## SUPPORTING PREGNANCY CHOICES Trusting Women to Decide Our annual review for 2020-21
British Pregnancy Advisory Service Annual review & financial statements for the year ended 31 March 2021
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## Messages from our service users and supporters
## “ “ “
I was worried about attending my appointment but I was made to feel very comfortable and was not judged. ”
The entire team Staff were friendly have been warm, and non judgmental, supportive and they understood wonderfully caring, my reasons and you have made a clearly explained difficult time much the process. easier. ” ”
Staff were friendly and non judgmental, they understood my reasons and clearly explained the process.
## “ “ “
Felt really comfortable and looked after, no issue.
Extremely calming and reassuring felt at ease from the first point of contact.
Very friendly, comfortable and and reassuring felt informative and looked after, at ease from the first understanding staff. no issue. point of contact. ” ” ”
## “ “ “
Very comfortable environment, felt at ease the whole time.
The operating and recovery team were amazing, thanks for making an awful event much easier.
Got referred by a friend, BPAS were brilliant, they understood and were polite.
” ” ”
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## Contents
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Messages from our service users and supporters 2
Our ambition, our mission 4
Message from our Chief Executive Officer, Clare Murphy 5
We are the UK’s leading reproductive independent healthcare charity 6
Introduction 7
Message from our Chair, Cathy Warwick DBE 7
Objectives & activities 2020-2021 9
Advocacy, policy & campaigning 9
Continuous improvement in abortion services 10
2020-21 activities 10
Modernising and transforming our business and technology 11
Make BPAS a centre for reproductive healthcare 13
Develop and deliver fertility services 13
Develop social value 13
Develop existing services to new clients and extra services to existing clients 13
Financial results 14
Policy on reserves 14
Risk management 14
Going concern 15
Structure, management & governance 16
Directors and Trustees 16
BPAS governance & management 17
Reference & administrative details 18
Auditor 18
Trustees’ responsibilities 19
Independent auditors report 20-23
Statement of financial activity 24
Balance sheet 25-26
Cash flow statement 27
Notes to the cash flow statement 28
Analysis of net debt 29
Notes to the financial statements 30-43
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## Our ambition:
A future where every woman can exercise reproductive autonomy and is empowered to make her own decisions about pregnancy.
Throughout this annual review of our work you will see what we do and how many people we support.
## Our mission:
To remove all barriers to reproductive choice while advocating for and delivering high quality, woman-centred reproductive health care.
We put our clients at the centre of our organisation, whether we are:
- providing support and information during a consultation
- holding a woman’s hand while she undergoes treatment
- delivering high quality, evidence-based clinical care
- talking to NHS Commissioners about best practice in reproductive healthcare
- helping politicians understand the services women need and why
- providing a voice for our clients within the media
- campaigning for the removal of barriers to reproductive healthcare to ensure all women can make their own choices in pregnancy
- conducting research to further women’s reproductive choice across the UK
During the year 2020-2021 we cared for more women than ever before and secured far reaching legal changes to enable us to deliver even better care to women.
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“
Providing women with access to telemedical abortion care has protected their health during the pandemic, enabling our clients to obtain safe, effective services during a public health crisis. But more than that - it’s actually improved the care we can offer women by enabling them to access treatment at the earliest gestations. Abortion is an extremely safe procedure but the earlier it can be offered for a woman who is sure of her decision, the better for her physical and mental health.
At BPAS, we didn’t need a pandemic to know that the ability to access early abortion at home would be transformative for women - particularly those in the most challenging circumstances. Forcing women to attend clinics when it isn’t clinically required impacts those who live considerable distances away and rely on public transport, women with childcare commitments or precarious employment, as well as those in abusive relationships whose movements are closely watched. Women in these circumstances were previously left with little choice but to access pills illegally online - with legal, supportive services now available we know requests to online providers have dried up.
The Government is currently considering whether to retain this service or re-criminalise early abortion at home. At a time when the whole healthcare sector is under such pressure and given the huge improvements we have seen as a result of being able to provide abortion in this way, it would be a travesty if this was taken away from women who need it. ”
Clare Murphy, BPAS CEO
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## We are the UK’s leading reproductive independent healthcare charity
We provided support and care to more than 100k women during 2020/21
## 2020/21 in numbers
Total calls taken: **256,720**
We provided on behalf of **180** NHS Commissioning organisations across the UK
Total abortions provided: **90,789**
**99%** of our care was funded by the National Health Service (NHS)
Total pregnancy options and medical consultations: **105,058**
Provided information and support to **2,568,073** visitors to our website, an increase of **11%** on previous year
We provided **43%** of all abortions that took place in England & Wales (based on National statistics 2020)
Clients overall satisfaction score is **9.4** out of 10 and **98%** of clients would recommend BPAS
We provided **78,451** early medical abortions
Clinic locations
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## Introduction
The British Pregnancy Advisory Service (BPAS) exists to support and enable women to make their own reproductive choices. Where the services women need do not exist, we create them. Where barriers prevent women accessing reproductive healthcare, we remove them.
We believe women are the ones best placed to make their own choices in pregnancy, from the contraception they use to avoid pregnancy to how they give birth, and need unbiased, evidence-based information to support those decisions and high quality services to exercise them. We advocate, campaign and educate in order to improve understanding of women’s needs and to defend and extend reproductive healthcare services in the UK.
We’ve been providing woman-centred reproductive healthcare for more than 54 years, mostly on behalf of the National Health Service. During this year we were commissioned by 180 organisations across the UK, including the UK Government to provide care for women travelling from Northern Ireland to England and Wales for treatment.
## Supporting record numbers of women needing our help
## A message from Cathy Warwick DBE
Our organisation has undergone the most significant changes in our 50-year history in the last 12 months – it has been intensely challenging, but we feel proud we’ve been able to continue to care for tens of thousands of women at such a difficult time.
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## **A MESSAGE FROM CATHY WARWICK DBE** (CONTINUED)
We are not scared of change if it means we can ensure our clients can continue to access the high quality reproductive healthcare they need. We know one of the key markers from women’s perspectives of a quality service is swift access to care and this remains our most important goal. The key to delivering this lies with ensuring we have the frontline healthcare practitioners to support women, and so we have been recruiting significant numbers of nurse and midwife practitioners over this last year.
