Annua Rep rt & Financial Statements 2021- 2022 Live Free
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4 - Foreword
6 - A Year at a Glance
8 - Our Impact
10 - A Positive Impact in Challenging Times
14 - Delivering Our Purpose
22 - Investing in our People & Systems
28 - Creating a New Strategy
32 - Introducing Plan B
40 - The Year Ahead
42 - Director’s Report
45 - Financial Performance & Results 2021-22
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Contents
We are delighted to share our Annual Highlight Report and Financial Statements for the financial year 2021/22.
Our focus over the last year has been rooted in helping the people we support to live life to the full whilst learning to live with COVID and the continuing challenges it presents. There isn’t a day that passes where we don’t feel immense pride in the work of our team, whatever their role, in helping the people we support. However, we are especially proud to present our report for 21/22 and when you read more about over work our the last year in the coming pages, we have no doubt you will feel the same.
Regardless of the issues presented by COVID and its continuing effects, everyone at Brandon including the partners with whom we work, have risen to meet the challenges, going above and beyond. Whilst some restrictions remained during this year, our people have found different ways to ensure those we support have been able to live fulfilled lives and as independently as possible. In that respect our efforts have been very much in shifting the emphasis from away from disability and instead focusing on ability, as each and every one of us has something we are good at.
While we continue to support people with a range of differing needs, helping them to live the lives they choose in their own homes remains at the heart of our approach. We want all people with different ability to be truly included and involved in all aspects of life and throughout this report there are shining examples of where we have and continue to do so.
This is against the backdrop of a demanding external environment. The pandemic, Brexit and the rising cost of living have all presented unique challenges in the social care sector, but we are confident that the transformational journey we have been going through over the last few years and our robust financial performance gives us strong foundations upon which to build.
These foundations have enabled us to start the development of a new strategy. We embarked on a comprehensive consultation to understand what the people we support and our stakeholders, want for the future.
This has culminated with the launch of our new long-term strategy ‘Plan B’ in 2022, which is outlined later in the report and includes our new vision, purpose and values.
Chair
Whilst we know we provide excellent support and there have been many positive changes to the way people with different abilities are supported, we think we need to do some things differently to make sure everyone has the choices and opportunities they want. We talked to lots of people, including many of you, about what they would like to happen in Plan B and have included the things we learned from everyone in this plan.
With our new strategy in place, we are very excited about the year ahead, in which our fantastic team will continue to work together and strive to achieve our new vision: a world where people of different abilities truly belong.
Sue Porto, CEO Jamie Pike, Chair
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23 New
services
transferred in
Oxfordshire
1,624
Total
people
supported
12 Trained
mental health
first aid
champions 3 New
digital
people
systems
199 People
supported
in our Social
Enterprises
A Year
at a Glance
2 Internal lunch
& learn sessions
7 New
Trustees
welcomed to
the Board of
Trustees
59 Volunteers
20 Apprenticeship
qualifications
completed by our employees
The Foreword
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People we have supported in Funding for our core services 2021-22 is provided to ensure that the
Funding for our core services is provided to ensure that the people we support can access our support in line with the identified needs and regardless of their financial circumstances.
Brandon’s core business is the provision of support services across the south of England and the Midlands, to individuals with a learning disability, autism or both. 82% of people we support are over 25 years old, with 18% being children and young people (age 25 and under).
The additional activities and opportunities we provide are funded either directly by individuals or jointly with commissioners.
This support is provided in a number of ways, including supported living, accommodation with support and nursing, flexible support, short breaks and a wide range of sessional, social and employment opportunities. Our ethos remains to support
In some cases, this is further supported by income from Brandon’s enterprises and fundraising activities.
The breakdown of people we have supported by service during 2021/22 is outlined in the table below.
Our ethos remains to support people to live as independently as possible and deliver support that enables people to live the lives they choose in their own homes.
| Support Type | People* |
|---|---|
| Accommodation with Support | 82 |
| Accommodation w/ Support & Nursing | 74 |
| Children & Families | 219 |
| Day Services | 119 |
| Enterprises | 199 |
| Flexible Support | 180 |
| Supported Living | 717 |
| Short Breaks (respite) | 193 |
As part of this we are in the process of refreshing our approach to Active Support, which is about ensuring that we’re supporting people to have increased choice and independence, and to overcome barriers in their lives.
During 2021/22 we supported 1,624 individuals with a range of differing needs, including complex health issues, autism, epilepsy and mental health.
- Please note: Some individuals are supported by Brandon in more than one type of support.
Case study:
Making a Lasting Impact
Supporting adults with learning disabilities or autism to safely be themselves is a key aim at Brandon and is something that Mark, one of the people we support, enjoyed last year.
Mark is a sociable person and he’s always keen to go out and meet people, but he experienced a lot of change due to the pandemic and moving into a new supported living apartment.
Lorna revealed that Mark has spoken of little else since the race, and was so fulfilled to have been made to feel so welcome.
So, as soon as it was safely possible, staff arranged for Mark to attend banger racing, one of Mark’s favourite sports.
Lorna added: “It’s about what the people we support want to achieve; I enable them to take measured risks. The world would be boring if we didn’t take risks, and it’s how people learn.”
Team leader, Lorna Wood, said: “Mark was thrilled to be going, it really lifted his spirits. He made so much noise and excitement with each race as it played out in front of his eyes – he was the happiest and most excited we’d seen him.”
“If they make mistakes, we will be there for them. No question. Especially the lads I support like Mark; they are young people and they want to be just that. Young men exploring life and the world they live in. But we are there to help catch them.”
Mark made such an impression on the drivers and winners at the race, that they invited him onto the podium when they accepted their trophies.
A positive
impact in
In February 2022, the final COVID restrictions were removed in England.
challenging times
This was great news for those wanting to restart their social activities.
Recruiting the Best
While the Government removed
all remaining restrictions for the general population, our staff teams were still required to wear the appropriate PPE whilst on duty supporting people.
Despite restrictions easing, the global pandemic, combined with Brexit and other issues such as the realities of funding and competition from other sectors, has created ongoing recruitment and retention challenges in the social care sector.
Our recruitment team has been working incredibly hard to advertise new roles and promote working for Brandon through marketing activity as we strive to recruit the best for the people we support and we will continue these activities as part of our attraction and retention strategies.
Supporting people as we emerge from the pandemic and helping them to reengage with society has been truly rewarding, if at times, challenging.
This meant that life didn’t quite return to normal for teams and the individuals they support.
For some people with a learning disability or autism, the return to a more flexible lifestyle has been difficult to cope with.
Vacancies in England have risen, while the number of filled posts has fallen, creating unmet need across the sector.
Combined with the backdrop of a cost-of-living crisis, recruitment and retention will continue to provide a challenge over the next year and we reflect on what this means for Brandon later in the report.
We continue to robustly adhere to the restrictions in a social care setting, monitoring external events and seeking the latest advice to ensure we keep the people we support and our staff safe and well.
Our teams have worked tirelessly to help people overcome their fears, dreaming up innovative ways to help people reconnect with society.
The situation at Brandon is no different, but we have all been playing our part in helping recruit new colleagues for our staff teams.
Case Study: Moving to a new home during a pandemic
Brenda is retired and has cared for her son Jimmy, who has a learning disability, for his whole life.
For more than 50 happy years, Jimmy lived at home with her and her husband. But after the death of Jimmy’s beloved father a few years ago, Brenda was left to care for Jimmy by herself.
She was struggling to access the right support for her son and when the COVID pandemic put a stop to their weekly activities, she became aware of how isolated they were. By chance, Brenda connected with the NHS Disability Trust, who introduced her to Brandon.
She was struck by the flexible approach and genuine desire to find the right care for Jimmy, and together they embarked on a search for supported accommodation that met his individual needs.
“I didn’t want to let him go, but I knew I needed to for Jim and for me,” says Brenda.
“I wanted both of us to have time to get used to the change, so that Jimmy could settle in and feel at home rather than like he was being wrenched away.”
Brenda recalls how the teams at Brandon and the NHS Disability Trust, moved heaven and earth to facilitate Jimmy’s move despite the challenges of the pandemic.
“Ordinarily he would have visited his new home for dinner, had an overnight stay and then moved in.
COVID meant that he had to move in without any of that, but they found alternative solutions and helped him to settle in.”
In fact, Brenda was pleasantly surprised by how well Jimmy settled in.
“It’s exactly what I’d hoped for. If he was given the option of a day out with his support workers or a visit from his old mum, I wanted him to choose the day out every time”, she says.
“Where Jimmy lives now is a home in the truest sense and it’s the staff who make it like that.
They have managed to get him to do things I never could.
He helps with cooking and spends time with the other people who live there, dancing and listening to music.
They enable him to be himself, which gives me real peace of mind.”
Ordinarily, he would have visited his new home for dinner, had an overnight stay and then moved in.
COVID meant that he had to move in without any of that, but they found alternative solutions and helped him to settle in.
Where Jimmy lives now is a home in the truest sense and it’s the staff who make it like that.
Delivering Our
Purpose
More information about the strategy can be found later in this report.
It’s vital that we understand how well we are achieving our purpose, which is why we conduct an annual satisfaction survey, which we call ‘The Big Conversation’.
People were asked to respond in imaginative ways such as pictures, videos and drawings.
As we cautiously emerged from the COVID-19 pandemic this year, our focus remained firmly on enabling the people we support to live as independently as possible.
A key outcome of the survey feedback was its role in shaping and changing the direction of our new strategy, ‘Plan B’.
The Big Conversation also resulted in online events being hosted by Brandon during lockdown in 2021 for the people we support.
Its aim was to get feedback from people we support, their families and friends, as well as our colleagues, trustees and commissioners.
This included online live cookalongs, parties, DJ sets, and tea and chats, to help prevent people feeling quite so isolated and lonely.
This means delivering the support for people to live the lives they choose in their own homes where possible, creating a positive impact on the individuals and their families, friends, and local communities.
The strategy became much more focused on what people can do, rather than what they can’t do, focusing on ability not disability.
The survey was created with help from our peer focus group called ‘The Adventurers’, and online dropin chats to discuss support and gather feedback were established.
One of the things that we have had a key focus on this year is ‘Active Support’.
Active Support is a method of enabling people with learning disabilities to engage more in their daily lives, supporting them to have increased choice and independence, and to overcome barriers so they take a more active part in their own lives.
There are many benefits to Active Support for the people we support such as:
Empowering people to make their own choices
Helping them to build on the skills they already have
Giving them more sense of control over their life
Providing greater opportunities to meet new people and build positive relationships
All our operational colleagues will be taking part in training in 2022 to refresh and support them on the principles of Active Support and it will form part of our new model of support for the year ahead, which is called ‘My Life’.
Helping people we support find employment
Our first shop assistant started a paid position in March 2022 at our Whiteladies Road store, with two offers made to other candidates.
We are committed to supporting adults with a learning disability, autism, or both, to work.
The plan is to have six shop assistants working in accessible employment across our three Bristol charity shops in Cotham Hill, Gloucester Road and Whiteladies Road by the end of March 2023.
We were therefore delighted, to be able to advertise our first paid employment opportunities at our charity shop in Whiteladies Road in Bristol in 2021.
Sam, who is autistic, was the first shop assistant to be employed and he said he really enjoys the role.
Vacancies for shop assistants were advertised as accessible employment opportunities for people with a learning disability and/or autism and a video was created, along with an easyread application, as part of the recruitment campaign.
“Having a job is great because it helps me pay my bills and put some money away in savings – money that I will put towards buying more video games!”
A ruthless person-centred service – Our CQC Ratings
In 2021-22, 19 of our 21 registered support locations were rated Good or Outstanding by the Care Quality Commission
Our aim is for all our localities to be rated Good or Outstanding, and we are taking measures to continually improve our provision. As Covid restrictions began to lift our internal quality team were able to safely resume face-to-face visits, completing 31 over the year and 133 desktop audits. A key focus for the Quality Team in the year was to audit and touch base with people to monitor associated issues that resulted from COVID – namely
As Covid restrictions began to lift our internal quality team were able to safely resume face-to-face visits, completing 31 over the year and 133 desktop audits. A key focus for the Quality Team in the year was to audit and touch base with people to monitor associated issues that resulted from COVID – namely cultures, wellbeing and controls.
The vast majority of our findings found that staff demonstrated an extensive knowledge in relation to infection control, alongside evidencing inspiring initiatives that enabled people to still be connected whilst in the midst of a national lockdown.
As the year went on there was a drive to return to regular compliance monitoring by the CQC, local authorities and ourselves.
Fantastic feedback for The Rambles inspection
In July 2021, the CQC inspected The Rambles, one of our residential care homes in Bristol.
The results were brilliant: a ‘Good’ rating was achieved for all the key lines of enquiry and the staff team received some fantastic feedback.
