benefit liability**|**140**|(189)|
|**Total amount charged to profit & loss (total operating charge**<br>**less net interest)**|**129**|(189)|







## **Analysis of amount recognised in Other Comprehensive Income (OCI)** 

||**31 March 2021 **|31 March 2020|
|---|---|---|
||**£'000**|£'000|
|Actual return on assets excluding amounts included in net<br>interest|**9,527**|1,645|
|Actuarial gains/(losses) on Plan obligations|**(14,386)**|10,399|
|**Remeasurement gain/(loss) in Plan**|**(4,859)**|12,044|
|Decrease/(increase) in irrecoverable surplus from membership fall<br>and other factors|**2,630**|(5,048)|
|**Remeasurement gain/(loss) recognised in OCI**|**(2,229)**|6,996|



## **Sensitivity analysis** 

## **Change in assumptions compared with 31 March 2021 actuarial assumptions:** 

||**Actuarial value of liabilities on**<br>**31 March 2021**|
|---|---|
||**£'000**|
|Base case|**149,690**|
|-0.5% decrease in discount rate|**163,536**|
|1-year increase in member life expectation|**155,678**|
|+0.5% change in inflation|**158,770**|



## **Local authority pension schemes** 

Nottinghamshire County Council Pension Scheme 

The Nottinghamshire County Council Pension Fund is a defined benefit scheme with 18 members at 31 March 2021. The assets of the scheme are held separately from those of the charity in an independently administered fund. 

The agreed employer's contribution rate for the year to March 2021 was 14.4% and this was expensed during the year. Contributions have been set at 14.4% for 2021/22. 

The estimated asset allocation at 31 March 2021 revealed that Mencap's share of liabilities of the scheme exceeded the value of Mencap's share of the scheme's assets by £2.52m (2020: £1.29 million). This change in deficit has been treated as an expense during the year and the deficit is included in the balance sheet. 

Staffordshire County pension fund 

The Staffordshire County pension fund is a defined benefit scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. 

The pension scheme valuation at 31 March 2014 indicated that Mencap's share of liabilities of the scheme exceed the value of Mencap's share of the scheme's assets by £48,000. As any movements in the deficit would not be material to the accounts, a new valuation has not been obtained for the year to 31 March 2021. 

Mencap had no active members in the pension scheme in the year to 31 March 2021 and did not expense employer contributions during the year. 





## **Other local government pension schemes** 

Mencap also participates in four other local government pension schemes. However, as there are no remaining active members, and in view of the cost of obtaining disclosures and the likely liability being immaterial in the context of overall Mencap results, no account or disclosures are made for these four schemes. 

|Dyfed Pension Fund|No active members|
|---|---|
|Clwyd Pension Fund (Flintshire)|No active members|
|Powys Pension fund|No active members|
|Shropshire County Pension Fund|No active members|



An actuarial valuation was obtained for the Nottinghamshire County Council Pension Scheme the following assumptions have been used in its valuation: 

## **Financial Assumptions** 

||**31 March 2021**|31 March 2020|
|---|---|---|
||**% p.a.**|% p.a.|
|RPI increases|**3.15%**|2.60%|
|CPI increases|**2.85%**|1.80%|
|Salary increases|**3.85%**|2.80%|
|Pension increases|**2.85%**|1.80%|
|Discount rate|**2.05%**|2.35%|



The demographic assumptions used are: 

## **Life expectancy from age 65** 

|**e expectancy from age 65**|||
|---|---|---|
||**31 March 2021**|31 March 2020|
|_Retiring today:_|||
|Males|**21.6**|21.8|
|Females|**24.3**|24.4|
|_Retiring in 20 years:_|||
|Males|**22.9**|23.2|
|Females|**25.7**|25.8|



Based on these assumptions, the balance sheet position is as follows: 

||**31 March 2021**|31 March 2020|
|---|---|---|
||**£'000**|£'000|
|Present value of the defined benefit obligation|**(5,497)**|(3,700)|
|Fair value of Fund assets (bid value)|**2,973**|2,407|
|**Deficit**|**(2,524)**|(1,293)|