We have redesigned our operational model to enable as many clients as possible to access care from the comfort and safety of their own homes. We are delivering the majority of consultations via telemedicine, which is significantly more convenient for many women. More than half of our clients who have a teleconsultation at BPAS are also now able to access a fully telemedical service, receiving medications in the post without needing to travel unnecessarily to a clinic. We have created an operational structure that future proofs our organisation with five Telemedicine hubs spread across the country in addition to our national clinic locations providing in-person services. This model of care is safe and highly acceptable for women.
At the start of the pandemic, England, Wales and Scotland all approved the use of mifepristone at home for early abortion. We have gathered extensive data on the safety and acceptability of this service to inform decisions being made by all 3 nations on introducing this temporary measure permanently. We are still waiting for the final decision, but we are hopeful the evidence speaks for itself that this service is preferred by many women and best meets their needs.
And amid all this, we have also made huge headway with developing our long planned fertility service. We began building our of state-of-the-art Fertility hub and clinic in London, and are confident the service will launch before the end of 2021. The development of BPAS Fertility absolutely demonstrates our commitment to removing barriers and improving access to all areas of reproductive healthcare in the UK.
If this year has shown us anything, it’s that we can’t always predict what may be ahead. But we do know that our organisation’s shared values and absolute commitment to supporting women’s pregnancy choices is what both binds us and guides us. We are on a journey to build a BPAS that will support even more women, and even more of their needs. Whatever we do will be underpinned by our belief in the absolute importance of delivering reproductive choice for women.
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## Objectives & activities 2020-21
## Advocacy, policy & campaigning
BPAS has played an instrumental role in fostering pro-choice support in this country, leading a coalition of women’s health and advocacy organisations advocating for change and supporting parliamentary champions of progressive reform. We also campaign for women’s reproductive choices across the spectrum – from ensuring access to all forms of contraception to supporting women’s decisions around birth. For us, pro-choice means supporting women’s choice to have and continue pregnancies as well as to end them, and we work to ensure women are able to fulfil their reproductive goals.
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## Continuous improvement in abortion services
It has been a challenging year for all organisations involved in the delivery of healthcare. Despite this, we delivered care directly to more than 100,000 women.
To ensure we were able to deliver our essential services while keeping our clients and staff safe especially during lockdowns, our operating model of predominantly clinic-based services was redesigned.
We had already developed and implemented a fully telemedical early abortion service for delivery to clients in Northern Ireland following decriminalisation of abortion there in October 2019. As a result we already had the clinical guidelines, training and suppliers to deliver the telemedical EMA “Pills by Post” model.
We secured permission from the Secretary of State for Health and Social Care to deliver this model by working in coalition with a range of other healthcare providers, expert groups and royal colleges. Once the legal changes had been introduced, BPAS was able to offer the “Pills by Post” service across England and Wales within a matter of days.
This huge shift from in-clinic to telemedical services could not have been achieved without the commitment of our staff, who went above and beyond to delivering high-quality abortion care throughout this pandemic without any degradation in our client satisfaction score.
## 2020-21 activities
## Telemedical abortion
We developed, tested, launched and evaluated a fully telemedical EMA service (Pills by Post). Prior to the pandemic, fewer than one in five consultations performed at BPAS were telemedical, with medication collected at the clinic.
Within 10 days of the permission from the health minister being granted for women to use the medication at home, meaning it could be sent directly to them, 97% of consultations at BPAS were delivered by telemedicine. This development required significant investment in technology, issuing of laptops and mobiles to 300+ clinical staff who moved from working in-clinic to working from home.
## New aftercare model
We designed and implemented a new Aftercare model with a dedicated, highly trained cohort of clinical and non-clinical employees focusing on supporting our clients during treatment at home and post treatment. This service required significant investment in digital solutions to ensure we can provide clinical support to our clients 24 hours a day, 7 days per week.
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**2020-21 ACTIVITIES** (CONTINUED)
## New pre/post abortion counselling
We redesigned our pre- and post-abortion counselling offer to give clients a wider range of choice of how and where they access counselling. We developed a new national counselling team within our Contact Centre which manages the offer across the country, providing both virtual/telecounselling appointments and a wider range of appointment times across the day and week. Face-to-face counselling is also managed by this centralised service, delivering a far more seamless process for our clients.
## Supporting NHS abortion services
During the pandemic, many NHS services were unable to see clients face-to-face and women were directed to us and other independent providers. In addition to supporting this increased caseload we provided pre and post-abortion counselling for NHS services as well as clinical aftercare.
## Covid management
Our COVID infection control team has proved an excellent example of both cross-departmental collaboration and iterative learning. Our staff were keen to be educated, share experiences and challenges: each time new guidelines were implemented, we incorporated feedback into updated guidelines. At the start of the pandemic updated guidance was issued regularly as official advice changed rapidly.
## Advocacy, policy campaigning
Advocacy and campaigning are at the heart of BPAS and we continue our fight for the decriminalisation of abortion across the UK so women can access the services they need in the most clinically appropriate way. We strive for the policy frameworks to ensure women can exercise reproductive choice in all areas –from contraception to infant feeding. We’ll also create a research centre for reproductive health so we can explore and advocate for women’s health needs across their reproductive lives.
## Modernising and transforming our business and technology
BPAS relies on effective Property, HR and IT support services to support critical front-line service delivery. We have invested in a developing and delivering a digital strategy to support the business needs of our charity.
## Electronic patient notes system “CAS 2”
With significant investment and commitment from our staff, we implemented CAS2, our electronic patient notes, in November 2020. This project has been in development for several years.
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**MODERNISING AND TRANSFORMING OUR BUSINESS AND TECHNOLOGY** (CONTINUED)
Implementation of this system has meant we have been able to improve processes and services, enabling a consistent approach and secure environment for BPAS to manage clients.
