Trustee Activity within Outlook House April 2021-2022
Trustees have been strengthen by the added skills of Richard Miles with Expertise in Contracts , Utilities and Phone Contracts.
Angelo De Pol, Finance, Strategic Money Management and Cash Flow Management.
Stephen Minall is acting Chair at this time.
Trustees have held a series of virtual meetings, phone calls and e-mail exchanges during this Accounting period. Within this year we agreed to hire a qualified bookkeeper, which was successfully done. Meetings were held with Kreston Reeves and new appointee with 3 members of the Trustees to interview, approve & set out goals for this new appointment.
Weaknesses within the management team were addressed and a set of critical criteria were set.
Stephen Minall and Angelo De Pol have held one to one meetings and a couple of these meetings on a face to face basis with the CEO, Bookkeeper and key personnel.
Although outside of this Accounting Period Stephen Minall is conducting Personal One to Ones with all Senior staff on a confidential basis.
August 2021 - Trustees agreed to give the Bookkeeper time to clean up the accounts, change policy & procedures, enact with the Management support key KPI’s for all staff. Trustees have instructed successfully to get accurate P&L’s on each property, arrange budgets for each Manager/Property and look at all contractual arrangements & challenge these costs. Each cost line has been challenged
September 2021 - On the instruction from the Trustees each Residential client has been reviewed as a cost vs revenue assessment and a continued process of raising fees has been agreed as the annual reviews come into play with residents/Councils & Guardians.
October/November 2021 - A Number of meetings were held with Trustees together or via the Chair on the skills/abilities and future of TOF. CEO has been identified as not having financial skills, thus the new Bookkeeper was given more power and Angelo De Pol is mentoring & coaching through changes. Concerns were made by the accuracy of the accounts, cash flow management & financial disciplines not being addressed.
Senior Managers who previously held accounting/bookkeeper roles were removed & credit card & cash accesses were removed.
During this period a serious issue arose over the Utilities Contract, the company used to broker this and their excessive costs, Richard Miles is instructing Solicitors to proceed to regain costs and over charges. Ongoing battle this, unfortunately.
December 2021- Trustees held an initial Trustee meeting via zoom , Bookkeeper & CEO in attendance to run through exposures for Year End and highlight immediate concerns.
AGM December 2021 - AGM was organized & a Chairman’s Statement & CEO Overview was circulated & Guardians, Key Managers & Residence plus Kreston Reeves were in attendance. AGM was held virtually due to Covid restrictions & risk.
January/February 2022- Several discussions, meetings were held with each Trustee and the key actions from those Trustee meetings were approved both verbally & via e-mails.
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Decision was made that after Year End results were reviewed & First Quarter 2022-23 Accounts, (where we hope for clarity & a set of P&L’s & projections) The Trustee Board would set up a Trustee Budget & hire a Marketing Fund Manager to develop contributions, file grant applications & build some financial gain outside of reliance on Residential fees
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Trustees and Senior Mangers agreed to proceed with the scheme to split the main Outlook House into two properties, seek market value and determine the best route for this asset.
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Trustees agreed to continue to expand on the outsource apartment model, once we saw both residential benefit and understood the costs & exposure
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March 2022 Trustees’ decision to expend costs towards site surveys, architectural sketches and cost bench marking re the Main House was approved, estimate accrual was instructed.
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KPI’s and Disciplines were actioned for all members of the staff. Stephen met with CEO & Bookkeeper on a one to one during March & end of year to go over accounts & discuss new Policies to protect income & exposures.
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CEO was instructed to remove two previous employees from their roles in financial control/planning & re- align their skills for other needs in the organisation.
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Staff deemed excess to requirement or no longer meeting the skill set were to be reviewed, where necessary redundancy was approved.
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It was agreed to strengthen the Trustees Board as WC wishes to retire later in 2022, this was approved.
March 2022 - Concerns were raised, communicated too in no uncertain terms as the areas of weakness were exposed from hiring the new bookkeeper & digging through contracts, old & new and correcting Sage/Xero to identify weaknesses, exposure or incorrect postings re cost lines.
Trustees’ skills were identified & given responsibility to monitor & control these areas, rectify /seek a solution where necessary.
WC re Rebuild/Property Audits to set maintenance ,Repair of buildings & direction for the main building & estimate costs to achieve this investment that could be between £100-200k.
RM – Resolve Utility exposure & look at phone, water & IT contacts
ADeP – To sit close on the financial areas re exposure, boosting Bookkeeper & CEO confidence and look at Strategy going forward.
SM- to look at creating an environment of trust, creating a culture of “this is a business” and to get Senior Managers to want the changes & disciplines proposed. Trustees felt we need to seed the ground for the Marketing Manager’s role later in 2022, putting into place after 1[st] Quarter Accounts were determined as safe. A bonus structure for staff based on personal goals & KPI’s plus individual house budgets being met or exceeded and over performance of the foundation was raided to be debated within.
April 2022- Angelo had a series of discussions on next steps. Tightening of budgets & lay out minimum & maximum expectations of financial controls.
Trustees recognised & agreed to support CEO in this area of identified their weaknesses.
April 2022 - identified pots of money were re allocated for best interest, aligned to suitable correct budgets. TOF had in reserves circa £180k at our disposal.
The hiring & reporting structure (to the Trustees not Management) of the Marketing Manager’s role was sold into existing management. Subsequently approved to a move forward to seek said role in July/August 2022 via an agency & subsequent quotations & costs were given to add to the P&L’s as a budget allocated.
During late April/Early May 2022 , KPI’s set for each House Manager, HO financial allocations approved & Full P&L responsibility with set targets were signed off. Year End 2022-23 estimated P&L & projections were proposed & accepted. These accounts & projections were seen and approved by all Trustees.
Kreston Reeves were informed by a one to one by The Acting Chair & direct access to progress reports on our findings & actioned to date via personal discussions with the Bookkeeper were a constant.
Registered number: 02438015 Charity number: 802682
The Outlook Foundation
(A company limited by guarantee)
Trustees' report and financial statements for the year ended 31 March 2022
The Outlook Foundation
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 7 |
| Independent auditor's report on the financial statements | 8 - 11 |
| Statement of financial activities | 12 |
| Balance sheet | 13 - 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 - 28 |
The Outlook Foundation
(A company limited by guarantee)
Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2022
| Trustees | W C Catchpole |
|---|---|
| S A Minall | |
| E A Scott-Gilba | |
| A De Pol (appointed 10 May 2021) | |
| R M Miles (appointed 10 May 2021) | |
| S Bell (appointed 3 September 2022) | |
| Company registered number 02438015 Charity registered number 802682 Registered office 74 Redhill Drive Brighton East Sussex BN1 5FL Company secretary W C Catchpole Independent auditors Kreston Reeves LLP Chartered Accountants 9 Donnington Park 85 Birdham Road Chichester West Sussex PO20 7AJ Bankers HSBC Bank plc Harry Weston Road Binley Coventry CV3 2SH Solicitors Griffith Smith Farrington & Webb 47 Old Steine Brighton BN1 1HY |
Page 1
The Outlook Foundation
(A company limited by guarantee)
Trustees' report for the year ended 31 March 2022
The Trustees present their annual report together with the audited financial statements of the company for the year 1 April 2021 to 31 March 2022. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
Objectives and Activities
Policies and objectives
The Charity's aim (and its mission statement) is to empower people with learning disabilities by providing safe, comfortable homes in the community. This includes delivering person centred support, educational development, life skills training and promoting wellbeing, which will enable individuals to achieve their full potential.
