Making Space | Annual Report 2020-2021
**Making Space Company Registration No: 01642033 Registered Charity No: 512907**
**Annual Report & Financial Statements 2020-2021**
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Making Space | Annual Report 2020-2021
## **Contents**
|Trustees’ Annual Report
|3|
|---|---|
|Statement of Trustees’ Responsibilities|22|
|Independent Auditor’s Report
|23|
|Statement of Financial Activities
|26|
|Balance Sheet
|27|
|Cash Flow Statement
|28|
|Notes to Financial Statements
|29|
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Chairman and Chief Executive Officer Introduction**
Welcome to our annual report and accounts for 2020/2021, the first year of our new, 4 year strategic plan.
Our strategy for 2020-2024 was on schedule to be launched in March 2020, ready for the start of the new financial year. However, as the COVID-19 virus reached the UK, a pandemic was declared and we, along with many countries across the world, were propelled into a lockdown – a period of time that would be like nothing any of us have ever known.
All of our plans, priorities and efforts were shifted towards supporting and protecting the people around us, and ourselves, from what was quickly becoming a very dangerous, relentless virus.
The virus brought with it pain, loss, hurt, worry, sadness and frustration. But in such challenging times, kindness is always possible and kindness is something we do really well at Making Space. We could have put up barriers, but we didn’t! Instead, we innovated and adapted to make sure people had access to what they needed to stay safe and well; we used technology to help people stay connected; and we improvised, excelled, challenged and continued to care.
In July 2020 we conducted a wellbeing survey with our colleagues. We wanted to understand how our colleagues were feeling, and how supported they felt in their role, at their service and from our leadership team. We are proud to say that:
- 88% felt supported to carry out their role during such challenging times
- 80% felt we were supporting their personal wellbeing
- 87% felt they had the correct resources and equipment to carry out their role safely and effectively
- 92% felt that communications issued from our leadership team kept them informed and reassured
- 90% felt that as an organisation we had responded well during the pandemic thus far
With further and localised COVID-19 restrictions, a change in our priorities and the additional pressure on our teams, we took the decision to postpone the official launch of our strategy. However, we were still able to progress with implementing many new projects that underpin our plan, including: launching our new vision, mission and values; working with partners to develop and launch new services across the North West; recruiting our digital Shine Champions; launching a new digital care planning solution; and developing a new, values-based, recruitment toolkit.
As restrictions continue to ease and we see some normality return to our lives, we look forward to making even more progress towards achieving our goals.
## **Public Benefit Disclosures**
The Trustees of Making Space confirm that they have referred to the guidance contained in the Charity Commission’s Guidance on public benefit when reviewing the charity’s aims and objectives and in planning strategy and future activities. Our activities for 2020/21 continue to deliver public benefit by supporting individuals, their families and carers when facing the challenges associated with physical or mental illness or disability, learning disability and dementia. This support was delivered in residential and community settings and further delivered public benefit by easing the burden on COVID-19 stretched local authority and NHS services.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **We are Making Space**
Making Space is a national charity and leading provider of health and social care services. We have been helping adults with care and support needs, and their carers, to lead independent and fulfilling lives since 1982.
We provide services from Cumbria to Cambridgeshire, supporting people in their own home, in their local community and with specialist care and support services.
Our caring and professional teams support adults with identified health or social care need(s), including:
- Common and/or complex mental health problems
- Learning disabilities
- Dementia
- People with age-related concerns
- Carers
We also support people who fund their own care and support to promote choice and wellbeing. Our services include:
- Residential and nursing homes
- Supported living and extra care services
- Floating support
- Independent hospitals
- Community support and social inclusion
- Employment and wellbeing
- Psychological therapies
We strive to go above and beyond for the people we support, helping them to live happy, fulfilling and enriched lives, with a focus on positive outcomes for each individual.
At Making Space, everything is done with dignity, respect and compassion for both the people we support and their families.
## **Vision**
We will put wellbeing at the heart of health and social care.
## **Mission**
Together we build relationships, connect communities and provide quality care as unique as the people we support.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Our Way of Working**
Everything that we do at Making Space is done on the belief that:
- Everyone matters and deserves a chance
- Everyone has a voice which is worth listening to
- Anyone can be affected by poor health
- Poor health should not be a barrier to finding joy and purpose in life
- Support should be there for anyone who wants it
- Support should be there at the point, and in the form, that it is needed
- We can and do improve and change lives
- There is so much more still to do: the best is yet to come.
## **We live our values every day:**
Our values determine who we are, how we live our lives, how we treat people and every decision that we make.
It is important for us as a health and social care provider to have the right values. It is even more important to have a workforce that shares these values.
We have 5 co-produced values that represent what we stand for. Each value has a clearly defined list of behaviours that help us to translate them into day-to-day actions.
## **Our co-produced values and behaviours:**
Kind Hearts: Generously building empathy and connection to create a sense of belonging
- We care about people
- We are compassionate, understanding and fair
- We actively listen without judgement and develop our understanding of others
- We act with kindness, transparency and warmth
- We encourage each other to be ourselves
Tailor-Making: Nurturing unique relationships to make every day count
- We take the lead from the people we support
- We aim to adapt and evolve based on what people need and want
- We reflect on the impact our behaviour may have on others
- We have the right skills and training
- We work together to share information and find solutions
Dreaming Big: Harnessing imagination we generate confidence in ourselves and others to take the first step
- We find ways to meet or exceed people’s expectations
- We are ambitious, creative and flexible
- We encourage and support each other to explore new ideas
- We recognise that small successes can be everything
- We actively seek the views of the people we support to help improve our services
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
Having Courage: Committing bravely to working in ways that take us to new places
- We believe in doing the right thing
- We take action and speak up to make positive change
- We try new things
- We take managed risks together
- We accept and learn from our mistakes
Being Ready: Responding to whatever comes our way by moving forward together
- We anticipate change
- We use our knowledge and insight to plan ahead
- We nurture trust through authentic, honest communication
- We build collaborative relationships
- We never stop learning
## **Our services**
## · **Care and support at home**
We are passionate about supporting people to live well in their own homes. Whether their home with us is for a short time, a few years, or longer term. We do everything we can to ensure that person is happy, healthy and has care and support that is unique to them.
In our supported living services, tenants benefit from having their own tenancies and are supported to maximise their independence. We provide flexible levels of support personalised to each individual, with the aim of making a positive difference to their life. Support can be anything from a daily wellbeing check, to care and support a few hours per week or several hours per day. We can also help with benefits, budgeting, maintaining a tenancy and life skills.
Facilities, care and support will vary across our supported living services. Some schemes will be individual homes, while others could be self-contained flats within a shared building. Some of our services have been designed specifically for people living with mental conditions and/or learning disabilities.
We also have accommodation services that are shorter term for people that may have been discharged from hospital, to help them transition into living independently in their community.
Our extra care services provide housing with care for people aged 55 and over. Residents live in selfcontained homes, with care staff available to help with personal care and providing meals. They offer community spaces, on-site care and often have on-site facilities such as hairdressers, gardens and bistros. Extra care is a great place to live for those seeking to continue living an independent lifestyle. Some of our extra care schemes have been developed with special consideration of those living with dementia.
For those that can no longer manage daily living at home, but do not need nursing care, our residential homes provide a safe place to call home. Here residents can continue to live well, socialise and enjoy active, meaningful lives. Our care teams provide personal care and support such as help with washing, dressing, toileting, administering medication and mobility. Some offer specialist support for mental health conditions and dementia.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## · **Community based services**
Our community services are tailored to the needs of each community, giving people and carers the support they need to help them stay well and keep active.
Across the country we have services in the community that support mental health, wellbeing, recovery, independence, self-care, learning, employment and social inclusion.
We work in partnership with many other local providers so that we can advise and refer the people we support to other groups and activities that could provide additional local support.
With our integrated approach to providing community services, we hope to provide care and support that is personalised, meaningful, and accessible and that helps people to avoid unnecessary hospital care.
## · **Specialised services**
We have a number of services that provide specialist care, therapies and programmes for people living with complex dementia, mental health conditions and associated needs.
These services include our independent hospitals, and residential/nursing care homes. Our multidisciplinary teams provide a high level of specialist care all designed to meet peoples’ needs and enhance their quality of life. These services can provide a long-term home or short-term respite. Admission criteria and duration of care available is specific to each service.
We also have a specialist team of qualified Psychological Wellbeing Practitioners who provide one to one support, computerised cognitive behaviour therapy and social prescribing to people who are experiencing common mental health problems.
## · **Where we work**
Making Space operates across England and all services are supported by corporate services based in a head office, based in Warrington, in the heart of the North West of England. We are arranged into six geographical directorates, all led by a dedicated Regional Head of Operations experienced in managing a diverse portfolio of health and social care provision.
The majority of our provision is in the North of England with a growing presence and portfolio across the Midlands area. Each directorate delivers services across our continuum of support that is based in the local community, in people’s homes and specialised support.
