2021-03-31-accounts

FAMILY ACTION (A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Charity number: 264713 Company number: 01068186 Isle of Man Charity Number: 1026

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FAMILY ACTION

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS	Page
Trustees’ report	3
Independent auditor’s report	21
Statement of financial activities	24
Summary income and expenditure account	25
Balance sheet	26
Statement of cash flows	27
Notes to the statement of cash flows	28
Notes to the financial statements	29

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Welcome from Mary Fulton, Chair of Family Action

I am delighted to present the Family Action Trustees’ report for 2020/21. This has been an extraordinary year for the charity. I said in my foreword to this report last year that Covid would be a huge test for Family Action. I am glad to report that the charity, through excellent planning and management, kept our essential frontline services open while taking the rest of its provision online. At the same time Family Action created a wide range of new services and fundraised millions of pounds so that it could provide additional direct support to tens of thousands of vulnerable people as we all navigated through one of the hardest years for our country in living memory.

I am proud of the leadership, drive and determination that Family Action has shown. The charity has been steadfast in its support for families and individuals affected by the pandemic and has done all it possibly could for those who have been affected the most.

At all times Family Action’s work is driven by its values – Can Do, Excellence, People Focus and Mutual Respect and the way in which the charity lives by those values and demonstrates them in all that it does, has never been more evident.

Key achievements during the year included:

• Providing 200 community-based and national services that together reach hundreds of thousands of children, adults and families;

• Providing a nutritious breakfast to 350,000 children a day in over 2,400 schools, who would otherwise be too hungry to learn, through the National School Breakfast Programme;

• Managing a more than 200% increase in contacts to our FamilyLine service (a free telephone, text, webchat and email service for parents and carers) over the previous year;

• Distributing more than 3,000 financial grants to individuals and families in crisis as a result of the pandemic;

• Expanding our FOOD Clubs from eight in April 2020 to more than 80 by March 2021 in direct response to the food insecurity caused by the pandemic;

• Fundraising more than £4m to provide additional direct support to individuals and families worst affected by the pandemic; and

• Acquiring Portsmouth Abuse and Rape Counselling Service (PARCS) - a Portsmouth-based charity which works with women, men and children affected by rape, sexual abuse and domestic violence.

Family Action has weathered many storms in its 152 year history. As we emerge from Covid-19 please support this fantastic charity to do even more.

maryefulton

Mary Fulton Chair of Trustees 30th September 2021

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Our Objectives

To preserve and protect the good health (in particular mental health) and advance the education of families, individuals and groups within the community, the relief of poverty and the relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage in such ways as the Trustees see fit.

Our Purpose and Activities

Family Action provides services and financial support to strengthen poor, disadvantaged and socially isolated families and children. Through our excellent services we empower our users and ensure that they are heard and listened to. We are committed to maximising our impact so that children and families can look forward to the future and not be defined by their past.

Family Action supports hundreds of thousands of families, adults and children a year through some 200 community-based services across England, Wales and the Isle of Man and a growing portfolio of national services. We help many more every year with financial assistance through our UK wide education and welfare grant programmes and through our FamilyLine. We provide services to strengthen families and communities and to build skills, resilience and improve outcomes for children and their parents and carers.

Our services transform lives and are grouped under the following themes:

Early Years work

• Family Action supports families from preparation for the birth of their child to their child going to school through:

• Perinatal services working with women at risk of post-natal depression from pregnancy to the child’s first birthday;

• Evidence based parenting programmes to support children’s emotional and social development; and

• Managing high quality nurseries, pre-schools and Children’s Centres, particularly in disadvantaged areas.

Children and Families work

Family Action offers services to children, parents and to whole families:

• Family Support from short term targeted interventions to support with specific issues to intensive support for families with complex and enduring needs;

• Specialist work with domestic violence and abuse;

• Behaviour outreach support and emotional wellbeing services in schools;

• SEND information, advice and guidance, and support to families of children and young people;

• Emotional health and wellbeing services including counselling and therapeutic work for children who have suffered trauma, bereavement or abuse, Multi Systemic Therapy and other specialist services for children and families;

• Mentoring and emotional support services for disadvantaged children, young people and care leavers;

• Young Carers services including working with schools to identify and support young carers and their families;

• Relationship Support including supervised contact, working with separated parents and co-parenting;

• WellFamily services in GP surgeries offering advice, support and counselling for patients with non-medical issues; and

• Welfare benefits, debt and housing advice.

Adult Mental Health and Wellbeing work

Family Action works to support and sustain adult recovery through:

• A range of services that provide practical, emotional and financial support; and

• Mentoring and befriending services

National Services

Our growing portfolio of national services includes:

• PAC-UK: specialist adoption support for adopted children and adults, adoptive families, birth families and special guardianship services;

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

• FamilyLine: a national helpline, text, webchat and email advice service with befriending, counselling and coaching;

• Provision of the National School Breakfast Programme which feeds hundreds of thousands of children who would otherwise be too hungry to learn;

• Provision of holiday hunger schemes and FOOD Clubs to alleviate family hunger;

• Provision of grants for families and individuals in need;

• Supporting young people with work experience and into employment through the HeadStart programme; and

• Training and Consultancy services.

Our Staff

Family Action is committed to encouraging diversity, promoting equal opportunities, and providing fair treatment in all that we do. We strive for a working environment that is inclusive, free from discrimination and where everyone is treated with dignity and respect.

We believe that people with different backgrounds, skills, attitudes and experiences bring fresh ideas and perspectives to the workplace. We seek to encourage and harness these differences in order to meet the changing needs and requirements of our staff, volunteers, service users, governance, partners, funders and supporters. We were delighted this year to be named, for a fourth year running, in The Sunday Times Best 100 List of Not for Profits to work for at No.7 in that List (up from 53 last year). For the first time we were also listed in The Sunday Times Best 100 List of Large Companies at No. 55. The Sunday Times Best 100 this year also awarded Family Action three stars, the highest rating possible, for our “world-class level of employee engagement”.

We hold the Investors in Diversity Accreditation Level 2 for our commitment to Equality & Diversity. We also hold the Level 2 – Disability Confident Employer status which confirms that Family Action is committed to the recruitment and retention of disabled people, and that we do the following to enable this:

• Interview all applicants with a disability who meet the minimum criteria for a job vacancy and consider them on their abilities. We operate a guaranteed interview process for any candidate who meets the essential criteria for a role, and ensure that where candidates require reasonable adjustments in the selection process, that these are implemented. All recruiting managers receive training in our recruitment processes.

• Ensure there is a mechanism in place to discuss, at any time, but at least once a year, with disabled employees what can be done to make sure they can develop their abilities. We do this through monthly supervision with all staff and an annual appraisal review, where career development is discussed with every employee at Family Action. There are many opportunities for staff to get involved in exciting projects, and all staff are encouraged to do this.

• Make every effort when employees become disabled to make sure they stay in employment. We discuss with employees any reasonable adjustments needed to support them during the course of their employment, and ensure appropriate support is put in place to accommodate these requirements where feasible.

• Take action to ensure all employees develop the appropriate awareness needed to make these commitments work. We promote this through our organisational policies and through the work of the Equality, Diversity and Inclusion Steering Group.

We have a dedicated Equality, Diversity and Inclusion role within our Senior Leadership Group. The post holder leads all of our organisation-wide EDI work in close collaboration with a range of staff diversity networks.

Good communication is integral to all that we do at Family Action. There are a number of ways in which staff and managers are kept informed:

• Our staff intranet is regularly updated to ensure that all employees are kept informed about important news, strategic developments, training opportunities, compliments received or key organisational initiatives such as our regular staff engagement surveys and recognition awards. We also produce a regular and very popular health and safety/legal/safeguarding/data protection bulletin for the whole organisation, called “Safe & Sound”. During the Covid-19 crisis we have produced a daily e-bulletin for all staff to keep the organisation together and functioning as one big family.

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

• Information on progress against our strategic objectives, growth, and financial progress is communicated and cascaded up and down the organisation through a range of fora including; senior leadership meetings, regional and team meetings, and individual supervisions, so everyone in the organisation is kept informed. Our Covid response has been led by a virtual Coronavirus Response Group with membership from across the organisation.

• Our Chief Executive regularly communicates from his own e-mail on important organisational matters. He personally inducts all new staff into the organisation and keeps a highly visible profile within the organisation through regular communication, through celebrating successes and keeping everyone informed on key news, opportunities and challenges. He has communicated directly and frequently with the whole staff group throughout the Covid-19 crisis to help people feel reassured at all times.

• Our Chief Executive provides regular updates on progress towards our strategic objectives whenever there is an opportunity, be that at monthly corporate induction of new staff, meetings or during his visits (currently virtual) to services.

• We hold regular Joint Negotiating Committee meetings with our recognised unions (Unite and Unison) and staff representatives to discuss issues that impact upon staff including policies and procedures, organisational changes, and health and safety issues.

During the Covid-19 crisis we have communicated with our workforce by issuing and keeping updated helpful and easily accessible guidance on all the key topics; setting up a daily e-bulletin to all staff to help everyone to get through the crisis together, creating an in-house corona advice service so that all queries and questions from staff go through the same email gateway and can be answered quickly and consistently and by hosting regular internal webinars. We have also introduced an extensive wellbeing and staying connected programme with a focus on supporting the physical, emotional and financial wellbeing of our staff whilst also keeping the whole organisation together at all times. We have taken an organisation-wide approach to all health and safety issues in the context of the pandemic from ensuring that our workplaces are Covid-secure, to the introduction of rapid testing in our workplaces, to encouraging our workforce to be vaccinated in accordance with job roles and eligibility criteria, to the reopening of our workplaces as restrictions ease. The Chief Executive has written personally and frequently to the staff group throughout the pandemic to ensure that everyone knows what is going on at all times and we have surveyed the staff group several times so that we understand how people are feeling and can respond sensitively and appropriately. These efforts have been hugely appreciated by the staff group.

Our Volunteers

Family Action is fortunate to have more than 460 volunteers across our range of services. Our volunteers support our work in so many different ways e.g.:

• as befrienders in our Perinatal Services;

• in parent support roles in our Children’s Centres;

• as advisers, counsellors and befrienders in our FamilyLine Service;

• as mentors to disadvantaged children and young people and care leavers accessing our Friendship Works and Listening Works services;

• through the provision of practical support in our Emotional Health and Wellbeing services for adults; and

• as fundraisers for us.

Family Action is hugely grateful for the amazing contribution of all of our volunteers.

Our Values

Our Values and Behaviours underpin all that we do. Family Action staff demonstrate our values and behaviours in their work and in their professional relationships with colleagues, volunteers, partners and service users.

We are People Focused ;

We have a Can Do attitude;

We strive for Excellence in everything we do; and

We have Mutual Respect for colleagues, volunteers, partners and service users.

Our Impact

Family Action is committed to measuring the impact of our work. We seek to triangulate the impact of our services through service user feedback, compliance with contractually agreed outcomes and independent evaluation of the effectiveness of our service models.

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

We publish regular Impact Reports and develop Theories of Change for our different service models as a matter of course. We have an internal Evaluation and Impact team that commissions independent evaluations of our services. We also have an externally chaired Evaluation and Impact Board that oversees our research, evaluation and impact work.

Many of Family Action’s services receive wonderful feedback. Here are just a few examples of the feedback received from our service users and partners for some of our service provision:

Stockton upon Tees 0-19 Family Support and Volunteer Outreach Service

Thank you so much Emma, Really do appreciate everything you have done for us, we wouldn’t be where we are now if it wasn’t for you.

‘Thank you so much for all of your help. The money will make a massive difference to our family’ (after receiving grant from Family Action to help with rent arrears and basic essential needs due to dad being furloughed)

‘Oh my god that's amazing thank you so much it's already spent. Rent, water bill, gas and electric and shopping. It's gonna help so much. Especially this time of year too and losing my job it's definitely going to help loads. Thank you so much" "They have been so supportive. Sarah has been a lifeline. I can't recommend the service enough"

Birmingham Think Family Service

Gemma, one of our workers from this intensive family support service received the following feedback: I just wanted to say thank you for all your support during the last 6 months. Before the first sessions started, I was slightly nervous about meeting you but after sitting down with you every week I realised that you were a very kind and positive person and most of all supportive at all times this was important for me and the children… To say thank you to you Gemma only takes a moment but your thoughtfulness will last a lifetime. Sometimes the best things in life are not things at all they are people.

Lovely comments from grateful parents for our Peterborough Pre-Schools Service

It's been such a crazy year but no matter what you stuck by what's best for the children. I can’t thank you all enough for giving T the confidence he has now, he's so different from the shy, timid boy he was last September! He loves every one of the staff and will miss you all so much!!

Thank you all so much, H has had a fab time at pre school and has come on in leaps and bounds since he first started, thank you for everything supporting us and H, we will see you all again soon when little B is ready to join xx

Some positive feedback for Lisa and Caroline from our Medway SENDIAS Service

Lisa has been very helpful and informative. Helps calm my anxieties down. Thank you. The service I was given was brilliant from start to finish.

I was very happy with the support with the help I received. They were very understanding and listened. Caroline made me feel completely comfortable and gave me lots of info. Wonderful service. Very understanding and professional

Some wonderful feedback received for Hackney WellFamily Plus team from their service users:

“I feel incredibly blessed to have been able to have these counselling sessions with Rhonda. At the beginning of these sessions, it was my goal to gather the strength, self worth and confidence to leave an unhealthy relationship. Rhonda has been able to support me during this difficult period in my life and has helped me discover these qualities within myself, such that I was able to leave this relationship of two years after only my second session with Rhonda.