The Charity's aim is to 'make a difference' to the lives of the client groups, the public will benefit by the policies and development of the Charity and the bespoke curriculum put in place for each individual. The overall benefit will be identifiable by the integration of the status groups concerned fulfilling life through the training provided by the Charity as well as making the individuals as independent as they are able to be and to interact within the community.
The charity has a training programme for volunteers. One person has undergone this programme. The charity provides training for organisations where our residents/tenants have voluntary work placements. We advertise for volunteers as a constant on-going practice.
Strategies for achieving objectives
We aim to achieve the mission statement above by continuing development and maintenance of essential life skills, ranging from personal hygiene to room cleaning, road crossing and bus travel.
All residents and tenants have individual life skills plans that they devise in collaboration with support staff. The person centred approach to life skills training results in successful completion leading to increased independence, appropriate to the individual.
Main activities undertaken to further the charity's purposes for the public benefit
The activities currently carried out for public benefit by the charity are always ensured by the trustees to be in line with our mission statement, with the overall aim being that the people we work alongside are fully integrated as part of their local community.
Achievements and performance
Key financial performance indicators
To maintain full occupancy and quality of service.
The service is reviewed in four different ways, firstly by purchasers on a 6 monthly or annual contract, secondly by regular trustee meetings where we ensure that the aims and objectives of the charity are being met, thirdly inspections carried out by the Care Quality Commission (CQC) and lastly by an annual Quality Assurance exercise in which questionnaires are sent out to residents and tenants, staff, parents, social workers and other external bodies. The charity is able to measure it's performance by an individual achieving life skills and further independence.
Page 2
The Outlook Foundation
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2022
Review of activities
The Charity provides accommodation across three homes - Outlook House, Jean Marshall House and Gaynor Forster House.
Outlook House
Set in a residential area of Brighton, Withdean, Outlook House and grounds are situated in the heart of the local community, with access to local shops, buses and primary healthcare. The house has the feel of a spacious family home, with 12 en suite rooms and well-equipped shared spaces. There is a large garden, with a greenhouse and vegetable patches, where green fingered residents can even try their hand at growing some grub!
Outlook House residents have use of all of the facilities at the house and are encouraged to actively participate in making Outlook House their own comfortable and happy home.
Outlook House is a ‘residential care’ setting.
Jean Marshall House
Situated in a residential area of Hove, close to Hove station, Hove Park, the seafront, shops and primary healthcare. Jean Marshall House has 8 en suite rooms alongside several large and comfortable shared spaces; a lounge, conservatory, dining room and large patio and courtyard.
Support Staff can be accessed by tenants both day and night at Jean Marshall House.
Jean Marshall House is a ‘supported living’ setting.
Gaynor Forster House
Situated in a residential area of Brighton, very close to Preston Park, local shops and primary healthcare services. It is very well positioned for public transport with great bus routes and both London Road and Preston Park train stations, nearby.
The overall house has been converted into 5 comfortable, self contained flats, with an additional shared utility room. The tenants benefit from a lovely, large courtyard garden with a built-in barbeque. Support staff can be accessed by tenants during the day at Gaynor Forster House.
Gaynor Forster House is a ‘supported living’ setting.
As we enter 2023 The Outlook Foundation looks back on a challenging year that has been tough for the entire Care Sector with added cost increases in labour, shortages of staff and the ever-increasing cost to run the 3 houses. We need and continue to increase fees where we can, but have this year taken on the position of hiring a dedicated Marketing Manager to raise external funds through donations, grants and raising our profile within Brighton & Hove.
In the early part of this year, we hired a Bookkeeper (Lesley Irving) with a view to modernizing our accounting processes, setting budgets for key staff members, and setting up the management team with KPI’s (Key Performance Indicators). The aim being to drive the Charity forward as a business but also to recognise the importance of maintaining our core values. Lesley moved mountains and worked hard to get us into a far better accounting position. We also strengthened our Trustees by adding Simon Bell, who has experiences in staff incentives and running businesses and I was extremely honored to be voted as permanent Chair from Vice Chair.
I want to congratulate Ria and the various teams within the four properties (including the new flat scheme) for the management, due diligence and the protection of both staff and our clients in very difficult times. We as Trustees face challenges in 2022 – 2023 and beyond as we oversee significant changes in a number of key areas:
- Developing income streams outside of relying on residential fees - Re design and allocation of the main building
Page 3
The Outlook Foundation
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2022
- Continuing to look into other sources of income through freeing up space
As mentioned, the hiring of a Marketing Manager will allow us to use a dedicated experienced individual (Ceiri O’Douglas) to drive the income initiatives.
In respect of Outlook House, the final designs and cost to realign the main house to add future accommodation, make this tired building fit for purpose and modernize it will be shared over the coming months. Our challenge is to raise money or seek mortgages to the tune of an estimate of £150-200k. We hope to start this project in the spring of 2023. The biggest challenge is the state of our main building which is no longer fit for purpose in some areas and now too big to fit into the new CQC recommendations & advice. We will have need of capital to both improve & update the facilities. We also have been hit with a restraining order by the Council to change the windows at Gaynor House, this is a cost of £42k! (we had delayed this through Covid).
The outsourcing of accommodation, where residents move to independence in private accommodation, overseen by TOF is going well. We are on flat no 2 and this programme really builds on the Charity’s desire to develop residents’ skills and move them to some form of independence within the safety net of TOF to protect them but still stimulate their needs & personal goals. Needless to say, the outsourcing frees up space for new residents.
You may also be unaware that TOF were facing a very serious situation on utilities where the brokerage company were overcharging and not allowing us to go out to tender. Richard Miles our Trustee with experience in Contract Law and Utilities brought them to task with the help of solicitors and legal counsel. We had been exposed to the tune of over £60k, so worth the fight. We are in the process of settling out of court and should be able to go to the market in the coming month (albeit not a great time to be renegotiating Gas & Electricity) This could challenge us re costs in this present climate. Running showers, cloths washing & maintaining standards for all our houses puts our utility usage & charges as a priority. Once gas and electricity contracts are sorted, we will then be turning our attention to water where historically we have also been overcharged. Overall and despite the current climate we are working hard to control our outgoings on all utilities.
In terms of staffing overheads, our sector needs to pay more to attract and retain new staff while rising to the challenges of the increased cost of keeping well trained & experienced team members. This is not a new issue as was mentioned last year, but with recent developments in the Charity Sector re staff shortages, it has taken on a new dynamic and we need to recognise that recruitment and training, and staff satisfaction, staff retention are key areas in hiring tactics. Whilst we cannot easily cut costs in labour we recognise that retention saves us money longer term. As well as this we need to develop succession planning for managers and improve/reward where advanced staff training programs are undertaken.
To this end Simon Bell our Trustee is working with the Senior Managers to come up with a fair and rewarding bonus come retention pay incentive program based on KPi’s, budget achievements and staff attendance. Ideally, we want to roll this program out early in 2023.
