making space Kind hearted care and support Making Space Company Registration No: 01642033 Registered Charity No: 512907 Annual Report & Financial Statements For the year ended 31st March 2022 Contents Trustees, Annual Report Statement of Trustees, Responsibilities 21 Independent Auditor's Report 22 Statement of Financial Activities 26 Balance Sheet 27 Cash Flow Statement 28 Notes to Financial Statements 29 M8￿ng Sp8ce l Annual R8POrt 2021-22 Trustees, Annual Report Incorporating the Directors, and Strateglc Report Chairman and Chief Executlve Officer Introduction This is the year that as a society we slowly started to came out of lockdown following the global pandèmlc. Our workforce have continued to 8dapl positively and creatively lo the ever changing working conditions that Ihey are fac8d with. For the paople we supwrt there have beon limes of great uncertainty bul also many moments of personal success and achievement. For Making Spac8 this year we have faced differ8nt challenges to deal with and also reached some major milestones with our strategic plan. As an organisalion we have a long history in delivering regulated services and we have always been proud of our CQC ratings. with the majority of our regulated services being rated as overall good, with some having at least on8 key line of enquiry rated as outstsnding. This year that changed for us as an organisation and we had to face the difficult situation of de-regislering one of our specialist regulated services and received inadequate ratings in two olher services. This year we have been working closely with our relationship manager at coc to address Ihe concerns that have been raised in thes8 services and we deeply regret that our standards of care were not been good enough in some areas. We are resolute that we will learn from Ihe experience we have had with our regulated services this ye8r. We have already begun lo make the changes needed to ensure that we are providing the high standards of care we expect of ourselves. that the people we support deSe￿e and that the CQC are accustomed to from our charity. We sel ourselves a number of milestones to reach in our strategic plan for 2020 to 2024 and this year we achieved some key success in e8ch of our four st￿tegIC pillars. A major goal for our Co-production pillar was to increase the diversity of volunteer roles throughout Making Space to ensure thal Ihey are person centred and life enriching. The challenge of delivering this goal as we came out of lockdown meant that our focus this year was lo keep volunteers connected, supported and designing new approaches to volunteering. Whilst some of Dur volunteer roles were affected by the need to prevent the spread of Covid, other roles were enhanced and developed. Making Space continues to enjoy the support of over 300 volunteers in our organisation, with more than half of this number being people we support volunteering either in their service or in their local community. Project Shine embedded our strategic pillar to improve our digital capability as a heamh and soclal care provider. An ambitious programme of work lo transfer our operational teams over to a new case management system Called Nourish has been the main focus for Project Shine this year and all seNices are fequired to be on our new system will be by Autumn 2022. Nourish will be a key tool in providing even greater assurance about the FK>silive impact Making Space has on the wellbeing of the people we support. Our teams who are already using the system report that they love it for ils simplicity lo access great care plans and ils ability to be completed alongside the person they are supporting. The feedback from the people we support has been that Ihey feel more involved in their care planning and they enjoy some of the features which enable them to capture their successes and achi8vements in different fomiats. We achieved a number of key milestones in our slralegic pillar to provide care designed for the future. This included the launch of two new supported living services, one in Waffington and on8 in Stockport, thal have been designed lo safely support people who are ready to be discharged from hospital to receiv6 some intensive support before either going home or moving on lo a new housing option. In addition we have invested some of our reserves in the purchase of properties to extend our provision of housing and support for people with a learning disability within the heart of their local communities. Our final slrategic pillar is for us lo have a committed and dedicated worlrforce, one where the peop16 who we employ feel aligned and attuned to our values. We hav8 updated our recruitment process, our performance management process and our reward and recognition platform lo ali9n lo reflect our values. This year we launched our Living our Values (LOVI Awards, a new monthly award that recognises our colleagues and volunteers for living our values. Making Spaco l Annual R•pc#t 2021-22 Trustees, Annual Report Incorporaling the Dlrectors, and Slrateglc Report We have completed a midpoint review of our strategic plan and our focus is now upon delivering the goa15 that we have set ourselves, addressing the areas for improvement with a commltmenl lo Ihe people we support at the heart of our plans. and lo start to consider our strategic plan beyond 2024. It has been a year of huge change, one we will leam from and I cannol understate my gratilude lo the people we support, our volunteers and work colleagues arsd the Board of Trustees for all of their commrtmenl to the organisation in this last twelve months. Charf Ob ects and Public Benefit The objects of the Charfty are the rellef of péop￿ who are In need by reason of any physical or mental illness or disability arising from age, acadent, disease or infeGtK)n. including but wthout IwnitatK)n karning disabilities and dementia and the relief of their families and G3rers. The Trustees, in exercising their powers and duties, have complied with their duty in section 4 of the Charities Act 2011 to have due regard to Ihe public benefit guidance published by the Charity Commission. Activities for 2021-22 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. Wo aro Makin ace Making Space Is a national charity and ￿adIng provider of health and soclal care setvices. We have been helping aduKs with care and support needs. and IheSr carers, to lead independent and fulfilling lives since 1982. We provide services from Cumbria to Cambridgeshire, supporting people in their own home, in th81r local community and with specialisl care and support Se￿l¢e$. Our caring and professional t8ams support adults with identified health or social care need(s), including- Common andlor complex mental health problems Learning disabilities Dementia People with age-related concerns Carers We also support peopte who fund their own care and support to promote choice and wellbeing. Ouf services include.. Residential and nursing homes Supported living and extra care servlces Floating support Independent hospitals Community support and social inclusion Employmenl and wellbeing P￿YChOlogICal thcrapie" We slrive to go above and beyond for the people we support, helping them to live happy, fulfilling and enriched Ilves, with a focus on positive outcomes for each individual. Al Making Space, everything is done with dignity, respect and compassion for both the people we support and their families. Ma￿.￿g Space | Annual Rtr￿rt 2021-22 Trustees, Annual Report Incorporating the Directors, and Strateg1¢ Report Vision We will put wellbeing at Ihe heart of health and social care. Mlsslon Together we buikl relationships, connect communities and provide quality care as unique as the people we support. Ourwa of Workln Ev8rything that w8 do at Making Space is done on the belief that.. Everyone matters and deserves a chance Everyone has a voice which is worth lislenlng to Anyone can be affected by poor health Poor health should not be a barrier lo finding joy and purpos8 in lrfe Support shoukl be there for anyone who wants it Support shoukl be there al 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. We Ilve our values eve da Our values detemine who we are, how we live our lives, how we treat people and every decision that we make. It Is Smportant for us as a health and social care provider lo 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 8 clearly defined list of behaviours that help us to translate them into day-torflay actions. Our ¢o- roducod values an ehaviours: Klnd Hearts= Generousty building empathy and connecllon lo create a sense of belonging We care aboul people We are compassionale. understanding arKI falr We aclivety lislen without judgement and develop our understsnding of others We acl wlth kiridness, transparency and wamith We encourag8 each other lo be ourselves Tailor-M8king: 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 olhers We have the right skills and training We work together to share information and find solutions Mll￿ng Spllco | Annuol Rcport ?091 4? Trustees, Annual Report Incorporating the Dlrectors, and Strategic Report 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 recognis8 that small successes can be everything We actively seek the views of the people we support to help improve our services Having Courage- Committing bravely to working in ways that take us to new places We believe in doing the right thing We lake action and speak up to make positive change We try new things We lake 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 lo plan ahead We nurture trust through authentic, honesl communication We build collaborative relationships We never stop learning Our serviGes Care and su ort at home We a￿ passionate about supporting people lo live well in Ihoir own homes. Whether Iheir home wilh us is for a short lime, a few years, or longer term. We do everything we can lo ensure that person is happy, healthy and has care and support thal is unique to them. In our supported Ilving Se￿IceS, tenants benefit from having their own Ipnancies and are sijpportpd In maximise their independence. We provide flexible levels of support personalised to 8ach Sndividual, with the aim of making a positive difference lo their life. Supporl Lari be anylliing 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. Facllities, care and support will vary across our supported livlng seNices. Some schemes will be individual homes, while others could be self-contained flats within a shared building. Some of our seNices have been designod specifically for people living with mental conditions andlor learning disabilities. We also have accommodation seNices that are shorter term for people that may have been di￿harged from hospital. to help them transttion into living independentty in Iheir community. Our extra care seNices provide housing with care for people aged 55 and ovor. Residents live in self- contained homes, with care staff available to help wilh person81 care and providing meals. They offer community spaces, on-sile 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 devek)ped with special consideration of those living with dementia. Maklng Spac8 l Annual Report 2021.22 Trustees, Annual Report Incorporating the Directors, and Strateglc Report For those that can no longer manage daily living at home, but do not need nursing care, our residential homes provide a safe pla￿ to call home. Here residents can continue to live well. socialise and enjoy active. meaningful lives. Our care teams wovide personal care and support such as help with washing, dressing, loileling, adminislering medication and mobility. Some offer specSallsl support for mental health conditions and dementia. Cornmunlt based servlces Our commuriity se￿iceS are tailored to Ihe needs of each community, giving people and carer5 the support they need to help them stay well and keep active. Across the county we have services in the community that support mental health. wellbelng, recovery, independence, seK-care, 16arnlng. 