2021-08-31-accounts - The Percy Hedley Foundation

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		Page
Reference and administrative	details
Report to the Trustees'		2-20
Independent Auditors' report		21 -24
Statement of financial activities		25
Balance sheet		26
Statement of cash flows		27
Notes to the financial statements		28- 51

Trustees:	Trustees:				Mr JJowett
					Ms A Curran
					Mr D Arthur
					Ms SJopling
					Dr M Gibson
					Mr D Kent
					Ms A Russell
					Ms A Woods
					Ms L Charles-Jones
					Ms S Fitzpatrick				(resigned	30/07/2021)
					Mr T Frazer
					Ms A Moore			(resigned		26/01/2021)
					Mr P Foreman
					Ms L Phillipson			(appointed		29/06/2021)
					Mr BSnaith			(appointed		08/06/2021)
					Mr EWeir			(appointed		26/01/2021)
Company		number:			01855026
Charity	number:				515943
Registered		office:			Hampeth Lodge, Station			Road, Newcastle			upon	Tyne, NE12 8YY
Company		secretary:			Tara Allen			(resigned		30/09/2021)
					Lynsey Dawson			(appointed		01/10/2021)
Senior	management		team:
Interim	Chief Executive			Officer	D'Arcy Myers
Headteacher —Percy			Hedley School		John Steward
Headteacher —Northern				Counties
School					Jo Allen
College	Principal				Joanne Rees-Proud
Director	of	Resources			Tara Allen
Director	of	Business	Development,
Quality	&	Performance			Alison Williams
Director	of	Residential	Services		Lisa Deane
Auditors:					Haines Watts	North	East Audit LLP,			17	Queens		Lane, Newcastle	upon
Tyne, NE1		1RN
Bankers:					Barclays Bank	Plc, 5	St	Ann's	Street, Newcastle			upon Tyne, NE1 3DX
Solicitors:					Womble Bond	Dickinson		(UK) LLP
					St Ann's Wharf,	112Quayside,			Newcastle		upon	Tyne, NE1 3DX

				Unrestricted	Unrestricted
				General	Designated	Restricted	Total	Total
				Fund	Fund	Funds	2021	2020
			Notes	f000	OOOO	f000	f000	f000
Income from:
Donations and legacies				179	175	36	390	595
Charitable activities				31,245		250	31,495	31,260
Fundraising activities				66			66	83
Investments				41			41	36
Total income				31,531	175	286	31,992	31,974
Expenditure on:
Raising funds
Investment management		costs		30			30	19
Costs of generating	fundraising			125			125	213
Charitable activities				30,355	411	196	30,962	30,190
Total expenditure				30,510	411	196	31,117	30,422
Net gain on investment				385			385	70
Net income before	transfers			1,406	(236 )	90	1,260	1,622
Transfers between funds			18	(587 )	590	(3)
Net income before	other
recognised gains	and losses			819	354	87	1,260	1,622
Actuarial gains/(losses) on		defined
benefit pension schemes			22	2,207			2,207	515
Net movement in funds				3,026	354	87	3,467	2,137
Reconciliation offunds:
Total funds brought	forward			8,894	1,374	274	10,542	8,405
Total funds carried	forward			11,920	1,728	361	14,009	10,542

					Notes		2021		2020
						f000	OOOO	f000	f000
Fixed assets
Tangible assets					12		16,693		16,653
Investments					13		3,360		2,455
							20,053		19,108
Current assets
Debtors					14	2,105		1,387
Cash at bank and	in	hand				8,204		8,278
						10,309		9,665
Creditors: amounts		falling
due within one year					15	( 4,228 )		(3,754 )
Net current assets							6,081		5,911
Total assets less	current liabilities						26,134		25,019
Creditors: amounts		falling due		after
more than one year					16		(2,739 )		( 2,884 )
Net assets excluding			pension
scheme liabilities							23,395		22,135
Defined benefit pension			scheme	liability	22		( 9,386 )		( 11,593 )
							14,009		10,542
Charity Funds
Restricted funds					18		361		274
Unrestricted funds					18	21,306		20,487
Pension reserve						( 9,386 )		( 11,593 )
Designated funds						1,728		1,374
Total unrestricted	funds						13,648		10,268
Total funds							14,009		10,542