Financial review
We have an urgent need now as cuts in funding are a reality and likely to be more so over the coming two years. This adds time and effort in chasing local authorities to obtain increased fees and I cannot overstress the seriousness of the need to collect fees in a timely manner from Councils. With Council budgets under severe pressure, we understand the need to explain and justify any cost increases for our service but the continued demand on all our resources is a factor we cannot ignore and positions us strongly for continued support from public funds.
Before anyone thinks otherwise, I need to state that we are financially solvent and TOF is in a good position to fund the above projects through debt. We have some funds in reserve, but I would ask you all to look at family/friends/acquaintances etc. when raising charity monies through runs/walks/swims or even knitting and to now direct the funds our way. Everything helps in improving the quality of what we can deliver. Also, please start making use of The Outlook Foundation Fundraising | Easyfundraising if you are buying goods for the home or yourselves. Please share this with family & friends and let’s start to get this easy funding process going. Sadly, we never seem to get residents and their extended family engaged. This year we will be lucky to raise £700 in total, quite embarrassing really!
Page 4
The Outlook Foundation
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2022
Despite the economic and pandemic woes, most importantly our residents/tenants at Gaynor Forster, Jean Marshal & Outlook House are in good form. They continue to benefit from our coaching, supervision and getting out into the community. Our project to take four mature residents and support them to live independently by sourcing outside, semi-supervised apartments has gone well and we see this as a way forward.
So, to all our Residents/Tenants and their families I can assure you that your loved ones are in a very safe and secure environment with a professional team who love and respect them. We hope and fully expect to continue to offer exceptional services, as highlighted in the recent CQC report and look forward to your continued support in 2023. Meanwhile I, my fellow trustees and all at TOF do hope to see more of you at the Xmas Show on December 9th .
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
Financial risk management objectives and policies
We endeavour to maintain full capacity across the 3 sites and all payments of fees are monitored and addressed where necessary. The charity also has a Business Continuity Plan in place, including insurance to cover any major disruption to that continuity.
Reserves policy
The charity aims to hold reserves to cover 3 months expenditure.
Result for the year
The charity's total income for the year was £1,114,724 (2021: £1,136,772) and had net outgoing resources for the year of £1,262,271 (2021: £1,245,264). At 31 March 2022, the Foundation had unrestricted funds of £1,981,727 (2021: £2,129,274) and held free reserves of £183,654 (2021: £268,284). The Outlook Foundation aims to hold three months expenditure within free reserves. Three months expenditure, excluding depreciation, totals £299,384 suggesting that free reserves are lower than the Trustees would like the charity to hold. The Trustees are aware of this and are working with management to reduce expenditure and increase the charity's income to allow for reserves to increase.
Funding for residents and tenants is from the residents local council and from housing benefit.
Structure, governance and management
Constitution
The company is registered as a charitable company limited by guarantee and was set up by a Trust deed.
The company is constituted under a Trust deed and is a registered charity number 802682.
The principal object of the company is the promotion of care and education of adults with learning difficulties.
Method of appointment or election of Trustees
The management of the company is the responsibility of the Trustees who are elected and co opted under the terms of the Trust deed. The recruitment of new trustees is solely by introduction by existing members of the trustee committee and they are individuals who have varying experiences of dealing with different business operations that complement the charities mission statement. All new trustees are made aware of their roles and responsibilities in line with current legislation and the charity's policies and procedures, and new trustees are
Page 5
The Outlook Foundation
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2022
made familiar with The Outlook Foundation's three sites.
Organisational structure and decision making
The Trustees meet 5 times a year. Day to day the Charity is run by 3 Directors of Operations, who also comprise the Key Management Personnel of the Charity. The remuneration of the Key Management Personnel is set by Maria Mew and other non paid trustees.
Risk management
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
Plans for future periods
Future developments
The charity’s short term plan is to provide a high quality package of support which enables people to reach their full potential.
The long term aim of the charity would be to see as many as possible of the resident/tenants fully integrated in to the local community with individual packages of support to enable them to live as independently as possible.
Information on fundraising practices
The Outlook Foundation will need to look at fundraising strategies, this is due to an increase in liabilities, staffing costs and the lack of goverment funds. The charity does not work with professional fundraisers and during the last financial year did not have any agreements with commercial participators. During the last financial year there were no complaints received by the charity about any fundraising the charity carried out. The charity does not share the data with anyone and limits their fundraising approaches to ensure that they are not unreasonable and that there is no undue pressure to give.
Trustees' responsibilities statement
The Trustees (who are also directors of The Outlook Foundation for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 6
Th• Outlook Foundation IA company limitèd by guar•nts•) Trustee5' report (continued) for the year ended 31 March 2022 Disc105uY• of Inforrnation lo authtors Each ofthe persons wtLO are Trustees * the time when this Trustees, re1 is approvèd has confimed that.. ' so far as that TrLSStee is aware, therg K8 no relevant audit infomation of whi¢h the charitable compan¥s audltors are unaware, arn . that Trustee ha5 tsk9n all the steps that to We been 18ken as a Trustee in order lo be aware of 8ny rèlevant audrt Infomtion 8rLd to establish that Ihe tharitabl$ companys auditoTr are aware of that infomiation. Approve(I by m&mtS ofthe Ix)ord of Truslè&s and signèd on their beha by. SAMlna Dat&: Page 7
The Outlook Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The Outlook Foundation
Opinion
We have audited the financial statements of The Outlook Foundation (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
Page 8
The Outlook Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The Outlook Foundation (continued)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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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, 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.
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Page 9
The Outlook Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The Outlook Foundation (continued)
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the charity and sector, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Statement of Recommended Practice. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase income or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements such as the depreciation policies and useful economic life of properties. Audit procedures performed by the engagement team included:
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Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and
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Assessment of identified fraud risk factors; and
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Reading minutes of meetings of those charged with governance; and
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Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
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Obtain land registries to ensure ownership of properties; and
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Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Page 10
The Outlook Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The Outlook Foundation (continued)
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
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Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Lucy Hammond BSc FCA Kreston Reeves LLP Chartered Accountants Chichester
Date:
Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 11
The Outlook Foundation
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2022
| Note Income from: Donations and legacies 4 Charitable activities 5 Investments 6 Total income Expenditure on: Charitable activities 7 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 19,784 1,094,935 5 1,114,724 1,262,271 1,262,271 (147,547) 2,129,274 (147,547) 1,981,727 |
Total funds 2022 £ 19,784 1,094,935 5 1,114,724 1,262,271 1,262,271 (147,547) 2,129,274 (147,547) 1,981,727 |
Total funds 2021 £ 27,176 1,109,596 - 1,136,772 1,245,264 1,245,264 (108,492) 2,237,766 (108,492) 2,129,274 |
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 16 to 28 form part of these financial statements.
