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2021-03-31-accounts

Registered number: 02209114 Charity number: 298603

FREEWAYS

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FREEWAYS

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 10
Independent Auditor's Report on the Financial Statements 11 - 14
Consolidated Statement of Financial Activities 15
Consolidated Balance Sheet 16
Charity Balance Sheet 17
Consolidated Statement of Cash Flows 18
Notes to the Financial Statements 19 - 37

(A Company Limited by Guarantee)

FREEWAYS

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees C C Britton, Non-executive
A M Heaton, Non-executive
L B Cooke, Non-executive
P J Laszlo, Non-executive
F S Morton, Chair, Non-executive
D Y Pincott, Non-executive
M S Barnett, Non-executive (appointed 14 June 2021)
Company registered
number
02209114
Charity registered
number
298603
Registered office
Leigh Court Day Centre
Pill Road
Abbots Leigh
Bristol
BS8 3RA
Company secretary
D G Slack
Chief executive officer
Claire Hayward
Independent auditor
Mazars LLP
Chartered Accountants
90 Victoria Street
Bristol
BS1 6DP
Bankers
Barclays Bank plc
86 Queens Road
Clifton
Bristol
BS8 1RB
National Westminster Bank Plc
13 High Street
Westbury-on-Trym
Bristol
BS9 3BF
Solicitors
Burges Salmon LLP
One Glass Wharf
Bristol
BS2 0ZX

Page 1

(A Company Limited by Guarantee)

FREEWAYS

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the charity for the year 1 April 2020 to 31 March 2021. The annual report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) as amended by Update Bulletin 1 (effective January 2015) and Update Bulletin 2 (effective 1 January 2019).

Since the group and the charity qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

The objects of the charity, set out in the memorandum of association, can be summarised as

To support adults with a learning disability for the public benefit.

Freeways undertakes this by supporting individuals in residential homes, in supported living services, day services, the community and with the use of the hydrotherapy pool. The following paragraphs outline the activities and achievements that deliver those objects.

The Freeways’ Vision Statement is “A Provider of Choice”, this is the defining statement which outlines its intent, and its Mission Statement, “Quality, Wellbeing and Evolution”, indicates the methodology by which it chooses to conduct its business.

Underpinning these statements are six organisational values:

Achievements and performance

Main achievements of the charity

Wellbeing

In the last year the wellbeing of the people we support and our staff has been paramount due to the impact of the global pandemic caused by Covid-19.

Staff have worked tirelessly to ensure that our service users understood why the support they receive had been required to change and the new risks they needed to be aware of to enable them, where possible, to make informed decisions about how to stay safe.

The teams showed endless creativity to help people through the requirements of shielding and lockdown to ensure that their mental health was supported through engagement in many enjoyable activities.

Page 2

FREEWAYS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Services worked together and embraced new technology to ensure people could maintain relationships and key dates in their calendars could continue to be special even if they could not celebrate as they had done for many years previously.

Some of the ways people embraced technology included:

In the first lockdown the services had competitions between each other to re-create a piece of art, make a video for a song and make a scarecrow for all the new vegetable gardens that people started.

Our services went above and beyond normal to support people in their community.

Due to a number of other local services closing due to the pandemic, our floating support community service in B&NES supported individuals deemed high risk by the local authority beyond their normal contract, to access basic support such as food vouchers.

Some of the people we support had employment pre-pandemic as key workers, for example in supermarkets, and these people had to continue going to work. Staff supported them to understand the new rules that they needed to follow to stay safe in the community and in work.

A number of our services did have cases of Covid-19 over the last year and unfortunately two individuals died 10 months apart. One in June 2020 and another in April 2021 both with Covid-19 stated on their death certificates; both individuals had lived in care homes within Freeways for a number of years, one since Freeways started as a charity, and both will be missed by everyone who knew them.

Fortunately staff in health and social care were one of the priority groups for the Covid-19 vaccinations with most staff being able to access these by January 2021.

Most of our residential care home residents were also able to access vaccines by this time with other clients and non-care staff slightly later in the year.

In addition to the existing policies and schemes a number of new initiatives were introduced by the Human Resources team in conjunction with our Wellbeing Group, which is formed from staff with a particular interest in this area. The key existing actions included:

Some of the new initiatives put in place to support staff included:

Page 3

(A Company Limited by Guarantee)

FREEWAYS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

The Chair of Trustees also attended our Staff Representatives Group to thank them for all their hard work and to hear how they were feeling. This led to the Trustees authorising an additional discretionary payment to all staff as they recognised they had gone above and beyond, working with additional stresses to ensure the people we support remained safe and well.