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 aclivities that could provide additional local support. With our integrated approach lo 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. eciallsed servlces We have a number of services that providg specialist care, therapies and programmes for poople living with complex dementia. mental health conditions and associated needs. These sorvic8s include our independent hospitals, and re8identiaVnursing care homes. Our multidisciplinary teams provide a high level of specialist care all designed to meet P80ples' needs and enhance their quality of life. These services can provide a long-tem home or 5hort-term respite. Admission criteria and duration of care available is specific to each service. We also have a specialist leam of qualified Psychological Wellbeing Practitioners who provide one to one support, computerised cognitive behaviour therapy and social prescribing lo people who ar8 experiencing common mental health problems. Where wo work Maklng Spac8 operates across England and all services are supported by corporate services based in a head office. based in Warringlon, in the heart of the North West of England. We are arranged inlo seven geographical direclorates, all led by a dedicated Regional Head of Operatioris experIen￿d 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 8cross 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 Ihat meet the principles of the Care Act 2014, which is built upon rev4ews and reforms to provide a coherent approach to adult social care in England. Maklng Space l Annual R&prrt 2021-22 Trustees, Annual Report Incorporating the Dlrectors, and Strateglc Report Ob'ectlves and Activities Our strategy for 2020-2024 includes: A new logo that continues to represent our established identity while a150 representing how we have evolved A vision statement that shares our ambillous hopes for our people, charity and sector A mission statement that clearly shares why we exist 5 new co-produced values that shape our cutture, 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 slra16gy Vision We will put wellbeing at the heart of health and social care. Together we build relationships, connect communities and provide quality care as uni ue as the eo 18WeSU Kind Hearts Tailor-making Dreaming Big Having Courage Bein Read Co-produced Services Mission Values strategic Pillars Digital Capability Care Designed for the Future A dedicated and committed workforce Aim 1- Altractlng the best people, with the right values in the right number Aim 1: Making it real service plans Aim 1.. Research, identify, design & irrplement an optimal digital infrastructure Aim 1.. Pla￿S to Call Home programme Aim 2: Making change- experts by experience Aim 2.. Shaping our destiny Al￿. 2.. Developing the digital skills of our people Airr, 2.. Developing the skills of our people to fulfil their polential Aim 3: Invofvemenl In employee recruitment Aim 3.. Investing to grow m 3.. Electronlc care planning Alm 4.. Learning from the best practice Aim 4.. National event for people we support Aim 3- SupportirTrg our people to give their best with wellbeing at the heart Aim 5: Increase the range of volunteer roles throughout the organisation that are person- centred and life enrichin Aim 5.. Leading through excellence MthThg spa￿ IAnwal Rapjrt 2021.22 Trustees, Annual Report Incorporatlng the Dlrectors, and Strateglc Reporl In the last twelve months w8 havé SUPF)Orted 11.245 (2021.. 10,192> p8opI8 across the county accesslng the following service5- Service Type Psychological Wellbeing Services Community Based Dementia Services Social In¢lusionlDay Services Carer Support Support Accommodation Provlded Support Accommodation Not Provlded Extra Care (CQC Regisleredl Care Homes Without Nursing (CQC Registered) Empk)yment Advice Nursing Homes {CQC Reglstered) Independent Hospilals Total No. of people u81ng the servlce8 2,874 2,406 2,143 1,747 682 513 443 257 103 42 35 11,245 Volunt88ring and support to volunteers is a key aspect of our approach to supporting a broad range of people to stay connecled to their own communities. During the year we have seen an increase in volunteer numbers to 347 from the previous year's figure of 299. This reflects people's confidence to return to volunteerlng activities followlng the easlng of COVID restrlcllons. Strate 1¢ Actlvltles and K Perfonnan¢g Measures iveratrAes f￿ the r to 31 March 2022 were.. ncraaso tho voice arKI visibi ofthe owesu rt into tho ovornance of the Durfng the year, Making Space malntained the commitment lo involve peopla we support in staff cruitment, with 44Vo of posls having som& form of user involvement and engag8ment. As part of our response lo the Care Quality CommSsslon's regulatory requirement to have a Service User Gulde in place across registered services, a now 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 p8riod with F￿Sitive feedback around onlino events and meetings. lemenl a hased di Ital su and ¢ommunlt based servlces rt and care lan atfomi a¢ clall reslde Following a comprehensNe assessment of the markel place, Nourlsh, an experlenced provider of digltal care plans was contracted lo support the roll out of a project implementation plan. This Is a key element of the Shine projecl, to enhance digital capabilities across the organisation and enhance the opportunities afft)rded through innovation and technology. W8 wlll com roc•ss let8 the Trusted Charlt Level One self.assessment and accrodltatlon Followlng changes to the National Councll for Voluntary Organisations, the Trusted Charity tKogramme was temporanly suspended pending the identffication of a new provKler. Making sp￿ is commisS￿￿¥j a govemance review from an alternative extemal provider. ma￿n9 Spac8 l Annual Report 2021-22 Trustees, Annual Report Incorporating the Dlrectors, and Strateglc Report We WTII reviow safo uardln ulato chan es and re and uall ulations. assurance rocesses In11 ht of gmer in The Quality Assuranc8 Team reviewed 811 safeguarding and quality assurance processes, which resulted in improving online guidance and reporting processes. In addition a quality audit framework and reglonal dashboard has been introduced to give an ovetview of service perforn)an￿ on a quarterly basis. U date our workforce reward and reco nltion strate This year we have been updating our reward and recognition strategy. W8 have increased the allowance for our cycle lo work scheme and we have also inlroduced a car maintenance scheme. In January we launched Wagestream, a financial wellbeing inltiative that helps colleagues to.. track their pay in real lime, stream 300/0 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 wagest￿arn, and we plan lo increase this engagement further. We have also increased our business mileage rates from 35p to 40p a mile for all employe8S and have also put in place a life assuran￿ benefit which started in April 2022. To recognlse 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 3rd Sector Awards and Great British Care Awards and have 27 colleagues reaching the national and regional finals. Develo a now sulte of ke erformanco Indlcators which su ort tha new strato ic lan. We have now developed and agreed our key performance indicators for the coming year. These KPIS support our new Strategic plan and are summarised below. Perfonnince agalnst our Key Perforniance Indlcators for 2021.2022 Is summarlsed below: KPI 1. Increase our digital ability lo measure our impact and outcomes for the people we SUPPOft. Benchmark /0 of seThAices wlth electronic care plans in place against implementation target. Tar et 90Yo and above. Actual 90./. Narrative Nourish implementation continues to be on track for full implementation by December 2022. There are 22 CQC registered services. Monet Lodge was rated as Inadequate in February 2021. In June 2021 Kingshill was raled as Requires rovement. During this year community and social support services have moved to full uptake following the removal of 2. Provide hlgh quality care for the people who use our servic8S. CQC compliance in top quartile 0/0 of services rated as good or above. 90¥0 and above. 91/ 3. Ensure services are delivered in accordance with agreed performance and quality levels. Service utilisalion compared to contract requirements and actual hours delivered verses planned delivery hours. 80¢A and above. 910/0 Making Space l Annual Rèport 2021.22 Trustees, Annual Report Incorporating the Dlrectors, and Strategic Report COVID restrictions, though the vast majority of services continued operallng throughout this eriod. The number of services with Making it Real plans in place is steadily increasin There has been an increase in volunteers numbers 8$ people feel more confident to re- engage follow the COVID reslriclions. Services havo a wide range of processes and engagement tools in pLgce to gain feedback to continually improve services for the people we su ort. Vacancies have significantly increased from 6.9Yo at the start of the year following the COVID pandemic across the social care sector. Whilst we are managing to recruit a number of new recruits the increase in leavers has compounded this issue further. Tumover increased from 22.80/a al the start of the year lo 34.80/0 at year end. As above the COVID pandemic has significantly acted L¢ on 4. Actively involving people we support in the design and delivery of services. Wo of services with a 'Making il Real Plan, in place 70 /0 and above. 40, 5. Connecting people to Iheir communities and others through volunteering. Y4 of services with volunteer roles, actual versus plan. 80Yo and above. 480 6. Listening to the people we support to improve our services. °/0 of services with service user feedback mechanisms in place. 80¥0 and above. 900 7. Attract the right people wilh the right values in the right number. Vacancy Yo compared 10 2020 Skills for Care Report of 7.3Q/o. 6.5°A and below. 12.3. 8. Have a workforce that feels valued and rewarded. Turnover 0/0 compared to 2020 Skills for Care Report of 30.40/.. 25Q/o and below. 34.8° Making Spar,e I Ann11::il RP.rnrt ?0?1-?? ## **Trustees' Annual Report Incorporating the Directors' and Strategic Report** ||||leavers. This has
started lo improve
though towards
the end of the
year.
44.2%
The increased
levels of vacancies
and leavers this
year has impacted
upon staff woiking
towards
qualifications as
well as loosing
qualified staff, We
have increased
supply and
accessibility and
are starting to see
this improve.|leavers. This has
started lo improve
though towards
the end of the
year.
44.2%
The increased
levels of vacancies
and leavers this
year has impacted
upon staff woiking
towards
qualifications as
well as loosing
qualified staff, We
have increased
supply and
accessibility and
are starting to see
this improve.| |---|---|---|---|---| |9. Develop our
people's 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.|Actual
deficit pf
£493,658|
The main driver for
this negative
performance was
the £1,415, 317
deficit made at
Monet Lodge
Independent
Hospital.