			Notes
				2021	2020
				OOOO	f000
Cash flows from operating	activities:
Net cash provided by operating activities			20	1,632	5,688
Cash flows from investing	activities:
Dividends and interest				41	36
Purchase of tangible fixed assets Purchase of fixed asset investments Proceeds from sale of fixed asset investments				(1,097 ) (850 ) 269	(1,391 ) (1,096 ) 365
Net cash used in investing	activities			(1,637 )	(2,086 )
Cash flows from financing	activities:
Repayments of borrowings				( 101 )	(77 )
Loan interest				(27)	(54 )
Net cash provided by financing activities				( 128 )	( 131 )
Change in cash and cash	equivalents	in the year		( 133 )	3,471
Cash and cash equivalents	brought forward			8,452	4,981
Cash and cash equivalents	carried forward			8,319	8,452
Cash and cash equivalents	consist of:
Cash at bank and in hand
Current account
Deposit account				8,187	8,269
Funds held with investment managers				115	174
Petty cash				17	9
				8,319	8,452

3.	Fundraising	Fundraising	activities
					Unrestricted	Restricted	Total	Total
					funds	funds	2021	2020
					OOOO	f000	OOOO	f000
	Fundraising		events		66		66	83
4.	Investment		income
					Unrestricted	Restricted	Total	Total
					funds	funds	2021	2020
					f000	f000	OOOO	f000
	Dividends				41		41	36
					41		41	36
5.	Income from charitable			activities
					Unrestricted	Restricted	Total	Total
					funds	funds	2021	2020
					OOOO	OOOO	OOOO	f000
	Education	and Adult day		services	21,659	250	21,909	21,734
	Adult residential				7,355		7,355	5,354
	Children's	residential			2,231		2,231	4,172
					31,245	250	31,495	31,260
6.	Analysis of		expenditure	by activities
					Activities
					undertaken	Support	Total	Total
					directly	costs	2021	2020
					OOOO	f000	f000	f000
	Education	and Adult day		services	18,744	1,969	20,713	20,252
	Adult residential				6,476	573	7,049	5,461
	Children's	residential			2,796	404	3,200	4,477
					28,016	2,946	30,962	30,190

7.	Support c	os	ts
							Education		Adult	Children'	s	Total	Total
						Adult day services			Residential	Residential		2021	2020
								ROOO	ROOO	ROOO		ROOO	ROOO
	Staff costs							1,609	468	330		2,407	1,901
	Professional	costs						47	14	10		71
	Other direct	costs						152	44	31		227	83
	Facilities cost							17	5		3	25	22
	ITcosts							78	23	16		117	113
	Maintenance		costs										8
	Depreciation							66	19	14		99	98
	Interest
								1,969	573	404		2,946	2,225
8.	Governance		costs
	Included within support			costs	above	are governance		costs	as follows:
												2021	2020
												ROOO	ROOD
	Audit fees											17	14
	Legal fees											37	23
												54	37
9.	Net income	before transfers
	This is stated		after charging:
												2021	2020
												ROOO	ROOO
	Depreciation	of tangible fixed			assets:
	- owned by	the charity										1,204	1,059
	Interest payable											27	54
10.	Auditors remuneration
												2021	2020
												ROOO	ROOO
	Fees payable		to the company's		auditor and its		associates
	for the audit	ofthe company's			annual	accounts
	Audit of the	charitable		company								17	12
	Audit of the	pension scheme										3	3
	Other											1	1

