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2022-03-31-accounts

Company number: 01653388 Charity number: 512992

Father Hudson’s Society

Report and financial statements For the year ended 31 March 2022

Father Hudson’s Society

Contents

For the year ended 31 March 2022

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 41 Statement of financial activities (incorporating an income and expenditure account) ................... 45 Balance sheet ............................................................................................................................... 46 Statement of cash flows ................................................................................................................ 47 Notes to the financial statements ................................................................................................. 48

Father Hudson’s Society

Reference and administrative information

For the year ended 31 March 2022

Father Hudson’s Care is a working name of Father Hudson’s Society.

Company number 01653388 Country of incorporation United Kingdom Charity number 512992 Country of registration England & Wales Registered office and St George’s House operational address Gerards Way Coleshill BIRMINGHAM B46 3FG President Most Rev. Bernard Longley Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Mr Kevin Caffrey MBE Chair 4
Mrs Anne Plummer Vice Chair 3, 4
Mrs Gail Brown 1
Mr Brian Basford 1, 4
Mrs Julia Fitzsimons 2,4
Rev. Michael Gamble 2
Rev. Kevin Kavanagh 3
Mr Peter Deeley 1
Ms Jessica Moore 2
Ms Fionnuala Hegarty 3
Mr Neil Handel (Resigned 02 August 2021) 2, 4
Mr Brendan Clifford 2
Mr David Craig 1
Sir Peter Fahy 3

  1. Member of Finance, Land and Support Services sub-committee

  2. Member of Adult Care sub-committee

  3. Member of Children and Families sub-committee

  4. Member of Monitoring and Review sub-committee

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Father Hudson’s Society

Reference and administrative information

For the year ended 31 March 2022

Key management Mr Andrew Quinn Company Secretary/Chief Executive personnel Mr Noel Stubbs Financial Controller Mrs Eloise Davidson Fundraising, Communications and Marketing Manager Mrs Joanne Walthew Fostering Service Manager Mrs Hardeep Brayna Human Resources Manager Mrs Joanne Watters Head of Community Projects Mr Edward Brown Head of Adult Care Bankers Lloyds Bank plc 3 Maple Walk Chelmsley Wood B37 5TS Solicitors Gateley Legal One Eleven Edmund Street BIRMINGHAM B3 2HJ Investment advisors Smith & Williamson Investment Management LLP 3[rd] Floor, 9 Colmore Row BIRMINGHAM B3 2BJ Property advisors ehB Reeves Somerset House Clarendon Place Leamington Spa CV32 5QN Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

The Trustees present their report and financial statements for the year ended 31 March 2022. The Reference and Administrative details on pages 1 and 2 form part of this report.

The statements appear in the format required by the Statement of Recommended Practice, Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with FRS102. The report and statements also comply with the Companies Act 2006 as Father Hudson’s was incorporated by guarantee on 22 July 1982, to continue the work started by Father Hudson at the beginning of the 20th Century. It was established under a memorandum of association which established the objects and powers of the organisation and is governed under its articles of association. The Trustees’ annual report meets the requirements of a directors’ report as required by company law.

Review of planned activities and principal achievements for the year

Objectives and activities

Father Hudson’s main objectives include: the relief of financial hardship and suffering, relief of sickness and preservation of health, and the advancement and the promotion of the support, relief and care of children and young people without families able to care for them, or who are in trouble or at risk, elderly people and their carers, people with disabilities, and individuals, families, communities and groups who are in need.

The Trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work within the last twelve months. The Trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the Trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

Public benefit

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

The objects are met through a variety of activities which are summarised below. Each activity, the beneficiaries and the public benefit are discussed in greater detail further in the report.

Adult Care

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Trustees’ annual report

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Children and Families

Community Projects

Within Father Hudson’s Care (FHC)

Supporting other Charities & projects

Objectives and Strategies

Father Hudson’s has a three-tier format for setting its objectives and devising the strategies and activities to meet those objectives:

The activities of Father Hudson’s are undertaken by dedicated full and part-time staff supported by volunteers who selflessly give their time as committee members, advisors, "panel members", project support and fundraisers. To all the staff and volunteers, the Trustees express their deep gratitude and acknowledge the importance of such valuable support.

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Trustees’ annual report

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Adult Care

The Adult Care work of Father Hudson’s is focussed on three areas of activity: care for people with complex learning and physical disabilities, care for older people including those with dementia, and care for people with moderate learning disabilities. It supports people to lead lives which are fulfilling and meaningful. Last year the Adult Care department had a turnover in excess of £4.8 million. Care is commissioned and funded by local authorities, CCGs or is privately funded in some instances as at St. Joseph’s. The work it does is challenging yet rewarding, the needs it meets diverse.

Despite the impact of the COVID-19 pandemic, there has been a period of stability in terms of the operational structure and service delivery. There continues to be a strong leadership structure in place and a continued focus to ensure that there are opportunities for career development within the department.

There is now a well- established quality framework to ensure high quality care is delivered.

Throughout the pandemic CQC have continued to monitor services and in June 2020 all services were judged to be ‘managing well’ by the CQC inspector when carrying out their Emergency Support Framework. CQC have operated a monitoring approach during 2021/22. A more routine pattern of inspections are resuming from March 2022.

In July 2019 St Joseph’s was inspected by CQC and received a ‘Requires improvement’ rating. However, improvement in the quality of care and leadership of the home were noted. The service has continued to improve, however CQC inspections have not been taking place on schedule due to the ongoing pandemic. However, as part of CQC’s monitoring approach St Joseph’s was reviewed by an inspector virtually in November 2021. The inspector noted a number of areas of good practice and innovation including monitoring audits and strong managerial oversight. A number of improvements were identified by the inspector and these have been actioned. The monitoring activity does not generate a new rating, so the CQC rating remains unchanged.

In September 2019 St Catherine’s was inspected by CQC and received a ‘Good’ rating improving on the previous year’s ‘Requires improvement’ rating. There has been no monitoring activity carried out directly with service from CQC during 2021/22.

In November 2020, the Domiciliary Care service was inspected by CQC and received an overall ‘Good’ rating. The service was rated Good in all five areas of inspection, another improvement on the previous inspection of 2018. There has been no monitoring activity carried out directly with service from CQC during 2021/22.

The Head of Adult Care continues to invest time developing the leadership in the services to ensure positive, person-centred outcomes for those using the services.

The COVID-19 pandemic has continued to have a significant impact on Adult Care services.

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Having faced a long period of closure to building based services during 2020/21, the day service was able to open fully to clients in September 2022, albeit with increased infection control and COVID-19 measures in place. Where needed the service has continued to offer an adapted service by offering outreach support to some clients. Due to the significant changes many clients have experienced over the past two years packages of support are being reviewed to reflect the increased need for support to keep safe. Over the last 12 months the day service has welcomed 2 new clients and continues to receive enquiries and referrals for prospective new clients.

Due to the impact of the ongoing COVID-19 pandemic St Joseph’s has operated at a reduced capacity for the 2020/21 financial year. The home has experienced a number of COvID-19 outbreaks The home worked effectively with local infection control teams and Public Health England to manage these outbreaks. The impact of these outbreaks was not as severe as the impact of the outbreaks experienced in the previous year. St Joseph’s has been able to fully open again from 4[th] April 2022. Despite the challenges the service has continued to accept admissions for much of 2021/22 and with restrictions lifting the service is building up again in terms of occupancy and a return to a more normal way of providing the service and being open to relatives and friends of residents.

St Catherine’s bungalows have also experienced a number of COVID-19 outbreaks. There have been no residents lost to the virus over the last twelve months despite a number of residents contracting the virus over the course of the year.

In both residential settings (St Joseph’s and St Catherine’s) during the pandemic the staff teams have faced significant challenges meeting the needs of residents and have prioritised mental wellbeing of residents through-out. Increased infection control, testing and other measures have continued to place a burden on the services, in terms of resource. The services are following all government and local guidance in relation to visitors and infection control measures. These have changed frequently over the year with new infection control guidance for care homes being issued on 31st March 2022 as a part of the governments ‘Living with COVID-19’ strategy.

In Domiciliary Care and Supported Living services. testing, isolation of infected or symptomatic residents, social distancing and increased infection control measures have been in place in line with government and local guidance, for the majority of 2021/22. With the lifting of restrictions, the service has successfully supported clients to engage in activities and employment opportunities as pre- pandemic. As with residential support the mental wellbeing of clients has been and continues to be a focus due to the impact of the pandemic and changes as society emerges from it.

The increased use of PPE, infection control measures and testing have placed an increased financial burden on to all services as well as the need to pay staff 100% of their wages whilst off due to illness or the requirement to self- isolate related to COVID-19. Central government funding has assisted with easing the burden. Free PPE has been extended until March 2023. Through 2021/22, receipts from the Infection Control and Testing Fund (ICTF), have eased this burden. The Workforce Recruitment and Retention Fund (WRRF) has also eased the financial burden of

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responding to the current recruitment and retention crisis facing the adult social care sector, although this is still a significant challenge. ICTF and WRRF funding ceased on 31[st] March 2022. The department has continued to benefit from working extensively with local authority, Public Health England and the NHS through mutual aid processes- led by Warwickshire County Council, which has continued during the year.

Whilst the challenges posed by the ongoing pandemic on the department cannot be underestimated the staff have shown remarkable commitment, flexibility and innovation. This means the department has been able to continue to provide high quality, safe and person-centred care and support for all those the department serves.

St. Joseph’s

St. Joseph’s is a 59 bed care home, caring for older, frail people the majority of whom have varying degrees and types of dementia. The aim of the home is to provide nurturing, stimulating and compassionate care, through a variety of interventions and activities which aim to encourage people to participate in and enjoy fulfilling, worthwhile activities with friends, companions and their families. St. Joseph’s is a home for life and strives to be a place of nurturing, compassion and homeliness.

The home is regulated and inspected by the Care Quality Commission.

St Catherine’s Bungalows

16 people live in three bungalows. They each have complex care and support requirements demanding a range of specialist interventions. Those living at the bungalows are encouraged and enabled to join in with as many opportunities as possible. Support staff believe strongly, that a person’s disability should not prevent them from living a fulfilling life and the staff team have real commitment to the ethos of supporting residents to live life to its fullest. Ordinarily, all residents enjoy annual holidays, short breaks and active social lives. The work of the bungalows is supported by resident’s families who are encouraged to take part in all aspects of care planning where possible.

The bungalows are regulated and inspected by the Care Quality Commission.

St. Catherine’s Day Service

22 people attend the day service on a daily basis. They travel from Warwickshire, Birmingham and Solihull to take part in activities aimed at maximising their potential to join in with daily living tasks, to make new friends and have fun. Access to the wider community provides opportunities for people to develop their skills for independence and enjoy being out and about.

It is a service that also provides valuable and much needed respite on a day to day basis for the families and carers.

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Domiciliary Care/Supported Living

15 tenants are supported by the Society in housing it owns additionally, one client is supported in his own home. The service is commissioned and funded by the Local Authority or CCGs. Care and support are designed to develop the necessary skills to live as independently as possible. Interventions aim to support tenants in their own flats and in accessing community resources. This involves managing significant risks for some individuals in order for them to further their personal ambitions. Independence develops through greater skill levels, risk management and confidence building.

The service is regulated and inspected by the Care Quality Commission.

The work of the department is built on the dedication, compassion and loyalty of its many carers, support staff and managers. The reputation of the Society relies on them and their devotion to the values and vision it holds. Father Hudson’s is grateful to its teams of staff who work conscientiously to support the work it does.

Departmental Aims for Adult Care in 2022/23

Children and Families Services

The Children and families service provides three services: Origins, New Routes Fostering and the Family Support School’s project.

