Livability Annual Report 2011-2012 by Shaftesbury

Report and Accounts Year ended 31 March 2012

Company Registration Number 5967087 Registered Charity Number 1116530

About Livability Who uses Livability?

All kinds of people use Livability’s services. We work with disabled children and adults. Some have physical disabilities and some have learning disabilities. We also work with churches that are trying to make life better in their community.

What does Livability do?

Livability offers a wide choice of services in England. Our main areas of work are: • L ifelong learning: we offer many education and employment opportunities. • P ersonal independence: our services support people to be as independent as possible. This includes supporting people in their own home or in a shared home. • T aking part: we open doors into the wider community for people of all ages and types of disability.

‘I had fun dressing up for our opera’ Andy, Hinwick Hall College student

Company Registration Number 5967087 Registered Charity Number 1116530

LIVABILITY Report and Accounts Year Ended 31 March 2012

Livability Livability Annual Report & Accounts 2012

A MESSAGE FROM OUR PATRON, HRH THE PRINCESS ROYAL

Livability Annual Report & Accounts 2012

CONTENTS

Page No A Message from our Patron, HRH The Princess Royal

Trustees’ Report incorporating: Introduction

Principal Activities and Core Values

Review of Activities 2011/12

Report of the Board

Results for the Year and Reserves

Statement of Trustees’ Responsibilities for the Financial Statements

Independent Auditor’s Report to Members of Livability

Consolidated Statement of Financial Activities

Consolidated and Charity Balance Sheets

Consolidated Cash Flow Statement

Notes to the Financial Statements

Livability Information

Livability Annual Report & Accounts 2012

INTRODUCTION It is a privilege to chair an organisation with such a rich heritage and an enviable reputation for providing high quality services for disabled and disadvantaged people. This year has witnessed the retirement of our Chief Executive Mike Smith OBE and I wish to pay tribute to his tireless commitment to disabled people â&#x20AC;&#x201C; a commitment spanning his entire working life. My current term as a Trustee expires at the Annual General Meeting in November when I too will retire. In due course successors will be appointed to both roles but we are fortunate in having very capable individuals willing to provide interim leadership in Dave Webber (Acting Chief Executive) and Chris Carr (Vice Chair). We continue to work hard to maintain income and improve efficiency in our residential and community services. Most, if not all, of our care homes and supported living services have had to renegotiate contracts and as fees have been cut, staffing has been adapted accordingly. Many of our front line staff are long serving and the quality of the care we are able to offer is due largely to their professionalism and dedication. Our growing cadre of volunteers helps to ensure that our service users enjoy as much choice and control as possible in the way they live their lives, despite the cuts. We have also maintained income from our educational services but have seen an unplanned increase in costs, due to the need for restructuring at Hinwick Hall College, to improve our Ofsted rating. Under a new Chair of Governors and a new Principal, the College has seen a pleasing upturn in interest from students, parents and commissioners alike. We expect the funding environment for our further education colleges to become increasingly difficult and we will need to adapt very quickly to meet local needs. In future we expect the balance between day and residential places to change significantly as commissioners seek to target their investment. At Nash College we have started to provide learning and developmental opportunities for our students in the community, a trend that is likely to continue. At Victoria Education Centre and Sports College we are aiming to raise a total of ÂŁ4.4 million to provide a new hydrotherapy pool and therapy centre. In July 2012 we completed Phase 1 of the appeal, enabling work on the pool to commence in October 2012. We aim to raise ÂŁ1.7 million over the next two years to complete the second and final phase of the project. I would like to extend my thanks to the many individuals and organisations who have contributed to date, especially Lord Shaftesbury, Patron of the Appeal and Mrs David Cameron who hosted a reception at Downing Street for us. Due to the success of this appeal our overall income from fundraising has held up but it remains a challenge to raise unrestricted funds. These funds are vital to enable our community mission, overseas and campaigning activities to flourish. Many of our service users have a range of physical and learning disabilities and, as such, represent a less often heard voice in the disability community. This makes us all the more determined to speak out, with and for them, to ensure they fulfil their potential and have opportunities to play a full role in society. Pivotal to this is our service user network, led by Stephen Springer MBE, and comprising representatives from each of our registered services including our student councils. A key output from the network this year was their response to the government's Fulfilling Potential consultation, the aim of which is to develop strategies to tackle barriers to realising aspirations and individual control, as well as change attitudes and behaviour towards disabled people. Key issues raised by disabled people and disabled peoples' organisations include how to improve key life transitions, improving information and advice, new approaches to early intervention and improving the accessibility of the environment and services. Thanks are also due to so many others for their commitment and dedication over the past year, amongst them our Patron, HRH the Princess Royal; our President Baroness Howarth of Breckland OBE; our staff throughout the country and in our head office in London; and many others who lend their support in ways too diverse to mention. Building on the national inspiration and swell of public interest derived from the Paralympics Livability continues to hold our ambitious goal of a transformed society, one in which disabled and disadvantaged people can live life to the full. Thank you for playing your part in this endeavour. Paula Kerr Chair of the Board of Trustees 4

Livability Annual Report & Accounts 2012

PRINCIPAL ACTIVITIES AND CORE VALUES Livability exists to provide opportunity and support to the lives of disabled and disadvantaged people. We are also committed to ensuring that every individual has an equal opportunity to reach their full potential. We work for all who need our services and can benefit from what we can offer and our aim is to place disabled and disadvantaged people at the core of all we do. We offer a wide and diverse range of services, working with people aged 4 to 103 and aimed at providing independence and opportunity. The main areas of work are: • Residential and nursing care in 24 high quality homes. • Supported living, including a number of community-based schemes. • Three education establishments which comprise one school and two further education colleges, all with registered care provision. • Holiday provision in hotels and accessible self-catering properties. • Business Enterprise training and support for disabled people to set up and manage their own businesses. • A Community Mission Team that works with Christian community activists and supports churches in tackling poverty and related social issues. • Brain injury and spinal cord injury rehabilitation services that operate in the UK and overseas including India, Bangladesh, Vietnam, Malaysia, Sri Lanka and Nepal. • Raising awareness of issues that are most important to disabled people and seeking to influence government policy, change attitudes towards disabled people and make sure that the voices of our disabled service users are heard. Vision: Our vision is of a transformed society where disabled and disadvantaged people can live life to the full. Mission: Inspired by our Christian ethos, we work with disabled and disadvantaged people to achieve real choice, independence and opportunity. We do this through our expertise, the breadth and quality of our services and by campaigning for change. Values: •

We value all people: We believe in the equality and unique value of every individual, and create opportunities for people to fulfil their potential and live life to the full.

•

We work together: We work together in partnership not just with those who use our services, but with their families, local communities and other organisations.

•

We invest in our staff: We value the people who work for us and with us, developing their skills and confidence.

•

We are professional: We seek to deliver services of the highest quality and constantly seek to improve through listening, reflecting, learning and action. 5

Livability Annual Report & Accounts 2012

•

We exercise responsible stewardship: Making the best possible use of and conserving scarce resources is vital to us.

•

We challenge injustice: Working closely with disabled and disadvantaged people, we challenge injustice, using our research and expertise to achieve real change.

Ethos: •

Livability derives its inspiration and values from the life and message of Jesus Christ and the Christian faith. These Christian beliefs shape what we do and provide the basis on which our work is founded.

•

Our ethos and values that flow from it are an expression of our shared commitment to put into practice the teaching of Jesus Christ and our understanding of how God calls us to work in the world.

•

We warmly welcome people of all faiths or none to work with us, asking them only to share our commitment to living out our values through their work and serving all unconditionally.

Objects: Livability is established for the public benefit and for charitable purposes according to the laws of England and Wales. The objects of the Charity are: •

to assist or educate any person in charitable need and, in particular but without limitation, any disabled person and the parents, guardians and carers of such people by whatever means; and

•

to provide facilities, support, advice and assistance for Christian congregations, other Christian groupings and community groups seeking to alleviate charitable needs.

These Objects are pursued in each case in a manner which authenticates the Christian Faith and its moral principles in a spirit of love and practical Christian service. For the purposes of these Objects, “Christian Faith” means the Faith as revealed and expressed in the Holy Scriptures, both Old and New Testaments. Public Benefit: The Trustees, in exercising their powers and duties, have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission. In preparing the report and accounts the Trustees have complied with the requirements set out in that guidance to report on the significant activities and achievements of the Charity in 2011/12. They have reported in a way that both sets out the aims and strategies of the Charity and demonstrates how the aims and activities of the Charity were carried out for the public benefit.

Livability Annual Report & Accounts 2012

REVIEW OF ACTIVITIES 2011/12 With our roots going back to the foundations laid by John Groom and the Seventh Earl of Shaftesbury, Livability continues in their footsteps to offer a quality-based, diverse range of services to disabled and disadvantaged people. In 2011/12 our innovative services continued to meet the wide ranging needs of our client group. These services have been designed to offer options and choices adding fulfilment and enjoyment to life. The outworking of the Governmentâ&#x20AC;&#x2122;s 2010 Comprehensive Spending Review, prevailing difficult economic and financial conditions, including the impact of the Bank of Englandâ&#x20AC;&#x2122;s Quantitative Easing policy, have continued to impact on our income, expenditure and balance sheet values and adversely affected the position of disabled people in our communities. We have had to work exceptionally hard to maintain our high quality standards in the services and practical support we provide to disabled people and their families, whether it is through our residential services or education establishments, social inclusion, holidays, or brain injury rehabilitation centre or our work on spinal injury overseas. In such a difficult environment it is particularly important that we continue to provide outstanding services so that disabled and disadvantaged people are treated equally in society and can achieve their life ambitions and overcome barriers that may prevent them participating fully in the community. We currently support over 200 children and young adults through our school and colleges and we are tremendously proud of their achievements and outcomes. Our residential services support over 300 people and we have worked hard to see that these services offer as many opportunities and progression to independence as possible. We are committed to providing flexibility and freedom to encourage people to make decisions on their own future and embrace the personalisation agenda. The specialist brain injury rehabilitation service has seen 300 people in the UK this year and the number of NHS referrals continues to increase. Our Lifestyles programme is currently operating in nine areas with over 200 clients, all of whom have the opportunity to use this transformation programme to take the next step in advancing their lives. Our Business Enterprise programme has assisted over 100 disabled and disadvantaged people to prepare for employment by offering them the opportunity to learn new skills and prepare for work. We have provided holidays for approximately 4,000 disabled people and their families and run training events for over 1,000 health professionals in Asia to improve the rehabilitation treatment offered to people with spinal cord injury. Livabilityâ&#x20AC;&#x2122;s Community Mission Team is recognised as unique in its provision of frontline capacity building support to churches looking to address local needs. The team trains over 600 Christian community activists a year, working in depth with over 50 churches and Christian charities to make a positive impact in areas of high social need in the north of England and in the Greater London area. The team helps churches identify both local challenges and local assets from which to build cohesive and inclusive communities. The majority of this work is funded by voluntary income though attendance fees are charged at modest rates for conferences and training courses in order to maximise accessibility for volunteers and for those working in disadvantaged communities. The quality of our services shines through in all we do. All of our registered care services comply with the standards set by the Care Quality Commission (CQC). Our Ofsted grading for education at VEC is rated as good with outstanding features. Seventy-five per cent of staff are working towards an NVQ qualification of level 2 or above in our CQC registered services.

Livability Annual Report & Accounts 2012

The ÂŁ600,000 capital appeal at John Grooms Court, Norwich was successfully completed and the five additional rooms and new lift at the residential care home are now fully operational. The first phase of the Sparkle Appeal at the Victoria Education Centre at Poole, to fundraise for a new hydrotherapy pool costing ÂŁ2.8 million, is completed and work is to commence in October 2012 following a groundbreaking ceremony attended by our Patron HRH The Princess Royal. As we move forward we are committed to continually improving our services to ensure that they fully meet the needs of disabled people. Making this happen is dependent upon working with commissioners and local authorities and on developing creative financial solutions. We also want to involve our service users more in the running of the organisation and so we have introduced a Partnership Board to assist the process of training a group of service users to be representative of their peers and developing their skills in committee work and articulating their views. We intend to invest further in this over the coming year. What we did in 2011/12 In 2011/12 we aimed to achieve the following strategic objectives: Objective 1: To develop and grow leading edge, wide ranging, quality services to enable disabled and disadvantaged children, young people and adults to live life to the full and make choices they need to suit their lifestyle and ambitions. What we said we would do

What we did

Re-shape existing provision and support services to link up more closely to changes in the disability market.

In 2011/12 we brought education and the care/support directorates together into one single operational group in order to offer a more joined up service and more flexible services.

Refine and improve Livabilityâ&#x20AC;&#x2122;s quality management system in the light of the new registration standards and inspection frameworks.

This year we have been developing a new quality framework based on new care standards, including Livability standard requirements for safeguarding and health & safety. The first draft is complete and we hope to roll this out from September 2012.

Expand and develop existing businesses and research new business opportunities.

After working closely with local authorities our residential care services in north London are being extended to include provision for 16-19 year olds. A new Lifestyle service was launched in north London with the support of the City Bridge Trust to support disabled adults in tackling social exclusion. We launched the Livability Enterprise Agency to provide employment opportunities to disabled and disadvantaged people and this new service is slowly but surely securing new work and enabling start-up of new businesses by disabled people.

Embrace the theme of progression and provide supported living and home care services to more people.

The Supported Living/Lifestyle service in Gloucestershire has increased delivery hours and will continue to extend its services as more disabled people receive personal budgets. We combined Dorset Lifestyles, Dorset Supported Living and Talbot Manor Residential Care into one single service in order to provide more flexible services and ensure management cost efficiency. We intend to

Livability Annual Report & Accounts 2012

roll this model out further in the future and more amalgamation is planned through a hubs model of joined-up services in identified geographic locations. Reshape education provision according to need.

Considerable work has been invested in developing continuing education at VEC which now also offers services to individuals aged 19 and over. We have introduced an off-site learning opportunity for students at Nash and intend to offer more opportunities for students and service users to participate in innovative projects designed to enhance their skills.

Livability Annual Report & Accounts 2012

Livability Annual Report & Accounts 2012 Objective 2: To inspire and train link churches and ourselves to respond effectively to issues of poverty, homelessness, disability and injustice in a range of practical ways Objective 2: To inspire and train link and ourselves to respond effectively to through community development andchurches social action. issues of poverty, homelessness, disability and injustice in a range of practical ways through development and What socialwe action. What wecommunity said we would do did What we said we would do Widen the Community Mission partnership work. Widen the Community Mission partnership work.

Implement a community involvement and volunteering strategy for Livability. Implement a community involvement and volunteering strategy for Livability.