Page 12
The Outlook Foundation
(A company limited by guarantee) Registered number: 02438015
Balance sheet as at 31 March 2022
| Note Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Total net assets |
189,848 173,290 363,138 (179,484) |
2022 £ 1,798,073 1,798,073 183,654 1,981,727 1,981,727 |
146,319 297,621 443,940 (175,656) |
2021 £ 1,860,990 |
|---|---|---|---|---|
| 1,860,990 268,284 |
||||
| 2,129,274 | ||||
| 2,129,274 |
Page 13
Th• Outlook FndatIon IA company limitod by guarants•} R•glst•r•d number. 02438015 Balanc• $h¢¢t (¢orrtlnued as at 31 March 2022 2022 2021 Charlty funds Restricted lutyls Unrestri¢twJ IuiKIs 15 15 1.981.n7 2,129,274 Totsl funds 1,981,727 2,129,274 The entity was entitled to exeiWM frc#n audtt uTrJeT seclion 477 of the Compani&s Act 21JJ6. The mgmbers have rKJt requir lh9 gnbty to obtain an aLhJit for the year in questi¢)n in accordance whh secfjon 476 of the Companies Aci 2006. However. an audit is r8ouired in cCdare with se("on 144 of the Charibes Act 2011. The Trustees ackno5ethj8 Iheir reS$11th$ for ccknplw'ng with the requirements of the Act wth respect to auntIng r8o)rrls arvj preparatKm of finan(ial statements. The financk41 statements have been wepared in rdance the provtsKJns applicablo 10 gnttties subject to th8 small compan s regime. The fin al s ts were approved and aut1w$ed for by the Trustees and sNJned on Ih8ir behalf by.. SAM Date.. The notes on pagos 16 to 28 form wt of these financial statefflents. Page 14
The Outlook Foundation
(A company limited by guarantee)
Statement of cash flows for the year ended 31 March 2022
| Note Cash flows from operating activities Net cash used in operating activities 17 Cash flows from investing activities Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Repayments of borrowing Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 18 The notes on pages 16 to 28 form part of these financial statements |
2022 £ (122,512) - (1,819) (1,819) - - (124,331) 297,621 173,290 |
2021 £ 47,180 168 (6,925) (6,757) (29,962) (29,962) 10,461 287,160 297,621 |
|---|---|---|
Page 15
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
1. General information
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Outlook Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The financial statements are prepared on a going concern basis. During the year the charity generated a deficit of £147,547 (2021: deficit £108,492). The charity holds sufficient reserves and cash resources to continue as a going concern. There are no material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern. The impact of COVID-19 has been included in the charity's planning for the future and the going concern assumption takes this into consideration.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Page 16
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
2. Accounting policies (continued)
2.4 Expenditure (continued)
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
| Freehold property | - 2% per annum, straight-line |
|---|---|
| Property improvements | - 10% per annum, straight-line |
| Motor vehicles | - 25% per annum, reducing balance |
| Office equipment | - 25% per annum, straight-line |
| Computer equipment | - 33% per annum, straight-line |
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and in hand includes 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.
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
Page 17
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
2. Accounting policies (continued)
2.10 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
3. 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 Charity 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 to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgements:
Depreciation and useful economic life of properties - this requires an estimation of the useful economic lives of the charity's properties.
Page 18
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
| 4. Income from donations and legacies Unrestricted funds 2022 £ Donations 19,784 Unrestricted funds 2021 £ Donations 27,176 5. Income from charitable activities Unrestricted funds 2022 £ Tenant fees 1,094,935 Unrestricted funds 2021 £ Tenant fees 1,109,596 |
Total funds 2022 £ 19,784 |
|---|---|
| Total funds 2021 £ 27,176 |
|
| Total funds 2022 £ 1,094,935 |
|
| Total funds 2021 £ 1,109,596 |
Page 19
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
6. Investment income
| Unrestricted funds 2022 Total funds 2022 £ £ Bank interest 5 5 Analysis of expenditure on charitable activities Unrestricted funds 2022 £ Promotion of care and education 1,262,271 Unrestricted funds 2021 £ Promotion of care and education 1,245,264 |
Total funds 2021 £ - |
|---|---|
| Total 2022 £ 1,262,271 |
|
| Total 2021 £ 1,245,264 |
7. Analysis of expenditure on charitable activities
Page 20
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
8. Analysis of expenditure by activities
| Promotion of care and education Promotion of care and education Analysis of direct costs |
Activities undertaken directly 2022 £ 1,243,042 Activities undertaken directly 2021 £ 1,180,512 |
Support costs 2022 £ 19,229 Support costs 2021 £ 64,752 |
Total funds 2022 £ 1,262,271 |
|---|---|---|---|
| Total funds 2021 £ 1,245,264 |
|||
| Staff costs Depreciation House running costs Repairs and maintenance Supplies and other residential support Administration costs |
Promotion of care and education 2022 £ 906,824 64,736 140,601 38,663 23,251 68,967 1,243,042 |
Total funds 2022 £ 906,824 64,736 140,601 38,663 23,251 68,967 |
|---|---|---|
| 1,243,042 |
Page 21
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
8. Analysis of expenditure by activities (continued)
Analysis of direct costs (continued)
| Staff costs Depreciation House running costs Repairs and maintenance Supplies and other residential support Administration costs Loan interest Loss on disposal |
Promotion of care and education 2021 £ 820,154 66,886 147,350 56,415 25,313 64,016 397 (19) 1,180,512 |
Total funds 2021 £ 820,154 66,886 147,350 56,415 25,313 64,016 397 (19) |
|---|---|---|
| 1,180,512 |
Analysis of support costs
| Governance costs Governance costs |
Promotion of care and education 2022 £ 19,229 Promotion of care and education 2021 £ 64,752 |
Total funds 2022 £ 19,229 |
|---|---|---|
| Total funds 2021 £ 64,752 |
Page 22
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
9. Auditors' remuneration
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Charity's auditor for the audit of the Charity's annual | ||
| financial statements | 11,400 | 10,560 |
| Fees payable to the Charity's auditor in respect of: | ||
| All non-audit services not included above | 1,440 | 1,320 |
10. Staff costs
| Wages and salaries Social security costs Other pension costs |
2022 £ 824,350 66,639 15,835 906,824 |
2021 £ 788,560 61,068 20,124 |
|---|---|---|
| 869,752 |
The average number of persons employed by the Charity during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Admin & Care staff | 41 | 44 |
No employee received remuneration amounting to more than £60,000 in either year.
Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the Charity. In the opinion of the board of trustees of the Charity the key management are:
M Mew - Chief Executive Officer
S Wilmshurst - Director of Finance & Premises
B Hemsley - Director Of Training & Quality Care
Remuneration paid to key management personnel in the year totalled £125,432 (2021: £123,995).
These costs have been split at 60:40 between Promotion of care and education and Support and Governance.
11. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).
Page 23
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
12. Tangible fixed assets
| Cost or valuation At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Freehold property £ 2,690,178 - 2,690,178 843,577 59,355 902,932 1,787,246 1,846,601 |
Motor vehicles £ 22,130 - 22,130 15,595 1,634 17,229 4,901 6,535 |
Office equipment £ 41,799 - 41,799 33,945 3,365 37,310 4,489 7,854 |
Computer equipment £ - 1,819 1,819 - 382 382 1,437 - |
Total £ 2,754,107 1,819 |
|---|---|---|---|---|---|
| 2,755,926 | |||||
| 893,117 64,736 |
|||||
| 957,853 | |||||
| 1,798,073 | |||||
| 1,860,990 |
The carrying value of Freehold property secured against the bank loan is £Nil (2021: £Nil).
13. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
2022 £ 148,972 417 40,459 189,848 |
2021 £ 112,711 836 32,772 146,319 |
|---|---|---|
Page 24
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
14. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 April 2021 Resources deferred during the year Amounts released from previous periods Deferred income at 31 March 2022 |
2022 £ 36,739 16,662 16,653 109,430 179,484 2022 £ 71,866 70,288 (71,866) 70,288 |
2021 £ 55,168 15,783 19,587 85,118 |
|---|---|---|
| 175,656 | ||
| 2021 £ 71,722 71,866 (71,722) |
||
| 71,866 |
The deferred income relates to residents fees invoiced in advance.
15. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Statement of funds - prior year Unrestricted funds General Funds |
Balance at 1 April 2021 £ 2,129,274 Balance at 1 April 2020 £ 2,237,766 |
Income £ 1,114,724 Income £ 1,136,772 |
Expenditure £ (1,262,271) Expenditure £ (1,245,264) |
Balance at 31 March 2022 £ 1,981,727 |
|---|---|---|---|---|
| Balance at 31 March 2021 £ 2,129,274 |
Page 25
The Outlook Foundation (A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
16. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Tangible fixed assets 1,798,073 Current assets 363,138 Creditors due within one year (179,484) Total 1,981,727 |
Total funds 2022 £ 1,798,073 363,138 (179,484) 1,981,727 |
|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2021 £ 1,860,990 443,940 (175,656) 2,129,274 |
Total funds 2021 £ 1,860,990 443,940 (175,656) 2,129,274 |
|---|---|---|
17. Reconciliation of net movement in funds to net cash flow from operating activities
| Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Decrease/(increase) in debtors Increase in creditors Net cash provided by/(used in) operating activities |
2022 £ (147,547) 64,736 (43,529) 3,828 (122,512) |
2021 £ (108,492) 66,886 65,793 22,993 47,180 |
|---|---|---|
Page 26
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
18. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2022 £ 173,290 173,290 |
2021 £ 297,621 |
|---|---|---|
| 297,621 |
19. Analysis of changes in net debt
| Cash at bank and in hand | At 1 April 2021 £ 297,621 297,621 |
Cash flows £ (124,331) (124,331) |
At 31 March 2022 £ 173,290 |
|---|---|---|---|
| 173,290 |
20. Pension commitments
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £15,835 (2021 - £20,164). Contributions totalling £9,399 (2021 - £8,768) were payable to the fund at the balance sheet date and are included in creditors.
21. Operating lease commitments
At 31 March 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2022 £ 4,276 14,586 - 18,862 |
2021 £ 4,276 17,104 2,138 |
|---|---|---|
| 23,518 |
Page 27
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
22. Related party transactions
During the year there were transactions with two related parties. Family members of key management personnel (see note 11), S Wilmshurst and M Mew, were employed by the charity during the year. They received the following salaries:
The sister of M Mew £8,310 (2021: £7,639) The sister of S Wilmhust £27,990 (2021: £28,123)
Page 28
Registered number: 02438015 Charity number: 802682
The Outlook Foundation
(A company limited by guarantee)
Trustees' report and financial statements for the year ended 31 March 2022
The Outlook Foundation
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 7 |
| Independent auditor's report on the financial statements | 8 - 11 |
| Statement of financial activities | 12 |
| Balance sheet | 13 - 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 - 28 |
The Outlook Foundation
(A company limited by guarantee)
Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2022
| Trustees | W C Catchpole |
|---|---|
| S A Minall | |
| E A Scott-Gilba | |
| A De Pol (appointed 10 May 2021) | |
| R M Miles (appointed 10 May 2021) | |
| S Bell (appointed 3 September 2022) | |
| Company registered number 02438015 Charity registered number 802682 Registered office 74 Redhill Drive Brighton East Sussex BN1 5FL Company secretary W C Catchpole Independent auditors Kreston Reeves LLP Chartered Accountants 9 Donnington Park 85 Birdham Road Chichester West Sussex PO20 7AJ Bankers HSBC Bank plc Harry Weston Road Binley Coventry CV3 2SH Solicitors Griffith Smith Farrington & Webb 47 Old Steine Brighton BN1 1HY |
Page 1
The Outlook Foundation
(A company limited by guarantee)
Trustees' report for the year ended 31 March 2022
The Trustees present their annual report together with the audited financial statements of the company for the year 1 April 2021 to 31 March 2022. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
Objectives and Activities
Policies and objectives
The Charity's aim (and its mission statement) is to empower people with learning disabilities by providing safe, comfortable homes in the community. This includes delivering person centred support, educational development, life skills training and promoting wellbeing, which will enable individuals to achieve their full potential.
The Charity's aim is to 'make a difference' to the lives of the client groups, the public will benefit by the policies and development of the Charity and the bespoke curriculum put in place for each individual. The overall benefit will be identifiable by the integration of the status groups concerned fulfilling life through the training provided by the Charity as well as making the individuals as independent as they are able to be and to interact within the community.
The charity has a training programme for volunteers. One person has undergone this programme. The charity provides training for organisations where our residents/tenants have voluntary work placements. We advertise for volunteers as a constant on-going practice.
Strategies for achieving objectives
We aim to achieve the mission statement above by continuing development and maintenance of essential life skills, ranging from personal hygiene to room cleaning, road crossing and bus travel.
All residents and tenants have individual life skills plans that they devise in collaboration with support staff. The person centred approach to life skills training results in successful completion leading to increased independence, appropriate to the individual.
Main activities undertaken to further the charity's purposes for the public benefit
The activities currently carried out for public benefit by the charity are always ensured by the trustees to be in line with our mission statement, with the overall aim being that the people we work alongside are fully integrated as part of their local community.
Achievements and performance
Key financial performance indicators
To maintain full occupancy and quality of service.
The service is reviewed in four different ways, firstly by purchasers on a 6 monthly or annual contract, secondly by regular trustee meetings where we ensure that the aims and objectives of the charity are being met, thirdly inspections carried out by the Care Quality Commission (CQC) and lastly by an annual Quality Assurance exercise in which questionnaires are sent out to residents and tenants, staff, parents, social workers and other external bodies. The charity is able to measure it's performance by an individual achieving life skills and further independence.
Page 2
The Outlook Foundation
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2022
Review of activities
The Charity provides accommodation across three homes - Outlook House, Jean Marshall House and Gaynor Forster House.
Outlook House
Set in a residential area of Brighton, Withdean, Outlook House and grounds are situated in the heart of the local community, with access to local shops, buses and primary healthcare. The house has the feel of a spacious family home, with 12 en suite rooms and well-equipped shared spaces. There is a large garden, with a greenhouse and vegetable patches, where green fingered residents can even try their hand at growing some grub!
Outlook House residents have use of all of the facilities at the house and are encouraged to actively participate in making Outlook House their own comfortable and happy home.
Outlook House is a ‘residential care’ setting.
Jean Marshall House
Situated in a residential area of Hove, close to Hove station, Hove Park, the seafront, shops and primary healthcare. Jean Marshall House has 8 en suite rooms alongside several large and comfortable shared spaces; a lounge, conservatory, dining room and large patio and courtyard.
Support Staff can be accessed by tenants both day and night at Jean Marshall House.
Jean Marshall House is a ‘supported living’ setting.
Gaynor Forster House
Situated in a residential area of Brighton, very close to Preston Park, local shops and primary healthcare services. It is very well positioned for public transport with great bus routes and both London Road and Preston Park train stations, nearby.