The inspection report noted that residents ‘were supported to have maximum choice and control of their lives in the least restrictive way possible’ thanks to a model of care designed to ‘maximise people’s choice and independence’.
“I think that’s down to how well we know the people we support,” said team leader Michelle.
“We promote independence with the way we do things, for example how we communicate.”
“Three of the people living here are non-verbal so we use flash cards, body language and Makaton (a language made up of signs and symbols).”
Inspectors went on to say that ‘the provider’s values were personcentred and focused on what support each individual wanted to achieve their dreams’.
They praised staff for ‘looking at the whole person, seeking solutions, being adventurous, connecting and being creative’.
“The success of the inspection and the good report we received is all down to the staff,” said locality manager James.
“We’ve got a really dedicated team who work well both together and individually and that’s the makeor-break thing really. I can’t sing their praises enough.”
Investing in Our People
In a year that saw us slowly emerge from the COVID-19 lockdowns, we continued to adapt our ways of working to ensure our people could be flexible to respond to the needs of the people we support.
we were very pleased when the Board of Trustees approved a significantly improved pay package for all operational staff and bank workers, who work directly with the people we support with effect from 1 April 2022.
While the virus presented new challenges with the Omicron variant, our robust policies for managing COVID-related illness, self-isolation, and flexible remote working wherever possible, ensured that staff were fully supported, while able to meet the demands of our services.
For most of our operational staff, the pay uplift meant that their pay increased by up to 10.1% in 2022, which is the largest pay increase Brandon has given for many years. It is in recognition of the extraordinary circumstances they have faced in the last 12 months, and the hard work that has gone into keeping the people we support safe, well and thriving.
We recognise the incredible strain and impact that the pandemic has had on all our colleagues across the organisation. Following recommendation from the Executive Leadership Team,
Strengthening our systems and infrastructure
Over the last year we have continued to modernise our systems and processes so that we can operate more efficiently and effectively.
We also introduced an integrated HR and Payroll system, which is set to be fully embedded in the organisation in 2022.
A new finance system has been procured and will be implemented over the next year to significantly improve our processes, while a new Health and Safety system called ‘B-Safe’ has been installed and will be rolled out across our operational teams later this year.
We introduced a new digital rostering system called Planday, which enables our operational teams to use an app rather than paper timesheets, making it much easier for support workers and managers to plan and swap working shifts.
Nurturing talent
through learning and development
Throughout the COVID-19 pandemic, we have continued to develop our staff and leadership teams after converting our training to virtual classroom sessions.
Staff were able to access essential training and to sign up for qualifications as they embraced this new way of remote training.
Our investment in this area has continued and in 2021 we launched a new Learning Management System called ‘Learning Hive’.
This system allows everyone in the organisation to manage their own learning in a more accessible way. It also helps managers to keep on top of their team’s training and records.
As part of our learning and development programme, we continue to offer apprenticeship qualifications in a variety of subjects across Brandon.
They are fully funded, and we have seen an increase in uptake since Covid restrictions were eased.
We are enormously proud that many of our employees achieve the health and social care qualifications with a merit or distinction!
We also launched a ‘Stepping Up’ course for aspiring managers as part of our Leadership Development Programme.
The programme supports all line managers to develop their skills and put them into a Brandon and sector-wide context.
We continue to promote from within and aim to nurture leadership skills for those who are new to leadership, as well as more experienced managers who want to keep updated and learn about new approaches.
Case study:
Developing a Career at Brandon
“But my manager at Brandon encouraged me to do the Level 3 Diploma and offered me as much help as she could all the way through. She was an amazing support and was always happy to talk to me about the work I was doing.”
Jordan is 24 years old and works at the Sesame Centre in Rugby, Warwickshire. He recently achieved a Distinction in his Lead Adult Care Worker Level 3 Diploma at Brandon and says that the support of his manager was essential.
“I was honestly just hoping to pass my diploma, so getting anything above that was an unexpected bonus. Doing it while in a job that I love and with the support of my manager, really helped me to achieve the Distinction.“
“When I decided I wanted to work with people with learning disabilities and complex needs, I actually applied for a few different day centres,” said Jordan. “But Brandon as a whole, just fitted me better than the others.”
“Now that I’ve got my Level 3, I could apply for a team leader or senior care worker role. So obviously having the qualification is good for me because it means better pay and opportunities in the future.”
“My manager kept in touch with me throughout the application process and I felt like part of the team before I’d even started.”
“When I joined Brandon, I’d already completed my Level 2 Diploma but was adamant I’d never do Level 3. I didn’t get much support with Level 2 from my employer at the time, so it was quite a negative experience.”
“But it’s also about what it allows you to give back. You can apply all the knowledge you’ve learnt to your role and ultimately be a better care worker for the people you support.”
Wellbeing Support
The wellbeing of our staff and teams is very important and has been pushed to the extreme with the strains of working through a pandemic.
To support our employees, we set up a wellbeing support team consisting of trained Mental Health First Aiders (MHFAs), coaches and bereavement specialists.
Anyone in Brandon can contact the wellbeing support team confidentially and be offered support and guidance.
Just talking to someone has proved to be a comfort to many people and where we aren’t able to help, we signpost to other services to make sure the person can access what they need.
We increased the number of MHFAs in 2021 from 8 to 21 and were delighted at the interest and the calibre of the people who applied and how important wellbeing support is to our staff.
Case study:
The importance of Wellbeing Support
Josh Bickley is a Team Leader at Badgers House Care Home in Bristol and says his team has really benefited from Brandon’s wellbeing initiatives.
“We have also introduced a specific full team meeting that focuses solely on wellbeing and mental health. We don’t talk about anything to do with the job, it’s just a chance for staff to offload any annoyances or worries and for everyone else to listen and offer support and advice.”
“At Badgers House Care Home, we really pride ourselves on how close our team is and how open and honest we are with each other,” said Josh.
“We have suffered a lot of distress and loss over the last 18 months with a combination of staff shortages, losing good staff members, two people we support passing away and of course the COVID-19 pandemic.
“All in all, staff morale has improved drastically over the last six months due to bringing all these wellbeing-based initiatives in and staff have commented on how much it helps when team leaders are supportive and take the time to listen.
“Despite this, we have all rallied together to really support each other through these difficult times by having regular 1:1s where team leaders make a real effort to check in with staff mental wellbeing and morale, before offering support and sometimes changing work environments or patterns around to suit staff needs.”
“As team leader, I am very proud of the team that’s been created here at Badgers and it has improved my own mental health seeing how well the staff team are now doing.”
Creating a New Strategy
Reflecting on the past and looking to the future
A key activity for Brandon in the past year has been the development of our new five-year strategy.
Developing a new strategy was an opportunity to take a fresh look at ourselves and the service we provide.
This took place over the course of nine months and involved staff from all parts of the organisation, as well as people we support and various stakeholders.
In order to create a meaningful vision for the future and an ambitious action plan of how to get there, we needed to reflect on where we’ve made progress – and where we could do better.
It has taken a lot of work from a lot of people – but we are very proud of the end result and excited to bring it to life in the coming years.
To build an accurate picture of this, we went deep inside our organisation and outside into the wider communities we serve. At times, this process was challenging and uncomfortable.
But by persevering and listening, we were able to create a bold strategy that will have a real impact.
It’s a strategy focused on what people can do, rather than what they can’t do, with the ultimate aim of creating a future where people of different ability truly belong.
The
Big Conversation
Some of the findings were truly shocking. For example, we discovered that the employment rate for people with learning disabilities who use social services is just 6.4%. Our research also found that 50% of people living in poverty in the UK are disabled or carers.
Every part of our new strategy was informed and inspired by ‘The Big Conversation’.
This survey was made up of interviews, workshops, research and many discussions over many months. We started by speaking to people we support and their families, who all shared their hopes, fears and priorities with us.
Although they made for difficult reading, these revelations only served as motivation to push ourselves and the strategy further.
Early on in the process, a focus group of people we support was created. They became ‘The Adventurers’ and made crucial contributions to all elements of the strategy.
Our new purpose statement and vision for the future evolved over several months as they were shared with and discussed by colleagues, trustees, people we support and their families.
We also undertook research with commissioners to understand what was important to them and they gave us valuable feedback around what Brandon could do to improve services for people with a learning disability.
Eventually, The Adventurers crafted a version that they were really happy with and felt reflected the wants and needs of people with different ability.
We combined this with an
extensive piece of desk research and interviews with sector partners to create a PESTLE report.
This formed the foundation for the rest of the strategy, which details how we will fulfil our purpose and vision over the next five years.
This looked at six key factors: political, economic, social, technological, legal and environmental – that impact the lives of people we support.
An excellent piece of co-production
Our new strategy would not be what it is without the involvement of The Adventurers.
“We are being supported by Brandon and it’s good to get our view as well,” said Kate.
“Getting different feedback has been great and hearing what they’ve got to say, so we’re getting to actually hear what’s going on and when stuff is happening,” added Nathan.
Working with them was an invaluable experience for everyone and the lessons learned have already led to positive changes to our culture and the way we work.
“Co-producing the strategy with The Adventurers has really reinforced that we can’t second guess what people want in their lives,” said Julie, Training Delivery and Qualifications Manager.
“That’s how it should be. The way I see it is it’s been much better doing it like that because then we know what’s happening and we can try and adjust it if it’s not suitable for any of us.”
Damian, Area Manager for Cornwall, agrees. “It’s actually quite inspiring what I’ve learnt from the people with lived experience about their priorities,” he explained.
Co-producing the strategy also provided an opportunity for them to advocate for others, which is something they all intend to keep doing through various other projects that they’re working on.
“I do feel like I’m helping in a way, because it’s not about us lot in the group – it’s about everyone out there as well,” said Nathan.
“It’s not just about a strategy – it’s about real human lives.”
For The Adventurers and all the people we support that took part in The Big Conversation, it was a chance to have a say about their lives and futures.
“We want to be treated as equals, like we have capacity. We don’t want to be treated any different so we want to make sure we’re getting the right support.”
We’re getting to actually hear what’s going on and when stuff is happening
Introducing
Plan A has got us so far, but a lot more needs to be done. That’s why we’ve come up with Plan B – Brandon’s new fiveyear strategy.
Whatever progress we think we’ve made over the past few years, it’s all too clear that people with a learning disability still face significant challenges and inequalities in everyday life – from housing and employment to their health and social lives.
Our purpose is why we do what we do.
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We work alongside
people of different
ability so they are
able to create
opportunity and
feel empowered
to live the life
they want.
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It is the reason we exist and it drives our every action.
It connects everyone who works with us and sits at the heart of this strategy.
Defining our purpose inspires our vision for the future.
It was written by people we support and work alongside and sets out our absolute commitment to them.
Our strategic pillars are the big activities and actions we will undertake to make this vision a reality.
Case Study: Connecting with the Local Community
“We’re always looking for opportunities for the people we support to meet others in the local community, try new things and above all, have fun,” explains Rory, a Team Leader in Cornwall.
“We noticed that George had progressed from his childhood scooter to a skateboard.”
Once it was clear that George’s new-found hobby was a big hit, the team decided to see if they could source him a lighter, betterquality board and some other bits of essential kit. Richard, George’s support worker and Rory put out an appeal on social media – and the Newquay skate scene responded in an amazing way.
We’re always looking for opportunities for the people we support to meet others in the local community, try new things and, above all, have fun!
George now has a top-end skating set-up donated by skaters all over the county.
Not only that, but every time George heads out to the skate park, be it just to watch or try out his new board, he gets a warm welcome. “Everyone is so kind and welcoming,” says Rory.
“They cheer him on and take the time to stop and give an elbow or distanced high-five. Teenagers and skaters can sometimes get a bad rap, but they’ve been awesome to George which builds his confidence and communication skills.”
Vision for Our vision is the future that the people we support and work alongside told us they want, and the what it looks like.
A future where the focus is on what people can do and the values that everyone brings.
A future where we recognise that we are all connected and have equal opportunity to make our own choices and to thrive.
Future A world where people of different abilities truly belong.
Our New Values
It’s important that our values make sense to everyone who works for Brandon and the people whose lives we touch.
A ‘culture group’ made up by people we support and employees from across the organisation took time to clearly describe their individual meaning and develop a code of core behaviours that collectively would demonstrate our values in action.
Challenge me · Equip me Recognise me · Support me Involve me
The Year Ahead
We also intend to further enhance our employment offer for adults with a learning disability or autism and will establish new professional partnerships to support moves to open employment.
Delivering our strategy, focusing on ability
Looking ahead to the next twelve months, we will continue to grow as an organisation with a focus firmly rooted in providing the best possible support to enable people to live the life they want.
A changing landscape Reform in social care continues to be something we constantly review and respond to.
As we deliver the first year of our new strategy ‘Plan B’, which has been shaped with and for the people we support, we are confident that we remain in a strong position to deliver our services as a first-class support provider.