The Origins Service (including Post Adoption Support) provides care to adults who were cared for by Father Hudson’s in the past (as residents in the children’s homes; as adoptees; as birth family members of residents and adoptees); and, in its capacity as a registered Adoption Support Agency, the Origins Service focuses mainly on providing care to families which have adopted through Father Hudson’s during the years in which it operated an adoption agency.

The Fostering Service provides placements for children and young people aged between 0 -18 years who are unable to live with their birth families due to a variety of reasons and subsequently are referred to this service by Local Authorities for fostering placements.

The Family Support Schools Project provides a holistic service to children, the parents and the school in order to improve the child’s attendance, educational success and emotional wellbeing. At the end of the year the service was being provided to 25 schools across the Archdiocese reaching out to faith schools and non-faith schools.

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New Routes Fostering

New Routes Fostering was established in 1992. The fostering service is based in Coleshill and is staffed by a Registered Manager, Deputy Manager, two full-time social workers and one part-time and two fostering administrators.

The service is registered with and inspected by OFSTED. The last Inspection was undertaken in January 2022 and was awarded good. It continues to operate under the West Midlands Regional Contract which is overseen by Sandwell Children’s Trust.

New Routes Fostering provides placements for children and young people on a short-term and long-term basis. There is also scope for young people to remain with their carers under ‘stay put’ arrangements.

The children and young people we care for are amongst the most vulnerable in society and will have experienced some level of adversity which impacts on their physical and mental health and emotional well-being.

Foster carers provide a positive experience of family life which aims to provide a secure and stable base enabling children and young people to reach their full potential. New Routes Fostering is committed to providing ongoing training and development and regular support and supervision to carers to achieve this; the children and young people being the ultimate beneficiaries of the service.

The matching of the carers’ skills, knowledge and experience balanced with the needs of the child is vital to ensuring stability, thus minimising the potential of disruptions.

The easing of restrictions and lockdowns following Covid-19 mean that normal services/operations are slowly being resumed. The pandemic forced us all to explore new ways of working and some practices will remain in place as they have proven to be beneficial and efficient.

Equality Diversity and Inclusion (EDI) remains at the top of the agency’s agenda and the working group continue to meet on a regular basis to explore a wide range of issues at an organisational and departmental level. A number of policies have been amended and new ones created. EDI training has also been offered to all employees.

The key objectives for the Fostering Service:

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Developments of the Fostering service

New Routes Fostering continues to review, amend and implement changes or developments arising as and when and in accordance with the Fostering Service Regulations, National Minimum Standards 2011 and Safeguarding and Child Protection legislation.

New Routes Fostering panel membership is reviewed regularly and we currently have 9 members on the ‘central list’. The breadth of experience and knowledge includes: foster carers, adopters, social worker and teachers with expertise in special education provision. There is a Medical and Legal Advisor.

The Fostering Panel continues to provide invaluable support. The Panel Chair is also involved in a forum which enables good practice to be shared with the agency in order to improve service delivery.

New Routes Fostering remains committed to reviewing and evaluating the service. This includes consulting with the foster carers, staff, children and young people. This takes place in the form of questionnaires, surveys, feedback forms and development days.

Achievements

Therapeutic Input: The Psychotherapist continues to provide training and individual sessions to foster carers as and when needed, the focus being on providing a therapeutic service/therapeutic parenting.

West Midlands Tender: We continue to be part of the West Midlands Framework with new increased costs.

Panel: Virtual panels are working well, and a combined approach will be put in place. For any new assessments that are brought to panel, face to face meetings will be held.

Training: Carer training is well utilised and attended. Staff and a number of carers completed the Drawing and Talking model which is a therapeutic model of intervention. One carer household received training from an external facilitator within their own home which has proved to be beneficial.

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Children’s Panel: Children’s panel took place in February and was attended by 2 new fostering households, one of which has gone on to be approved at panel.

Children’s Activities: A number of outdoor activities have taken place throughout the year. A virtual session also took place with a trainer who was a looked after child. This was truly inspirational and the young people who attended engaged well.

Educational achievement: A young person who was previously placed with our carers has been offered a place at the prestigious Cambridge University.

Recruitment, growth and carer retention continue to be the priorities going forward.

Currently, we have two young people who have remained with their respective carers on a ‘stay put’ arrangement. This demonstrates a commitment to supporting young people beyond 18.

Plans for the Fostering service for 2022- 2023

Origins Service

The Origins service provides support after adoption and support after care for those who have been impacted by childhood separation from their family of origin. The separation may have been through adoption or through being in care.

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Father Hudson’s Care recognises the lifelong impact of being separated from one’s family of origin, both for the person concerned and for their relatives. It has a long tradition of childcare and preserves over 40,000 records on children going back to 1902. It believes in the value of treasuring personal histories and understands how looking back into one’s past can enhance one’s personal identity. It focuses on assisting adults to understand their childhood experiences, and the decisions made for them, and to gain knowledge of their origins. Reconnecting people separated from their family of origin can bring healing and can help people in moving forward. Although Father Hudson’s no longer provides residential care for children or arranges adoptions, it remains committed to proving quality services for those with a childhood connection to Father Hudson’s.

A fee structure (applicable to some areas of service provision and compliant with regulatory requirements) was implemented with effect from 1 April 2011. This is kept under review. Service users may, in addition, also choose to make a donation.

Origins, in its “support after adoption” services, recognises there can be a lifelong impact for all those connected to an adoption. Adoption laws have changed over the years to reflect the needs of various people connected to adoption. These laws enable them to apply to be put in touch with the relative separated by adoption. After Father Hudson’s ceased involvement in 2009 in arranging adoptions, it registered as an Adoption Support Agency in order to continue to work with adults affected by adoption. Therefore, the quality of the work is regularly inspected by Ofsted, who have consistently judged the quality of the adoption support agency to be “outstanding”, the highest rating. Through Ofsted inspections, the quality of the “Origins” post adoption work is measured against National Standards.

Support to Father Hudson’s adoptive families with adopted children still under 18 is provided under a service level agreement, by another adoption agency that specialises in working with children in adoptive families. This is called Adoption Focus, which formed when Father Hudson’s ceased involvement in new adoptions.

The following services are provided for adults:

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Origins, in its “support after care” services understands the importance of being able to find out information about one’s origins and about the period of time spent in care, so it provides an Origins Service to those who previously stayed in the various Catholic homes it was connected with, including those connected to former child migration schemes. It also recognises the importance of people’s family history and so it can also help with providing family history information from the childcare records when the person formerly in care is deceased.

Sometimes, those formerly in the homes connected with Father Hudson’s wish to visit where their former home was, and so those who would like to arrange a visit to our Coleshill base are welcomed. Assistance can also be given in tracing relatives and reconnecting with family members.

The key objectives for Origins

The key objectives for the service are:

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Plans for Origins in 2022-2023

Schools Family Support Project

The schools’ family support service was established in 2006 to provide early intervention and prevention support to vulnerable children and their families. The service is embedded in Catholic schools in Birmingham, Newcastle-under-Lyme, Stoke and Banbury. The benefits to schools are enormous and the service addresses wide ranging concerns and adversity such as parental neglect and abuse, domestic abuse, poverty, poor housing and poor parental mental health. The impact of these negative factors on children presents in their poor mental health, low self-esteem and confidence, challenging behaviour, poor attendance, self-harm and poor educational achievement. Schools recognise the importance of addressing these harmful factors to improve the life chances for children. Support to children is through child centred interventions that encourage positive growth and build resilience. Parents are supported to address concerns and build positive parenting skills for a healthy and stable home environment. Family support workers are a bridge

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between home and school and promote parents to better engage with school and their children’s educational attainment.

Safeguarding children is at the heart of the service and close working with schools’ Designated Safeguarding Leads ensures that early signs and risks are identified and addressed. This prevents escalation to more serious concerns. Through the Early Help process family support workers are able to co-ordinate support from a team of professionals around the family to manage complex concerns.

The team consists of a project manager, a senior supervising family support worker, Data Officer and 5 family support workers. We currently operate in 18 schools securing new contracts in 3 schools within this year. The schools involved have expressed a high level of satisfaction regarding the services provided. A number of schools have expressed a wish that Father Hudson’s Care could provide supervision and training for their own pastoral staff

Intervention and Support Needs April 2021 –March 2022

Services are resuming to normal following covid-19 and the easing of lockdowns and restrictions.

Most of the work with children and parents is delivered via drop ins and casework and length of involvement is determined by the level of need and support is provided until objectives are achieved. This flexibility enables workers to build positive relationships that promote longer and sustained change.

Family support workers aim to empower parents to better support their children and become solution focused to resolve issues and concerns. We recognise the importance of building strength in families so that when intervention ceases, families are better able to deal with life challenges.

Direct one to one work with children has included: raising low self-esteem and confidence, reducing anxiety, building resilience factors and raising aspirations so that children can feel happier and safer and have improved life chances.

Casework figures

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Presenting concerns and support needs for children:

Group work

Children

5 transition groups with 33 year 6 children to support transition from primary to secondary school Friendship group – 5 sessions with up to 4 year 4 children

Heads Up – 2 year 6 girls attended 5 sessions to support their wellbeing

Vocation Day – Jackie spoke to 89 Year 1 and 2 children about having a vocation

Parents

Routines and behaviour workshops – up to 30 parents attending

Family Links parenting course– 2 parents

2 Coffee mornings to introduce family support – up to 20 parents attending

Report on the key objectives for the Schools Family Support service in

2021 -2022

Promote the service and increase school contracts

Discussions on the take up of family support by Catholic MAC’s has been limited. On a positive note, the majority of contracts have been renewed, with 3 schools leaving us and 3 new contracts have been secured.

To continue to offer a professional service to schools.

Our aim is to grow and expand the project.

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Lockdown presented new and positive ways of working which are now enabling us to reach more isolated families. The use of technology and in particular video contact has made us think about alternative methods of communication, some of which will remain in place going forward.

Improve knowledge, skills and practice for best practice.

Online courses and webinars were encouraged. This enabled family support workers and admin staff to individually complete a wide range of training listed below.

A training program to pastoral school staff is being developed and it is hoped that this will be ready to be rolled out in the forthcoming months.

Improve data collation to evidence impact and outcomes.

Increase the completion of feedback forms from children and parents.

Key objectives for 2022 - 2023

Father Hudson’s Care - Community Projects

Father Hudson’s Care works in collaboration with partners and local communities to reach out and support those in need, some are delivered directly under our charity and others are delivered by smaller charities and groups whom we support. Each partnership community project has its own local focus, identity and governance structure. We support those in poverty through the provision of food and practical items, those who are homeless through accommodation, those who are lonely through social activities and a number of our projects also provide advice, information and

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wider support. We prioritise services for the most vulnerable, specialising in support for refugees, asylum seekers and migrants, rough sleepers, vulnerable women, older people and deprived communities. Our Catholic ethos is at the core of this work – ensuring human dignity, helping the poor and standing in solidarity with others.

Despite the continued impact of COVID-19 this year community projects have remained present for those who need us, operating safely within guidelines and adapting delivery to continue to respond to growing demand for our support. Projects have been providing information in the community and to our guests on Covid, distributed lateral flow tests and Brushstrokes held popup vaccination clinics. Our doors have remained open, and we have increased/returned to faceto-face activities over the year.

During 2021/22, five community projects were delivered directly under the Father Hudson’s Care charity. With 52 employed staff (at end of March 2022) and 242 active volunteers reaching out and supporting over 2800 individuals in need, including providing direct accommodation to 32 individuals. Volunteering and the involvement of local communities continues to be the essential part of all of our projects. Whilst a number of volunteers have not returned following Covid, we have been able to recruit new volunteers and build back up many of our teams.