Significant money
was spent on this
service following a
CQC Improvement
notice. However
thisinvestment in
time and money
did not
successfully
resolve the quality
issues at this
hospital and the
hospital closed on
31stMarch 2022.| |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.|Income
has
increased
from
£27.6m
to
£31.6m|Increased income
by 14.5%| When agreeing KPls 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 KPls are benchmarked against care sector average information mainly derived from Skills for Care. **10** Making Space I Annual Report 2021-22 **Trustees' Annual Report Incorporating the Directors' and Strategic Report** ## **Financial Review** Despite the pressures associated with coming out of the COVID-19 pandemic across the Charity, financial and otherwise, we continued to deliver on our Strategic Plan 2020-2024 by investing in our people and care improving technology. In year a commitment to at least pay the Real Living Wage was made together with above inflation rises for nursing and key management roles. Our operating deficit for the year was £656,658 which does not compare well to our prior year operating surplus of £969,353. The key driver to this negative movement in financial performance is the £1,415,317 deficit generated by Monet Lodge Independent Hospital which closed on 31[st ] March 2022. Quality reviews of all other CQC registered services together with the independent 'lessons learnt' report on Monet should help ensure such a large financial deficit is not incurred by any of our services again. Our total income rose from £27,571,420 in 2020-21 to £31,581,300 in 2021-22 which represents an increase of 14.5%. This increase in income was driven by tender successes after the reopening of services post COVID-19. Total expenditure before gains and losses rose from £26,602,067 to £32,237,959 which represents an increase of 21.2%. In large part this increase in one off costs associated with the final year of operation and closure of Monet Lodge Independent Hospital. However it should also be noted that our commitment to paying the Real Living Wage and increasing the pay of other key roles in order to help address the staffing crisis in Social Care is likely to suppress surpluses to at best break even in the short term. There was an overall net decrease in funds from £18,633,085 to £18,139,426. The deficit on our defined benefit pension schemes fell from £163,000 to nil. This is due to our final employee in the Lincolnshire Local Authority Pension leaving and confirmation that no further payments are due from us. ## **Reserves and Going Concern** We continue to regularly review and monitor our reserves position to ensure that we have adequate funds to support the work of the charity. Our reserves policy at the time of last year's report was to maintain an emergency operating reserve as a cash balance of two months expenditure which equalled £4,350,837. Our policy was to invest any free reserves over the emergency operating reserves into new services. In response to the reserves expended in Monet Lodge Independent Hospital's final year of operation the decision has been made to stop buying or developing new properties until there is a clearer picture of how the current cost of living crisis is going to impact on our finances. One new service with a potential development cost of £1.Sm may continue but no further property purchases will take place until we know Council and NHS funding is going to be impacted by current high inflation rates. Our balance of cash and short-term investments as at 31 March 2022 was £10,764,469. As of this date the two month emergency operating reserve was £5,323,042. Under last year's reserves policy £5,441,427 would have therefore been free to invest in new services. As stated above only a maximum of £1,500,000 will be spent on purchasing new property until there is a clearer picture of how inflation is going to impact our finances. A new planned maintenance reserve has been set up this year which currently stands at £82,799. The £5,441,427 of available reserves therefore need to be reduced by the possible £1,500,000 investment together with the planned maintenance reserve of £82,799 giving excess reserves £3,858,628. Prudence dictates that any plans to spend these are put on hold until a budget for 2023-24 and forecasts for future years are thoroughly reviewed and agreed. An updated reserves policy will be agreed in 2023-24 which takes account of financial challenges facing the social care sector. As a stop gap we are adopting a safety first approach so that any going concern worries are minimised. 11 Making Space I Annual Report 2021-22 ## **Trustees' Annual Report Incorporating the Directors' and Strategic Report** ## **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. ## **Subsidiaries** Footsteps 2000 Ltd became Making Space's first subsidiary on 1[st ] April 2021. Footsteps 2000 Ltd made a deficit of £16,768 on income of £72,884 in the year to 31[st ] March 2022. Footsteps has a bank balance of £81,483 with a net assets balance of £17,581. Making Space has not produced consolidated accounts due to the comparatively immaterial size of the finance of Footsteps 2000 Ltd. ## **Fundraising Practices** Making Space employs a Fundraising Manager and a Fundraising Coordinator. Both these employees are given delegated authority to make grant applications on the charity's behalf and to promote public appeals, events and challenges. Our employed fundraisers also encourage other Making Space employees, volunteers and supporters to raise funds for the charity. We do not engage a professional fundraiser or a fundraising agency. The charity is registered with the Fundraising Regulator and follows the regulator's Fundraising Code. To our knowledge we have complied fully with all regulatory fundraising standards. Those employees, volunteers and supporters who are encouraged to fundraise for us are offered guidance, advice and supervision from our Fundraising Manager and Coordinator. No complaints have been received concerning fundraising. We have acted to protect vulnerable people during our fundraising activities be ensuring potential **\,,IVIIVl,,;;J UII\.AVl..:1\,Ull'-4 VYIIU\. I.IIVJ \.AI V \.AVlll..4\.11 1� \. 11..4 1\.A 11-YY ._,,.._, 1,1..._, ,_, 't'YIII -- -t'-''""** • •- -•-•fundraising in a setting where people may lack capacity to make a decision. Consequently we do not seek to fundraise from service users but instead target family, friends and the general public. Donations are recorded and when thanked for their donation checks are made to ensure donors understand the purpose to which their gift will be put. If we have any suspicions that a donation was not freely then the donation will be returned. We never pressurise people into making a donation. **rlnnnr<> , ,nrlar<>+<>nrl u,h<>t tho\/ <>ro rlnn<>tinn tn <=1nrl hn1A1 tho rn na\/ ,.,;11 ho c::ni:>nt \/1/i:, ,:i\/nirl** ## **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. 12 Making Space I Annual Report 2021-22 ## **Trustees' Annual Report Incorporating the Directors' and Strategic Report** 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. Significant risks and mitigating actions are outlined below: ## **Poor quality support putting service users at risk which may also result in CQC enforcement action possibly resulting in significant financial loss and reputational damage** - Commissioned a 'root cause analysis' report from The Good Governance Institute on the failures at Monet Lodge Independent Hospital so that mistakes are not repeated. Failings at Monet raised concerns regarding the quality in other Making Space services. - Restructured the Senior Leadership Team in order to enhance line management of our services. - Moving to a functional management structure under which services are managed by specialists in the type of support given. - Undertaking an independent audit by former CQC inspectors in order to identify and address any quality and governance issues. ## **Failure of funding to keep pace with inflation costs driven energy costs** - Benchmark our services using industry standard pricing tools in order to help ensure services are as cost effective as possible and prices can be defended to Commissioners. - Put plans to use free reserves on hold until the full extent of the impact of inflation on our finances is known. - Freeze on head office recruitment until budget for 2023-24 is agreed. - Work with services where agency use is high in order to understand the reasons for such a high dependence on agency staffing and put remedial measures in place. ## **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. 13 Making Space I Annual Report 2021-22 ## **Trustees' Annual Report Incorporating the Directors' and Strategic Report** ## **Energy and Carbon Reporting** Making Space recognises the challenges presented by cllmate change and the responsibility it has in reducing the negative impact the charity has on the environment. We are committed to reducing our energy and fuel use as well as waste. An action plan will be agreed in 2022-23 which addresses each of these areas. This is our first year of environmental impact reporting and as such will present figures for the year 1[st ] April 2021 to 31 March 2022 which are in line with our financial reporting period. ## **Carbon Footprint (Greenhouse gas emissions)** |Type ofemission|Activity|2021-22| |---|---|---| |||tCO2e| |Direct (Scope 1)|Gas|384| |
Enerav Indirect (Scope 2)|Electricity|174| |||| |Intensity metric||| |
Number of employees|**989**|| |
Tonnes of CO2e|0.56|| **A ssessmen parame ers t t** Environmental lead Wyn Jones, Chief Finance Officer Methodology used UK Government Green House Gas conversion factors for company reporting ## **Our Plans f** ~~**r**~~ **2022-23** ## **We will:** - Reinslale lhe annual lruslee awards evenL - Agree an environmental action plan. - Complete the implementation of the Nourish Care Management System. - Benchmark Making Space service costs against industry standards so as to ensure a value for money offer to Commissioners. - Improve leadership, governance and oversight of CQC registered services. - e Carry out a Trustee skills audit - lmbed an integrated governance framework **14** Making Space I Annual Report 2021-22 ## **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 7 JB. ## **Trustees** Names of all who served as Trustees during the reporting period, and up to the date of signing: |A Teague|Chair of the Trustees - resigned 23Jun 2022| |---|---| |A Broadhurst|| |W Bonnefin|Appointed 18 Nov 2021 Resigned 24 Aug 2022| |N Hormozi|| |SHumphreys|Resiqned 10 May 2022| |
