Livability Annual Report 2012-13 by Shaftesbury

20122013 This book tells you what Livability did in the last year

Company Registration Number 5967087 Registered Charity Number 1116530

LIVABILITY Report and Accounts Year Ended 31 March 2013

Livability Annual Report & Accounts 2013

CONTENTS

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

Trustees’ Report incorporating: Introduction

Principal Activities and Core Values

Review of 2012/13

2013/14 – A Future in the Making

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

Group and Charity Balance Sheets

Consolidated Cash Flow Statement

Notes to the Financial Statements

Thank you to our supporters

Livability Information

Livability Annual Report & Accounts 2013

A MESSAGE FROM OUR PATRON, HRH THE PRINCESS ROYAL

Livability Annual Report & Accounts 2013

INTRODUCTION It has been a privilege to be Interim Chair of Livability during 2012/13, a year when the spotlight was focused on the achievements of disabled people during the London Paralympics and which challenged the way disability is perceived. This year has also been a time of renewed challenges for our sector, as all charities continue to navigate a difficult economic climate. Dave Webber, our Chief Executive, and the Board have worked hard to make sure that this did not affect the services we offer disabled people and that our organisation could continue to grow. Our staff, who are a fundamental strength of the organisation, have impressed me in the way that their focus has remained firmly on serving the disabled and disadvantaged people whom we support and in listening to their needs. My sincere thanks go to all our staff for their dedicated service. Of course it hasn’t always been easy, as the need for change and improved efficiency has often meant that we had to take tough, but necessary, decisions. I am confident that this approach has given us all the tools we need to run and develop our services to the highest standards. In our education centres, we have seen the number of students increase significantly at Nash College to around 80, and the college achieved a “Good” rating from Ofsted. The student intake in our other college and our school remains steady. However, the change to the funding environment for our further education colleges is an on-going challenge which we will have to navigate our way through. In what has been another tough year for all fundraising charities, many seeing their income drop, I am delighted to report that for the first time in many years we have ended the year with more regular donors than we began with, and we came very close to meeting our ambitious fundraising targets. We certainly are blessed with highly committed, loyal and generous supporters, without whom we could not achieve all that we have set out to do. At Victoria Education Centre and Sports College we successfully raised the £2.8m needed to start work on a new therapy pool, work which we expect to be completed in September 2013. A demanding further target of £1.7m is needed to complete the second and final stage of the project which will allow us to build a new multi-therapy centre. Our founders Lord Shaftesbury and John Groom were true social reformers. With the launch and implementation of our national ‘’Let Me In’’ campaign, we rediscovered our campaigning roots and our passion for challenging injustice and inequalities. Wanting to create a fairer society where all disabled people can fulfil their true potential is an ambitious goal but it is what we have set out to do. This is more crucial than ever when disabled people could become isolated and see their standard of living eroded due to the on-going cuts in social care budgets. We will continue to fight for a better future for disabled and disadvantaged people. To bring even more stability and impetus to the organisation, I am delighted to welcome Caroline Armitage as our new Chair. Caroline has had a high-flying legal career combined with experience of leading and advising charities at the highest level, including her current role as Chief Executive of the Royal Blind Society. She has the insight and the talent needed to lead our Board and ensure that Livability thrives over the coming years.

Livability Annual Report & Accounts 2013

Again I would like to thank everyone who has contributed to the hard work and success of Livability this year. In particular, my personal thanks go to all the members of the Board and the Directors who have supported me in my time as Interim Chair. However, we also all truly appreciate the commitment and dedication of our donors, staff and volunteers and the incredible support we have received from our Patron, HRH The Princess Royal, and our President, Baroness Howarth of Breckland.

Chris Carr Interim Chair of the Board of Trustees

Livability Annual Report & Accounts 2013

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, aimed at providing independence and opportunity. The main areas of work are: • Residential and nursing care in 22 high-quality homes. • 14 Supported Living schemes and 12 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.

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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.

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

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

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

Livability Annual Report & Accounts 2013

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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.

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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.

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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

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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.

Livability Annual Report & Accounts 2013

Our strategic goals: To guide our work, Livability’s Chair, Board of Trustees and Directors Management Team have agreed the following strategic goals to build and secure Livability’s future over the next five years: By 2017, we will be the provider of choice, in our chosen geographical areas, of our specialist services. We will: •

Have a reputation for services that are high quality, value for money and flexible.

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Place individual choice, empowerment and respect at the centre of all we do, with customers and other stakeholders fully involved in measuring the quality of our business.

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Be able to demonstrate that we are governed, led and managed efficiently and effectively.

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Be able to demonstrate social impact and community engagement by strategically partnering with the Church to create socially inclusive communities.

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 2012/13. 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 2013

REVIEW OF 2012/13 To ensure that Livability continued to meet and anticipate the needs of the disabled and disadvantaged people it serves, we set ourselves a series of ambitious but necessary strategic objectives for 2012/13 to give a framework to our work and maximise its impact. In 2012/13 we: Placed the customer at the centre of all we do In 2012/13 we set ourselves an objective of placing the customer at the centre of all we do. We carried out a satisfaction survey, asking all our service users and their professional and family supporters what they thought about the care and support we provide. This year we also asked friends, relatives and external professionals who support our services (questions from the NHS Dignity Challenge). Of those who responded, 92% agreed that Livability enabled service users to maintain the maximum possible level of independence, choice and control in their lives. 96% agreed that Livability treated each of our service users as an individual by offering them a personalised service and assisting them to maintain confidence and positive self-esteem. This vote of confidence, alongside the fact that our residential homes are running at full capacity and that our educational services continue to excel (for example, Nash College received a ‘’Good’’ rating by Ofsted this year), shows that we are providing disabled people with the type of services that they need and deserve. Our Service Users Network also enabled us to regularly listen to the concerns of the people we support, and act upon them. For example, we built the messages and calls to action of our national ‘’Let Me In’’ campaign upon the issues that our service users had told us affected them on a daily basis. The incredible development of our Enterprise Agency and the success of our spinal injury online training resource also showed that we know how to innovate and that the services and resources we are able to provide are constantly evolving. Ensured the financial health of the charity in order to sustain growth In 2012/13 we set ourselves an objective of ensuring the financial health of the charity in order to sustain growth. What we did was to pioneer a new way of working by establishing six operational hubs, bringing several of our services closer together. This new structure will ensure that we work in a more joined-up way. Existing and potential service users, and their families and carers, will be more easily able to get information on, and access to, all the services that we can provide within a particular area. The hubs will also make it easier for us to develop new business opportunities. We also restructured operational management to improve efficiency and quality and compliance monitoring. We grew some of our existing services significantly; for example, our Enterprise Agency secured a new contract to dramatically increase the number of disabled and disadvantaged people who can set up their own business with our help. We also sought new, innovative ways to make the most of our assets, for example by renting out two floors of our Central Office building. Our fundraising activities, and our ability to make the most of the funds generously given by our faithful supporters, allowed us to continue to improve our services. For example, the completion of Phase 1 of our Sparkle Appeal meant that we could build a state-of-the-art hydrotherapy pool for our students at Victoria Education Centre and Sports College. Ensured the charity is efficient and effective In 2012/13 we set ourselves an objective of ensuring the charity is efficient and effective. As a charity, we need to make sure that we use the funds that are available to us wisely and that we focus our resources towards supporting the disabled and disadvantaged people who are our primary concern. What we did was to establish a clear strategy for reducing overhead across the business. We also put under scrutiny the way we work at our Central Office and examined and reviewed staffing in various teams. This has allowed us to create a more streamlined and effective structure, without affecting our ability to deliver our core business. To ensure that value for money is at the heart of our service delivery, we have also started the process of establishing a clear menu of costs for our bespoke

Livability Annual Report & Accounts 2013

services, such as care and support services as well as education services, which will continue in 2013/14. Provided impact and transformation of lives as the largest Christian faith-based disability charity In 2012/13 we set ourselves an objective of providing impact and transformation of lives as the largest Christian faith-based disability charity. What we did was to launch our ‘’Let Me In’’ national campaign to build on our legacy as social reformers and rediscover our campaigning spirit. The campaign did much to champion inclusivity at national and grass-roots level. We also continued to capitalise on our uniqueness as the largest Christian disability charity in the UK and brought the vital work of our Community Mission team to the forefront, with the aim of bringing life to local communities. In the last 12 months, this work has become more strategically focused around three particular sub-themes of community engagement: mapping community needs and assets; improving wellbeing; and disability inclusion. These themes draw on both the rich history and contemporary vision of Livability to transform society. In essence, Community Mission’s aim is to resource this transformation through the Church. Building on the success of hundreds of local church partnerships over the past ten years, the team has developed a model of working at a more strategic level, currently under way with the Diocese of Durham. Within the past year, over 1,100 people directly benefited from our various training programmes and these frontline church leaders, staff and volunteers directly serve more than 10,000 people, through community activities across the country. 89% of those trained reported a direct improvement in their local work because of our support. Community Mission has also continued to work with our 16 Link Churches, either owned or held in trust by Livability across London. These churches in the last year have run a range of programmes from youth mentoring through to wellbeing sessions for older people, directly serving 3,000 disadvantaged people. Highlights