During 2021/22 we have continued to support local groups including more intense support to three local charities, providing employment, payroll, HR, management, governance, funding, finance and policy support. During 2021/22 two of these charities have provided FHC with some financial contribution towards this support, reduced since previous years due to the impact of Covid on their charity finances. We have employed 10 members of staff on their behalf over the year. These three charities have supported a further 2602 individuals in need and have 124 volunteers. We also continued to be a key partner for the local charity Anawim, Caritas AOB and Heart of Tamworth. This year we have increased our support to Community Sponsorship - Refugee Resettlement Schemes, providing support to four volunteer groups in Rugeley, Derby, Birmingham and Warwick and being the lead sponsor for these with the Home Office.

Supporting Refugees, Asylum Seekers and Migrants in the community

During 2021/22 we have supported over 2500 refugees, asylum seekers and migrants through our partnership community projects delivered under Father Hudson’s Care and many more as part of our wider partnerships including through St Chads Sanctuary, Community Sponsorship and Hope Community. We promote the ethos of ‘Welcome the Stranger’, helping those in crisis as well as supporting for the long-term.

Brushstrokes Community project is delivered under Father Hudson’s Care and is a partnership with the Infant Jesus Sisters, the parish of St Philip Neri and the sisters of Our Lady of Charity of the Good Shepherd. Based in Smethwick and covering Sandwell, West Birmingham and surrounding areas, the project provides specialist and holistic support to refugees, asylum seekers and migrants through advice and outreach including accredited OISC immigration advice, employment support, welfare benefits and housing advice; provision of practical resources including food and clothes; education and employment support including accredited ESOL, IELTS and OET; social

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activities including a community café, games evening and women’s group. The project is funded from a wide range of sources including Sandwell Borough Council, The Home Office, NHS and charitable trusts.

Over the year the project has ensured welcome and practical support assistance has been provided to all. With 28 staff and 53 active volunteers (23 new this year) Brushstrokes provided support to 2495 individuals (5637 beneficiaries to include families) from 102 nationalities and 49 languages. There has been a continued growth in EU nationals coming for support and advice this year linked to the ongoing work of the EU settlement Scheme, representing 42% of all service users. Those seeking asylum were the next largest group of clients at 19%. Romania, India and Afghanistan represent the largest numbers of service users this year.

Brushstrokes key achievements in 2021/22 include:

Brushstrokes objectives for 2022 – 23

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Social support for Older People in the community

Young at Heart in North Staffordshire is delivered under Father Hudson’s Care. It reaches out and supports isolated older people, providing friendship and lunch groups, a music group, telephone befriending and a community gardening project. Young at Heart has continued this year to work in partnership with the Methodist Homes Association to deliver these activities through a National Lottery funded project.

During 2021/22 the project has focused on restarting all face-to-face activities and recruiting and developing volunteers from the local community. Due to funding the staff team reduced to 2 in November, however with a team of 72 volunteers the project still supported 223 older people over the year. Many of these had been increasingly lonely and isolated during the pandemic. 193 of these were through the 8 regular group activities and 30 through telephone befriending. Through the befriending service volunteers call older people weekly for a friendly chat which has not only been crucial during Covid, but as older people's frailty, mobility and mental health has been increasingly impacted. Where they are able to, we promote people to attend the social groups which many rely on as their only outing and chance to meet others. The project has been particularly proud this year of developing the community garden project with the support of Stoke Council, the Masonic Foundation and Groundworks.

Young at Heart objectives 2022/23:

We reach out to many older people through our wider partnerships including with Hope Community and Maryvale Community Project.

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Accommodation and shelter for the vulnerable

Through three community accommodation projects, Tabor House, Fatima House and Sophia House, we have provided safe shelter to 32 individuals in Birmingham during 2021/22 and supported over 100 rough sleepers through outreach in Birmingham city centre.

Tabor House is delivered under Father Hudson’s Care with local governance through ‘Tabor Living’. Tabor Living is a partnership with Father Hudson’s Care, Caritas AoB, the local parish, senior business people from the construction and building industry, as well as a PR company. With 5 core staff, a team of bank staff and a large team of 58 dedicated volunteers, the project has remained open 24/7 rather than returning to a night shelter operation. Tabor House works within a strengths-based approach, establishing areas where guests need support and working with them to help them to achieve a positive move on.

In the last year we accommodated 18 rough sleepers at Tabor House and Tabor Cottage who were given a safe place to stay and welcome from our staff and volunteers. They have been provided with 1-1 support sessions through a Caseworker including access to a bank account, EU Settled status and appropriate documentation, healthcare, linking with other agencies, securing welfare benefits, housing, employment, training and volunteering opportunities. Outcomes for guests include securing employment and housing, support for repatriation and making family

reconnections - 73% of our guests have had a positive move on. The project has been particularly effective at welcoming migrant rough sleepers and supporting people back into employment. This year the project saw an increase in female guests, supporting 5 women to become independent.

2021/22 Tabor House, Tabor Cottage and outreach achievements:

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Father Hudson’s Society

Trustees’ annual report

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Tabor House objectives for 2022/23:

Fatima House in central Birmingham operates as part of Father Hudson’s Care and is a collaborative project with the Columban Missionaries, a local parish, Caritas Archdiocese of Birmingham, The St Vincent de Paul Society and the Archdiocese of Birmingham. The Columban Missionaries lead on the day-to-day operations of the project including supporting the women at the house and volunteers. FHC support with governance, building and financial management, policy and fundraising.

The project provides accommodation for up to 9 female asylum seekers who are destitute and in the process of appealing asylum decisions. During 2021/22 Fatima House supported 10 women with a safe place to stay, supported by 8 active volunteers. Residents can access counselling, reviews of their immigration cases and an IT suite. They have also worked with the volunteer team to develop the garden, growing fresh fruit and vegetables and having a place to socialise. These extra activities are funded through the Lottery Community Fund Awards for All funding.

Fatima House objectives for 2022/23

Sophia House is a partnership project between Father Hudson’s Care, St Brigid’s Parish and the sisters of Our Lady of Charity of the Good Shepherd. Sophia House provides safe and supportive accommodation in South Birmingham for to up to 3 female refugees or migrants. Over the year

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

the project has housed 3 women and a young baby, with one resulting in a positive move-on to an independent private tenancy.

During 2021/22 Sophia House has been a secure place of safety for the tenants, with support for them to move their lives forward including one woman now being a student at university and working in the care sector. One volunteer befriender continues to provide support and all tenants receive regular support check-ins from a member of staff.

Sophia House objectives for 2022/23

Support and capacity building for local charities and voluntary groups

One of the ways Father Hudson’s Care demonstrates the Catholic Social Teaching principle of Subsidiarity is by providing support to other charities and groups in the Diocese. We support three local independent charities, Hope Community, Maryvale Community Project and St Chad’s Sanctuary providing employment, payroll, HR and support/guidance with management, governance, funding, planning, finance, policy and procedures. During this year we have provided particular support around management and sustainability with the small charities struggling for funding as we come out of the pandemic.

Hope Community Project, Wolverhampton is a partnership with FHC, the Infant Jesus Sisters and St Patricks' Parish. Running for over 30 years, the project aims to seek out, reach and support the most isolated, vulnerable and disadvantaged people in the community of Heath Town. Based on the estate, Hope Community services include: a helpline during Covid for local people, English lessons delivered with Adult Education, a new women's group, Stay and Play, Community café, a new food pantry which has been in very high demand, new IT classes, holiday activities for young people and this year they also distributed support grants to local people on behalf of the local council. The project supported 474 people during 2021/22, many of these were people who were new to the area. In March 2022 they had 22 active volunteers and we employed 4 staff on their behalf.

Maryvale Community Project in Kingstanding, Birmingham is a parish partnership project which provides social activities for older people and adults with learning disabilities. 126 people have been supported by Maryvale Community Project over the last year through a weekly Tuesday lunch club for older people, a weekly evening Sunshine Club and a new weekly in and out club both for adults with learning disabilities. Activities at the groups include celebration events, dancing, exercise, cooking, life skills and singing. For those unable to get to the groups due to frailty or ill health they are supported through the telephone befriending service. The project has 8 very active and dedicated volunteers. Due to funding the staff team has reduced to 1 and therefore FHC have been working with the Maryvale trustees to provide support with management, fundraising and financial procedures.

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

St Chad’s Sanctuary, Birmingham is a partnership with FHC, the Infant Jesus Sisters, the Salvation Army and the Archdiocese of Birmingham. The charity is a place of welcome for asylum seekers and refugees which aims to relieve poverty and improve their lives. They have supported 2,002 individuals during 2021/22 through provision of practical items such as clothing, toiletries, food and books, English lessons for adults and this year developing their family learning for children who do not yet have a school place or are pre-school. They also provide social support, welcoming new asylum seekers, registering families with children for school places and signposting. A large proportion of their clients are asylum seekers based in temporary asylum accommodation/hotels in central Birmingham. They have 94 active volunteers and in March 2022 we employed 5 staff on behalf of the charity.

Father Hudson’s Care are the lead sponsor for Community Sponsorship - Refugee Resettlement Schemes in Warwick, Rugeley, Derby and Birmingham. We are supporting these four volunteer-led groups to welcome a refugee family into their community. Rugeley welcomed a family of 4 in 2021, with the other 3 projects completing their full applications and expecting their matches with families during 2022. In March 2022 Father Hudson’s Care has begun responding to the humanitarian crisis in Ukraine, working with the Archdiocese of Birmingham, Ukrainian community partners and others to develop this response. This will be one of our priorities in 2022/23.

Father Hudson’s Care are active executive committee members of Caritas Archdiocese of Birmingham and carry out the administration and marketing functions for this network.

Father Hudson’s Care also provides ongoing governance support for the charity Anawim in Birmingham and the charity Heart of Tamworth in Tamworth.

Fundraising, Communications and Marketing

Total voluntary income was £493,121 (2020-21: £429,099). Most voluntary income comes from five sources: individuals, companies, parishes, Catholic schools and Trusts.

Individuals

Individual giving remains to be an essential area of our fundraising income. Figures have remained static from our quarterly mailing income with a small growth in our regular giving income. The current older demographic of our individual givers remains a concern so the fundraising team has restructured this year to incorporate an Individual Giving Officer whose role is to focus on this area of income; specifically, to create a robust supporter journey which will retain and grow our existing supporters whilst attracting new supporters to expand our mailing list.

Over the last year we have invited our top 20 supporters for a tour of Father Hudson’s Head Office site and created a special fundraising appeal for our 120 years anniversary which has created a small uplift in fundraising income. We have also continued to proactively promote legacy giving in Wills Awareness months March and November by partnering with an online Wills provider FareWill and promoting legacy giving on our website and through our social media channels.

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Companies

This year we have been able to secure a small number of Charity of the Year partnerships. Brushstrokes were voted as the nominated charity by local companies Nationwide and Forresters and Coleshill based Wilmott Dixon chose Father Hudson’s Care as their charity following a visit to St Joseph’s Care Home to deliver presents. In Summer 2021 Wilmott Dixon organised a charity walk which raised nearly £1000 for the charity. Gifts in kind continues to be a popular method of corporate giving, at Christmas we were able to secure over £500 worth of bath products from LUSH and food donations have continued from ALDI, Morrisons, Sainsburys and Co-op.

Parishes

Our Parish collections were again severely impacted by the Covid-19 pandemic. Further periods of lockdown in 2021 and afterwards, less parishioners attending church, reduced our fundraising income in this area. The team was also affected in June by the departure of one of the School and Parish fundraisers. However, we have remained proactive in our communication with Parishes through phone calls, emails and where possible face to face visits. Parish income increased this year to £23,392 compared to £19,944 last year. In December we also heavily promoted our crib appeal across the Archdiocese which raised over £4000, significantly more than the £500 we budgeted for.