## **Reconciliation of present value of the defined benefit obligation** 

||**31 March 2021**|31 March 2020|
|---|---|---|
||**£'000**|£'000|
|Opening defined benefit obligation|**3,700**|4,349|
|Current service cost|**108**|123|
|Interest cost|**87**|106|
|Change in financial assumptions|**1,654**|(529)|
|Change in demographic assumptions|**(39)**|(105)|
|Experience loss/(gain) on defined benefit obligation|**-**|(262)|
|Estimated benefits paid net of transfers in|**(33)**|(43)|
|Past service costs, including curtailments|**-**|42|
|Contributions by Scheme participants|**20**|19|
|**Closing defined benefit obligation**|**5,497**|3,700|



## **Reconciliation of the fair value of Fund assets** 

|**conciliation of the fair value of Fund assets**|||
|---|---|---|
||**31 March 2021**|31 March 2020|
||**£'000**|£'000|
|Opening fair value of Fund assets|**2,407**|2,634|
|Interest on assets|**57**|65|
|Return on assets less interest|**476**|(305)|
|Other actuarial gains/(losses)|**-**|(6)|
|Administration expenses|**(1)**|(1)|
|Contributions by employer including unfunded|**47**|44|
|Contributions by Fund participants|**20**|19|
|Estimated benefits paid plus unfunded net of transfers in|**(33)**|(43)|
|Settlement prices received/(paid)|**-**|-|
|Closing fair value of Fund assets|**2,973**|2,407|
|**alysis of amount charged to operating profit**|||
||**31 March 2021**|31 March 2020|
||**£'000**|£'000|
|Current service (cost)|**(108)**|(165)|
|Administration costs|**(1)**|(1)|
|**Total operating charge**|**(109)**|(166)|



## **Analysis of amount charged to operating profit** 





|**Analysis of amount credited to other finance income**<br>**31 March 2021 **<br>**£'000**<br>Interest income on Plan assets<br>**-**<br>(Interest) on Plan liabilities<br>**(30)**<br>**Net interest on net define benefit liability**<br>**(30)**<br>**Total amount charged to profit & loss (total operating charge**<br>**less net interest)**<br>**(139)**<br>**Analysis of amount recognised in Other Comprehensive Income (OCI)**<br>**31 March 2021 **<br>**£'000**<br>Return on Plan assets in excess of interest<br>**476**<br>Other actuarial gains/(losses) on assets<br>**-**<br>Change in financial assumptions<br>**(1,654)**<br>Change in demographic assumptions<br>**39**<br>Experience gain/(loss) on defined benefit obligation<br>**-**<br>**Remeasurement of the net assets/ (defined liability)**<br>**(1,139)**|**Analysis of amount credited to other finance income**<br>**31 March 2021 **<br>**£'000**<br>Interest income on Plan assets<br>**-**<br>(Interest) on Plan liabilities<br>**(30)**<br>**Net interest on net define benefit liability**<br>**(30)**<br>**Total amount charged to profit & loss (total operating charge**<br>**less net interest)**<br>**(139)**<br>**Analysis of amount recognised in Other Comprehensive Income (OCI)**<br>**31 March 2021 **<br>**£'000**<br>Return on Plan assets in excess of interest<br>**476**<br>Other actuarial gains/(losses) on assets<br>**-**<br>Change in financial assumptions<br>**(1,654)**<br>Change in demographic assumptions<br>**39**<br>Experience gain/(loss) on defined benefit obligation<br>**-**<br>**Remeasurement of the net assets/ (defined liability)**<br>**(1,139)**||||
|---|---|---|---|---|
|||**31 March 2021 **||31 March 2020|
|||**£'000**||£'000|
||Interest income on Plan assets|**-**||-|
||(Interest) on Plan liabilities|**(30)**||(41)|
||**Net interest on net define benefit liability**|**(30)**||(41)|
||**Total amount charged to profit & loss (total operating charge**<br>**less net interest)**|**(139)**||(207)|
||||||
||||**31 March 2021 **|31 March 2020|
||||**£'000**|£'000|
||Return on Plan assets in excess of interest||**476**|(305)|
||Other actuarial gains/(losses) on assets||**-**|(6)|
||Change in financial assumptions||**(1,654)**|529|
||Change in demographic assumptions||**39**|105|
||Experience gain/(loss) on defined benefit obligation||**-**|262|
||**Remeasurement of the net assets/ (defined liability)**||**(1,139)**|585|