We are commissioned by Local Authorities and the NHS to provide services that meet the principles of the Care Act 2014, which is built upon reviews and reforms to provide a coherent approach to adult social care in England.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Strategic Review**
## **Objectives and Activities**
Our strategy for 2020-2024 includes:
- A new logo that continues to represent our established identity while also representing how we have evolved
- A vision statement that shares our ambitious hopes for our people, charity and sector
- A mission statement that clearly shares why we exist
- 5 new co-produced values that shape our culture, the way we work and help us to achieve our vision and mission
- Our next strategic plan, underpinned by 4 strategic pillars, each with their own key aims and measures
- Strategic KPIs to help us measure the implementation of our longer-term strategy
|Vision|We will put wellbeing at the heart of health and social care.|We will put wellbeing at the heart of health and social care.|We will put wellbeing at the heart of health and social care.|We will put wellbeing at the heart of health and social care.|
|---|---|---|---|---|
|Mission|Together we build relationships, connect
as unique as the people we support.||communities and provide quality care||
|Values|Kind Hearts
Tailor-Making
Dreaming Big
Having Courage
Being Ready||||
|Strategic
Pillars|Co-produced
Services|Digital Capability|Care Designed
for the Future|A dedicated and
committed
workforce|
||Aim 1: Making it
real service plans
Aim 2: Making
change - experts
by experience
Aim 3:
Involvement in
employee
recruitment
Aim 4: National
event for people
we support
Aim 5: Increase
the range of
volunteer roles
throughout the
organisation that
are person-
centred and life
enriching|Aim 1: Research,
identify, design &
implement an
optimal digital
infrastructure
Aim 2: Developing
the digital skills of
our people
Aim 3: Electronic
care planning|Aim 1: Places to
Call Home
programme
Aim 2: Shaping
our destiny
Aim 3: Investing
to grow
Aim 4: Learning
from the best
practice|Aim 1: Attracting
the best people,
with the right
values in the right
number
Aim 2:
Developing the
skills of our
people to fulfil
their potential
Aim 3: Supporting
our people to give
their best with
wellbeing at the
heart
Aim 5: Leading
through
excellence|
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **People we support**
In the last twelve months we have supported 10,192 people across the country accessing the following services:
|**Service Type**|**No. ofpeople using the services**|
|---|---|
|Carer Support|1,397|
|Dementia|2,386|
|Dementia Cafes|1,440|
|Computerised Cognitive Behavioural Therapy|962|
|DayCare|2,105|
|Employment|98|
|Extra Care|443|
|Home/DomiciliaryCare|41|
|CommunitySupport Accommodation Provided|584|
|CommunitySupport Accommodation Not Provided|430|
|Independent Hospitals|39|
|NursingHomes|42|
|Registered Care Homes|225|
|Total|10,192|
Volunteering and support to volunteers is a key aspect of our approach to supporting a broad range of people to stay connected to their own communities. During this year, our key focus has been the support of volunteers to stay connected and support their wellbeing during the pandemic. A range of volunteer opportunities were suspended due to lockdown and pandemic restrictions whilst other activities were developed to ensure contact, support and continued engagement was maintained. Making Space has 299 volunteers (410 in 2020) which reflects the numbers of people who either suspended their activities due to shielding or lockdown requirements or the changes to service provision in light of COVID-19. A comprehensive plan was co-produced with volunteers to enable people to return to volunteering as the restrictions of COVID-19 are lifted.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Strategic Activities and Key Performance Measures**
## Key deliverables for the year to 31 March 2021 were:
## · **Increase the voice and visibility of the people we support into the governance of the organisation.**
During the year, Making Space maintained the commitment to involve people we support in staff recruitment, with 44% of posts having some form of user involvement and engagement. As part of our response to the Care Quality Commission’s regulatory requirement to have a Service User Guide in place across registered services, a new guide and information handbook was co-produced and designed for use across Making Space. Additional support was provided to Making Change group members and volunteers throughout the COVID-19 period with positive feedback around online events and meetings.
## · **Implement a phased digital support and care plan platform across specialist, residential and community based services.**
Following a comprehensive assessment of the market place, Nourish, an experienced provider of digital care plans was contracted to support the roll out of a project implementation plan. This is a key element of the Shine project, to enhance digital capabilities across the organisation and enhance the opportunities afforded through innovation and technology.
## · **We will complete the Trusted Charity Level One self-assessment and accreditation process.**
Following changes to the National Council for Voluntary Organisations, the Trusted Charity programme was temporarily suspended pending the identification of a new provider. Making Space is commissioning a governance review from an alternative external provider.
## · **We will review safeguarding and quality assurance processes in light of emerging regulatory changes and regulations.**
The Quality assurance Team reviewed all safeguarding and quality assurance processes, which resulted in improving online guidance and reporting processes. In addition a quality audit framework and regional dashboard has been introduced to give an overview of service performance on a quarterly basis.
## · **Update our workforce reward and recognition strategy.**
This year we have been updating our reward and recognition strategy. We have increased the allowance for our cycle to work scheme and we have also introduced a car maintenance scheme. In January we launched Wagestream, a financial wellbeing initiative that helps colleagues to: track their pay in real time, stream 30% of earned wages when they need it, save money and access advice on managing money. So far, 22% of our employees have signed up to Wagestream, and we plan to increase this engagement further. We have also increased our business mileage rates from 35p to 40p a mile for all employees and have also put the preparations in place to introduce a life assurance benefit from the start of 2021/22.
To recognise the achievements of our employees we have again taken part in a number of external awards in the last year including the National Care Awards, Markel 3[rd] Sector Awards and Great British Care Awards and have 27 colleagues reaching the national and regional finals.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## · **Develop a new suite of key performance indicators which support the new strategic plan.**
We have now developed and agreed our key performance indicators for the coming year. These KPIs support our new strategic plan and can be found in ‘Our Plans for 2021-2020’ further on this report.
## **Key Performance Indicators**
Performance in the year to 31 March 2021 is summarised in the following table:
|**Key Performance Indicator**|**Target**|**2021**
**Actual**|**Narrative**|
|---|---|---|---|
|**Service User Outcomes**
**using Adult Social Care**
**Outcomes Framework**|>82.0%|86.0%|Achieved|
|**CQC Compliance Overall**
**Good or Better**|>90.0%|100.0%|Achieved|
|**Employee Engagement – at**
**least 45% positive score**
**from employee satisfaction**
**survey**|>45.0%|90.0%|Achieved|
|**Employee Sickness**|<5.0%|5.6%|This objective would have been
achieved but for COVID-19|
|**Employee Vacancies**|<8.0%|6.3%|Achieved|
|**Employee Stability Index**|>76.8%|80.3%|Achieved|
|**Mandatory Training**
**Compliance**|>90.0%|89.7%|Fallen just under target primarily due to
COVID-19 restrictions on face-to-face
training. This training is now being
prioritised as face-to-face training
resumes|
|**Financial Surplus**|>£780,372|£969,353|Achieved.|
|**Income Growth**|>3.0%|1.1%|Growth opportunities curtailed by
reduced tender activity and by delays in
the construction of new services due to
COVID-19.|
When agreeing KPIs with the Executive Management Team, Trustees look to set targets, which improve performance by benchmarking against industry average information and by looking for continuous improvement. Initially service user outcomes and Care Quality Commission compliance were benchmarked against industry averages. However, Making Space now look for continuous improvement in this area as performance is well above industry averages. Employee-related KPIs are benchmarked against care sector average information mainly derived from Skills for Care.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Financial Review**
The Statement of Financial Activities (SOFA) for the year is set out within the financial stat ~~e~~ ments. Total incoming resources increased by 1.1% in the year to £27,571,420. An operating surplus of £969,353 (2020: £507,787 surplus) was achieved. Income growth was curtailed in year due to the delay in building-related developments due to the pandemic. Tendering opportunities also reduced during the pandemic. The operating surplus held up due to the financial support offered by central government, local authorities and NHS funders which paid for the increasing costs associated with delivering services while mitigating COVID-19 risks.
A positive movement in funds of £896,353 (2020: £540,787 increase in funds) was achieved, after an actuarial loss on pensions of £73,000 (2020: £33,000 gain).
Cash in hand and on deposit rose by £2,062,991 to £11,366,006.
In the view of the Trustees, the finances of Making Space continue to be sound but in order to maintain this position in the future, efforts will continue to be made to secure new funding streams and to maintain and improve the value-for-money of Making Space services.
## **Investments**
As a matter of policy, the Trustees review annually the investment strategies of Making Space. The Trustees have endorsed a continuation of the risk-averse policy to invest in cash with a number of credit-referenced UK registered banks.
Interest rate quotes are sought from credit-referenced banks each time cash is placed on deposit to meet the objective of maximising interest received from this limited number of banks.
## **Key Risks and Uncertainties**
The Trustees are responsible for the management of risks faced by Making Space, working to an established risk management process to assess business risks and implement risk management strategies. This has involved identifying the types of risks faced, prioritising risks in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks.
The key controls used include:
- Comprehensive reports are monitored at regular, minuted Board and Committee meetings.
- Detailed terms of reference for all Committees and an approval process for all actions by the Board.
- Comprehensive strategic and operational planning, budgeting and management accounting.
- Clear organisational structure and lines of reporting.
- Formal written policies which are regularly reviewed.
- Clear authorisation and approval levels.
- Trustee approved risk management policy and associated procedures.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
The highest placed risks on Making Space’s risk register and associated mitigating actions are as follows:
## **COVID-19 causing death or illness of the people we support or employees and potential financial and reputational damage**
- Making Space has followed all guidance in regards to infection control measures and enhanced these measures where it thinks necessary. This has resulted in the implementation of a detailed operational risk register which identifies best practice ways of working to mitigate COVID-19 risks.
