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2022-03-31-accounts

Charity Registration No. 801967

Company Registration No. 02359751 (England and Wales)

PRAMACARE LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND AUDITED ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs N Lee
Mr N C Johnson
Mr R K Allam
Mr R J Pringle
Secretary Miss F C Tasdelen
Chief Executive Mr S M Robinson
Charity number 801967
Company number 02359751
Registered office Moran House
1 Holes Bay Park
Sterte Avenue West
Poole
Dorset
BH15 2AA
Auditors Saffery Champness LLP
Midland House
2 Poole Road
Bournemouth
BH2 5QY
Solicitors Lester Aldridge
Russell House
Oxford Road
Bournemouth
BH8 8EX
Investment advisors Evelyn Partners
25 Moorgate
London
EC2R 6AY
Bankers Barclays
Barclays House
1 Wimborne Road
Poole
BH15 2FQ
Santander
Charities Aid Foundation
CCLA Investment Management

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Trustees report 1 - 9
Statement of trustees' responsibilities 10
Independent auditor's report 11-14
Statement of financial activities 15
Statement of financial position 16
Statement of cash flows 17
Notes to the accounts 18 - 35

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The directors and trustees present their annual report and the financial statements for the year ended 31 March 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's Articles of Association, the Companies Act 2006 and 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 January 2015).

Legal Status

PramaCare is a charity and a company limited by guarantee. It is a wholly owned subsidiary of the Prama Foundation which appoints or removes the Trustees. The Chair of PramaCare must be a Prama Foundation Trustee. The work of PramaCare is core to the Christian mission of the Prama Foundation which has the objective of supporting people, primarily across Bournemouth, Christchurch and Poole, to live with dignity as they age.

Objectives and activities

The objects clause in the Company's Memorandum of Association states:

The relief of:

a) persons suffering from a physical or physiological infirmity or disability

b) older persons suffering financial hardship, sickness, poor health or social exclusion by reason of their age or ill health.

in ways that express Christian love and compassion in a practical way.

The company as a provider of personal care is subject to the Health and Social Care Act 2008 and is regulated by the Care Quality Commission (CQC).

Achievements and performance

2021/22 was the second year living and working under the pandemic. This was difficult for a staff team who had already given so much for so long, keeping our clients safe and cared for. That they continued to do this, whilst maintaining such high levels of professionalism, is testament to their commitment and genuine care for our clients. Virtually the entire care team engaged with the national mass vaccination programme knowing this was the best way to keep themselves and our clients safe. We cannot thank our staff team enough for their ongoing diligence and commitment.

PramaCare’s ethos follows the example of Jesus Christ, who showed care and love in a practical way. As a non-denominational Christian charity, Prama is committed to helping people, regardless of creed, culture, or beliefs. We understand that each person we support is an individual and we seek to provide compassionate support, giving dignity and respect.

During 2021/22 we delivered care and support to over 1,247 clients, ranging from domiciliary care, to nail care, to support for those with brain injury, and we used our resources to help people most in need.

We provided charitable subsidised care to 9 clients. A total of 3,016 hours with a value of £10,041.

Furthermore, through our Smile programmes we helped another 21 clients with additional support, at no cost to themselves. In total we provided another 466 hours through the Smile programmes at a value of £4,984.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (Continued)

PramaCare continued to support the NHS and BCP Council through the impact of the pandemic by participating in BCP Council's Rapid Response Scheme; specifically, by supporting patients being discharged from hospital. With the complications of the pandemic this was deeply challenging work, both practically and emotionally, and it is to the great credit of our staff that we supported 166 patients being discharged from local hospitals during 2021/22.

The annual client survey was not conducted during this financial year due to staff capacity to complete this task. However, we have continued to receive a number of compliments. These included:

“ Thank you to all the Carers for helping Dad stay at home. They do a tough job, stay cheerful and enable Dad to be comfortable. Please pass on my thanks.”

“ Thank you for all your care for Dad over the last few months, as you may be aware he died very peacefully and without fuss at home. He was so well cared for.”

One BCP rapid discharge client contacted us to say that she was “ very impressed” with our service and wanted to stay with us after her BCP funding ended.

On the passing of their 2nd parent, the family emailed to say, “Please pass on my and my brother’s thanks for all the care given our mother, and father before her.”

Prama was founded from the vision and passion of one man. Motivated by his faith and compassion, Dr Chris Moran saw a need and mobilised those around him. For 40 years, tens of thousands

of clients have benefitted from that vision and his passion is now our passion. Prama is determined to adapt to the needs of new generations, develop and grow new services and ultimately move closer to our vision where no-one is unfairly disadvantaged or excluded because of age or infirmity and where every person can enjoy life as they age.

As a Board we would like to take this opportunity of expressing our sincere gratitude to all the staff, volunteers, donors and supporters who have made this work possible during this year. The challenges facing older people in need of care and support in this country and in this region are huge but, with your continued support, we are making a difference.

Plans for the future

Our Mission is to enable those who live with vulnerability or isolation enjoy their independence, lead fulfilling lives, and fully contribute to society.

Our strategic objectives 2020-2025:

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Plans for the future (Continued)

In looking to the future our intention is to continue to

improve,

grow, develop and innovate.

As a charity we would love to be in the position where our care services were not needed and so, having spent some years building our sister charity, PramaLife, to develop “pre-care” support services, such as telephone and online chat lines to those living alone we want to see this integrated into the work of PramaCare so that we are the best model of inclusion and supporting our clients socially to complement the physical support already offered.