What we did In 2012 we successfully completed the partnership with Tearfund which resulted in over 3,500 people joining the Community Mission movement. Thethe positive ending of In 2012 we successfully completed partnership with the partnership led to of the Insidethe Tearfund which also resulted in the overpublication 3,500 people joining Out DVD-based course created by Livability, Community Mission movement. The positive Tearfund ending of andpartnership the Evangelical courseof has the also Alliance. led to the This publication thealready Inside beenDVD-based used by 250 churches. Out course created by Livability, Tearfund and the Evangelical Alliance. This course has already Livability’s also been raised by attending been used profile by 250has churches. Paralympics meetings with More than Gold, the main agency helping churches with the Olympic Livability’s profile has alsoengage been raised by attending games, working with allwith the More members Churches for Paralympics meetings than of Gold, the main All, the Christian disabilityengage coalitionwith andthe collaborating agency helping churches Olympic with the working Church Urban on the publication of for games, with allFund the members of Churches Keeping the Faith, a guidecoalition to help Christian projects All, the Christian disability and collaborating maintain their Christian distinctiveness. with the Church Urban Fund on the publication of Keeping the Faith, a guide to help Christian projects Having a new social impact measurement maintainimplemented their Christian distinctiveness. tool, all Community Mission advisory work now results in an evaluation which will soon appear online. Two recent Having implemented a new social impact measurement evaluations rated theMission help provided Livability’s tool, all Community advisorybywork now results in advisors as ‘invaluable’. an evaluation which will soon appear online. Two recent evaluations rated the help provided by Livability’s At one training event this year, which focused on advisors as ‘invaluable’. Christian charity and church governance issues, over 80% said they felt better andfocused confident At one training event thisequipped year, which on that the event would make a difference in their work. Christian charity and church governance issues, over Generally speaking, between 60-80% all attendees 80% said they felt better equipped andofconfident that the say our events exceed their expectations. event would make a difference in their work. Generally speaking, between 60-80% of all attendees say our events exceed their expectations. Livability’s volunteers come from many backgrounds and bring a wealth of skills to our work. This year they have givenvolunteers thousandscome of hours bymany escorting people, Livability’s from backgrounds driving, assisting events, office work, high level and bring a wealthwith of skills to our work. This year they legal skills raising awareness disabilitypeople, issues. have givenand thousands of hours by of escorting Livability’s involvement with the community andlevel local driving, assisting with events, office work, high churches becoming more important to us and we legal skillsisand raising ever awareness of disability issues. are developing this work. In the 2012 we appointed a Livability’s involvement with community and local Church Engagement and increased churches is becomingManager ever more important to the us and we support provided to work. our operational centres to build are developing this In 2012 we appointed a more meaningful relationships their local churches. Church Engagement Manager with and increased the support provided to our operational centres to build more meaningful relationships with their local churches.

10 10

Livability Annual Report & Accounts 2012

Objective 3: To continue to develop, engage and recognise our staffâ&#x20AC;&#x2122;s contribution to our work in line with our corporate values to achieve the needs of service users and the services provided to them. What we said we would do

What we did

Implement a revised learning and development plan (staff).

This year we reviewed and refined learning and development for frontline staff with a training matrix profile and implemented a revised approach to induction standards. Over 70% of support staff have gained a vocational qualification. We have also resourced units for an e-learning pilot as we believe this could bring more effective and efficient training for Livabilityâ&#x20AC;&#x2122;s staff. We launched a revised staff handbook which has been well received.

Focus on leadership and management development.

In 2011/12 we ran an in-house management development programme to improve the skills of our managers and held a leadership conference for 50 senior managers to involve them in strategy development and to foster a culture of effective leadership.

Develop a strategy to address sickness absence and staff turnover.

We developed a proactive approach to sickness absence and staff turnover and introduced a system of trigger levels. This led to greater awareness of the impact of staff absences, improved absence reporting and addressed many of the issues concerning long term sickness.

Review the way we reward staff.

This year we carried out an organisation-wide job evaluation and benchmarking exercise to improve clarity and inform reward strategy. In addition, we recognised the outstanding contribution of the six winners of the Princess Royal Livability Awards. We also recognised the achievement of 26 other members of staff who received the Trusteesâ&#x20AC;&#x2122; Award.

Celebrate the diversity of our workforce.

We reviewed our equality strategy, held an equality and diversity development programme with senior managers and introduced a corporate equality and diversity data monitoring set.

Livability Annual Report & Accounts 2012

Objective 4: To raise profile and influence within the regional and national disability arena as Livability seeks to become further known as an expert in the field of disability. What we said we would do

What we did

Develop and implement a profile raising strategy.

Increasing Livabilityâ&#x20AC;&#x2122;s profile was a key area of focus over the last year and we doubled the amount of press coverage we received as a result. Over the year we reached an average of over 5 million people a month, equivalent to more than ÂŁ30k of advertising spend.

Champion disabled peopleâ&#x20AC;&#x2122;s needs and wishes.

In the current financial environment it has become more important than ever to champion the issues that matter most to disabled people and we have continued to campaign to preserve their hard won rights over the last year. We have worked in partnership with other disability organisations and coalitions to challenge Government proposals on reforming Disability Living Allowance. The changes would have had a devastating impact on disabled people living in residential care and we conducted a survey to ascertain the extent to which they would affect our service users. The results of the survey confirmed our concerns and showed that many of our service users would have become prisoners in their homes without the resources and support they need to play an active role in community life. The findings were distributed to the press, and our partners, and played a part in achieving a change of Government policy.

Position Livability as a specialist provider of services and a widely known expert in the field.

We have worked with the Office of Disability Issues and the Minister for Disabled People in developing a new disability strategy which will impact on the lives of disabled people for many years to come. We shared our expertise as a specialist provider but were very keen to ensure that the views of our service users were captured and communicated to those who have the power to make a real difference to their lives. To facilitate this we held a national conference at which a range of our service users shared their concerns regarding the challenges they face and their ideas for how the Government could bring about lasting change. We collated the results of the conference and submitted them to the Government in what was the first ever Livability service user response to a key policy consultation. This approach recognises that our expertise comes from the depth and breadth of the disabled people we work with.

Livability Annual Report & Accounts 2012

Objective 5: To increase efficiency and secure the financial resources required to deliver Livabilityâ&#x20AC;&#x2122;s mission through effective management and structures and income generation. What we said we would do

What we did

Review the management and structure of the Charity to increase efficiency.

A substantial review was undertaken of the operational management structure which has now bedded down under the newly formed Operations Directorate. We are committed to continuing the review of our management structure and ensuring the efficiency of our overhead costs.

Further develop the fundraising strategy.

Following a change of senior management in the fundraising department a new fundraising strategy is being developed so that we can target our fundraising more closely to the needs of our students and service users. Return on investment is a major focus in order that we use our scarce resources to best advantage.

Maintain income levels for our services.

We have undertaken a considerable amount of work to analyse our fee structures in services to check their competitiveness. We have worked well with local authorities to maintain our fee income with minimal reductions.

Increase efficiency in procurement and purchasing.

We reviewed many central supplier contracts this year generating significant savings on office supplies and telecommunications. Our proactive approach to claims management has contained insurance costs.

Livability Annual Report & Accounts 2012

Objective 6: To promote and implement a user involvement strategy that ensures Livability is responsive to the needs of the people who use the services and who are the centre of all that the organisation undertakes. What we said we would do

What we did

Further develop the strategy to better understand the needs and wishes of our service users.

Livabilityâ&#x20AC;&#x2122;s service user Partnership Board, which is chaired by a Trustee, Jenny Edwards MBE, has undertaken some very successful projects this year, conducting a service user survey and responded to a government consultation on fulfilling potential. The Partnership Board continues to grow in strength and looks forward to increasing its voice within the management and governance of Livability.

Support service users to make their own decisions.

Every service user has a fully worked up and agreed individual care plan and each individual is fully involved when this plan is drawn up and agreed. Livability seeks to ensure that as far as possible each service user is fully supported to make their own choices and decisions and to ensure that these are expressed in the plans agreed with their funding body.

Livability Annual Report & Accounts 2012

Our objectives for 2012/13 To place the customer at the centre of all we do.

To continually improve the quality of the services we provide from the service usersâ&#x20AC;&#x2122; perspective. To ensure our services offer appropriate choices for development and progression. To be customer-focused and deliver the services that disabled people want.

To ensure the financial health of the Charity in order to sustain growth.

To deliver a fundraising plan that reflects and enables our strategic priorities, sets clear objectives for raising and targeting the use of unrestricted funds and optimises return on investment. To undertake a robust review of each of our core business streams in order to maintain and enhance their quality, value and contribution. To seek out opportunities for investment in new businesses so that we can grow our income to the benefit of our service users.

To ensure the Charity is efficient and effective.

To ensure that our pricing/costing is robust and relevant to the current and emerging market. To continuously review and minimise our overhead costs while maintaining quality and effectiveness in all our front line services. To improve our management structures at all levels to ensure we are efficient, effective and fit for purpose. To develop our quality and management reporting systems in order to monitor and minimise financial and operating risks effectively across the core business streams.

To provide impact and transformation of lives as the largest Christian faith based disability Charity.

To reflect our Christian ethos in all that we do and the way we work. To position the Charity to support churches in their own community engagement and in harnessing the church community to help in Livabilityâ&#x20AC;&#x2122;s work. To work in partnership with others so that, together, we are stronger in delivering our strategic objectives.

Livability Annual Livability Annual Report Report&&Accounts Accounts2012 2012

REPORT OF THE BOARD The Board of Trustees (the Board) submits its Report and Financial Statements for the year to 31 March 2012. Structure, Governance and Management The Charity was established in 2007 following the successful merger between The Shaftesbury Society and John Grooms to secure the future of the two predecessor charities, which had served disabled people for almost 150 years, to become the UK’s largest Christian disability charity. The th Charity’s initially registered name of Grooms-Shaftesbury was changed to Livability on 20 October 2010. Livability is a registered Charity (Charity Registered No.1116530) and a company limited by guarantee (Company Registered No.5967087). The Company is governed by its Memorandum and Articles of Association (the governing documents) as amended during 2009. In the event of winding up, each Member’s liability is limited to £1. Board of Trustees The Board currently comprises 13 Trustees who are collectively responsible for the governance of Livability. They are subject to election or re-election according to procedures set out in the governing document. All members of the Board give their time voluntarily and receive no benefits from Livability. Some claim reasonable expenses in connection with their duties as Trustees (these are shown in Note 7 of the Accounts). The Governance Development Sub-Committee, which monitors the effectiveness of Livability’s governance arrangements, oversees Trustee succession planning and recruitment taking into account the skills required as well as diversity and experience gaps. Since Livability was founded new appointments have brought additional skills and experience to the Board and increased its diversity and experience of disability. Two new appointments were made in the year. New Trustees receive a comprehensive induction into their role and responsibilities. All Trustees are encouraged to see first-hand the services Livability provides to inform their understanding of its mission and work and training is provided, as required, on specific issues affecting Livability. The Board seeks to ensure that all activities remain within the law and Livability’s charitable objectives. The Board decides Livability’s strategic direction and agrees an annual budget and three year rolling business plan. The corporate governance framework defines other matters reserved for Board decision and the Board monitors decisions made under delegated authority. The Board meets at least five times in each calendar year to consider, and act on, advice and information on performance and achievements in delivering the business plan. Further meetings are devoted to in-depth discussion of the key strategic issues and major changes facing Livability. All Board meetings are attended by the Chief Executive and other senior executives. Responsibility for monitoring key areas of activity and performance is delegated to sub-committees and local governors’ boards comprised of Trustees and other members appointed for their particular expertise and knowledge. Some appointments to Local Governors’ Boards are also made on a representative basis. The Board may establish ad hoc sub-committees to undertake major service reviews or oversee major projects and appeals. The established sub-committees are: •

Safeguarding Board – reviews and monitors all safeguarding concerns relating to Livability’s service users.

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012

•

• • •

•

Audit – oversees internal audit, Corporate Trustee responsibilities, risk management and arrangements for the external audit. The independent chair of this sub-committee, Alastair Collett, is a solicitor and a former Trustee of The Shaftesbury Society. Finance and General Purposes – oversees all matters related to finance, funding, asset management, human resources, remuneration and information & communication systems (ICS). Fundraising, Communications and Community Engagement – oversees fundraising, communications, campaigning, public relations, Community Mission and volunteering. Governance Development – oversees the governance process, Trustee recruitment, appointment, induction and Board development and appraisal. Education Oversight – oversees quality, performance and development issues at each education establishment and receives reports from the Local Governors’ Boards. These undertake a pivotal role in relation to the regulatory framework, the quality improvement cycle and capacity to enhance achievement and operate within a formal scheme of delegation. Residential & Community Services Oversight – oversees quality, performance and development of all services for disabled adults.

Chief Executive The Chief Executive is responsible under the Board for the overall high level management and direction of Livability, for implementation of Board policy and for development and delivery of the corporate strategy and business plan. The Chief Executive is assisted by a group of senior executives known collectively as the Directors Management Team. The Board approves and regularly reviews the delegation levels for financial authority to the Chief Executive and senior executives. rd

Mike Smith retired from his position as Chief Executive on 3 August 2012. Mike made an important contribution to the running of Livability since he took up his post in October 2010. His retirement was at the end of some 47 years of work, with his first experience in the field of disability being as a volunteer for Cheshire Homes in Ampthill. Mike was deeply committed to Livability’s service users and those with disabilities. We wish him well. Group Structure Trusts Since the date of merger all but one trust, the Samuel Hale Bibby Endowment Fund, have been vested in the corporate Trusteeship of Livability. Subsidiary Entities and Associated Charities The Charity has four subsidiary trading entities, as follows: Livability Contracting Services Limited is engaged in construction and other contracting services on behalf of Livability. Livability Icanho Limited provides brain injury rehabilitation services at our Icanho centre in Suffolk. Any net surplus arising in these companies is gift aided to Livability. Currently the two remaining subsidiaries, Shaftesbury Care Limited and Grooms-Shaftesbury Limited, are both dormant. As the corporate Trustee and sole legal member, Livability fully consolidates the results of The Shaftesbury Society and John Grooms, together with the active trading subsidiaries noted above. In addition, the financial results of Kingsley Hall Church and Community Centre (a company limited by guarantee and registered as a charity) are consolidated into the accounts of Livability. Livability also includes the results of Livability Ireland (a company limited by guarantee and registered as a charity in the Republic of Ireland), which supports the development of spinal injury rehabilitation 17 17

As the corporate Trustee and sole legal member, Livability fully consolidates the results of The Shaftesbury Society and John Grooms, together with the active trading subsidiaries noted above. Livability Annual Report & Accounts 2012 In addition, the financial results of Kingsley Hall Church and Community Centre (a company limited by guarantee and registered as a charity) are consolidated into the accounts of Livability. Livabilityalso Annual Report Accounts 2012 Livability includes the& results of Livability Ireland (a company limited by guarantee and registered as a charity in the Republic of Ireland), which supports the development of spinal injury rehabilitation

services in a number of south Asian countries. Livability provides both financial and non-financial 17 support to this charity. Employment of Disabled People As a Charity supporting disabled people and as part of our Equal Opportunities and Diversity policy, we are members of the â&#x20AC;&#x2DC;Two Tick Positive About Disabled People Schemeâ&#x20AC;&#x2122;. As such we commit to interviewing all disabled applicants who meet the minimum criteria for job vacancies to consider them on their abilities. We make every effort when employees become disabled to make sure they stay in employment and are able to access learning and development and career opportunities. Disability awareness training for all employees and volunteers is part of our standard training programme. We currently review our progress on these commitments each year as part of monitoring our Equal Opportunities and Diversity policy and setting equality objectives. Employee Communication and Consultation We have almost 1,200 (full time equivalent) people working for us across a wide range of different units or projects and we are very proud of their commitment which is at the heart of providing quality services to the people we support. We work hard to communicate, consult and engage effectively with our people. In 2011/12 we met quarterly with our Employee Forum, as a representative body, to share information and obtain their views on a range of issues including organisational performance, provided regular briefings from our Chief Executive and launched and rolled out an intranet. Our staff and volunteers nominated 26 of their colleagues for outstanding contributions, of which six received The Princess Royal Livability Award directly from HRH The Princess Royal. Use of Volunteers Throughout the 2011/12 period Livability could not have progressed its vision of transforming society for disabled and disadvantaged people without the commitment of its volunteers. This year 149 Individuals invested hundreds of hours as Trustees, fundraisers, administrators, gardeners, activities helpers and many other roles. As part of our review of volunteering we partnered with Kingston University to research both our current volunteers and staff members involved in the management of volunteers. The analysis of the data has given a clear picture into how we can strategically develop the number and impact of those volunteering with Livability. We have learnt lessons about the need to simplify our recruitment systems whilst maintaining robust safeguarding. Similarly, we have recognised the need to bring further clarity of purpose and expectations for all Livability volunteering opportunities. In numerical terms, volunteers gave approximately 2,600 hours per month to the work of the Charity. The research also enabled the identification of centres of excellence for volunteering within the organisation on which we can build into the future. In 2012/13 this new strategic approach to volunteering will be implemented across the organisation.