“Now that we’ve come to the end of our sessions, I want to thank you properly for all your staunch and sensitive work with me. Your constructive insights, empathy and support have enabled me to survive a severe life crisis. You have stood by me in extreme personal circumstances which I wouldn’t have got through without you. I’m so grateful for everything you’ve done for me and I’ve learned a lot! I feel I’m in recovery now, in a place where I hope I can manage on my own.

BAND's service users share their thoughts on the invaluable support they have received during lockdown:

"My calls have been very important to me. I have looked forward to chatting as this has lifted my low mood and made me feel more positive"

"Having my weekly call each week being able to talk and get things off my chest has really helped me."

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

"Thank you for my support and help I have had during lockdown, it has helped with my confidence and kept me positive." "I have been grateful for my phone support and the zoom meetings and foodshare. I have met new people over the zoom activities which has helped me. I am looking forward to meeting everyone when lockdown is over."

Our Southend Children’s Centre Family Support Team received this heart warming feedback:

'It is amazing how much support Family Action offer the families and how dedicated they are to helping them overcome some of the challenges they have.'

Praise for Kate from our Ealing I-SAID service that testifies to the positive impact the service has for children and young people with special educational needs and disabilities:

"Kate has been helping me since October 2018 and has been so supportive, patient and informative each time. I have learnt a great deal through her and it is making my journey a bit less stressful. She is an asset to the organisation."

Praise for our Listening Works Service

It's so refreshing to not be made to feel like you're taking up too much of someone's time. That's just what care experienced people need - to not feel like a burden.’

‘… on the chat the person helped me look at it from a different angle so instead of getting more wound up at the whole thing I realised I needed to just leave it and I think that was v good advice so I can move on and not make things worse on myself!’

Praise for our Covid Survival and Recovery Grants Scheme funded by Barclays

“I let one of my clients know that she was successful in receiving her grant and she immediately burst into tears. The first thing she said was that she would put up her decorations, the reason why she was not planning to until much later was because she was worried about the additional cost of electric for the Christmas tree lights, she was so very grateful and has cried every call I have made to her”

“I can't remember the last time I felt this warm. Getting under a quilt that is not damp and smelly is wonderful”

"I don't know what I would have done over the past few months without your support, it has been a godsend. Thank you to the people who have given me this help. It is amazing”

“I didn't realise how low I had got, until I was helped up. I feel so much better, like the wheels are actually turning and we are moving forward now. I don't know if I could have achieved this without your support”

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Strategic Report

Achievements and Performance

The Trustee Board worked with the senior management of the organisation to develop a new five year strategy, Building on 150 Years, for the period 2019-2024. The strategy was launched in April 2019. Examples of our progress against the five agreed strategic objectives over the second year of the strategy to March 2021 are given below:

1. Agile and Responsive - always able to look ahead, to innovate and to seize opportunities

During the year Family Action continued to look ahead by anticipating the continuing impact of the pandemic on our service users and developing new services in response, by growing our income from corporate supporters and individual donors and by evidencing to policy makers and politicians why a national societal recovery strategy is needed to ensure that everyone has the best chance of getting through the pandemic; to innovate by launching a range of Covid rapid response services tackling food insecurity, isolation and family pressures; and to seize opportunities e.g. by acquiring Post Sexual Abuse and Rape Counselling Service (PARCS) a specialist charity working with adults and children affected by rape, sexual abuse and domestic violence. We were also pleased during the year to be able to pay off the outstanding mortgage on our head office premises which reduces in turn our ongoing head office costs.

1. Managed Growth - continue to grow in a managed, sustainable way so that we can help more children, adults and families to have better lives

Despite the pandemic, Family Action continued to grow over the last 12 months. The charity achieved its highest ever turnover in this financial year (£41.1m) and now works with over 60,000 families a year through some 200 services. We also ensured that some 350,000 children who would otherwise be too hungry to learn, received a nutritious breakfast every school day when the National School Breakfast Programme reached its peak of provision in October 2020 and increased our FOOD Clubs tenfold from eight to over 80 during the year. Our fundraising team raised more than £4m during the year for Covid-related emergency support (principally financial grants to particularly vulnerable individuals and families) and we also were contracted to provide, or secured funding ourselves to provide, a range of Covid emergency support services including emotional support, additional family support and additional therapeutic support.

1. Improved Quality - to ensure that our services are of the highest possible quality so that we can maximise the difference made to our service users

We made good progress during the year on our quality improvement agenda. We increased the size of our central Quality and Performance team and developed a Quality Assurance Framework that is now being rolled out across our range of service provision. This team is also focusing on ensuring that all of our services are capturing bespoke service performance data that will enable us to monitor closely the effectiveness of service provision both at a service level and centrally for ongoing audit purposes. Our work on quality improvement has the overarching goal of ensuring that Family Action is a learning organisation and is led by a Quality and Performance Business Group chaired by the Director of Services and Innovation and involving colleagues from across the organisation. During the year we made good progress on practice development, on rolling out our Core Curriculum, on practice development seminars for staff (led by our internal Q&P team and by services) and we also focused on supporting and skilling up our managers to increase their accountability in terms of the leadership and management of all our services.

1. Better Known with a Bolder, Stronger Voice for Families - to build our national profile and positioning and to ensure we have increased influence and impact

Over the last 12 months Family Action has worked very hard to continue to shine a bright spotlight on contemporary family pressures. We have been careful to highlight the differential impact of the pandemic on different families. We have also pressed for Government policy and investment that is nuanced and thought-through enough to recognise and address those differences through a coherent and adequately resourced societal recovery strategy that will tackle the inequalities caused or made worse by the pandemic. All year we provided rich online content to support individuals and families to manage the challenges of successive lockdowns, to reduce stress and to try and normalise the tensions we were all feeling as we struggled to balance our personal and working lives. A key achievement during the year was research jointly published with our valued corporate partner LV General Insurance which examined the impact of the pandemic on different aspects of family resilience. This report had extensive media pick up and we hope to repeat it next year. During the year Family Action’s highly active response to the pandemic also brought us a number of new corporate partners who were keen to support our work both financially and in kind e.g., through generous donations of food, toiletries and resources that we could in turn distribute to our most vulnerable service users to help them to get through.

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

1. Valuing Our People - investing in our staff and volunteers and their development so that Family Action becomes an even better place to work

By the end of the reporting year, Family Action’s workforce numbered on average 890 staff and over 460 volunteers. As part of our aspiration to be the best employer that we can be we invested in the appointment of an Equality, Diversity and Inclusion Manager to enhance our work and practice in this area. During the year we have also set up new staff diversity networks, surveyed our staff on EDI issues and established a network of EDI Champions across the organisation and announced our commitment to the Race at Work Charter.

This year, Family Action was delighted to once again be listed in the Top 100 Not for Profits to work for moving up to No. 7 in the list from No.53 the previous year and making the Top 100 Large Companies List (at No.55) for the first time. We further invested in our learning and development and practice sharing offers to staff in 2020/21 and continued our leadership training programme. We continued to implement our new core curriculum for our frontline staff which ensures they all have a consistent level of training appropriate to their individual roles. We also completed a programme of work on succession planning for people in business critical roles across the organisation. As noted in the Covid-19 section below, staff wellbeing has been a major concern and focus all year as the pandemic has had an impact on our staff and volunteers personally as well as on our service users. We have implemented a comprehensive staff wellbeing programme that has focused on emotional, physical and financial wellbeing, on training our staff to practice well and safely in the context of the pandemic and to keep them connected despite the challenges of reduced “in person” contact and remote working. We have also been careful to give them the space and support to process and reflect on a very challenging year.

Our Response to Covid-19

The Covid-19 pandemic has dominated the entire reporting year. From the very beginning, Family Action was resolute in our determination to keep our services open so that we were still there for the service users that rely on us. Many of our workplaces remained open due to the frontline nature of much of our work and many of Family Action’s staff were classified as critical workers. Where workplaces needed to close and our staff had to work from home, we quickly found ways to provide our services virtually, creatively and with the minimum of fuss to ensure the least possible disruption to our service users. In addition, all of our back office functions were provided to the same high level throughout the pandemic. Our previous investment in modernising our IT systems and infrastructure, as described in this report last year, gave us the platform we needed to be able to take our services virtual, wherever needed, quickly and efficiently. As a result of staying open throughout, Family Action was able to bring in additional work and fundraised income in order to enhance the effectiveness of our response to the pandemic.

During the year we have rapidly scaled up our FOOD Club programme from eight to more than 80 Clubs thereby ensuring that we were quickly feeding many thousands of families rather than the hundreds we had supported before. We also expanded the capacity of our free FamilyLine service which saw a more than 200% increase in contacts over the year from parents and carers under increasing stress. We were delighted to be selected by The Times newspaper as one of two charities that it had chosen to be beneficiaries of its public appeal to support the response to the Covid-19 crisis. Funding from the Times and from Barclays enabled us to innovate at pace and to make more than 3,000 individual grants to families and individuals who were worst affected by the pandemic. We know that these grants saved many people in crisis situations.

Family Action has worked very hard to support all of our workforce through the pandemic and the organisational imperative has been for us all to get through this extraordinary situation together. The organisation has prioritised effective and consistent leadership and communication at all times. An internal Coronavirus Response Group (CRG) chaired by the CEO has met several times a week throughout the pandemic to coordinate our organisational response, guidance to staff and consideration of all emerging issues. Together we have managed the impact of successive lockdowns and the gradual reopening of our workplaces in Summer 2020 and again in late Spring 2021. We have invested in staff wellbeing throughout the pandemic and this has been hugely appreciated by the staff group. It is pleasing to note that in the midst of this pandemic Family Action’s employee engagement was judged to be world-class by the Sunday Times 100 Best Companies.

At the time of writing this report it is still hard to judge what the long term impact of the pandemic will be on Family Action, our staff, volunteers and service users. What we can say is that Family Action rose to the many challenges of this pandemic and we made things better for many people who were struggling. We are proud of that.

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Financial Review

Family Action’s total income for the year was £41.1m (2020: £37.3m). 96% of our income was restricted to funding specific services. Income for Operational Services came from Local Authorities, central government and NHS Trusts for the provision of specific services. These funders are listed in the accounts (Note 5a, b & c).

The pandemic has had a positive impact on our turnover and has highlighted the importance of our work in supporting families. Our fundraising team was able to successfully run various appeals which led to increased funding as well as a wider reach and support for our families during the pandemic. We have continued to grow our core work with yet more new contracts won during the year. We had a maximum of over 2,400 schools by October 2020 in the DfE funded National School Breakfast Programme providing breakfast for 350,000 children per day. The programme has been extended until July 2021.

Overall, we employed a monthly average of 890 (2020: 847) staff in the year. Total expenditure amounted to £38.1m (2020: £35.8m), with £37.4m (2020: £34.5m) relating to restricted charitable activities.

Total Funds at year-end were £12.9m (2020: £17.1m). There was an increase in the Pension deficit valuation at year-end from £5.5m to £14.0m (see pension fund statement for further details). We have also seen an increase in the capital value of the Endowment funds from £8.9m in 2020 to £10.5m in 2021. The net reduction in total funds was £4.2m.

Fundraising approach and performance

The charity undertakes fundraising activity to its supporters via a range of methods, including but not exclusively direct mail, fundraising events, challenge events, corporate fundraising, crowd funding, Trusts and Grants fundraising and email fundraising in line with the Fundraising Code of Practice set by Fundraising Regulator. Our fundraising promise, (which is available on our website to reassure supporters of our approach), is:

When you support us, you can be sure of the following:

• We will never sell your contact details to anyone

• If you are an individual supporter, we will only contact you if you have expressed an interest in our work

• If we phone you, we will always check you are happy to take the call

• If you ask us to change how we communicate with you, or stop, we will respect that

• We do not engage in cold-calling, door-to-door or street fundraising. We try hard to ensure no one ever feels pressurised to support our work

• We are registered with the Fundraising Regulator and adhere to the Fundraising Code of Practice

• All our activities are open, fair, honest and legal

In 2020/21, the charity did not work with any third party fundraising organisations.

All our fundraising staff have regular supervision and appraisals, as well as a development plan, to ensure we are working to best practice standards and regularly reinforcing our fundraising ethics. We have an Ethical Fundraising Policy which is reviewed at least annually.

The charity is registered with the Fundraising Regulator and adheres to the standards of the Fundraising Code of Practice. No complaints about fundraising activity were received in the current or previous year.

Reserves Policy

The Trustees have considered their policy on building up reserves and established that the appropriate level of free reserves is one that allows the Charity to continue its normal activities in the event of a significant drop in funding or loss of projects with contribution toward the closure costs if the project cannot absorb its own closure costs. In considering the nature and diversity of our income, the Trustees believe the appropriate level of free reserves should be 6 months running costs of the central operation which runs the Charity. i.e., Head Office; the running costs of which is £4.59m for 2021/22 and a contribution towards potential project closure costs including the total lease obligations payable of £1m.

Our freely available general funds as at 31 March 2021 were £4.21m (2020: £2.38m). This covers the required level of reserve of 6 months running costs of the Head Office, it also covers any potential project closure costs and continuing lease obligations.

General Funds form part of our Unrestricted Reserves which, totalled £5.89m at 31 March 2021 compared with last year £3.93m. Funds designated for specific purposes stood at £1.68m (2020: £1.55m).

