**L’ARCHE IN THE UK OUR STORY 2020/2021** 

_**Annual Report and Financial Statements for the year to 31[st] July 2021**_ 




## **THIS IS OUR STORY** 

**We got together with members of our 11 L’Arche Communities to talk about a year like no other. This is what people said.** 

## _**“It was hard”**_ 

It felt we were in lockdown forever. We tried to keep everyone safe. 

It was boring.  Over a year without going to work. The Government treated us completely differently to people without a disability. It was lonely.  We couldn’t see our families. And then only through a window. I spent a lot of time in my flat – knitting, drawing, banging pots. 

Face masks are so frustrating – I can’t read the expressions of people supporting me. 

## _**“I don’t know how we did it, but somehow we managed”**_ 

We had lots of cups of tea in the garden.  Lots. We welcomed new national and Community leaders. Some generous donors helped us make things work better. We did lots of funny things to make each other laugh. We had to get creative.  Coffee on Zoom.  Cooking on Zoom. Everything on Zoom! Walking Together was the first time we’d seen each other for over a year. We feel like it’s been an achievement. 

## _**“We saw what was really important to us”**_ 

Being together. Working together as a team. Speaking out together. Sharing what hurts and what makes our hearts break. Finding the extraordinary in the ordinary things of life. A quality of attention, acceptance, tenderness, fun… Love. 

## _**“These experiences are going to affect us for the rest of our lives”**_ 

**In L’Arche, we are different together. We are happy to offer you this report of our year together.** 



**John Casson** National Leader 



**Aedan MacGreevy** Board Chair 



**Paul Jones** Speaking Council  Chair 



**Rebecca Tucker** Speaking Council  Vice-Chair 



## **CONTENTS** 

|**4**|**L’Arche at a glance**|
|---|---|
|**10**|**Who we are**|
|**11**|**What we do**|
|**12**|**Where we are**|
|**13**|**2020/21: What we faced together**|
|**14**|**How we lived our life together**|
|**19**|**How our national teams supported community life**|
|**20**|**What we want to do next**|
|**21**|**Fundraising**|
|**23**|**Governance**|
|**24**|**Financial review and statements**|





## **OUR YEAR IN NUMBERS** 

**11 1.8 Communities Tonnes of face masks** 

**£14,693,623 Income** 

**£14,378,137 Expenditure** 

**57,200 Lateral flow tests** 

**295** 

**Community Members with a Learning Disability** 

**37 1,235 Commissioning Local Members authorities** 

**59 L’Arche Homes** 

**940 Assistants and Volunteers** 

**48 64,428 Years in the UK Meals shared** 

**100% Services rated good / outstanding - or equivalent** 


**Over the course of summer 2021, the Bognor community walked a combined 1800 miles to raise funds for L’Arche International. The ‘virtual’ route took them to all L’Arche UK Communities – a 1172 miles target exceeded by over 700 miles. As they reached each UK community, the community sent them back a video message of encouragement.** 

4 



## **OUR YEAR AT A GLANCE** 

## **August 2020** 

A brief summer break from lockdown. L’Arche London swap PPE for creative masks at a Retreat Day: “Behind the mask – the real me”. 

## **September 2020** 

UK Communities join L’Arche members worldwide in a first ever “Festival of Light” to beat the COVID isolation. 

## **October 2020** 

L’Arche Manchester get outdoors and active on foot, pedal and paw, with their “500 Mile Challenge” fundraiser. 

## **November 2020** 

Highland and Manchester battle for top spot in the lip-sync “Battle of the fans”. 

## **December 2020** 

Christmas in lockdown brings out our inventive side – celebrating in new ways. 

## **January 2021** 

John Casson joins us as our new National Leader. We celebrate the 47th birthday of L’Arche UK. 







## **February 2021** 

Unexpected snow makes this the month of the snowman in Ipswich and Kent. 

## **March 2021** 

L’Arche members raise their voices in the successful nationwide campaign to get the JCVI to prioritise people with learning disability for vaccination. 

## **April 2021** 

We reinvent our traditions for Easter celebration and traditional L’Arche footwashing - on Zoom. 

## **May 2021** 

While L’Arche Edinburgh celebrates its 30th anniversary, L’Arche members lead successful lobbying for care homes to exit lockdown on equal terms with others. 

## **June 2021** 

Our nationwide Walking Together event is the first chance for Communities to gather in person for 16 months. 

## **July 2021** 

A time of goodbyes as many overseas assistants leave our Communities. L’Arche Bognor shows how to enjoy the weather with their humungous “Big Walk”. 







5 



## **OUR IMPACT AT A GLANCE** 

## _**We are different together**_ 

Our impact is more than our numbers. Every day, we grow extraordinary friendships through ordinary activities. These friendships are at the heart of our model of **individual and societal transformation.** 

**Impact on people with disability:** We want people to flourish and contribute, not just have their basic needs met. We are committed to brilliant, person-centred care for each person.  But our Communities foster something different too - creativity, friendship, responsibility, full lives and personal growth. 

**Impact on people sharing our Community life:** We build relationships of trust and vulnerability across divides of intellectual capacity, social origin, religion and culture. These relationships across difference make us all different - teaching friendship, belonging, meaning and human maturity. 


**Impact on perceptions:** We see the gifts of people with learning disability for the world and we want them more widely welcomed.  We shift the perceptions of the people we live with in Community, the people we meet in our localities, and people we engage with in the media and public life. 

**Impact on policy and institutions:** What disables people with learning disability the most is how they are treated in discriminatory ways by society and Government.  As Communities and as individuals we speak up for the opportunities, rights, resources and respect that they deserve. 

**Our most important indicators for impact, flourishing and performance include:** The number of people with learning disabilities receiving a commissioned support service from L’Arche • Outcomes-focussed person-centred plans • Inspection reports • Training costs as a proportion of staff costs • Induction compliance • Number of donors • Incidents, accidents and near misses • Numbers of assistants on furlough, self-isolating, tested, and vaccinated. • Vacancies and recruitment • Numbers of people with disabilities who have tested positive, are selfisolating, or have been vaccinated • Health and safety audit • Wellbeing survey • Social media and communications engagement; opinion and audience monitoring; and communications click through rates. 

## **“** 

_**Sometimes someone comes into your life and there’s a deeper level of connection. It might not spark right away, but when it does, you understand one another. You both see beyond the outer masks and it allows you to be fully yourselves. That’s where best friends come from - the ones for life, the ones you want beside you for the long haul.**_ 

**MEGHAN REFLECTS ON HER EXPERIENCE SUPPORTING ANDREA IN L’ARCHE MANCHESTER** 

6 



## **“** 

## **“** 

_**Each interaction I have had, I have noted the… commitment and dedication to the best care for the individual, a consistent focus on the individual’s choice and preferences [and an] awareness of areas of risk and the benefit of staff learning and training.**_ 

**SPEECH AND LANGUAGE THERAPIST POWYS COUNTY COUNCIL** 

_**...those photos of everything C has been up to were amazing. I always hoped but didn’t think I would ever see such lovely photos. Well done to everyone at L’Arche. C is a different lady. It has been lovely working with you all and seeing C settle into her new home with you all.**_ 

**POWYS COUNTY COUNCIL INSPECTOR** 


7 



**OUR MONEY AT A GLANCE** 

## **Where our money came from.** 

Our net resources available for charitable activities were £14.7m. 

|were £14.7m.||
|---|---|
|**1.**General donations|£415,156|
|**2.**Donations received for UK Projects|£580,606|
|**3.**Donations received for L’Arche International|£133,972|
|**4.**Governmentgrants|£115,410|
|**5.**Support Income|£11,749,607|
|**6.**HousingIncome|£1,366,700|
|**7.**Other Income|£332,172|
||**£14,693,623**|




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## **How we spent our money.** 

We spent £14.4m. 

|**1.**Employment costs|£10,724,024|
|---|---|
|**2.**LivingCosts|£686,631|
|**3.**HousingCosts|£1,607,401|
|**4.**DayService Costs|£28,493|
|**5.**CommunityAdmin and Travel|£241,956|
|**6.**Legal Costs|£49,032|
|**7.**Governance and Central Admin|£168,537|
|**8.**Other Costs|£4,986|
|**9.**Depreciation|£379,169|
|**10.**Fundraisingand communications|£335,389|
|**11.**Donations to L’Arche International||
|and other charities|£152,519|
||**£14,378,137**|




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## **“** 

_**My hope is that L’Arche will remain a place … where our value is not measured by our performance or professional conduct only but by the quality of our relationships and love for each other.**_ 

**ISTVAN JAMBOR, REGISTERED MANAGER, L’ARCHE IPSWICH** 

8 



LARCHÉ

## **WHO WE ARE** 

## _**Our vision is a world where all belong**_ 

## **We are people with and without learning disabilities, sharing life together** 

- We belong to an international federation of communities in 38 countries 

- Founded in the Christian tradition, we are made up of people of all faiths and no faith 

- Mutually transforming relationships and trust in God are at the heart of our journey 

## **Our mission is** 

- to make known the gifts of people with learning disabilities 

- to respond to our members’ changing needs 

- to work together for a more human society 



We are **local** with Community clusters in 11 UK towns and cities. 

We are **national** supporting each other in one national charity with a shared vision and culture. 

We are **international** members of a federation with 156 Communities in 38 countries on 6 continents. 

## _**We are change-makers as part of the global movement for inclusion, justice and freedom from discrimination.**_ 

## **“** 

_**This isn’t a place where all the problems are solved; it’s where all the difficulties are worked through in love and friendship and interdependence. And that’s what makes it so special. That’s our daughter’s home...**_ 

_**Every L’Arche Community is a living testimony to the importance of each individual person on this planet and each person is worthy of respect and love and trust and that’s what L’Arche can bring.**_ 

**JULIA, FAMILY MEMBER, L’ARCHE PRESTON** 

10 



## **WHAT WE DO** 

We create Communities of shared lives between people with and without learning disabilities, from which we work together for a more human society. 

We help each other live full and empowered lives and to reach our full potential, including in our need for friendship, for a home, and for creativity, kindness, voice and spirituality. 

**In lockdown, L’Arche Liverpool created a YouTube Channel so everyone could stay in touch. Seeing friends on screen, and being reassured that all was OK, was important for everyone. It also brought the community together to mourn the loss of five community members who died during the year. Understanding death is hard enough for us all, but when you can’t gather in person, or go to the funeral, YouTube provided a lifeline of connection for people with and without disabilities alike.** 


Every member with a learning disability has a personal support plan developed by listening to their hopes and dreams, choices and goals, and tailored to the level of independence and support they need. Support can include housing, registered care, supported living, day services and wider community life.  Most services are funded by social care support budgets, and they all meet or exceed Government standards. 

Every Community celebrates people with learning disability, creates circles of support around them, and offers a place to belong for people with and without disability. 