SHull|
Resiqned 21 Feb 2022| |M Jenkinson|Resiqned8Dec 2022| |E Johnstone|Appointed Chair 23 Jun 2022| |K Porceddu|| |K Wykes|Appointed 18 Nov 2021| ## **Chief Officers of Making Space** |**Chief Officers of Making Space**||| |---|---|---| |Chief Executive:||R Peacock| |ExecutiveDirectorof Finance:||W Jones| |ExecutiveDirector of Operations:||GChisnall| |Executive Director of Human Resources
ExecutiveDirector of Quality and Compliance||P Orton
P Dillon| |CompanySecretary||W Jones| ## **Solicitors** Hempsons Limited 100 Wood Street London EC2V ?AN Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES ## **Auditor** Mazars LLP One St Peter's Square Manchester M2 3DE ## **Bankers** Lloyds Bank Pie Town Hill Warrington WA1 2LP 15 Making Spacfj l Annual R8POrt 2021-22 Trustees, Annual Report Incorporating Ihe Directors, and Strategic Report 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, 6 posts were lilled. Trustees are elected at the Annual General Meeting (AGMI and hold office for 3 years, subject to Ihe terms of the Memorandum & Articles of Asso¢i8tion. 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 addilional Trustees and applications or nomlnatlons for Trustee positions are received and reviewed by the Board against a skills matrix and role descrlptlon, In accordance with the Trustee Recruitment Policy and Procedure. Prospective Trustees are interviewed lo 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-golng support from the Chaiman and other Board members. Daily operational running of the organisation is delegated to the Chief Executive and the Executive Management Team based al Head Office in Warrington. The Head Office houses Ihe 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 th8 purposes of the Mental Health Ad 1983 IMHA), Making Space is the detaining authority and Iherefore "Hospital Managers. for patients who may be detained tjnder 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 lo discharge patients. The Trustees have the power lo appoint experienced "Associate Hospital Managers" lo 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 procedures18id out in the Trustee Handbook. Th8so include policies and procedures for effective induction of new Trustees and a thorough learning and developmènt programme for all Tnjstees. Truslee induction includes an inlroduclion lo The Charity Commission's Charity Governance Code and the seven pillars of good governance. The Charity Commission Code of Governance is adopled by the charity and Making Space is compllant Sn all areas. Trustees 8re intrDduced to their legal responsibililies by working through The Essential Trustee before gelling an understanding of the seven principles of leadership, integrity, decision-making, risk alld control, board effecliveness, 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 Ihere has been no change in the current period. Trustees must complete online mandatory training. A review of the pay of Executive Directors was undortakon using information from external data resources. The Board ofTrustees and the CEO agreed the actual pay placing Ihem within the appropriale range identified by these external resources. The only Trustee role which it is possible to pay under M8king 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 followSng legal advice and receiving Charity Commission approval. A remuneration rale of £10,000 per year was agreed following a benchmarking exercise with payments made to the Chairs of similar charities. The Chair chose not to receive payment in the year to 31, March 2022. 16 Making Space I Annual Report 2021-22 ## **Trustees' Annual Report Incorporating the Directors' and Strategic Report** ## **Employee Engagement** The COVID pandemic has impacted significantly upon our progress with our People Plan as we have been required to respond to unprecedented workforce issues during the year. We have though continued to progress on a number of people related areas. The COVID pandemic has had an unprecedented effect upon our workforce. To recognise this we have maintained full occupational sick pay for any colleague being required to self-isolate during the year. Additionally, in March 2022 we also made a £100 retention bonus to recognise the extraordinary efforts of our colleagues. In December 2021 the board committed to significantly increase the pay of our colleagues on the lowest levels of pay, whilst at the same time addressing eroding pay differentials between more senior levels. This resulted in pay being increased in two steps in January 2022 and April 2022. Overall 85% of colleagues received between a 3.9% and a 9.2% pay increase. Building upon our 2021 Employee Engagement survey we carried out several listening events for colleagues and managers to develop a more qualitative understanding of some of the findings. This included fair treatment at work, leadership and reward. This learning has been used to inform our action plan, including revising our whistleblowing policy, improving rewards and specifically improving pay further, communication and our leadership programme. We have also continued to embed our values through the introduction of a revised performance development and review policy and the introduction of our Living our Values Awards, which were introduced in April 2021. The awards have been well received and we get a number of nominations, then selecting a monthly winner. One of the people we support has participated as a judge throughout the last year to help us to choose the winners. We have furthered the improvements in communications we made during the previous year with a monthly video update from our CEO Rachel Peacock. To recognise the achievements of our employees we have again taken part in a number of external awards in the last year. We were delighted to have won several regional eves at the Great British Care Awards and at the National finals we were a highly commended runner up for Care Employer of the Year. ## **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 Paries and Co-production with other Organisations** Footsteps 2000 Ltd which is a carers service specialising in supporting the families of those impacted by addiction became a subsidiary of Making Space on 1[st ] April 2021. 17 Making Space I Annual Report 2021-22 ## **Trustees' Annual Report Incorporating the Directors' and Strategic Report** Making Space continues to be an active member of the National Association of Mental Health Providers, which aims to briny cum;isle11c.;y c: 1d prof essionalisrn across tile 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 beth in cash and in Making Space's bank account. Making Space has no control over this and it is therefore excluded from the accounts. The value held amounts to £56,849 (2021: £56,843). ## **Statement of Compliance with Section 172 (1) Companies Act 2006** The board of Trustees of Making Space consider that both individually and together for the year ended 31[st ] March 2022 they have acted in the way they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole and having regard to the matters set out in s.172 (1) (a) to (f) as below: - a) The likely consequences of any decision in the long term; - b) The interests of the Charity's employees; - c) The need to foster the Charity's business relationships with suppliers, customers and others; - d) The impact of the Charity's operations on the community and the environment; - e) The desirability of the Charity maintaining a reputation for high standards of business conduct; and - f) The need to act fairly between members of the Charity. - a) The likely consequences of any decision in the long term: The trustees acknowledge that all the decisions they take should have regard to the long term interests of the Company and its stakeholders. The impact of any decision is discussed and one of the factors weighted in that discussion is its lasting implications. ## b) The interests of the Charity's employees: The trustees affirm that the Charity cannot function without the goodwill, hard work and dedication of its employees. It knows that the key to maintain this relationship lies in ensuring that the employee's interests align with those of the Charity. The Charity regularly seeks the views of its staff. Regular updates on company news and performance is shared with all employees. The Charity also carries out frequent benchmarking exercises where it measures itself against other employers to ensure that it continues to be seen as an employer of choice by prospective candidates. These assignments examine the salaries and other benefits offered by competitors in the same or similar employment markets. Making Space is committed to at least paying the real living wage. 18 Making Space l Annual RètK)rt 2021-22 Trustees, Annual Report Incorporating the Directors, and Slrateglc Report c) The need to foster the Charity's business relationships with suppliers, customers and others: The Irustee8 recognise that one of their core responsibilities is to encourage the developm8nt of it5 connections with suppliers and customers. E m ployees a re ex pected that part of their (iuties is to maintain good r8lalionships with ils partners outside Ihe organisation and that this is cruoial to the success of the Company. Managers are expected lo foster positive working relationships with NHS and Local Authority commissioners. Users of our services are regularly asked for feedback on the quality of the seNices we deliver. A service user led Making Change Group undertakes quality audits and feeds into service development and improvement. d) The Impact of the Company's operations on the community and the environment.. The trustees know that the Making Space services need to contribute positive￿ to the communities in which they operate. Both Making Space setvice users and employees are encouraged to volunteer for good causes in their localities. The Charity also ensures that it compli8S Wlth best practice where possible to minimise its environmental affect in all arenas. e) The desirability of the Charity maintaining a reputation for high standards of business conduct The trustees of lh8 Charity recognise their important duty lo ensure that the Charity complies with the laws and regulations. The directors understand that reputational damage is a major risk to the Charity and strive to ensure that the policies and practices to avoid and mitigate this risk are of the highest standard. Th8 Charity also takes very seriously the need to pay its suppliers on time as a means of maintaining its standing in Ihe sector. f) The need to act fairty between members of the Charity.. The trustees know that the Charity needs to pay regard lo the interests of its members equally. It also recognises that there will be occasions when the interests of members are in conflict and Ihat any contest should be resolved in a way that balances those competing interests. Member views are sought if such a situation arises, and any decision taken is documented and explained in an open and accountable way so that all the members can see what actions were taken to reach a settlement. 