The overall house has been converted into 5 comfortable, self contained flats, with an additional shared utility room. The tenants benefit from a lovely, large courtyard garden with a built-in barbeque. Support staff can be accessed by tenants during the day at Gaynor Forster House.
Gaynor Forster House is a ‘supported living’ setting.
As we enter 2023 The Outlook Foundation looks back on a challenging year that has been tough for the entire Care Sector with added cost increases in labour, shortages of staff and the ever-increasing cost to run the 3 houses. We need and continue to increase fees where we can, but have this year taken on the position of hiring a dedicated Marketing Manager to raise external funds through donations, grants and raising our profile within Brighton & Hove.
In the early part of this year, we hired a Bookkeeper (Lesley Irving) with a view to modernizing our accounting processes, setting budgets for key staff members, and setting up the management team with KPI’s (Key Performance Indicators). The aim being to drive the Charity forward as a business but also to recognise the importance of maintaining our core values. Lesley moved mountains and worked hard to get us into a far better accounting position. We also strengthened our Trustees by adding Simon Bell, who has experiences in staff incentives and running businesses and I was extremely honored to be voted as permanent Chair from Vice Chair.
I want to congratulate Ria and the various teams within the four properties (including the new flat scheme) for the management, due diligence and the protection of both staff and our clients in very difficult times. We as Trustees face challenges in 2022 – 2023 and beyond as we oversee significant changes in a number of key areas:
- Developing income streams outside of relying on residential fees - Re design and allocation of the main building
Page 3
The Outlook Foundation
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2022
- Continuing to look into other sources of income through freeing up space
As mentioned, the hiring of a Marketing Manager will allow us to use a dedicated experienced individual (Ceiri O’Douglas) to drive the income initiatives.
In respect of Outlook House, the final designs and cost to realign the main house to add future accommodation, make this tired building fit for purpose and modernize it will be shared over the coming months. Our challenge is to raise money or seek mortgages to the tune of an estimate of £150-200k. We hope to start this project in the spring of 2023. The biggest challenge is the state of our main building which is no longer fit for purpose in some areas and now too big to fit into the new CQC recommendations & advice. We will have need of capital to both improve & update the facilities. We also have been hit with a restraining order by the Council to change the windows at Gaynor House, this is a cost of £42k! (we had delayed this through Covid).
The outsourcing of accommodation, where residents move to independence in private accommodation, overseen by TOF is going well. We are on flat no 2 and this programme really builds on the Charity’s desire to develop residents’ skills and move them to some form of independence within the safety net of TOF to protect them but still stimulate their needs & personal goals. Needless to say, the outsourcing frees up space for new residents.
You may also be unaware that TOF were facing a very serious situation on utilities where the brokerage company were overcharging and not allowing us to go out to tender. Richard Miles our Trustee with experience in Contract Law and Utilities brought them to task with the help of solicitors and legal counsel. We had been exposed to the tune of over £60k, so worth the fight. We are in the process of settling out of court and should be able to go to the market in the coming month (albeit not a great time to be renegotiating Gas & Electricity) This could challenge us re costs in this present climate. Running showers, cloths washing & maintaining standards for all our houses puts our utility usage & charges as a priority. Once gas and electricity contracts are sorted, we will then be turning our attention to water where historically we have also been overcharged. Overall and despite the current climate we are working hard to control our outgoings on all utilities.
In terms of staffing overheads, our sector needs to pay more to attract and retain new staff while rising to the challenges of the increased cost of keeping well trained & experienced team members. This is not a new issue as was mentioned last year, but with recent developments in the Charity Sector re staff shortages, it has taken on a new dynamic and we need to recognise that recruitment and training, and staff satisfaction, staff retention are key areas in hiring tactics. Whilst we cannot easily cut costs in labour we recognise that retention saves us money longer term. As well as this we need to develop succession planning for managers and improve/reward where advanced staff training programs are undertaken.
To this end Simon Bell our Trustee is working with the Senior Managers to come up with a fair and rewarding bonus come retention pay incentive program based on KPi’s, budget achievements and staff attendance. Ideally, we want to roll this program out early in 2023.
Financial review
We have an urgent need now as cuts in funding are a reality and likely to be more so over the coming two years. This adds time and effort in chasing local authorities to obtain increased fees and I cannot overstress the seriousness of the need to collect fees in a timely manner from Councils. With Council budgets under severe pressure, we understand the need to explain and justify any cost increases for our service but the continued demand on all our resources is a factor we cannot ignore and positions us strongly for continued support from public funds.
Before anyone thinks otherwise, I need to state that we are financially solvent and TOF is in a good position to fund the above projects through debt. We have some funds in reserve, but I would ask you all to look at family/friends/acquaintances etc. when raising charity monies through runs/walks/swims or even knitting and to now direct the funds our way. Everything helps in improving the quality of what we can deliver. Also, please start making use of The Outlook Foundation Fundraising | Easyfundraising if you are buying goods for the home or yourselves. Please share this with family & friends and let’s start to get this easy funding process going. Sadly, we never seem to get residents and their extended family engaged. This year we will be lucky to raise £700 in total, quite embarrassing really!
Page 4
The Outlook Foundation
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2022
Despite the economic and pandemic woes, most importantly our residents/tenants at Gaynor Forster, Jean Marshal & Outlook House are in good form. They continue to benefit from our coaching, supervision and getting out into the community. Our project to take four mature residents and support them to live independently by sourcing outside, semi-supervised apartments has gone well and we see this as a way forward.
So, to all our Residents/Tenants and their families I can assure you that your loved ones are in a very safe and secure environment with a professional team who love and respect them. We hope and fully expect to continue to offer exceptional services, as highlighted in the recent CQC report and look forward to your continued support in 2023. Meanwhile I, my fellow trustees and all at TOF do hope to see more of you at the Xmas Show on December 9th .
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
Financial risk management objectives and policies
We endeavour to maintain full capacity across the 3 sites and all payments of fees are monitored and addressed where necessary. The charity also has a Business Continuity Plan in place, including insurance to cover any major disruption to that continuity.
Reserves policy
The charity aims to hold reserves to cover 3 months expenditure.
Result for the year
The charity's total income for the year was £1,114,724 (2021: £1,136,772) and had net outgoing resources for the year of £1,262,271 (2021: £1,245,264). At 31 March 2022, the Foundation had unrestricted funds of £1,981,727 (2021: £2,129,274) and held free reserves of £183,654 (2021: £268,284). The Outlook Foundation aims to hold three months expenditure within free reserves. Three months expenditure, excluding depreciation, totals £299,384 suggesting that free reserves are lower than the Trustees would like the charity to hold. The Trustees are aware of this and are working with management to reduce expenditure and increase the charity's income to allow for reserves to increase.
Funding for residents and tenants is from the residents local council and from housing benefit.
Structure, governance and management
Constitution
The company is registered as a charitable company limited by guarantee and was set up by a Trust deed.
The company is constituted under a Trust deed and is a registered charity number 802682.
The principal object of the company is the promotion of care and education of adults with learning difficulties.
