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2021-03-31-accounts

SHAFTESBURY HOMES & ARETHUSA

Company Limited by Guarantee Registered Charity

Trading as SHAFTESBURY YOUNG PEOPLE

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2021

Charity Registration Number: 311697

Company Number: 81186

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COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 31 MARCH 2021

Contents

Chairman’s Foreword ............................................................................................................................. 3 Reference and Administrative Details .................................................................................................... 4 Trustees’ Report ...................................................................................................................................... 5 Structure, Governance and Management ............................................................................................ 5 Related Entities ................................................................................................................................... 6 Objectives ........................................................................................................................................... 7 Strategic Report .................................................................................................................................. 7 Activities, Achievements and Performance 2020-21 ...................................................................... 7 Plans for the future - grant-making ................................................................................................. 9 Fundraising ................................................................................................................................... 10 Public Benefit ................................................................................................................................ 11 Financial Review .......................................................................................................................... 11 Risk Management ......................................................................................................................... 12 Statement of trustees’ responsibilities ............................................................................................... 14 Independent Auditors’ Report ............................................................................................................... 16 Statement of Financial Activities for the year ended 31 March 2021 ................................................... 19 Balance Sheet as at 31 March 2021 ...................................................................................................... 20 Cash flow statement for the year ended 31 March 2021 ....................................................................... 21 Notes to the financial statements ........................................................................................................... 22

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COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

CHAIRMAN’S FOREWORD INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 31 MARCH 2021

Chairman’s Foreword

Thank you for taking the time to read our 2021 Report & Financial Statements. As reported last year, following extensive discussions and learning, SYP has now re-orientated as a charitable trust providing grants to a range of entities and activities that will continue to fulfil our charitable goals. The remaining assets from the Arethusa Venture Centre are being readied for sale in 2021/22, the proceeds of which will be added to our invested funds to provide additional income and allow us to expand our grant programme. Further information on our strategy going forward can be found in the “Plans for the future” section of the Trustees Report.

In October 2020, the contract for Alternative Provision education to excluded young people at our Keresley Centre school was transferred to new management; Values Education for Life (VEFL).

This year, as we continued restructuring, closing, and re-focusing our services, we have experienced corresponding reductions in revenues from charitable activities, and in charitable expenditure. Other income has been significantly increased by the sale of part of the Arethusa Venture Centre site. Our free reserves are now £578,000, which remains in line with our base of £600k.

This has been a very difficult time for all concerned at SYP, compounded by the Covid-19 virus pandemic and consequent very uncertain future operating environment. So, this year I again express my very considerable thanks and great appreciation to our staff, our donors, and to the great support of my fellow trustees.

Brian Scott

Chair of the Trustee Board

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COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

REPORT AND FINANCIAL STATEMENTS INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 MARCH 2021

Reference and Administrative Details

COMPANY REGISTRATION NUMBER

81186

PATRON

Her Majesty The Queen

BOARD OF TRUSTEES & DIRECTORS

B Scott – Chairman E Bancroft - Treasurer R Black - Deputy Chairman C Searle N Bristow (appointed 24 June 2020) P Abbott (appointed 24 June 2020) S Cheal (appointed 24 June 2020) D Bunce (resigned 24 June 2020)

REGISTERED OFFICE

10 Orange Street Haymarket London WC2H 7DQ

INVESTMENT MANAGERS

CHARITY REGISTRATION NUMBER 311697

WEBSITE

www.shaftesburyyoungpeople.org

AUDITORS

MHA MacIntyre Hudson, 71 New Dover Road, Canterbury, Kent, CT1 3DZ

SOLICITORS

Bates Wells Braithwaite 10 Queen Street Place, London EC4R 1BE

BANKERS

The Royal Bank of Scotland Plc 1 Fleet Street, London, EC4Y 1BD

Waverton Investment Management LTD 16 Babmaes St, St. James's, London SW1Y 6AH

CCLA Senator House, 85 Queen Victoria St, London EC4V 4ET

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COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 MARCH 2021

Trustees’ Report

The Trustees are pleased to present the report and financial statements for Shaftesbury Homes and Arethusa for the year ended 31 March 2021. They show net outgoing resources for the year of £731k (2020 net incoming resources £2.8m).

The Trustees confirm that the Annual Report and Financial Statements of the company comply with the current statutory requirements, the requirements of the 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 (FRS 102) (effective 1 January 2015) and update Bulletin 1.

The information included on page 4 forms part of this report.

Structure, Governance and Management

Shaftesbury Homes and Arethusa was founded in 1843 and incorporated under Royal Charter in 1904. At their meeting on 28 March 2009 the Trustees agreed to adopt the working name of ‘Shaftesbury Young People’ (“SYP”) with effect from 2 April 2009.

SYP’s governing document is its Memorandum and Articles of Association, last revised at an extraordinary general meeting held on 3 July 2009. It does not have a share capital; the liability of the members being limited by guarantee.

SYP is governed by the Board of Trustees who are appointed on the basis of their personal interest, commitment and skill. Currently there are seven Trustees. These include three new appointments recruited through a targeted process to bring grant making and fundraising expertise to the Board. One Trustee resigned; David Bunce an Arethusa Old Boy, following the closure of the Arethusa Venture Centre. The Board wish to thank David for his passionate support of the charity and his continued work along with the Arethusa Old Boy Association members, to keep the stories and history of the training ships alive.

