MISSION (fjllid tQ selve MISSION CARE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 Registered Charity Nurnber.. 284967
MISSION iolled loserve MISSION CARE ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 Contents Page Fleferen and Administrative Information Board Report Independent Auditorfs Report Consolidated Statement of Financial Activities Statement of Financial Activities Consolidated Balance Sheet Charity Balance Sheel Consolidated Cash Flow Statement Notes to the Financial Statements 10 12 13 14 15-24
MISSION CARE REFERENCE AND ADMINISTRATIVE INFORMATION Chairman Mr G Dean Corporate Trustee (previously "Custodian Trustee") Mission Care Management Limtted Directors of Mission Care Management Limited Mr G Dean Mr M Jones Mr P Yeulett Ms A Honeysett (appointed on 21 Jan 20211 Executive Director Mr D Evans Auditor Jacob Cavenagh & Skeet S Robin Hood Lane Sutton Surrey SM1 2SW Solicitors Anlhony Collins Solicitors LLP 134 Edmund Street Bimiingham B3 2ES Bankers National Westminster Bank plc 201 Tooley Street London SE1 2UE Head Office SLtite 4, 7 High Street Chislehurst Kent BR7 SAB Charity Registration Number 284967
MISSION CARE BOARD REPORT The Board of the Corporate Truslee of Mission Care has pleasu in submitttng the Annual Report and Financial Statements for the year ended 31 March 2021 which have been prepared in accordance with Charities Act 2011, the Charities, Statement of Recommended Practice {Charities SORP {FRS 102)) and Financial Reporting Standard 102 IFRS 1021. Objects and activities Mission Care was founded in 1904 as the Bermondsey Medical Mission. It is a charity operating in South East London. Mission Care aims to advance the Christian faith through the relief of sickness and poverty and through care and support of people with disabilities and elderly people, principally by the operation of a number of care homes, both nursing and residential. Structure, governance and management Mission Care is an unincorporated associakn.on which is governed by a corporate trustee, Mission Care Management Limited (Company Registration Number 3732148). The key management personnel ofthe charity a considered lo be the Senior Management Team. This team is comprised of the Chief Executive {Mr D Evans), the Clinical Director (Mr R Manuell, the Pastoral Director (Miss F Oxboffow) and the Finance Director {Mrs H Fan). They are in charge of directing, controlling. running and operating the charity on a day to day basis. The Trustee Board (the Directors of the Corporate Trustee) give of their time freely and none of the Trustee Board received any remuneration in the year. The pay of senior staff and all staff at Mission Care is reviewed annually 2nd is normally incTe8sed in accordance with average earnings. Pay awards are based on small incremental percentage increases in arLordance with good financial stewardship, and we informally benchmark our salaries in the market from time to time. Pn)cedU$ forinducting and Iraining Training for the directors of the Corporate Trustee is offered and carried out as required and covers a range of issues including governance and inspections of the homes. A full, independent governance review has been undertaken on behalf of Mission Care. The outcome was very positive with some helpful recommendations to be implemented, including governance Iraining for trustees and senior managers. Risk The Board continues to monitor and consider the major risks to which the charity is exposed and is satisfied that systems are in place lo monitor and minimise them. At present we have identified the risks posed to the charity as follows.. (a) on-going funding of the delivery of care both within and outside the London Borough of Bromley.. (b) satisfactory and positive inspections by CQC of our services., and Ic} the cost of and involvement in the management of a significant number of paid staff in our employment. The risks in relation to the on-going funding of the delivery care are sector wide and drNen largely by central and local Government policy. However. Mission Care manages the risk by ensuring regular communication with their principal local authority and CCG commissioners in respect of fee levels. There is a strong track record of Mission Care actively and positively negotiating with the local authority in securing the required levels of funding in recent years. Mission Care continues lo invest in improving and developing its clinical governance and audit processes to ensure that the level of care provided meets the demands of Ihe regulator. In FY2020121. Mission Care specifically engaged with an external legal advisor to carry oul an independent review on how the charity had managed the pandemic and whether any lessons learned. The review gave a full evaluation of each area of the home in term of decisions and actions took in responding to the challenges caused by the pandemic. It concluded with very positive feedback reflecting the charity's ability in coping with the situation. Page 1
MISSION CARE BOARD REPORT continued Mission Care is also committed to providing high quality training, and robust supervision and support for all staff. Since the ease of lockdown restrictions. members of the Senior Management Team and home management team have also resumed in carrying out the quality monitoring visits on a quarterly basis to ensure that the services standards are kept at a high level. Recruitment of quality staff, especially nurses, remains a significant challenge for the organisalion. Again. this is a sector-wide challenge with many thousands of care sector vacancies nationwide. The charity has started to develop care staff into the role of Assistant Practitioner to help alleviate this. This both offers good career progression for staff but also redUS the relian on nurses. Where there are inevitably, staff vacancies the charity has developed a strong relationship with a staffing agency lo provide consistent agency staff who have a good knowledge of the organisation and its working practices and Culture. The cost is managed through monthly review of agency booking records and rota management. Impact of Covid-19 and measures taken This year has been an extraordinarily challenging year for Mission Care. The coronavirus pandemic struck us in March 2020, and had a significant impact on the charity. Despite many changes and measures that were put in place to protect our residents in the homes, we sadly lost 20 residents in lolal due lo covid related death. Occupancy was affected by IO°/o on average which subsequently had a substantial impact on the results reported here. Throughout the pandemic, the health and wellbeing of the residents and staff had been the heart of the focus at the charity. The charity slrictty adhered to the government guidelines al all lime in all areas including infection control measures, testing and visitations. Furthermore, the charity had extended its existing policies to meet Ihe unprecedented demand of Ihe pandemic, as well as reviewing its policies