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012

Internal Financial Control and Organisational Risk The Board is responsible for ensuring that appropriate systems of financial control are in place including the provision of satisfactory control over Livability’s accounting records and transactions, safeguarding its assets and taking reasonable steps for the prevention and detection of fraud. Financial control is underpinned by: •

Accountabilities and authority levels across all areas of the Charity’s operations which are reviewed at least annually.

•

Key financial policies and procedures reviewed at least annually.

•

Internal audit resources working to a programme based on assessed audit need and risk with direct access, if necessary, to the independent chair of the Audit Sub-Committee.

•

An agreed set of key performance indicators which are monitored at least quarterly, with leading indicators monitored on a monthly basis.

The Board realises the importance of effective risk management and directs resources to mitigate the major risks to which Livability is exposed. The strategic risks of either a direct financial or nonfinancial nature have been identified and are documented in Livability’s Risk Register and the impact and probability of each risk has been evaluated. Appropriate actions to mitigate each risk to an appropriate level are documented, assigned and monitored. The Risk Register is reviewed regularly by the Directors Management Team and the Audit Sub-Committee, and their reports are, in turn, reviewed by the Board. As a further safeguard, all members of staff have the opportunity to identify risks through both formal and informal processes, including a “whistleblowing” procedure. All such reports are reported to and monitored by the Directors Management Team and the Audit SubCommittee. The following strategic risks have been identified: 1. Changes in placement arrangements and income streams for many learners attending our educational establishments. In response to these changes Livability is: • Closely monitoring the opportunities and risks arising from the changes. • Developing models of provision in anticipation of a higher demand for day placements and to provide new services with diversified income streams that fit within a continuum of lifelong learning. 2. Reduced income and operating margins. This continues to impact Livability. There are unavoidable increases in the costs of providing our services. Funding from both voluntary and statutory sources is under pressure due to falling living standards and rising unemployment combined with the public sector funding reductions. Livability has to work hard to achieve a balanced budget and seeks to do this by: •

Seeking and making efficiency savings.

•

Remodelling the cost base for services.

•

Pressing funders for full recognition and recovery of all the relevant costs.

•

Keeping occupancy voids low through increased marketing activity.

•

Focusing on donor recruitment and retention activities.

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Livability Annual Report & Accounts 2012

•

Developing services as hubs for a range of different, but joined up, activities to meet the needs of disabled people in the local communities we serve.

3. The scale of the investment programme that is required to maintain and upgrade the premises and facilities at our education establishments, older residential/nursing care services and improve our ICS capability and infrastructure. We are addressing the risks here by: 

Conserving our resources and targeting improvements critical to business continuity, efficiency, quality of care and fulfilment of educational attainment.



Seeking ways to re-provide and improve services in a way that ensures these have the flexibility to meet both current and future demands and are resilient to future changes.



Ensuring that building and systems projects are undertaken with full rigorous control.



Managing Livability’s cash reserves and looking to release assets no longer required in order to sustain internal resources for investment activity.



Carefully targeted capital appeals seeking to maximise funding from individual, statutory and trust funding sources.

4. The 2009 triennial actuarial valuations of Livability’s two closed final salary pension schemes were concluded during 2010 and, due to increased life expectancies factors and the prevailing lower market discount rates used in the valuation of future pension liabilities, necessitated additional annual deficit funding payments to be made into the two schemes. This has constrained Livability’s ability to increase its levels of investment in developing the sustainably of its disability facilities for the future. The Pensions Act 2008 reforms, in particular relating to auto-enrolment, are likely to add to the cost burden from pensions borne by Livability. Livability is managing these risks by: 

Mitigating the cost pressures arising from auto-enrolment.



Continuing to ensure that the Trustees of the closed defined benefit pension schemes are provided with regular briefings on the strength of Livability’s covenant and ensuring funds released from asset disposals remain available for investment in Livability’s work.

Going Concern No material uncertainties that cast significant doubt about the ability of the Charity to continue as a going concern have been identified by the Trustees. Livability’s charitable activities, together with the factors likely to affect its future development, performance and financial position, are set out in the Trustees’ Annual Report. The Charity’s result for the year, cash flows, liquidity and borrowings, net asset values and reserves are fully detailed in the Financial Statements and accompanying notes on pages 28 to 57. The Trustees have considered the diversity and degree of volatility of the Charity’s funding sources, its cash flow forecasts, levels of working capital and the strength of its Balance Sheet, and have concluded that there is a reasonable expectation that Livability can manage its business risks and has sufficient resources to continue in operational existence for the foreseeable future. Consequently, the Trustees have continued to adopt the going concern basis of accounting in preparing these Financial Statements.

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LivabilityAnnual Annual Report Report & Accounts Accounts 2012 Livability 2012

Livability Livability Annual Annual Report Report & & Accounts Accounts 2012 2012

RESULTS FORTHE THE YEARAND AND RESERVES RESULTS RESULTS FOR FOR THE YEAR YEAR AND RESERVES RESERVES Income andExpenditure Expenditure Account Income Income and and Expenditure Account Account The operatingconditions conditionsexperienced experienced by by Livability Livability over over the the last last twelve twelve months months have have been been some some of The of the the The operating operating conditions experienced by Livability over the last twelve months have been some of the most challenging in its history. This has occurred as a result of the continuing problems in the wider most challenging in its history. This has occurred as a result of the continuing problems in the wider most challenging in its history. This has occurred as a result of the continuing problems in the wider financial economy, with with the consequent consequent implications on on funding levels levels for the the disability and financial financial economy, economy, with the the consequent implications implications on funding funding levels for for the disability disability and and educational care sectors. Like many other charities and private sector providers in these vital areas of educational care sectors. Like many other charities and private sector providers in these vital areas educational care sectors. Like many other charities and private sector providers in these vital areas of of care and support for disabled adults and young people, Livability has had to deal with some very care care and and support support for for disabled disabled adults adults and and young young people, people, Livability Livability has has had had to to deal deal with with some some very very difficult and uncertain uncertain funding and and operating conditions. conditions. However, despite despite such problems problems it has difficult difficult and and uncertain funding funding and operating operating conditions. However, However, despite such such problems itit has has demonstrated its resilience and shown its determination to maintain the level and quality of its demonstrated its resilience and shown its determination to maintain the level and quality of demonstrated its resilience and shown its determination to maintain the level and quality of its its services for disabled people which are central to its whole purpose and ethos. services services for for disabled disabled people people which which are are central central to to its its whole whole purpose purpose and and ethos. ethos. Although the funding funding of educational educational and and care care services services has has proved proved challenging challenging the the Charity Charity has has Although Although the the funding of of educational and care services has proved challenging the Charity has successfully managed many of these risks. However, it has not been possible to achieve total successfully successfully managed managed many many of of these these risks. risks. However, However, itit has has not not been been possible possible to to achieve achieve total total immunity from the impact of some of the major shifts in Government and public policy created by immunity from the impact of some of the major shifts in Government and public policy created immunity from the impact of some of the major shifts in Government and public policy created by by measures, such as as Quantitative Easing Easing (QE), taken taken by the the Bank of of England in in an attempt attempt to reflate measures, measures, such such as Quantitative Quantitative Easing (QE), (QE), taken by by the Bank Bank of England England in an an attempt to to reflate reflate theeconomy, economy,reduce reduceinterest interest rates and and minimise public public sector sector borrowing costs. costs. Although Although such such policy the the economy, reduce interest rates rates and minimise minimise public sector borrowing borrowing costs. Although such policy policy initiatives may have mitigated the worst effect of the economic recession on the wider economy they initiatives may have mitigated the worst effect of the economic recession on the wider economy they initiatives may have mitigated the worst effect of the economic recession on the wider economy they have also introduced some, possibly unintended, consequences such as depressing the discount have also introduced some, unintended, consequences such as the discount have some,ofpossibly possibly consequences such influenced as depressing depressing thesentiment discount rates also usedintroduced in the valuation long-termunintended, pension liabilities and adversely market rates used in the valuation of long-term pension liabilities and adversely influenced market sentiment rates used in the valuation of long-term pension liabilities and adversely influenced market sentiment and transaction volumes in the commercial property sector. and and transaction transaction volumes volumes in in the the commercial commercial property property sector. sector. The dynamics of these differing economic factors is reflected in the Charity’s Statement of Financial The dynamics of these differing economic factors reflected in the Charity’s Statement of The dynamics thesebefore differing economicincreased factors is isfrom reflected the year Charity’s Statement of Financial Financial Activities. Net of income impairment £0.8minlast to £1.2m in the current year Activities. Net income before impairment increased from £0.8m last year to £1.2m in the current year Activities. Net income before impairment increased from £0.8m last year to £1.2m in the current year and operating cash flow, before higher payments made to the closed pension funds, remained and operating cash flow, before higher payments made to the closed pension funds, remained and operating cash flow, before higher payments made to the closed pension funds, remained healthy. The value of the two pension scheme assets showed an increase from £26.4m to £28.2m, in healthy. The of the two scheme assets showed an increase from £26.4m to in healthy. The value value of the the additional two pension pension scheme increasethe from £26.4m to £28.2m, £28.2m, in part benefitting from funding paidassets by theshowed Charity.an However, FRS 17 valuation of the part benefitting from the additional funding paid by the Charity. However, the FRS 17 valuation of the part benefitting from the additional paid byprimarily the Charity. the abnormally FRS 17 valuation of the pension scheme liabilities rose by funding £5.2m (16%) as a However, result of the low discount pension scheme liabilities rose by £5.2m (16%) primarily as a result of the abnormally low discount pension scheme liabilities rose by £5.2m (16%) primarily as a result of the abnormally low discount rates, which have fallen almost 20% as a result of QE. This sort of volatility, as a result of external rates, which have almost as a of This of as result of rates, haveisfallen fallen almost 20% 20% asyear’s a result result of QE. QE.valuations This sort sort where, of volatility, volatility, as aa again result of external external policywhich initiatives, also reflected in this property despite arising on the policy initiatives, is also reflected in this year’s property valuations where, despite a gain arising on the policy initiatives, is also reflected in this year’s property valuations where, despite a gain arising on the the remaining interest in the Charity’s Head Office building, our external Valuers have reduced remaining interest in the Charity’s Head Office building, our external Valuers have reduced the remaining interest in the Charity’s Head Office building, our external Valuers have reduced the valuation of some of our residential care homes due to hesitant market sentiment following the failure valuation of some of our residential care homes due to hesitant market sentiment following the failure valuation of some of our residential care homes due to hesitant market sentiment following the failure of one of the major commercial care providers, which had borrowed extensively, and a much reduced of one major ofvolume one of ofofthe the major commercial commercial care care providers, providers, which which had had borrowed borrowed extensively, extensively, and and a a much much reduced reduced transactions. volume of transactions. volume of transactions.

Livability’s total incoming Livability’s total incoming Livability’s total incoming resources for the year as resources for year resources forthethe the year as as presented in Statement of presented in the Statement of presented the Statement of Financial inActivities (SOFA) Financial Activities (SOFA) Financial (SOFA) were £1.2mActivities (2.9%) lower than Residen%al & were £1.2m (2.9%) lower than were £1.2m (2.9%) lower Community in the year to March 2011than due in year 2011 due Services 46% intothe thecontinuing year to to March March 2011 from due pressure to continuing pressure from the tothe continuing pressure the Dona%ons economic and from financial economic and financial and Gi+s economic and financial pressures in the wider national Community pressures in the wider national 6% pressures the as wider national economy inand a result of Mission & economy and as a result of economy and asthat a had result of closing services been Other 2% Legacies 4% closing services that had been closing services that had been contributing net deficits, where Educa%on contributing deficits, where contributing net deficits, where their longernet term viability and 42% their longer term their longer term viability viability and quality of service were and not quality of were not quality of service service were not sustainable at the level of fees sustainable at the level of fees sustainable at the level of fees which commissioners are which are which commissioners are currentlycommissioners willing to pay. currently currently willing willing to to pay. pay. As a result the management team and the staff have collectively sought to manage the full impact of As result team and have sought to full of As a reductions result the the management management team through and the the astaff staff have collectively collectively sought to manage manage the full impact impact of thea in income streams continuing drive to reduce cost, whereverthe possible, whilst the reductions in income streams through a continuing drive to reduce cost, wherever possible, whilst the reductions in income streams through a continuing drive to reduce cost, wherever possible, whilst 21

Where our money came from

21 21

Livability Annual Report & Accounts 2012

LivabilityAnnual AnnualReport Report & & Accounts Accounts 2012 2012 Livability

ct charitable expenditure maintaining has been our reduced service quality £1.3m levels. been reduced reduced by by £1.3m £1.3m maintaining our serviceby quality levels. Total Total direct direct charitable charitable expenditure expenditure has has been (3.4%) through a combination of tight expenditure control, national negotiation of contracts for goods e control, national negotiation of contracts for goods (3.4%) through a combination of tight expenditure control, national negotiation of contracts for goods and aa flexible demand. The The year year saw saw the the e to deal with fluctuating demand. Themaintaining year saw the andservices, services, and and maintaining flexible workforce workforce to to deal deal with with fluctuating fluctuating demand. financial benefit of the redundancy programme which had to be announced at the end of the 2010/11 hich had to be announced at the end of the 2010/11 financial benefit of the redundancy programme which had to be announced at the end of the 2010/11 financial year, and benefit team restructuring restructuring that that he operations management that financial team year, restructuring and the the operational operational benefit of of the the operations operations management management team accompanied accompanied that. accompanied that. that.