Notes 16-18 of the accounts show the various funds or reserves by type and summarise the year’s movements on each fund. Note 20 shows the assets and liabilities attributable to the various funds.

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FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Going Concern

The Trustees have reviewed the projected operations and activities of the company, including consideration of the existing contracts and a two year projected cash flow forecast. Based on the available financial information, we are of the opinion that adequate resources will continue to be available to fund the activities and operations of the company, therefore Family Action is a going concern.

Pension Fund

In common with other Charities with final salary schemes, our pension scheme shows a deficit which stood at £14.0m at 31 March 2021 (£5.5m last year) and under UK accounting standards, we are required to account for this deficit on the balance sheet (Note 9).

The deficit on the defined benefit pension scheme increased by £8,513k in the year to 31 March 2021 compared with a decrease of £1,855k last year.

The main financial assumptions as at 31 March 2021 have changed since 31 March 2020: Discount rate reduced from 2.20% to 2.00%. Inflation expectations increased to 3.25% from 2.50%. In combination, these resulted in a loss of £5,538k.

There has been a change in demographic assumptions at 31 March 2021 with the Charity using the updated CMI 2020 model for future mortality improvements. This has led to a loss of £717k.

There has been an experience loss of £3,206k. In addition, there was gain on assets in excess of interest income of £570k.

The funding status of the Scheme over the period is as shown in the table below.

	31 March 2021 £’000	31 March 2020 £’000	Change £’000
Present value of liabilities	42,541	33,167	9,374
Market value of assets	28,570	27,709	861
Funding deficit	(13,971)	(5,458)	(8,513)

The triennial valuation due in January 2020, was completed and a new repayment plan agreed with the Pension regulator. The Charity continues to make significant annual payments towards the deficit under the agreed repayment plan made with the Pension Regulator in March 2021.

The Trustees are aware that the deficit on the scheme on FRS102 basis will fluctuate with changing market conditions and that their responsibility is to meet the required contributions. There are active options being considered with the Pension Scheme Trustees as we continue to manage the deficit. The Trustees do not consider this deficit to represent an immediate demand on the Charity’s funds and do not, therefore, consider that there are any resultant limitations on resources available for general application or on the application of any restricted income funds.

Investment Policy and Performance

The Trustees primary aim is to achieve sufficient income and capital growth from the investments so as to permit without interruption the continued provision of the Charities core services.

In 2019, there was a review of the Investment Strategy with a change to the objectives.

More specifically the objectives have been prioritised in the form of ‘Primary’ and ‘Secondary’:

Primary

• The target is that the value of the portfolio will be maintained at a minimum of £10m

Secondary

• To generate £225,000 to £275,000 per annum of ‘clean’ income available to distribute as Grants

• Diversification

• Capital growth to keep pace with inflation (CPI)

12

FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Investment Portfolio is managed by Brewin Dolphin generating investment income during the year of £234k, a reduction of £103k compared with last year. This was due to falling yields from mainstream asset classes caused by prolonged low interest rates, challenging market conditions due to the pandemic and a strategic decision to reduce portfolio risk to focus on capital preservation at the end of 2019 (ahead of the start of the pandemic). The forecast income for 2021/22 is expected to be £255k.

The capital value of funds increased to £11.1m at the end of the financial year compared with £9.5m in 2020, an increase of £1.6m. With income at 2.47% of capital value and capital value increase of 16.94%, the overall return (growth over inflation) in the year was an increase of 16.48%, compared with a decrease of 12.1% in 2020.

The performance of this strategy continues to be reviewed by Trustees, the Investment Committee and Brewin Dolphin on a quarterly basis, with a more in-depth review annually. The Investment Committee continues to have oversight in respect of the management of the endowment portfolio and relationship with the investment managers, to provide assurance to the Board of Trustees in respect of the strategies and management of the endowment portfolio in accordance with the agreed Investment Strategy.

Plans for the Future

In 2021/22 Family Action will continue to take forward the 5 strategic objectives in our 5 year strategy, Building on 150 Years. These 5 priorities are:

1. Agile and Responsive - always able to look ahead, to innovate and to seize opportunities

2. Managed Growth - continue to grow in a managed, sustainable way so that we can help more children, adults and families to have better lives

3. Improved Quality - to ensure that our services are of the highest possible quality so that we can maximise the difference made to our service users

4. Better Known with a Bolder, Stronger Voice for Families - to build our national profile and positioning and to ensure we have increased influence and impact

5. Valuing Our People - investing in our staff and volunteers and their development so that Family Action becomes an even better place to work

Particular challenges in the year ahead include dealing with the continuing impact of the pandemic including reopening all of our 230 workplaces by June 2021. We are expecting the 21/22 financial year to be challenging as many public authorities are struggling to manage their budgets and finances in the context of the pandemic. It is inevitable that this will impact on Family Action’s funding and we are already starting to see this. Our successful year in 2020/21 in financial terms will help us to bridge these challenges but the imperative is for us to continue to win new work in this difficult climate whilst also retaining as many of our existing services as possible. This will require us to continue to highlight to those who buy our services the false economy of cutting high quality early intervention and preventative services such as those we provide across the country. We know from long and bitter experience that cuts to early intervention and preventative services will only result in higher costs down the line if emerging problems are not tackled quickly and are instead just left to escalate.

Another challenge in 21/22 will be to determine and manage the “new normal” in terms of our service provision and to consider the best ways for us to operate as an organisation more generally post-pandemic. Inevitably, this will mean a blend of in person and virtual service provision and office/remote working for our staff combining the best of what existed before the pandemic and what we learnt worked well during it. In campaigning terms, we will be doing everything we can to persuade the Government to have as strong a focus on societal recovery as it does on economic recovery – the aim must be to ensure that everyone emerges from the pandemic in one piece and that we reduce the inequalities that have only widened over the last year. A continuing focus for the charity in the coming year will be the rolling out and embedding of our in house quality assurance programme. New major projects will include the insourcing of our IT provision and further work on enhancing individual and corporate giving.

Post Balance Sheet Events

There are post balance sheet event details of which are disclosed in Note 19 to these accounts.

13

FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Structure, Governance and Management

Governing Document and group structure

Family Action has its origins in the Charity Organisation Society, which was established in 1869. Today, Family Action is a Company Limited by Guarantee governed by its Articles of Association last amended on 25 April 2019. It is registered as a Charity with the Charity Commission and as a Company with Companies House. Family Action subsidiaries include Friendship Works, BAND and PAC-UK which are registered and charitable companies that are now dormant following their mergers and transfers of trade and assets to Family Action in the previous year.

Appointment of Trustees

Our Articles of Association provide that Family Action may have up to 15 Trustees and the present members of the Board are listed in this report. The recruitment of Trustees is steered through the Governance Committee, chaired by the Chair of Trustees. We assess the strengths of the Board and the skills that we need for effective governance on an ongoing basis.

Trustee Induction and Training

All new Trustees receive a bespoke induction plan according to individual need. As a minimum, this includes meetings with the Chair, CEO, Director of Finance and other key staff, the opportunity to observe a Board meeting before joining the Board, a visit to a Family Action service and the opportunity to attend the monthly corporate induction session for new staff where the CEO presents in detail on the charity’s history, strategy, services, finances and current operating environment. We also have a standard Trustee Induction Pack which we keep updated that contains key information about Trustees’ legal duties and responsibilities under Charity and Company Law, the Charity Commission guidance on public benefit, the Charity’s Articles of Association and detailed organisational information. New Trustees are paired with a Trustee mentor. We provide training as necessary to ensure that all Trustees are kept up to date with changing requirements. Trustees have also been kept aware of the changing landscape around the regulation of Charity fundraising and GDPR.

Organisation

The Board of Trustees administers the Charity. The Chief Executive is appointed by the Trustees to manage the day to day operations of the Charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Trustees under its Executive Limitations, for operational matters including finance, contracts, service provision and employment. The Board meets five times a year and there are five Board sub committees: Audit Committee, Quality & Performance Committee, Governance Committee, Investment Committee and Remuneration Committee, which can meet up to four times a year under their respective terms of reference.

Related Parties and Co-operation with other Organisations

Any interest between a Trustee or senior manager and the Charity must be disclosed to the full board of Trustees in the same way as any other contractual relationship with a related party.

David Holmes, the CEO of Family Action, is the chair of Children England a membership organisation to which Family Action is a member with £3,750 annual subscription.

Brewin Dolphin are the advisers and investment managers for the Family Action investment portfolio, Siobhan Boylan, a trustee (Treasurer) on the Board of Family Action joined Brewin Dolphin as the Finance Director in March 2019. Siobhan has rescinded her membership of the Investment Committee in line with our Governance Policy and Procedure.

Dez Holmes, a trustee of Family Action, is also a member of the key management personnel of The Dartington Hall Trust which run Research in Practice (RiP), a membership organisation providing online resources supporting evidence-informed practice with children and families, young people and adults. During the year Family Action had an active membership subscription to RiP at a cost of £10,370 per annum as this is a valuable professional resource for all Family Action staff. This transaction was carried out at an arm’s length basis.

There are no other related party transactions to report.

14

FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Trustee Indemnity Insurance

Family Action provides insurance to its Trustees against liability in respect of actions brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity insurance remains in force as at the date of approving the Trustees’ Report.

Key Management Personnel Remuneration

The Directors consider the Board of Directors, who are the Trustees, and the Executive Group as comprising the key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day to day basis. All Trustees give their time freely and no Trustee received remuneration in the year.

The pay of the Executive Group is reviewed annually. In view of the nature of the Charity, the Directors benchmark against pay levels in other Charities of similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles. The remuneration benchmark is the mid-point of the range paid for similar roles adjusted for a weighting of up to 30% for any additional responsibilities.

Risk Management

The Trustees have a risk management strategy which comprises:

• a review of the principal risks and uncertainties faced by Family Action and the group as a standing agenda item at every Board meeting and Audit Committee meeting;

• regular review of the principal risks and uncertainties faced by Family Action and the group by the Executive Group, in line with its updated Building on 150 Years Strategy;

• well-established policies, systems and procedures to mitigate any risks identified; and

• clear processes designed to minimise or manage any potential impact on Family Action and the group should those risks materialise.

The main risks are identified within Family Action’s Risk Register. At each Board and Audit Committee meeting we highlight the current highest risks that the Executive Group is concerned about (with commentary and controls). We have not added the Covid-19 pandemic as a risk in its own right as we feel the impact of the crisis is felt through other existing risks. Our Coronavirus Response Group - made up of the Executive Group and key senior leaders across Family Action - continues to meet weekly to manage current organisational and operational risks in light of the pandemic. The following top risks were identified over the last year:

• Failure to retain contracted services or win replacement work.

• Unstable external environment impacts on staff morale and engagement.

• The organisation becomes too reliant on the management charge earned against one significant contract, in funding central infrastructure.

• Risk to external service delivery reputation and goodwill from poor quality services (as a result of a lack of management or monitoring oversight).

• Death of, or serious harm to, a service user, due to poor safeguarding practice.

• Failure to manage effectively the wide range of concurrent organisational priorities.

Key factors in the management of these risks are also reflected in our Building on 150 Years strategy that was launched in 2019, and is updated annually to ensure it remains current. The strategy has five underpinning objectives to help us prioritise and manage ongoing organisational risks and opportunities, especially in light of the external environment (including the impact of Brexit and the Covid-19 pandemic). The five strategic objectives are as follows:

1. Agile and Responsive – always able to look ahead, to innovate and to seize opportunities

2. Managed Growth - continue to grow in a managed, sustainable way so that we can support more children, adults and families to have better lives

3. Improved Quality - to ensure that our services are of the highest possible quality so that we can maximise the difference made to the people we work with

4. Better Known with a Bolder, Stronger Voice for Families – to speak out for families through building our national profile and positioning and having increased influence and impact

5. Valuing Our People - investing in our staff and volunteers and their development so that Family Action becomes an even better place to work

Further to the above, there remains ongoing mitigation of other key risks such as those relating to Health & Safety, HR, IT, data protection, succession planning and the Family Action Pension Scheme.

15

FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Slavery and Human Trafficking Statement

The Modern Slavery Act 2015 introduced new obligations in relation to slavery and human trafficking. Family Action is fully supportive of the legislation as it is in keeping with our values. Family Action is committed to the principles of the Modern Slavery Act 2015 and the abolition of modern slavery and human trafficking. As an equal opportunities’ employer, Family Action is committed to creating and ensuring a non-discriminatory and respectful working environment for its staff and volunteers. Family Action wants all its staff and volunteers to feel confident that they can expose wrongdoing without any risk to themselves.

The nature of our organisation and supply chains means Family Action has a low risk of being exposed to suppliers who utilise human trafficking or slavery. However, we are committed to improving our practices and processes to combat slavery and human trafficking, where we can.

Due Diligence Processes for Slavery and Human Trafficking

As part of our initiative to identify and mitigate risk, we are reviewing our Procurement Policy and processes, which will ensure we have in place systems to:

• identify and assess potential risk areas in our supply chains;

• mitigate the risk of slavery and human trafficking occurring in our supply chains; and

• monitor potential risk areas in our supply chains.

Supplier Adherence to our Values

We have a zero tolerance to slavery and human trafficking. To ensure all those in our supply chain and contractors comply with our values, we will also develop a supply chain compliance programme. Family Action maintains the following policies which are accessible via the Family Action intranet:

• Employee Code of Conduct

• Anti-Bribery Policy

• Anti-Fraud Policy

• Ethical Fundraising Policy

• Health & Wellbeing Policy

• Whistleblowing Policy

• Anti-Bullying and Harassment Policy

• Equality, Diversity & Inclusion Policy

• Safer Recruitment Policy

Family Action does not enter into business with any organisation, in the United Kingdom or abroad, which knowingly supports or is found to be involved in slavery, servitude and forced or compulsory labour.