regulady in respond lo the ever changing guidelines from the government. The Senior Management Team met weekly during the critical phase of the pandernic, and closely monitored all area8 of operations including staff attendance, visiting policy, admission policy. supply chain and financial forecasts and so on. Home managemenlteam and general management team also put in place robust control procedures and measurements over all areas to limit infection risks in the homes. Overall, staff attendance and staff morale remained positive during the pandemic. Most staff attended work consistently and worked very well, with some being outstanding. The commitrnent of the staff in general, and the manner in which they were supported by their managers played a huge part in the organisation being able lo deal with the pandemic. The charity was pleased lo be able to provide the staff with a financial reward lo thank them for their commitment during such a challenging time. Throughout the period of the pandemic, when relatives were unable to visit their loved ones in person in the homes, zoom video calls and phone ca51s were made available for all who wanted lo make use of them, and rnany relatives did so. The charity also engaged its pastoral care team as a support to Ihe care team within the homes, and offered regular face to face conversations with residents. The charity continued to make admissions throughout the pandemic. However, it maintained a very clear position with all relevant stakeholders ICCGS, local authorities, families etc) that all Mission Care homes would require a negative test result 48 hours before adrnission. in order to protect ils current residents and its slaff, as well as seeking to be open to admissions where possible. In September 2020, the charty had engaged with an independent legal advisor to conduct an exclusive internal review to reflect how the organisalion coped with the covid-19 pandemic. It was concluded that the charity had been well organised and reacted quickly to changing situations throughout the pandemic. Decision making appears to have been prompt and has been received well by the stakeholders. The charity had received very positive feedback from all stakeholders including relatives and local authorities. Page 2
MISSION CARE BOARD REPORT (continued) At the point of writing, the average occupancy across all homes have returned to above goo/o. This is a key achievement for the charity after the significant impact fell over the last 16 months. Although it is still below the occupancy pre-covid, the charity is moving steadily in the right d1ctIon in all areas. Financially, the charity received the Infection Control Grant funding from the central government and Covid support from various Local aulhorilies. These grants and funds were essential to support the charity in continuing with all the Infection Control measures and testing regimes that were put in place. Achlevements and performance Despite the continuing challenges faced at Mission Care throughout the year of pandemic, the charrty had maintained its good quality of care and service across all homes, with enhanced measurements on infection controls. All homes received CQC inspections beeen February and March 2021. All lour nursing homes received Good CQC ratings with confirmation that all areas oll infection prevention and controls are assured. Love Walk had some areas to impfove on during the last CQC inspection. These areas were immediately addressed and rectified by the home management team. Overall, all homes demonstrated a great level of stability and resilience lo changes during the year. This is a reflection of the hard work and dedication of every member of staff working at this organisation. This year Mission Care cared for an average of 211 residents on a daily basis. Average occupancy dropped by 10 % compared to the previous year due to the significant impact from the coronavirus pandemic. The consolidated EBITDA for the group was £926k, and net profit after considering depreciation and finance costs was £161 k. Included in the reported profit was a legacy of £450k received in August 2021 which was accountable for the financial year of 2020121. Consolidated income for the year was £13,742k {2020.' £13,255kl- This includes income from the core charity £13,588k, and the trading subsidiary £154k. Income from the core charity includes income from charitable activities, governrnenl funding relating to covid infection control and tests, plus legacy and donations. Income from the charrtable activity for the year was £12,462k, prior to the govemment Covid funding. This was down by £455k comparing to prior year (2020.. £13,030k) This was primarily as a result of the lower occupancy and lower average fee level due to reduction in self funders, as well as higher staffing ratio whilst maintaining the high standard of infection control procedure5. The financial impact was partially absorbed by Ihe funding provided by central and local government. Total government funding related lo Infection Control and Rapid Testing scheme was amounted to £596k. The charity had used these funds to cover expenditures associated wtth additional staff costs for Infection Controls. Rapid Testing and Safe Visiting requirements that were specifically identified under the government grant conditions. The main source of fee income for the charity remains the local government authorities. As at 31. March 2021, nearly 80/0 of our residents were funded by local authorities including Bromley, Lewisham. and Southwark, and some were funded directly by CCGS. The remaining were self-funded residents. The average number of self funders reduced by 27Yo compared to last year. This was mainty due to the national lockdown which affected the number of viewings received during the year. Consolidated expenditure for the year was £13,589k (2020.. £13.390k). This includes expenditure from both the core charity £13,403k and the trading subsidiary £186k. Page 3
MISSION CARE
BOARD REPORT (continued)
The expenditure excluding exceptional items for the core charity was £13,403k, £272k higher than prior year (2020: £13,131k). This was partially due to the increase in the National Living Wage which was up by 6.2%, and increased staff ratio to ensure compliance of infection control requirements. It was offset by the reduction of agency staff during the first two quarters as a result of the reduced occupancy level. Additionally, it was observed over the past couple of years that the residents coming into care homes generally have much higher needs compared to previous years. It was essential that this was reflected into the staffing ratio and enhanced home management team to maintain a good standard of care for the residents. On the other hand, cost savings achieved as a result of significant reduction on the usage of catering and domestic agency staff, as well as savings on agency costs due to increased number of shifts covered by permanent staff as opposed to agency staff.