It is also recognised that this was a particularly stressful time for families who could not visit the services as much as they would have liked. For this reason the organisation sent regular updates to families making them aware of legislation, guidance and other information to help them remain confident in the care we were providing. There were many family members who got in touch thanking the staff for keeping their relative safe and appreciating the regular communication.

Due to the pandemic, some of our services had to change the way they worked or close for a period. This included our hydrotherapy pool and most of the staff in that service were furloughed for part of the year. In addition we had a number of staff who for health, or other significant personal reasons, were required to be furloughed. Significant work was undertaken to ensure these individuals were supported during this stressful time and, when the time was right, given the support to successfully return to work.

Many services, including the hydrotherapy pool and community services were required to look at safer systems of work and reduce capacity to ensure the people we support remained safe and the risk from harm remained as low as possible.

Quality

In the last year the Care Quality Commission (CQC) stopped visits except where there were significant concerns or larger outbreaks of Covid-19.

CQC visited one of our services after a larger outbreak and there were no concerns raised about the quality of care or infection control which was comforting to hear and a testament to the hard work by the manager and team.

One of our aims this year was to increase the number of key lines of enquiry rated as outstanding by CQC but due to the pandemic this was not possible because CQC stopped carrying out these assessments.

All our CQC registered services remain rated as Good overall.

Significant work was carried out by our senior management team and cascaded into the services to ensure Freeways remained compliant with the latest Government advice for Covid-19 and infection control. There were up to 6 different sets of guidance relating to the different services and functions within the charity. Whenever the guidance changed the different implications needed to be understood and implemented as quickly as possible

Freeways worked closely with a local group of learning disability charities and businesses to ensure that support provided not only in Freeways but across the wider learning disability sector remained safe and at a high standard. This group was formed from the benchmarking group Freeways had set up to identify where it was doing well and where it could improve as there is little comparative data available.

Freeways continues to produce audits annually regarding Safeguarding, Medication Errors and Feedback and this year also completed a GDPR audit for Trustees to give them assurances around these key areas.

Although Covid-19 was the backdrop to the year there were still examples of wonderful achievements within the charity for whole services and individuals within those services. There are numerous examples but a selection is provided below:

Page 4

(A Company Limited by Guarantee)

FREEWAYS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

The Beach

Freeways took over this service in February 2020 and over the last year have received a lot of positive feedback from the families of the people supported, the social workers and the staff regarding the change for the better. A number of individuals now need less support due to their increased independence achieved in a very short timeframe. One family member wrote “a weight has been lifted from our shoulders” and that they “now believe supported living can work”. The manager has been shortlisted for internal and external awards due to the turnaround achieved in the service in such a short time.

Supporting service user rights

In the last year there have been barriers to completing what in any other year would be a simple task: as other agencies closed or put in extra measure to keep people safe, some areas of support became a great deal harder. Some of the numerous individual outcomes achieved are listed below:

Achieving Outcomes

Like so many people, the dreams of some of the people we support have needed to be put on hold this last year but some have been able to use the extra time to work towards achieving their chosen outcomes.

In the last year individuals have been supported to apply for voluntary and work experience opportunities.

Some individuals have been able to spend time raising money for others and one client raised money for a number of wildlife charities supported by the staff from North Somerset Community Team.

The service user group, Our Project, has continued to meet over Zoom and has started to discuss equality, diversity and inclusion. They had a learning event which was supported by Bristol Hate Crime service and they hope to use this learning to review Freeways’ policy and guidance.

Staff undertook additional training in relation to infection control and most staff also undertook Restore 2 training which allows for staff to take and record basic health measurements. Although this was initially introduced to reduce the risk of undiagnosed Sepsis, it is also useful to measure oxygen levels in people with Covid-19 to ascertain if they need additional support from the health service.

Many of our staff also achieved their own personal outcomes over the year with six staff completing their diplomas at level 3 or 5 and some staff completing fundraising activities for the charity including a sponsored wild water swim to raise money for the hydrotherapy pool which raised over £500.

Freeways continues to support wider initiatives to ensure quality across the region including:

Page 5

(A Company Limited by Guarantee)

FREEWAYS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Evolution

Freeways has always been a creative organisation that has moved to find solutions for the people it supports and the last year has been no different.