Our aims for 2022/23:

We will maximise the benefits arising from the changes to our Information Technology.

A significant change this year has been the introduction of an integrated digital care system, the equipping of our Care Workers with mobile phones linked to this system, and the resulting live monitoring of our care delivery. We also knew from client feedback that we could do better in notifying them about changes to our visiting times and like all organisations delivering complex services we do receive complaints. We respond openly and quickly to any issues; this is the most effective way of solving issues and valuing the concerns of our clients.

These changes have enabled us to:

This fully integrated system now unifies our Finance, Training and HR with our Care delivery, paving the way to continued improvements to an already excellent care support service.

We will maximise the benefits of working with our sister charity, PramaLife.

We are continuing to work with our colleagues in PramaLife in identifying opportunities in which we can support each other’s clients and share our skills and learning.

We will focus on the recruitment, retention, and efficiency of the staff team.

As the jobs market began to open up after the covid restriction of the year before, we saw a larger number of people leave us for jobs outside of the care sector. In addition, the wider economic environment has presented significant recruitment challenges and it has proved difficult to recruit to the levels seen in 2020/21.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Plans for the future (Continued)

In response, we grew our recruitment team, and added a ‘Pastoral Lead’ role to bring a greater stability and training capacity to our new starters. As a result our new starter retention rates during 2021/22 increased from 36% (Q1-Q3) to 68.8% (Q4).

Going forward we are continuing to review the offering to staff including developing the Pastoral Lead role to cover all staff. We are also aiming to reduce the amount of people on zero hours contract to maintain a more consistent workforce and as such we will only offer zero hour contracts to new starters as a last resort. In order to maximise the efficiency of the staff team we will meet with our care support staff to ensure that their working arrangements are optimised in terms of hours available to work.

Prama’s Charity Shops

During 2021/22 we saw a strong performance from our Charity shops, which are crucial in providing much needed funds to support our activities and help older adults and carers. This performance is even more impressive considering that we were coming out of the pandemic and lockdowns which had prevented us from having our shops open at the start of financial year.

Total income for the shops was £590,742 for 2021/22, producing a net suplus of £112,855: 19% of our income. The Charity retail association advised in 2019 that the aim for a charity shop should be a 15% surplus after all costs.

We have identified the following success factors which contribute to this strong performance:

We used the time during the various lockdowns to re-imagine our retail offer, utilising the skills of our staff team, including their understanding of pre-loved, vintage and antique items. As a result of this planning our retail offer is more diverse and more focused on the needs of the communities where the shops are based. By March 2022 we were operating shops in the following communities: Ashley Cross (which is our premium pre-loved shop), Boscombe, Kinson, Parkstone, Nuffield Estate (Poole) Warehouse, Tuckton, and West Moors. We had also decided to open a new shop in Blandford.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Financial review

The total income for the charity was £3,797,320 (2020/21: £3,966,084). The provision of care and support is the primary activity producing this income. Demand remains strong for Prama's services. While some clients decided to suspend their packages during the first wave of the pandemic, this enabled Prama to use available hours to support the NHS through the hospital discharge scheme which freed up scarce resources so that those suffering the greatest impact from Covid-19 could be treated in hospital.

The charity shops generate vital income to fund our non-care activities and support the expansion of the Prama Group. The development of new charity shops and the move into online sales and the continued generosity of supporters and former care clients through donations and legacies provided a welcome boost to our income.

The above factors resulted in an overall surplus for the year of £55,826 (2020/21: £246,188). The trustees are committed to sustaining a position where income from domiciliary care covers all related costs, and other income from fundraising and trading enables the expansion of other charitable activities throughout the Prama Group.

Results

The results for the year, the state of the charity's affairs and transfers between the restricted and unrestricted funds are shown in the attached financial statements.

Fundraising

In the year the Company received or was notified of legacies amounting to £13,491 (2020/21: £64,828) and grants and donations of £10,620 (2020/21: £40,821).

Investments

The company has an investment portfolio held by Evelyn Partners. As at 31 March 2022 the investment portfolio was valued at £157,165 (2020/21: £151,010).

The trustees' policy is to invest as much cash as is not needed for current working requirements with Evelyn Partners and allow the fund managers to choose investments for a balanced return with medium risk. There is no specific limitation for social, environmental or ethical investment purposes however the trustees have confirmed during 2021/22 that the nature of the investments held is consistent with the nature and purpose of PramaCare.

Reserves policy

The charity's unrestricted and undesignated funds amount to £548,745 (2020/21: £469,515). The trustees monitor the level of reserves on a regular basis throughout the year and set a target level, appropriate to the charity's current position and future plans. The ongoing requirement for reserves is to provide for the long term need for working capital, caused mainly by the monthly cycle of collecting invoiced charges for care after the staff have been paid for its delivery, and also to provide for short term fluctuations in income from trading, investments and other donations and grants. Following a full review of the reserves policy during 2020/21 the trustees considered it prudent to maintain a minimum reserve of £475,000 in this respect.

The difference between reserves held and the level of reserves as set out in the policy has been considered during the 2022/23 budget setting process and after consideration of the challenging conditions facing PramaCare during 2022/23 it was determined that retaining a higher level of reserves in the short-term was appropriate mitigation for this risk.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Reserves policy (Continued)

Note 25 to the accounts identifies those funds that can only be realised through the sale of tangible fixed assets and investments. The value of free reserves (the total of unrestricted and undesignated funds less functional assets) at 31 March 2022 amounted to £527,026 (2020/21: £436,529).