SYP seeks to ensure a good balance of Trustees through open and fair recruitment practices. This has led to a good balance of Trustees from a wide range of backgrounds and allowed us to target those with the required skills and experience. We are always seeking to develop the Trustee body and welcome interest from anyone who would like to become involved. Trustees are provided with induction information on their duties and responsibilities including the Charity Commission Trustee Handbook, Essential Trustee Guidance (CC3) and Conflicts of Interest Guidance (CC29). New Trustees are asked to attend trustee training courses delivered by suitable external providers. Existing trustees are encouraged to attend refresher training every other year. Trustees are encouraged to request further information on any issues relevant to their position from the Board and Senior Management Team. All potential Trustees are subject to pre-appointment checks including Enhanced Disclosure and Barring checks. Once appointed all Trustees undertake Child Protection Training.

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SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 31 MARCH 2021

For the Board to be capable of furthering the objects of SYP, ideally the Board should include members with skills and expertise in the following areas:

Social Care with respect to
children and young people;		 Education, training and employment
of children and young people;
Finance; Fundraising;
Law; PR and Communications;
Strategic and Business
Planning;

In addition, the Trustees as a body should reflect the age, ethnicity and gender differences in society and be able to network and influence on behalf of SYP.

The Trustees are responsible for setting the strategic direction of the organisation. Day-to-day management of SYP is delegated to the Grants Manager.

Following the end of the 2015-20 strategy, the next annual strategy day has been moved to September 2021 to enable the Trustees to be informed by its first round of Grant making. The Charity Commission serious incident reporting guidance is reviewed by the Board annually; in addition it is provided to all new trustees upon being appointed to the Board. Reviewing the Charity Commission serious incident reporting guidance on an annual basis assists trustees to identify serious incidents and report them to the Commission, thereby enabling them to sign the SYP Annual Return declaration in confidence that no relevant incident has been left unreported.

The Board schedules at least four meetings per year, with additional meetings in full or in subcommittees as necessary. Responsibility for Child Protection is through the Grants Manager and Trustees; all of whom have all undertaken Child Protection training. The SYP Investment Committee meet when required. The terms of reference and duties of the Committees are reviewed annually and are based on guidance notes issued by the Institute of Chartered Secretaries and Administrators which reflect the UK Corporate Governance Code (April 2016).

Objectives

The objects of the Charity are to support and assist children and young people in need or in care in order to relieve their needs for the public benefit.

SYP supports and assists children and young people in need or in care by all charitable means including by helping them to:

In doing so SYP has regard to the principles of the United Nations Convention on the Rights of the Child.

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COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 MARCH 2021

Strategic Report

Activities, Achievements and Performance 2020-21

The means by which SYP implements its charitable objectives are outlined below:

Grant making

The Trustees successfully recruited three new Trustees to support the new strategic direction and activities of the charity, namely grant making to small organisations providing support to children and young people in London which meet our charitable objectives as above.

A Grants manager with experience of setup and management of grant making programmes was recruited in September 2020. As part of the restructure, the charity redeveloped its website and social media presence. This included the new working title for the charity of SYP Trust and the strapline “For children and Young People” to clearly establish our current identity and activities. SYP Trust invited its first applicants to apply before the end of March 2021.

Our website was fully rebuilt and rebranded as SYP Trust to promote awareness of our grant making activities and put our new strategy at the forefront of what we do. The new website launched in February 2021.

Alternative Provision Education and discontinued operations

Discontinued operations have been presented in the Statement of Financial Activities with respect to the Keresley School, as well as some ongoing costs in relation to the closure of the Arethusa Venture Centre, which ceased operations during the year to March 2019.

Work continues to realise the value of the remaining part of the land and buildings of the Arethusa Venture Centre site. The asset is currently held in fixed assets (note 9) and based on preliminary assessments an impairment charge against the market value of this site was recognized during the year, amounting to £323k.

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SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 MARCH 2021

Plans for the future:

Grant-making

As noted in the previous two reports, external and other circumstances have obliged SYP to change its approach to its charitable objectives several times over the decades since the Charity was established in 1843. The latest iteration of this has been the board’s decision to cease all direct service-delivery activities and use its remaining assets to provide a regular flow of funds to make grants to support disadvantaged young persons.

As noted previously, the objective of the new grant-making trust is to support disadvantaged young people flexibly, and perhaps to help develop new models of care and support. In pursuing our work SYP will seek to collaborate with a wide range of other organisations including charities, local authorities, trusts, and foundations. Trustees view the new charitable trust as a return to the spirit of innovation that characterised the charity in its early years.

Our grant programme aims to distribute circa £100,000 per annum in total to our successful applicants, dependent on the performances of our investments. Grant recipients will be stewarded by a nominated member of the Board or the Grants Manager.

We aim to help support our partner organisations to develop and attract further funding.

We aim to establish a network for our partner organisations to collaborate and share knowledge.

We aim to promote the most innovative, effective and scalable case studies with other funders and organisations delivering in the sector to help replicate best practice and inspire similar projects.

Structure, Governance and Management

The Trustees have committed to improving on equality, diversity and inclusion (EDI) throughout the charity; from our grant making up to our Trustee Board. Our aim is to create a Board that includes lived or living experience of all or most of the areas we wish to target within our strategy. Significant work will be done to ensure we include our beneficiary group in a meaningful and positive way. Our ultimate aim is to be able to welcome young people onto our Board of Trustees.

A Youth inclusion strategy will be devised alongside a new EDI policy and practice. The Charity will engage will invest in external support to ensure the work is high quality and meets the aims we set out to achieve.

Fundraising

Despite our change in focus, every donation continues to be hugely valuable and appreciated. Our Grant making model will allow us to achieve a healthy return on investment for donors, and we have successfully reduced our outgoings within the last six months of the year, with more to come. We are very grateful to our dedicated regular donors and to those new donors who have chosen to make a oneoff or initiate a new regular donation this financial year.