Together and as individuals we actively participate in the life of our neighbourhoods, of faith and campaign groups, of places of work, learning and fun, and in our towns, cities and nations. 

11 



**WHERE WE ARE** 

## _**We are in 11 towns and cities in the UK today**_ 


**----- Start of picture text -----**<br>
HIGHLAND<br>EDINBURGH<br>PRESTON<br>MANCHESTER<br>LIVERPOOL NOTTINGHAM<br>BRECON IPSWICH<br>LONDON<br>BOGNOR<br>KENT<br>**----- End of picture text -----**<br>



_People with learning disabilities                        Employed Assistants                       Volunteers_ 

**KENT (FOUNDED 1974)** 

## **EDINBURGH (1991)** 

31           64           41 15           51            21 

**HIGHLAND (1975)** 

**PRESTON (1998)** 

47           56           13 12           37            21 **LIVERPOOL (1976) IPSWICH (2006)** 

69           109         92 14           34            10 **LONDON (1977) MANCHESTER (2013)** 

30          82            75 24          41            43 **BOGNOR REGIS (1978) NOTTINGHAM PROJECT (2015)** 17           37 19           51            19 **BRECON (1989)** 17            22           21 

12 



## **WHAT WE FACED IN 2020-2021** 

## _**Our most challenging context in 47 years:**_ 

**COVID.** People with learning disabilities in England were eight times more likely to die from COVID.  For people with Down’s syndrome the risk of dying was 36 times higher than in the general population.  It took an unprecedented public campaign for people with learning disability to be prioritised for vaccines.  Lockdown was especially harmful for some of the vulnerable people in our Communities. 

**Discrimination.** The lockdown and the response to COVID reversed some of the gains people with learning disability have made from institutionalised ways of thinking about them. Protecting people in care meant new nationwide rules and restrictions. The risk is the state slips back into deciding what’s best for people, irrespective of their individual needs and capacity to choose. 

## _**Learning Disability in the UK:**_ 

- **1.5m people in the UK are believed to have a learning disability.** 

- **147,920 of these accessed long-term support** 

- **Only 6% of adults with a learning disability in England are in paid work** 

- **People with learning disabilities are seven times more likely to feel lonely than the general population** 

- **The difference in median age of death between people with a learning disability and the general population is 23 years for men and 27 years for women** 

**Loneliness.** L’Arche is at the forefront of the movement to end the loneliness and isolation of people with disability. But the risk is acute – even before lockdown over half of disabled people reported feeling lonely, rising to 77% for those aged 18-34.  And many surveys showed lockdown compounded the loneliness of groups most vulnerable to it. 

**A recruitment crisis.** 2021 saw the most difficult recruitment climate in our history.  We face a perfect storm of factors - from COVID travel bans, to post-Brexit visa requirements, and the wider shortages of people across the UK labour market and society. The knock-on effect was financial pressure through use of agency workers, pressure on the wellbeing of our remaining employees, and in some cases a reduction in services we were able to offer local authorities. 

**A social care crisis.** We depend on Local Authority budgets which for over a decade have been falling behind the growing demand in society for adult social care. L’Arche aims to model an alternative to the race to the bottom in social care. This is increasingly challenging. 


## **“** 

_**I just find it so frustrating. I get p*ssed off that they would treat someone differently that has a learning disability to someone that doesn’t. Give us a chance to show we can be trusted.**_ 

**REBECCA, L’ARCHE KENT** 

13 



**HOW WE LIVED OUR LIFE TOGETHER** 

**L’Arche Communities create 4 vital dimensions of life together.** 



**----- Start of picture text -----**<br>
SERVICE<br>**----- End of picture text -----**<br>


_**Why this is important:**_ **we want to give loving, wholehearted service and fantastic care to people, not just be absorbed by ourselves.** 

## _**Our service together this year**_ 

- We supported 183 individuals in supported living and care homes, with numbers holding steady throughout the pandemic (up 3 from September 2020). 

- Our day services reinvented themselves to offer support at home to as many people as possible. Early in the pandemic the numbers we could support reduced from 108 to 62, but have been increasing steadily as it has become safer to re-open our workshops. 

- We sustained our services across the UK, all currently rated **Good** or **Outstanding** by the **Care Quality Commission** in England, Compliant by the Care Inspectorate Wales, and Good or Very Good by the Care 

## **“** 

   - Inspectorate Scotland. We maintained our comprehensive system of safeguarding, including tracking and responding to key quality and safety metrics. 

- We implemented and adapted to evolving COVID and lockdown regulations, introducing comprehensive testing and PPE and supporting 79% of our members with learning disability to receive **priority vaccination.** 

- One member with a disability in their 70s died in hospital after COVID infection. All our communities have experienced outbreaks, managing each outbreak safely through quarantine and successful infection control, so that everyone has recovered. 

- **243 assistants** (including our new National Leader) trained on our new L’Arche induction programme, delivered through blended learning in partnership with Care Academy. 

- We continued to welcome new members to join our communities, even in lockdown, with **12 people** finding a new home with us. 

- We received **58 ‘formal’ compliments** and many more messages of thanks and support. 


_**You have done a tremendous job steering the Community through these difficult times. Huge thanks for the friendship, joy, kindness, thoughtfulness, vibrancy and enthusiasm you have brought. It has helped N a great deal, setting up new activities for him and supporting him through the death of T and the loss of his job. You have made ‘the house’ a home… thank you.**_ **FAMILY MEMBER** 

_**Thanks for helping P through the meeting. I found it quite moving watching you with P right now, because it’s clear that you know him so well and are so caring towards him.**_ **FAMILY MEMBER, FOLLOWING A REVIEW MEETING FOR P’S PERSON-CENTRED PLAN** 

14 



## **HOW WE LIVED OUR LIFE TOGETHER** 


## **COMMUNITY** 

_**Why this is important:**_ **we want friendship and community, not just people being autonomous, isolated or lonely.** 

## _**Our community together this year**_ 

- We invented ways of being together we never imagined: **Dancing** , nativity plays, **mindfulness** , Makaton, yoga, Meet and Match, **prayer** … all on Zoom! 

- In Liverpool, we created a **YouTube channel** that had everyone buzzing.  In Kent our regular “Good morning” Zoom show was better than any drive time radio. 

- We lost many of our overseas live-in assistants who returned home early or couldn’t join us because of COVID travel bans. Many friends and volunteers were unable to access our houses and community events because of lockdown. 

- Compulsory mask-wearing was a tragedy for our community life. Assistants couldn’t share meals with members with disability, even when they were house-mates in the same home. 

- We were **more connected** between the UK communities than ever before, with more opportunities to join each other’s gatherings and events, to pray together, grieve together, lip-sync together. 

- We found new ways to connect to L’Arche communities around the world, especially with the online **Festival of Light** in September, and creating our unique contributions to the new Federation Charter process. 

- We continued to come together to learn from the 2019/20 Inquiry findings about our founder Jean Vanier, and to draw wider lessons about our culture, our blind-spots, and our wider founding story in L’Arche. 


**We deepened our local and global sense of community through our Federation competition: Battle of the Fans! We bridged the lockdown divide through dance and music. The winning UK entry featured a dance troupe from L’Arche Manchester hanging out of car windows… and an inflatable dolphin.** 

**Watch the winning video HERE!** 



15 



## **HOW WE LIVED OUR LIFE TOGETHER** 


## **OUTREACH** 

_**Why this is important:**_ **we want people with disability to be taking part in society, sharing their gifts, not just cocooned or hidden away.** 

## _**Our outreach together this year**_ 

- Our ability to participate in our local community activities was severely constrained by the pandemic.  But we came together in new ways to change our neighbourhoods and how people see learning disability. 

- L’Arche Brecon’s Rebound Books workshop started **creating and selling colourful PPE** too. 

- We successfully lobbied our MPs and the Minister for Social Care to change the discriminatory rules that kept people whose accommodation was in registered care locked down when everyone else had reopened. 

- **We joined Radio 2’s Jo Whiley** and a whole nation-wide campaign to persuade the JCVI to allow priority vaccination for everyone with learning disability. 

- We posted **620 posts** on social media, with 2 million views. 

- Our members with disability were **in the media** as advocates and role models. Richard Keagan-Bull from London was a repeated presence on BBC TV.  Speaking Council Vice-Chair, Rebecca Tucker from Kent did a blog for Learning Disability England. 

- We welcomed the Shadow Minister for Social Care to a Q and A evening with L’Arche Nottingham. 

- We raised **£95,645** to support L’Arche Communities in less well-off parts of the world. 

_**“People with learning disabilities are important and should have a voice.”**_ **Three and a half thousand people saw Alex Hopkinson’s video on Facebook. Around 100 people wrote to their MP as a result of his** _**Speak Up, Listen Up**_ **campaign in January 2021, helping make people with learning disability a priority for the COVID vaccine.** 



16 



## **HOW WE LIVED OUR LIFE TOGETHER** 

- We **grieved together** . Members and friends from across the world gathered to share memories, thanks and sadness on the days some of our members and friends died. We found new ways to lament COVID and lockdown together. 

## **SPIRITUALITY** 

_**Why this is important:**_ **we want to be present in the world with joy, gratitude, freedom and compassion, not just preoccupied by superficial things.** 

## _**Our spirituality together this year**_ 

- We **celebrated together** . Lockdown couldn’t stop our L’Arche genius for marking birthdays, anniversaries, arrivals and departures.  We danced. We dressed up.  We ate cake. We lit candles. 


- We lived our days together, **people of all faiths and none** at shared tables, in shared silences, in shared vulnerability and learning. 

- We reflected together on our calling and our future.  Each Community created “beads” – beautiful art work for the worldwide string of contributions to our new International Charter. 

- We began renewing our **L’Arche Accompaniment** programme of pastoral supervision for everyone living in L’Arche, learning the lessons from the Vanier Inquiry. 

- We met as Communities from across the UK for L’Arche **prayers on Thursday** nights, welcoming friends from as far away as New Zealand. 

- We recreated our core L’Arche tradition of **washing each other’s feet** on Maundy Thursday with creative variations on Zoom. 

## **“** 

_**With so much anxiety and loss in the pandemic, I also noticed the events and activities we can take for granted - a birthday, gathering or a celebration - gained a deeper significance. They bring us even more life and meaning than before. They are even more precious to us. That is a gift I didn’t expect.**_ 

**LIDIA, L’ARCHE LONDON** 

17 



## **THE PEOPLE WE LOST** 

_**We really miss 15 members who died in our Communities this year. We are full of thanks and love for the gift they were to us.**_ 

**Pat** loved people and music, and her last weeks were filled with a steady stream of friends sitting with her, often listening to Mamma Mia and her beloved Cliff Richard. 

**Thierry** arrived in L’Arche in 1974. He had a heart big enough for everyone. He was also a master craftsman – his stonework adorns many gardens. 