Operationally, there had been many improvements made in the homes. This year the charity invested over £530k in capital projects. These projects had equipped the homes with high standard of health and safety controls, as well as new facilities provided to the residents. Included in the total capital expenditures, nearly £350k were invested in building improvements which covered the fire safety system upgrades, emergency lightings, kitchens, and flooring. Over £50k were invested in new mattresses, beds and medical equipment to enhance the services provided to service users. Moreover, a new gym was installed for Love Walk residents who were able to continue with their daily exercises during the lockdown. A special thank you goes to Wyfold Charitable Trust who made a generous donation to Love Walk for this particular project.
The charity commenced the planning phase of two business development projects at Love Walk and Willet House before the pandemic started, with the vision to provide high quality care to more people. However, the projects had been put on hold during the pandemic, but they remain one of the main objectives in the charity’s 5 year plan.
Financial review
Full details of the results for the year are shown in the financial statements.
Reserves Policy
Mission Care is very careful to designate or allocate funds it receives. Voluntary donations received from the general public and from supporters of Mission Care and any grants awarded by trusts and government agencies for equipment, services or building construction are designated or allocated wherever possible according to the wishes of the donor or grantor.
The free reserves of Mission Care have been utilised over the last few years to improve the quality of the charity’s buildings and to carry out various essential restructuring projects. It remains the intention of Mission Care to significantly build up the reserves over the next few years to both protect the organisation against any potential adverse trading conditions as well as to facilitate future improvements to the buildings. To this end every effort continues to be made in order to maximise income, carefully manage expenditure and control cash flow.
At the year end, the charity had consolidated reserves of £5,718k of which £395k were restricted. The charity had general reserves of £5,323k.
Investment policy
Over recent years the surpluses have been used to improve the homes infrastructure and environment.
As at 31[st] March 2021, other than balances held at Samaritan Fund and Love Walk restricted fund, there are no investments outside of cash balances held in regular bank accounts.
Principal Funding sources
The significant majority of Mission Care’s funding in recent years has been received from local authority contracts and, in particular, the contract with the London Borough of Bromley. The funding received is in respect of fees paid for care services provided. The NHS, through a number of CCGs, is also a significant source of funding, again by way of fees paid for care services provided.
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MISSION CARE BOARD REPORT {continuedl Mission Care Trading Ltd This subsidiary company has been included in the consolidated financial statements and was in an operating deficit at the year end. The company's activities include the running of a dementia friendly café and a charity shop. The costs have b partially provided by the charity in the form of an intercompany loan, The loan balance as al 315I March was £200k. After careful consideration on the probability of the repayment, the Board had taken the decision to provide against the loan. This was shown as the exceptional item in the accounts. The Board is in the prOsS of reviewing oplions available to minimise future losses of this entity, and an action plan will be put in place following the October 2021 board meeting. During the financial year 2020121. the café and the charity shop remain closed for majority part of the year dve to the national and local lockdowns al various stages. These had been reflected in the results reported here. Following the lifting of the lockdown restrictions, the charity shop reopened on 12th April and café reopened on 7 June2021. Public benetit When reviewing Mission Care's activities for the past year and in planning the objectives for future periods, the Board have taken into consideration the Charty Commission's guidance on public benefit. Mission Care is committed to ensuring that there is access to its services regardless of individuals. social standing or ability to pay. It does Ihis through maintaining strong relationships with relevant local authority and active marketing of its services in the wider community. Approximately 80 % of Mission Care's residents benefit from socially funded places that are offered under discounted block and spot contracts. Through its support of an international project Mission Care is able to help a partner organisation. Vuyiroli. (in India). It seeks to alleviate sickness and poverty in the cornmunity in Chennai, India. in which il works. As part of the care Mission Care provides, it is able to offer people opportunities lo explore and experience the Christian faith. Much of what il delivers Is well supported through its own Pastoral Team as well as partnerships with many local churches. Its international work has all been carried out in partnership with other organisalions who share a similar desire to advan the Christian faith. Plans for future periods Mission Care continues to focus on strengthening the core business of the charity and ensuring that rt is well placed to maintain and develop ils delivery of care services into the changing marketplace. As sel out in the charity's next five year strategic plan for financial year 2020-2025, the three overarching objectives are to Protect, Progress and Proclaim. Protect the organisation from financial and existential pressures in older to maintain the service that Mission Care provides in the communities in which it is placed. This is not a negative