Finance, Human Resources, including Learning & Development, Recruitment and Procurement departments underwent a comprehensive review resulting in a strengthening of these teams. It was acknowledged that a lack of investment had weakened these support structures, creating a barrier to improvement and innovation. These reviews also resulted in the scoping and building of the following systems:
- Finance incorporating online expenses and corporate card processing
- Payroll system
- HR system
New procedures and processes have been developed or updated and implemented which enable each of these functions to process and manage data more effectively.
The modernisation of these departments has future proofed our organisation, enabling us to identify problems sooner and make - and deliver on - better decisions more quickly.
## Operational restructure
The establishment of our Telemedical Hubs and a homeworking model for the organisation as a whole meant we needed to restructure. This process enabled us to transfer resources and deliver a framework that enabled the majority of our clients to be cared for at home if that was their preference, with access to in-clinic care for those who required it.
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## Make BPAS a centre for reproductive healthcare
We continue to transform the delivery of abortion services in the UK and we are ambitious to improve other areas of care. We want to become a centre of reproductive healthcare, building on the services we already deliver. This year has been focused primarily on changing the operational model, however we have also made headway across a range of activities.
## 2020-21 activities
## Develop and deliver fertility services
- Our Director of Embryology, Marta Jansa-Perez formed a project team and began the complex process of developing the BPAS Fertility Service. The creation of a state-of-the art Fertility Hub and Clinic in London started in early 2020 and is due to begin delivering services to patients before the end of 2021.
## Develop social value
- We developed a relationship with the young persons’ breast cancer charity CoppaFeel! We aim to deliver a variety of joint activities which will benefit our clients in providing additional evidence-based healthcare information which will give them more knowledge about their own bodies, and when to seek further advice and help.
## Deliver existing services to new clients and develop extra services to existing clients
99% of the services we provide on behalf of the NHS through arrangements with 180 commissioning organisations. During the year the English NHS Clinical Commissioning Groups underwent a restructure merging many of the commissioning organisations we deal with. This restructure required us to make significant changes from client booking information to invoicing.
- BPAS provided 43% of all abortions undertaken in England and Wales during calendar year 2020
- We performed 44% of all NHS funded abortions in England & Wales during calendar year 2020.
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## Financial results
Funding is received through fees charged for abortion and other sexual health services provided to NHS and individual paying clients. The financial results of the company’s activities are summarised on pages 24 to 43.
The net expenditure for the year amounted to £1,398,000 (2019/20 - £495,000). Total income was £38,548,000, representing a 1.7% decrease over 2019/20 (£39,226,000). This was the result of a decrease in fee income of 3.2% and a decrease in grant income £578,000. Operating costs (Total Resources Expended) were £39,946,000 (2019/20 - £39,721,000), an increase of 0.6% on a like-for-like basis. Expenditure continued on significant further investment in service delivery, people, unit equipment and infrastructure however cost reductions were realised by reducing the number of clinics and moving towards the telemedical provision of services including Pills by Post.
Net cash provided by operating activities was an outflow of £1,438,000 compared to an inflow of £1,251,000 in the prior year. This cash outflow together with the proceeds from the sale of Fixed Assets of £2,423,000 including the sale of one of the Freehold Properties contributed to capital expenditure totalling expenditure totalling £1,606,000. Details of all the acquisitions and disposals of fixed assets during the year are recorded in Note 5 to the Financial Statements.
Total funds £13,703,000 (2019/20 - £14,482,000) decreased as a result of a net deficit of £1,398,000 (2019/20 - £495,000) after profit on the sale of Fixed Assets £659,000 (2019/20 loss- £11,000) and a gain on revaluation of freehold properties £619,000 (2019/20 - £666,000).
## Policy on reserves
The Board’s objective is to generate modest surpluses in order to facilitate investment in the infrastructure of the charity, and to develop and then maintain sufficient General Reserves to mitigate cash flow risks and seasonality in the profile of income. The Trustees monitor the level of reserves, and at the year-end consider that the current level of General Reserves is more than adequate to mitigate cash flows and seasonality of income. £2,790,000 is held in General Reserve (2020 - £2,105,000) and £Nil in Restricted Reserves (2020 £Nil).
The remaining reserves (Revaluation and Designated Reserves) total £10,913,000 (2020 - £12,377,000). In accordance with Charity Commission guidance the BPAS Board operates a Risk Based policy that enables the Charity to safely reduce designated reserves in order to invest in solutions and projects recommended in the Strategic Risk Register.
## Risk management
The Trustees have considered the major risks to which the charity is exposed, in particular those related to operations and finances of the charity, and believe there are adequate systems in place to manage the exposure to major risks. These risks include:
- credit and liquidity risk, which is mitigated by payment being received in advance for services in some cases, as well as having an agreed bank overdraft facility;
- an unstable economic climate and the drive down of costs in the NHS, together with competitive pressure, which is mitigated by continually reviewing service delivery and implementing and delivering efficiency savings across the service; and
- changes in the law relating to abortion, which is mitigated by working with and educating the policy makers.
The Trustees’ Risk Assessment Document is updated regularly and was last updated in January 2022.
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## Going concern
The Trustees have revisited their going concern assessment in July and November 2021 particularly assessing the ongoing effects of Covid-19 and their view of the effect the pandemic had on the business up until those dates, and its forecast effect up until March 2023. They have reviewed the reforecast financial position and cashflows up to 31 March 2023 including the impacts on income streams. A number of scenarios were modelled between +5% and -10% income over the forecast period and their effect on financial results, cashflow and cash requirements reviewed. The Trustees feel that within the most likely range of scenarios that continuing prudent financial control will ensure that BPAS continues to operate within its current financial resources. The scenarios outside of that range are extremely unlikely but as a precaution the Trustees have agreed that a cost saving review that commenced in late 2021 will continue and also that additional funds can be raised by way of a mortgage on one of the freehold properties as well as the sale of another freehold property. Our abortion income is higher than ever, however our non-abortion income streams, such as contraceptive fitting and STI testing, have reduced as these are essentially face-to-face services, these have been recovering since the end of most of the Covid-19 related restrictions in July 2021.
The continuing investment in IT, along with investment in a new IVF business and expenses related to restructuring to enable cost saving have been funded by actively reducing our reserves levels which the Trustees felt were too high. Our reserves are mostly held as property so we took on short-term loan facilities pending the sale of two freehold properties, one of which completed in March 2021 and a second in September 2021. £1.9m of the loan was repaid in April 2021 and the remaining £1.1m in September 2021.