19 Maklng Spa(x l Annual Report 2027.22 Trustees, Annual Report Incorporating the Dlrectors, and Strateglc Report Statement as to dlsclosure of Information to ors In so far as the Trustees are aware al the time of approving our Trustees, Annual Report: There is no relevant Infomiallon, being information needed by the auditor in connaction 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 hel she is obliged to lake as a director in order to make Ihemselves aware of any relevanl audit infomiation and to establlsh that the auditor is aware of that information. This Annual Report is signed by the Chair on beha￿ of the Board of Trustees. The Truste8s also approve the Strategic Rgport, wh￿h is contained wlthln this report. in their capacity as company directors. By order of the Board of Trusle8S Elaine Johnstone Chair of Trustees Date.. 28 November 2022 20 Making Space l Annual Report 2021-22 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 stralegic report and the financial statements in accordance with applicable law and regulations. Company law requir88 th8 Trustees to prepare financial staloments for each financi81 year in accordance with United Kingdom Generally Accepted Accounllng Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied Ihal they give a true and fair view of the state of affairs of the charily and of the incoming resources and application of resourc8s, including the income and expenditure, of the charity for that period. In preparing these financial slalements, the Trustees are required to.. Select suitable accounting policies and then apply them conslstentiy. Make judgements and a￿OUntIng estimates that are reasonable and prudent- Slate 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 a￿ responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any tim8 the financial position of the charity and enable them lo ensure that the financial slatements 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 arFd 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 stalemenls, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity's website is the responsibllity of the Trustees. The Trustees, responsibility also extends to the ongoing integrity of the financial statem8nts contained therein. Approved on behalf of the Board of Trustees Elalno Johnstone Chalr of Trustees Date: 28 November 2022 21 Making Spa¢* l Annual ReFOrt 2021-22 Independent Auditor's Report to the Members of Making Space Oplnion We have audited the financial statements of Making Space (tho 'charity') for the year ended 31 March 2022 which comprise the Statement of Financial Activities. Balance Sheet, Cash Flow Ststement and notes to lh8 nancial stalemÈnts, Includlng a summary of slgnlflcant accountlng pollcles. The flnahclal rèportlng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" {United Kingdom Generally Accepted Accounting Practice). In OLir opinion, Ihp. finanr.iAI 8tAtp.mp.nt8'. give a true and fair view of the state of the charity's affairs as at 31 March 2022 and of ils income and expenditure for the year then ended. have been properly pr8par6d in accordance with United Kingdom Generalty Accepted Accounting Practice,. and have been prepared in accordance with the reqsjirements of the Compan￿$ Acl 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) IISAS (UKI) 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounllng in the preparation of the financial statements is appropriate. Based on the work we hav8 P8rfomed, we have not identified any material uncertainties relatlng io events or conditions that, individually or collectively, may cast significant doubl on the charity's ability lo continue as a going concem for a pèriod of al least twelve months from when the financial 5tatemer)ts arei (iullivribe(J lur issue. Our responsibilities and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of thls report. other Information The other infomiation comprises the information included in Ihe annual report, other than the financial statements and our auditor's ￿pOrt Ihereon. The trustees are responsible for the other infomialion. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in Dur report, we do not express any form of assurance conclusion thereon. 22 Making Space I Annual Report 2021-22 ## **Independent Auditor's Report to the Members of Making Space** In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' Report which includes the Strategic Report and the Directors' 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 included within the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report included within the Trustees' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' 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 trustees' responsibilities statement set out on page 21, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Making Space I Annual Report 2021-22 ## **Independent Auditor's Report to the Members of Making Space** - Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, employment regulation and health and safety regulation, �nti-hribAry, corruption and fraud, money laundering, non­ compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material eftect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice. We evaluated the trustees' and management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted and endowment funds, income recognition, fixed asset depreciation and significant one-off or unusual transactions. Our audit procedures **were** designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to: - Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations; - Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and - Considering the risk of acts by the charity which were contrary to applicable laws and regulations, inr.luding fraud. Our audit procedures in relation to fraud included but were not limited to: - Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud; - Gaining an understanding of the internal controls established to mitigate risks related to fraud; - Discussing amongst the engagement team the risks of fraud; and - Addressing the risks of fraud through management override of controls by performing journal entry testing. There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 24 Nicola Wakefield (Dec 21, 2022 19:01 GMT) 21-Dec-2022 Making Space I Annual Report 2021-22 ## **Statement of Financial Activities** ## **(Incorporating the summary income and expenditure account)** ## **Year ended 31 March 2022** |**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**
**(EXPENDITURE)/INCOME BEFORE**
**GAINS/(LOSSES)**
Actuarial gains/(losses) on defined
benefit pension schemes
25
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
**TOTAL FUNDS BROUGHT**
**FORWARD**
**TOTAL FUNDS CARRIED**
20
**FORWARD**|**Unrestricted**
**Restricted**
**Total funds**
**Total funds**
**funds**
**funds**
**2022**
**2021**
**£**
**£**
**£**
**£**
89,287
0
89,287
142,750
31,250,436
162,372
31,412,808
27,351,519
8,040
0
8,040
4,020
47,180
0
47,180
67,360
23,985
0
23,985
5,771|**Unrestricted**
**Restricted**
**Total funds**
**Total funds**
**funds**
**funds**
**2022**
**2021**
**£**
**£**
**£**
**£**
89,287
0
89,287
142,750
31,250,436
162,372
31,412,808
27,351,519
8,040
0
8,040
4,020
47,180
0
47,180
67,360
23,985
0
23,985
5,771|**Unrestricted**
**Restricted**
**Total funds**
**Total funds**
**funds**
**funds**
**2022**
**2021**
**£**
**£**
**£**
**£**
89,287
0
89,287
142,750
31,250,436
162,372
31,412,808
27,351,519
8,040
0
8,040
4,020
47,180
0
47,180
67,360
23,985
0
23,985
5,771|**Unrestricted**
**Restricted**
**Total funds**
**Total funds**
**funds**
**funds**
**2022**
**2021**
**£**
**£**
**£**
**£**
89,287
0
89,287
142,750
31,250,436
162,372
31,412,808
27,351,519
8,040
0
8,040
4,020
47,180
0
47,180
67,360
23,985
0
23,985
5,771| |---|---|---|---|---| ||31,418,928
162,372
31,581,300
27,571,420|||| ||32,070,314
167,645
32,237,959
26,602,067|||| ||32,070,314
167,645
32,237,959
26,602,067
(651,385)
(5,273)
(656,658)
969,353|||| |||·J63,000|0|163,000
(73,000)| ||(488,385)
(5,273)
(493,658)
896,353
17,626,925
1,006,160
18,633,085
17,736,732|||| ||17,138,539
1,000,887
18,139,426
18,633,085|||| All the above results derive from continuing operations. All gains and losses recognised in the year are included above. 26 Making Space I Annual Report 2021-22 ## **Balance Sheet** ## **As at 31 March 2022** |**Notes**
**FIXED ASSETS**
Tangible assets
13
Investments, cash and cash equivalents
**TOTAL FIXED ASSETS**
**CURRENT ASSETS**
Stock
14
Debtors
15
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
25
**TOTAL NET ASSETS**
**THE FUNDS OF THE CHARITY**
Restricted funds
18,20, 22
Unrestricted funds
18,20
**TOTAL CHARITY FUNDS**
20|**Restated**
**2022**
**2021**
**£**
**£**
8,304,026
7,869,894
7,552,395
6,649,798| |---|---| ||15,856,421
14,519,692| ||0
461
3,846,572
2,718,006
3,212,074
4,716,208| ||7,058,646
7,434,675| ||(4,775,641)
(3, 158,282)
2,283,005
4,276,393
18,139,426
18,796,085
0
(163,000)| ||18,139,426
18,633,085| ||
1,000,887
1,006,160
17,138,539
17,626,925| ||18,139,426
18,633,085| 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 22nd November 2022 and signed on its behalf by: ## **Elaine Johnstone** Chair of Trustees Date of Signing: 28 November 2022 27 Making Space I Annual Report 2021-22 ## **Cash Flow Statement** ## **Year Ended 31 March 2022** |**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 (used in)/provided by investing activities**
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at the beginning of the reporing period**
**Cash and cash equivalents at the end of the reporting period**
**Reconciliation of net (expenditure)/income 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
(lncrease)/decrease in debtors
lncrease in creditors
(lncrease)/decrease in pension liability
**Net cash provided by 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**|**2022**
**£**
85,122