|**Summary of amounts disclosed in the accounts**<br>**Amount recognised in operating profit/(loss)**<br>**Mencap pension scheme**<br>**Nottinghamshire County Council Pension Fund**<br>**Amount recognised in finance income**<br>**Mencap pension scheme**<br>**Nottinghamshire County Council Pension Fund**<br>**Amount recognise in other recognised gains/(losses)**<br>**Mencap pension scheme**<br>**Nottinghamshire County Council Pension Fund**|**Summary of amounts disclosed in the accounts**<br>**Amount recognised in operating profit/(loss)**<br>**Mencap pension scheme**<br>**Nottinghamshire County Council Pension Fund**<br>**Amount recognised in finance income**<br>**Mencap pension scheme**<br>**Nottinghamshire County Council Pension Fund**<br>**Amount recognise in other recognised gains/(losses)**<br>**Mencap pension scheme**<br>**Nottinghamshire County Council Pension Fund**|||
|---|---|---|---|
|||**2021**|2020|
|||**£'000**|£'000|
||**Mencap pension scheme**|**(11)**|-|
||**Nottinghamshire County Council Pension Fund**|**(109)**|(166)|
|||**(120)**|(166)|
|||||
|||**2021**|2020|
|||**£'000**|£'000|
||**Mencap pension scheme**|**140**|(189)|
||**Nottinghamshire County Council Pension Fund**|**(30)**|(41)|
|||**110**|(230)|
|||||
|||**2021**|2020|
|||**£'000**|£'000|
||**Mencap pension scheme**|**(2,229)**|6,996|
||**Nottinghamshire County Council Pension Fund**|**(1,139)**|585|
|||**(3,368)**|7,581|







## **Defined benefit pension liability** 

|**fined benefit pension liability**|||
|---|---|---|
||**2021**|2020|
||**£'000**|£'000|
|**Mencap pension scheme**|**-**|-|
|**Nottinghamshire County Council Pension Fund**|**(2,524)**|(1,293)|
|**Staffordshire County Pension Fund**|**(48)**|(48)|
||**(2,572)**|(1,341)|



## **25. Related Parties** 

Donations totalling £7,392 were received from related parties during the year without conditions. 

## **Group companies** 

During the year, the following transactions took place between Royal Mencap Society and its subsidiaries: 

- Mencap Trust Company paid its annual management fee to the charity £368,592 

- Mencap Limited paid annual earnings of £26,291 to the charity by way of gift aid 

- A total of £255,773 of other expenses incurred within the group were reallocated between the charity and its subsidiaries 

At 31 March 2021, the following intercompany balances were outstanding between the charity and its subsidiaries: 

||**2021**|2020|
|---|---|---|
||**£'000**|£'000|
|Golden Lane Housing Limited - loan|**2,416**|2,776|
|Golden Lane Housing Limited - other|**593**|236|
|Mencap Limited|**20**|33|
|Mencap Promotions Limited|**-**|-|
|Mencap Trust Company|**443**|432|
||||
||**3,472**|3,477|







## **26. Volunteers** 

During the year, Mencap received the generous donation of time from a great many volunteers. They provided contributions to a number of activities, as follows: 

||**2021**|
|---|---|
||**Number of volunteers**|
|**Raising funds:**||
|Raising funds|**-**|
|Trading|**469**|
|**Total raising funds**|**469**|
|||
|**Charitable activities:**||
|Reducing stigma and discrimination|**-**|
|Social care|**88**|
|Supporting friendships and relationships|**210**|
|Improving health|**-**|
|Early intervention|**17**|
|Employment|**58**|
|Other|**22**|
|**Total charitable activities**|**395**|
||**864**|



## **27. Capital commitments** 

At 31 March 2021, the group has the following capital commitments. All are commitments of Golden Lane Housing Ltd: 

||**2021**|2020|
|---|---|---|
||**£'000**|£'000|
|Capital expenditure contracted but not provided for in the<br>financial statements|**197**|236|
|Capital expenditure authorised by the board but not contracted for|**10,000**|10,000|
||**10,197**|10,236|



These commitments are expected to be financed with: 

||**2021**|2020|
|---|---|---|
||**£'000**|£'000|
|Cash reserves|**197**|**1,236**|
|Proceeds from the sale of properties|**-**|**5,000**|
|Committed loan facilities|**10,000**|**4,000**|
||**10,197**|**10,236**|



The above amounts include the full cost of shared ownership properties contracted for. 