Livability, and therefore its its Livability, and therefore its beneficiaries, benefit from the the beneficiaries, benefit from the continuing generous support of of continuing generous support of both corporate both individual and corporate both individual and corporate donors, trusts and government government donors, trusts and government bodies. The continuing support support bodies. The continuing support Residen%al & Community from donors has, despite the the from donors has, despite the Services 49% described economic pressures described Raising funds economic pressures described above, meant that voluntary voluntary above, meant that voluntary 3% income from donations and gifts gifts income from donations and gifts Community Governance maintained at for maintained at at for theMission year & was for the year was maintained 1% other level 2% as in 2010/11. the same level 2010/11. the same the as in 2010/11. Educa%on Of of Of the total voluntary income of 45% Of the total voluntary income of £4.2m, for £4.2m, £1.2m was restricted for £4.2m, £1.2m was restricted for funding capital projects and funding and funding capital projects and specific areas of work, the same specific same specific areas of work, the same value as in the prior year. value year. value as in the prior year. Legacies continue to be be aabeing significant way way that that donors donors give to Livability with just over £1.5m being Legacies significant being donors give to Livability with continue just over to £1.5m given inthis thismanaged way in in both both 2011/12 and the the prior prior year. year. The fundraising team have managed their costs way 2011/12 costs ear. The fundraisinggiven team inhave their costs and theyear yearthrough through reductions reductions in in staff staff costs costs and and by by successfully successfully limiting expenditure. ininexpenditure. the y successfully limiting

How we spent our money

Education services maintained income levels levels in in the the year year compared to 2010/11. Within this total, two Education maintained income two the year compared to 2010/11.services Within this total, two of the thewhile Education unitsunit increased student numbers numbers and therefore income, while the third unit of Education units increased unit saw saw aa ers and therefore income, the third saw a student reduction both measures. measures. Staffing and and other other costs costs linked with the increased numbers at the reduction inin numbers both Staffing the first first costs linked with the increased at the first two units led to an increase in costs and a cost reduction and redundancy programme had to be put two units led to anhad increase in costs and a cost reduction put in in eduction and redundancy programme to be put in place at reduced the third thirdincome unit which which somewhat mitigated mitigated the adverse effect of the reduced income levels. at the unit somewhat levels. d the adverse effectplace of the levels. Overall, costs in Education services rose rose by by £0.4m £0.4m (3%). Actions are in place to increase student Overall, costs Education services student .4m (3%). Actions are in place toin increase student numbers in the third unit which are bearing fruit numbers or the 2012/13 academic year.in the third unit which are bearing fruit for the 2012/13 academic year.

Residential and Community Community Services experienced aa £0.9m £0.9m (5%) (5%) reduction reduction in Residential and experienced in income. income. Of Of this, this, half half the the d a £0.9m (5%) reduction in income. Of this, halfServices the reduction came from closed closed units. The The remainder remainder is is the the result result of of reduced reduced income income in reduction came from units. in residential residential homes homes is the result of reduced income in residential homes and supported supported living work as to funders tighten tighten budgets budgets for for the the provision provision of and living as funders of care care and and take take longer longer to to udgets for the provision of care and takework longer confirm places in homes. Of the £1.8m (9%) reduction in costs in the year, £0.6m came from closed confirm places came in homes. Of the £1.8m (9%) reduction in costs in the year, £0.6m came from closed duction in costs in the year, £0.6m from closed units with the the remainder remainder being generated by by changing changing demand demand levels levels in in supported supported living with generated living units units and and by by nging demand levelsunits in supported living unitsbeing and by closemanagement management of of the the cost cost base base in in residential residential homes. homes. close homes.

Central support costs costs have been been kept kept under under control control with with a a small small reduction reduction year-on-year. Central support have year-on-year. Governance Governance rol with a small reduction year-on-year. Governance costs also continue to show a downward trend. costs also continue to show a downward trend.

Livability has 5-year rolling rolling programme programme of of property property valuations. valuations. This This year, year, the the programme programme evaluated aa 5-year evaluated erty valuations. ThisLivability year, thehas programme evaluated the current market value of Livability’s five large care homes for the first time since the time current market of Livability’s five large care homes for the first time since 2007. 2007. Changes Changes in in care homes for the first since 2007.value Changes in theyears, Government’s levels of funding funding for residential residential care care over over the the last last five five years, years, sentiment the Government’s levels of sentiment affecting affecting the the care over the last five sentiment affecting the for valuation of care care future facilities following the the collapse collapse of of Southern Southern Cross, Cross, and and expected valuation of facilities following expected future future funding funding e of Southern Cross, and expected funding restrictions mean that the valuations arrived at are significantly lower than in 2007. restrictions mean that valuations arrived at are significantly lower than in 2007. The The resulting resulting are significantly lower than in 2007. The the resulting charge ofSOFA £2.1mbut for since impairment of properties properties has has been been reflected reflected in charge £2.1m for impairment in the the SOFA SOFA but but since since this this has been reflected in theof this of revaluation movement has no cash impact and may reverse in the future, it has been presented revaluation movement has no cash impact and may reverse in the future, it has been presented may reverse in the future, it has been presented in the theinSOFA. SOFA. The valuations valuations have have also also given given rise rise to to a a net in The net reduction reduction in in the the Charity’s Charity’s also given rise to separately aseparately net reduction the Charity’s property revaluation reserves of £1.2m, which is shown in unrecognised gains & losses. property shown in unrecognised gains revaluation & losses. reserves of £1.2m, which is shown in unrecognised gains & losses.

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Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012

The impact of Quantitative Easing (QE) has been to substantially reduce gilt and bond yields that are used in valuing pension liabilities for financial statement purposes which contributed to an increase in the pension deficits of £4.3m for the year. Liabilities, on an FRS 17 basis, increased by almost 16%, primarily as a result of the Bank of England’s actions on QE. Such short-term fluctuations, which in the preceding year showed a surplus of £2.8m, should not obscure the fact that both the Charity’s final pension schemes were closed to new members and further pension accrual as an integral part of the merger in 2007 and prudent long term deficit funding plans have been agreed with the Trustees of both schemes which are intended to fully recover the deficits by 2022. Key balance sheet movements The principal additions to fixed assets in the year have been those to secure the remaining freehold of the Charity’s London Office building and, at John Grooms Court, the installation of a new lift, 5 new rooms and other room refurbishments. However, these important investments have been offset by the property revaluations and the normal depreciation charge which have reduced the net value of fixed assets by £1.2m over the year. One investment property was disposed of as an integral part of the transaction to acquire the remaining London office freehold. There were no assets held for disposal at the end of the 2011/12 year; both the properties held at March 2011 were disposed of during the year, at or above, their carrying values. The reduction in short-term creditors arises from a reduction in deferred income, and the reported increase in trade creditors was simply due to the timing of supplier payments at the year-end. Bank loans have been reduced mainly through the payment of regular instalments; during the year one loan was repaid and another one drawn for a similar value in order to reduce ongoing interest costs. Cash flow and working capital Cash balances have been utilised during the year to fund fixed asset purchases. Operating cash flows continued to be positive, although lower than in 2010/11. That year was boosted by a one-off prepayment of fees of £0.7m which reversed in 2011/12, and reductions in the level of outstanding trade debtors. 2011/12 also saw the first full year of the higher deficit recovery pension payments, which adversely impacted cash flow by £0.4m. Livability’s cash position at the end of the year remained strong at nearly £9m, and a well-managed working capital position. However, almost £5m of the cash balances is represented by restricted funds which will be invested in new facilities over the next twelve to eighteen months. Reserves The Trustees have reviewed the requirement to hold designated reserves for Cyclical Maintenance and have concluded that there is no material difference between the purposes to which the Cyclical Maintenance Fund and the General Fund are put. The balance of the Cyclical Maintenance Fund has therefore been transferred to the General Fund. In the light of this change to the structure of the General Fund the Trustees have revised their assessment of the suitable level of General Fund for Livability to hold from between four and eight weeks’ expenditure to between five and ten weeks’ expenditure. This level of General Fund allows for flexibility to cover the short-term risks and uncertainties (as described more fully on page 19 to 20) faced by Livability, as well as the volatility of voluntary income, cash flow timing of capital investment, the maintenance of adequate levels of working capital and to cover the Charity’s contractual obligations to its staff. The General Fund, which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed, stood at £4.4m at 31 March 2012, equivalent to 6.3 weeks of unrestricted expenditure. This is within the range set by the Trustees and the Board’s policy is to maintain the level of the General Fund in this range. The principal causes of movements in the General Fund between March 2011 and March 2012 were the strategic purchase of 23 23

flexibility to cover the short-term risks and uncertainties (as described more fully on page 19 to 20) faced by Livability, as well as the volatility of voluntary income, cash flow timing of capital investment, the maintenance of adequate levels of working capital and to cover the Charity’s contractual Livability Annual ReportThe & Accounts 2012 which are those unrestricted funds not invested in fixed obligations to its staff. General Fund, assets, designated for specific purposes or otherwise committed, stood at £4.4m at 31 March 2012, equivalent to 6.3 weeks of unrestricted expenditure. This is within the range set by the Trustees and Livability Annual Report & Accounts 2012 the Board’s policy is to maintain the level of the General Fund in this range. The principal causes of movements in the General Fund between March 2011 and March 2012 were the strategic purchase of the remaining freehold in the Charity’s London Office building to secure this valuable asset which will underpin much of the Charity’s future financial security and the transfer of the balance of the Cyclical 23 Maintenance Fund to the General Fund as described above. The level of general reserves at March 2012 is therefore within the range set by the Trustees. The Property, Revaluation and Equipment Funds respectively represent the total amount (at cost or valuation, less depreciation and direct borrowings drawn and undrawn) invested in freehold and leasehold properties and fixtures, fittings and motor vehicles used for the functional purposes of the Charity. The Endowment Reserve Fund represents those funds where Livability acts as Sole Corporate Trustee and which are required to be amalgamated with Livability’s results. The aggregate deficit of the two closed final salary pension schemes is shown, in accordance with FRS 17, as a long-term liability in the Consolidated Balance Sheet. The corresponding pension deficits are shown as a negative reserve within the Charity’s Statement of Total Funds As indicated earlier in this review, such amounts do not represent an immediate cash requirement from the Charity’s funds and deficit recovery plans have been agreed with the respective scheme Trustees, which are intended to eliminate the deficits by 2022. Investment Policy Because of its Reserves Policy, at any point in time Livability may hold cash and other assets that are surplus to immediate requirements. The policy of the Board of Trustees is to invest surplus funds to meet the following objectives: • • •

To match the risk and maturity of the investments with the requirement for funds To invest in liquid assets so that they can be converted to cash quickly, if needed, without a loss in value To invest in a way that does not conflict with the Charity’s aims and objectives and which is prudently risk free.

All of Livability’s surplus funds are currently invested in cash-based investments with the exception of funds held for long-term investment by the charities that form the Endowed Funds and a low value of shareholdings that have been donated to the Charity. The Charity uses the services of Royal London Cash Management to invest its surplus funds at an annual fee of 0.10%. A decision is taken on a case-by-case basis as to whether to retain or dispose of any donated investments.

Livability Annual Report & Accounts 2012

STATEMENT OF TRUSTEES' RESPONSIBILITIES The Trustees are responsible for preparing the Trustees' annual 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 group and parent charity and of the incoming resources and application of resources, including its income and expenditure, of the group for the year. In preparing those 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; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the group and parent charity and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in annual reports may differ from legislation in other jurisdictions. DISCLOSURE OF INFORMATION TO AUDITOR Each of the members of the Board of Trustees has confirmed that: • •

so far as he/she is aware, there is no relevant audit information of which Livability’s auditors are not aware, and he/she has taken all the steps that he/she ought to have taken as a member of the Board in order to make himself/herself aware of any relevant audit information and to establish that Livability’s auditors are aware of that information.

The report of the Board was approved by the Board on 26th September 2012 and signed on its behalf by:

M P A Langworth Company Secretary

25 25

Livability Annual Report & Accounts 2012

Livability Livability Annual Annual Report Report && Accounts Accounts 2012 2012

INDEPENDENT INDEPENDENT AUDITOR’S AUDITOR’S REPORT REPORT TO TO THE THE MEMBERS MEMBERS OF OF LIVABILITY LIVABILITY We have have audited audited the the group group and and parent parent charity charity financial financial statements statements ("the ("the financial financial statements") statements") of of We stst Livability for for the the year year ended ended 31 31 March Livability March 2012 2012 which which comprise comprise consolidated consolidated statement statement of of financial financial activities, consolidated consolidated and and Charity Charity balance balance sheets, sheets, consolidated consolidated cash cash flow flow statement statement and and the the related related activities, notes. The The financial financial reporting reporting framework framework that that has has been been applied applied in in their their preparation preparation is is applicable applicable law law notes. and United United Kingdom Kingdom Accounting Accounting Standards Standards (United (United Kingdom Kingdom Generally Generally Accepted Accepted Accounting Accounting and Practice). Practice). This report report is is made made solely solely to to the the Charity's Charity's members, members, as as aa body, body, in in accordance accordance with with Chapter Chapter 33 of of part part This 16 of of the the Companies Companies Act Act 2006. 2006. Our Our audit audit work work has has been been undertaken undertaken so so that that we we might might state state to to the the 16 Charity's members members those those matters matters we we are are required required to to state state to to them them in in an an auditor’s auditor’s report report and and for for no no Charity's other purpose. purpose. To To the the fullest fullest extent extent permitted permitted by by law, law, we we do do not not accept accept or or assume assume responsibility responsibility to to other anyone other other than than the the Charity Charity and and the the Charity's Charity's members members as as aa body, body, for for our our audit audit work, work, for for this this report, report, anyone or for for the the opinions opinions we we have have formed. formed. or Respective responsibilities responsibilities of of Trustees Trustees and and auditor auditor Respective As explained explained more more fully fully in in the the statement statement of of Trustees' Trustees' responsibilities, responsibilities, the the Trustees Trustees (who (who are are also also the the As directors of of the the company company for for the the purposes purposes of of company company law) law) are are responsible responsible for for the the preparation preparation of of the the directors financial statements statements and and for for being being satisfied satisfied that that they they give give aa true true and and fair fair view. view. We We have have been been financial appointed as as auditor auditor under under the the Companies Companies Act Act 2006 2006 and and report report in in accordance accordance with with that that Act. Act. Our Our appointed responsibility is is to to audit audit and and express express an an opinion opinion on on the the financial financial statements statements in in accordance accordance with with responsibility applicable law law and and International International Standards Standards on on Auditing Auditing (UK (UK and and Ireland). Ireland). Those Those standards standards require require us us applicable to comply comply with with the the Auditing Auditing Practices Practices Board’s Board’s Ethical Ethical Standards Standards for for Auditors. Auditors. to Scope of of the the audit audit of of the the financial financial statements statements Scope An audit audit involves involves obtaining obtaining evidence evidence about about the the amounts amounts and and disclosures disclosures in in the the financial financial statements statements An sufficient to to give give reasonable reasonable assurance assurance that that the the financial financial statements statements are are free free from from material material sufficient misstatement, whether whether caused caused by by fraud fraud or or error. error. This This includes includes an an assessment assessment of: of: whether whether the the misstatement, accounting policies policies are are appropriate appropriate to to the the group's group's and and parent parent charity's charity's circumstances circumstances and and have have been been accounting consistently applied applied and and adequately adequately disclosed; disclosed; the the reasonableness reasonableness of of significant significant accounting accounting estimates estimates consistently made by by the the Trustees; Trustees; and and the the overall overall presentation presentation of of the the financial financial statements. statements. In In addition, addition, we we read read all all made the financial financial and and non-financial non-financial information information in in the the Annual Annual Report Report to to identify identify material material inconsistencies inconsistencies the with the the audited audited financial financial statements. statements. IfIf we we become become aware aware of of any any apparent apparent material material misstatements misstatements or or with inconsistencies we we consider consider the the implications implications for for our our report. report. inconsistencies Opinion on on financial financial statements statements Opinion In our our opinion opinion the the financial financial statements: statements: In give aa true true and and fair fair view view of of the the state state of of the the group's group's and and parent parent charity's charity's affairs affairs as as at at 31 31 March March •• give 2012 and and of of the the group's group's incoming incoming resources resources and and application application of of resources, resources, including including its its income income 2012 and expenditure, expenditure, for for the the year year then then ended; ended; and have been been properly properly prepared prepared in in accordance accordance with with United United Kingdom Kingdom Generally Generally Accepted Accepted •• have Accounting Practice; Practice; and and Accounting have been been prepared prepared in in accordance accordance with with the the requirements requirements of of the the Companies Companies Act Act 2006. 2006. •• have Opinion on on other other matters matters prescribed prescribed by by the the Companies Companies Act Act 2006 2006 Opinion In our our opinion opinion the the information information given given in in the the Trustees’ Trustees’ annual annual report report for for the the financial financial year year for for which which the the In financial statements statements are are prepared prepared is is consistent consistent with with the the financial financial statements. statements. financial

26 26 26

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • • • •

adequate accounting records have not been kept in respect of the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or the parent charity financial statements do not accord with the accounting records and returns; or certain disclosures of Trustee's remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.