In July 2021, we welcomed the new National Autism Strategy – the Government’s national strategy for improving the lives of autistic people and their families and carers in England. For the first time, the Autism Strategy includes children.
Over the next year we will have a relentlessly person-centred focus, one that looks to support people to be their own best advocates and that continues to focus on ability rather than on disability.
The strategy plans to address the inequalities people with autism face. This includes removing barriers to education, employment and healthcare.
Whilst the strategy is an important move in the right direction, there are still some uncertainties surrounding funding for the duration of the five-year plan.
To consolidate our whole life of support, we will look at how we can best diversify our income streams to better support our social care activities.
In December 2021, the Government published its adult social care reform white paper, which pledges to put people and families at the heart of social care.
This will include growing our retail outlets and establishing a robust fundraising strategy that supports our activities.
Its 10-year vision is to offer people choice over the care they receive, live independent lives, and to encourage investment and innovation across the sector.
We will be focusing on our external affairs activities to help shape the policies in the paper for the benefit of the people we support and ensure we have a strong voice in the sector in the coming years.
A challenging year
As we write this report, there is an ongoing cost of living crisis in the UK that will have an impact on everyone working in the social care sector.
The COVID-19 pandemic has already impacted on the ability for social care providers such as ourselves, to attract people to work in the sector, as it has in many other industries across the country.
The cost of living crisis has amplified this issue, which is why it’s very important that we continue to modernise our systems and processes so we are able to support more people in a more efficient and effective way.
Working in social care can be an immensely satisfying and rewarding career, and it’s vital we bring this to the fore when we recruit into our organisation.
It’s also important that we continue to recognise the fantastic
work that our colleagues do every day and we will be looking at ways to show our appreciation over the next year.
There’s no doubt that our transformational journey, which has built upon the strong foundations we have set in recent years, will ensure that we enable even more people with a learning disability to live their lives in the way they choose.
We will continue to work together to deliver against our plans for the year ahead.
Working in social care can be an immensely satisfying and rewarding career
Directors’
The Directors present their annual report (incorporating the highlight report) and financial Report statements for the year ended and the statutory requirements 31 March 2022. of the charity’s Governing Document, in preparing the The Directors have adopted the annual report and financial provisions of the Statement of statements of the charity.
The Directors have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102) effective 1 January 2015,
The Directors confirm they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit, ‘Charities and Public Benefit’.
About Brandon
Brandon was formed in 1994 by the merger of the Buttress Trust and South Avon Housing Association.
Headquartered in Bristol, we operate across the south of England and south Midlands, from London through Warwickshire to Cornwall, to provide over 1,600 children, young people and adults with a learning disability, autism or both, to live life in the way they choose.
As an independent charity, we do that by providing individualised, high-quality support that is genuinely lifeenhancing and ranges from lighttouch enabling services, through to 24-hour support.
Delivered by a team of over 2,000 staff, we are committed to working with the people we support and those who surround them, to shape a future where every person with a learning disability will be empowered to live their life to its full potential.
Objects & Activities
Brandon’s charitable purpose is ‘to benefit the public by the provision of relief to those in need by reason of any form of learning, physical, or sensory disability or mental illness, this relief being provided by all forms of support to enable them to live the lives they choose, and in particular by support in the home, by support in the community and the work place, and by the provision of residential accommodation’.
Reference & Administrative Information
Directors / Trustees
Resigned 9 September 2021 Appointed 27 April 2021
J D Adams
M C Bramwell C E Feehily M J Floate D M Francis
Resigned 18 June 2021
Appointed 18 June 2021 Appointed 27 April 2021 Resigned 31 August 2021 Appointed 18 June 2021 Resigned 10 December 2021 Appointed 27 April 2021 Resigned 31 March 2022
C D Goddard L R Griffin D Huf
A J Jayawickrema C P R Mahood D A Mathews-Smith M J Mohan J R P Pike (Chair) P L Sadarangani H P Sandilands M Stupples
Appointed 18 June 2021 Resigned 10 December 2021 Appointed 18 June 2021
B J McGinn 2365487 801571 Olympus House, Britannia Road, Patchway, Bristol BS34 5TA
Secretary Company number Charity number Registered office
Chief Executive Chief Financial Officer Chief Operating and Compliance Officer Director of People and Organisational Development Chief Information and Data Officer Director of Operations, Business and Enterprise
S Porto
B J McGinn T Abbott G Thomas (resigned April 2022) T Bird (appointed March 2022) T Date (appointed January 2022)
Crowe U.K. LLP, 4th Floor, St James House, St James Square, Cheltenham GL50 3PR
Auditors
National Westminster Bank, 32 Corn Street, Bristol BS1 1HQ
Bankers
CCLA Investment Management Ltd, 85 Queen Victoria Street, London EC4V 4ET
Investment Fund Managers
Evelyn Partners (Formally Smith and Williamson), Portwall Place, Portwall Lane, Bristol, BS1 6NA
Anthony Collins Solicitors, 134 Edmund Street, Birmingham B3 2ES
Solicitors
TLT Solicitors, One Redcliff Street, Bristol BS1 6TP Trowers Hamlin, Sceptre Court 40 Tower Hill, London EC3N 4DX
Financial Performance
& Results 2021-22
The surplus for the year from operating activities (net income/(expenditure)) from unrestricted funds before pension movements and transfers was £655,994 (2020/21: £4,117,011). As in 2020/21, the focus for this year was continued stability during the COVID pandemic and improvements in the financial position of the organisation.
Operating performance included the following:
Introduction of the CIPHR suite of systems across People and Organisational Development to produce a self-service Human Resources environment and in so doing create long term positive operational and financial change in that function.
Additional remuneration costs to recruit, attract and retain staff in the face of a challenging recruitment market for the health and social care sector.
Support from local authorities via specific COVID grants to meet additional expenditure arising from the pandemic.
Income is mainly received from Local Authorities for the delivery of accommodation with care, supported living, and work, learning and leisure services.
The net income before other gains and losses, but after transfers, was £526,033 (2020/21: £4,597,697), which is broken down below:
| FY 21/22 | FY 20/21 | |
|---|---|---|
| Unrestricted funds | £1,006,195 | £4,117,011 |
| Pensions | (£55,000) | (£10,000) |
| Restricted funds | (£425,162) | £490,686 |
| Total | £526,033 | £4,597,697 |
Segmental Reporting
| FY 21/22 | FY 20/21 | |
|---|---|---|
| Accommodation with care | 15% | 14% |
| Supported living | 74% | 73% |
| Other funds | 11% | 13% |
| Total | 100% | 100% |
Reserves and Going Concern
The unrestricted reserves position (excluding pension reserve) is summarised below:
| FY 21/22 | FY 20/21 | |
|---|---|---|
| B/F Unrestricted reserves | £20,412,638 | £16,295,627 |
| Current year surplus / (defcit) | £1,006,195 | £4,117,011 |
| C/F Unrestricted reserves | £21,418,833 | £20,412,638 |
| Revaluation reserves included in above C/F value |
£1,688,924 | £1,688,924 |
| Designated reserves included in above C/F value |
£20,145 | £20,145 |
Retirement Benefits
Accounting standards require that the movement in the deficit on the Avon Pension Fund defined benefit scheme along with the Gloucestershire Pension Fund defined benefit scheme be shown as part of the results for the year. The overall net pensions deficit at 31 March 2022 of £869,000 (2020/21: £1,101,000) that appears in the financial statements is made up as follows:
| Avon Pension Fund | Glos Pension Fund | Total | |
|---|---|---|---|
| Opening (defcit) | (£793,000) | (£308,000) | (£1,101,000) |
| Gain in Year | £126,000 | £106,000 | £232,000 |
| Closing (defcit) | (£667,000) | (£202,000) | (£869,000) |
| Pension reimbursement asset recognised |
£667,000 | Nil | £667,000 |
Avon
And after adding restricted and pension reserves:
| FY 21/22 | FY 20/21 | |
|---|---|---|
| C/F Unrestricted reserves | £21,418,863 | £20,412,638 |
| C/F Restricted reserves | £1,677,468 | £2,102,630 |
| C/F Pensions reserve | (£202,000) | (£308,000) |
| C/F Total reserves | £22,894,301 | £22,207,268 |
Under the terms of the agreement with North Somerset Council for Day Services, pension liabilities arising at the end of the contract revert to the Council. As such, a pension asset continues to be recognised by Brandon equal to that of the pension liability of the scheme.
Investment Policy
The primary aims of Brandon’s investment policy are:
Protect reserves against inflation and maintain the real capital value of the portfolio over the longer term;
During the year Brandon’s general reserves (excluding revaluation and designated reserves) increased from £18,703,569 to £19,709,764 (see note 14).
Of this, free reserves (unrestricted funds excluding pension fund reserve – adjusted for tangible and intangible assets) amounted to £15,796,333 (2020/21: £15,355,937).
While the reserve policy excludes the FRS102 pension liability, the Directors are satisfied that this liability could be met if it crystallised in the short term and the Trust would remain a going concern.
The Directors’ reserves policy is based on a risk management strategy that considers a range of individual elements of the organisation’s risk profile, each with associated value ranges. The most recent assessment of reserve levels against the risk profile has determined that the current minimum free reserves target is £6,850,000. The Directors consider that in assessing the current level of reserves together with financial modelling and risk assessments, that Brandon is a going concern.
Recognising the continued difficult financial climate that the Trust operates in, the Audit Committee will review the reserves policy and the risk profile on an annual basis.
The reserves policy moving forward will reflect this need to support the trust in the current economic climate.
To make a net (post fees) returns in excess of that which could be achieved by cash deposit investments;
Combining these two factors, to make a total real return of at least RPI plus 3% per annum.
CCLA Fund
The charity has continued to invest free reserves in a ‘managed fund’ with CCLA and has reviewed and adopted their ethical investment policy in selecting the appropriate Investment fund. The policy is consistent with the aims of the organisation.
| Investment made | Value at March 2022 | Investment Gain/ (Loss) 12 months |
Investment Gain/ (Loss) 12 months % |
|
|---|---|---|---|---|
| Tranche 1 - Jan 2016 | £1,000,000 | - | - | - |
| Tranche 2 - Jun 2016 | £200,000 | - | - | - |
| Tranche 3 - Jul 2018 | £1,500,000 | - | - | - |
| Total | £2,700,000 | £4,596,814 | £480,466 | 12% |
The charity was satisfied with the returns. As noted last year the valuation of the funds was significantly impacted in March 2022 ahead of the last financial year end, due to uncertainty due to the impact of COVID and geopolitical unrest, with that position significantly recovering in the current year. During this difficult period ongoing performance of the fund has been closely monitored by the Finance, Audit and Risk Committee, and its professional advisors. The rest of Brandon’s free reserves are managed via a treasury management policy which invests surplus funds in short term deposits which can be accessed readily.
Smith and Williamson Fund
The charity has invested further free reserves in a new ‘managed fund’ with Smith and Williamson and has reviewed and adopted their ethical investment policy in selecting the appropriate Investment fund. The policy is consistent with the aims of the organisation.
| Investment made | Value at March 2022 | Investment Gain/ (Loss) 12 months |
Investment Gain/ (Loss) 12 months % |
|
|---|---|---|---|---|
| Tranche 1 | £5,000,102 | £5,062,243 | £62,141 | 1% |
| Total | £5,000,102 | £5,062,243 | £62,141 | 1% |
The charity was satisfied with the returns. As noted last year the valuation of the funds was significantly impacted in March 2022 ahead of the last financial year end, due to uncertainty due to the impact of COVID and geopolitical unrest, with that position significantly recovering in the current year. During this difficult period ongoing performance of the fund has been closely monitored by the Finance, Audit and Risk Committee, and its professional advisors. The rest of Brandon’s free reserves are managed via a treasury management policy which invests surplus funds in short term deposits which can be accessed readily.
Brandon’s Board of Directors have approved a series of enhanced organisational controls and policies to specifically address Modern Slavery risks, including:
Recruitment Policy
Procurement Policy
Whistleblowing Policy.
Risk Management
The Board’s Risk Management Policy is to examine the major risks that the charity faces each financial year and to ensure that there are measures in place to monitor and control these risks and to mitigate any impact that they may have in the future. We place a key emphasis on assurance, particularly external assurance (third line of defence model) to effectively manage risk.
The key risks and strategies are highlighted below:
| Principle risks and uncertainties | Strategic plans to manage risk |
|---|---|
| The fnancial impact of a pandemic disease signifcantly impairs the organisation’s fnancial viability. |
Discussions with local authority funders regarding proposed treatment of support when COVID funds are no longer available. Continued close monitoring of delivered support levels to determine the impact of self-isolations. Tight control of discretionary spending throughout the organisation. |
| Brandon is unable to retain a suitably skilled workforce. |
Continued plans to effective strategies to manage staff turnover, recruitment, sickness and retention. |
| Brandon is unable to recruit in key geographical areas. |
Focus on candidate onboarding experience and retention to reduce turnover and maintain healthy vacancy levels. |
| Re-tendering of services by local authority funders impacts signifcantly on service delivery & proftability including the risk of losing signifcant tranches of business. |
Refning pricing strategy model to ensure we can offer best value. Use critical friends to support tender processes. Diversify services & operational delivery. |
Modern Slavery & Human Trafficking Statement
Brandon recognises its responsibility to prevent slavery and human trafficking in our corporate activities, and to ensure that our supply chains are free from slavery and human trafficking.