Thank you to all who responded to our GDPR mailout in the summer of 2020, it was wonderful to hear from so many of you and has allowed us to refresh our donor information.

Due to Covid-19 and our reduced resources following our service closures, we were not able to promote and support London 2020 Marathon runners. We are always grateful to anyone wishing to run to support our charitable cause, and hope to see our regular and new runners over the next year and beyond and would of course be delighted to support them on our social media as much as we can.

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SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 31 MARCH 2021

SYP is registered with the Fundraising Regulator. We are committed to complying with its Fundraising Promise and the standards for fundraising set out in the Code of Fundraising Practice. We also commit to the Fundraising Promise. The promise sets out our commitment that we make to our donors and the public to meet the standards in the code. There have been no reported failures to comply with the standards during the year. As part of SYP’s opt-in only approach to donor communication preferences we can report that the Charity received no requests to be removed from its mailing list.

We would like to extend our deepest thanks to all the families and executors who have made contact this year to notify the Charity about legacies. The Charity carries out a thorough research of all its legacy income, and 90% is in recognition of the life-changing support the individuals received during their time as residents in one of the Shaftesbury Homes or Arethusa Training Ship. We are proud of our history and it is a great honour to be remembered in the wills of our former young people and their families.

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SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 MARCH 2021

Public Benefit

The Trustees have considered the matter of public benefit and are satisfied that Shaftesbury Young People meets the two main principles, as follows:

Principle 1 – There must be an identifiable benefit.

The clear benefits delivered by SYP are those enshrined in “Every Child Matters” and all of its charitable activities are clearly targeted at delivering those outcomes for young people in need or in care.

Principle 2 – Benefit must be to the public or to a section of the public

It is the view of the Trustees that society (and therefore all of the public) benefits from enabling young people to make the best of their opportunities. The young people supported by SYP Grants are the section of the public most in need of pastoral care, education and personal development, which SYP’s Grant Programme aims to deliver to them.

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission in determining the activities undertaken by the Charity.

Financial Review

Full details of the results for the year are shown in the Statement of Financial Activities on page 19, and they are further analysed in note 3 on page 26. The total income for the year ended 31 March 2021 decreased to £0.9m (2020 £4m) and total expenditure decreased to £1m (2020 £1.2m). The resulting net decrease in funds for the year before unrealised gains or losses on investments was £146k (2020 net surplus of £2.8m).

The charity formerly had a trading subsidiary which was dissolved on 7 January 2020. The company contributed nil profits (2020: £23k in respect of 2019) to the charity via gift aid during the year.

Reserves Policy

Unrestricted funds

A structure for the risk-based assessment of the free reserves requirement was set by the Board in February 2018. This reduced the target for free reserves from £1.2m (2005) to £0.6m. This level was calculated taking into account the amount considered needed to enable the charity to fulfil its existing financial obligations, and to contribute towards future financial obligations arising from the loss of contracts or indeterminate risks. During the year free reserves increased from £4.4m to £4.7m as at 31 March 2021. All of the charity’s services came to an end in the current and previous year, as part of its transformation into a grant-making trust and therefore the Board of Trustees will review the free reserves minimum requirement again, following a current retendering process underway with all suppliers.

The term “free reserves” describes that part of a charity’s funds that is freely available. Free reserves exclude designated funds, endowments and restricted funds, and also any part of unrestricted funds not readily available for spending such as fixed assets.

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SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 MARCH 2021

Restricted funds

The Charity maintains a small number of restricted income funds and follows restricted funds management procedures when establishing and expending funds to facilitate compliance with donor intent. Costs charged to a restricted fund relate to the activities undertaken to further the specific charitable purposes the fund was established to support. These costs include both direct and support costs associated with the activities undertaken by the restricted fund. A reasonable allocation of support costs, reflecting costs associated with raising, investing and managing the restricted fund, are charged to the fund to which the cost relates. The Charity’s restricted income funds decreased to £137k (2020 £142k).

Endowment funds

The Charity has been through the process of obtaining permission from the Charity Commission to relax restrictions applicable to its endowment funds but as yet no use has been made of the funds following the granting of permissions in 2011 and 2012. These two permissions changed the status of the Charity’s endowment funds from permanent endowment to expendable endowment, meaning that although the Trustees are not under any obligation to spend the capital amounts, they can convert them to unrestricted or restricted income funds to be expended if they see fit. The income generated from endowment funds held for investment is spend on furthering SYP’s charitable objectives. During the year endowments have increased to £874k (2020: £779k).

Investment Policy

SYP’s investment policy requires a low risk, defensive portfolio and an income stream that does not require a high degree of fund manager involvement. At 31 March 2021 the actual split was 12% in fixed interest and 88% in equity funds. SYP is governed by The Trustees Act 2000 which provides wider powers of investment. All investments are held in Common Investment Funds or Collective Funds and are monitored by the Board with advice and assistance from the Treasurer.

Total investment income from these securities decreased to £31k (2020: £42k). In line with general stock market movements during the year and as a result of investments placed during the year, the market value of investments has increased from £757k in 2020 to £4.5m in 2021. Trustees consider investment performance during 2020-21 to be acceptable in light of market conditions.

The Trustees reserve the right to exclude companies that carry out activities contrary to the charity’s aims or from holding particular investments which damage the Charity’s reputation. The Trustees wish to preclude investment in tobacco or alcohol and these are defined as companies with more than 20% of their turnover in these activities.