- Our insurers have been consulted on and kept informed of material COVID-19 related risks.
- Voids were identified as a possible financial risk, but occupancy remains high. Making Space continues to work closely with local commissioners to help avoid this void risk.
- Thus far, public sector buyers of Making Space services continue to fund any additional costs due to COVID-19. It is recognised that this funding cannot continue indefinitely, and public sector funding may be reduced going forward. Most Making Space services are those where there is a statutory obligation on local authorities or health bodies to fund, so it is reasonable to expect this funding to continue going forward. However, plans are in place to deliver some financially marginal, that are valuable to those who use them, in different and perhaps more cost-effective ways. Making Space has made greater use of technology to support people during the COVID-19 pandemic and this digitalisation of support will continue. A key tenet of Making Space’s new strategic plan is the diversification of income streams beyond local authorities and health commissioners.
## **The effect of public sector funding cuts and the move away from block-to-spot contracts reduces Making Space’s net income**
- Delivering commissioner requirements by providing value-for-money services of a quality attractive to commissioners continues to deliver new business.
- Continue to maintain an operating cost reserve equivalent to 2 months’ expenditure.
- Pro-active development of partnerships with other organisations to submit joint or consortia proposals.
- The diversification of income streams so that the charity is not almost wholly reliant on public sector funding has been delayed by COVID-19 but delivering privately funded services remains an objective.
## **Failure to attract and retain suitable skilled, qualified and experienced employees**
- A three year people plan is in place which includes a range of approaches that will support the delivery of the strategic plan and our drive to become a preferred employer within the health and social care market.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Pension Liabilities**
Making Space operates funded pension schemes that have both a defined benefit and defined contribution sections. Defined benefit schemes are closed to all but those employees transferred to Making Space under protected employment terms. The annually calculated notional surplus or deficit on the funding of Local Government Final Salary Pension Schemes is shown on the face of the Balance Sheet as a Pension Liability and as at 31 March 2021 stands at £163,000 (2020: £87,000 liability).
The Trustees believe that the schemes currently meet their funding requirements and the level of contributions to the schemes have been adjusted following detailed three yearly actuarial valuations.
The Trustees are aware of the volatile nature of the deficit calculation, and this deficit will vary depending on the assumptions made at the valuation date. The Trustees continue to adopt an appropriate funding strategy based on actuarial guidance.
## **Reserves**
When reviewing our reserves policy this year, Trustees questioned whether a two-month ‘Emergency Operating Reserve’ remained sufficiently prudent in a COVID-19 environment and concluded a twomonth reserve offered sufficient cover. For the year ended 31 March 2021 this equates to £4,350,837 (2020: £4,421,916).
The Trustees have considered the challenging funding environment within which Making Space operates and the impact of COVID-19 and have concluded that it is prudent to maintain the ‘Emergency Operating Reserve’ as a cash balance.
The balance of cash and short-term investments as at 31 March 2021 is £11,366,006. The Trustees believe that any available cash remaining after the setting aside of the emergency operating reserve should be invested in the development of new services. £7,015,169 (2020: £4,881,099) is therefore available to develop services. The commitment to use excess reserves to invest in new services has been delayed by COVID-19 but remains an objective.
Our free reserves figure (unrestricted reserves of £17,626,925) after fixed assets (£7,869,894), and emergency operating reserve (£4,350,837) are discounted is £5,406,194 (2020: £4,602,941).
## **Going Concern**
In response to the pandemic, a COVID-19 risk assessment has been prepared and is regularly monitored by Trustees. Trustees identified occupancy levels as a significant risk at the start of the pandemic, but occupancy levels remain above average levels. Making Space has not been financially impacted in the same way as some other charities because, at least in part, it is not an elder care specialist, and does not rely on voluntary income or private fee payers. Additional COVID-19 costs have been funded by central Government or local authority and NHS commissioners. However, Trustees have considered likelihood of recurring COVID-19 costs when setting an emergency operating reserve of £4,350,837. Trustees looked at financial forecasts for the next three years and management accounts prepared since 31 March 2021 in determining that Making Space is a going concern.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Our Plans for 2021-22**
## **We will:**
- Launch “Making it Real” forums in each of our regions.
- Develop the digital skills of our workforce.
- Purchase property to provide support to people in the heart of their communities.
- Enhance our recruitment procedures through digital platforms.
- Develop a reward and recognition strategy which aims to highlight values-based behaviours.
## **Key Performance Indicators for the coming year**
We will monitor and report on progress against key performance indicators and targets annually. The key performance indicators for the coming year will support our new 2020-2024 strategic plan.
## **Our Key Performance Indicators for 2021/22 are:**
|**KPI**|**Benchmark**|**Target**|
|---|---|---|
|1. Increase our digital ability to
measure our impact and
outcomes for the people we
support.|% of services with electronic
care plans in place against
implementation target.|90% and above.|
|2. Provide high quality care for
the people who use our services.|CQC compliance in top
quartile % of services rated
as good or above.|90% and above.|
|3. Ensure services are delivered
in accordance with agreed
performance and quality levels.|Service utilisation compared
to contract requirements and
actual hours delivered verses
planned delivery hours.|80% and above.|
|4. Actively involving people we
support in the design and delivery
of services.|% of services with a ‘Making
it Real Plan’ in place|70% and above.|
|5. Connecting people to their
communities and others through
volunteering.|% of services with volunteer
roles, actual versus plan.|80% and above.|
|6. Listening to the people we
support to improve our services.|% of services with service
user feedback mechanisms in
place.|80% and above.|
|7. Attract the right people with the
right values in the right number.|Vacancy % compared to
2020 Skills for Care Report of
7.3%.|6.5% and below.|
|8. Have a workforce that feels
valued and rewarded.|Turnover % compared to
2020 Skills for Care Report of
30.4%.|25% and below.|
|9. Develop our peoples’ skills to
their full potential.|Operational colleagues
qualified to at least level two
compared to 2020 Skills For
Care Report of 48.0%|48.0% and above.|
|10. Maintain our financial viability.|Achieve agreed annual
budget surplus of £1,173,249.|Better than budget.|
|11. Continue to grow so that our
positive impact is felt more widely.|Achieve growth in income
whilst generating a
reasonable surplus.|Income greater than prior
year.|
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors’ and Strategic Report**
## **Administrative Details**
Making Space is a charity (Registered charity number 512907) and a company limited by guarantee (Company Registration number 01642033).
Registered Office: 46 Allen Street, Warrington, Cheshire WA2 7JB.
## **Trustees**
Names of all who served as Trustees during the reporting period, and up to the date of signing:
|A Teague|ChairoftheTrustees|
|---|---|
|A Broadhurst||
|N Hormozi||
|S Humphreys||
|S Hull||
|M Jenkinson||
|E Johnstone||
|K Porceddu||
## **Chief Officers of Making Space**
|Chief Executive:|R Peacock|
|---|---|
|ExecutiveDirectorof Finance:|WJones|
|Executive Director of Operations:|G Chisnall|
|ExecutiveDirectorof Human Resources|POrton|
|Executive Director of Quality and Compliance|P Dillon|
|Company Secretary|WJones|
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Solicitors**
Hempsons Limited 100 Wood Street London EC2V 7AN
DAC Beachcroft LLP 100 Fetter Lane London EC4A 1BN
Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES
## **Auditor**
BDO LLP 3 Hardman Street Spinningfields Manchester M3 3AT
## **Bankers**
Lloyds Bank Plc Town Hill Warrington WA1 2LP
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors’ and Strategic Report**
## **Structure, Governance and Management**
Making Space is governed by its Memorandum & Articles of Association. It is an incorporated charity registered with the Charity Commission. There is a maximum of 16 Trustee positions on the Board. At the end of the year, 7 posts were filled. Trustees are elected at the Annual General Meeting (AGM) and hold office for 3 years, subject to the terms of the Memorandum & Articles of Association. Trustees can seek re-election for a further term of office up to a maximum of three terms of three years.
The Board has an active desire to recruit additional Trustees and applications or nominations for Trustee positions are received and reviewed by the Board against a skills matrix and role description, in accordance with the Trustee Recruitment Policy and Procedure. Prospective Trustees are interviewed to assess their competency and suitability for a Trustee position before gaining the support of the Board, prior to nomination and approval at the AGM. A comprehensive induction programme is implemented for each new Trustee, which includes visits to services, mentoring from Executive Officers and on-going support from the Chairman and other Board members.
Daily operational running of the organisation is delegated to the Chief Executive and the Executive Management Team based at Head Office in Warrington. The Head Office houses the Executive Management functions for finance, operations, human resources, and quality. During the year, the Chief Executive and the Executive Management Team presented reports regularly to the Board and Hospital Managers Committee and Quality and Assurance Committee on strategic and operational issues relevant to the Board’s oversight of the organisation.
For the purposes of the Mental Health Act 1983 (MHA), Making Space is the detaining authority and therefore “Hospital Managers” for patients who may be detained under a section of the Mental Health Act, within our Independent Hospitals. The Board of Trustees as “Hospital Managers” are responsible for all the patients detained in the hospitals including in respect of the duties and powers to discharge patients. The Trustees have the power to appoint experienced “Associate Hospital Managers” to help them undertake their Hospital Manager responsibility.