A number of services have started to move towards supporting cashless solutions for the people we support. We have been working in conjunction with a specialist pre-payment card provider to trial its use in a number of services and the aim is to roll this out to other services. We have been asked by the local authority to feedback to them on this pilot so the learning can be cascaded to other learning disability services but also wider to the older person services where people need to retain money skills but with additional safeguards in place.

Freeways worked with North Somerset Council to transfer a community service from another provider who was pulling out of their contract. This led to a couple of staff transferring to Freeways through TUPE and joining our long-standing team in the area. The team have met a number of client outcomes including improvements to their home to meet their long term health needs, and another no longer requires additional support from a personal assistant. One family member, who was uncertain about the change in contract, has given feedback stating how her relative is more confident and the flexible approach from Freeways has improved her relative’s independence.

Positive Behaviour Support services

Freeways have continued to expand their work and expertise in offering positive behaviour support for adults with learning disabilities demonstrating more challenging behaviours and now services are running on two separate sites supporting this client group. A barrier remains staff recruitment and Freeways are planning greater innovation in their recruitment processes over the next year to ensure these services continue to flourish.

Morley House

Freeways have been working with their main landlord, Freeways Trust, to convert this building from a residential care home to six supported living one bedroom flats. Three individuals within Freeways have been identified as suitable for the service and an implementation team are assessing a number of external referrals to see if they would benefit from the new service. The building was completed in May 2021 and the first three clients moved in at the end of May. It is expected that the service will be full by the end of August 2021.

This year we have been reviewing our Personal Care Registration to ensure our services remain fit for the future and our aim over the next year is to complete this review and register further managers to then be able to more easily grow our supported living services.

We also plan to introduce an Equality, Diversity and Inclusion Strategy this year which will look at positive action to reduce barriers for the people we support and our staff from reaching their potential.

During the last year a working group has been developing a Digital Strategy which was approved by the Trustees in May 2021. The Strategy will support clients and staff to make greater use of technology to improve outcomes for clients, working lives for staff and the effectiveness and efficiency of the organisation.

Page 6

(A Company Limited by Guarantee)

FREEWAYS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The Trustees have reviewed the reserves policy and examined the need for free reserves in light of the predominant risks to the organisation, its working capital requirements, the 2021-22 budget and future plans. The policy continues to be set at building free reserves to at least two month’s expenditure (currently £1,097k) to provide security against unexpected fluctuations in income and expenditure due to short term service vacancies, changes in commissioning plans, costs running higher than expected and the investment in developing new services.

Free reserves, excluding the pension reserve deficit at 31 March 2021 were £1,687k (2020 £1,293k) and there meet the target level. The organisation will look to generate surpluses in future years to retain adequate reserves, however, the plans set out below may necessitate some investment of reserves. The Trustees will continue to review the reserves policy regularly and amend it accordingly dependent on the strategic plans of the organisation and the changes in circumstances.

The pension reserve deficit at 31 March 2021 of £220k (2019 £771k) has been excluded from the calculation of free reserves on the basis that the cash flow impact is limited to the annual payment agreed under the pension scheme recovery plans.

c. Principal risks and uncertainties

The Board of Trustees considers risk as an integral part of all strategic discussions. During the year Trustees have considered and assessed the risks to which the charity is exposed as part of their decision-making process.

d. Financial review – Making Every Penny Count

The funding environment continues to be difficult for social care but we have worked hard to ensure that we receive the correct level of funding for the work undertaken and minimise expenditure whilst maintaining good quality care.

Total incoming resources for the year were up 17% compared to the previous year (£7,130k compared to £6,091k) due to a 10% increase in income from charitable activities and government grants of £481k. This reflects additional activity within a number of services and government grants in relation to Covid-19.

Expenditure on charitable activities rose by 8% (£6,584k compared to £6,049k) due to additional expenditure relating to Covid-19 mainly funded through government grants. Additional expenditure was incurred on infection control measures such as personal protective equipment, additional cleaning, block booking agency staff and providing taxis so that staff did not need to use public transport.

The operating surplus for the year before actuarial gains/(losses) on the pension scheme was £546k (2020: £42k). After the actuarial gain of £392k (2020: loss £161k) on the defined benefit pension scheme there was a net surplus of £938k (2020: deficit of £119k) in the year.