reflex. Rather, it is an honest acknowledgement of the very challenging nature of the sectors in which Mission Care operates, as a Christian charity providing care to vulnerable adults. The need to protect the organisation has always been apparent, and never more so than now. The global Covid 19 pandemic thal has had such a devastating impact on the care sector in the UK this year. It has demonstrated further the clear irnperalive to protect the work and best interests of care providers. Protecting the organisation will remain therefore a resolute aim as we seek to bring glory to God IhroLJgh the work, witness, and reputation of Mission Care. Progress the organisation both in temis of the quality of the service we provide. and the number of people for whom we care. This has been a consistent ambition throughout our history. Firstly. lo be committed to continuous improvement in the delivery of care and management of the organisation. Secondly, to seek to care for and reach more and more people each year. Page 5
MISSION CARE BOARD REPORT (continued) Proclaim the Lord Jesus Christ in all that we do. This is the very reason that Mission Care exists and always has been, since 1904. We primarily seek lo proclaim Jesus Christ through our commitment to the following:_ (a) good quality care for all residenls and stakeholders (bl fair and sound management and stewardship of our colleagues and resources. and {c) sharing of God's Word through the work and support of our pastoral team, and through the words and witness of Christian colleagues Id) a clear and principled resolve to maintain our evangelical Chrislian ethos for God's glory alone. Much progress has been made on these three core elements over the last few years and we expect this to continue in the period ahead. Apart from the material impact from Covid-19 pandemic that started at the end of the financial year, there were no other significant events during the year that had any financial effect. The trustee is grateful to all the Board Directors, to our Chief Executive and the Senior Management and Leadership Teams and their staff for their continuing dedication and commitment to the care of each of the vulnerable people entrusted to us. We are committed to developing our services al this time of considerable change and in this we seek God's guidance and would ask for the prayerful support of all our friends and colleagues. Statement of trustee responsibilities The trustee is responsible fof preparing the Council Report and the financial statements in accordance wrth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustee to prepare financial slalements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial Statements, the trustee is required to.. select suitable accounting policies and then apply them consistently.. make judgments and eslimales that are reasonable and prudent., stale whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in business. The trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assels of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ean almi 21 October 2021 Page 6
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF MISSION CARE Opinion We have audited the financial statements of Mission Care (the °ChariW') and its subsidiary (the group) for the year ended 31 March 2021 which comprise the consolidated and parent statement of financial aclivilies. the consolidated and parent balan sheels, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework Ihat 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 Praclicel. In our opinion. the financial statements.. give a true and fair view of the state of the group's and of the Charity's affairs as at 31 March 2021 and of the group's incoming resources and application of resources for the year then ended.. have been property prepared in accordance with United Kingdom Generally Accepted Accounting Practice., have been prepared in accordance with the requirements of the Charities Act 2011. Basis for oplnlon We conducted our audrt in accordance with International Standards on Auditing (UK) IISAS {UK)) and applicable law. Our responsibilities under those slandards are further described in the Auditor'5 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent Charity in accordance with the ethical requiremenls that are relevant lo 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 Ihat the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropTiale. Based on the work we have performed, we have not identified any malerial uncertainbes relating to events or conditions that. individually or collectively, may cast significant doubt on the Group's and Charity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concem are described in the relevant sections of Ihis report. Other infomiatlon The other infomiation comprises the information included in the annual report. including the trustees, report, olher than the financial statements and our audilorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otheNise explicitly stated in our report, we do not express any form of assuran conclusion thereon. Our responsibility is to read the other information and, in doing so, consrder whether the other infomiation is materially inconslstent with the financial statements or our knowledge obtained in the course of the aud(t, or otherwise appears to be materially misstated. If we identify such material inconsislencie5 or apparent material misstatements, we are required lo determine whetherthis gives rise to a material misslalement in thefinancial statements themselves. If, based on the work we have perfomed, 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. Page 7