The charity has in place a Trustee approved Statement which sets out its actions to identify, understand and eradicate this risk. The statement highlights risk assessments done to establish which elements of our supply chain are most at risk from modern slavery. These higher-risk supply chain areas have been identified as:
Agency staff providers,
IT equipment and service providers,
Property landlords; and,
Building, cleaning, maintenance contractors.
Trust and Group Structure
Brandon Trust was incorporated as a charitable company limited by guarantee in 2001. The company’s constitution - its articles of association – were replaced on 10 March 2010 and have since been amended on 17 March 2010, 3 August 2012, 17 June 2013, and 14 January 2015. The resulting articles have, among other things, been amended to reflect key changes made by the Companies Act 2006.
Brandon has a wholly owned subsidiary, Odyssey Care Ltd, acquired on 20 April 2011 (see note 9 to the accounts). All of the trading activities and the assets and liabilities of Odyssey Care Ltd are now transferred to Brandon Trust and are operated as part of Brandon’s ‘London’ area. Odyssey Care Ltd retains ownership and reports on two properties in Croydon, including the 100% NHS Properties grant attached to them.
On 21 October 2021 the Brandon Trust incorporated a new wholly owned trading subsidiary, Brandon Trust Services Limited. This is currently a dormant entity in which no trading of financial activity has occurred. Share capital is 100 shares with a nominal value of £100.
Governance and Management
The charity is administered by a Board of Directors who meet no less than quarterly. They are responsible for setting the strategy of the charity, scrutinising and monitoring its operations in pursuit of that strategy, safeguarding its assets and values, and supporting its work. The Board has the following subcommittees, each with specific terms of reference:
The pay of the Chief Executive is reviewed periodically by the Board, with ELT pay reviewed by the Chief Executive and Board. The Trust uses market data to benchmark pay levels throughout Brandon against similar organisations, and together with affordability, determine appropriate levels for the ELT and all pay grades throughout the organisation.
Disabled Persons and Equal Opportunities
Finance, Audit & Risk Committee no less than three times a year
Quality & Performance no less than three times a year
Brandon has an equality policy alongside our commitment to the ‘Positive about Disability’ accreditation. Disabled people are recruited into suitable posts.
Remuneration & Nomination Committee twice a year
Safeguarding Panel twice a year
Health & Safety three times a year
Brandon’s day-to-day operation and management is delegated to the Executive Leadership Team, led by the Chief Executive.
Election, Recruitment & Training of Directors (Trustees)
Under the Code of Governance adopted by the Directors (Trustees), no Director can serve for longer than six years from the date of appointment. At the end of a three-year term of office a Director is eligible for reappointment by the Board for a maximum of one further period of three years. New Directors are actively recruited via a recruitment, application and interview process managed by the Remuneration and Nomination Committee and bring a range of specialist experience and expertise to the Board.
Directors (Trustees) are appointed by a majority vote and all new Directors undergo a tailored induction and training programme designed to ensure that they have the understanding and skills to fulfil the role of the Trustee under charity and company law. There is a regular skills audit of Directors to ensure that training needs are addressed, along with an annual review of Board and Chair’s performance. Directors are committed to visiting three services each year, to meet staff and gain a genuine understanding and insight into the support that Brandon provides and the difference that we make to people’s lives.
Related Parties & Co-operation with Other Organisations
None of the Directors (Trustees) received remuneration or benefit from their work with the charity. Any connection between a Director/Executive Leadership Team member and organisations with which the charity engages must be disclosed to Trustees in the same way as any other contractual relationship with a third party. In the current year no such related party transactions were reported.
Setting Pay and Reward for Management
The Executive Leadership Team (ELT) are charged with leading and managing the charity on a day to day basis. All directors give of their time freely and no director received remuneration in the year. Details of director’s expenses are disclosed in note 4 to the financial statements.
Assistance is always given and, where possible, adjustments made to enable people to retain their employment and to access training. The charity employs a number of people with a learning disability and has an accessible pre- employment process and related documentation.
The charity’s disabled employees and other disabled people make extensive input into our training programme, including inducting new staff.
Fundraising
Brandon is registered with the Fundraising Regulator and we follow their Code of Fundraising Practice to ensure our fundraising activities meet best practice standards. Brandon does not use professional fundraisers or commercial participators.
Brandon received no complaints about our fundraising activities during 2021/22. To ensure that we are protecting vulnerable people and others from unreasonable intrusion on their privacy, unreasonably persistent approaches or undue pressure to give, Brandon has:
Followed robust processes for updating records of consent.
Limited postal contact to a maximum of two per active donor during the year.
Only emailed those who have given us permission to do so.
We have not undertaken any telephone fundraising activity during the year.
Charity Governance Code
Brandon has adopted and regards itself as compliant with the Charity Governance Code, including the seven principles of organisational purpose, leadership, integrity, decision making risk & control, board effectiveness, equality, diversity, inclusion and openness and accountability.
Carbon Reporting
Brandon recognises its environmental responsibilities. Brandon has assessed its annual energy consumed in Kilowatt Hours (KWH) and used the government conversion factors from the website below to calculate the number of Tonnes of CO2 emitted for both the year ended 31 March 2022 and the year ended 31 March 2021.
Principal Stakeholders
The Board regularly reviews our principal stakeholders and how we engage with them. The stakeholder voice is brought into the boardroom throughout the annual cycle through information provided by management and by direct engagement with stakeholders themselves. The long-term impact of our strategic decisions has been considered in arriving at our strategy document on page 28.
https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2018
| 2021/22 KWH | 2020/21 KWH | 2021/22 Tonnes CO2 | 2020/21 Tonnes CO2 | |
|---|---|---|---|---|
| Electricity | 613,550 | 584,438 | 130 | 136 |
| Gas | 1,781,351 | 1,275,060 | 326 | 235 |
| Oil | 88,423 | 100,348 | 24 | 27 |
| Transport | 504,774 | 610,276 | 214 | 143 |
| Total | 3,241,530 | 2,570,122 | 644 | 541 |
| Average per FTE employee(note 4) | 2,010 | 1,646 | 0.43* | 0.35 |
*The year on year increase is a result of increased activity post the height of covid restrictions
The basis of calculation for the measures above are as follows:
The data for both years has been produced from an analysis of the Kilowatt Hours (KWH) used during the year by service for each type of utility. Transport costs are based on the total vehicle mileage claimed during the converted, using average mileage rates and the conversion factors above.
Key areas for improvement identified by Brandon are:
The Interests of People We Support
Brandon’s ethos is to support people to live as independently as possible and develop services which equip them to live in their own homes. As set out on page 33, Ruthless Person Centredness is one of the key pillars of our strategy.
The Interests of the Company’s Employees
On page 22, Brandon has established the attraction and retention of great people as one of the key pillars of its strategy. The health, safety and well-being of our employees is one of the primary considerations. Brandon has engaged staff extensively in the development of our continued improvement plan. This has involved; ‘Listen and Learn’ sessions for the Executive Leadership Team with each area, engaging staff in the development of our current strategy Plan B.
Brandon also regularly engage with union representatives through our Joint Forum on all matters affecting the work of our employees. Brandon’s strategy includes a training and development programme for staff, including the launch of the leadership development programme during the year. Brandon aims to be a responsible employer in our approach to the pay and benefits that our employees receive.
Improved staff engagement regarding energy consumption.
Greater use of remote meetings and communication solutions to reduce travel requirements.
In the upgrading and replacement of equipment, fixtures and fittings, due consideration will be given to the environment impact of any changes made via the Trust’s procurement process.
The installation of smart meters in Brandon Trust properties where we have an obligation to pay for electricity and gas.
Brandon has adopted the key performance indicator of energy consumption per average FTE. Brandon’s key activities are driven by the level of support required for individuals with learning difficulties, which directly drives the number of employees and the consumption of energy by its employees. As such, the energy consumed by the average number of employees during the year ensures that the impact on consumption is reflective of movements in the scale of operations.
S172(1) of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making. The Trustees who are the Directors for the purposes of the Companies Act have a duty with regards to the interests of the people we support, Brandon’s employees and other stakeholders, including an evaluation of the impact of its activities on the community, the environment and Brandon’s reputation, when making decisions. Acting in good faith and fairly between members, the Directors consider what is most likely to promote the success of the charitable company for its members in the long term. Whilst the importance of giving due consideration to our stakeholders is not new, we are explaining in more detail this year how the Board engages with our stakeholders.
The Interests of Our Suppliers
Brandon has a procurement team who work with our suppliers across the business. Brandon works with them to help drive change through innovation, while working with them to ensure that they reflect the same values and behaviours that we expect from our own people. During the year, the Board reviewed the Modern Slavery and Human Trafficking Statement which sets out the steps taken to prevent modern slavery in our business and supply chains.
The Board has oversight of the procurement & contract management process & receives regular updates on matters of significance and the approval of large contracts.
The Impact of Brandon’s Operations on the Community and Environment
Brandon’s services are key partners to Local Government and operate throughout the local community. The impact of services on the local community and environmental considerations are a key consideration in operational decisions. Brandon is a member of key national groups including the National Care Forum and the Voluntary Organisations Disability Group and seeks to influence and improve social care provision, the quality of life, choice, control and wellbeing of people using care services.
Quality and Standards
Brandon believes that it is vital that we are trusted by our stakeholders and therefore we seek to maintain high standards in all that we do.
Brandon reports openly on its performance to the Charity Commission and the Care Quality Commission, who assess the services that we provide. The Finance, Audit and Risk Committee receives regular reports from auditors, quality and health and safety teams and this provides assurance to the Board in relation to the way that the company conducts itself.
Brandon operates a code of ethics across the business, covering conflicts of interest, our expectations for conduct in the workplace, workplace confidentiality and our whistleblowing policy. E-learning is provided as appropriate.
The Board has a low appetite for reputational risk and the reputational impact of decisions made by the Directors is always considered.
Statement of Directors’ Responsibilities
The directors are responsible for preparing the Directors’ Annual Report (and the incorporated strategic report) and the financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice). The sections containing Financial Performance, Risk Management, Achievements comprise the Strategic Report for the purposes of the companies legislation.
Company law requires the directors 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and group and enable them to ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of Disclosure of information to the Auditor
1) so far as the Directors are aware, there is no relevant audit information of which the Trust’s auditor is unaware, and
2) the Directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the Trust’s auditor is aware of that information.
The Directors’ Report (incorporating the Strategic Report) were approved by the Board on 23 September 2022 and signed of its behalf by:
Jamie Pike
Chair of the Board of Trustees
Independent Auditor’s Report
Opinion
We have audited the financial statements of The Brandon Trust for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Trust Balance Sheet, Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other Information
The Trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion based on the work undertaken in the course of our audit:
the information given in the Trustees’ report, which includes the Directors’ report and the Strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors’ report included within the Trustees’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors’ report included within the Trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate and proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement set out on page 55, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit for 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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context were the CQC Regulations, General Data Protection Regulations and Employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
Guy Biggin
Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor 4th Floor St James House St James Square Cheltenham, GL50 3PR, UK
Date: 2 November 2022
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be with the completeness and accuracy of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, designing audit procedures over income, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of
Consolidated Statement of Financial Activities (incorporating an Income and Expenditure Account) For the year ended 31 March 2022
| Notes Income Donations and Legacies: Donations and Giving Government Grants 2 Other Grants Income from charitable activities: Fees for Accommodation with Care Services Fees for Work, Learning and Leisure Fees for Supported Living Services Income from other trading activities: Charity Shops Interest income Other income Total income Expenditure on raising funds: Charity shop expenditure Expenditure on charitable activities: Accommodation with Care Services Costs Work, Learning & Leisure Costs Fees for Supported Living Services Other expenditure in the deployment of grants and donations received Total expenditure 3 Net gain on investments 8 Net income/(expenditure) before other gains and losses Transfers Between Funds Other Recognised Gains/(Losses) Pension schemes actuarial (loss)/gain 19 Remeasurement of reimbursement asset 19 Net movement in funds Reconciliation of Funds: Balances brought forward at 1 April 2021 Balances carried forward at 31 March 2022 13/14 Prior year comparatives by fund are included in note 24 to the fina |
Unrestricted Funds Unrestricted Pensions Reserve Restricted Funds Total Funds Total Funds 2022 2021 £ £ £ £ £ 0 0 132,591 132,591 99,709 116,220 0 2,106,739 2,222,959 2,029,442 0 0 0 0 0 9,195,544 0 0 9,195,544 8,428,317 3,983,767 0 0 3,983,767 5,406,013 46,737,815 0 0 46,737,815 44,256,688 418,123 0 0 418,123 120,820 0 0 0 0 10,709 313,577 0 0 313,577 11,017 |
|---|---|
| 60,765,046 0 2,239,330 63,004,376 60,362,715 |
|
| 322,072 545 0 322,617 211,823 8,941,743 12,848 0 8,954,591 7,999,779 4,035,520 7,697 0 4,043,217 4,636,553 47,352,324 77,910 0 47,430,234 43,020,468 0 0 2,270,291 2,270,291 702,703 |
|
| 60,651,659 99,000 2,270,291 63,020,950 56,571,326 |
|
| 542,607 0 0 542,607 806,308 |
|
| 655,994 (99,000) (30,961) 526,033 4,597,697 350,201 44,000 (394,201) 0 0 0 287,000 0 287,000 (255,000) 0 (126,000) 0 (126,000) 165,000 |
|
| 0 1,006,195 106,000 (425,162) 687,033 4,507,697 20,412,638 (308,000) 2,102,630 22,207,268 17,699,571 |
|
| 21,418,833 (202,000) 1,677,468 22,894,301 22,207,268 |
|
| ncial statements. |
The surplus for the year for Companies Act purposes comprises the net income for the year and was £526,033 (2021: £4,597,697).