Catholic Schools

Similar to parishes, our work with Catholic schools was again impacted by the pandemic. Our Annual Good Shepherd Appeal was held online again due to an early lockdown period in 2021. However, we continued to use our digital presence to effectively engage with schools and tell our story. In 2021 we created a virtual school assembly which could be played online, we also developed a downloadable Stations of the Cross activity which was well received by schools across the Archdiocese. Due to the closure of schools in early 2021 we cancelled the printing and distribution of our traditional collection boxes and instead asked schools to donate online to our appeal creating a cost saving.

Although schools’ income has not yet reached pre-pandemic levels there has been an increase from the previous year (£29k compared to £14k in 2021) and we hope that this growth will continue into the coming year.

The team are also still looking for ways to diversify and grow the way we work with schools. Work is still being developed to recruit a number of schools’ speakers to increase our reach across the Archdiocese and although our Walk a Mile fundraising product was not as successful as we had hoped there is still opportunity to use this to further engage with secondary schools and grow our income.

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Trust and statutory fundraising

Trust and statutory fundraising were affected this year by the departure of the Trust fundraiser in June 2021 followed by subsequent difficulties in recruiting a replacement. The pandemic also created more competition for Trust income across the charity sector with a continued focus on short term emergency funding. Despite this, we have had a number of successes in Trust income including Lottery funding for Brushstrokes and smaller Trust successes including money from Warwickshire Council Councillors fund towards a Summer House at St Joseph’s and a number of smaller grants for Family Support team to enable them to create a crisis fund for families in an emergency.

As there is a greater urgency for Trust funding in Community Projects it was decided this year to move the Trust fundraiser role to that team with the remaining fundraising team supporting applications for smaller, core projects where needed.

Regulation and complaints

Father Hudson’s Care is registered with the Fundraising Regulator, follows the Regulator’s Code of Fundraising Practice and abides by its Fundraising Promise. Father Hudson’s Care received no complaints about its fundraising practice during 2021-22, either internally or through the Regulator. When we ask individuals for donations, we do so gently by letter. Supporters have the option to request no further mailings and we abide by such requests immediately.

We are particularly aware of the need to protect our most vulnerable groups through our fundraising activities and have adapted our policies and procedures in accordance with this. We do not make unsolicited asks over the phone and full fundraising requests are made in writing with the consent from those who have previously supported us. We also ensure that any fundraising staff or volunteers have been DBS checked prior to contact with our supporters and are aware of our bullying and whistle blowing policies.

Communications and Marketing work

Work has continued over the last year to update and refresh our marketing materials and tell our story in as many ways as possible. This year the team created a Communications working group made up of representatives from all departments as a way of sharing information and good practice around all aspects of communication.

Our Annual Review document was again refreshed to include more pictures, an infographic and designated Equality, Diversity and Inclusion section to reflect our commitment to work in the area. We have continued to develop our Intranet site with the inclusion of a staff suggestion area and fortnightly news updates.

Over the last year we have followed our marketing plan for St Joseph’s and produced a glossy new brochure and designated website for the Care Home. Marketing activity has also included a new logo for Young at Heart, logo and strapline for our 120 years anniversary, the development of new

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

branded materials such as t-shirts and banners and a printed recruitment campaign for new care staff including posters, news articles and online promotion.

We have continued to engage with external media and have featured regularly in the Coleshill papers including a front-page article on St Joseph’s as well as regular adverts in publications such as Solihull Living magazine, The Sower and local hospital newsletters. Our work has also been supported by Caritas and the Diocesan website who have been especially helpful in supporting our recruitment adverts.

Over the last year we have worked to improve the content on our social media sites with increased use of video content and the use of Canva, an online app designed to improve the visual appearance of posts. The team has also supported other departments with their social media activity including delivering bitesize training to the Community Projects teams about using Canva and storytelling.

Financial review

Financial Results for the year are shown in the Statement of Financial Activities (SoFA).

The SOFA shows that a high proportion of the Society’s income is in the form of fees towards the cost of services. Such fees are charged for provision of residential and day care and fostering services. They are paid by local and health authorities and in the case of residential care may be partially or fully paid by private individuals. The fees received for such services do not cover the full cost of provision of the services. The shortfall is met from voluntary income and reserves.

Projects (Origins service and Community based projects) which attract no fee income are supported from the Society’s fundraising efforts and investment income.

Staff costs are by far the biggest item of expenditure for the Society. Father Hudson’s strives to give residents, clients and service users the highest standard of service and care and relies on the hard work and dedication of its staff for that. It operates in a very competitive environment for staff and therefore offers staff competitive rates of pay and fair leave and sickness benefits. Father Hudson’s also offers all staff membership of a pension scheme. All staff undergo a formal induction programme, have regular supervision and staff meetings, and receive staff newsletters.

Inflation is an issue for Father Hudson’s with major costs on gas, electricity, water and food continuing to increase. Local Authorities, which are under financial constraints are not generally offering increases in fees in line with headline inflation, and certainly not in line with the specific inflation incurred with social care projects. Whilst Father Hudson’s has made some considerable progress in reducing operating deficits, the present economic climate makes further progress difficult without impacting quality of service which is not acceptable to Father Hudson’s.

Father Hudson’s has centralised administration functions covering accounting and cash and investments, personnel management, fundraising and estates management.

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Father Hudson’s Society

Trustees’ annual report

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The SOFA shows a net decrease in funds of £322,199 (2021: decrease £195,495) before net gains on investments and investment properties of £358,642 (2021: gain £1,011,401). The Society's quoted investments are shown at their market value on 31 March 2022 and are held for the long term to generate income to support the mission of the Society and it is not the intention of Father Hudson’s to liquidate them to any significant extent in the short term. Note 18 gives full details of the movements in the assets and liabilities of the Society's pension scheme, in accordance with the disclosure requirements of FRS102. The nature of the assets held by the scheme and the liabilities of the scheme can lead to volatile results. The Scheme closed to future accrual on 31 July 2017.

F.H.S. Projects Ltd, a wholly owned subsidiary company, formed to undertake building development and trading activities, was dormant throughout the year. It has no employees, and the directors receive no remuneration. Its existence continues to be kept under review.

Reserves and Reserves Policy

The Trustees of Father Hudson’s have established a reserves policy which reflects the long-term nature of much of the work of the Society. Father Hudson’s provides residential care to vulnerable adults, most of whom would expect to stay in the Society’s care for the rest of their lives. Additionally, Father Hudson’s has a long history of residential care to children and young adults, and of adoption services. This history carries with it an obligation, both legal and moral, to assist those who were in our care, or were adopted, their birth families and adopters to explore their past, learn reasons why decisions were made and increasingly bring parted relatives together. Adoption records must now be kept for a minimum of 100 years and there is an obligation on Father Hudson’s to offer a post adoption service to those involved in the adoption process throughout their lives.

The reserves of Father Hudson’s are made up of five types of funds:

The total reserves as at 31 March 2022 were £10,591,651, of which £1,602,860 were restricted and not available for general purposes and £2,538,890 were designated.

Expendable Endowment

Expendable endowment funds comprise the value of lands in Birmingham and Coleshill purchased by Father Hudson for the charitable objects of the Society. When such lands are disposed of, the net proceeds are also held in expendable endowment. Expendable endowment funds are held as capital funds but may be expended at the discretion of the Trustees. The income from the endowments is used to support and develop the activities of the Society.

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Restricted Funds

Restricted funds comprise grants or donations made to Father Hudson’s for specific purposes. Such funds usually have to be accounted for in detail to the funder and are not available to be spent on anything other than the donor's intention. Restricted funds include donations towards the capital cost of certain assets purchased by the Society. Such funds are transferred to free funds at the same rate as the depreciation on the associated asset.

Designated Funds

Designated funds are funds set aside by the Trustees for specific purposes, or because such funds are unrealised or not capable of being realised in the short term. The property fund is the capital value of property and fixtures held for charitable use by Father Hudson’s outside of the endowment fund, and as such is not available for general use. The fair value reserve represents the unrealised revaluation gains on the Society’s investments and being unrealised is unavailable for general use.

Free Reserves

Free Reserves are those funds available to meet the day to day needs of the Society’s work. The Trustees have decided that given the long-term commitments in the Society’s work, the fragility of external funding for some of its projects and the uncertainty of voluntary income and legacies, free reserves should be held for not less than 3 and not more than 6 months expenditure. At the balance sheet date free reserves amounted to £838,746, equivalent to 1.5 months unrestricted expenditure. The trustees have adopted a strategic recovery plan to achieve a balanced budget within the period ending 31 March 2024. The focus of the plan is increasing fee income in the St Joseph’s care home following the reopening of the fourth wing and increasing St Catherine’s bungalows income through renegotiation of client fees. However unencumbered reserves, for this purpose defined as the sum of the expendable endowment and free reserves amount to £6,908,697 which equates to 12.4 months unrestricted expenditure.

Pension Reserve

The pension reserve/(deficit) represents the surplus/(shortfall) in funding of the Society’s Pension Scheme as calculated annually by the scheme actuary in line with the requirements of Reporting Standard FRS102. The valuation is a snapshot on a particular day and can vary significantly from year to year and is sensitive to relatively small changes in interest and discount rates.

Going Concern

After reviewing the Society’s budgets and projections, the Trustees have a reasonable expectation that Father Hudson’s has adequate resources to continue in operational existence for the foreseeable future. Father Hudson’s therefore continues to adopt the going concern basis in preparing the financial statements.

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Father Hudson’s Society

Trustees’ annual report

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Investments

Father Hudson’s has an investment portfolio, the income from which is used to support the work and the administration of the Society. The fund is invested in quoted shares, fixed interest gilts and bonds rated A or higher, property funds and cash. The investment objectives are for a secure level of income together with some capital appreciation in order to maintain the real value of the fund. Smith Williamson Investment Management LLP manage the portfolio on a discretionary basis. The Trustees have developed a social, environmental and ethical policy for the portfolio. Any investments which do not comply with the policy are divested as market conditions allow. The portfolio is held for the long term, and the Trustees believe that the structure of the portfolio is broadly in balance with its objectives for the long term.

The investment managers use the MSCI WMA Balanced Index as a guideline against which to assess the performance of the portfolio although they are not required to rigidly adhere to the Index. During the year ended 31 March 2022 the portfolio total return (gain) was 9.80% and the Index total return (gain) was 7.80%. In line with the continuing recovery in global markets during the year, the portfolio returned realised and unrealised gains of £358,642 of which £214,022 were endowment funds and £144,620 were attributable to general funds.

Objectives 2022/23

Structure, Governance and Management

Constitution & Governing Document

Father Hudson’s is a charitable company limited by guarantee, incorporated on 22 July 1982 and registered as a charity on 15 September 1982, to continue the work started by Father Hudson at the beginning of the 20th Century. It was established under a memorandum of association which established the objects and powers of the organisation and is governed under its articles of association. Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2022 was 14 (2021: 15).

The directors at the date of this report are set out on page 1. Mr Neil Handel resigned on 02 August 2021.

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Father Hudson’s Society

Trustees’ annual report

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Recruitment, Appointment and Training of Trustees

Nominations for Trustees have been made by existing Trustees and other supporters of the Society. Father Hudson’s has also successfully advertised for Trustees to replace retiring Trustees. Appointments are made by the Board with the approval of the President in line with identified skills gaps in the existing Board or through retirement. New Trustees undergo a formal induction, managed by the Chief Executive, into their responsibilities, the varied activities and the ethos of the Society. Professional advice is made available to the Trustees at all times and appropriate trustee training is provided.