## **28. Contingent liabilities** 

At the 31[st] March 2021 there were no contingent liabilities. 














## **29. Income** 

(a)Included in Trust income is income from: 

||**Total 2021**|
|---|---|
||**£’000**|
|TheBay Tree Charitable Trust|**30**|
|BBC Children in Need|**6**|
|Bridgewater Charitable Trust|**26**|
|The CityBridget Trust|**70**|
|CommunityFoundation for Wales|**5**|
|Co-op Foundation|**35**|
|Department of Health and Social Care|**495**|
|Haworth Holt Bell Solicitors|**10**|
|Heritage LotteryFund|**6**|
|Hillingdon Community Trust|**13**|
|Miss Joan Tanner Charitable Settlement|**12**|
|John James Bristol Foundation|**13**|
|The Legal Education Foundation|**7**|
|Marlene Gabriel Charitable Trust|**5**|
|NationalLottery Community Fund|**100**|
|National LotteryCommunityFunding|**10**|
|Office National Statistics|**17**|
|Oliver Ford Trust|**15**|
|The Pears Foundation|**100**|
|PearsDCMS Community Match Challenge|**448**|
|Miss S M G Ross Charitable Trust|**38**|
|The Westfield Health Charitable Trust|**10**|
|The Wolfson Foundation|**180**|
|The Zochonis Charitable Trust.|**50**|







- (b)Included in Community/ Big Lottery Fund is income from: 

|Included in Community/ Big Lottery Fund is income from:||
|---|---|
||**Total 2021**|
||**£’000**|
|City ofBradford MDC|**32 **|
|||
|HealthEducationEngland|**122**|
|||
|HeritageLottery Fund|**53**|
|||
|National LotteryCommunityFund|**140**|







## (c)Included in Organisations raising funds is income from: 

|Included in Organisations raising funds is income from:||
|---|---|
||**Total 2021**|
||**£’000**|
|Advent International|**403**|
|Association ofBritish Insurers|**2,581 **|
|BarclaysBank|**100**|
|BGC Brokers LP|**79**|
|Cambridgeshire Community Foundation|**13**|
|The G A Y Foundation|**22**|
|Payden & Rygel|**100**|
|St John's Wood Business Association|**12**|
|Sweet CausesLtd|**13**|
|Virgin Money|**232**|



## (d)Included in Gifts in Kind is income from: 

||**Group**<br>**2021**|
|---|---|
||**£’000**|
|Adesse|**16**|
|Mailforce|**1,820**|
|Masks for NHS Heroes|**41**|
|Safeaid|**36**|
|Victoria Square|**7**|



## (e)Included in Income from Charitable activities is income from: 

||**Group2021**|
|---|---|
||**£’000**|
|**Infectious Control Grants**|**2730**|
|**Sport England**|**435**|
|**Belfast Health and Social Care Trusts for Children and adults’ services in NI**|**267**|
|**Dept of Health(NI)**|**83**|
|**Northern Health and Social Care Trusts for advocacy, children, adults’ services**||
|**in NI**|**23**|
|**Special EU Programmes Body**|**362 **|
|||
|**Education Authority for Youth Services in NI**|**47**|
|||
|**Early Years for Children’s Services in NI**|**55**|
|**Disability Action for Employment Support in NI**|**7**|
|||
|**Barnardos- DFC Seasonal Appeal Re: Covid**|**10**|
|||
|**Health & Social Care Board -Summer Scheme Covid Grant**|**7**|







## **30. Events after the end of the reporting period** 

There are no adjusting events up to the date of signing of the accounts. There is one non-adjusting post balance sheet events relating to our subsidiary Golden Lane Housing: 

1. On the 1[st] July 2021 Golden Lane Housing issued a £15million of 3.25% social bonds due 2031, from special purpose issuer Retail Charity Bonds PLC (“RCB”) managed by Allia C&C. £11 million of the bonds have been sold to investors with a further £4 million will be retained and may be sold at a later date to raise additional funding for the Charity as required. The proceeds of the issue will be used by the Charity to further its charitable objectives, including the re-financing of a previous loan from RCB and the acquisition and/or adaptation of housing for people with one or more learning disabilities.