Ian Mathieson (Senior statutory auditor) for and on behalf of PKF (UK) LLP, Statutory auditor London, UK th 26 September 2012 2nd October 2012

27 27

Livability Annual Report & Accounts 2012

Consolidated Statement of Financial Activities for the year ended 31 March 2012 (Incorporating an Income and Expenditure Account) Unrestricted Funds

Restricted Funds

Permanent Endowment Funds

Total Funds

2012

2011

Note

£’000

2 3

3,032 165

1,188 41

– 44

4,220 250

4,577 167

34,452

126

–

34,578

35,797

2 2

– 333 37,982

– – 1,355

47 – 91

47 333 39,428

27 38 40,606

4 4

1,248 35,862

62 610

– –

1,310 36,472

1,535 37,753

18 – 319

6 – –

– 84 –

24 84 319

46 171 330

37,447

678

38,209

39,835

535

677

1,219

771

809

411

(1,220)

–

1,344

1,088

(1,213)

1,219

771

(2,114)

–

(2,114)

(497)

(770)

1,088

(1,213)

(895)

274

(1,234)

–

(1,234)

4,434

(9)

–

(7)

550

(4,287) (6,300)

– 1,088

– (1,211)

(4,287) (6,423)

2,795 8,053

Reconciliation of funds Balance at 1 April 2011 (restated – see note 1)

39,764

3,859

5,662

49,285

41,232

Balance at 31 March 2012

33,464

4,947

4,451

42,862

49,285

Incoming resources Incoming resources from generated funds Voluntary income Investment income Incoming resources from charitable activities Income from continuing activities Other incoming resources: Trusts Profit on disposal of fixed assets Total incoming resources Resources expended Cost of generating voluntary income Direct charitable expenditure Other resources expended: Other costs Trusts Governance costs Total resources expended before impairment

4 4, 9 4

Net income/(outgoings) for the year before transfers Gross transfers between funds Net income/(outgoings) for the year after transfers and before impairment Impairment of fixed assets

16,17

4, 8

Net income/(outgoings) for the year before other recognised gains/(losses) Other recognised gains / (losses) Net gain/(loss) on revaluation of fixed assets for Charity’s own use Gains/(losses) on investment assets Actuarial gains/(losses) on defined benefit pension schemes Net movement in funds

Total resources expended for the year including impairment were £40,323,000 (2011: £40,332,000) (see Note 4). All the above results are derived from continuing activities. The accompanying Notes to the Financial Statements form an integral part of these financial statements. There were no recognised gains or losses other than those reported above.

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012

Registered company no. 5967087

Consolidated and Charity Balance Sheets at 31 March 2012 Note

Group 2012

Group 2011

£’000

£’000 Restated*

Charity 2012

Charity 2011

£’000

£’000 Restated*

Fixed assets Tangible assets

45,936

47,157

45,508

46,258

Investments Total fixed assets

2,532 48,468

2,680 49,837

2,517 48,025

2,665 48,923

11 12 13

34 – 1,912 8,851 10,797

32 1,020 2,036 9,765 12,853

34 – 1,921 8,778 10,733

32 1,020 2,016 9,702 12,770

14 15

(3,797) (156) (3,953)

(3,966) (156) (4,122)

(4,618) (156) (4,774)

(5,911) (156) (6,067)

6,844

8,731

5,959

6,703

55,312

58,568

53,984

55,626

Current assets Stock Tangible assets for disposal Debtors Bank and cash in hand Current liabilities Creditors Provisions Net current assets Total assets less current liabilities Creditors: amounts falling due after one year Creditors Provisions

14 15

(1,889) (448) (2,337)

(2,040) (448) (2,488)

(1,889) (448) (2,337)

(2,040) – (2,040)

Defined benefit pension liability

(10,113)

(6,795)

(10,113)

(6,795)

42,862

49,285

41,534

46,791

Net assets Funds Unrestricted Funds: Designated Funds

39,176

42,178

38,750

41,734

General Funds

4,401

4,381

3,693

3,652

Pension scheme deficit

(10,113)

(6,795)

(10,113)

(6,795)

33,464

39,764

32,330

38,591

Total Unrestricted Funds

Restricted Funds

4,947

3,859

4,778

3,782

Permanent Endowment Funds

4,451

5,662

4,426

4,418

42,862

49,285

41,534

46,791

Total Funds

The accompanying Notes to the Financial Statements form an integral part of these financial statements. The th financial statements were approved and authorised for issue by the Board on 26 September 2012 and signed on its behalf by:

Paula Kerr Chair of Trustees

*See note 1 accounting policies for details of the restatement

Livability Annual Report & Accounts 2012

Consolidated Cash Flow Statement for the year ended 31 March 2012 Note

2012 £’000

2011 £’000

Net cash inflow from operating activities

550

2,149

Returns on investment and servicing of finance

113

Purchase and sale of fixed assets

(1,496)

(177)

(833)

2,021

Net cash (outflow) / inflow before management of liquid resources and financing Management of liquid resources

–

(1,000)

Financing

(81)

(149)

(Decrease) / Increase in cash in the year

(914)

872

Reconciliation of net cash flow to movement in net funds

2012

2011

£’000

(914)

872

Cash outflow from financing

149

Non-capital movement in loans

(14)

–

1,000

(812)

2,007

Net funds at 1 April 2011

7,660

5,653

Net funds at 31 March 2012

6,848

7,660

2012

2011

£’000

(895)

274

(Decrease) / increase in cash in the year

Cash outflow from management of liquid resources Change in net funds

Cash Flow Statement Notes 1.

Reconciliation of net incoming/(outgoing) resources to net cash inflow from operating activities

Net incoming/(outgoing) resources Non-cash items affecting net incoming/(outgoing) resources Depreciation – fixed assets

863

869

2,114

497

(333)

167

1,749

1,807

Net investment income

(103)

Interest receivable

(147)

(64)

100

118

(2)

–

140

466

(Decrease) / increase in creditors

(218)

460

Decrease in pension deficit

(969)

(535)

550

2,149

Impairment of fixed assets (Profit) / loss on disposal of fixed assets

Interest payable Increase in stock Decrease in debtors

Net cash inflow from operating activities

30 30

Livability Annual Report Report&&Accounts Accounts2012 2012 Livability Annual Cash Flow Statement Notes (cont’d) 2.

Returns on investments and servicing of finance

Investment income Interest received Interest paid Net cash inflow from returns on investments and servicing of finance 3.

Sale of tangible fixed assets Purchase of fixed asset investments Net cash outflow from purchase and sale of fixed assets

£’000 104

130

(121)

(105)

113

2012

2011

£’000 (2,640)(

£’000 (1,720)

1,153

1,553

(9)

(10)

(1,496)

(177)

2012

2011 £’000

Management of liquid resources £’000

Purchase of liquid resources Net cash outflow from management of liquid resources 5.

2011

Purchase and sale of fixed assets

Purchase of tangible fixed assets

2012

–

(1,000)

–

(1,000)

Financing

New loans drawn Repayment of bank loan Net cash outflow from financing

2012

2011

£’000 500

£’000 –

(581)

(149)

(81)

(149)

At 1 April 2011

Cash flow

Non-capital cash movement

At 31 March 2012

£’000

Cash at bank and in hand

2,514

(549)

–

1,965

Short term deposits

6,251

(365)

–

5,886

Cash as defined by FRS 1

8,765

(914)

–

7,851

Cash investments

1,000

–

1,000

Cash disclosed in the balance sheet

9,765

(914)

–

8,851

(148)

(64)

(191)

Bank loans due after one year

(1,957)

145

–

(1,812)

Total bank loans

(2,105)

(2,003)

7,660

(833)

6,848

Reconciliation of net cash flow to movement in funds

Bank loans due within one year

Net funds

31 1

Livability Annual Annual Report Report&&Accounts Accounts2012 2012

Notes to the consolidated financial statements for the year ended 31 March 2012

ACCOUNTING POLICIES

Accounting Basis The Financial Statements have been prepared in accordance with applicable accounting standards under the historical cost convention as modified by the inclusion of investments and properties at market value. They have also been prepared in accordance with the Statement of Recommended Practice (SORP) 2005, “Accounting and Reporting by Charities”, issued in March 2005. The principal policies that have been adopted by the Board of Trustees are set out below. Consolidation The consolidated financial statements include the financial statements of the Charity and its subsidiary undertakings, John Grooms, The Shaftesbury Society, Livability Contracting Services Limited and Livability Icanho Limited. In addition, Kingsley Hall Church and Community Centre and Livability Ireland are also consolidated on the basis that Kingsley Hall Church is an associated charity over which Livability can exercise control and Livability Ireland because the sole purpose of this charity is to manage the activities of a spinal injury rehabilitation project in a number of South Asian countries on behalf of Livability. The income and expenditure of local groups who support fundraising activities for service users at various of the Charity’s units is included in the financial statements of the Charity, provided that such activity has not been set up as a separate ’friends group’ charity. In addition, the results include those of various trusts where Livability is Corporate Trustee and where the Charity Commission have granted uniting directions allowing the consolidation of trust results with those of Livability. The results and balance sheets of these trusts are shown under the heading “endowments” in the Accounts. Incoming Resources All incoming resources, whether restricted, unrestricted or endowment, which become available to the Charity are included in the Consolidated Statement of Financial Activities (SOFA) as soon as it is prudent or practicable to do so. All items of income are accounted for on an accruals basis, including legacies which are accounted for only after notification and where there is reasonable certainty of ultimate receipt and the amount concerned. However no amounts are included in the Accounts for life interests in legacies as the timing of receipt is considered too uncertain. Such reversionary bequests are accounted for on the death of the life interest. Resources received in advance of expenditure being made are deferred where conditions have been imposed by the donor or fee payer that amount to pre-conditions of use. Deferred income is released to match the related expenses in subsequent periods. Donated services and gifts in kind are recognised if their value is able to be estimated reliably. The gift is recognised on the date that the goods or services forming the gift become receivable. The gift is recognised in income at the market value of the goods or service received and, depending on the nature of the gift, included in resources expended or additions to fixed assets at the same value and at the same time. Donations received in relation to specific projects are credited to the project concerned. Costs of raising funds, including an appropriate allocation of management time, are shown on the face of the SOFA and are deducted from appeal totals before allocation to projects.

32 32

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

Resources Expended All expenditure is accounted for on an accruals basis and has been listed in such a way as to accumulate all the Charity’s costs of employees, goods and services relating to a particular activity of the Charity under that activity heading. Direct costs, including attributable salaries and associated costs, are allocated on an actual basis to the key areas of activities. Indirect costs (support costs), primarily comprising staff costs of employees based at the Charity’s central office in London, are allocated to each activity heading using a number of identified cost drivers, including allocation of time on the basis of a time apportionment. Capital Grants Capital grants are taken as income in the year in which the grant was given. If a donor has a remaining interest in an asset, for example through a request for a return of funds should the purpose of an asset for which the grant was given change in some way, the existence of the donor’s interest is shown separately in the Accounts. Discharge of Restrictions on Grants and Donations Funds given by donors to Livability for a specific activity, project or location are logged on the fundraising database in such a manner as to link the donation to the purpose for which it is given. To ensure that donors’ wishes are discharged correctly, donations for a specific activity, project or location of the Charity are accounted for as restricted funds. The restriction is only released when the activity, project or location has benefited from the spending of the donation for the purpose on which it was given. In the event that funds were given for a particular location but a specific use was not prescribed by the donor, such funds will be utilised at that location, using the Trustees’ discretion. Governance Costs Governance costs are those costs associated with the governance arrangements of Livability. The costs comprise mainly internal and external audit, legal advice for Trustees and costs associated with constitutional and statutory requirements. Included in this category are also costs associated with the strategic activities of the organisation and a portion of allocated overheads in relation to strategic activities. Fundraising Costs Fundraising costs comprise salary costs and other associated expenditure relating to the generation of voluntary income. These appear on the face of the SOFA as “Cost of generating voluntary income”. Operating Leases Income and costs with respect to operating leases are either credited or charged to the SOFA, on an accruals basis, in line with agreements in place during the year. Pension Costs The Charity maintains a Group Personal Pension arrangement which is open to all qualifying members of staff and contributes to an Aegon Scottish Equitable scheme. Contributions paid by the employer are directly expensed in the SOFA. In addition, the Charity is responsible for two defined benefit pension schemes which have been closed to new members and further accrual of benefits since June 2007. Details of the schemes are disclosed in Note 22 to the Financial Statements.

33 33

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

In calculating the pension scheme deficits, the requirements of FRS 17: “Retirement Benefits” have been applied, namely that: • •

Pension scheme assets are stated at market value at the balance sheet date. Pension liabilities are measured using the projected unit method and are discounted using the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities.

The scheme deficits on an FRS 17 basis are recognised as a defined benefit pension liability in the Accounts and matched by a corresponding pension deficit reserve. The annual net movement in the pensions reserve comprises four main elements: 1. The monetary contributions paid into the scheme by the employer on the employees’ behalf. 2. The current service cost – the increase in the present value of the schemes’ liabilities and the administration costs of the schemes arising in the year to 31 March 2012. 3. Other finance charges – the difference between the expected return on the schemes’ assets and the interest on the schemes’ liabilities. 4. Actuarial gains and losses – changes in the actuarial deficits or surpluses because the actuarial assumptions have changed or events have not coincided with the actuarial assumptions made for the last valuation. The sum of items 1-3: the contribution, current service cost and other finance charges is allocated across the headings in the expenditure part of the SOFA in proportion to the Charity’s pension contributions to each area of expenditure. The unrealised actuarial gains and losses are shown in the lower part of the SOFA under the heading of "Actuarial gains/(losses) on defined benefit pension schemes". Taxation Status No liability to Corporation Tax arises on these Accounts as the activities of the Charity and its subsidiaries are exempt from tax under the provisions of the Corporation Tax Act 2011, and any profits earned are applied in the furtherance of the Charity’s objects.