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Provided high quality residential and / or nursing care to 250 disabled adults and tailored education and / or care to 220 young people to help them become more independent and reach their full potential. Supported over 300 disabled people to re-engage in social activities, through our Lifestyles programme. Opened seven flats and nine new beds at our residential service in Norwich, John Grooms Court, following a £600,000 capital appeal, increasing our residents’ independence and their quality of life. Secured £2.8m to build a new hydrotherapy pool at Victoria Education Centre and Sports College in Dorset. Helped 74 people start their own business through our Enterprise Agency and expanded the service by securing a new London-wide contract. Allowed more than 3,000 disabled people and their families and / or carers to enjoy a break in a fully-accessible Livability guest house or self-catering property run by our Holiday Services. Cared for around 187 people at Livability Icanho, our brain injury rehabilitation service offering them tailored support and the opportunity to rebuild their lives, often after a traumatic event. Enabled, through Livability Overseas’ bespoke training programme for spinal injury rehabilitation, more than 30,000 people with disabilities in Asia to receive rehabilitation services and 11,877 healthcare professionals worldwide to access training opportunities. Influenced audiences of over 10m people every month through the media coverage generated by our various activities, culminating in the appearance of our Chief Executive, Dave Webber, on a national breakfast news programme, ITV’s Daybreak. Secured endorsement from a wide range of new high profile celebrity supporters, including Dame Judi Dench, Joanna Lumley, Gordon Ramsay and John Malkovich who all took part in a celebrity postcards auction.

Livability Annual Report & Accounts 2013

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Launched our national Let Me In campaign to challenge the barriers that many disabled people still face every day when trying to access housing, education, employment and training opportunities and when wanting to participate actively in their local community and society in general. Won the disability category of the UK Charity Awards 2013 for our online spinal injury training resource for healthcare professionals, www.elearnSCI.org. Reached more than 1,100 frontline church leaders, staff and volunteers through the various training programmes provided by our Community Mission team.

Our charity provides a wide range of rehabilitation, care and education services to disabled and disadvantaged people. Working with individuals from the age of four into adulthood, all of our services put those we work with at their core and strive to provide opportunities for people to take control of their lives. Education Services Livability has provided education, learning and work experience opportunities to over 200 children and young people through our school and colleges. Through individually tailored programmes of learning, children and young people are supported to gain skills and knowledge to help them work towards the lives that they choose. The colleges provide a holistic education through a curriculum geared to the development of the individual. Students are encouraged to pursue outside interests and live a full social life. In particular, we support young people in developing skills that maximise their independence and choice as they prepare for life beyond full-time education. Residential Care and Lifestyle Programmes Our care homes, some of which also provide nursing care, have supported over 250 people to stay healthy, develop new skills, gain confidence and take control of their lives. Our specially trained staff provided practical assistance and encouragement to residents to help them take advantage of every opportunity for independence. For some, this means continuing to make their own decisions and define and manage their care; for others, it is learning what they will need to move on to alternative accommodation. Our Lifestyles programmes provided more than 300 clients with support to engage with and contribute to their communities. Specially trained staff worked with individuals to improve their networks and social links, enjoy new activities and to take part in work experience, volunteering and work. Individual packages of support are tailored carefully to the individual’s needs and goals and towards creating the ability for them to move on to take part in these activities without staff support wherever possible.

Livability Annual Report & Accounts 2013

Brain Injury Rehabilitation Service Livability Icanho, our brain injury rehabilitation service, provides advice, assessment and treatment for adults who have an acquired brain injury (often as a result of stroke or an accident) from both the statutory and non-statutory sector. Experienced clinicians also visit other services and hospitals to assess and advise on the needs and possible future rehabilitation pathway for our clients. This advice is provided to people commissioning the service as well as the client’s family or carers. The number of clients seen during 2012/13 was 187. The specialist interdisciplinary team also provides courses for other professionals, in order to train and provide information for those involved with this client group. An example of this is a project aimed at up-skilling other health professionals in emotional and psychological wellbeing for stroke survivors, highlighted as a significant need in recent national reports. The service also provides regular carer education sessions. Community Mission The Community Mission team developed a new “How is my Neighbour” training course, to encourage churches to explore what it could mean to help improve wellbeing within their community, a theme closely linked with the current “localism” agenda. As stress, anxiety and loneliness increase, many communities have continued to fracture. To address this, we also created the “Happiness Course”, a four-session community-based intervention to help increase wellbeing levels, piloted in 20 different local environments, with over 500 people taking part. Over 83% of participants reported they felt better able to cope with stress and had interventions to put into practice to increase their own happiness levels. The course has generated much interest, including national press, and a new course for leaders is being developed. The team also launched the Churches Inc. Charter, in partnership with Through The Roof, as a campaign to encourage churches in their own inclusion of disabled people. This charter has been further developed by the “Dementia Friendly Churches” campaign and associated training resources, through which Livability trained over 200 church leaders in its first four months. The team helped raise the profile of Livability through: the Prayer Diary now being accessible online as well as in print; an e-newsletter read by over 4,000 people and; representing the charity at various national Christian conferences. Livability Overseas Livability Overseas continued its work to support the development of services and opportunities for people with disabilities, most commonly spinal injuries, living in low-resourced countries throughout Asia. In Nepal, our work with the Spinal Injury Rehabilitation Centre (SIRC) helped them to gain recognition as a National Rehabilitation Centre and funding to complete its training and conferencing centre. In Sri Lanka, our work with the Sri Lankan Spinal Cord Network and the Ministry of Health helped support the growing network of rehabilitation facilities throughout the country and establish a national training programme for healthcare professionals working in the field of disability and rehabilitation. In Bangladesh, where our overseas programme began in 1995, we supported the development of the Asian Spinal Cord Network (ASCoN). Internationally, we lead the development of www.elearnSCI.org, an educational resource that has, since its launch in September 2012, been accessed by over 15,000 people in almost 150 countries. This work culminated in Livability winning a prestigious Charity Award.

Livability Annual Report & Accounts 2013

Enterprise Agency Our Enterprise Agency gives disabled and disadvantaged people the support they need to start their own successful businesses. This year it has gone from strength to strength, gaining a lead provider contract with North London Job Centre Plus offices. This has resulted in a higher number of service users through the New Enterprise Allowance programme. We have employed a new business advisor and are privileged to have the support of a number of volunteer mentors with commercial and financial sector backgrounds. We always welcome approaches from additional volunteers willing to give their time and expertise to assist staff in providing high-quality business start-up advice and guidance. Moving into a purpose-built section of our Central Office building has enabled us to continue a high standard delivery of services to our clients. Holidays Starting as an accessible holiday pioneer, Grooms Holidays, in the 1970s, the Livability Holidays portfolio has provided fully accessible holiday accommodation in the UK for nearly 40 years. Last year, more than 3,000 disabled people and their families enjoyed a break in a Livability guest house or self-catering property. Our properties are located around the country, from the Lake District to Somerset. They are often fully booked over the peak April-September season, with many visitors returning year after year. Fundraising The first phase of the Sparkle Appeal at the Victoria Education Centre and Sports College in Poole is now completed. We raised £2.8m from legacy and fundraising sources to build a state-of-the-art hydrotherapy pool. Building work began in November 2012, following a turf-turning ceremony attended by our Patron HRH The Princess Royal during the summer. The pool will be completed by September 2013. We are also incredibly grateful that our supporters allowed us to receive a legacy income of £1.3m. With help from the Big Lottery, major donors and trusts and foundations we expanded Lifestyle Choices to reach disabled people in five new areas, supported our Enterprise Agency and started to upgrade facilities at a number of our residential services to increase personal independence for our service users. Every year, a huge impact is made by our generous individual donors, Friends Groups and our event supporters to our ability to put our funds where they are needed most. This year, we especially thank Harrow School who made us the beneficiary of their Long Ducker running event which raised £115k, our London Marathon participants who helped us raise over £50k and our volunteer fundraisers who collectively, as Friends Groups to five of our Livability services, raised over £30k. Service-user Involvement 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. .

Livability Annual Report & Accounts 2013

2013/14 – A FUTURE IN THE MAKING As part of our new strategy and five-year plan, we are setting ourselves measurable and ambitious goals and objectives, in order to build and secure Livability’s future. 2013/2014 will be a really exciting period where we will start putting into action this clear vision for growth and excellence. st

Our 1 Objective is to deliver excellent services. In 2013/14 we will: Focus on developing and supporting our six new operational hubs so that we work towards becoming the provider of choice for specialist services in the geographical areas that they cover. We will measure our success by ensuring that the disabled people we serve are able to inform and influence how these services are shaped and delivered. Our aim is for the hubs to offer a wide range of high quality, cost effective services that are valued by service users. Complete major improvement projects, such as finalising the construction of our Victoria Education Centre and Sports College hydrotherapy pool, and the redevelopment of our Ashley House residential home. These projects will have a crucial impact on the quality of life of our service users and will show our commitment to providing disabled people with modern facilities that truly meet their needs.

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Objective is to have efficient overheads. In 2013/14 we will: Continue our drive to become more efficient and reduce our costs, without affecting the quality of our services or our ability to grow and innovate. Continue to tackle our pension deficit.