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes the slavery and human trafficking statement for the financial year ended 31 March 2021.

Statement of Trustees’ Responsibilities

The Trustees (who are also the Directors of Family Action for the purpose of Company Law) are responsible for preparing the Trustees’ Report (including the Strategic 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 apply them consistently.

• Observe the methods and principles of the Charities SORP.

• Make judgements and estimates that are reasonable and prudent.

• Prepare the financial statements on the going concern basis, unless it is inappropriate to assume that the Charity will continue on that basis.

• State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

16

FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Charitable Company to 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, hence taking reasonable steps for the prevention, detection of fraud and other irregularities.

In so far as each of the Trustees is aware, there is no relevant audit information which the charitable company’s auditor is unaware of and 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 the auditor is aware of that information.

Public Benefit Statement

The Charities Act 2011 requires all charities to have a purpose that is for the public benefit. The public benefit requirement has two aspects: the “benefit” aspect and the “public” aspect.

All Family Action services provide an identifiable benefit that is capable of being proved by evidence and are made available to the public or sufficient sections of the public. This is entirely in accordance with the two aspects of the public benefit requirement.

The Trustees can confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, “Charities and Public Benefit”.

Family Action’s charitable purpose is enshrined in its vision of a society where all families are free from poverty, disadvantage and social exclusion. The Trustees ensure that this purpose is carried out for the public benefit by delivering services in accordance with our strategic aims. Many of our services are open to all and our awareness raising and campaigning work benefits everyone.

Carbon Performance 2020/21

Emissions are reported annually in June each year covering the previous financial year running April-March. These are calculated in accordance with the Carbon Trust Corporate Reporting and Accounting Standard using GOV.UK carbon conversion factors. The data includes all activities where we have operational control and specifically eliminates any energy that is procured by a third party. This will include any procured by a landlord and recharged to Family Action as part of a service charge (or similar). We have also adopted the 2015 WRI/ WBCSD Scope 2 Guidance on procured renewable energy. For our Efficiency Index we use ‘per FTE’.

• Gas combustion (Scope 1 requirements) – includes gas consumed for stationary or mobile activities for which Family Action is responsible.

• Electricity consumption (Scope 2 requirements) – includes the purchase of electricity by Family Action for its own use, including for the purposes of transport.

• Transport (Scope 3 requirements) – includes energy consumption from transport where Family Action is responsible for purchasing the fuel e.g., fuel used in leased vehicles for business use, fuel used in personal cars for business use, including where Family Action reimburses staff for business mileage claims. This excludes where a transportation service is procured that includes an indirect payment for the fuel consumption e.g., train/plane/taxi or similar where Family Action does not operate the transport. However, Family Action are preparing a base line so we can elect to report them separately in future years (including as part of Scope 3 emissions).

as part of Scope 3 emissions).
	2019/2020	2020/2021
	Metric tonne C02e	Metric tonne C02e
Gas combustion(Scope 1 requirements)	156.19	116.19
Electricityconsumption(Scope 2 requirements)	87.96	72.4
Transport(Scope 3 requirements)	108.87	25.38
Total	353.02	213.97
Carbon footprintper FTE	0.357	0.224

Family Action have set out targets out in our business assurance system processes to ensure that our carbon footprint decreases by 5% per annum per FTE.

17

FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Section 172 Companies Act 2006

Acting in accordance with Section 172 of The Companies Act 2006 (“Duty to promote the success of a company”) Family Action’s Trustees consider that they have complied with their duties with regard to Section 172 of The Companies Act 2006 by promoting the Charity’s success in achieving its charitable purpose to build stronger families.

Specifically, Trustees, working closely with the Executive Group, have supported the Charity to continue to implement its 5 year (2019-2024) corporate strategy - Building on 150 Years - and to navigate the consequences of the Coronavirus pandemic (for more detail see the Trustees Report above).

Long-term consequences of decisions

Key decisions taken during the year included:

• 1) Paying off the mortgage on Family Action’s London Head Office

• This decision relieved the Charity of a significant mortgage liability. It was made possible through prudent financial management and a strategic merger with PAC-UK that enabled Family Action to merge its Head Office with that of PAC-UK following the merger and then sell PAC-UK’s building.

• 2) Agreeing future levels of historic pension deficit payments with The Corporate Trustee of The Family Action Pension Scheme (FAPS)

• This historic pension deficit is Family Action’s single largest liability and these careful negotiations needed to balance planned repayment of the deficit with maintaining the Charity’s ability to operate on a year to year basis.

• 3) Agreeing a strategic merger with the charity PARCS (Portsmouth Abuse and Rape Counselling Service) This merger brings Family Action new specialist experience in services to address sexual violence whilst also giving the Charity service presence in a new geographical area that is of strategic importance to us.

• 4) Deciding to keep all services open in the context of the Coronavirus pandemic. This was a crucial decision as it meant that Family Action remained open for business at all times and was able to bring in additional fundraised income and develop new services to benefit our beneficiaries.

As described above the Charity’s response to the pandemic has been managed proactively at all times so that both the short and long term impact on the Charity’s activities is both anticipated and mitigated wherever possible.

The development of our internal Coronavirus Response Group and a reworking of our standard Board agendas to balance our Covid response with usual Board business has enabled the Trustee Board to blend active crisis management with a continuing and robust focus on the Charity’s strategic aims.

Interests of Employees

Trustees as well as the Executive Group have been actively involved in decisions affecting employees such as the approval of the 2020/21 Pay Award and through the work of the Governance and Remuneration Sub Committees of the Board. In 20/21 those Subcommittees have focused on succession planning and talent identification and management.

The Board of Trustees annually reviews Family Action’s Gender Pay Gap data and Report. Family Action appointed an Equality, Diversity and inclusion (EDI) Manager during the year and the Trustees are taking a close interest in the organisation’s EDI action plan which is being led by our EDI Manager and our EDI Steering Group. As also mentioned above Family Action has taken a very active role in developing an enhanced wellbeing support offer to all staff in the context of the pandemic.

Business Relationships with suppliers, customers and others; and reputation for high standards of business conduct

During the year Trustees and the Executive Group have overseen relationships with all our key commissioners and suppliers to ensure we maintain positive and effective relationships. The quality of these relationships was severely tested by the pandemic but the Charity’s longstanding efforts to maintain good relationships with commissioners and suppliers meant that when put under pressure these relationships remained strong.

18

FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Fundraising

Family Action has a wide range of fundraising activities to generate voluntary donations towards our vital services for children, families and adults. Our Board of Trustees and Executive Group are committed to building relationships and trust with our supporters. The Board works closely with the Executive Group to ensure that the Charity remains compliant at all times with Fundraising regulations and best practice. We are member of the Fundraising Regulator.

Impact in the Community and Environment

Trustees and the Executive Group are committed to acting in accordance with our Environmental Policy and to identifying and seeking to minimise negative environmental impact. Family Action holds ISO 14001 (Environmental Management certification). Please also see our Carbon and Energy Report.

Acting fairly between members

Family Action is committed to ensuring all colleagues are treated fairly. To help achieve this we have appointed an Equality, Diversity and Inclusion Manager, have set in train an ambitious programme of EDI development work, have an active approach to staff wellbeing and maintain very positive relationships with our recognised trade unions. Family Action’s status as an employer of choice was reflected in our high rating within the Top100 Best Not for Profits and Best Large Companies Lists 2021 as described above. These placings also recognised our world-class levels of employee engagement.

Appointment of Auditors

A resolution proposing the appointment of our auditors will be submitted at our AGM in 2021.

Our Thanks

Without doubt, 2020/2021 has been one of Family Action’s most challenging years ever. Despite that, we have continued to deliver all services while introducing many new ones. Trustees recognise the exceptional leadership of Family Action’s Chief Executive, David Holmes CBE, and the huge contribution of the Executive Group, Senior Leadership Group and all our excellent staff, volunteers and supporters. I would like to thank them all. I am proud that Family Action is celebrating its 152nd year with more services than ever before and I am confident that the charity will continue to go from strength to strength.

In approving this Trustees’ Report, the Board is also approving the Strategic Report included herein in their capacity as Company Directors.

On behalf of the Board.

maryefulton

Mary Fulton Chair of Trustees 30[th] September 2021

19

FAMILY ACTION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Family Action Trustees, Officers and Advisers

Patron

HRH The Duchess of Cambridge

Vice Patrons

Christine Davies CBE Dr Andrew McCulloch Dame Denise Platt DBE Katie Vanneck-Smith Professor Harriet Ward CBE

Trustees and Officers

Officials

Mary Fulton *** (Chair) Paul Hayes (Vice Chair) Siobhan Boylan (Honorary Treasurer)

Members

Aida Cable Sophy Doyle* Robert Tapsfield* George Dunnett Phillip Bowkley Dez Holmes Philippe Broadhead** Ian Hargrave ** Janet Kolind (resigned July 2021) Barin Brian Roy (from 3 December 2020) Ayodele Arogundade (from 11 February 2021) Melanie Williams Browne (from 11 February 2021)

Family Action Registered Office 34 Wharf Road London N1 7GR Tel: [phone] E-mail: [e-mail] Web: www.family-action.org.uk

Family Action is governed by its Articles of Association. It is a registered Charity (No 264713) and Company limited by guarantee not having a share capital (No 01068186) in England and Wales. Registered as a Foreign Company (N0 6009F) and Charity (No. 1206) in the Isle of Man.

Principal Advisers to Family Action

Bank

Coutts & Co Commercial Banking 440 Strand London WC2R 0QS

Independent Auditor

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Chief Executive and Company Secretary

David Holmes CBE

Director of Finance Funke Fatunla

General Counsel and Director of Systems Ricardo Gomes Da Silva

Director of Services & Innovation Helen Cantrell

Director of Development & External Affairs Anja Bailey

* Chair of Remuneration Committee ** Chair of Investment Committee *** Chair of Governance Committee ** Chair of Audit Committee * Chair of Quality & Performance Committee

Investment Advisor

Brewin Dolphin Ltd 12 Smithfield Street, London EC1A 9LA

Lawyers

Foot Anstey LLP Salt Quay House 4 North East Quay Sutton Harbour Plymouth, PL4 0BN

Stone King LLP Boundary House 91 Charterhouse Street London, EC1M 6HR

20

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FAMILY ACTION

Opinion

We have audited the financial statements of Family Action for the year ended 31 March 2021, which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021, and of the charitable company’s net movement in funds, 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ISAs (UK) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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’ Annual Report (which incorporates 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 Directors’ Report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.

21

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FAMILY ACTION (continued)

Matters on which we are required to report by exception

In 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 Trustees’ Annual Report (which incorporates 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 by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the charitable company 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.

Responsibilities of Trustees for the financial statements

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’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, corporation tax, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries and management bias in accounting estimates and judgements. Audit procedures performed by the engagement team included:

• Inspecting correspondence with regulators and tax authorities;

• Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

• Evaluating management’s controls designed to prevent and detect irregularities;

• Identifying and testing journals, in particular journal entries posted that significantly impact on the result for the year, posting in areas subject to significant judgements or estimates, postings in accounts that are considered to be higher risk; and

• Challenging assumptions and judgements made by management in their critical accounting estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

22

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FAMILY ACTION (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 charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Kathryn Burton (Senior Statutory Auditor) for and on behalf of Haysmacintyre LLP, Statutory Auditor

Date: 30[th] September 2021

10 Queen Street Place London EC4R 1AG

23

FAMILY ACTION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2021

			Unrestricted	Restricted	Endowment	Total	Total
			Funds	Funds	Funds	2021	2020
		Notes	£’000	£’000	£’000	£’000	£’000
Income and Endowments from:
Donations and legacies		3	928	2,685	-	3,613	1,296
Investment		4	3	238	-	241	364
Charitable activities		5	847	36,367	-	37,214	35,633
			----------------	-----------------	---------------	---------------	---------------
Total			1,778	39,290	-	41,068	37,293
			---------------	----------------	-----------------	---------------	---------------
Expenditure on:
Raising funds:			457	-	80	537	732
Charitable activities			223	37,353	-	37,576	35,078
			-------------------	-------------------	-------------------	-------------------	-------------------
Total		6	680	37,353	80	38,113	35,810
			-------------------	-------------------	-------------------	-------------------	-------------------
Net income before	investments		1,098	1,937	(80)	2,955	1,483
gains/(losses)
Gains/(Losses) on investments			-	79	1,603	1,682	(1,072)
			-------------------	-------------------	-------------------	-------------------	-------------------
Net income before transfers
			1,098	2,016	1,523	4,637	411
Transfers between Funds			867	(867)	-	-	-
			-------------------	-------------------	-------------------	-------------------	-------------------
Net income before other recognised
gains and losses			1,965	1,149	1,523	4,637	411
Remeasurement on net defined
benefit pension liability		9	-	(8,891)	-	(8,891)	1,571
			-----------------	-----------------	-----------------	-----------------	-----------------
Net movements in funds			1,965	(7,742)	1,523	(4,254)	1,982
Fund balance brought forward at
1 Apri1 2020			3,933	4,186	8,990	17,109	15,127
			-------------------	-------------------	-------------------	-------------------	-------------------
Fund balances carried forward
At 31 March 2021			5,898	(3,556)	10,513	12,855	17,109
			=========	=========	=========	=========	=========

All amounts relate to continuing activities. Conduit activities are not included above but are set out in Note 22.