All of these changes have enabled us to maintain our financial position, despite lower overall income levels and therefore the Covid-19 pandemic has had no material impact on the financial viability of the charity in the foreseeable future.
The Trustees recognise that there remains a degree of uncertainty as a result of the pandemic, however this does not pose a material uncertainty that would cast doubt on the charity’s ability to continue as a going concern. After considering the projections of cash flow and profitability to support cash balances the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, which is a period of at least 12 months from the signing of the accounts and audit report. For this reason, it continues to adopt the going concern basis in the financial statements.
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## Structure, management & governance
## Directors and Trustees
Dame Professor Cathy Warwick (Chair) Professor Iain Cameron (appointed 13 July 2020) Graham Colbert (appointed 12 November 2021) John Collier Dr David Dickson (resigned 30 July 2021) Professor Anna Glasier (resigned 12 November 2021) Siobhan Kenny (appointed 11 February 2022)
Dr Sheelagh McGuinness
Dr Lucy Moore Professor Lesley Regan Sanjay Shah Anne Shevas
Sam Smethers (appointed 11 February 2022)
Dr Jane Stewart (appointed 12 November 2021) Natasha Walton (appointed 12 November 2021) Amanda Callaghan (resigned 12 November 2020)
BPAS is governed by its Memorandum and Articles of Association dated 26th March 1984 and last updated by special resolution on 7th July 2012.
BPAS is constituted as a company limited by guarantee, each director and Trustee guarantees a sum not exceeding £10 during their membership and for one year thereafter.
The role of the Board is specifically to direct and oversee the strategy and operations of the charity whilst delegating the day-to-day operations to the senior leadership team. The Trustees meet formally four times a year.
Decisions are made either at a full Trustee meeting or via discussion and agreement between formal meetings. Where it is more appropriate for a smaller group of Trustees to meet and agree on more specialist subjects, then a Trustee sub-committee is formed and mandated to make decisions outside of the full Board. Following a recent external review of the Board structure and operations a key sub-committee has recently been formed for finance and audit risk.
Key management remuneration is set by the Board based on reviews of market rates along with recruitment and retention requirements.
BPAS recruits and appoints new Trustees by advertising. Following initial recruitment and evaluation the prospective Trustee is interviewed by a panel that consists of three members of the Board, one of which is the Chair. They are formally appointed by letter and the Trustee starts their term of office at the Board meeting following their letter of appointment. Whilst in post, all Trustees undergo an induction programme tailored to their individual needs and have access to ongoing training provided both internally and externally. The Chair meets individually with each Trustee at least every two years to undertake a review of the performance of the Board and their own role within it.
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## BPAS governance & management
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Board of
Trustees
Clinical
Finance,
Governance
Audit & Risk
Committee
Clinical
Advisory
Group
Infection
Control
Committee
Research
& Ethics
Committee
Fertility Clinical
Advisory Group
Chief
Executive
Innovation
Deputy Chief Medical Nursing & Operations Assoc. Director Embryology
& Marketing
Executive Director Quality Director Director Governance Director
Director
National Business
Developm ent
Director
HR Dire ctor
IT Direc tor
**----- End of picture text -----**
Executive Leadership Team Member
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Chief Executive Clare Murphy (appointed Chief Executive 1 December 2020, resigned Company Secretary 12 November 2021) Secretary Stephen Franklin (Appointed 12 November 2021) Senior Officers Mandy Myers (Deputy CEO, Operations resigned December 2021) Charles Scott (Deputy CEO) Dr Patricia Lohr (Medical Director) Rosemary Cutmore (National Business Development Director) Michael Nevill (Nursing & Quality Director) Jill Craig (IT Director) Marta Jansa-Perez (Embryology Director) Donagh Stenson (Innovation & Marketing Director appointed February 2021) Stephen Franklin (Associate Director of Governance & Risk appointed March 2021) Joanne Deans (HR Director appointed September 2021) Cheryl Crosby (Operations Director appointed August 2021) Registered office 20 Timothy’s Bridge Road Stratford-upon-Avon CV37 9BF Company number 01803160 Registered charity 289145 Reference & administrative details Auditor BDO LLP Chartered Accountants and Registered Auditors Two Snow Hill Birmingham B4 6GA Bankers HSBC Bank PLC 6th Floor 120 Edmund Street Birmingham B3 2QZ Principal solicitors Reynolds Porter Chamberlain Tower Bridge House St Katherine’s Way London E1W 1AA
## Auditor
BDO LLP have expressed their willingness to continue in office and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be reappointed as an auditor of the company will be put to the Annual General Meeting.
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## Trustees’ responsibilities
The Trustees are responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and 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 Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
To the Trustees’ best knowledge, there is no relevant audit information of which the auditor is unaware and they have taken all reasonable steps to make themselves aware of any relevant audit information and to establish that the auditor is aware of the information.
This report was approved by the Board on 15 March 2022 and signed on its behalf by Cathy Warwick – Chair of Trustees.
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## INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF THE BRITISH PREGNANCY ADVISORY SERVICE For the year ended 31 March 2021
## Qualified opinion on the financial statements
In our opinion, except for the possible effects of matters described in the basis of qualified opinion paragraph, 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 its incoming resources and application of resources 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.
We have audited the financial statements of The British Pregnancy Advisory Service (“the Charitable Company”) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements, 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).
## Basis for qualified opinion
With respect to stock presented in the balance sheet with a carrying amount of £1,404,211 at 31 March 2020, the prior year, our audit evidence was limited because complete and accurate records of stock purchases, stock consumed and other transactions had not been maintained. We were also unable to attend a physical count of the stock at the end of that year. As a consequence, we were not able to obtain sufficient appropriate audit evidence about the completeness, existence, valuation or accuracy of stock held at 31 March 2020. We were unable to obtain the necessary information and evidence using alternative audit procedures. Consequently we were unable to determine whether any adjustment to this amount at 31 March 2020 was necessary or whether there was any consequential effect on the resources expended for the year ended 31 March 2021.