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Our 3 Objective is to implement effective decision making. In 2013/14 we will: Use our new hubs structure and streamlined Central Office functions to be able to make decisions and changes swiftly and effectively. Nurture a culture where our staff and volunteers all feel part of “One Livability” and believe that they have the opportunity to make a difference to the lives of some of the most disadvantaged and vulnerable people in our society.

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Our 4 Objective is to increase our income. In 2013/14 we will: Maximise and develop our fundraising activities and be able to show our donors how the funds they generously donate can transform lives every day. Be prepared to face the challenges created by a potentially difficult external environment, which includes changes to funding of Further Education. Continue to scrutinise our services and activities to make sure that everything we do offers disabled people choice and value for money; reshaping some of our service provision where necessary. Capitalise on opportunities for growth of our services, for example by building on the incredible success of the Enterprise Agency, with the help of our new Business Strategy.

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Our 5 Objective is to do what we say we will. In 2013/14 we will: •

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Through our Service Users Involvement team and by listening closely to the feedback that our beneficiaries and their families and carers give us, put the views of disadvantaged people at the heart of everything we do so that, at a time when disabled people are facing increasing financial pressure, our organisation provides services for disabled people, shaped by disabled people. Develop our campaigning activities so that Livability continues to champion inclusion and challenge injustice by tackling the many barriers that disabled people still face every day.

Livability Annual Report & Accounts 2013

Use our links with Churches to have a real social impact on communities and to promote inclusion for disabled and disadvantaged people. REPORT OF THE BOARD •

The Board of Trustees (the Board) submits its Report and Financial Statements for the year to 31 March 2013. Structure, Governance and Management 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. The Charity was established in 2007, following a merger between The Shaftesbury Society and John Grooms, to combine the resources of the two predecessor charities, which had served disabled people for almost 150 years, to create the UK’s largest Christian disability charity. The Charity was th initially registered as Grooms-Shaftesbury and this was changed to Livability on 20 October 2010. Board of Trustees The Board currently comprises 13 Trustees who are collectively responsible for the governance of Livability. All Trustees are subject to rotation in accordance with the Articles of Association. Trustees 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 Board ensures that all activities are within Livability’s charitable objectives, decides strategic direction and agrees an annual budget and five-year rolling business plan. The corporate governance framework (which has been reviewed during the year) defines the decisions reserved for the Board and those which may be made under delegated authority. Formal Board business meetings are held in accordance with a governance calendar covering the Board and all Board sub-committees, under which the Board will meet at least four times in each financial year to consider the performance of the executive in delivering the business plan, together with risks and opportunities arising. 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 scrutiny of 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 made on a representative basis. The Board may establish ad hoc groups to undertake major service reviews or oversee major projects and appeals. The established sub-committees are: •

Audit – oversees internal audit, corporate trustee responsibilities, risk management and arrangements for the external audit.

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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.

Livability Annual Report & Accounts 2013

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Finance and General Purposes – oversees all matters related to finance, funding, asset management, human resources, remuneration and information and communication systems (ICS).

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Fundraising, Communications and Community Engagement – oversees fundraising, communications, campaigning, public relations, Community Mission and volunteering.

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Governance Development – monitors the effectiveness of Livability’s governance structure and process; oversees Trustee recruitment, engagement and succession, and Board development and appraisal.

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Residential and Community Services Oversight – oversees quality, performance and development of all services for disabled adults.

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

Trustee recruitment takes full account of the skills required by the Board to fulfil its responsibilities, as well as diversity and experience needs. Since Livability was founded, a number of new appointments have brought additional skills and experience to the Board and increased its diversity. New Trustees receive a comprehensive introduction to the work of the Charity, within which direct contact with the services Livability provides is a vital element. General updating is provided on specific strategic or compliance issues affecting Livability. 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. Following the retirement of Mike Smith, Dave Webber (formerly Operations Director) was appointed th th as Interim Chief Executive on 9 August 2012. His appointment was made permanent from 5 July 2013.

Livability Annual Report & Accounts 2013

Group Structure Trusts Since the date of merger, all but two trusts, the Samuel Hale Bibby Endowment Fund (SHBEF) and Kingsley Hall, Dagenham, have been vested in the corporate Trusteeship of Livability. The Shaftesbury Society remains the corporate Trustee of SHBEF and Kingsley Hall Church and Community Centre that of Kingsley Hall, Dagenham. 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. Currently the two remaining subsidiaries, Shaftesbury Care Limited and Grooms-Shaftesbury Limited, are both dormant. Any net surplus arising in these companies is gift-aided to Livability. 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), of which Livability is the sole company law member, 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 services in a number of South Asian countries. Livability provides both financial and non-financial support to this charity. Employment of Disabled People As a charity supporting disabled people and as part of our Equality and Diversity policy, we commit to making adjustments to meet the needs of disabled job applicants, employees and volunteers to work for us. We are members of the “Two Ticks - Positive About Disabled People” scheme and, as such, we commit to interviewing all 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 equality objectives. Employee Engagement We have some 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 involve and engage effectively with our people. In 2012/13, on reassessment for our Investors in People accreditation, we were pleased to receive the Bronze Award. 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 and our strategic review process. Our staff and volunteers nominated 40 of their colleagues for outstanding contribution, of which three individuals and one team received The Princess Royal Livability Award directly from HRH The Princess Royal.

Livability Annual Report & Accounts 2013

Use of Volunteers During 2012/13 Livability, has again benefited from a high level of commitment and superb work from volunteers across the Charity. From trusteeship to gardening to Friends Groups, the beneficiaries of Livability, spanning all generations, have been supported indirectly or directly by volunteers. Around 200 people have volunteered with us during this period, some for the first time, others as long-term volunteers continuing to support the dynamic vision of Livability to improve the lives of disabled and disadvantaged people. Friends Groups have had particular impact this year in supporting and fundraising for their local project, raising money locally to be spent locally. Groups comprise local members of the community, local Livability staff, parents of service users and service users themselves for some groups. Livability recognises that there is scope to engage far more people in a greater diversity of volunteering opportunities, from advocacy roles and local fundraising to supporting service users in accessing a greater variety of interests in their local community. We are launching a new volunteering strategy, devised collaboratively between Community Mission, Operations and Human Resources.

Livability Annual Report & Accounts 2013

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 by the Board, in no order of priority: 1. Income and operating margins. There is a risk that unavoidable cost pressures combined with static or decreased earnings erodes the margins essential for long-term sustainability and places increased reliance on voluntary income at a time when this is also under pressure. Of concern for 2013/14 is the uncertain impact of changes in placement arrangements and income streams for post-16 learners with very complex additional needs attending our two further education colleges. This challenge is being managed through remodelling of the services provided, development of a new strategy for post-16 learning and examining the overall arrangements through which education services are offered, quality-assured and developed. Trustees have agreed a strategy, which is being implemented, that will result over the next four years in further significant reductions in overhead costs through structural changes, procurement efficiencies and investment in information and communications systems. Alongside action to reduce the cost base, the Trustees have agreed a programme to sustain and develop earnings and unrestricted voluntary income through effective service marketing, seeking and developing new service opportunities and investing in donor recruitment and development.

Livability Annual Report & Accounts 2013

2. Investment is required to maintain and improve services and increase operational and administrative efficiency. Failure to provide or secure the funding 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 will progressively impair quality and efficiency and, in the longer term, may mean the withdrawal of services currently provided. The Trustees are actively seeking to mitigate this risk through steps to maintain and increase earnings and unrestricted voluntary income and by taking the following actions: 

Prioritising resources to improvements/refurbishment critical to business continuity, efficiency, quality of care and the fulfilment of educational attainment. We are bidding for matched funding where opportunities exist.



Ensuring investment meets current and future anticipated demands and is resilient to future changes.



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



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

3. Pensions. Livability’s two closed defined benefit pension schemes are subject to additional funding risks, having regard to their liabilities and assets due to changes in life expectancy, inflation, future salary increases and broader economic and monetary policy (such as quantitative easing), affecting the market value of and returns from investments. Additional deficit recovery plan payments were required for both schemes following triennial valuations in 2009/10. Further valuations have taken place, one of which has concluded without alteration to the recovery plan; the other is subject to formal agreement. In addition, the reforms relating to auto-enrolment will add to the cost burden from pensions borne by Livability. Increased pensions costs have constrained Livability’s ability to increase investment levels in the renewal and development of its disability facilities. Livability’s Trustees are aware of the impact of additional pension costs and have made appropriate provision for the anticipated take-up of auto-enrolment. In addition, they have sought to underline to the scheme trustees the strength of Livability’s covenant and, when appropriate, have engaged independent actuarial advice to review and challenge the technical provisions proposed by the scheme actuaries. 4. Reputation. Damage to reputation is a serious risk for any organisation, particularly for a charity engaged in service provision for disabled and disadvantaged people. The Trustees are aware of the damage to reputation that could arise from an incident relating to health and safety, safeguarding, fraud and other areas of compliance. They maintain a rigorous system of control which is carefully monitored. The Mid-Staffordshire NHS Foundation Trust public inquiry and its findings have shown that we have a moral duty to enable our beneficiaries and their families and carers to put our services under scrutiny. We have reviewed our policies and procedures and we are confident that they facilitate whistleblowing and give them the tools to openly judge our performance and to hold us accountable.