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF MISSION CARE (continued) Matters on which are required to report by exception In the light of the knowledge and understanding of the Group and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report included wrthin the trustees, report. We have nothing to report in respect of the following matters in latiOn to which the Charities Act 2011 requires us to port to you if, in our opinion.. adequate and proper accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and relums.. or certain disclosures of trustees, remuneration specified by law are not made., or we have not reiVed all the information and explanations we require for our audit. Responsibilities of the trustee As explained more fully in the trustees, responsibilities statement, the trustee5 are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such inlernal control as they determine is ne$Sary to enable the preparation of financial statements that are free from malerial misstatement, whether due to fraud or error. In preparing the financial statements, the Iruslees are responsible for assessing the Group's and the Charity's ability to continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Group or Charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilitles for the audit of the financial statements We have beeri appointed as auditor under section 151 and report in accordance with the Act and relevanl regulations made or having effect Ihereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or etror, 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. Misslalements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-cornpliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misglatements in SpeCt 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 charity. we identified that the principal risks of non-complian with laws and regulations related to employment and breach of health & safety regulations and we considered Ihe 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 Charities Act 2011. Page 8
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF MISSION CARE lcontinuedl We assessed the susceptibility of the charity's financial slalements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management. considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related to.. management override of controls management bias in accounting estimates government assistance- furlough income In response to the risks identified we designed procedures which included. but were not limited lo.. identifying and testing journal entries evaluating the charity's internal controls reviewing Trustees meeting minutes challenging significant accounting estimates such as bad debt provisions testing the calculation of claims made under the Coronavirus Job Retention Scheme There are inherent limitations in the audit procedures described above. The more removed that laws and gulations are from financial Iransaclions. the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate COnalment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's websile at. www.frc.org.ukJaudilorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the Charity's and group's ITUStee, as a body, in accordance Part 4 ofthe Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we mighl stale to the Charity's and group's trustee those matters we are required to state to them in an auditor's report and for no other purpose. To the lullesl extent permitted by law, we do not accept or assume responsibility lo anyone other than the charity and group and their trustee as a body, for our audit work, for this report, or for Ihe opinions we have formed. Jacob Cavenagh & Skeet statutory Auditor Chartered Accountants 5 Robin Hood Lane Sutton Surrey SM12SW Jacob Cavenagh 8 el is elwible for appointmenl as auditorof the chanly by virtue of Its elAbilItY forappointmenl as audilorof a comp8ny underseclion 1212 of Ihe CoMpanS Acl 2006 Page g
MISSION CARE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021 Notes Unrestricted Restricted Funds Funds Total Unrestricted Restricted 2021 Funds Funds Total 2020 Income from: Donations and legacies Other trading activities Investments Charitable activities Residential care fees Other income 465,253 41,607 2,202 10.000 475.253 41,607 2,202 22,789 193,896 6,057 22,789 193,896 6,057 12.522,676 103 596,484 13,119.160 13,030,074 103 898 13.030.074 Total income 13 135636 606484 13 742 120 1 255 147 13255 147 Expenditure on: Raising funds Charitable activities Residential care costs 167,975 167,975 225.190 225, 190 127483 673 183 13421 517 1 081 773 83 009 13 164 782 Total expenditure 12 916 309 83 009 13 389 972 Gainslllossesl on investment assets Net incomellexpenditurel 228,059 { 66.772} 161,287 { 53.1881 {82,5041 1135.6921 Transfers beeen funds 1 75221 Net movement in funds 74 2941 161287 53 1881 IL&ogi 135 692 Reconciliation of funds Fund$ brought forward 5 087 238 469 527 5 556 765 5 140 426 552 L1 5 692 457 Funds carried forward Page 10
MISSION CARE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021 Notes Unrestricted Restricted Funds Funds Total Unrestricted Restricted 2021 Funds Funds Total 2020 Income from: Donations and legacies Investments Charitable activities Residential care fees Other income 465,253 2,202 10.000 475,253 2,202 22,789 6.057 22.789 6,057 12.462,197 51889 596,484 13,058,681 13.030,074 13,030,074 Total income 12 981 541 06 484 13 588 025 13 061 251 13061 251 Expenditure on". Charitable activities Residential care costs Other expenditure 12.729.690 200 507 673,183 13,402.873 200 507 13,048,278 83.009 13.131,287 12b Total expenditure 12930 197 673 183 13603380 13 83 009 13 131287 Gainsl{lossesl on investment assets 8732 1 Net incomellexpenditurel 60,076 166.7721 1 6,6961 11.601 182,5041 1 70,9031 Transfers betsveen funds Net movement in funds Reconcillatlon of funds Funds brought fotW8rd 5 194 923 469 527 5 664 450 5 183322 552 03 5 735 353 Funds carried fobward Page11
MISSION CARE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Fixed assets Tangible fixed assets Investment assets 10a 11 9,749,527 9,837,545 9,810,983 9,890,342 Current assetg Stocks Debtors Cash at bank and in hand 4,847 1,668,228 1905 038 3.578,113 8.087 1,963,044 886 521 2.857,652 12a Creditors: amounts falling due within one year 13a 1678 238 1436 526 Net current assets 1 899 875 1421 126 Total assets less current liabilities 11.710,858 11.311,468 Creditors.. amounts falling due after more than one year 14a 5 9g2 8061 {5 754 703 Net assets Funds Unrestricted Restricled 15 16 5,322,819 395 233 5.087,238 469 527 The financial statements were approved by the Trustee on 21 October 2021 and signed on its behaK by.. rGDean Chairman Page 12