**Herbert** lived a long and happy life, but sadly was taken from us by Covid. 

**Linda** died as she lived, surrounded by her friends. 

**Mary** lived in L’Arche for 36 years, lighting us all up with her smile, and is sadly missed by all. 

**Thomas** was a strong-willed gentleman with close family connections – it was a short journey with Tommy, with lots of cowboy movies. 

**Gina** was a really well loved volunteer - funny, caring, compassionate, and very talented. 

**Joan** was (probably) L’Arche’s oldest member when she died at 104 years of age. She was our first finance officer, back when L’Arche UK was a single house in Barfrestone, Kent. 

**Jean** was a founder member of L’Arche London, arriving in 1978. She sang and danced and loved her way through a long and happy life. 










**David** was a long-standing Community member of L’Arche Edinburgh, a committee member, and a faithful friend to many. 

We rejoiced with **Anne** when she married Les, and mourned with Les and all their friends when she died. 

**Jane** was a Liverpool FC fan - she was proud to have met Ray Clemence, Phil Thompson and a whole host of other Liverpool FC players. 

**Kathleen** was Chair of our Bognor Committee, and previously our National Chair, when she guided us with wise counsel and kindness. 

**Andrea** loved cups of tea, cake, going on walks and spending quality time with people. She would pull you in for a hug and declare, “I love you.” 

When **Jane** from our Edinburgh Community died, her friend Hugh wrote this beautiful poem to remember her 






## _**People like me**_ 

I know what it’s like to not fit in. How could I fit in when I wasn’t like other people? 

Now I fit in. Not because I’ve found people like me, 

but because I’ve found people who don’t care 

that I’m not like them. 

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**HOW OUR NATIONAL TEAMS SUPPORTED COMMUNITY LIFE** 

_**The teams working in our national charity support our Communities with governance oversight, with resources and by developing the collective vision and voice for L’Arche in the UK.**_ 

John Casson joined us as our new National Leader in January 2021, taking over from Kathleen Boyle and Louise Carter - acting leaders after the departure of Loren Treisman in September 2020. 


buildings as good as can be. We also launched a new national induction programme for new employees and employed a new national Training Coordinator. 

## **People who share life with them** 

We paid a pay rise above inflation as a significant step towards paying everyone at least Real Living Wage. We started new work to make the role of live-in assistants more life-giving and attractive. We started new work to increase our diversity and open-ness. Informed by the Vanier Inquiry outcome we worked on a plan to support employees’ wellbeing, including improving our unique programme of accompaniment (pastoral supervision). 

## **People outside L’Arche** 

We appointed a new Director of Fundraising and Communication and refreshed our plans for outreach.  We were more active and outspoken about the difficulties people with learning disability faced because of COVID and decisions in the Government and NHS. 

## **Systems and finances** 

We created a new Financial Strategy to help us afford Real Living Wage. We bought a new HR database and launched expert reviews of our systems for IT and information management and for financial management. 

Our priorities in the year were: 

- To keep our Communities safe and sustainable through the pandemic 

- To create more vision, visibility, and resilience for L’Arche in the UK 

- To increase the participation of people with disability, and the wellbeing of people we employ 

To support these goals, we worked on 4 priority change work streams: 

## **People with learning disability** 

This work included intensively monitoring COVID and sharing information across L’Arche. We employed a new housing officer to make our 

## **“** 

_**It’s been great seeing in L’Arche something extraordinary emerge through all the really ordinary daily things – a quality of attention, a way of seeing each other…  what I could call real, real, real… love.**_ 

**JOHN CASSON, NEW NATIONAL LEADER** 

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## **WHAT WE WILL DO NEXT** 

_**Our 2021-22 plan prioritises UK-wide initiatives in 4 change work streams:**_ 

## **For people with learning disability** 

**1** 

- We will protect people from COVID, enable them to live well despite restrictions, and support Communities to recover from lockdown 

- We will prioritise the voice and power of people with disability in L’Arche 

- We will aim for a culture in which everyone learns from what we do well and from the times when we don’t 

- We will improve our housing and health and safety systems 

## **For people who share life with them** 

- We will review and update our pay and grading policies 

**2** 

- We will launch new ways of doing the “live-in assistant” role 

- We will grow the skills and capacity of front-line managers 

- We will work to increase diversity, inclusion and belonging in L’Arche 

- We will develop our national induction programme 

**3** 

## **In our systems and finances** 

- We will use our financial plan to make us ready for the challenges ahead 

- We will review and update our finance systems and structure 

- We will review and improve our IT and information management 

## **In our external voice and partnerships** 

**4** 

- We will use our new fundraising strategy and digital outreach to grow unrestricted revenue 

- We will grow our visibility and voice through a new Communications Strategy 

- We will build new partnerships to make us better advocates and change-makers 

## **We will refresh our long-term vision through 3 “Big Conversations”:** 

- Inclusion: the voice and power of people with learning disability 

- Impact: what is the difference L’Arche makes? 

- Identity: spirituality and faith in L’Arche 


**In Oct 2021 Richard Keagan-Bull, member of L’Arche London, was named as one of the 100 most influential disabled people in the UK** _**(Disability Power List 100)**_ **.** 


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## **FUNDRAISING** 

L’Arche UK has built a strong fundraising platform through our supporters and donors. In the 2020-2021 financial year, the Fundraising and Communications team raised almost £1.2 million from trusts, major donors, legacy gifts, and public fundraising. We saw a large investment in the infrastructure of L’Arche UK which has resulted in a new HR database and a comprehensive review of our IT systems and structures. Additionally, we have worked closely with L’Arche local communities to identify strategic capital projects and also expand their own local donor base to help secure ongoing, sustainable funds. 

## _**Our commitment to supporters**_ 

_We care for each and every one of our supporters. Their generosity is invaluable, and so we ensure that we treat them with honesty and respect._ 

_We are dedicated to using their gifts for the purpose for which they are given, and spend donations so they have the most impact. We will always respect their wishes and preferences._ 

As we look to the future, our priority continues to be focused on creating a larger network of supporters and advocates, which will increase the reach and voice of L’Arche UK and resource new projects and ongoing operations. During the year, we saw overall growth in regular giving commitments, legacy notifications, and the very successful Walking Together fundraising event involving all UK L’Arche communities. Walking Together in 2021 saw a 350% increase in funds raised year over year. 

As the organisation faces challenges stemming from COVID, Brexit, and the impact on the social care sector, we will continue to be a beacon of light, providing a different and sustainable way for individuals and institutions to invest in people. 

_We are in partnership with our donors and cannot thank them enough for their commitment to L’Arche UK. Thank you._ 

## **“** 

_**L’Arche is dedicated to and defined by its community. It is that commitment that motivates us to raise funds for an incredibly special organisation. We know our supporters feel the same way, inspired by the values, by the work, and by the people of L’Arche. Together, we are creating a world where all belong.**_ 

**HANNAH, NEW ARRIVAL IN OUR FUNDRAISING TEAM** 


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## **THANK YOU** 

Thank you to our partners for their support this year: 

## _**Porticus**_ 

_**The Joseph Rank Trust Tudor Trust The Vardy Foundation The Wolfson Foundation**_ 

To all of our donors, legacy pledgers, and funders, thank you. Your gifts create a lasting and meaningful impact. 


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## **OUR GOVERNANCE AND LEADERSHIP** 

## **National Board:** 

_**Aedan MacGreevy**_ *, National Chair _**Sue Williams**_ , National Vice Chair 

_**Roland Clark**_ *, National Treasurer 

_**Peter Oakes**_ , Safeguarding Lead 

_**Marie Roberts**_ , HR Lead 

_**Jane Brown**_ , Manchester _**Isobel Gray**_ *, Edinburgh 

_**Laura Harper**_ , London _**Ben Moorhead**_ 

_**Liz Rijnenberg**_ , Brecon (Resigned 8[th] March 2021) 

_**Martin Weale**_ , Brecon (Appointed 25[th] November 2020) 

## **National Leadership Team:** 

_**John Casson**_ *, National Leader (from 11 January 2021) _**Kathleen Boyle**_ **, Deputy National Leader 

_**James Cuming**_ , Regional Leader South and Wales 

_**Anthony Kramers**_ , Regional Leader North and Scotland (to 19[th] October 2020) 

_**Des Kennedy**_ , Regional Leader North and Scotland (from 1[st] February 2021) 

_**Chris Asprey**_ , Acting Head of Fundraising (to 7[th] July 2021) 

_**Hannah Lythe**_ , Director of Fundraising (from 7[th] July 2021) 

_**Louise Cuming**_ , Mission Formation _**Sarah Harrison**_ , Human Resources _**Debbie Walker**_ **, Finance 

## **Community Leaders:** 

_**Liis Revell**_ , Kent 

_**Gary Deplacido**_ , Highland (to 5th November 2021) _**Chris Gehrke**_ , Highland (from 31st January 2022) 

_**Carol Carney**_ , Liverpool 

_**Lucy Winter**_ , London 

_**Sonja Jones**_ , Bognor Regis 

_**Jill Farmer**_ , Brecon (from 11th October 2021) 

_**Kirsty MacCrimmon**_ , Edinburgh 

_**Michael Sheppard**_ , Preston (to 31st December 2021) 

_**David Hockley**_ , Ipswich _**Nem Tomlinson**_ , Manchester 

_**Caireen Detain**_ , Nottingham project 

_*Member of Finance Subcommittee_ 

_**In attendance at Finance Subcommittee_ 

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## **FINANCIAL REVIEW** 

## **The format of these Financial Statements complies with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) currently in force.** 

## **FINANCIAL RESULTS** 

The Statement of Financial Activities shows an operating deficit of £122,306 (2020: surplus £414,431). The operating deficit on unrestricted funds is £86,107 (2020: surplus £444,077). 

After taking into account the net of donations and specific grants and expenditure from development funds, net incoming resources were £315,486 (2020: £644,214). 

The Trustees consider that the Charity has one operating activity: the care and support of people with learning disabilities. 

## **DONATIONS AND GRANTS** 

Income from fundraising increased during the year to £1,245,144 (2020: £874,309). Unrestricted donations rose to £415,156 (2020: £309,189) with UK restricted increasing to £580,606 (2020: £369,116) notably through a major funding award for infrastructure projects and the receipt by two communities of bequests. 

Expenditure on the central fundraising team saw an increase to £335,389 (2020: £277,703) as we strengthened the support offered to local fundraising with the appointment of a dedicated fundraiser. 

Receipts from Government grants increased to £115,410 (2020 - £53,648). Whilst we have continued to support those assistants at greatest risk from COVID-19 due to health issues using the government’s Job Retention Scheme, our Scottish and Welsh Assistants have also benefitted from the devolved governments’ awards to carers. 