Consolidated Balance Sheet As at 31 March 2022 Registered company number 02365487
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | ||
| Fixed Assets | ||||||
| Intangible Assets | 6 | 461,551 | 428,556 | |||
| Tangible assets | 7 | 4,737,593 | 4,239,330 | |||
| Investments | 8 | 9,659,057 | 4,116,349 | |||
| Total Fixed assets | 14,858,201 | 8,784,235 | ||||
| Current assets | ||||||
| Debtors due within one year | 10 | 6,152,521 | 5,314,520 | |||
| Debtors due after more than one year | 10 | 667,000 | 793,000 | |||
| Cash at bank and in | hand | 17 | 7,717,534 | 11,590,674 | ||
| Total current assets | 14,537,055 | 17,698,194 | ||||
| Creditors: amounts | falling due | |||||
| within one year | 11 | (5,631,955) | (3,174,161) | |||
| Net current assets | 8,905,100 | 14,524,033 | ||||
| Total assets less current liabilities | 23,763,301 | 23,308,268 | ||||
| Pension scheme liability | 19 | (869,000) | (1,101,000) | |||
| Net assets including pension liability | 22,894,301 | 22,207,268 | ||||
| Funds of the group | ||||||
| Restricted funds (excluding revaluation reserve) | 13 | 759,255 | 1,149,876 | |||
| Restricted revaluation reserve | 13 | 918,213 | 952,754 | |||
| 1,677,468 | 2,102,630 | |||||
| Unrestricted funds | -Revaluation reserve | 14 | 1,688,924 | 1,688,924 | ||
| -General and Designated | 14 | 19,729,909 | 18,723,714 | |||
| reserves | ||||||
| -Pension fund reserve | 19 | (202,000) | (308,000) | |||
| Total consolidated | group funds including | 15 | 22,894,301 | 22,207,268 | ||
| deficit on Pension Scheme Reserve | ||||||
| 0 | ||||||
| The consolidated financial statements were approved | and authorised for issue | by the Board of | Trustees on | |||
| 23 September 2022 | and signed on its behalf by: |
……………………………………… J Pike - Director
Consolidated Statement of Cash Flows for the year ended 31 March 2022
Trust Balance Sheet As at 31 March 2022 Registered company number 02365487
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | ||
| Fixed Assets | ||||||
| Intangible assets | 6 | 461,551 | 428,556 | |||
| Tangible assets | 7 | 3,819,380 | 3,286,576 | |||
| Investment in subsidiary | 9 | 1,125,559 | 1,125,459 | |||
| Investments | 8 | 9,659,057 | 4,116,349 | |||
| Total Fixed assets | 15,065,547 | 8,956,940 | ||||
| Current assets | ||||||
| Debtors due within one year | 10 | 6,152,421 | 5,314,520 | |||
| Debtors due after more than one year | 10 | 667,000 | 793,000 | |||
| Cash at bank and in | hand | 17 | 7,717,534 | 11,590,674 | ||
| Total Current Assets | 14,536,955 | 17,698,194 | ||||
| Creditors: amounts | falling due | |||||
| within one year | 11 | (5,631,955) | (3,174,161) | |||
| Net current assets | 8,905,000 | 14,524,033 | ||||
| Total assets less current liabilities | 23,970,547 | 23,480,973 | ||||
| Pension scheme liability | 19 | (869,000) | (1,101,000) | |||
| Net assets | 23,101,547 | 22,379,973 | ||||
| Funds of the charity | ||||||
| Restricted funds (excluding revaluation reserve) | 13 | 759,255 | 1,149,876 | |||
| Restricted Revaluation reserve | 13 | 1,125,459 | 1,125,459 | |||
| 1,884,714 | 2,275,335 | |||||
| Unrestricted funds | -Revaluation reserve | 14 | 1,688,924 | 1,688,924 | ||
| -General & Designated | 14 | 19,729,909 | 18,723,714 | |||
| reserves | ||||||
| -Pension fund reserve | 19 | (202,000) | (308,000) | |||
| Total charity funds | 15 | 23,101,547 | 22,379,973 |
The Trust's surplus for the year was £560,574 (2021:£4,632,238). This surplus is before other (losses)/gains of £106,000 (2021:£(90,000)).
The consolidated financial statements were approved and authorised for issue by the Board of Trustees on 23 September 2022 and signed on its behalf by:
| Note Operating activities Cash generated from operations 16 Investing activities Purchase of tangible fixed assets 7 Purchase of Intangible fixed assets 6 Purchase of Investments 8 Receipts from sales of tangible assets Interest received Net cash (used in) investing activities Net Increase/ in cash and cash equivalents 18 Unrestricted Funds: Cash Movement in the Year 15 Restricted Funds: Cash Movement in the Year 15 Pension Reserve: Cash Movement in the Year 15 Cash and Cash equivalents at beginning of the year 18 Cash and cash equivalents at the end of the year 18 |
2022 Group £ 2,064,591 (789,241) (148,389) (5,000,101) 0 0 (5,937,731) (3,873,140) (3,482,518) (390,621) 0 11,590,674 7,717,534 |
2021 Group £ 3,682,128 (113,480) (363,618) 0 2,224 10,709 |
|---|---|---|
| (464,165) | ||
| 3,217,963 | ||
| 2,682,746 535,217 0 8,372,711 |
||
| 11,590,674 | ||
………………………………………
J Pike - Director
Notes to the consolidated financial statements For the year ended 31 March 2022
1. Accounting policies
The principal accounting policies adopted, are as follows:
1.1 General Information
The Brandon Trust (“Brandon”) is a private company, limited by guarantee, domiciled, and incorporated in England. Brandon is a registered charity and registration numbers and details of the registered office (which is also the principal place of business) are set out in the reference and administrative information section of the Report and Financial Statements.
Notes to the consolidated financial statements For the year ended 31 March 2022
1.6 Fund Accounting
Restricted funds are to be used for specific purposes as laid down by the provider or terms of an appeal. Expenditure that meets these criteria is allocated to the fund together with a fair allocation of management and support costs.
Unrestricted funds are donations and other income received or generated for the objects of the charity, without further specified purpose and are available as general funds.
Designated funds are established by the trustees with funds allocated for specific purposes.
The Group consists of the Brandon Trust and its subsidiary undertaking.
Brandon’s (and the Group’s) principal activities and the nature of its operations are set out in the Directors’ report.
1.2 Basis of preparation
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 (FRS102) (effective 1 January 2015) - (Charities SORP(FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.
Brandon meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
1.3 Basis of Consolidation
The consolidated financial statements, which are prepared on a line by line basis, incorporate the financial statements of The Brandon Trust and entities controlled by the company (its subsidiaries) made up to 31 March each year. Exemption has been taken from producing a Trust only cash flow statement. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to benefit from its activities. Results of subsidiary undertakings are included from the effective date of acquisition. Brandon has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own income and expenditure account.
1.4 Expenditure
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 obligations can be measured reliably. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Support costs include Head and Area office costs, finance, HR, payroll and governance costs which support the activities of Brandon. They are allocated to activities on a basis proportional to the full-time equivalent staffing for each area of activity.
1.5 Income
All income is accounted for when Brandon Trust has entitlement, there is probability of receipt, and the amount is measurable.
Contracted Income
Income in respect of contracts for the provision of services is recognised when Brandon Trust is entitled based on services provided. Amounts received in advance of service provision are deferred until the relevant part of the contracted service is complete.
1.7 Intangible assets, Tangible fixed assets, depreciation and amortisation
Assets costing less than £1,000 per individual item or group of related items are written off in the year of acquisition. All other assets are capitalised. Intangible and tangible fixed assets are stated at cost or deemed cost less depreciation/amortisation. Depreciation/amortisation is provided on all tangible and intangible assets, other than freehold land, at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
| Tangible Assets | Intangible Assets |
|---|---|
| Freehold land | Nil |
| Freehold buildings | 2% straight line basis |
| Property refurbishment | 25% straight line basis |
| Computer equipment | 25%-33% straight line basis |
| Fixtures, fttings and furniture | 25%-33% straight line basis |
| Motor vehicles | 25% straight line basis |
| Intangible assets | Amortisation |
| Computer software | 25%-33% straight line basis |
The Directors consider the rate of amortisation of computer software to be appropriate as it reflects the useful life of the asset.
Brandon retains fixed and variable equity interests in some properties sold to a housing partner. These assets are included within freehold land and buildings at deemed cost less depreciation. Depreciation is provided at rates on these interests, in accordance with the policy for Freehold Buildings.
1.8 Financial Instrument
Investments
The Group’s investments are valued initially at cost and subsequently at fair value based upon the quoted market prices (current bid price) at the balance sheet date. Realised and unrealised gains or losses on revaluation or disposal are combined in the Consolidated Statement of Financial Activities. Income from these investments is recognised in the year in which it arises. Income directly reinvested in a fund without any cash distribution to the company is treated as a gain.
Financial assets
Trade and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price, and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.
Notes to the consolidated financial statements For the year ended 31 March 2022
Notes to the consolidated financial statements For the year ended 31 March 2022
1.13 Defined contributions schemes
Financial Liabilities
Trade and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settle.
1.9 Investment in subsidiary
In the Trust accounts, interests in subsidiaries are measured at deemed cost at the date of Transition to FRS102 (1 April 2014) less impairment.
Interests in subsidiaries are assessed for impairment at each reporting date. Any impairment losses or reversals of impairment losses are recognised immediately in the Trust’s Statement of Financial activities.
1.10 Cash and Cash equivalents
Cash and cash equivalents comprise cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.11 Leases
All operating leases are charged to the statement of financial activities on a straight-line basis over the lease term. Rent free periods or other incentives for entering into an operating lease are accounted for as a reduction to the expense and are recognised, on a straight-line basis over the lease term.
1.12 Pension costs and other post-retirement benefits Defined benefit schemes
Employees who joined the Trust under TUPE arrangements have been allowed to retain membership of their defined benefit schemes, namely the Avon Pension Fund and the Gloucestershire County Council Scheme. The cost of the pension schemes is charged to the statement of financial activities to spread the cost of pensions over the service lives of employees in the scheme. The pension charge is calculated based on actuarial advice using the projected unit credit method.
The net defined benefit asset/liability represents the present value of the defined benefit obligation minus the fair value of plan assets out of which obligations are to be settled.
Any asset resulting from this calculation is limited to the present value of available refunds or reductions in future contributions to the plan. The rate used to discount the benefit obligations to their present value is based on market yields for high quality corporate bonds with terms and currencies consistent with those of the benefit obligations.
Gains or losses that are recognised in the net income/(expenditure):
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost.
The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.
Net interest on the net defined benefit asset/ liability is calculated by applying the rate used to discount the benefit obligations.
Other gains and losses recognised include:
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions.
The difference between the interest income on the plan assets and the actual return on the plan assets.
Contributions payable to the Trust’s group personal pension scheme are charged to the statement of financial activities in the period to which they relate. Payments in respect of other post-retirement benefits are charged to the statement of financial activities in the period to which they relate.
1.14 Redundancy Payments
Employee benefits paid on redundancy or termination include accrued amounts where Brandon Trust is demonstrably committed to make these payments, but they had not yet been made at 31 March 2022. All accrued amounts are fully funded and expected to be settled within 12 months of the balance sheet date.