Method of appointment or election of Trustees
The management of the company is the responsibility of the Trustees who are elected and co opted under the terms of the Trust deed. The recruitment of new trustees is solely by introduction by existing members of the trustee committee and they are individuals who have varying experiences of dealing with different business operations that complement the charities mission statement. All new trustees are made aware of their roles and responsibilities in line with current legislation and the charity's policies and procedures, and new trustees are
Page 5
The Outlook Foundation
(A company limited by guarantee)
Trustees' report (continued) for the year ended 31 March 2022
made familiar with The Outlook Foundation's three sites.
Organisational structure and decision making
The Trustees meet 5 times a year. Day to day the Charity is run by 3 Directors of Operations, who also comprise the Key Management Personnel of the Charity. The remuneration of the Key Management Personnel is set by Maria Mew and other non paid trustees.
Risk management
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
Plans for future periods
Future developments
The charity’s short term plan is to provide a high quality package of support which enables people to reach their full potential.
The long term aim of the charity would be to see as many as possible of the resident/tenants fully integrated in to the local community with individual packages of support to enable them to live as independently as possible.
Information on fundraising practices
The Outlook Foundation will need to look at fundraising strategies, this is due to an increase in liabilities, staffing costs and the lack of goverment funds. The charity does not work with professional fundraisers and during the last financial year did not have any agreements with commercial participators. During the last financial year there were no complaints received by the charity about any fundraising the charity carried out. The charity does not share the data with anyone and limits their fundraising approaches to ensure that they are not unreasonable and that there is no undue pressure to give.
Trustees' responsibilities statement
The Trustees (who are also directors of The Outlook Foundation for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgments and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 6
Th• Outlook Foundation IA company limitèd by guar•nts•) Trustee5' report (continued) for the year ended 31 March 2022 Disc105uY• of Inforrnation lo authtors Each ofthe persons wtLO are Trustees * the time when this Trustees, re1 is approvèd has confimed that.. ' so far as that TrLSStee is aware, therg K8 no relevant audit infomation of whi¢h the charitable compan¥s audltors are unaware, arn . that Trustee ha5 tsk9n all the steps that to We been 18ken as a Trustee in order lo be aware of 8ny rèlevant audrt Infomtion 8rLd to establish that Ihe tharitabl$ companys auditoTr are aware of that infomiation. Approve(I by m&mtS ofthe Ix)ord of Truslè&s and signèd on their beha by. SAMlna Dat&: Page 7
The Outlook Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The Outlook Foundation
Opinion
We have audited the financial statements of The Outlook Foundation (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 charitable company's affairs as at 31 March 2022 and of its 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 Charities Act 2011.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
Page 8
The Outlook Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The Outlook Foundation (continued)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records and returns; 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, 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.
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Page 9
The Outlook Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The Outlook Foundation (continued)
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the charity and sector, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Statement of Recommended Practice. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase income or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements such as the depreciation policies and useful economic life of properties. Audit procedures performed by the engagement team included:
-
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and
-
Assessment of identified fraud risk factors; and
-
Reading minutes of meetings of those charged with governance; and
-
Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
-
Obtain land registries to ensure ownership of properties; and
-
Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Page 10
The Outlook Foundation
(A company limited by guarantee)
Independent auditors' report to the Members of The Outlook Foundation (continued)
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
-
Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Lucy Hammond BSc FCA Kreston Reeves LLP Chartered Accountants Chichester
Date:
Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 11
The Outlook Foundation
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2022
| Note Income from: Donations and legacies 4 Charitable activities 5 Investments 6 Total income Expenditure on: Charitable activities 7 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 19,784 1,094,935 5 1,114,724 1,262,271 1,262,271 (147,547) 2,129,274 (147,547) 1,981,727 |
Total funds 2022 £ 19,784 1,094,935 5 1,114,724 1,262,271 1,262,271 (147,547) 2,129,274 (147,547) 1,981,727 |
Total funds 2021 £ 27,176 1,109,596 - 1,136,772 1,245,264 1,245,264 (108,492) 2,237,766 (108,492) 2,129,274 |
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 16 to 28 form part of these financial statements.
Page 12
The Outlook Foundation
(A company limited by guarantee) Registered number: 02438015
Balance sheet as at 31 March 2022
| Note Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Total net assets |
189,848 173,290 363,138 (179,484) |
2022 £ 1,798,073 1,798,073 183,654 1,981,727 1,981,727 |
146,319 297,621 443,940 (175,656) |
2021 £ 1,860,990 |
|---|---|---|---|---|
| 1,860,990 268,284 |
||||
| 2,129,274 | ||||
| 2,129,274 |
Page 13
Th• Outlook FndatIon IA company limitod by guarants•} R•glst•r•d number. 02438015 Balanc• $h¢¢t (¢orrtlnued as at 31 March 2022 2022 2021 Charlty funds Restricted lutyls Unrestri¢twJ IuiKIs 15 15 1.981.n7 2,129,274 Totsl funds 1,981,727 2,129,274 The entity was entitled to exeiWM frc#n audtt uTrJeT seclion 477 of the Compani&s Act 21JJ6. The mgmbers have rKJt requir lh9 gnbty to obtain an aLhJit for the year in questi¢)n in accordance whh secfjon 476 of the Companies Aci 2006. However. an audit is r8ouired in cCdare with se("on 144 of the Charibes Act 2011. The Trustees ackno5ethj8 Iheir reS$11th$ for ccknplw'ng with the requirements of the Act wth respect to auntIng r8o)rrls arvj preparatKm of finan(ial statements. The financk41 statements have been wepared in rdance the provtsKJns applicablo 10 gnttties subject to th8 small compan s regime. The fin al s ts were approved and aut1w$ed for by the Trustees and sNJned on Ih8ir behalf by.. SAM Date.. The notes on pagos 16 to 28 form wt of these financial statefflents. Page 14
The Outlook Foundation
(A company limited by guarantee)
Statement of cash flows for the year ended 31 March 2022
| Note Cash flows from operating activities Net cash used in operating activities 17 Cash flows from investing activities Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Repayments of borrowing Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 18 The notes on pages 16 to 28 form part of these financial statements |
2022 £ (122,512) - (1,819) (1,819) - - (124,331) 297,621 173,290 |
2021 £ 47,180 168 (6,925) (6,757) (29,962) (29,962) 10,461 287,160 297,621 |
|---|---|---|
Page 15
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
1. General information
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Outlook Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The financial statements are prepared on a going concern basis. During the year the charity generated a deficit of £147,547 (2021: deficit £108,492). The charity holds sufficient reserves and cash resources to continue as a going concern. There are no material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern. The impact of COVID-19 has been included in the charity's planning for the future and the going concern assumption takes this into consideration.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Page 16
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
2. Accounting policies (continued)
2.4 Expenditure (continued)
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
| Freehold property | - 2% per annum, straight-line |
|---|---|
| Property improvements | - 10% per annum, straight-line |
| Motor vehicles | - 25% per annum, reducing balance |
| Office equipment | - 25% per annum, straight-line |
| Computer equipment | - 33% per annum, straight-line |
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and in hand includes 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.
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
Page 17
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
2. Accounting policies (continued)
2.10 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
3. 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 Charity 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 to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgements:
Depreciation and useful economic life of properties - this requires an estimation of the useful economic lives of the charity's properties.