In addition, the Trustees must ensure the responsibility and commitment of Making Space as the Registered Provider to evidence based care and treatment and quality of patient experience. All new and existing Trustees follow the agreed policies and procedures laid out in the Trustee Handbook. These include policies and procedures for effective induction of new Trustees and a thorough learning and development programme for all Trustees.
Trustee induction includes an introduction to The Charity Commission’s Charity Governance Code and the seven pillars of good governance. The Charity Commission Code of Governance is adopted by the charity and Making Space is compliant in all areas. Trustees are introduced to their legal responsibilities by working through The Essential Trustee before getting an understanding of the seven principles of leadership, integrity, decision-making, risk and control, board effectiveness, diversity, openness, and accountability. These principles form the basis of how Making Space is governed and managed. This was assessed in the prior period and there has been no change in the current period. Trustees must complete online mandatory training.
A review of the pay of Executive Directors was undertaken using information from external data resources. The Board of Trustees and the CEO agreed the actual pay placing them within the appropriate range identified by these external resources.
The only Trustee role which it is possible to pay under Making Space governing documents is that of Chair. The Trustees took the decision in 2014 to start paying for the role of Chair. This decision was taken following legal advice and receiving Charity Commission approval. A remuneration rate of £10,000 per year was agreed following a benchmarking exercise with payments made to the Chairs of similar charities. The current Chair has chosen not to accept any remuneration.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Employee Engagement**
We have continued working towards our 3 year people plan.
Following on from the review we undertook of our values last year, this year’s work has focused upon launching our new values and embedding them throughout Making Space. To achieve this we have coproduced a set of underpinning behaviours which in turn have been used to communicate the values from our launch in August 2020. We have undertaken a widespread engagement programme for this using both video and social media as well as a number of embedding initiatives including a review of our recruitment tools and selection procedures. This work will continue throughout 2021.
In early 2021 we have undertaken a full employee survey where we received a strong response of 50%. The results were overwhelmingly positive across all five measures of our index with our friends and family test remaining high at over 90%. We used this opportunity to capture learning about working through the COVID pandemic and fair treatment at work. We have gone on to develop an action plan to respond to some of the findings particularly around leadership, reward and Equality & Diversity and will be holding a number of listening events to gain a more qualitative perspective.
We have continued to build upon our employee engagement hub and the number of employees registered with the platform has further grown to 55%.The number of recognitions posted from managers and colleagues has gone up from 700 to 1019, a 31% increase within the year. During the first national lockdown the platform received some of its heaviest usage to date as people expressed their gratitude to the work of their teams and colleagues. We are continuing to develop this method of engagement and have now included our new values within the platform.
We have continued to promote regular communications with our workforce through newsletters and social media. In particular over the past 12 months communication with the workforce has been key to us responding to the COVID pandemic and for employees feeling informed and reassured. We have provided regular communications from the EMT during the last year, this has been as frequently as weekly. We have increased the engagement of these communications by also sending through text messaging as well as email. This has been recognised through the employee survey as very successful over this period. We have also launched a regular video communications from the CEO as we continue to work on increasing the levels of engagement with our internal communications.
This year we said we would focus on updating our reward & recognition strategy which we have been working upon. Our package has been further enhanced over the last year with increasing the allowance for our cycle to work scheme and have introduced a car maintenance scheme. Wagestream, which enables employees to draw upon up to 30% of their salary as they earn was introduced in January 2021. The platform provides a hub of information and advice on financial wellbeing, financial management & savings. So far we have had a take up of 22% with plans to increase the engagement further. We have also increased our business mileage rates from 35p to 40p a mile for all employees and are also have put the preparations in place to introduce a life assurance benefit from the start of 2021/22.
To recognise the achievements of our employees we have again taken part in a number of external awards in the last year including the National Care Awards and Great British Care Awards and have a number of employees reaching the national and regional finals.
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors’ and Strategic Report**
## **Positive about Disability**
We are a Disability Confident Employer Level 1, this means that Making Space is taking action to ensure that people with disabilities and long term health conditions feel supported, engaged and able to fulfil their potential in the workplace.
These steps include offering interviews to all candidates who meet the minimum criteria for the role and being flexible with our recruitment processes. For example, allowing CV applications rather than only application forms where that’s a supportive step and supporting flexible working patterns where possible. It also means that we take active steps to make adjustments in the workplace to support employees with disabilities. We also provide Equality & Diversity training including Dementia, learning disabilities and Mental Health awareness to our workforce.
## **Qualifying indemnity provisions**
The charitable company has put in place qualifying third party indemnity insurance provisions for all of the Trustees of Making Space.
## **Related Parties and Co-production with other Organisations**
Making Space continues to be an active member of the National Association of Mental Health Providers, which aims to bring consistency and professionalism across the voluntary mental health sector.
Making Space remains committed to working in partnership with similar charitable organisations housing associations, local authorities, commissioners, universities and government bodies etc. to deliver the organisational objectives and the services required by commissioning bodies.
## **Cash held on trust**
The charity holds money, which is not material, on behalf of service users both in cash and in Making Space bank account. Making Space has no control over this and it is therefore excluded from the accounts. The value held amounts to £56,843 (2020: £56,832).
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Making Space | Annual Report 2020-2021
## **Trustees’ Annual Report Incorporating the Directors and Strategic Report**
## **Statement as to disclosure of information to auditors**
In so far as the Trustees are aware at the time of approving our Trustees’ Annual Report:
- There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the Making Space’s auditor is unaware; and
- The Trustees, having made enquiries of fellow directors and the charity’s auditor that they ought to have individually taken, have each taken all steps that he/ she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
This Annual Report is signed by the Chair on behalf of the Board of Trustees. The Trustees also approve the Strategic Report, which is contained within this report, in their capacity as company directors.
By order of the Board of Trustees
Alan Teague Chair of Trustees
Date: 30[th] November 2021
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Making Space | Annual Report 2020-2021
## **Trustees’ Responsibilities**
The Trustees (who are also directors of Making Space for the purposes of company law) are responsible for preparing the Trustees’ Annual report, which includes the strategic report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Make judgements and accounting estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
Approved on behalf of the Board of Trustees
Alan Teague Chair of Trustees
Date: 30[th] November 2021
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Making Space | Annual Report 2020-21
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAKING SPACE**
## **Opinion on the financial statements**
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 for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Making Space Limited (“the Charitable Company”) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## **Basis for 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 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.
## **Independence**
We remain independent of the 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.
## **Conclusions related to going concern**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: Trustees Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAKING SPACE – CONT…**
otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Other Companies Act 2006 reporting**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic report and the Directors’ Report, which are included in the Trustees’ report, have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the statement of trustee responsibilities, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant
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Making Space | Annual Report 2020-21
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAKING SPACE – CONT…**
regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
_Extent to which the audit was capable of detecting irregularities, including fraud_
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As a part of our audit in accordance with United Kingdom Generally Accepted Accounting Practice; and requirements of the Companies Act 2006 we exercise professional judgement and maintain professional scepticism throughout the audit. Based on our understanding and accumulated knowledge of the Charity and the sector in which it operates we considered the risk of acts by the Charity which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial statements. These included but were not limited to those that relate to the form and content of the financial statements, such as the Charities SORP 2019, Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice), the UK Companies Act 2006 and those that relate to the payment of employees. All team members were briefed to ensure they were aware of any relevant regulations in relation to their work.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries, management bias in accounting estimates and improper revenue recognition associated with year-end cut-off. Our audit procedures included, but were not limited to:
- Agreement of the financial statement disclosures to underlying supporting documentation;
- Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the recoverability of debtors, the actuarial assumptions in respect of the defined benefit pension schemes, the classification of leases, and the depreciation and impairment of fixed assets;
- • Revenue year end cut-off procedures;
- Identifying and testing journal entries, in particular any journal entries posted with specific unusual narrative, manual journals to revenue and cash, and review of journals posted to least used accounts;
- Discussions with management; including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
- Obtained an understanding of how the Charity is complying with relevant legal and regulatory frameworks by making enquiries to management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minutes and other evidence gathered during the course of the audit;
- Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Charity’s internal control; and
- Evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements,
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAKING SPACE – CONT…**
recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:
https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Helen Knowles (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Manchester
## 13 December 2021
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
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Making Space | Annual Report 2020-21
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **(Incorporating the summary income and expenditure account)**
## **Year ended 31 March 2021**
|**Note**
**INCOME AND ENDOWMENTS**
**FROM:**
Donations and legacies
Charitable activities
2,8
Other trading activities
3
Investments
4
Other
5
**TOTAL INCOME AND**
**ENDOWMENTS**
**RESOURCES EXPENDED**
Charitable activities
7,8,10
**TOTAL EXPENDITURE**
**NET INCOME/(EXPENDITURE)**
**BEFORE GAINS/(LOSSES)**
Actuarial gains/(losses) on defined
benefit pension schemes
20
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
**TOTAL FUNDS BROUGHT**
**FORWARD**
**TOTAL FUNDS CARRIED**
**FORWARD**
20|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total funds**
**2021**
**Total funds**
**2020**
**£**
**£**
**£**
**£**
142,750
0
142,750
40,102
27,187,897
163,622
27,351,519
26,867,848
4,020
0
4,020
8,476
67,360
0
67,360
93,332
5,771
0
5,771
29,530|
|---|---|
||27,407,798
163,622
27,571,420
27,039,288|
||26,451,088
150,979
26,602,067
26,531,501|
||26,451,088
150,979
26,602,067
26,531,501|
||956,710
12,643
969,353
507,787|
||(73,000)
0
(73,000)
33,000|
||883,710
12,643
896,353
540,787|
||16,743,215
993,517
17,736,732
17,195,945|
||17,626,925
1,006,160
18,633,085
17,736,732|
All the above results derive from continuing operations. All gains and losses recognised in the year are included above.