1.15 Going concern
Brandon meets its day-to-day working capital requirements through its internal cash generation. The current economic conditions create uncertainty, however Brandon’s forecasts and projections, taking account of possible changes in operating performance show that Brandon will be able to operate within its bank facilities over the next year. Accordingly, Trustees are satisfied that the Charity and Group have adequate resources to continue in operational existence for at least twelve months and as a result they continue to adopt the going concern basis in preparing the annual report and accounts.
1.16 Critical accounting estimates and areas of judgement
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.
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment within the next financial year are discussed below.
The net defined benefit obligation arising on membership of defined benefit schemes represents the present value of the defined benefit obligations minus the fair value of plan assets out of which obligations are to be settled. In assessing the net defined benefit at the balance sheet date, the Directors utilise valuations provided by the pension scheme actuaries. This includes the principal assumptions for each scheme, which are disclosed in note 19 in respect of each scheme.
Critical areas of judgement
Critical areas of judgement are significantly addressed in Note 23 Contingent Liabilities.
In categorising leases as finance leases or operating leases, management makes judgements as to whether the classification as a finance lease under the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) has been met.
1.17 Volunteers
Volunteers fulfil a number of varied roles within the Trust, ranging from working in charity shops to engaging with supported persons. They are not counted as employed staff of workers in the notes to the financial statements.
1.18 Donated Goods
Donated goods (such as donations to charity shops) received by the Trust are not held on the balance sheet and hold a nil value. Any income received from the sale of donated goods is recognised in full within the Consolidated Statement of Financial Activities, in line with 1.5 Income.
Notes to the consolidated financial statements for the year ended 31 March 2022
Notes to the consolidated financial statements for the year ended 31 March 2022
2 Government Grants Income
| Consolidated Grant funds: Local Authority Infection Control Local Authority Workforce Retention Other Local Authority Covid 19 Grants Coronavirus Job Retention Scheme |
Total Total 2022 2021 £ £ 1,399,751 1,094,841 640,263 - 66,725 33,380 116,220 901,221 0 116,220 |
|---|---|
| 2,222,959 2,029,442 |
During the year, the Trust received a number of different Local Government Grants, backed by the UK Government. These related to Covid 19 matters including workforce recruitment and retention, infection control matters in services and lost trade and income due to operational restrictions around charity shop and other trading.
3 Expenditure (continued)
| Allocated support costs include governance costs of £43,403 (2021:£39,457). | ||
|---|---|---|
| 2022 | 2021 | |
| The Pension reserve charges/(credits) are analysed by scheme in note 19 and comprise: | £ | £ |
| Net interest | 22,000 | 18,000 |
| Remeasurement of Avon reimbursement asset (note 19) | (23,000) | (30,000) |
| Administrative expenses | 1,000 | 1,000 |
| Past service costs | 0 | 0 |
| Difference between current service & contributions | 55,000 | 21,000 |
| Pensions reserve charge excluding other gains and losses (note 19) | 55,000 | 10,000 |
| Pension schemes actuarial loss /(gain) (note 19) | (287,000) | 255,000 |
| Remeasurement of Avon reimbursement asset (note 19) | 126,000 | (165,000) |
| Pensions reserve charge/(credit) including other gains and losses | (106,000) | 100,000 |
All allocated costs are apportioned on the basis of full time equivalent staffing requirements of each activity.
3 Expenditure
| Consolidated Raising funds: Charity shops Charitable activities: Accommodation with Care Services Work, Learning & Leisure Supported Living Services Grants and donations Year ended 31 March 2021 Consolidated Raising funds: Charity shops Charitable activities: Accommodation with Care Services Work, Learning & Leisure Supported Living Services Grants and donations |
Staff Allocated Other Pensions Costs Support Direct Reserve Total Total Costs Costs Charges 2022 2021 £ £ £ £ £ £ 186,696 9,174 126,202 545 322,617 211,823 7,202,708 216,399 1,522,636 12,848 8,954,591 7,999,779 3,318,714 129,632 587,174 7,697 4,043,217 4,636,553 44,958,116 1,312,191 1,082,017 77,910 47,430,234 43,020,468 0 0 2,270,291 0 2,270,291 702,703 |
|---|---|
| 55,666,234 1,667,396 5,588,320 99,000 63,020,950 56,571,326 |
|
| Staff Allocated Other Pensions Costs Support Direct Reserve Total Costs Costs Charges 2021 £ £ £ £ £ 109,902 0 101,921 0 211,823 6,169,876 327,506 1,501,145 1,252 7,999,779 3,665,340 229,762 740,573 878 4,636,553 38,014,844 2,058,970 2,938,784 7,870 43,020,468 0 0 702,703 0 702,703 47,959,962 2,616,238 5,985,126 10,000 56,571,326 |
| 2022 | 2021 | |||
|---|---|---|---|---|
| £ | £ | |||
| Other direct costs and allocated costs include: | ||||
| Operational lease rentals - other | 476,907 | 486,124 | ||
| Operating lease rentals - land and buildings | 635,495 | 665,834 | ||
| Depreciation of fixed assets | 262,009 | 218,789 | ||
| Amortisation of intangible fixed assets | 99,241 | 148,194 | ||
| Auditors remuneration (audit fee Statutory Accounts): | ||||
| - Parent company & Group audit fee | 43,728 | 39,414 | ||
| Legal fees | 90,560 | 96,635 | ||
| Staff numbers, costs, trustee remuneration, and the cost of key management personnel | ||||
| Number of employees - Group & Trust | ||||
| The average monthly number of employees during the year was: | ||||
| 2022 | 2022 | 2021 | 2021 | |
| Actual | FTE | Actual | FTE | |
| Management | 36 | 10 | 34 | 32 |
| Administration | 111 | 101 | 129 | 94 |
| Service delivery | 1,767 | 1,502 | 1,761 | 1,435 |
| Bank staff | 355 | * | 479 | * |
| 2,269 | 1,613 | 2,403 | 1,561 |
4 Staff numbers, costs, trustee remuneration, and the cost of key management personnel
The Trust operates a pool of bank staff who operate under variable hours contracts. The costs of these bank staff amounted to £2,283,103 (2021: £2,144,596), however the nature of the contacts do not allow the average number of FTE's to be determined accurately. The average number of these employees available to Brandon Trust during the year is shown above.
Notes to the consolidated financial statements for the year ended 31 March 2022
Notes to the consolidated financial statements for the year ended 31 March 2022
4 Staff numbers, costs, trustee remuneration, and the cost of key management personnel (continued)
Employment costs - Group & Trust
| Employment costs - Group & Trust | ||
|---|---|---|
| Wages and salaries Social security costs Pension costs Staff costs |
2022 £ 45,704,747 3,561,686 1,523,469 50,789,902 |
2021 £ 43,210,212 3,242,205 1,507,545 |
| 47,959,962 |
The defined benefit pension adjustments represent the adjustment to account for the defined benefit pension schemes under FRS 102, and comprise the figures shown in the pension reserve charges table in note 3, excluding the net interest. The total defined contribution pension costs included above are £891,422 (2021: £839,069) and the total defined benefit pension costs are £632,047 (2021: £668,476).
In addition to the above, cost to the Trust of workers not directly employed by the Trust amounted to £4,876,332 (2021: £1,784,420).
| 6 Intangible Assets Consolidated and Trust Cost or Valuation At 1 April 2021 Additions Disposals Transfers At 31 March 2022 Amortisation and Impairment At 1 April 2021 Charge for the year On disposals At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Asset Under Computer Construction Software Total £ £ £ 0 889,776 889,776 0 148,389 148,389 0 (16,152) (16,152) 230,370 (230,370) 0 |
|---|---|
| 230,370 791,642 1,022,012 |
|
| 0 461,220 461,220 0 99,241 99,241 0 0 0 |
|
| 0 560,461 560,461 |
|
| 230,370 231,181 461,551 |
|
| 0 428,556 428,556 |
The number of employees who received benefits (excluding employer pension costs and National Insurance) in the following ranges were:
Amortisation costs are charged to other allocated support costs (note 3).
| Consolidated £140,001 - £150,000 £130,001 - £140,000 £100,001 - £110,000 £90,001 - £100,000 £80,001 - £90,000 £70,001 - £80,000 £60,001 - £70,000 |
2022 Number 0 1 0 1 2 0 2 |
2021 Number 0 1 0 0 3 0 1 |
|---|---|---|
Pension costs are allocated to activities in proportion to the related staffing costs received. Included within the employment costs above are redundancy and termination payments totalling £75,195 (2021: £77,151), together with ex gratia payments of £nil (2021: £964). These payments are recognised as soon as the liability to the Trust crystallises under the terms of the agreement with the employee. There are no liabilities that have not been recognised at the balance sheet date (2021: £nil).
The Directors were not paid nor received any other benefits from employment with the trust or its subsidiary during the year (2021: £nil). 3 Directors were reimbursed for travel expenses during the year amounting to £614 (2021: 1 Director, £71). The other Directors received no travel expenses during the year.
The key management personnel of the Group and the Trust, comprise the Trustees, the Chief Executive Officer of the Trust and the Executive Leadership Team (as set out in the reference and administrative information section of this report). The total employee benefits of these key personnel were: £631,426 (2021: £565,422).
5 Taxation
The Brandon Trust is a registered charity and as such is exempt from taxation of its income and gains falling within part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives.
No tax charge has arisen in the year.
7 Tangible fixed assets
| Consolidated Cost At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation and Impairment Provisions At 1 April 2021 Arising on acquisitions Charge for the year On disposals At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 Trust only Cost At 1 April 2021 Arising on acquisitions Additions Disposals At 31 March 2022 Depreciation and Impairment Provisions At 1 April 2021 Charge for the year On disposals At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Freehold Property Fixtures, Computer Motor Total Land & Refurbishment Fittings & Equipment Vehicles Buildings Furniture £ £ £ £ £ £ 5,136,647 1,009,037 796,614 340,191 206,525 7,489,014 482,509 61,292 149,512 95,928 0 789,241 0 0 (28,969) 0 0 (28,969) |
|---|---|
| 5,619,156 1,070,329 917,156 436,119 206,525 8,249,286 |
|
| 1,149,108 897,158 683,719 339,229 180,470 3,249,684 88,607 77,167 62,365 22,271 11,599 262,009 0 0 0 0 0 0 |
|
| 1,237,715 974,325 746,084 361,500 192,069 3,511,693 |
|
| 4,381,442 96,004 171,072 74,619 14,456 4,737,593 |
|
| 3,987,539 111,879 112,895 962 26,055 4,239,330 |
|
| Freehold Property Fixtures, Computer Motor Total Land & Refurbishment Fittings & Equipment Vehicles Buildings Furniture £ £ £ £ £ £ 3,976,647 1,009,037 796,614 340,191 206,525 6,329,014 0 0 0 0 0 0 482,509 61,292 149,512 95,928 0 789,241 0 0 (28,969) 0 0 (28,969) |
|
| 4,459,156 1,070,329 917,156 436,119 206,525 7,089,286 |
|
| 941,862 897,158 683,719 339,229 180,470 3,042,438 54,066 77,167 62,365 22,271 11,599 227,468 0 0 0 0 0 0 |
|
| 995,928 974,325 746,084 361,500 192,069 3,269,906 |
|
| 3,463,229 96,004 171,072 74,619 14,456 3,819,380 |
|
| 3,034,785 111,879 112,895 962 26,055 3,286,576 |
Notes to the consolidated financial statements for the year ended 31 March 2022
Notes to the consolidated financial statements for the year ended 31 March 2022
7 Tangible fixed assets (continued)
The Trust retains fixed and variable equity interests in properties sold to a housing partner. In prior years these were shown separately as equity interests, but have been incorporated within freehold properties during a prior period, as the Trust believes this more accurately reflects their classification.
The net book value of Land and building, includes the value of land as follows: Consolidated £1,565,000 (2021:£1,445,000), Trust £1,160,000 (2021: £1,040,000 ).
The Trust notes that its subsidiary Odyssey Care Limited has a charge held by NHS Property Services over the two freehold properties held by Odyssey Care Limited. At the point at which these properties are sold, any proceeds are due to NHS Property Services, net of any transaction costs.
8 Investments
| Consolidated and Trust Fair Value At 1 April Additions Revaluation At 31 March |
2022 £ Managed Funds 4,116,349 5,000,101 542,607 9,659,057 |
2021 £ Managed Funds 3,310,041 0 806,308 |
|---|---|---|
| 4,116,349 |
Investments comprise units in charity specific managed funds. Managed funds are initially recorded at cost and are subsequently revalued to fair value at the balance sheet date. The historic cost of investments is £7,700,102 (2021: £2,700,000).
9 Investment in Subsidiary Undertaking
On 20 April 2011, the Brandon Trust acquired control of Odyssey Care Limited, a Community Benefit Society (24872R), by virtue of its ability to appoint membership of the Society's committee of management. Odyssey Care Limited is a not for profit Learning Disability provider based in London. No payment was made by the trust to acquire Odyssey Care Limited. The registered office of Odyssey Care Ltd is the same as that of the Brandon Trust.