Fixed assets

Full details of movements in tangible fixed assets are set out in note 17 to the financial statements.

Sources of funding

As mentioned above, the bulk of income for the charity is produced from its charitable activity of providing care and support as part of meeting its objectives. This income is derived primarily from private clients using their own funds or allocated Direct Payments from Local Authority support. We have a small proportion of work contracted directly by Local Authorities and Clinical Commissioning groups. We also continued to receive significant income through our involvement with the hospital discharge scheme under contract with Bournemouth, Christchurch and Poole Council.

Voluntary income includes those funds generated from general charitable donations and legacies as mentioned above. The shops also produce an income for the charity as part of their fundraising activities.

Fundraising

PramaCare undertakes its own fundraising activities and does not use the services of a professional fundraiser or commercial participator. In doing so it provides information to individuals who express an interest in donating to the charity or leaving a legacy but it does not directly canvass individuals for fundraising purposes. The charity has not at this time signed up to a voluntary fundraising regulation scheme or standard.

During 2021/22, no complaints were received in respect of the charity's fundraising activities.

Expenditure

The majority of expenditure incurred is wages and travel costs for the care team and the care support workers in connection with the charity's objectives and its charitable activity of providing care and support.

Governance and administrative costs are incurred in support of the charity's primary role including the management team, finance and HR departments for example and for the charity to adhere to relevant laws and regulations.

Remuneration policy

None of the trustees receives any remuneration. The remuneration of the chief executive is set by the trustees, and other members of the senior management team by the chief executive, having regard to market rates, experience needed and the degree of responsibility held.

The chief executive officer's total remuneration and benefits were between £80,000 - £90,000. No other staff received total remuneration and benefits in excess of £60,000. The total remuneration and benefits of the senior management team amounted to £194,841 (2020/21: £198,637).

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Employee involvement

The charity operates a Joint Consultative Committee which is attended by elected members of staff from different areas of the organisation, the Chief Executive officer and a trustee. This forum is used formally as a means of consultation and dissemination of information and meets three times per year.

The charity seeks to give full and fair consideration to all applications for employment made to the charity by people living with disability and make efforts in respect of the continuing employment and training of employees who may become disabled while employed by the company. The charity seeks to introduce, maintain and develop arrangements involving employees, providing systematic relevant information, undertaking regular employee consultation and providing necessary training and career development to all staff members.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 10th March 1989. It was registered as a charity with the Charity Commission on 20 December 1989. The company was formed under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Under the terms of the Memorandum of Association each member of the company guarantees to contribute £1 towards the assets of the company in the event of it being wound up while he/she is a member, and towards the costs, charges and expenses of winding up.

None of the trustees have any beneficial interest in the company.

The trustees, who are also directors for the purpose of company law, and who served during the year were: Mrs N Lee

Mr N C Johnson Mr R Allam Mr J Pringle

Prama Foundation is the ultimate parent undertaking of PramaCare and has a board of directors which receives recommendations and information from four sub-committees focussing on:

The chair of each committee is held by a director of Prama Foundation and these make recommendations to the full Board of The Prama Foundation.

The directors, who are also charity trustees, establish policies that are then implemented by the chief executive officer (CEO) who is responsible for the employment of staff that carry out the objectives of the company.

New director/trustees are appointed following a review of skills by a nominations sub-committee. Each trustee elected meets with the CEO and then observes a board or sub-committee meeting before final decisions are taken on appointment. The nominations sub-committee report to the board. Persons considered to be able to offer particular expertise to the charity are given a Trustee Handbook and Strategic Plan and meet with the CEO to receive a full explanation of the purposes, ethos and practices of PramaCare before being invited to serve on the board.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (Continued)

In PramaCare the Head of Care & Business Development holds the legal position of 'Nominated Individual', with a 'Registered Manager' taking responsibility for the delivery of care activities, as required by Care Quality Commission regulations. The Head of Care supervises the Registered Manager who, with her Locality Care Managers, are responsible for assessing the appropriate care and support required by the clients referred to the charity. They are also responsible for the management of Care Support Workers and ensuring that calls are scheduled and carried out appropriately.

A number of staff are also appointed to deliver non-regulated services. These include support to Carers, specific projects for people with dementia, and community based development work. These provide clear evidence of PramaCare's charitable benefit.

Day to day management of the charity is delegated to the CEO - Mr S Robinson, who leads the Senior Management Team.

Risk assessment

Identification and reporting of risk is a standing item at each of the sub-committees. A risk register is maintained to focus on specific areas of the organisation's activities and is reported to The Prama Foundation board on a regular basis. The Estates Manager is designated as Health and Safety officer.