MISSION CARE BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Fixed assets Tangible fixed assets Inveslmellt assets 10b 11 9,701,179 9,778,945 52 798 9.831,743 9,762.636 Current assets Stocks Debtors Cash at bank and in hand 4.447 1,662,336 1885 203 3,551,986 7,687 2,124,323 863 543 2,995,553 12b Credltors: amounts falling due within one year 13b 1664 062 1408 143 Net current assets 1887 924 1587410 Total assets less current liabiltties 11,650,560 11,419,153 Creditors.. amounts falling due after rn0 than one year 14b (5 992 8061 5 754 703 Net assets Funds Unrestricted Restricted 5,262,521 395 233 5.194,923 469 527 16 The financial statements were approved by the Trustee on 21 October 2021 and signed on its behalf by.. Chairman Page 13
MISSION CARE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Cash flows from operating activities (see note {a) below) 1,464.841 {238,353) Cash flows from investing activities Interest receivable Interest paid Payments to acquire tangible fixed assets Net cash (used inl investing activities 2,202 1150.711) 535 041 683 550 6,057 {184,810) 789 741 Cash flovts from financing activities Loans repaid Cash inflows from new borrowlng Payments to reduce finance lease liabilTties Cash provided byl(used inl financing adivilies 19) 250,000 (186,177) 237 226 193715 Net cash inflowl(outflowl 1.018,517 (1.221,809) Cash and cash equivalents at 1 April 2020 886 521 2 108330 Cash and cash equivalents at 31 March 2021 la) Reconciliation of net income to net cash flow from operating activities Net income1{expenditu} Inleresl receivable Interest paid Depreciatio (Gains)Ilosses on investments Decreasellincreasel in debtors Increase in creditors Decrease in stock Net cash provided byl(used in) 0ratIng activities 161,287 2.202) 150.711 623,059 8,659> 294,816 242,589 { 135,6921 6.0571 184,810 610,128 867 (910,559) 18,150 (b) Analysis of changes In net debt At 1 April 2020 Cash flows Non-cash changes At 31 March 2021 Cash Loans falling due within one year Loans falling due after more than one year Finance lease obligations Total 886,521 1.018,517 (193,906) 1249,981) 1,905,038 1202,0891 241,798 15,744,165) 22 317 (241,798) {5.985,963) Page 14
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES Accounting conventlon The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with applicable accounting standards, Charities Statement of Recommended Practice (Charities SORP IFRS 102)) and Financial Reporting Standard 102 {FRS 102) and the Charities Act 2011. Mission Care is a public benefit entity and an unincorporated charity with its principal address at Suite 4. 7 High St, Chistlehurst, Kent, BR7 SAB. The financial statements are the consolidated position of Mission Care and its subsidiary company Mission Care Trading Ltd. The financial statements have been prepared in pounds and figures have been rounded to the nearest pound. Going concern The trustee has prepared budgets and forecasts which support the continuing financial perfomance of the charity. Tangible fixed assets Fixed a55ets are depreciated on a straight line basis at rates dependent on their expected lives. Depreciation rates commencing from the date of first use are as follows.. Freehold nursing homes Motor vehicles Computer equipment Fixed plant Office equipment and fumiture 2% ofcost 250 of cost 330/0 of cost 10_330/0 of cost 25°/D of cost Fixed asset investments Investments are slated at market value. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals during the year. Fund accounting General funds are unrestricled funds which are available for use at the discretion of the Irustee in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unreslricled funds that have been set aside by the trustee for particular purposes. The aim and use of each designated fund is sel out in the notes to the finanaal statements. Restricted funds are funds which are lo be used in accordan wilh specific restrictions imposed by the donor or which have been raised by the charty for specific purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Page 15
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 continued ACCOUNTING POLICIES Icontinuedl Income All income is accounted for on an accruals basis except for voluntary income which is accounled for when received. Gifts in kind received in the shop are recognised when sold. Gifts in kind are valued at estimated open market value at the date of the gift in the case of assets for retention or consumption. Job Retention Scherne government grant income For JRS grant income, the income is recognised in the period to which the underlying furloughed slaff costs relate lo. Taxation status Mission Care is not svbjecl to corporation tax and is not registered for VAT. Fund ralsing Mission Care does not engage in any professional fund raising activity. Therefore, no fund raising costs are identified in the Statement of Financial Aclivilies. Support Centre costs are allocated between governance costs of administering the charity and charitable expenditure in support of the nursing homes. These costs are allocated on the basis of time spent and resources experKled. Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to a category. Governance Costs Govemance costs are those costs associated with meeting the Constitutional and statutory quiremenls of the charty and include auditors, fees and costs linked to the strategic management of the chaiity. These have been allocated directly to charitable expenditure. Financial instruments The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Debtors Other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. Cash at bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturty of three months or less fiom the date of opening of the deposit. Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Credrtors and provisions are recognised at their settlement amount. Stocks Catering stocks are included at cost. Page 16