Page 7

(A Company Limited by Guarantee)

FREEWAYS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The defined benefit pension scheme, which was closed to future accruals in 2007, was subject to a triennial valuation at 31 March 2018 and has an assessed deficit of £220k (2020: £771k) at the year-end after receiving regular employer contributions of £128k and an additional one off £98k contribution in the year. The additional contribution was in part to cover the additional cost of equalising the Guaranteed Minimum Pension in accordance with the Lloyds Bank judgement in 2018 and subsequent cases and guidance. The Scheme Actuary has made an initial estimate that the cost of this equalisation is £50k.

The Supreme Court judgement on the payment to staff who carry out sleep in shifts was published in March 2021. The outcome is to clarify that Freeways has no historic liability in respect of sleep in payments and clarifies the requirements for the future.

e. Covid-19

The Trustees have reviewed the overall impact on the financial position of the charity and concluded that the impact of COVID-19 does not currently call into question the long-term sustainability. The position will continue to be monitored and appropriate action taken if required.

Structure, governance and management

a. Structure, governance and management

Freeways was established in December 1987. The governing document is the Memorandum and Articles of Association of the company and members of the Board of Trustees are the Directors of the company.

The company is limited by guarantee having no share capital. In the event of the company being wound up every member undertakes to contribute to the assets of the company up to an amount not exceeding £1.

The Trustees have delegated day to day management of the charity to the Chief Executive Officer who reports on the performance against strategic plans set and agreed by the Trustees.

New trustees invited to join the board are selected on the basis of their experience and skills. They are invited to visit a number of homes and to meet with existing board members before any appointment is approved. One new Trustee was appointed after the end of the year, following this process.

Trustees are encouraged to attend appropriate external training events where these would facilitate the understanding of their role, and they are given at least bi-monthly updates by the Chief Executive Officer and, where appropriate, other members of the Senior Management Team.

A separate charity, Freeways Trust (Charity no.1102216), has many common trustees but is not under common control although both organisations have similar charitable objects. Freeways currently leases most of its properties from Freeways Trust, as reflected in the accounts.

None of the Trustees receives remuneration or other benefit for their work with the charity. Any connection between a Trustee and a related party or other organisation with which the charity co-operates must be disclosed in the same way as any other contractual relationship with a related party. The charity’s wholly owned subsidiary Leigh Court Services Ltd was established to undertake trading activities on behalf of Freeways. All profits for the subsidiary undertaking are gifted to the charity (see note 12 of the accounts).

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

Page 8

(A Company Limited by Guarantee)

FREEWAYS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

b. Key management personnel remuneration

The Trustees consider the Board of Trustees and the Senior Management Team to comprise the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis.

Statement of Trustees' responsibilities

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

Company law requires the Trustees to prepare financial statements for each financial . 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 Group and the charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and 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 Group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Page 9

FREEWAYS

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Auditor

The auditor, Mazars LLP, has indicated its willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on and signed on their Aug 9, 2021 behalf by:

F s Morton

F s Morton (Aug 9, 2021 10:52 GMT+1)

F S Morton Chair Date: Aug 9, 2021

Page 10

FREEWAYS (A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FREEWAYS

Opinion

We have audited the financial statements of Freeways (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustee's 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 group's and the parent 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 11

(A Company Limited by Guarantee)

FREEWAYS

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FREEWAYS (CONTINUED)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees Report.

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

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 9, the Trustees 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 directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group’s and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 12

FREEWAYS (A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FREEWAYS (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the group and the parent charitable company, and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related posting manual journal entries to manipulate financial performance and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Page 13

(A Company Limited by Guarantee)

FREEWAYS

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FREEWAYS (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Marchant (Senior Statutory Auditor)

for and on behalf of Mazars LLP Chartered Accountants Statutory Auditor 90 Victoria Street

Bristol BS1 6DP

Date: Aug 10, 2021

Page 14

FREEWAYS

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Government grants, donations and
legacies
3
Charitable activities
4
Other trading activities
5
Investments
Total income
Expenditure on:
Charitable activities
Total expenditure
Remeasurement gains/(losses) on
defined benefit scheme
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£000
223
6,644
-
1
6,868
6,315
6,315
392
945
544
945
1,489		 Restricted
funds
2021
£000
263
(1)
-
-
262
269
269
-
(7)
(19)
(7)
(26)		 Total
funds
2021
£000
486
6,643
-
1
7,130
6,584
6,584
392
938
525
938
1,463		 Total
funds
2020
£000
27
6,050
9
5
6,091
6,050
6,050
(161)
(120)
645
(120)
525

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 19 to 37 form part of these financial statements.