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Making Space | Annual Report 2020-21
## **BALANCE SHEET**
## **As at 31 March 2021**
|**Notes**
**FIXED ASSETS**
Tangible assets
13
**TOTAL FIXED ASSETS**
**CURRENT ASSETS**
Stock
14
Debtors
15
Investments, cash and cash equivalents
Cash at bank and in hand
**TOTAL CURRENT ASSETS**
**LIABILITIES**
Creditors: amounts falling due within one year
16
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
Defined benefit pension scheme liability
18
**TOTAL NET ASSETS**
**THE FUNDS OF THE CHARITY**
Restricted funds
18, 20, 22
Unrestricted funds
18, 20
**TOTAL CHARITY FUNDS**
20|**2021**
**2020**
**£**
**£**
7,869,894
7,718,357|
|---|---|
||7,869,894
7,718,357|
||461
477
2,718,006
3,091,090
6,649,798
6,100,500
4,716,208
3,202,515|
||14,084,473
12,394,582|
||(3,158,282)
(2,289,207)
10,926,191
10,105,375
18,796,085
17,823,732
(163,000)
(87,000)|
||18,633,085
17,736,732|
||1,006,160
993,517
17,626,925
16,743,215|
||18,633,085
17,736,732|
The financial statements of Making Space (Limited by Guarantee), company number 01642033 and charity number 512907, were approved by the Trustees and authorised for issue on 18[th] November 2021 and signed on its behalf by:
## **Alan Teague**
Chair of Trustees
Date of Signing: 30[th] November 2021
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Making Space | Annual Report 2020-21
## **CASHFLOW STATEMENT**
|**Year Ended 31 March 2021**
**Cash flows from operating activities:**
**Net cash provided by operating activities**
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
**Net cash provided by (used in) investing activities**
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at the beginning of the reporting period**
**Cash and cash equivalents at the end of the reporting period**
**Reconciliation of net income/(expenditure) to net cash flow from operating**
**activities**
**Net (expenditure)/income for the reporting period (as per the statement of**
**financial activities)**
**Adjustments for:**
Depreciation charges
Dividends and interest from investments
Deficit on sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
(Increase)/decrease in pension liability
**Net cash provided by (used in) operating activities**
**Analysis of cash and cash equivalents**
Cash in hand
Notice deposits (less than 3 months)
Overdraft facility repayable on demand
**Total cash and cash equivalents**|**Total funds**
**Prior year**
**funds**
**£**
**£**
2,419,054
799,455
67,360
93,332
425,660
0
(849,083)
(1,104,558)
(549,298)
0|
|---|---|
||1,513,693
(211,771)
1,513,693
(211,771)
3,202,515
3,414,286|
||4,716,208
3,202,515|
||**Current**
**Year**
**Prior Year**
**£**
**£**
896,353
540,787
271,886
440,251
(67,360)
(93,332)
0
0
16
817
373,084
(44,531)
869,075
(24,537)
76,000
(20,000)|
||2,419,054
799,455|
||**Current**
**Year**
**Prior Year**
**£**
**£**
4,716,208
3,202,515
0
0
0
0|
||4,716,208
3,202,515|
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Making Space | Annual Report 2020-21
## **NOTES TO THE FINANCIAL STATEMENTS**
## **Year ended 31 March 2021**
## **1. ACCOUNTING POLICIES**
## **Company status**
Making Space is a private company, limited by guarantee, and a charity, registered and incorporated in England & Wales, under the Companies Act and Charity Act.
The Trustee Report includes the address of the registered office and details the principal activities of the charity.
## **Basis of preparation**
The accounts have been prepared in accordance with 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 (FRS102) (effective 1 January 2019) – (Charities SORP 2019 (FRS102) the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.
The particular policies adopted by the Trustees are described below and have been applied consistently throughout the current and preceding year.
Making Space 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 note(s).
## **Preparation of accounts on a going concern basis**
In response to the pandemic, a COVID-19 risk assessment has been prepared and is regularly monitored by Trustees. Trustees identified occupancy levels as a significant risk at the start of the pandemic, but occupancy levels remain above average levels. Making Space has not been financially impacted in the same way as some other charities because, at least in part, it is not an elder care specialist, and does not rely on voluntary income or private fee payers. Additional COVID-19 costs have been funded by central Government or local authority and NHS commissioners. However, Trustees have considered likelihood of recurring COVID-19 costs when setting an emergency operating reserve of £4,350,837. Trustees looked at financial forecasts for the next three years and management accounts prepared since 31 March 2021 in determining that Making Space is a going concern. Making Space has free reserves in excess of the emergency operating reserve of £5,406,194 and still anticipates to make annual operating surpluses in excess of £1 million a year in each of the next three years. In the five months ending August 2021 Making Space has made a surplus of £511,988. The emergency operating reserve will be maintained as a minimum cash balance which is supported by forecast cash flows.
## **Judgements in applying accounting policies and key sources of estimation of uncertainty**
In preparing these financial statements, the directors have made judgements where appropriate. The judgement subject to the greatest uncertainty is the provision for bad debt. All debts over five months old are treated as doubtful debts.
Other key sources of estimation uncertainty include:
The actuarial assumptions in respect of defined benefit pension schemes - The application of actuarial assumptions relating to defined benefit pension schemes is incorporated in the financial statements in accordance with FRS 102. In applying FRS 102, advice is taken from independent qualified actuaries. In this context, significant judgement is exercised in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates.
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Classification of leases - whether leases entered into as lessee, is operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Depreciation of tangible fixed assets and impairment – Tangible fixed assets are depreciated over their useful lives taking into account residual lives, where appropriate. The actual lives of the assets and residual lives are assessed annually and may vary depending upon a number of factors. In assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. In considering whether indications of impairment exist, factors taken into consideration include the economic viability and expected future performance of the asset.
## **Incoming resources**
All income is recognised in the statement of financial activities when the conditions for receipt have been met and there is reasonable assurance of receipt. The following accounting policies are applied to income:
## _Grants, rents and service charges receivable_
Grants receivable and rents receivable are accounted for on an accruals basis.
## _Furlough_
Monies received under the furlough scheme are accounted for under an accruals basis.
## _Donations_
Donations and all other receipts from fundraising are reported gross and the related fundraising costs are reported in other expenditure. Cash collections which the charity is entitled but which it has not received by the year-end are included in incoming resources in the statement of financial activities and shown in the balance sheet.
## _Investment income_
Investment income is accounted for when receivable.
Cash at bank and cash in hand includes cash in the current bank account.
Investments consist of cash held on deposit for periods of twelve months. As a matter of policy, the Trustees review annually the investment strategies of Making Space. The Trustees have endorsed a continuation of the risk averse policy to invest in cash with a number of creditreferenced UK registered banks.
## _Legacies_
Legacies and donations are accounted for when conditions for their receipt have been met. The Charity regards a legacy as receivable when it becomes reasonably certain that the legacy will be received and the value of the incoming resources can be measured with sufficient reliability.
## **Resources expended**
Resources expended are recognised in the period in which they are incurred and are gross of irrecoverable
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Making Space | Annual Report 2020-21
VAT. The Charity's operating costs include staff costs, premises costs and other related costs. Such costs are allocated between charitable activities and governance costs. Staff costs are allocated according to the costs of staff working directly in the relevant activity. When costs are not directly attributable to any activity, they have been apportioned according to the total of all other costs relating to each activity.
## _Costs of generating funds_
Costs of generating funds include all expenditure directly related to the objects of the Charity and comprises:
## _Charitable activities_
This comprises the costs associated with providing supported housing, residential homes, independent hospitals, carer support, crisis houses, psychological therapies and social inclusion services.
## _Governance costs_
Governance costs represents expenditure incurred in the management of the Charity's assets, organisational administration and compliance with constitutional and statutory requirements.
## **Fund accounting**
The Charity maintains various types of funds as follows:
## **Restricted funds**
Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes. Any costs of raising or administering such funds are charged against specific funds.
## **Cash held on trust**
The charity holds money on behalf of service users both in cash and in Making Space bank account. Making Space has no control over this and it is therefore excluded from the accounts.
## **Unrestricted funds**
## _General unrestricted funds_
General unrestricted funds represent funds, which are expendable at the discretion of Trustees in furtherance of the objects of the Charity. Such funds may be held in order to finance both working capital and capital investment.
## _Designated funds_
Designated funds comprise unrestricted funds, which have been put aside at the discretion of the Trustees.
## **Tangible Fixed Assets**
Fixed assets (with the exception of freehold land) are stated at cost less depreciation and are capitalised above £500.
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Making Space | Annual Report 2020-21
Repairs and maintenance are charged to the SOFA during the period in which they are incurred.
Depreciation is provided on the following tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows:
Leasehold buildings 4% per annum or the term of the lease if less than 25 years Land Not depreciated Freehold buildings 2% per annum Fixtures and equipment 20% per annum Motor vehicles 25% per annum Computers 20% per annum
## **Pension costs**
Pension schemes operated by the Charity are as follows:
(a) Defined benefit scheme
Making Space has employees in four defined benefit schemes.