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
## Independence
We remain 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.
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## Conclusions related 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 Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £1,404,211 held at 31 March 2020 or whether there was any consequential effect on the resources expended for the year ended 31 March 2021. We have concluded that where the other information refers to the prior year stock balance or related balances such as resources expended or net movement in funds for the year, it may be materially misstated for the same reason.
## Other Companies Act 2006 reporting
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic report prepared for the purposes of Company Law, 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, which are included in the Trustees’ report, have been prepared in accordance with applicable legal requirements.
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustees’ report.
Arising solely from the limitation on the scope of our work relating to stock, referred to above
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit
- we were unable to determine whether adequate accounting records have been kept.
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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;
- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Directors’ 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
As explained more fully in the Directors’ 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 determines 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
We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
## Extent to which the audit was capable of detecting irregularities, including fraud
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:
We made enquiries of management. This included the following:
- how they have identified, evaluated and complied with laws and regulations and whether they were aware of any instances of non-compliance;
- their process for detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- which internal controls have been established to mitigate risks related to fraud or non-compliance with laws and regulations.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Charity. These include, but are not limited to the Charities SORP and UK GAAP.
22
In addition, the charity is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: data protection. Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the Those Charged with Governance and other management and inspection of regulatory and legal correspondence if any.
We considered management’s incentives and opportunities for fraudulent manipulation of the financial statements (including revenue recognition and the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.
Audit response to risks identified
- We reviewed the financial statement disclosures and sample tested to supporting documentation to assess compliance with relevant laws and regulations discussed above;
- We made enquiries of the Audit Committee and management;
- We reviewed minutes of meetings of those charged with governance;
- We reviewed any Serious Incident Reports submitted;
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; considered completeness of related party transactions; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## Use of our report
This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Kyla Bellingall (Senior Statutory Auditor)
For and on behalf of BDO LLP, statutory auditor
Birmingham, UK
Date 24 March 2022
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
23
## STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2021
||Unrestricted|Restricted|Restricted|Total|Total|
|---|---|---|---|---|---|
||2021|2021||2021|2020|
||£’000|£’000||£’000|£’000|
|INCOME:||||||
|Incoming from:||||||
|Donations and legacies|510||-|510|42|
|Investment income|-||-|-|4|
|Grants|-|240||240|818|
|Incoming from charitable activities:||||||
|Fees for services|37,139||-|37,139|38,373|
|Proft/(loss) on sale of Fixed Assets|659||-|659|(11)|
|Total Income|38,308|240||38,548|39,226|
|EXPENDITURE ON:||||||
|Charitable activities;||||||
|Advice, treatment and care|37,072|240||37,312|36,660|
|Education and research|2,634||-|2,634|3,061|
||39,706|240||39,946|39,721|
|Net expenditure|(1,398)||-|(1,398)|(495)|
|Gains on revaluation:||||||
|Unrealised|619||-|619|666|
|Net movement in funds|(779)||-|(779)|171|
|Fund Balances brought forward at 1 April|14,482||-|14,482|14,311|
|Fund balances carried forward 31 March|13,703||-|13,703|14,482|
The notes on pages 30 to 43 form part of these financial statements.
24
## BALANCE SHEET (Company No. 01803160) AS AT 31 MARCH 2021
|AS AT 31 MARCH 2021|||||
|---|---|---|---|---|
|Notes
FIXED ASSETS
Tangible Assets
5
CURRENT ASSETS
Stock
6
Debtors
7
Cash at bank & in hand
CREDITORS
Amounts falling due within one year
8
NET CURRENT ASSETS
NET ASSETS
RESERVES
Revaluation
11
Designated
12
General
13
Restricted
14
TOTAL FUNDS|
£’000
1,462
4,421
1,827|2021
£’000
12,669
1,034|
£’000
1,404
4,293
129|2020
£’000
13,269
1,213|
||7,710
(6,676)||5,826
(4,613)||
||
||
||
|||13,703||14,482|
|||4,863
6,050
2,790
-||5,531
6,846
2,105
-|
|||13,703||14,482|
The notes on pages 30 to 43 form part of these financial statements.
25
## BALANCE SHEET (Company No. 01803160) AS AT 31 MARCH 2021
Approved by the Board on 15 March 2022 and signed on its behalf:
Cathy Warwick
Chair of Trustees
The notes on pages 30 to 43 form part of these financial statements.
26
## CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021
|Net cash (used in)/ provided by operating activities
Cash fows from investing activities:
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Cash fow from fnancing activities
Bank loans
Repayment of fnance lease
Net increase/(decrease) in cash
Cash and cash equivalents at the start of the year
Cash and cash equivalents at the year end
Change in cash and cash equivalents in the year|2021
£’000
(1,438)
-
(1,606)
2,423
2,319
-
1,698
129
1,827
1,698|2020
£’000
1,251
4
(1,866)
13
-
(32)|
|---|---|---|
|||(630)|
|||759
129|
|||(630)|
The notes on pages 30 to 43 form part of these financial statements.
27
## NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021
|Reconciliation of net expenditure to
net cash fow from operating activities
Net expenditure for the year
Adjustments for:
Depreciation
Dividends, interest and rents from investments
(Increase) in stocks
(Increase)/decrease in debtors
(Decrease)/Increase in creditors
(Proft)/Loss on sale of Fixed Assets
Net cash (used in)/provided by operating activities|2021
£’000
(1,398)
1,061
-
(58)
(128)
(256)
(659)
(1,438)|2020
£’000
(495)
1,112
(4)
(512)
1,027
112
11|
|---|---|---|
|||1,251|
The notes on pages 30 to 43 form part of these financial statements.
28
## ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 MARCH 2021
|Cash at bank and in hand
Bank loans
Total
Cash at bank and in hand
Obligation under fnance lease
Total|1 April
Cash
Other non
31 March
2020
fows
cash changes
2021
£’000
£’000
£’000
£’000
129
1,698
-
1,827
-
(2,319)
-
(2,319)|
|---|---|
||129
(621)
-
(492)|
||1 April
Cash
Other non
31 March
2019
fows
cash changes
2020
£’000
£’000
£’000
£’000
759
(630)
-
129
(32)
32
-
-|
||727
(598)
-
129|
The notes on pages 30 to 43 form part of these financial statements.