The attached notes form part of the financial statements.

24

FAMILY ACTION

SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

	2021	2020
	£’000	£’000
Total income	41,068	37,293
Total expenditure excluding endowment	(38,033)	(35,735)
funds charges
	-------------	-------------
Net income before investments gains/(losses)	3,035	1,558
Gains/ (losses) on investments (excluding
endowment funds)	79	(75)
	-------------	-------------
Net income for the year	3,114	1,483
	======	======

Total income comprises £1,778k (2020: £1,227k) unrestricted funds and £39,290k (2020: £36,066k) restricted funds.

A detailed analysis of expenditure is available in the Statement of Financial Activities and Note 5.

The Summary Income and Expenditure Accounts are derived from the Statement of Financial Activities with movements in endowment funds excluded to comply with Company Law. All income and expenditure are derived from continuing activities.

The Statement of Financial Activities, together with the notes to the accounts, provides full information on the movements during the year on all the funds of the charitable company.

The attached notes form part of the financial statements.

25

FAMILY ACTION

BALANCE SHEET

AT 31 MARCH 2021 Company Number: 01068186

			2021			2020
	Notes	£’000		£’000	£’000		£’000
FIXED ASSETS
Tangible assets	10			4,587			6,623
Trust and Investments	11			11,061			9,459
CURRENT ASSETS
Debtors	13	4,324			5,654
Cash		9,398			6,999
		-------------			-------------
		13,722			12,653
CREDITORS:amounts falling
due within one year	14	(2,544)			(3,575)
		-------------			-------------
NET CURRENT ASSETS				11,178			9,078
				-------------			-------------
TOTAL ASSETS LESS CURRENT
LIABILITIES				26,826			25,160
CREDITORS:amounts falling
due after one year	15			-			(2,593)
Pension scheme deficit	9			(13,971)			(5,458)
				-------------			-------------
NET ASSETS	20			12,855			17,109
				======			======
FUNDS
Unrestricted funds:
General funds	16			4,213			2,378
Designated reserve	16			1,685			1,555
				-------------			-------------
				5,898			3,933
Restricted funds
Income funds – including revaluation
reserve of (£136k) (2020: (£42k))	17			10,415			9,644
Pension Reserves	9			(13,971)			(5,458)
Endowment Funds - including revaluation
reserve of £1,009k (2020: (£799k))	18			10,513			8,990
				-------------			-------------
				12,855			17,109
				======			======

The Financial Statements on pages 24 to 52 were approved and authorised for issue by the Board of Trustees, and signed on its behalf on 30[th] September 2021 by:

maryefulton

Mary Fulton Chairman of Trustee Board

Siobhan Boylan Honorary Treasurer

The attached notes form part of the financial statements.

26

FAMILY ACTION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

		2021		2020
	£’000	£’000	£’000	£’000
Net cash provided by operating activities		3,052		108
Cash flow from investing activities:
Dividends and interest received	241		364
Purchase of tangible assets	(41)		(712)
Proceeds from sale of property	1,817		-
Proceeds from sale of investments	1,299		8,904
Purchase of investments	(2,098)		(7,700)
Net movement in cash held not yet invested	786		(1,204)
	----------------		----------------
Net cash used in investing activities		2,004		(348)
Cash flow from financing activities:
Repayments of borrowing	(2,657)		(63)
	---------------		---------------
Net cash (used in) financing activities		(2,657)		(63)
		--------------		--------------
Change in cash and cash equivalents in the year		2,399		(303)
Cash and cash equivalents at the beginning of the year		6,999		7,302
		----------------		----------------
Cash and cash equivalents at the end of the year		9,398		6,999
		==========		==========

27

FAMILY ACTION

NOTES TO THE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

	2021	2020
	£’000	£’000
Net income for the year before investment gains/ (losses)	2,955	1,483
Depreciation	177	163
Loss on disposal of assets	-	122
Decrease in debtors	1,329	(860)
Decrease in creditors	(1,031)	(224)
Decrease in pension scheme deficit, net of gains/losses	(133)	(287)
Net investment income	(241)	(364)
Investment manager fees	80	75
Loss on sale of property	(84)	-
	---------------	----------------
Net cash provided by operating activities	3,052	108
	========	=========
ANALYSIS OF CASH AND CASH EQUIVALENTS
	2021	2020
	£’000	£’000
Cash in hand	9,398	6,999
	---------------	---------------
	9,398	6,999
	========	========
ANALYSIS OF CHANGES IN NET FUNDS

Cash Loans falling due within one year Loans falling due in more than one year TOTAL	At start of year Cash flows Other non-cash changes At end of year £’000 £’000 £’000 £’000 6,999 2,399 - 9,398
	6,999 2,399 - 9,398 (63) 63 - - (2,594) 2,594 - -
	4,342 5,056 - 9,398

28

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

(a) General information

Family Action is a charitable company limited by guarantee incorporated in England and Wales (co. number 01068186) and registered with the Charity Commission (Charity Registration no. 264713). The Charity’s registered office address is 34 Wharf Road, London N1 7GR. The members of the company are the Trustees. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

(b) Basis of Preparation

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of fixed asset investments, which are carried at fair value and in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) second edition effective 1 January 2019, applicable accounting standards (FRS 102) and the Companies Act 2006. Family Action is a public benefit entity as set out in section 3 of FRS 102.

(c) Going concern

Following a thorough review of projections, including consideration of the delivery costs of existing contracts, a two year projected cash flow forecast and the impact of the Covid-19 pandemic on the company’s operations, the Trustees consider that there are no material uncertainties regarding the Charity’s ability to continue as a going concern. Accordingly, the Trustees continue to adopt the going concern basis in preparing the financial statements.

(d) Entity combinations

Entity combinations are the effect on the accounts of Family Action of changes to the structure of the Charity and the group that may arise from the acquisition of businesses and companies, the gift of charities and mergers between charities. In accounting for entity combinations, Family Action applies the requirements of Sections 19 and PBE34.75 – PBE34.86 of FRS 102 and the guidance set out in the Charity SORP.

Unless the requirements for merger accounting are met, an acquiring entity is identified in an entity combination, being the dominant party in a charity merger or the contractual acquirer of a business or company. The assets and liabilities of the entity joining the group at the date of combination or being transferred to the parent charitable company are initially recognised in Family Action’s accounts at their fair values. After that date, the accounting policies of Family Action are applied to recognition, de-recognition and valuation of the assets and liabilities.

When the transaction is in substance a gift from the Trustees or members of an existing charity, the fair value of the net assets and liabilities acquired is recognised as a gain or loss within the Statement of Financial Activities.

(e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income is deferred when the charity has to fulfil conditions before becoming entitled or where the donor or contracting party has specified the income be expended in a future period.

Grants from government and other agencies amounting to a contract for services are recognised as income as the charity earns the right to the consideration by its delivery of those services. Income received in advance of the provision of a specified service is deferred until the service is delivered.

Legacies are recognised on notification of an impending distribution or on receipt. For the purposes of entitlement this is considered to be the earlier of the date on which with the charity is made aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from an estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition has not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donated services and facilities are included as ‘income from donations and legacies’ at their estimated value to the Charity when received, and under the appropriate expenditure heading depending on the nature of service or facility provided, at the same value and time. No amounts are included in the financial statements for services donated by volunteers.

(f) Expenditure

All expenditure is accounted for on the accrual basis and has been classified under headings that aggregate all costs related to the category.

29

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (continued)

Fundraising and publicity costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of charitable activities.

Direct expenditure on charitable activities includes all costs directly relating to delivering the Charity’s principal activities of providing services and financial support to families, individuals and groups within the community.

Support costs are those costs incurred directly in support of the expenditure on the objects of the Charity and governance costs and have been allocated, together with overheads, based on the head count. Governance costs are those incurred in connection with compliance with constitutional and statutory requirements of the Charity.

(g) Tangible Fixed Assets and Depreciation

Tangible fixed assets are stated at purchase cost and any incidental expenses of acquisition or deemed cost less accumulated depreciation and accumulated impairment losses. Amounts financed by unrestricted funds and costing more than £500 are capitalised.

Depreciation is provided on all tangible assets, other than freehold land, to write off the cost, less estimated residual value of each asset over its expected useful life on a straight-line basis. The estimated useful lives are as follows:

Freehold and Leasehold property – 75 years; Leasehold Property Improvements – 20 years Leasehold Improvements – term of the Lease Equipment – 4 years; Computers – 3 years; Furniture – 10 years IT infrastructure – 5 years

(h) Fixed asset investments

Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year. Investments in unlisted investments and subsidiary undertakings are stated at cost, less provision for diminution in value.

(i) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities.

(j) Financial instruments

Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price. Such assets are subsequently carried at the amortised cost using the effective interest method, less impairment.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, with subsequent changes in fair value recognised in the SOFA, except investments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the established cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the SOFA.

Financial liabilities

Basic financial liabilities, including trade and other payables, and loans from third parties are initially recognised at transaction price.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Loans obtained by the Charity to further its charitable purposes at rates below prevailing market rates are classified as concessionary loans and accounted for in accordance with Section 34 of FRS 102. Such loans are initially recognised and measured at the amount received and subsequently adjusted to reflect any repayments, accrued interest and any subsequent impairment.

30

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (continued)

(k) Employee benefits

The charity provides a range of benefits to employees including paid holiday arrangements and defined benefit and defined contribution pension plans.

Short-term benefits

Short-term benefits, including holidays and other similar non-monetary benefits are recognised as an expense in the period in which the service is received.

Defined contribution pension plans

The Charity contributes to a Group Personal Pension arrangement administered by Aviva (merged with Friends Life). New members are auto enrolled into the GPP based on eligibility except where employees choose the option to opt out. The contributions are recognised as an expense when they fall due. The assets of the pension plans are held separately from the Council in independently administered funds.

Defined benefit pension scheme

Family Action operates a defined benefit pension scheme, which closed, to future accruals in May 2012, the assets of which are administered by Trustees.

The liability recognised in the balance sheet in respect of the defined benefit pension scheme is the present value of the defined benefit obligation at the end of the reporting date less the fair value of the scheme assets at the reporting date.

The defined benefit obligation is calculated using the projected unit credit method. Annually the Charity engages an independent actuary to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating the estimated period of the future periods (“discount rate”).

The fair value of the schemes assets are measured in accordance with the FRS 102 fair value hierarchy, and include the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as “re-measurement of net defined benefit pension liability”.

The cost of the defined benefit plan is recognised in the SOFA as employee costs and comprises:

• The increase in the pension benefit liability arising from employee service during the year; and

• The cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of the scheme assets. The cost is recognised in the SOFA within “expenditure on charitable activities”.

Details of the scheme assets and liabilities and major assumptions are shown in Note 9.

(l) Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds are the unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the Notes to the Financial Statements.

Restricted funds are funds that are used in accordance with the specific instructions imposed by the donors or which have been raised by the Charity for particular purposes.

Investment income and gains are allocated to the appropriate fund.

(m) Leasing

Rentals in respect of operating leases are charged on a straight line basis over the lease term.

Incentives received to enter into an operating lease are credited to the SOFA, to reduce the lease expense, on a straight-line basis over the period of the lease.

31

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key areas subject to judgement and estimation are as follows:

Defined benefit pension scheme

The Charity has obligations to pay pension benefits under a defined benefit pension scheme. The cost of these benefits and the present value of the obligation depend on a number of factors including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. The Trustees, in consultation with the scheme’s actuary, agree the key factors and estimates that determine the net pension obligation in the balance sheet on the basis of historical experience and current trends.

3.	DONATIONS AND LEGACIES	2021	2020
		£’000	£’000
	Individuals	1,190	323
	Charitable trusts	951	725
	Companies	1,472	248
		---------------	---------------
		3,613	1,296
		=======	=======
4.	INVESTMENT INCOME	2021	2020
		£’000	£’000
	Interest receivable	3	17
	Dividends receivable from investments	234	337
	Investment income from NatWest	4	10
		----------	----------
		241	364
		=====	=====

5. INCOME FROM CHARITABLE ACTIVITIES - 2021

		Unrestricted	Restricted	Endowment	Total
		Funds	Funds	Funds	2021
	Notes	£’000	£’000	£’000	£’000
Income
Statutory, Lottery & Trusts Funding	5a/b/c	-	32,137	-	32,137
Rent and Fees		95	930	-	1,025
Trusts and Administered Funds		-	2,648	-	2,648
Other Income		752	652	-	1,404
		----------------	-----------------	-----------------	-------------
		847	36,367	-	37,214
		---------------	----------------	-----------------	---------------

Included within restricted other income is £101k (2020: £nil) received from CJRS Government grants.