34 34

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

Tangible Assets Fixed assets are capitalised when their value exceeds £5,000. Assets are depreciated on a straight line basis at rates dependent on the useful lives and residual values of the assets, initially as detailed in the table below: Asset category

Useful life

Residual value

Annual depreciation

20 - 100 Years

Nil

1% - 5%

Horticultural buildings

25 years

Nil

Equipment, fittings and furniture

5 years

Nil

20%

Plant and machinery

20 years

Nil

Cars

4 years

Nil

25%

Minibuses and coaches

6 years

10%

15%

Computers and software

3 years

Nil

33.3%

10 to 30 years

Nil

3.33% - 10%

Freehold buildings

Chalets and mobile homes

Freehold land is not depreciated. An annual impairment review of buildings with remaining economic lives of more than 50 years from the balance sheet date is carried out in accordance with FRS 15: “Tangible Fixed Assets”. Freehold property is held at existing use market value in the balance sheet and undergoes regular market valuation by either external professional valuers or by in-house employees with appropriate knowledge and experience, having regard to various external indicators and in accordance with the Royal Institute of Chartered Surveyors’ Appraisal and Valuation Manual. The valuation cycle completes every five years such that every property is valued at least once every five years. Gains and losses on revaluation are reflected in the lower part of the SOFA as unrecognised gains or losses. Leasehold land and buildings are held at market value, using the same valuation process as outlined for freehold property. The re-valued amount is amortised evenly over the remaining life of the lease. Assets which have been donated to the Charity are taken into the books at estimated market value at the date of acquisition and are depreciated in accordance with this policy. Profits and losses on disposal of tangible assets are included in the SOFA within unrestricted, restricted or permanent endowment funds, as appropriate. Investments Listed investments and investment properties are stated at market value at the balance sheet date. Unlisted investments are stated at Board valuation. Any gain or loss on revaluation, realised or unrealised, is shown in the lower part of the SOFA. Stocks The value of stock is stated at the lower of cost and net realisable value. Cost is calculated on a first in, first out basis by reference to the invoiced value of supplies and attributable costs in bringing each product to its present location and condition.

35 35

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

Tangible Assets for Disposal Tangible fixed assets that have been put up for sale are transferred from fixed assets to current assets at recorded depreciated cost or valuation. They are stated at the lower of either depreciated cost or valuation, or net realisable value, taking into account anticipated costs of sale. Giving by Lending Deposit Taking Scheme Amounts received from supporters under this scheme are invested in high interest earning deposits. Funds Restricted Income Funds Restricted Income Funds represent income given for particular purposes within the objects of the Charity. These funds are expendable at the discretion of the Trustees in furtherance of a particular aspect of the objects of the Charity. Where funds have been received for the purpose of providing fixed assets these assets remain within the restricted fund where the terms of the donation require it. Permanent Endowment Funds The Permanent Endowment Funds represent capital assets required to be held on a long-term basis for specific charitable purposes within the objects of the Charity and the assets of trusts subject to uniting directions with the Charity. Unrestricted Designated Funds These comprise funds that have been set aside at the discretion of the Trustees for specific purposes. The purpose and use of the designated unrestricted funds are set out in the Notes to the Accounts and in the Report of the Board. Unrestricted General Funds The General Fund represents accumulated surpluses and deficits arising from the Charity’s activities, which can be appropriated for any charitable purpose that is compatible with the Charity’s objects. Transfers between Funds Transfers between funds in the SOFA are required where restricted funds have been expended or have, for other specific reasons, ceased to be restricted. Restatement of prior year comparatives The prior year comparatives have been restated to recognise time-based pay expenses on a more conservative basis, in the month in which they are incurred. Previously such pay was recognised in the month of payment. The impact of this change has been to reduce opening General and Total funds at 1 April 2010 and 2011 by £264,000. There was no material impact on the reported income and expenditure for the year ended 31 March 2011 and so no restatement of the SOFA for that year has been made.

36 36

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

INCOME FROM CHARITABLE ACTIVITIES

The following is analysed according to the different services provided by the Charity: 2012 Total Funds

2011 Total Funds

£’000

2012 Permanent Endowment Funds £’000

£’000

16,272

117

–

16,389

16,363

17,970

–

17,979

18,928

–

153

–

153

441

34,452

126

–

34,578

35,797

Education

–

525

–

525

667

Residential & Community Services

–

560

–

560

319

–

1,481

–

1,481

1,724

1,513

1,096

–

2,609

2,742

Education

–

114

Residential & Community Services

–

130

1,519

–

1,519

1,591

1,519

–

1,611

1,835

3,032

1,188

–

4,220

4,577

–

Investment income

165

250

167

Profit on disposal of fixed assets

333

–

333

498

630

232

37,982

1,355

39,428

40,606

2012 Unrestricted Funds

2012 Restricted Funds

£’000

Education Residential & Community Services

Income from services

Community Mission & Link Churches Other

Voluntary income Donations & Gifts

Community Mission & Link Churches General fundraising for Livability operations

Legacies

General fundraising for Livability operations

Total voluntary income Other income Trust income

Total other income Total income from charitable activities

At the date of the Accounts, Livability had been notified of interests in legacies where there is a life-interest with an estimated value of £0.3m (2011: £0.3m) and residuary legacies of £0.9m (2011: £0.6m), none which are recognised in income in accordance with the accounting policy for incoming resources. During the year, the Charity Commission made an order authorising the Trustees of the Samuel Hale Bibby Endowment Fund to expend the endowment of that charity as if it were income. Consequently a grant was made to Livability of £1,220,000 as part of the funding for the construction of the new hydrotherapy pool at Victoria Education Centre.

37 37

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

INVESTMENT INCOME 2012 Unrestricted £’000

2012 Restricted £’000

2012 Endowment £’000

2012 Total £’000

2011 Total £’000

–

102

–

143

–

165

250

167

Listed investments Unlisted investments Bank interest Rent receivable

4. TOTAL RESOURCES EXPENDED 2012 Total Funds

2011 Total Funds

£’000

2012 Permanent Endowment Funds £’000

£’000

15,705

179

–

15,884

15,411

16,347

426

–

16,773

18,536

Community Mission & Link Churches

490

–

495

402

Other

184

–

184

208

32,726

610

–

33,336

34,557

Education

1,322

–

1,322

1,350

Residential & Community Services

1,769

–

1,769

1,799

–

3,136

–

3,136

3,196

35,862

610

–

36,472

37,753

Other costs

–

Fundraising

1,248

–

1,310

1,535

319

–

319

330

1,585

–

1,653

1,911

–

171

37,447

678

38,209

39,835

2,114

–

2,114

497

39,561

678

40,323

40,332

2012 Unrestricted Funds

2012 Restricted Funds

£’000

Education Residential & Community Services

Direct charitable expenditure:

Direct support costs:

Community Mission & Link Churches

Total direct charitable expenditure Other expenditure:

Governance costs

Trusts Total resources expended before impairment Impairment of fixed assets Total resources expended

38 38

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

TOTAL RESOURCES EXPENDED (cont’d)

Allocation of support costs Senior Management

Finance

Corporate Support

Marketing

£’000 118 139

£’000 295 430

£’000 456 687

£’000 336 391

£’000 117 122

Total Directorate Support £’000 1,322 1,769

21 24 306

60 112 906

58 118 1,346

14 65 809

2 – 243

155 319 3,610

Education Residential & Community Services Community Mission & Link Churches Fundraising Governance TOTAL COST 2012 TOTAL COST 2011

The breakdown of costs incurred in generating voluntary income for Livability is as follows: Salaries and other staff related costs Bought in services Central administration Other non-staff costs, mostly direct mailing costs

Governance costs are made up of the following:

Apportionment of senior management time External audit fees and other services Internal audit fees Trustee costs

Total resources expended is arrived at after charging: Depreciation (including Central Office depreciation of £84,000 2011: £45,000) Impairment of fixed assets Loss on disposal of fixed assets Auditors remuneration : Audit current year Other services Interest payable Operating lease charges - land and buildings - other equipment

3,684

2012 £’000

2011 £’000

577 272 155 306

669 269 158 439

1,310

1,535

2012 £’000

2011 £’000

260 46 8 5 319

264 40 22 4 330

2012 £’000

2011 £’000

863

869

2,114 –

497 205

30 1 100

33 – 118

388 81

433 63

39 39

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

OPERATING LEASES

Annual obligations due under operating leases are as follows: Leases expiring:

Land and buildings Other equipment

Within 1 year £’000 169 26 195

2012 Between 2 - 5 years £’000 73 43 116

After 5 years £’000 2 – 2

2011 Between 2 - 5 years £’000 123 69 192

Within 1 year £’000 199 – 199

After 5 years £’000 2 12 14

SUBSIDIARY UNDERTAKINGS

The results of the wholly-owned subsidiary undertakings John Grooms (JG), The Shaftesbury Society (TSS), Livability Icanho Limited (LIL), Livability Contracting Services Limited (LCSL) and Livability Ireland (LI) (a company registered in Ireland that includes the results of the Charity’s overseas division) have been consolidated within the SOFA. The results and net assets of the trading subsidiaries are summarised as follows: 2012 JG

2012 TSS

2012 LIL

2012 LCSL

2012 LI

£'000

£’000

Turnover or incoming resources

–

805

–

322

Operating profit or net incoming / (outgoing) resources Unrealised gains / (losses)

(5)

(3)

–

Transfer to the Charity Aggregate assets Aggregate liabilities Aggregate net assets

–

(1,220)

–

347

1,153

153

–

(448)

–

(73)

–

347

705

–

153

40 40

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

EMPLOYEES

Nursing, care services & ancillary staff Teachers and lecturers Community Mission and Link Churches Central Office and administration Fundraising and communications

Wages and salaries Social security costs Pension & other costs

Group 2012 FTE

Group 2011 FTE

1,054 49 19 58 15 1,195

1,070 58 17 55 20 1,220

Group 2012 £’000

Group 2011 £’000

24,552 1,775 1,683 28,010

25,193 1,943 1,878 29,014

The employee numbers above, expressed as FTEs (full time equivalents), represent the number of staff employed, averaged throughout the year. The number of employees receiving remuneration in the following ranges was:

Group 2012 No. of employees

Group 2011 No. of employees

£60,001 - £70,000

£70,001 - £80,000

£80,001 - £90,000

£90,001 - £100,000

–

£100,001 - £110,000

–

Employers’ pension contributions made on behalf of 8 of these employees totalled £62,769 in the year (2011: 13 employees £80,901). Trustees receive no remuneration in respect of their services as Trustees of Livability. Travel and other out of pocket expenses were reimbursed to 5 Trustees in the year to the value of £1,793 and costs of providing training to Trustees in relation to their duties were £2,418 (2011: eight Trustees to the value of £5,097; training costs of £2,347). Livability paid £6,448 in the year (2011: £6,083) to provide Indemnity Insurance for the Trustees.

41 41

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

FIXED ASSETS All of the tangible assets shown below are used for direct charitable purposes.

TANGIBLE ASSETS Group

Freehold land & buildings £’000

Long leasehold land & buildings £’000

Short leasehold land & buildings £’000

Furniture, fittings, vehicles, other £’000

Total £’000

46,399

364

595

8,038

55,396

2,576

–

414

2,990

533

–

533

–

(29)

–

(29)

49,508

364

566

8,452

58,890

1,363

307

6,539

8,239

292

540

863

Impairment

2,114

–

2,114

Revaluation

1,767

–

1,767

–

(29)

–

(29)

5,536

304

7,079

12,954

At 31 March 2012

43,972

329

262

1,373

45,936

At 31 March 2011

45,036

334

288

1,499

47,157

Cost or valuation At 1 April 2011 Additions Revaluation Disposals At 31 March 2012

Depreciation At 1 April 2011 Charged in year

Disposals At 31 March 2012

Net book value

42 42

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

FIXED ASSETS (cont’d)

TANGIBLE ASSETS Charity

Freehold land & buildings £’000

Long leasehold land & buildings £’000

Short leasehold land & buildings £’000

Furniture, fittings, vehicles, other £’000

Total £’000

45,239

364

510

7,992

54,105

2,576

–

412

2,988

533

–

533

–

(29)

–

(29)

452

–

452

48,800

364

481

8,404

58,049

1,008

283

6,526

7,847

290

529

842

Impairment

2,114

–

2,114

Revaluation

1,767

–

1,767

–

(29)

–

(29)

5,179

272

7,055

12,541

At 31 March 2012

43,621

329

209

1,349

45,508

At 31 March 2011

44,231

334

227

1,466

46,258

Cost or valuation At 1 April 2011 Additions Revaluation Disposals Transfer from predecessor charity At 31 March 2012

Depreciation At 1 April 2011 Charged in year

Disposals At 31 March 2012

Net book value

Certain properties have been retained in Livability’s predecessor charities, John Grooms and The Shaftesbury Society, until the legal requirements for transfer were resolved. During the year the legal requirements for transfer of the last two properties held by The Shaftesbury Society were completed and the transfer of legal title, along with the provisions associated with the property, was made.

43 43

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

FIXED ASSETS (cont’d)

The Group’s freehold land & buildings comprise: Unrestricted Funds

Restricted Funds

Permanent Endowment Funds

Total

£’000

42,088

240

4,071

46,399

2,576

–

2,576

533

–

533

45,197

240

4,071

49,508

1,221

–

142

1,363

275

292

Impairment

2,114

–

2,114

Revaluation

1,767

–

1,767

At 31 March 2012

5,377

155

5,536

At 31 March 2012

39,820

236

3,916

43,972

At 31 March 2011

40,867

240

3,929

45,036

Cost or valuation At 1 April 2011 Additions Revaluation At 31 March 2012

Depreciation At 1 April 2011 Charged in year

Net book value

All of the tangible assets shown above are used for direct charitable purposes. Fixed assets include properties revalued as disclosed in the accounting policies. revaluation amount of freehold property assets is shown below.

Cost of assets revalued

Total £’000 36,119

Assets under uniting directions

4,071

Revaluation

9,318

Market value at 31 March 2012

The cost and

49,508

44 44

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

FIXED ASSETS (cont’d)

The Charity’s properties are revalued over a rolling five year cycle. A number of different professional firms with appropriate specialist knowledge were engaged for the valuations carried out in the year ended 31 March 2012. A review of these valuations, along with the carrying values of properties not subject to professional revaluation, was undertaken at 31 March 2012 by Hilbery Chaplin Chartered Surveyors with adjustments made to carrying values where considered material. 9.