Investment Performance

Waverton took on the investments for Shaftesbury Young People in February 2021, which makes up part of the year under review. Equity markets had recovered well since the health-crisis induced sell off in the first quarter of 2021, but risk assets in general paused in the first quarter of 2021. This turned out to be a good time to make a change as prices were reasonably stable, although the traditionally lower risk assets such as bonds were under pressure during the quarter. The value of the Shaftesbury portfolio declined in value modestly following the investment into the LF Waverton Growth and Income Fund for Charites, returning -0.9% to 31 March 2021. By comparison global equites declined by -0.4% and UK Government Bonds fell by -3.8%.

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COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 MARCH 2021

Risk Management

The Board participates in a formal risk management process to assess business risks and to implement risk management strategies

The Board review the risk register on at least an annual basis, responding to risks as they arise. Responsibility for the Risk Register is shared among the whole Board.

The Charity Commission’s risk management guidance is followed by the Charity. This involves identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying the means of mitigating the risks.

Principal risks and uncertainties

The principal risks and uncertainties facing the Charity and how we endeavour to mitigate these are:

Financial sustainability for the long-term Financial sustainability for the long-term
Risk Failure to achieve long-term financial sustainability through restructuring of the
Charity’s services and operations, liquidation of land assets and appropriate
investment of proceeds. Consequently, leading to the inability to deliver charitable
objects in the long-term, irreversible depletion of free reserves, eventual charity
failure.
Mitigation Implementation of transformation strategy is ongoing. This includes closure of head
office and outsourcing support functions, transferring the Keresley Centre to a new
proprietor, selling land assets through a qualified surveyor and sales agents, tendering
for a new investment manager and setting an appropriate investment policy and
targets. The reserves policy is reviewed annually and linked to financial and
operational risks.

Covid-19

Covid-19 did not have a material impact on the Charity’s operations and financial results for the year ended 31 March 2021. The board do not consider that it will have a material impact on the charity’s ability to operate as a going concern as its effect is mainly limited to the Keresley school, which is no longer under the charity’s stewardship. Post year-end, throughout the pandemic, the Charity has been following Government and Department for Education (DfE) guidelines closely. The Keresley school premises were closed but teaching staff continued to deliver education services throughout the lockdown period. Each student has followed a personalised distance learning plan and all accompanying books, materials and online resources were supplied to them by the school. Students engaged positively with the new way of learning.

With regards to the wider operations of the Charity, including fundraising and staffing, Covid-19 has not had a material impact. Fundraising from new donors had previously been scaled down while the Charity restructured its services and overheads, and regular donors have continued to support the Charity throughout the period. Prior to the pandemic the Charity had already put suitable systems and processes in place for home-working and central support staff already worked predominantly from home.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

TRUSTEES REPORT (continued) INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 31 MARCH 2021

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and

application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

In discharging this responsibility the Board delegates authority for operational activities to the Chief Executive. The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

So far as we are aware:

AUDITORS

The auditor, MHA MacIntyre Hudson, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

In approving this Trustees Report, the Board is also approving the Strategic Report included here in their capacity as company directors. This report was approved by the Board of Trustees on 7 September 2021 and signed on its behalf by:

Brian Scott Chairman of Trustees

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COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 31 MARCH 2021

Independent Auditor’s Report to the Trustees of Shaftesbury Homes & Arethusa

Opinion

We have audited the financial statements of Shaftesbury Homes & Arethusa (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 the 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).

In our opinion the financial statements:

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

Basis for opinion

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

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the chairman’s foreword and the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other

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YEAR ENDED 31 MARCH 2021

information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 12 and 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 31 MARCH 2021

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 these financial statements.

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

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.

Duncan Cochrane-Dyet (Senior Statutory Auditor) For and on behalf of MHA MacIntyre Hudson Statutory Auditor Canterbury

29 October 2021

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Statement of Financial Activities for the year ended 31 March 2021

Notes
INCOME AND ENDOWMENTS FROM:
Donations and Project grants
4
Legacies
Charitable activities
3
Investments
5
Gains on disposals of discontinued operations
2
Other income
Total incoming resources
EXPENDITURE ON:
Raising funds
7
Charitable activities
3
Impairment charge in respect of freehold
property
9
Total resources expended
Net (outgoing)/incoming resources for the
year before other gains & losses
Gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfer between funds
13
NET MOVEMENT IN FUNDS
Balance brought forward at 1st April 2020
BALANCES CARRIED FORWARD
AT 31 MARCH 2021		 Notes
INCOME AND ENDOWMENTS FROM:
Donations and Project grants
4
Legacies
Charitable activities
3
Investments
5
Gains on disposals of discontinued operations
2
Other income
Total incoming resources
EXPENDITURE ON:
Raising funds
7
Charitable activities
3
Impairment charge in respect of freehold
property
9
Total resources expended
Net (outgoing)/incoming resources for the
year before other gains & losses
Gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfer between funds
13
NET MOVEMENT IN FUNDS
Balance brought forward at 1st April 2020
BALANCES CARRIED FORWARD
AT 31 MARCH 2021		 Unrestricted
Funds
Continuing
activities

£'000
89
601
-
31
-
2		 Unrestricted
Funds
Discontinued
activities
£'000
-
-
154
-
-
22		 Restricted
Funds
£'000
-
-
-
-
-
-		 Endowment
Funds
£'000
-
-
-
-
-
-		 Total 2021
£'000
89
601
154
31
-
24
899

10
713
323
1,046
(147)
95
(52)
-
(52)
7,174
7,122		 Total 2020
£'000
100
151
419
42
3,291
39
4,042
2
1,254
-
1,256
2,786
(86)
2,700
-
2,700
4,474
7,174
723 176 - -
10
16
-		 -
692
323		 -
5
-		 -
-
-
26 1,015
5		 -
697
-		 (839)
-		 (5)
-		 -
95
697
-		 (839)
-		 (5)
-		 95
-
697
3,974		 (839)
2,279		 (5)
142		 95
779
4,671 1,440 137 874

All transactions are derived from continuing and discontinued activities during the year. All recognised gains and losses are included in the statement of financial activities. The accompanying notes on pages 22 - 35 form part of these accounts.