The expected cost of providing pensions in this scheme, as calculated periodically by professionally qualified actuaries, is charged to the SOFA to spread the cost over the service lives of employees in the scheme, in such a way that the pension cost is a substantially level percentage of current and expected future pensionable payroll.
(b) Making Space contributes to five group personal pension schemes.
Contributions are charged to the SOFA account when payable.
## **Termination Policy**
Termination benefits are provided for when the charity offers voluntary redundancy before normal retirement date or when the charity decides to terminate employment. Termination benefits in accordance with FRS 102, Employee Benefits, are recognized as a liability and an expense when the entity can no longer withdraw the offer of those benefits.
## **Taxation**
The company is a registered Charity and has no liability to corporation tax on its charitable activities.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value. Provision is made for slow moving or obsolete items where appropriate.
## **Leases**
Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the
33
Making Space | Annual Report 2020-21
present value of the minimum lease payments payable over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to profit or loss over the shorter of estimated useful economic life and the term of the lease.
Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to profit or loss over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.
All other leases are treated as operating leases. Their annual rentals are charged to profit or loss on a straight-line basis over the term of the lease.
Reverse premiums and similar incentives received to enter into operating lease agreements are released to profit or loss over the term of the lease.
## **Impairment of fixed assets**
Fixed assets are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment.
An impairment loss is recognised for the amount by which the asset‘s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset‘s (or CGU‘s) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Fixed assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
## **Government grants**
Government grants represent the assistance by government in the form of a transfer of resources to a charity in return for past or future compliance with specified conditions relating to the operating activities of the charity (or its subsidiary). Government refers to government, government agencies and similar bodies whether local, national or international.
## **Financial instruments**
Debtors and creditors
Debtors and creditors receivable or payable in one year are recorded at transaction price.
## Cash and cash equivalents
Cash and cash equivalents in the balance sheet consist of cash at the bank and notice accounts with original maturity of three months or less.
## **Allocation of support costs**
Support costs are allocated based on contract size.
## **Interest receivable**
Interest is recognised using the effective interest method.
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Making Space | Annual Report 2020-21
## **2. INCOME FROM CHARITABLE ACTIVITIES**
||**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**|**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**|
|---|---|---|---|---|---|---|
||**2021**|**2021**|**2021**|**2020**|**2020**|**2020**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Head Office|5,161|0|5,161|220,984|0|220,984|
|Residential care
homes and
independent
hospitals|9,313,258|117,372|9,430,630|10,232,257|117,372|10,349,629|
|Employment
services|0|0|0|169,310|0|169,310|
|Social inclusion
services|1,554,092|0|1,554,092|1,407,052|0|1,407,052|
|Improve access
to psychological
therapies|350,505|0|350,505|349,910|0|349,910|
|Carer support|458,293|46,250|504,543|451,334|45,000|496,334|
|Community
dementia
services|780,860|0|780,860|793,485|0|793,485|
|Supported
housing|10,972,412|0|10,972,412|9,884,313|0|9,884,313|
|Home care
services|3,528,161|0|3,528,161|3,196,831|0|3,196,831|
|Furlough|225,155|0|225,155|0|0|0|
|Total|27,187,897|163,622|27,351,519|26,705,476|162,372|26,867,848|
## **3. INCOME FROM OTHER TRADING ACTIVITIES**
|Rental income
**. INCOME FROM INVESTMENTS**
Interest received
**. OTHER INCOMING RESOURCES**
Management fees
Miscellaneous income|**2021**
**2020**
**£**
**£**
4,020
8,476|
|---|---|
||4,020
8,476|
||**2021**
**2020**
**£**
**£**
67,360
93,332|
||67,360
93,332|
||**2021**
**2020**
**£**
**£**
0
18,316
5,771
11,214|
||5,771
29,530|
## **4. INCOME FROM INVESTMENTS**
## **5. OTHER INCOMING RESOURCES**
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Making Space | Annual Report 2020-21
## **6. GOVERNMENT GRANTS**
Income from government grants comprises performance related grants made by local authorities to fund the activities outlined in Note 22.
## **7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES**
||**Direct**
**costs**|**Grant**
**funding of**
**activities**|**Support**
**costs**|**Governance**
**costs**|**Total**
**2021**|
|---|---|---|---|---|---|
||**£**|**£**|**£**|**£**|**£**|
|Head office|0|0|3,154,047|51,792|3,205,839|
|Residential care homes and
independent hospitals|8,457,785|0|0|0|8,457,785|
|Employment services|0|0|0|0|0|
|Social inclusion|1,352,831|0|0|0|1,352,831|
|Improve access to psychological
therapies|308,304|0|0|0|308,304|
|Carer support|441,845|0|0|0|441,845|
|Community dementia support|702,149|0|0|0|702,149|
|Supported housing|8,662,794|0|0|0|8,662,794|
|Home Care Services|3,245,365|0|0|0|3,245,365|
|Total|23,171,073|0|3,154,047|51,792|26,376,912|
|||||||
|Unrestricted|23,020,094|0|3,154,047|51,792|26,225,933|
|Restricted|150,979|0|0|0|150,979|
|Total|23,171,073|0|3,154,047|51,792|26,376,912|
|||||||
||**Direct**
**costs**|**Grant**
**funding of**
**activities**|**Support**
**costs**|**Governance**
**costs**|**Total**
**2020**|
||**£**|**£**|**£**|**£**|**£**|
|Head office|0|0|3,350,180|67,162|3,417,342|
|Residential care homes and
independent hospitals|9,585,137|0|0|0|9,585,137|
|Employment services|129,548|0|0|0|129,548|
|Social inclusion|1,272,425|0|0|0|1,272,425|
|Improve access to psychological
therapies|317,664|0|0|0|317,664|
|Carer support|435,614|0|0|0|435,614|
|Community dementia support|706,043|0|0|0|706,043|
|Supported housing|7,841,837|0|0|0|7,841,837|
|Home Care Services|2,825,891|0|0|0|2,825,891|
|Total|23,114,159|0|3,350,180|67,162|26,531,501|
|||||||
|Unrestricted|22,939,604|0|3,350,180|67,162|26,356,946|
|Restricted|174,555|0|0|0|174,555|
|Total|23,114,159|0|3,350,180|67,162|26,531,501|
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Making Space | Annual Report 2020-21
## **8. SUMMARY ANALYSIS OF EXPENDITURE AND RELATED INCOME FOR CHARITABLE ACTIVITIES**
||**Income**|**Costs**|**Net cost**
**funded**
**from other**
**income**|**Income**|**Costs**|**Net cost**
**funded**
**from other**
**income**|
|---|---|---|---|---|---|---|
||**2021**|**2021**|**2021**|**2020**|**2020**|**2020**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Head office|5,161|3,154,047|(3,148,886)|220,984|3,350,180|(3,129,196)|
|Governance
costs|0|51,792|(51,792)|0|67,162|(67,162)|
|Residential care
homes and
independent
hospitals|9,430,630|8,457,785|972,845|10,349,639|9,585,137|764,492|
|Social inclusion|1,554,092|1,352,831|201,261|1,576,362|1,401,973|174,389|
|Improve access
to psychological
therapies|350,505|308,304|42,201|349,910|317,664|32,246|
|Carer support|504,543|441,845|62,698|496.334|435,614|60,720|
|Community
dementia support|780,860|702,149|78,711|793,485|706,043|87,442|
|Supported
housing|10,972,412|8,662,794|2,309,618|9,884,303|7,841,837|2,042,476|
|Extra care
including
homecare|3,528,161|3,245,365|282,796|3,196,831|2,825,891|370,940|
|Furlough|225,155|225,155|0|0|0|0|
|Total|27,351,519|26,602,067|749,452|26,867,848|26,531,501|336,347|
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Making Space | Annual Report 2020-21
## **9. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS**
||**Support**
**costs**|**Support**
**costs**|**Governance**
**costs**|**Governance**
**costs**|**Total costs**|**Total costs**|**Support**
**Costs**|**Support**
**Costs**|**Governance**
**costs**|**Total costs**|
|---|---|---|---|---|---|---|---|---|---|---|
||**2021**||**2021**||**2021**||**2020**||**2020**|**2020**|
||**£**||**£**||||**£**||**£**|**£**|
|Chief Executive|198,306||0||198,306||207,236||0|207,236|
|Business Services|211,865||0||211,865||221,183||0|221,183|
|Finance|396,795||0||396,795||349,701||0|349,701|
|Development|266,623||0||266,623||206,578||0|206,578|
|IT|458,483||0||458,483||380,560||0|380,560|
|Human resources|476,524||0||476,524||463,765||0|463,765|
|Marketing|206,271||0||206,271||168,585||0|168,585|
|Quality assurance|375,503||0||375,503||309,478||0|309,478|
|Central
management|236,213||0||236,213||183,597||0|183,597|
|Membership,
Voluntary and User
Inclusion|40,888||0||40,888||523,042||0|523,042|
|Other|286,576||0||286,576||336,454||0|336,454|
|Audit fees and
accountancy costs|0||35,900||35,900||0||40,767|40,767|
|Trustee costs|0||14,892||14,892||0||25,395|25,395|
|Trustee indemnity
insurance|0||1,000||1,000||0||1,000|1,000|
|Total|3,154,047||51,792||3,205,839||3,350,180||67,162|3,417,342|
|**10. ANALYSIS OF TOTAL RESOURCES EXPENDED**|||||||||**Total**
**2021**
**£**
26,550,275
51,792
26,602,067||
|||**Staff costs**||**Other**||**Depreciation**|||**Total**||
|||**2021**||**2021**||**2021**|||**2021**||
|||**£**||**£**||**£**|||**£**||
|**Charitable expenditure**|||||||||||
|Direct charitable expenditure||19,337,980||6,940,409||271,886|||26,550,275||
|Governance costs||11,185||40,607||0|||51,792||
|**Total resources expended**||19,349,165||6,981,016||271,886|||26,602,067||
||**Staff costs**|**Other**|**Depreciation**|**Total**|
|---|---|---|---|---|
||**2020**|**2020**|**2020**|**2020**|
||**£**|**£**|**£**|**£**|
|**Charitable expenditure**|||||
|Direct charitable expenditure|18,944,691|7,079,397|440,251|26,464,339|
|Governance costs|16,099|51,063|0|67,162|
|**Total resources expended**|18,960,790|7,130,460|440,251|26,531,501|
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Making Space | Annual Report 2020-21
## **11. NET INCOMING/ (OUTGOING) RESOURCE**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Net incoming/(outgoing) resources for the year are stated after charging/(crediting):|||
|Rentals under operating leases|242,783|165,570|
|Depreciation of tangible fixed assets - owned|271,886|440,251|
|(Surplus)/deficit on disposal of fixed assets|0|0|
|Auditor's remuneration for the audit of the Charity's annual accounts|32,000|30,000|
## **12. INFORMATION REGARDING EMPLOYEES AND TRUSTEES**
|**Staff costs comprise:**
Wages and salaries
Agency costs
Social security costs
Pension costs
Termination and redundancy costs|**2021**
**2020**
**£**
**£**
16,739,531
15,967,128
836,183
1,342,948
1,183,360
1,127,464
492,087
494,215
98,004
29,035|
|---|---|
||19,349,165
18,960,790|
The average monthly number of employees during the year was made up as follows:
|Management
Administration
Operational|**Number of**
**actual**
**employees**
**Number of**
**actual**
**employees**
**2021**
**2020**
29
30
45
46
915
875|
|---|---|
||989
951|
Number of employees whose emoluments amounted to over £60,000 in the year were as follows:
|£60,000 to £70,0000
£80,000 to £90,000
£110,000 to £120,000
£120,000 to £130,000|**2021**
**2020**
1
0
4
4
0
1
1
0|
|---|---|
||6
5|
Retirement benefits are accruing under a defined contribution scheme for these six employees (2020: five). Total contributions paid in year for the six employees was £72,035 (2020: £70,136).