Analysis of staff costs, trustee remuneration	and the cost of key management
personnel
	2021	2020
	f000	f000
Wages and salaries	21,255	21,363
Social security costs	1,535	1,454
Other pension costs	1,980	2,232
	24,770	25,049

					2021	2020
					No.	No.
Operational		staff			940	1,023
Admin	and	support			117	112
Management					4	3
					1,061	1,138
Average headcount			expressed as a full time equivalent:
					2021	2020
					No.	No.
Full time equivalent			—all employees		1,000	989
The number		of higher paid employees		were:
					2021	2020
					No.	No.
In the	band	F60,001	- 270,000		1	2
In the	band	F70,001	- F80,000
In the	band	F80,001	- 290,000			1
In the	band	F90,001	- R100,000			1
In the	band	F100,001 - 2110,000
In the	band	F110,001 - F120,000
In the	band	R120,001 - F130,000
In the	band	F210,001 - F220,000

Tangible fixed assets
				Long term
		Freehold		leasehold	Motor	Fixtures &
		property		property	vehicles	fittings	Equipment		Total
			FOOO	f000	f000	OOOO	f000		OOOO
Cost
At 1 September 2020			9,492	12,706	306	1,173	1,981		25,658
Additions			519		99	223		404	1,245
Disposals					(7)		(	347 )	( 354 )
At 31 August 2021			10,011	12,706	398	1,396	2,038		26,549
Depreciation
At 1 September 2020			4,039	2,129	272	876	1,689		9,006
Charge for year			640	154	35	186		190	1,204
On disposal					(6)		(347 )		(354 )
At 31 August 2021			4,679	2,283	30I	1,062	1,532		9,856
Net book value
At 31 August 2021			5,332	10,423	97	334		506	16,693
At 31 August 2020			5,453	10,577	34	297		292	16,653
Fixed assets investments
							2021		2020
Listed investments							3,245		2,281
Cash held with investment		managers					115		174
							3,360		2,455
									F
Market value at 1 September 2020									2,281
Additions to investments	at	cost							849
Disposals at carrying value									(270 )
Revaluation of investments		to market	value						385
Market value at 31 August		2021							3,245
Historical cost									2,875

14.	Debtors
					2021	2020
					OOOO	OOOO
	Trade debtors				4,383	2,908
	Bad debt provision				( 2,774 )	(2,087 )
	Other debtors				6	15
	Prepayments and	accrued income			492	551
					2,107	1,387
15.	Creditors: amounts		falling due within one year
					2021	2020
					f000	f000
	Bank loans				220	203
	Trade creditors				793	670
	Other taxation and	social security			567	352
	LGPS pension scheme deficit				44	44
	Other creditors				41	224
	Accruals and deferred		income		2,563	2,261
					4,228	3,754
	Deferred income
	Deferred income comprises fee income relating to future periods:
						OOOO
	Balance at 1 September 2020					585
	Amounts released	to	income earned from charitable	activities		(585 )
	Amounts deferred	in the year				764
	Balance at 31 August		2021			764

Creditors	: amounts fallin	g due after more th	an one year
				2021	2020
				OOOO	OOOO
Bank loans				1,983	2,102
LGPS pension scheme deficit				755	782
				2,738	2,884
Creditors	include amounts	not wholly repayable	within 5 years as follows:
				2021	2020
				OOOO	f000
LGPS pension scheme deficit				755	782

Bank loa	ns d	ue a	fter	one year are repayable as follows:
					2021	2020
					f000	f000
Between	one	and	two	years	220	203
Between	two	and	five	years	1,983	2,102

Financial	instruments
				2021	2020
				f000	f000
Measured	at fair value through net income			3,360	2,455
Financial	assets measured	at amortised	cost	9,820	9,114
Financial	liabilities measures	at amortised	cost	(4,805 )	( 5,122 )