19

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

Balance Sheet as at 31 March 2021

FIXED ASSETS
Notes
Tangible fixed assets
9
Investments
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
Creditors: Amounts falling due within one year
12
NET CURRENT ASSETS/(LIABILITIES)
TOTAL NET ASSETS
FUNDS AND RESERVES
CAPITAL FUNDS
Endowment funds
13
INCOME FUNDS
Restricted funds
13
Unrestricted funds
13
FUNDS AND RESERVES		 2021
£'000
1,465
4,510
5,975
660
578
1,238
(91)
1,147
7,122
874
137
6,111
7,122		 2020
£'000
1,878
757
2,635
280
4,370
4,650
(111)
4,539
7,174
779
142
6,253
7,174

The financial statements were approved and authorised for issue by the Board of Trustees on 6 September 2021 and were signed below on its behalf by:

Brian Scott

Elliot Bancroft

Chairman of Trustees

Treasurer

The notes on pages 22 - 35 form part of these accounts.

20

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA Cash flow statement for the year ended 31 March 2021

Notes
Net cash (outflow) from operating activities
1
Investing activities:
Purchase of tangible fixed assets
Purchase of investments
Proceeds from sale of investments
Proceeds from sale of tangible assets
Net cash (outflow)/inflow from investing activities
Increase/(decrease) in cash
2
Cash and cash equivalent at 1 April 2020
Cash and cash equivalent at 31 March 2021
NOTES TO CASHFLOW STATEMENT
1.
RECONCILIATION OF CHANGES IN
RESOURCES TO NET CASH OUTFLOW
FROM OPERATING ACTIVITES
Net incoming / (outgoing) resources for the year
Depreciation charges
Decrease in stocks
(Increase)/Decrease in debtors
(Decrease)/Increase in creditors
Loss/(Gain) on disposal of fixed assets
Gain on disposal of other assets
Change in fair value of freehold property
Net cash inflow/(outflow) from operating activities
2.
ANALYSIS OF NET FUNDS
Cash at bank and in hand		 2021
2020
£'000
£'000
£'000
£'000
(134)
(255)
-
(11)
(4,000)
-
342
-
-
3,689
(3,658)
3,678
(3,792)
3,423
4,370
947
578
4,370
2021
2020
£'000
£'000
(147)
2,786
80
81
-
1
(381)
86
(22)
42
12
(3,217)
-
(34)
323
-
(134)
(255)
31-Mar-21
Apr 20
Cash
Inflow
/(Outfl
ow)
Cash
inflow
2020
578 4,370
(3,792)
3,423		 2021
2020
£'000
£'000
£'000
£'000
(134)
(255)
-
(11)
(4,000)
-
342
-
-
3,689
(3,658)
3,678
(3,792)
3,423
4,370
947
578
4,370
2021
2020
£'000
£'000
(147)
2,786
80
81
-
1
(381)
86
(22)
42
12
(3,217)
-
(34)
323
-
(134)
(255)
31-Mar-21
Apr 20
Cash
Inflow
/(Outfl
ow)
Cash
inflow
2020
578 4,370
(3,792)
3,423
4,370
2020
£'000
2,786
81
1
86
42
(3,217)
(34)
-
(255)
Cash
inflow
2020
3,423

21

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA Notes to the financial statements

YEAR ENDED 31 MARCH 2021

1. PRINCIPAL ACCOUNTING POLICIES

(a) General information

Shaftesbury Homes and Arethusa is a company limited by guarantee registered in England and Wales (company number: 81186) and a registered charity (charity number: 311697). Its registered office is 10 Orange Street, Haymarket, London, WC2H 7DQ.

(b) Basis of preparation and going concern

The financial statements have been prepared under the historical cost convention with the exception of fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities 2015 (SORP 2015), the Companies Act 2006 and applicable accounting standards (FRS102). The charity is a Public Benefit Entity as defined by FRS102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are presented in sterling which is the functional currency of the Charity and rounded to the nearest pound. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements have been prepared on a going concern basis. In making their assessment, the trustees have considered budgets, cash flows and the impact of significant events, including that of COVID19.

Whilst the economic shutdown in response to COVID19 did have an impact on the charity, the effect was largely limited to the operation of the Keresley school. As noted in the Trustees’ Report, the operation of the Keresley school was transferred to Value Education For Life in September 2020, and the charity has become a grant making institution.

The trustees are satisfied that the charity has sufficient available resources, both in terms of cash and investments that can be converted to cash, such that there is no material uncertainty, and the going concern basis of preparing the financial statements continues to be appropriate.

Discontinued operations have been presented in the Statement of Financial Activities with respect to the Keresley School, as well as some ongoing costs in relation to the closure of the Arethusa Venture Centre, which ceased operations during the year to March 2019.

At the time of approval of the financial statements the charity’s remaining activities are expected to continue in operation for a period of at least 12 months from the date of approval.

The principal accounting policies and estimation techniques are as follows:

22

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

(c) Fund Accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Board in furtherance of SYP’s charitable objects.