Livability Annual Report & Accounts 2013

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.

Auditors th On 28 March 2013, PKF (UK) LLP merged its business with BDO LLP and accordingly the Board th appointed BDO LLP as external auditor on 14 May 2013. A resolution to re-appoint BDO LLP as our external auditors will be proposed at the next Annual General Meeting.

Livability Annual Report & Accounts 2013

RESULTS FOR THE YEAR AND RESERVES Income and Expenditure Account The operating environment for Livability continues to be extremely challenging, with pressure on both statutory and voluntary income arising from public sector spending cuts and the financial crisis. The charity sector has seen a significant fall in the voluntary sector’s income, with data for 2008/09 showing a fall of 3.6%, amounting to £1.4bn in 2011 prices, with small increases of 0.5% and 0.1% in 2009/10 and 2010/11 respectively (source: Office for National Statistics / Charity Commission). This real-terms contraction in income across the charity sector is compounded by an on-going reduction in public spending. The UK voluntary sector is estimated to lose £1.2bn in public funding a year by 2015/16, a fall of 9.4% (source: National Council for Voluntary Organisations) Livability’s income is substantially derived from Government and Local Authority contracts through most of its care and education business streams. The pressure on commissioners to reduce fees and the range and scope of services has continued in 2012/13. However, despite the pressure from the austerity programme, Livability’s financial performance for the year remained strong, with operating results ahead of last year. Incoming resources, at £40.3m, were slightly ahead of the prior year performance of £39.4m, despite the challenging environment. Net income before impairment increased to £1.9m in 2013 from £1.2m in 2011/12. This is mainly due to a one-off capital grant received in the year, amounting to £769k, by West Essex PCT. Expenditure overall has seen a slight increase in the year but broadly remained stable. The continued maintenance of stable operating income and margins, despite the challenging economic and funding environment, represents a strong financial performance by the Trustee Board and Directors’ Management Team. A major focus of the Trustees and Directors’ Management Team during 2013/14 will continue to be on maintaining and improving operating margins. Operating cash flow remained positive at £1.3m, against the prior year performance of £0.5m. The main movements in cash flow arose from the purchase of fixed assets of £2.4m. Education services maintained income levels at £16.6m for the year, compared to £16.4m for 2011/12. Student numbers at Hinwick Hall College increased from 38 at the start of the academic st year to 43 at 31 March 2013. However, the proportion of day provision students increased such that income for the year fell to £3.9m. This was not sufficient to offset direct operating costs of £4.1m and the college made a deficit for the year of £0.2m. Hinwick remains on a transformation path and the result for 2012/13 was a significant improvement on the operating deficit for 2011/12. Nash College retained student numbers at 87, a balance of 37 residential to 50 day students, with an income increase of £0.5m from £6.9m in 2011/12 to £7.4m in 2012/13 and generated a surplus of £1.0m (2012: £1.0m). The Victoria Education Centre and Sports College student numbers remained similar, at 97 at March 2013, an increase of two from the prior year. This resulted in income in line with the prior year, at £5.2m, and a small surplus of £0.1m (2012: £0.2m). Overall costs in the education services remained in line with prior year, at £17.3m (2012: £17.2m), as tight control of expenditure remained in place. The funding mechanism is changing with effect from the 2013/14 academic year. The full impact of these changes is not yet understood and a detailed review of the business models in the education services is in progress, to enable mitigation action to be taken if funding changes are adverse. Actions are also in place to increase student numbers and to develop new lines of service from the education establishments, as part of a wider move to create more closely integrated service delivery models across Livability and to improve efficiency.

Livability Annual Report & Accounts 2013

Residential and Community Services also saw only a small increase in income, to £18.3m in 2012/13 from £18.0m in 2011/12, but against a background of sharp falls in spending by commissioners. The maintenance of income levels represents a strong performance as funders continue to tighten budgets for the provision of health and care services for the disabled and are taking longer to confirm places in homes, leading to an increase in void rates and lost income. Expenditure in the care services decreased to £18.4m in 2012/13 from £18.5m in 2011/12. Central support costs have been kept under control, with a reduction to £3.5m in 2012/13 from £3.6m in 2011/12, and continue to be kept under scrutiny. Action is being taken to review each support function’s cost and to identify opportunities for rationalising support services. Livability’s other businesses continued to perform in line with prior years, with a new business providing Enterprise Agency services in North London growing its client base under the New Enterprise Allowance scheme from the Department of Work and Pensions (DWP). The Enterprise Agency’s work will grow further during 2013/14, following the award of a new grant from the DWP for the management of an eight-month programme, from March 2013. The long-term future for enterprise agency work remains unclear but there remains strong interest in the service from funders, donors and other commissioners. The Icanho brain injury rehabilitation service continues to operate in line with prior years, achieving a break-even position. Livability’s spinal injuries service overseas continues to deliver a significant social impact in South Asia, with a small cost overall to the organisation of £0.1m as sources of funding continue to be pursued. The overseas work was recognised formally by winning the disability category at the 2013 Annual Charity Awards. Community engagement continues to be a core area for Livability and is central to the organisation’s ethos and Christian service providing education and training for churches on a wide range of disability, health and wellbeing and Community Mission projects. The costs of running the team totalled £0.5m in 2013, offset partly by the receipt of a legacy for the work. The team continues to build its client base and income streams, as well as delivering a significant social impact. Continuing active support from donors has been a significant feature of the organisation’s mission, despite economic pressures and a background of falling donations across the UK. Voluntary income from donations and gifts for the year increased by £0.6m, from £4.2m in 2012 to £4.8m in 2013, which represents a significant achievement. The main individual item of voluntary income during the year was donations to capital projects of £0.5m, primarily the “Sparkle” appeal, which has raised a total of £2.8m towards the capital cost of a new hydrotherapy pool at the Victoria Education Centre and Sports College at Poole in Dorset. Legacies continue to be a significant way that donors give to Livability with just over £1.4m being given in 2013, compared with £1.6m in 2012. The fundraising team have managed their costs in the year through reductions in staffing and other expenditure; the small increase in costs over the year includes costs of increasing the donor base such as direct mailing. Key balance sheet movements The principal movements in the balance sheet are additions to fixed assets, which have increased the value of assets by £2.6m to £52.6m. The main additions have been the acquisitions of property at Keefields Close, funded by a grant from the PCT of £769k, a lift and hydrotherapy pool at VEC totalling £994k, and the completion of new rooms and redevelopment at John Grooms Court of £209k. There were two disposals of properties during the year, at Faversham Road and Churchill Close, which reduced the value of property assets by £296k and led to a small loss on disposal of £8k.

Livability Annual Report & Accounts 2013

Cash reductions mainly arose from expenditure on the hydrotherapy pool and other capital expenditure. The organisation controls a trust, Kingsley Hall, Dagenham, through a charitable company, Kingsley Hall Church and Community Centre, which owns the land and buildings at Kingsley Hall in Dagenham, together with two other residential rental properties. Following discussion with professional advisors, the Trustees have taken the view that the consolidated accounts would properly reflect the organisation’s asset base by including these at valuation. This adjustment has increased the value of fixed assets by £1m and has been treated as a prior year adjustment (see notes 1, 8 and 10). A significant cash outlay continues to be contributions towards deficit reduction plans for two closed defined-benefit pension schemes, the total cash contribution for the year being £1.4m. 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. The increase of £1.0m in the reported value of pension scheme deficits under FRS17, at £11.1m (2012: £10.1m), arises principally from assumption changes in member longevity and valuation changes, increasing the net deficit by £2.0m, less contributions to the scheme of £0.9m. Bank loans have been reduced through the payment of regular instalments. There were no other material changes in working capital throughout the year, with the organisation carefully managing its cash flows to ensure sufficient liquidity to continue trading at the same levels and volumes. Changes proposed to the funding and payment mechanism for post-16 education services for special needs students, from the 2013 academic year, will put pressure on cash flows and increase the pressure on working capital management. 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 2011/12. Livability’s cash position at the end of the year remained strong at £7.6m, although a fall of £1.2m from the 2012 balance of £8.8m as a result of capital investment exceeding operating cash inflows. However, almost £4m of the cash balances is represented by restricted funds which will be invested in new facilities over the next 12 to 18 months. Reserves The Trustees consider a range of between five and ten weeks’ expenditure to be an appropriate level of general reserves for Livability to hold. This allows for flexibility to cover short-term risks and uncertainties faced by Livability, as well as the volatility of voluntary income, the 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 General Fund expenditure. At 31 March 2013 this had fallen to £4.0m, equivalent to 5.6 weeks of unrestricted General Fund expenditure. The principal reason for the fall in the General Fund between March 2012 and March 2013 was the excess of capital expenditure from unrestricted funds of £0.9m and pension fund payments of £1.4m over the net General Fund surplus of £1.8m. The Property, Revaluation and Equipment Funds respectively represent the total amount (at cost or valuation, less depreciation and direct borrowings drawn and undrawn and related property liabilities) invested in freehold and leasehold properties and fixtures, fittings and motor vehicles used for the functional purposes of the Charity.