On 1 November 2012 the majority of the assets and liabilities (with the exception of Croydon Registered care properties) were transferred to the Brandon Trust and became the East operating area.
On 21 October 2021 the Brandon Trust incorporated a new wholly owned trading subsidiary, Brandon Trust Services Limited. This is currently a dormant entity in which no trading of financial activity has occurred. Share capital is 100 shares with a nominal value of £100.
9 Investment in Subsidiary Undertaking (continued)
The results below can be found within the financial statements of Odyssey Care Limited:
| Statement of Financial Activities Total Incoming Resources Total Resources expended Net expenditure before recognised gains and losses Other gains/(losses) Net expenditure for the year Summary Balance Sheet Total Assets Total Liabilities Net Funds Total expenditure comprise restricted expenditure as follows: Depreciation charge Odyssey Care Ltd - expenditure on NHS Property Services Fund Consolidated Loss on NHS Property Services Fund (note 13) |
2022 £ 0 (34,541) (34,541) 0 (34,541) 2022 £ 918,213 0 918,213 2022 £ 34,541 34,541 34,541 |
2021 £ 0 (34,541) |
|---|---|---|
| (34,541) | ||
| 0 | ||
| (34,541) | ||
| 2021 £ 952,754 0 |
||
| 952,754 | ||
| 2021 £ 34,541 |
||
| 34,541 | ||
| 34,541 |
In previous years the Trust and Subsidiary received monies from NHS Property Services to fund the purchase of freehold properties. As the proceeds are payable only in the event that the Trust and subsidiary sell the properties, and in this event can be controlled, the liability is recognised as a contingent liability and recognised as a loss when it crystallises. The Trust has recognised the original monies received as restricted funds.
| Investment in Brandon Trust Services at deemed cost less impairment Investment in Odyssey Care at deemed cost less impairment |
2022 £ 100 1,125,459 1,125,559 |
2021 £ 0 1,125,459 |
|---|---|---|
| 1,125,459 |
Notes to the consolidated financial statements for the year ended 31 March 2022
Notes to the consolidated financial statements for the year ended 31 March 2022
10 Debtors
| Consolidated and Trust Debtors due within one year Trade debtors Taxes and social security costs Other debtors Prepayments Accrued income Debtors due after more than one year Pension reimbursement (note 19) |
2022 £ 1,843,145 0 214,563 441,393 3,653,420 6,152,521 667,000 |
2021 £ 1,719,163 8,513 37,059 527,779 3,022,006 |
|---|---|---|
| 5,314,520 | ||
| 793,000 |
11 Creditors: amounts falling due within one year
| Consolidated and Trust Trade creditors Taxes and social security costs Accruals Other Creditors Deferred income |
2022 £ 606,763 865,755 2,741,350 634,768 783,319 5,631,955 |
2021 £ 561,073 0 2,314,100 0 298,988 |
|---|---|---|
| 3,174,161 |
At the balance sheet date there were no material provisions in place that the Trustees need to make the users of the financial aware of. There was one immaterial provision in place for £290,687 (2021: £nil) relating to the potential recovery of Covid 19 Grants. This has been put in place due to the uncertainty around the administration and interpretation of Covid 19 granting funding for the past two years by local and national government.
| Movements in deferred income comprise: Balance at 1 April Released during the year Income deferred during the year Balance at 31 March Financial Instruments Consolidated and Trust Financial assets Debt instruments measured at amortised cost Trade debtors, other debtors, accrued income and cash at bank and in hand Debt Instruments measure at fair value Investments Total Financial liabilities Measured at amortised cost Trade creditors, Other Creditors and accruals Total |
2022 £ 298,988 (102,162) 586,493 783,319 2022 £ 13,428,661 9,659,057 23,087,718 (4,848,636) (4,848,636) |
2021 £ 131,656 (51,348) 218,680 |
|---|---|---|
| 298,988 | ||
| 2021 £ 16,377,415 4,116,349 |
||
| 20,493,764 | ||
| (2,875,173) | ||
| (2,875,173) |
12 Financial Instruments
13 Restricted Funds
| Restricted Funds | |
|---|---|
| Consolidated NHS Property Services Ltd - restricted other NHS Property Services Ltd - restricted revaluation Capital Grant Donation - Work, Learning and Leisure Donation - Accommodation with Care Services Donation - Supported Living Donations - other Donations - Dream Fund COVID 19 related grants |
Balance 1 April 2021 Income On acquisition Expenditure / Transfers Balance 31 March 2022 £ £ £ £ £ 367,500 0 0 0 367,500 952,754 0 0 (34,541) 918,213 0 0 0 0 0 175,302 70,170 0 (25,965) 219,507 3,032 8,199 0 (1,334) 9,897 12,411 7,868 0 (6,654) 13,625 43,784 22,731 0 (13,508) 53,007 101,346 23,623 0 (36,750) 88,219 446,501 2,106,738 0 (2,545,739) 7,500 |
| 2,102,630 2,239,329 0 (2,664,492) 1,677,468 |
The restricted funds of the Trust comprise the consolidated funds of £1,677,467 (2021: £2,102,630), excluding the NHS restricted revaluation reserve of £918,213 (2021: £952,754), which are replaced in the Trust by the Investment in subsidiary of £1,125,459 (2021: £1,125,459) to arrive at the closing restricted funds balance of £1,884,714 (2021: £2,275,335)
| Consolidated NHS Property Services Ltd - restricted other NHS Property Services Ltd - restricted revaluation Capital Grant Donation - Work, Learning and Leisure Donation - Accommodation with Care Services Donation - Supported Living Donations - other Donations - Dream Fund COVID 19 related grants |
Balance 1 April 2020 Income On acquisition Expenditure / Transfers Balance 31 March 2021 £ £ £ £ £ 367,500 0 0 0 367,500 987,295 0 0 (34,541) 952,754 90 0 0 (90) 0 150,378 52,416 0 (27,492) 175,302 2,848 3,914 0 (3,730) 3,032 13,448 4,952 0 (5,989) 12,411 38,371 7,890 0 (2,477) 43,784 52,014 30,537 28,505 (9,710) 101,346 0 1,094,841 4,875 (653,215) 446,501 |
|---|---|
| 1,611,944 1,194,550 33,380 (737,244) 2,102,630 |
The COVID related grants comprise funds specifically for the purposes of Infection control, rapid testing and workplace capacity, arising from the COVID 19 pandemic.
Donations are from various sources, often bequests, to be used for specific purposes by specific elements of the Trust.
The Dream Fund raises money for the purpose of enhancing the lives of people that are supported.
The NHS Property Services fund represents monies previously received from NHS Property Services to fund the purchase of freehold properties. The proceeds are payable in the event that the Trust and subsidiary sells the properties and as such the funds received have been treated as restricted. The Subsidiary investment reserve represents the equivalent restricted income in the Subsidiary.
Notes to the consolidated financial statements for the year ended 31 March 2022
Notes to the consolidated financial statements for the year ended 31 March 2022
14 Unrestricted funds
| Total Total Revaluation Designated General Excluding Pension Including Consolidated and Trust Reserve Reserve Reserve Pension Reserve Reserve Pension Reserve £ £ £ £ £ £ Balance at 1 April 2021 1,688,924 20,145 18,703,569 20,412,638 (308,000) 20,104,638 Surplus for the year 0 0 655,994 655,994 62,000 717,994 Transferred between reserves 0 0 350,201 350,201 44,000 394,201 Balance at 31 March 2022 1,688,924 20,145 19,709,764 21,418,833 (202,000) 21,216,833 Year ending 31 March 2021 Total Total Revaluation Designated General Excluding Pension Including Consolidated and Trust Reserve Reserve Reserve Pension Reserve Reserve Pension Reserve £ £ £ £ £ £ Balance at 1 April 2020 1,688,924 20,145 14,586,558 16,295,627 (208,000) 16,087,627 Surplus for the year 0 0 4,117,011 4,117,011 (100,000) 4,017,011 Balance at 31 March 2021 1,688,924 20,145 18,703,569 20,412,638 (308,000) 20,104,638 Analysis of net assets between funds Unrestricted Funds Restricted Funds Pension Reserve Total Funds Consolidated £ £ £ £ Fund balances at 31 March 2022 are represented by: Intangible fixed assets 461,551 0 0 461,551 Tangible fixed assets 3,451,880 1,285,713 0 4,737,593 Investments 9,659,057 0 0 9,659,057 Current assets 13,478,300 391,755 667,000 14,537,055 Current liabilities (5,631,955) 0 0 (5,631,955) Long Term liabilities 0 0 (869,000) (869,000) Total Net Assets 21,418,833 1,677,468 (202,000) 22,894,301 Year ended 31 March 2021 Consolidated Unrestricted Funds Restricted Funds Pension Reserve Total Funds £ £ £ £ Fund balances at 31 March 2021 are represented by: Intangible fixed assets 428,556 0 0 428,556 Tangible fixed assets 2,919,076 1,320,254 0 4,239,330 Investments 4,116,349 0 0 4,116,349 Current assets 16,122,818 782,376 793,000 17,698,194 Current liabilities (3,174,161) 0 0 (3,174,161) Long Term liabilities 0 0 (1,101,000) (1,101,000) Total Net Assets 20,412,638 2,102,630 (308,000) 22,207,268 During the year designated funds had income of £Nil (2021: £Nil) and costs of £Nil (2021: £Nil). The balance of designated funds at 31 March 2022, relates to Employment Strategy projects, which were curtailed due to COVID restrictions in the year. |
Total Total Revaluation Designated General Excluding Pension Including Reserve Reserve Reserve Pension Reserve Reserve Pension Reserve £ £ £ £ £ £ 1,688,924 20,145 18,703,569 20,412,638 (308,000) 20,104,638 0 0 655,994 655,994 62,000 717,994 0 0 350,201 350,201 44,000 394,201 |
Total Total Revaluation Designated General Excluding Pension Including Reserve Reserve Reserve Pension Reserve Reserve Pension Reserve £ £ £ £ £ £ 1,688,924 20,145 18,703,569 20,412,638 (308,000) 20,104,638 0 0 655,994 655,994 62,000 717,994 0 0 350,201 350,201 44,000 394,201 |
|---|---|---|
| 1,688,924 20,145 19,709,764 21,418,833 (202,000) 21,216,833 |
||
| 1,688,924 20,145 18,703,569 20,412,638 (308,000) 20,104,638 |
||
| Unrestricted Funds Restricted Funds Pension Reserve Total Funds £ £ £ £ 461,551 0 0 461,551 3,451,880 1,285,713 0 4,737,593 9,659,057 0 0 9,659,057 13,478,300 391,755 667,000 14,537,055 (5,631,955) 0 0 (5,631,955) 0 0 (869,000) (869,000) |
||
| 21,418,833 1,677,468 (202,000) 22,894,301 |
||
| Unrestricted Funds Restricted Funds Pension Reserve Total Funds £ £ £ £ 428,556 0 0 428,556 2,919,076 1,320,254 0 4,239,330 4,116,349 0 0 4,116,349 16,122,818 782,376 793,000 17,698,194 (3,174,161) 0 0 (3,174,161) 0 0 (1,101,000) (1,101,000) |
||
| 20,412,638 2,102,630 (308,000) 22,207,268 |
15 Analysis of net assets between funds
17 Analysis of cash and cash equivalents
| Consolidated and Trust Net cash: Cash at bank and in hand |
2022 £ 7,717,534 |
2021 £ 11,590,674 |
|---|---|---|
The Trust acts as the custodian of bank accounts for a number of people it supports, in its cap a city as Trustee/Appointee for the individuals concerned. The total sum held for these individuals at 31 March was £1,397,310 (2021: £1,770,4 6 0). These assets are retained by the individuals concerned and do not form part of the Trust's results.
18 Analysis of changes in net debt
| Consolidated and Trust Cash |
1 April 2021 11,590,674 Cash flows On acquisition 31 March 2022 (3,873,140) 0 7,717,534 |
|---|---|
19 Retirement benefits
The Group participates in a number of pension schemes. The total pension operating cost for t h e Group was £1,523,469 (2021: £1,507,545). This figure includes £254,159 (2021: £245,293) of outstanding contributions at the balance she e t date.
a) Defined contributions scheme
i) The Trust operates a defined contribution (''money purchase'') pension scheme with Aegon. T h e contributions relating to each member (less investment and administrative expenses) are invested until retirement when the value of the m ember's accumulated investment account is available to purchase a pension under an annuity contract or take a cash option within HMRC limit s . The assets of the scheme are held separately from those of the trust in an independently administered fund. The pension costs charge which re p resents contributions payable by the Group to these schemes amounted to £303,916 (2021: £315,924).
ii) The company commenced pensions auto-enrolment on 1 September 2013 via the National Emplo y ment Savings Trust (NEST) defined contribution pension scheme. Employer contributions for the year were: £587,506 (2021: £523,145).
b) Defined benefit schemes
i) The Trust contributes to the NHS pension scheme which is a final salary scheme. The rate of e m ployer contributions is set with reference to a funding valuation undertaken by the scheme actuary. The last four-yearly valuation was undertaken as at 31 March 2020 and has set contribution rates until 1 April 2023. As the scheme is unfunded there can be no deficit or surplus to distribu t e on the wind-up of the scheme or withdrawal from the scheme. Brandon has no liability for other employers obligations to the multi-employer s c heme. As the scheme operates on a pay as you go basis there is no liability to recognise in respect of past service deficits.