Restricted funds are funds subject to specific restricted conditions imposed by the donors.

The endowment funds were gifts and bequests left for the on-going benefit of SYP. As was normal practice at the time, the money given was to be held as capital and only the income spent each year. However in 2011, the Trustees resolved to obtain the consent of the Charity Commission to free these funds from the restrictions with respect to the expenditure of capital. Consent was obtained in March 2012. The trustees now have powers to spend these funds on the purchase, adaptation and redevelopment of properties occupied by the charity for its charitable activities, as resolved by them from time to time.

(d) Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

The Charity receives government and other body grants in respect of furthering its charitable objectives. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Legacies are reviewed on a case-by-case basis. Legacies are credited to the Statement of Financial Activity when the trustees are satisfied that the Charity is entitled to the monies, eventual receipt is more probable than not, and that the amount can be reliably measured. On occasion legacies will be notified to the Charity where it is not possible to measure reliably the amount expected to be distributed. On these occasions, the legacy is disclosed as a contingent asset and not included in the accounts.

Investment income is earned through holding of assets for investment purposes such as shares and securities. It includes dividends and interest. Interest income is recognised using the effective interest method and dividend income is recognised as the Charity’s right to receive payment is established.

23

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.

(e) Expenditure

Expenditure is recognised when incurred inclusive of irrecoverable VAT.

Charitable activity costs comprise expenditure, including staff costs, directly attributable to each activity.

Support costs have been allocated to each activity based on staff numbers employed in that activity (or on staff time spent on that activity). Governance costs are included within support costs and relate to the management of the charity's assets, organisational administration and compliance with constitutional and statutory requirements.

Expenditure on raising funds comprises costs incurred in encouraging people and organisations to support financially the charity's work. These include the costs of advertising, publicity and of the staging of fund-raising events.

Payments in relation to the termination of employment are recognised when the relevant decision-making process has been completed and communicated to all affected parties.

(f)

Fixed assets

Fixed assets are measured initially at their purchase cost. All assets purchased are capitalised and included within fixed assets if their cost exceeds £500.

Depreciation is calculated so as to write off the cost of tangible fixed assets over estimated useful lives of the assets concerned on a straight line basis. Estimated useful lives of assets are:

Freehold land - nil Freehold properties - 50 years Office equipment - 5 years Fixtures and fittings - 5 years

Fixed assets are reviewed annually for indicators of impairment and revaluations are recognized where there is a material difference between an asset’s carrying value and its fair value.

(g) Investments

Investments are stated at market value. Realised and unrealised gains on investments are recognised in the Statement of Financial Activities.

24

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

(h) Financial instruments – assets and liabilities

The company only holds basic Financial Instruments. Financial Instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets or financial liabilities. The financial assets and financial liabilities of the company are as follows:

• Debtors – trade and other debtors (including any accrued income) are financial instruments and are debt instruments measured at amortised cost as detailed in note 10. Prepayments are not financial instruments.

• Cash at bank – is classified as a basic financial instrument and is measured at face value as detailed on the Balance Sheet.

• Liabilities – trade creditors, accruals and other creditors are classified as financial instruments, and are measured at amortised cost as detailed in note 11. Amounts due for taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

(i) Operating leases

Rentals paid in respect of assets held under operating leases are charged to the SOFA on a straight line basis over the lease term.

(j) Pensions

The Charity operates a group personal pension defined contribution scheme and an automatic enrolment workplace pension scheme for permanent employees. Both schemes are fully funded and independent of the charity’s finances. The charity pays a fixed rate contribution to each scheme which is charged to the statement of financial activities as it falls due.

(k) Significant judgements

In preparing these financial statements, management has made judgements in the application of the charity’s accounting policies which affect the amounts recognised in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key areas subject to judgement and estimation include legacy income recognition, provisions for bad and doubtful debts, depreciation and accruals recognition.

25

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

2 DISCONTINUED OPERATIONS

INCOME
Donations and project grants
Charitable activities
Other trading activities
Other income
EXPENDITURE
Charitable activities
Change in fair value of freehold property
Net (outgoing)/incoming resources for
the year before other gains & losses
Balance brought forward at 1st April

Balance carried forward at 31st March
 2021 2020
£'000 £'000
-
-
154
-
-
-
22
3,291
176
3,291
692
575
323
-
1,015
575
(839)
2,716
2,279
(437)
1,440
2,279

Other income includes gains on disposal of land and buildings of nil (2020: £3,246k).

Discontinued operations have been presented in the Statement of Financial Activities with respect to the Keresley School, as well as some ongoing costs in relation to the closure of the Arethusa Venture Centre, which ceased operations during the year to March 2019.

Work continues to realise the value of the remaining part of the land and buildings of the Arethusa Venture Centre site. The asset is currently held in fixed assets (note 9) and based on preliminary assessments an impairment charge against the market value of this site was recognized during the year, amounting to £323k.