Organisational Structure

The Board of Trustees has established sub-committees to examine areas of work in more detail and to advise the executive and report to the full Board. Occasionally the Board delegates specific issues and decisions to sub-committees when deemed appropriate. The Board of Trustees sets the strategic direction of Father Hudson’s and approves annual budgets. Implementation and day to day management is delegated to the Chief Executive and through him to the senior management team. The Board constantly reviews its governance structure to ensure that it complies with best practice and is committed to achieving compliance with the Good Governance Code.

Employee Involvement and Employing People with Disabilities

The Equality, Diversity and Inclusion group continued to meet regularly, facilitated by the Head of the Children and Families’ department; membership of the group was widely publicised and was not by appointment. Their work has influenced the organisation’s EDI statement and strategic EDI action plan which was completed and approved by the Trustees in March 2022. Their work has also influenced the development of several policies, including the Menopause policy and Miscarriage policy.

Implementation of the EDI strategic action plan has led to greater focus on employee and service user voice, with a requirement for Heads of Department /service managers’ reports to Trustees’ subcommittees to include specific sections on this during 2022/23.

The Intranet is available to all staff, and this includes a staff suggestion and recommendation form which is beginning to be used, and staff suggestions made have been responded to.

Two of the key support functions are directly accessible to staff and regularly used by staff. Staff know that they can contact HR directly and HR know that they have a mediating role within the organisation. Staff use this option. The new PeopleHR software which has replaced the previous mainly paper-based system has had an immediate benefit for staff for a number of reasons, including booking of annual leave in a timely and effective way and immediate and easy access to all policies. Every staff member in the organisation was provided with a work email address. The appointment of the part-time IT support officer continues to be critical to the success of all these changes.

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Father Hudson’s Society

Trustees’ annual report

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The Finance team is regularly contacted directly by staff who know that they are approachable, and that the organisation operates with the limited bureaucracy that is necessary. They again showed great adaptability when the continuing impact of COVID meant that they had to take on extra responsibilities (some of which were usually carried out by Fundraising) and remained officebased throughout (with good protection in place) in order to ensure that everyone (staff and suppliers) was paid promptly and correctly.

The organisation has improved the coordination of training- a challenging task in terms of the very different needs of the many services. The HR manager leads on the Training coordination across the organisation. She has been working closely with the Head of Adult care with great effect to improve the training available online and face-to-face for the nearly 200 care staff. At the same time the Training coordination group, involving staff from across the departments, continued to focus on providing a coherent Induction programme for all new staff.

The quarterly Managers’ meeting has created a greater understanding of each of the services and the small group work in particular has enhanced the sharing of learning and expertise on common issues. These have also contributed to a deeper understanding of the mission of the organisation and governance of the Charity. EDI has featured very strongly in all these meetings.

The decision which was taken at the beginning of the pandemic was renewed and maintained throughout the cycles of lockdown and easing of lockdown in 2021-22 to ensure that no staff member came to work for fear of not being paid and having to rely on statutory sick pay. The contractual obligations were overridden by an organisational determination to ensure that staff, if they suspected or had confirmed COVID, did not feel a financial need to attend work.

The Charity does not discriminate against a person with a disability for a reason that relates to their disability or treat them less favourably than a non-disabled person. The Charity remains committed to conducting individual risk assessments for every employee with a disability in order to identify any reasonable adjustments it needs to make in the workplace, or job, in order for the person to contribute fully to the work of the charity.

Relationships with related parties and other charities

Father Hudson’s owns 100% of the issued share capital of F.H.S. Projects Ltd, a company registered in England and Wales no. 3720516, whose main activity is the development of property for use by the Society. All profits within F.H.S. Projects Ltd are donated to Father Hudson’s under Gift Aid. The company is currently dormant and so consolidated financial statements have not been prepared.

In 2009 the Trustees transferred adoption work to a new independent non-denominational Charity, Family Society – Adoption Focus. This is a completely independent and separate charity. Family Society – Adoption Focus undertakes some adoption support work on behalf of Father Hudson’s Society. Father Hudson’s provides certain administrative support. All such arrangements are undertaken for fees agreed on an arm’s length basis.

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Father Hudson’s has employed the services of NFP Wealth Management Ltd (NFP) in the design and implementation of a Group Personal Pension Scheme. One of the directors of NFP is related to a trustee of the Society. Fees to NFP have been agreed on an arm’s length basis and the trustee took no part in the decision to use NFP nor in the fee negotiations. At 31 March 2022 fees amounting to £1,800 had been paid or accrued to NFP.

Father Hudson’s has close relationships with a number of other religious charities with whom it collaborates in the delivery of services in Community based projects. In each case there is a written collaboration agreement.

Governance and Internal Controls

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of Father Hudson’s and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of Father Hudson’s and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

Review of Strategic Management 2021/22

Risk assessment review 2021 – 2022 and Management of risk 2022-2023

In 2021/22 there was a need to manage risks connected with the health and support implications of the pandemic and the financial risks connected with the pandemic. Being responsible for the health and psychological well-being of older people and younger people, people whose lives are affected by disability, of those who are homeless, of asylum seekers refugees and migrants great care had to be taken about the quality of service being maintained as well as the ability of the organisation to fund this work. In order to ensure this the Trustees budgeted for a significant operational loss, using its unrestricted assets, rather than endanger the quality and safety of any service, at a time when needs were increasing, due to the pandemic, poverty and other societal changes. Nevertheless, through careful management of resources and successful income generation the organisation again did better than budget and achieved a significantly lower operational loss.

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Risk Review 2021-2022 Risk at the
start ofyear		 Risk at the end
ofyear
Safeguarding children, young people and vulnerable adults
The Safeguarding Leads monitoring and review group,
consisting of two Trustees (one from the Adult care and one
from the Children and Families subcommittees), the three
SMT safeguarding leads and the CEO continued to meet
during the year and will be producing their second annual
safeguarding report for the summer Board meeting. The links
with the Archdiocese safeguarding office remained strong.
The risk has been left at low /medium, because FHC runs 18
different services for very vulnerable client groups, provided
by a large staff team and volunteer team and therefore has to
be constantly alert. This applies to both inspected and non-
inspected services. The need to provide ‘safe’ services is
greater the more vulnerable the groups supported are. The
four new Community Sponsorship schemes had excellent
support from the HR Department concerning the DBS process
for volunteers and the children’s safeguarding SMT lead
supported the safeguarding lead volunteers in the schemes.
Safeguarding lead Trustees have monitored the restructuring
of the fostering team to ensure safeguarding is always at the
forefront and have been well satisfied with the retention of
existing staff and the recruitment of a very experienced new
staff member.
They also have stressed within the main Board that, as critical
as financial sustainability may be, resourcing safeguarding is
a primary responsibility, and this focus is appreciated by the
Board.
Service risk assessments and individual risk assessments
have been seen as key to mitigating safeguarding risks.
Enhanced targeted training, learning from identified
safeguarding concerns in team meetings and supervision,
and peer support, have been an important part of FHC’s
approach. Every report to the relevant service Trustees’
subcommittee has a separate section on safeguarding to
ensure the focus has been maintained.		 Low/Moderate Low/Moderate
Financial management -income generation and expenditure
control
St Joseph’s-The fourth wing remained closed for the whole
of the year, even though the Trustees had agreed to a
reopening when the external environment seemed right. The
main reason for the delay,until openingat the beginningof		 High Moderate
/High

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Risk Review 2021-2022 Risk at the
start ofyear		 Risk at the end
ofyear
April 2022 was connected with the recruitment of staff in the
Adult care sector. During this year substantial expenditure on
each of the wings and particularly the closed wing was
undertaken regarding refurbishment. Considerable effort also
went into marketing, and this has led to a significant increase
in referrals and the confidence to reopen the fourth wing.
Day service-the service was able to adapt in order to
continue meeting the needs of clients, by continuing to
provide in-house support and tailored outreach, and also
attracted new clients in the year. This has been a remarkable
turnaround		 High Moderate
St Catherine’s-as noted previously, the Trustees recognise
the high level of underpaying Local Authorities. Through
persistent and assiduous negotiation with Local Authorities
by the existing FHC team more reasonable fees were
negotiated for several clients. In addition to this the trustees
agreed employing the services of a legal charity to assist with
future negotiations. Despite this, it is too early to change the
risk level, especially when the employment costs and other
costs continue to escalate.		 Moderate Moderate
New Routes– even though the service has had a successful
year financially (compared to the budget) the risk remains as
moderate. It is encouraging that new Foster carers have been
recruited and the necessary restructuring of the team was
well managed.		 Moderate Moderate
Family Support in Schools’ Service- the service continues to
be well valued by the schools who use it; the service does
require significant FHC subsidy from unrestricted funds,
which is a challenge. However, the Trustees continue to value
the high number of children, young people and families who
are supported across the Archdiocese through the service and
the effective impact it has. It has been decided to retain the
level of risk as moderate/high, even though a new manager
was successfullyrecruited in theyear. How successful the		 Moderate/High Moderate/High

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Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Risk Review 2021-2022 Risk at the
start ofyear		 Risk at the end
ofyear
marketing of the service in the new MAC structures and
different decision-making systems in schools is, will
determine the possibilities of expansion. There is no doubt
from the feedback from families and schools that the service
is needed.
Tabor House– the strong Management committee and the
effectiveness of the service in achieving positive outcomes,
with guests securing employment and finding
accommodation, has ensured a good year. The plan is to
double the number of guests who can benefit by moving to a
new site in 2022, where move on accommodation and
community activities can be added to the initial
accommodation and support offer. During the year the
necessary capital funding was secured to refurbish the new
site and agreement reached on the move. The risk level is
raised slightly to recognise this transition.		 Low Low /Moderate
Staff recruitment and retention
In previous years this was primarily a concern for community
projects, with short-term contracts and short-term funding
leading to retention/recruitment challenges. However, due to
many factors affecting the external environment it has been
necessary to apply this risk assessment to every area of FHC’s
work. The Trustees took a decision to increase the salaries of
those in Adult care in January 2022 (rather than wait till April
2022) to comply with the National living wage and decided to
exceed the NLW. This proved to be beneficial. All other staff
received a 4% inflationary increase, which at the time was
appreciated by staff. The impact of the war in Ukraine has
changed the external environment regarding inflation
substantially.		 Moderate/High Moderate/High
Pension Fund liability- This was carefully managed by the
Trustees, with the assistance of professional external advice,
and agreement was reached with the Pension fund Trustees
that was considered reasonable by both parties. Therefore,
the risk is adjusted to moderate.		 Moderate/High Moderate

36

Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Risk Review 2021-2022 Risk at the
start ofyear		 Risk at the end
ofyear
Data security, including cyber attacks
Whilst no regional charity is naïve enough to think it is
completely secure, FHC for some years has taken the decision
to invest in data security provided via its IT partner, TSG.
In addition to possible cyber-attacks, the increased use of IT
for recording personal details, the increased use of email etc.
for communication purposes, brings with it the danger of
data breaches. This year more staff will be trained in this area
of work including other data issues such as SARs (subject
access requests), which carry with them workload challenges
and in satisfying SARs possibility of data breaches.		 N/A
(New Risk
heading)		 Moderate
/High

37

Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Strategic Risk management 2022/2023

The following management actions are in place:

Safeguarding

The particular focus will be on recommendations from the Trustees and SMT Leads’ group, for improving practice, and the outcome of discussions at Trustees’ subcommittees regarding the issues identified in Heads of Department reports. FHC will continue to seek appropriate safeguarding training for its many different services working with such diverse client groups.

St Joseph’s- whilst the marketing of St Joseph’s to increase occupancy has been successful this will need to continue, and Trustees have sanctioned any further expenditure for this purpose. There is a confidence that once families and individuals know of, and visit, St Joseph’s they are keen to access the service.

St Catherine’s Dayservice – whilst the risk is lower the service will need to ensure that the approach that helped it achieve financial sustainability in 2021-22 is maintained, to avoid the reemergence of operational deficits.