47,180
1,000
(734,839)
(902,597}
**2021**
**£**
2,419,054
67,360
425,660
(849,083)
{549,298}| |---|---| ||(1,504,134)
(1,504,134)
4,716,208

1,513,693
1,513,693
3,202,515| ||3,212,074
4,716,208| ||**Current**
**Year**
**£**
(493,658)
299,708
(47,180)
0
461
(1,128,567)
1,617,358
(163,000}
**Prior Year**
**£**
896,353
271,886
(67,360)
0
16
373,084
869,075
76,000| ||
85,122
2,419,054| ||**Current**
**Year**
£
3,212,074
0
0
**Prior Year**
£
4,716,208
0
0| ||3,212,074
4,716,208| 28 Making Spate l Annual Report 2021-22 Notes to the Financial Statements For the Year Ended 31 March 2022 1. ACCOUNTING POLICIES Company status Making Space is a private company, limited by guarantee, and 8 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 princip81 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 Iheir accounts in accordance with the Financial Reporting Standard applicabie in the UK and Republic of Ireland IFRS102) (effective 1 January 2019) (Charities SORP 2019 (FRS102) the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS102) and the Companles Act 2006. The particular policies adopled by the Trustees are deScr￿bed b81ow and have been applied consistently throughout the current and preceding year. Making Space meets the definition of 8 publlc benefit entity under FRS 102. Assets and liabililies are initially recognised al historical cost or transaction value unless Dtherwise staled in the relevant accounting policy note(sl. Proparation of accourts on a golng concern basls Truslees are aware that the current high rate of inflation and recruitment problems for Social care make for a very challenging PLtblic sector funding environment going forward. The government is already consulting on a cap on social housing rents of 3°A, 5°A or 7.1.. The government's preferred Option of 5tr/0 would result in an income reduction of about £300,000 in the customary increase in rental income. Prudence dictates thal Making Space plans for other public sector funding failing lo keep pace with infl81ion. Scenario planning where the key risks associated with inflationary fee uplifts and agency costs will form a key part of the 2023- 24 budget setling process. In the interim Trustees have taken the decision to cease investlng In new property purchases. Prior years, positive financial performance has resulted in Making Space having a strong balance sheet with cash and investment balances totalling £10,764,469. This Cash balance is suffictent to offset forecast operating deficits in the rnedium term. Judgements In applylng accountlng pollcles and key sources of estSmatlon of uncertalnty In preparing these financial statements, th8 directors have made judgements where appropriate. The judgement subject to the greatest uncertainly is the provision for bad debt. All debts over five months old are treated as doubthjl debts. (Xher key sources of estimation uncertainty include.. Depreciation of tangible fixed assets and impairment- T8ngible fixed assets are depreciated over their useful lives taking into account residual lives. where appropriate. The actual Ilves of the assets and residual lives are assessed annually and may vary depending upon a number of factors. In assessing asset lives, factors such 8$ technological innovation, product life cycles and maintenance programmes are taken into account. In considering whether indications of impairment exist, factors taken into consideratlon include the economic viabilily and 8XP8Cted future performance of the asset. 29 Maklng Spae8 l Annual Report 2021-22 Notes to the Financial Statements For the Year Ended 31 March 2022 Incomlng resourcos All income is recognised in the statement of financial activities when the conditions for receipt have been m8t and there Is reasonable assurance of receipt. The following accounting policies ar8 applied to incom8-. Grants, ieiilb ￿11￿ tsvivic& Ll?aiyes IEceivable Grants receivable and rents receivable are accounted for on an accwals basis. Fudough Monies received under the furlough scheme are accounted for under an accruals basis. Donations Donations and all other receipts trom 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*nd are included in incoming resources in the statement of financial activities and shown in the balance sheet. Investment income Invostment income is accounted for when receivable. Cash at bank arKI cash in hand includes cash in the current ballk account. Investments consist of cash held on deposit for period5 of twelve months. As a matter of policy, the Truslees r8view annually the inveslment strateqies of Making Space. The Trustees lave endorsed a continuaiion of the risk averse policy to invest in cash with a number of credit-referenced UK regist8red banks. Legacies Legacies and donalSons are accounted for when conditions for their receipt have been m8t. The Charity regards a legacy as receivable when il becomes reasonably certain that the legacy will be received and the value of the incoming resources can be measured wilh sufficient reliability. Rosour¢os expended Resources expended are recognised in the period in which they are incurred and are gross of irrecoverabl8 VAT. The Charitvs operating costs include staff costs. premises costs and other related costs. Such costs are allocated between charitsble activili8s and governance wsts. Staff costs are allocated according to the costs of staff working directly in the relevant activity. When costs are not directly altribulable to any activity, they have been apportioned according to the total of all olher costs relating to each activity. 30 Making Space l Annual ROfK)rt 2021-22 Notes to the Flnancial Statements For the Year Ended 31 March 2022 Costs of generating funds Costs of generating funds include all expenditure direclly 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 seNices. Governance costs Governance costs represents expenditure incurred in the managem8nt of the Charity's assels. 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 purpos8s. Any Gosts of raising or administering such funds are charged against specific funds. Cash held on trust The charity holds money on behalf of Se￿iCe users both in cash and in Making Space bank account. Making spa￿ has no control over this and St is Iherefore excluded from the accounts. Unrestrlded funds Gener81 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 heid in order to finance both working capital and capital investmenL Designated funds Designated funds comprise unrestricted funds, which have been put aside at the discretion of the Trustees. Tanglblo Flxod Assets Flxed assets (with the exception of freehold landl are stated at cost less depreciation. Repairs and maintenance are charged to the SOFA during Ihe period in whlch they are incurred. 31 MakSng Spacè l Annual RepDrt 2021Q2 Notes to the Financial Statements For the Year Ended 31 March 2022 Depreciation is provided on the following tangible fixed assets at rates calculated to writ8 off the cost on a slraighl line basis over their expected useful economic lives as follows.. Leasehold buiklings 4VD per annum or the temi of the lease if less than 25 years Not depreciated Land ?W. ntsr Jnnbim Fixtures and equipment Motor vehicles Computers 20% per annum 250/0 per annum 20/0 per annum Penslon costs Pension schemes operated by the Charity are as follows: lal Defined benefit scheme Making Space has 8mph)yees in four defined benefit schemes. The expected cost of providing pensions in this scheme, as calculated peiiodically by professionally qualified actuaries, is charged to the SOFA to spread the cost over Ihe service lives of employees In the scheme, in such a way that the pension cosl is a substantially level percentage of current and expected future pensionable payroll. (bl Making Space contributes to five group personal pension schemes. Contributions are charged to the SOFA account when payable. T8rminatlon Pollcy Termination benefits are provided for when the charity offers voluntary redundancy before normal retirement dale or when the charity decides to terminate employment. Termination benefits in accordance with FRS 102, Ernployee Benefits, are recognlzed as a liability and an expense when the entity can no longer withdraw the offer of Ihose benefils. Taxatlon The company is a registered Charity 8nd has no liability to corporation tax on its charitable acllvities. Stocks Slocks are no longer valued due to the low value of stocks held. Leasos Where assets are financed by leasing agreements that give rights approximating to ownership {finance leasesl, the assels are treated as if they had been purchased outright. The amount capitalised is the presenl 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 15 charged to profit or loss over the shorter of estimated useful economic life and the term of Ihe lease. 32 Making Spacg l Annual Rerort 2021.22 Notes to the Financial Statements For the Year Ended 31 March 2022 Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to profil or loss overthe 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 amounls payable to the lessor. All other18ases are treated as operating leases. Thelr annual rentals are charged to profit or loss on a straight- line basis over the term of the lease. Reverse premiurns and similar incentives received to enter into operating lease agreemenls are released to profit or loss over the term of the lease. Impaim)ent of flxed assets Fixed assets are assessed at each reporting date to determine whether Ihgre 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 impairmenl. An impairnent loss is recognised for the arnount by which the assot's carrylng amount exceeds its recoverable amount. The fecovefable amount is the higher of an asset's lor CGU'S) fair value less costs to sell and value in use. For the purposes of assessing impairmenl, assets are grouped at the lowest levels for which there are separately identifiable cash flows ICGUsl. 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 pericmls may no longer exist or may hav8 decreased. Government grants Govemment grants represent the assistance by government in the form of a transfer of resources to a charity in retum for past or future compliance with specified conditions relating to the operaling activities of the charity {or its subsidiary). Government refers lo government. government agencies and simllar bodies whether local, national or international. Financial instrumonls Debtors and creditors Debtors and creditors receivable or payable in one ye8r are recorded at transaction price. h and cash e uivalents 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 contrad size. Int•r•sl rncoivable Interest is recC￿niSed using the effective interest method. 33 Making Space I Annual Report 2021-22 ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **2. INCOME FROM CHARITABLE ACTIVITIES** ||**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**|**Unrestricted**