3 CHARITABLE ACTIVITIES
UNRESTRICTED FUNDS
INCOME
Education Services
Outdoor education
Grant making
EXPENDITURE
Education Services
Outdoor education
Grant making
(DEFICIT)
Educational Services
Outdoor education
Grant making		 2021
£'000
Continuing
activities
-
-
-


2021
£'000
Discontinued
activities
154
-
-		 2021
£'000
Total
154
-
-		 2020
£'000
Total
419
-
-
419
- 154 154
-
-
16		 372
320
-		 372
320
16		 678
575
-

1,254
(259)
(575)
-
(833)
16 692 708
-
-
(16)		 (218)
(320)
-		 (218)
(320)
(16)
(554)
(538)

26

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

3 CHARITABLE ACTIVITIES
PRIOR YEAR
CHARITABLE ACTIVITIES
UNRESTRICTED FUNDS
INCOME
Education Services
Outdoor education
EXPENDITURE
Education Services
Outdoor education
(DEFICIT)
Educational Services
Outdoor education
4 DONATIONS AND PROJECT GRANTS
General donations
Education services donations
Outdoor education donations
PRIOR YEAR DONATIONS
AND PROJECT GRANTS
General donations
Education services donations
Outdoor education donations
5 INVESTMENT INCOME
Income from listed investments
Bank interest receivable		 2021
£'000
Continuing
activities
89
-
-
89
2020
£'000
Continuing
activities
100
-
-
100		 2020
£'000
Continuing
activities
419
-		 2020
£'000
Discontinued
activities
-
-		 2020
£'000
Discontinued
activities
-
-		 2020
£'000
Total
419
-		 2019
£'000
Total
777
832
1,609
475
678
-
678
(259)
-
(259)
2021
£'000
Discontinued
activities
0
-
-
0
2020
£'000
Discontinued
activities
-
-
-
-		 - 419
-
575
575		 678
575
1,253		 863
1,388

2,252
-
(575)		 (259)
(575)		 (86)
(556)
(575) (833) (642)
2021
£'000
Restricted
funds
-
-
-		 2021
£'000
Total
89
-
-
89		 2020
£'000
Total
100
-
-
100
0
2020
£'000
Restricted
funds
-
-
-
-		 2020
£'000
Total
100
-
-
100		 2019
£'000
Total
50
136
-
186
2021
£'000
28
3
31		 2020
£'000
33
9
42

27

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

6 STAFF COSTS & TRUSTEE REMUNERATION
The costs of employees were as follows:
Salaries and wages
Social security costs
Pension costs
Termination payments
Trustee remuneration		 2021
2020
£'000
£'000
126
331
8
29
4
29
57
87
-
-
196
476

Key management personnel received remuneration of £56,000 during the year (2020: 83,000). Key management personnel comprise the Board of trustees (who are not remunerated) the Chief Executive and the Chief Operating Officer.

The average number of employees during the year was:

Management
Childrens services
Administration
Grants
Employees who received remuneration of more than £60,000:
Remuneration of between:
£60,000 - £70,000		 2021
2020
0
1
4
8
1
4
1
0
6
13
0
1

28

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

6 STAFF COSTS & TRUSTEE REMUNERATION (continued)

No remuneration or expenses were paid to any trustees during the year (2020: none) One member of higher paid staff was accruing benefits under a pension scheme (2020: one) Expenses in respect of defined contribution schemes are allocated to activity costs on the basis of staff numbers employed on that activity.

7 ANALYSIS OF TOTAL EXPENDITURE

Raising Funds
Fundraising
Trading company
Charitable activities
Educational services
Outdoor education
Grant making
Impairment charge in respect of freehold
property		 Directly
allocated
Support
Costs
Costs
2021
2020
£'000
£'000
£'000
£'000
10
-
10
2
-
-
-
-
332
40
372
678
286
35
321
576
13
2
15
-
323
-
323
-
964
77
1,041
1,256

Analysis of support costs

Charitable expenditure
Education services
Outdoor education
Grant making
Prior year analysis of support costs
Charitable expenditure
Education services
Outdoor education		 Governance
25
22
2
49
Governance
39
39
78		 Human
Resources
5
4
0
9
Human
Resources
25
10
10		 Finance,
Facilities
and IT
10
9
0
19
Finance,
Facilities
and IT
102
41
143		 2021
£'000
40
35
2
77
2020
£'000
166
90
256

29

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

7 ANALYSIS OF TOTAL EXPENDITURE (continued)

Net movement in funds is stated after charging:

Depreciation
Rental charges
Trustees' liability insurance
Auditors' remuneration - audit
- other
8 GOVERNANCE COSTS
Auditor's remuneration
Staff costs
9 TANGIBLE FIXED ASSETS
CHARITY
Cost or valuation
At April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At April 2020
Charge for year
Disposals
Impairment charge in respect of
freehold property
At March 2021
Net Book Value
At 31 March 2021
At 31 March 2020
Freehold land not depreciated
At 31 March 2021
At 31 March 2020		 Freehold
land &
buildings
£'000
3,193
-
-		 Office
equipment
£'000
53
-
(46)		 Fixtures and
fittings
£'000
39
-
(28)		 2021
£'000
80
14
6
8
-
2021
£'000
8
41		 2021
£'000
80
14
6
8
-
2021
£'000
8
41
3,193 7
11

1,349
62
-
323		 33
12
(37)
-
1,734
1,459
1,844
105
105		 8
-
20
6
14

30

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

The trustees have assessed the value of freehold property by reference to local property market conditions and indices and as a result have recognized an impairment charge of £323k.