Livability Annual Report & Accounts 2013

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. These 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. 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 can be converted to cash quickly; and 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 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-bycase basis as to whether to retain or dispose of any donated investments.

Livability Annual Report & Accounts 2013

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 24th July 2013 and signed on its behalf by:

M P A Langworth Company Secretary

Livability Annual Report & Accounts 2013

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LIVABILITY We have audited the financial statements of Livability for the year ended 31 March 2013 which comprise the consolidated statement of financial activities, the group and charity balance sheets, the consolidated cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate. Opinion on financial statements In our opinion the financial statements: •

• •

give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2013, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Livability Annual Report & Accounts 2013

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: • • • •

the parent charitable company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.

Ian Mathieson, Senior Statutory Auditor for and on behalf of BDO LLP, Statutory Auditor London United Kingdom Date: 24th July 2013

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Livability Annual Report & Accounts 2013

Consolidated Statement of Financial Activities for the year ended 31 March 2013 Company Registration Number 5967087 (Incorporating an Income and Expenditure Account)

Incoming resources Incoming resources from generated funds Voluntary income Investment income Incoming resources from charitable activities Income from services 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 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 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 losses on defined benefit pension schemes Net movement in funds

Unrestricted Funds

Restricted Funds

Permanent Endowment Funds

Total Funds

2013

2012

Note

£’000

2 3

2,751 113

2,057 17

– 33

4,808 163

4,220 250

35,154

111

–

35,265

34,578

2 2

– 44 38,062

– – 2,185

52 – 85

52 44 40,332

47 333 39,428

4 4

1,356 35,820

56 638

– –

1,412 36,458

1,310 36,472

114 – 320

– – –

– 86 –

114 86 320

24 84 319

37,610

694

38,390

38,209

452

1,491

(1)

1,942

1,219

974

(974)

–

1,426 (130)

517 –

(1) –

1,942 (130)

1,219 (2,114)

1,296

517

(1)

1,812

(895)

440

1,034

(1,234)

4 4, 9 4

594

–

182

(7)

(1,986) (13)

– 517

– 538

(1,986) 1,042

(4,287) (6,423)

33,464

4,947

4,451

42,862

49,285

–

1,505

–

1,505

–

33,451

6,969

4,989

45,409

42,862

Reconciliation of funds Balance at 1 April 2012 Prior year adjustment Balance at 31 March 2013

Total resources expended for the year including impairment were £38,520,000 (2012: £40,323,000) (see Note 4). Profit disclosed in accordance with the Companies Act 2006 was £1,812,000 (2012: loss of £895,000). 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 2013

Group and Charity Balance Sheets at 31 March 2013 Company Registration Number 5967087 Note

Group 2013

Group 2012

Charity 2013

Charity 2012

£’000

(restated)* Fixed assets Tangible assets

49,382

46,921

48,330

45,508

Investments Total fixed assets

3,257 52,639

3,052 49,973

2,720 51,050

2,517 48,025

11 12

35 2,132 7,661 9,828

34 1,912 8,851 10,797

34 2,146 7,600 9,780

34 1,921 8,778 10,733

13 14

(4,210) – (4,210)

(3,877) (76) (3,953)

(4,288) – (4,288)

(4,698) (76) (4,774)

5,618

6,844

5,492

5,959

58,257

56,817

56,542

53,984

Current assets Stock 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

13 14

(1,704) – (1,704)

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

(1,704) – (1,704)

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

Defined benefit pension liability

(11,144)

(10,113)

(11,144)

(10,113)

45,409

44,367

43,694

41,534

Net assets Funds Unrestricted Funds: Designated Funds

40,635

39,176

40,566

38,750

General Funds

3,960

4,401

3,951

3,693

Pension scheme deficit

(11,144)

(10,113)

(11,144)

(10,113)

33,451

33,464

33,373

32,330

Total Unrestricted Funds

Restricted Funds

6,969

6,452

5,360

4,778

Permanent Endowment Funds

4,989

4,451

4,961

4,426

45,409

44,367

43,694

41,534

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 24 July 2013 and signed on its behalf by:

Caroline Armitage Chair of Trustees

Livability Annual Report & Accounts 2013

Consolidated Cash Flow Statement for the year ended 31 March 2013 Note

2013 £’000

2012 £’000

Net cash inflow from operating activities

1,307

550

Returns on investment and servicing of finance

113

Purchase and sale of fixed assets

(2,372)

(1,496)

(997)

(833)

(193)

(81)

(1,190)

(914)

Net cash outflow before financing Financing

Decrease in cash in the year

Reconciliation of net cash flow to movement in net funds

2013

2012

£’000

(1,190)

(914)

193

(997)

(812)

Net funds at 1 April 2012

6,848

7,660

Net funds at 31 March 2013

5,851

6,848

2013

2012

£’000

1,812

(895)

Depreciation – fixed assets

895

863

Impairment of fixed assets

130

2,114

(333)

2,845

1,749

(108)

(103)

(53)

(147)

Interest payable

100

Increase in stock

(1)

(2)

(Increase) / decrease in debtors

(101)

140

Decrease in creditors & provisions

(413)

(218)

Decrease in pension deficit

(955)

(969)

1,307

550

Decrease in cash in the year Cash outflow from financing Non-capital movement in loans 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

Loss / (profit) on disposal of fixed assets Operating adjustments Net investment income Interest receivable

Net cash inflow from operating activities

Livability Annual Report & Accounts 2013

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

2013

2012

£’000 108

£’000 104

130

(93)

(121)

113

Purchase and sale of fixed assets 2013

2012

£’000 (2,518)(

£’000 (2,640)

Sale of tangible fixed assets

169

1,153

Purchase of fixed asset investments

(23)

(9)

(2,372)

(1,496)

2013

2012

£’000 –

£’000 500

Repayment of bank loan

(193)

(581)

Net cash outflow from financing

(193)

(81)

Purchase of tangible fixed assets

Net cash outflow from purchase and sale of fixed assets 4.

Financing

New loans drawn

Reconciliation of net cash flow to movement in funds

At 1 April 2012

Cash flow

At 31 March 2013

£’000

Cash at bank and in hand

1,965

(447)

1,518

Short term deposits

5,886

257

6,143

Cash as defined by FRS 1

7,851

(190)

7,661

Cash investments

1,000

(1,000)

Cash disclosed in the balance sheet

8,851

(1,190)

7,661

Bank loans

(2,003)

193

(1,810)

Net funds

6,848

(997)

5,851

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013

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, Livability Icanho Limited, Kingsley Hall Church and Community Centre and Livability Ireland. 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 and balance sheet include those of various trusts where Livability or a member of the consolidated group is able exercise control over the trust. The results and balance sheets of these trusts are shown under restricted funds or permanent endowment funds in the Accounts according to the nature of the trust. 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.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 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 disclosed in the notes to 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. 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 20 to the Financial Statements.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 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 2013. 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 (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.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

Tangible Assets Fixed assets are capitalised when their cost 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

Nil

17%

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. Assets in the course of construction but not yet ready for use are capitalised as costs are incurred. On start of use of the asset, it is reclassified to the appropriate category of asset and depreciated accordingly. 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

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 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 adjusted to include the value of the assets of Kingsley Hall, Dagenham, which has been included in the consolidation of the Livability Group accounts for the first time at 31 March 2013. The consolidation of the trust has increased opening values of tangible fixed assets by £985,000, of investment properties by £520,000 and of restricted funds by £1,505,000. See notes 8, 10 and 15 for details.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

INCOME FROM CHARITABLE ACTIVITIES

The following is analysed according to the different services provided by the Charity: 2013 Unrestricted Funds

2013 Restricted Funds

2013 Total Funds

2012 Total Funds

£’000

2013 Permanent Endowment Funds £’000

£’000

Education

16,476

104

–

16,580

16,389

Residential & Community Services

18,281

–

18,288

17,979

134

–

134

263

–

263

153

35,154

111

–

35,265

34,578

Education

632

–

714

525

Residential & Community Services

1,135

–

1,152

560

–

1,562

–

1,562

1,481

1,669

1,767

–

3,436

2,609

Education

–

188

–

188

Residential & Community Services

–

102

–

102

–

1,007

–

1,007

1,519

1,082

290

–

1,372

1,611

2,751

2,057

–

4,808

4,220

–

113

163

250

–

333

157

259

630

38,062

2,185

40,332

39,428

Income from services

Community Mission & Link Churches Other

Voluntary income Donations & Gifts

Community Mission & Link Churches General fundraising for Livability operations

Legacies

Community Mission & Link Churches General fundraising for Livability operations

Total voluntary income Other income Trust income Investment income (Note 3) Profit on disposal of fixed assets 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 (2012: £0.3m) and residuary legacies of £0.9m (2012: £0.9m), none of which are recognised in income, in accordance with the accounting policy for incoming resources. During the year, the Charity received restricted income of £28,252 from BIG lottery fund and £24,000 from City Bridge Trust in support of Livability Lifestyle Choices London.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