TRUSTS

With the exceptions of the Samuel Hale Bibby Endowment Fund (SHBEF) and the Platt Mission (where Livability acted Co-Trustee with a former Livability Trustee by virtue of the provisions of the founding trust deed) Livability acted as sole corporate Trustee for the following trusts during the period and, in accordance with the linking provisions under Section 12 of the Charities Act 2011, the results for the Trusts are amalgamated with the results of Livability. A summary of the objects and the relationship to Livability, of each trust is shown in the table below. SHBEF is included because it is consolidated with the Shaftesbury results (for further information see the section under the heading Accounting Basis in the accounting policy note). As Trustee of SHBEF and with the authority of an th Order of the Charity Commission dated 14 July 2011 The Shaftesbury Society took a decision during the year to apply a considerable proportion of the Charity’s assets to Livability for the benefit of VEC. Livability also acts as a holding Trustee of Kilburn Evangelical Free Church and custodian Trustee of the David Livingstone Charity for Handicapped Young People. The funds of these charities are not consolidated. Trust

Commonly known as

Objects

Chiswick Mission

Chiswick

To promote local mission purposes

Highway Evangelical Church (Stratford)

Highway

To promote local church and mission purposes

Marsh Street Mission (Walthamstow)

Marsh Street

To promote local mission purposes

The Coney Hill Will

Coney Hill Will

To promote the education and welfare of children and young persons

The Shaftesbury Welcome Mission (Battersea)

Welcome

To promote local mission and community purposes

Samuel Hale Bibby Endowment Fund

SHBEF

To advance the education of children and young persons with physical disabilities

The Shaftesbury Development Fund

Shaftesbury Development

To apply income to the general purposes of Livability

The Beddington Fund

Beddington

To benefit children and young persons by ministering to their needs; aiding their advancement in life; establishing, taking over and maintaining homes; generally promoting their education and welfare

Platt Mission, Putney

Platt

To promote local mission purposes and the religious education of children and young people

45 45

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

TRUSTS (cont’d)

A summary of the Financial Results of each trust is laid out below:

Funds b/fwd £’000

Net Unrealised surplus/ gains/ (losses) Income Expenses (deficit) £’000

£’000

Transfer to Livability Net restricted increase/ funds (decrease)

£’000

Funds c/fwd £’000

Chiswick

550

–

(2)

–

(2)

548

Highway

1,857

(82)

(4)

(1)

–

(5)

1,852

301

–

301

–

682

–

684

1,242

–

(1,220)

(1,219)

446

–

457

–

530

(1,220)

(1,211)

4,451

Marsh Street Coney Hill Will Welcome SHBEF Shaftesbury Development Beddington Platt

10.

529

–

5,662

(84)

INVESTMENTS Group 2012 £’000

Group 2011 £’000

Charity 2012 £’000

Charity 2011 £’000

At 1 April Additions Revaluations

820 9 (7)

760 10 50

805 9 (7)

745 10 50

At 31 March

822

820

807

805

UK Treasury Deposits Equities Overseas equities Giving by Lending deposit fund Unlisted

5 669 64 83 1

4 674 67 74 1

822

820

Securities market value

46 46

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

10.

INVESTMENTS (cont’d) Group 2012 £'000

Group 2011 £'000

Charity 2012 £'000

Charity 2011 £’000

1,840

455

1,840

455

–

885

–

885

(150)

–

(150)

Revaluations

–

500

–

500

At 31 March

1,690

1,840

1,690

1,840

821

819

806

804

2,532

2,680

2,517

2,665

Group 2012 £’000

Group 2011 £'000

Charity 2012 £'000

Charity 2011 £’000

At 1 April Additions Transfers from fixed assets Disposals

2,680 9 – (150)

1,235 10 885 –

2,665 9 – (150)

1,220 10 885 –

Revaluation (losses) / gains

(7)

550

(7)

550

2,532

2,680

2,517

2,665

Investment properties At 1 April Transfers from fixed assets Disposals

Other investments Listed investments Unlisted investments Mortgage loan Total investments

Analysis of movement on investments

At 31 March

Of the investments above, the cost of investment properties is £960,000 (2011: £960,000), while the cost of listed investments is £445,000 (2011: £445,000). Properties no longer used for operational purposes but held to generate rental income and potential capital growth were transferred to investment properties in the prior year. 11.

STOCKS Group 2012 £’000

Group 2011 £’000

Charity 2012 £’000

Charity 2011 £’000

Plants

Food

Bar

47 47

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

12.

TANGIBLE ASSETS FOR DISPOSAL

Freehold land and buildings

Group 2012 £’000

Group 2011 £’000

Charity 2012 £’000

Charity 2011 £’000

–

1,020

–

1,020

Assets surplus to requirements and being actively marketed for sale are transferred to current assets at the lower of carrying value or net realisable value.

13.

DEBTORS Group 2012 £’000

Group 2011 £’000

Charity 2012 £’000

Charity 2011 £’000

1,112

1,089

1,166

1,085

Other debtors

342

452

280

436

Prepayments and accrued income

424

465

424

465

–

1,912

2,036

1,921

2,016

Group 2012 £’000

Group 2011 £’000 (restated)

Charity 2012 £’000

Charity 2011 £’000 (restated)

Trade creditors

1,055

853

1,038

838

Accruals and deferred income

1,187

1,759

1,183

1,021

Taxes and social security

615

576

615

576

Other creditors

744

625

744

697

Bank loans

191

148

191

148

Amount due to a Trust

–

1,229

Amount due to group entities

–

832

1,397

Trust loans

3,797

3,966

4,618

5,911

Group 2012 £’000

Group 2011 £’000

Charity 2012 £’000

Charity 2011 £’000

1,812

1,957

1,812

1,957

1,889

2,040

1,889

2,040

AMOUNTS FALLING DUE WITHIN ONE YEAR: Trade debtors and fees receivable

Short term loans Amounts due from subsidiary undertakings

14.

CREDITORS

AMOUNTS FALLING DUE WITHIN ONE YEAR:

FALLING DUE AFTER MORE THAN ONE YEAR:

Bank loans Deferred income

48 48

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

14.

CREDITORS (cont’d)

Bank loans The Charity had the following loan facilities in place at the balance sheet date: Facility Provider

Interest base

Margin

Barclays Bank

Barclays base rate

1.375%

Barclays Bank

3 month LIBOR

1.2625%

Barclays Bank

Barclays base rate

2.000%

Barclays Bank

Barclays base rate

3.00%

Barclays Bank

3 month LIBOR

1.00%; 5.55% - 6.75% LIBOR collar applies until August 2017

Security

Repayable by April 2018 March 2021

All loans are secured by a first legal charge over two properties

July 2021 February 2022 August 2027

The loans are repayable by instalments as follows: 2012 £’000

2011 £’000

Within 1 year

191

148

1-2 years

178

148

2-5 years

507

389

1,127

1,420

Due after 5 years

49 49

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

15.

PROVISIONS Group:

Site equity £’000

Part-time workers’ pension claims liability £’000

Total £’000

At 1 April 2011

156

At 31 March 2012

156

At 1 April 2011

448

–

448

At 31 March 2012

448

–

448

Falling due within one year:

Falling due after one year:

All the above provisions are included in the Charity. Until this financial year the long-term site equity provisions of £448,000 were held by a subsidiary, along with the related assets. On completion of the transfer of the properties to Livability (see note 8), the related provisions for site equity were also transferred. Provisions for site equity have been made where other agencies or individuals hold equity stakes in the Charity’s property. The equity stakes will be released on sale of the property. Where the decision to sell can be made by a third party, the liability has been recognised as a short-term liability. Where the Charity has sole control of the decision, the liability is recognised as a long-term one. The Charity has provided for claims from part-time workers for back-dated pension costs. Up to 31 March 1996, under then Shaftesbury policy, part-time workers were ineligible to join the Shaftesbury Pension Scheme. Legislation has now indicated that the exclusion of part-time workers may have been incorrect. Accordingly provision has been made for the costs of back-dating pension provision for potential claimants. £76,000 has been provided for claim costs.

50 50

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

16.

CONSOLIDATED FUNDS Balance at 1 April 2011

Incoming resources

Outgoing resources

Transfers

Unrealised gains and (losses)

Balance at 31 March 2012

£’000

Property Fund

28,221

–

(2,437)

2,701

–

28,485

Revaluation Fund

10,552

–

Equipment Fund

1,499

–

Cyclical Maintenance Fund

1,906

–

Total Designated Funds

42,178

–

(2,977)

1,209

(1,234)

39,176

General Funds (restated)

4,381

37,982

(36,179)

(1,774)

(9)

4,401

Unrestricted Funds before Pension Liability

46,559

37,982

(39,156)

(565)

(1,243)

43,577

Pension Reserve

(6,795)

–

(405)

1,374

(4,287)

(10,113)

Total Unrestricted Funds

39,764

37,982

(39,561)

809

(5,530)

33,464

Education

2,209

623

(132)

931

–

3,631

Residential & Community Services Community Mission

1,328

439

(360)

(492)

–

915

101

(5)

–

108

Overseas

177

(103)

–

149

Giving by Lending

–

F Clements Trust Fund

–

Faith Training Centre

–

Kingsley Hall

103

(78)

(28)

–

Total Restricted Funds

3,859

1,355

(678)

411

–

4,947

Total Permanent Endowment Funds (see note 9)

5,662

(84)

(1,220)

4,451

49,285

39,428

(40,323)

–

(5,528)

42,862

Unrestricted Funds

– (540)

–

(1,234)

9,318

414

–

1,373

(1,906)

–

Restricted Funds

Total Funds

51 51

Livability Annual Report & Accounts 2012 Livability LivabilityAnnual AnnualReport Report&&Accounts Accounts2012 2012 Notes Notesto tothe theconsolidated consolidatedfinancial financialstatements statementsfor forthe theyear yearended ended31 31March March2012 2012(cont’d) (cont’d)

16. 16.

CONSOLIDATED CONSOLIDATEDFUNDS FUNDS(cont’d) (cont’d)

Name Nameof offund fund

Description, Description,nature natureand andpurpose purposeof ofFund Fund

Unrestricted UnrestrictedFunds Funds Property PropertyFund Fund

Represents Representsthe thetotal totalamount amount(at (atcost costless lessdepreciation, depreciation,impairment, impairment,unamortised unamortised government governmentgrants, grants,mortgages mortgagesand andsecured securedbank bankloans) loans)invested investedininfreehold freeholdand and leaseholdproperties propertiesused usedfor forthe thefunctional functionalpurposes purposesof ofthe theCharity. Charity. leasehold

Revaluation RevaluationFund Fund

Represents Representsthe thenet netincrease increaseabove abovecost costininthe thevalue valueof ofthe theCharity’s Charity’sproperty property assets. assets.

Equipment EquipmentFund Fund

Represents Representsthe thetotal totalamount amountat atcost costor orvaluation, valuation,less lessdepreciation depreciationand and unamortisedgovernment governmentgrants grantsand anddirect directborrowing, borrowing,invested investedininfixtures fixturesand and unamortised fittingsand andmotor motorvehicles vehiclesused usedfor forthe thefunctional functionalpurposes purposesof ofthe theCharity. Charity. fittings

CyclicalMaintenance Maintenance Cyclical Fund Fund

Thedesignation designationof offunds fundsfor forCyclical CyclicalMaintenance Maintenancehas hasbeen beendiscontinued discontinuedby bythe the The Trusteesand andthe thebalance balanceof ofthis thisfund fundtransferred transferredto toGeneral GeneralFunds Fundsas asthere thereisisno no Trustees materialdifference differencebetween betweenthe theuses usesto towhich whichthe thefunds fundsare areput. put. material

GeneralFunds Funds General

Representsundesignated undesignatedmonies moniesretained retainedto toprovide providethe theworking workingcapital capitalto toenable enable Represents theCharity Charityto tocarry carryouts outsits itsactivities. activities. the

PensionReserve Reserve Pension

Representsthe thedeficit deficitininthe theCharity’s Charity’sdefined definedbenefit benefitpension pensionschemes, schemes,as as Represents calculatedunder underFRS FRS17. 17. calculated

RestrictedFunds Funds Restricted Education Education

Variousfunds fundsreceived receivedto tosupport supportindividual individualeducational educationalestablishments. establishments. Various

Adult AdultSupport Support

Various Variousfunds fundsreceived receivedto tosupport supportindividual individualadult adultsupport supportestablishments establishmentsand and holidays,lifestyles lifestylesand andother otheroperations, operations,including includingaagrant grantof of£24,000 £24,000from fromthe theCity City holidays, BridgeTrust”. Trust”. Bridge

Giving Givingby byLending Lending

Monies Moniesreceived receivedfrom fromindividuals. individuals.

FFClements ClementsTrust TrustFund Fund

Income Incomefrom fromthis thisfund fundisisto tosupport supportthe theCharity’s Charity’sgeneral generalactivities. activities.

Community CommunityMission Mission

To Tosupport supportthe thework workof ofthe thecommunity communitymission missionteam teamand andthe thelink linkchurches. churches.

Faith FaithTraining TrainingCentre Centre

To Tosupport supportthe thework workof ofthe theFaith FaithHorticultural HorticulturalCentre. Centre.

Overseas Overseas

Various Variousfunds fundsto tosupport supportour ouroverseas overseaswork. work.

Kingsley KingsleyHall Hall

To Tosupport supportthe thework workof ofKingsley KingsleyHall HallCommunity CommunityCentre Centreand andthe thepre-school. pre-school.

Funds Fundsbalances balancesinclude include£880,000 £880,000of ofinvestment investmentasset assetrevaluation revaluationreserve reserve(2011: (2011:£880,000). £880,000).

17. 17.

ANALYSIS ANALYSISOF OFASSETS ASSETSAND ANDLIABILITIES LIABILITIESBETWEEN BETWEENFUNDS FUNDS General General Designated Designated

Pension Pension

Restricted Restricted Permanent Permanent Endowment Endowment

Total Total Funds Funds

£’000 £’000

––

41,784 41,784

––

236 236

3,916 3,916

45,936 45,936

Investments Investments

1,715 1,715

––

817 817

2,532 2,532

Cash Cash

4,140 4,140

––

4,711 4,711

––

8.851 8.851

Other Othercurrent currentassets assets

1,946 1,946

––

1,946 1,946

Tangible Tangiblefixed fixedassets assets

Current Currentliabilities liabilities Long-term Long-termliabilities liabilities Funds Fundsat at31 31March March2012 2012

(3,400) (3,400)

(271) (271)

––

(282) (282)

(3,953) (3,953)

––

(2,337) (2,337)

(10,113) (10,113)

––

(12,450) (12,450)

4,401 4,401

39,176 39,176

(10,113) (10,113)

4,947 4,947

4,451 4,451

42,862 42,862

52 52

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

18.

RELATED PARTY TRANSACTIONS

There have been no related party transactions in the year (2011: Nil).

19.

PARENT CHARITY RESULTS

As permitted by section 480 of the Companies Act 2006 and the provisions of paragraph 397 of the Charities SORP 2005, no separate Statement of Financial Activities is presented for the parent Charity. In the year ended 31 March 2012, the individual results of Livability were:

Income Expenditure Unrealised gains / (losses) Total surplus / (deficit) Transfers from predecessor charities Net increase / (decrease) in funds 20.

2012 £’000

2011 £’000

39,424 (39,161) (5,524)

39,453 (38,671) 7,297

(5,261)

8,079

987

(5,257)

9,066

CAPITAL COMMITMENTS

There were £284,000 of outstanding capital commitments at 31 March 2012 (2011: £337,000). Capital expenditure totalling £71,000 had been approved but not contracted for (2011: £1,600,000). Subsequent to the end of the financial year capital expenditure of £2,711,000 was approved for the construction of the new hydrotherapy pool at Victoria Education Centre.

21.

PENSIONS

The Charity contributes to five staff pension schemes: •

A Group Personal Pension Plan. This is a defined contribution scheme operated by Aegon Scottish Equitable in which all permanent non-bank employees of Livability, who have successfully completed their probationary period of employment, are eligible to join.

•

The Shaftesbury Society defined benefit scheme (“TSS scheme”) which was closed to new members and further service accrual in June 2007. This scheme is administered by The Pensions Trust.

•

The John Grooms Pension and Assurance Scheme (“JGPAS”), a defined benefit scheme, which had been closed to new members some years ago, was closed to further service accrual in June 2007. This scheme is administered by Punter Southall.

•

The Teachers’ Pension Scheme (a multi-employer defined benefit scheme) in which teaching staff are eligible to be members, and to which the Charity contributes at a rate fixed by the Fund actuaries.