The principal risks of the business relate to;

a) The global Covid-19 pandemic: PramaCare had added a pandemic to its risk register in 2019. Even though we did not anticipate the full impact of the pandemic this early decision enabled us to implement a range of plans to mitigate its impact, including the use of Personal Protection Equipment, infection control, remote working and the challenges of staff/volunteers needing to isolate.

b) Recruiting sufficient care staff to meet demand: As we come out of the pandemic we have been challenged to find that issues such as “long COVID” and delayed NHS referrals have created considerable additional demand for our care work. In order to address the challenge of recruiting and retaining good staff to meet this need we have recently created the new position of “Pastoral Support” for our teams in their first months in a new role

c) Maintaining a favourable rating with the Care Quality Commission. PramaCare is committed to achieving high standards in the delivery of care and currently has a 'Good' rating across the board with 'Outstanding' for care, having been reconfirmed in the latest inspection in 2019.

d) Maintaining good governance: In common with many other charities it is challenging to find skilled and committed individuals to act as charity Trustees in an increasingly complex corporate environment and where the time required to exercise good governance is considerable. In 2016 we adopted the principles of best practice as recommended within the sector based on the Nolan Principles for public life and introduced robust standing orders to govern day to day business.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Public Benefit

The trustees have given due regard to public Benefit when planning the charity's activities, in accordance with sections G2 and G3 of the Charity Commission's General Guidance on Public benefit (January 2010).

The paragraphs in this report set out our activities, achievements, and performance during the year, which are directly related to the objects and purposes for which the charity exists. The charity achieves its principal objects and purposes through care to any members of the public in the local community who have needs arising from a physical or psychological infirmity. These benefits are directly related to the aims of the charity and are fully compliant with Principles 1 and 2 of the Charity Commission Principles on Public Benefit.

Auditors

Saffery Champness LLP are auditors to the charity and in accordance with Section 485 of the Companies Act 2006 the trustees will propose a motion re-appointing the auditors at their annual general meeting.

Disclosure of information to auditors

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

On behalf of the board of trustees

Mrs N Lee, Chair

5th October 2022

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees, who are also directors of PramaCare (Charitable Company Limited by Guarantee) for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT

TO THE TRUSTEES OF PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

Opinion

We have audited the financial statements of PramaCare for the year ended 31 March 2022 which comprise Statement of Financial Activities, Statement of Financial Position, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report .

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 10, the trustees (who are also 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 to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

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

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.

Further the charity is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, through significant fine, litigation or restrictions on the charity’s operations. We identified the most significant laws and regulations to be those issued by the Care Quality Commission.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

Use of our report

This report is made solely to the charitable company’s members and the trustees, 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, the charitable company’s members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Fernyhough (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP Chartered Accountants Midland House 2 Poole Road Bournemouth BH2 5QY

Statutory Auditors

Date: 16 November 2022

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Unrestricted Restricted Total Total
Funds Funds Funds 2022 2021
general designated
Notes £ £ £ £ £
Income and Endowments from:
Donations and legacies 3 139,113 - - 139,113 315,424
Charitable activities 4 3,053,813 - - 3,053,813 3,229,871
Other trading activities 5 590,742 - - 590,742 414,239
Investments 6 1,787 - - 1,787 1,635
Other income 7 11,865 - - 11,865 4,915
-------------- -------------- -------------- -------------- --------------
Total income and endowments 3,797,320 - - 3,797,320 3,966,084
Expenditure on:
Raising funds 8 493,214 - - 493,214 367,098
Charitable activities 9 3,224,395 29,561 - 3,253,956 3,376,048
-------------- -------------- -------------- -------------- --------------
Total expenditure 3,717,609 29,561 - 3,747,170 3,743,146
-------------- -------------- -------------- -------------- --------------
Net income / (expenditure) from activities 79,711 (29,561) - 50,150 222,938
Net gains on investments 14 5,676 - - 5,676 23,251
-------------- -------------- -------------- -------------- --------------
Net income / (expenditure) before transfers 85,387 (29,561) - 55,826 246,189
Transfers between funds (6,157) 6,157 - - -
-------------- -------------- -------------- -------------- --------------
Net movement in funds 79,230 (23,404) - 55,826 246,189
Fund balances at 1 April 2021 469,515 590,013 9,195 1,068,723 822,534
-------------- -------------- -------------- -------------- --------------
Fund balances at 31 March 2022 548,745 566,609 9,195 1,124,549 1,068,723
-------------- -------------- -------------- -------------- --------------

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2022

2022 2021
Notes £ £ £ £
Fixed Assets
Property, Plant and Equipment 17 567,891 598,614
Investments 18 157,165 151,010
-------------- --------------
725,056 749,624
Current assets
Inventories 20 6,243 4,500
Trade and other receivables 21 529,882 399,045
Cash at bank and in hand 380,058 598,556
-------------- --------------
916,183 1,002,101
Current liabilities 23 (516,690) (683,002)
-------------- --------------
Net current assets 399,494 319,099
-------------- --------------
Total assets less current liabilities 1,124,549 1,068,723
-------------- --------------
Income funds 25
Restricted funds 9,195 9,195
Unrestricted funds:
Designated funds 566,609 590,013
Other charitable funds 548,745 469,515
-------------- 1,115,354 -------------- 1,059,528
-------------- --------------
1,124,549 1,068,723
-------------- --------------

The accounts were approved by the Trustees on 5th October 2022

Mrs N Lee, Chair

Company Registration No. 02359751

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
£ £ £ £
Cash flows from operating activities:
Cash (absorbed)/generated by operations (Note 31) (216,209) 505,025
Cash flows from investing activities
Dividends and interest received 1,787 1,635
Proceeds from the sale of property, plant and equipment - 7,900
Purchase of equipment (4,076) (11,406)
Purchase of investments - (5,721)
-------------- --------------
Net cash (used in) investing activities (2,289) (7,592)
-------------- --------------
Change in cash and cash equivalents in the reporting period (218,498) 497,433
Cash and cash equivalents at 1st April 2021 598,556 101,123
-------------- --------------
Cash and cash equivalents 31st March 2022 380,058 598,556
-------------- --------------

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Company information

PramaCare (Charitable Company Limited by Guarantee) is a private company limited by guarantee incorporated in England and Wales. The registered office is Moran House, 1 Holes Bay Park, Sterte Avenue West, Poole, Dorset BH15 2AA.