29
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
## 1. Accounting polices
## a) Basis of accounting
The financial statements have been prepared in accordance with the Companies Act 2006, applicable accounting standards on the going concern basis, and under the historic cost convention, as modified for the market value of investments and freehold land and buildings. The accruals concept of accounting is used throughout. The Trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. The financial statements also comply with best practice as recommended by the Statement of Recommended Practice SORP 2015 (FRS102), issued by the Charity Commission.
The financial statements have been prepared on a going concern basis.
In the current business climate, the Trustees acknowledge the ongoing COVID-19 pandemic and in response to the pandemic the Board and management teams are monitoring all aspects of the group’s activities. Due to changes in the law many of our pathways have been changed to be remote as opposed to face-toface and our gestation times to abortion have reduced meaning we do fewer surgical procedures and giving us opportunities to reduce our operational cost base. Our abortion income is higher than ever, however, our non-abortion income streams, such as contraceptive fitting and STI testing, have reduced as these are essentially face-to-face services. All of these changes have enabled us to maintain our financial position, with similar overall income levels and further opportunities to reduce costs in the future.
Our investment in IT has enabled the vast majority of both meetings and abortion delivery to be held remotely. This continuing investment in IT, along with investment in a new IVF business and expenses related to restructuring to enable cost saving, have been funded by actively reducing our reserves levels, which the Trustees felt were too high, as our reserves are mostly held as property we have taken on short-term overdraft and loan facilities pending the sale of two freehold properties. One property was sold on the last day of the financial year, the second property was sold in September 2021, all loan facilities were settled from the proceeds of these sales.
The Trustees have revisited their going concern assessment in July and November 2021 particularly assessing the ongoing effects of Covid-19 and their view of the effect the pandemic had on the business up until those dates and its forecast effect up until March 2023.They have reviewed the reforecast financial position and cashflows up to 31 March 2023 including the impacts on the income stream. A number of scenarios were modelled between +5% and -10% income over the forecast period and their effect on financial results, cashflow and cash requirements reviewed. The Trustees feel that within the most likely range of scenarios that continuing prudent financial control will ensure that BPAS continues to operate within its current financial resources. The scenarios outside of that range are extremely unlikely but as a precaution the Trustees have agreed that a cost saving review that commenced in late 2021 will continue, timings of some IT and Leasehold Premises costs will be delayed and also that additional funds can be raised by way of a mortgage on one of the freehold properties as well as the sale of another freehold property. Our abortion income is higher than ever, however our anon- abortion income streams such as contraceptive fitting and STI testing have reduced as these are essentially face-to-face services, these have been recovering since the end of most of the Covid-19 restrictions in July 2021.
30
## **NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
The Trustees recognise that there remains a degree of uncertainty as a result of the pandemic, however this does not pose a material uncertainty that would cast doubt on the charity’s ability to continue as a going concern. After considering the projections of cash flow and profitability to support cash balances the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, which is a period of at least 12 months from the signing of the accounts and audit report. For this reason, it continues to adopt the going concern basis in the financial statements.
## b) Income & expenditure account
BPAS has not published a separate Income and Expenditure Account as the Statement of Financial Activities complies with FRS 102 and is equivalent.
All income is derived in the United Kingdom.
## c) Incoming resources & resources expended
Incoming resources are analysed according to the activity that produces the resources. They are recognised on a receivable basis. Income generated in furtherance of the charity’s objectives is based on fees for the provision of reproductive health services. Income from activities for the generation of funds comprises investment income and donations which are also recognised on a receivable basis.
Resources expended are analysed according to the activity to which it relates on an accruals basis. Governance costs include audit costs, governance meeting expenses and legal advice to the Trustees. Grants are accounted for on an accruals basis.
VAT is not recovered due to the nature of the services provided by the organisation and hence is an irrecoverable cost.
## d) Land and buildings
FRS 102 requires fixed assets that are carried at re-valued amounts to be shown at their current value at the balance sheet date. To achieve this land and buildings are subject to valuations carried out on a rolling basis, by an independent valuer over a five-year period, unless a more frequent valuation is required to reflect material changes in the property market.
BPAS continues to apply a policy of regularly testing the assets for impairment.
## e) Fixed Assets and Depreciation
BPAS has a policy of capitalising individual equipment purchases over £5,000 unless the equipment is part of the infrastructure of the building.
BPAS has a policy of capitalising improvements to short-term leasehold premises where these improvements make the property fit for use.
31
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
Depreciation of fixed assets is on a straight-line basis calculated on annual rates to write off each asset over the term of its estimated useful life. The depreciation charge is adjusted to actual in the year of disposal. The estimated lives in use are as follows:
Motor vehicles - 5 years. Medical equipment - 10 years.
Fittings & office equipment - 5 years.
IT Infrastructure - 5 years.
IT Hardware - 5 years. Freehold Buildings - 50 years.
Freehold land is not depreciated.
Short leasehold premises improvements are depreciated over the term of the lease.
## f) Stocks
Stocks have been valued at the lower of cost or net realisable value after making due allowance for obsolete items. Stock consists of medical consumables and accordingly no overheads are included in the stock valuation.
## g) Debtors
Where clients undertake to repay fees over an extended period and find themselves unable to continue repayments, the balance is written off. A provision is made for clients who may be unable to repay loans outstanding at the end of the financial period.
## h) Repairs and renewals
Repairs and renewals are charged to the Statement of Financial Activities in the year in which expenditure is incurred.
## i) Foreign exchange
BPAS accepts payment in both sterling and euros. Translation of euro transactions is undertaken monthly with foreign exchange gains and losses being recognised when realised.
Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet dates. Any differences are taken to the Statement of Financial Activities.
## j) Pensions costs
The charity operates a defined contribution scheme to which all employees are auto-enrolled and costs are accounted for in the year in which they occur.
## k) Fund accounts
The charity has created designated funds in order to safeguard the capital of the business whilst allowing strategic investment to diversify, develop and future proof the business. Restricted funds have been created in relation to grants received for specific purposes.