Page 15

FREEWAYS

(A Company Limited by Guarantee) REGISTERED NUMBER: 02209114

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
Defined benefit pension scheme liability
22
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 517
1,614
2,131
(487)		 2021
£000
39
39
1,644
1,683
1,683
(220)
1,463
(26)
1,489
1,463		 491
1,217
1,708
(433)		 2020
£000
21
21
1,275
1,296
1,296
(771)
525
(19)
544
525

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on _______ and signed on their behalf by: Aug 9, 2021

F s Morton

F s Morton (Aug 9, 2021 10:52 GMT+1)

F S Morton Chair

P.J.Laszlo

P.J.Laszlo (Aug 9, 2021 14:40 GMT+1)

P J Laszlo

The notes on pages 19 to 37 form part of these financial statements.

Page 16

FREEWAYS

(A Company Limited by Guarantee) REGISTERED NUMBER: 02209114

CHARITY BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
Defined benefit pension scheme liability
22
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 509
1,600
2,109
(487)		 2021
£000
39
39
1,622
1,661
1,661
(220)
1,441
(26)
1,467
1,441		 486
1,181
1,667
(430)		 2020
£000
21
21
1,237
1,258
1,258
(771)
487
(19)
506
487

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on _______ and signed on their behalf by: Aug 9, 2021

F s Morton

F s Morton (Aug 9, 2021 10:52 GMT+1) F S Morton

P.J.Laszlo

P.J.Laszlo (Aug 9, 2021 14:40 GMT+1)

P J Laszlo

The notes on pages 19 to 37 form part of these financial statements.

Page 17

FREEWAYS

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£000
422
1
(26)
(25)
397
1,217
1,614		 2020
£000
31
5
(10)
(5)
26
1,191
1,217

The notes on pages 19 to 37 form part of these financial statements

Page 18

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

Freeways is a private charitable company limited by guarantee, registered in England & Wales, company registered number 02209114 and registered with the Charity Commission, charity number 298603. Its registered office is Leigh Court Day Centre, Pill Road, Bristol, BS8 3RA.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Freeways meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 Going concern

The Trustees consider that there is no material uncertainties about Freeways' ability to continue as a going concern. The Covid-19 pandemic and resulting emergency measures have not had a detrimental impact on the finances of the charity. The increased expenditure incurred to maintain services and protect staff and service users was offset by the availability of support grants and government support mechanisms such as the coronavirus job retention scheme. These have allowed the charity to maintain operations without depleting reserves.

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations are included on a received basis and income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Page 19

FREEWAYS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.

Direct costs, including directly attributable salaries, are allocated on an actual basis to the activity. Overheads and other salaries are allocated between expense headings on the basis of time spent.

Governance costs include the costs of governance arrangements which relate to the general running of the charity. These activities provide the governance infrastructure which allows the charity to operate and to generate the information required for public accountability. They include the strategic planning processes that contribute to the future development of the charity.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £10,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition are included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

Page 20

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.8 Debtors

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

2.9 Cash at bank and in hand

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

2.10 Liabilities

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

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

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

2.11 Financial instruments

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

2.12 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term.

2.13 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

The charity operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 31 March 2018.

Page 21

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.14 Fund accounting

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by grantors or which have been raised by the Group for particular purposes. The costs 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.

3. Income from government grants, donations and legacies

Donations
Grants
Government grants
Donations
Grants		 Unrestricted
funds
2021
£000
3
-
220
223
Unrestricted
funds
2020
£000
23
-
23		 Restricted
funds
2021
£000
-
2
261
263
Restricted
funds
2020
£000
-
4
4		 Total
funds
2021
£000
3
2
481
486
Total
funds
2020
£000
23
4
27

Page 22

(A Company Limited by Guarantee)

FREEWAYS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from charitable activities

Residential and community care
Hydrotherapy services
Total 2021
Residential and community care
Hydrotherapy services
Total 2020		 Unrestricted
funds
2021
£000
6,577
67
6,644		 Restricted
funds
2021
£000
(1)
-
(1)
Unrestricted
funds
2020
£000
5,862
188
6,050		 Total
funds
2021
£000
6,576
67
6,643
Total
funds
2020
£000
5,862
188
6,050

5. Income from other trading activities Income from fundraising events

Conference & Room Hire
Unrestricted
funds
2020
£000
Conference & Room Hire
9		 Total
funds
2021
£000
-
Total
funds
2020
£000
9