_**Review: This was a strong result in difficult circumstances, and we are grateful for the support offered by both long term and new supporters.**_ 

## **INCOME FROM CHARITABLE ACTIVITIES** 

Our Charitable Activities income showed an increase of £705,029 to £13,447,539 (2020: £12,742,510). Although our housing income reduced slightly to £1,366,700 (2020: £1,395,525) as a result of vacancies in our supported living services, our support income increased due to a combination of fee increases and renegotiating support packages. We completed a lengthy renegotiation of one community’s services. 

_**Review: Securing annual fee increases from some local authorities remains challenging, but others awarded helpful uplifts. In Scotland, Government policy is that we are funded at a level that allows us to pay our assistants Real Living Wage as defined by the Living Wage Foundation and annual uplifts reflect this. In England, awards tend to be tighter, but one of our largest services saw an increase of 6.2% in April 2020.**_ 

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## **DIRECT CHARITABLE EXPENDITURE** 

Expenditure on our services increased by £1,267,871 to £13,890,229 (2020: £12,622,358) The main factor behind this increase was staffing costs which rose from £9,545,018 in 2020 to £10,940,626 in 2021. 

_**Review: The issues organisations in the care sector are facing with staff recruitment and retention are well documented and L’Arche is not unique in having to use high levels of agency staff to maintain its services. For us, Covid added a further element as our traditional livein assistant model came under pressure with overseas assistants unable to take up places offered due to travel restrictions.**_ 

## **CHARITABLE DONATIONS** 

A donation of £3,000 (2020: £3,000) was made during the year to the L’Arche Benevolent Trust, a registered charity with the objectives of assisting employees and ex-employees of L’Arche who may require financial support as a result of personal hardship. Donations to L’Arche International totaled £149,269 (2020: £75,638) and donations to other charitable organisations £250 in total (2020: £4,214). 

## **BALANCE SHEET** 

Balance sheet net assets rose by £337,096 from £13,012,525 to £13,349,621. This movement was due to: 

- A net increase in the fixed asset total of £489,564, due primarily to the completion of the 

   - Braerannoch project, which was offset by the annual depreciation charge. 

- A fall in the net current assets total from £4,454,831 to £4,249,316 as a result of work in progress on Braerannoch being finalised. 

Cash flow improved from local authorities (which had struggled at the beginning of the pandemic) resulting in lower operational debtors and a higher cash balance. 

## **RESERVES POLICY** 

In common with similar organisations supporting people with learning disabilities, and in line with Charity Commissioners’ advice that reserves are needed for reasons of sound financial management and operational planning, L’Arche holds a General Fund in addition to its Development and Fixed Asset Funds (see Note 16 of the Financial Statements). 

At 31st July 2021, L’Arche held total reserves of £ 13,349,621 (2020: £13,012,525). Free reserves totaled £2,401,252 (2020: £2,284,539) and were held in the General Fund. 

The Unrestricted Development Fund represents donations and grants received without a specific restriction. The Trustees designate unrestricted donations and grants received by a community to projects within that community. They may also, if they deem it appropriate, designate the profit on the sale of assets to a community development fund to ensure that the spirit of the original gift is reflected in future investment. 

25 



The General Fund is held primarily to protect against interruptions to our main income flow and to sustain working cash balances to cover fluctuations in operating costs. The current level of unrestricted General Funds of £2,471,194 (2020: £2,334,971) represents 9.6 weeks (2020: 9.8 weeks) of community operating expenditure. In view of the vulnerability of the residents in L’Arche’s care, and our long-term commitment to them, a minimum of 13 weeks’ reserves is our medium-term objective. 

## **GOING CONCERN** 

L’Arche operates in a financially challenging environment, with increasing wage costs and demands on funding, to which the COVID-19 pandemic has added new pressures. The directors are confident that the company has adequate reserves to cover these challenges and to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. 

## **FUTURE CAPITAL COMMITMENTS** 

Capital project commitments outstanding at the year-end totaled nil (2020: £1,325,644). 

## **FUNDRAISING** 

L’Arche is registered with the Fundraising Regulator and has adopted its Code of Practice and rulebooks. L’Arche does not employ any commercial fundraisers or professional participators to carry out fundraising on our behalf. The Trustees have always adopted the policy that L’Arche should neither sell, share nor buy lists of donors. It does not undertake street or telephone fundraising. 

## **INVESTMENT POLICY** 

In accordance with the investment powers contained in the Articles of Association, monies not immediately required for the day-to-day operation of the Company may be held in investments, securities or property. During the financial year concerned, the Company has sought to minimise risk by holding its reserves in instant access cash deposits. 

26 



## **RISKS** 

The Board is in charge of looking out for risks which could cause damage to L’Arche, and making sure we have plans in place to stop these risks from happening, or to stop them from doing too much harm. The National Team write a list of risks and the Board checks that it is the right list, and that we are taking the right care to avoid the risks. If a new risk arrives (like Covid did), we add it to our list and work out what action we need to take. 

## **1: Having enough money** 

**1: Having enough money Actions taken** Less money received from New Director of Fundraising appointed, who has written a new fundraising strategy. More money needed for Every community asked to have a plan for where they can save money. employing assistants to New job created to find assistants from the UK who want to live in our replace those who used to houses. come from abroad to live in our houses alongside members with disabilities 

## **2: Mission and Identity** 

Communities forget about Our training for new assistants makes sure they know about our our Mission and Identity Mission and Identity, as well as understanding good quality care. because they are so busy with Each local Chair comes to the Board each year to talk about their important things that have to Community life. We have all taken part in the L’Arche worldwide be done Charter Process, where we all talked about what gives us life in L’Arche. We have improved our website and put much more information on social media so that people know about us. Our leaders and Board forget Leaders meet regularly together and with senior leaders to share news about our Mission and and support each other to fulfil our Mission. Regional Leaders visit Identity because they are so communities to check how the Mission is being lived out. busy with important things that have to be done 

## **3: Care and Support** 

Poor quality care services Leaders fill in a form every month to show whether they are meeting the right standards. We have a Care Quality and Policy Manager who advises leaders. When things go wrong, we write a report so that everyone can learn from it. The Board receives a report on our care quality at every meeting. 

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Scandal in care service Everyone employed or volunteering in L’Arche needs a DBS/PVG (police) check and signs our Code of Conduct. Our Safeguarding / Adult Support and Protection policy is clear that everyone must speak up if they see any abuse happening. We investigate all reports that people have been treated badly, and take quick action to make sure the bad treatment stops. 

Not listening well enough We know we do not always do this well enough, and are writing a plan to people with learning on how to do better. disabilities 

## **4: Having enough assistants** 

Not enough assistants living Work out how to change the role so that more people from the UK in our houses. Brexit has made want to do it. Decide whether we should still invite people from abroad it harder for people to come to come to us, since the government rules make this difficult. from Europe 

Not managing and looking Training for managers in how to lead their teams well and ensure after our assistants well everyone is doing their job well, and what to do if an assistant is not enough. working well enough. Make sure all new assistants are getting the same training. Look at whether our accompaniment is providing safe support for assistants. 

## **5: What people think of L’Arche** 

Scandal – people thinking L’Arche treats our members badly. 

Keep on learning lessons from the Inquiry into the abuse which Jean Vanier was guilty of. Look after those L’Arche members who are still feeling shocked and disappointed. 

## **6: Our leaders** 

National team and Community Leaders getting so busy and tired that they either cannot carry on, or they make mistakes and forget things 

A new work plan lists the most important things we will do in the next year. We do not promise to do things we don’t have time for. Our new Housing Policy and Quality Manager will help leaders with this area of their work, and we are improving our computers and IT systems to make some things easier and quicker to do. 

28 



## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Organisational Structure** 

L’Arche is a company limited by guarantee and a charity registered in England and Wales and in Scotland. The organisation was incorporated on 18th May 1972 and is currently governed by Articles adopted on 24th February 2018. Its principal objects which can be summarised as providing support and training for people with learning disabilities by opening and running Community networks, homes and work opportunities, thereby fostering personal development and citizenship. 

There are currently 11 L’Arche Communities in the UK. Set up in response to the initiative of a local group, a typical Community comprises a number of houses, supported living settings and, where appropriate and commissioned, day activities, spread out within an urban setting and run as a unified service. In this way, Community members are more easily able to integrate with the wider neighbourhood and thereby develop and maintain important links with individuals and groups beyond L’Arche. 

## **Management** 

The National Leader/CEO is appointed by the National Board and reports to the Trustees through the National Chair.  As leader of the executive management structure, the National Leader/CEO is responsible for supervising a team of Deputy National Leader, Regional Leaders, as well as national co-ordinators of Formation, HR, Finance, Fundraising, and Communications. All members of the Leadership Team are permanent employees. The National Leader/CEO is also a member of the L’Arche International Leadership Team and reports to the International Federation of L’Arche through the International Leader. 

The two Regional Leaders (covering Scotland and the North of England, and Wales and the South of England) are responsible for supporting the Communities, supervising Community Leaders and ensuring the Communities discern their local mission priorities and objectives, while living faithfully L’Arche’s Identity & Mission and being compliant with commissioning and statutory requirements. 

Other members of the National Leadership Team are respectively responsible for human resources; for formation and leadership development; for finance and the national finance team which is  based at the registered office, accountable to the National Board through the National Leader/CEO for financial matters; and for fundraising and communication. 

Day-to-day responsibility for each Community is delegated to the Community Leader/Director who is supported by a coordinating team, typically responsible for care and support services, housing, HR, day activities, and administration. Members with learning disabilities are encouraged and enabled to play an active part in decisions regarding their own support, their house or support service, and their Community. 

## **Trustees** 

L’Arche is governed by a National Board, the members of which are Directors of the Company with trustee responsibilities. The full board has 10 members and normally meets five times a year in addition to the AGM. 

Board members serve a maximum of 12 years. Recruitment of new National Board members results from a regular review of the necessary mix of skills and experience required for governance. Five members are drawn from the group of chairs of local L’Arche committees, and five are independent of the communities, with vacancies advertised in national and local publications as well as through 

29 



professional agencies and other networks. Potential candidates are appointed after a process of interviews, references and other checks. 

New members’ induction and training is achieved through a combination of written material, meetings and training days, in addition to local Community visits, to ensure they are not only aware of their responsibilities as trustees but understand the ethos and practice of L’Arche in supporting people with learning disabilities. 

## **Equal opportunities** 

L’Arche seeks to ensure that it has a diverse workforce to reflect the diversity of the people who use our services. Opportunities for employment, promotion, transfer and training are advertised widely and all applicants are welcomed irrespective of race, colour, nationality, ethnic or national origins, gender, sexual orientation, disability, age, religion or belief. L’Arche gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. 

We have in 2021 introduced a blind sift recruitment process for national roles, and formed an “Embracing Diversity” working group representing perspectives across the organisation. 