		Balance					Balance
	At 1	September			Transfers	Gains/	At 31 August
		2020	Income	Expenditure	in/out	(losses)	2021
		2000	f000	f000	OOOO	f000	f000
Unrestricted funds
General funds		20,487	31,531	( 30,510 )	( 587 )	385	21,306
Pension reserve		( 11,593 )				2,207	( 9,386 )
		8,894	31,531	(30,510 )	( 587 )	2,592	11,920
Designated funds
Education		78	125	(20 )			183
Adult Day Services Adult Residential		18 9	3 19	(9) (1)	(10)		12 17
Children's Residential		8					9
Central Services		11					38
Maintenance fund		500		(13)			487
Strategic Development	fund	500		(118)			382
Recovery Plan PHS fund		250		(250 )
Improvement projects					300		300
Estate development					300		300
		1,374	175	(411 )	590		1,728
Total unrestricted	funds	10,268	31,706	(30,921 )	3	2592	13,648
Restricted funds
Education		266	286	( 196 )	(3)		353
Adult Day Services		8					8
		274	286	( 196 )	(3)		361
Total offunds		10,542	31,992	( 31,117 )		2,592	14,009

		Balance					Balance
	At 1	September			Transfers	Gains/	At 31 August
		2019	Income	Expenditure	in/out	(losses)	2020
		OOOO	f000	OOOO	f000	OOOO	f000
Unrestricted funds
General funds		19,621	31,667	( 30,266 )	( 605 )	70	20,487
Pension reserve		( 12,108 )				515	(11,593 )
		7,513	31,667	( 30,266 )	( 605 )	585	8,894
Designated funds
Education		61	31	(10 )	(4)		78
Adult Day Services		16	17	(15)			18
Adult Residential		9	2	(2)			9
Children's Residential		4	10	(6)			8
Central Services			11				11
Maintenance fund		300			200		500
Strategic Development	fund	300			200		500
Recovery Plan PHS fund					250		250
		690		(33 )	646		1,374
Total unrestricted	funds	8,203	31,738	( 30,299 )	41	585	10,268
Restricted funds
Education		191	207	( 123 )	(9)		266
Adult Day Services		11	29		(32 )		8
		202	236	( 123 )	(41 )		274
Total of funds		8,405	31,974	( 30,422 )		585	10,542

For the	ear ended 31	Au ust2021
			Unrestricted	Restricted	Total
			funds	funds	funds
			ROOD	ROOD	ROOD
Tangible	fixed assets		16,693		16,693
Fixed asset investments			3,360		3,360
Current assets			9,948	361	10,309
Creditors	due within one year		(4,228 )		(4,228 )
Creditors	due in more than one year		(2,739 )		(2,739 )
Provisions for liabilities		and charges	(9,386 )		(9,386 )
			13,648	361	14,009

			Unrestricted	Restricted	Total
			funds	funds	funds
			ROOD	ROOD	ROOD
Tangible	fixed assets		16,653		16,653
Fixed asset investments			2,455		2,455
Current assets			9,391	274	9,665
Creditors	due within one year		(3,754 )		(3,754 )
Creditors	due in more than one year		(2,884 )		(2,884 )
Provisions	for liabilities	and charges	( 11,593 )		(11,593 )
			10,268	274	10,542

						2021	2020
						f000	f000
Net income/(deficit)	for the year	(as per Statement	of Financial	Activities)		3,467	2,137
Adjustment for:
Depreciation charges						1,058	1,059
Interest payable						27	54
Interest from investments						(41 )	(36 )
Pension provision	adjustment				(	2,207 )	(515)
Unrealised gain						(385 )	(75)
(Increase)/decrease	in debtors					(721 )	2,196
Increase/(decrease)	in creditors					434	868
Net cash provided	by operating	activities				1,632	5,688

Analy	sis of changes in net debt
		At 1 Sep	Cash	At 31 Aug
		2020	flows	2021
		OOOO	OOOO	f000
Long	term borrowings	( 2,102 )	118	( 1,984 )
Short	term borrowings	( 203 )	( 17 )	( 220 )
Total	liabilities	(2,305 )	101	( 2,204 )
Cash	and cash equivalents	8,452	( 133 )	8,319
		6,147	( 32 )	6,115