Page 18
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
| 4. Income from donations and legacies Unrestricted funds 2022 £ Donations 19,784 Unrestricted funds 2021 £ Donations 27,176 5. Income from charitable activities Unrestricted funds 2022 £ Tenant fees 1,094,935 Unrestricted funds 2021 £ Tenant fees 1,109,596 |
Total funds 2022 £ 19,784 |
|---|---|
| Total funds 2021 £ 27,176 |
|
| Total funds 2022 £ 1,094,935 |
|
| Total funds 2021 £ 1,109,596 |
Page 19
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
6. Investment income
| Unrestricted funds 2022 Total funds 2022 £ £ Bank interest 5 5 Analysis of expenditure on charitable activities Unrestricted funds 2022 £ Promotion of care and education 1,262,271 Unrestricted funds 2021 £ Promotion of care and education 1,245,264 |
Total funds 2021 £ - |
|---|---|
| Total 2022 £ 1,262,271 |
|
| Total 2021 £ 1,245,264 |
7. Analysis of expenditure on charitable activities
Page 20
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
8. Analysis of expenditure by activities
| Promotion of care and education Promotion of care and education Analysis of direct costs |
Activities undertaken directly 2022 £ 1,243,042 Activities undertaken directly 2021 £ 1,180,512 |
Support costs 2022 £ 19,229 Support costs 2021 £ 64,752 |
Total funds 2022 £ 1,262,271 |
|---|---|---|---|
| Total funds 2021 £ 1,245,264 |
|||
| Staff costs Depreciation House running costs Repairs and maintenance Supplies and other residential support Administration costs |
Promotion of care and education 2022 £ 906,824 64,736 140,601 38,663 23,251 68,967 1,243,042 |
Total funds 2022 £ 906,824 64,736 140,601 38,663 23,251 68,967 |
|---|---|---|
| 1,243,042 |
Page 21
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
8. Analysis of expenditure by activities (continued)
Analysis of direct costs (continued)
| Staff costs Depreciation House running costs Repairs and maintenance Supplies and other residential support Administration costs Loan interest Loss on disposal |
Promotion of care and education 2021 £ 820,154 66,886 147,350 56,415 25,313 64,016 397 (19) 1,180,512 |
Total funds 2021 £ 820,154 66,886 147,350 56,415 25,313 64,016 397 (19) |
|---|---|---|
| 1,180,512 |
Analysis of support costs
| Governance costs Governance costs |
Promotion of care and education 2022 £ 19,229 Promotion of care and education 2021 £ 64,752 |
Total funds 2022 £ 19,229 |
|---|---|---|
| Total funds 2021 £ 64,752 |
Page 22
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
9. Auditors' remuneration
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Charity's auditor for the audit of the Charity's annual | ||
| financial statements | 11,400 | 10,560 |
| Fees payable to the Charity's auditor in respect of: | ||
| All non-audit services not included above | 1,440 | 1,320 |
10. Staff costs
| Wages and salaries Social security costs Other pension costs |
2022 £ 824,350 66,639 15,835 906,824 |
2021 £ 788,560 61,068 20,124 |
|---|---|---|
| 869,752 |
The average number of persons employed by the Charity during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Admin & Care staff | 41 | 44 |
No employee received remuneration amounting to more than £60,000 in either year.
Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the Charity. In the opinion of the board of trustees of the Charity the key management are:
M Mew - Chief Executive Officer
S Wilmshurst - Director of Finance & Premises
B Hemsley - Director Of Training & Quality Care
Remuneration paid to key management personnel in the year totalled £125,432 (2021: £123,995).
These costs have been split at 60:40 between Promotion of care and education and Support and Governance.
11. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).
Page 23
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
12. Tangible fixed assets
| Cost or valuation At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Freehold property £ 2,690,178 - 2,690,178 843,577 59,355 902,932 1,787,246 1,846,601 |
Motor vehicles £ 22,130 - 22,130 15,595 1,634 17,229 4,901 6,535 |
Office equipment £ 41,799 - 41,799 33,945 3,365 37,310 4,489 7,854 |
Computer equipment £ - 1,819 1,819 - 382 382 1,437 - |
Total £ 2,754,107 1,819 |
|---|---|---|---|---|---|
| 2,755,926 | |||||
| 893,117 64,736 |
|||||
| 957,853 | |||||
| 1,798,073 | |||||
| 1,860,990 |
The carrying value of Freehold property secured against the bank loan is £Nil (2021: £Nil).
13. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
2022 £ 148,972 417 40,459 189,848 |
2021 £ 112,711 836 32,772 146,319 |
|---|---|---|
Page 24
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
14. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 April 2021 Resources deferred during the year Amounts released from previous periods Deferred income at 31 March 2022 |
2022 £ 36,739 16,662 16,653 109,430 179,484 2022 £ 71,866 70,288 (71,866) 70,288 |
2021 £ 55,168 15,783 19,587 85,118 |
|---|---|---|
| 175,656 | ||
| 2021 £ 71,722 71,866 (71,722) |
||
| 71,866 |
The deferred income relates to residents fees invoiced in advance.
15. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Statement of funds - prior year Unrestricted funds General Funds |
Balance at 1 April 2021 £ 2,129,274 Balance at 1 April 2020 £ 2,237,766 |
Income £ 1,114,724 Income £ 1,136,772 |
Expenditure £ (1,262,271) Expenditure £ (1,245,264) |
Balance at 31 March 2022 £ 1,981,727 |
|---|---|---|---|---|
| Balance at 31 March 2021 £ 2,129,274 |
Page 25
The Outlook Foundation (A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
16. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Tangible fixed assets 1,798,073 Current assets 363,138 Creditors due within one year (179,484) Total 1,981,727 |
Total funds 2022 £ 1,798,073 363,138 (179,484) 1,981,727 |
|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2021 £ 1,860,990 443,940 (175,656) 2,129,274 |
Total funds 2021 £ 1,860,990 443,940 (175,656) 2,129,274 |
|---|---|---|
17. Reconciliation of net movement in funds to net cash flow from operating activities
| Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Decrease/(increase) in debtors Increase in creditors Net cash provided by/(used in) operating activities |
2022 £ (147,547) 64,736 (43,529) 3,828 (122,512) |
2021 £ (108,492) 66,886 65,793 22,993 47,180 |
|---|---|---|
Page 26
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
18. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2022 £ 173,290 173,290 |
2021 £ 297,621 |
|---|---|---|
| 297,621 |
19. Analysis of changes in net debt
| Cash at bank and in hand | At 1 April 2021 £ 297,621 297,621 |
Cash flows £ (124,331) (124,331) |
At 31 March 2022 £ 173,290 |
|---|---|---|---|
| 173,290 |
20. Pension commitments
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £15,835 (2021 - £20,164). Contributions totalling £9,399 (2021 - £8,768) were payable to the fund at the balance sheet date and are included in creditors.
21. Operating lease commitments
At 31 March 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2022 £ 4,276 14,586 - 18,862 |
2021 £ 4,276 17,104 2,138 |
|---|---|---|
| 23,518 |
Page 27
The Outlook Foundation
(A company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2022
22. Related party transactions
During the year there were transactions with two related parties. Family members of key management personnel (see note 11), S Wilmshurst and M Mew, were employed by the charity during the year. They received the following salaries:
The sister of M Mew £8,310 (2021: £7,639) The sister of S Wilmhust £27,990 (2021: £28,123)
Page 28