## **Remuneration policy** 

L’Arche is committed to becoming a Real Living Wage employer as defined by the Living Wage Foundation and is also guided by the principles of L’Arche International in setting salaries, namely that we will seek to: 

- use our financial strategy to ensure that we become a Real Living Wage employer. 

- recruit and retain candidates who want to work for L’Arche because of our value base. 

- ensure that the Remuneration Policy complements and reflects other relevant policies, in particular the Equal Opportunities and Diversity Policy, Recruitment and Selection Policy and the Identity & Mission statement. 

- be transparent in the remuneration paid by sharing salary scale information in each community. 

- review the salary benchmarking comparators and salary scales on an annual basis. 

- recommend a Cost of Living increase if affordable. 

## **Company, Charity & Tax Status** 

The Company is limited by guarantee, with no shareholdings. The liability of the 42 members (2020: 42) is limited to £1 each. The Company is registered as a charity in England and Wales and in Scotland with the Office of Scottish Charity Regulator. 

The Company is not liable to income tax, corporation tax or capital gains tax. It is not registered for VAT, since taxable supplies are below the level requiring registration 

## **Public Benefit Disclosure** 

L’Arche has referred to the Charity Commission’s guidance on public benefit when reviewing our aims, objectives and activities and can confirm that the Charity’s Trustees have complied with the duty in s.4 of the Charities Act 2006 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act. 

30 



**STATEMENT OF TRUSTEES’ RESPONSIBILITIES** 

## **Auditors** 

A resolution to re-appoint BHP LLP as the Company’s auditors will be proposed at the annual general meeting. 

## **Trustee Responsibilities In The Preparation Of Financial Statements** 

The trustees (who are also directors of L’Arche for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgments and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **Statement As To Disclosure Of Information To The Auditor** 

The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. 

By Order of the National Board 26[th] January 2022 


## _**Aedan MacGreevy**_ 

31 



**INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF L’ARCHE** 

## **Opinion** 

We have audited the financial statements of L’Arche (the ‘charitable company’) for the year ended 31 July 2021 which comprise the statement of financial activites (incorporating income and expenditure account), the balance sheet, the cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 July 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006 and Charities Act 2011. 

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

32 



**INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF L’ARCHE** (CONTINUED) 

## **Other information** 

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the strategic report and the trustees’ report have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report. 

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

33 



**INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF L’ARCHE** (CONTINUED) 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures can detect irregularities, including fraud, is detailed below. 

We gained an understanding of the legal and regulatory framework applicable to the charitable company and the sector in which it operates and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

We focused on laws and regulations, relevant to the charitable company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of minutes and legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the trustees or management that represented a risk of material misstatement due to fraud. 

A further description of our responsibilities is available on the FRC’s website at: **www.frc.org.uk/auditorsresponsibilities** This description forms part of our auditor’s report. 

34 



**INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF L’ARCHE** (CONTINUED) 

## **Use of our report** 

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

## _**Lesley Kendrew**_ 

(Senior Statutory Auditor) 

For and on behalf of BHP LLP, Statutory Auditor 

Date: 2[nd] February 2022 

BHP LLP , New Chartford House, Centurion Way, Cleckheaton, West Yorkshire, BD19 3QB, United Kingdom 

35 



## **FINANCIAL STATEMENTS** 

_**Statement of financial activities incorporating Income and Expenditure Account for the year ended 31[st] July 2021.**_ 

||Total<br>2020<br>£<br>**Total**<br>**2021**<br>**£**<br>Restricted<br>Funds<br>£<br>Endowment<br>Funds<br>£<br>Unrestricted<br>Funds<br>£<br>Notes|
|---|---|
||277,703<br>12,622,358<br>82,852<br>**12,982,913**<br>**644,214**<br>**414,431**<br>**229,783**<br>**644,214**<br>-<br>**644,214**<br>9,657<br>**653,871**<br>**12,358,654**<br>**13,012,525**<br>874,309<br>7,308<br>12,742,510<br>3,000<br>**13,627,127**<br>**335,389**<br>**13,890,229**<br>**152,519**<br>**14,378,137**<br>**315,486**<br>**(122,306)**<br>**437,792**<br>**315,486**<br>-<br>**315,486**<br>21,610<br>**337,096**<br>**13,012,525**<br>**13,349,621**<br>**1,245,144**<br>**330**<br>**13,447,539**<br>**610**<br>**14,693,623**<br>13,968<br>291,841<br>141,893<br> **447,702**<br>**374,910**<br>(36,199)<br>411,109<br>**374,910**<br>(394,614)<br>**(19,704)**<br>-<br>**(19,704)**<br>**1,094,090**<br>**1,074,386**<br>822,612<br>-<br>-<br>-<br>**822,612**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>2,100<br>**2,100**<br>**98,175**<br>**100,275**<br>-<br>-<br>-<br>-<br>-<br>321,421<br>13,598,388<br>10,626<br>**13,930,435**<br>**(59,424)**<br>(86,107)<br>26,683<br>**(59,424)**<br>394,614<br>**335,190**<br>19,510<br>**354,700**<br>**11,820,260**<br>**12,174,960**<br>422,532<br>330<br>13,447,539<br>610<br>**13,871,011**<br>4<br>5<br>6<br>6<br>7<br>8<br>16<br>16<br>16<br>1<br>2<br>3<br>Incoming resources from<br>generated funds:<br>Voluntary income<br>Donations and Grants<br>Investment income<br>Incoming resources from<br>charitable activities<br>Other incoming resources<br>Proft on disposal of fxed<br>assets<br>**Total incoming resources**<br>**RESOURCES EXPENDED**<br>**Costs of generating funds**<br>Fundraising and publicity<br>**Charitable activities**<br>Direct charitable expenditure<br>Donations made<br>**Total resources expended**<br>**Net incoming resources**<br>**before transfers**<br>_Analysed as:_<br>Operating (defcit)/surplus<br>Net non operating income<br>after fundraisingcosts<br>**Net incoming resources**<br>**before transfers**<br>Transfer between funds<br>**Net income for the year**<br>Other recognised gains &<br>losses:<br>Unrealised gain on<br>investments<br>**Net movement in funds**<br>**Balances brought forward**<br>**at 1st August 2020**<br>**Balances carried forward**<br>**at 31st July 2021**<br>**INCOME AND EXPENDITURE**<br>**INCOMING RESOURCES**|



**The operating surplus (deficit) for the year arises from the company’s continuing operations.** 

36 



_**Balance sheet at 31[st] July 2021**_ 

||2020<br>£<br>2021<br>£<br>Notes|
|---|---|
||8,688,133<br>148,607<br>**8,836,740**<br>2,701,819<br>3,183,755<br>5,885,574<br>1,430,743<br>**4,454,831 **<br>**13,291,571**<br>279,046<br>**13,012,525**<br>2,334,971<br>993,535<br>8,491,754<br>1,094,090<br>98,175<br> **13,012,525**<br>9,177,697<br>170,217<br>**9,347,914**<br>1,883,454<br>3,938,767<br>5,822,221<br>1,572,905<br>**4,249,316**<br>**13,597,230**<br>247,609<br>**13,349,621 **<br>2,471,194<br>704,520<br>8,999,246<br>1,074,386<br>100,275<br> **13,349,621**<br>9<br>10<br>11<br>12<br>13<br>14<br>16a<br>16a<br>16a<br>16b<br>16c<br>FIXED ASSETS<br>Tangible assets<br>Investments<br>CURRENT ASSETS<br>Debtors<br>Cash at bank and in hand<br>CREDITORS<br>Amounts falling due within one year<br>**NETCURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>CREDITORS<br>Amounts falling due after more than one year<br>**NET ASSETS**<br>THE FUNDS OF THE CHARITY<br>_Unrestricted_<br>General Fund<br>Development Fund<br>Fixed Asset Fund<br>_Restricted_<br>Development Funds<br>_Endowment_<br>General Fund<br>**TOTAL CHARITY FUNDS**|



**The financial statements were approved by the Finance Sub-Committee and authorised  for issue on 26[th] January 2022 and were signed on its behalf by:** 


**A. MacGreevy** _Director_ 


**R. Clark** _Director_ 

Company number: 1055041 

37 



_**Cash flow statement for the year ended 31[st] July 2021**_ 

||2020<br>£<br>2021<br>£<br>Notes|
|---|---|
||85,479<br>3,377<br>(162,494)<br>(73,638)<br>(17,220)<br>**(90,858)**<br>**3,274,613**<br>**3,183,755**<br>1,658,603<br>(4,656)<br>(881,007)<br>772,940<br>(17,928)<br>**755,012**<br>**3,183,755**<br>**3,938,767**<br>17a<br>17b<br>17c<br>17e<br>**CASH FLOW**<br>Net cash infow from operating and other activities<br>Investments and servicing of fnance<br>Net capital expenditure<br>Financing outfow<br>Increase/(Decrease) in cash<br>**CASH AND CASH EQUIVALENTS**<br>As at 1stAugust 2020<br>As at 31stJuly 2021|



38 



**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2021** 

## _**Principal accounting policies**_ 

## **Basis of Accounting** 

The financial statements have been prepared on a going concern basis in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

L’Arche meets the definition of a public benefit entity under FRS 102. 

## **Going Concern** 

The Trustees have considered the impact of Covid-19 on the Charity’s income and beneficiaries, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Trustees are confident that they have plans in place to deal with and mitigate any financial losses that may arise. The Trustees therefore consider that the level of reserves for the charity are adequate. The Trustees continue to adopt the going concern basis of preparation for these financial statements. 

## **Grants, Donations and Legacies** 

Grants and donations for which the purpose is restricted within the meaning of Charity Accounting Regulations are shown as income under the heading of Donations in the Statement of Financial Activities. Restricted Donations are transferred to the Development Fund where they are held until expenditure in accordance with the grant is incurred. At this point any shortfall is transferred to the General Fund. At the discretion of L’Arche, general donations may be designated to development projects and treated in the same manner as restricted donations (see Note 16). Entitlement to Legacies is taken as the earlier of the date on which either: 

- the charity is aware that probate has been granted, the estate has been finalised and notification has been received by the Charity from the executors that a distribution will be made 

- or when a distribution is received from the estate 

Other grants and donations received are treated as income in the period in which they are receivable. 

## **Incoming Resources from Charitable Activities and Operating Surplus/(Deficit)** 

Incoming Resources from Charitable Activities represents the aggregate of Residents’ Income Support, Local and Central Government grants and receipts and other non-government receipts provided for the maintenance of the Communities and their residents. The operating surplus/(deficit) comprises operating income less Direct Charitable Expenditure and Administration costs. See note 8 for the detailed figures. 

## **Expenditure Allocation** 

Expenditure is analysed between Direct Charitable Expenditure, (which represents actual direct costs incurred by the Communities), Fundraising and Publicity, Administration and Governance. 