			2021	2020
			R'000	R'000
Current service cost			(300 )	(345 )
Past service cost
Net interest			(204 )	(235 )
Total cost recognised			(504 )	(580 )
The amounts recognised		in the balance sheet are as follows:
			2021	2020
			R'000	R'000
Fair value of scheme	liabilities		(38,116)	(34,849 )
Fair value of scheme	assets		28,730	23,256
Deficit in the scheme			(9,386 )	(11,593 )

Change in the present value of the defined benefit	Change in the present value of the defined benefit	obligation
			2021	2020
			2'000	R'000
Opening defined benefit obligation			34,849	33,569
Current service cost			300	345
Past service cost
Interest cost			623	669
Contributions to scheme participants			82	117
Actuarial (gain)/loss arising on the scheme	liabilities		3,070	870
Benefits paid			( 808 )	(721 )
Liabilities in scheme at end ofthe year			38,116	34,849
Change in the fair value ofscheme assets
			2021	2020
			R'000	R'000
Opening fair value of scheme assets			23,256	21,461
Interest income			419	434
Actual return assets			4,989	859
Contributions by employer			792	1,106
Contributions to scheme participants			82	117
Benefits paid			( 808 )	(721 )
Total market value of assets			28,730	23,256
Major categories of scheme assets as a	percentage	oftotal assets
			2021	2020
			0/	0/
Equities			99.1	96.9
Other (incl cash and net current assets)			0.9	3.1
None ofthe scheme's assets are invested	in property	or other assets used by the employer.
The return on plan assets was as follows:
			2021	2020
			R'000	R'000
Interest income			419	434
Actual return assets			4,989	859
Total return on plan assets			5,408	1,293

Principal	actuarial	assumptions at the balance sheet	date
			As at	As at
			31 August	31 August
			2021	2020
			0/o	0/
Discount	rate		1.75	1.80
Salary increases			0.00	0.00
Inflation	assumption	(RPI)	4.00	3.35
Inflation	assumption	(CPI)	3.00	2.35

The mor	tali	ty	assumptio	ns us	ed for longevity (in years) on r	etirement at age 65are:
							As at	As at
						31	August	31 August
							2021	2020
							years	years
Retiring	at	the	balance	sheet	date
—males							21.8	21.5
—females							24.2	23.5
Retiring	in	20	years
—males							23.1	22.8
—females							25.7	24.9

				2020
				f000
Amounts		payable:
Within	1	year	41	37
Between		1 and 5 years	138	92
After	more than 5years		390	409
Total			569	538

					Unrestricted	Unrestricted
					General	Designated	Restricted	Total	Total
					Fund	Fund	Funds	2020	2019
				Notes	ROOD	ROOD	ROOD	ROOD	ROOD
Income from:
Donations and legacies					455	71	69	595	255
Charitable activities					31,093		167	31,260	29,507
Fundraising activities					83			83	178
Investments					36			36	65
Total income					31,667		236	31,974	30,005
Expenditure on:
Raising funds
Investment management			costs		19			19	11
Costs of generating		fundraising			213			213	184
Charitable activities					30,034	33	123	30,190	28,576
Total expenditure					30,266	33	123	30,422	28,771
Net gain on investment					70			70	53
Net income before		transfers			l,471	38	113	1,622	1,287
Transfers between	funds			18	(605 )	646	(41 )
Net income before		other
recognised gains		and losses			866	684	72	1,622	1,287
Actuarial gains/(losses) on			defined
benefit pension schemes				22	515			515	(3,915 )
Net movement in funds					1,381	684	72	2,137	(2,628 )
Reconciliation offunds:
Total funds brought		forward			7,513	690	202	8,405	11,033
Total funds carried		forward			8,894	1,374	274	10,542	8,405