32

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

5. INCOME FROM CHARITABLE ACTIVITIES – 2020

Unrestricted Restricted Endowment Total Total Funds Funds Funds 2020 2019 Notes £’000 £’000 £’000 £’000 £’000 Income Statutory, Lottery & Trusts Funding 5a/b/c - 32,610 - 32,610 23,688 Rent and Fees 144 1,516 - 1,660 1,627 Trusts and Administered Funds - 26 - 26 8 Other Incoming Resources 764 573 - 1,337 3,168 ---------------- ----------------- ----------------- ------------- ------------- 908 34,725 - 35,633 28,491 --------------- ---------------- ----------------- --------------- --------------- 5a. LOTTERY FUND, TRUSTS & GRANTS Movement in Funds	Unrestricted Restricted Endowment Total Total Funds Funds Funds 2020 2019 Notes £’000 £’000 £’000 £’000 £’000 Income Statutory, Lottery & Trusts Funding 5a/b/c - 32,610 - 32,610 23,688 Rent and Fees 144 1,516 - 1,660 1,627 Trusts and Administered Funds - 26 - 26 8 Other Incoming Resources 764 573 - 1,337 3,168 ---------------- ----------------- ----------------- ------------- ------------- 908 34,725 - 35,633 28,491 --------------- ---------------- ----------------- --------------- --------------- 5a. LOTTERY FUND, TRUSTS & GRANTS Movement in Funds	Unrestricted Restricted Endowment Total Total Funds Funds Funds 2020 2019 Notes £’000 £’000 £’000 £’000 £’000 Income Statutory, Lottery & Trusts Funding 5a/b/c - 32,610 - 32,610 23,688 Rent and Fees 144 1,516 - 1,660 1,627 Trusts and Administered Funds - 26 - 26 8 Other Incoming Resources 764 573 - 1,337 3,168 ---------------- ----------------- ----------------- ------------- ------------- 908 34,725 - 35,633 28,491 --------------- ---------------- ----------------- --------------- --------------- 5a. LOTTERY FUND, TRUSTS & GRANTS Movement in Funds	Unrestricted Restricted Endowment Total Total Funds Funds Funds 2020 2019 Notes £’000 £’000 £’000 £’000 £’000 Income Statutory, Lottery & Trusts Funding 5a/b/c - 32,610 - 32,610 23,688 Rent and Fees 144 1,516 - 1,660 1,627 Trusts and Administered Funds - 26 - 26 8 Other Incoming Resources 764 573 - 1,337 3,168 ---------------- ----------------- ----------------- ------------- ------------- 908 34,725 - 35,633 28,491 --------------- ---------------- ----------------- --------------- --------------- 5a. LOTTERY FUND, TRUSTS & GRANTS Movement in Funds	Unrestricted Restricted Endowment Total Total Funds Funds Funds 2020 2019 Notes £’000 £’000 £’000 £’000 £’000 Income Statutory, Lottery & Trusts Funding 5a/b/c - 32,610 - 32,610 23,688 Rent and Fees 144 1,516 - 1,660 1,627 Trusts and Administered Funds - 26 - 26 8 Other Incoming Resources 764 573 - 1,337 3,168 ---------------- ----------------- ----------------- ------------- ------------- 908 34,725 - 35,633 28,491 --------------- ---------------- ----------------- --------------- --------------- 5a. LOTTERY FUND, TRUSTS & GRANTS Movement in Funds	Unrestricted Restricted Endowment Total Total Funds Funds Funds 2020 2019 Notes £’000 £’000 £’000 £’000 £’000 Income Statutory, Lottery & Trusts Funding 5a/b/c - 32,610 - 32,610 23,688 Rent and Fees 144 1,516 - 1,660 1,627 Trusts and Administered Funds - 26 - 26 8 Other Incoming Resources 764 573 - 1,337 3,168 ---------------- ----------------- ----------------- ------------- ------------- 908 34,725 - 35,633 28,491 --------------- ---------------- ----------------- --------------- --------------- 5a. LOTTERY FUND, TRUSTS & GRANTS Movement in Funds
	Project Ref. **Number **	Balance 31 March *2020 **	Incoming Resources	Outgoing Resources	Balance 31 March 2021
These funds are part of statutory fundingin restricted funds
		£	£	£	£
Big Lottery Reaching Communities - FriendshipWorks	10302129	13,054	99,992	(97,516)	15,530
National Lottery Community Fund- Sandwell DVA	10277423	0	4,629	(4,629)	0
National Lottery Community Fund- Southend Families Together	10305962	46,853	67,338	(114,004)	187
National Lottery Community Fund- MedwayPerinatal	00103223 73	17,598	167,762	(167,241)	18,119
National Lottery-Sport England	N\A	0	103,270	(103,270)	0
National Lottery Community Fund - Sandwell HelpingHands	00103476 49	4,145	69,672	(69,110)	4,707
National Lottery Community Fund - BAND buddying project	00103520 61	(2,393)	49,857	(47,411)	53
Department of Health & Social Care - Bradford		1,491	83,272	(83,272)	1,491
Department of Health & Social Care - Hackney		55	112,485	(149,983)	(37,443)
Department of Health - Stockton Enhanced Perinatal Project	SW0081		58,728	(50,186)	8,542
		------------------	--------------------	--------------------	---------------
		80,803	817,005	(886,622)	11,186
		=======	========	========	======

* excludes funding that does not require disclosure on the face of the accounts.

33

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

5b.

STATUTORY FUNDING

STATUTORY FUNDING
Adoption Support Fund	London Borough of Redbridge
BarnsleyMBC	London Borough of Tower Hamlets
Birmingham CityCouncil	London Borough of Waltham Forest
Bolton Metropolitan Borough Council	London Borough of Wandsworth
Bradford Metropolitan District Council	Manchester CityCouncil
Bradford Trident	MedwayCouncil
Bristol CityCouncil	National Children's Bureau
Cambridgeshire & Peterborough CityCouncil	NHS Bradford CCG
Central Manchester NHS, Manchester Children's Hospital	NHS City & Hackney CCG
Child & Adult Mental Health Service Alliance	NHS Heywood, Middleton & Rochdale CCG
Children & Family Court Advisory & Support Service (CAFCASS)	NHS Norfolk and Waveney CCG
Cityand HackneyGP Confederation	NHS North East Hampshire & Farnham CCG
Cityof Westminster	NHS Wandsworth CCG
Cityof York Council	NHS West London CCG
Cumbria Council	Norfolk CountyCouncil
Department for Education	North Lincolnshire Council
Department of Health & Social Care	North Tyneside Council
Department of Justice(Styal)	Nottinghamshire CountyCouncil
Derbyshire CountyCouncil	Nottinghamshire NHS Trust
Devon CountyCouncil	One Adoption Agency
Durham CountyCouncil	One Adoption Beverley
East Leicestershire CCG	One Adoption North & Humber
East Leicestershire & Rutland CCG	One Adoption North East Lincoln
East Ridingof Yorkshire Council	One Adoption North Yorkshire
Greater London Authority	One Adoption West Yorkshire
Harrogate and District NHS Foundation	Pennine Care NHS Trust Salford
HaveringHealth GP Federation	Peterborough CityCouncil
Hull CityCouncil	Rochdale Metropolitan Borough Council
Isle of Man Government	Rotherham Metropolitan Borough Council
Leeds CityCouncil	Royal Borough of Kensington & Chelsea
Leicestershire CountyCouncil	Royal Borough of Windsor & Maidenhead
Lincolnshire CountyCouncil	Sefton Council
London Borough of Camden	Sheffield CountyCouncil
London Borough of Ealing	Solihull Metropolitan Borough Council
London Borough of Hackney	Southend on Sea Borough Council
London Borough of Hammersmith	Staffordshire CountyCouncil
London Borough of Harrow	Stockton Borough Council
London Borough of Islington	Walsall Council
London Borough of Lambeth	West Leicestershire CCG
London Borough of Lewisham	Wigan Council
London Borough of Newham	Wiltshire CountyCouncil

34

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

5c. Income & Expenditure for Isle of Man Government Funding (Family Action registered Charity No 1206):

Turnover Expenditure Surplus/(Deficit)	2021 2020 £’000 £’000 786 780 (684) (646)
	102 134

6a. ALLEVIATION OF NEED

The Charity made 4,341 (2020: 1,559) grants to individuals and families in the year that totalled £2.9m (2020: £0.3m). The Charity has opted to take the exemption available under Charity Law not to disclose the names of grants recipients in these financial statements.

6b. ANALYSIS OF TOTAL EXPENDITURE - 2021

		Direct	Allocated	Support	2021	2020
		Costs	costs	Costs
		£’000	£’000	£’000	£’000	£’000
	Raising funds
	Fundraising and publicity costs	408	-	129	537	732
		-----------------	-----------------	-----------------	------------------	------------------
	Cost of charitable activities
	Operational services	32,341	1,134	1,143	34,618	34,659
	Educational grants advice	75	-	4	79	57
	Alleviation of need	2,879	-	-	2,879	362
		-------------------	------------------	-------------------	--------------------	--------------------
		35,295	1,134	1,147	37,576	35,078
		--------------------	------------------	-------------------	---------------------	---------------------
		35,703	1,134	1,276	38,113	35,810
		=======	=======	=======	========	========
6b.	ANALYSIS OF TOTAL EXPENDITURE - 2020
		Direct	Allocated	Support	2020	2019
		Costs	costs	Costs
		£’000	£’000	£’000	£’000	£’000
	Raising funds
	Fundraising and publicity costs	594	-	138	732	692
		-----------------	-----------------	-----------------	------------------	------------------
	Cost of charitable activities
	Operational services	32,216	1,402	1,041	34,659	27,331
	Educational grants advice	27	-	30	57	94
	Alleviation of need	362	-	-	362	606
		-------------------	------------------	-------------------	--------------------	--------------------
		32,605	1,402	1,071	35,078	28,021
		--------------------	------------------	-------------------	---------------------	---------------------
		33,209	1,402	1,209	35,810	28,713
		=======	=======	=======	========	========

35

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

6b. ANALYSIS OF TOTAL EXPENDITURE

		2021	2020
	Support costs include:	£’000	£’000
	Staff Costs	765	683
	Office Premises	150	177
	Rates	29	39
	Cleaning & materials	33	31
	Office Equipment	21	16
	Telephone	29	26
	Depreciation	177	163
	Governance	32	31
	Others	40	43
		----------------	----------------
		1,276	1,209
		=======	=======
	The above expenditure includes the following charges:
		£’000	£’000
	Auditor’s remuneration – Statutory audit	20	22
	Auditor’s remuneration – non audit services:
	Taxation advisory services	3	1
	Assurance services	11	4
	Depreciation	177	163
	Interest costs on Bank Loan	108	114
	Operating lease rentals:
	- Buildings	440	416
	- Other	44	55
		=======	=======
7.	STAFF COSTS
		2021	2020
	Staff costs consist of:	£’000	£’000
	Wages and salaries	19,220	17,990
	Redundancy	125	257
	Social security costs	1,592	1,505
	Employer’s Pension costs	837	832
		---------------	---------------
		21,774	20,583
	Agency costs	337	336
		---------------	---------------
		22,111	20,920
		=======	=======
	The monthly average number of employees was	890	847
		=======	=======
*Annual deficit contribution payment deducted from wages and salaries.
The	numbers of employees with emoluments over £60,000 were as follows:
		2021	2020
		No	No
	£60,000 - £70,000	-	1
	£70,000 - £80,000	1	1
	£80,000 - £90,000	2	2
	£90,000 - £100,000	1	-
	£150,000- £160,000	-	1
	£160,000-£170,000	1	-
		=======	=======

36

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

The Directors consider the Board of Directors, who are the Trustees, and the Senior Management Team as comprising the key management personnel of the Charity.

The Senior Management Team of the group comprises the Chief Executive Officer, Director of Services & Innovation, General Counsel & Director of Systems, Director of Finance and Director of Development & External Affairs. The total compensation of the Senior Management Team was £582,523 (2020: £555,727).

8. TRUSTEES’ REMUNERATION AND EXPENSES

The Charity’s Trustees were not paid or received any other benefits from employment with the Charity or its subsidiary in the year (2020: £nil) neither were they reimbursed expenses during the year (2020: £nil). No Charity Trustee received payment for professional or other services supplied to the Charity (2020: £nil).

37

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

9. PENSION COSTS

Pension Arrangements

The group has two pension arrangements, a defined contribution and defined benefits schemes.

The defined contribution scheme is a Group Personal Pension arrangement administered by Friends Life, now Aviva. New members are auto enrolled into the GPP based on eligibility except where employees choose the option to opt out.

The total defined contribution payable and recognised as an expense in the SOFA was £836,494 (2020: £831,366).

The administration of the closed defined benefits scheme changed during the year from Capita Hartshead Limited to Cartwright Group. The scheme closed to future accruals on 31 May 2012 except for payments due under a Recovery Plan agreed with the pension Trustees. There is an obligation to fund the ongoing administration costs of the pension scheme.

The disclosures, set out below, are based on calculations carried out as at 31 March 2021 by a qualified independent Actuary.

The Scheme’s assets are held in a separate trustee-administered fund to meet long-term pension liabilities to past and present employees. The liabilities of the Scheme are measured by discounting the best estimate of future cash flows to be paid out of the Scheme using the Projected Unit Method, which is a method suitable for a scheme that was closed to new entrants. The liabilities set out in this note have been calculated based on the full valuation as at 1 January 2020, updated to 31 March 2021. The results of the calculations and the assumptions adopted are shown below.

The Charity’s contributions expected to be made in the year commencing 1 April 2021 are approximately £557k based on the revised schedule of contributions agreed at the 1 January 2020 valuation.

The Trustees of the Scheme are required to act in the best interest of the Scheme’s beneficiaries. The appointment of members of the Trustee Board is determined by the trust documentation. Trustees have received actuarial advice and the overall expected rate of return on assets is based on the long-term future expected investment return for each asset class as at the beginning of the period.