39 



Some elements of Community costs have been paid by Central Administration but have been recharged to Direct Charitable Expenditure where appropriate. 

Governance costs are those costs incurred in respect of the general running of L’Arche as opposed to those costs arising directly and indirectly from the provision of care and support for people with learning disabilities. Included within governance are items such as audit, legal advice for trustees and costs associated with constitutional and statutory requirements. 

## **Interest Receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 

## **Donations for L’Arche International and Overseas Communities** 

Where donations have been raised for the specific purpose of distribution to L’Arche Overseas Communities, to minimise administration costs there can be a delay in the transfer of these funds to the projects for which they have been given. The size of the sums involved warrant separate disclosure from other funds donated to L’Arche UK. 

## **Tangible Fixed Assets** 

Tangible fixed assets are stated at cost less accumulated depreciation. Where tangible fixed assets are donated, the cost is the value to the Company at the date of acquisition. Items costing under £500 are written off in the year of purchase. 

## **Depreciation** 

Depreciation is provided on tangible fixed assets in equal annual instalments sufficient to write off the cost of the assets over their expected useful lives. A full year’s depreciation is charged on acquisition; no charge is made in the year of disposal or on assets in the course of construction. The basis is: 

|Category|Years|
|---|---|
|Freehold buildings|40 years|
|Long and short leasehold buildings|period of the lease|
|Tools and equipment|4 years|
|Motor vehicles|4 years|



Freehold land is excluded from the depreciation on the basis of value at date of acquisition. The cost of fixtures and fittings is accounted for as expenditure in the year in which it is incurred. 

## **Investments** 

All investments are stated at market value. The market value of listed investments is derived from prices quoted on the PLUS Market (formerly OFEX). Unrealised changes made to the balance sheet market values are reflected in the Statement of Financial Activities. 

## **Debtors** 

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

40 



## **Cash at Bank and In Hand** 

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## **Liabilities and Provisions** 

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 

## **Financial Instruments** 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest rate method. 

## **Pension Costs** 

The Company auto enrols qualifying employees as members of a group personal pension scheme, administered by Royal London. The Company’s contributions are included in Resources Expended in the Statement of Financial Activities in the year in which the contributions are made. 

## **Leased Assets and Obligations** 

All leases are “operating leases” and the annual rentals are charged to profit and loss on a straight line basis over the lease term. 

## **Funds** 

The General Fund consists of amounts received which have yet to be committed or designated to a specific use by the Company. The Development Fund comprises grants and donations received for or appropriated to development projects. It contains amounts either restricted by the donor or designated by the Company for specific purposes. The Fixed Asset Fund, Unrestricted and Endowed, represents the net book value of property and other tangible fixed assets less long-term borrowings on property. 

## **Foreign Currencies** 

Transactions in foreign currencies are recorded at the rate ruling on the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities. 

41 



## _**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **1. DONATIONS** 

||2020<br>Total<br>£<br>Restricted<br>£<br>2021<br>Total<br>£<br>Unrestricted<br>£|
|---|---|
||-<br>309,189<br>369,116<br>142,356<br>820,661<br>53,648<br>**874,309**<br>-<br>-<br>580,606<br>126,596<br>707,202<br>115,410<br>**822,612**<br>-<br>415,156<br>580,606<br>133,972<br>1,129,734<br>115,410<br>**1,245,144**<br>-<br>415,156<br>-<br>7,376<br>422,532<br>-<br>**422,532**<br>**Donations and Grants**<br>**received for general purposes:**<br>a. retained in the General Fund<br>b. designated to the Development Fund<br>**Donations and Grants**<br>a. received for UK Development<br>b. received for L’Arche International<br>**Grants received from the Job**<br>**Retention**<br>Scheme and Devolved Government<br>Grants|



## **2. INVESTMENT INCOME** 

||2020<br>Total<br>£<br>Restricted<br>£<br>2021<br>Total<br>£<br>Unrestricted<br>£|
|---|---|
||6,479<br>829<br>**7,308**<br>-<br>-<br>-<br>328<br>2<br>**330**<br>328<br>2<br>**330**<br>Bank interest<br>Income from investments|



Income from investments includes £0 (2020: £819) deriving from an investment of endowment funds. 

## **3. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES** 

||2020<br>Total<br>£<br>2021<br>Total<br>£|
|---|---|
||11,002,119<br>1,395,525<br>202,928<br>118,803<br>23,135<br>**12,742,510**<br>11,749,607<br>1,366,700<br>221,436<br>98,826<br>10,970<br>**13,447,539**<br>Income from Care and Support Provision<br>Income from Housing Services<br>Other funding<br>Sundry receipts<br>Sale of Products|



42 



## _**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **4. COSTS OF GENERATING FUNDS** 

||Total<br>2020<br>£<br>Total<br>2021<br>£<br>Endowment<br>Funds<br>£<br>Restricted<br>Funds<br>£<br>Unrestricted<br>Funds<br>£|
|---|---|
||70,638<br>207,065<br>**277,703**<br>71,804<br>263,585<br>**335,389**<br>-<br>-<br>-<br>-<br>13,968<br>**13,968**<br>71,804<br>249,617<br>**321,421**<br>Publicity<br>Fundraising<br>**5. DIRECT CHARITABLE EXPENDITURE**|
||Total<br>2020<br>£<br>Total<br>2021<br>£<br>Endowment<br>Funds<br>£<br>Restricted<br>Funds<br>£<br>Unrestricted<br>Funds<br>£|
||8,867,075<br>702,704<br>1,221,748<br>294,215<br>363,255<br>50,427<br>192,747<br>101,549<br>45,801<br>3,931<br>650,137<br>128,696<br>73<br>**12,622,358**<br>10,119,832<br>686,631<br>1,282,166<br>325,235<br>379,169<br>28,493<br>201,626<br>40,330<br>49,032<br>4,986<br>671,706<br>101,023<br>-<br>**13,890,229**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>164,558<br>1,761<br>10,212<br>31,739<br>-<br>390<br>4,373<br>3,023<br>500<br>-<br>75,285<br>-<br>-<br>**291,841**<br>9,955,274<br>684,870<br>1,271,954<br>293,496<br>379,169<br>28,103<br>197,253<br>37,307<br>48,532<br>4,986<br>596,421<br>101,023<br>-<br>**13,598,388**<br>**_Community operating costs_**<br>Employment and training<br>Household costs<br>& community activities<br>Occupancy costs<br>Repairs, maintenance & renewals<br>Depreciation<br>Workshop costs<br>**_Support costs_**<br>Ofce costs<br>Motor & travel<br>Legal & professional<br>Loan interest<br>Direct support and development<br>Governance Costs<br>Loss on disposal of fxed assets|



43 



_**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **6. TOTAL RESOURCES EXPENDED** 

||Total<br>2020<br>£<br>Total<br>2021<br>£<br>Other<br>Costs<br>£<br>Depreciation<br>£<br>Staf<br>Costs<br>£|
|---|---|
||75,638<br>3,000<br>4,214<br>**82,852**<br>12,622,358<br>277,703<br>**12,982,913**<br>**149,269**<br>**3,000**<br>**250**<br>**152,519**<br>**13,890,229**<br>**335,389**<br>**14,378,137**<br>149,269<br>3,000<br>250<br>**152,519**<br>2,778,162<br>114,777<br>**3,045,458**<br>-<br>-<br>-<br>-<br>388,043<br>4,010<br>**392,053**<br>-<br>-<br>-<br>-<br>10,724,024<br>216,602<br>**10,940,626**<br>Donations to L’Arche<br>International<br>Donations to L’Arche<br>Benevolent Trust<br>Otherdonations<br>**Total donations**<br>Direct charitable expenditure<br>Fundraising and publicity|



L’Arche Benevolent Trust is an independent registered charity with the objective of assisting employees and ex-employees of L’Arche who may require financial support as a result of personal hardship. 

||Total<br>2020<br>£<br>Total<br>2021<br>£|
|---|---|
||8,531,837<br>580,051<br>242,677<br>190,453<br>**9,545,018**<br>9,802,892<br>691,726<br>262,585<br>183,423<br>**10,940,626**<br>**Staf costs**<br>Salaries<br>National Insurance<br>Pension and life assurance costs<br>Training|



The number of staff receiving employer’s contributions into the pension scheme was 393 (2020: 364). At the year end, no premiums were outstanding to the pension scheme provider (2020: £nil) 

||Total<br>2020<br>£<br>Total<br>2021<br>£|
|---|---|
||82,852<br>719,319<br>50,427<br>1,543,620<br>253,349<br>153,712<br>32,738<br>116,816<br>3,931<br>105,376<br>**3,062,140**<br>152,519<br>687,062<br>28,493<br>1,628,137<br>246,310<br>49,216<br>25,786<br>108,172<br>4,986<br>114,777<br>**3,045,458**<br>**Other costs**<br>Donations<br>Household costs & community activities<br>Workshop costs<br>Occupancy costs, repairs & renewals<br>Ofce costs<br>Motor & travel<br>Community support and development<br>Legal & professional<br>Loan interest<br>Fundraisingandpublicity|



44 



## **6. TOTAL RESOURCES EXPENDED (cont.)** 

The key management personnel of the Charity comprise the Trustees and the National Leadership Team - the National Leader, Deputy National Leader, Regional Leaders, Human Resources Co-ordinator, Finance Co-ordinator, Communications and Fundraising Co-ordinator and Formation Co-ordinator. 

The  total remuneration of the National Leadership Team was £426,893 (2020: £374,160). 

The Statement of Recommended Practice “Accounting and Reporting by Charities” requires disclosure of the number of employees whose remuneration was in excess of £60,000.  No employee received remuneration in the range £60,001 - £70,000 (2020: 1). 

During the year, no directors, who act as trustees of the charity, were reimbursed in respect of travel or other expenses (2020: 4 - £1,328). The trustees receive no remuneration.. 