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 conlinued ACCOUNTING POLICIES (continued) Pension scherne Mission Care contributes to a number of defined contribulon pension schemes. The assets of the schemes are held separately from the charity in independenlly administered funds. Contributions are accounted for as they fall due, Misslon Care also contributes to one defined benefit pension scheme. This is a multi*mployer scheme where Mission Care cannot idenb'fy its share of the assets and liabilities of the scheme on a reasonable and consistent basis and therefore, as required by FRS102. account8 for the scheme as if il were a defilled contribution scheme. The charity's contributions are charged in the period to which the salaries they relale are payable. DONATIONS AND LEGACIES 2021 2020 Donations Legacies 25,253 450.000 475,253 14,191 8,598 22,789 OTHER TRADING ACTIVITIES 2021 2020 Café Charity shop 22,366 19,241 41.607 102.250 91,646 193,896 INVESTMETrrr INCOME 2021 2020 Income from listed investments Interest on cash deposits 1,867 335 2,202 1,749 4,308 6,057 RAISING FUNDS 2021 2020 Café Charty shop 91.767 76,208 167,975 131.624 93.566 225,190 CHARITABLE ACnVITIES Direct Costs Support Costs 2021 2020 Staff costs Depreciation Other 9.390,196 623,059 2,265,637 12,278,892 g83,195 10.373,391 623,059 2.425,067 13.421,517 10.032,987 610,129 2,521.666 13,164,782 159,430 1.142,625 Page 17
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 continued SUPPORT COSTS 2021 2020 Governance costs (note 8) Staff costs 159.430 983,195 1,142,625 67,124 1,052,175 1,119,299 GOVERNANCE COSTS 2021 2020 Legal costs Fees paid to auditors Audit fee Other fees 135,410 44,464 13,500 1,400 12,960 5,436 4,264 67,124 Other 159,430 EMPLOYMENT COSTS 2021 2020 Gross salaries Employer's National Insurance Employer's Pension contributions 1-1 care agency charges Other agency charges 6,288,637 556,172 149,317 1,378,448 2 100841 6,019,253 517,896 135.889 1,079,072 2 412 552 The average number of staff efflployed during the year was: 2021 266 23 2020 250 24 Residential homes Support Centre Charity Shop Cafe Employees earning over £60,000.. 2021 2020 £60,000- £70,000 £70,000- £80.000 £180,000- £190.000 1-1 care agency oharges are reimbursed by the local authorities or CCGS Other agency charges are incurred when staff are required at the homes at short notice to cover sickness or holiday periods. No expenses were reimbursed or remuneration paid to the trustee or the directors of the trustee during the year. Aggregate employee-benefits of key management personnel were £453,905 (2020.. £463,470). There were no termination payments in either year. Page 18
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 continued 10a TANGIBLE FIXED ASSETS GROUP Freehold Property Plant and Machinery Motor Vehicles Total Cost At 1 April 2020 Additions Disposals At 31 March 2021 13.179,254 4,313.632 535.041 44,413 17.537.299 535.041 13.179,254 4,848,673 44,413 18,072,340 Depreciation At 1 April 2020 Charge for the year Released on disposals At 31 March 2021 4,204,120 263,025 3.459,465 354.536 36.169 5.498 7,699,754 623,059 4,467,145 3,814,001 41,667 8,322.813 Net book value At 31 March 2021 8,712,109 1,034,672 2,746 9,749,527 At 31 March 2020 8.975,134 854,167 8,244 9,837.545 10b TANGIBLE FIXED ASSETS CHARITY FehOld Property Plant and Machinery Motor Vehicles Total Cost At 1 April 2020 Additions Disposals At 31 March 2021 13.179,254 4,101,195 531,221 44,413 17,324.862 531,221 13 179254 4.632 416 44.413 17,856,083 Depreciation At 1 April 2020 Charge for the year Released on disposals At 31 March 2021 4,204,120 263,025 3.305,628 340,464 36,169 5,498 7,545,917 608,987 4.467,145 3,646 092 41,667 8,154.904 Net book value At 31 March 2021 8.712,109 986.324 2.746 9.701,17g At 31 March 2020 8,975,134 795,567 8,244 9,778,945 Freehold properties include £678,750 relating to freehold land which is not being depciated and £95,555 of finance costs, (none of which was capitalised during the current year). Freehold properties with carrying values of £5,106,482 have been pledged as security for borrowings. Plant and Machinery with carrying value of £6,130 is held under finance leases. Page 19
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued) 11 INVESTMENTS Samarltan Fund Love Walk 2021 2020 GROUP Falr value At 1 April 2020 Unrealised gainlllossl Disposals Al 31 March 2021 42,183 8.732 10,614 (731 52,797 8.659 53.664 (867) 50,915 10.541 61,456 52,797 CHARITY Al 1 April 2020 & 31 March 2021 61.457 52,798 At 31 March 2021 61,457 52.798 2021 2020 UK Investments comprise: Common deposit and investmenl funds Investment in subsidiary 61,456 52,797 61.457 52,798 The investment in the subsidiary relates to Mission Care Trading Limited, company number 9337456. The charity owns 100 /0 of the ordinary share capital of this company. At 31 March 2021 the company had net assets of £57,865. In the year to 31 March 2021 the company had turnover of £41.607, government grants of £112,488 and expenses of £172,362. In addition. the intercompany loan of £200,507 was written off resulting in an operating profit of £167,984. The results of the subsidiary have been induded in the consolidated accounls. The activity of the company is the running of a café and charity shop5. 12a DEBTORS GROUP 2021 2020 Fees receivable Prepayments and accrued income 528,165 1,140,063 1.668,228 1,066.223 896,821 1.963,044 12b DEBTORS CHARITY 2021 2020 Fees receivable Owed from subsidiary Prepayments and accrued income 526.861 1.064,940 170,357 889,026 2,124,323 1.135,475 1,662,336 During the year the charity provided £200,507 against the loan that had been made to its trading subsidiary Mission Care Trading Ltd. Page 20