Changes in Defined Benefits Obligation:	2021	2020
	£’000	£’000
Benefits obligation, beginning of the year	33,167	34,169
Interest cost	721	827
Actuarial losses arising from changes in demographic assumptions	717	127
Actuarial losses/(gains) arising from changes in financial assumption	5,538	(1,142)
Actuarial losses on experience adjustments	3,206	-
Benefits payments	(808)	(814)
	------------	------------
Benefits obligation, end of year	42,541	33,167
	=======	=======

38

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

9. PENSION COSTS (continued)

Assumptions used to determine defined benefit obligation at end of year:

			2021	2020
Discount rate			2.00%	2.20%
Rate of retail price inflation (non-pensioner)			3.25%	2.50%
Rate of consumer price inflation (non-pensioner)			n/a	1.60%
Nominal rate of increase in pension payments (pensioners)
- RPI 5% pa			3.15%	2.50%
- RPI 3% pa			2.55%	2.15%
Post-retirement mortality assumption:		2021	2020
-Base table	100% S3PXA		100% S2PXA
-Projections for future improvements	CMI 2020	projections, with	CMI 2019 projections, with
	a long term trend rate of		a long term trend rate of
	0.5% p.a.		0.5% p.a.
Commutation allowance	80% of maximum cash at		85% of maximum cash at
	retirement		retirement
		Years	Years
Life expectancy from 65 for a male currently aged 65		21.6	21.1
Life expectancy from 65 for a male currently aged 45		22.0	21.5
Life expectancy from 65 for a female currently aged 65		23.9	23.0
Life expectancy from 65 for a female currently aged 45		24.5	23.7

Changes in Scheme assets are as follows:	2021	2020
	£’000	£’000
Fair value of Scheme assets, beginning of the year	27,709	26,856
Interest Income	606	654
Return on plan assets in excess of interest income	570	556
Employers’ Contributions	675	656
Administration Expenses	(182)	(199)
Benefits payments	(808)	(814)
	------------	------------
Fair value of Scheme assets, end of year	28,570	27,709
	=======	=======

39

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

9. PENSION COSTS (continued)

Scheme Assets Allocation, End of Year	31 March 2021	31 March 2020
	£’000	£’000
Diversified Growth Funds	17,467	14,884
Absolute Return Bonds	1,986	1,879
Liability Driven Investment	6,448	8,290
Property	2,576	2,521
Cash	93	135
	-------------	-------------
Total	28,570	27,709
	======	======

Funded Status

Funded Status
The funded status at the end of the year, and the related amounts recognised on	the balance sheet, follow:
	31 March 2021	31 March 2020
	£’000	£’000
Fair value of Scheme assets	28,570	27,709
Present value of funded defined benefit obligation	(42,541)	(33,167)
	-------------	-------------
Deficit recognised in scheme	(13,971)	(5,458)
	========	========
Components of benefit cost recognised in Income & Expenditure	31 March 2021	31 March 2020
	£’000	£’000
Net interest cost on net defined liability	115	173
Administration Expenses	182	199
	-------------	-------------
Net benefit cost in SOFA before other recognised gains and losses	297	372
	========	========
	2021	2020
	£’000	£’000
Actual return on plan assets	1,176	1,210
	========	========
Amount recognised in other recognised gains and losses:	2021	2020
	£’000	£’000
Actuarial losses/(gains) arising from changes in demographic assumptions	717	127
Actuarial losses arising from changes in financial assumptions	5,538	(1,142)
Actuarial losses on experience adjustments	3,206	-
Return on plan assets in excess of interest income	(570)	(556)
	-------------	-------------
Loss/(gains) recognised in other recognised gains and losses	8,891	(1,571)
	========	========

40

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

10	TANGIBLE FIXED	ASSETS
.
		Freehold	Leasehold	Leasehold	IT	Computers	Total
		Land and	Property	Improvements	Infrastructure	Equipment
		Buildings				& Furniture
		£’000	£’000	£’000	£’000	£’000	£’000
	Cost
	At 1 April 2020	1,950	3,900	746	161	114	6,871
	Additions	-	-	-	-	41	41
	Disposal	(1,950)	-	-	-	-	(1,950)
		-----------	-----------	-----------	-----------	-----------	-----------
	At 31 March 2021	-	3,900	746	161	155	4,962
		-----------	-----------	-----------	-----------	-----------	------------
	Depreciation
	At 1 April 2020	26	52	63	66	41	248
	Charge for the year	24	52	42	32	27	177
	Disposal	(50)	-	-	-	-	(50)
		______	______	______	______	______	______
	At 31 March 2021
		-	104	105	98	68	375
		--------------	--------------	-----------	-----------	-----------	------------
	Net Book Value at
	31 March 2021	-	3,796	641	63	87	4,587
		======	======	======	======	======	=======
	Net Book Value at
	1 April 2020	1,924	3,848	683	95	73	6,623
		======	======	======	======	======	======

41

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

11. FIXED ASSETS & INVESTMENTS

All trust fund investments were revalued to the quoted price on 31 March 2021.

The investments of the Endowed Trusts and administered funds are held in a broadly diversified multi-manager portfolio devised and run by Brewin Dolphin.

Market value at 1 April Disposal in year Acquisitions in year Net cash movement in year not yet invested Investment management fees Net gain/(losses) on revaluation in year Market value at 31 March Historical cost at 31 March Splits: Listed Investment Investment cash Investments in Endowed Trusts and Administered Funds-Capital at Valuation	2021 £’000 9,459 (1,299) 2,098 (866) (80) 1,749 --------------- 11,061 ======= 10,190 ======= 2021 £’000 10,705 356
	11,061
	11,061

12. SUBSIDIARY UNDERTAKINGS

Friendship Works:

Friendship Works is a dormant charitable company incorporated in England and Wales (Charity no: 1017460, Company no: 2754587) controlled by Family Action by virtue of being its sole member.

Building A New Direction (BAND):

BAND is a dormant charitable company incorporated in England and Wales (Charity no: 1060822, Company no: 03284504) controlled by Family Action by virtue of being its sole member.

Post Adoption Centre UK (PAC-UK):

PAC-UK is a dormant charitable company incorporated in England and Wales (Charity no: 294998, Company no: 2040322) controlled by Family Action by virtue of being its sole member.

42

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

13.	DEBTORS
		2021	2020
		£’000	£’000
	Amounts invoiced to funders	3,685	4,778
	Prepayments and accrued income	458	876
	Other Debtors	181	-
		-------------------	-------------------
		4,324	5,654
		========	========
14.	CREDITORS: amounts falling due within one year
		2021	2020
		£’000	£’000
	Trade Creditors	961	1,075
	Payment received on account for contracts	26	22
	Accruals and Deferred Income	271	387
	Tax and social security	577	1,082
	Other creditors	709	946
	Bank Loans	-	63
		--------------------	--------------------
		2,544	3,575
		========	========

Deferred income represents funding received in advance of the provision of the related services. All deferred income held at the end of the previous financial year has been recognised within the current financial year.

15. CREDITORS: amounts falling due after one year

	2021	2020
Bank loans amounts falling due:	£’000	£’000
- within two to five years	-	261
- over five years	-	2,333
	---------------	---------------
	-	2,594
	=======	=======

A decision was made by the Board of Family Action to acquire a new property for the Head Office of the Charity. The property was part funded with a mortgage from Charity Bank. The purchase was completed on the 15[th] of March 2020 at a cost of £3.9m.

Amounts due to Charity Bank are disclosed as bank loans in Notes 14 and 15. The loan is secured by fixed charge over the charity’s freehold and long leasehold properties. The loan is repayable by monthly instalment over 25 years. Interest is charged at 2.15% per annum above Bank of England Base rate. The loan was repaid in February 2021.

43

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

16.	UNRESTRICTED FUNDS AS AT MARCH	UNRESTRICTED FUNDS AS AT MARCH	2021
		Balance		Movement in Funds		Balance
		31 March	Incoming	Gains	Expenditure	31 March
		2020	Resources	and transfers		2021
		£’000	£’000	£’000	£’000	£’000
	General funds	2,378	1,778	551	(494)	4,213
	Fixed Assets fund	706		-	(44)	662
	Property Improvement fund	150		-	-	150
	Service Development Funds	294		75	(44)	325
	Staff Contingency	405		241	(98)	548
		-------------------	------------------	------------------	--------------------	-------------------
		3,933	1,778	867	(680)	5,898
		========	========	========	========	========

The general funds represent the free funds of the Charity, which are not designated for any particular purpose. The balance as at 31 March 2021 is: £ 4,213k (2020: £2,378k).

The fixed assets fund represents leasehold improvements of the Charity’s offices used for charitable activities. The balance as at 31 March 2021 is £662k (2020: £706k).

Property improvements fund is a designated fund set aside for the purchase of our Head Office. This is for cyclical repairs and maintenance of the Head Office property. The balance as at 31 March 2021 is £150k (2020:£150k).

Service developments fund has been set up to enable the Charity to invest in the development of new service models. This is essential for the future of the Charity and are designated, so excluded from free reserves. The Board approved expenditure for the 150[th] Anniversary, a balance of £131k was spent in 19/20. The Board also approved a sum of £75k towards Fundraising – individual giving project of which £26k is spent with the balance to be spent in 20/21. The balance as at 31 March 2021 is £325k (2020: £294k).

The staff contingency fund has been set up to enable the Charity to meet its contracted obligations where services experience staff absences due to sickness, redundancy or maternity for which additional funding is not available. The balance as at March 2021 is £548k (2020: £405k).

16.	UNRESTRICTED FUNDS AS AT MARCH	UNRESTRICTED FUNDS AS AT MARCH	2020
		Balance		Movement in Funds		Balance
		31 March	Incoming	Gains	Expenditure	31 March
		2019	Resources	and transfers		2020
		£’000	£’000	£’000	£’000	£’000
	General funds	1,960	1,227	(1,649)	840	2,378
	Fixed Assets fund	160		963	(417)	706
	Property Improvement fund	-	-	150	-	150
	Service Development Funds	444		7	(157)	294
	Staff Contingency	265		529	(389)	405
	Property fund	1,112		-	(1,112)	-
		-------------------	------------------	------------------	--------------------	-------------------
		3,941	1,227	-	(1,235)	3,933
		========	========	========	========	========

44

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

17.	RESTRICTED FUNDS AS AT	March 2021
		Balance	Movement in Funds			Balance
		31 March	Incoming	Gains/(losses) Expenditure		31 March
		2020	Resources	and transfers		2021
		£’000	£’000	£’000	£’000	£’000
	Operational services	8,748	36,404	(867)	(34,826)	9,459
		--------------------------------	----------------------------------	------------------------------	----------------------------------------	--------------------------------
	Other restricted funds:
	New Day	-	22	-	(23)	(1)
	Other Trust funds	88	2,625	-	(2,619)	94
	Nora Henry Trust	15	38	-	(42)	11
	Other Trust funds	323	201	-	(221)	303
	Edith & W Morgan Mental
	Health	303	-	51	-	354
	Other Trust funds	167	-	28	-	195
		-----------------------------	------------------------------	------------------------------	-----------------------------	-----------------------------
		896	2,886	79	(2,905)	956
		-----------------------------	-------------------------------	------------------------------	-----------------------------	-----------------------------
	Restricted income funds	9,644	39,290	(788)	(37,731)	10,415
		------------------------------	--------------------------------	-----------------------------	--------------------------------	------------------------------
	Pension scheme reserve	(5,458)	-	(8,891)	378	(13,971)
		------------------------------------	---------------------------------	--------------------------------	---------------------------------	------------------------------------
	Total restricted funds
	including pension scheme	4,186	39,290	(9,679)	(37,353)	(3,556)
	reserve
		===========	===========	===========	============	=========

Restricted funds comprise two main elements:

1. The unexpended income from Operational Services of £9,459k as at 31 March 2021 (2020: £8,748k) These restricted funds represent funded projects and services run by Family Action. The balance consists mainly of start-up funding on new projects not yet spent and funding to be carried forward as agreed with individual funders. It also includes an exceptional item of the restricted property fund for Torriano Mews (the former head office of PAC-UK when it was a separate charity).

2. A clear agreement for the treatment of the net sale proceeds of Torriano Mews was included in the 2018 merger agreement between PAC-UK and Family Action namely:

3. a. repay Family Action for paying off the Lloyds mortgage on Torriano Mews (paid off by Family Action in 2018).

4. b. acquire a property to serve as a head office and London service delivery centre for both Family Action and PAC-UK (upfront deposit of £1m paid by the charity to acquire the current head office at 34 Wharf Road in March 2019 in addition to Charity Bank Mortgage of £2.72m)

   • Following the sale of Torriano Mews in February 2021, the charity applied the net sale proceeds as per the merger agreement resulting in the transfer of £867k from the restricted operational services to unrestricted funds. There is a balance of £358k carried forward in the restricted operational services to support the continuation and delivery of PAC-UK’s therapeutic services.

5. Family Action administers endowed and non-endowed trust funds. It distributes this income in the form of grants to individuals. The unexpended income from the funds is carried forward under its restricted purpose. This amounts to £956k as at March 2021 (of which £549k is held as investment in our portfolio) compared with £896k in 2020 (£470k in 2020 held as investment). Sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions imposed.