The pension cost charge represents contributions payable by the fund net of recharges and amo u nted to £533,998 (2021: £551,492) (£563,078 actual contributions net of £29,080 from the Department of Health Funding).
The total fund balance of the Trust comprises the Consolidated fund of £22,894,301 (2021:£22,207,268), excluding the NHS restricted assets of £918,213 (2021:£952,754), which are replaced in the Trust by the Investment in the subsidiary of £1,125,459 (2021:£1,125,459) in arriving at the closing funds balance of £23,101,547 (2021:£22,379,973)
| 16 Reconciliation of net income and expenditure to net cash inflow/(outflow) from operating activities Net income Net (gain)/loss on investments FRS102 Pension (credit)/charge Depreciation of tangible assets Amortisation of intangible assets Fixed assets donated on acquisition Interest income Loss on disposal of fixed assets and assets held for resale (Increase)/Decrease in debtors Increase/(Decrease) in creditors within one year Net cash inflow from operating activities |
Group Trust Group 2022 2019 2021 £ £ £ 526,033 (2,826,550) 4,597,697 (542,607) (542,607) (806,308) 55,000 55,000 10,000 262,009 227,468 216,855 99,241 99,241 66,468 0 (386,275) 0 0 (10,709) 45,122 45,122 3,806 (838,001) (838,001) 492,069 2,457,794 2,457,794 (501,475) 2,064,591 (1,322,533) 3,682,128 |
|---|---|
-
ii) The Trust contributes to a further pension scheme providing benefits based on final pensionable pay, the Avon Fund, which is administered by Bath and North East Somerset Council. The Trust's involvement in the scheme commenced on 1 S eptember 2001. The assets of the scheme are held separately from those of the Trust and hence fuller disclosure under FRS102 is required. Th e amounts charged to the SOFA are the current service costs and gains and losses on settlements and curtailments. They are included as part of t h e staff costs. Contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was at 31 March 2016. The contributions payable by the group to the fund amounted to £34,141 (2021: £32,177). For actuari a l assumptions and composition of the scheme see page 78.
-
iii) The Trust contributes to a pension scheme providing benefits based on final pensionable pay, w hich is administered by Gloucestershire County Council. The assets of the scheme are held separately from those of the Trust and hence fuller dis c losure under FRS102 is required. The amounts charged to the SOFA are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was at 31 March 2016. The contributions payable by the group to the fund amounted to £8,662 (2021: £9,657). For actuarial assumptions and composition of the scheme see page 79.
-
iv) The Trust and formerly Odyssey Care Ltd makes contributions to the London Borough o f Southwark Pension Scheme. The employer's contributions are however set in relation to the current service period only, consequently the cont r ibutions have been accounted for as if it were a defined contribution scheme. The pension charge payable to the fund from the Trust amounted t o £30,916 (2021: £31,404).
Notes to the consolidated financial statements for the year ended 31 March 2022
Notes to the consolidated financial statements for the year ended 31 March 2022
19 Retirement Benefits (continued)
-
b) Defined benefit Schemes ( continued)
-
v) The Trust contributes to a further pension scheme providing benefits based on final pensionable pay, which is administered by Warwickshire County Council. The Trust's involvement in the scheme commenced on 1 September 2015. The pension liability remains attributable to Warwickshire County Council under the terms of the contract and as such the employs contributions are set in relation to the current service period only. As a result the contributions have been accounted for as if it were a defined contribution scheme. The pension charge payable to the fund from the Trust amounted to £24,330 (2021: £43,746).
Composition of the Avon Pension Fund Scheme
Consolidated and Trust
The Principal assumptions used in the calculation of the valuation of the plan assets and the present value of the defined benefit obligation include:
| of the defined benefit obligation include: | ||
|---|---|---|
| 2022 | 2021 | |
| Future salary increases | 4.8% | 4.2% |
| Future pension increases | 3.4% | 2.8% |
| Discount rate | 2.8% | 2.1% |
| Inflation assumption - CPI | 3.3% | 2.7% |
| The average life expectancy for a pensioner retiring at 65 on the reporting date is: | ||
| 2022 | 2021 | |
| male (female) future pensioner aged 65 | 24.6 (27.3) years | 24.8 (27.4) years |
| male (female) current pensioner aged 65 | 23.1 (25.3) years | 23.3 (25.4) years |
Amounts recognised in the statement of financial activities of the defined benefit schemes is as follows:
| 2022 £000s Current service cost (59) Past service cost - Net interest cost (16) Administration expenses (1) Pension cost recognised (76) 2022 £000s Changes in Benefit Obligation during period Benefit obligation at beginning of period 2,157 Current service cost 59 Interest on pensions liabilities 45 Member contributions 9 Past service cost 0 Remeasurements -Experience (Gain)/loss 3 -(Gain)/Loss on assumptions (61) Benefits/transfers paid (5) Benefit obligation at end of period 2,207 2022 £000s Changes in Plan Assets during the period Fair value of plan assets at beginning of period 1,364 Interest on plan assets 29 Remeasurements (assets) 109 Admin expenses (1) Employer contributions 35 Member contributions 9 Benefits/transfers paid (5) Fair value of plan assets at end of period 1,540 2022 £000s Actual Return on Plan Assets 138 The analysis of the scheme assets at the reporting date were as follows: 2022 % Equities 40.5 Government Bonds 12.4 Other Bonds 7.5 Property 6.7 Cash/Liquidity 1.6 Other 31.3 100.0 |
2021 £000s (59) - (13) (1) |
|---|---|
| (73) | |
| 2021 £000s 1,728 59 41 9 0 (14) 350 (5) |
|
| 2,168 | |
| 2021 £000s 1,130 28 171 (1) 32 9 (5) |
|
| 1,364 | |
| 2021 £000s 199 |
|
| 2021 % 37.5 14.1 8.5 3.8 2.9 33.2 |
|
| 100.0 |
19 Retirement Benefits (continued)
Composition of the Gloucestershire County Council Scheme
Consolidated and Trust
The Principal assumptions used in the calculation of the valuation of the plan assets and the present value of the defined benefit obligation include:
| 2022 | 2021 | |
|---|---|---|
| Salary increase rate | 3.50% | 3.15% |
| Pension/inflation increase rate | 3.20% | 2.85% |
| Discount rate | 2.7% | 2.0% |
| The average life expectancy for a pensioner retiring at 65 on the reporting date is: | ||
| 2022 | 2021 | |
| male (female) current pensioner aged 65 | 21.7 (24.1) years | 21.9 (24.3) years |
| male (female) future pensioner aged 65 | 22.6 (25.8) years | 22.9 (26.0) years |
| Amounts recognised in the statement of financial activities of the defined benefit schemes is as follows: | ||
| 2022 | 2021 | |
| £000s | £000s | |
| Current Service Cost | (17) | (15) |
| Past service cost | 0 | 0 |
| Net interest cost | (6) | (5) |
| Pension cost recognised | (23) | (20) |
| 2022 | 2021 | |
| £000s | £000s | |
| Changes in Benefit Obligation during period | ||
| Benefit obligation at beginning of period | 1,107 | 857 |
| Current service cost | 17 | 15 |
| Past service cost (including curtailments) | 0 | 0 |
| Interest on pensions liabilities | 22 | 20 |
| Member contributions | 2 | 2 |
| Benefits Paid | (20) | (30) |
| Remeasurement loss/(gain) on assumptions | (83) | 253 |
| Remeasurements (liabilities) - other experience | 2 | (10) |
| Benefit obligation at end of period | 1,047 | 1,107 |
| 2022 | 2021 | |
| Changes in Plan Assets during the period | £000s | £000s |
| Fair value of plan assets at beginning of period | 799 | 649 |
| Interest income on plan assets | 16 | 15 |
| Employer contributions | 9 | 10 |
| Member contributions | 2 | 2 |
| Benefits Paid | (20) | (30) |
| Remeasurements - return on assets excluding amounts shown in net interest | 39 | 153 |
| Fair value of plan assets at end of period | 845 | 799 |
| 2022 | 2021 | |
| £000s | £000s | |
| Actual (reduction)/Return on Plan Assets | 39 | (213) |
| The analysis of the scheme assets at the reporting date were as follows: | ||
| 2022 | 2021 | |
| % | % | |
| Equities | 71.0 | 70.0 |
| Government Bonds | 19.0 | 20.0 |
| Property | 9.0 | 7.0 |
| Cash/Liquidity | 1.0 | 3.0 |
| 100.0 | 100.0 |
Estimated Employer's contributions for the year to 31 March 2023 will be approximately £10,000.
Under the terms of the contract with Gloucestershire council, the Trust is liable for any deficit in the event of termination of the contract.
Estimated Employer's contributions for the year to 31 March 2023 will be approximately £35,000.
North Somerset Council has waived its right to recover a termination contribution if one were to arise at the end of the contract.
Notes to the consolidated financial statements for the year ended 31 March 2022
Notes to the consolidated financial statements for the year ended 31 March 2022
20 Financial commitments
At 31 March 2022 the Group total future minimum lease payments under non-cancellable operating leases was as follows:
| Consolidated and Trust Expiry date: Within one year Between two and five years In over five years |
2022 2021 2022 2021 £ £ £ £ 421,728 377,131 318,852 386,124 502,263 328,691 269,590 414,175 279,959 0 0 0 Land and buildings Other |
|---|---|
| 1,203,950 705,822 588,442 800,299 |
21 Capital commitments
Capital expenditure committed but not incurred at 31 March 2022 amounted to Nil (2021: £157,950).
22 Related Party Transactions
No related party transactions took place during the year (2021:£Nil).
23 Contingent Liabilities
Properties
Proceeds from the sale of certain properties held by Odyssey Care Limited and the Trust amounting to £1,285,713 (2021: £1,320,254) are repayable to NHS Property Services Limited upon the sale of these tangible fixed assets. This is secured by legal charge over the properties concerned.
24 Prior year primary statement comparatives by fund
| Notes Income Donations and Legacies Income from charitable activities: Fees for Accommodation with Care Services Fees for Work, Learning and Leisure Fees for Supported Living Services Income from other trading activities: Charity shop income Investment income Other income Total income Expenditure Expenditure on raising funds Charity shop expenditure Expenditure on charitable activities Accommodation with care Services Costs Work, Learning & Leisure Costs Fees for Supported Living Services Other expenditure in the deployment of grants and donations received Total expenditure 3 Net (loss) on investments 8 Net income/(expenditure) before other other gains and losses Transfers Between Funds Other Recognised Gains/(Losses) Pension schemes actuarial (loss) / gain 19 Remeasurement of reimbursement asset 19 Net movement in funds Balances brought forward at 1 April 2020 Balances carried forward at 31 March 2021 13/14 |
Unrestricted Unrestricted Funds Pensions Reserve Restricted Funds Total Funds 2021 £ £ £ £ 901,221 0 1,227,930 2,129,151 8,428,317 0 0 8,428,317 5,406,013 0 0 5,406,013 44,256,688 0 0 44,256,688 120,820 0 0 120,820 10,709 0 0 10,709 11,017 0 0 11,017 |
|---|---|
| 59,134,785 0 1,227,930 60,362,715 |
|
| 211,823 0 0 211,823 7,963,986 1,252 34,541 7,999,779 4,635,675 878 0 4,636,553 43,012,598 7,870 0 43,020,468 0 0 702,703 702,703 |
|
| 55,824,082 10,000 737,244 56,571,326 |
|
| 806,308 0 0 806,308 |
|
| 4,117,011 (10,000) 490,686 4,597,697 0 0 0 0 0 (255,000) 0 (255,000) 0 165,000 0 165,000 |
|
| 4,117,011 (100,000) 490,686 4,507,697 16,295,627 (208,000) 1,611,944 17,699,571 |
|
| 20,412,638 (308,000) 2,102,630 22,207,268 |
All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. The surplus for the year for Companies Act purposes comprises the net income for the year and was £4,597,697 (2020:£1,346,206).
Brandon exists to enable children, young people and adults with learning disabilities and autism to live life in the way they choose.
We do that by providing high-quality, individualised support that focusses on enabling people to achieve their dreams and truly live free.
t: 0117 907 7200
e: info@brandontrust.org w: brandontrust.org Registered Charity Number: 801571