1.1 Accounting convention

These accounts have been prepared in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102'), 'Accounting and Reporting by Charities' the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019. The charity is a public benefit entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the accounts, the trustees having considered all known factors including Covid-19 and have reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. There are no material uncertainties about the charity's ability to continue and thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

Endowment funds comprise funds which are retained for the benefit of the charity as a capital fund.

Where the trustees have a power to convert endowed capital into income, these funds are expendable endowments.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that the income will be received.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Accounting policies

(Continued)

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known the legacy is treated as a contingent asset.

Gifts in kind and donated facilities are recognised as income, if a value can be reliably measured, at the value to the charity when received. In accordance with the Charities SORP (FRS 102), no amounts are included in the financial statements for services donated by volunteers, including professional services provided directly by volunteers.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

1.5 Resources expended

Expenditure is recognised on an accruals basis. Expenditure has been allocated according to the Statement of Recommended Practice 'Accounting and Reporting by Charities'.

Resources expended attributable to each of raising of funds and charitable activities are allocated to cost categories for each. Where expenses are attributable to more than one of these, the cost category is split on the basis of estimates by the charity's management. Wages are apportioned based on employees' roles and time spent.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost, and subsequently measured at cost, net of depreciation and any impairment losses.

Items are capitalised when their individual value is greater than £500.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land is not depreciated Freehold buildings Over 15 years straight line Leasehold property Over 50 years straight line, or if the term of lease or option to break is less, over the remaining term or period to the break date Shop fixtures and fittings 20% straight line basis Furniture and equipment 15% reducing balance basis Motor vehicles 25% reducing balance basis Computer equipment 33% straight line basis

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Accounting policies

(Continued)

1.7 Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value. Unrealised gains and losses are calculated as the difference between the fair value at the year end and the carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. Transaction costs are expensed as incurred. Investments in subsidiaries are valued at cost less provision for impairment.

1.8 Impairment of non-current assets

At each reporting end date the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

1.9 Inventories

Inventories are stated at the lower of cost, on a first in first out basis, and estimated selling price less costs to complete and sell.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classifies as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in net income/(expenditure) for the year.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Concessionary loans are initially recognised at the amount received. Subsequently the loans are adjusted for any applicable repayments or interest.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the asset's fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charity's accounting policies the trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. On 23 June 2021, the trustee of the Prama Foundation considered the extant approach to capitalising assets. It was decided that the existing policy of a limit of £250 below which items are not capitalised

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

3 Donations and legacies Unrestricted Total Total
Funds 2022 2021
£ £ £
Donations and gifts 10,620 10,620 40,821
Legacies receivable 13,491 13,491 64,828
Grants from Government 115,002 115,002 209,775
-------------- -------------- --------------
139,113 139,113 315,424
-------------- -------------- --------------

All of the income detailed above in both 2021/22 and the comparative year, 2020/21, was unrestricted

4 Charitable activities Unrestricted Total Total
£ £ £
Provision of private care 2,768,775 2,768,775 2,909,913
Local Authorities 285,038 285,038 319,958
-------------- -------------- --------------
3,053,813 3,053,813 3,229,871
-------------- -------------- --------------

All of the income detailed above in both 2021/22 and the comparative year, 2020/21, was unrestricted

5 Other trading activities Unrestricted Total Total
Funds 2022 2021
£ £ £
Charity shops and income from activities and events 559,662 559,662 100,906
Grants from Government in respect of trading activities 31,080 31,080 313,333
-------------- -------------- --------------
590,742 590,742 414,239
-------------- -------------- --------------

All of the income detailed above in both 2021/22 and the comparative year, 2020/21, was unrestricted

6 Investments Unrestricted Total Total
funds 2022 2021
£ £ £
Income from listed investments 1,333 1,333 1,150
Interest receivable 454 454 485
-------------- -------------- --------------
1,787 1,787 1,635
-------------- -------------- --------------
All of the income detailed above in both 2021/22 and the comparative year, 2020/21, was unrestricted
7 Other income Unrestricted Total Total
Funds 2022 2021
£ £ £
Other income 11,865 11,865 4,915
-------------- -------------- --------------

All of the income detailed above in both 2021/22 and the comparative year, 2020/21, was unrestricted