Page 23

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Analysis of expenditure by activities

Activities
undertaken
directly
2021
£000		 Support
costs
2021
£000		 Total
funds
2021
£000
Residential and Community care 5,362 1,049 6,411
Hydrotherapy services 146 27 173
5,508 1,076 6,584
Activities
undertaken
directly
2020
£000		 Support
costs
2020
£000		 Total
funds
2020
£000
Residential and Community care 4,812 991 5,803
Hydrotherapy services 215 32 247
5,027 1,023 6,050

The tables above includes £269k (2020: £11k) relating to expenditure on restricted funds and £6,315k (2020: £6,039k) relating to expenditure on unrestricted funds.

7. Governance costs

Auditors' remuneration
Auditors' non audit costs
Trustee insurance
Support costs
Staff costs		 2021
£000
11
2
4
2
7
26		 2020
£000
8
2
4
2
6
22

Page 24

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Auditors' remuneration

The Auditor's remuneration amounts to an Audit fee of £11k (2020: £8k), and preparation of financial statements and other services of £2k (2020 - £2k).

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£000
4,160
301
76
4,537		 Group
2020
£000
3,859
269
68
4,196		 Company
2021
£000
4,160
301
76
4,537		 Company
2020
£000
3,859
269
68
4,196

The average number of persons employed by the charity during the year was as follows:

Care of residents
Administration		 Group
2021
No.
214
19
233		 Group
2020
No.
210
20
230

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 1 1
In the band £70,001 - £80,000 1 1

The key management personnel comprise the Chief Executive, the Finance Director, the four Senior Managers, the HR Manager and the Trustees. The total employee benefits of the key management personnel of the charity was £336k (2020: £323k).

Page 25

(A Company Limited by Guarantee)

FREEWAYS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

The number of trustees to whom retirement benefits are accruing under defined contribution schemes amount to none (2019: none).

Indemnity insurance was purchased at a cost of £4k (2020: £4k) to cover trustees, directors and employees.

11. Tangible fixed assets

Group and Company

Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Fixtures and
fittings
£000
457
26
483
436
8
444
39
21

Page 26

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Principal subsidiary

The charity owns 100% of the shares in one trading subsidiary, Leigh Court Services Limited (a private company registered in England & Wales, registered number 06434021), which undertakes trading activities on behalf of Freeways. All profits of the subsidiary undertaking are gifted to the charity. Trading results for the active subsidiary the year ended 31 March 2021 are shown below.

Turnover
Cost of sales
Gross profit
Administrative expenses
Profit before Gift Aid payment
Gift Aid payment
Profit after Gift Aid payment
Net assets		 2021
£000
30
(11)
19
(1)
18
(18)
-
21		 2020
£000
64
(29)
35
(1)
34
(34)
-
38

13. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Group
2021
£000
279
13
225
517		 Group
2020
£000
379
6
106
491		 Company
2021
£000
279
13
217
509		 Company
2020
£000
374
6
106
486

Page 27

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£000
79
66
33
309
487		 Group
2020
£000
105
63
17
248
433		 Company
2021
£000
79
66
32
310
487		 Company
2020
£000
105
63
17
245
430

Deferred income relates to income from charitable activities received in advance of the year-end relating to the forthcoming period.

Deferred income for 2021 was £119,468 (2020: £71,812). The amounts deferred at 31 March 2020 were released during the period and the amounts deferred at 31 March 2021 will be recognised during the year ended 31 March 2022.

15. Financial instruments

Financial assets
Financial assets measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost		 Group
2021
£000
2,089
Group
2021
£000
286		 Group
2020
£000
1,667
Group
2020
£000
360

Financial assets measured at amortised cost comprise cash at bank and in hand, trade and other debtors and accrued income.

Financial liabilities measured at amortised cost comprise trade and other creditors and accruals.