INVESTMENT INCOME 2013 Unrestricted £’000

2013 Restricted £’000

2013 Endowment £’000

2013 Total £’000

2012 Total £’000

Listed investments

–

Bank interest / investments

–

143

Rent receivable

–

113

163

250

TOTAL RESOURCES EXPENDED

2013 Unrestricted Funds

2013 Restricted Funds

2013 Total Funds

2012 Total Funds

£’000

2013 Permanent Endowment Funds £’000

£’000

Education

15,846

159

–

16,005

15,884

Residential & Community Services

16,333

406

–

16,739

16,773

Community Mission & Link Churches

508

–

581

495

Other

143

–

143

184

32,830

638

–

33,468

33,336

Education

1,260

–

1,260

1,322

Residential & Community Services

1,686

–

1,686

1,769

–

2,990

–

2,990

3,136

35,820

638

–

36,458

36,472

Other costs

114

–

114

Fundraising

1,356

–

1,412

1,310

320

–

320

319

1,790

–

1,846

1,653

–

37,610

694

38,390

38,209

130

–

130

2,114

37,740

694

38,520

40,323

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

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

4. TOTAL RESOURCES EXPENDED (cont’d) Allocation of support costs Senior Management

Finance

Corporate Support

Marketing

£’000 84 94

£’000 314 461

£’000 451 667

£’000 292 340

£’000 119 124

Total Directorate Support £’000 1,260 1,686

18 17 215

64 100 948

64 147 1,358

9 56 699

2 – 247

157 320 3,467

Education Residential & Community Services Community Mission & Link Churches Fundraising Governance Total cost 2013 Total cost 2012

3,610

2013 £’000

2012 £’000

252 26 16 26 320

260 46 8 5 319

2013 £’000

2012 £’000

Depreciation

895

863

Impairment of fixed assets Loss on disposal of fixed assets Auditors remuneration: audit current year other services Interest payable

130

2,114 –

30 1 93

30 1 100

448 27

388 81

2013 £’000

2012 £’000

577 284 157 394

577 272 155 306

1,412

1,310

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:

Operating lease charges: land and buildings other equipment 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

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

OPERATING LEASES

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

Land and buildings Other equipment

Within 1 year £’000 101 26 127

2013 Between 2 - 5 years £’000 103 43 146

After 5 years £’000 2 – 2

Within 1 year £’000 169 26 195

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

After 5 years £’000 2 – 2

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), Kingsley Hall Church & Community Centre (KHCCC) 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: 2013 JG

2013 TSS

2013 LIL

2013 LCSL

2013 KHCCC

2013 LI

£'000

£’000

Turnover or incoming resources

–

825

–

212

269

Operating profit or net incoming / (outgoing) resources Transfer to the Charity

–

(26)

(60)

(348)

(679)

–

114

93 – 93

Aggregate assets Aggregate liabilities

–

(22)

(18)

Aggregate net assets

–

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

EMPLOYEES

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

Group 2013 FTE

Group 2012 FTE

1,071 50 17 52 17 1,207

1,054 49 19 58 15 1,195

Group 2013 £’000

Group 2012 £’000

24,746 1,676 1,619 28,041

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

Wages and salaries Social security costs Pension & other costs

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 2013 No. of employees

Group 2012 No. of employees

£60,001 - £70,000

£70,001 - £80,000

£80,001 - £90,000

£90,001 - £100,000

£100,001 - £110,000

–

The number of higher earners in 2013 also includes termination benefits paid during the year. Employers’ pension contributions made on behalf of 10 of these employees totalled £89,226 in the year (2012: 8 employees £62,729). Trustees receive no remuneration in respect of their services as Trustees of Livability. Travel and other out-of-pocket expenses were reimbursed to 8 Trustees in the year, to the value of £2,963 and costs of providing training to Trustees in relation to their duties were £264 (2012: 5 Trustees to the value of £1,793; training costs of £2,418). Livability paid £6,449 in the year (2012: £6,448) to provide indemnity insurance for the Trustees.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 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

Assets in the course of construction £’000

Total £’000

49,234

364

566

8,452

274

58,890

985

–

985

50,219

364

566

8,452

Additions

1,082

–

661

1,005

2,748

Revaluation

1,134

–

1,134

(296)

–

(1,257)

–

(1,553)

52,139

364

566

7,856

1,279

62,204

5,536

304

7,079

–

12,954

Charged in year

306

559

–

895

Impairment

130

–

130

Revaluation

100

–

100

(9)

–

(1,248)

–

(1,257)

6,063

330

6,390

–

12,822

At 31 March 2013

46,076

325

236

1,466

1,279

49,382

At 31 March 2012

44,683

329

262

1,373

274

46,921

Cost or valuation At 1 April 2012 Prior year adjustment At 1 April 2012 restated

Disposals / retirement At 31 March 2013

274 59,875

Depreciation At 1 April 2012

Disposals / retirement At 31 March 2013

Net book value

The prior year adjustment arises from the first-time consolidation of Kingsley Hall, Dagenham into the Livability Group accounts (see note 9) and the inclusion of the assets of the Trust in the Group balance sheet. Freehold land and buildings with a value of £1,217,000 (2012: £448,000) are subject to covenants surrounding their use that would crystallise liabilities at these values in the event of any disposal or change of use of the properties.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 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

48,526

364

481

Assets in the course of construction £’000

Total ‘£000

8,404

274

58,049

661

1,005

2,748

Cost or valuation At 1 April 2012 Additions

1,082

–

Revaluation

1,134

–

1,134

707

–

707

(296)

–

(1,257)

–

(1,553)

Transfer from predecessor charity Disposals / retirement At 31 March 2013

51,153

364

481

7,808

1,279

61,085

5,179

272

7,055

–

12,541

Charged in year

306

554

–

882

Impairment

130

–

130

Revaluation

100

–

100

Transfer from predecessor charity

359

–

(9)

–

(1,248)

–

(1,257)

6,065

290

6,361

–

12,755

At 31 March 2013

45,088

325

191

1,447

1,279

48,330

At 31 March 2012

43,347

329

209

1,349

274

45,508

Depreciation At 1 April 2012

Disposals / retirement

At 31 March 2013

– 359

Net book value

Assets are transferred from Livability’s predecessor charities under the terms of the merger agreement between John Grooms and the Shaftesbury Society, when the legal restrictions on the transfer are removed. Transfers in the year related to one property. One asset has been retained in Livability’s predecessor charity, John Grooms, until the legal requirements for transfer are resolved.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

FIXED ASSETS (cont’d) The Group’s freehold land & buildings comprise: Unrestricted Funds

Restricted Funds

Permanent Endowment Funds

Total

£’000

44,923

240

4,071

49,234

–

985

–

985

44,923

1,225

4,071

50,219

Additions

313

769

–

1,082

Revaluation

694

–

440

1,134

Disposals / retirement

(296)

–

(296)

Transfer between funds

(452)

452

–

45,182

2,446

4,511

52,139

5,377

155

5,536

Charged in year

298

–

306

Impairment

130

–

130

Revaluation

100

–

100

Disposals / retirement

(9)

–

(9)

Transfer between funds

(4)

–

5,892

163

6,063

Cost or valuation At 1 April 2012 Prior year adjustment At 1 April 2012 restated

At 31 March 2013

Depreciation At 1 April 2012

At 31 March 2013

Net book value At 31 March 2013

39,290

2,438

4,348

46,076

At 31 March 2012

39,546

1,221

3,916

44,683

All of the tangible assets shown above are used for direct charitable purposes.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

FIXED ASSETS (cont’d)

Fixed assets include properties revalued as disclosed in the accounting policies. revaluation amount of freehold property assets is shown below.

The cost and

Total £’000 37,716

Cost of assets revalued Assets under uniting directions

4,511

Revaluation

9,912

Market value at 31 March 2013

52,139

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 2013. A review of these valuations, along with the carrying values of properties not subject to professional revaluation, was undertaken at 31 March 2013 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 as 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). Kingsley Hall is included because Livability is the sole member of the corporate trustee, Kingsley Hall Church and Community Centre. Livability also acts as a holding Trustee of Kilburn Evangelical Free Church and Kingsley Hall and custodian Trustee of the David Livingstone Charity for Handicapped Young People. The funds of Kilburn Evangelical Free Church and David Livingstone Charity for Handicapped Young People 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

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

TRUSTS (cont’d)

Trust

Commonly known as

Objects

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

Kingsley Hall, Dagenham

KHD

To promote local mission purposes and the religious education of children and young people To promote social, educational and religious nature for the benefit of local residents

A summary of the financial results of each trust is laid out below:

Funds b/fwd

Income

Expenses

Unrealised gains

Funds c/fwd

£’000

Chiswick Highway Marsh St. Coney Hill Will Welcome SHBEF Shaftesbury Development Beddington Platt Total Endowed Trusts

548 1,852 301 26 684 23 457 30 530 4,451

– 76 – – 1 1 7 – – 85

(1) (85) – – – – – – – (86)

– 440 – – 65 2 27 5 – 539

547 2,283 301 26 750 26 491 35 530 4,989

Kingsley Hall, Dagenham (restated) Total Restricted Trusts

1,505 1,505

– _

1,505 1,505

5,956

(86)

539

6,494

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

10.