During the year, there were no transactions between related parties (2020: nil) 

Excluding the Committee members, the average weekly number of employees, analysed by function was: 

||2020<br>2021|
|---|---|
||404<br>16<br>5<br>**425**<br>422<br>17<br>4<br>**443**<br>Communities<br>Administration and Finance<br>Fundraising and publicity|



## **7. NET INCOMING RESOURCES BEFORE TRANSFERS** 

The net incoming resources before transfers in the Statement of Financial Activities are stated after charging/(crediting) the following amounts: 

||2021|2020|
|---|---|---|
||£|£|
|Auditors’ remuneration - audit services|18,120|16,794|
|Auditors’ remuneration – other services<br>Depreciation charge for the year on tangible fxed assets|900<br>392,053|1,206<br>375,755|
|Cost of operating leases (see note 15)<br>Proft on disposal of tangible fxed assets|10,561<br>(610)|10,561<br>(2,927)|



45 



## _**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **8. TOTAL RESOURCES EXPENDED** 

||Total<br>2020<br>£<br>Total<br>2021<br>£<br>Endowment<br>Funds<br>£<br>Restricted<br>Funds<br>£<br>Unrestricted<br>Funds<br>£|
|---|---|
||12,742,510<br>7,230<br>357,687<br>3,000<br>**13,110,427**<br>12,622,358<br>3,000<br>70,638<br>**12,695,996**<br>**414,431**<br>13,447,539<br>330<br>394,248<br>610<br>**13,842,727**<br>13,890,229<br>3,000<br>71,804<br>**13,965,033**<br>**(122,306)**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>255,642<br>-<br>**255,642**<br>291,841<br>-<br>-<br>**291,841**<br>**(36,199)**<br>13,447,539<br>330<br>138,606<br>610<br>**13,587,085**<br>13,598,388<br>3,000<br>71,804<br>**13,673,192**<br>**(86,107)**<br>Operating income<br>Investment income applied<br>to operating expenditure<br>Donations for<br>operating expenditure<br>Proft on disposal of fxed assets<br>Less:<br>Direct charitable expenditure<br>Contributions to<br>Benevolent Trust<br>Publicity Costs<br>**Operating (Defcit)/Surplus**<br>The operating defcit as stated in the SOFA is calculated as follows:|



46 



## _**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **9. TANGIBLE FIXED ASSETS** 

||Total<br>£<br>Motor<br>vehicles<br>£<br>Tools<br>and<br>equipment<br>£<br>Short<br>leasehold<br>buildings<br>£<br>Long<br>leasehold<br>buildings<br>£<br>Freehold<br>land and<br>buildings<br>£|
|---|---|
||13,255,459<br>881,617<br>-<br>(40,107)<br>**14,096,969**<br>4,567,326<br>392,053<br>-<br>(40,107)<br>**4,919,272**<br>**9,177,697**<br>**8,688,133**<br>152,399<br>1,200<br>-<br>(38,953)<br>**114,646**<br>117,553<br>11,807<br>-<br>(38,953)<br>**90,407**<br>**24,239**<br>**34,846**<br>1,271,948<br>70,974<br>-<br>(1,154)<br>**1,341,768**<br>1,133,111<br>78,707<br>-<br>(1,154)<br>**1,210,664**<br>**131,104**<br>**138,837**<br>890,184<br>-<br>(13,331)<br>-<br>**876,853**<br>259,632<br>38,531<br>-<br>-<br>**298,163**<br>**578,690**<br>**630,552**<br>688,825<br>-<br>-<br>-<br>**688,825**<br>362,123<br>14,866<br>-<br>-<br>**376,989**<br>**311,836**<br>**326,702**<br>10,252,103<br>809,443<br>13,331<br>-<br>**11,074,877**<br>2,694,907<br>248,142<br>-<br>-<br>**2,943,049**<br>**8,131,828**<br>**7,557,196**<br>**COST**<br>1st August 2020<br>Additions<br>Re-allocations<br>Disposals<br>31st July2021<br>**DEPRECIATION**<br>1st August 2020<br>Charge for year<br>Re-allocations<br>Disposals<br>31st July2021<br>**NET BOOK VALUE**<br>31st July2021<br>31st July2020|



Leasehold buildings are sub-divided into those held under short leases (50 years and under) and those held under long leases (over 50 years). 

47 



## _**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **10. INVESTMENTS** 

||Total<br>£<br>Unlisted<br>£<br>Listed<br>£<br>Quoted<br>£|
|---|---|
||148,607<br>21,610<br>**170,217**<br>3,230<br>-<br>-<br>-<br>-<br>98,175<br>2,100<br>**100,275**<br>3,230<br>50,432<br>19,510<br>**69,942**<br>-<br>Market value 1st August 2020<br>Unrealised investmentgains<br>**Market value 31st July 2021**<br>Historical cost 31st July 2021|



All investments are in the United Kingdom. 

The listed investments were given to L’Arche as an endowment, and comprise 1,050 shares in Adnams Brewery, an Aquis Stock Exchange company, with a market value of £95.50 per share at 31st July 2021 (2020: £93.50). 

## **11. DEBTORS** 

||2020<br>£<br>2021<br>£|
|---|---|
||412,173<br>2,289,646<br>**2,701,819**<br>398,405<br>1,485,049<br>**1,883,454**<br>Other debtors<br>Prepayments and accrued income<br>**12. CASH AT BANK AND IN HAND**|
||2020<br>£<br>2021<br>£|
||12,147<br>3,171,608<br>**3,183,755**<br>9,328<br>3,929,439<br>**3,938,767**<br>Working cash balances<br>Bank deposits|



The cash requirement of any major project, either capital or revenue, is estimated at least six months prior to its commencement and the fundraising process starts as soon as the project has been approved. Since funds raised for a project may not be spent for several months, this can result in temporarily high cash balances. 

48 



_**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **13. CREDITORS - Amounts falling due within one year** 

||2020<br>£<br>2021<br>£|
|---|---|
||170,381<br>110,540<br>666,843<br>16,483<br>466,496<br>**1,430,743**<br>194,622<br>63,848<br>668,881<br>16,483<br>629,071<br>**1,572,905**<br>Taxation and social security costs<br>Residents’ grants received in advance<br>Other creditors<br>Triodos loan<br>Accruals and deferred income|



Residents’ grants received in advance refers to funding received from statutory bodies and we would anticipate it would be no greater than 1 month in respect of individual residents. 

## **14. CREDITORS - Amounts falling due after more than one year** 

||2020<br>£<br>2021<br>£|
|---|---|
||14,814<br>44,442<br>137,123<br>**196,379**<br>82,667<br>**279,046**<br>14,814<br>44,442<br>119,195<br>**178,451**<br>69,158<br>**247,609**<br>Triodos loan<br>Falling due 1-2 years<br>Falling due 2-5 years<br>Fallingdue over 5years<br>Other Creditors|



The Triodos loan at Ipswich is secured on 3 Warrington Road, Ipswich, with an interest rate fixed at 1.25% over base and is for a period of 25 years. 

49 



_**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **15. COMMITMENTS AND CONTINGENCIES** 

## **a) Operating Lease Commitments** 

At 31 July 2021 the company was committed to making the following payments during the next year under non-cancellable operating leases as follows:- 

||2020<br>Land &<br>buildings<br>£<br>2021<br>Land &<br>buildings<br>£|
|---|---|
||666,843<br>16,483<br>466,496<br>**1,430,743**<br>10,561<br>42,244<br>188,338<br>**241,143**<br>Falling due with 12 months<br>Falling due within 2-5 years<br>Fallingdue over 5years|



The majority of the company’s leases of land and buildings are subject to rent review periods ranging between 3 and 5 years. All leases currently held by L’Arche are Operating Leases. 

## **b) Capital Projects Planned and Committed** 

Capital  projects  planned  at  31st  July  2021 amounted  to  a  total  of  £1,229,000 (2020: £1,325,644). 

||31st July<br>2021<br>£<br>Expended<br>£<br>Allocated<br>(Released)<br>£<br>1st August<br>2020<br>£|
|---|---|
||-<br>880,000<br>880,000<br>-<br>**880,000**<br>-<br>-<br>-<br>(96,644)<br>**(96,644)**<br>(1,229,000)<br>880,000<br>(349,000)<br>-<br>**(349,000)**<br>1,229,000<br>-<br>1,229,000<br>96,644<br>**1,325,644**<br>**Planned**<br>Ipswich, Development of Anchor into<br>Flats<br>Ipswich,Purchase of New Property<br>**Committed**<br>Inverness,Phase 2 Braerannoch|



At 31st July 2021, total pledges received in respect of the above projects totalled £299,375 (2020 - £539,365) 

50 



## _**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **16. FUNDS** 

## **a) Unrestricted Funds** 

||Total<br>Funds<br>£<br>Development<br>Fund<br>£<br>Fixed Asset<br>Fund<br>£<br>General<br>Fund<br>£|
|---|---|
||**11,820,260**<br>(59,424)<br>-<br>-<br>394,614<br>-<br>-<br>-<br>19,510<br>**354,700**<br>**12,174,960**<br>**993,535**<br>-<br>422,532<br>(818,176)<br>394,614<br>-<br>-<br>(287,985)<br>-<br>**(289,015)**<br>**704,520**<br>**8,491,754**<br>-<br>-<br>881,617<br>-<br>17,928<br>(392,053)<br>-<br>-<br>**507,492**<br>**8,999,246**<br>**2,334,971**<br>(59,424)<br>(422,532)<br>(63,441)<br>-<br>(17,928)<br>392,053<br>287,985<br>19,510<br>**136,223**<br>**2,471,194**<br>**1st August 2020**<br>**Fund movements for the year:**<br>Net incoming resources for the year<br>Donations and Grants received for general purposes<br>Purchase of tangible fxed assets<br>Derestriction on purchase of tangible fxed assets<br>Repayment of loans and mortgages on property<br>Transfer for depreciation<br>Development Funds expended<br>Unrealised gain on investments<br>**Total fund movements**<br>**31st July 2021**|



## **b) Restricted Funds** 

||Total<br>Funds<br>£<br>Development<br>Fund<br>£<br>Fixed Asset<br>Fund<br>£<br>General<br>Fund<br>£|
|---|---|
||**1,094,090**<br>374,910<br>(394,614)<br>**(19,704)**<br>**1,074,386**<br>**1,094,090**<br>374,910<br>(394,614)<br>**(19,704)**<br>**1,074,386**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>-<br>-<br>-<br>-<br>-<br>**1st August 2020**<br>**Fund movements for the year:**<br>Net incoming resources for the year<br>Derestriction onpurchase of tangible fxed assets<br>**Total fund movements**<br>**31st July 2021**|



The Restricted Funds form part of Bank Deposits. 