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued) 13a CREDITORS:Amounts falling due within one year GROUP 2021 2020 Bank loans Trade creditors Accruals Social security Other creditors Finance lease obligations 202,089 616,318 97,397 134.795 624,920 2,719 1,678,238 193,906 499,566 203,731 106,157 421,387 11,779 1,436,526 13b CREDITORS:Amounts falllng due within one year CHARITY 2021 2020 Bank loans Trade creditors Accruals Social security Other creditors Finance lease obligations 202,089 822,579 97.447 134,795 404,433 2,719 1,664,062 193,906 489,120 358,637 106,157 248,544 11,779 1,408.143 The bank loans are secured on the Elmwood and Greenhill properties. The bank loans are financial instruments measured at amortised cost. Interest of £150,71112020'. £172,254) was charged during the year. 14a CREDITORS.'Amounts falling due after more than one year GROUP 2021 2020 Bank loans Finance lease obligations 5.985,963 6,843 5.992.806 5.744.165 5,754,703 14b CREDITORS:Amounts falling due after MO than one year CHARITY 2021 2020 Bank loans Finance lease obligations (due between one and five years) 5,985,963 6,843 5,992,806 5,744,165 10,538 5.754,703 £4,993.96412020'.£4,915.1381 of the bank loans is repayable in more than five years. The main bank loans are repayable by 2043 and carry interest at 2.5 % over base rate. Page 21
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued 15 UNRESTRICTED FUNDS 2021 Balance at Income Expendlture Investment Balance at gains and 31 March transfers 2021 2020 General Fund Friends, Groups Samaritan Fund Cyclical Maintenance Redevelopment Fund Building Fund 4,639.822 17.824 14,061 251,510 131,158 32,863 13.135,636 112,915,309) 7,522 4,867.871 17.824 21,793 251,510 131,158 32,863 {1,000) 8.732 5,087,238 13,135,636 (12.916,309 16,254 5,322,819 2020 Balance at 1 Aprll 2019 Income Expenditure Investment Balance at gainsl 31 March (losses) 2020 General Fund Friends, Groups Samaritan Fund Cyclical Maintenance Redevelopment Fund 8uilding Fund 4.661.678 17.824 45,393 251,510 131,158 32,863 13.255.147 (13,305.763) 28,760 4,639.822 17,824 14.061 251,510 131,158 32,863 (1,2001 130,132} 5,140,426 13,255,147 {13.306.963) 11,3721 5,087,238 The Friends, Groups funds relates lo fvnds designaled forlhe use of volunteers linked to specific homes and is generally used for residents. activities. The Samaritan Fund is designated for allocalion to current orformer members of staff who have specrfic needs and is administered by a sub-committee. The Cyclical Maintenance Fund is designated to provide funding for specifi¢ and eXptIOnal maintenance requirements that arise from time to time. The Redevelopment and Building Funds are designated for the future building or other development needs of specific home5. 16 RESTRICTED FUNDS 2021 Balance at 1 April 2020 Income Expenditure Investment Balance at losses and 31 March Iransfers 2021 Love Walk Covid grants 469,527 10,000 596,484 (76,6991 1596,4841 (7,5951 395,233 469,527 606,484 673.183 7,595 395,233 Page 22
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued) 16 RESTRICTED FUNDS (continued) 2020 Balance at Income Expenditure Investment Balance at gains 31 March 2020 2019 Love Walk 552,031 {83.009} 505 469.527 552,031 183,0091 505 469,527 The Love Walk fund relates to gifts made for various specific aspects of residents well-being at Love Walk and will be expended once appropriate needs arise. The transfer of £7,522 from this fund to general funds represents the funds that were used to purchase fixed assets during the year. Covid grants were received from local authorities lo support the additional measures needed during the pandemic such as infeclion control, testing and additional staffing. 17 ANALYSIS OF NET ASSETS BEfwEEN FUNDS 2021 Unrestricted Restricted funds funds Total Fixed assets Nel current assels Long term liabilities 9.810,983 1,504,642 5.992,806 5,322,819 9,810,983 395,233 1,8g9,875 5.992,806 395,233 5,718,052 2020 Unrestricted Restricted funds funds Total Fixed assets Nel current liabilities Long term liabilities 9,890.342 951,599 5 754,703 5,087,238 9,890,342 469,527 1,421,126 5,754,703 469,527 5,556,765 18 LEASING COMMITMENTS The total future minlmum lease payments under non-cancellable operating leases are payable.. 2021 2020 Within one year Between two and five years 79,192 256,807 51,836 83,272 Page 23
MISSION CARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued) 19 PENSIONS Mission Care operates a number of pension schemes on behalf of ils employees. The Federated Flexiplan No. 1 Pension Scheme and the NHS Pension scheme are both mulli-employer schemes where the assets and liabilities of the scheme applicable to each employer are not separately identified. The assets of the schemes are held separately from those of the charity in independently administered funds. NHS Pension scheme This Scheme is an unfunded, defined benefit scheme that covers NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of Slate. in England and Wales. The scheme is not designed lo be run in a way that would enable NHS bodies to idenb'fy their share of the underlying scheme assets and liabilities. Therefore the scheme is accounted for as if it were a defined contribution scheme. The cost to Mission Care of participaling in the scheme is taken as the contributions payable to the scheme for the accounling period. A valuation of the scheme liability is carried out annually by the scheme actuary as at the end of the reporting period. This utilises an actuarial assessment for the previous period in conjunction with updated membership and financial data for the current reporting period. and are accepted as providing SLJitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2017 is based on valuation data as 31 March 2016, updated to 31 March 2017 with summary global member and accounting data. The latest assessment of the liabilities of the scheme is contained in the scheme actuary report, which forms part of the annual NHS Pension Scheme (England and Wales) Pension Accounts, published annually. The accounts can be viewed on the NHS Pensions website. 20 RELATED PARTY TRANSACTIONS During the year, the charity paid £14,427 {2020'. £12,428) to Pilgrim Law Ltd. Mark Jones, wife is a director and shareholder of Pilgrim Law Ltd. Page 24