St Catherine’s - Local Authorities will continue to be challenged with the help of ASC (legal advice support Charity) working with FHC staff to achieve fair fee income.

Greater marketing will be provided to help with recruitment of staff (similar to the work in the previous two years with St Joseph’s).

Family Support in Schools’ Service - the new manager and his team will focus on securing commissions from MACS to enable the development of the service and its financial sustainability within this new structuring of schools and their decision-making.

Property Management – the building of the new Community room at St Vincent’s will be mainly resourced by fundraising activity, with limited use of FHC assets (which have to be used for other purposes -sustaining existing services).

Fundraising - two new team members will be recruited, with a greater focus on fundraising, particularly Trust fundraising for Community projects, where funding is envisaged to become a major challenge in 22-23, even after such a successful fundraising in 2021-22.

It remains the case that the Charities supported by Father Hudson’s, which rely upon external funding themselves, are exposed to risk. Whilst the risk is managed by these Charities, and therefore they do not expose Father Hudson’s to unknown or unlimited liabilities, Father Hudson’s does all it can to support these much-needed charities.

38

Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

Key Management Personnel Remuneration

The Trustees consider the Senior Management Team, comprising the Principal Staff listed on page 1, as being the key management personnel of Father Hudson’s in charge of running and operating the charity on a day-to-day basis. All Trustees give of their time freely and no Trustees’ remuneration was paid in the year. Details of Trustees’ reimbursed expenses and related party transactions are disclosed in notes 9 and 11 to the financial statements.

Trustees are required to disclose all relevant interests and register them in accordance with the Society’s policy and highlight them during discussions where a conflict of interest arises.

The pay of the charity’s management team is reviewed annually. The remuneration is benchmarked with other charities of a similar size and activity in the West Midlands area to ensure that the remuneration is fair and not out of line with that paid for similar roles.

Statement of responsibilities of the Trustees

The Trustees (who are also directors of Father Hudson’s for the purposes of company law) are responsible for preparing the report of the Trustees’ and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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

39

Father Hudson’s Society

Trustees’ annual report

For the year ended 31 March 2022

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The Trustees’ annual report which includes the strategic report has been approved by the Trustees on 14 June 2022 and signed on their behalf by

Kevin Caffrey MBE Trustee

40

Independent auditor’s report

To the members of

Father Hudson’s Society

Opinion

We have audited the financial statements of Father Hudson’s Society (the ‘charitable company’) for the year ended 31 March 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting 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 our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

41

Independent auditor’s report

To the members of

Father Hudson’s Society

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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

42

Independent auditor’s report

To the members of

Father Hudson’s Society

satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

43

Independent auditor’s report

To the members of

Father Hudson’s Society

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Holden (Senior statutory auditor) 22 June 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

44

Father Hudson's Society

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2022

Note
Income from:
2
3
3
3
4
5
6
6
6
6
14
15
8
21a
Reconciliation of funds:
Transfers between funds
Net income/(expenditure) before other
recognised gains and losses
Actuarial gains (losses) on defined
benefit pension schemes
Net movement in funds
Total funds brought forward
Total funds carried forward
Net income/(expenditure) for the year
Family Placement
Net gains/(losses) on investments
Community Projects
Total expenditure
Net gains on investment properties
Net income /(expenditure) before net
gains/(losses) on investments
Donations and legacies
Charitable activities
Community projects
Adult Care
Family Placement
Investments
Other activities
Charitable activities
Total income
Raising funds
Expenditure on:
Adult Care		 Endowment
£
-
-
-
-
-
61,838		 Restricted
£
299,549
-
-
929,452
-
-		 Unrestricted
£
231,180
5,021,385
740,599
189,316
39,704
186,665		 2022
Total
£
530,729
5,021,385
740,599
1,118,768
39,704
248,503		 Endowment
£
-
-
-
-
-
64,085		 Restricted
£
243,396
-
-
1,174,520
-
-		 Unrestricted
£
349,322
4,612,724
777,263
164,254
174,604
164,453		 2021
Total
£
592,718
4,612,724
777,263
1,338,774
174,604
228,538
61,838 1,229,001 6,408,849 7,699,688 64,085 1,417,916 6,242,620 7,724,621
-
-
-
-		 -
61,488
210
1,258,779		 228,765
5,053,279
942,095
477,271		 228,765
5,114,767
942,305
1,736,050		 -
-
-
-		 -
69,914
309
1,109,670		 245,535
4,961,174
1,019,591
513,923		 245,535
5,031,088
1,019,900
1,623,593
- 1,320,477 6,701,410 8,021,887 - 1,179,893 6,740,223 7,920,116
61,838
-
214,022		 (91,476)
-
-		 (292,561)
-
144,620		 (322,199)
-
358,642		 64,085
-
366,508		 238,023
-
-		 (497,603)
44,000
600,893		 (195,495)
44,000
967,401
275,860
(61,838)		 (91,476)
-		 (147,941)
61,838		 36,443
-		 430,593
(64,085)		 238,023
-		 147,290
64,085		 815,906
-
214,022
-		 (91,476)
-		 (86,103)
834,000		 36,443
834,000		 366,508
-		 238,023
-		 211,375
(355,000)		 815,906
(355,000)
214,022
5,855,929		 (91,476)
1,694,336		 747,897
2,170,943		 870,443
9,721,208		 366,508
5,489,421		 238,023
1,456,313		 (143,625)
2,314,568		 460,906
9,260,302
6,069,951 1,602,860 2,918,840 10,591,651 5,855,929 1,694,336 2,170,943 9,721,208

There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 21 to the financial statements.

45

Father Hudson's Society

Balance sheet

Balance sheet
As at 31 March 2022 Company no. 01653388
Note
Fixed assets:
13
14
15
Current assets:
16
Liabilities:
17
19
21
Total unrestricted funds
Investments
Tangible assets
Investment properties
Cash at bank and in hand
Debtors
Creditors: amounts falling due within one year
Defined benefit pension scheme liability
Restricted funds
Unrestricted income funds:
Designated funds
Net current assets
Net assets excluding pension liability
Total net assets
The funds of the charity:
Expendable Endowment
Revaluation reserve
General funds
Fair value reserve
Pension reserve
Total charity funds		 £
728,552
1,022,183		 2022
£
4,767,986
779,000
5,728,097		 £
591,624
1,206,333		 2021
£
4,937,290
779,000
5,384,654
11,275,083
1,100,568		 11,100,944
1,329,264
1,750,735
(650,167)		 1,797,957
(468,693)
2,538,890
629,428
695,776
838,746
(1,784,000)		 2,664,780
565,411
695,776
953,976
(2,709,000)
12,375,651
(1,784,000)		 12,430,208
(2,709,000)
10,591,651 9,721,208
6,069,951
1,602,860
2,918,840		 5,855,929
1,694,336
2,170,943
10,591,651 9,721,208

Approved by the trustees on 14 June 2022 and signed on their behalf by

Kevin Caffrey MBE Trustee

46

Father Hudson's Society

Statement of cash flows

For the year ended 31 March 2022

Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income for the reporting period
(as per the statement of financial activities)
Dividends, interest and rent from investments
Depreciation charges
Gains on investments
(Profit) on the disposal of fixed assets
FRS102 Pension adjustments (non cash)
Actuarial (gains)/losses on investments
Pension scheme deficit payments
Increase in debtors
Increase in creditors
Net cash used in operating activities
Note
£
302,503
50
(190,048)
652,082
(450,512)
(186,371)
(54,000)
At 1 April
2021
£
Cash at bank and in hand
1,206,333
Total cash and cash equivalents
1,206,333
Analysis of cash and cash equivalents
Purchase of investments
Purchase of fixed assets
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year
Net cash provided by investing activities
Net return on pension scheme
Proceeds from sale of investments
Decrease/(increase) in cash held in listed
investments portfolio
Proceeds from the sale of fixed assets
Cash flows from investing activities:
Cash flows from operating activities
Dividends, interest and rents from investments
Net cash used in operating activities		 Net income for the reporting period
(as per the statement of financial activities)
Dividends, interest and rent from investments
Depreciation charges
Gains on investments
(Profit) on the disposal of fixed assets
FRS102 Pension adjustments (non cash)
Actuarial (gains)/losses on investments
Pension scheme deficit payments
Increase in debtors
Increase in creditors
Net cash used in operating activities
Note
£
302,503
50
(190,048)
652,082
(450,512)
(186,371)
(54,000)
At 1 April
2021
£
Cash at bank and in hand
1,206,333
Total cash and cash equivalents
1,206,333
Analysis of cash and cash equivalents
Purchase of investments
Purchase of fixed assets
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year
Net cash provided by investing activities
Net return on pension scheme
Proceeds from sale of investments
Decrease/(increase) in cash held in listed
investments portfolio
Proceeds from the sale of fixed assets
Cash flows from investing activities:
Cash flows from operating activities
Dividends, interest and rents from investments
Net cash used in operating activities		 2022
£
(257,854)
73,704		 2022
£
870,443
(248,503)
359,352
(358,642)
(50)
54,000
(834,000)
(145,000)
(136,928)
181,474		 2021
£
460,906
(228,538)
348,864
(1,011,401)
(113,950)
55,000
355,000
-
(16,893)
70,175
(257,854) (80,837)
£
283,538
158,393
(158,047)
1,030,749
(1,059,529)
43,877
(55,000)		 2021
£
(80,837)
243,981
At 1 April
2021
£
1,206,333		 Other
changes
£
-
(184,150)
1,206,333		 163,144
1,043,189
1,022,183 1,206,333
Cash flows
£
(184,150)		 At 31 March
2022
£
1,022,183
1,206,333 (184,150) - 1,022,183

47

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

The registered office address and principal place of business is St George's House, Gerards Way, Coleshill, Birmingham B46 3FG.

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

48

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

h) Fund accounting

Expendable endowment funds are funds realised from the disposal of assets purchased for the Society by its founder Mgr George Hudson from funds raised by public subscription.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) Expenditure and irrecoverable VAT

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

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

49

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

1 Accounting Policies (continued)

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity

Adult Care 55%
Family Placement 16%
Community Projects 16%
Costs of generating voluntary income 4%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

l) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

 Land (no depreciation)

 Buildings 3%  Motor Vehicles 12.5 - 25%  Computers 20%

 Fixtures, Fittings and Equipment 10 - 25%

n) Investment properties

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a revaluation reserve in the balance sheet. The valuation method used to determine fair value will be stated in the notes to the accounts.

50

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Net gains/(losses) on investments' in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

Investments in subsidiaries are at cost. FHS Projects Limited, a wholly owned subsidiary was dormant for the year and so consolidated accounts were not needed.

q) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and cash in hand includes cash. Cash balances exclude any funds held on behalf of service users.

t) Financial instruments

With the exception of the defined benefit pension liability, the charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Non-basic financial instruments are measured at fair value with any gain or loss going to the statement of financial activities. Full details of the non-basic financial instruments are given in the financial instruments note.

u) Pensions

The society operates a defined benefit pension scheme. The cost of providing pension and related benefits is charged to the SOFA over the employees' service lives on the basis of a constant percentage of earnings which is an estimate of the regular cost. Variations from regular cost, arising from periodic actuarial valuations are allocated over the expected remaining service lives of current employees on the basis of a constant percentage of current and estimated future earnings. Any difference between the charge to the SOFA and the contributions payable to the scheme is shown as an asset or liability in the balance sheet.

Contributions payable on behalf of employees to money purchase pension schemes are charged to the Statement of Financial Activities as they become payable.