**Restricted**
**funds**
**funds**|**Total**| |---|---|---|---|---|---| ||**2022**
£|**2022**
£|**2022**
£|**2021**
**2021**
-·--···--
£
£|**2021**
· · ·-··--**-** -
£| |Head Ofice|0|0|0|5,161
0|5,161| |Residential
care homes
and
independent
hospitals|10,783,415|117,372|10,900,787|9,313,258
117,372|9,430,630| |
Social
inclusion
services|1,459,652|0|1,459,652|1,554,092
0|1,554,092| |Improve
access to
psychological
therapies|462,890|0
462,890||350,505
0|350,505| |Carer
suooort|1,040,269|45,000
1,085,269||458,293
46,250|504,543| |Community
dementia
services|511,948|0
511,948||780,860
0|780,860| |Supported
housing|12,668,416|0
12,668,416||10,972,412
0|10,972,412| |
Home care
services|4,323,846|0|4,323,846|3,528,161
0|3,528,161| |FurlouQh|0|0|0|225,155
0
27,187,897
163,622|225,155
27,351,519| |Total|31,250,436|162,372|31,412,808||| ## **3. INCOME FROM OTHER TRADING ACTIVITIES** Rental income ## **4. INCOME FROM INVESTMENTS** Interest received |**2022**|**2021**| |---|---| |£|£| |8,040|4,020| |8,040|4,020| |**2022**|**2021**| |£|£| |47,180|67,360| |47,180|67,360| ## **5. OTHER INCOMING RESOURCES** Sale of goods Miscellaneous income |**2022**|**2021**| |---|---| |£|£| |5,170|0| |18,815|5,771| |23,985|5,771| 34 Making Space I Annual Report 2021-22 ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **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**
**Grant**
**Suppor**
**costs**
**funding of**
**costs**
**activities**|**Direct**
**Grant**
**Suppor**
**costs**
**funding of**
**costs**
**activities**|**Direct**
**Grant**
**Suppor**
**costs**
**funding of**
**costs**
**activities**|**Governance**
**Total**
**costs**
**2022**|**Governance**
**Total**
**costs**
**2022**| |---|---|---|---|---|---| ||**£**
**£**
**£**|||**£**
**£**|| |Head ofice|0
0||3,546,627|73,735
3,620,362|| |Residential care homes and
independent hospitals|11,238,755
0||0|0
11,238,755|| |
Social inclusion|1,214,014
0||0|0
1,214,014|| |Improve access to psychological
therapies|423,478
0||0|0
423,478|| |Carer suooort|973,871|0|0|0
973,871|| |Community dementia support|460,104|0|0|0
460,104|| |Supported housina|10,250,901|0|0|0
10,250,901|| |Home Care Services|4,056,473|0|0|0
4,056,473|| |Total|28,617,596|0|3,546,627|73,735
32,237,958|| ||||||| |Unrestricted|28,449,951|0|3,546,627|73,735
32,070,313|| |Restricted|167,645|0|0|0
167,645|| |Total|28,617,596|0|3,546,627|73,735
32,237,958|| ||||||| ||**Direct**
**Grant**
**costs**
**funding of**
**activities**||**Suppor**
**costs**|**Governance**
**costs**|**Total**
**2021**| ||**£**|**£**|**£**|**£**
**£**|| |Head ofice|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| |
Furlough scheme|225,155|0|0
0||225,155| |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 suooort|702,149|0|0|0|702,149| |Supported housina|8,662,794|0|0
0|0|8,662,794| |Home Care Services|3,245,365|0||0|3,245,365| |Total|23,171,073|0|3,154,047|51,792|26,602,067| ||||||| |Unrestricted|23,245,249|0
0|3,154,047|51,792|26,451,088| |Restricted|150,979||0|0|150,979| |Total|23,396,228|0|3,154,047|51,792|26,602,067| **35** mak￿lg Space l Annual Rory)rt 2021-22 Notes to the Financial Statements For the Year Ended 31 March 2022 8. SUMMARY ANALYSIS OF EXPENDITURE AND RELATED INCOME FOR CHARrrABLE ACTIVITIES In¢omo Costs Net cost funded from olher Income 2022 Income Costs Nèt Cost funded from other Income 2021 2022 2022 2021 2021 Hèad offic8 Governance costs Residentlal care homes and in(Jependenl hos Social inclusion Impiove access lo psychological thcra Carer su ort Community dementia su Su orted housin Extra care including homecare Furlou Total 3.546,627 73,735 11,238,755 3,545,627 73.735 1337.9691 5,161 3.154.047 51.792 8.457.785 3,148,886 51,792 972,845 10,900,786 9.430,630 1459 652 462.8 1214 014 423,478 245 638 39,412 1.554,092 350,505 1 352 831 308,304 201,261 42,201 1 085,269 511,948 973,871 460,104 111.398 51,844 504,543 780.860 441,845 702.149 62,698 78,711 12,668.416 4,323,846 10,250,901 4,056,473 2,417.515 267,373 10,972,412 3,528,161 8,662,794 3.245,365 2,309,618 282,796 225,155 27,351,519 225.155 26.602,067 31,412,807 32,237,958 825,151 749,452 9. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS Support costs Governance costs 2022 Total costs Support Costs 2021 Governance costs 2021 Total costs 2022 2022 2021 Chief Executive Business Services Financo Develo 171,801 255,206 392,865 271,634 474,584 593,244 213,618 380,748 203,956 88,212 171.601 255,206 392,865 271.634 474,584 593,244 213,618 380,748 203,956 88,212 198,306 211,865 396,795 266,623 458,483 476,524 206,271 375,503 236,213 40,888 198306 211,865 396,795 266,623 458,483 476,524 206,271 375,503 236,213 40.888 ment Human resources Markelin Qualil assurance C8nlral mana ement Membership, Voluntary and User Inclusion Other Audll fèes and accountsnc costs Trustee costs I njstee indemnity insurance Total 500.959 500,959 39,070 286.576 288,576 35,900 39.070 35,900 33.666 1.000 33,666 1.000 14.892 1.000 14,892 1.000 3 546.627 73.736 3,620.363 3,154,047 51.792 3,205,839 36 Making Space I Annual Report 2021-22 ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **10. ANALYSIS OF TOTAL RESOURCES EXPENDED** ||**Staf costs**|**Other**|**Depreciation**|**Total**| |---|---|---|---|---| ||**2022**|**2022**|**2022**|**2022**| ||£|£|£|£| |**Charitable expenditure**||||| |Direct charitable expenditure|23,553,012|8,311,504
299,708||32,164,224| |Governance costs|1,020|72,715
0||73,735| |**Total resources expended**|23,554,032|8,384,219
299,708||32,237,959| ||**Staf 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| ## **11. NET INCOMING/ (OUTGOING) RESOURCE** ||**2022**|**2021**| |---|---|---| ||£|£| |Net incoming resources for the year are stated after charging/(crediting):Rentals||| |under operating leases|261,029|242,783| |Depreciation of tangible fixed assets - owned|299,708|271,886| |(Surplus)/deficit on disposal of fixed assets|0|0| |Auditor's remuneration for the audit of the Charity's annual accounts|39,070|32,000| ## **12. INFORMATION REGARDING EMPLOYEES AND TRUSTEES** |**Staf costs comprise:**
Wages and salaries
Agency costs
Social security costs
Pension costs
Termination and redundancy costs|**2022**
£
18,405,891
3,017,881
1,353,073
534,165
243,022
**2021**
£
16,739,531
836,183
1,183,360
492,087
98,004| |---|---| ||23,554,032
19,349,165| 37 Making Space I Annual Report 2021-22 ## **Notes to the Financial Statements For the Year Ended 31 March 2022** The average monthly number of employees during the year was made up as follows: |Management
Administration
Operational|**Number of**
**actual**
**employees**
**2022**
28
50
1,001
**Number of**
**actual**
**employees**
**2021**
29
45
915| |---|---| ||989| 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|**2022**
0
3
1
**2021**
1
4
1| |---|---| ||**4**
6| Retirement benefits are accruing under a defined contribution scheme for these four employees (2021: six). Total contributions paid in year for the four employees was £73,182 (2021: £72,035). ## **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. ## **TERMINATION AND REDUNDANCY COSTS** £243,022 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 (2021 - £1,000). The secretarial and administrative cost of the Board of Trustees was £33,666 (2021 - £14,891) for the ten Trustees who served in 2022 (2021 - eight). Within this total an amount of £292 was paid to Trustees as expenses (2021 - £72). No remuneration was paid to any trustee this year (2021 - 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 £532,352 (2021 - £478,014). 38 Making Spac8 l Annu81 Rewrt 2021.22 Notes to the Financial Statements For the Year Ended 31 March 2022 13. TANGIBLE FIXED ASSETS FOR USE BY THE CHARrrY Assets undor constructlon Frnehold land and bulldlngs Long loasehokl property Flxtures and •qUipme￿l Motor vehicles Total tangiblè flxod assets Cost A8 at 1 April 2021 1.000 8,473,467 2,259,226 381,520 55,829 11,171,042 Additions Dis osals Transfer As at 31 March 2022 300,991 265,688 93,883 48,250 130.241 26,028 734,840 130,241 1,000 11774,641 1,000 300,991 8,739,155 2.353 109 299,529 Accumulat9d (50 As 8t 1 A ril 2021 Cha e for the Dis OS818 Transf8rs As at 31 March 2022 r8clatlon 1431,707 1636 371 73,586 202.874 52.597 130,241 30,195 15,000 3,301,147 299,708 130,241 ear 1590 232 1709 957 125,230 45,195 3,470.614 N8t book value As at 31 March 2022 As at 31 March 2021 300 991 7 148,923 7 041 759 643,152 622,855 174,299 178,646 36,662 25,634 8,304.027 7,869.894 Freehold land and buildings include 8 specific property with a nel book value of £684,279 {2021 - £707,548). The tille deeds of this propgrty contain provision such that on any eventual sak all proceeds should be remilted to the relevant Health Authority. Long leasehold include a speclflc property with a net book value of £48,95312021 £73,432). The lille deeds of this property contain provision such that on any eventual sak all the pr(Keeds should be remilted lo the relevant Health Authority. 14. STOCKS 2022 2021 Equipment. publicatKJns and goods for resale 461 15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 2021 Tiade debtors Other debtors Prepayments and accrued income 2,588.659 39,326 1,218,587 3,846.572 1,783,734 44,343 689,929 2.718,006 39 Maklng Space l Annual R8p)rt 2021.22 Notes to the Financial Statements For the Year Ended 31 March 2022 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 2021 Trade creditors OlheT Creditors Accruals Deferred income Taxation and social security 373,908 620,246 1,5d2,361 1,755,847 483,279 4,775,641 344,485 364,684 797,500 1,288,615 362,998 3,158,282 17. DEFERRED INCOME AND AMOUNTS INVOICED IN ADVANCE 2022 2021 Balance 211 April Fees deferred in the year Fees released from previous years Balance at 31 MarGh 1,288,615 1,755,847 1,288,615 1.755,847 639,738 1,288,615 639,738 1,288,615 Deferred fees relate to income raceived in the current year for work lo be undertaken in frjturo ygars. 18. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestrf¢ted funds 2022 Restri¢ted lunds 2022 Total Unrestrlcted funds 2021 Restrl¢ted funds 2021 Totsl 2022 2021 Tangible fixed assets Intangible fLxed assets Stock and doblors Cash al bank linduding short term investments Current liabilities Pension liabili Total 7,570,794 733,233 8,304,027 7,088,915 780.979 7,869,894 3,846,573 1 D,496.814 3,846,573 1 O,764,46q 2,718,467 11,140,825 2,718,467 11,366,006 267,655 225.181 4.775,641 4,775,641 3,158,282 163.000 17 626 925 3,158,282 163.000 18 633,085 17,138.540 1,000,888 18 139 428 1006 160 19. TRUSTFFS Th8 company is limited by guarantee bul not having any shar& capital and is ragislered as a charlty under the Charit*s Ac12011. The liability of each trustee is Imited to £112021 - £11. Ten people $8Ned as Trustees in yeor12021 - eight). 40 Making Space I Annual Report 2021-22 ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ## **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 2021**