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

8 Raising funds
2022 2021
£ £
Fundraising and publicity
Staff costs 16,460 10,465
Other fundraising costs 2,580 7,786
-------------- --------------
19,040 18,251
-------------- --------------
Fundraising trading: costs of goods sold and other costs
Operating charity shops 242,097 167,183
Staff costs 232,077 181,664
-------------- --------------
474,174 348,847
-------------- --------------
Total 493,214 367,098
-------------- --------------
All of the income detailed above in both 2021/22 and the comparative year, 2020/21, was unrestricted
9 Charitable activities 2022 2021
£ £
Staff costs - care services 2,091,430 2,192,022
Staff travel and expenses - care services 200,924 205,364
Telephone - care services 33,200 28,499
Medical supplies and equipment 3,992 38,255
Bad debts 5,681 3,049
Charitable client benefits 122 630
Care subsidy scheme 10,041 14,514
Staff costs - outreach 4,984 4,142
Staff expenses - outreach - 31
Bus Service Expenses - 505
Funds donated to group companies 181,977 148,052
-------------- --------------
2,532,351 2,635,063
Support costs (note 10) 705,768 726,123
Governance costs (note 11) 15,837 14,862
-------------- --------------
3,253,956 3,376,048
-------------- --------------
Analysis by fund
Unrestricted funds - general 3,224,395 3,375,918
Unrestricted funds - designated 29,561 -
Restricted funds - 130
-------------- --------------
3,253,956 3,376,048
-------------- --------------

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

10 Support costs
2022 2021
£ £
Staff costs - management and administration 287,866 345,843
Travel costs - management and administration 1,190 2,174
Rent 15,914 11,742
Heat, light & water 7,684 7,190
Property repairs and maintenance 14,977 15,542
Equipment repairs and maintenance 15,191 33,332
Insurance 18,392 16,598
Miscellaneous expenses 192 45,049
Computer expenses 79,839 71,004
Printing, postage and stationery 37,830 37,081
Advertising 41,811 5,938
Archive storage 3,267 3,173
Telephone 11,067 9,500
Professional fees 18,540 18,148
Staff - other costs 35,201 20,367
Staff costs - training (1,034) 32,428
Expenses - training 9,274 13,532
Training Services 73,767 -
Depreciation 34,800 36,841
Loss on disposal of fixed assets - 641
-------------- --------------
705,768 726,123
-------------- --------------
11 Governance costs
2022 2021
£ £
Audit fees 10,268 9,504
Bank charges and interest 5,422 4,877
Legal and professional 147 481
-------------- --------------
15,837 14,862
-------------- --------------

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits. No trustees received any expenses during the year (2020/21: £0).

13 Employees

The average weekly number of employees during the year was:

2022 2021 2022 2021
Headcount Headcount Full time Full time
equivalent equivalent
Direct charitable activities 144 169 59 63
Charity shops 17 19 11 9
Management & administration 38 41 32 31
-------------- -------------- -------------- --------------
199 229 101 103
-------------- -------------- -------------- --------------
Employment costs
2022 2021
£ £
Wages and salaries 2,444,060 2,595,810
Social security costs 139,833 126,359
Pension costs 46,077 43,522
-------------- --------------
2,629,970 2,765,691
-------------- --------------
The number of employees whose annual remuneration was
£60,000 or more were: 2022 2021
number number
£80,000 - £90,000 1 -
£70,000 - £80,000 - 1
-------------- --------------

Contributions totalling £3,901 (2020/21: £3,751) were made to defined contribution pension schemes on behalf of employees whose emoluments exceeded £60,000.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

14 Net gains on investments Net gains on investments
Unrestricted Total Total
funds 2022 2021
general
£ £ £
5,676 5,676 23,251
-------------- -------------- --------------
5,676 5,676 23,251
-------------- -------------- --------------
15 Net income from activities £ £
Net income from activities is stated after charging:
Depreciation 34,800 36,841
Auditors remuneration - audit (current year) 10,000 9,752
- audit (prior years) 268 (248)
-------------- --------------

16 Taxation

The company is exempt from taxation due to its charitable status.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

17 Property, Plant and Equipment

Freehold Computer Leasehold Leasehold Shop Furniture Motor Total
property equipment property property fixtures & and vehicles
and & software long term short term fittings equipment
£ £ £ £ £ £
Cost
At 1 April 2021 765,946 45,857 62,043 27,022 24,983 44,191 8,615 978,657
Additions 2,066 636 - 1,374 - - - 4,076
Disposals - - - (14,005) - - - (14,005)
-------------- -------------- -------------- -------------- -------------- ---------------------------- --------------
At 31 March 768,012 46,493 62,043 14,391 24,983 44,191 8,615 968,728
2022 -------------- -------------- -------------- -------------- -------------- ---------------------------- --------------
Depreciation
At 1 April 2021 239,488 38,496 22,872 19,124 24,857 29,619 5,587 380,043
Charged 20,284 5,654 1,240 4,552 126 2,186 758 34,800
Disposals - - - (14,006) - - - (14,006)
-------------- -------------- -------------- -------------- ------------- -------------- ------------- --------------
At 31 March 259,772 44,150 24,112 9,670 24,983 31,805 6,345 400,837
2022 -------------- -------------- -------------- -------------- -------------- ---------------------------- --------------
Net book value
31 March 2022 508,240 2,343 37,931 4,721 - 12,386 2,270 567,891
-------------- -------------- -------------- -------------- -------------- ---------------------------- --------------
31 March 2021 526,458 7,361 39,171 7,898 126 14,572 3,028 598,614
-------------- -------------- -------------- -------------- -------------- ---------------------------- --------------

The carrying value of land included in freehold property at 31 March 2022 and 31 March 2021 was £258,941

The trustees have assessed the value in use of the property to the charity as being the carrying value.

Commitments:

There were no capital commitments at 31st March 2022 (2020/21: £nil).

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

18 Investments
2022 2021
£ £
Unit Trusts and Bonds 115,332 109,958
Listed Securities 32,532 32,230
Cash 8,923 8,444
Santander shares 377 377
Investments in subsidiaries 1 1
-------------- --------------
157,165 151,010
-------------- --------------

Fixed asset investments revalued

All investments are carried at fair value. Investments in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in unit trusts are at bid price.