32
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## l) Leased assets
Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term. The corresponding lease commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to the income and expenditure account.
Lease payments are analysed between capital and interest components. The interest element of the payment is charged to the income and expenditure account over the period of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amount payable to the lessor.
All other leases are treated as operating leases. Their annual rentals are charged to the income and expenditure account on a straight-line basis over the term of the lease.
## m) Judgements in applying accounting policies and key sources of estimation
In preparing these financial statements, the Trustees have made the following judgements:
- Determine whether leases entered into by the charity either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease-by-lease basis, and to whether any dilapidations are required as a result of these leases, any dilapidations that are considered necessary by the Trustees at this time, are included in these accounts.
- Determine whether there are indicators of impairment of the company’s tangible assets. Factors taken into consideration in reaching such a decision include the economic value in use, whether there are expected future cash flows to be created by the entity, and whether there is any evidence of obsolescence or damage.
- Due to Covid-19 lockdown restrictions a stocktake was not possible at 31 March 2020 and at that stage an analytical review of the expectations of stock values held at 31 March 2020 was carried out and the carrying value deemed on that basis not to be materially mis-stated. At 31 March 2021 however a full and comprehensive stocktake was carried out at all BPAS locations along with a line by line valuation of all stock counted and not deemed out of date or no longer used. The valuation of stock at 31 March 2021 as disclosed in these financial statements is therefore deemed to be accurate on the basis of both count and valuation.
- As described in note 1 d) above the Charity has obtained independent third-party property valuations from KWB Property Management Limited. On the basis of the information provided, and a significant post year end property sale the trustees consider that there is sufficient information available to measure the value of the freehold land and buildings at the balance sheet date.
## n) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at settlement value.
33
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 2. Charitable expenditure
BPAS is a charity that provides abortion advice, treatment and care services to clients and its resources expended are directly related to the provision of these services except costs incurred for education and research, and administrative costs necessarily incurred in running the charity. Support costs have been allocated to activities on the basis of staff time incurred in support of the activity, costed on a full cost basis.
## Advice treatment and care costs include the following:
|Salaries, fees &
related staf costs
Consumables
Infrastructure costs|2021
2021
2021
2020
2020
2020
£’000
£’000
£’000
£’000
£’000
£’000
Service
Head ofce
Total
Service
Head ofce
Total
provision
& support
provision
& support
20,950
4,894
25,844
19,644
5,460
25,104
2,832
-
2,832
4,294
24
4,318
5,609
3,027
8,636
3,690
3,548
7,238|
|---|---|
||29,391
7,921
37,312
27,628
9,032
36,660|
Education and research costs include:
|Salaries, fees &
related staf costs
Consumables
Infrastructure costs|Service
Head ofce
Total
Service
Head ofce
Total
provision
& support
provision
& support
973
976
1,949
727
1,329
2,056
33
42
75
83
85
168
13
597
610
62
775
837|
|---|---|
||1,019
1,615
2,634
872
2,189
3,061|
34
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 2. Charitable expenditure (Continued)
|Governance costs:
Included in the above
Audit/legal
Meeting expenses|2021
£’000
85
18
103|2020
£’000
53
32|
|---|---|---|
|||85|
Amounts paid under operating leases was £2,080,000 (2020 - £2,034,000).
## 3. Staff costs
|3. Staff costs|||
|---|---|---|
|Wages & salaries
Social security costs
Other pension costs|21,527
1,982
922
24,431|19,037
1,742
793|
|||21,572|
Included in the above are redundancy payments of £336,627 (2020 - £186,564).
|Average monthly number of full and part time
employees during the year:
Advice treatment & care
Education & research
Due to the large number of part-time employees
of the charity this equates to contracted whole
time equivalents:|Number
697
63
760
531|Number
710
63|
|---|---|---|
|||773|
|||525|
35
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 3. Staff costs (Continued)
The number of employees earning over £60,000 p.a. excluding pension contributions was:
||2021|2020|
|---|---|---|
|£60,001 - £70,000|5|8|
|£70,001 - £80,000|5|2|
|£80,001 - £90,000|0|0|
|£90,001 - £100,000|1|2|
|£100,001 - £110,000|5|3|
|£110,001 - £120,000|2|3|
|£120,001 - £130,000|0|1|
|£130,001 - £140,000|3|1|
|£140,001 - £150,000|4|2|
|£150,001 - £160,000|0|1|
|£160,001 - £170,000|0|0|
|£170,001 - £180,000|1|1|
|£180,001 - £190,000|1|0|
Pension contributions for the above staff amounted to £183,674 (2020 - £132,737).
During the year no Trustees, or any persons connected with them (other than those disclosed in Note 19), have received any remuneration. During the year, the company made no pension payments on behalf of the Trustees.
Aggregate remuneration of key management personnel was £1,129,073 (2020-£1,000,110) with pension contributions of £93,397 (2020-£61,713). Reimbursement of expenses, which are subsistence costs, incurred by all the Trustees in attending meetings totalled £83 (2020 - £18,725).
36
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 4. Pensions
The charity operates a defined contribution scheme. The assets are held separately from those of the charity in independently administered funds. Contributions payable by the charity to the fund amounted to £922,789 (2020 - £793,304). Employee group personal pension contributions between 5% and 7% attract an employer contribution between 4.5% and 7% with BPAS covering the administration expenses and the cost of death in service benefits. This scheme is stakeholder compliant and is open to all contracted members of staff. Contributions amounting to £149,481 (2020- £142,966) were payable to the fund and are included in creditors.
## 5. Tangible fixed assets
|Cost or valuation
At 1 April 2020
Additions
Disposals
Revaluations
At 31 March 2021
Depreciation
At 1 April 2020
On disposals
Charge for the year
Revaluations
At 31 March 2021
Written down values
At 31 March 2020
At 31 March 2021|Freehold
Short
Motor
Equipment
Total
land &
leasehold
vehicles
buildings
land &
buildings
£’000
£’000
£’000
£’000
£’000
9,250
2,466
474
9,488
21,678
-
80
80
1,446
1,606
(1,750)
-
(59)
(319)
(2,128)
54
-
-
-
54|
|---|---|
||7,554
2,546
495
10,615
21,210|
||495
1,756
295
5,863
8,409
(18)
-
(47)
(299)
(364)
88
167
72
734
1,061
(565)
-
-
-
(565)|
||-
1,923
320
6,298
8,541|
||8,755
710
179
3,625
13,269|
||7,554
623
175
4,317
12,669|
37
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 5. Tangible fixed assets (Continued)
Land and buildings included at valuation would have been included on an historical value basis at £2,690,000 (2020 - £3,223,000).