Page 28

FREEWAYS

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds

Statement of funds - current year

Designated
funds
Hardship fund
Pensions
Reserve
General funds
General Funds -
all funds
Total
Unrestricted
funds
Restricted
funds
Working and
learning
opportunities
Workforce
Development
Fund
Covid-19 Grant
Total of funds		 Balance at 1
April 2020
£000
22
(771)
(749)
1,293
544
6
(25)
-
(19)
525		 Income
£000
-
-
-
6,868
6,868
-
1
261
262
7,130		 Expenditure
£000
-
-
-
(6,315)
(6,315)
-
(8)
(261)
(269)
(6,584)		 Transfers
in/out
£000
-
159
159
(159)
-
-
-
-
-
-		 Gains/
(Losses)
£000
-
392
392
-
392
-
-
-
-
392		 Balance at
31 March
2021
£000
22
(220)
(198)
1,687
1,489
6
(32)
-
(26)
1,463

Page 29

(A Company Limited by Guarantee)

FREEWAYS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds (continued)

Statement of funds - prior year

Designated
funds
Hardship fund
Pensions
Reserve
General funds
General Funds -
all funds
Total
Unrestricted
funds
Restricted
funds
Working and
learning
opportunities
Workforce
Development
Fund
Total of funds		 Balance at
1 April 2019
£000
22
(721)
(699)
1,356
657
6
(18)
(12)
645		 Income
£000
-
-
-
6,086
6,086
-
4
4
6,090		 Expenditure
£000
-
-
-
(6,038)
(6,038)
-
(11)
(11)
(6,049)		 Transfers
in/out
£000
-
111
111
(111)
-
-
-
-
-		 Gains/
(Losses)
£000
-
(161)
(161)
-
(161)
-
-
-
(161)		 Balance at
31 March
2020
£000
22
(771)
(749)
1,293
544
6
(25)
(19)
525

Page 30

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Hardship Fund - The Trustees have set up a hardship fund for service users of Freeways who have found themselves in financial need that cannot be met from other sources. There is a formal application process to access the fund.

Work & Learning Opportunities - grant from Learning Disability Development Fund to fund an employment development worker to support people with learning disabilities within Freeways into paid employment.

Workforce Development Fund - funding from the Department of Health and Social Care which is disbursed by Skills for Care. It supports the cost of qualifications and learning programmes together with the cost of acquiring these qualifications including those not yet completed and reimbursed. When the current qualifications are completed the level of reimbursement has been assessed to be sufficient to eliminate the current deficit.

Covid-19 Grant

The Covid-19 grant reserve reflects three separate Covid related grants received. The grants were for infection control, rapid testing and workforce capacity and have been fully expended in the year.

17. Summary of funds

Summary of funds - current year

Designated
funds
General funds
Restricted funds		 Balance at 1
April 2020
£000
(749)
1,293
(19)
525		 Income
£000
-
6,868
262
7,130
Income
£000
-
6,086
4
6,090		 Expenditure
£000
-
(6,315)
(269)
(6,584)
Expenditure
£000
-
(6,038)
(11)
(6,049)		 Transfers
in/out
£000
159
(159)
-
-
Transfers
in/out
£000
111
(111)
-
-		 Gains/
(Losses)
£000
392
-
-
392
Gains/
(Losses)
£000
(161)
-
-
(161)		 Balance at
31 March
2021
£000
(198)
1,687
(26)
1,463
Balance at
31 March
2020
£000
(749)
1,293
(19)
525
Summary of funds - prior year
Designated
funds
General funds
Restricted funds		 Balance at
1 April 2019
£000
(699)
1,356
(12)
645

Page 31

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£000		 Restricted
funds
2021
£000
Total
funds
2021
£000
Tangible fixed assets 39 -
39
Current assets 2,131 -
2,131
Creditors due within one year (461) (26)
(487)
Provisions for liabilities and charges (220) -
(220)
1,489 (26)
1,463

Analysis of net assets between funds - prior year

Unrestricted
funds
2020
£000		 Restricted
funds
2020
£000
Total
funds
2020
£000
Tangible fixed assets 21 -
21
Current assets 1,708 -
1,708
Creditors due within one year (414) (19)
(433)
Provisions for liabilities and charges (771) -
(771)
544 (19)
525

Page 32

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement
Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Increase in creditors
Losses/(gains) on defined benefit pension scheme
Income on defined benefit pension scheme
Net cash provided by operating activities
20.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
21.
Analysis of changes in net debt
Cash at bank and in hand		 of Financial
At 1 April
2020
£000
1,217
1,217		 Group
2021
£000
938
8
(1)
(26)
54
(392)
(159)
422
Group
2021
£000
1,614
1,614
Cash flows
£000
397
397		 Group
2020
£000
(120)
4
(5)
98
4
161
(111)
31
Group
2020
£000
1,217
1,217
At 31 March
2021
£000
1,614
1,614

Page 33

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £76k (2020: £68k).