INVESTMENTS Group 2013 £’000

Group 2012 £’000

Charity 2013 £’000

Charity 2012 £’000

At 1 April Additions Revaluations

822 23 91

820 9 (7)

807 23 89

805 9 (7)

At 31 March

936

822

919

807

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

2 758 67 108 1

5 669 64 83 1

936

822

Group 2013 £'000

Group 2012 £'000

Charity 2013 £'000

Charity 2012 £’000

1,690

1,840

1,690

1,840

520

2,210

2,360

1,690

1,840

(150)

Securities market value

Investment properties At 1 April Prior Year adjustment At 1 April (restated) Disposals

–

Revaluations

–

At 31 March

2,301

2,210

1,781

1,690

935

821

918

806

3,257

3,052

2,720

2,517

Other investments Listed investments Unlisted investments Mortgage loan Total investments

The prior year adjustment arises from the first time consolidation of Kingsley Hall, Dagenham in the Livability Group accounts (see note 9) and the inclusion of the assets of the Trust in the Group balance sheet.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

10.

INVESTMENTS (cont’d)

Analysis of movement on investments

Group 2013 £’000

At 1 April

2,532 520

Prior year adjustment At 1 April (restated) Additions Disposals Revaluation gains At 31 March

Group 2012

Charity 2013

Charity 2012

£'000

£’000

2,680

2,517

2,665

520

3,052 23 -

3,200

9 (150)

2,517 23 -

2,665 9 (150)

182

(7)

180

(7)

3,257

3,052

2,720

2,517

Of the investments above, the cost of investment properties is £1,380,000 (2012: £960,000), while the cost of listed investments is £459,000 (2012: £445,000) 11. STOCKS Group 2013 £’000

Group 2012 £’000

Charity 2013 £’000

Charity 2012 £’000

Plants

Food

Bar

12.

DEBTORS Group 2013 £’000

Group 2012 £’000

Charity 2013 £’000

Charity 2012 £’000

1,587

1,112

1,586

1,166

Other debtors

217

342

215

280

Prepayments and accrued income

302

424

302

424

–

2,132

1,912

2,146

1,921

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

Short-term loans Amounts due from subsidiary undertakings

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

13.

CREDITORS

AMOUNTS FALLING DUE WITHIN ONE YEAR:

Group 2013 £’000

Group 2012 £’000

Charity 2013 £’000

Charity 2012 £’000

Trade creditors

1,465

1,055

1,450

1,038

Accruals and deferred income

1,445

1,187

1,445

1,183

Taxes and social security

611

615

611

615

Other creditors

427

744

402

744

Bank loans

177

191

177

191

–

Amount due to group entities

–

109

832

Trust loans

4,210

3,877

4,288

4,698

Group 2013 £’000

Group 2012 £’000

Charity 2013 £’000

Charity 2012 £’000

1,633

1,812

1,633

1,812

1,704

1,889

1,704

1,889

Amount due to a Trust Other loans

FALLING DUE AFTER MORE THAN ONE YEAR: Bank loans Deferred income

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

13.

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: 2013 £’000

2012 £’000

Within 1 year

177

191

1-2 years

171

177

2-5 years

503

507

Due after 5 years

959

1,128

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

14.

PROVISIONS Group & Charity

Site equity £’000

Part-time workers’ pension claims liability £’000

Total £’000

(76)

Falling due within one year: At 1 April 2012 Released during the year At 31 March 2013

–

448

–

448

(448)

–

(448)

–

Falling due after one year: At 1 April 2012 Released during the year At 31 March 2013

Provisions for site equity were previously made where other agencies or individuals hold equity stakes in the Charity’s property. The Charity has released this provision as the possibility of repayment to third parties is considered to be remote. The Charity has previously provided for claims from part-time workers for back-dated pension costs. This has now been released as no claims have been received by the Charity since 2007 and therefore the possibility of further payments being required is considered to be remote.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

15.

CONSOLIDATED FUNDS Balance at 1 April 2012 (restated)

Incoming resources

Outgoing resources

Transfers

Unrealised gains and (losses)

Balance at 31 March 2013

£’000

28,485

–

(452)

1,083

–

29,116

Revaluation Fund

9,318

–

594

9,912

Equipment Fund

1,373

–

(559)

793

–

1,607

39,176

–

(1,011)

1,876

594

40,635

4,401

38,062

(36,297)

(2,289)

3,960

43,577

38,062

(37,308)

(413)

677

44,595

(10,113)

–

(432)

1,387

(1,986)

(11,144)

33,464

38,062

(37,740)

974

(1,309)

33,451

3,631

836

(137)

(1,442)

–

2,888

Residential & Community Services Community Mission

915

1,144

(242)

492

–

2,309

108

–

(73)

–

Overseas

149

104

(164)

–

Giving by Lending

–

F Clements Trust Fund

–

Faith Training Centre

–

Kingsley Hall Church & Community Centre

100

(78)

(24)

–

Kingsley Hall, Dagenham (restated)

1,505

–

1,505

Total Restricted Funds

6,452

2,185

(694)

(974)

–

6,969

Total Permanent Endowment Funds (see note 9)

4,451

(86)

–

539

4,989

44,367

40,332

(38,520)

–

(770)

45,409

Unrestricted Funds Property Fund

Total Designated Funds General Funds Unrestricted Funds before Pension Liability Pension Reserve Total Unrestricted Funds

Restricted Funds Education

Total Funds

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

15.

CONSOLIDATED FUNDS (cont’d)

Name of fund

Description, nature and purpose of Fund

Unrestricted Funds Property Fund

Represents the total amount (at cost less depreciation, impairment, unamortised government grants, mortgages and secured bank loans) invested in freehold and leasehold properties used for the functional purposes of the Charity

Revaluation Fund

Represents the net increase above cost in the value of the Charity’s property assets

Equipment Fund

Represents the total amount at cost or valuation, less depreciation and unamortised government grants and direct borrowing, invested in fixtures and fittings and motor vehicles used for the functional purposes of the Charity

General Funds

Represents undesignated monies retained to provide the working capital to enable the Charity to carry outs its activities

Pension Reserve

Represents the deficit in the Charity’s defined benefit pension schemes, as calculated under FRS17

Restricted Funds Education

Various funds received to support individual educational establishments

Residential & Community Services Giving by Lending

Various funds received to support individual adult support establishments and holidays, lifestyle and other operations Monies received from individuals

F Clements Trust Fund Community Mission

Income from this fund is to support the Charity’s general activities

Faith Training Centre

To support the work of the Community Mission team and the Link Churches To support the work of the Faith Horticultural Centre

Overseas

Various funds to support our overseas work

Kingsley Hall Church & Community Centre Kingsley Hall, Dagenham

To support the work of Kingsley Hall Community Centre To support the work of Kingsley Hall Community Centre

Funds balances include £1,062,000 of investment asset revaluation reserve (2012: £880,000).

16.

ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS General Designated

Pension

Restricted Permanent Endowment

Total Funds

£’000

–

42,596

–

2,438

4,348

49,382

Investments

1,843

–

520

894

3,257

Cash

3,650

–

4,011

–

7,661

Other current assets

2,167

–

2,167

(3,700)

(257)

–

(253)

(4,210)

–

(1,704)

(11,144)

–

(12,848)

3,960

40,635

(11,144)

6,969

4,989

45,409

Tangible fixed assets

Current liabilities Long-term liabilities Funds at 31 March 2013

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

17.

RELATED PARTY TRANSACTIONS

There have been no related party transactions in the year (2012: Nil).

18.

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 2013, the individual results of Livability were: 2013 £’000

2012 £’000

39,189 (37,282) (772)

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

Total surplus / (deficit)

1,135

(5,261)

Transfers from predecessor charities

1,025

Net increase / (decrease) in funds

2,160

(5,257)

Income Expenditure Unrealised losses

19.

CAPITAL COMMITMENTS

There were £1,902,000 of outstanding capital commitments at 31 March 2013 (2012: £284,000), of which £1,823,000 is funded from restricted funds for the hydrotherapy pool. Capital expenditure totalling £142,000 had been approved but not contracted for (2012: £71,000).

20.

PENSIONS - Group and Charity

The Charity contributes to five staff pension schemes: •

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

•

The Livability Final Salary Pension Scheme (formerly “The Shaftesbury Society Pension Scheme”), a defined benefit scheme (“Livability DB 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 (a multi-employer defined benefit scheme). 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 2013 at £731,000. There is no intention to withdraw from the scheme and therefore this liability is not recognised in the Accounts at 31 March 2013.

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

20.

PENSIONS (cont’d)

While the Livability DB 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. The cost of employer contributions to the Aegon plan and the Teachers’ Pension Scheme was £1,045,000 in the year (2012: £1,174,000). 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 and increasing expected longevity of scheme members. 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 Livability DB scheme was made as at 30 September 2009 and was updated to 31 March 2013 by an independent qualified actuary, in accordance with FRS 17. The recovery contribution made to the Livability DB scheme by the Charity in the year was £704,000, as set out in the agreed deficit recovery plan, plus a contribution for 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 2012 and updated to 31 March 2013 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 £176,000. 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. The principal assumptions used by the actuaries for the purposes of the FRS 17 valuation were (in nominal terms):

Discount rate Rate of increase in salaries Inflation assumption CPI RPI Pension increases: The Livability Final Salary Pension Scheme Deferred pensions of RPI or 5% pa if less Pensions in payment of CPI or 5% pa if less Pensions in payment of CPI or 3% pa if less Pensions in payment of CPI or 2.5% pa if less The John Grooms Pension and Assurance Scheme Pension earned before 6 April 1994 GMP earned after 5 April 1994 Pension in excess of GMP earned after 5 April 1994

At 31 March 2013 4.40% 3.30% 2.40% 3.30%

At 31 March 2012 4.60% 3.10% 2.20% 3.10%

3.30% 2.40% 2.20% 2.00%

3.10% 2.20% 2.00% 1.80%

5.00% 2.20% 3.30%

5.00% 2.00% 3.00%

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

20.