All of the freehold land and buildings were re-valued in the year. These valuations were undertaken by a professional firm of chartered surveyors, KWB Property Management.
Revaluations were provided based on the 2020 valuations as amended by local market reviews on a vacant possession, open market, fair value basis.
## 6. Stocks
|6. Stocks|||
|---|---|---|
|7. Debtors
Trade debtors
Prepayments & Accrued Income
All amounts fall due within one year.
8. Creditors
Amounts falling due within one year:
Trade creditors
Taxation & social security
Other creditors and accruals
Bank loans
Medical consumables|2,976
1,445
4,421
2,119
669
1,569
2,319
6,676
2021
£’000
1,462|2020
£’000
1,404|
|||3,556
737|
|||4,293|
|||1,714
517
2,382
-|
|||4,613|
38
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 9. Bank account
An overdraft facility agreed by the charity with its bankers was secured way of a debenture comprising fixed and floating charges over all of the assets and undertakings of the charity as well as a first legal charge over one of freehold properties.
## 10. Taxation
The entity is a charity within the meaning of paragraph 1 schedule 6 Finance Act 2010. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains under part 10 of The Income Tax Act 2007 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge arose in the year.
## 11. Revaluation reserve
During the year the revaluation reserve has decreased from £5,531,000 to £4,863,000 due to the sale of one of the freehold properties and a transfer to general reserves. During the year all of the freehold properties were re-valued.
|Balance at 1 April 2020
Movement in funds
Depreciation of buildings
Disposal of revalued property
Revaluation of properties
Balance at 31 March 2021|2021
£’000
5,531
(50)
(1,237)
619
4,863|2020
£’000
4,910
(45)
-
666|
|---|---|---|
|||5,531|
39
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 12. Designated reserve
In accordance with Charity Commission guidance the BPAS Board operates a Risk Based policy that enables the Charity to safely reduce designated reserves in order to invest in solutions and projects recommended in the Strategic Risk Register.
|Balance at 1 April 2020
Transfer (to)/from General Reserve
Balance at 31 March 2021
13. General reserves
Balance at 1 April 2020
Realised defcit for year
Transfer from revaluation reserve (Note 11)
Transfer from designated reserve (Note 12)
Balance at 31 March 2021
14. Restricted reserve
Balance at 1 April 2020
Grants Received
Resources expended
Balance at 31 March 2021|6,846
(796)
6,050
2021
£’000
2,105
(1,398)
1,287
796
2,790
-
240
(240)
-|6,964
(118)|
|---|---|---|
|||6,846|
|||2020
£’000
2,437
(495)
45
118|
|||2,105|
|||-
818
(818)|
|||-|
40
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 15. Indemnity insurance
BPAS carries indemnity insurance cover for all employees providing protection for BPAS against mainly medical negligence claims up to a limit of £5 million at a cost of £254,304 p.a. A separate policy provides Directors and Officers indemnity cover of £3 million at a cost of £3,788p.a.
## 16. Members’ liability
BPAS does not have share capital and each director/member guarantees a sum not exceeding £10 during their membership and for one year thereafter.
## 17. Commitments under operating leases
The company had commitments under non-cancellable operating leases as set out below.
|Operating leases which expire:
Within one year
In two to fve years
After fve years|Land &
buildings
2021
£’000
1,843
3,347
1,383
6,573|Others
2021
£’000
146
106
-
252|Land &
buildings
2020
£’000
1,695
2,159
433
4,287|Others
2020
£’000
138
256
-
394|
|---|---|---|---|---|
||||||
41
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 18. Auditor’s remuneration
Auditor’s remuneration for the year was £32,000 (2020 - £31,800) for audit services and £ nil (2019 - £nil) for non-audit services.
## 19. Related party transactions
The charity purchased goods and services to the value of £18,338 (2020 - £56,385 from GAS LLP (a supplier of anaesthetic services) in which one of the Trustees who served during the year (David Dickson) has an interest.
All transactions were on an arms-length basis.
Amounts outstanding to GAS LLP at 31 March 2021 were £nil (2020 - £nil).
David Dickson resigned as a Trustee on 30 July 2021.
## 20. Financial instruments
|20. Financial instruments|||
|---|---|---|
|Financial assets
Cash at bank & in hand
Trade & other receivables
Financial liabilities
Trade & other payables|2021
£’000
1,827
4,421
6,248
6,676|2020
£’000
129
4,293|
|||4,422|
|||4,613|
42
**NOTES TO THE FINANCIAL STATEMENTS** FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)
## 21. Analysis of net assets between funds
## 2021
|Financial assets
Tangible Fixed Assets
Net Current Assets
2020
Financial assets
Tangible Fixed Assets
Net Current Assets|Unrestricted
funds
£’000
12,669
1,034
13,703
Unrestricted
funds
£’000
13,269
1,213
14,482|Restricted
funds
£’000
-
-
-
Restricted
funds
£’000
-
-
-|Total
£’000
12,669
1,034|
|---|---|---|---|
||||13,703|
||||Total
£’000
13,269
1,213|
||||14,482|
## 22. Post balance sheet event
One of the Freehold Properties valued at £3,000,000 was subsequently sold in September 2021 for £3,600,000 and the remaining Bank Loan of £1,082,000 was settled directly from the sale proceeds.
43
## **www.bpas.org**
Head Office: 20 Timothys Bridge Road, Stratford Enterprise Park, Stratford-upon-Avon CV37 9BF.
T: 0345 365 50 50 or +44 (0)1789 508 211
Registered Charity 289145 as British Pregnancy Advisory Service BPAS is registered and regulated by the Care Quality Commission February 2022