10 FIXED ASSET INVESTMENTS

Market value at 1 April 2020
Gain on disposal of investments
Proceeds on disposal of investments
Purchases at cost
Net unrealised investment loss/(gain)
Market value at 31 March 2021
Historical cost of investments at 31 March 2021		 Equity
Investments
£'000
290
52
(342)
4,000
(25)
3,975
4,000		 Fixed
Interest
securities
£'000
467
-
-
-
68
535
157		 Total
£'000
757
52
(342)
4,000
43
4,510
4,157

All investments are held in common investment funds

11 DEBTORS

Contracts and charges
Gift Aid
Other Debtors
Prepayments and accrued income
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£'000
9
0
1
650




2020
£'000
171
0
4
105
280
2020
£'000
6
97
0
8
111
660





2021
£'000
-
81
1
9
91

12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

13 FUNDS

FUNDS
ENDOWMENT
Endowment funds
Total endowment funds
UNRESTRICTED
General funds
Total unrestricted funds
RESTRICTED
Bursary Funds
Water sports
Other
Total restricted funds
PRIOR YEAR FUNDS
ENDOWMENT
Endowment funds
Total endowment funds
UNRESTRICTED
General funds
Total unrestricted funds
RESTRICTED
Bursary Funds
Water sports
Other
Total restricted funds		 At 1 April 2020
£'000
779
779
At 1 April 2020
£'000
6,253
6,253
At 1 April 2020
£'000
120
3
19
142
At 1 April 2019
£'000
865
865
At 1 April 2019
£'000
3,433
3,433
At 1 April 2019
£'000
154
3
19
176		 Equity
Investments
Unrealised
Gain/(loss)
£'000
27
27		 Fixed Interest
Securities
Unrealised
Gain/(loss)
£'000
68
68
Expenditure
£'000
(1,041)
(1,041)
Expenditure
£'000
-
(5)
-
-
Fixed Interest
Securities
Unrealised
Gain/(loss)
£'000
11
11
Expenditure
£'000
(1,256)
(1,256)
Expenditure
£'000
-
-
-
-		 Transfers
between funds
£'000
-
-
Transfers
between funds
£'000
-
-
Transfers
between funds
£'000
-
2
(2)
-
Transfers
between funds
£'000
-
-
Transfers
between funds
£'000
-
-
Transfers
between funds
£'000
(34)
-
-
-		 At 31 March 2021
£'000
874
874
Income
£'000
899
899		 At 31 March 2021
£'000
6,111
6,111
Income
£'000
-
-
-
-		 At 31 March 2021
£'000
120
-
17
137
Equity
Investments
Unrealised
Gain/(loss)
£'000
(75)		 At 31 March 2020
£'000
779
779

(75)
Income
£'000
4,042
4,042		 At 31 March 2020
£'000
6,253
6,253
Income
£'000
-
-
-
-		 At 31 March 2020
£'000
120
3
19
142

32

COMPANY No. 81186

NOTES TO THE FINANCIAL STATEMENTS (continued)

SHAFTESBURY HOMES & ARETHUSA

YEAR ENDED 31 MARCH 2021

13 FUNDS (continued)

Bursary fund

Following the closure of the Arethusa Venture Centre on 31 March 3019 the H & M Trust gave approval for the funds it had contributed to Bursary Fund to be expended in line with the new future direction of the charity, improving life chances for young people in need or in care through grantmaking. The balance of the fund of £34k was therefore transferred into Unrestricted funds during the prior year.

Water sports

The fund will be distributed in the form of grants to other charitable organisations whose objects are to enable disadvantaged young people to access and benefit from water sports activities.

Other

The fund comprises aggregated amounts including those to for programmes to support activities for young people with disabilities or mental health problems. The fund will be distributed in the form of grants to other charitable organisations whose objects are in line with this.

14 FINANCIAL INSTRUMENTS

Financial assets measured at amortised cost
Financial liabilities measured at amortised cost		 2021
£'000
588
2020
£'000
4,555
82
99

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
funds
£'000
Funds at the end of the year are
represented by:
Tangible fixed assets
1,465
Investments
3,658
Net current assets
988
Total net assets
6,111		 Restricted
funds
£'000
-
-
137
137		 Endowment
funds
£'000
-
852
22
874		 Total
2021
£'000
1,465
4,510
563
7,122

33

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)

Prior year analysis of net assets between funds

Funds at the end of the year are
represented by:
Tangible fixed assets
Investments
Net current assets
Total net assets		 Unrestricted
funds
£'000
1,878
-
4,375
6,253		 Restricted
funds
£'000
-
-
142
142		 Endowment
funds
£'000
-
757
22
779		 Total
2020
£'000
1,878
757
4,539
7,174

16 PENSION SCHEMES

The charity operates a group personal pension plan (which is a defined contribution scheme) into which the charity pays 7% of salary for each member of the scheme. The charity also operates an automatic enrolment workplace pension scheme into which the charity pays the statutory contribution %. During the year total contributions into both schemes amounted to £4,300 (2020: £14,600).

17 TAXATION

Shaftesbury Homes & Arethusa is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

18 LIABILITY OF MEMBERS

The charity is constituted as a company limited by guarantee. In the event of the charity being wound up members are required to contribute an amount not exceeding £1 per member.

34

COMPANY No. 81186

SHAFTESBURY HOMES & ARETHUSA

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2021

19 OPERATING LEASE COMMITMENTS

The charity had outstanding commitments for future minimum lease rentals payable under non-cancellable operating leases falling due as follows :

Within 1 year
Between 2 and 5 years		 Property
2021
2020
£'000
£'000
-
16
-
-
-
16

Total lease payments recognised as an expense during the period amounted to £7k (2020: £39k).

20 OPERATING LEASE RECEIVABLES

During the year to March 2019 the charity entered into an operating lease relating to its former head office premises in Bromley. This is a sub-lease arrangement and there are none of the charity's fixed assets included. The non-cancellable operating lease rentals receivable are as follows :

Within 1 year
Between 2 and 5 years		 Property
2021
£'000
2020
£'000
-
25
-
-
-
25

21 RELATED PARTY TRANSACTIONS

Details of remuneration of trustees and key management personnel are included in note 6. No further related party transactions were undertaken such as are required to be disclosed under FRS 102.

35