**£**
13,276,088
0
4,350,837
**Income**
**£**
31,418,928
0
0
**Expenditure**
**£**
(32,070,314)
0
0|**Transfer**
**Investment**
**Balance**
**gains or**
**31stMar**
**losses**
**2022**
**£**
**£**
**£**
(1,055,004)
163,000
11,732,698
82,799
0
82,799
972,205
0
5,323,042| |---|---|---| ||17,626,925
31,418,928
{32,070,314}|0
163,000
17,138,539| ||780,980
225,180
0
162,372

(47,747)
(119,898)|0
0
733,233
0
0
267,654| ||1,006,160
162,372
{167,645}|0
0
1,000,887| ||18,633,085
**As at 1st **
**Apr 2020**
**£**
12,321,299
4,421,916
31,581,300
**Income**
**£**
27,407,798
0
{32,237,959}
**Expenditure**
**£**
(26,451,088)
0|0
163,000
18,139,426
**Transfer**
**Investment**
**Balance**
**gains or**
**31stMar**
**losses**
**2021**
**£**
**£**
**£**
71,079
(73,000)
13,276,088
{71,079}
0
4,350,837
0
(73,000)
17,626,925| ||16,743,215
27,407,798
(26,451,088)|| ||828,727
164,790
0
163,622
(47,747)
(103,232)|0
0
780,980
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| ## **21. COMMITMENTS UNDER OPERATING LEASES** As at 31 March 2022 the Charity had total future minimum commitments under non-cancellable operating leases as set out below: |Operating lease commitments which are owed:
Within one year
In two to five years
After five years|**2022**
**£**
151,935
65,461
1,166
218,562
**2021**
**£**
121,671
40,445
0
162,116| |---|---| ## **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, 41 Makvig Spac8 l Annual R?￿rt 2021.22 Notes to the Flnanclal Statements For the Year Ended 31 March 2022 22. RESTRICTED FUNDS Balance 1"Apr 2021 Incoming rosourc68 Outgoing resources Balan¢e st 2022 Ashwood Court bulldin 564,263 23,268 540,995 PlbllWWU LJUUI i Itll iu Kln sh511 bulldln Palm ra rant Carer Su rt Service Bof(on Bradford Carer Breaks rant Bradford Carer Trainin rant 73,432 171,397 48,367 275 5,142 1,006,160 24,478 72,690 47,209 48,954 216,079 46,158 275 5,142 1,000,887 117,372 45,000 r8nl 162,372 167,645 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 dglivering support to carers. Brudlord CE)rcr brea1(￿ is moncy poid to dolivor br￿ak￿ to CO￿￿. Bradtord carer training is money paid to deliver training lo carers. Balance 1"Apr 2020 Incomlng rèsources 0￿goIng resourcès Balance 2021 Ashwood Court buildin Ashwood Court land Kingshlll building Palm ra rant C8rg.r Sii nrt 8ftrvirTr. Bnltnn Bradford Caret Break5 rant Bradford Carer Traini ranl 587,532 143,284 97,990 113,727 23,269 564.263 143,284 73,432 171,397 124,478} 59,702 117,372 46,2.fjrfr r8nt 275 5,142 993,517 275 5,142 1,006,160 163,622 150.979 23. FINANCIAL INSTRUMENTS FINANCIAL ASSETS 2022 2021 Cash Investments Trade debtors Other d8blors Accrued Income 3,212,074 7,552,395 2,588,659 39.326 632,883 14,025,337 4,716.208 6,649,798 1.783.734 44,343 375,177 13,569,260 FINANCIAL LIABILITIES 2022 2021 Trade creditors Othér crdilors Accruals 373,908 620,246 1,542,361 2,536,515 344,485 364,684 797,500 1,506,669 42 Making Space l Annual RepL)rt 2021-22 Notes to the Financial Statements For the Year Ended 31 March 2022 24. RECONCILIATION OF NET DEBT R•conciliation to n•1 Cash flow to movement In net dabt At 1 Aprll Cash flo%Ys 2021 Other chang&8 At31 March 2022 Cash and cash equivalents 4,716,208 11,504,134) 3,212,074 25. RETIREMENT BENEF￿ SCHEMES Making spa￿ operates nino pensK)n 8chemes'. la) Flve deflnad conlrlbullon personal penslon schemes for employees not &ligibla to loin the definad b8nefit schomos. The asset5 of thes8 sch8m8s are held sepafalely from Ihose of the Charlty In funds under Ihg control of Twste8s. Contribullons lo the schemes ar8 charged to the slalemenl of financi81 activities when payablg. The pension cost charge for the year in relation to these schemgs amounted lo £498,16012021- £444,153). Ib) National Heatth Service pension fund. This is a defined benefit pension s¢heme for all eligible employees. The assets of the Scheme ale held separately by their National Health Service Superannuation Scheme. Contribulions to the scheme are charged lo the SOFA lo spread the cost over the service lives of employees in the s¢h¢mo. The pension scherne does not have a pension fund, bul as a stalulory scheme, benefits are fully guaranteed by the Government. This 8xlra cost is not mèl by conlributions from Schome members and employers. Contributions from both members and employers are paid to the Ex¢hequer, which me81 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 lo Making Space, therefore as permilled by FRS 102. the scheme has been accounted for as a delined contribution scheme. The pension cost ¢hargo for Ihg year afflounled to £7,33812021'. £7,800). Ic) West yorkshi￿ Pension Fund. This is a defi'ned benefit scheme for all eligible empk)yees. Under TUPE greements all additional ¢ontn'biJlion ￿qUIrementS are mel by the funding 8Uthoiity. As a result of the nature of the contracl this scheme is accountsd for as a defined contribution scheme. The pension cost charge for the year amounted to £0 {2021..£0). Id) The Lincolnshire Local Government Ponsion Fund. This is a defin8d benefit pension scheme for 811 eligible employees, and the ￿lated costs are assessed in accordance with Ihe advice of professionally qualified acluarieg. The pension cost charge for the year 2rn0unled lo £5,57912021'. £10,124). The pension scheme has separately identifiable assets and liabililies relating lo Making Space. The Scheme is now closed and Making spar￿ has no financial liabS1ity In regards lo thls Pension Scheme. le) Darlinglon Pension Fund. Thls is a defln&d benefit scheme for all eligible Èmployees. Under TUPE agreements. the funding authority meets all additional contribution reqLJiremenls. Because of the nature of the Contract agreement, this scheme has been accounted for as a defined contribution scheme. Thg pension cost charge for the year amounted to £22,680 {2021'. £226,919}- 43 Making Space I Annual Report 2U21-22 ## **Notes to the Financial Statements For the Year Ended 31 March 2022** The amounts recognised in the balance sheet are as follows: |**Reconciliation of present value of plan liabilities**
At the beginning of the year
Eliminated on cessation
Current service cost
Interest cost
Contributions by scheme participants
Actuarial losses
Benefits paid
At the end_of_the year
Schemes wholly or partly funded
**Reconciliation of fair value of plan assets**
At the beginning of the year
Eliminated on cessation
Interest income on plan assets
**Art, 1:ri:I n:inc**
I
,.
.
, •-·
;-•• , .
Contributions by group
Contributions by scheme participants
Benefits paid
At the end of the year
Fair value of plan assets
Present value of plan liabilities
Net pension scheme liability|**2022**
**£'000**
588
(588)
0
0
0
0
0
**2021**
**£'000**
448
0
11
10
2
144
(27)| |---|---| ||_b_
588| ||**2022**
**£;000**
0
**2022**
**£'000**
425
(425)
0
0
0
0
0
**2021**
**£;000**
558
**2021**
**£'000**
361
0
8
71
10
2
(27)| ||0
425| ||**2022**
**£'000**
0
0
0
**2021**
**£'000**
425
588
(163)| 44 Making Space I Annual Report 2021-22 ## **Notes to the Financial Statements For the Year Ended 31 March 2022** |**Amounts recognised in theSOFA are as follows:**
**included in administrative expenses:**
Current service cost
**Amounts included in other finance costs**
Net interest cost
**Analysis of actuarial loss recognised in other comprehensive income**
Actual return less interest income included in net interest income
Deficit on transfer of scheme
Changes in financial assumptions
Changes in demographic assumptions
Other experience
**Composition of plan assets**-**Lincolnshire LGPF**
European equities
European bonds
Property
Cash
Total plan assets
Actual return on plan assets|**2022**
**£'000**
0
0
**2021**
**£'000**
11
11| |---|---| ||**2022**
**£'000**
0
**2021**
**£'000**
2| ||0
**2022**
**£'000**
0
0
0
0
0
2
**2021**
**£'000**
71
0
(144)
0
0| ||0
~~(~~73~~)~~| ||**2022**
**£'000**
0
0
0
0
0

**2021**
**£'000**
305
59
44
17
425| ||**2022**
**£'000**
0
**2021**
**£'000**
79| 45 Making Space I Annual Report 2021-22 ## **Notes to the Financial Statements For the Year Ended 31 March 2022** ||**2022**|**2021**| |---|---|---| ||%|%| |**Principal actuarial assumptions used at the balance sheet date**||| |Discount rates|N/A|2.05| |Future salary increases|N/A|3.15| |Future pension increases|N/A|2.85| |Proportion of employees opting for early retirement||| |Inflation assumption||| |Mortality rates:||| |- for a male aged 65 now|NIA|21.1| |- at 65 for a male member aged 45 now|N/A|22.0| |- for a female aged 65 now|N/A|23.6| |- at 65 for a female member aged 45 now|N/A|25.0| ## **26. RELATED PARTY TRANSACTIONS** There was £10,640 worth of related party transactions with Footsteps 2000 Ltd, which became a subsidiary of Making Space on 1[st ] April 2021. These transactions relate to costs initially incurred by Making Space which have then been recharged to Footsteps 2000 Ltd. There are no amounts outstanding at the year end. |The following Trustees|received reimbursed expenses for the year-end 31stMarch 2022:| |---|---| |Alan Teague|£72.00| |Sarah Humphries|£78.30| |Elaine Johnstone|£9.09| Key management personnel and trustee rernuneraliun (£0) is wvt,rt,d in earlier notes. ## **27. POST BALANCE SHEET EVENTS** There are no post balance sheet events. ## **28. PRIOR YEAR RESTATEMENT** Cash is placed on term deposit so that a deposit matures each quarter. As these deposits are typically placed for a 12 month term it has been determined that these fixed term investments are fixed assets rather than current assets. This has necessitated a prior year restatement of £6,649,798 of investments moving from current assets to fixed assets. ## **29. MONEY HELD ON TRUST** The charity holds money, which is not material, on behalf of service users both in cash and in Making Space's bank account. Making Space has no control over this and it is therefore excluded from the accounts. The value held amounts to £56,849 (2021: £56,843). 46