The group operated a Defined Benefit Pension Scheme. The assets of the Scheme are held in a separate trustee administered fund. The Scheme is closed to future accrual. A schedule of contributions is agreed between the Company and the trustees after each comprehensive actuarial valuation.

The most recent comprehensive actuarial valuation took place as at 31 March 2018. Under the current schedule of contributions, the Company shall pay contributions of £128k per annum until 31 December 2026. The Company shall also pay the expenses of administering the Scheme.

Independent consulting actuaries, Quantum Advisory, update the actuarial valuations at each balance sheet date.

Principal actuarial assumptions at the Balance Sheet date:

At 31 March At 31 March
2021 2020
% %
Discount rate at 31 March 2.00 2.30
Rate of price inflation (RPI) 3.70 3.10
Rate of increase for pensions in deferment 2.70 2.10
Rate of pension increases: pensions from 6 April 1997 to 31 March 2001 3.70 3.60
Rate of pension increases: pension accrued from 1 April 2001 3.20 3.00
At 31 March At 31 March
2021 2020
Years Years
Mortality rates (in years)
- for a male aged 65 now 21.5 21.4
- at 65 for a male aged 45 now 22.5 22.4
- for a female aged 65 now 23.5 23.3
- at 65 for a female aged 45 now 24.7 24.5

Page 34

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Pension commitments (continued)

The Group's share of the assets in the scheme was:

Equities and Hedge funds/Absolute return
Commodities
Fixed Interest
Cash
Annuities
Total fair value of assets		 At 31 March
2021
£000
3,460
205
985
228
86
4,964		 At 31 March
2020
£000
2,609
205
603
420
85
3,922

The actual return on scheme assets was £948k (2020 - £267k loss).

The amounts recognised in the Consolidated Statement of Financial Activities are as follows:

Past service cost
Expected return on scheme assets
Interest on obligation
Total amount recognised in the Consolidated Statement of Financial
Activities		 2021
£000
(51)
91
(107)
(67)		 2020
£000
-
104
(121)
(17)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Interest cost
Benefits paid
Past service costs
Actuarial (gain)/loss
Closing defined benefit obligation		 2021
£000
4,693
107
(132)
51
465
5,184		 2020
£000
4,875
121
(93)
-
(210)
4,693

Page 35

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Pension commitments (continued)

Movements in the fair value of the Group's share of scheme assets were as follows:

Opening fair value of scheme assets
Interest income on scheme assets
Return less interest income on scheme assets
Contributions by employer
Benefits paid
Closing fair value of scheme assets		 2021
£000
3,922
91
857
226
(132)
4,964		 2020
£000
4,154
104
(371)
128
(93)
3,922

The cumulative amount of actuarial gains and losses recognised in the Consolidated Statement of Total Recognised Gains and Losses was £2,566k losses (2020 - £2,499k losses).

The group expects to contribute £128k to its Defined Benefit Pension Scheme in the year 31 March 2022.

The mortality assumptions as at 31 March 2021 were before and after retirement 100% of S2PMA and S2PFA mortality tables with improvements in line with the CMI_2017 Core improvements with a long term improvement rate of 1% per annum.

Accounts for the current and previous four periods are as follows:

Defined benefit pension schemes

2021 2020 2019 2018
2017
£000 £000 £000 £000
£000
Defined benefit obligation (5,184) (4,693) (4,875) (4,754)
(4,885)
Scheme assets 4,964 3,922 4,154 3,962
3,910
Deficit (220) (771) (721) (792)
(975)
Total amount recognised in other comprehensive income
Return less interest income on scheme assets
Actuarial gain/(loss) on liabilities		 2021
£000
857
(465)
392		 2020
£000
(371)
210
(161)

Page 36

FREEWAYS (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

23. Operating lease commitments

At 31 March 2021 the Group and the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£000
26
30
56		 Group
2020
£000
21
12
33		 Company
2021
£000
26
30
56		 Company
2020
£000
21
12
33

24. Related party transactions

The Trustees also represent the majority of the Board of Trustees of Freeways Trust, a charitable company that provides residential and day care services building facilities for persons with learning disabilities. Freeways leased the charity's properties and paid £468k (2020: £502k) to Freeways Trust in the year ended 31 March 2021. Freeways Trust paid £10k (2020: £10k) to Freeways in respect of management charges and was paid £39k (2020: £25k) by Freeways in respect of management charges. At the year end Freeways owed Freeways Trust £36k (2020: £34k) and was owed £3k (2020: £3k) by Freeways Trust.

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