The investments are held to provide a medium risk return for the charity whilst maintaining capital value. The portfolio is managed by specialists and covers a spread of sectors in order to minimise the impact of fluctuations in markets globally.

Shares in group Listed
Movements in non-current investments undertakings investments
Market value at 1 April 2021 1 151,010
Income accumulations - 43
Change in value in the year - 5,633
Net movement in cash - 479
-------------- --------------
Market value at 31 March 2022 1 157,165
-------------- --------------
Carrying amount
At 31 March 2022 1 157,165
At 31 March 2021 1 151,010
-------------- --------------
Historical cost
At 31 March 2022 1 104,214
At 31 March 2021 1 103,695
-------------- --------------

Net cash released from investments in the year was £nil (2020/21: £nil)

The significance of financial instruments to the ongoing sustainability of the charity is considered in the trustees' report.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

19 Financial instruments 2022 2021
£ £
Carrying amount of financial assets
Instruments carried at fair value through profit and loss 157,165 151,010
-------------- --------------
20 Inventories 2022 2021
£ £
Finished goods and goods for resale 6,243 4,500
-------------- --------------
21 Trade and other receivables 2022 2021
£ £
Amounts falling due within one year:
Trade receivables 398,996 88,702
Other receivables 20,367 65,574
Prepayments and accrued income 90,504 207,599
Amounts owed by group undertakings 35,399 37,170
Write out of provision for amounts repaid by group undertakings (15,384) -
-------------- --------------
529,882 399,045
-------------- --------------
22 Borrowings 2022 2021
£ £
Concessionary loan payable within one year 250,000 250,000
-------------- --------------

The loan of £250,000 from the Valentine Charitable Trust has no set repayment date. There is no interest payable during the term of the loan and there are no instalments due. Repayment will be the greater of £250,000 or 41.67% of the value of the property at the time of repayment.

The concessionary loan is secured against the freehold property.

23 Current liabilities 2022 2021
£ £
Borrowings (Note 22) 250,000 250,000
Trade payables 52,265 164,322
Taxes and Social Security costs 43,181 37,051
Other payables 52,067 44,205
Accruals 114,347 160,449
Amounts owed to group undertakings 4,830 26,975
-------------- --------------
516,690 683,002
-------------- --------------

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

24 Pension

Pension
The company operates a defined contribution scheme. 2022 2021
£ £
Contributions paid in year 46,077 43,522
-------------- --------------

The contributions are all attributed to the main activity, being the provision of care, and are allocated to unrestricted funds.

25 Analysis of funds

2020/21 - Prior Year Comparative

Movement in funds Movement in funds
Balance at Income in Expenditure Gain on Transfers Balance at
1.4.2020 year in year investments 31.3.2021
£ £ £ £ £ £
Income Funds
Designated funds
Fixed asset fund 335,152 - - - (19,524) 315,628
Mortgage repayment fund 198,852 - - - 25,533 224,385
Digitisation of Care fund - - - - 50,000 50,000
-------------- -------------- -------------- -------------- -------------- --------------
534,004 - - - 56,009 590,013
-------------- -------------- -------------- -------------- -------------- --------------
General funds
Unrestricted funds 279,205 3,966,084 (3,743,016) 23,251 (56,009) 469,515
-------------- -------------- -------------- -------------- -------------- --------------
Restricted funds
End of life 8,485 - - - - 8,485
Registered Managers Network 840 - (130) - - 710
-------------- -------------- -------------- -------------- -------------- --------------
9,325 - (130) - - 9,195
-------------- -------------- -------------- -------------- -------------- --------------
Total funds 822,534 3,966,084 (3,743,146) 23,251 - 1,068,723
-------------- -------------- -------------- -------------- -------------- --------------

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

25 (Continued)

Movement in funds
Balance at Income in Expenditure Gain on Transfers Balance at
1.4.2021 year in year investments 31.3.2022
Income Funds
Designated funds
Fixed asset fund 315,628 - - - (19,458) 296,170
Mortgage repayment fund 224,385 - - - 25,615 250,000
Digitisation of Care fund 50,000 - (29,561) - 20,439
-------------- -------------- -------------- -------------- -------------- --------------
590,013 - (29,561) - 6,157 566,609
-------------- -------------- -------------- -------------- -------------- --------------
Unrestricted funds 469,515 3,797,320 (3,717,609) 5,676 (6,157) 548,745
-------------- -------------- -------------- -------------- -------------- --------------
Restricted funds
End of life 8,485 - - - - 8,485
Registered Managers Network 710 - - - - 710
-------------- -------------- -------------- -------------- ------------- --------------
9,195 - - - - 9,195
-------------- -------------- -------------- -------------- -------------- --------------
Total funds 1,068,723 3,797,320 (3,747,170) 5,676 - 1,124,549
-------------- -------------- -------------- -------------- -------------- --------------

Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees to ensure that the charity has adequate funding for future requirements: a) Fixed Asset Fund

An amount equal to the net book value of freehold and long term leasehold assets less the long term funding of PramaCare's freehold property. The transfer from general funds during the year accounts for the net additions to fixed assets less the depreciation charged.

b) Mortgage repayment fund

An amount set aside to provide the funds necessary to repay the long term funding of the charity's freehold property. An amount is being transferred from general funds each year to build up a fund of £250,000 by 31st March 2022. c) Digitisation of Care Fund

An amount set aside to provide the funds necessary to cover the set up costs of the Digitisation of Care project.

Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes.

The purposes for which the restricted funds are held are as follows:

a) End of life provides specialist training for staff supporting clients who are approaching their final days. b) Registered Managers network - this fund is used to provide coordination of a peer network amongst Registered Care Managers in Dorset.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

26 Analysis of net assets between funds

2020/21 - Prior Year Comparative

2020/21 - Prior Year Comparative
Unrestricted Designated Restricted Total Total
funds funds funds 2021 2020
£ £ £ £ £
Fund balances at 31 March 2021
are represented by:
Tangible fixed assets 32,986 565,628 - 598,614 633,566
Investments - 151,010 - 151,010 127,107
Current assets 869,531 123,375 9,195 1,002,101 673,082
Creditors (amounts falling due (433,002) (250,000) - (683,002) (611,221)
within one year)
-------------- -------------- -------------- -------------- --------------
469,515 590,013 9,195 1,068,723 822,534
-------------- -------------- -------------- -------------- --------------
2021/22 - Current Year
Unrestricted Designated Restricted Total Total
funds funds funds 2022 2021
£ £ £ £ £
Fund balances at 31 March 2022
are represented by:
Tangible fixed assets 21,721 546,170 - 567,891 598,614
Investments - 157,165 - 157,165 151,010
Current assets 793,714 113,274 9,195 916,183 1,002,101
Creditors (amounts falling due (266,690) (250,000) - (516,690) (683,002)
within one year)
-------------- -------------- -------------- -------------- --------------
548,745 566,609 9,195 1,124,549 1,068,723
-------------- -------------- -------------- -------------- --------------

27 Contingent liabilities

The charity has an obligation to repay the loan from the Valentine Charitable Trust (note 22) at the higher of £250,000 or 41.67% of the value of the property, Moran House, 1 Holes Bay Park, Sterte Avenue West, Poole. In view of additional expenditure on the property by the charity, the trustees of the Valentine Charitable Trust have agreed to review the percentage payable in light of advice from professional valuers before repayment.

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

28 Commitments under operating leases

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Land and Other Total Total
buildings equipment 2022 2021
£ £
Within one year 84,825 39,821 124,646 119,195
Between two and five years 79,683 27,292 106,976 99,376
5 years + 5,800 - 5,800 5,900
-------------- -------------- -------------- --------------
170,308 67,114 237,422 224,471
Lease payments recognised as an expense in the accounts 169,906 140,121
-------------- --------------

29 Related parties

Control

Throughout the year, PramaCare was ultimately controlled by its sole member Prama Foundation who has power to appoint and remove its board of directors. The Board of Directors and Trustees appointed by the member governs the affairs of the charitable company between Annual General Meetings.

Prama Foundation is the ultimate parent undertaking of the largest and smallest group of undertakings for which the group accounts are presented, and has included the company in its group accounts, copies of which may be obtained from its registered office at Moran House, 1 Holes Bay Park, Sterte Avenue West, Poole BH15 2AA.

The principal purposes of Prama Foundation are the advancement of physical, mental and spiritual health through the provision of care, facilities, services, support and practical advice, to relieve financial hardship amongst older people and people of any age suffering from a physical or mental illness or disability.

Transactions

During the year no related party transactions occurred. Other transactions with the trustees are set out in note 12.

The total remuneration and benefits of the Senior Management Team amounted to £194,841 (2020/21: £198,637).

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

30 Subsidiaries

Details of the charity's subsidiaries at 31st March 2022 are as follows:

Name of Registered Nature of Class of % held
undertaking office business shares held
Abba Care Limited Moran House Dormant Ordinary 100 Direct
1 Holes Bay Park
Sterte Avenue West
Poole Dorset
BH15 2AA
31 Cash (absorbed) / generated by operations 2022 2021
£ £
Net surplus for the year (as per the statement of financial activities) 55,826 246,189
Adjustments for:
Depreciation charges 34,800 36,841
Loss on disposal of property, plant and equipment - 1,616
Gains on investments (5,676) (23,251)
Dividends and interest (1,787) (1,635)
Movements in working capital:
(Increase) in stock (1,743) -
(Increase)/Decrease in debtors (130,838) 168,414
(Increase)/Decrease in cash with investment managers (479) 5,070
(Decrease)/Increase in creditors (166,312) 71,781
-------------- --------------
Cash (absorbed)/generated by operations (216,209) 505,024
-------------- --------------

32 Analysis of changes in net debt

2020/21 - Prior Year Comparative

At At
1 April Other non- 31 March
2020 Cash flows cash changes 2021
£ £ £ £
Cash 101,123 497,433 - 598,556
Loans due within 1 year (250,000) - - (250,000)
-------------- -------------- -------------- --------------
(148,877) 497,433 - 348,556
-------------- -------------- -------------- --------------

PRAMACARE (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

32 Analysis of changes in net debt (Continued)

2021/22 - Current Year

2021/22 - Current Year
At Other non-cash At
1 April 2021 Cash flows changes 31 March 2022
£ £ £ £
Cash 598,556 (218,498) - 380,058
Loans due within one year (250,000) - - (250,000)
-------------- -------------- -------------- --------------
348,556 (218,498) - 130,058
-------------- -------------- -------------- --------------