51

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

2 Income from donations and legacies

2
Income from donations and legacies
3
4
5
Interest receivable
Income from UK listed Investments
Rental Income
Net return on pension scheme
Total income from investments
Local Authority
Total income from charitable activities
Sub-total for Family Placement
Total income from other activities
Schools
Sub-total for Community Based Projects
Income from other activities
Income from investments
Profit on Disposal of Fixed Assets
Schools
Administration Charges
Other Charities
Grants
Parishes
Tax Recoverable
Local Authority
Income from charitable activities
Sub-total for Adult Care
Private
Other Donations
Coronavirus Job Retention Scheme
Adult Social Care Workforce Capacity
Fund Grant
Legacies
Restricted donations		 Restricted
£
274,549
25,000
-
-
-
-
-		 £
-
22,000
29,079
23,392
144,623
-
12,086
Unrestricted		 2022
Total
£
274,549
47,000
29,079
23,392
144,623
-
12,086		 Restricted
£
243,396
-
-
-
-
-
-		 £
-
5,500
14,556
19,944
142,337
152,986
13,999
Unrestricted		 2021
Total
£
243,396
5,500
14,556
19,944
142,337
152,986
13,999
299,549 231,180 530,729 243,396 349,322 592,718
Restricted
£
-
-
-		 £
3,414,424
188,892
1,418,069
Unrestricted		 2022
Total
£
3,414,424
188,892
1,418,069		 Restricted
£
-
-
-		 £
2,918,645
230,245
1,463,834
Unrestricted		 2021
Total
£
2,918,645
230,245
1,463,834
-
-		 5,021,385
740,599		 5,021,385
740,599		 -
-		 4,612,724
777,263		 4,612,724
777,263
-
226,386
703,066
-		 740,599
-
189,316		 740,599
226,386
703,066
189,316		 -
269,581
904,939
-		 777,263
-
-
164,254		 777,263
269,581
904,939
164,254
929,452 189,316 1,118,768 1,174,520 164,254 1,338,774
929,452 5,951,300 6,880,752 1,174,520 5,554,241 6,728,761
Restricted
£
-
-		 £
39,654
50
Unrestricted		 2022
Total
£
39,654
50		 Restricted
£
-
-		 £
60,654
113,950
Unrestricted		 2021
Total
£
60,654
113,950
- 39,704 39,704 - 174,604 174,604
Endowment
£
61,838
-
-
-		 £
111,593
112
(54,000)
128,960
Unrestricted		 2022
Total
£
173,431
112
(54,000)
128,960		 Endowment
£
64,085
-
-
-		 £
93,724
229
(55,000)
125,500
Unrestricted		 2021
Total
£
157,809
229
(55,000)
125,500
61,838 186,665 248,503 64,085 164,453 228,538

52

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

6a Analysis of expenditure (current year)

Staff costs (Note 9)
Client Costs
Property Costs
Publicity Costs
Agency Costs
Travel Costs
Professional Fees
Other Direct Costs
Depreciation
Audit Fee
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Cost of
raising funds
£
130,298
-
24,831
10,304
-
766
50
10,521
-
-		 Charitable activities Charitable activities Charitable activities Support
Costs
£
526,546
4,599
133,751
-
3,011
7,959
59,276
99,238
102,228		 Governance
Costs
£
-
-
-
-
-
-
19,154
6,785
-
12,675		 2022
Total
£
5,225,837
724,646
854,964
14,853
279,470
66,922
138,110
345,058
359,352
12,675		 2021
Total
£
5,297,162
855,680
757,949
5,561
133,256
46,167
191,733
271,675
348,863
12,070
Adult Care
£
3,130,203
206,420
474,835
4,475
274,727
34,254
39,685
135,194
253,827
-		 Family
Placement
£
274,899
410,980
30,015
-
1,732
10,344
3,095
31,118
3,297
-		 Community
Based
Projects
£
1,163,891
102,647
191,532
74
-
13,599
16,850
62,202
-
-
176,770
44,957
7,038		 4,553,620
495,466
65,681		 765,480
154,540
22,285		 1,550,795
162,970
22,285		 936,608
(936,608)
-		 38,614
78,675
(117,289)		 8,021,887
-
-		 7,920,116
-
-
228,765 5,114,767 942,305 1,736,050 - - 8,021,887 -
245,535 5,031,088 1,218,313 1,425,180 - - 7,920,116

53

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

6b Analysis of expenditure (prior year)

Charitable activities

Staff costs (Note 9)
Client Costs
Property Costs
Publicity Costs
Agency Costs
Travel Costs
Professional Fees
Other Direct Costs
Depreciation
Audit Fee
Support costs
Governance costs
Total expenditure 2021		 Cost of
raising funds
£
158,088
-
8,800
3,086
-
85
3,263
23,323
-
-		 Adult Care
£
3,226,820
311,262
457,243
2,272
128,569
21,164
28,627
89,910
241,943
-		 Family
Placement
£
281,848
478,113
8,297
203
-
12,040
9,692
61,173
3,950
-		 Community
Based
Projects
£
1,099,584
66,305
155,283
-
2,838
4,114
42,766
79,750
-
-		 Support
Costs
£
530,822
-
128,326
-
1,849
8,764
74,834
17,519
102,970		 Governance
Costs
2021
Total
£
£
-
5,297,162
-
855,680
-
757,949
-
5,561
-
133,256
-
46,167
32,551
191,733
271,675
-
348,863
12,070
12,070
44,621
7,920,116
72,778
-
(117,399)
-
-
7,920,116
196,645
41,846
7,044		 4,507,810
457,535
65,743		 855,316
142,278
22,306		 1,450,640
150,647
22,306		 865,084
(865,084)
-
245,535 5,031,088 1,019,900 1,623,593 -

54

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

Grant making and support for other charities (current year)
Maryvale
Cost
Sanctuary
Hope Community Project
Total gift in kind in the year		 Support
costs
£
29,772
36,258
16,585		 2022
£
29,772
36,258
16,585
82,615 82,615

No cash grants were made in the year (2021: £nil). The gift in kind comprises allocated support costs.

7b Grant making and support for other charities (prior year)

Grant making and support for other charities (prior year)
Cost
Sanctuary
Maryvale
Hope Community Project
Total gift in kind in the year		 Support
costs
£
41,436
20,472
18,276		 2021
£
41,436
20,472
18,276
80,184 80,184

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2022 2021
£ £
Depreciation 359,352 348,864
Profit on disposal of fixed assets (50) (113,950)
Operating lease rentals:
l
Property		 38,333 36,750
l
Other		 56,879 58,033
Auditor's remuneration (excluding VAT):
l
Audit		 12,675 12,070

55

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Redundancy and termination costs
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension scheme		 2022
£
4,637,209
16,035
338,708
233,885		 2021
£
4,712,874
4,027
339,004
241,257
5,225,837 5,297,162

Redundancy and termination costs were paid and settled in the year. The redundancy and termination costs accrued at the balance sheet date were £nil (2021: £nil).

The following number of employees received employee benefits (excluding employer's national insurance and employer pension costs) during the year between:

£70,000 - £79,999

2022 2021
No. No.
1 1

The total employee benefits including employer's national insurance and pension contributions of the key management personnel were £402,432(2021: £387,892).

The charity trustees were not paid nor received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2021: £nil).

10 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows: follows:


follows:
Community projects including schools
Family Placement
Raising funds
Adult Care
Governance
Support		 2022
No.
6
233
9
72
15
2		 2021
No.
6
198
10
62
16
2
337 294

56

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

11 Related party transactions

There are related party transactions to disclose for 2021/22 as detailed below.

Aggregate donations from related parties were £25,000 all of which was received from Birmingham Diocesan Trust (2021: £25,000).

The Society has employed the services of NFP Wealth Management Ltd (NFP) in the design and implementation of a Group Personal Pension Scheme. One of the directors of NFP is related to a trustee of the Society. Fees to NFP have been agreed on an arms length basis and the trustee took no part in the decision to use NFP nor in the fee negotiations. At 31 March 2022 fees amounting to £1,800 (2021: £1,800) had been paid to NFP.

The President of the Society, the Most Rev. Bernard Longley, is a trustee of Birmingham Diocesan Trust (registered charity number 234216). During the year, the Trust paid for residential care for sick and retired priests in St Joseph’s Care Home amounting to £59,853(2021: £52,228). The balance at the year end was £nil (2021: £nil) due to the Society.

Mrs Jo Watters, Head of Community Projects, is a trustee of Hope Community Project (registered charity number 1139362). During the year the Society made a donation of £nil (2021: £nil) to the Project and provided support services in kind to the value of £29,772 (2021: £41,436) for which payment of £5,000 was received (2021: £8,000). The balance at the year end was £nil (2021: £nil).

The Society is a corporate trustee of Maryvale Community Project (registered charity number 1147691). During the year the Society provided support services in kind to the Project to the value of £16,572 (2021: £18,276). The balance at the year end was £nil (2021: £nil).

12 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

13 Tangible fixed assets

Net book value
At the end of the year
At the start of the year
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
At the end of the year		 Freehold
property
£
7,066,464
-
-		 Leasehold
property
£
151,716
-
-		 Fixtures and
Fittings
£
936,222
128,108
-		 Computer
equipment
£
118,077
-
-		 Motor
vehicles
£
186,930
61,940
(16,500)		 Total
£
8,459,409
190,048
(16,500)
7,066,464 151,716 1,064,330 118,077 232,370 8,632,957
3,011,184
209,264
-		 6,448
4,552
-		 355,716
100,227
-		 31,336
23,380
-		 117,435
21,929
(16,500)		 3,522,119
359,352
(16,500)
3,220,448 11,000 455,943 54,716 122,864 3,864,971
3,846,016 140,716 608,387 63,361 109,506 4,767,986
4,055,280 145,268 580,506 86,741 69,495 4,937,292

Land with a value of £31,000 (2021: £31,000) is included within freehold property and not depreciated.

All of the above assets are used for charitable purposes.

57

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

Investment properties
Fair value at the start of the year
Revaluation during the year
Fair value at the end of the year		 2022
£
779,000
-		 2021
£
735,000
44,000
779,000 779,000

The investment properties were last valued on an open market (assuming vacant possession) or investment basis by ehBReeves Chartered Surveyors as at 31 March 2021. The trustees have reviewed the ehBReeves valuation and are of the opinion that this represents fair value as at 31 March 2022.

15 Listed investments

Listed investments
2022 2021
£ £
Fair value at the start of the year 5,250,331 4,254,150
Additions at cost 450,512 1,059,529
Disposal proceeds (652,082) (1,030,749)
Net gain / (loss) on change in fair value 358,642 967,401
5,407,403 5,250,331
Cash held by investment broker pending reinvestment 320,692 134,321
Fair value at the end of the year 5,728,095 5,384,652
Investments comprise:
2022 2021
£ £
UK Collective Funds 1,920,731 1,928,941
Shares listed on the London Stock Exchange 2,472,001 2,717,618
Fixed Interest 463,451 384,961
Property Funds 251,395 218,811
Overseas equities 299,825 -
Cash 320,692 134,321
5,728,095 5,384,652
Shares in group undertaking 2022 2021
£ £
Cost at 1 April 2021 and 31 March 2022 2 2

The Society owns 100% of the issued share capital of F.H.S. Projects Limited. The company was dormant during the current and previous financial years.

16 Debtors

Debtors
Trade debtors
Accrued income
Prepayments		 2022
£
409,351
300,206
18,995		 2021
£
305,271
233,998
52,355
728,552 591,624

58

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

17 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Accruals		 2022
£
324,716
88,396
237,055		 2021
£
153,942
78,199
236,552
650,167 468,693

18 Pension Scheme

The charity operates a defined benefit scheme in the UK which closed to future accrual on 31st July 2017. The assets are held separately from those of the group, being invested in managed funds with insurance companies. Contributions to the scheme are charged to the statement of financial activities so as to spread the cost of pensions over employees' working lives with the company. The contributions are determined by a qualified Actuary on the basis of triennial valuations using the projected unit method.