45

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

17.	RESTRICTED FUNDS AS AT	March 2020
		Balance		Movement in Funds		Balance
		31 March	Incoming	Gains/(losses) Expenditure		31 March
		2019	Resources	and transfers		2020
		£’000	£’000	£’000	£’000	£’000
	Operational services	7,395	35,694	-	(34,341)	8,748
		--------------------------------	----------------------------------	------------------------------	----------------------------------------	--------------------------------
	Other restricted funds:
	New Day	13	-	-	(13)	-
	Other Trust funds	77	39	-	(28)	88
	Nora Henry Trust	22	55	-	(62)	15
	Other Trust funds	386	278	-	(341)	323
	Edith & W Morgan Mental
	Health	340	-	(37)	-	303
	Other Trust funds	204	-	(37)	-	167
		-----------------------------	------------------------------	------------------------------	-----------------------------	-----------------------------
		1,042	372	(74)	(444)	896
		-----------------------------	-------------------------------	------------------------------	-----------------------------	-----------------------------
	Restricted income funds	8,437	36,066	(74)	(34,785)	9,644
		------------------------------	--------------------------------	-----------------------------	--------------------------------	------------------------------
	Pension scheme reserve	(7,313)	-	1,570	285	(5,458)
		------------------------------------	---------------------------------	--------------------------------	---------------------------------	------------------------------------
	Total restricted funds
	including pension scheme	1,124	36,066	1,496	(34,500)	4,186
	reserve
		===========	===========	===========	============	=========

46

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

18.	ENDOWMENT FUNDS AS AT	MARCH 2021
		Charity	Balance	Movement in Funds		Balance
		Reg.	31 March	Additions	Expenditure	31 March
					and Unrealised
		Number	2020		Gains/(losses)	2021
	Permanent Endowments		£’000	£’000	£’000	£’000
	Caterham Whyteleafe Trust	272724	657	-	111	768
	Eleanor Ponsonby Trust	275060	1,053	-	178	1,231
	FWA Greater London Relief			-
	in Need Charity	1006487	757	-	128	885
	FWA National Relief in Need	231205	729	-	123	852
	FWA Relief in Need Charity			-
	for the Aged	237118	879	-	149	1,028
	FWA Relief in Sickness Charity	264713	330	-	56	386
	Women’s Holiday Fund	207455	844	-	143	987
	Metropolitan Visiting and			-
	Relief Association	251586	333	-	57	390
	Queen Adelaide Fund	207228	238	-	40	278
	Bishop Andrews Charity	205288	110	-	19	129
	Other funds (balances < £100,000)		383	-	66	449
			--------------------------	---------------------------	--------------------------	--------------------------
			6,312	-	1,070	7,382
			--------------------------	--------------------------	---------------------------	--------------------------
	Expendable endowments
	Nora Henry Trust	313949	1,547	-	262	1,809
	Fenton Trust	247552	558	-	94	652
	Lamming Will Trust	216257	175	-	29	204
	Alfred de Rothschild Trust	202125	281	-	47	328
	Other funds (balances < £100,000)		117	-	21	138
			--------------------------	--------------------------	---------------------------	--------------------------
			2,678	-	453	3,131
			--------------------------------------------	---------------------------	--------------------------	--------------------------------------------
	Total endowment funds		8,990	-	1,523	10,513
			============	============	============	============

Family Action manages trust funds with or without endowments. These are permanent and expendable endowment trust funds. The general policy is not to spend the fund’s capital even if permitted to do so within the terms of the trust deed. The capital is invested and income is disbursed. The trust deed specifies the purpose for which the income can be used.

The market value of the invested funds as at March 2021 is £11,061k compared with £9,459k in 2020. The increase in market value, which are unrealised gains, amounts to £1,602k compared with a decrease in value in 2020 of £1,146k.

Family Action Trustees have established a grant allocation team to approve the disbursal of grants in line with the terms of the trusts. All unexpended income is held as restricted funds for the purpose specified.

Family Action presents investment management fees on endowment funds separately on the face of the SOFA but as these are linked to the movements in the value of the underlying investments, the costs and unrealised gains and losses reported in the year are combined under one column.

47

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

18.	ENDOWMENT FUNDS AS AT	MARCH 2020
		Charity	Balance	Movement in Funds		Balance
		Reg.	31 March	Additions	Expenditure	31 March
					and Unrealised
		Number	2019		Gains/(losses)	2020
	Permanent Endowments		£’000	£’000	£’000	£’000
	Caterham Whyteleafe Trust	272724	736	-	(79)	657
	Eleanor Ponsonby Trust	275060	1,180	-	(127)	1,053
	FWA Greater London Relief			-
	in Need Charity	1006487	440	-	317	757
	FWA National Relief in Need	231205	435	-	294	729
	FWA Relief in Need Charity
	for the Aged	237118	986	-	(107)	879
	FWA Relief in Sickness Charity	264713	370	-	(40)	330
	Limpsfield Convalescence Fund	208536	161	-	(161)	0
	Women’s Holiday Fund	207455	946	-	(102)	844
	Green Bequest Fund	252152	124	-	(124)	-
	Metropolitan Visiting and
	Relief Association	251586	373	-	(40)	333
	Queen Adelaide Fund	207228	267	-	(29)	238
	Bishop Andrews Charity	205288	123	-	(13)	110
	Cumberland Benevolent Fund	231206	120	-	(120)	0
	Other funds (balances < £100,000)		531	-	(149)	383
			--------------------------	---------------------------	--------------------------	--------------------------
			6,792	-	(480)	6,312
			--------------------------	--------------------------	---------------------------	--------------------------
	Expendable endowments
	Nora Henry Trust	313949	1,734	-	(187)	1,547
	British War Refugees Fund	251578	192	-	(192)	-
	Fenton Trust	247552	626	-	(68)	558
	Lamming Will Trust	216257	196	-	(21)	175
	Alfred de Rothschild Trust	202025	315	-	(34)	281
	Other funds (balances < £100,000)		207	-	(90)	117
			--------------------------	--------------------------	---------------------------	--------------------------
			3,270	-	(592)	2,678
			--------------------------------------------	---------------------------	--------------------------	--------------------------------------------
	Total endowment funds		10,062	-	(1,072)	8,990
			============	============	============	============

Family Action manages trust funds with or without endowments. These are permanent and expendable endowment trust funds. The general policy is not to spend the fund’s capital even if permitted to do so within the terms of the trust deed. The capital is invested and income is disbursed. The trust deed specifies the purpose for which the income can be used.

The market value of the invested funds as at March 2020 is £9,459k compared with £10,605k in 2019. The decrease in market value, which are unrealised losses, amounts to £1,146k compared with a decrease in value in 2019 of £59k.

Family Action Trustees have established a grant allocation team to approve the disbursal of grants in line with the terms of the trusts. All unexpended income is held as restricted funds for the purpose specified.

Family Action presents investment management fees on endowment funds separately on the face of the SOFA but as these are linked to the movements in the value of the underlying investments, the costs and unrealised gains and losses reported in the year are combined under one column.

48

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

19. POST BALANCE SHEET EVENTS

After the balance sheet date, Family Action entered into a number of business arrangements with organisations as follows:

Portsmouth Abuse & Rape Counselling Service (PARCS)

On the 1st of April 2021, Family Action agreed to take over the ownership, control and management of PARCS Company No (3643599) and Charity No (1079950). The transactions will be accounted for in accordance with acquisition accounting principles.

As the transfer of control obtained by Family Action was for nil consideration, the fair value of the net assets acquired will be recognised as income in the next financial year on the dates the assets and liabilities of the individual businesses were transferred to Family Action.

The book value of the acquired assets and liabilities as at the date of acquisition are summarised as follows:

	Fixed Assets	Current Assets	Current	Book value at
			Liabilities	the date of
				acquisition
	£’000	£’000	£’000	£’000
Portsmouth Abuse & Rape
Counselling Service (PARCS)	327	237	(342)	222
	---------------	---------------	--------------	---------------
	327	237	(342)	222
	=======	=======	=======	=======

A review of the fair value of the acquired assets and liabilities as at the date of acquisition will be undertaken and incorporated in the 2022 Accounts. Included in the above were cash balances of £197k. Also included in current liabilities is a balance of £181k owed to Family Action as a result of Family Action paying off mortgage to Charity bank on 31 March 2021.

49

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS AS AT 31 MARCH 2021

	Unrestricted	Restricted	Endowment	Total
	Funds	Funds	Funds	Funds
	£’000	£’000	£’000	£’000
Fund balances at 31 March 2021
Are represented by:
Tangible fixed assets	4,587	-	-	4,587
Investments	-	548	10,513	11,061
Current assets	1,820	11,902	-	13,722
Current liabilities	(509)	(2,035)	-	(2,544)
Pension scheme deficit	-	(13,971)	-	(13,971)
	-----------	-------------	--------------	---------------
Total net assets	5,898	(3,556)	10,513	12,855
	=======	======	=======	=======
Unrealised gains included above:
Investment assets		(136)	1,007	871
		----------	-------------	---------------
Total unrealised gains at
31 March 2021		(136)	1,007	871
		====	======	=======

ANALYSIS OF NET ASSETS BETWEEN FUNDS AS AT 31 MARCH 2020

	Unrestricted	Restricted	Endowment	Total
	Funds	Funds	Funds	Funds
	£’000	£’000	£’000	£’000
Fund balances at 31 March 2020
Are represented by:
Tangible fixed assets	6,623	-	-	6,623
Investments	-	469	8,990	9,459
Current assets	578	12,075	-	12,653
Current liabilities	(3,268)	(307)	-	(3,575)
Long term liabilities	-	(2,593)	-	(2,593)
Pension scheme deficit	-	(5,458)	-	(5,458)
	-----------	-------------	--------------	---------------
Total net assets	3,933	4,186	8,990	17,109
	=======	======	=======	=======
Unrealised gains included above:
Investment assets		(42)	(799)	(841)
		----------	-------------	---------------
Total unrealised gains at
31 March 2020		(42)	(799)	(841)
		====	======	=======

50

FAMILY ACTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

21. LEASING COMMITMENTS

At 31 March 2021 the charitable company had future minimum rentals payable under non-cancellable operating leases as detailed below:

leases as detailed below:
	2021	2021	2020	2020
	Land and	Other	Land and	Other
	Buildings		Buildings
	£’000	£’000	£’000	£’000
Minimum lease payments due within:
- one year	440	44	416	55
- within two to five years	489	55	518	108
- over five years	18	-	54	-
	-----------	----------	-----------	----------
	947	99	988	163
	=====	=====	=====	=====

The Charity carefully manages its lease obligations to ensure that the lease terms closely match the length of service contracts and for non-service related properties that appropriate break clauses are in place to safeguard the Charity’s resources.

22. CONDUIT FUNDS

Family Action manages and disburses funds on behalf of a number of organisations. These are held in separate bank accounts and subject to Family Action’s internal controls and procedures to ensure that these assets are safeguarded. The value of these funds at 31 March 2021 is stated below:

	Balance			Balance
	31 March	Incoming	Outgoing	31 March
	2020	Funds	Funds	2021
	£’000	£’000	£’000	£’000
Motor Insurance Bureau	65	-	(19)	46
Deputy and Trustee Services	36	-	(1)	35
CAMHS Alliance Fundholder	1,074	2,410	(2,135)	1,349
	----------	----------------	-----------------	----------
	1,175	2,410	(2,155)	1,430
	=====	=======	========	=====

Motor Insurance Bureau: Family Action acts as custodian trustee for minors in respect of awards made by the Motor Insurance Bureau. These funds are paid out to the individual benefactors on reaching the age of maturity.

Deputy and Trustee Services: The Head of Deputy and Trustee Services acts as deputy for people who do not have the capacity to manage their own financial affairs and undertakes the day to day management of their financial affairs in line with guidelines provided by the Office of the Public Guardian. During the year a majority of the clients were moved with orders from the court to firms of solicitors with only the accounts of deceased clients left. These will be resolved by the courts with balance on the accounts paid out accordingly.

CAMHS Alliance Fund Holder: Family Action are the Fund holder for City & Hackney Child and Adolescent Mental Health Service (CAMHS) Alliance. Family Action is responsible for payment of invoices on behalf of the alliance to various service providers commissioned by the NHS City & Hackney CCG.

51

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

FAMILY ACTION

23. RELATED PARTY TRANSACTIONS

David Holmes, the CEO of Family Action, is the chair of Children England, a membership organisation to which Family Action is a member with £3,750 (2020: £3,000) annual subscription.

In April 2020, Brewin Dolphin completed the acquisition of Epoch Wealth Management, who were the adviser and investment managers for the Family Action investment portfolio. Siobhan Boylan, a trustee (Treasurer) on the Board of Family Action joined Brewin Dolphin as the Finance Director in March 2020. Prior to the acquisition, Siobhan rescinded her membership of the Investment Committee in line with our Governance Policy and Procedure.

Dez Holmes, a trustee of Family Action, is also a member of the key management personnel of The Dartington Hall Trust which run Research in Practise, a membership organisation providing online resources supporting evidenceinformed practice with children and families, young people and adults. A valuable professional online resource for all of Family Action staff. During the year, Family Action has an active membership subscription at a cost of £10,370 (2020: £9,750) per annum. This transaction was carried out at an arm’s length basis.

Donations made by Trustees totalled £5.6k as at 31 March 2021 (2020: £10k). There are no other related party transactions to report.

24. CONTINGENT ASSET:

Family Action was notified of a potential legacy income. There is no executor as the law firm that drafted the will is no longer in business. We have appointed a lawyer to carry out all necessary due diligence. We are in the process of obtaining a copy of the original registered will and grant of probate. The asset of the potential legacy is a one bed property. We have not been able to establish the Charity’s entitlement and quantify the amount for accounting purposes. Thus, we have a contingent asset with a nil value. We have not been able to recognise this asset in the accounts as there is insufficient certainty as to the amount and the charity’s right to the income. It does not meet the criteria for income recognition.

52