## **PENSION COSTS**
The charity operates a defined contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
There are also defined benefit pension schemes, which are disclosed in Note 24.
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Making Space | Annual Report 2020-21
## **TERMINATION AND REDUNDANCY COSTS**
£98,004 has been paid in redundancy costs due to a restructure and contracts being downsized or ended.
## **TRUSTEE EXPENSES**
Professional indemnity insurance has been taken out on behalf of Trustees at a cost of £1,000 (2020 - £1,000).
The secretarial and administrative cost of the Board of Trustees was £14,891 (2020 - £25,395) for the nine Trustees in post (2020 – eleven). Within this total an amount of £72 was paid to Trustees as expenses (2020 - £1,048).
No remuneration was paid to any trustee this year (2020 also nil).
## **KEY MANAGEMENT COSTS**
Key management personnel for the charity is made up of unpaid Trustees and the five strong Executive Management Team. The total employee benefits of the Executive Management Team was £478,014 (2020 - £453,136).
## **13. TANGIBLE FIXED ASSETS FOR USE BY THE CHARITY**
||Assets
under
construction|Freehold
land and
buildings|Long
leasehold
property|Fixtures
and
equipment|Motor
vehicles|Total
tangible
fixed
assets|
|---|---|---|---|---|---|---|
||£|£|£|£|£|£|
|**Cost**|||||||
|As at 1 April 2020|890,652|7,607,708|2,259,226|249,305|114,620|11,121,511|
|Additions|1,000|669,140|0|178,943|0|849,083|
|Disposals|(5,660)|(688,374)|0|(46,728)|(58,791)|(799,553)|
|Transfer|(884,992)|884,992|0|0|0|0|
|As at 31 March 2021|1,000|8,473,466|2,259,226|381,520|55,829|11,171,041|
||||||||
|**Accumulated depreciation**|||||||
|As at1 April 2020|0|1,560,323|1,565,289|200,122|77,420|3,403,154|
|Charge for the year|0|139,758|71,082|49,480|11,566|271,886|
|Disposals|0|(268,374)|0|(46,728)|(58,791)|(373,893)|
|Transfers|0|0|0|0|0|0|
|As at 31 March 2021|0|1,431,707|1,636,371|202,874|30,195|3,301,147|
||||||||
|**Net book value**|||||||
|As at 31 March 2021|1,000|7,041,759|622,855|178,646|25,634|7,869,894|
|As at 31 March 2020|890,652|6,047,385|693,937|49,183|37,200|7,718,357|
Freehold land and buildings include a specific property with a net book value of £707,548 (2020 - £730,816). The title deeds of this property contain provision such that on any eventual sale all proceeds should be remitted to the relevant Health Authority.
Long leasehold include a specific property with a net book value of £72,432 (2020 - £97,910). The title deeds of this property contain provision such that on any eventual sale all the proceeds should be remitted to the relevant Health Authority.
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Making Space | Annual Report 2020-21
## **14. STOCKS**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Equipment, publications and goods for resale|461|477|
|**5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||
||**2021**|**2020**|
||**£**|**£**|
|Trade debtors|1,783,734|2,172,553|
|Other debtors|44,343|4,672|
|Prepayments and accrued income|889,929|913,865|
||2,718,006|3,091,090|
|**6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||
||**2021**|**2020**|
||**£**|**£**|
|Trade creditors|344,485|302,128|
|Other creditors|364,684|503,145|
|Accruals|797,500|514,798|
|Deferred income|1,288,615|639,738|
|Taxation and social security|362,998|329,398|
||3,158,282|2,289,207|
## **15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
## **16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
## **17. DEFERRED INCOME AND AMOUNTS INVOICED IN ADVANCE**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Balance at 1 April|639,738|638,730|
|Fees deferred in the year|1,288,615|639,738|
|Fees released from previous years|(639,738)|(638,730)|
|**Balance at 31 March**|1,288,615|639,738|
Deferred fees relate to income received in the current year for work to be undertaken in future years.
## **18. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
||**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**|**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**|
|---|---|---|---|---|---|---|
||**2021**|**2021**|**2021**|**2020**|**2020**|**2020**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Tangible fixed
assets|7,088,915|780,979|7,869,894|6,889,631|828,726|7,718,357|
|Intangible fixed
assets|0|0|0|0|0|0|
|Stock and debtors|2,718,467|0|2,718,467|3,091,567|0|3,091,567|
|Cash at bank
(including short
term investments)|11,140,825|225,181|11,366,006|9,138,224|164,791|9,303,015|
|Current liabilities|(3,158,282)|0|(3,158,282)|(2,289,207)|0|(2,289,207)|
|Pension liability|(163,000)|0|(163,000)|(87,000)|0|(87,000)|
|Total|17,626,925|1,006,160|18,633,085|16,743,215|993,517|17,736,732|
41
Making Space | Annual Report 2020-21
## **19. TRUSTEES**
The company is limited by guarantee but not having any share capital and is registered as a charity under the Charities Act 2011.
The liability of each trustee is limited to £1 (2020 - £1).
Nine people served as Trustees in year (2020 - eleven).
## **20. STATEMENT OF FUNDS**
|**Unrestricted funds**
General funds
Designated funds
Operating cost reserve
**Total unrestricted funds**
**Restricted funds**
Land and buildings
Revenue grants
**Total restricted funds**
**Total funds**
**Unrestricted funds**
General funds
Designated funds
Operating cost reserve
**Total unrestricted funds**
**Restricted funds**
Land and buildings
Revenue grants
**Total restricted funds**
**Total funds**|**As at 1st**
**Apr 2020**
**Income**
**Expenditure**
**Transfer**
**Investment**
**gains or**
**losses**
**Balance**
**31st Mar**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
12,321,299
27,407,798
(26,451,088)
71,079
(73,000)
13,276,088
4,421,916
0
0
(71,079)
0
4,350,837|
|---|---|
||16,743,215
27,407,798
(26,451,088)
0
(73,000)
17,626,925|
||828,727
0
(47,747)
0
0
780,980
164,790
163,622
(103,232)
0
0
225,180|
||993,517
163,622
(150,979)
0
0
1,006,160|
|||
||17,736,732
27,346,265
(26,376,912)
0
(73,000)
18,633,085|
||**As at 1st**
**Apr 2019**
**Income**
**Expenditure**
**Transfer**
**Investment**
**gains or**
**losses**
**Balance**
**31st Mar**
**2020**
**£**
**£**
**£**
**£**
**£**
**£**
11,892,796
26,876,916
(26,356,946)
(124,467)
33,000
12,321,299
0
0
0
0
0
0
4,297,449
0
0
124,467
0
4,421,916|
||16,190,245
26,876,916
(26,356,946)
0
33,000
16,743,215|
||876,473
0
(47,746)
0
0
828,727
129,227
162,372
(126,809)
0
0
164,790|
||1,005,700
162,372
(174,555)
0
0
993,517|
|||
||17,195,945
27,039,288
(26,531,501)
0
33,000
17,736,732|
## **21. COMMITMENTS UNDER OPERATING LEASES**
As at 31 March 2021 the Charity had total future minimum commitments under non-cancellable operating leases as set out below:
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Operating lease commitments which are owed:|||
|Within one year|121,671|103,494|
|In two to five years|40,445|34,623|
|After five years|0|0|
||162,116|138,117|
42
Making Space | Annual Report 2020-21
## **PENSION**
There are no defined contribution pension commitments not included in the balance sheet at the year end. See retirement Benefit Scheme note for details of defined benefit pension commitments.