PENSIONS (cont’d)

Assumed life expectancies in years on retirement at age 65 are: Retiring today Males 22.0 – 22.1 Females 24.2 – 24.3 Retiring in 20 years’ time Males 23.7 –23.8 Females 26.2 –26.2

21.1 – 21.5 23.7 – 24.0 23.1 – 23.4 25.5 – 25.8

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. The assets in the schemes and the expected rates of return were:

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

Long-term rate of return expected at 31 March 2013

Value at 31 March 2013 £’000

Long-term rate of return expected at 31 March 2012

Value at 31 March 2012 £’000

7.00% - 7.30% 2.95% - 4.20% 7.30% 0.50%

16,246 14,061 1,226 195 31,728

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

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

The actual return on assets over the period was

3,683

2,108

(42,872) 31,728 (11,144)

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

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

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 loss Benefits paid Liabilities at end of year

2013 £’000

2012 £’000

38,334 305 1,734 4,062 (1,563) 42,872

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

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

2013 £’000

2012 £’000

28,221 1,607 2,076 1,387 (1,563) 31,728

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

Livability Annual Report & Accounts 2013 Notes to the consolidated financial statements for the year ended 31 March 2013 cont’d

20.

PENSIONS (cont’d)

Recognised gains and losses in the Statement of Financial Activities

Total actuarial loss

2013 £’000

2012 £’000

(1,986)

(4,287)

At 31 March 2013

At 31 March 2012

At 31 March 2011

At 31 March 2010

At 31 March 2009

£’000 (42,872)

£’000 (38,334)

£’000 (33,188)

£’000 (34,733)

£’000 (26,382)

31,728

28,221

26,393

24,608

19,108

(11,144)

(10,113)

(6,795)

(10,125)

(7,274)

(535)

291

(1,558)

(384)

(1)%

(5)%

(1)%

(3,527)

(4,945)

3,896

(7,102)

1,775

Changes in assumptions as a percentage of scheme liabilities

(8)%

(13)%

12%

(20)%

Experience adjustments arising on scheme assets

2,076

367

457

4,509

(5,711)

18%

(30)%

History of scheme assets, obligations and experience adjustments

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

20.

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 2014 are expected to be:

The Livability Final Salary Pension Scheme The Pensions Trust Growth Plan John Grooms Pension and Assurance Scheme

Year ended 31 March 2013 £’000

Year ended 31 March 2012 £’000

305

278

(1,607)

(1,741)

1,734

1,868

432

405 Year ending 31 March 2014 £’000 811 60 565 1,436

Livability Annual Report & Accounts 2013

We would also like to thank the organisations below for their generous contribution towards our work, those organisations who wished to remain anonymous, the families of those who remembered Livability in their will and the thousands of generous individuals whose support makes such a huge difference to our work: Andrew Anderson Trust Audrey Earle Charitable Trust Awareness Fund Bedford Borough Council Big Lottery Fund Bournemouth Collegiate Preparatory School C W White Discretionary Trust D G Albright Charitable Trust Dudley and Geoffrey Cox Charitable Trust Edith Murphy Foundation Eveson Charitable Trust Friends of Livability Brackley Friends of Livability Dolphin Court Friends of Livability John Grooms Court Friends of Livability Nash College Friends of Livability Treetops Gresham Charitable Trust Gwyneth Forrester Trust Harrow School Homelands Charitable Trust Knighton Heath Golf Club Lions Club of Poole Meadow House Trust

Montague Coon Thompson Charitable Trust Olympus KeyMed Peter Harrison Foundation Rokill Rosca Trust Talbot Village Trust The 29th May 1961 Charity The ACT Foundation The Band Trust The Beatrice Laing Trust The Bernard Sunley Charitable Foundation The Childwick Trust The City Bridge Trust The Emmaus Christian Fund The Haberdashers’ Company The Harpur Trust The Marjorie Purser Trust The Nora and Olive Brewer Memorial Trust The Rank Foundation Limited The Royal Bank of Scotland The Simon Gibson Charitable Trust The Wixamtree Charitable Trust

Livability Annual Report & Accounts 2013

LIVABILITY INFORMATION STRUCTURE, GOVERNANCE AND MANAGEMENT PATRON Her Royal Highness, The Princess Royal VICE-PATRONS The Lord Green of Hurstpierpoint Lady Hobson MBE LIFE PRESIDENTS Sir Ron Hobson KCVO

PRESIDENT Baroness Howarth of Breckland OBE

VICE-PRESIDENTS The Bishop of London, The Rt Rev’d and Rt Hon R J Chartres DDF SA Mr Michael Edgar MA MChir RCS Mrs Pamela Farrell Tredinnick OBE Prof Ram Gidoomal CBE FRSA CCMI Mr Robert Hodge 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 Rev’d Canon Roger Royle Lady Wilkins Trustees Leonard J H Beighton* CB MA, Chair of Education Oversight Sub-Committee Martin Bradford* FCA Chris Carr BSc FCA CF, Interim Chair (13 November 2013 - 24 July 2013) Vice-Chair (appointed 25 July 2012) Chair of Fundraising, Communications and Community Engagement Sub-Committee Caroline Armitage MA (Cantab) (Law) Chair (appointed 24 July 2013) Sally Chivers BA (Hons) Kate Clare BEd Dip Ed NPQH PDD Anne-Marie Costigan RGN DMS Cert in Ed

Livability Annual Report & Accounts 2013

Jenny Edwards MBE, RSCN SRN NNEB, Chair of Partnership Board Peter N Griffiths* BSc (Econ) FCA, Honorary Treasurer, Chair of Finance and General Purposes SubCommittee Keith Hickey BSc (Hons) MSc FCCA DChA Baroness Howarth of Breckland OBE, Chair of Residential & Community Services Oversight Committee and Safeguarding Board Paula Kerr MSc BSc (Chair of Trustees) (retired 13 November 2012) Rev’d Agnita Oyawale MA BD (Hons) AKC PGCE 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

Dave Webber Dip MS Interim Chief Executive (appointed 9 August 2012), (appointed CEO 5 July 2013)

Director of Operations

Liz Mell, Interim Director of Operations (appointed 1 December 2012)

Director of Community Mission

Adam Bonner BA (Hons)

Director of Fundraising

Philip Roethenbaugh MInstF (Cert)

Director of Human Resources

Anne Kippax MA BA (Hons) FCIPD

Director of Finance and ICS

Stephen Perry LLB ACMA CGMA FCII Interim Director of Finance and ICS (appointed 2 January 2013)

Company Secretary

Michael Langworth BSc (Econ) (Hons) ACIS

Livability Annual Report & Accounts 2013

SOLICITORS Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES Bates Wells & Braithwaite LLP 2-6 Cannon Street London EC4M 6YH 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 BDO 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 SURVEYORS, PROPERTY VALUERS Hilbery Chaplin 86 Market Place Romford Essex RM1 3HQ Bruton Knowles Greybrook House 28 Brook Street London W1K 5DH

Livability Annual Report & Accounts 2013

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

Thank ou! Andrew Anderson Trust Audrey Earle Charitable Trust Awareness Fund Bedford Borough Council Big Lottery Fund Bournemouth Collegiate Preparatory School C W White Discretionary Trust D G Albright Charitable Trust Dudley and Geoffrey Cox Charitable Trust Edith Murphy Foundation Eveson Charitable Trust Friends of Livability Brackley Friends of Livability Dolphin Court Friends of Livability John Grooms Court

We would like to thank the organisations below for their generous contribution towards our work, those organisations who wished to remain anonymous, the families of those who remembered Livability in their will and the thousands of generous individuals whose support makes such a huge difference to our work: Friends of Livability Nash College Friends of Livability Treetops Gresham Charitable Trust Gwyneth Forrester Trust Harrow School Homelands Charitable Trust Knighton Heath Golf Club Lions Club of Poole Meadow House Trust Montague Coon Thompson Charitable Trust Olympus KeyMed Peter Harrison Foundation Rokill Rosca Trust Talbot Village Trust The 29th May 1961 Charity

Central office: Livability, 50 Scrutton Street, London EC2A 4XQ Phone: 020 7452 2000 Email: info@livability.org.uk www.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

The ACT Foundation The Band Trust The Beatrice Laing Trust The Bernard Sunley Charitable Foundation The Childwick Trust The City Bridge Trust The Emmaus Christian Fund The Haberdashersâ&#x20AC;&#x2122; Company The Harpur Trust The Marjorie Purser Trust The Nora and Olive Brewer Memorial Trust The Rank Foundation Limited The Royal Bank of Scotland The Simon Gibson Charitable Trust The Wixamtree Charitable Trust