51 



_**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **16. FUNDS (cont.)** 

## **c) Endowment Funds** 

||Total<br>Funds<br>£<br>Development<br>Fund<br>£<br>Fixed Asset<br>Fund<br>£<br>General<br>Fund<br>£|
|---|---|
||**98,175**<br>2,100<br>**2,100**<br>**100,275**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**98,175**<br>2,100<br>**2,100**<br>**100,275**<br>**1st August 2020**<br>**Fund movements for the year:**<br>Unrealisedgain on investments<br>**Total fund movements**<br>**31st July 2021**|



## **d) Summary** 

||Total<br>Funds<br>£<br>Development<br>Fund<br>£<br>Fixed Asset<br>Fund<br>£<br>General<br>Fund<br>£|
|---|---|
||**13,012,525**<br>315,486<br>-<br>-<br>-<br>-<br>21,610<br>**337,096**<br>**13,349,621**<br>**2,087,625**<br>374,910<br>(818,176)<br>-<br>-<br>134,547<br>-<br>**(308,719)**<br>**1,778,906**<br>**8,491,754**<br>-<br>881,617<br>17,928<br>(392,053)<br>-<br>-<br>**507,492**<br>**8,999,246**<br>**2,433,146**<br>(59,424)<br>(63,441)<br>(17,928)<br>392,053<br>(134,547)<br>21,610<br>**138,323**<br>**2,571,469**<br>**1st August 2020**<br>**Fund movements for the year:**<br>Net incoming resources for the year<br>Purchase of tangible fxed assets<br>Repayment of loans and mortgages on property<br>Adjustment for depreciation<br>Transfer between funds<br>Unrealisedgain on investments<br>**Total fund movements**<br>**31st July 2021**|



52 



_**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **16. FUNDS (cont.)** 

## **Restricted Funds** 

||1st August<br>2020<br>£|31st July<br>2021<br>£<br>Derestricted<br>£<br>Expended<br>£<br>Incoming<br>£<br>Movement in Resources|
|---|---|---|
||19,816<br>20,172<br>48,346<br>189,951<br>59,270<br>369,975<br>59<br>-<br>70,753<br>10,184<br>50<br>28,698<br>**Transforming Lives**<br>**Expanding the Contribution of People**<br>**with Learning Disabilities in Society**<br>Developing resources to help people with<br>learning disabilites deepen their spiritual<br>lives<br>**Creating More Places to Call Home**<br>**New Communities**<br>Nottingham<br>Scotland<br>**Capital & Refurbishment Appeals**<br>Ipswich - Purchase and Development of New<br>Project<br>Manchester - Day Service Development<br>Inverness - Development and Refurbishment<br>of Braerannoch Site<br>**Investing in Leadership, Young People &**<br>**Infrastructure for Growth**<br>Assistant Induction Programme<br>Investment in Charity Infrastruture<br>**Investment in Programmes & Projects**<br>**Of L’Arche International**<br>India<br>Africa<br>Poland<br>International|17,650<br>18,994<br>48,346<br>210,243<br>20,855<br>-<br>45,785<br>83,277<br>2,117<br>11,174<br>-<br>82,353<br>**540,794**<br>74,565<br>18,913<br>89,765<br>24,210<br>30,706<br>5,111<br>41,985<br>97,521<br>2,896<br>146,067<br>-<br>-<br>1,853<br>**1,074,386**<br>-<br>-<br>-<br>-<br>-<br>(369,975)<br>-<br>-<br>-<br>-<br>-<br>-<br>**(369,975)**<br>(1,200)<br>(12,179)<br>-<br>-<br>(11,260)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**(394,614)**<br>(2,166)<br>(2,892)<br>-<br>-<br>(38,415)<br>-<br>(53,171)<br>(18,349)<br>(87,444)<br>(14,888)<br>(50)<br>(39,511)<br>**(256,886)**<br>(1,364)<br>(10,460)<br>(7,655)<br>(37,435)<br>(500)<br>-<br>(1,383)<br>(1,293)<br>(50)<br>(11,266)<br>(58,586)<br>(56,824)<br>(4,000)<br>**(447,702)**<br>-<br>1,714<br>-<br>20,292<br>-<br>-<br>98,897<br>101,626<br>18,808<br>15,878<br>-<br>93,166<br>**350,381**<br>42,073<br>7,128<br>88,064<br>9,607<br>3,070<br>-<br>17,667<br>95,626<br>50<br>93,536<br>58,586<br>56,824<br>-<br>**822,612**|
||**817,274**<br>35,056<br>34,424<br>9,356<br>52,038<br>39,396<br>5,111<br>25,701<br>3,188<br>2,896<br>63,797<br>-<br>-<br>5,853<br>**Total Transforming Lives**<br>**Local Community Projects**<br>Kent<br>Inverness<br>Liverpool<br>London<br>Bognor<br>Brecon<br>Edinburgh<br>Preston<br>Ipswich<br>Manchester<br>**Other**<br>Grants from Job Retention Scheme<br>Scottish and Welsh Government Grants to<br>Social Care Staf<br>Other restricted donations and gifts||
||**1,094,090**||



53 



_**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **16. FUNDS (cont.)** 

## **Endowment Funds** 

||31st July<br>2021<br>£<br>1st August<br>2020<br>£<br>Gains and<br>transfers<br>£|
|---|---|
||100,275<br>**100,275**<br>98,175<br>**98,175**<br>2,100<br>**2,100**<br>Adnams shares|



The Adnams shares were given as endowment to L’Arche; the dividends from which can be used for general purposes. 

||**Analysis of net assets between funds**|
|---|---|
||Total<br>Funds<br>£<br>Restricted<br>Funds<br>£<br>General<br>Funds<br>£<br>Endowment<br>Funds<br>£|
||9,177,697<br>170,217<br>5,822,221<br>(1,572,905)<br>(247,609)<br>**13,349,621**<br>-<br>-<br>1,074,386<br>-<br>-<br>**1,074,386**<br>9,177,697<br>69,942<br>4,747,835<br>(1,572,905)<br>(247,609)<br>**12,174,960**<br>-<br>100,275<br>-<br>-<br>-<br>**100,275**<br>Tangible fxed assets<br>Investments<br>Current assets<br>Current liabilities<br>Long term liabilities<br>**Net assets as at 31 July 2021**|



54 



_**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **17. NOTES TO CASH FLOW STATEMENT** 

## **a. RECONCILIATION of net incoming resources to net cash inflow from operating and other activities** 

||2020<br>£<br>2021<br>£|
|---|---|
||644,214<br>(7,308)<br>3,931<br>375,755<br>(2,927)<br>(1,322,034)<br>393,848<br>**85,479**<br>7,308<br>(3,931)<br>**3,377**<br>(165,498)<br>3,004<br>**(162,494)**<br>(90,858)<br>17,220<br>(73,638)<br>3,044,531<br>**2,970,893**<br>Net incoming resources<br>Investment income receipts<br>Finance costs paid<br>Depreciation charges<br>Proft on sale of tangible fxed assets (net)<br>Decrease/(Increase) in debtors<br>Increaseincreditors<br>**Net cash infow from operating and other activities**<br>**b. INVESTMENTS AND SERVICING OF FINANCE**<br>Investment income receipts<br>Finance costspaid<br>**c. NET CAPITAL EXPENDITURE**<br>Payments to acquire tangible fxed assets<br>Receipts from sales of tangible fxed assets<br>**d. RECONCILIATION of net cash fow to movement in net debt**<br>Increase/(Decrease) of cash in the period<br>Loan repayments<br>Movement in net funds in the year<br>Net Funds as at 1st August 2020<br>**Net Funds as at 31st July 2021**<br>315,486<br>(330)<br>4,986<br>392,053<br>(610)<br>818,365<br>128,653<br>**1,658,603**<br>330<br>(4,986)<br>**(4,656)**<br>(881,617)<br>610<br>**(881,007)**<br>755,012<br>17,928<br>**772,940**<br>**2,970,893**<br>**3,743,833**|



55 



_**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **17. NOTES TO CASH FLOW STATEMENT (cont.)** 

## **a. ANALYSIS OF CHANGES IN NET CASH AND FINANCING** 

||31st July<br>2021<br>£<br>Cash<br>fows<br>£<br>1st August<br>2020<br>£|
|---|---|
||**3,938,767**<br>(194,934)<br>**(194,934)**<br>**3,743,833**<br>**Cash**<br>Cash at Bank and in hand<br>**Financing**<br>Triodos loan (Ipswich)<br>**Total Financing**<br>**Total Net Funds and Financing**<br>**755,012**<br>17,928<br>**17,928**<br>**772,940**<br>**3,183,755**<br>(212,862)<br>**(212,862)**<br>**2,970,893**|



56 



## _**L’Arche - Financial statements for the year ended 31[st] July 2021**_ 

## **18. STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31[ST] JULY 2020.** 

||Restricted<br>Funds<br>£<br>Endowment<br>Funds<br>£<br>Total<br>2020<br>£<br>Unrestricted<br>Funds<br>£<br>Notes|
|---|---|
||565,120<br>78<br>-<br>-<br>**565,198**<br>94,639<br>224,741<br>76,079<br>**395,459**<br>**169,739**<br>(29,646)<br>199,385<br>**169,739**<br>(57,432)<br>**112,307**<br>-<br>**112,307**<br>**981,783**<br>**1,094,090**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**98,175**<br>**98,175**<br>874,309<br>7,308<br>12,742,510<br>3,000<br>**13,627,127**<br>277,703<br>12,622,358<br>82,852<br>**12,982,913**<br>**644,214**<br>414,431<br>229,783<br>644,214<br>-<br>644,214<br>9,657<br>**653,871**<br>**12,358,654**<br>**13,012,525**<br>**INCOME AND EXPENDITURE**<br>**INCOMING RESOURCES**<br>Incoming resources from generated<br>funds:<br>Voluntary income<br>Donations and Grants<br>Investment income<br>Incoming resources from<br>charitable activities<br>Other incoming resources<br>Proft on disposal of fxed assets<br>**Total incoming resources**<br>**RESOURCES EXPENDED**<br>_Costs of generating funds_<br>Fundraising and publicity<br>_Charitable activities_<br>Direct charitable expenditure<br>Donations made<br>**Total resources expended**<br>**Net incoming resources before**<br>**transfers**<br>_Analysed as:_<br>Operating surplus/(defcit)<br>Net non operating income after<br>fundraisingcosts<br>**Net incoming resources before**<br>**transfers**<br>Transfer between funds<br>**Net income for the year**<br>Other recognised gains & losses:<br>Unrealised gain/(loss) on<br>investments<br>**Net movement in funds**<br>**Balances brought forward**<br>**at 1st August 2019**<br>**Balances carried forward**<br>**at 31st July 2020**<br>309,189<br>7,230<br>12,742,510<br>3,000<br>**13,061,929**<br>183,064<br>12,397,617<br>6,773<br>**12,587,454**<br>**474,475**<br>444,077<br>30,398<br>**474,475**<br>57,432<br>**531,907**<br>9,657<br>**541,564**<br>**11,278,696**<br>**11,820,260**<br>1<br>2<br>3<br>4<br>5<br>6<br>7<br>8<br>16<br>16<br>16|



The operating surplus for the year arises from the company’s continuing operations. 

57 




## **BE PART OF OUR STORY** 

**You can join us in the life-changing L’Arche journey in many ways:** 

- Donate 

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## **Find out more at:** 




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## **Memberships and Associations:** 







L’Arche is a company limited by guarantee, registered in England and Wales, No. 1055041. L’Arche is registered as a charity in England and Wales, No. 264166, and in Scotland, No. SC038493. Registered Office: 10 Briggate, Silsden, Keighley, West Yorkshire BD20 9JT