## **22. RESTRICTED FUNDS**
||**Balance**
**31st Mar**
**2020**|**Incoming**
**resources**|**Outgoing**
**resources**|**Balance**
**31st Mar**
**2021**|
|---|---|---|---|---|
||**£**|**£**|**£**|**£**|
|Ashwood Court building|587,532|0|(23,269)|564,263|
|Ashwood Court land|143,284|0|0|143,284|
|Kingshill building|97,910|0|(24,478)|73,432|
|Palmyra grant|113,727|117,372|(59,702)|171,397|
|Carer Support Service Bolton grant|45,647|46,250|(43,530)|48,367|
|Bradford Carer Breaks grant|275|0|0|275|
|Bradford Carer Training grant|5,142|0|0|5,142|
||993,517|163,622|(150,979)|1,006,160|
Ashwood Court land and buildings relates to a CQC registered care home and hospital. Kingshill building is a CQC registered care home.
Palmyra grant is a health grant used to cover scheme deficits incurred. Bolton CSW is money paid for delivering support to carers. Bradford carer breaks is money paid to deliver breaks to carers. Bradford carer training is money paid to deliver training to carers.
||**Balance**
**1st Apr**
**2019**|**Incoming**
**resources**|**Outgoing**
**resources**|**Balance**
**31st Mar**
**2020**|
|---|---|---|---|---|
||**£**|**£**|**£**|**£**|
|Ashwood Court building|610,800|0|(23,268)|587,532|
|Ashwood Court land|143,284|0|0|143,284|
|Kingshill building|122,388|0|(24,478)|97,910|
|Palmyra grant|70,185|117,372|(73,830)|113,727|
|Carer Support Service Bolton grant|53,626|45,000|(52,979)|45,647|
|Bradford Carer Breaks grant|275|0|0|275|
|Bradford Carer Training grant|5,142|0|0|5,142|
||1,005,700|162,372|(174,555)|993,517|
## **23. FINANCIAL INSTRUMENTS**
|Cash
Investments
Trade debtors
Other debtors|**2021**
**2020**
**£**
**£**
4,716,208
3,202,515
6,649,798
6,100,500
1,783,734
2,172,553
44,343
4,672|
|---|---|
||13,194,083
11,480,240|
43
Making Space | Annual Report 2020-21
## **FINANCIAL LIABILITIES**
Trade creditors Other creditors Accruals
|**2021**|**2020**|
|---|---|
|**£**|**£**|
|344,485|302,128|
|364,684|503,145|
|797,500|514,798|
|1,506,669|1,320,071|
## **Reconciliation of net debt**
|**Reconciliation to net cash flow to movement in**|**At 1 April**|**Cash flows**|**Other**||**At 31**|
|---|---|---|---|---|---|
|**net debt**|**2020**||**changes**||**March 2021**|
||**£**|**£**|**£**||**£**|
|Cash and cash equivalents|3,202,515|1,513,693||0|4,716,208|
## **24. RETIREMENT BENEFIT SCHEMES**
Making Space operates nine pension schemes:
- (a) Five defined contribution personal pension schemes for employees not eligible to join the defined benefit schemes. The assets of these schemes are held separately from those of the Charity in funds under the control of Trustees. Contributions to the schemes are charged to the statement of financial activities when payable. The pension cost charge for the year in relation to these schemes amounted to £444,153 (2020 - £434,165).
- (b) National Health Service pension fund. This is a defined benefit pension scheme for all eligible employees. The assets of the Scheme are held separately by their National Health Service Superannuation Scheme. Contributions to the scheme are charged to the SOFA to spread the cost over the service lives of employees in the scheme. The pension scheme does not have a pension fund, but as a statutory scheme, benefits are fully guaranteed by the Government. This extra cost is not met by contributions from Scheme members and employers. Contributions from both members and employers are paid to the Exchequer, which meet the costs of increasing benefits each year by the rate of inflation. Because of the nature of the pension scheme there are no separately identifiable assets and liabilities which can be identified as relating to Making Space, therefore as permitted by FRS 102, the scheme has been accounted for as a defined contribution scheme. The pension cost charge for the year amounted to £7,800 (2020: £9,224).
- (c) West Yorkshire Pension Fund. This is a defined benefit scheme for all eligible employees. Under TUPE agreements all additional contribution requirements are met by the funding authority. As a result of the nature of the contract this scheme is accounted for as a defined contribution scheme. The pension cost charge for the year amounted to £0 (2020:£0).
- (d) The Lincolnshire Local Government Pension Fund. This is a defined benefit pension scheme for all eligible employees, and the related costs are assessed in accordance with the advice of professionally qualified actuaries. The scheme is now closed to new membership from the Charity. The pension cost charge for the year amounted to £10,124 (2020: £11,456). The pension scheme has separately identifiable assets and liabilities relating to Making Space. The last full actuarial valuation was carried out as at 31st March 2017.
- (e) Darlington Pension Fund. This is a defined benefit scheme for all eligible employees. Under TUPE agreements, the funding authority meets all additional contribution requirements. Because of the
44
Making Space | Annual Report 2020-21
nature of the contract agreement, this scheme has been accounted for as a defined contribution scheme.
The pension cost charge for the year amounted to £26,919 (2020: £26,371).
The amounts recognised in the balance sheet are as follows:
||**2021**|**2020**|
|---|---|---|
||**£’000**|**£’000**|
|**Reconciliation of present value of plan liabilities**|||
|At the beginning of the year|448|487|
|Transfer in acquired scheme obligation|0|0|
|Current service cost|11|22|
|Interest cost|10|12|
|Contributions by scheme participants|2|3|
|Actuarial losses|144|(72)|
|Benefits paid|(27)|(4)|
|At the end of the year|588|448|
||**2021**|**2020**|
||**£’000**|**£’000**|
|Schemes wholly or partly funded|588|448|
||**2021**|**2020**|
||**£’000**|**£’000**|
|**Reconciliation of fair value of plan assets**|||
|At the beginning of the year|361|380|
|Transfer in acquired scheme assets|0|0|
|Interest income on plan assets|8|10|
|Actuarial gains|71|(39)|
|Contributions by group|10|11|
|Contributions by scheme participants|2|3|
|Benefits paid|(27)|(4)|
|At the end of the year|425|361|
||**2021**|**2020**|
||**£’000**|**£’000**|
|Fair value of plan assets|425|361|
|Present value of plan liabilities|588|448|
|Net pension scheme liability|(163)|(87)|
45
Making Space | Annual Report 2020-21
||**2021**|**2020**|
|---|---|---|
||**£’000**|**£’000**|
|**Amounts recognised in the profit and loss amount are as follows:**|||
|**Included in administrative expenses:**|||
|Current service cost|11|22|
||11|22|
||**2021**|**2020**|
||**£’000**|**£’000**|
|**Amounts included in other finance costs**|||
|Net interest cost|2|2|
||2|2|
||**2021**|**2020**|
||**£’000**|**£’000**|
|**Analysis of actuarial loss recognised in other comprehensive income**|||
|Actual return less interest income included in net interest income|71|(39)|
|Deficit on transfer of scheme|0|0|
|Changes in financial assumptions|(144)|72|
|Changes in demographic assumptions|0|0|
|Other experience|0|0|
||(73)|33|
||**2021**|**2020**|
||**£’000**|**£’000**|
|**Composition of plan assets – Lincolnshire LGPF**|||
|European equities|305|235|
|European bonds|59|83|
|Property|44|40|
|Cash|17|3|
|Total plan assets|425|361|
||**2021**|**2020**|
||**£’000**|**£’000**|
|Actual return on plan assets|79|(29)|
46
Making Space | Annual Report 2020-21
||**2021**|**2020**|
|---|---|---|
||**%**|**%**|
|**Principal actuarial assumptions used at the balance sheet date**|||
|Discount rates|2.05|2.3|
|Future salary increases|3.15|2.1|
|Future pension increases|2.85|1.8|
|Proportion of employees opting for early retirement|||
|Inflation assumption|||
|Mortality rates:|||
|- for a male aged 65 now|21.1|21.4|
|- at 65 for a male member aged 45 now|22.0|22.4|
|- for a female aged 65 now|23.6|23.7|
|- at 65 for a female member aged 45 now|25.0|25.2|
## **25. RELATED PARTY TRANSACTIONS**
There were no related party transactions in the year
.
The following Trustees received reimbursed expenses for the year-end 31[st] March 2021: Alan Teague £72.00
Key management personnel and trustee remuneration (£0) is covered in earlier notes.
## **26. POST BALANCE SHEET EVENTS**
There are no post balance sheet events.
47