•

The Pensions Trust Growth Plan. There are two active members of this scheme which is closed to further benefit accrual; contributions are made at the minimum level required to maintain membership of the scheme. Withdrawal from the scheme would trigger a liability estimated at 31 March 2012 at £600,000. There is no intention to withdraw from the scheme and therefore this liability is not recognised in the Accounts at 31 March 2012.

While the TSS scheme and JGPAS were closed in June 2007, members who were employed at the closure date retain a link between their salary and benefits payable until their retirement or their earlier date of leaving employment. 53 53

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

21.

PENSIONS (cont’d)

The cost of employer contributions to the Scottish Aegon plan and the Teachers’ Pension Scheme was £1,174,000 in the year (2011: £1,196,000). There are no prepaid contributions in respect of any of the schemes at the balance sheet date. The deficits in the defined benefit schemes have increased significantly on the FRS 17 measure since last year, mainly due to the reduced discount rates used to value future liabilities. Livability Housing (formerly John Grooms Housing Association) was a participating employer in JGPAS. In February 2011, Livability Housing merged with Habinteg and as part of the merger the liabilities relating to members’ employment with Livability Housing have been replaced by an insurance-backed scheme; these arrangements were concluded in the year ended 31 March 2012. This does not affect the rights of the pensioners nor the assets or the liabilities of JGPAS relating to members employment with Livability or the predecessor employer, John Grooms. The defined benefit schemes are both contracted-out of the State Second Pension Scheme (S2P) and their assets are held separately from those of the Charity. Contributions to the schemes were agreed with the schemes’ Trustees, in accordance with the agreed Technical Provisions and Recovery Periods agreed for each scheme. The subsequent disclosures combine data for both schemes, where possible, and reflect only Livability’s share of the JGPAS assets, liabilities and transactions. The last triennial valuation of the TSS scheme was made as at 30 September 2009 and was updated to 31 March 2012 by an independent qualified actuary in accordance with FRS 17. The recovery contribution made to the TSS scheme by the Charity in the year was £704,000 as set out in the agreed deficit recovery plan, plus administration expenses of £107,000. The deficit recovery plan runs to 1 October 2022. An actuarial valuation of JGPAS was carried out as at 31 March 2009 and updated to 31 March 2012 by an independent qualified actuary. The recovery contribution made to the Scheme by the Employer in the year was £400,000, plus administration expenses of £163,000. Recovery contributions of £400,000 per annum (payable in quarterly instalments until 1 October 2022) are currently paid, with an additional contribution payable of £2,500 for each 0.1% that the average growth in Pensionable Salary for quasi-deferred members exceeds inflation in any Scheme year ending 31 March.

54 54

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012

Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d) Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

21. PENSIONS (cont’d) 21. PENSIONS (cont’d) The principal assumptions used by the actuaries for the purposes of the FRS 17 valuation were (in The principal assumptions used by the actuaries for the purposes of the FRS 17 valuation were (in nominal terms): nominal terms): At At At At 31 March 31 March 31 March 31 March 2012 2011 2012 2011 Discount rate 4.60% 5.75% Discount rate 4.60% 5.75% Rate of increase in salaries 3.10% 3.30% Rate of increase in salaries 3.10% 3.30% Inflation assumption CPI 2.20% 2.70% Inflation assumption CPI 2.20% 2.70% RPI 3.10% 3.30% RPI 3.10% 3.30% Pension increases: Pension increases: The Shaftesbury Society scheme The Shaftesbury Society scheme Pension accrued pre 6/4/05 2.20% 2.70% Pension accrued pre 6/4/05 2.20% 2.70% GMP accrued post 5/4/05 2.00% 2.00% GMP accrued post 5/4/05 2.00% 2.00% Excess accrued post 5/4/05 1.80% 3.30% Excess accrued post 5/4/05 1.80% 3.30% The John Grooms Pension and Assurance Scheme The John Grooms Pension and Assurance Scheme Pre 94 Pension Pre 94 Pension Post 94 GMP Post 94 GMP Post 94 Excess Post 94 Excess

5.00% 5.00% 2.00% 2.00% 3.00% 3.00%

5.00% 5.00% 2.55% 2.55% 3.20% 3.20%

Assumed life expectancies in years on retirement at age 65 are: Assumed life expectancies in years on retirement at age 65 are: Retiring today Males 21.1 – 21.5 Retiring today Males 21.1 – 21.5 Females 23.7 – 24.0 Females 23.7 – 24.0 Retiring in 20 years time Males 23.1 – 23.4 Retiring in 20 years time Males 23.1 – 23.4 Females 25.5 – 25.8 Females 25.5 – 25.8

21.1 – 21.4 21.1 – 21.4 23.1 – 23.7 23.1 – 23.7 23.0 – 23.3 23.0 – 23.3 25.6 – 25.7 25.6 – 25.7

The assumptions used in determining the overall expected return of the schemes have been set with The assumptions used in determining the overall expected return of the schemes have been set with reference to yields available on government bonds and appropriate risk margins. reference to yields available on government bonds and appropriate risk margins. The mortality assumptions used in the valuation of both schemes were the SAPS All Pensioners The mortality assumptions used in the valuation of both schemes were the SAPS All Pensioners using Medium Cohort mortality improvement based on year of birth, with a 0.5% minimum using Medium Cohort mortality improvement based on year of birth, with a 0.5% minimum improvement. The JGPAS mortality assumptions were varied by the BeLonG study prepared for the improvement. The JGPAS mortality assumptions were varied by the BeLonG study prepared for the scheme. scheme. The assets in the schemes and the expected rates of return were: The assets in the schemes and the expected rates of return were:

Equity Equity Bonds Bonds Property Property Cash and current liabilities Cash and current liabilities Fair value of scheme assets Fair value of scheme assets

Long-term rate Long-term rate of return of return expected at at 31 expected March 2012 31 March 2012

Value at Value at 31 March 31 March 2012 2012 £’000 £’000

Long-term rate Long-term rate of return of return expected at at 31 expected March 2011 31 March 2011

Value at Value at 31 March 31 March 2011 2011 £’000 £’000

7.30% - 8.00% 7.30% - 8.00% 3.20% - 5.10% 3.20% - 5.10% 7.00% 7.00% 0.50% 0.50%

14,652 14,652 12,144 12,144 1,173 1,173 252 252 28,221 28,221

8.00% - 8.40% 8.00% - 8.40% 4.20% - 5.75% 4.20% - 5.75% 7.40% 7.40% 0.50% 0.50%

14,235 14,235 11,113 11,113 1,104 1,104 (59) (59) 26,393 26,393

The actual return on assets over the period was The actual return on assets over the period was

2,108 2,108

1,754 1,754

(38,334) (38,334) 28,221 28,221 (10,113) (10,113)

(33,188) (33,188) 26,393 26,393 (6,795) (6,795)

The amounts recognised in the balance sheet are as follows: The amounts recognised in the balance sheet are as follows: Present value of scheme liabilities Present value of scheme liabilities Fair value of scheme assets Fair value of scheme assets Deficit and net pension liability recognised Deficit and net pension liability recognised

55 55

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

21.

PENSIONS (cont’d)

Reconciliation of opening and closing balances of the present value of the scheme liabilities

Liabilities at beginning of year Current service cost Interest cost Actuarial (gain) / loss Benefits paid Liabilities at end of year

2012 £’000

2011 £’000

33,188 278 1,868 4,654 (1,654) 38,334

34,733 244 1,959 (2,338) (1,410) 33,188

Reconciliation of opening and closing balances of the fair value of scheme assets

Fair value of scheme assets at beginning of year Expected return on scheme assets Actuarial gain Contributions by employers Benefits paid Fair value of scheme assets at end of year

Recognised gains and losses in the Statement of Financial Activities Actuarial gains / (losses) Impact of surplus restriction Total

History of scheme assets, obligations and experience adjustments

2012 £’000

2011 £’000

26,393 1,741 367 1,374 (1,654) 28,221

24,608 1,697 457 1,041 (1,410) 26,393

2012 £’000 (4,287) – (4,287)

2011 £’000 2,795 – 2,795

At 31 March 2012

At 31 March 2011

At 31 March 2010

At 31 March 2009

At 31 March 2008

£’000 (38,334)

£’000 (33,188)

£’000 (34,733)

£’000 (26,382)

£’000 (27,178)

28,221

26,393

24,608

19,108

23,228

(10,113)

(6,795)

(10,125)

(7,274)

(3,950)

291

(1,558)

(384)

(5)%

(1)%

(4,945)

3,896

(7,102)

1,775

4,545

Changes in assumptions as a percentage of scheme liabilities

(13)%

12%

(20)%

17%

Experience adjustments arising on scheme assets

367

457

4,509

(5,711)

(2,123)

18%

(30)%

(9)%

Present value of scheme liabilities Fair value of scheme assets Deficit in the schemes Experience adjustments arising on scheme liabilities Experience item as a percentage of scheme liabilities Changes in assumptions underlying the present value of scheme liabilities

Experience item as a percentage of scheme assets

56 56

Livability Annual Report & Accounts 2012 Livability Annual Report & Accounts 2012 Notes to the consolidated financial statements for the year ended 31 March 2012 (cont’d)

21.

PENSIONS (cont’d)

Analysis of the amount charged to net incoming/(outgoing) resources

Current service cost Expected return on pension scheme assets Interest on pension scheme liabilities Total cost

Contributions and administration fees payable in the year ending 31 March 2013 are expected to be:

Year ended 31 March 2012 £’000

Year ended 31 March 2011 £’000

278

244

(1,741)

(1,697)

1,868

1,959

405

506

Year ending 31 March 2013 £’000

The Shaftesbury Society scheme

811

John Grooms Pension and Assurance Scheme

565 1,376

57 57

Livability Annual Report & Accounts 2012

LIVABILITY INFORMATION STRUCTURE, GOVERNANCE AND MANAGEMENT PATRON Her Royal Highness, The Princess Royal VICE PATRONS Baron Green of Hurstpierpoint Lady Hobson MBE LIFE PRESIDENTS Sir Ron Hobson KCVO Mr David Thompson LLB OBE

PRESIDENT Baroness Howarth of Breckland OBE

VICE-PRESIDENTS Rt Revd Dr T Butler MSc PhD LLD DSc The Bishop of London, The Rt Revd and Rt Hon R J Chartres DDF SA Mr Michael Edgar MA MChir FRCS Mrs Pamela Farrell Tredinnick OBE Prof Ram Gidoomal CBE FRSA CCMI Mr Robert Hodge The Rt Revd and Rt Hon The Lord Hope of Thornes KCVO, PC Mr John Hughesdon Mr Roy McCloughry BSc (Econ) MSc Professor Lord McColl of Dulwich CBE Mr Robert Powell Ms Esther Rantzen CBE Ms Pam Rhodes The Revd Canon Roger Royle Lady Wilkins The Archbishop of Canterbury, The Most Revd R D Williams MA DPhil, DD FBA

Trustees Leonard J H Beighton* CB MA, Chair of Education Oversight Sub-Committee Martin Bradford* FCA th

Chris Carr BSc FCA CF, Vice Chair (appointed 25 July 2012) Chair of Fundraising, Communications and Community Engagement Sub-Committee

Livability Annual Report & Accounts 2012

Sally Chivers (appointed on 21 March 2012) Kate Clare BEd; Dip Ed; NPQH; PDD (appointed on 2

June 2011)

Anne-Marie Costigan RGN DMS Cert in Ed Jenny Edwards MBE RSCN SRN NNEB, Chair of Partnership Board st

Peter N Griffiths* BSc (Econ) FCA, (resigned as Vice Chair 21 January 2012), Honorary Treasurer, Chair of Finance and General Purposes Sub-Committee Keith Hickey BSc (Hons) MSc FCCA DChA Baroness Howarth of Breckland OBE, Chair of Residential & Community Services Oversight Committee Paula Kerr MSc BSc (Chair of Trustees) Revd Agnita Oyawale MA BD (Hons) AKC PGCE th

Rodger Scott (resigned on 4 September 2011) Dawn Sugden* LLB

Non-Trustee Independent Chair of Audit Sub-Committee – Alastair J C Collett LLB *Trustee Members of the Audit Sub-Committee

SENIOR OFFICERS Chief Executive

Mike Smith BA MSc MCIPD OBE retired 3rd August 2012

Director of Operations

Dave Webber Dip MS Director of Operations, Acting rd Chief Executive from 3 August 2012

Director of Community Mission

Adam Bonner BA (Hons)

Director of Fundraising and Communications

John Chamberlain BA (Hons) MIOF resigned 30 May 2011 as Director of Fundraising and Marketing Simon Bernstein, Interim Director of Fundraising th st (Interim 8 August 2011 – 31 December 2011) Philip Roethenbaugh MInstF (Cert), Director of nd Fundraising and Communications (appointed 2 January 2012)

Director of Human Resources

Anne Kippax (neé Strach) MA BA (Hons) FCIPD

Director of Finance and ICS

Jackie Bliss BA (Hons) ACA (resigned 2 January 2012) th Martin Belham, Interim Director of Finance (28 th November 2011 – 5 July 2012) th Ruby Judt BA (Hons) ACMA (appointed 12 March 2012)

Company Secretary and Director of Secretariat and Estates

Michael Langworth BSc (Econ) (Hons) ACIS

5959

Livability Annual Report & Accounts 2012

SOLICITORS Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Bates Wells & Braithwaite LLP 2-6 Cannon Street London EC4M 6YH Pothecary Witham Weld 70 St George's Square London SW1V 3RD Speechly Bircham LLP 6 St Andrew Street London EC4A 3LX Virtual Law Flints House Eldernell Lane Whittlesey Peterborough PE7 2DD BANKERS Barclays Bank plc Charities, Housing and Education Team 1 Churchill Place London E14 5HP AUDITORS PKF (UK) LLP Farringdon Place 20 Farringdon Road London EC1M 3AP INTERNAL AUDITORS Chantrey Vellacott DFK LLP Russell Square House 10-12 Russell Square London WC1B 5LF CHARTERED SURVEYOR, PROPERTY VALUERS Hilbery Chaplin 86 Market Place Romford Essex RM1 3HQ

Livability Annual Report & Accounts 2012

REGISTERED AND CENTRAL OFFICE 50 Scrutton Street London EC2A 4XQ Telephone: 020 7452 2000 Fax: 020 7452 2001 Email: info@livability.org.uk Website: www.livability.org.uk

Our staff

Our service users often say how wonderful our staff are. We make sure our 1,600 staff are well-trained so they can give the best service. This year, 75 per cent of our staff in our CQC-registered services have gained or are working towards qualifications.

Our standards

We are proud of our high standards and want our service users to get the very best support. The Care Quality Commission (CQC) rates all our registered care services as excellent or good.

What makes us tick Livabilityâ&#x20AC;&#x2122;s work is inspired by our Christian values and ethos. We work with disabled and disadvantaged people so they can have real choice and independence. We believe every person is equally important. We work with people of any faith or no faith. Visit our website www.livability.org.uk for more information about our work.

Central office: Livability 50 Scrutton Street London EC2A 4XQ www.livability.org.uk Phone Email

020 7452 2000 info@livability.org.uk

Patron HRH The Princess Royal Charity registration no. 1116530 Company registration no. 5967087 Livability is the new face of John Grooms and the Shaftesbury Society