The most recent full actuarial valuation was carried out at 1 August 2020 by a qualified independent actuary. The actuarial value (using the Statutory Funding Objective) amounted to £7,156,293 at that date. Scheme assets were 70% of that figure. The Scheme trustees and the Society have agreed a Recovery Plan which targets the funding shortfall at its date of signing, 18 October 2021. At this date the Scheme's funding position had improved and the deficit had reduced to £1,112,000. The Recovery Plan aims to clear the deficit within 10 years of the Valuation Date (01 August 2030).

Until 31st July 2017 contributions were paid at 13.4% of pensionable pay and employee members contributed 8% of pensionable pay. The charity continues to pay all costs of running the Scheme.

The assumptions which have the most significant effect on the results of the valuation are those relating to the rate of return on investments and the rate of increase in salaries and pensions. It was assumed that:

The employer's contribution for the period was £194,605 (including deficit contributions of £145,000 (2021: £47,405 including deficit contributions £nil).

The employee benefit obligations recognised in the balance sheet are as follows:

Present value of funded obligations
Fair value of plan assets		 2022
£'000
(7,658)
5,874		 2021
£'000
(8,212)
5,503
(1,784) (2,709)

59

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

18 Pension Scheme (continued)

2022
£'000
(7,658)
5,874
(1,784)
2022
£'000
-
(166)
112
(54)
420
2022
£'000
8,212
166
(526)
(194)
7,658
2022
£'000
5,503
112
308
145
(194)
5,874
2022
%
63
21
12
4
Changes in the present value of the defined benefit obligation are as follows:
Employer contributions
Total
Interest on obligation
Net Liability
Current service cost
Expected return
Cash
Property
Benefits paid
Actuarial gains
Equities
Bonds
Interest cost
Opening fair value of plan assets
Closing defined benefit obligation
Opening defined benefit obligation
Actual return on plan assets
Liabilities
Assets
Amounts in the balance sheet
Changes in the fair value of plan assets are as follows:
Expected return on plan assets
Amounts recognised in net income(expenditure) are as follows:
Actuarial gains
Benefits paid
The major categories of plan assets as a percentage of total plan assets are as follows:		 2022
£'000
(7,658)
5,874		 2021
£'000
(8,212)
5,503
(1,784) (2,709)
2022
£'000
-
(166)
112		 2021
£'000
-
(164)
109
(54) (55)
420 1,008
2022
£'000
8,212
166
(526)
(194)		 2021
£'000
6,872
164
1,254
(78)
7,658 8,212
2022
£'000
5,503
112
308
145
(194)		 2021
£'000
4,573
109
899
-
(78)
5,874 5,503
2021
%
63
22
11
4

60

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

18 Pension Scheme (continued)

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2022
2021
£'000
£'000
(7,658)
(8,212)
5,874
5,503
(1,784)
(2,709)
(69)
39
308
899
Defined pension scheme liability
Defined benefit obligation
liabilities
Plan assets
Experience adjustments on plan
Experience adjustments on plan
Financial instruments
Financial liabilities measured at fair value through profit or loss
Investments
Future pension increases
Discount rate at the end of the year
Future salary increases
Financial assets measured at fair value through profit and loss
assets
Amounts for the current and previous four periods are as follows:
Deficit
Expected return on plan assets at the end of the year		 2021
£'000
(8,212)
5,503
(2,709)
39
899
e as follows:		 2020
£'000
(6,872)
4,573
-
33
(682)		 2022
2.75%
4.90%
0.00%
3.75%		 2021
2.05%
2.40%
0.00%
3.40%
2019
£'000
(7,284)
5,192
-
(3)
76		 2018
£'000
(6,846)
5,075
(1,771)
(246)
32
2022
£
5,407,403		 2021
£
5,250,331
1,784,000 2,709,000

19 Financial instruments

61

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

20a Analysis of net assets between funds (current year)

20b
Net current assets
Defined benefit pension liability
Tangible fixed assets
Investment properties
Net current assets
Net assets at 31 March 2021
Net assets at 31 March 2022
Tangible fixed assets
Investments
Investments
Defined benefit pension liability
Analysis of net assets between funds (prior year)
Investment properties		 Endowment
funds
£
3,621,900
-
2,448,051
-
-		 Restricted
funds
£
745,700
-
857,160
-		 Unrestricted
funds
£
400,386
779,000
3,280,046
243,409
(1,784,000)		 Total funds
£
4,767,986
779,000
5,728,097
1,100,569
(1,784,000)
6,069,951 1,602,860 2,918,841 10,591,652
Endowment
funds
£
3,621,534
-
2,234,395
-
-		 Restricted
funds
£
803,024
-
-
891,312
-		 Unrestricted
funds
£
512,732
779,000
3,150,259
437,952
(2,709,000)		 Total funds
£
4,937,290
779,000
5,384,654
1,329,264
(2,709,000)
5,855,929 1,694,336 2,170,943 9,721,208

62

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

21a Movements in funds (current year)

Restricted funds:
Total restricted funds
Total designated funds
Fair value reserve
Revaluation reserve
General funds
Helena Woolley Fund
Unrestricted funds:
Expendable Endowment
Capital
St Joseph's Care Home
Other
Day Service
Fatima House
North Staffs YAH
Ishelter/ Tabor 2
Income
Brushstrokes
Tabor House
Brushstrokes - Lottery
Hope Community project
Pension reserve
Emrys John Ellis Fund
Designated funds
Property Fund
Capital Funds
Income Funds
Post Adoption Support Fund
Total funds including pension fund
Total unrestricted funds		 At the start of
the year
£
5,855,929		 Income and
gains
£
275,860		 Expenditure
and losses
£
-		 Transfers
£
(61,838)		 At the end of
the year
£
6,069,951
803,024
-
509,200
9,836
-
21,518
65,795
122,664
91,492
70,807		 -
91,668
618,507
120,636
-
-
256
141,043
77,461
179,430		 (57,324)
(91,668)
(639,966)
(73,573)
-
(3,150)
(18,042)
(205,716)
(89,142)
(141,896)		 -
-
-
-
-
-
-
-
-
-		 745,700
-
487,741
56,899
-
18,368
48,009
57,991
79,811
108,341
1,694,336 1,229,001 (1,320,477) - 1,602,860
2,197,015
264,609
13,001
190,155		 -
-
-
-		 -
-
(19,008)
(31,541)		 189,268
(264,609)
6,007
(6,007)		 2,386,283
-
()
152,607
2,664,780 - (50,549) (75,341) 2,538,890
565,411
695,776
953,976		 -
-
6,607,469		 -
-
(6,650,861)		 64,017
-
(71,838)		 629,428
695,776
838,746
4,879,943 6,607,469 (6,701,410) 61,838 4,702,840
(2,709,000) 780,000 - 145,000 (1,784,000)
9,721,208 8,892,330 (8,021,887) - 10,591,651

Transfers

Expendable Endowment

The transfer of £61,838 (2021: £64,085) to general funds comprises income arising on Expendable Endowment listed investments.

Post Adoption Support Fund

The fund is no longer required and accordingly the balance is transferred to general funds.

Property Fund

The transfer into the fund is the amount required so that the balance equals the net book value of adult care freehold and leasehold buildings and fixtures and fittings less the St Joseph's Care home capital fund.

Pension reserve

The transfer of £145,000 (2021: £nil) represents deficit payments made in the year.

63

Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

21b Movements in funds (prior year)

Restricted funds:
Total restricted funds
Total designated funds
Fair value reserve
Revaluation reserve
General funds
Total unrestricted funds
Pension reserve
Total funds including pension fund
Day Service
Fatima House
Ishelter/ Tabor 2
Tabor House
North Staffs YAH
Other
Capital Funds
Property Fund
Post Adoption Support Fund
Emrys John Ellis Fund
Helena Woolley Fund
Expendable Endowment
Designated funds
Income Funds
Capital
St Joseph's Care Home
Unrestricted funds:
Brushstrokes - Lottery
Income
Hope Community project
Brushstrokes		 At the start of
the year
£
5,489,421		 Income &
gains
£
430,593		 Expenditure
& losses
£
-		 Transfers
£
(64,085)		 At the end of
the year
£
5,855,929
860,348
-
269,850
15,121
51,586
24,667
38,589
87,942
63,376
44,834		 -
96,213
701,776
94,026
-
-
52,930
155,117
161,717
156,137		 (57,324)
(96,213)
(462,426)
(99,311)
-
(3,149)
(25,724)
(171,981)
(133,601)
(130,164)		 -
-
-
-
(51,586)
-
-
51,586
-
-		 803,024
-
509,200
9,836
-
21,518
65,795
122,664
91,492
70,807
1,456,313 1,417,916 (1,179,893) - 1,694,336
2,197,015
264,609
13,001
220,000		 -
-
-
-		 -
-
-
(29,845)		 -
-
-
-		 2,197,015
264,609
13,001
190,155
2,694,625 - (29,845) - 2,664,780
9,276
651,776
1,257,891		 -
-
6,942,513		 -
-
(6,710,378)		 556,135
44,000
(536,050)		 565,411
695,776
953,976
4,613,568 6,942,513 (6,740,223) 64,085 4,879,943
(2,299,000) (55,000) (355,000) - (2,709,000)
9,260,302 8,736,022 (8,275,116) - 9,721,208

Purposes of expendable endowment

Expendable endowment funds comprise the value of land in Birmingham and Coleshill purchased by Father Hudson for the charitable objects of the Society. When such lands are disposed of, the net proceeds are also held in expendable endowment. The funds are held as capital funds but may be expended at the discretion of the trustees. The income from the fund is used to support and develop the activities of the Society.

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Father Hudson's Society

Notes to the financial statements

For the year ended 31 March 2022

Movements in funds (continued)

Purposes of restricted funds

Capital Funds

Capital funds comprise grants/donations towards the costs of fixed assets to be used by the Society for its charitable purposes. Such income may not be treated as a deduction from the capital cost, therefore the depreciation on the underlying asset is treated as restricted expenditure.

St Josephs Care Home

This fund represents grants and donations towards the building of St Joseph's Care Home for older people and people with dementia. At 31 March 2022 costs of £3,318,826 (2021: £3,318,826) have been incurred and capitalised.

Income Funds

These funds are in receipt of grants to assist in the development of these projects.

Purposes of designated funds

Capital Funds

The Property Fund represents the book value of land, buildings and fixtures (less any associated restricted funds) currently held or in construction for charity use. The funds are therefore unavailable for other use.

Revaluation Reserve

The unrealised revaluation gains on investment properties represent the difference in valuation and book cost and being unrealised are not available for use.

Fair Value Reserve The unrealised gains on investments fund represent the gains in value of investments over book cost, which being unrealised are not available for use.

Income Funds

Emrys John Ellis Fund - the income and some of the capital from this fund, which was held within the total investments of the Society, was used to fund new social projects in the diocese. The fund is now fully expended.

Post Adoption Support Fund - this fund was set aside to cover the Society's ongoing legal obligation to provide post adoption services where specified in the local authority placement agreement. As no expenditure has been incurred since 31 March 2018 the trustees consider the Fund is no longer required and the balance is transferred to General Funds.

Helena Woolley Fund - this fund is used to support service development and business sustainability initiatives.

The pension reserve represents the deficit as calculated under FRS102.

22 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

the following periods:
Less than one year
One to six years		 2022
2021
£
£
36,666
28,333
88,334
90,851
125,000
119,184
Property		 2022
2021
£
£
45,435
47,083
86,252
120,677
131,687
167,760
Equipment
125,000 119,184 131,687 167,760

23 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

65